[Music] [Applause]
so as you’ve heard I’m a student at
so as you’ve heard I’m a student at London Business School but maybe not
London Business School but maybe not
London Business School but maybe not your typical student
your typical student
your typical student you see before I came to London Business
you see before I came to London Business
you see before I came to London Business School I was a bit suspicious of this
School I was a bit suspicious of this
School I was a bit suspicious of this thing called business and as a young
thing called business and as a young
thing called business and as a young climate policymaker in Australia I’d
climate policymaker in Australia I’d
climate policymaker in Australia I’d encountered my fair share of corporate
encountered my fair share of corporate
encountered my fair share of corporate push back as weas tried to make progress
push back as weas tried to make progress
push back as weas tried to make progress on climate action and yet over time my
on climate action and yet over time my
on climate action and yet over time my views have evolved and the more I’ve
views have evolved and the more I’ve
views have evolved and the more I’ve worked on the climate challenge the more
worked on the climate challenge the more
worked on the climate challenge the more have become convinced that in addition
have become convinced that in addition
have become convinced that in addition to government and civil society business
to government and civil society business
to government and civil society business will be an absolutely critical player
will be an absolutely critical player
will be an absolutely critical player when it comes to addressing the climate
when it comes to addressing the climate
when it comes to addressing the climate issue and so two years ago
issue and so two years ago
issue and so two years ago I packed up my comfortable public
I packed up my comfortable public
I packed up my comfortable public servant life and head off for Business
servant life and head off for Business
servant life and head off for Business School in London and it’s important to
School in London and it’s important to
School in London and it’s important to say here that on the whole my experience
say here that on the whole my experience
say here that on the whole my experience has been fantastic I’ve learned an
has been fantastic I’ve learned an
has been fantastic I’ve learned an incredible amount and met amazing
incredible amount and met amazing
incredible amount and met amazing students staff and teachers along the
students staff and teachers along the
students staff and teachers along the way and yet despite these many positive
way and yet despite these many positive
way and yet despite these many positive experiences there’s just one small
experiences there’s just one small
experiences there’s just one small question that I can’t shake is Business
question that I can’t shake is Business
question that I can’t shake is Business School failing my generation as you’re
School failing my generation as you’re
School failing my generation as you’re probably imagining this question relates
probably imagining this question relates
probably imagining this question relates to the subject of climate change but
to the subject of climate change but
to the subject of climate change but maybe not in the way you’re thinking and
maybe not in the way you’re thinking and
maybe not in the way you’re thinking and so for the remainder of this talk I want
so for the remainder of this talk I want
so for the remainder of this talk I want us to put aside any thoughts of natural
us to put aside any thoughts of natural
us to put aside any thoughts of natural disasters or polar bears and coral reefs
disasters or polar bears and coral reefs
disasters or polar bears and coral reefs in fact the first thing I want you all
in fact the first thing I want you all
in fact the first thing I want you all to do is to join me in a little exercise
to do is to join me in a little exercise
to do is to join me in a little exercise I want you to close your eyes for a
I want you to close your eyes for a
I want you to close your eyes for a moment and look inside of yourself and I
moment and look inside of yourself and I
moment and look inside of yourself and I want you to find your own personal moral
want you to find your own personal moral
want you to find your own personal moral compass you got it okay great now I want
compass you got it okay great now I want
compass you got it okay great now I want you to take your hand grab hold of it
you to take your hand grab hold of it
you to take your hand grab hold of it and yank it outside of you for some of
and yank it outside of you for some of
and yank it outside of you for some of that might that might mean using two
that might that might mean using two
that might that might mean using two hands if you’re particularly stubborn
hands if you’re particularly stubborn
hands if you’re particularly stubborn for others it might come out rather
for others it might come out rather
for others it might come out rather easily and maybe there’s something to
easily and maybe there’s something to
easily and maybe there’s something to worry about there
worry about there
worry about there so take it out and put it aside maybe in
so take it out and put it aside maybe in
so take it out and put it aside maybe in your bag or somewhere you know where it
your bag or somewhere you know where it
