071 The Ins and Outs of Migration

071 The Ins and Outs of Migration

About this Episode

My guest today is Jenny K Wright owner and consultant of Nomad Consulting. Jenny has been either working or volunteering with migration and migrants since 2001. She's relied on her project management research and communication skills to dedicate over a decade of her life to consulting for nonprofits and international organisations worldwide. She is currently working for the International Organisation for migration, IOM having globe trotting around half the world and soon to be living in her 10 country. Jenny is used to thinking on her feet, eating questionable food and living out of a suitcase, directing her Knack for writing to social media. She gained over 40,000 LinkedIn followers in a year. And she is in the process of launching her own blog on migrants guide to share hers and other migrants experiences of being on the move and living abroad.

Subscribe to Where Ideas Launch

Episode Transcript

Katherine Ann Byam 0:00
The best of the life lessons I've ever had, have come from travelling and living in different cultures among different people. Yet, we see so many frown upon migration and look upon migrants as something bad for their countries. I had a conversation with Jenny Wright to find out why she thought that was,

Jenny K Wright 0:20
I do think it's easier to relate with other people that that share a common history or their you know, common demographic, culture, religion and so on. And I, that is one portion of it and the fact that their neighbours would be another component, the it's something that it's it's harder to accept people that you feel like maybe somebody else should have accepted first, while when they are at your doorstep, it makes more sense to open the door.

Katherine Ann Byam 0:54
This is season five, the great debates of our times. Season Five will be centred around the great debate. And we will be comparing and contrasting different viewpoints on various topics that are consuming the public discourse at present. The reason I've decided to take this approach is because we, or are at least many of us losing the skill of debate. And I think this is an essential skill for us all to practice once more. I don't see how we get to the point of saving the world and saving our planet. If we don't know how to discuss our differences.

I also think that the solution to most of our challenges is somewhere in the spectrum of us have never at either extreme. I will be working with guests to curate the content and discuss beforehand, I will understand their positions, their areas of genius, and navigate my questions around that so that the conversation is challenging and stimulating without being combative. I hope you enjoy Season Five Where Ideas Launch the Sustainable Innovation podcast.

Welcome to this episode of the ins and outs of migration.

My guest today is Jenny K Wright owner and consultant of Nomad Consulting. Jenny has been either working or volunteering with migration and migrants since 2001. She's relied on her project management research and communication skills to dedicate over a decade of her life to consulting for nonprofits and international organisations worldwide. She is currently working for the International Organisation for migration, IOM having globe trotting around half the world and soon to be living in her 10 country. Jenny is used to thinking on her feet, eating questionable food and living out of a suitcase, directing her Knack for writing to social media. She gained over 40,000 LinkedIn followers in a year. And she is in the process of launching her own blog on migrants guide to share hers and other migrants experiences of being on the move and living abroad.

Katherine Ann Byam 2:50

Jenny Welcome to where Ideas Launch.

Jenny K Wright 2:51
Thank you very much for having me.

Katherine Ann Byam 2:52
What drove you into this world of migration and supporting people and communities with making this all work?

Jenny K Wright 3:01
Well, actually, I'm a migrant myself. I am half Swedish, half American, and I moved to Sweden when I was six years old. So I had never, that was my first experience living in another country, obviously. And I had to learn this brand new language and quite a different culture than what I was used to. So it made me really appreciate what other migrants might go through. And when my little village in Sweden started accepting refugees, I became extremely interested in the concept of the fact that we move it voluntarily, but some people do not. So that's what got me really interested in and working with migrants and with migration,

Katherine Ann Byam 3:40
identifying as a migrant, what do you see as the sort of advantages and disadvantages of this whole process?

Jenny K Wright 3:48
Well, I think what I really enjoy what I see other migrants also experienced is the kind of fresh set of eyes on on a situation or a way to problem solve things that maybe locals have not been able to see because you just can, you've experienced so many different environments, and you've seen how it could work in other contexts. So that's one of the advantages is a brand new skill set innovation in a way or some kind of creativity that might not already be there.

In terms of disadvantages, it could be just the differences of what you're used to, it can be extremely difficult when it comes to you know, learning a new language or new culture, a new system. And without a support network that you had in your country of origin, it can be quite difficult to overcome those obstacles to be able to contribute with with all those fresh ideas that you you are hoping to bring to your new country. So that's the it's connected in a way both advantages and disadvantages.

Katherine Ann Byam 4:48
It's interesting because for myself, I've been a migrant at least four times. I've also travelled a lot and tdone like two to three months, stints in places and That's really shown me a lot of my belief systems like it's really exposed them, because suddenly they're not relevant anymore. And you know, you show up in this new circumstance and you're like, wow, okay, that's new, that's different. How do I adjust? Here, how do I incorporate this when I go forward into the next experience? So it's always been essential to my growth, I think that I've moved around so much, I don't know how you reflect on that?

Jenny K Wright 5:28
Absolutely. I think that's one of the My greatest strengths. And then I usually do point that out to employers or to others and saying that one of the things I think, is the greatest experience for me, and what I think I learned more of than I did in school or the university is, is just travelling and living in a completely different environment. And I've, I've lived now in nine different countries, and quite soon will be my 10th country. And just like you said, you move into this new environment. And it's, it's incredibly interesting to learn all about that new country and the new culture, the new language, whatever it may be. But it also teaches you about yourself, and about views of the world that you didn't realise you had or biases you didn't even realise you had. And I think that's what really shows that how you can bring something to that that new environment, and you can you can take that with you when you go. So there's often that that that idea. And I'm curious if you've experienced that also, the idea of reverse culture shock, when you come back to your country of origin, the fact that you don't really understand why do we do it this way? I don't understand that anymore. But it was completely natural when you live there. Because you've experienced something different. You're you're almost it's almost like moving to a new country, even though you're moving back to your own country.

Katherine Ann Byam 6:39
Actually, I actually now think that I can't move back to my own country. Like I think I've changed too much to move back. Which is, yeah, it's exactly that it's exactly that sort of reintegration, sort of fear that you have, like, I'm not sure I can.

Unknown Speaker 6:55
Absolutely. I mean, I am very proud of the countries that come from, I think they're amazing, but I have no desire to live there. And I think it's because I've seen what else the world has to offer. And I want to see more. I just I think you just you have that wonder lust or you don't. And I just I don't think I could ever just go back to, to them, even though I'm very happy. And I'd love to visit. I just don't I don't see myself living there anymore.

Katherine Ann Byam 7:19
Exactly. I totally share that. So we recording this podcast on day 21 of Russia, Russia's, siege and invasion of Ukraine, a situation that is likely to reshape Europe's economy, foreign policy security, the humanitarian pressure is insane. Yet we've seen an incredible level of support across Europe and the world for the Ukrainian people. What are your thoughts on why Europe has been so welcoming to Ukraine, and so hostile in some cases? to othe rmigrants a difficult question?

Unknown Speaker 7:54
Yes. It's an interesting question, though i I can only speculate on you know, my what I personally think I don't know, any good explanation explanations for it. But I do think it's easier to relate with other people that that share a common history, their, you know, common demographic, culture, religion, and so on. And I, that is one portion of it, and the fact that their neighbours would be another component, the it's something that it's it's harder to accept people that you feel like maybe somebody else should have accepted first, while when they are at your doorstep, it makes more sense to to open the door. But I also think there's the, almost like a guilt in a way. And again, this is just me speculating. But I think that Europe feels like they they somehow owe this to the Ukrainians because of how the, especially the European Union, maybe, but also, NATO, for example, has been expanded East. And this was not something that was completely surprising, because it had been brewing for for quite some time now. So it might also be a form of guilt in a way to end lack of surprise, that they might be more willing to accommodate the Ukrainians than than other countries that they don't feel that same kind of connection to.

Katherine Ann Byam 9:13
Yeah, I mean, I know a lot of people speculate about about race as well and about the treatment of, let's say, migrants to to Ukraine, who were have darker skin colours as well. And do you think that it has anything to do with it?

Unknown Speaker 9:27
Personally, yes, unfortunately, I think that that has something to do with it. It's it's so even though I'm working from Tunisia right now, the my initial and personal contact to the Ukrainian crisis has been and large number of African migrants in like trying to leave Ukraine and being stopped or delayed at the border going into neighbouring countries. It's it's something that again, is anecdotal. I don't know how it wasn't there at the border. I'm not exactly sure what what went on there. But it is it is an interesting, interesting thing because it's something that We see also here in Tunisia, where there is a difference between people from when it basically depends on the passport you have, or lack of passport that you have, how welcoming people are for you to come in. Even if you're coming in through a regular border post, it should be no different than somehow there are delays, or lack of interest in processing people for for various reasons. And I don't have a good explanation for that. I've been told that has to do with class, but I feel like that's very 1800s. So I don't think it's that anymore. I think it unfortunately has to do with which passport you're holding.

Katherine Ann Byam 10:35
Yeah. And I think ultimately, it shows that this stuff is very complex. So one of the things I was reading recently is that for the UK, because I'm sitting in the UK today, they've decided to adjust their migration policies for Africa, in order to accommodate the Ukrainians as if there's like a quota system that they have in place for people that they will save or rescue from, from dire circumstances. And, you know, I wonder how, how this is really playing out in the population as well, you know, and I, you know, I'm not. So I just want to make this clear, like, I completely think that we need to support Ukraine, when they, when I look, my heart is broken for these people. And in fact, next week, I'm doing volunteer work to organise trucks to get goods and supplies there. But at the same time, I look at what's happening in the wider world. And I look at what's coming at us in terms of climate Jeopardy. And I'm concerned that we're not going to be able to respond appropriately. And I'm scared of the level of human suffering that we could encounter.

Unknown Speaker 11:46
I agree, and I share your concerns, because I think that part of the problem is the way that we are addressing it right now is it's quite outdated in a way. And it's also this, this idea, kind of going back to what we were saying about, you know, being migrants and realising that maybe we don't want to come back to our country of origin. And we have the option to that's something that I feel like is lost somehow. And I've worked with refugees and and since or fresh migrants and voluntary migrants since 2001.

Jenny K Wright 12:17
So a lot of it is anecdotal, I must admit, but I very few of them, regardless if they left because they wanted to, or they had to, after they've lived in another country for a while, they don't really have the desire to go back home. And it doesn't mean that they're not proud of where they came from where or anything with that it's just they got accustomed to where they were living. And they they they now feel like that's their home. And but still, somehow we operate under this, this theory that people will eventually go back. And I think it's wrong way of looking at it. Because it's first of all, it's not about like, where they go there, there should be. They could be going anywhere, in a way I think we need to be more flexible with where we're thinking of where people can go where they can be safe, where can they go, when they can actually be empowered, they should be able to be able to work, not necessarily storing them. And I hate to use that word, but it's sometimes I feel like we just we put them in a refugee camp. And then we feel good about ourselves.

It's not sustainable. And there's something that there's there's somehow no debates or proper debate on the durable solutions, a long term solutions for what's happening later. What is happening if this crisis is turning into a protracted crisis? Like what is the plan for these people to be able to, to provide for themselves and to have a real life that the children to go to school, the you know, the parents to be able to actually go to work, whatever it may be. And I think it's somehow lacking. It's more of this like, Okay, let's take them out of the situation. We'll put them here. And then nobody discusses what happens later. And it's also whenever you have these crisis after crisis, you're constantly focusing on the people that need the most help. Right now, while there are people that are constantly forgotten. They can't necessarily go back to the country of origin. But that doesn't either mean that they fall under the the legal definition of what a refugee is. And I think that's one thing that we have this, you know, the International Refugee Convention is as old as the UN in a way, but there hasn't been proper reforms to adjust to today's world. And I think that's just one of those challenges that we need to to think about is what happens next, what is the long term plan for these people? Because assisting them today, and having no long term plan is not assistance.

Katherine Ann Byam 14:35
What What are your thoughts on the kind of solutions we should be putting in place? What sort of reforms are you you're looking to shape as well, in the work that you do?

Jenny K Wright 14:45
Well, one thing that I think is really important is the idea that and I think it's something that we is one of the positive things that came out of COVID If I may say so, is the idea that people realise you don't have to be physically present in one office or in one country to be able to do your work. And I really been pushing this for several years long before COVID. Just because there's, my background is in risk management, I'm always looking at, like, what happens if you can't make it to work for Sunday. And I always try to get employers to think about, you know, you have parents that are or caretakers, or you have someone who has a disability that prevents them from going to the office, but not necessarily not doing their job. So you have all these different reasons why people might not be able to have a traditional job, but still would be an amazing asset to any employer. And someone who is refugee by that termination or displaced in some way, that having those either remote online digital jobs available to them, would really help because you could be anywhere, literally, and you could be able to still provide for yourself. And it's something that we need to get out of this this mindset that you have to be there in person and doing the work and trying to figure out a way for work to be global. And what does that look like in terms of taxes and social protection, you know, benefits and insurance. I don't have all the answers to this. But I'm what I was hoping is that this debate would really kick off thanks to COVID because there is a huge potential of just having talent, being borderless. And it would really help those people that are affected by crisis's or affected by climate change if they had those opportunities to work from anywhere, and still be able to find they can maybe move to another country to be safe and work in another country to make a living whatever may look like it doesn't have to be that rigid and in our solutions that we find for them.

Katherine Ann Byam 16:44
Now, that's great. And I want to kind of hone in on this climate Jeopardy topic, because this is a sustainability podcast. So it has to come up. But what are your thoughts on who has responsibility and how we should go about addressing this ongoing challenge in the near term and long term? So really looking at the climate stressed region? So like, we know that there are many areas and regions, you know, torn by wars and different sorts of crises. But when we look at the climate Jeopardy, and we look at the numbers, it it suggests that there are roughly three 3 billion people who could become impacted by this within the next 20 years or so. How should we prepare? And whose responsibility is it?

Jenny K Wright 17:33
Well, the easy question that would be that we're all responsible, right, and then in a certain way that most of us have in some way contributed to the crisis we're seeing right now, or our ancestors did. So I think that first of all, is we all have some kind of accountability when it comes to the solution in this also, but I am one of those who believe that the governments that can afford to to solve this problem should be the ones pitching in the most. But it's it's also something in terms of not just about cutting, cutting back on the bad behaviour, so to speak, the emissions and the just the the wasteful waste, I guess, the wasteful usage of our resources, but also trying to share the wealth when it comes to knowledge, when it comes to adaptation strategies, different types of resilience methods that people from the especially these climate, mostly the climate change affected countries could really benefit from, because I have lived in some of these countries that are really affected by you know, sea level rising, and just the increase in natural disasters. And they're often not aware of how certain of their their traditional practices might be fueling this.

So while I'm not definitely not saying that they are the cause of this, because I believe that more developed countries are the ones really contributing to the climate change here. But there's also a correlation with these, you know, hundreds of years old practices, that is not conducive to sea level rising. So there's, or whatever the hazard might be, but it's one of those things where we can share knowledge when it comes to how to do things differently, just like we can learn a lot from especially from indigenous populations to have been able to be self sustainable, and without messing up with the ecosystem of how we can do things better when it comes to managing our natural resources. At the same time, there's a lot of things and new science and technology can can show for the other, more traditional societies that might benefit the way maybe how you construct houses or agricultural products, or processes that are much better for the environment that don't involve, you know, cutting down or burning down trees to make room and so on. So there's, there's different ways where we can learn from each other. And I don't think that we're doing that enough, either.

Katherine Ann Byam 19:52
Yeah. And what will you recommend to people who are located in these climate Jeopardy zones, like, what should they be doing? for their own self determination,

Jenny K Wright 20:01
it's difficult because there's often a lack of financial resources. So for me to give, give them advice on what to do is quite difficult. But one thing that I would encourage is so before I moved to Tunisia, the other country office that I worked in was in Timor Leste. So it was very interesting to see how these Pacific countries are preparing for what will happen if the sea level rise is more and some of them are already speaking with neighbouring countries to see they've even relocated entire villages. So that's one thing is to kind of look into migration pathways like looking into different types of seasonal work to eventually become more of a permanent situation, engage with neighbouring countries that might have the resources to do scientific research, for example, to see which communities might be affected first, we're already are, and what options are there for them. And if it's something that they can't fund, afford themselves, then perhaps there are others that could help another avenue could possibly be to make the visas free for academics to come and do research in the country or engineers to come in construct different types of buildings or infrastructure that are more climate resilient. So there's there is options for for them, that might not necessarily need to cost a lot that could still help in terms of in the long term, preparing for what will happen if this gets any worse.

Katherine Ann Byam 21:35
Now, these are really, really good tips. I love your ideas and solutions. And I hope they're listening because there are things that actually we can engage in to kind of build solutions faster. One of the areas that I that I studied during my MBA was around frugal innovation, right. And it was really talking about this, this social impact type of innovation that happens that actually provides really robust solutions for very low cost. And I think that this is part of what we need to be championing everywhere, like really looking at how we can use the environment around us to, to develop ideas to develop new thinking to, to break the mould, right, that's when we're not looking for profits anymore, the way that we break the mould that could be completely different. And the way that we approach solutions can be completely different. So it would be great to see us embrace more of this in all of the countries, to be honest.

Jenny K Wright 22:34
Absolutely. And I think another thing is definitely trying to share that, that enthusiasm with the next generation, it's, it's something that I probably think is the most sad is when I see young people, you know, throwing trash, you know, for example, right now I'm close to the beach, and it's a beautiful beach. But I've noticed that young people here often throw their trash right on the beach, including, you know, breaking bottles or throwing plastic into the ocean. And it's, it's very sad to me to see that because this country is so beautiful, and they they make a lot of money on tourism. And there's there's just no it seems to be like no view of the consequences of one's action and how that affects the future of the economy of the country, but also the environment around you. So that's something that I think is more on an individual level that we can hopefully teach our children to, to respect and to ensure that things are more beautiful than we found them and to never trash the resources that we've been given or waste them unnecessarily.

Katherine Ann Byam 23:44
Yeah, totally agree. Would you say that the international aid sector is doing enough to help alleviate the pressures?

Jenny K Wright 23:55
In terms of the the climate crisis?

Katherine Ann Byam 23:57
in terms of the climate crisis, or even in general, in terms of the refugee crisis? Do you feel like the international aid sector is are resourced enough and doing or spending their efforts in the right ways to help?

Jenny K Wright 24:11
I think the intentions are great. I one thing that so I worked with IOM in in Zimbabwe in 2010. And I worked there for a year and then I took basically a nine year hiatus, working with governments and then nonprofits and private sector. And what was interesting to me when I came back working for, you know, international organisations again, nine years later that I didn't really see that much had changed. We had changed from the Millennium Goals to the sustainable development goals, but in general, it didn't seem like we had achieved that much. So I think part of the part of the issue is that we are incredibly compartmentalised not only within the different agencies but also I across agencies and between, not you know, NGOs and the IGOs, like the UN system versus the civil society on the on more on a national level, or just between the different actors that can make a difference are not as coordinated as they could be. And we try don't don't get me wrong, everyone does. But there, there should be so much more coordination when it comes to everything from the design to the implementation to evaluating what has been done to ensure that there is an impact every single time. And then teaching those lessons learned and best practices so we can replicate what works and learn from the mistakes of others to not repeat that. And I feel like that's still something that's, that's lacking, and we're getting better at it. But I just wish we had got better at it 50 years ago.

Katherine Ann Byam 25:49
No, I totally understand what you mean. And I see it now with all of the effort that's happening with Ukraine that, that there's not a hell of a lot of coordination, but resources are getting there. And people are doing their best to sort of support the flow of resources and even people to help out. But definitely, it looks as if there's an opportunity for for better coordination and harmonisation in some way.

Jenny K Wright 26:17
Absolutely. I think that I mean, the desire to help is there, which is great and is admirable, but there is better ways to do a lot of things that I think that's that's why I always get the jobs that I like, are always in an inter-agency kind of function working with different partners trying to show that there is ways for international community to work with the local civil society working with governments at all various levels, and with the private sector hand in hand, to do something that works for everyone, and showing that everyone has a part to play in the solution. Because I just think that you have often these, you know, one off projects, and this is this is not just the fault of organisations, per se is usually where the funding comes from is many organisations are project based, it's it's how many of us get our funding, and it's really difficult to to do anything that will have a long term impact when we're expected to change the world and 12 months. So it's it's one of those things that the the development partners that do have enough funding to be able to, to really make an impact to also get out of that mindset that, you know, change does not happen overnight. And if we really want to have a sustainable impact, and hopefully not have to continue giving to the same country or the same group of people, then we need to think more long term with a properly planned programme that that is, you know, scientifically sound evidence based, you know, replicating what works, and then having these actual results that we are trying to achieve. And I really hope to see that soon.

Katherine Ann Byam 27:52
I was talking and interviewing someone who works in support of some sort of privately funded agencies that work in Africa. And one of the things that came up is that he was comparing sort of the entire aid budget overall, and looking at how much corporations spend on training, and realise that actually, the investment corporations make on training, which impacts a very small amount of people is much more than the international aid budget overall. And I thought that was a really interesting statistic. Do you think that corporations need to do more? Or do you think that they're doing enough?

Jenny K Wright 28:34
I think what they need to do is understand that they actually have something to benefit from helping not just from like a corporate social responsibility perspective. But there's there's also this huge potential of if you help people with economic opportunities, where they can potentially get jobs, or they had the ability to save money on something, whatever maybe is that could actually be good for their business. So there could be a connection between increased revenue for many companies just by actually helping the local community where they serve anyway. So there's there's also that but there's also the idea of testing new innovations to see if it works and trying to to be part of the change. And and that's incredibly great marketing, even if it's not necessarily part of the CSR approach. But I think that's something that I always thought that's why because I worked for many years in private sector, I tried to show them that they have so much to give to the aid sector in terms of how you do something with that kind of business mindset, which a lot of people seem to think is some kind of dirty word when it comes to when you work in humanitarian assistance are an in development work, but it's not. It really should be something that makes financial sense on how you do something. It should be kind of going back to your own idea of you know, being frugal and You need to do something that generates results. So there needs to be a return on investment. Even if we're talking about people's lives or their their rights, there should still be some kind of accountability for how you spend your money. And that there is proper planning when it comes to what kind of results you're expecting. And I do think the private sector does this well in many aspects, and we can learn from them. And likewise, companies can learn from humanitarian organisations or development agencies on how they can do things that help the community that would actually make the community able to be more of a consumer of their products or services also, so could be good for their own income by helping others.

Katherine Ann Byam 30:45
Yeah, no, I love this. I want to ask you one final question. And that is about working in a sector. So I know that you've been doing this for some time. Now, I'm not sure exactly how long so you can feel free to include that in your answer. But how does one really go about getting involved in this space? And what's what's your recommendation? And from from both sides, so I know that there's directly humanitarian type operations, but in terms of policy setting, and all of these things help, how can we get involved?

