Sustainable Business Model Governance Dr Nazia M Habib Mr Richard - - PowerPoint PPT Presentation

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Sustainable Business Model Governance Dr Nazia M Habib Mr Richard - - PowerPoint PPT Presentation

Using Systems Thinking For Sustainable Business Model Governance Dr Nazia M Habib Mr Richard Jones Contact: nazia.habib@csip.com 1 Contact: Richard.jones@csip.com nazia.research@gmail.com (preferred) Our Objective to Communicating


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Using Systems Thinking For Sustainable Business Model Governance

Dr Nazia M Habib Contact: nazia.habib@csip.com nazia.research@gmail.com (preferred) Mr Richard Jones Contact: Richard.jones@csip.com

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Cambridge Sustainable Investment Partners

Our Objective to Communicating Sustainability

What are the opportunities to apply systems thinking to corporate governance of ESG? How can corporations generate and implement plans for change? What do investors want to know about these actions? How can corporate incentives be aligned? Make intangibles tangible assets? (Sunk, Scalable, Stranded, Synergy, but difficult to define and assess)

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Cambridge Sustainable Investment Partners

Sustainability - a Wicked problem – high risk!

Characteristics of Wicked Problem

1.

A wicked problem has no definitive formulation.

2.

Wicked problems have no stopping rules (How do we know when design is enough?)

3.

Solutions to wicked problems are not true-or-false, but better

  • r worse.

4.

There is no immediate or ultimate test of a solution.

5.

Every solution to a wicked problem is a one-shot trial. Every attempt counts significantly.

6.

You cannot identify a finite set of potential solutions.

7.

Every wicked problem is essentially unique.

8.

Each can be considered to be a symptom of another problem.

9.

The discrepancies (and causes themselves) can be explained in numerous ways.

  • 10. The planner has no right to be wrong.

(Rittel & Webber, 1973)

Sustainability is the ability to continue a defined behaviour indefinitely. For more practical detail the behaviour you wish to continue indefinitely must be defined. For example:

  • Environmental sustainability is the ability to maintain

rates of renewable resource harvest, pollution creation, and non-renewable resource depletion that can be continued indefinitely.

  • Economic sustainability is the ability to support a

defined level of economic production indefinitely.

  • Social sustainability is the ability of a social system,

such as a country, to function at a defined level of social well being indefinitely.

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Cambridge Sustainable Investment Partners

Agenda 21: MDG funding to SDG funding and ++

SDGs USD 5-7T MDGs USD$50B

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Simply put- funding is needed to "internalize externalities and adjust risk perceptions”

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Cambridge Sustainable Investment Partners

Leveraging networks …potential unlocked

Sources to unlock potential investments in inter-connectivity:

  • 1. Materials (reduce Waste and Toxicity)
  • 2. Transportation (improve access)
  • 3. Food and Energy (increase affordability)

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Cambridge Sustainable Investment Partners

… but only some issues are significant

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Cambridge Sustainable Investment Partners

Systems Thinking is about Finding Opportunities

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Cambridge Sustainable Investment Partners

Seeds of Change starts by asking right governance questions

“Sustainable development….vagueness is no longer a basis for consensus but a breeding ground for disagreement.’ Daly (1996)

NEED to OWN SUSTAINABILITY

Understand the Need

Sustainable investment Mutually Inclusivity

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Cambridge Sustainable Investment Partners

Sustainable Investment Markers (SIMs)

Icons made by monkik and vectors market from www.flaticon.com

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Cambridge Sustainable Investment Partners

  • 1. Performance
  • 2. Confidence
  • 3. Decision
  • Authentic (8-12)
  • Advanced (4-8)
  • Lagging (0-4)
  • Certain (8-12)
  • Cautious (4-8)
  • Uncertain (0-4)
  • Positive (8-12)
  • Ponder (4-8)
  • Pause (0-4)

Reporting - Levels and Decision Outputs

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Cambridge Sustainable Investment Partners

Visualisation of Prioritisation - Decision Tool

Red: Zone of concern - Pause, will further analysis really help? Green: Zone of opportunity - Proceed and secure sustainability White: Zone of Thinking - Ponder, what evidence is missing?

Analytical Aspects Revealed:

Thresholds

  • Colour = ESG
  • Circle size = importance

Trend analysis

  • Intertemporal
  • Intergenerational

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Cambridge Sustainable Investment Partners

Let’s explore

We can host Interactive sessions for your team with our tool..☺…just contact us!

nazia.research@gmail.com

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