your bag or somewhere you know where it is
is
is in case you want to put it back at the
in case you want to put it back at the
in case you want to put it back at the end of this talk now this is important
end of this talk now this is important
end of this talk now this is important because for the rest of my talk I’m
because for the rest of my talk I’m
because for the rest of my talk I’m convinced that we don’t have any need
convinced that we don’t have any need
convinced that we don’t have any need for morality and this is because what I
for morality and this is because what I
for morality and this is because what I want to talk about today is not how
want to talk about today is not how
want to talk about today is not how business can affect climate change or
business can affect climate change or
business can affect climate change or the environment what I want to talk
the environment what I want to talk
the environment what I want to talk about is how climate change or more
about is how climate change or more
about is how climate change or more specifically action to address climate
specifically action to address climate
specifically action to address climate change will affect business and why I
change will affect business and why I
change will affect business and why I believe that this is something that
believe that this is something that
believe that this is something that every business school student should be
every business school student should be
every business school student should be aware of so what do I mean when I say
aware of so what do I mean when I say
aware of so what do I mean when I say how climate change or climate action
how climate change or climate action
how climate change or climate action will affect business as many of you may
will affect business as many of you may
will affect business as many of you may know in December 2015
know in December 2015
know in December 2015 leaders and representatives of 195
leaders and representatives of 195
leaders and representatives of 195 governments got together and agreed on a
governments got together and agreed on a
governments got together and agreed on a plan to decarbonize the economy to keep
plan to decarbonize the economy to keep
plan to decarbonize the economy to keep warming below two degrees now there is
warming below two degrees now there is
warming below two degrees now there is legitimate debate to be had as to
legitimate debate to be had as to
legitimate debate to be had as to whether we have any chance or any will
whether we have any chance or any will
whether we have any chance or any will to deliver on this Paris agreement but
to deliver on this Paris agreement but
to deliver on this Paris agreement but for today I want you to all join me in
for today I want you to all join me in
for today I want you to all join me in imagining that we will and if we do what
imagining that we will and if we do what
imagining that we will and if we do what does this mean for business well at the
does this mean for business well at the
does this mean for business well at the heart of the Paris agreement is what we
heart of the Paris agreement is what we
heart of the Paris agreement is what we call our carbon budget in order to have
call our carbon budget in order to have
call our carbon budget in order to have an 80% chance of meeting our two degree
an 80% chance of meeting our two degree
an 80% chance of meeting our two degree dahl goal the world can emit a
dahl goal the world can emit a
dahl goal the world can emit a cumulative total of 1845 Giga tons of
cumulative total of 1845 Giga tons of
cumulative total of 1845 Giga tons of carbon dioxide equivalent so how we’re
carbon dioxide equivalent so how we’re
carbon dioxide equivalent so how we’re going with that well in the hundred and
going with that well in the hundred and
going with that well in the hundred and fifty years between 1850 and 1999 we
fifty years between 1850 and 1999 we
fifty years between 1850 and 1999 we emitted 1010 Giga tons of co2 equivalent
emitted 1010 Giga tons of co2 equivalent
emitted 1010 Giga tons of co2 equivalent then in the 15 years between 2000 and
then in the 15 years between 2000 and
then in the 15 years between 2000 and 2015 we emitted another 500 gigatons
2015 we emitted another 500 gigatons
2015 we emitted another 500 gigatons unfortunately I’ve been to business
unfortunately I’ve been to business
unfortunately I’ve been to business school and I’ve learned a few things
school and I’ve learned a few things
school and I’ve learned a few things about addition and subtraction and what
about addition and subtraction and what
about addition and subtraction and what I’ve and you’ll notice is that counting
I’ve and you’ll notice is that counting
I’ve and you’ll notice is that counting all the emissions we’ve made so far what
all the emissions we’ve made so far what
all the emissions we’ve made so far what we have left is just 335 Giga tons of
we have left is just 335 Giga tons of
we have left is just 335 Giga tons of co2 to emit in the next 33 years if
co2 to emit in the next 33 years if
co2 to emit in the next 33 years if we’re to hit our goals I raise all this
we’re to hit our goals I raise all this
we’re to hit our goals I raise all this because what it means is that if we’re
because what it means is that if we’re
because what it means is that if we’re going to achieve our goal things are
going to achieve our goal things are
