GOVERNING SUSTAINABILITY

EXAM: Clearness, synthesis, consistency and critical judgment will be given particular merit.
LEZ.1-2 AIMS: To introduce the concepts of sustainability and sustainable development and their evolution over
time. To assess the role of governance for sustainability
22/02 lez 1
There is an urgent call for change about sustainability matters (climate change, ecological matters, human call,
unfair working conditions, economic justice). It is necessary a new way to govern these matters.

“These crises of human development are very much in our own making. It is the relationship between humans and
their environment and, ultimately, the relationship between us all that is at the root of the sustainability
problematique […]. Consequently, it is this relation-ship that has to be a full part of any solutions to the almighty
mess that we as human race now face” Adger and Jordan (2009) Preface of Governing Sustainability

A possible change in this situation is based on a new role in the economic system: change new relationships
through people , systems, actors

Holistic approach interconnected process

In this course it will be proposed an holistic approach to

sustainable development, which encompasses three overarching
concerns :
maintaining ecological and environmental health;
creating economic welfare;
ensuring social justice
and three different levels societal (macro- level), organisational (meso), and
individual (micro) levels.
The human being is the start in and the ending point

People are part of the organization and are part of the business transition.

A polycentric way to look at governance sustainable related:

Sustainability as a crisis of governance.
Ø We need a system of governance that is capable of putting society on a more sustainable track.
Ø The real innovation and dynamism in governance systems for a sustainable world lies anywhere other than in
conventional sites (like governments).
Ø central role of relationship
�New modes of governance where different actors at different levels are involved
Ø Polycentric governance

We need to rethink to a new system of governance with a more sustainable truck

Different ways outside of the conventional studies:
Evolution of goals through UN policy

Emergence and evolution of the concept of sustainability The demand for raw materials and its impact on the
environment have been a constant issue throughout human history. As early as the ancient Egyptian,
Mesopotamian, Greek and Roman civilizations environmental problems such as deforestation and the salinization
and loss of fertility of soil occurred, which we would today refer to as sustainability problems. Different classical
authors discussed different types of environmental degradation resulting from human activities such as farming,
logging and mining (see Plato, Strabo and Columella, Pliny the Elder, etc.)
We can, by care … ‘we can, by care, lessen the evil effects’ Varro (1st century AD) These authors were not only
aware of environmental degradation, but also recommended what we would call sustainable practices to maintain
the ‘everlasting youth’ of the earth.

18th century - wood intense usage

Wood was both as fuel and construction material an indispensable raw material up to at least the 18th century and
it was used in almost all production processes:
Ø massive consumption of wood (for ship-building, mining and many other purposes)
Ø a shortage of wood became a very real danger in Europe
Ø fears that such a shortage would threaten the basis of people’s existence
Ø stimulated a new way of thinking in favour of the responsible use of natural resources

From the 1950s…

Industrial revolution: a drastic growth in production, consumption and wealth
Between 1800 and 1970: World population: about +3 times (from around 978 to 3,632 million)
Quantity of manufacturing production: + 1730 times Expectations of unlimited economic growth and ever-
increasing affluence Power of technology

The limits to growth 1970

First Earth Day held as a national teach-in on the environment. An estimated 20 million people participate in
peaceful demonstrations across the United States. 1972 Club of Rome publishes the controversial Limits to
Growth, which predicts dire consequences if growth is not slowed 1973 – First oil crisis Reflection upon the
causes of the recession led to an awareness of the limits to economic growth.
Begin some environmental movements bringing

Limits to growth
‘‘If the present growth trends in world population, industrialization, pollution, food production, and resource
depletion continue unchanged, the limits to growth on this planet will be reached sometime within the next one
hundred years. The most probable result will be a rather sudden and uncontrollable decline in both population and
industrial capacity’’. Meadows et al. 1972: 23
What are the ”Limits to growth”?
https://www.bing.com/videos/search?q=limits+to+growth&&view=detail&mid=74D15123E919ED935E1474D15
123E919ED935E14&FORM=VRDGAR � since the 1900 the natural resources was use intensively, due to the
expansion of populations. The limits to growth suggest the world faced a stark choice: cut down its waist or face
imminent global collapse. Mathematical way to measure data. The trend predicted by studies was the purple point
in the graph. We are very close to the prediction, but in a worse position than predicted years ago. This study
predicted a collapse in 2030, for this reason UN wants to achieve
several goal by 2030 to avoid this collapse predicted.
There is a general thinking about growth.
Technology is not able to solve all types of problems. It is not an
unlimited power.

25/02 lez. 2
What has happened in the last few decades? Why now the call is
urgent?
Population growth, urbanization and ecological footprint

Now the recall for a change is urgent because there are a lot of signals.
There are some good points on the graph but they are not
enough.
We were less than one billion people, so the situation was
variable with different resources available. The real
shift/change was in 1950 and started really in 1970. At the
beginning of ’70 we realized that we were on an unsustainable
track.
There is warring data because there are a lot of people on the
planet and we will reach 10 billion people in 30-40 years.
(population growth fast).

In Asia and Africa there are the most populated countries of

the world and they are affected by the problem of poverty,
migrations. It is a vicious circle.
Until 2010

The Ecological Footprint

• Ecological Footprint accounting measures the demand on
and supply of nature.
• On the demand side, the Ecological Footprint measures the ecological assets that a given population requires to
produce the natural resources it consumes (including plant-based food and fiber products, livestock and fish
products, timber and other forest products, space for urban infrastructure) and to absorb its waste, especially
carbon emissions. https://youtu.be/EjyrAHzthTo we can calculate our personal ecological footprint of one
entire city
• The Ecological Footprint tracks the use of six categories of productive surface areas: cropland, grazing land,
fishing grounds, built-up land, forest area, and carbon demand on land.
• On the supply side, a city, state or nation’s biocapacity represents the productivity of its ecological assets
(including cropland, grazing land, forest land, fishing grounds, and built-up land). These areas, especially if left
unharvested, can also absorb much of the waste we generate, especially our carbon emissions.
• The Ecological Footprint can be calculated for a single individual, city, region, country and the entire planet.
There are a lot of indicators in how the natural resources are consumed. How much did we create an impact on
the environmental system?
Mexico absorbs the same quantity of waste produced. Qatar consumed
much more resources it is able to produce it is wrong.
In red there is the ecological deficit the biocapacity is imported,
because it is consumed much more resources than produced. All the
developed countries are red, because they used much more resources.
The green area has a very strong capacity to produce resources. Brazil
is light green because there was a worst situation in the last years.
Actually the world has an average of red situation regarding the human’s ecological footprint. (from 1970! Before
there was a perfect equilibrium).

Earth Overshoot Day

Earth Overshoot Day marks the date when humanity’s demand for ecological resources (fish and forests, for
instance) and services in a given year exceeds what Earth can regenerate in that year. We keep growing this deficit
by liquidating the Earth’s natural capital and accumulating waste, primary

“Our data show that we use as much from nature as if we lived on 1.75* Earths, yet we only have one. This is not
a judgement, just a measurement. In this context, bringing human activity back within the ecological budget of our
one planet is not about doing the noble thing or easing our guilty conscience. It is about choosing self- interest and
what works. We will move out of ecological overshoot. Why choose to get there by disaster rather than by
design?” MATHIS WACKERNAGEL, Founder and President of Global Footprint Network
try to find/design new solutions, to face these new challenges
the new situation has presented.

Urban population
• Humanity is turning from rural to an urban species
• Global urbanization is seemingly unstoppable worldwide
• In developed and developing countries cities offer more
opportunities
• Today, there are more than 300 cities of 1 mil. people and 22
megacities of over 100 mil. people (16 in developing countries).
Why is it a problem?
We have a strong movement in the city to try to catch new opportunities. The carbon footprint of cities is the
problem. The impact of big cities is really huge.

Cities’ ecological footprint

• London ecological footprint = 125 times the surface area of the city itself (= England’s entire productive land)
• A typical North American city with a population of 650,000 would require 30,000 square km of land to meet its
domestic needs.
• A similar size city in India (with significantly lower living standards and a predominantly vegetarian diet) would
require just 2,800 square km.
A possible trend ... https://www.youtube.com/watch?v=JDS_BqDeZ4k&li
st=PLbkp8T4KsMtrdNSzt3XOXvHHo6Z4itF1j&index=92
The rise of megacity increases year by year: in Africa there will be a fast urbanization, in India too.

Planetary boundaries and climate change

Planetary boundaries is an index/calculation in different areas, regarding the biodiversity problem, climate
change, desertification, fresh water, acidification of ocean…each area has a color between green, yellow and red,
in accordance with the risk.

The global average temperature anomaly is increased and is increasing: from 1950 to 2018 from -0.8 to 1
grade.--> -lose of species, extreme weather, sea-level rise, arctic sea ice and people.