Jenny K Wright 31:21
I think the the main way to answer that is it depends like what you're interested in, because often in this sector, it might not pay very well. So it helps if you have a huge dose of of energy and enthusiasm for whatever the subject may be that you want to get involved in. So for me personally, because I come from a family that that really loves, charities and and, and we were always raised that if you can help you should help. So for me, there was really no other option. I always I've been volunteering since 2001, to answer your questions over 20 years working with, mainly with migrants, but also with animals, I've worked with various environmental organisations, I, I just love it both working and volunteering. So in terms of getting started, I, I see there's always opportunity of volunteering, not everyone can afford that. But there are plenty of opportunities to do that, for example, online, even if it's just an hour a week to see, you know, get your feet wet and see if it's something that interests you. There are plenty of both unpaid and paid internships where you can get a chance to see what it would be like to do a career in those areas. In terms of getting started with that, I would definitely recommend applying anywhere everywhere, because internships are very rarely published, especially with smaller organisations and at country level. So that's something that many people don't think about. And they only apply to the ones that are posted. But there are so many more out there if you're just willing to to send some applications out and see who might be able to hire. Those are both great opportunities to get the foot in the door and to show what you're to see if it's something that's interesting, but also to show what you can do. Oh, sorry, to ask you a question about policy. I think that's something where creating a platform is a great way to do that to show that you can influence people be on social media, or be it in person or whatever it may be. So in terms of trying to get into more of the advocacy, sphere, or policy and so on. Showing that you are able to change the hearts and minds of people is a great way to get people interested in you working for them.

Katherine Ann Byam 33:38
How can people get involved with what you're doing and support your work?

Jenny K Wright 33:42
Well, for example, in art, we're about to launch a new initiative in the country offices. I'm working right now with more of Ambassador programme. It's it's a volunteer type programme, but the idea is to kind of vet some some young influencers, who are interested in migration and the positive aspects of that could have in terms of contributing to the economic development of countries, in this case, Tunisia. And we already have some people that we have selected for the group, but there's going to be I'm more than happy to get more applications for that if anyone wants to help promote different positive initiatives that are being done to show that migrants are contributing positively to their their host communities. There's actually another global campaign called it takes a community. It's a global campaign by IOM called the it takes a community and it also shows the positive contributions of migrants into the their host communities and how we can all work together to create a better community and future for everyone. And I think that's a really positive campaign. That's a good way to for others to contribute and pitch in and it doesn't take a lot of time. It's just more kind of highlighting these these nice stories that often unfortunately, don't make it to the news. But just some success stories or some nice positive examples of how people can work together and no matter what the their backgrounds might be. So that's one way to get involved in that area.

Katherine Ann Byam 35:16
Tell everyone about migrants guide.

Jenny K Wright 35:19
So a migrants Guide is a new blog that we are about to launch. And the idea is to create kind of a repository of helpful articles and resources and stories from migrants around the world for other migrants either aspiring already current migrants to be better prepared before they move to a new country. I don't know about you, but I always look for blog articles, or other real life stories from people who have already moved to the country I'm heading to, to know what to expect to know what to pack to know what I need to think about before I go there like it, it all really helps. And the idea is to create this blog by everyone helping everyone who is interested in moving to another country with these helpful tips. So if anyone is has lived or is living in another country, and we'd be willing to either write an article or write a short story about their experience, and what kind of lessons they learned, or what kind of tips they would like to give to somebody else, that would be extremely useful and very much welcomed them.

Katherine Ann Byam 36:27
Thank you so much, Jenny. And I'm definitely going to put all these links into the show notes so that people can get engaged with all of this. So please remember to check out the show notes and follow Jenny's links. Jenny is also a huge influencer on LinkedIn, and she has over 40,000 followers. So if you wanted to connect with her account on LinkedIn, I'm sure you're going to get signposted to all these great resources that she posts about regularly. So, Jenny, thank you so much for joining us. And thank you so much. Let's let's all collaborate and make this migration challenge really become an opportunity for for everyone and for the world.

Jenny K Wright 37:03
Yes, that'd be amazing. Thank you very much again.

Katherine Ann Byam 37:08
This podcast is brought to you today by the brand new women in Sustainable Business Awards, that kicks off in 2023. If you're a business owner who's starting a business with principles of sustainability in mind, and you want to preserve some lost skills, some handcrafting or artisanal work, or you're a social media manager supporting purpose driven brands, or you're creating fashion was something that is relevant to the sustainability in green transformation. You are more than welcome to join us and to get involved in these awards. Check out our group on Facebook women in sustainable business. Or follow the podcast where ideas launch on Instagram to find out more

070 Growing a Successful ESG Consulting Practice

070 Growing a Successful ESG Consulting Practice

About this Episode

Heather Burns is an independent ESG and sustainability consultant who for the past 15 years has helped global companies and NGOs find ways to improve and report on their social, environmental, and corporate governance performance. She has also helped to develop global ESG certifications and standards, and is the founder of a nonprofit business association focused on scaling business solutions to climate change. Her work in sustainable development (an initiative called Haiti Onward) was recognized as a semi-finalist in the 2011 Buckminster Fuller Challenge.  

 Her interest in sustainability was sparked in 1998 while traveling and working as a Divemaster on a small island in Thailand, where the waters she dived every day were in rapid decline due to two local economies (tourism and fishing) battling over the same fragile ecosystem. Working with local residents, dive shop owners, and local fishermen, she and other divers formed an island conservation organization still in operation today.

 Her latest adventure involves teaching consultants of all types how to start and grow a successful ESG Consulting practice.

Subscribe to Where Ideas Launch

Connect with Heather

Episode Transcript

Heather, welcome to Where Ideas Launch!

Heather Burns  1:29  

Thank you, Katherine. I'm so happy to be here. I love your podcast.

Katherine Ann Byam  1:33  

Thank you so much for joining us and for shedding some light on this whole idea of ESG. And I think that's going to be my first question to you, actually. I talk about it at times, but I think that not everyone understands what ESG is. Why don't you share with us what exactly this means and where came from?

Heather Burns  1:51  

Yeah, so I think I love a good definition. And it's really important, particularly in sustainability, because there are so many of them flying around. So ESG is the practice of measuring, monitoring and reporting on environmental, social and governance performance. So the environment can include operational impacts, like wastewater energy, or those related to climate change, such as carbon emissions. And then social impacts can include how a company treats its employees, how it engages with the communities in which it operates and whether or not it prioritises diversity, equity and inclusion. And then governance addresses decision making and transparency and the distribution of rights and responsibilities. But it's important to keep in mind that the goal of ESG is actually sustainability, which is defined as our ability to meet the demands of the present without jeopardising the ability of future generations to meet their needs.

Katherine Ann Byam  2:52  

How do you think we're doing?

Heather Burns  2:55  

Well, we could always be doing better. You know, I definitely think we could be doing better. But I think that and as I'll get into a little bit later, it really has reached the tipping point that many of us have been hoping for for the last decade, and has hit the mainstream. So I think we're on a good trajectory.

Katherine Ann Byam  3:15  

That's a good answer. I want to get back a bit and talk about how you came to this in the first place. Because when I meet consultants now in the space; Environmental Consultants who've been around, or that's what it was called in the old days, environmental consultancy. How did you come to this? And where did you come from to bring those skills to this space?

Heather Burns  3:35  

Have you ever watched a movie that changed your life? Yeah, right? And so that's happened to me twice. And the first time and both are related. The first time was back in the late 90s. And I was feeling a little bit lost, you know, all my friends are settling down, getting married, doing that whole, you know, kid thing. And I was like, still trying to figure out what I'm supposed to be doing. And I remember watching Seven Years in Tibet, and I was just so enthralled by the idea of getting out of the United States, and seeing the world. So I sold or gave away all my stuff. I bought a one way ticket and I spent the next three years living and working in Asia. And while I was there, I lived on this tiny island in Thailand called Koh Tao and I became a scuba dive master and I was diving the same waters every day for hundreds of dives. And I really witnessed human impacts causing the coral reef to die. And when I stopped to think about it, I realised that it was because commercial fishing and tourism, you know, two main economies of this community were at odds over the same ecosystem, and that really sort of planted a seed. So fast forward. 

A handful of years later, I'm back in the United States, and I'm doing that whole thing of getting married and having kids and I sit down to watch Al Gore's An Inconvenient Truth which is a doctor's memory about climate change, as you probably know. And what I learned watching that movie really became the sort of before and after period in my life, right? It was like before I knew about climate change, and after I learned about climate change, and let me tell you, it's not an easy movie to watch. And I almost turned it off. But there's this part, you know, where he looks at the audience, you know, and he's looking you dead in the eye. And he's like, before you jump from denial to despair, like, stop in the middle and do something. And I was like, Okay, I'm going to figure this out. 

So at first, I thought about going to work for an NGO, like Greenpeace for Sierra Club, because they were doing really cool things. But that seed that has been planted back in Thailand, around economies, you know, really kind of needle me and it told me that working with business was one of the things that not a lot of people were doing at the time. And perhaps it was actually one thing that can have a great impact. You know, the problem was that the industry at that point was incredibly nascent. And everyone was like, still trying to figure out what sustainability and ESG actually even were. 

So I started with what I knew how to do, which was research and right. And so shortly after watching the movie, I created this blog called CT Green Scene, which was basically like a round up of all things green and environmental that were happening in my state, and I focused as much as I could on business and entrepreneurs. And, you know, I learned as much as I could from watching companies like Seventh generation and Patagonia and seeing what they were doing. And after a few months, I started hosting these networking events, which took off because we were, we ended up in the New York Times, somehow, I don't know. I don't know who called them, it was not me. But before I knew it, like companies were asking me to consult them back then it was called going green. So, you know, getting my first paying client, of course, is a bit more of a story. Because it's always easy to do free work as a consultant. But eventually, I think, yeah, it was a colleague who told me about an association that her company or company was a member in, and they ended up hiring me to write a sustainability report. Well, of course, I had absolutely no idea what I was doing. And it was definitely like flying a plane by Well, you know, trying to build it. But they renewed for a second term of the contract. So I couldn't have done such a bad job. And that was kind of how I got started.

Katherine Ann Byam  7:31  

That's an incredible story. And I think that a lot of us think like this. So we have this, this moment where things become clearer, like my clarity moment was actually reading a book called Jugaad Innovation to get innovation stories of India and how they innovate solutions from cheap from from the natural environment to make things work, like building incubators for kids, or building fridges so that they can keep their food fresher for longer from clean water and stuff like this. And there's always a moment when there's cognition, you know, something sparks, something opens up. And then the next question is, how do you do something? It's, it's kind of like, you know, you listen to the knees and something happens, and you're like, how do I get involved? How do I participate? How do I make an impact? And I think what's great about your story is that you didn't come from a traditional environmental background, if you want to talk a little bit about the kind of skills you brought to the table, and you started.

Heather Burns  8:29  

So at the time, I was working in the publishing industry, I was working as an editor and a freelance writer. So my skills were basically you know, revolved around research and interviewing questions, asking really good questions, thinking deeply about a topic and kind of being able to peel away the layers to get to what's really going on behind that I think was sort of, and then being able to communicate in a compelling, you know, way that made people want to get involved. I think those were sort of the core skills that I started with. And I'd add to that of deep interest and passion for learning, and really just wanting to, you know, expand my skill set.

Katherine Ann Byam  9:17  

That's really interesting. And I want to take us a little bit now to what are some of the shifts that you've seen happen in your tenure in this space? So you've kind of been doing this work now for more than 10 years? What sort of shifts have happened? And how do you sort of compare this to what's happening right now? And what's really made the big difference in your view?

Heather Burns  9:42  

Yeah, so I think there have been two significant shifts that have shaped the industry and created what is now this unprecedented demand for ESG and sustainability consulting services. And the first was the shift from thinking about everything In terms of green, right, which really means all things environmental, to the idea that people, planet and profit, which was referred to as the triple bottom line, are actually connected. And that really led to this idea that sustainability is the goal, and that you have to have those three pieces in order to achieve true sustainability and business. So that was the shift that was really the precursor to ESG. And to companies understanding, you know, this idea that triple bottom line meant that they could actually, you know, prosper as a company. So around that same time, seventh generation, which makes non toxic consumer products was acquired by Unilever for $700 million.

Heather Burns  10:53  

And that was like that made people kind of pause like, whoa, Unilever's interested in a company like that, because until that point, those types of companies have really been in this very specialty type of market, right. And of course today, Unilever's sustainable living brands has a 50% faster growth than the rest of their portfolio. So certainly proven now. 

But the second trend is more recent. And this is that critical move from, you know, the sidelines to mainstream. And people ask me all the time, you know, how do you know that this is shifted to the mainstream when so many companies are still oblivious, or in denial or whatever it is? And you know, how do we know that things won't just go back to business as usual, when there's a next change in government leadership or something. And I tell them that, you know, it's because it's at this point, it's coming from all directions, and every stakeholder group, right? So it really started with this consumer demand, there was the emergence of what was called a low hos sector, which was lifestyles of health and sustainability. And these were folks that were, you know, vocal about the fact that they were willing to pay more for environmentally or sustainable products environmentally friendly. And today course that Mark is on track to hit 150 billion in the US alone, and 90% of millennials are willing to 90% of millennials are willing to pay more for products that are environmentally friendly, or sustainable. So those people actually happen to work, right, they have jobs, so their employees.

 So then you have this shift into the employee stakeholder group, where you've got 80% of millennials wanting to work for a company that's strong on ESG. So companies obviously want top talent. And their top talent is telling them this is what we're looking for. So they're getting it now from employees, and then you layer on the supply chain. And you've got all these disruptions that are, you know, started off kind of in the fashion industry and saw a lot of terrible fires in Bangladesh, and people died. And, you know, this led to really like, you know, this outcry around the supply chain, right. And now you've got COVID and a pandemic, which just elevated everything and really put a microscope on and the fact that our supply chains are completely broken. 

So all of this uncertainty is really seen as risk, particularly when you're looking at it from the perspective of investors. So, you know, last but certainly not least, are a stakeholder group of investors. Right? And so, last year, in his annual letter to CEOs, Larry Fink, who's the CEO of Blackrock, which is an investment firm with over $9 trillion of assets under their management, proclaimed CEOs, right, that climate risk is investment risk, and that companies need to get serious about it. Well, everyone thought, well, that's really interesting, right? Well, and then the pandemic hit, and they thought, ah, that is just, you know, that will kind of fizzle. Well, instead, it didn't fizzle. In fact, it took hold. And then in his next year, which was this year, a letter to CEOs, not only did he reiterate that, but he basically said that companies that are not Net Zero, by 2050, are going to be, you know, ops become obsolete. So this is really now sending complete shockwaves through the global markets. And not to mention, it's led to companies like Amazon and Unilever and Microsoft are now making these netzero claims. And they can't get there without their suppliers because 80% of a company's greenhouse gas emissions is actually embedded in their supply chain. So now you've finally got this pressure that's being put on more of the midsize companies and so that's why I say it's here to stay

Katherine Ann Byam  15:00  

Yeah, no, I totally hear you with that. And I want to slightly shift and challenge you a little bit. And it is, is ESG the same as CSR? And therefore, is it just another form of greenwashing. Now, I think I understand a bit more about it than that. But for my listeners, they want you to debunk this idea that the ESG sort of framework is not just another effort of companies to cleanse their past?

Heather Burns  15:31  

It's a fantastic question. And, you know, I'd say that the answer is quite complicated, really. And there are certainly experts out there who I respect, and who are actually very vocal right now and criticising ESG. And they're not wrong. But my pushback really is always that we need to do what we can when we can. And, you know, I will directly address that in just a minute. But I think, you know, everything about this industry is evolving. And we really need to evolve very, very quickly. And we need to keep that in mind. Companies are not designed to be able to evolve quickly. They're designed to get really good at their core deliverables and what they do and what they provide, right. And so, change is difficult, even on the individual level, you try to take that to the whole corporate culture level, and you're talking about it, it's going to take some time. 

So that's certainly not an excuse, by any stretch of the imagination for companies to take advantage of that. And I think what I really do like about ESG, is that it is, you know, what is measured gets managed, and along with ESG, is this component of reporting, and becoming very transparent, and publicly open about whatever your environmental, social and governance performance is. And then setting goals that you're comfortable with. And this is usually where the most criticism comes in is, you know, companies are setting goals that they're comfortable with. They're not necessarily setting goals that place planetary benefit at the core of that goal, or even what's called, you know, planetary context. So for example, you know, if a company makes a commitment to reduce its water usage by 10%, over the course of whatever, that could sound like a great or 20, even 20, or 50%, whatever that number is, because it sounds like an amazing number. 

But then if you really look at that particular company, you have to look at what watershed is it actually in? And what does that watershed require? Not the company what, but what does that actual watershed require to become more sustainable? So there's certainly some weak spots. And then as far as greenwashing goes, I mean, it's always a risk, and it and it will continue to be a risk. But I think that this idea that transparency, and supporting and backing up with data is becoming much, much more than expected, right, it's expected from investors. I mean, you can't really pull the wool over an investor size. I mean, if you do, there's serious consequences to that, you know, you're gonna be held to a much higher level of accountability around investors than you are consumers, unfortunately. But that's kind of just the truth. So I think that this idea that this newest kind of wave of investor involvement is, is critical to stem the spread of greenwashing.

Katherine Ann Byam  18:51  

Yeah, I, I really get this. And I think there's a lot of pushback also on how companies are solving the problems. So things like, you know, should we be doing offsets? Or should we be really innovating from within? Should we really be getting all the things out? And I think you've kind of answered that already, in terms of how difficult it is to make change happen. And we actually need the companies that are dedicated to the offsetting to kind of get something for their effort, right. So companies that are trying to build solutions that are specific to that, you know, you kind of want to support those even if they are interim solutions, but we need every solution. Right. But I don't know if you have a different thought than that.

Heather Burns  19:32  

No, I agree with that. 100%. We need our solution. And new solutions will also come online, right? I mean, we're not thank goodness, we're not operating in a bubble. And now the companies see a very strong business case for incorporating these things. I think that's going to lead to more R & D than it already is. It's leading to more R & D, more investments and more innovation, innovative solutions for the marketplace. So we'll continue to see more of those as we go along.

Katherine Ann Byam  20:07  

That's interesting. I want to tap into that, because what do you anticipate as the sort of future of the next five years of this ESG framework, etc. Because, for me, what I'd probably like to see is that it really becomes more integrated and embedded in everything in all the reporting that we do in everything that comes out of a company. But what are your thoughts on where you see this going in the next five years? Well, it's

Heather Burns  20:32  

definitely going to become more integrated. And I think that certainly has pros and cons to it. And the way that we get there is a little bit concerning because there's not a lot of standardisation, particularly when you're talking about, you know, consulting, and providing advice in this space. And in some ways, that's a good thing. Because I truly believe that there's a place for every single consultant who wants to get involved in this can have a positive impact doing so. But at the same time, there's very little, you know, academic programmes that are sort of all over the map, in terms of what they cover. Most of them are highly theoretical and methodology based or not practice based. So it's really a nascent industry sector that needs more. Yeah, more, you know, consistency across the board. But sort of from an industry wide perspective, I think one of the things that I see that's kind of exciting, actually, on the horizon is this idea of carbon pricing. And, you know, there are lots of different models out there and each other has pros and cons for sure, as far as climate change goes, but putting a price on carbon will really help us to realise the true cost of our emissions. And so for too long, you know, companies have externalised environmental costs, and basically borrowed from our future and future generations, to keep prices as low as possible for Chris consumers, you know, and we, as consumers have benefitted from that, so there's sort of no innocent bystanders here. But what's interesting is that many companies actually see carbon pricing as a necessary shift that they need to make to get to a carbon neutral economy. And many of them are already using an internal price on carbon to make really important business decisions. So yeah, I think, I think that's really exciting in terms of like, getting everyone on the same page, and starting to really understand the cost of the things that we use,

Katherine Ann Byam  23:03  

So true. And I also think that, you know, it's like your analogy about borrowing from the future, like, one of my guests once said, and I always remember it, that we have that we have this inheritance, right? It's like your great grandfather's left your big, big inheritance, and we decided to do it on the first party, right? Instead of sort of leaving it for What's tomorrow. And, and essentially, that's, that's where we're at in it's like, you know, what we see going on with Russia and Ukraine and all the situations that we have going on in the world at the moment, a lot of it is a land grab for resources, right? That's a land grab for things that are scarce. And I can't see that changing until we change until we start thinking about things differently. So it seems, and I don't want to see anything as inevitable because that's scary language. But if we don't, if we don't embrace this, we will have other consequences that we will need to embrace. So we need to, I really think we should choose the lesser of the evils. I don't know if it's,

Heather Burns  24:10  

yeah, I mean, Change is inevitable, and adaptation is necessary at this point, you know, and, and the science is evolving, right. So as we learn more about the impacts and the CO impacts, and the long tail impacts, you know, I mean, the things that we're missing today are not what we're experiencing today, right? It's what our kids will experience. So it's, this is a long game. And I think that's another sort of mindset shift that's necessary if we're so instant gratification, you know, programmed and we've really have to start to think more in seven generations, right? Like think about those seven generations. Yeah, I think that's an important mindset shift to have for sure.

Katherine Ann Byam  25:05  

I want to ask a few questions now for the people who are listening to this who may be interested in dipping into consulting in this space. And I know that many of my younger listeners, people in that sort of millennials, slash Gen Gen Z categories, are really thinking about what they can do to make an impact, and what advice would you give them?

Heather Burns  25:28  

Well, it's a super exciting time. And I said it before, but I'm gonna say it again, I honestly believe that there's a place for everyone. And it really is a blue ocean opportunity for consultants who want to help or people who want to help companies prepare for what's ahead and become a part of the solution. So I certainly think that that's, you know, the time is now if you've been thinking about it, like, dive in. Because when you think about it, and everything we've talked about today, right, there's just enormous, the floodgates have opened. And I actually have friends who own a company that helps pair companies looking for consultants and ESG consultants, and there's just such overwhelming demand, even the consultants, these firms that are out there that are doing this kind of work, they don't have enough people. So there's just this unprecedented demand. 

And I think that's first, the second thing is that there really is this myth, and it's starting to weaken, but it's still really very much there. And that is that, you know, you have to be science oriented or tech, not, you know, very technical in your expertise. But that's really not true. I mean, like you said earlier, I did not come from, you know, in a traditional environmental background, many of us don't. And in fact, companies certainly are utilising, you know, subject matter experts and technical experts for their, you know, their footprinting, or their life cycle analysis. But they also really need more of the overarching consultants who can help them navigate all of this change that's required to embed a strategy, you know, create a strategy and embed it, and then communicate it. And so you know, as for more specific skills, and experience, I think there's probably like three things to keep in mind. 

The first is that surveys have shown that the most sought after criteria that companies are looking for when they're hiring people, is that they have industry specific experience. So if you can find a way to start, within an industry that you already have experience in, you're definitely going to have a leg up. 