going to achieve our goal things are going to have to change they’re going to
going to have to change they’re going to
going to have to change they’re going to have to change an awful lot and they’re
have to change an awful lot and they’re
have to change an awful lot and they’re going to have to change quickly because
going to have to change quickly because
going to have to change quickly because at the rate we’re on in just 10 years
at the rate we’re on in just 10 years
at the rate we’re on in just 10 years we’re set to explode and blow up this
we’re set to explode and blow up this
we’re set to explode and blow up this target in fact if we look out to the
target in fact if we look out to the
target in fact if we look out to the roadmap to 2050 depending on our goals
roadmap to 2050 depending on our goals
roadmap to 2050 depending on our goals and our appetite for risk we’re looking
and our appetite for risk we’re looking
and our appetite for risk we’re looking at the need to reduce emissions by as
at the need to reduce emissions by as
at the need to reduce emissions by as much as 95% against 2010 standards so
much as 95% against 2010 standards so
much as 95% against 2010 standards so what does this mean for business and to
what does this mean for business and to
what does this mean for business and to be honest I was tempted to maybe pull
be honest I was tempted to maybe pull
be honest I was tempted to maybe pull this talk at this point when I thought
this talk at this point when I thought
this talk at this point when I thought about it because really the only
about it because really the only
about it because really the only businesses that will be affected by this
businesses that will be affected by this
businesses that will be affected by this are those that use energy or transport I
are those that use energy or transport I
are those that use energy or transport I think you’re getting my point
think you’re getting my point
think you’re getting my point with a bit of rounding errors we’re
with a bit of rounding errors we’re
with a bit of rounding errors we’re looking at around a hundred percent of
looking at around a hundred percent of
looking at around a hundred percent of businesses now the ways in which this
businesses now the ways in which this
businesses now the ways in which this will affect any given individual
will affect any given individual
will affect any given individual business will of course vary but let’s
business will of course vary but let’s
business will of course vary but let’s take one example from the International
take one example from the International
take one example from the International Energy Agency research by the IEA
Energy Agency research by the IEA
Energy Agency research by the IEA has shown that in order to meet our 2050
has shown that in order to meet our 2050
has shown that in order to meet our 2050 goal the emissions intensity of the
goal the emissions intensity of the
goal the emissions intensity of the entire industrial sector will have to
entire industrial sector will have to
entire industrial sector will have to dropped by 80% against today’s levels
dropped by 80% against today’s levels
dropped by 80% against today’s levels this is not unlike telling a company
this is not unlike telling a company
this is not unlike telling a company that today has 100 factories to produce
that today has 100 factories to produce
that today has 100 factories to produce the same output in 2050 with just 20
the same output in 2050 with just 20
the same output in 2050 with just 20 factories and from the perspective of
factories and from the perspective of
factories and from the perspective of business the idea of a rapid and
business the idea of a rapid and
business the idea of a rapid and mandatory transition to
mandatory transition to
mandatory transition to low-carbon economy should be setting off
low-carbon economy should be setting off
low-carbon economy should be setting off risk alarm bells and with any material
risk alarm bells and with any material
risk alarm bells and with any material business risk company leaders will face
business risk company leaders will face
business risk company leaders will face increasing pressure from their
increasing pressure from their
increasing pressure from their shareholders to show they’ve got a
shareholders to show they’ve got a
shareholders to show they’ve got a strategy to respond to this risk but the
strategy to respond to this risk but the
strategy to respond to this risk but the Paris agreement and our goal for a
Paris agreement and our goal for a
Paris agreement and our goal for a low-carbon future isn’t all about risks
low-carbon future isn’t all about risks
low-carbon future isn’t all about risks and challenges it also presents
and challenges it also presents
and challenges it also presents incredible opportunities to business for
incredible opportunities to business for
incredible opportunities to business for example some research was done not long
example some research was done not long
example some research was done not long ago by professors and academics from
ago by professors and academics from
ago by professors and academics from Harvard and London Business School and
Harvard and London Business School and
Harvard and London Business School and it showed that if you took $1 and you
it showed that if you took $1 and you
it showed that if you took $1 and you invested it in a portfolio of companies