A Tale of Humanity and Habitability

By 2070 one third of the global population is projected to experience an average annual temperature greater than a
scorching 29 °C. For 3.5 billion of us, the very places where our hearts and identities lie may become parched and
unforgiving deserts, or hot and humid open-air saunas. Our house is on fire. By rapidly reducing greenhouse gas
emissions, we can halve the number of people exposed to such hot conditions. For every degree of warming we
prevent, we can relieve one billion people

Climate Change
Scientists attribute the global warming trend observed since the mid-20th century to the human expansion of the
"greenhouse effect» — warming that results when the atmosphere traps heat radiating from Earth toward space.
Certain gases in the atmosphere block heat from escaping. Long-lived gases that remain semi-permanently in the
atmosphere and do not respond physically or chemically to changes in temperature are described as "forcing"
climate change. Gases that contribute to the greenhouse effect include carbon dioxine.
Melting glaciers
The glacial melt we are witnessing today in Antarctica and Greenland is changing the circulation of the Atlantic
Ocean and has been linked to collapse of fisheries in the Gulf of Maine and more destructive storms and
hurricanes around the planet.
The strong extreme weather changes a lot the melting of glaciers.

Climate change is making extreme weather stronger

Research shows the polar vortex is appearing outside of the Arctic more frequently because of changes to the jet
stream, caused by a combination of warming air and ocean temperatures in the Arctic and the tropics.

Attributing extreme weather to climate change

Carbon Brief’s analysis reveals:
– 69% of the 355 extreme weather events and trends included in the map were found to be made more likely or
more severe by human-caused climate change.
– 9% of events or trends were made less likely or less severe by climate change, meaning 78% of all events
experienced some human impact(were affected by human actions). The remaining 22% of events and trends
showed no discernible human influence or were inconclusive.
– Heatwaves account for 47% of such events, while droughts and heavy rainfall or floods each make up 15%.
– Of the 125 attribution studies that have looked at extreme heat around the world, 93% found that climate change
made the event or trend more likely or more severe.
– For the 68 studies looking at rainfall or flooding, 54% found human activity had made the event more likely or
more severe. For the 61 drought events studied, it’s 61%.

The effects of extreme weather � are much more higher and stronger: social, economical and natural impact
Extreme can cause not only environmental and economic, but also social problems like migration, inequality,
clean water not available..
A question of justice: climate change, conflicts and poverty

ecological justice is a problem: Access to live, access to clean

water are problems of countries that contribute less to climate
change (less footprint).
The recent stream of resources and environmental events are
linked to the conflicts present in our planet. Ex access to fresh
water can create

conflict.

it is a problem of justice, human being social conflict

60% of the gdp is vulnerable to climate change!
All these data show us the interconnection between the social,
economical and environmental dimensions.
1/3 of world top land has been abandoned in the last years
Nobel peace price in 2020 was for the world food programme WFP: it is a program that contributes to help to
create peace in terms of reaching food in conflict-affected areas.

01/03 lez.3
10% of people around the world live in poverty conditions. It is unsustainable from the point of view of UN.
Friedman put a strong ethical field on the
stakeholder theory. This association tries to put the
attention on the environmental clock, poverty is
rising and we are out of track. We have some
countries like New Zeland that are on track. A little
number of population use a large amount of natural
resources available inequality
Covid has raised the inequality.

Unequal distribution of resources

Inequality has increased anywhere in the world despite substantial geographical differences, with the richest 1%
twice as wealthy as the poorest 50%.
World Inequality Report 2018.

The increasing the level of the seas, rivers, increasing

the storms but it is also increasing the human
movement to fight against all these problems.
Link/interconnections between refugees and
sustainable development: poor people become
vulnerable because they are impacted by
unsustainable problems that make poor people migrants. the
sust. problem could be a problem caused to the migration
economic consequences, because it is not only a social problem
but also an economic problem.
We also have a huge economic impact.
There is a strong interconnection on every part of sustainability
problems. The countries where these people move are not very
well developed/rich countries. These movements of people increased the instability of a country (like from
Afghanistan to Pakistan, from Bolivia to Venezuela..) they are hosting in developing countries, not in developed
countries. It is a much more problem of the developing countries were economic and social situation is really
fragile
Human development index: expectation of life, human development in social
dimension, born expectation…
In the rectangular, the countries on the borders are empty.
Survival of the human race. We should think in our way of thinking, how to
set our community, how to produce goods, how to keep and maintain our
community, how to create an equilibrium…

Sustainability as a complex and multidimensional concept � SOCIAL+ENVIRONMENT+ECONOMIC

where Economic is inside the social and social is included in environment.

Video from LASTCALL�a man that invented chess. More is not necessary
because there are limits. There are limits on human growth and it was written in
a book. But not all people agreed. The need is for the present/early to avoid the problem in the future. Capitalism
will not solve this problem. Sustainable world no poverty, no hungry. SENTENCES IN THE VIDEO: importance
in look in the long-term
term on the future generation not only in the presence. We need to think about the future of our
children. It is not a question of conveni
convenience,
ence, but is a problem of survival in the future ethics of care. We need to
change some habits and it is very difficult. (the differentiation of wastes was a difficult process in Italy)

The last call …

This growth is going to stop, it must stop and it w
will stop. Jay Forrester
We have learned that more is not necessarily better but even our great nation has to recognize limits. Jimmy
Carter, 1977
We believed then and now there are no limits to growth and human progress when men and women are free to
follow
w their dreams. Ronald Regan 1984
Democracy and capitalism will not solve those problems we do need a fundamental paradigm shift in the area of
governance (national and international governance). Jorgen Randers

Lez.4 04/03
THE UN COMMITMENT ON SD

Re-cap
Ø Urgent calls: global and local big challenges
Ø The potential of human beings as both the cause and the possible solution for sustainability-related
sustainability issues
→ The need for a paradigm shift and a local and global governance
→ The evolution of the policies
icies and commitment of the UN on SD
The need for a paradigm shift and a local and global governance
“We cannot solve our problems with the same thinking we used when we created them”. Albert Einstein
“Why choose to get there by disaster rather than by design?”. Mathis Wackernagel Founder
and President of Global Footprint Network

How the human being could be the possible solution for a new sustainability world.
Why are some SD programs failed?
The economy is part of a bigger system: the society and en
environment.
vironment. We need a new model to
try yìto find a new solution. is not really a question of profit maximization, but a question to
find an equilibrium with economic stability, environmental problems → change our way to
think and to act.
we have to stop to measure the performance of companies only through economic
indicators.
A journey to the future... “Making progress towards (sustainability) is like going to a country we have never been
to before… We do not know what the destinations will be like, we ca cannot
nnot tell how to get there, we are not even
sure which direction to take” Prescott-Allen,
Allen, 2001
The journey to the future is a learning process shared by everyone: learning and creating our common future at the
same time. The journey to the future is about unlearning our current worldview and learning a new sustainable one
to replace it. This learning is truly transformative.

the need to design and to find solutions → not be passive enphasaying disasters.
What is evident is the mental model → conceptualization that producing more is good thinking; more buying is a good
way to help the economy. The mental model is a wrong way to look at the world in terms of richness, poverty, growth
etc...
all the sentences are important.
SD is a journey to the future, is a path. We can’t find solutions using the same way to think in the past. Future is
something we need to reinvent and create.
with SD we have to focus on the present to create a better future. A call for solidarity for future generations,
creating justice and solidarity for present generations.

‘25min

Sustainable Development: the UN journey

Sustainable development is … “… development that meets the needs of the present without compromising the
ability of future generations to meet their own needs”.
a change of perspective …
“The way in which humans perceive, value, and experience environmental loss was seen to be just as important as
the absolute scarcity or resources or the quality of human life”

The “Blue Marble,” Earth is revealed as both a vast planet home to billions of creatures and a beautiful orb capable
of fitting into the pocket of the universe. ONLY ONE EARTH Our Common home Home» is a reminder that the
space we inhabit extends beyond our house, neighbourhood, country and even continent - and it’s up to us to take
care of it.

Lez.5 08/03/2021
last lecture of the first part → SD and interconnection
UN first conference 1972→ absence of Germany and Russia during the meeting, the role of companies was a problem.
They try to find a common/international solution.
In the following conferences, initially the arguments were about only environmental topics.
1980s strong economic crisis (oil crisis) → vulnerability of the economic system. → international conflicts
second positions linked with Marist positions→ western countries would have at the expense of the underdeveloped
countries→ they cut all contact to be autonomous.

What have been done?