The second is that strong communication skills are very important, right. So the ability to make a compelling case for change. Whether that's through written internal kind of communications, or external branding, kind of communications, or verbal presentations, its communications is definitely something that everyone involved in ESG. And sustainability really needs to be good at. Because you're trying to get a lot of different people onto the same page and rowing in the same direction. So I'd also say, really close to that is that there's relationship building. And, you know, companies are really often very nervous about like, you know, pulling back the curtain, and, you know, they fear judgement. And let's face it, no company is doing everything. 100%, right. And lots of them have been contributors to the problem. But it's a learning curve. And so the ability to create trust and relationships and rapport with companies, I think is really important. 

And then third is kind of like a bonus, I'd call it and it's maybe a bit more of like a superpower. But it can certainly be learned. And that is whole system's thinking. So I really like the ability to draw connections to sustainability from all sorts of angles. And this helps you not only come up with innovative solutions for your clients, but it also makes it easier to see, kind of down the road, what's coming next in the industry. And that is something that companies will definitely like to pay a premium for.

Katherine Ann Byam  29:49  

That's really great and a slightly different tack on this question. And it's something that I've been kind of receiving and I want to validate if it's actually true, but I think this is probably The first corporate role maybe other than HR, that could be female? What are your thoughts on that?

Heather Burns  30:06  

Well, I think certainly there is a shift. However, you know, if you're looking at business and industry, I mean, it's predominantly male. Right? So I mean, we have that. But I think as far as the potential, it's, it's certainly there. And I would, I would definitely say that it's gotten better or a little bit easier to be female led, because, you know, in the early days, the denial was just so like, in your face, and I mean, I've had men really kind of get in my face about it, you know, back in the 2000 10s, kind of, you know, looking at me and like, Yeah, this is never going to be a thing. Like, we, you know, what are you even doing? This is just not even gonna be a thing. And it is a thing, to those of you who said that, to me, it is a thing. So, yeah, I do, I do think and I think women are also very well positioned in terms of like, they're typically good communicators. Right. So I think there's some, definitely some alignment there

Katherine Ann Byam  31:19  

any closing remarks that you want to share with my listeners, and maybe how they can connect with your work?

Heather Burns  31:26  

Well, I'd say there's two ways. First, is through a digital course that I developed called ESG, consulting foundations, and that teaches how to build a successful ESG and sustainability consulting practice. What makes it different is really, you know, we go well beyond theory into the practice of being an ESG, and sustainability consultant. And, you know, how do you find your first clients? How do you make a strong business case? And how do you build credibility quickly, things like that. And second, I don't even know if you know this yet, but you have inspired me to start a podcast. So it's called consulting 9.0. And we look at what it's like to build a successful consulting practice on a warming planet. Season One is going to be interviews with seven pioneers of sustainability business. I think six of those seven are actually meant. So there's some equity work necessary there. But the 9.0 really is a play off of the nine planetary boundaries that are required for humans to be supported on the planet. I love

Katherine Ann Byam  32:41  

This is because I love that word. You recommended it to me actually, you recommended that I read donut economics and, and get into that space and and I really like how she has sort of centred this idea that we need to live in balance with these nine boundaries. But we also need to make sure no one falls through the hole. And when we say no one, it's like, it's biodiversity, right? Life itself doesn't fall through that hole. So I really love that you've embraced that in your work. And I'm really looking forward to when you bring that podcast out. Thank you. So Heather, it's been really a pleasure to have you ever learn so much in the session, and I'm sure many listeners have to thank you so much for joining the show.

067 Systemic and Sustainable Mobility

067 Systemic and Sustainable Mobility

About this Episode

Today, my guest is Tillman Vahle. Before Joining SYSTEMIQ, Tilmann worked with EY sustainability consulting and auditing - working for several globally leading corporations, smaller companies, and the German Government to support better transparency and trust in sustainability reporting. 

Previously he worked at Volkswagen Corporate Foresight, where he developed a Master Thesis on autonomous mobility for his masters degree. He also had experiences with German Development Association GIZ supporting a review of national parks Management of the Philippines and the DESERTEC Foundation. He holds degrees with distinction from University College Maastricht and IIIEE, Lund University.

Subscribe to Where Ideas Launch

Episode Transcript

Welcome to Where Ideas Launch. Tillman.

Tilmann Vahle  1:28  

Thank you, Katherine. Great to be here.

Katherine Ann Byam  1:30  

Great to have you.

So tell us a little bit about systemic and what you guys are doing to help us redesign and decarbonize?

Tilmann Vahle  1:38  

Yeah, so systemic was founded five years ago, after the Paris Accords, by the then leaders of the sustainability branch of McKinsey, Germany opened home and Martin stata and the original mission and still is, it's really to double down on environmental sustainability. And basically across the board, right, so we look really at high impact stuff. And across natural systems, the rain forest regeneration, for example, on materials management of the circular economy, through plastics, recycling, on our sustainable battery value chains, in the mobility system, and in the energy system as well, where we run especially work on harder to bed sectors.

So that is, you know, the foundational industries of our economy like chemicals, steel, concrete, aviation, shipping, the stuff that is very hard to decarbonize and more sustainable. And that's what systemics mission is, we work globally, we were now 300 peoples, and since we started 2015 16, and we work with, you know, governments, top corporates, innovators, banks, and you know, large organisations like the WWF, or the World Economic Forum to make that happen. Yeah, and that's, that's what we do.

We try to take assistance angles, not only advising one company, but we, when we advise work with companies, we want to look at how they can be part of a better future system? So the system is our client, if you will, and then we run a lot of consultant analytics to underpin these consults. Yeah. And then that is what where we think we are USP lies where you're putting the right players and the right brands together to really put the accelerate the decarbonisation fundamentally, 

Katherine Ann Byam  3:25  

How did you come to work in sustainability? And was it always in your role since you started working?

Tilmann Vahle  3:30  

Yeah, so I mean, ever since starting studies, basically, I had the goal to look at the largest challenge, large challenges of our time and decarbonisation are climate, climate change and the loss of biodiversity they appear to me like the big existential crisis of humanity. And so, you know, with all the modesty of the young student went right into that.

And the way that I that what caught my attention in the beginning, and what brought me on my path that I'm on now is, I read an amazing book by the founders of the Rocky Mountain Institute, which is called Natural Capitalism, which is all about, if you look at systems from a fundamental angle, I could go back to the physical principles go back to like a proper, deep dive refurbishment of the system. And you can make dramatic improvements with actual cost savings.

You know, when I started there was this belief that sustainability is always more expensive, right? It's a trade off between our wealth to our well being. And that book basically just says, now that's just not true, right? If you do it right, actually, things improved dramatically in all directions, including for economics and for social welfare. And the more I'm in this space, the more you know, we find it's true, right?

Like nowadays, electric cars are cheaper over their lifetime and conventional renewables are cheaper than fossil fuels in almost every place in the world. And so, this is what kind of excites me and which has brought me along over the years. It's like, well, the decade now. And yeah, so it was always in sustainability that I worked. And I think it's a great, great path now, right, and a great journey, because it's really accelerating all around, but you start looking.

Katherine Ann Byam  5:16  

Yeah, I don't know, if it's accelerating, you know, but it is definitely several years you worked with EY in sustainability, you know, what a thing.

What is the role of reporting to improve the whole corporate sustainability performance in your view?

Tilmann Vahle  5:31  

And so it was kind of two sided. For one, I think it's important to, you know, it kept coming back to this adage, that you what you can't measure you can't manage. I mean, that's the foundation that, of course, you need data, you need the transparency about what happens in industry, what happens in companies actions. And so corporate reporting on ESG topics is super important, like reporting on their financial matters is super important. So like, you know, you can invest into them and have transparency in and can make investment decisions the same for all sustainability topics.

And equally, like the data that you see, or the info that you get from corporates, in the sustainability reports, for example, they, we need to be looking out carefully for what's audited, and what is driving, I think that's, for me, the key takeaway from my time at EY auditing is so crucial. So you can trust the data that you get, right. At the same time, the ESG reports, you know, they have they came from ESG papers from a marketing. And so they aren't a reflection of the strategy of the company, right? So we need to also like, be careful on how to interpret them, and exactly is what you read is what you get.

But it doesn't change the impact of the company fundamentally, right? So there's a limit to what you get out of it. And it doesn't reflect the relative size of the impact to the problem, right? Like, if X amount of co2 is emitted by a company, what does that mean? It doesn't give you a rating, like a framing of it. And so what you need to do is using the data you need to go read and requesting the strategies and the business models fundamentally, like an oil company can never be fully sustainable, like, inherently. And so going back and going to the fundamentals goes way beyond reporting.

And that's where I'm so excited to work at systemic where, you know, we use reporting, but we go through and beyond it, to help these companies improve more and more fundamentally.

Katherine Ann Byam  7:31  

So you also worked for Volkswagen, can you share your thoughts and how that company has recovered from the diesel scandal and how it performs now, in terms of facing climate targets?

Tilmann Vahle  7:43  

Yeah, when I was at Fox learn, and it was in 2012, and 14 for say, one and a half years or so it was an interesting timing, because it was around the time of the IPO of Tesla. And back in the day, when I talked about Tesla and electric mobility, even with a relatively senior management, it was all Miami, they refurbish these, you know, small convertibles, but know that you could never scale.

This is not for volume, you know, who cares, basically. And I mean, of course, many people had realised that it's fundamentally luminous to where to go, but they didn't see a path for volume manufacture for autos, to actually go there. And so this has changed. So fundamentally, and so the diesel crisis in 2015, I think, was a catalytic event in a way, right, because for one focus on was was sentence in the US, for example, to invest heavily into electric charging infrastructure, which is now coming back as a boon to them, where they're rolling out electric cars, right, because now there's charges where you can actually use them. And so, for one, I think it's helped tilt the perspective and also, of course, unveil the corruption that had happened.

Yeah. And I mean, I'm, I don't want to talk more about that. I mean, it's all in the press and all that. But what's the fact is that folks that are in right now are the largest investor in electric mobility globally. It's like, I think half or something of all the investments that go it's like way beyond 100 billion euros that invest in electric and smart mobility. And so that's a huge, huge drive. And so after Tesla, they're probably runner up in that transition, and of course, being this huge, huge corporation, they have a huge leverage, also, right.

And so they're that strategy, I think right now is probably the most ambitious in the entire Old automotive industry, which is very plausible. It's going to be a hard one, but I think it's quite amazing what they do, and they have a very good comprehensive view. And so it's, it's good to see that, you know, even large incumbent companies can turn around and become really frontrunners in these kinds of talks.

Katherine Ann Byam  9:52  

Yeah, no, that's a positive story and I think I had not realised how big they were in that space at this moment. So thank you for sharing that. Sustainability by nature is complex. And there are many angles to examine before we can read something as sustainable. And for example, there has been a report showing that shared Micro Mobility solutions are not nearly as sustainable as we think. So can you share why that is? And what can we do?

Tilmann Vahle  10:19  

Yeah, that is a tricky topic, right? I mean, on the one hand, I'm, I'm all for moving away from like, a pure car based mobility system. I mean, it's quite well known, right? That cars have been, I mean, combustion cars particularly have a terrible environmental footprint, not only in the co2, right, I mean, also just a really, waste of space in a crowded city, right? And you move around like several tonnes of material to generally just move one person on average. And that's it.

I mean, we're gonna always use cars to an extent, right, and so electrifying, and I think that's to start off with, like, moving to electric cars is so so important. It must happen very, very fast. Yeah, they're a lot better and the only decarbonization option really on in the mobility system that we have. So that said, like, for cities, cars aren't really in most cities, not that not really the optimal solution, right. And so how to, to have an alternative is, of course, other modes of transport, like the so-called modal shift, moving away from cars to other modes.

And public transport is something that is very institutional and takes a long time to build, to operate, it also tends to have to be subsidised. And, and so there's always going to be gaps that can't be filled with conventional traditional public transit. And so there is this hope that micro mobility, like the scooters, and scooter, shares, and rentals can fill that gap. And so therefore, help people move away from cars to other modes, yeah, and get around cities without that. And so that's great.

The challenges empirically, that's not really what happens. But these scooters and micro mobility options, they tend to be used by people that don't have a car anyway, and would have taken the tram or something. And so it's not really shifting, yeah, it's just changing from a normal car mode to another mode. And that becomes problematic, because these micro scooters, I mean, they've not been around for variables. And they don't, you know, they're not perfect products. Yeah, so they don't last very long.

And I think one data point that I read from one of the large consultancies was that these kick scooters last on average two to three months. And so that's two months, and then you scrap them. And so you have a few kilometres that you take, and then you scrap them. And so that's a lot of battery materials, a lot of steel that you just like, they don't have a lot of use for a long time. And so all that footprint that you had in production, is just wasted after a very short time.

So that is bad. Secondly, to put them in a city, you know, they offer their suppliers and need to drive around and basically relocate, right, and sometimes you see them with a van coming, picking them up and charging them and putting them back out. And these vans around diesel, and you need quite a lot of these to drive around. And so right now, because they are not electrified, there's actually a massive co2 footprint attached to these just from making the system work. And so it's gonna take a while until they improve and actually become a sustainable quote-unquote, mobility option.

Katherine Ann Byam  13:24  

I want to challenge you and something, please. You said that we got to use cars, we have to use guys that have to move to electric cars. But do we really need cars?

Tilmann Vahle  13:37  

Very good. depends on the location where you're at. Right? Right now 70% of people in Europe live in cities. If you've tried to look at the definition of a city, it's very tricky, like what constitutes a city? Because it's basically always just a matter of local demarcation. Yeah, like what is the city boundary, there's, there's, like a city can just draw a boundary wherever they want, you know, historically.

And so that could be that, you know, a city contains regions where there's really just, you know, the odd dispersed house somewhere where it's really far distances, where you don't have a Buddhist connection. We don't have a tram, let alone a metro. Were really other options. But individual mobility doesn't work. Yeah. And then of course, if you have to say, I want to live in the city flat and generally bike everywhere, but if I need to go to IKEA, whatever, and buy a bookshelf, you know, I do need a car.

I can't put it on my bike. So there will have to be cars. Of course, we will have citizen urban centres, particularly right now. Our use of cars in the western world is obscene and like providing mobility in other parts of the world, like say, India or capital cities and an African in many African countries would just not be feasible. The amount of people putting them in cars like you would probably grow the city tenfold. So that wouldn't work. So yeah, we can use a lot of fewer cars in many, many locations.

And the great thing is that the EU has just passed a legislative package, where they will ask the top 450 cities in the EU to create sustainable urban mobility plans. So basically plans how they can improve their mobility. So everybody will have to reflect Okay, country, you know, improve road infrastructure, bike infrastructure, trams, and Reno improves the options to move away.

That said, we will still have cars all over the place, ultimately for in the long run. So yeah, electrification is priority number one, because you know, what happens now, but ultimately, it's, you know, think President Obama said, former President Obama is like, you know, isn't all of the above options like, yeah, we need to do everything at the same time. So that's not an either or.

Katherine Ann Byam  15:55  

So I interviewed Yanis production IQ earlier in this podcast, and one of the things he was talking about is that the minute you purchase a car, you have already spent, I don't know, roughly two thirds of the carbon outlay, just by purchasing it, because of the resources it takes to make it I know, electric cars will be slightly different, because they probably made in electric factories. So it's a little bit less in terms of the carbon way, but it's still extraction of resources.

 And that's still a problem. I guess why I'm pushing this is that it's really about, we should be embracing what's happened with the pandemic, and really encouraging less people going to work, which is already creating big savings and teams. I mean, I've used my car probably, I don't know, 12 times for the year 2021?

I don't know, it's not. Right. And I think that there's a real argument here for us to make our next transition. One that is, you know, really using more public transport, it could include things like Ubers, right, because they're just as efficient or, you know, other providers, it's just as efficient as having your own car, because you get them within two minutes, they take you where you want to go, you potentially have the entire coffee yourself. And it's, it's a solution, that means that the car isn't parked up, you know, just sitting around waiting for you. Right, which is one of the biggest problems that we have. So that's why I'm pushing it. I mean, what are your thoughts?

Tilmann Vahle  17:24  

Um, yes, no, I work closely with Ganesh and all behind the analyses and messages of the UN International resource panel, right, like half of global co2 emissions come from extraction and manufacturing of materials, and 90% of the biodiversity impacts, it's like immensely important that we lower our resource consumption, right. Doesn't matter if we decarbonize or not, we need to go down with our consumption.

So yeah, 100% and there's also a great opportunity in reducing our travel through I mean, you know, we're on a what is it zoom call now. And that means that the work world has changed fundamentally and permanently, because three years ago, barely a company was using Zoom, and all these hassles, who was allowed to use what and all that, and that's changed, and it's here for good. And so we don't need to travel quite as much anymore, we won't have to fly to work with clients so much anymore. And I mean, systemic has been operating virtually for, for the pandemic, of course, as so many have, and it's been going great.

We do need more people to contact, right. I mean, mentally, like for mental well being. And that's a huge, huge challenge everybody's having. And so we will have to see each other a little bit more right, again, but of course, it's a good change to travel less.

That said, there's these fun rebounds, like, well, then we're all sitting at home, right? And so basically, in the long run, We'll all meet in another room. Additionally, in our flats we have a home office, right? And then you have kids, maybe and your partner's also working.

So you need larger flats. So how do you do that? And then, like, is it really more sustainable, like generally looking at needing to be somewhere you need to heat your place and you have lighting and eating and I don't know, for myself, my heating bill has gone up by a third, just because I'm so much at home. And so I don't know whether that is in the long run really more sustainable that you know, it's going to have to be analysed. But that said, it's great to have better utilisation of spaces and have officers on our vehicles and we definitely need to go there. 

Katherine Ann Byam  19:32  

Yeah, I mean, I mean, what we can do is instead of working wherever your offices you go down to the neighbourhood office that's now weekend and you use that as a co-working space but I'm gonna let you off the hook on this one I know a lot more analysis than we have time to do on this podcast but

Tilmann Vahle  19:48  

but I love by that point let me just jump in what I love that idea Katherine like the decentralised you know, co working spaces. And we have a bunch of colleagues that do this. You know that that works in And then permanently and you know, we just meet occasionally. It's great to decentralise it that way. Yeah, very good.

Katherine Ann Byam  20:05  

It's a great solution that I think we need to be thinking more broadly about. But as you say, You guys are the ones doing the analytics. So looking forward to hearing your summaries, what are the current projects you're working on? And what impact are they likely to have on decarbonisation? This year? 2022?

Tilmann Vahle  20:22  

Yeah, so one of the large ones that we are currently developing and that will go live in April, hopefully, is the battery passport. That's something that the EU has put in regulation. Last year, that every battery every large battery, so not the, you know, the mobile phone batteries, but like stop storage batteries and car batteries that come onto the market starting 2026 We'll have to have a better passport, basically a little database, and that you could access online, that tells you that so the consumer but also b2b manufacturers and to government, what's the co2 footprint?

 Where's the material from? So if there is critical cobalt in it, for example, what share of it is recycled? what chemicals are in there, so you can recycle them better? What's the state of health of the battery? So you can use it for a second life application, for example, after it's not good enough for the car anymore? So very important information for both business and sustainability. And the thing is, it doesn't exist yet. And so the question is, which data in what form? How do you get it there?

 So there's a lot of questions that still need to be debated by industry and politics, technically, but also content wise. And so we've put together a consortium of like a dozen leading automotive companies, material companies and science institutes with the Fraunhofer Institute like top researchers, and the World Economic Forum to answer some of these questions and contribute to that.

That's one of the big projects that we're starting. But we're also working with an economic forum on a study on circular economy policy between the EU and China. That's going to come up mid-year and hopefully start a great discussion. And working with a bunch of corporates also on Yeah, taking their perspective on living in that future urban mobility world and improving the full lifecycle impact.

So it's going to be a very, very, very exciting year and wait, yeah, we're growing very fast. We're doubling our team this year. So looking forward to applications as well, we're looking for colleagues.

Katherine Ann Byam  22:20  

Right. I'm going to talk to you about that as soon as we finish this. So what are your thoughts on how the battery materials and rare crisis can be resolved? Because I think that this is the growing concern.

Tilmann Vahle  22:33  

Yeah. No, and thanks for pointing that out. Right. Because it is definitely and to be honest, it's a matter that isn't only relevant to electric cars but to the whole decarbonisation well pathway overall, right. I mean, if you move from coal power plants to distributed solar, for example, we need a lot more IT infrastructure, a lot more electric motors and a lot more chips everywhere.

And so that's where the wires come in. Right? And just for the foundations that it's often misconceived that electric cars have reversed and the batteries have reversed and it's not really the case like rare earth are in electronics and in electric motors. Yeah. And so they're, like in very small amounts, you have them in very crucial batteries. You have cobalt, nickel, lithium, manganese sometimes depending on the chemistry. And none of these is rare. So like also chemically part of the rare earth group but they're also not chemically rare.

The challenge is that they have sustainability issues. And they're not there's not enough around right now. No, cobalt, infamously comes a lot from Congo and child lemons human rights concerns, lithium comes partly from southern America with concerns about water use. And nickel is really expanding. For example, in Indonesia, where there are some impacts on or dramatic impacts on rainforest and oceans. And so that needs to be fixed.

Thing is, right now we like what we're looking at right now. The batteries right now. They're basically what engines were, like 80 90 100 years ago. Yeah, so very primitive, if you will, and right now the innovation is oh, so fast that every like three months, there's new announcements of new chemicals, new new ways of manufacturing, and that we need less and less material to get the same performance.

And, they're getting less and less harmful. And so for example, Tesla's announced that for the big things like the module, model, three, the volume model, they're moving to lithium iron phosphate batteries altogether. And that's important because we talk about cobalt and nickel as the key problem materials. Well, you know, Tesla's already moving away from them, half of the batteries in the cars in China this year already, like 2021.

We already have lithium iron phosphate batteries that don't have any cobalt and nickel in them. So that's a challenge that is real, but it's also that for one limited cost, and for another, not going to be a problem for cars, predominantly in the long run. Yeah, and so it shouldn't be something that blocks this innovation. It's something that we should manage as well as we can. But in the medium term, you know, clean that up and limit and recycle everything that we have. But it's not a fundamental challenge to electrifying cars. So that's very important to keep in mind.

Katherine Ann Byam  25:19  

For someone interested in a career in sustainability, what advice would you give them?

Tilmann Vahle  25:23  

That is a great question. And to be honest, as I've looked back many times, I am now looking forward. Also, what could I do? What can I do? What can I apply myself to, but the thing is, at least since 2018, with the new IPCC report on the 1.5 degree goal, I think everybody's realised that climate change is real, it's happening, we need to act super fast. I also mentioned, technology has changed so much, like you know, solar is now cheaper than fossil electric cars basically, in two, three years time.

