Rod Oram’s presentation to the Care of Creation Series, All Saints Palmerston North, November 12th, 2012 Agenda • World • Civil Society Reinventing Paradise • Revolution • New Zealand Economy for a sustainable world Kiwiki on Facebook / Twitter @RodOramNZ [email protected] / +64 21 444 839 (The beginning of) The End Weep, Harp, the end of that exquisite Place That every circling Planet did outface; Mother of Streams and Mountains, Vales and Trees, And every Prospect that the Lens could please: Cradle of Man, and his sustaining Nurse, Whether for better or, in this case, worse. t • t Long time that Orb turned tranquilly and bright, Blue-shining like a Marble in the Night Long time all hunky-doryish appeared, But Man was greedier than had been feared: Flatt’ning the Forests, and, with grasping Hand Pumping out oil from every Desert Land. Then anxious Greens announced that Doom was nigh, Tho’ all the rest, uncaring, wondered: “Why?” And to consumerism blithely turn’d, Tapping their iPhones while the Planet burn’d; Checking each Bleep of instantaneous Chat Until they hardly knew where they were at. And so, o’erheated and in quite a Tangle, Poor Earth was now beset from every Angle. Ann Wroe, obituaries editor, The Economist 1 t Rio 1992 – main outcomes • t • Governments agreed on 27 sustainability principles • Breakthrough…bringing sharp focus to humankind’s unsustainable course • These have helped shape some government policies… • …and personal and community responses, and corporate strategies • Led to the UN’s framework convention on climate change… • …and progress in other areas such as biodiversity and Law of the Sea • But in the 20 years since: • Very hard to keep up momentum, shift behaviour, implement big changes • Natural resource use has increased by 40% in past 20 years, UN says • We are changing climate, ecosystems far faster than we ever imagined • Injustices are accelerating • Our lack of sustainability is now utterly critical Rio 2012 – main official outcomes 1. Nonbinding document, "The Future We Want," a 49 page work paper. In it, the heads of state of the 192 governments in attendance renewed their political commitment to sustainable development and declared their commitment to the promotion of a sustainable future. The document largely reaffirms previous action plans like Agenda 21 2. Text includes language supporting the development of Sustainable Development Goals (SDGs), a set of measurable targets aimed at promoting sustainable development globally. It is thought that the SDGs will pick up where the Millennium Development Goals leave off and address criticism that the original Goals fail to address the role of the in development.” 3. Attempt to shore up the UN Environment Programme (UNEP) in order to make it the “leading global environmental authority” by setting forth eight key recommendations including, strengthening its governance through universal membership, increasing its financial resources and strengthening its engagement in key UN coordination bodies Rio 2012 – main official outcomes 4. Nations agreed to explore alternatives to GDP as a measure of wealth that take environmental and social factors into account in an effort to assess and pay for ‘environmental services’ provided by nature, such as carbon sequestration and habitat protection 5. Recognition that "fundamental changes in the way societies consume and produce are indispensable for achieving global sustainable development.” EU officials suggest it could lead to a shift of taxes so workers pay less and polluters and landfill operators pay more 6. The document calls the need to return ocean stocks to sustainable levels “urgent” and calls on countries to develop and implement science based management plans 7. All nations reaffirmed commitments to phase out fossil fuel subsidies 8. In addition to the outcome text, there were over 400 voluntary commitments for sustainable development made by Member States 2 Rio 2012 – Two views t • “The fact that we have a consensus outcome document at all, and the 283 statements within it, is truly testament to the abilities and goodwill of everyone who attended.” • Environment Minister Amy Adams, Aug 6, 2102 • At the Environmental Defence Society conference “Growing Green” • t • What the text actually contained: • The 283 paragraphs cruelly exposed governments’ lack of ambition & commitment • 99 times – “we support” • 