invested it in a portfolio of companies
invested it in a portfolio of companies 20 years ago that were focused
20 years ago that were focused
20 years ago that were focused exclusively on profit your $1 would have
exclusively on profit your $1 would have
exclusively on profit your $1 would have grown to 14 dollars and 46 cents this is
grown to 14 dollars and 46 cents this is
grown to 14 dollars and 46 cents this is a pretty good return unless you realize
a pretty good return unless you realize
a pretty good return unless you realize that if instead you taken that same
that if instead you taken that same
that if instead you taken that same dollar and twenty years ago invested in
dollar and twenty years ago invested in
dollar and twenty years ago invested in a similar portfolio of companies that
a similar portfolio of companies that
a similar portfolio of companies that focus both on profit and also on
focus both on profit and also on
focus both on profit and also on adhering to strong environmental social
adhering to strong environmental social
adhering to strong environmental social and governance standards because if you
and governance standards because if you
and governance standards because if you did your one dollar would have instead
did your one dollar would have instead
did your one dollar would have instead grown to twenty-eight dollars and 36
grown to twenty-eight dollars and 36
grown to twenty-eight dollars and 36 cents almost doubling your return now
cents almost doubling your return now
cents almost doubling your return now this is of course a correlation and not
this is of course a correlation and not
this is of course a correlation and not causation but at the very minimum it
causation but at the very minimum it
causation but at the very minimum it shows that a company’s decision to
shows that a company’s decision to
shows that a company’s decision to engage with environmental concerns and
engage with environmental concerns and
engage with environmental concerns and sustainability is not correlated with a
sustainability is not correlated with a
sustainability is not correlated with a lowering of financial performance in
lowering of financial performance in
lowering of financial performance in fact recent research by the CDP formerly
fact recent research by the CDP formerly
fact recent research by the CDP formerly the Carbon Disclosure Project has shown
the Carbon Disclosure Project has shown
the Carbon Disclosure Project has shown that companies who have invested in
that companies who have invested in
that companies who have invested in carbon reducing activities have enjoyed
carbon reducing activities have enjoyed
carbon reducing activities have enjoyed on average an internal rate of return of
on average an internal rate of return of
on average an internal rate of return of 33 percent so whether you think of it as
33 percent so whether you think of it as
33 percent so whether you think of it as a risk or opportunity the business case
a risk or opportunity the business case
a risk or opportunity the business case for adapting to a low-carbon future is
for adapting to a low-carbon future is
for adapting to a low-carbon future is clear manage the risks reap the rewards
clear manage the risks reap the rewards
clear manage the risks reap the rewards and as a bonus your children get a
and as a bonus your children get a
and as a bonus your children get a habitable planet to live on so we’ve
habitable planet to live on so we’ve
habitable planet to live on so we’ve talked about these implications for
talked about these implications for
talked about these implications for business and now it’s time to go back to
business and now it’s time to go back to
business and now it’s time to go back to school
school
school back to business school after all this
back to business school after all this
back to business school after all this is where 42 percent of the CEOs of the
is where 42 percent of the CEOs of the
is where 42 percent of the CEOs of the two fortune 100 companies come from so
two fortune 100 companies come from so
two fortune 100 companies come from so let’s meet a typical Business School
let’s meet a typical Business School
let’s meet a typical Business School student today this is Mary in 2017 she’s
student today this is Mary in 2017 she’s
student today this is Mary in 2017 she’s 28 years old and she studied hard to
28 years old and she studied hard to
28 years old and she studied hard to secure her place in a leading business
secure her place in a leading business
secure her place in a leading business school
school
school now she’s if she passes all her exams
now she’s if she passes all her exams
now she’s if she passes all her exams and graduates she can look forward to
and graduates she can look forward to
and graduates she can look forward to working until she’s 65 or maybe 70 years
working until she’s 65 or maybe 70 years
working until she’s 65 or maybe 70 years old assuming she does her work in Korea
old assuming she does her work in Korea
old assuming she does her work in Korea will extend out until the year 2050 9 a
will extend out until the year 2050 9 a
will extend out until the year 2050 9 a date by which time as we’ve just
date by which time as we’ve just
date by which time as we’ve just discussed the global economy must be
discussed the global economy must be
discussed the global economy must be well on its way to becoming carbon
well on its way to becoming carbon