If you can't buy an electric car, that's your problem. But you want to buy one right this way here. So now it's shifted right? In the past, it was a lot about convincing people that we need to act, then it was a lot about okay, convincing people that it's possible to act now. It's really a question of okay, getting it done. And so if you want to move into sustainability, well, yeah, definitely educate, take a systems perspective, and you know, ask twice, like, what rebound effects? What's the complex value chain behind things? And who really has the power to change the system?

Fundamentally, is it me eating a little bit less meat, or, or using a bit less plastic bags? Or is it really, you know, the heating system where I don't have an impact on -  Half of our emissions are basically from heating and lighting our homes. So whether you use a plastic bag or not, in the grand scheme of things, is really not important. Sorry to say. So I like learning to look through what are really the big challenges.

And then actually, you know, learn the skills that you need to grow businesses to legislate to contact and reach out to people to communicate, like basically business skills, normal still like to change stuff. You need to have the skills to change stuff not to be smart on sustainability. So I think that that's changed. Yeah. And so going to strategic consultancy, to bank to invest into politics, that's all opportunities to make a change, wherever in which whatever position you are.

Katherine Ann Byam  27:26 

And that's great. How can my listeners get involved and support your work as well as possibly join systemic?

Tilmann Vahle  27:33  

Yeah, I mean, we're, our goal this year is to grow by 50%, from 300 to over 400. And in all our locations, that's London, Amsterdam, Paris, Brussels, Jakarta, Jo Paulo, Paris. So yeah, please do apply, reach out, I mean, through LinkedIn, right, we are easy to find. I'm looking at our website, I think people will find a lot of interesting projects. So that's systemic dot earth and have a look there.

Katherine Ann Byam  28:06  

Perfect. Thank you so much for joining the show today.

062 The Sustainability Puzzle

About this Episode

Hello, everyone, and welcome to today's
show. This is the sustainability puzzle. And my guest is Alice Schmidt.
We are streaming live for the courageous career club and on LinkedIn. We're also recording this for my podcast where Ideas Launch, the podcast for the sustainable innovator.  Thank you all for joining us.

And we're gonna get into the session. So let me introduce a bit about Alice.

Alice is an advisor and an advocate and an author on global sustainability and social transformation, and she's passionate about gathering, collating and distilling deep insights on global systemic challenges and solutions regarding environmental and economic sustainability, as well as social justice.

So she has a big agenda. And in her latest book, The sustainability puzzle, which she co authored, together with her friend, Claudia Winkler, she discusses how systems thinking circularity and climate action, as well as social transformation can improve health, wealth and wellbeing for all.

Subscribe to Where Ideas Launch

Episode Transcript

Katherine Ann Byam  0:03  

 This is a big challenge. We've, we've now just come out of cop 26. And we've had all of these challenges going back and forth on those countries that are struggling. And it's really interesting what you're doing. So Alice, welcome. Welcome to the show.

Alice Schmidt  2:01  

Well, thank you. Hi, Katherine. Really good to speak to you today.

Katherine Ann Byam  2:04  

I wanted to start by sort of acknowledging the breadth and depth of your experiences across cultures and across geographies. And having started your academic life in business and Communication Studies, what first prompted your interest in social impact work? First of all, of all the things that you're interested in?

Alice Schmidt  2:23 

Yeah, so a great question, let me go really far back, because it's actually affected the first, you know, children always asked what they want to become right when they grew up. And for me, when I said, I want to become an author, and I want to write a book to save the world. And I'm clearly not saying I've reached it, but just as this is to demonstrate that this has been within me. So you know, as a child, I found clubs to save the environment and to protect the environment and to help sort of socially disadvantaged people. And, um, you know, I was, I was part of the scouts movement. And I do think now with hindsight, that this kind of influenced my values. And my thinking is sort of, you know, this cherishing nature and all of that and taking responsibility for your actions.

But professionally, it came when I was working with Coca Cola and also Henkel, another fast moving consumer goods company, at the time, based in Vienna, but focusing on the Central and Eastern European markets. And it was a long time ago, that was about 20 years ago, I just came out of University and finished my business degree. And I remember thinking when I worked at Coke, no kind of dream for a lot of young marketers thinking, do I really want to focus on helping one company sell more of an unhealthy, carbonated soft drink? or would I rather use his energy, my skills to sell something that you know, is actually perhaps, you know, saving the wild, I had a similar experience with the launch of a dishwasher, dishwashing detergent in Central Eastern Europe, which at the time was quite poor, and a lot of people didn't even have enough money to buy, you know, sort of detergent at all right? They had to make soap by themselves.

And that really then drove me into this direction of social impact, sustainable development, initially, more on the social side, and then bringing back the business sort of link as well as engaging with climate issues because I really think it's this bigger picture for me sustainability is really people planet and profits.

Katherine Ann Byam  4:35  

Absolutely. Absolutely. And I think my experiences in life have taken me on a quite similar journey for two years so I worked in internal audit for a huge multinational in a controversial industry. And I had the opportunity to travel the world as well and experience deeply and firsthand the plight of many societies of many communities, and how innovative they are. Coming up with solutions that are frugal. And, you know, I, I've also seen how the crisis of geopolitics has sort of ravaged the environment. Right? And how has that work across cultures and disciplines benefited your work on understanding and, and sort of tackling complex and integrated system challenges? 

Alice Schmidt  5:23  

Yeah so I mean, I have indeed written in about 30 countries on four different continents. And that was very much my choice. At the time, there wasn't this trade off that we discussed earlier about climate at least, you know, your carbon footprint in terms of flying around so that I neglected at the time blissfully, I was blissfully ignorant of it. And, I was clearly driven by this insert that the more I see, the more I understand, but also the more I know what I don't know. Yeah. And, I quickly recognise that solutions or sort of activities, actions, programmes projects that seem like solutions can actually make things much worse, if they're not sort of embedded in a bigger picture kind of frame just to give an example.

And students because I use this because students of mine brought this up yesterday. And you know, the famous brands toms, right, the shoes, right? That don't donate a pair for each pair that you buy. And, and if you sort of just parachute into a developing country, and you see oh, there's a few children without shoes, you might think, Okay, I have a solution, right. But then if you see him out and somehow look a bit, sort of deeper and more broad, broadly, you find that actually, it's not the shoes, perhaps at MIT. And actually, if you give away shoes, you might destroy local industry, right? And this is not to bash Tom's as a company. To their credit, they actually think about these issues and do research to understand the impact.

But I mentioned this also, because we see, you know, a lot of talk about electric mobility at the moment. But as long as this electricity, the power that you power your car with does not come from renewable sources, it's not particularly sustainable. And that let you know, leaving aside all the issues around batteries, etc. And so yes, this, this, this, for me, also, on a personal level, these trips to a lot of developing countries, other cultures more broadly, have always been very eye opening, very humbling. And they've been very, extremely useful reminders of how lucky I am, how privileged I am. And have been there for allowing me to really focus on what matters, rather than you know, winching about this and whining about that. So absolutely important in this experience. Yeah.

Katherine Ann Byam  7:58  

Yeah, it's interesting, you touched on something that I'd love to explore a little bit, if you don't mean. So it's, it's around this topic of transitioning to electric cars. There's so much baggage behind this transition for me, because at the moment, I'm driving a car that's not fit for the future. I know this. But at the same time, I don't want to commit another act of criminal injustice against the climate, by purchasing a car that's going to extract more materials, rather than taking my existing car and converting it. Because if I were to sell my car, someone else is going to drive it. So I haven't solved the problem, I have not solved the problem of climate change by selling my car. So if I scrap my car and waste the asset, right, so for me, I wish the solution that people would be coming up with and I do hope to hear from BMW soon about this. But I want them to retrofit my old car. You know, and I guess the question is, how do we tackle that?

Alice Schmidt  9:00  

So I mean, I think you're touching on a lot of different things. And some go into direction of circularity. And actually, if you resold your car to someone who would otherwise buy a new one, right? Yeah, that would help given that you as long as you didn't buy a new car, and perhaps went into car sharing, right? Because I think it's not so much about the car, it's about mobility, again, sort of this need to zoom out right, but we also stress in the book a lot. And look at this bigger picture. And in this case, it's mobility and seeing how we can create Win win wins, right for ourselves, for the planet. So for the environment, the natural environment, and for people and cars are a great example because of course they pollute right? Some people love them and think of them as very beautiful but you know, having tons of cars sitting on our sidewalks on our roads, right?

Instead of having greenery and forests in our urban environments is Not particularly appealing, we've just become so used to it that we don't question this. And it's, of course, what I think is interesting in terms of the electric mobility movement is that, by and large, this is something where we have policy and agreement. It's become a political force. Yeah. So it's not one of these things. And so giving people an alternative, still being able to sort of own a car, if they must, is already an achievement, I think, yeah, but it definitely does matter where this comes from for your car personally. And I mean, yeah, if you could go without a car or car sharing, I think that would be a deal. If your car is sort of not too old, it might actually be much more economical, and also better for the environment to continue driving it right for a while, if it's too old, I have this super old car. And I'm told actually, that it's, it would be better to go electric to actually, you know, sell it, but driving. For me, it's really bad. Do I need this car? And I hope the answer is no.

Katherine Ann Byam  11:12  

Yeah, no, I think that's a good way to reflect on it. But I do still want the manufacturers of these vehicles that are more polluting, to take some sort of circular action to sort of help us write help. I would much prefer to have my car retrofitted and pay for that, than to extract materials again.

Alice Schmidt  11:32  

Yeah. And that's true. I mean, with cars at the moment, you can't really retrofit right with buildings, you can do that in an economical way. Yeah. But of course, some of the big car firms like BMW are actually also jumping on the sharing bandwagon. Yeah. And I think this is perhaps their biggest contribution they can make.

Katherine Ann Byam  11:50  

Yeah, so I'm going to take a quick pivot to the comments and just flash them through. So we have some good wishes from Sean. Thank you very much, Sean. And we have Isabel saying hello to both of us. Hi, Great that you joined us. And Mary Lou is asking me a question. So I'm facing the same mobility dilemma. Katherine, I sold my car and for now, I am managing without, but at some point in the future, I may need a new one. And I'm not convinced about electric vehicles yet.

Alice Schmidt  12:20  

Go for car sharing. That would be my current really going without occurring.

Katherine Ann Byam  12:26  

Right. Yeah, exactly. And, you know,

Alice Schmidt  12:29  

also a trend we're seeing I mean, cities and mayors around the world. But that's not the end of the world. But some cities are really going this direction. And it's also about making cities more pleasant, more sustainable, more livable for the 50%. Right of the world population that's already living in them.

Katherine Ann Byam  12:48  

Yes, exactly. And, look, I think there's so many important things that I think people need a space to kind of ask questions as well, because as your book indicates, it's a puzzle and it's complex. And we need support, we need support to make the right decisions, instead of everyone going off doing what they think is best, which might actually be causing more problems. Right. So it's an interesting debate for sure. Yeah, so let's, let's talk.

Alice Schmidt  13:16  

A lot of there's a lot of well-intentioned projects and companies out there and players out there, but you know, well, meaning well-intentioned doesn't always mean good.

Katherine Ann Byam  13:28  

Yeah, exactly. Exactly. So let's move to a few concepts in your book that I think listeners will find fascinating. So I wanted to start with this happiness beyond GDP. And I've been following what's happening in the Greek reshuffle and the Greek pause as some, some people call it, post-COVID. And there's definitely a heightened level of interest for many, for many people to design more holistic, healthy lives and get more from their careers, more purpose from their careers. So tell us about your thoughts on how to facilitate change in the direction of happiness beyond GDP.

Alice Schmidt  14:06  

Yeah, so first of all, it's true that people care and they don't want to go back to life before COVID. Right. I mean, there were quite a lot of studies on this last year, I think about 80%. So it's zero, they said that they actually wanted to go back to a more sort of sustainable life. Right. And I think this is partly a reflection of the pandemic, having forced us to think about what makes us happy. What does wellbeing mean for us as individuals, but also what does progress mean for us as societies as countries, right, and there have been, I mean, this is not completely new, and there have been a lot of very sort of big, well recognised institutions, global institutions, but also individual mayors again, yes, city governments trying to shape the target setting and policies in a way that don't just maximise the GDP, right?

Because the GDP has been the main indicator that is used around the world, to sort of indicating progress. Yeah, that's the measure we have. I mean, it doesn't actually measure progress. It measures economic output, right. And it misses all the voluntary work that our societies depend on. And it goes up when we see disasters, floods, Harrigan forest fires, right. So it's not a measure of progress. And even you know, the guy, that cannot be Simon Kuznets, who invented it, almost 100 years ago, basically said, This is not about measuring societal progress, but somehow our mindsets are so adapted to this thinking that, that it's very hard for us to move up. Having said that, a lot is happening.

 And I think a lot of people start to, to value what matters to appreciate what matters companies and NGOs, but particularly as of companies are still are starting to track the social impact, the environmental footprint, and what sort of the newest, and to me, also most exciting trend is that we're getting towards a system, we're tiptoeing towards a system, where we account for costs, as they truly are, which means we valuing the services the ecosystem is providing for us, right through wood, or food or natural medicine, fibres, whatever. But also, services like climate regulation, or water filtration, maybe we never think about this, but I'm not saying I'm definitely not saying give these things a price. But I'm saying let's value these things. Let's value clean air, air pollution kills 20,000 people a day.

That's a sort of a tragedy, right for individuals, for families, for societies, but it also comes with an economic cost. Yeah. And I think it's really important that we start talking about these costs more and more. And because that's just how we think right in our world, we think in monetary terms, and that's why I think translating negative impacts into what I call the cost of unsustainability is really helpful. But of course, we don't want to communicate negatively, right? In fact, a book is very much about optimism, and about picking people up where they are, yeah. Not really killing anyone, because they have ignored sustainability. You know, until recently, I'm not laughing at any questions, obviously, but also taking seriously the efforts they are making and trying to work with them to see how they can make more efforts.

How could they perhaps, you know, increase their impact. And, and and, yeah, so I think that this is partly also for people to really appreciate what they have and what they haven't thought about before such as clean air. Right? I mean, our mental health and again, this is measurable, our measurable, our mental health improves significantly, if we live in areas where there are sufficient trees. Yeah, it's the same trees that sort of decrease this famous heat island effect, and make people die from excessive heat, right. But it's also a mental health benefit. That's really important, particularly now in these times, right when a lot of people are suffering through the pandemic. Yeah, no,

Katherine Ann Byam  18:55  

That's absolutely true. And I wanted to touch on something and I didn't tell you about this before, but we'll talk about it anyway. Which is this idea of donut economics. So I recently discovered Kate Raworths' work. I hadn't heard about it before. Remarkably, even though I've been in this space for a while, and there's a lot of I'm following her Twitter account where you know, she's building communities around trying to bring these ideas of living within the doughnut to life if you want to perhaps talk a bit about that maybe explain the concept to my listeners as well and talk about your perspective on how we can do that.

Alice Schmidt  19:32  

Yeah, so I fully agree can she has done great work and I think it's encouraging that her book is also really, and her ideas and her thinking have really sort of gathered very widespread attention. So the doughnut essentially tries to reconcile both the environmental and to social, the global social injustice, aspects of sustainability. Yeah, bookkeeping within the donut hole, we all know what a donut looks like.

And make sure that we don't overstretch our sort of planet services. Yeah, then that is the natural environment, but we still provide a sufficient standard of living for all people in the world, right? I mean, that's also why we wait for us, this is really important, because we also talk about our book where the subtitle is health, wealth and wellbeing for all. I think this is so important, right? People like you, and me, you've been to a lot of places to see this, these enormous disparities, right, even within one country within one city.

Right. And I think we'll understand this, but not everyone has had the chance to understand this. And so. And I, what I like about the donut economics is that it's also a concept that's now being used by governments, including city governments. I don't know, for some reason we keep coming back to urbanism and cities today, and like Berlin, or Amsterdam, right, that are really trying to use this sort of framework, because it resonates with people. Yeah.

Katherine Ann Byam  21:10  

Yeah. It is easier to grasp for sure.

Alice Schmidt  21:14  

And so just one thing that comes to mind here, is this, this idea, or this insight, that there are only developing countries out there that are not any developed countries that are economically developed countries, but there aren't any countries that are where we need to be environmentally in terms of environmental protection. Yeah. Or providing a sort of social justice to everyone.

Yeah. And, I think David Attenborough also said this in his famous cop speech recently, which was brilliant, by the way, so I recommend everyone out there to watch it for seven minutes, definitely worth your time. And it's also about sort of, you know, learning from that inverted commas developing world, right, because a lot of what people in these places do is exactly what we need today. Think about circularity, you know, you repair things, sharing things, not throwing them away. And that to come full circle with Acade worth, she also said, on a finite planet, there is no way you can throw things away. And that's another one I love.

Katherine Ann Byam  22:34  

Yes, absolutely. Now, yes. All right. And I think the more that we have examples of countries embracing this, you're right, it's going to set a new trend as to what it really means to be an evolved society. And of course, we have other competing things that are coming into the sort of forefront now with digital transformation. And, you know, Facebook and Electabuzz, I'm not going to ask you to answer questions about that, don't worry, but it's one of the things that is now part of the whole complexity of how we redesign better for the future.

So I want to pivot now to cop 26. And there have been some commitments made around me being around reforestation, etc. But there have also been some sort of COP outs, so to speak, forgive the pun. But you know, talking about reducing coal, as opposed to eliminating the use of coal, and things like that. So I guess which agreements have been the most encouraging for you? And how has caught 26 done enough, in your view, to solve the problems that we face?

Alice Schmidt  23:48  

Yeah, so um, I guess I won't give you the short or the long answer, but something in the middle. I mean, one thing I think we need to consider is that before the cup after the cup is before the cup, yes, there's going to be another one next year, and it's going to be in Africa, which is great. I think Egypt if I'm not mistaken. And I do think that it has served to really get a lot of global attention. I don't think that's just me, you know, because I'm in my little bit saving the world kind of bubble. I do think there's been more attention to the cop and awareness, pressure also from civil society, I think is key.

Yeah. What it hasn't done is really come out with this new big agreement that everybody subscribed to. Yeah, there's a text, a communique that came out at the end and which included some very encouraging text around phasing out fossil fuels. There was this debate about phasing out  fossil fuels. And there was also the, the, what was it there? Yeah, phasing out fossil fuels. And then the coal that you mentioned specifically, right? Because coal is the worst, the most polluting fossil fuel. And but what we've seen from a governance perspective is little blocks emerging, right?

So a few countries, you know, going for methane are now this another few countries for forest, etc. And I don't know if this is a good thing or a bad thing, right? Because it could become very easy now for countries to say, well, actually, you know, China didn't sign up. So why would I need to? And that brings me Of course, another really important point. I mean, I think one of the face savers, if that's the word for COP, was this quiet last minute agreement between or at least Joint Declaration between America the United States and China? Yes. Because in the end, it will come down to that. Right. Are they going to work together? And so I think there's a, you know, there are some promising signs. But, yeah, we're not there yet.

 And finally, perhaps, because one of the celebrated achievements, I think, was Brazil, among others agreeing to help defer deforestation relatively soon. And that is bread and butter, it's not going to help us that much in terms of climate change. Right. I mean, forests are important for biodiversity, for livelihoods for you know, we talked about trees already before trees in urban areas anyway. And I think, and, yeah, so we need to, we need to take everything that's come out of the cup with a pinch of salt.

 And keep in mind that these are just commitments. Yeah. So this is not implemented yet, and the most beautiful policy is worth nothing if it's not implemented, actually. Yeah, so just to finish, I think we might actually need to focus more. And we see this as a trend right to resort to climate litigation. And that brings me back to Brazil and now, right, there's some action against him. And companies are starting to fear that and I think this is an act for which my activist heart tells me this is a really good sign as well.

Katherine Ann Byam  27:24  

Yeah, yeah. Now this is great. So I want to close with the final question, which is, actions we can all take. So what are the sort of first steps that you would recommend people take at the household level? I mean, before we actually went live, we had a conversation about, about the whole topic of travel.

So I'm gonna let you take the floor in this one, because, for me, particularly travel is one of the one I would call the guilty pleasures that I'd love to still have. I haven't travelled since the pandemic began. But it's something that for me has transformed my understanding of complexity. It's transformed my approach to the world, and therefore it has been hugely beneficial. At the same time, it's wrapped up in a huge carbon footprint bet.

Alice Schmidt  28:11  

I hear you, I find that really hard as well, myself. I try to be principled, but I don't think I will always be able to write. And, I mean, again, travelling with mobility personally, I love long train ride, so I don't mind going between Ghana and Brussels for 13 hours. You know, I like how this soul travels with me and my soul travels with me. And I'm not sort of parachuting into a new place. But of course, there aren't the trains that are a thing in itself in Europe, and there needs to be a much more improvement but do but still do take trains.

Yeah, I think a very important message is to use public transport. eat less meat or no meat, and insulate your home. Yeah, that's another sort of big lever lever. And particularly also buy only what you love. Yeah. Even if it's more expensive, invest money, invest in quality, buy something you really love, and you're gonna be wanting to repair in case it breaks and that you will want to refurbish and that you will want to perhaps trade against something else as a friend Sir.

 So this circularity I think is also really something can be with and I'd like to mention also that in the book, the sustainability pamphlet, we really we deliberately included sketch notes for each chapter there which summarise the main sort of the main puzzle piece like circularity, climate action, which we're not talking about. And in each of these sort of puzzle pieces, we tell people what they can do as individuals, what they can do, you know, as representatives, companies, and what they can do as governments because I think it's really important and it's also important to, for people to understand That no matter what they do, it can have an impact.

Yeah. And it's not just about what you buy and what you do and which services you access or consume. It's very much also about how you take others with you, right? Your friends, your peers, but also your colleagues influence you at an organisational level. Yeah. So lots you can do and I hope you find more inspiration in the book. I

Katherine Ann Byam  30:28  

I loved your tips, particularly about buying something that you really love, even if it's expensive, and making sure it's something that you want to repay. I think that's my main one. Huge takeaway. So thank you so much for joining me today, Alice. And thanks to all of you who've listened and do give us your comments and feedback. And do get a copy of the sustainability puzzle if you haven't already. Thanks so much for joining us today.

Alice Schmidt  30:51  

Wonderful, thank you so much, Catherine and to everyone else here and keep in touch, stay in touch, get in touch.

Katherine Ann Byam  30:58  

Absolutely. Season Four of where radius launch was brought to you today by Katherine Ann Byam business resilience and strategy consulting services. Catherine provides business assessments and strategic support to help guide your business toward a netzero future. Get in touch with Katherine Ann Byam on LinkedIn

060 Full Power - Energy Transition

060 Full Power - Energy Transition

About this Episode

Today, my guest is Mark Wheatley, head of channel sales, that full power utilities and energy consultancy
focused on helping SMEs reduce their energy costs, and begin their journey to net zero. Mark has been involved in the energy industry since 2014, and has led the development of full power future net zero service offerings.

Subscribe to Where Ideas Launch

Episode Transcript

Katherine Ann Byam  0:03  

 Mark, welcome to where it is lunch.

Marc Wheatley  1:05  

Katherine, thank you very much for having me. Great to be here.

Katherine Ann Byam  1:07  

Wonderful to have you is there seems to be an urgency building around net zero and actions to speed up or transition across the UK. What prompted this in your view.

Marc Wheatley  1:19  

So I think there's a number of things in play here. And, you know, I talked to my friends and colleagues about this topic quite often. And I was referred to as the David Attenborough effect. So you know, there have been a number of documentaries, put outs, or mainstream media on, you know, on TV that we're all consuming now. And it's really sad to hit home to the general public, what we're doing to the planet, and the fact that we need to take action and do our bit to preserve our future, essentially.

So I think that, you know, these documentaries, bringing it to the fore, in general public is really having an impact. So first of all, I would say that, and by the way, if you haven't already checked out the documentary breaking boundaries, I certainly would watch it. It's, it's quite scary. In addition to those severe global weather events, of course, there's been a lot of them happening over the last couple of years. I've actually got a couple of friends that live out in Australia, and they were caught up in the huge wildfires that happened just over 18 months ago.

So I think that's really starting to hit home as well, bringing it into sort of my domain within the energy sector. I think the advent of or development of technology within the energy sector is actually making the ability for us to make a change a lot, lot easier. So to give you an idea, the cost of solar energy generation has fallen by about 75% in the last 10 years. And for wind generation, it's fallen by about 25%. So that sort of old conversation of renewable energy costs too much that's disappearing. So I think we no longer have that excuse in certain areas. So that's forcing change as well. And then, of course, the report that was recently put out by the IPCC, I think that really hit home for a lot of people as to how we're warming the planet, much faster than we realise. And action is absolutely needed.

Katherine Ann Byam  3:14  

Yeah, absolutely. And I think these are really critical points. and wanted to kind of explore or what the UK government is doing to fuel the change for energy providers?

Marc Wheatley  3:25  

Yes. So I mean, first of all, we'll probably start with the energy white paper that was published late last year. So that's the government's sort of plan. That's them setting out what they plan to do within the energy industry over the next couple of decades. And there's some big commitments in there that the government has put out. So first of all, you know, they've committed to creating over 200,000 jobs in what they've called a greener economy. So and that's over the next decade. So that's to do with areas such as power generation, so you know, how we produce the electricity that we consume.

And hydrogen technology is a big, big topic, which I'll come into in a bit more detail in just a minute. And things like green retrofits, so looking at the old buildings that we live in, and that we use for work and retrofitting them to make them more energy efficient. And so yeah, lots of stuff in the energy white paper, also to do with, you know, electrifying transports, so changing public transport moving away from the ice vehicles in internal combustion engine vehicles, as they're known to electric vehicles, we started to see that happen across the country. 

But within all of this, the government also had to make sure that the cost of energy for consumers is kept as low as possible. So one of the things that they're focusing on is that they want to make it easier for consumers, be it commercial consumers or domestic consumers, to find the best deal available on the market and switch more effectively.

 And within the industry, we've seen off j making plans for this. So they're looking at forcing policy and regulation onto suppliers to allow customers to switch energy supplies a lot quicker. And that's the government's attempt and options to try and get around this concern that a switch to a renewable energy product is going to cost more. So there's sort of plans outlined within the white paper around that as well. Big, big plans into all commitments with regard to electricity generation. So the UK Government has committed that by 2050, electricity generation will be emission free. Now, that's a big, big task. 

Now, as you mentioned, at the beginning, I've been in the industry since 2014. And I remember when I first entered into the energy game, I was helping small business owners with their energy procurements. And I would say, most probably about 80-90% of the products that were being quoted by the energy suppliers were what I termed brown energy. So this is energy products from fossil fuels. And occasionally, back then, you know, a few years back, I'd be asked by a prospect or a client, you know, can we take a look at renewable products, you know, what's the price differential there, and there was a big price difference, you know, if you wanted a green or renewable energy products, you were paying a premium and quite a substantial one. Now, that has changed completely. So most of the energy suppliers that we work with, they quote electricity products from a renewable source of standard, so we no longer have to ask for it.

And there is no price difference between a brand energy product as I called it and a green energy product. So there's been a big, big shift. And whilst that is a big commitment from the UK Government to be, you know, to have electricity completely emission free by 2050. It is possible, especially with the investment in solar and wind generation. And yeah, I mean, to add on to that might continue without really continued investment, offshore wind generation is a big, big thing and the government is to set aside a lot of money for that. Also investment in financing options for nuclear energy.

You know, there's discussions with EDF at the moment to develop new nuclear power plants, which would generate a lot of power for the UK population. So in addition to that, some suppliers have been reacting already to some of these commitments. So to give you an example, SSE, one of the UK's biggest energy suppliers, sold off its domestic energy arm a couple of years ago to focus on renewable products. So SSE as a company, they saw the writing on the wall, they knew that this policy was coming in. And they made a move pretty early, and they are investing a lot of their time and money into renewable products and projects. So yeah, we're already seeing big moves by some of the big energy suppliers. In the UK.

Katherine Ann Byam  7:56  

I have two questions. One is around other sources. So I think there's still a lot of risk to people with nuclear and the management of nuclear plants, etc. and some of the other methods still create waste, right? So when we look into the whole scheme of things, curious about things like geothermal, and hydroelectric, like are these at all possible? Where we are?

Marc Wheatley  8:23  

Yeah, so it's an interesting topic, actually. Because when I talk to clients, I talk to prospects and stakeholders, I talk about green energy and renewable energy, and I see them as two different things. Now, the definitions are open to opinions. So people have different opinions on what they mean, that a renewable product or nubile energy products or source is not necessarily great for the environment. So you could argue that hydro power is a very clean source of electricity. But in order to create it, you have to build, you have to flood happy habitats and so on across the world. And that seems quite detrimental to the natural world. So there are opinions on that. Within the UK, I'll be completely honest, I'm not too sure of the scope of hydropower projects, very much the UK Government is focused on offshore winds. That's where they see the future of electricity generation coming from?

Katherine Ann Byam  9:19  

Yeah, no, it's interesting to see how all of this will shape up because I think that the biggest challenge that we face right now is that it's so complex, we've waited so long, that actually the decision making has become even more complex. It's not like we can go in small stages, we kind of have to rethink everything all at once. But when you want to rethink everything all at once you need everyone to be coordinated. And that doesn't necessarily work.

Marc Wheatley  9:43  

Yeah, absolutely. I mean, the net zero time put in place by the UK government are very, very challenging. You know, 2050 seems a long way off. It's not really and the 2030 interim target is actually the crucial one. Is this. The next Nine, what, eight and a half years now, that really is the crucial time. And there needs to be huge, huge changes in the way that we consume and produce electricity and gas, of course, which is going to be phased out in certain areas in the coming years.

Katherine Ann Byam  10:15  

Great. But tell me tell me a little bit about what full power is doing at the moment to help SMEs with better energy management because they think that, you know, this is something that where we've become more aware of we want to get our teeth into, but we don't necessarily know what's the best tap to take?

Marc Wheatley  10:32  

Yeah, absolutely. Our focus is on the SME space in the UK. So full power has been going since 1997. That's when the UK energy market began deregulation. And we've been completely focused on the SME space, because we feel it's those business owners that need advice. They're the ones that are busy running their businesses, trying to, you know, they wear many hats, right? an SME owner is the marketing manager, finance manager, the HR manager, everything else, so we're there to hold their hand and help them through the maze.

That is the UK energy market. And whilst at the moment UK legislation around net zero is only really focused on larger companies. So for example, sccr, the streamline energy comm reporting, legislation only impacts the larger companies, we are starting to see and hear the impacts of that flowing down the food chain, and affecting SMEs. So to give you an example, we work with a company that produces chicken feed of all things. Now, their product is supplied into a supply chain. And the products work their way up through these large companies. So household names like test guys, and so on, and so on.

Now, those large companies are bound by legislation, and they're being told to report on their carbon emissions. And they're going as far as reporting on their scope three emissions, which then looks to their supply chain. So these SMEs now are being asked by their customers, what are you doing about your carbon emissions? What action Are you taking, and of course, unfortunately, most SMEs are not overly sure they're doing at this point and not taking action. And in fact, a recent report suggested that only one in 10 SMEs actually have a carbon reporting plan. So they're actually focusing on their emissions, and even 22% of SMEs don't even understand the meaning of net zero. So there's a huge amount of work to be done.

And what we're trying to do is to educate SMEs about net zero and what it means, how it impacts them, how it impacts their stakeholders, and to get them started on their journey. Because it's a completely overwhelming area. as a small business owner. As I said, You're wearing many, many hats, this is a new hurdle that's been thrown at you and you've got to educate yourself about what it means and how it impacts you. So we're there to try and demystify all of that and make it much more simple.

 Okay, so as I said, SMEs can be affected by the net zero targets in many, many ways. So first of all, your customers as we've just touched on, maybe requiring you to take action. And if you're not going to take action, you may face the threat of losing customers. So that's immediately going to impact your bottom line and your revenue. So that and there's always this, there seems to be this assumption that to take action, and to reduce your carbon emissions, it's going to cost a business money, they're gonna have to invest to reduce their carbon emissions. Well, actually, if you don't take action, it's going to cost you a bit potentially in another way, you're going to lose revenue. So there's that there's also the

Marc Wheatley  13:52  

impact or pressure, sorry, pressure from your employees. So if you are a company that's trying to attract new talent, entering into the marketplace. The younger talent that's out there, leaving education going into the marketplace for work, there are a lot more attuned to sustainability topics and our impact on the environment. And I think it's fair to say that certain individuals will look at companies and what they're doing with regards to their carbon emissions and that strategy before they choose to work for a company.

So it's going to impact your ability to attract talents. And then finally, there's the topic of obtaining finance. So let's say you're a small business owner, you're looking to grow your company, perhaps invest in some machinery or some new, new resource. You go to the bank and you ask for a 30,000 pound loan.

The banking institutions are now asking small businesses what they're doing with regards to a carbon reporting plan for their emissions, but Before they offer financial products now, it's not necessarily at this stage stopping businesses from accessing those financial products, but it is impacting the rates they pay.

So if you can prove to your bank that you have an action plan you're reporting on your activities, chances are, you're going to get a more favourable rate on your business finance, which is having a big impact. And that's where we can help businesses through our carbon reporting platform start to report their carbon emissions through their activities. And what we suggest is we say, let's start with scope one and scope two emissions. Let's keep it quite simple to begin with. So for those listeners that aren't aware, scope, one, emissions, focus on your direct carbon emissions based on your direct activities.

So that includes, for example, your fleet of company vehicles if you have them. So how much carbon Am I emitting through my company travel, you've then got scope two emissions, which is essentially your energy consumption. So your carbon emissions related to your electricity and gas consumption, and how much of that is greatly affected by whether you want renewable products or not. S

o we say keep it simple. Start with scope one, scope two, and as you find your feet, then start to look into scope three, and through our carbon reporting platform, we make that process very, very easy. Now, Katherine, I wasn't sure if we've touched on this before, but there is a second stage, which is two stages, two extra stages to this process. So it's all very good, and we're recording your carbon emissions. But there is nothing stopping you as a small business owner from manipulating that data, and making it look as if you're doing something better than what you actually are.

That's a phrase we know is greenwashing. So what we encourage business owners to do is to then report their carbon data to a third party. Now, we work with an organisation called the future net zero standard. They are a third party audit embody, that takes the carbon data from the small business owner, once a year, or they sit and make sure that it's actually true and fair, so that there's no greenwashing going on. Now, we think that is one of those crucial stages in this because it just sort of justifies what you're doing as a small business, and it recognises your progress. So what the future zero standard does is, they reward you or recognise your carbon reduction through a series of accreditations.

 And you can take that accreditation, and then use that in your marketing or PR work and tell your stakeholders that you're taking action and you're making progress. So we think that's a very crucial step in the process. And then finally, so you've reported your carbon emissions, so you've recorded your carbon emissions, you've reported it, you now need to reduce it. And that's where we come in. As for power utilities, We help business owners reduce their carbon emissions through green energy procurements through energy efficiency measures, such as solar installations, LED lighting retrofits, and also we help with Eb fleet migration. So we've kind of put together the entire package. And we think that it simplifies the whole process for SMEs.

Katherine Ann Byam  18:32  

It sounds really, really wonderful, and like a great opportunity for SMEs to jump on this. What are your thoughts, though, on possible outcomes of cop 26? And how this might impact current plans? I mean, if we're not doing anything now, we still have to start somewhere. So I think whatever we're doing is great. But I do get the sense that cop 26 might bring an even more aggressive timeline. What are your thoughts?

Marc Wheatley  18:57  

I absolutely agree. I think that as an event, there's gonna be the most radical changes in policy that we've seen to date, I think, coming off the back of the IPCC reports, and some of the weather events we've had recently, pressure is growing from the global community. And I think there's going to be some radical policy changes. So I'm going to be watching it with a keen eye. In terms of actual outcomes, so you know, specific policies, I'm not entirely sure.

But I do believe that there's going to be additional pressure placed on larger companies. So those that are currently affected by the SEC legislation, I think that's going to be tightened up. And I think there's going to be more requirements placed on those companies to take action. So they're currently required to report but I think there might be some additional pressure applied to them to actually take action on their carbon reduction strategies. In addition to that, I think that that's requirement of reporting things is going to move down the food chain. So I think perhaps that medium sized companies will be asked to report on their carbon emissions soon. So it won't be a case of, we'll do it because our stakeholders are pressurised.

And as is the case, we've got to do it because we're being told by the UK Government. So I think that's potentially going to happen as well. And finally, I think there might be some kind of some form of carbon tax introduced, so that this has been mooted a few times in the past. And I think perhaps a carbon tax is going to be levied on certain products and services. So perhaps any even more tax applied to your energy consumption. So I'm not sure if you're aware, Catherine. But when you consume electricity at home, you automatically have and businesses you automatically have a charge applied called CCL, which is the climate change levy. Now that it increases year on year, I buy very small amounts.

 So I think at the moment it is about point eight and a penny for each unit of electricity. You can see that will continue to increase Nope, no question. But I think perhaps they might be additional levies brought into consumption just to encourage you to consider a consumption less and go to renewable products.

Katherine Ann Byam  21:16  

Yeah. scary but at the same time important, so it's in a way exciting, but we do need to be mindful of how we how we execute. Tell me listeners how they can get in touch with full power.

Marc Wheatley  21:32  

The easiest way of course, is our website, which is full pay utilities.com. And be careful how to spell utilities. Most people always leave that one of the eyes there. I'm also very, very active on LinkedIn. So on LinkedIn, I've published a number of articles around the topic of net zero. So please find these Mark really, and that spelt with a C. So Mark with the C. Please do connect with me and they're happy to start a conversation.

Katherine Ann Byam  21:57  

Wonderful. Thank you so much for joining the show, Mark.

Marc Wheatley  22:01  

Absolute pleasure. Thanks for having me.

Katherine Ann Byam  22:05  

Season Four of where radius launch was brought to you today by Katherine Ann Byam business resilience and strategy consulting services. Katherine provides business assessments and strategic support to help guide your business toward a netzero future. Get in touch with Katherine Ann Byam on LinkedIn

033 IP Is Your Business

033 IP Is Your Business

About this Episode

Gjorgji Rafajlovski (Gogo)  is the Operational Director @SEEUTechPark in North Macedonia and an IP Consultant who helps entrepreneurs and innovative startups reach their maximum potential.

With an ongoing 15+ years of a successful career in managing start-up Ccnters, Incubators, Accelerators & TechParks, Gogo has built-up a portfolio as an experienced business consultant & mentor, passionate about technology & brands.

 His background includes Operations Management, Startup Investments, Intellectual Property, Business Valuation, Innovative Growth. When he’s not supporting a world-changing start-up business, he loves outdoor sports!

We discussed how tech parks support start ups, the importance of IP, and we debated open innovation. Have a listen!

Connect with Gjorgki on Linkedin:

Subscribe to Where Ideas Launch

Connect with Gjorgki

Episode Transcript

Katherine Ann Byam  0:00  

GoGo Welcome to where it is lunch. It's such a pleasure to have you on the show. I really want to understand all about cu tech Park, and what you've been doing in North Macedonia. Tell me a little bit about how the tech Park has positively impacted business and startup investment in your country.

Gjorgji Rafajlovski  0:46  
Yeah, sure. So basically, the SEEUTechPark story began back in 2013. And it kind of started as a pilot project of the university. By the way, we are a private university overthink the first private university of everything here in North Macedonia. And we, we had this idea to start simulating the startups, the investment potential in and innovations through students and young people here in North Macedonia, and try to boost them into developing new startups and new tech tech businesses that has the potential to grow into change the world we live in. So basically, back in 2013, we kickstarted as a as a pilot project.

And then two years later, we incorporated ourselves as a Technology Park, actually, SeeUTechPark, and we started developing our own internal ecosystem, with men, we can boost our creativity and innovation. And then we became self sustainable actually, even today, we are one of the few organisations that have its sustainability as a as a core business value. And I think that's important because if you if you try to teach, especially young people, and innovators in becoming a real businessman and developing their own business, you should not just talk the talk, but you should also walk the walk. And this this system actually helped us to become more community-based and become more recognisable in our country as one of the few organisations that actually has the potential to commercialise your product and to bring added value.

Through this year, we specialise in many tailor-made services and products. And we kind of became a trademark for something that can be widely recognisable, not just in North Macedonia but in the whole region. And these are the two separate services that we provide. One is startup valuation or a company valuation. We do this as a third party, between investors and startups, wanting to raise money, and then another services, IP. So intellectual property. This is a we think is also something that can be introduced, and it should be introduced to all startups, especially in those startups, talking with investors talking with Parisian partners that want to expand their businesses and to become global players.

So basically, these two services are kind of unique to our ecosystem. And we we kind of added it to our everyday programmes and other services that are more or less equal, like every other technology parkour accelerated through the years. Seven and eight years along the path, I think we have accomplished good results in starting helping young enterpreneurs and startups reach their maximum potential. And nowadays we have helped more than 30 companies from from our country. Actually 13 out of them are still located that our technology, so they're located with our university, and we've created directly more than 150 new technology jobs which are boosting the national economy and the IP system in particular.

Katherine Ann Byam  5:16  
This is a wonderful story. And really important to see how these, this innovation that you're doing is helping to grow businesses, not just in North Macedonia, but compared to the entire region as well. So this is fascinating to see, I wanted to ask a little bit more about intellectual property is this is to areas of particular specialisation. And I want to understand why this is important, first of all, and at what stage of development should young startups be getting into IP protection?

Gjorgji Rafajlovski  5:50  
Yes, that's a very good question or two questions. I will start with a second one. At what stage do the startups need to think and to implement IP? I would say in the very beginning of developing your product or service, even before you create a company. Why is this because a lot of startups, even nowadays, think that intellectual property is something that you can add on along the path as you're developing your business idea, or a product or a service. But it's, it's not a single event thing.

So basically, intellectual property is something that you think of you plan and you implement during the whole journey of upgrading your startup. Because if you're waiting for the perfect conditions, to draft, to plan, and to implement some sort of IP, it won't happen ever. So basically, you have to start thinking about intellectual property as an asset to a company and to your product or service. So in terms of when they should start thinking about protecting the IP, I would say that even before you launch your product or service, you have to have some sort of IP strategy.

IP strategy is not something that you can immediately protect but see how certain things can develop in the certain way that in the future, you can have your assets and your IP working for you and for your business. Having in mind the first question as tp why it is important, only IP is is the asset that doesn't depreciate over time. So basically, the more you use it, the more value it gets. And the IP is the core thing that your business is unique for. So basically, every other thing that you have, business wise for a startup, let's say the office, the desk, the software, the computer, or a prototype can be easily copied,  IP, the core of the IP is your your uniqueness at work, and what you're bringing, as a unique point, to the community and to your customers.

And that's why it is important. Nowadays, globally, more than 80% of all assets worldwide, are IP assets are intangible assets. So basically everything else that we see around us, surrounding every business is less likely to be to be copied if it's IP protected. So that's why I think I'm very pro on on on developing intellectual property that can boost your business, and then can bring unique value to both your product enter your investors, and for sure, you should think of how is the best way to protect it and to to give added value to your product or service.

Katherine Ann Byam  9:36  
It's a really important point and very interesting point. And I'm going to challenge you now. And my challenge is that there are some that argue that a more open source approach is better for for innovation, and the greater good. So if we take for example, you know, Elon Musk and what he did with Tesla, or even a more recent example, with the ongoing debate around the COVID vaccines, what are your thoughts on whether or not we should embrace some element of openness when we're creating things that are new and game changing for the planet?

Gjorgji Rafajlovski  10:16  
Yes, even nowadays, with the global pandemic, this is a more like, floating or open question that should be answered. But I'm personally very pro of intellectual property and the protection and let's say the benefits used by the system. But let me put it this way, you have this innovation system that somehow should be protected, you cannot have both extremes.

The first extreme is everything should be free, not protected at all. So anybody can use it. And it's another good thing for the free economy and for the in the Premiership. If someone could store your business or a product or a service that you've been researching or investing in for months or years, in the back end, you have this uniqueness, that that you should be able to commercialise it and you should be able to put this on the market and have a have a good return of investment for it. And so basically IP gives you a certain time for your business to commercialise a product or a service and then be the only player in the market for it, protecting you and your investment and your know-how and everything you put into a business for a certain period of time. It's not infinity, but it surely gives you an opportunity to get the investment back.

The other hand, the extreme opposite on the other side would be everything should be protected forever so you couldn't use anything without any approval from inventors. So, basically this is also extreme and it cannot be done, it would also hurt the economy and the inventors. So the perfect balance would be to boost innovativeness, to give people opportunity to patent, to protect, and to invent certain things, but also give give them just enough freedom to be able to commercialise it and not to put a forever mark on their products.

So basically, this is the fine balance between open innovation and too much protected innovation. At the end of the day, I will say that there are very positive towards the system that actually rewards something that is new, that is unique, and that could solve a person or a business problem. And and yes, you have to have a business opportunity to commercialise this kind of inventions in order to keep the wheel spinning.

Katherine Ann Byam  13:26  
Yeah. What specifically should we be thinking about when we're starting to think about IP protection? So what things can we protect? And what can we not protect?

Gjorgji Rafajlovski  13:38  
Basically, IP protection is very territorial. So you can protect a certain thing on a certain territory. So there is no uniqueness to what you can protect worldwide when we're talking about inventions. When we're talking about copyright, and we're talking about the software, it's pretty much protected from the moment that it has been created. So basically, it's some kind of universal protection.

 You can always protect something that is a real invention that is new and is a breakthrough technology and then it has a market potential. People are trying to buy. You cannot protect something that is in plain nature. So basically, without a human intervention, you can protect let's say a plant or something that can be as a natural phenomenon in nature because you don't leave other people the opportunity to use it as it is. So basically something that is invented by people or by a group or by business, and is very unique, and it's something new, then it should be protected and it can be protected by IP rights.

Katherine Ann Byam  15:50  
That's a fantastic response. And definitely, I think this is something that we need to get involved with. What do you see as the potential future for SEEUTechPark, and how you expected to transform the Macedonian economy in the future?

Gjorgji Rafajlovski  16:06  
Thank you. That is also an interesting question. First of all, I see the development of the Tech Park as a good partner for startups and young innovators. That's for sure. I would see that in the next five years. We can help as many as young enterpreneurs that we can into the journey of commercialising their innovations, not just in this country but in the region and Europe also.

In general, I would like to see the first one of many unicorns from from this country and this region on the startup testing, especially in Europe. But also, I would like to see more investors tapping into this market because here in this region, we have very good talent, very skilled young people that are very opportunistic, and we have great conditions for for establishing and starting businesses.

So I would see ourselves as a good partner in the near future for every entrepreneur and startup. But I would also like to see the textbook, connecting with other hubs and innovation centres in the region, and with other universities, not just here, but also in Europe, and to develop and to bring value to to our clients and potential clients in boosting technology and innovation. Not just in our country, but but worldwide.

Actually, we're here just to promote entrepreneurship as a system and try to develop the new generation of Macedonian enterpreneurs that can go out there and change the world.

Katherine Byam 18:03  
It's a great challenge that you have set up for yourself. And thank you for sharing your journey and SEEUTechPark with us. Thanks for joining the show.

Gjorgji Rafajlovski  18:12  
Thank you, Katherine. Likewise,

031 Innovation Starts with I

031 Innovation Starts with I

About this Episode

Saleema Vellani is an award-winning serial entrepreneur, keynote speaker, a professor, and the author of Innovation Starts With “I”.

Saleema is the Founder & CEO of Ripple Impact, which helps entrepreneurs increase their influence and impact through accelerating the growth of their platforms and businesses. She also teaches design thinking and entrepreneurship at Johns Hopkins University and is a frequent guest lecturer at business schools.

We discussed her new book, Innovation starts with I.

Here's the link to pre-order her book
https://www.indiegogo.com/projects/innovation-starts-with-i#/

And a link to her 100 Coffee Challenge.
https://saleemavellani.ck.page/100-coffee-challenge

Subscribe to Where Ideas Launch

Episode Transcript

Katherine Ann Byam  0:02  

Hi Saleema, and welcome to Where Ideas Launch, The podcast for the Sustainable Innovator.Welcome, and thank you for joining me. 

Saleema Vellani  0:35  

Thank you so much for having me, Katherine. 

Katherine Ann Byam  0:37  

You must be so chuffed and excited about the launch of your new book. Why don't you tell us a bit about the journey to bring this book to life?

Saleema Vellani  0:46  

Yeah, sure. So it depends on how far you want me to go back. But the journey essentially started in 2014. When I decided I wanted to write a book with a friend and I ended up parking the project. But it was an idea and we wrote some Google documents and started going for coffee with my friend and I asked him to co-author with me. And it was an initial phase of my life because I had been an entrepreneur, a successful entrepreneur of the past. And then for me, it was not about being an entrepreneur, it was about having the dream job.

And when I got the dream job, I realised it wasn't the job it wasn't as dreamy as I thought it was. And so I was trying to find my inner entrepreneur, trying to help other people unleash their inner entrepreneur while I was also trying to unleash it within myself and figure out, "How do I become an entrepreneur?" Again, how do I come up with a great idea? I would spend a lot of my nights on Google trying to figure out what are the trends, what are problems, I can solve what kind of business I should go into.

And I was looking outward, I was looking outside and not looking within myself. And the very same problem I was trying to solve for other people I needed to solve for myself. And so my friend ended up telling me, he said to me, "I think you need to live a little bit more before you're ready to write this book." And he was right. It was hard to hear it at the time. But I said, "Maybe I just don't have it in me right now to do this." And then I had a whole journey which I talked about in my book - a whole transformative journey. When I went through a whole evolving into this next version of myself and there's a whole life quake, my life had a crash, and everything kind of fell apart piece by piece. And I go into detail about that in the book.

And it was only until five years later when I picked up the book project again. When I decided, people were wanting to hear my story. People were wanting to learn from me. I was already teaching at that point. I was already doing a lot of the speaking and a lot of getting myself out there to share my story. And it was then that I had the confidence. And I decided, "Yes, it's time to do it." But again, I didn't know how to do it on my own because I didn't have a co-author. And I knew I had to write it on my own. But I got stuck. And I said, “Well, I did what I do best, which is build a team and put a team together to get the help I need so that the things that I suck at are not greyed out so that I can focus on the thing that I'm great at.” But then again, I got stuck again on the writing process because who am I writing this for? How do I where do you start?

A book is not like writing an article. It's a lot of work. So I ended up deciding to interview people, I got inspired. I have this process called the 100 Coffee Challenge which I used during my life quake to go out and get a job when I was stuck. And I had two weeks to find a job that was sponsored by Visa here in the United States. And I use that same process. I use that for many different things. And I and other people, my students and interns use that process as well, to go and have 100 coffees with people. So you learned a lot about yourself through that process. I call it active introspection by going out and talking to people, you learn a lot about yourself. It's not just looking inward, it's getting insights about yourself through your blind spots, especially by having those conversations with other people. And I did that same process with my book, I decided to interview 100 people.

 So I interviewed people from all walks of life and met innovators, entrepreneurs, leaders, even Arianna Huffington, Alex Osterwalder, who created The Business Model Canvas and just a lot of really interesting people. And that made me realise that inspired me to write and to put all those insights together and essentially, the beginning of the book journey was, I would say, finding myself through other people and living my story and then being able to write about it through getting inspired through those conversations.

Katherine Ann Byam 4:38  

What made you want to do intrapreneurship? Why was this something that consumed you?

How Saleema Started Her Career

Saleema Vellani  4:45  

Hmm, for me, it's how I started my career. So it's familiar to me because I graduated during a financial crisis in 2009 from university and couldn't find a job. And so I ended up going to Brazil to do some volunteer work and get some more international experience. And it was interesting because I was supposed to work in an orphanage. And then at the last minute, my boss in Brazil called me and said, "You know, before you come to Brazil, I just want to let you know, you're not going to come to the orphanage just yet, you're going to be in Rio de Janeiro. And you're going to start this language school because the situation is ingrained at the orphanage and we need to have more funding to help us run our operations." And so I was put into Rio at age 21.

And had to start the school in Brazil. And in Brazil at the time, it was not easy to do something like that and to get something started, especially a business with very few resources that we had. And the situation we lived in, we didn't have water for most days. I was living in a really cramped room with bunk beds with other volunteers that were coming in and out. And it was just a really uncomfortable situation not having the water, having the internet, all those things. I was just working all the time with the school trying to get it to be successful. And it was there that I learned a lot about entrepreneurship and all the failures as well. Because we had a business model that was like, "let's teach all these languages to these different students."

We were a bunch of foreign volunteers. But we realised that that was a model for failure because it wasn't done initially enough. And we weren't getting enough students. Our classrooms are almost empty but it was just like all our group classes were turning into private lessons. So we ended up really taking a look at what we could do. And we said, "Well, what can we do.?" And so we decided to test this idea of just focusing on Portuguese for foreigners and getting rid of all those other languages, Italian, French, Spanish, etc. And it was when we made that pivot, and we reinvented ourselves. We were like, "Wow, the school took off." And now it's one of the top-rated schools in Brazil for learning Portuguese and wins awards consistently. And it all just started with that little project. And again, I was a co-founder, but it wasn't my idea that I was executing.

And so because I started my career with that project, I learned everything, I learned how to be comfortable being uncomfortable. I learned about how to start a business from the ground up. And I carry that on with me. So when I went to Italy, that's another story, I started a translation business. And that was how I survived starting these businesses even though I didn't call myself an entrepreneur, I think probably more like a creator, whatever you want to call it, but I never really labelled it. Because for me, I was embarrassed that I couldn't get a job. And this is what I had to do. And so when I started graduate school.

 I didn't even tell a lot of people that I was running these businesses because it was for me, I failed. I didn't get the job that I thought I was gonna get after college. And so it was only when I came to the United States that's when I was like, "Boom! Entrepreneurship is not such a bad thing." Like it actually sounds. I've done it before. And when I tried the corporate thing and I tried to work on a nine-to-five for a few years I was like, "I really miss that, that level of creativity, that elation, the lifestyle that I had, and the freedom it was a lot of work. And I say I probably worked a lot more being an entrepreneur but there was a certain "I could really embrace myself and my skills and being myself."

And I think because we're evolving as humans at such a fast pace. We're in this reinvention revolution, where we're trying, we need to reinvent ourselves faster and more frequently than ever before. And so, I think because of that pace of growth that we're seeing right now, I would say that I love being an entrepreneur, but I also love being an intrapreneur. So I always do both, I never just do one or the other always, I call it in my book, hybrid-preneurship where you're embracing being in.

It doesn't have to be a corporate setting, it could be doing consulting work on certain projects. But I always think it's very important to contribute to the larger organisations because that will bring value. You're learning in both areas but you're maybe getting more training and maybe doing things that you wouldn't. You're trying to upskill yourself in one of your projects, or whatever. So I think it's important to embrace both to manage that risk. And I think just so entrepreneurship is very glorified, most people can just do it. 

Saleema’s Advice For The Emerging Innovator

Katherine Ann Byam  9:22  

That's so true. I think one of the other things that have become more and more clear is that innovation doesn't start with intrapreneurs, right. Employees are innovators every day. And I wanted to get into that because I know that you have some great advice for that in your book. What would you say to people, employees, to become more creative to express their creativity and take chances?

Saleema Vellani  9:50  

Great question. I think the first thing to do is to start looking inward and that's what my book talks a lot about. Innovation starts with "I." Even though it happens to me, and anything that I did, if I did it alone, I feel that I failed miserably. All those things I did a lot. It was only when I had a team, a community, you know, a group of people or a support network around me. And so I think ultimately, you do have to start with yourself. And if you look at some of the best innovators and look at Steve Jobs, because his journey of enlightenment or transformation happened in India.

And when he came back, he was all rejuvenated and was able to really innovate with his work at Apple. And so, I think oftentimes we focus on the final product of the invention and we don't put enough emphasis on that personal transformation during that has to happen. And so for employees, I think we need to first drop those labels of employees and entrepreneurs because I think that's why there are so many entrepreneurs that are failing, and so many employees - it's hard to retain them. Even like the intrapreneur and entrepreneur thing, there are all these labels.

Sometimes people feel like as an employee, “I'm not successful.” Listen, an entrepreneur here, at least, that was what was considered cool and successful. And then if I was just an entrepreneur that was failing, Oh it's just interesting because I think we use these labels and they have certain connotations. And so I think, first of all, drop the titles and everyone should just have their brand as an individual, as a person and be brand-agnostic around being under a company. I think we see a lot of solopreneurs who are really, really attached to their company; but at the end of the day, they get hired or they're successful as a human or as an individual. And so I think the same thing with employees, really kill it as an intrapreneur. Really kill it with your work within the company, and not just your day to day role.

See where you can give back to your community and your job or start something within and I think that's an opportunity to learn as much as possible. I think people should be in jobs to learn as much as possible so that they can be an entrepreneur at some point in their life. Or if not, start running or get their project going on a smaller scale. And I think what an important tool that's in one of my early chapters of the book, it's on finding your sweet spot. I think our sweet spots, not just something that we discovered, I think we have to develop it, we have to work at it. And that's where I think being in a job is great because you can have a little bit of room for failure and to learn, and you're not expected to always be the expert. You have a community. You have resources. You have a lot more. You have less risk, oftentimes than just being a sole entrepreneur.

And so I would say during this exercise called "sweet spot mapping" where you think about it like your four quadrants where you look at your career as a portfolio or your life is a series of projects, and not so much like what is a series of jobs, and really think about what projects you excel that so what are the projects that people and you know that you did really well and not just work projects that it could be stuff that you do on an advisory board. It could be volunteer work, it could be personal things too. And so really think about those projects that you really excelled at. And then you want to look at what are the projects that people gave you the most positive feedback on, so you got a lot of praise.

And sometimes you get taken by surprise because people will tell you things. And you're like, "Wow, I didn't know, you know, you saw that in me" or "I didn't know I was great at this." or "I didn't know I did that really well. We have blind spots, we're human. So I think really trying to understand the perspective of other people goes a long way. And then the third thing to do is to really think about those projects that you really love doing. You know, you might not be the best at them, but you love doing them. And those activities that you would even do for free because you love doing them so much. So whether you're running a podcast, or you're writing a book or doing something that you love, think about those things.

And then the fourth quadrant is the most important one because that's where we often quiet our inner voices, and we don't listen to ourselves enough. And it's the open-to-testing area. So that's the projects that you're open to testing. So some of those ideas that you have late at night where you wake up at three in the morning, and then you don't write it down, or some of those projects on your back burner that you never get to do. They are maybe slightly out of your comfort zone.

Maybe you're like, I don't have the time. But I know I really need to do this. It's those projects, think about how you can scale down and start with baby steps or micro-steps and just get them going because those are the projects that you often have to develop more skills in but they're projects or skills or things that you can be very successful in.  Often times you touch on, you iterate, and you pivot in a different direction. So like for me it was, public speaking or certain things that I was very uncomfortable doing and I never thought that I would ever do and that I was always a behind-the-scenes desk person and then just trying some of those things, I got invited to some events or certain things I was like, "No. I'm just gonna do it." And it's those projects, those skills, or activities that I think we need to pay attention to. And I think we could be more successful as innovators or entrepreneurs or entrepreneurs if we take on more of those open to testing projects,

Katherine Ann Byam  15:25  

I like the idea of being open to testing. Now we have a lot of challenges facing us in the world, and this podcast is rooted in this idea of sustainability. I see that we have a huge opportunity. Like, I think we have an opportunity now to reinvent a lot of things that we've taken for granted in the past. And that's opening the door for many people to step into themselves and express themselves differently. What are your thoughts on sustainable innovation? And how can we do more to lift it and support it?

Upholding Sustainable Innovations By Coming Together and Embracing Diversity

Saleema Vellani 15:59  

Yeah, so sustainable innovation is a whole topic of its own. I would say that there's a lot on that. I think right now we're seeing a lot of really neat stuff with the younger generations, like trying to clean up all the mess over the past few decades. There are some serious issues we have in the world that we're trying to figure out how to solve whether it's through social enterprise or corporate innovation, social innovation through companies and through different means. 

Solving the Problems of the World by Leveraging Diversity

But ultimately, I think that we need to have more conversations with the different stakeholders. So I think coming together and really embracing diversity, I think sometimes we hear like, great minds think alike. And I really think that great minds think differently. And so I think we need to bring different minds together to solve that. I was actually just in a conference this morning on food security in Cairo. And it was interesting because it was virtual. But it was interesting because it was all these different stakeholders from different countries that were coming together to discuss these things. And I think even especially now in this virtual world, we need to have more of those conversations with different stakeholders, and make that a thing. 

Innovation Starts With “I”: The Four-Step Process to Coming Out With Your Sustainable Innovation

And so I would say for sustainable innovation, I say that the first thing to do is if you're like an individual that's trying to figure this out, and you do something, whether you're a leader in a company or you're a business owner, and you're trying to figure out how to incorporate that, I would say that first start with yourself. And again, innovation starts with "I." So do some self-ideation. So really look at your passions, what frustrates you. So your values, your skills, your experience, and try to figure out how you can inject your uniqueness into the world.

And I would say that’s the first. The second thing to do after you do that self-ideation is to start adding value to people wherever you can. So whether it's through some volunteer work, some expert hearing, going to a different country or virtually helping other people however you can really try to bring your expertise and your value. I think that goes a very long way. I think we need to prioritise giving more, and we learn a lot about ourselves. But we also get some really great ideas when we do some of those activities that are just giving value to people.

And then the third is to really embrace failure. I think that if more people embrace failure, we would see more innovation happening on the sustainability front because a lot of times it's their big, big hairy problems and how do we solve these things. And we do have to go through cycles of iteration and learning to get to that point of a good idea becoming a great idea. We don't start with great ideas, usually. So pivoting when it's time to pivot and think. Oftentimes, we don't know when it's time to stick or like to evaluate the risk and all this sort of stuff. There's just so much to really think about and to also listen to our inner voice. And then when is it time to pivot because a lot of times we just give up where we say this is not going to work. And sometimes we just need to have the right conversation, or we need the right training with the right skills or technology. And we let go of those ideas, or we let go of those projects. And so, I go through that four-step process.

Know When To Pivot

Katherine Ann Byam  19:12  

Yeah. That's interesting. You just touched on pivoting. And I guess my question is, what would be your criteria for knowing it's time to pivot?

Saleema Vellani  19:23  

Great question. I actually interviewed Doug Galen from Rippleworks Foundation. They do a lot of connecting with social entrepreneurs with Silicon Valley mentors. And so they have a really interesting business model. But he mentioned to me that it's important to evaluate what are the three critical risks? What are those three critical risks and really think about those three critical risks?

Then you would know when you do that analysis. Is it time to stick and keep going as a time to let go or is it time to pivot so really thinking about the risks, and doing some coming from the economics world probably doing some cost-benefit analysis on that front as well? If there's a way you can kind of evaluate, is this the path? What are the risks? What are the benefits, and in doing that analysis, I think that can go a long way? If there's a way to simplify it, I would say do a 100 Coffee Challenge as I mentioned. Go and talk to 100 people.

Talk to people from different walks of life, different cultures, different industries, especially not just your own industry. I think that gives a lot of insight so that you're not just putting all the weight on yourself for making that decision. And especially talking to industry experts. I think, oftentimes, we need to have a diversion and talk to different people. But I also think that there's a certain level of, especially if you are trying to innovate and you're trying to scale your business, there's a lot of lack of mentorship that's really connected to industry expertise. And that's something that actually Rippleworks Foundation is trying to tackle by connecting those industry expert mentors and stuff. So I think really thinking about that is key, if I could simplify it. 

Katherine Ann Byam  21:16  

Perfect! How can people find out more about you? 

Saleema Vellani  21:19  

Yeah, so they can follow me on social media. I'm pretty active on LinkedIn. So I think you can put in the show links, my LinkedIn URL. I'm also active on Instagram and Facebook and Twitter. The handle is at Saleema Vellani. And the book is called Innovation Starts With"I" and as you mentioned, it's going to be released later this spring so people can pre-order it already we had a successful Indiegogo campaign last year and we're still taking pre-orders and so those are the different ways where they can visit my website saleemavellani.com and subscribe to the newsletter. That's another great way to stay in touch.

Katherine Ann Byam  21:56  

Perfect. Thanks so much for joining us on the show, Saleema. It's been wonderful hosting you.

Saleema Vellani  22:01  

Thank you. Thanks so much, Katherine for having me.

029 Feeding the World

029 Feeding the World

About this Episode

My next Guest is Shane Ward - a regenerative land use advisor, communicator and the founder of Action Ecology.

Shane brings an international perspective, scientific rigour and pragmatic approach to connecting people with the right knowledge, drawn from both innovative ‘on-the-ground’ practitioners and the latest research.

Passionate about sustainable food systems, ecosystem restoration, as well as plant, soil & microbial ecology, Shane also works more broadly to engage people with visioning a better way forwards for humanity’s approach to energy, economy and agriculture - re-partnering with natural systems - so we might provide a chance for future generations to thrive on this planet.

We discussed how we can secure the future of our food supply using natural systems as a guide.

Subscribe to Where Ideas Launch

Episode Transcript

Katherine Ann Byam  0:01  

Hi, Shane, and welcome to the show.

Shane Ward  0:04  

Thanks for having me, Katherine. 

Shane Ward  0:05  

It's really great to have someone with your experience here to share with us the importance of regeneration and what it means to our survival. My first question is, What's wrong with the way we grow food and the way we raise livestock today? 

Shane Ward  1:40  

That is a great question and it's a huge topic. So it's simply a case of counting some things and ignoring others. So the claims that it's needed to feed the world if I'm honest, I think are disingenuous at best as it accounts for only about 30% of the world's food. And half of that goes to animal feedlots and biofuels. So actually, most of the food that people are eating is produced by smallholders, what's also referred to as the peasant food web. We have a hugely destructive system.

They're telling us that they need to do this to feed the world. But they're not feeding the world. A huge proportion of that estimates between 40-50% of all the food that's produced is wasted, whether that be at the farm level, in the supply chain, after it's been purchased. So we have these other massive problems. So at the moment, the problem that we have isn't so much a lack of food, it's just a very poor way of getting it to the right place. So when we look at the question of "Why are we here? Why are we doing this?"

Shane Ward  6:07  

You know, I think it comes back to this idea of this industrial mentality that we've approached, and that is actually symptomatic of a whole range of other things, we look at our economy and other aspects of society. So it's not surprising in a way that that's been applied to food production. But the only reason that it's become as bad as it has, is because fundamentally, this has only been possible because of the essential one-off energy inheritance that we've got from fossil fuels. So put simply, we have dug up some solar energy that was stored in not fully decomposed plant and animal matter. we've dug all that up, and we've burned it, to do a lot of cool stuff for a couple of 100 years. But that party is, of course, almost over. So even if fossil fuels didn't affect the climate, which they clearly do, these are finite reserves.

And we're now past that peak of this easy-to-obtain high-quality energy. What's left is a kind of an ever decreasing energy return on energy invested, or what's known as EROI. So you know, the amount of energy it now takes to get the stuff out of the ground, means that by the time you’re burning it to get the energy from it, you're getting a much smaller proportion. So it's becoming way less efficient. And it's ultimately a dead end. So what we need to be doing is urgently envisaging a low-energy future that actually partners with natural systems again, and we can do that by harnessing nature's regenerative power to essentially do the heavy lifting for us in harvesting that surplus. It's a major mindset shift, but it's entirely possible.

Katherine Ann Byam  7:46  

Yeah. Now, that's interesting. So maybe people think that this is all doom and gloom, and that, this growth that we so need, and seek, is not entirely possible. But we can argue that it is. Can you explain perhaps the difference between sustainable and regenerative as one point and explain how we can really sustain that growth?