The path and role of UN on Sustainable Development
Stockholm 1972 –
Only one earth UN Conference on Human Environment. A few key aspects
- Role of companies
- Role of civic society
- Socio-political aspects/problems
- Full engagement and commitment for an international cooperation

Stockholm 1972 – Only one earth UN Conference on Human Environment

It should be the main purpose of the Conference to serve as a practical means to encourage, and to provide
guidelines for, action by Governments and international organizations designed to protect and improve the human
environment and to remedy and prevent its impairment, by means of international cooperation, bearing in mind the
particular importance of enabling the developing countries to forestall the occurrence of such problems.
The 114 governments represented in Stockholm reached an unprecedented level of agreement. Not least due to the
diplomatic skills of the conference's Secretary-General Maurice Strong, UNCHE not only established a remarkable
Declaration of Principles, but also came up with the necessary institutional arrangements for international
cooperation in environmental protection.
A point has been reached in history when wwee must shape our actions throughout the world with a more prudent
care for their environmental consequences. Through ignorance or indifference we can do massive and irreversible
harm to the earthly environment on which our life and well being depend. Conve
Conversely,
rsely, through fuller knowledge
and wiser action, we can achieve for ourselves and our posterity a better life in an environment more in keeping
with human needs and hopes... To defend and improve the human environment for present and future generations
hass become an imperative goal for mankind’ United Nations 1972

Development and gap between countries

Modernization theory → Based on liberal values. The developing countries should emulate the Western model of
development by modernizing their societies ttoo take on the features of the economically advanced countries.
In short: the way to reduce poverty in the periphery is to give the core more access to their resources and markets
and encourage the continued growth of international capital, which will pull along the less-developed
less areas of the
world as it advances.

Dependency theory → Based on Marxist theory The basic message of this theory is that Western development is
predicated on the active underdevelopment of the non
non- Western world. Economic domination,
domina power, control.
solution: Developing countries should sever their linkages with Western capitalist countries in order to follow an
autonomous, independent path of development based on socialism.

It is not clear how «a slowly rising tide [of economic growth] will lift all ships. In fact, there is well-founded
well fear
that the tide may be ebbing and leaving them [the ‘developing’ countries] behind as litter on the beach» Pirages,
1990: 2-33 quoted in Bebbington, 2001: 131

A new approach… At the core of human

uman development concerns is the nature of the system which generates
economic, environmental and social outcomes. Further, the primary goal of the development is on meeting
human needs of present and future generations. → UN WCED - World Commission on Environment
En and
Development

1987 – Brundtland Report UN WCED - World Commission on Environment and Development

The Brundtland Report focused primarily on the needs and interests of humans, and was concerned with securing a
global equity for future generations by redistributing resources towards poorer nations to encourage their
economic growth in order to enable alll human beings to achieve their basic needs. The report expressed the belief
that social equity, economic growth and environmental maintenance are simultaneously possible,
possible thus highlighting
the three fundamental components of sustainable development, the
environment,
nvironment, the economy, and society
society, which later became known
as the triple bottom line. The report discussed the need to apply
integrated, sustainable solutions to a broad range of problems
related to population, agriculture and food security, biodiversi
biodiversity,
energy choices, industry, and more

1987 – BrundtlandReport
Sustainable development is … “… development that meets the
needs of the present without compromising the ability of future generations to meet their own needs”. “
…sustainable development is not a fixed state of harmony, but rather a process of change in which the exploitation
of resources, the orientation of the technological development, and institutional change are made consistent with
future as well as present needs”. World Commission on E Environment
nvironment & Development Our Common Future, 1987
(Brundtland Commission Report)

1992 – Rio de Janeiro UN Conference on Environment and Development

Two legally binding conventions: - Framework Convention on Climate Change (UN FCCC) - Convention on
Biological Diversity
Ø Principles of Forest Management
Ø Rio Declaration on Environment and Development
Ø Agenda 21

UN Convention on Climate Change (UNFCCC)

The UNFCCC entered into force on 21 March 1994. Today, it has nearuniversal membership. The 197 countries
that have ratified the Convention are called Parties to the Convention. Preventing “dangerous” human interference
with the climate system is the ultimate
ate aim of the UNFCCC

Kyoto Protocol (1997)

The Kyoto Protocol is an international agreement linked to the United Nations Framework Convention on Climate
Change, which commits its Parties by setting internationally binding emission reduction targets. Recognizing
Rec that
developed countries are principally responsible for the current high levels of GHG emissions in the atmosphere as
a result of more than 150 years of industrial activity, the Protocol places a heavier burden on developed nations
under the principle
ciple of "common but differentiated responsibilities”.

agenda 21 underlying the role of local government in particular to push a more sustainable development. → try to
improve performance on a social point of view.
Kyoto protocol 1997 → try to set specific
ific plans that every country should follow/reach (ex. reduce the emission by
5%) [GHG =greenhouse emission]
concept of differentiation → different responsibilities, different contribution to GHG of the countries. They are all
responsible for social and environmental problems, but it is necessary to differentiate the flow of GHG by countries. the
developing countries are less likely to create emission than the developed. shared by differentiated responsibilities.
Every country should participate in this programme but with some differentiations.
China had unexpected results in the growth of emissions in the first period of analysis (to
2011).

The Kyoto Protocol was adopted in Kyoto, Japan, on 11 December 1997 and entered into
force on 16 February 2005.5. The detailed rules for the implementation of the Protocol
were adopted at COP 7 in Marrakesh, Morocco, in 2001, and are referred to as the
"Marrakesh Accords." Its first commitment period started in 2008 and ended in 2012.
In Doha, Qatar, on 8 December 2012, the "Doha Amendment to the Kyoto Protocol" was
adopted. The amendment includes: -newnew commitments for second period from 1 January
2013 to 31 December 2020; -aa revised list of greenhouse gases (GHG) to be reported on
by Parties in the second commitmentnt period
During the first commitment period, 37 industrialized countries and the European Community committed to
reduce GHG emissions to an average of 5% against 1990 levels. During the second commitment period, Parties
committed to reduce GHG emissions bby at least 18% below 1990 levels in the eight--year period from 2013 to
2020. The composition of Parties in the second commitment period is different from the first.
→ Total target: - 5% total emissions of industrialized countries (between 20082008–2012)
2012) – Developing countries:
no limitations
First commitment period 2008 – 2012 Total target: - 5% total emissions of industrialized countries

Difficulties in a always moving context

USA, responsible of about 36% of the global emissions, didn’t sign the Protocol Unexpected growth of countries
like China and India Results: total emissions growth.
Monitoring emission targets
Under the Protocol, countries' actual emissions have to be monitored and precise records have to be kept of the
trades carried out.
Registry systems track and record transactions by Parties under the mechanisms.
Reporting is done by Parties by submitting annual emission inventories and national reports under the Protocol at
regular intervals.
Compliance system ensures that Parties ar
aree meeting their commitments and helps them to meet their commitments
if they have problems doing so.
Adaptation The Kyoto Protocol, like the Convention, is also designed to assist countries in adapting to the adverse
effects of climate change
Adaptation Fund was established to finance adaptation projects and programmes in developing countries

The Paris Agreement (2015)

The Paris Agreement builds upon the UNFCCC and for the first time brings all nations into a common cause to
undertake ambitiouss efforts to combat climate change and adapt to its effects, with enhanced support to assist
developing countries to do so. As such, it charts a new course in the global climate effort.
The central aim is to strengthen the global response to the threat of climate change by keeping a global
temperature rise this century well below 2 degrees Celsius above prepre-industrial
industrial levels and to pursue efforts to limit
the temperature increase even further to 1.5 degrees Celsius. Additionally, the agreement aims to strengthen
stren the
ability of countries to deal with the impacts of climate change. To reach these ambitious goals, appropriate
financial flows, a new technology framework and an enhanced capacity building framework will be put in place,
thus supporting action by developing
eveloping countries and the most vulnerable countries, in line with their own national
objectives. The Agreement also provides for enhanced transparency of action and support through a more robust
transparency framework.

6 Signs of Progress Since the Adoption tion of the Paris Agreement

1. Over 1,000 Big Companies Pledged Major Emissions Reductions
2. Major Cities Are Improving Urban Life While Building Climate Resilience
3. Financial Institutions Recognize That Funding Fossil Fuels Is a Bad Investment
4. Technological
echnological Advances Make Renewable Energy and Other Solutions More Attainable
5. Expanding Social Movements Reflect the Public’s Growing Demand for Climate Action
6. Country-level
level Action Is Starting to Accelerate https://www.wri.org/blog/2020/12/paris-agreement-progress-
https://www.wri.org/blog/2020/12/paris
climate-action
action https://www.weforum.org/agenda/2020/12/paris
https://www.weforum.org/agenda/2020/12/paris-agreement-climate-change/
change/

Johannesburg, 2002 – World Summit on Sustainable Development

We recognize that poverty eradication, changing consumption and production patterns and protecting and
managing the natural resource base for economic and social development are overarching objectives of and
essential requirements for sustainable development.
Johannesburg, 2002 – World Summit on Sustainable Developmen
Development
Main points:
1. Poverty e Millennium Development Goals 9.
2. Water, health and sanitation Africa
3. Energy
4. Health
5. Agriculture
6. Biodiversity and natural systems
7. Globalization
8. Production and consumption models
The problem: Specific targets, timelines, etc. but not resources specifically devoted
a growing awareness where all countries are moving towards the possibility to reach agreement points→
points cultural
change, is a responsibility
ponsibility of everyone of different level of they can do in their different level
millenium development goals→
→ people live in a better way, we have the power to change. it is a methods to motivate
people and to track people, changes and countries around the world.
partnership among different actors, in terms of participation of everyo
everyone.

2000 - United Nations Millennium Summit

In September 2000, building upon a decade of major United Nations conferences and summits, world leaders (149
+ 40) came together at United Nations Headquarters in New York to adopt the United Nations Millennium
Millenniu
Declaration, committing their nations to a new global partnership to reduce extreme poverty and setting out a
series of time- bound targets - with a deadline of 2015 - that have become known as the Millennium Development
Goals
September 2015: Transforming g Our World: the 2030 Agenda for Sustainable Development
The new Agenda calls on countries to begin efforts to achieve 17 Sustainable Development Goals (SDGs) over the
next 15 years.
The goals address the needs of people in both developed and developing ccountries,
ountries, emphasizing that no one should
be left behind. Broad and ambitious in scope, the Agenda addresses the three dimensions of sustainable
development: social, economic and environmental, as well as important aspects related to peace, justice and
effective institutions.
The mobilization of means of implementation, including financial resources, technology development and transfer
and capacity-building,
building, as well as the role of partnerships, are also acknowledged as critical.

Sustainable Development Goals ls (SDGs

(SDGs)
1. End poverty in all its forms everywhere
2. End hunger, achieve food security and improved nutrition and promote sustainable agriculture
3. Ensure healthy lives and promote well well-being for all at all ages
4. Ensure inclusive and equitable quality ity education and promote lifelong learning opportunities for all
5. Achieve gender equality and empower all women and girls
6. Ensure availability and sustainable management of water and sanitation for all
7. Ensure access to affordable, reliable, sust
sustainable and modern energy for all
8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent
work for all
9. Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation
inn
Goal 10. Reduce inequality within and among countries
11. Make cities and human settlements inclusive, safe, resilient and sustainable
12. Ensure sustainable consumption and production patterns
13. Take urgent action to combat climate change and its impacts
14. Conserve and sustainably use the oceans, seas and marine resources for sustainable development
15. Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat
desertification, and halt and reverse
verse land degradation and halt biodiversity
loss
16. Promote peaceful and inclusive societies for sustainable development,
provide access to justice for all and build effective, accountable and inclusive
institutions at all levels
17. Strengthen the means ans of implementation and revitalize the global
partnership for sustainable development
→ UNIVERSALITY DIFFERENTIATION

Next steps Ø The three levels of sustainability – Prof. Elena Cavagnaro

Ø Defining governing, governance and governmentality
Ø Working on a real case study at local government level (the Karoo case study)
Ø Conceptualizing responsibility in a social
social-connection way
Ø Looking at real cases (companies and investors)

Lez,6 11/03
• Introducing
– Aim of the course and timeline
– Expectations and online etiquette
–Sustainability
• WHY? –Sustainability
Sustainability as a paradigm shift & the Three Levels of Sustainability framework (TLS)
• WHAT? –TLS and the Karoo case
Timeline (again) and tips & tricks
• HOW? –Timeline
Aim of the course
ore sustainability as a paradigm shift in the way people look at society, organizations, and individuals
• To explore
• To evaluate the role of stakeholders’ analysis in sustainable development
• To engage with a case exemplifying sustainability as a process playing at three levels and implying nine
dimensions

The case: Karoo

• The course conclusion is a stakeholders’ meeting on the basis of a case, the Karoo case
• In the Karoo different path of development may be pursued, along which shale gas exploitation and tourism
t
• This case offers a real-life
life illustration of how the discussed concepts shape reality
• The case will be / has been share with you: please read it before March 25

Sustainability: a working definition Sustainability means to live our life in a w way

ay that all actions we take do not
reduce the possibilities for other people to live their lives, without regard of where they live or when they will live

On paradigms (fish looked by a cat and by a child)

› Paradigms are a way of looking , a way a constructing reality
› What we see influences what we do, and what we do influences what we get.

Economy and nature: paradigm 1

→ The economy is the whole and therefore it can grow forever.
→ A. Smith (1776) The wealth of nations M. Keynes (1930) the possibilities of our grandchildren
Is this paradigm the nearest to reality?
Mechanism 1: growth in a finite system
› Imagine a lake and a lily plant
› The lily doubles its size each day
› How many days are left for the lily to cover the w
whole
lake when it covers half of it?
› What does this mean for growth on our planet?
› I=P*A

Malthus → population and resources (in terms of

agriculture, 1980) . the resources of agriculture need to
fit with the population.
There was an increase of output of agriculture thanks to
new techniques (industrial revolution). the population
growth very fast and there were enough appropriate resources for all people. the population growth down and
there was again the equilibrium.
EX-over tourism → the amount of people ( tourists ) in one destination exceeds the capability of that destination to
support the amount of people. in terms of accomodations, restaurants, streets, hause, ecc.

Malthus & AirB&B impact on house prices ((Fried, 2017)

Lovelock: the Gaya theory

• Proposed in 1979 as an hypothesis has been supported by research in ‘Earth sciences’
• Earth is a system working to keep and enhance life
• The earth system is resilient but there are tipping points
→ both support the massage of limit to growth

Economy and nature:2 paradigms

There are no limits to growth because:
› Earth is an inexhaustible source of materials; › Earth is a
limitless sink.
There are limits to growth because:
› Earth is finite as a source of materials; › Earth is finite as
a sink.
1→→ •A raising tide will lift all boats • The main assumption after
WWII was that wealth will trickle down from rich to poor and
solve all social problems

Yet: world income distribution

Who wishes to explain the message of this graph in own words? Any thoughts on the main causes of the skewed
world income distribution? Use the chat
after II world War developing countries became a place where to find resources (colonisation) and nothing more.
there was a fight for freedom, for democracy..

Message:
Causes Some of the causes of the skewed wealth distribution are:
- industrialisation - colonialism - geographical conditions
• Socio-economic
economic causes are interlinked with environmental causes

Interplay P, A and Earth boundaries in the ecological footprint

it is a powerful representation of how people use resources and ecological pprints.

Two paradigms
There are no limits to economic growth because: → un sustainable paradigm
› Earth is an inexhaustible source of materials;
› Earth is a limitless sink;
› Wealth will trickle down form reach to poor by default.

Economic growth is sustainable only if it stays inside Earth’s limits: →

sustainable paradigm
›Earth is finite as a source of materials;
›Earth is finite as a sink;
›A equitable distribution of wealth can be achieved only by design.

Societies and organisations

• Societies are constituted by organisations
• Organisations primary social responsibility is to make a profit (Friedman,
1972)
• Are there alternatives? – next lecture!

LEZ.7 del 15/03

Sustainability: the level of organisati
organisations
1. Give a general definition of sustainability
2. Why is sustainability needed?
3. What is a paradigm and how we can use it to understand sustainability?
4. Describe the two paradigms at the level of society

Level of society: two paradigms

1- There are no limits to economic growth because:
› Earth is an inexhaustible source of materials;
› Earth is a limitless sink;
› Wealth will trickle down form reach to poor by default
2- Economic growth is sustainable only if it stays inside Earth’s limits:
›Earth
Earth is finite as a source of materials;
›Earth is finite as a sink;
›A equitable distribution of wealth can be achieved only by design.
To exemplify: Hospitality & tourism (pre (pre-COVID-19 data)
• Hospitality and tourism account for 5% till 10% of total C CO2
O2 emission worldwide
• This makes hospitality and tourism one of the most polluting industries worldwide
• Consider:
–40%
40% of the total hospitality and tourism emissions is due to transport; 20% due to accommodation
–CO2
CO2 imbedded in e.g. food needs sti still to be considered
Societies and organisations
• Societies are constituted by organisations
• Organisations primary social responsibility is to make a profit
(Friedman, 1970)
• Is there an alternative?

Businesses engagement with sustainability: angels or demons?

• Pre-1992:
1992: demons by definition & business ethics is an oxymoron
• 1992 the Business Council for Sustainability is created by Schmidheiny
(CEO of swatch brand)) and joins Earth Summit
• 1997: a turning point for global corporations
• 2000-2010: angels in disguise?
• 2010-2020:
2020: the lost decade? Looking for ethical and responsible leadership

Do businesses have a responsibility beyond profit?

M. Friedman, 1972→ → M. Friedman: “The social responsibility of business is to increase its profits”. He has a
footprint in american economic history. Business have responsibility beyond profit? If a manager makes profits
and uses these monies to make some investment to contribute social responsibil
responsibility
ity it’s morally wrong for the
company. only focused to make profits.
Business: paradigm 1
› Profit = revenues – costs that cannot be avoided
› Managers’ only responsibility is towards the owner, the shareholders
› Externalities are avoided only if in the
he shareholders’ interests

An example of Friedman’s position applied to sustainability

‘Bilderberg uses a system of sustainable operational management in all its hotels. For example, we are taking steps
to reduce our water and energy consumption and are ddrastically
rastically reducing the amount of waste we produce’:
(Bilderberg [online]. Available from https://www.bilderberg.nl/en/about
https://www.bilderberg.nl/en/about-us/.
us/. Accessed 06 February 2018).

• The primary social responsibility of businesses is to make a profit – thus providing society with
wi useful good and
services
•Businesses should respect law & customs
•Diverting profit to philanthropic activities is unethical

→ Total Corporate Social

Carroll, 1979 and 1996→
Responsibility = Economic Responsibility + Legal
Responsibility + Ethical Responsibility
ponsibility + Discretionary
(Philanthropic) Responsibility

An example of Carroll’s position WRONGLY applied to

sustainability

→ • Corporate Social Responsibility in the 21st century = Triple bottom line = “economic
Elkington, 1997→
prosperity; environmental quality and – the element which business has preferred to overlook – social justice”
(Cannibals with forks, The triple bottom line of 21st ce century
ntury businesses, 1997 p. 70)
• It is unethical to achieve profit at the expenses of people and planet = no harm
(ethical) principle

Business: paradigm 2
› Profit = revenues – full costs
› The responsibility of managers is to achieve an equitable bal
balance among the
interests of all stakeholders involved such as shareholders; employees; suppliers;
and clients
› Externalities are avoided (Abrams, 1951; Bowen, 1953; Freeman, 1984 )

An example of Elkington’s position applied to sustainability

] We believee that sustainability is the key factor which will allow tourism to continue to be the driver of economic
development in many countries. […] Tourism is a business which is extremely sensitive to the environment in
which it takes place. Extreme climate and weather events such as hurricanes and floods, drought or lack of snow,
have an effect on tourism. The loss of a cultural identity in a destination may make it less attractive for tourism as
it implies the disappearance of something that made it unique. The existence of poverty in certain communities in
which we operate is also a reality to be faced. Seeking improvements in such situations are an obligation which we
must satisfy before our staff, our customers and society in general’ (Meliá Hotel International
Internation Sustainability Policy
[online]. Available from
http://www.meliahotelsinternational.com/en/corporateresponsibility/positioning/sustainability
http://www.meliahotelsinternational.com/en/corporateresponsibility/positioning/sustainability-policy)

• Which is in your opinion the most important difference between Elkington and Carroll position on business’s
responsibility?

Level of society and organisations:

nisations: two paradigms
• The economy is the whole; social system and nature are part of it
• Wealth will trickle down to the poor and lift them out of poverty by default
• Profit=revenues-costs
• Managers’ only responsibility is towards the owner, the shareholders
• The ecosystem is the whole and support both the social and the economic system
• World resources and therefore wealth have to be
redistributed by design
• Profit=revenues-costs for society
• Managers’ responsibility is not only towards the owner, the
shareholders, but towards involved stakeholders

Societies, organisations and individual

• Societies are constituted by organisations
• Organisations are constituted by individuals?
• Have individuals the capacity to think and act form a ttriple
bottom line perspective?
• Be back at the next lecture for my answer
LEZ.8 del 18/03
individual level
Organisation level: 2 paradigms
• The economy is the whole; social system and nature are part of it
• Wealth will trickle down to the poor and lift them out of poverty
by default

• The ecosystem is the whole and supports both the social and the
economic system
• Wealth should be redistributed by design

Technology: 2 paradigms
• The economy is the whole; le; social system and nature are part of it
• Wealth will trickle down to the poor and lift them out of poverty by default
• Profit=revenues-costs
• Managers’ only responsibility is towards the shareholders
• Externalities are internalised only if prof
profitable

• The ecosystem is the whole and supports both the social and the economic system
• Wealth should be redistributed by design
• Profit=revenues- full costs
• Managers’ responsibility is towards all involved stakeholders
• Externalities are internalised

In which of these two worlds we live?

Planet A→
→ A plane makes an emergency landing. Panic breaks out. Survivors fight to reach the exit. The
strongest reach it first. In the process children, elderly and injured people are left behind.
Planet B → A plane makes an emergency landing.
Survivors keep calm. They help children, elderly and
injured people to reach the exit. The strongest go
back to check all are helped.

› Greed = intense and excessive desire to acquire more

of something – especially
pecially money and power - for the
self
› Is greed the only or main human value and
motivation?
 › Psychology; socio-psychology;
psychology; human development studies; leadership studies; motivations’ studies; brain
studies and critical economists give us a more complex picture
In other words: 2 paradigms at
three levels →

individual power:

Each of us has the power to –see her or himself, her

or his colleagues and other people as an individual
with the capacity to develop on a care for me, a care
for me & you and a care for all dimension –
contribute in the design of systems supportive of this
development in the organization where they study or
work –help
help enhancing a supportive environment at
society level

CONCLUDING:
• Each of us has the capacity to care for him or
herself, others and the Earth as a whole
• Thanks to this capacity we are also able to build a
more sustainable future
• A capacity, though, is not a given: it has to be
developed

Paradigm shift in three levels:

INSTITUTIONAL
INDIVIDUAL
ORGANIZATIONAL

LEZ. 9 del 22/03

if we don’t change our view we cannot solve the actual problems. We need to discover new ways to think. care for me
but also care for the community. → process of implementing and reaching sustainability

“We cannot solve ourr problems with the same thinking we used when we created them”. Albert Einstein
The need for a paradigm shift and new forms of local and global governance

“Making progress towards (sustainability) is like going to a country we have never been to before…
before We do not
know what the destinations will be like, we cannot tell how to get there, we are not even sure which direction to
take” Prescott-Allen, 2001
The journey to the future is a learning process shared by everyone: learning and creating our common future
f at the
same time. The journey to the future is about unlearning our current worldview and
learning a new sustainable one to replace it. This learning is truly transformative.
Laininen, 2019: 194

To change our mental models there is a level of change, according to our need to act to
solve/response to ecological/climate problems.

A question of governance
Sustainability will not just happen in a natural pre
pre-ordained manner. It needs to be
carefully thought about, deliberated over, and eventually implemented. These
processes of deliberation, argumentation and discussion are constitutive of governance.
(Un)sustainability as a crisis of governance Sustainability is about the physical and biological systems,
sy the
economic and social policies, but first and foremost it is about governance:
Ø who decide what? Ø on behalf of whom?
Ø to secure which objectives?
Ø over what period of time?

Governance as steering of human beings

The etymological roots of the word ‘governance’ lie in the Greek verb jtbeqmάx [kubernáo],
[kubern which is identified
with navigation and helmsmanship (steering) and was used for the first time in a metaphorical sense by Plato to
refer to the steering of human beings.
ings. Contemporary governance can be identified with actions as broad as
managing, regulating, influencing, informing, envisioning, coordinating, policy
policy-making,
making, facilitating, ordering,
decision- making, (setting the parameters for) cooperating and leading.
Scholars have defined governance in many different ways without reaching a consensus on the core elements of
this broad concept (Adger and Jordan 2009).
According to Young (1994: 15): ‘Governance involves the establishment and operation of social institutions
institu (in
the sense of rules that serve to define social practices, assign roles, and guide interactions among the occupants of
these roles) capable of resolving conflicts, facilitating cooperation, or, more generally, alleviating

When we speak about governing

rning sustainability
sustainability→
→ how the communication flow is organized inside the company, the
behaviour , transparency, well governing in term of managing, how the description are taken inside the corporation, how
to solve problems, alleviate collective actions pr
problems…
oblems… is something relatiìed to cooperation, rules, conflicts.
governance as results of actions of governing that different actors put into actions, and can be observed, a result of
activities of different actors put in play to try to reach specific aims and objectives
GS → a different range of institutions should take into consideration it.
GS as a process to change.

Governance, governing and government

Governance = describes the patterns that emerge form the governing activities of diverse actors that
t can be
observed in what is deemed acceptable norms of behaviour, and divergent institutional form (Ostrom, 2005)
Governing = those activities which make a ‘purposeful effort to guide, steer, control, or manage sectors or facets
of societies’ (Kooiman, 1993) Government = refers to the actions of the States
Governance and governing = a cover the whole range of institutions and relationships involved in the process of
governing (Pierre and Peters, 2009)

Ø The real innovation and dynamism in governance ssystems

ystems for a sustainable world lies anywhere other than in
conventional places
Sustainability as both an outcome and a process
Ø Sustainability as an outcome – the overall quality or sustainability of human wellbeing and the ecosystems on
which it ultimately depends
Ø Sustainability as a process of change in the way that society is organised. “The way in which humans perceive,
value, and experience environmental loss is seen to be just as important as the absolute scarcity of resources or the
quality of human life”
→ another emphasis on how we need to invest in education to think differently. Change our mental framework.
The process of decision making directly affect the sustainability of their outcomes
“These crises of human development are very much of our own making. It is the relationship between humans and
their environment and, ultimately, the relationship between us all that is at the root of the sustainability
problematique […]. Consequently, it iss this relationship that has to be a full part of any solutions to the almighty
mess that we as a human race now face” Neil Adger and Andrew Jordan, preface
sustainability can be seen as an instrumental approach to increase market size, profit, reach an additional
ad value,
or in terms of reputation, attraction to investors. Today is easier to meet sustainability approaches because there
are main topics regarding sustainability.

Different theories
ØTransition theory ØMetagovernance ØPolycentricity governance
gove
ØNetwork governance ØExperimentalist governance

Transition Theory
‘Transitions’, most commonly defined as longlong-term,
term, nonlinear processes of social change in which a societal
system is structurally transformed (Grin et al. 2010; de Haan and Rotm
Rotmans 2011).
Ø Institutional transitions
Ø Social-ecological transitions
Ø Socio-technological transitions (structure transformation)
A sustainability transition generally refers to a ‘radical transformation towards a sustainable society as a response
to a number of persistent problems confronting contemporary modern societies’ (Grin et). Such a transformation
process is ‘long
long term, multidimensional and fundamental’ (Markard et al.), paradoxically comprises radical change
in incremental steps (Loorbach and Rotmans), and shifts established socio
socio-technical
technical systems to more sustainable
modes of consumption and production.
The understanding of transition dynamics in social systems requires a holistic view on the interaction between
human and nonhuman aspects (nott only social, cultural, institutional and political, but also economic, ecological,
and technological). Guidance and governance are essential for sustainability transitions (Smith et al. 2005).
Transition governance involves the deliberate adjustment of ggovernance
overnance practices and societal institutions in order
to maximize the opportunities for continued human progress along a sustainable trajectory (Meadowcroft et al.).
Transition management is about understanding how actors (can) influence transition processes
proces (Loorbach ) in an
interactive, reflective and explorative way of governing (Frantzeskaki 2011).
connections between sustainability and transitions. It means the emphasis of sustainability
needs a process /a movement, bringing something to transform.

Static multilevel framework → Macro (general perception of a particular system)--Meso

(results of the regime =set of norms, rules that drive the market)
market)-Micro levels (specific
specific
actors/innovation/society that try to change the regimes)
Dynamic multilevel framework tries to break the dominant regime. There is pressure from the
bottom level but also from the environment → the landscape makes pressure regarding the
traditional level of thinking to try to create something new. The need to break the old sociological
sociologi regime.

Metagovernance
Meuleman defines metagovernance as: «the totality of interactions of governments, other public bodies, private
sector and civil society, aimed at solving societal problems or creating societal opportunities»
opportunities
Broadly speaking,, government depends on hierarchical governance, the private sector on market governance and
civil society on network governance. (wewe have forms of governance that implement these three actors)
Each of the governance modes exists on their own, but metagov
metagovernance
ernance can help understand how they relate,
interact and can be coordinated.
Governance is different from government because the term governance can represent new forms of regulation that
go beyond traditional hierarchical state activity, and it can inclu
include
de new processes, dynamics and forms of
interaction between actors (e.g. self-regulation,
regulation, new forms of multilevel policy and private–public
private cooperation).
Metagovernance represents dynamic mixtures of hierarchical network and market governance styles and seems se
suitable for addressing “wicked
wicked problems”.
Ø Global vs local Ø Bottom
Bottom-up vs top-down approaches
Ø Centralized vs decentralized Ø Legally binding vs voluntary

Polycentricity governance
Polycentric governance means that there are ‘many centres of decision
decision-making
making that are formally independent of
each other’ Ostrom (wewe have different centers/units of decisions, independent governance that interact each other
at different levels)
Polycentric governance systems can be defined as ‘complex, modular systems where governance units with
different purposes, organizations and spatial locations interact to form together systems characterized by many
degrees of freedom at different levels’ Pahl
Pahl-Wostl Polycentricity
olycentricity applies both to the ‘horizontal’ proliferation of
actors at the global level and to the distribution of actors across different governance ‘levels’ and ‘scales’.
Polycentricity can enhance innovation, trustworthiness, levels of cooperation an andd the achievement of more
effective and equitable outcomes for the SDGs at multiple scales. However, disaggregating environmental politics
and dividing responsibilities can carry risks for political accountability and the effectiveness of governance.

Network governance
Ø The network structure consists of relatively stable and mutually dependent relationships;
Ø A variety of actors is involved that are interdependent but autonomous;
Ø Actors share common purposes and frameworks and share the aim to govern
govern;
Ø There can be flexible and creative adaptation to changing environments;
Ø Network policy processes are complex because of the variety of actors; and
Ø An exchange is taking place both within the network (flows of energy, information, finance and ideas)
ide and
between the network and its environment (Castells 2004: 36).
Interactive learning Use of power and position

Experimentalist Governance
Experimentalist governance has been defined as ‘a recursive process of provisional goal
setting and revision based on learning from the comparison of alternative approaches to
advancing them in different contexts’ Sabel and Zeitlin 2012: 169

Ø Accommodate diversity in adapting general goals to varied local contexts

Ø Process of social learning
Ø Both the goals and the means for achieving them are conceived as provisional and subject to revision
Ø Transparency
Ø Deliberative process – democratic destabi
destabilization
Ø Cooperation of different actors are essential
Lez. 25/03 THE KAROO CASE STUDY
South Africa→
→ transition of power with Mandela. very reach fertile area for the resources (raw material, diamant,
silver..), there are very rich people and very poor people. Karoo is a less fertile area in South Africa.

The Karoo, facts and figures

• 400,000
0,000 km2 in 4 South African provinces – all 4 are economically weak zones
• Climate: arid to desert
• Largest eco- system in South Africa – home to many endogenous species
• Colonised from 1700 on by white settlers
• Not densely populated – though ‘revers
‘reverse migration’
• Socio-economic:
economic: extensive farming and some tourism; high unemployment (41%
(41%-27%)
27%) and low level of
education (no schooling: 26%-10%). the level of education is very low.

Farming in the Karoo → very different kind of animals

Tourism in the Karoo
• No reliable official data
• Major attraction to tourists:
§ Unspoilt, undeveloped nature
§ Space, emptiness and solitude
§ Genuine hospitality (repeated visitors)
§ National parks: flora and fauna
§ Astro-tourism and desert-tourism
tourism (WTO, 2007)
§ Active tourism: hiking; bicycling; hot
hot-air ballooning
§ Cultural tourism: Victorian Karoo architecture; music

Karoo National Parks Mountain Zebra: since 1937

• Camdeboo : since 2005
• Mountain zebra; flora; local cultural heritage
• Tourism in Camdeboo area: 99 million Rand revenue; 700 jobs; 5% growth per year
• MZCC project

Shale gas in the Karoo

• First estimates: 390-450
450 trillion cubic feet – 8th largest reserve (US Energy Information Agency)
• 2014 estimates: 40 trillion cubic feet
• Depth: 2.5 miles vs. 1.25 miles in US
• Infrastructure: poor (no pipelines; few roads); water scarcity
• Socio-economic
economic impact: 0.5% GDP growth for 25 years and 700,000 new jobs (Econometrix, 2013 - Shell
sponsored research)
very few laws about exploitation
loitation of gas

gas concessions
• Also in the MZCC area
•This area is interesting because of the existing infrastructure

→ Main issue of the case

• If you concentrate on the MZCC area how would you define the main issue of the case?
–Please use the chat
• A choice between two opportunities for development:
–Exploiting shale gas
–Enhancing
Enhancing (desert) tourism by i.a. developing the MZCC project

Sustainability & Earth’s resources

• Sustainability maintains that Earth’s capacity to sustain life is limited and
• That we should stay inside these limits and
• That Earth’s resources should be equitably shared among

Sustainable resource use

-A distinction should be made among:
-‘Infinite’ resources – such as wind and sun
- Natural capacities or services – such as Earth’s
capacity of absorbing pollution
- Renewable resources – such as timber and fish
- Non-renewable resources – such as shale gas

how gas and oil are held? oil is concentr

concentrated for energy.