50 times – “we encourage” • 5 times - “we will” • 3 times – “we must” • “The longest suicide note in history” • Kumi Naidoo, Greenpeace International’s executive director t t • t • t 3 t t • t • t t …(the middle of) The End • t This the wise Maya long ago foresaw: That in the Age of tricky Seven Macaw (Or, to put Finger firmly onto Fact, In twenty-twelve, Dec. 21st exact) History’s great Wheel would tumble to eclipse Quicker than e-mail thro’ the Aether zips; For fiery Sun with Milky Way align’d Would make a pretty Mess of things combin’d. The Poles would flip, and old terrestrial Time Fade out within Eternity’s vast clime; The law of Gravitation, grown effete, Would scarce secure an Infant in his Seat; And all that normal seem’d, the Day before, Would now essay the Air, or hit the Floor. Then monumental Panick spread abroad, Skins to preserve, and Groceries to hoard, For tho’ the Mathematicks seem’d obscure, No Body’s Fate might be consider’d sure; So Petroglyphs of Rockets upside-down Were scrutinised in every part of Town. 4 Agenda t • t • World • Civil Society • Revolution • New Zealand t t • t • t 5 Voluntary action Sustainability - Local governments lead • US Natural Resource Defense Council’s Cloud of Commitments • http:// www.cloudofcommitments .org The rise of civil society • At Rio: • More than 700 formal commitments by organizations and companies were registered • They pledged more than US$500bn to sustainable development actions, many were addressed specifically to fighting climate change. • Examples • The 1,800 largest companies listed on the London Stock Exchange committed to disclose their greenhouse gas emissions • Mayors from 58 megacities, meeting as part of the C40 Cities Climate Leadership Group, agreed to actions which could reduce greenhouse gas emissions by over a billion tons by 2030 The rise of civil society… • …birth of a new democracy: • People-led • Not politician-led • Locally-driven • Not centrally controlled • Interactive • Not authoritarian • Creative • Not restrictive • Networked • Not hierarchical • Learning • Not stagnating 6 The future of public participation Community • Issues are increasingly global…. • …solutions are increasingly local • Solutions require very strong, learning communities • Essential attributes: • Common sense • Common purpose • Common wealth • Places where individuals are valued, helped, encouraged • …in return, they participate, change Agenda Scarcity of resource • • All water: 1,390 km diameter (All fresh surface water: 62 km) All air: 1,999 km across; Source: Dr Adam Nieman www.adamnieman.co.uk • World • Civil Society • Revolution • New Zealand 7 People, planet • Vision 2050 • A very challenging roadmap for corporate development by World Business Council for Sustainable Development • …NZ version October 2012 Finite resources w • q 8 LIBOR – dark heart of finance LIBOR –biggest scandal yet • London Inter-Bank Offered Rate • 10 currencies; 15 maturities • Global benchmark for US$800 trillion of financial products • NZ$1 million billion • 1 million seconds = 12 days • 1 billion seconds = 32 years • 1,000 billion seconds = 32,000 years • 1 million billion seconds = 32m years The pre-crisis banking model “was already looking tawdry; now, in the wake of the LIBOR scandal, it looks even more tattered. • Barclays fined £290m (NZ$570m) for filing false reports to LIBOR-setting panel • Acted to hide its financial weakness • And favour its derivatives positions • 20+ other major banks under investigation • Criminal and political inquiries underway in UK, US • Customers, e.g. US cities and other borrowers, preparing massive damage suits “The harsh lesson is that banks cannot be trusted to perform any public function if it conflicts with their own interests. “Barclays staff rigged an interest rate used to price the financial products they sold to customers with a view to ensuring their own derivative bets paid off. “It is hard to think of anything more corrosive of trust in finance – and indeed in capitalism itself.” Financial Times, July 3, 2012, Editorial • Scandal greatly heightens probability US & UK banks will be split into separate commercial & investment institutions World Economic Forum: Global risks WEF: Risk map • To ensure human needs are met, we need radical new technologies • We need to develop and deploy them on a scale and at a speed like never before • …and with much greater