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1、Managing a Company in the Coming Green Economy,Edward Clarence-Smith UNIDO Representative China, DPRK, Mongolia 21 June 2010,The Green Economy is coming,President Hu Jintao, at UN General Assembly, Sept. 2009 “We will step up our efforts to develop a green economy and low carbon economy” Premier Wen
2、 Jiaobei, commenting Fifth China-EU Business Summit, Nov. 2009 “We agreed that if the China-EU Comprehensive Strategic Partnership is to move forward, it should be anchored on a foundation of economic cooperation, be hi-tech driven, and make green economy a priority.” Vice Premier Li Keqiang, at Int
3、ernational Conference on Green Economy and Climate Change, May 2010 “The Chinese government attaches great importance to the development of green economy and coping with climate change.”,Todays Presentation,Why do we need a Green Economy? What would a Green Economy look like? Managing a Company in a
4、 Green Economy,Development - Global Political Context,Developing countries want to develop. Putting it very simply, they want to become like the US, like Europe, like Japan.,5,Industrialization is Key,Development is only going to happen through industrialization. That is how the “rich” countries dev
5、eloped, and no one has come up with a different way of doing it. BUT that creates a problem!,Ecological Footprint An Introduction,Our economies need the planet for two things: As the source of the material resources we consume (crops, animals, clean water, coal, oil, minerals, land for building, ) A
6、s the place where all the waste and pollution we generate gets broken down, absorbed, and made harmless. “Ecological Footprint” is a measure, in hectares per person, of the amount of biologically productive land and sea area we need to regenerate the resources we consume and to absorb and make harml
7、ess the waste and pollution we generate.,7,Ecological footprint of different nations Source: Factor 5,A Grim Future,Continuing these growth trends is simply unsus-tainable. Ecological Footprint: If everyone lived liked Europeans, our ecological footprint would be 5 hectares/person. That would need 2
8、.5 Planets! If everyone lived liked Americans, our ecological footprint would be 10 hectares/person. That would need 4.5 Planets! The planet will collapse, and so will we.,The Underlying Problem,Development is too much seen as improving / maintaining an ECONOMIC standard of living. This means consum
9、ing large amounts of resources. But development should be much broader: personal, social, cultural, political, It should be about increasing our Quality of Life,Quality of Life: Human Development Index,Human Development Index (HDI): a composite statistic used to rank countries by level of “human dev
10、elopment”. HDI is composed from data on: Life expectancy at birth (indicator of population health and longevity) Adult literacy rate and enrollment rates in primary, secondary, and tertiary educational institutions (indicator of knowledge and education) Per capita GDP (indicator of economic standard
11、 of living),11,Human Development Index and Ecological Footprint of Nations Source: Global Footprint Network and WWF 2006,Green Economy,The Challenge for the Developing Countries,decrease the ecological footprint,increase the quality of life,Economic growth,Green Economy should:,The Challenge of the
12、Future,decrease the ecological footprint,increase the quality of life,Economic growth,So what does this mean for a company?,Green Economy should:,The challenge for Companies,Reduce the ecological footprint of their factories; Reduce the ecological footprint of their products; Improve the quality of
13、life of their customers; Improve the quality of life of their employees; Improve the quality of life of the communities in which they are located. Today, focus on the ecological footprint aspects,Reducing the Ecological Footprint: Two sets of strategic options,A company can change its business model
14、 to sell green products / offer green services: “Green Industries”. It can keep on doing what its doing but do it in a greener way: Through its products At the process level (in the factory) Beyond the company = “Greening of Industries”,15,Two sets of strategic options:,Create Green Industries Green
15、 Existing Industries,16,Huge Number of Opportunities - 1,Companies can start manufacturing green technologies and products: Renewable energy: wind, solar thermal, photovoltaic, hydroelectric, biomass, geothermal, tidal, hydrogen, smart grids, . Equipment and products to improve energy and materials
16、efficiency Water: water treatment and purification, more efficient use of water, Transport: electric cars, hydrogen-fueled cars, fast trains, planes using biofuels, Waste and pollution: technologies for recycling or treating waste and pollution,Huge Number of Opportunities - 2,Companies can start offering green services: Waste collectors and transporters; Eco-design firms: design firms that specialize in designing products from an environmental point of view; ESCOs:
