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In Germany, the topics of global warming and climate protection have returned to the political agenda and to public awareness. The German EU Presidency has championed internationally binding limits to carbon dioxide emissions and a pioneering role of Europe in climate protection, the general interest in renewable energies, sustainable technologies and eco-friendly products increases. This development can be seen not least on the stock markets.
That this interest is by no means a German or European phenomenon, but that questions of climate and environmental protection are increasingly a subject of debate also in the Asian region - this was one finding of the 6th Europe Asia Young Leaders Forum. At the same time, the lectures and discussion contributions made clear that there are different priorities in environmental protection and that the risks of climate change as a whole are perceived to be less threatening and technologically manageable. Both Asian and European participants were convinced that the growing demand for new technologies in the fight against global warming also entails major economic opportunities for innovative, flexible companies. However, they were divided on the question of whether mankind is already on the threshold from an industrially to an ecologically dominated age, as one of the speakers postulated.
Opening Evening
The 6th Europe Asia Young Leaders Forum was opened with a reception at the German Embassy in Prague, which focused on the host country of Czech Republic instead of on the guiding theme of the conference. Earlier, during a two-hour guided city tour, the participants already had had the opportunity to explore the beauty of Prague, to learn about the city's historical significance and to converse with one another. During his opening speech, Jürgen Chrobog, former State Secretary and now Chairman of the Board of Directors of the BMW Foundation Herbert Quandt, noted the importance of the Palais Lobkowicz in Prague's history. The German Ambassador in Prague, Helmut Elfenkämper, then talked in greater detail about the history of the embassy building and the historical events that had taken place at the German Embassy in Prague shortly before the fall of Communism. Filled with awe and curiosity, the participants stepped out on the balcony where former Foreign Minister Hans-Dietrich Genscher, in 1989, had announced to the thousands of refugees from the GDR that they were allowed to travel to the Federal Republic of Germany.
Both the historical importance of the place and the friendly welcome by the German Embassy constituted a worthy start to this year's Europe Asia Young Leaders Forum.
SESSION ONE
CLIMATE CHANGE AND ENVIRONMENTAL DEGRADATION: WHAT IS AT STAKE?
The most recent reports on climate change warn of significantly higher damage than has been assumed for a long time. Which consequences are to be expected, and when and where? What are the problems which need to be solved soonest? How can the developing world's increased need for energy be met while limiting the environmental impact of global consumption? How can the costs of sustainable development be distributed fairly?
After brief introductions by Jürgen Chrobog and Markus Hipp, Executive Director of the BMW Foundation Herbert Quandt, the Forum opened with lectures by Prof. Stefan Rahmstorf from the Potsdam Institute for Climate Impact Research and Prof. Jinnan Wang from the Chinese Academy for Environmental Planning in Beijing. While Rahmstorf talked about the causes and consequences of climate change from a global perspective, Wang presented the environmental problems and challenges in China.
Rahmstorf laid out the facts and scientific evidence for the climate change. In his presentation, he gave a very vivid description of how the climate develops, which consequences this will have for both humans and nature and what we can do to stop the climate change. According to Rahmstorf, a general increase in heat waves, droughts, floodings and hurricanes is likely to be inevitable. As a result, his view of the future was not very optimistic. Still, he said, it is crucially important to employ appropriate measures to limit the extent of the climate change.
Prof. Wang drew a connection between the climate change and key problems in the development of China. To him, the environmental challenge in China crystallizes around the difficult constellation of three "growth factors": population growth, the growth of the gross domestic product and the growing number of power plants. In the end, these factors are responsible for the rapid increase in both energy consumption and greenhouse gas emissions. In spite of this alarming development, climate change is not a top priority for the Chinese population, he said. Other problems such as poor air quality, in particular in the cities, water pollution and thus the risk to the drinking water supply are much more urgent for the Chinese.
Based on the lectures by Prof. Rahmstorf and Prof. Wang, a lively discussion developed on the scientific facts and the possibilities to stop the climate change. Here, one focus was on energy production. Jiří Sitler, Director of the Diplomatic Protocol of the Czech Foreign Ministry in Prague, for example wanted to know how important nuclear energy, as an alternative to energy production from fossil fuels, would be in the future. Rahmstorf noted that today only 2.5% of global energy were provided by nuclear power plants and that a substantial expansion of nuclear energy was neither realistic nor - because of the known risks - desirable. The future belongs to alternative energy sources such as wind, sun and biomass, he said. According to Rahmstorf, nuclear energy will become unprofitable in the long run.