complexity and risk • …and with a need for public understanding and support • …and ways to respond far better when things go wrong • This is a fundamental shift in risk and risk management 9 WEF: Risk relationships WEF: seeds of dystopia • …e.g. is The Occupy Movement an anomaly? • Or a harbinger of social unrest? • ...the latter, it concluded …(the end of) The End And some to Bugarach in France repair’d, Where, it was said, their Lives would all be spar’d By Alien Beings in a Cave confin’d; But “Bugaroff” declar’d that Mayor, unkind. . A few were saved. For such Escapes must be, As shewn forth on Reality TV, Where jabbing Digit points towards the Door, But some survive into Round twenty-four; And so the Wise soared up to Realms of Dreams, Bathed by Galactic Synchronisation Beams. The rest, when pulling on their morning Socks, Ask’d what the Hell was wrong with all the Clocks, And why each Mug would from the Table rise, Floating about before their bleary Eyes And why their Phones no Signal would receive Save the implicit one that they should leave. Craz’d, then, the uninform’d or unprepar’d Rushed to the Street, and round them wildly star’d, Seeing approach an overwhelming Snow Before they had worked out which way to go; And they were buried deep, the Ice beneath, With crumbs of Croissant still between their teeth. As Will says… Hamlet: “What a piece of work is man, How noble in reason, How infinite in faculties, In form and and moving how express and admirable, In action how like an angel, In apprehension how like a god! The beauty of the world, The paragon of animals…” But Hamlet is deeply depressed about humankind…so he goes on to say… “…and yet, to me, what is this quintessence of dust? Man delights not me -- nor woman neither” If we lose our faith in humankind, we’re doomed But if we believe in humankind…we can reinvent Paradise 10 Companies When they’re good… • Have been around a long time • The oldest, surviving company was founded in Japan in 578 AD • http://en.wikipedia.org/wiki/List_of_oldest_companies • …they are very beneficial, enabling people to come together to generate: • • • • • • Enterprise Economic activity Progress Knowledge accumulation and transfer Wealth creation and management Community benefit • Creation of limited liability status was, arguably, the most crucial innovation ever... …allowing owners to take bigger (hopefully reasonable) risks • Unlimited liability would very severely limit enterprise and progress • 15th century -- English law awarded limited liability to monastic communities and trade guilds with commonly held property • 17th century -- joint stock charters were awarded by the crown to monopolies such as the East India Company. • 1811 – New York State – 1st modern limited liability law enacted • 1844 – UK’s Joint Stock Companies Act made incorporation much easier • 1855 – UK’s Limited Liability Act 1855 gave outside investors limited liability Father of accounting • Fra Luca Pacioli • …Venetian monk, polymath, friend of the clever, creative, rich and famous • …including Leonardo da Vinci • Published in 1494 Summa de arithmetica • …which included the first full, public description of the secret double-entry book-keeping system used by Venetian merchants • Basically, we’ve been double-entry book-keeping (assets/ liabilities; credits/debits etc) ever since • Financial accounting… • …brilliant but limited, thus flawed When they’re bad… • …they are immensely damaging, enabling people to come together to: • • • Exert enormous power and influence Exploit people, technology and resources Destroy people, communities, eco-systems • There are many causes of such destructive behaviour • But the biggest by far is the severing of ownership from control…e.g. • An individual within…from colleagues • A team within…from management • Management…from board • Board…from owners • Owners…from external investors • External investors…from society • Society…from business • Religion and faith are not full-proof antidotes • …e.g. Many Enron directors & senior executives were leaders of their churches 11 What must go right The next 10 years • People who own and run businesses must be: • Finance and capital conditions • Finance more expensive and less available • Market and regulatory constraints • • • • • Aware…of the communities which give them license to operate Responsible…to those communities Controlled…self-control and