Shane Ward  8:12  

Absolutely. Well, I would say that the first thing to understand is that sustainable. It means what it means is a lot of people that try to say it doesn't mean anything anymore, or get confused about it. But ultimately what it means is sustainable is something that can be sustained indefinitely; in essence, can carry on forever. Something which is sustainable can be carried on forever. Regenerative is the restoration of new growth. And that applies mainly to living things. So there are some key things to remember with this. So ecosystems, for example, are never static. They are either regenerating or they're degrading. They can be doing that either slowly or quickly but they are dynamic and ever-changing, they never stay still.

They're governed by constant disturbance and regeneration. So harnessing that impulse to regenerate after disturbance is the key to regenerative agriculture. Therefore, to be sustainable and to go on forever, our land use must be regenerative. So regenerative agriculture, when we're talking about - the definition that I like to use- is that it's the design and management of productive land use through mimicry of diverse natural ecosystems. That's harnessing and restoring ecological function to produce food, fibre and fuel, and is informed by observation of and continual adjustment to feedback.

So we're constantly looking and reacting to what's happening in front of us and working with these natural processes which are going on. And I guess to really boil that down, it means that you're looking in nature for a model of how ecosystems work, one that's appropriate to where you are. And then you use that to design your land use pattern. So you're working with rather than against nature so you're shifting your mindset from trying to impose artificial simplicity onto the land to one of managing the complexity that's actually there. And this is really important because it means that you can not only stop doing all that harm, stop doing all those bad things, but you can actually restore and repair a great deal of the damage that's been done.

And it's sustainable because it can be done forever. And to me, that's a huge deal because despite all our accomplishments, as a species, we owe it all to a thin layer of topsoil and the fact that it rains. So without permanent agriculture, there can be no permanent civilization, all of our concerns around economies and everything else essentially evaporates. If we can’t feed ourselves, any of that stuff matters anymore. So to me, the primary responsibility for every nation should be to ensure the security resilience and the long term viability of the food system.

The majority of the food that can be grown in a particular place, and that climate and consumed by its citizens, on a day to day basis, should be safeguarded and should be resilient to the impacts from the world around and from climate change. Instead, the fossil fuel use and the degradation of landscapes and biodiversity and all that stuff, undermine that. And that's a huge problem. And I suppose that leads me to the second part of your question, which was around growth? Well, I don't see how we can have growth, certainly not in the way that we've been thinking about it.

We can't have economic growth in the way that we've been having it so far. I just don't see how that's possible. It seems to me to be a fantasy. There is no way to have infinite growth on a finite planet. So at a certain point, that growth is going to have to stop. And that's a whole nother topic in itself. And we could talk a bit about that. And we can talk about whether you can have relative decoupling, or absolute decoupling, and all this kind of stuff, and non-growth or stable state economies. But frankly, I think what it all boils down to is that we live in a finite world. And but for some reason, we have designed a system where we have this inherent promise or hope for continued growth, but it just is fundamentally impossible.

Katherine Ann Byam  12:41  

So this brings a lot of interesting questions for me because when you read the research and the text on circular economic principles, it suggests that this continuous growth could be possible, right? Because if you're finding ways to put things back into the system, either through extending its use, or through returning it to the environment through different means, but retaining it sustainably somehow to the environment, there is potential for continued growth. Does that fall asleep?

Shane Ward  13:14  

Well, just put up what's growing in that situation, that sounds to me like a stable state. It sounds to me like a healthy, stable state where nothing is like the laws of the universe - energy and matter is not destroyed or created, they're just transformed. And if we have economies that are based on that, or societies that are at least that is based on those principles, then that seems to be a sustainable idea, at least in theory. And if things are cycling through, then I would call that a circular or a sustainable economy but there's not really one that's growing. That's because there are only finite resources.

In fact, when we say, "Okay, well, we're not using fossil fuels. If we're not using this buried one-off inheritance of energy, then where does the energy come from?" Well, like all energy, all living systems on the planet really has only one source of energy. And it's sunlight that moves everything else. So it takes in sunlight and it releases heat. And that's it. And then all of the living systems, including us, and our entire evolution has been based on that system, and how to harness that energy, turned it into chemical energy, turn that chemical energy into work, and so on and so forth. So I feel like if we are going to design something which lasts forever or indefinitely that's sustainable, then it needs to work on those principles because that's just the reality we're faced with.

Katherine Ann Byam  14:39  

Yeah, absolutely. So now we want to kind of look at some other systems that aren't necessarily regenerative. They're probably more modern systems like aquaponics and hydroponics and aeroponics and different ways of growing food. Are these relevant solutions or are these also just the bit of delaying the inevitable?

Shane Ward  15:03  

That's a good question. But I suppose we need to ask relevant to what is the question? Every tool has a context where it's appropriate. So it's not that one thing is just always good or always bad but more of what are these solutions to? So first, let's look at the whole system of each idea. The energy and the nutrient inputs - where do these come from? A part of the challenge with things like hydroponics, for example, is that often these systems make sense when you have abundant energy. You obviously need the physical infrastructure to build a greenhouse or whatever that you're using. And then, of course, you need to do climate control and temperature control. There's a lot of energy embodied and all of that.

And but even if you say, you've got that already, can it be run essentially self-sufficiently forever? Well, I'm not sure that it can. I think at least the way that I've seen them done, you need nutrients in those systems, which are brought usually in the form of synthetic chemicals which are of course hugely energy costly to produce, and then you got to transport them, and water pumping. All this kind of stuff is quite high energy systems, even the most efficient ones. So in general terms, I would say that while they may have a place in certain circumstances, I don't see them as broad solutions to the problems that we have.

And I think it's true of any solution. Really, I think what it does is it forces us to reflect on our habits or tendency to jump to solutions immediately. Obviously, problems need solutions. But what we're often not very good at I think, as a species, is accurately identifying what the actual problem is. We are quite susceptible to treat symptoms and not root causes. Our assumptions about things and habituation to the context that we find ourselves in can discourage us from digging deeper and there are plenty of incentives to the system that we operate in to discourage systemic change or going against the grain. So I think often, we just need to really ask ourselves when we think of something as a solution, look at it as a tool, and then try and understand what am I actually trying to solve with this?

Katherine Ann Byam  17:23  

Yeah, absolutely. As we look at climate change, I think a lot of people conflate all of these issues into one thing, but there are several issues here. And if we look at climate change, I can see that these different types of solutions can be relevant to places that are climate-stressed. Because in your earlier comment, you mentioned that governments should be looking for maintaining the sustainability of their own food supply - using what's there. But that becomes more pressed as climate change happened simultaneously. So what are your reflections on that for countries that are in that belt of climate jeopardy? Let's see.

Shane Ward  18:13  

Yes. Obviously, all countries are going to be affected. I would say that. To me, regenerative agriculture is a huge part of that because, for several reasons, it not only solves several of the problems. In other words, it stops us from doing bad. It actually goes beyond that by not only restoring the damage that's been done, but to actually do good and can do things like sequester carbon in soils, and help restore biodiversity. That is the potential that it has. Certainly, in a lot of developing areas and tropical countries, we've seen Agroecology, as it's often termed, is being used to do exactly that - to provide food security and economic opportunity to smallholders and to the village scale at the regional scale.

And I think that really what we're doing is we're trying to say that it's not enough to just stop doing the bad stuff. We've actually got to try and look at how we can make positive progress. I feel that if we're learning the lessons from nature, it is that we get resilience through diversity. And that's true at all different levels of the organisation and particularly true if we're talking about how you design and manage a living food production system. So that diversity becomes a key part which means that you're no longer operating a monoculture, you don't just say, "okay, you over there, you grow maize, and then you over there, you do something else, you could do goats, and then you do soy." So you don't split it up every parcel of land or every reasonable area has a mixed production because what you do is you start getting benefits from that diversity.

Not only do you get economic benefits of course. If the price of one thing plummets, you still got something else giving you an income. But actually, you start getting the benefits of things like pest control, pathogen control, because you are hosting the habitat for the things which predict upon those pests. You are able to restore nutrient cycling and fostering healthy soils. That's an ecosystem that is supporting healthy plants. You're getting the moderation of wind, and that you're soaking more rainfall in and so on, and so forth. You’re actually restoring these ecosystems. You're restoring the function of the landscape. So that's not only a good thing for nature. That's a good thing for us. We're connected to that.

You start producing healthier food that has more bio-nutrients in it. You're getting fewer pests and diseases, problems that actually have an effect on human health as well as the landscape of health. We're starting to sequester more carbon. We can actually repair the hydrology of landscapes. We can reverse the desertification at larger scales. There's evidence to suggest that we can actually start to bring rain back to places by putting trees back into landscapes with sufficient scale.

These are quite powerful tools. And we only have to look at some of the ecosystems around the world which have been degraded. If you think the Middle East used to be the Fertile Crescent that used to be the breadbasket of civilization. Look at it now. I mean the Mediterranean didn't use to look like what it looks now all those rocks and that's the bones of the earth sticking out where all the soil is washed away after all the trees have been cut down. We have massive impacts on the landscape but we also have the power to restore them. And that's really powerful.

Katherine Ann Byam  22:24  

Absolutely. Would you say that our experiences of the pandemic have created a  mandate for change? 

Shane Ward  22:33  

Yeah, I mean, absolutely. I can't speak for everywhere, of course. But you know, I have been in Australia and New Zealand, during several lockdowns and I've spoken to friends and colleagues around the world. And I think that there's definitely a view that the Covid 19 pandemic has actually had a real impact on a lot of people's perception of the world that they exist in. There's been in some cases a lot of reconnection to the community or valuing of the community that they're in, realising that those ties are really important. I think there's been a lot of questioning I've noticed about what really matters?

 Why are people deeply living in cities going and working hard at their jobs to earn more money to maybe pay off a mortgage or something? Is that really what they all they want out of life? And what's the rush? Being forced to take a pause and take a break has actually had a real impact. I think in a lot of cases. I've also noticed signs that more and more people are starting to realise that the system, the globalised world that we live in, and the systems that underpin it are quite brutal.

They've got a glimpse of that, which may be many of us had been immune to for a while. You're living in a developed world where we are led to believe that we can have anything we want, almost anytime we want. It was just how we got used to things being, probably the promises of new technology and all these new wonderful things in the way that our world is changing. And suddenly to be confronted with empty supermarket shelves in some places and just making us question, "what's the use of a food system? If it only works in the good times?"

And possibly the same for the economy - it's not safe. It's a bit of a confronting reminder that perhaps we can't do everything we want to do when we want to. It makes us question, "are we entitled to everything that we can dream of? Is that reality?” Or is that just something that we've been told through advertising and all these other things to buy stuff? I think this is really key because the again, this fossil fuel inheritance has diluted us a bit into a techno fantasy where we genuinely believe we live in a world without limits.

And we tell ourselves and each other this story in countless ways. But really no matter what anyone thinks that's just not the case. It's not it's not reality. Someone I remember reading a quote that was talking about resources and saying that, "if we continue to live in a world like there’s no tomorrow, there won't be one." And I just think, you know, when we over-consume energy and natural resources, we are borrowing that from future generations, our children. So maybe it's just time to grow up a bit and accept that the world we need won't fit inside the rules that we have. So maybe we've got to change those rules.

And especially when we look at what's coming down the line at us - climate change, biodiversity loss, and that's enormous and the only future that will be viable long-term for us is one that operates within ecological limits. Anything else is just a one-way ticket to collapse.

Katherine Ann Byam  25:52  

Yeah, I think, probably my last question, we'll see how we go. What you've said has a lot of implications for how we live. And I know the pandemic has open the door to change because we've seen that we can completely change our behaviours. But I also know that there are a lot of people that are looking forward to when we can go back. There's a lot of talk about when we go back, there are things that they definitely don't want. And so that's the immediate things like going back into a cubicle in an office. People are pretty open to being quite flexible about how they work. But I don't know if the realities that we're talking about today are still close enough to home for many people. What individual changes do we need for people to make in order to start moving governments and decision-makers toward this cleaner, clearer and more regenerative future?

Shane Ward  26:58  

It's such a good question. And I guess it's one that's never that far away from my thoughts. One note on all of this really is that I've noticed that in this digital world that we inhabit more and moreover the last few years, there's a tendency for discussions to become polarised and for people to miss or not be interested in the nuance anymore because everything's a bit black and white. It's a bit adversarial. And I think that that's problematic. Because a lot of these approaches, these answers that are out there for us require us to demand that we be a bit more observant and a little more humble.

 And you know sit in the question a bit more sometimes. Look at what's actually going on observe and really see that everything is somewhat contextual. So to answer your question, there is no one size fits all response to that. What Bill Gates, Jeff Bezos, Larry Page can do versus what you or I or a teenage factory worker in Southeast Asia can do is going to vary wildly. So you know, it's difficult to generalise. But I suppose I'd say, whoever you are, wherever you are, start where you are.

 Influence while you can, but never lose sight of the big picture. Recognise that the system makes hypocrites of all of us and demand better choices. Buy with whatever spending power you have. Companies, I've seen this plenty of times, played us and say they're just giving people what they want but that's passing the buck. Do what you can in your life. Know that individual change will never be sufficient to tackle this. But it's equally true that we absolutely cannot do it without you.

 One really powerful thing I think that will benefit you and the wider world is to understand and care about where your food comes from and how it's produced. Now, there's so much talk about our good food, bad food, I can't eat meat, I'm gonna become a vegan for environmental reasons. Whether food is good or bad is determined by how it is produced, not what it is.

That's the key takeaway here. And that should matter to everyone because the health of the ecological system where your food comes from is directly connected to the health of your own body system. You're taking that food and you're consuming it, You're feeding the microbes in your gut and that food is becoming you. So it actually really matters how your food is produced and where it comes from. So support those people that are out there regenerating their soils and their landscapes and not destroying them.

 That's a huge step if people can do that. So if that ends up with people forming closer ties to the food that they eat and then who's producing it or where it comes from and more of a localised food connection, then I think that's a huge step. But maybe I'll just leave with this parting thought. We do not inherit the earth from our ancestors, we borrow it from our children.

027 + 028 Human Potential

027 + 028 Human Potential

About this Episode

Chris Pirie – CEO of the Learning Futures Group is an experienced talent leader, obsessed with making the future workplace better. Formerly a Global VP of Online Learning at Oracle and Chief Learning Officer of Microsoft, Chris’s entire career has been spent working at the intersection between Workplace Learning and Technology. He now provides advisory services to enterprise organizations and EdTech vendors and teaches as Senior Faculty at the Josh Bersin Academy and The Future Workplace Academy.

In 2019, Chris launched The Learning Futures Group to help organizations rethink their Learning and Development strategy in the face of historic workplace disruption and change. He launched Learning Is The New Working a podcast about the future of workplace learning and the people helping us get there, as part of his research activities.  The podcast has had over 30,000 downloads. He is also a founding director of Humentum.

Chris brings a passion for driving disruptive change and innovation and is a proven business and people leader of large functional teams in very dynamic enterprise environments. He has developed strategic partnerships with leading business schools such as INSEADLondon School of Business, and Wharton University.

He is an experienced Board Chair and Board member in learning related fields such as Association for Talent Development and Learning for International NGOs. A frequent contributor and speaker at industry conferences including Deloitte CLO ForumFuture Workplace ConsortiumINSEAD CLO ForumAST ICE conference and others.

He is a founding Director of Humentum.org, a membership organisation bringing transparency, skills and localization to the capacity building efforts of the International Aid Industry.

Chris was born in The United Kingdom and now lives mostly in Seattle in the USA. He loves to hike, read, sail, and travel with his educator wife, and two grown sons.

Subscribe to Where Ideas Launch

Episode Transcript

Katherine Ann Byam  0:01  

This is part one of a two-part episode. 

 Hi, Chris and welcome to Where Ideas Launch.

Chris Pirie  1:29  

Katherine, thanks so much. I'm honoured to be here.

Katherine Ann Byam  1:32  

Thank you for joining me. I'm really excited to have you on the show because you don't know this but your podcast has been a big part of my 2020 story. I attended a Learning Futures conference in London in the first week of February. I think it was just over a year ago. And I got hooked on many of the speakers and all of them spoke about your podcast which is quite remarkable. And once I started listening, I got hooked on it and it started to help me reshape the entire way I crafted my business. So once the pandemic happened, and I started to pivot to doing courses and programs, I started to focus on the future of work and some of the career work that I was doing. So you've had a big part of my story.

Chris Pirie  2:17  

Oh, wow. Well, I'm flattered. I'm excited. Where was the conference, at the ExCeL Center? 

Katherine Ann Byam  2:24  

Yes, it was. Before it was in the NHS Hub?

Chris Pirie  2:27  

Yeah, it was about a year ago. And I was thinking about this the other day, it was actually in February, I think of 2020. And it was one of the last trips that I made. And that building turned out one month later. It was like a “3000-bed” feel hospital. It was amazing. And with the energy of that conference, we didn't know what was waiting around the corner for us. I just remember this, it was the last time I was with 3000 people in one room. Now it feels like a very scary thing.

Katherine Ann Byam  2:59  

It's quite striking to think back. But it was only a year ago. So I wanted to talk a little bit about that podcast, because I find it really transformative. And I know that you have 30,000 downloads. It's called Learning as a New Working. And can you tell my listeners why you thought this statement could be true?

Chris Pirie  3:17  

Yeah, I think I can't remember exactly how I stumbled across that title. I wanted something that was fun. But what I like about it is I think it's a useful frame for two reasons. One is my work is really about how we can prepare the world for a future of work that's going to be very different, especially in the light of how we've prepared people for the world of work in the past has not been excellent. So let me put it that way. So how do we prepare people for the world of work? And I think Learning is the New Working does two things. One is it sort of tells the story of how modern work and how it looks like work is going in the future is going to be highly dependent on the ability to learn quickly and effectively.

That's always your best bet in a world of change, right? It's like this, the secret sauce of humanity is that we can be plastic, we can learn, we can respond, we can adapt, and we can be agile. And that's particularly useful in times of change. And a lot of what I'm reading tells me that we are at this time of incredible change. So that's one thing. Learning is one of the ways that you will be more effective in work increasingly in the future. The second thing is that as I studied this, it turns out that learning is really hard especially once you get past your middle twenties. You absolutely retain the ability to learn and brain plasticity is available to you through your entire life. I'm a big fan of lifelong learning but It gets hard, right?

It happens with no effort until you're in your mid 20s. And then it requires an extraordinary amount of effort to really learn new things, new models, new processes, new behaviours, and new facts and information. And so I like Learning is the New Working from those two angles, because it talks to the future of how we're going to get by at work. And it also talks to something that I feel very strongly about. And that is a new scientific approach that we need to help people get better at being learners.

Katherine Ann Byam  5:36  

Absolutely, I think that's such an important part of the story. I would say that for myself, I have pivoted careers at least every four to five years and radical pivots as well. So I probably don't necessarily agree that it gets harder but I do agree that it gets harder to sell it when you're pivoting and changing. And I wanted to ask you a little bit about sustainable development and the goals around that. There are two goals in particular that I feel I need to talk about in this podcast as it is sustainable leaning. One is goal eight, decent work and economic growth, and the other one is called for quality education. And my question for you is which one do you think we are likely to struggle to get to more? Will it be a challenge around decent work and economic growth? Or quality education?

Chris Pirie  6:29  

Well, the first thing is, I love this frame for your podcast. I mean, to be honest with you, I wasn't super familiar with the sustainable goals - the United Nations' set of goals. I definitely came across them but hadn't really studied them. And I love it. I mean, I think it's obviously a codification of the challenges we face as humanity. And that's very much in frame right now. And so I like it and I like that approach of your podcast. So congratulations on doing that. Couple of things I would say. One is that studying the international aid sector, this is not my area of expertise. But it's something that I've really enjoyed studying and learning from. And I'm going to frame it up. I'll come back to your question specifically, but I want to frame it up first. I think the work of international aid is fascinating. I mean, it's loaded with post colonial baggage.

But it's a $200 billion worth of activity around the world. And when you meet people who are engaged in that, they're usually super people that operate with purpose and integrity. And I love being around those people. And one of the things that I learned was, the whole business of international aid is essentially two things. One is funnelling money to where it's needed. And secondly, it's finding the capability and coping capacity to get the work done whatever it is - water projects, education projects, health projects, and so forth. So it's cash and it's training in its simplest form. And because it operates under such a lot of constraints. I really learned a lot about training and workplace learning by studying the sector. And I really did learn a lot.

And some key principles in my work come from that.  For example, one principle is to use what you have. In the private sector, where I come from, we spend staggering amounts of money. In fact, more money is spent in corporate workplace learning, (the best estimates $360 billion) that is spent in international aid. And so that's Workplace Learning investment to a very tiny fraction of the human population. And it's actually not really very good. That's the dirty little secret.

So anyway, point one is I studied the international aid space not as an expert but as somebody who wants to learn from great work that happens there around agility and impact and so on and so forth. The twin goals of education and work are really, really interesting. As I read them carefully, a lot of the education which I think is number four (is that correct?) It's a lot about childhood education. That's not my area of expertise at all. I really defer to that one. But it's clear, you know, if you read works like Hans Rosling's work, "Fact Fullness," which is one of my favourite books.

You know, he'll tell you the correlation between educating children and moving humanity and society forward is so blindingly obvious that we just need to get better at doing it. We need to spend more money doing it and we need to be equitable and how we give people childhood education opportunities. It's crystal clear. It's out of my expertise, my league now, but just whatever we can do to improve that seems to me absolutely a slam dunk.

Katherine Ann Byam

Added links to your earlier point as well about how easy it is at that age as well to assimilate.

Chris Pirie

Yeah, true. I mean that's absolutely true. And I think when you get uneducated youth in the world, bad things happen. They're easily exploited. They're put to bad ends. It's clearly not good. So educating kids, educating women, educating everybody should be a massive priority. End of story. As far as I'm concerned, what can we do to make that happen? There's a really interesting story that I love. One of my favourite episodes of the podcast. And it wasn't me doing the interviewing.

 It was a friend of mine called  Lutz Ziob, who does a lot of work in Africa. And he found this amazing guy called Rob Burnett, and Rob is a Scotsman. And he ended up in East Africa. He's built this incredible organisation. It is a model for so many things. I remember the episode. Yeah. I think a lot about the future of work and one of the things that I did when I first started this project was I went to learn how to think about the future because there are people who do that.

 And it's not crystal ball gazing. It's a discipline and a science. There's tools and techniques you can use and I wanted to understand them a little bit. And one great phrase that those people throw around a lot is, is actually a science fiction writer whose name is escaping me right now. He says "the future is already here. It's just not evenly distributed." And so you look for futures around. That's kind of a little bit about what I do in the podcast. I'm looking for possible futures, people who are doing things really, really well, people are on the cutting edge.

And Rob Burnett is one of those people but his future is quite dystopian because he tells a story of how things in 2019 in East Africa. 1.2 million people will graduate from the education system, to your point, goal number four. Job well done. 1.2 million people are educated so somewhere between the age of 16 and 18. These people are educated. They're skilled and they can read and so on and so forth. And they come out of the education system. And less than 5% of them get a job that you and I would recognise as a job. I go somewhere you go religiously every week and get a paycheck at the end of the week.