Joanna Maćkowiak-Pandera, Project Coordinator at the Coordination Centre for Environmental Projects in Warsaw, was also interested in the energy issue and asked about approaches in China. Prof. Wang replied that better energy efficiency in China could be achieved through larger power plants and that emission-based taxes could curb energy consumption.
Lars Hinrichs, Founder and Chief Executive Officer of Xing AG in Hamburg, asked if there were other radical technical solutions, different from renewable energies, to stop the climate change. Rahmstorf noted that such technologies are in the making, but are still far from feasible.
Eric Li, Managing Director of Chengwei LLC in Shanghai, questioned the scientific consensus on the causes of climate change, as it had been presented by Rahmstorf. Science is never objective, he said, the key is the interpretation of the data. Rahmstorf conceded that a scientific consensus was not the universal truth. In the final analysis, he said, it is up to every single one of us to pay attention to - or ignore - scientific facts. Scientists can only explain how the climate functions and why it changes. Whether the current findings on climate change prompt one to act or not is not up to science, but is an individual or political decision, he said. In this context, Rahmstorf emphasised the current rather large scientific consensus. This is due to the fact that climate researchers in the past decades have worked with similar data and reached concurring conclusions, he said. This consensus is also reflected in the UN climate reports, which are the product not only of the work of numerous scientists but also of countless consultations between scientists and political leaders worldwide.
According to Andrzej Blachowicz, Expert International Cooperation at the National Administration of the Emissions Trading Scheme in Warsaw, the climate change still seems too abstract to people. To elicit climate-aware behaviour, other topics such as energy security, air quality or health have to function as catalysts, he said. According to Blachowicz, the reason for the hesitation of developing countries in particular is their attitude towards their own development. Often, they see their right to development at risk and do not want to be patronized by the western industrial states. Blachowicz called on the Forum participants to jointly find solutions and to communicate them to the responsible decision-makers.
Supporting this approach, Rahmstorf added that climate protection did not have to run counter to economic growth. Especially a fast-growing economy like China could show to the world that growth and climate protection, for example through the use of alternative energies, are compatible. |
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Dr. Yong Wang, Managing Director of ERM Group China in Shanghai, asked how one could convince decision-makers worldwide that climate protection should have top priority. Dr. Kunal Basu, Reader in Marketing at the Saïd Business School at the University of Oxford, questioned whether it made sense to rely on political decision-makers and governments to hope for progress in climate protection. So far, it has been civil society that has pressed for climate protection, he said. To draw even more attention to the climate issue, one should therefore focus on more consciousness-raising among the citizenry and, in addition, get businesses involved.
NETWORKING IN NATURE
Like every Young Leaders Forum, this year's programme also included the "Networking in Nature". Apart from the fact that this part of the Forum is to serve as "ice-breaker" on the first conference day, it promotes intercultural communication and is perceived by the participants as a welcome opportunity to get to know each other better, further discuss the conference topics and make contacts for the future. This could also be observed at this year's "Networking in Nature", which took place in the Šarka Nature Reserve near Prague. All assignments were designed so as to find the best solution as a team - transport a handball-size ball of frozen water, as a symbol for the melting polar caps, retrieve natural resources from trees or, blindfolded, collect letters in a labyrinth and come up with the correct solution word. Again and again, connections were made to the topics of climate change and environmental protection, which led to vivid discussions among the participants during their hike through the nature reserve. The last assignment was to create a sculpture from the materials that the participants had found in the woods. The "artworks" were presented and explicated the next day prior to the start of the conference.
The fresh air and the day's exertions made for a healthy appetite, so that the ensuing dinner was very much enjoyed by everybody. The participants celebrated the close of this eventful day and also made new friendships.
SESSION TWO
MOVING TOWARD A MORE SUSTAINABLE GROWTH: WHAT ROLE FOR BUSINESS?
A consensus now exists that climate change and shortage of raw materials are major global challenges. Which contributions have to be made by companies in this context? How can businesses foster the environmental awareness of customers and strengthen the markets for environmentally friendly products and technologies? How can they integrate environmental issues into their concepts of corporate citizenship? And does society trust them to take such a role?
The second part of the conference was opened by Prof. Weijiong Zhang, Vice President and Managing Director of the China Europe International Business School in Shanghai. Referring to the previous session in his introduction, he emphasised that it was ideas that had the most power to change things. Concepts and ideas often originate with political leaders, but are generally implemented by business and industry, he said. Accordingly, the speakers of this session represent the perspectives of business, but also of the media and academia. According to Zhang, this makes possible a comprehensive and balanced view on the topic of sustainability and the question of which contribution business can make to a sustainable and climate-friendly development.