external control Sustainable…for the natural life of the enterprise…it could be short or forever Ethical • …in other words…it’s about right relationships • There are a lot of relationships to set right • Less benign economic conditions • Higher economic volatility; Increased risk • Low carbon-economy • New disciplines & technology • Far greater resource efficiency • Technology change accelerating • Public losing trust in business • Scepticism over Anglo-Saxon model • More government intervention • Social and demographic change • New responses to retirement, pensions • New business & government solutions • E.g. more flexible working practices “The Shape of Business” Confederation of British Industry www.cbi.org.uk Integrated Reporting • The next big initiative by corporates and accounting bodies • Seeking to make financial, environmental and social measures… • …much easier, more accessible and more useful to corporates, investors and the public • www.theiirc.org Ray Anderson • Founded Interface in 1973 • …15 years later world’s largest maker of carpet tiles • His “mid-course correction” came in 1994, when he was 60 • 2020 goal: take nothing from the earth that could not be rapidly replenished, produce no greenhouse-gas emissions, and no waste • By 2007 Interface was about halfway up “Mount Sustainability” • Greenhouse-gas emissions by absolute tonnage were down 92% • Water usage down 75% • 74,000 tonnes of used carpet recovered from landfills • Savings of $400m each year from no scrap and no off-quality tiles more than paid for the R&D and process changes • As much as 25% of the company's new material from “post-consumer recycling” • Sales had risen by two-thirds and profits had doubled • Ray Anderson’s Economist obituary www.economist.com/node/21528583 12 Cradle to Cradle • One product gives rise to the next • …waste, by-products and recycling of one, become materials for the next • …emulating nature’s cycles Re-conceiving…footprints • Positive footprints • …the insight of Michael Braungart • www.braungart.com • If we change our technology so our resource use benefits the ecosystem • Then the more we consume… …the richer the environment • Waste = food McDonough & Braungart • Founders of Cradle to Cradle systems Re-conceiving…biomimicry • Imitating nature • …the technology discipline pioneered by Janine Benyus • www.biomimicry.net • Fans, propellers like nautilus shells • Wire ropes as strong as spider webs… • …made in cold biochemical processes • Four positive footprints: • Fabric of Airbus aircraft seats becomes compost for growing food • Formway’s bio-plastic chair • Carbon positive farming • Ants vs. Humans • Positive role in ecosystem vs.negative…how do we make it positive? 13 Revolution Leader of the revolution • Radical new technologies are inverting old dynamics…e.g. • Additive manufacturing overturns mass production • New materials overturn commodity constraints • Iterative design overturns linear product development • The Centre for Bits and Atoms at the Massachusetts Institute of Technology • Led by Prof. Neil Gershenfeld, www.cba.mit.edu …when information meets atoms More corporate diversity • Prof Neil Gershenfeld, MIT…TED talk http://bit.ly/MI7Eur • The first Fab Lab…machines making machines • Science & technology road map to micron-Lego assembly… …dis-assembly of products • Competing corporate vehicles • 1/3 of US tax-reporting businesses are now partnerships • Limited Liability Partnerships • Publicly Traded Partnerships • Real Estate Investment Trusts • State owned enterprises • E.g. 13 largest oil companies • Family-controlled companies • E.g. ½ of Asia-Pacific listed ones • Private equity vehicles • French SCA’s with general and limited partners • Public-private hybrids • US: ‘B Corporations’ subordinating profits to social benefits • UK: Community Interest Companies • From The Economist, May 19, 2012 14 Voluntary action • Business commitments to UN Global Compact: • http:// www.uncsd2012.org/ voluntarycommitments. html Business action • Business Action for Sustainable Development • http:// basd2012.org/ Business action • World Business Council for Sustainable Development…member commitments • http://www.wbcsd.org/rio-20/membercommitments.aspx Natural Capital • Many global corporates committed to it at the UN’s 2012 sustainability summit in Rio • www.naturalcapitalproject.org 15 B Corporations • B = Benefit • A form