The issue with fossil fuels

-Fossil fuels are non-renewable
renewable resources
-Combustion
Combustion of fossil fuels (mostly for electricity and transportation) is the major cause of CO2 emissions (US
National Research Council, 2010) and consequently of climate change
-Modern
Modern economies are highly dependent on
(cheap) fossil fuels.

REN21 Renewables
wables 2019 Global Status Report
→

print page 12.

The issue with fossil fuels, co

-Fossil fuels are non-renewable
renewable resources
-Combustion
Combustion of fossil fuels (mostly for electricity and transportation) is the major cause of CO2 emissions (US
National Research Council, 2010) and consequently of climate change
-Modern
Modern economies are highly dependent on (cheap) fossil fuels
-Oil is often found in fragile states

Oil curse thesis

• Resource rich countries show low economic growth
– Corruption and weak institutions – Deflation
– ‘Dutch disease’ – Type of jobs – few, for males, unskilled

Shale gas
• Is a non-renewable resource
• Emitsts less CO2 than other fossil fuels, e.g. almost the half compared to coal
• Can be found also in stable, democratic countries
• Is a non-renewable resource
• Emits less CO2 than other fossil fuels, e.g. almost the half compared to coal
• Can be found also in stable, democratic countries
• Demand is projected to grow – mostly for electricity production; mostly by India and China
• Is a non-renewable resource
• Emits less CO2 than other fossil fuels, e.g. almost the half compared to coal
• Can be found also in stable, democratic countries
• Demand is projected to grow – mostly for electricity production; mostly by India and China
• Yet: if global consensus will be reached about reducing CO2 emission, then also gas will be phased out before
2050 and…

← Access
ess to electricity

Hydraulic fracturing
• Shale gas is trapped in shale rock formations
• Rocks need to be fractured (fracking) so that they release the gas
• In the process vast amount of water, sand and some chemicals are used –most
most water can be recovered

Case analysis
Five +1 questions may be asked to capture the information
essential to analyse the case:
0. Identify and describe the issue at hand (EC)
1. Who are the stakeholders (internal/external);
2. What are their stakes (needs);
3. What opportunities / challenges / threats do these stakeholders present to the organization;
4. What responsibilities (economic, social, ecological, legal and ethical) do
does
es the organization have to its
stakeholders (CRS) ?
5. What strategies or actions should the organization take to best respond to stakeholder challenges and
opportunities.

Tool: Making the sustainability’s at societal level operational

PRINT 20-21

Shale gas in SA: community reacts

Concluding remarks
• Sustainability is grounded in the recognition of Earth’s limits
• A sustainable use of non-renewable
renewable natural resources implies the development of renewable substitutes
• Shale gas is a non-renewable resourcee with interesting possibilities, from an environmental, socio-economic
socio &
geo-political perspective
• The complexity of shale gas exploitation lies in the amount of stakeholders involved; in their contrasting needs
and ultimately in their capacity to envision, design and execute a plan for the sustainable use of this non-renewable
non
natural resource
• I am looking forward to see how you as stakeholders will act in April

LEZ.11- 29/03

Stakeholder Model Definition of stakeholder: “any group or individual that “can affect or is affected by the
achievement of an organisation’s objectives” (Freeman, 1984: 46)
Business can be understood as a set of relationships among groups that have a stake in the activities that make up
the business.
A ‘stakeholder theory’ is one that puts as a primary managerial task the charge to influence, or manage, or balance
the set of relationships that can affect the achievement of an organization’s purpose”
Different stakeholders with different «stakes»

(stampare ultime 2 pagine)

20/04
A Social Connection Approach to Responsibility
A few messages from “The True Cost-documentary"
Garment factory manager: “It is not right. It’s 20th century, everybody knows. Everybody should take the
responsibility for that!”
Shima (Bangladesh – worker) “we have no voice in the system”
Journalist You can’t deny that the fashion industry is having a high impact
Patagonia President “We look for customers that recognize that they are part of the problem! Consumers that
recognize their responsibility Think twice before buying … asking where the products came from”
Cambodia worker “The Government should know how poor we are…

Governing sustainability in a complex world

Emerging challenges
ØGlobalization: cultural, legal and accountability issues
ØNetworked economy ØInformation economy

Which implications in attribuiting moral responsibility?

-Agenda
1. The diffusion of responsibility and the problem of denial of responsibily
2. Insides from the network theory approach
3. The social connection model to responsibility 4. When an «issue» become an «Issue» for companies

Diffusion of responsibility
People engage in collective effort because we can do things together that we cannot do as well or as quickly (or
even at all) as individuals. We leave in a world more and more interconnected. As long as there is division of
labor, there will be questions about the division of spoils and the division of responsibility.
Risk of denial of responsibility
General sources of denial (Phillips, 2010)
Knowledge denial → “We didn’t know” Key Question: What companies should know?
Cambodia worker “The Government should know how poor we are…”
Control denial → “We knew, but couldn’t do anything about it” Key Question: When, if ever, does “can”
imply “ought”?
Garment factory manager: “It is not right. It’s 20th century, everybody knows. Everybody should take the
responsibility for that!”
Connection denial → “Whether we knew or not, it’s another organization’s problem” Key Question: What
establishes a connection?
Patagonia President “We look for customers that recognize that they are part of the problem! Consumers
Consume
that recognize their responsibility Think twice before buying … asking
where the products came from”

The perspective of network analysis →

Network Density
Density is the ratio of the actual number of links between
nodes over the maximum number of possible links. Higher
network density is typically associated with more shared
information and better diffusion and enforcement of
norms.

Degree centrality
Degreeee centrality is simply a raw count of the number of
connections. Degree centrality speaks only to the quantity
of links to a given node or actor, but says nothing about the quality
of these links.

Closeness centrality
Closeness centrality is the shortest
st path from a given actor to all
other actors. This measure begins to examine the quality of the
links for any given node. High closeness centrality means less
reliance on others to broker information. There is less dependence
on other actors in the
network.

Betweenness centrality
Betweenness centrality is the extent to which an actor is on the
shortest path between other network actors. Actors with high
betweenness centrality can influence flow of information and have a
greater ability to broker accesss to resources–
resources often to their advantage.
Deniability networks «Deniability networks invert the typical
role of information in networks. Typically in network analysis,
access to information is a source of power and the ability to
broker information or avoid brokarage by other is an additional
source of power for any given actor. In deniability networks an
actor seeks to actively prevent the flow of information – at least
to themselves». (Phillips, 2009: 537)

“Denial networks require low density so that information flows are short-circuited,
circuited, low degree and closeness
centrality for the focal actor in order to reduce the chances of undesirable information finding its way to the actor,
and selective betweenness centrality—focalfocal actors need to maintain some
general influence over ends while maintaining deniability regarding means.”

Structural
hole and tertius
gaudens →

“I made this item you are going to

buy, but I didn’t get paid for it.”
Connection and responsibility In the initial stages, and perhaps even longer, there may be asymmetries in the
perceptions of network membership. Actors may believe themselves to be part of a network, while others continue
to see them as arm’s-length tradingg partners. These different perceptions of the nature of the relationship can lead
to different perceptions of responsibility and obligations. And these disparate perceptions can form the basis for a
sort of connection deniability. What is needed in such ccases
ases is a critical, independent basis for discerning who is a
member of the network.

The social connection model

Social connection approach “Our responsibility derives from belonging together with others in a system of
interdependent processes of cooperation and competition through which we seek benefits and aim to realize
projects” (Young, 2006: 119). The core idea of a social connection approach is to encourage actors to consider the
broader consequences of their activities
activities.. Societal and environmental issues are rather “systemic”, that is “caused
by a network of actors who contribute to, enforce, or mitigate harm th through
rough their actions and interactions”
(Schrempf, 2014: 302). In other words, the
social connection approach stresses the
notion that different actors connected to an
issue, share responsibility with each other.

Social connection model (Young) Power:

“An agent’s position within structural
processes usually carries with it a specific
degree of potential or actual power or
influence over the processes that produce
the outcomes. Where individuals and
organizations do not have sufficient energy
and resources to respond to all structural
injustices to which they are connected, they should focus on those where they have a greater capacity to influence
structural processes.” (Young 2006, p. 127; Young 2011, p. 144).
Privilege: “Their being privileged usually mea
means,
ns, moreover, that they are able to change their habits or make extra
efforts without suffering serious deprivation” (Young 2011, p. 145).
Interest: “Often those with the greatest interest in perpetuating the structure are also those with the greatest power
pow
to influence their transformation” (Young 2006, p. 128).
Collective ability: Agents often need to “reorganize their activities and relationships to coordinate their action or
coordinate it differently” (Young 2011, p. 147).