Reto Ringger, Chief Executive Officer and Founder of SAM Group in Zurich, emphasised that sustainability not only paid off idealistically but also materially. According to Ringger, the development of a market for sustainability and sustainable investments was the main motivation for the founding of SAM. Economic, ecological and social sustainability is reflected in the long-term financial performance of an enterprise. Using the Sustainability Asset Management practiced by SAM, he demonstrated not only that sustainability is profitable, but that it, in the long run, pays off for both businesses and governments. Even though short-term solutions seem to be cheaper at first sight, in the long run they are the more costly option. While modern and high-quality technologies initially involve bigger investments, their use and implementation pays off in the long run.
Like Prof. Wang, Shuli Hu, Chief Editor of Caijing Magazine in Beijing, talked about the problems in China. Once again it became clear that climate change is hardly an issue in the present-day public debates in China. According to Hu, this is also reflected in the media coverage, where environmental issue do not yet play an important role. It is necessary to first satisfy the basic needs of the population, she said. Only then would people be open to topics such as climate change and environmental protection, she said, citing the post-materialist thesis. Next, Hu described some very depressing cases of air and water pollution covered also by the Chinese media. These cases vividly brought to life the current environmental problems in China and showed that the long-term effects of global warming are seen, in comparison, as a very abstract and less threatening risk.
Dr. Kunal Basu devoted his speech to the importance of sustainability in corporate policy, which he sees as a facet of the social responsibility of companies (CSR). His main conclusion was that both the discussion about CSR and individual company activities in the field of CSR need to become more transparent. As an example for a company that takes on a pioneering role in terms of CSR he mentioned the oil company BP. In addition, Basu said to put more emphasis on the topics of sustainability and CSR already during the education period. To set the course for the future, it is important to integrate these topics into the curricula of all MBA programmes, the academic programme from which all managers, CEOs and presidents of internationally leading companies will have graduated - in the future even more so than today.
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During the ensuing discussion, Eric Li asked why it would be legitimate for a CEO to use the money of the company's shareholders for CSR activities. Basu responded by underlining the need to change conventional patterns of behaviour. By now it is widely accepted, he said, that companies are not only beholden to their shareholders, but also to other interest groups.
Dominik Florian Hesse, Director, Chief Financial Officer and Head of Business Development of Expedo Shipping Company in London, was interested in how to measure the values in CSR concepts. He asked Mr Ringger how SAM wanted to rate the sustainability of a company when there are still no internationally recognised definitions of sustainability or standardised assessment criteria. He also asked how the relatively small SAM team could reliably evaluate the relatively large number of companies listed in the Sustainability Index. Ringger conceded that some issues still lacked ideal solutions, but said that the assessment procedure by SAM was the most transparent concept currently existing in this area.
Ming Yuan, Director External Relations and Moderator of Shanghai Dragon TV, asked Shuli Hu how journalists in China can deal with moral conflicts. Journalists frequently carry a lot of responsibility, e.g. if a report about environmental damage raises the issue of a company closing down. This even threatens the livelihood of the local population, said Hu, who knows this problem from her own work. She insisted, however, that it was the task of journalists to draw people's attention to environmental damages and not to cover up environmental problems.
According to Tong Zhu, Director of China Banking Deutsche Bank AG in Beijing, there are different levels of environmental problems. In China, environmental pollution is the largest problem, since it poses a direct threat to the people. In principle, climate change is also a major threat, but it has no immediate effect on the population, he said. For this reason it is difficult to convince people in developing countries of the seriousness of the climate problem. The role of the governments and the media in the industrialising countries is therefore particularly important to raise the awareness for climate change. Still, this should go hand in hand with economic development and improving people's life circumstances. Only when their material needs are satisfied, will the people in these countries think about long-term goals, said Zhu. As for the moral obligation of companies to engage in climate protection, Hu was rather pessimistic. Companies are invariably profit-oriented, she said. Accordingly, she saw the role of governments, the media and the public to be a very important one. Governments, in particular in China, could offer economic incentives to companies to act in a more environmentally friendly way. The media and the public, too, could put public pressure on companies. This could lead to greater effectiveness in the long run and thus benefit climate protection.
SESSION THREE
THE BUSINESS OF CLIMATE CHANGE: TURNING RESPONSIBILITIES INTO OPPORTUNITY
The majority of innovations in the field of environmentally friendly products are related to improving energy efficiency. How much progress can be made in this way? Are there innovative technologies which try radically different ways and result in new products, business models or lifestyles?
The third session was moderated by Prof. Poh Kam Wong, Director of the NUS Entrepreneurship Centre in Singapore.