of incorporation that allows a company to subordinate profit to other definable benefits • …e.g. social and community • …with profit • …not a not-for-profit, or NGO • Biggest converts so far: • Ben & Jerry’s ice cream • Patagonia sports clothes • Ben & Jerry notable…owned by a major multinational – Unilever • …Unilever a sustainability leader B Corps • Began in US in mid-2000s • Spreading to South America • …next Europe • Main certifier B-Lab of US • … http://benefitcorp.net/ • Maryland first state legislation in 2010…B Corps: • “…shall create general public benefit • “…shall have right to name specific public benefit purposes (e.g. 50% profits to charity, carbon neutral, 100% local sourcing, beneficial product to customers in poverty)” • Must measure, report benefits B Corps • So far… • • • • 643 B Corporations US$4.2bn in revenues 60 industries 15 countries 2nd US version • L3Cs… • Low-profit Limited Liability companies • Fist state legislation Vermont in 2008 • http:// www.americansf orcommunitydev elopment.org 16 …UK version Support • Community Interest Companies • Large community developing • Likewise, a new form of legal entity for companies • http:// www.cicassoci ation.org.uk • Law passed in 2005 • http://www.bis.gov.uk/ cicregulator/ Innovation • …e.g. in new forms of finance for them • …such as bond issues Case studies • Large body of experience developing • http:// www.bis.gov. uk/ cicregulator/ case-studies 17 Agenda • World • Civil Society • Revolution • New Zealand Slowth • We’re still recovering slowly … …helped by rebuild of Christchurch • Growth in year to March 2012 was 1.7%... ..could peak at 3% next year • But will then sink back to its long-run slow growth average of around 2% • Why can’t we grow faster, longer by earning a bigger living in the world economy? Wall • We’re very efficient at producing low value goods and services • But…we’ve hit the wall, economically, socially and environmentally The NZ version • …by a group of young leaders… • …under the NZ Business Council for Sustainable Development… • …which morphed into the • Sustainable Business Council • Download at: • http://bit.ly/PxiG1B • NZ site coming soon at: • http://www.vision2050nz.co.nz • Vision 2050 Global report at: • http://bit.ly/Ox0HsK 18 LanzaTech…clean tech leader • Signed commercialisation agreements at the Expo with: • Chinese Academy of Sciences • Baosteel; next pilot plant in China • Makes biofuel from industrial waste gases • Turns greenhouse gas liability into profit • World pioneer of the science • Auckland-based; NZ Steel pilot plant • Big venture capital backing • More than US$100m so far • NZ: Stephen Tindall • US: Vinod Khosla • China, Taiwan and Malaysia 19 Zespri YikeBike: radical reinvention • Grant Ryan’s radical re-think of the bike • All-electric; no pedals; 10kg; 20 km/h; 10 km range; ABS brakes; regenerative braking; 45-minute recharge • Folds in 15 seconds; Guinness Book of Records China produced 22m electric bikes in 2010 • • • • • • • • • • Established brand Built marketing Innovated – gold Innovated – orchards Innovated – intellectual property Clever, 12-month supply chain 40% - 100% premium in EU 1/3 world supply… …but captures 2/3 of value …and lots more science yet From exporter to global leader… …decommoditising a commodity Zespri • April 2009: Published its carbon life cycle analysis: • Orchard operations make up 17% of total emissions for EU exports • Packhouse & coolstore processes account for 11% of total emissions • Shipping accounts for 41% of total emissions • Repacking and retailer emissions amount to 9% of total emissions • Consumer consumption & disposal comprises 22% of total emissions • • Bottom line: resource efficiency builds a more profitable, resilient business E.G. Kite-assisted ships save 22% of their fuel bills on average Urban New Zealand • As a nation, we largely define ourselves by our rural and wild parts • …and we believe rural business underpins the national economy • Yet, we’re one of the most urbanised populations in the world • …87% of us live in towns and cities • …most people earn livings far removed from the rural economy • Our urban places are in trouble…. • …their built environments are increasingly unsustainable • …their economies anemic, inward looking • Christchurch pre-earthquake had a lot of marginal businesses, buildings • Auckland mainly serves only its own population • Wellington’s