well on its way to becoming carbon neutral and so as we can see the career
neutral and so as we can see the career
neutral and so as we can see the career of Mary and her peers will take place
of Mary and her peers will take place
of Mary and her peers will take place against the backdrop of not just climate
against the backdrop of not just climate
against the backdrop of not just climate change but also a global economy that is
change but also a global economy that is
change but also a global economy that is radically and dramatically transitioning
radically and dramatically transitioning
radically and dramatically transitioning to a low-carbon future so the question
to a low-carbon future so the question
to a low-carbon future so the question is is Mary’s Business School giving her
is is Mary’s Business School giving her
is is Mary’s Business School giving her the education on sustainability and
the education on sustainability and
the education on sustainability and climate action that she will need if she
climate action that she will need if she
climate action that she will need if she is to succeed over the next 40 years
is to succeed over the next 40 years
is to succeed over the next 40 years well today it’s a mixed bag but it’s
well today it’s a mixed bag but it’s
well today it’s a mixed bag but it’s important to give credit where credit is
important to give credit where credit is
important to give credit where credit is due and a number of schools around the
due and a number of schools around the
due and a number of schools around the world are making making important
world are making making important
world are making making important positive moves in the right direction
positive moves in the right direction
positive moves in the right direction whether it be academics undertaking
whether it be academics undertaking
whether it be academics undertaking cutting-edge research on sustainability
cutting-edge research on sustainability
cutting-edge research on sustainability like that we discussed earlier
like that we discussed earlier
like that we discussed earlier from London and Harvard Business
from London and Harvard Business
from London and Harvard Business School’s or maybe it’s sustainability
School’s or maybe it’s sustainability
School’s or maybe it’s sustainability minded student clubs like the net impact
minded student clubs like the net impact
minded student clubs like the net impact group who have blossoming and popping up
group who have blossoming and popping up
group who have blossoming and popping up on campuses all around the world
on campuses all around the world
on campuses all around the world there’s even an entirely new MBA
there’s even an entirely new MBA
there’s even an entirely new MBA programs like the University of Exeter’s
programs like the University of Exeter’s
programs like the University of Exeter’s one planet MBA but on the whole when it
one planet MBA but on the whole when it
one planet MBA but on the whole when it comes to business curriculum and
comes to business curriculum and
comes to business curriculum and sustainability the case is more business
sustainability the case is more business
sustainability the case is more business as usual and where sustainability is
as usual and where sustainability is
as usual and where sustainability is addressed it’s done so as a optional
addressed it’s done so as a optional
addressed it’s done so as a optional elective or a side dish to the main game
elective or a side dish to the main game
elective or a side dish to the main game but as we’ve just discussed climate
but as we’ve just discussed climate
but as we’ve just discussed climate action and the business and it need to
action and the business and it need to
action and the business and it need to respond to sustainability we’ll strike
respond to sustainability we’ll strike
respond to sustainability we’ll strike at the core of business management over
at the core of business management over
at the core of business management over the coming decades and so the message I
the coming decades and so the message I
the coming decades and so the message I want to leave you with today is that
want to leave you with today is that
want to leave you with today is that sustainability is in fact central to
sustainability is in fact central to
sustainability is in fact central to business education not necessarily in
business education not necessarily in
business education not necessarily in big green font or as a standalone
big green font or as a standalone
big green font or as a standalone class in fact sustainability should be
class in fact sustainability should be
class in fact sustainability should be integrated into the foundations of a
integrated into the foundations of a
integrated into the foundations of a modern business curriculum
modern business curriculum
modern business curriculum maybe it’s in accounting classes where
maybe it’s in accounting classes where
maybe it’s in accounting classes where students should be discussing how
students should be discussing how
students should be discussing how companies will track and report on their
companies will track and report on their
companies will track and report on their environmental social and governance
environmental social and governance
environmental social and governance performance finance classes should
performance finance classes should
performance finance classes should include a mandatory lecture on the risks