When does an issue become ann Issue? Business connection

Ø Through corporate activities or product effects (e.g. violent video games, guns, infant formula, ... Merkel and
automobile industry, marketing, Tamoil in Libia, GM in Southafrica,etc.)
Ø Direct and indirect connections ØPos
ØPositive
itive vs negative connections (Colalife, Nokia Siemens Networks in Iran,
IBM and Nazi)
Ø Intended or unintended
Action responsibility = any concrete CR behavior that supports changes and leads to favorable conditions
Information responsibility = to give an account
When does an issue become an Issue?
Internal and external stakeholders “Internal stakeholders might be cognizant of the social connection between
corporate activities/products and a societal issue. This cognizance might create dynamics and encourage
companies to act upon their connection. The impact of external stakeholders is more complex. External
stakeholders might connect corporations to issues, irrespective of whether there is a connection between business
operations and the issue. Therefore, external stakeholders might assign an actor responsibility for an issue without
any connection between the business activity and the issue or between the product and the issue”
Ø Type of stakeholder (see for example Mitchell, Agle and Wood, 1997)
Ø Stakeholder capacity to be heard (dependence - Frooman, 1999)
Stakeholder pressure functions as a catalyst for triggering action. Responsibility exists regardless of stakeholder
pressure. As soon as the firm is connected to an issue through it business it has a responsibility.
→ Participation responsibility

Stakeholderer Identification and salience

POWER
A relationship among actors in which one actor, A, can get another actor, B, to do something that B would not
have otherwise done (Coercive-force/threat;
force/threat; Utilitarianmaterial/incentives; Normativesymbolic influences)
URGENCY
The degree to which stakeholder claims call for immediate attention Time sensitivity-the
sensitivity degree to which
managerial delay in attending to the claim or relationship is unacceptable to the stakeholder Criticality-the
Criticality
importance of the claim or the relationship
elationship to the stakeholder
LEGITIMACY
A generalized perception or assumption that the actions of an entity are desirable, proper, or appropriate within
some socially
constructed system

How can actors

should come to action? Schrempf (2014)014)
ØHigher network density = esasier to coordinate (collective) action because behavioral expectations are
shared within the networ (higher intensity is acheived by increasing the number of ties and filling structural holes)
ØActors with high degree centrality
ntrality can function as coordinators (coalition formation)
ØActors with high closeness centrality can act as experts (privileged information)
ØActors with high betweenness centrality can support collective action by acting as transmitters (they can
control the flow of information)
ØActors with high betweenness centrality might abuse their position and block certain information flows
(tertius gaudens)

22/04 Sustainable and Responsible Investing

Sustainability
Transitions need
Sustainable
Finance
The aims of this module are...
- to demostrate how finance could be a powerful tool for sustainability
- to present the main strategies adopted by investors to integrate ESG (Environmental, Social and Governance)
issues into investment decisions
- to discuss if sustainable finance is really «sustainable»

From the investor’s point of view...

“Any individual or group which truly cares about ethical, moral, religious or political principles should in theory at
least want to invest their money in accordance with their principles’’ Miller, 1992, p. 248
→approving of an immoral action is immoral
→making profit from it indicates acquiescence …

A brief history (Schueth, 2003)

- Religions (Jewish, Christian and Islamic laws)
- Social, political and environmental movements (e.g.: Apartheid in South Africa)
- Finance for sustainability

Two investors’ motivations

“Feel good” investors
→Feel the need to put their money aligned with their personal values and priorities
“Social change” investors
→ Feel the need to support and encourage improvements in quality of life (or in corporate behaviour)

The strategic role of financial systems

Terminology
•Ethical •Socially responsible •Social •Responsible
•Green •Alternative •Targeted •Impact •Sustainable
•… ... Investing/investment/finance

A definition
“Ethical investment” or “socially responsible investment” is broadly defined as the integration of personal values,
social considerations and economic factors into the invest
investment decision”. Michelson et al., 2004, p. 1
In a broad sense ethical investment is ‘‘the exercise of ethical and social criteria in the selection and management
of investment portfolios, generally consisting of company shares (stocks)’’. Cowton, 1994

‘There’s nothing wrong with making money but how you make the money that counts’’ Murray, 2003
“Ethical investment refer to a set of approaches which include social or ethical goals in addition to more
conventional financial criteria in decisions over whet
whether
her to hold a particular investment”
“In ethical investment we are interested in how a company makes its money, not just how much” Cowton, 1999

It is a typology of investment that contribute to the achievment of SDGs and Agenda 2030 purposes.
It aims to create value for investors and society and, through a medium
medium-long
long term investment strategy, integrates
the financial analysis with a ESG (environmental, social and governance) one.
Adapted and translated from: Forum per la Finanza sostenibile
‘Environmentally
nvironmentally sustainable investment’ means an investment in one of
these activities:
(a) climate change mitigation;
(b) climate change adaptation;
(c) the sustainable use and protection of water and marine resources;
(d) the transition to a circular economy;
omy;
(e) pollution prevention and control;
(f) the protection and restoration of biodiversity and ecosystems.

Type of investors
Ø Individuals - private investors Ø Groups Ø Institutions Ø Public investors
Ø… Ø Religious organization Ø Pension funds Ø University (foundations)
Ø…
Ø Financial and non financial institutions Ø Managing their own or someone else money
Selection and management → TO HOLD= To buy/To sell/To maintain/To manage

The main strategies

Screening
is the practice of including or excluding companies (or States) based on social and/or environmental criteria.
Engagement (or shareholder activism)
is an activity that investors undertake to influence companies’ behaviour. These efforts include dialoguing with
companies, filing, co-filing
ng and voting resolutions.
Divestment
is the process of selling an asset for either financial, social or political goals.
Community investing
provides capital and other services to communities underserved by traditional financial services institutions.
Impact Investing
refers to investments made into companies, organizations, and funds with the intention to generate a measurable,
beneficial social or environmental impact alongside a financial return.

The
dim
ensi
on
of
SRI
aro
und
the
wor
ld
The screening
Screening is the practice of excluding or including companies
“Screening
from investment portfolios based on a range of social and
environmental criteria”
Ø Negative screening = “never if”
Ø Positive screening = “only if”

Common negative screens

● Armaments and nuclear weapons
● Alcohol
● Hazardous substances (such as
pesticides,chlorine)
● Environmentally damaging
practices
● Poor employment practices
● Animal exploitation (e.g. fur
industry, factory farming)
● Activities, processes or products that
have a major impact on climate
change (e.g. automobile, oil and gas
industry, road building, etc.)
● Ozone-depleting substances
● Nuclear energy
● Gambling
● Animal testing
● Genetic engineering
● Tobacco
● Oppressive regimes
● Pornography
Divestment
Also known as divestiture, is the opposite of an investment, and it is the process of selling an asset for either
financial, social or political goals.
As climate change campaigners continue their fight, investors interested in tackli
tackling
ng the financial dimensions of
climate change, are also increasingly considering divestment as a solution.

Positive screening
Eurosif SRI Report 2018
identifies three main
categories:
- ESG integration
- Sustainability Themed
Investments
- Norms-based Screening

ESG Integration
Integration is the explicit inclusion of ESG factors by asset
managers into traditional financial analysis.
This is based on the conviction that it is imperative to reconsider
traditional financial analysis and look at companies from a holistic
point of view. The objective is to take into account all stakeholders
that may be impacted by a company’s economic activity.
acti

Norms-Based Screening
Norms-Based
Based Screening (NBS) allows investors to select the companies in their portfolios in line with their level
of compliance with international standards and norms

Sustainability Themed
This strategy translates into the selection
lection of assets that are specifically related to sustainability in single-
single or multi-
themed funds.

Negative and positive screening

1) Negative + positive selection
2) Trade off between good and bad features

The application of screening

ØNot static ØExtension ØPrimary and secondary involvement
ØSignificance/threshold ØBest-in
in-class or best-in-industry approach

slide 12.
17/05 BREMBO PRESENTATION
It considers the impact of its own activities on society. it gives strong important to the impact of ht environment
the sustainability issue has become more relevant for customers.
they start defining sustainability from the ISO 26000 as a sum of people, environment, governance, business
partner etc.
Stakeholder value is very important for Brembo and it wants to reduce the impact on the environment to comply
with std of suppliers, clients and all stakeholders.
there are different department that are focused on sustainability topics
Task force division collects information.
Csr Meeting proposes, validates and takes decisions on csr. There are different companies around the world and
there are several CSR ambassadors that collect information for the italian firm. the aim is to promote and spread
the csr culture in the plan and update people.
Risk is always being focused because it is linked to sustainability in the future. the risk analysis is made on
different risk factors.
there are several levels (5) of approval of the information collected in the different department or countries.
every month Brembo spread a card on all channel with a goal regarding sustainability.
sustainability is not linked only with the environment!