tourism & events strategy earns little; public sector shrinking • Dunedin is slipping away • …and every smaller town has its own story to tell, positives & negatives • Challenge: • Reinvent, reinvigorate our urban communities and economies 20 Hope • Big expression of public ideas and interest… • …much of it is incorporated in the recovery plan Yes… …but • Distinctive? • No • Radical? • No • Zero energy? • No • Growth? • No • Sustainable? • No • 21st Century city? • No …how about creating global centres of excellence in: - dairy nutrigenomics -aearthquake prediction, rescue & recovery st - 21 • a century city systems Wellington 2040 • www.wellington2040.co.nz; Submissions close August 15 21 Cities Corporate New Zealand vs. Government • What our cities want • What we will get • Compact form • Urban sprawl • Public transport • Roads • Quality urban design • Urban guidelines • Wide choices in housing • Narrow choice in housing • Power to decide, act • Strong central control • Enough investment • Limited investment • New economy • Old economy • Sustainability • Economy-Environment “balance” • Local democracy • Central intervention Sustainable Business Network • Ugly: • 1980s stock market corporate raiders • 1990s multinationals’ ineptitude • 2000s finance company deception and theft • Bad: • Unsustainable use of resources • Lack of awareness and ambition • Shirking of strategic responses • Good: • Exploitation is relatively low by international standards • Vanguard companies are emerging…new models, typically small, engaged • Old models (e.g. co-ops, Maori incorporations) might adapt • Slow, hard work: • Corporate social responsibility and related disciplines • Unique New Zealand responses…to offer the world • International connectivity 22 Voluntary action e.g. Hikurangi Foundation • “NZ’s incubator for low carbon social innovation” e.g. community wind farms • …& Rod’s Rio blog www.hikurangi.org.nz/2012/06/19/rod-orams-blog-from-rio-20/ 23 Our future • NZ Land: 270,000 sq km • Australia’s 28x NZ • NZ Oceans: 5.8m sq km • 5th largest in the world • Australia’s 1.4x NZ’s • Huge responsibility: • …to nurture • …to use responsibly • …to sustain us • …we get $184bn of ecosystem services for free Theology • Our understanding of God • Gift: God’s radical abundance • Relationship: God -> his creation -> us • Redemption: Being made whole “We are consumers of what God has made. We are are in communion with it.” • Archbishop Rowan Williams • We need new values, systems, learning, collaboration: • …to be sustainable • …to offer hope to the world 24 Faith Community • Our response to God • How we act on our understanding of God • Belief: • Relate: to each another • Empowerment: • Discuss: with each other • Enlightenment: • Understand: each other “Science without religion is lame, religion without science is blind” • Albert Einstein • Support: each other • Act: together Opportunity Sparks in the stubble • We are good at this Let the pain of the world seize us by the throat. Listen for Jesus calling us all out of our tombs of despair and apathy. May the shock of baptismal dying once more set us afire. This place we call home is meant to be a new heaven, a new earth, a holy city, a new Jerusalem. It is the sparks in the stubble that will make it so. • Bringing people together • Multiple, inter-linked global crises • Paradoxically, the best response is local…multiplied across the world Challenge • What we need to do • Apply timeless faith (understanding) • …to contemporary responses (action) • For example…on economic activity The Most Rev. Katharine Jefferts Schori Presiding Bishop and Primate The Episcopal Church All Saints Sunday, November 5th, 2006 Washington National Cathedral 25 “Landfall in Unknown Seas” “Landfall in Unknown Seas” But now there are no more islands to be found And the eye scans risky horizons of its own But now there are no more islands to be found And the eye scans risky horizons of its own In unsettled weather… Who navigates us towards what unknown But not improbable provinces? Who reaches In unsettled weather… Who navigates us towards what unknown But not improbable provinces? Who reaches A future down from the high shelf Of spiritual daring? A future down from the high shelf Of spiritual daring? Allen Curnow: Landfall in Unknown Seas Allen Curnow: Landfall in Unknown Seas 26
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