Peter Head, Director of Sustainability of Arup in London, and Dr. Yong Wang examined the perspectives for a shift away from a mostly economically motivated to a more ecologically oriented economic system. Referring to the example of Dongtan Eco-City which is under construction near Shanghai, Head showed that this change need not remain a theory. The Eco-City is not only designed to feature minimum water consumption and an efficient energy supply - in order to minimize carbon dioxide emissions - but also to deliver a high quality of living due to parks, lakes and open spaces. Mentioning further examples for sustainable city planning and architecture from around the globe, Peter Head was optimistic that such projects can be implemented worldwide.
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Dr. Yong Wang wished for more initiatives by both businesses and political leaders. In his view, the numerous possibilities for companies are little discussed and therefore not visible enough. The opportunities arising from new technologies such as solar energy should not be underestimated. Here, Germany is a model and plays a pioneering role in solar energy, with the government offering incentives to switch to this technology.
The subsequent discussion revolved around the concept of the Eco-City presented by Peter Head, and also around the role of governments, businesses, the media and the public in environmental protection.
Sabine Scheunert-Kronschnabl, General Manager Marketing, BMW Group Central Eastern Europe in Munich, and Brigite Ferreira-Lúcio, Director Strategy and Business Development of Edeluc Consulting & Investments in Lisbon, asked about the costs and real estate prices in Dongtan. Head explained the total costs and emphasised that there were model calculations to make the houses and apartments affordable for all social groups. Moreover, a fixed element of the concept is the on-site integration of service enterprises and scientific institutions.
Brigite Ferreira-Lúcio wanted to know more about the citizens' involvement in environmental issues in general - and in projects such as the Eco-City in particular. Head talked about public consultations and the establishment of, among other things, cultural workshops to strengthen mutual understanding between the population and the business people. This is a big step forward, he said.
Yong Wang explained the role of the government in China. The leadership role in terms of environmental issues is with the government, and it increasingly sees this role as a positive one, he said. As of late, environmental data are made public and there are more and more newspaper articles about the environment. In addition, the media and the public play an ever-increasing role. In spite of prior evaluation and authorisation by the government, some major projects have been stopped due to public pressure and regular public consultations. Today, public opinion plays a major role in the decision-making process, said Wang. Where the quality of life improves in China, the people today are more interested in environmental issues.
SESSION FOUR
BUSINESS OPPORTUNITIES FROM CLIMATE CHANGE INITIATIVES
Break-out groups (work on a case study), followed by moderated presentations.
Dr. Aileen Ionescu-Somers, Deputy Director of the Forum for Corporate Sustainability Management at IMD in Lausanne, conducted a case study with the participants. The assignment was to introduce climate-friendly business practices in the context of sustainable development from the point of view of a European company. Divided into groups, the participants were to imagine an industry of their choice and come up with solutions, for example regarding the risks, but also the new business opportunities from the climate change, or for a short-term reduction of carbon dioxide emissions.
As main risks, the groups identified resource shortages, consumer behaviour, regulations and competition. Their risk planning was based, among other things, on the analysis of concrete environmental, political, and market scenarios and on the increased use of research and development. As opportunities, they cited competitive advantages such as the development and employment of new technologies, joint ventures or improved market access.
According to all groups, immediate changes are difficult. However, they recognised the potential of reducing energy costs through savings and efficiency models. Even though all groups were confident to be able to reduce carbon dioxide emissions, they envisioned some difficulties, mostly because of the related costs. Here, new globally standardised regulations, taxes and emission trading schemes could provide new incentives.
Aileen Ionescu-Somers added to that by presenting results from a study she had conducted. According to this study, corporate culture, managers' thinking, the lack of demand, and consumers' attitudes are the main factors influencing a company's shift to greater sustainability. Up until five years ago, the dominant view was that sustainability does not pay off. Today - this was her positive conclusion at the end of the conference - many companies think that an integrated and sustainability-oriented approach is the best business strategy.
Concluding Evening
The reception and dinner on the concluding evening took place at Sovovy Mlýny, a restaurant picturesquely located on the Vlatva River. The view of the 650-year-old Charles Bridge once again underscored the unique beauty and historical importance of Prague.
The dinner speech was held by Jiří Dienstbier, former Minister of Foreign Affairs of Czechoslovakia. In his anecdotal and entertaining lecture, he talked about his own experiences in politics, referring to important historical events such as German reunification and the founding of the European Union. Having experienced the transition period in the early 90s in political office, he was able to provide a vivid and colourful picture of this time. In conclusion, he emphasised that every change, also in regard to environmental policies and climate protection, needed not only time but also people with vision and courage.
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| Dr. Astrid Carrapatoso |
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