include a mandatory lecture on the risks
include a mandatory lecture on the risks associated with trauma with stranded
associated with trauma with stranded
associated with trauma with stranded assets and at least one strategy
assets and at least one strategy
assets and at least one strategy assignment in business strategy classes
assignment in business strategy classes
assignment in business strategy classes should feature a scenario where carbon
should feature a scenario where carbon
should feature a scenario where carbon is priced giving students the
is priced giving students the
is priced giving students the opportunity to reflect on and practice
opportunity to reflect on and practice
opportunity to reflect on and practice how they would respond to such scenarios
how they would respond to such scenarios
how they would respond to such scenarios will be invaluable to their future
will be invaluable to their future
will be invaluable to their future careers
careers
careers so where are we and watch the verdict
so where are we and watch the verdict
so where are we and watch the verdict for business schools there’s no doubt
for business schools there’s no doubt
for business schools there’s no doubt that the trend on sustainability in
that the trend on sustainability in
that the trend on sustainability in business education is a positive one but
business education is a positive one but
business education is a positive one but I strongly believe that in less business
I strongly believe that in less business
I strongly believe that in less business schools rapidly and dramatically
schools rapidly and dramatically
schools rapidly and dramatically integrate sustainability into the core
integrate sustainability into the core
integrate sustainability into the core of their business curriculum there’s a
of their business curriculum there’s a
of their business curriculum there’s a real risk that they’ll end up failing
real risk that they’ll end up failing
real risk that they’ll end up failing not just my generation so what are we
not just my generation so what are we
not just my generation so what are we going to do about it
going to do about it
going to do about it how can we make a change well they come
how can we make a change well they come
how can we make a change well they come to the end of my MBA I don’t have all
to the end of my MBA I don’t have all
to the end of my MBA I don’t have all the answers but I for one am committed
the answers but I for one am committed
the answers but I for one am committed to pursuing a new reality and I believe
to pursuing a new reality and I believe
to pursuing a new reality and I believe we all have a role we can speak in the
we all have a role we can speak in the
we all have a role we can speak in the language of business and vote with our
language of business and vote with our
language of business and vote with our wallets if you’re a consumer a
wallets if you’re a consumer a
wallets if you’re a consumer a shareholder show business that there’s
shareholder show business that there’s
shareholder show business that there’s rewards for taking action and taking
rewards for taking action and taking
rewards for taking action and taking climate action seriously if you’re with
climate action seriously if you’re with
climate action seriously if you’re with a company or a business professional
a company or a business professional
a company or a business professional tell business schools and business
tell business schools and business
tell business schools and business school ranking organizations that you
school ranking organizations that you
school ranking organizations that you want talent that’s ready for a
want talent that’s ready for a
want talent that’s ready for a low-carbon future and if you’re a
low-carbon future and if you’re a
low-carbon future and if you’re a student or an alumnus demand more ask
student or an alumnus demand more ask
student or an alumnus demand more ask questions and get involved
questions and get involved
questions and get involved after all we’re the customer and last
after all we’re the customer and last
after all we’re the customer and last time I checked we’re paying an awful lot
time I checked we’re paying an awful lot
time I checked we’re paying an awful lot for it so there is one thing I learnt in
for it so there is one thing I learnt in
for it so there is one thing I learnt in Business School and that’s that
Business School and that’s that
Business School and that’s that organizational change takes time but I
organizational change takes time but I
organizational change takes time but I believe that together with encouragement
believe that together with encouragement
believe that together with encouragement support and pressure we can kick off a
support and pressure we can kick off a
support and pressure we can kick off a revolution in business education that
revolution in business education that
revolution in business education that will not only benefit future business
will not only benefit future business
will not only benefit future business school students like me but also
school students like me but also
school students like me but also businesses society at large and the
businesses society at large and the
businesses society at large and the planet upon which we all depend thank
planet upon which we all depend thank
planet upon which we all depend thank you
”
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