So these people go onto the streets and they find ways to operate. And I'm not going to tell his whole story. But he helps those people. He reaches out to those people. And he gives them skills that they need to do what they do more effectively. And he calls it the hustler MBA and he speaks in the language and cultural tropes that they understand. He's built this network of 5 million people. And he started by producing a comic, like using what he had, like the simplest technologies he could get his hands on. And he's gone on to build social media that really accelerated his practice.

 And it's a really amazing story. So I think that's a little bit of an illustration of if we get people through school, the job isn't done when they leave school. They're going to continue to need to learn. They're going to continue to get experiences. They're going to continue to need skills, many of which have an increasingly short shelf life. And yeah that's the kind of area of work where we hang out.

Katherine Ann Byam  14:03  

And it's interesting because I think we have had a number of overlapping challenges come upon us in 2020, in a way that we hadn't expected. So even as a workplace futures person, you would have been surprised at what we were able to do in 2020. And how things have changed, right? So we have this sort of perfect storm. It's and it's either actually going to be a storm or an acceleration, right? I'm not gonna say which but history tells us that depressions and recessions are followed by opportunity and by growth, but history never had AI. And I think there are a lot of things that this can challenge. So I probably have three parts to this question. So I'll ask you one at a time and that's good. One is how can we ensure that this strain on services, the climate change impact this whole Biodiversity bit, as well as the rapid advancements in AI do not become a permanent loss in jobs for humanity.

Chris Pirie  15:11  

Yeah. Wow, that's a huge question. And I do think that one possible future is what we think of as jobs today don't exist in the future. There are many people who think that there's Rob Burnett's world in East Africa where that's already true. You know, the idea of having one contractor with one employer who takes care of benefits and salary is really under threat. And it's under threat from a number of different directions and it's likely to evolve.

And we know this because as you say, you look at history as a guide, right? So when I think I always like to start, and I spent six months at the beginning of this journey, thinking about what are the forces at work? What are the macro forces at work? And this was of course before 2020. And the forces at work were really maybe sort of unarguable things that would likely change the way everything happens. One, of course, was climate change and what's going on with our environment. And that's really hard.

 I think for people to get their head around (because it's happening in) in such an abstract way for many many people - if you don't live in these extreme climate areas, you probably haven't noticed the change. But I can tell you, the oil industry has noticed the change. The people who live on these edges and in these futures, they noticed the change and you're seeing the behaviours happen. So that's one thing that I don't have a lot of expertise in. But clearly, it's going to drive a lot of shifts in population. 

You can map out what's likely to happen as a result of climate change to humanity. The second thing is technology. And I think he talks maybe in your introduction about the fourth industrial revolution. We know what happens when a radically new technology comes along. It changes how we organise our work. It also changes how we organise our society, and maybe even how we think about our gods. I mean it has fundamental changes and we know that over the last 300 years, there was this kind of steady drumbeat of changes really based on energy. Actually, at the heart of it, the energy we use to power the tools that we have, that we've invented in that kind of era. And so this is all well documented.

In 1860, people moved from the farm and into the workshop, and then into the factory. And then we started to automate things through computing in the 1960s. We had this sort of 100-year drumbeat. But there's nothing that says 100 years is the magic number. And in fact, here we are just like 30 or 40 years after the information age. And we've got this incredible new set of technologies that most commentators think is described as the fourth industrial revolution. It's the technology that's going to change our world.

So fundamentally, we'll have to reorganise around pretty much everything, especially work. And you mentioned AI. AI is clearly going to have a massive impact on the world of work. Machines are going to be better. We know these machines are better at doing things than we are. That's why we build them in the first place. And thinking of machines, as some people call these AI machines are going to be able to scour much more data than we can ever consume as humans.

They're going to be able to compute at a much faster rate. And already we can as humans. They're going to be able to organise themselves. And so this is a profound shift. And one of the things that really made me sit up and take notice of AI was when somebody said, "you can think about the impact that AI will have on the world, in the same way as the impact that electricity had on the world. So it's not something that's just going to apply to a few niche areas and jobs and vertical industries. It's going to change absolutely everything. And so that's kind of a lot to get your head around."

One of the reactions that we're seeing is this shift to thinking about humanity. Like if we can't calculate as fast as this machine, if we can't consume data as fast as this machine and we can't make connections and learn as a cohesive unit the machines can, what can we do? Where is our strength and where does our advantage lie? And this is what gives me a lot of hope, at the moment the answers to these questions all lie in our very humanity. And I think the interesting work that's going on today is kind of focused around that. And I can see it large even in the corporate world where I hang out.

And then let's just talk a little bit about 2020. When I started this project, my mission was to disrupt the industry that I just spent 30 working years working in because I felt that we weren't moving fast enough to help all the people that needed to be helped. And I felt that our practice was out of date 100 years old, moving people into training courses, and telling them what to do, and then sending them out and expecting them to do it. You know, this was the work of the early 1900s.

And we haven't really moved beyond. And so I had this notion that we needed a new learning science that helps people be really effective learners based on progress that we've made in a number of different scientists in scientific disciplines. And I wrote this little book,which was the kind of me getting my thoughts together around the whole project. And it was called a Learning Disruptors Handbook. It was going to be like an album by The Clash and it was gonna be a call to action and to tell people how they were wasting their time. And then along came more disruption than I could have possibly imagined in the form of the global pandemic.

And this has been the most disruptive action of my life and probably my generation, and probably this era. And all kinds of amazing things have happened. And we all sat here with our heads spinning, figuring out what if this is going to be permanent? And what's gonna happen afterwards? How do we build back better to use one phrase? Or, how do we get back to the new normal to use another phrase. So disruption, whereas my call to action was to disrupt yourself, my thinking has evolved. And my call to action is, rebuild yourself. Rebuild yourself thoughtfully and carefully with technology but with humanity at the core.

So I'll give you one really simple kind of frame around this that I've used for many years. For 20 years, I was an evangelist for the kind of technology that you and I are using today. This was my world. Of course you can use technology to teach people to be more effective in their workplace. That was my job. And we experimented with all kinds of things. And we evangelised elearning, and we evangelised digital learning, and we evangelised global cohort programmes. And we did some really interesting experiments. The next thing you know, the evangelism job is done because people have no choice. And the only way to operate now is through this kind of technology through digital interactions. And so the job becomes different.

The job now becomes not how do we force everyone to use this slightly annoying technology? But how do we make it more human? How do we make it better? How do we take away the tyranny of Zoom fatigue? And how do we find technologies that bring back serendipity and bring back more effective collaboration and bring back happenstance, and bring back the hug, so to speak? And we will (as we know this is what humans do) build better tools. But that's the new job. And we have the opportunity through this disruption to reset the agenda. Whether we'll take it or not remains to be the big question.

But I think all of us have the opportunity, especially now to think ( as this comes back, as the world opens up in the great work of science and vaccines saves us from the brink) what we want it to be like. Let's make this a deliberate, thoughtful choice. And let's write about some of the wrongs that may have happened in the past. Let's be deliberate. And so that makes this a really, really exciting time and I want to double down and do better work.

Katherine Ann Byam  24:52  

To touch on the point about technology. The technology is already there and developing even further for us to have a more intimate experience of this, right? So yeah, even with the screens or even the haptic suits or these types of things that are coming out. So I'm sure that this will improve with technology. But I guess one of my questions remains which is, are we accelerating at a pace that we can no longer continue in our current state? Chris answers this question in part two of this episode.

(Part 2)

Katherine Ann Byam  0:01  

This is Part 2 of a two-part episode. Please be sure to listen to Part 1 before getting into this one.

Are we accelerating at a pace that we can no longer continue in our current state, - so we can no longer continue with technology external to ourselves and, do we need to internalise technology in some form or fashion to continue to keep this pace? Or is there another shift?

Chris Pirie  1:55  

Hmm. Are you talking about the sort of and so on and so forth?

Yeah, the book "Sapiens" and "Homo Deus" are really scary future models there. The ideas are really powerful. So computers are an extension of ourselves that enable us to do extraordinary things. They enable you and either chat across continents and then share that with other people. I mean, it's extraordinary. And that is an extension of ourselves. And there's also a branch of this where we change our physicality through drugs and through technologies of one sort.

The book, "Homo Deus" really does a nice job of playing out what that might look like. I did some research. It turns out that one in four kids in North America is regularly using some sort of behaviour modification drug. I mean these are not recreational drugs - these ADD medicines, and so on, and so forth. Actually, we are starting to use pharmacology to be more effective, not just in sports, but in learning as well. And that's clearly going to be a force and an interesting one and one that I think is going to be hard and take some time for us to get our head around. I would say before we do that... before we change our physicality, there is a lot of work that we need to do. And there's a lot of great work going on around what I call sort of collectively learning science.

 And there's always been a good, well-documented 100-year history of people trying to understand how learning works and pedagogical models have come out of that work. But we seem to be at a point in history where a lot of progress is getting made on a couple of fronts. And I talked about four things - I've talked about computer science. So computers will help us learn and they will help us learn not by just delivering content to us, but by actually taking off some of the burdens of learning, right? So, for example, you used to have to memorise a lot of things to be good at anything. Well, you don't really need to do that anymore because computers can do that much, much better.

You can focus your learning time on more conceptual things. One example, so computer science is going to help us be better learners. And we should be all over that. The second area is neuroscience or brain science in general. And there's a lot of subcategories of that where people are really starting to understand in a lot more detail how the brain works, how cognition works, how plasticity brain works which is sort of magic kind of essential attribute that humans have that is extraordinary and allows us to be so adaptable.

People are really understanding that at the chemistry level, and in sort of behavioural terms as well. So then you've got sort of behavioural science and social sciences that are really understanding one very important piece of learning. Perhaps the most important piece of learning, which is motivation and how you get people's attention. Because it turns out that once you're an adult, if you want to learn something new when you want to unlock your brain plasticity, it's really hard work. And you need to be highly motivated to do it. I think we all know this from our own experience.

And some, a lot of adult educators are in the business of motivation. I had a great conversation with a guy from a language learning company in Germany. It's one of my favourite episodes. And he just talks about the 5 million people who are learning together on their platform and what that allows them to do is to watch the behaviour, like what time of day do successful learners study, and what their study patterns look like, did they do a little bit, and often do they go deep? So we now have these kinds of laboratories, whether it's in a MOOC context or in a language learning context where you have millions and millions of people doing learning behaviours that we can observe in different kinds of ways.

 I think this is going to unlock all kinds of techniques and tips and hints on how to be an effective learner. And then we've got this extraordinary work that's going on in terms of human motivation. This is related to what you mentioned in the sort of pre-read that you sent me a little bit about the inequities of wealth distribution, and what's going on with technology companies that are becoming so powerful in our world. We all use Facebook as everybody does as one example of that but there are many others. Really, what these companies are figuring out is how to get human attention.

 They are really, as we say, monetizing eyeballs, and monetizing clicks. And this is really all about the attention economy, right? Getting your attention on whatever they can monetize, is kind of huge, and it's happening in a very disciplined, thoughtful way. And it's using what we're learning about the brain and human motivation to make it work. And we need to co-opt that. We need to co-opt that approach to help people be more effective learners, and to get people thinking about the right kind of problems. So that's the amazing sort of macro forces at work in our world today. And then the last thing I'll say about this is the most recent piece of work that I've done, I've done in collaboration with some people at Red Thread Research.

And we've just finished a podcast season on the topic of Purpose. And purpose, it turns out, is attention. It's about human attention. And the people that we meet, and the people that I've met on my entire sort of journey through podcasting and research, the people who are successful and the people who are doing interesting things are the people who are purpose-driven. And I really tried to understand that. And I think it lies somewhere in the area of people with purpose and are highly-motivated. And people who are highly-motivated are really effective learners.

 They know that to get the job done, they're going to have to steal ideas, they're going to have to learn what they can, they're going to use what they have, they're going to be clear on what the problem is, and they just get to be very, very effective people in their domain and in their sphere. So I'm very hopeful that this work on purpose and the trend towards purpose-driven organisations, whether in the international aid sector or the private sector is going to be helpful. 

Katherine Ann Byam  9:05  

It sounds as if purpose is also akin to innovation in the work that you're doing. 

Chris Pirie  9:10  

Yeah. I think that's interesting. When I think about innovation, I think a lot about experimentation. And I love experimentation. It turns out that one observation from the companies that I've worked with in 2020 is that the ones that were very open to experimenting before the pandemic and the crisis were the ones that were able to adapt very, very quickly. Because I think experimentation is part of this mindset shift - this growth mindset idea that says being open to new ideas, being curious, being focused on solving the problem, rather than leveraging whatever is you have - seems to lead to sort of greater success and more agility. So yeah, I think experimentation and innovation go hand in hand. 

Katherine Ann Byam  10:04  

Yeah. My final question is if you can tell our listeners a little bit about Humentum and that organisation that you have founded. 

Chris Pirie  10:12  

Yeah. Well, just to be clear, I was on the founding board. I was the board member of one of the component pieces. We brought three organisations together to form Humentum. And there are wonderful people working at Humentum. The predecessor organisations that do all the work but I got inspired to be part of that. Humentum is a membership organisation. There's 300 organisations that work in the international aid space. So you can think about all the big charities and organisations that are doing international development and so it's hard. It's a sort of consortium model.

There are some things to do that are hard that we can't afford to invest in and so let's, let's collaborate, let's come together and solve these problems sort of collectively. And it's focused on the really common fundamental problems that all these organisations have - How do we get our people well trained? How do we build capacity in the places where we do our work? How do we operate with transparency and integrity in a very highly regulated financial environment? How do we advocate for sets of standards that will make our work more effective, and so on, and so forth. So I love that it's collaborative.

 I got involved because of the learning aspects of the work they do - training and educating people, building skills, standards, building capacity where it's needed in the global south. It struck me that some of my experience with technology and learning might help. But I love the work that these guys do. I love that they came together - three separate organisations put their egos aside and formed this “better together” organisation and they do great work. And if you have something to contribute - projects, dollars expertise, then go check out humentum.org and see their work and they're doing good stuff on they're really poised to have even more impact. 

Katherine Ann Byam  12:34  

Wonderful. So in closing, what would you like my listeners to follow about you? Is it the podcast which I would absolutely recommend?  Is there something else that you'd like them to download?

Chris Pirie  12:47  

Yeah, so So I would say go to www.learningisthenewworking.org. And you can listen to some of the amazing conversations that we've been able to have, and more importantly, you can suggest people that we should talk to - people who are doing interesting things around the future of work or learning at work or in the international aid space. We are really always interested in talking to people who've had some sort of breakthrough or doing interesting work. So please go check it out. And I hope you enjoy it. 

Katherine Ann Byam  13:22  

Thanks for joining me, Chris. It's been a pleasure. 

Chris Pirie  13:24  

Yeah, great. Thanks so much. Nice to talk to you.

Katherine Ann Byam  13:29  

Thanks for listening. This podcast was brought to you today by career sketching with Katherine Ann Byam and the space where ideas launch. Career sketching is a leadership development and coaching brand offering personalised career transition and transformation services. This space where ideas launch offers high performance, leadership, coaching and strategy facilitation to businesses and the food and health sectors. To find out more, contact Katherine Ann Byam on LinkedIn

026 Future Capital

026 Future Capital

About this Episode

It was an absolute pleasure for me to talk to Dr Janez Potočnik about the state of our natural resources, and how we understand capital today, and what must change if we are to sustain life on our planet.

Dr Potočnik is a leading authority on the economics of sustainability, and it was truly an honour to learn from him in this session. He is a Doctor of Economics from the University of Ljubljana. In July 1994, he was appointed Director of the Institute of Macroeconomic Analysis and Development of the Republic of Slovenia.

In April 1998, the Government of the Republic of Slovenia appointed Dr Potočnik for the Head of Negotiating Team for Accession of the Republic of Slovenia to the European Union.

From June 2000 to December 2000, he was also the acting director of Government Office for European Affairs.

In June 2001, he was appointed a Minister Councillor at the Office of the Prime Minister Drnovšek. On January 24, 2002, the Government of the Republic of Slovenia appointed him for the Minister without portfolio responsible for European Affairs.

From 1991 until 2004 Dr Potočnik has also been an assistant professor at the Faculty of Law at the University of Ljubljana, where he lectured statistics and economy.

Dr Potočnik became a Member of the European Commission on May 2004.

From 2010 - 2014 he took on a second full mandate as Member of the European Commission responsible for Environment.

In 2014 he was appointed a Co-Chair of International resource Panel hosted by United Nations Environment Programme.

In the same month he was also appointed as a Chairman of The Forum for the Future of Agriculture and a chair of the RISE foundation.

He is also a Member of the European Policy Centre's Advisory Council. From April 2016, from the very beginning, he is a Partner in SYSTEMIQ.

From early 2020 he is a president of the ThinkForest and a special advisor to the Commissioner for Environment, Oceans and Fisheries Virginijus Sinkevičius.

In May 2008, he was awarded the honorary degree of Doctor of Science by London Imperial College (UK). In March 2009, he received the honorary degree from Ghent University (Belgium). In May 2016, he was awarded the honorary degree of Doctor of Science in Economics and Business Administration by Aalto University (Finland).

In September 2013, he received the United Nations' 2013 Champions of the Earth Award for the Efforts to Promote Resource Efficiency and Reduce Food Waste in European Union.In March 2014, the Catalan Association of research entities awarded him with The ACER Award for the visionary contributions and leadership that made possible the European Research Council (ERC).

December 2014, the European Environmental Bureau (EEB) awarded him the Twelve stars for the environment Award for his science-based approach to promoting environmental sustainability. In January 2015 during World Economic Forum he was as a first one awarded Circular Economy Leadership Award by the Forum of Young Global Leaders and Fortune. In November 2015, the Carlowitz Society awarded him the Hans-Carl-Von-Carlowitz Award for courageous, open minded, and international work for promoting the idea of the circular economy in Europe.

Subscribe to Where Ideas Launch

Episode Notes

Recently on my podcast, I hosted Dr Janez Potočnik who has been a prominent voice and strategist in the path to development of circular economic business principles in the European Union and around the world.Outline of the challenge

The International Resource Panel co-chaired by Janez recently released the global resources outlook, a comprehensive study of resource management.

The report reveals that global resource use has more than tripled in the last 50 years.

Global material demand per capita grew from 7.4 tonnes in 1970 to 12.2 tonnes per capita in 2017, which means almost doubling in the last 50 years.

This suggests the majority of the “tripling” could be devoted to economic growth, and to a lesser extent, to the population growth, which is, of course, also important, but there is more to the story.

Material productivity (the efficiency of the use of materials, comparing to the unit of GDP) has been growing steadily to the year 2000 until it began to decline globally due to certain shifts of the production from countries which were more resource efficient, like European Union, Japan, to the countries which were less resource efficient, like for example, Indonesia, China, India, and others.

We currently need more resources or more materials per unit of GDP than we needed two decades ago, which is an interesting phenomenon.

It suggests that how we produce needs to be examined from a comprehensive lens, and not just cost, but also consider the environmental impacts in the value chain in the resource extraction and processing phase alone. The report found that more than 90% of global biodiversity loss and land related and water stress can be related to the use of the biomass contributing more than 80%.

Furthermore, 50% of global climate change impacts can also be explained through the environmental impacts in the resource extraction and processing phase and even one third of the air pollution health impacts.

To bring this home. If you are buying your car, parking it for its lifecycle without ever using it, you will already be causing one third of the pollution, because the resources need to be extracted and the car needs to be produced and that production and extraction of resources is already creating pollution.

Add into that picture the expected global population growth expected to be 9.7 billion at the middle of the century. This means that in one year on the planet we will have the additional population of Germany, and in four years the additional population of the United States of America.

This growth is happening in the least developed parts of the world who by right esteem to the same quality of life enjoyed in the US or within the EU.

The pressure on the use of natural resources in the future will be enormous, driving us to redesign our economies so that we may be more resilient. The Club of Rome shares that we moved from an empty world dominated by labour and infrastructure to a full world where our wellbeing now depends on how well we treat the environment.

In this context, we need to rethink the signals we are sending to the markets, because those signals currently say that we do not value resources, building up a debt with future generations.

The Politics of change

In politics time is needed, as well as a critical mass of support and understanding before changes take place and new more relevant policies become reality. The big issue facing corporations and governments is this idea of stranded assets, and the extent to which this will have an impact as we pivot away from them.

Yet, it is also key that we all understand the seriousness of the challenges facing us. The governance matters. For the first time in human history, we are the generation living in socio ecological space of planetary scope. We are so interconnected, interdependent that our fragility is very high, and which is also raising the importance of our individual and collective responsibility.

This does not even cover climate change, which has a material global impact, only that impact appears more distant, so it is harder to gather the critical mass for a reaction. If we want to reach the right decisions, then we must connect those who were responsible to solve the problems with those who have the instruments for a solution in their hands. There is a need for more co-operation across these goals, and across the interests of multiple stakeholders and complex and interconnected issues.

As for the circular economy, from a European perspective the union is vulnerable as it is a net importer of the natural resources; energy for example, so conserving resources and moving into the circular economy is a logical choice, and a competitive one, considering the economics. The unsustainable irrational or irresponsible use of natural resources is a major contributor to climate change, biodiversity loss, and air pollution.

Our Role as Consumers

Behaving in a responsible way, is our obligation, and has always been, although it has become more obvious and visible now. Getting consumers on board using market signals is key. We live in market economies, and consumers and producers are acting on market signals which do not price in the negative externalities. As a result, items that are by design healthier and more sustainable, have the appearance of costing more, which sends the wrong signal to both producers and consumers.

Defending the public interest through the regulation and public funding is creating confusion of producers and consumers in the market, particularly with the strength of the political lobbying. The cost of the public interest needs to factor in the market mechanics.

Nature has intrinsic value, and as such it seems counterintuitive to assign a cost to it, but if we do not assign a cost, we do not assign a value. This is no longer a distant future. In our lifetimes, we will experience much more dire consequences of failing to act. If you look to the data, on climate impact, biodiversity, pollution, health, it is not difficult to conclude that something is wrong. We have a moral obligation to evaluate these effects better and integrate them into the system guiding our lives or change the system.

Leveraging varying abilities to respond

Our ability to transition effectively to sustainability will fly or fall on the strength of our action on the social part of the story. There is currently so much inequality that it is practically impossible to talking about a full cost system without taking care of those who do not have access to food. The vicious circle can only be unlocked if we start seriously and sincerely dealing with the social part of the questions.

As we look at major players in our global market economy exploring colonization of the moon and mars on the premise that we can source minerals or carry out some of our more harmful processes there is not convincing. Exploration and curiosity guide the human spirit, but we first have a responsibility to the one earth we know we can save.

Tune into the episode here.