 Well, hello again and welcome to MBA 604, Innovation and Sustainability. We are in lecture five covering Unit 2 with learning outcomes to be and to see. I am Joni Roberts. I'm the Vice Program Chair and Consulting Professor for Sailors MBA Program. All right. So today, heading further into the course, and we're looking at Unit 2 Sustainability policies, practices and leadership, starting with learning outcome to be where we appraise the results and impacts of innovation combined with sustainability policies and practices, such as product improvements and economic outcomes. All right, so let's get going. Last, our last lecture, we introduced the Sustainable Development Goals as a framework for sustainability, and we are going to talk more about that today to see how companies are actually applying this in the real world. So a really great report that came out from the Business and Sustainable Development Commission, they were formed in Davos back in 2016 to really help reinforce these goals and help businesses understand how they can apply these goals and be successful in the marketplace. And this report here is called Better Business, Better World. And we're going to dive into this for a while today. So what the report really does is make the business case for the SDGs. And it's a multidisciplinary team of leaders from business, finance, civil society, labor and international organizations. And they map out the economic wins that can be available to business if the UN SDGs are achieved. And businesses adopting this plan can transform their own prospects and can even outperform those stuck in yesterday's economic gain. And we'll see some examples of that. So we are, you know, reflecting on the past and considering where we are today and how we want our future to look as we go through this course. And right now, let's reflect on the past 30 years. And incredibly, we've had some real wins. When it comes to poverty and economic growth, we've actually had unprecedented economic growth in these last 30 years. We lifted hundreds of millions of people out of poverty. And that's partly due to the Millennium Development Goals, which preceded the Sustainable Development Goals. And we're benefiting from all of these, you know, the tech revolution with, you know, all sorts of technology that can help solve our most pressing social and environmental challenges. Yet, despite all of these successes, our current model of development is deeply flawed. We have a lot of problems that are coming along with this tremendous economic growth, such as climate change and inequities. So we're having more and more natural disasters. The frequency has increased quite a lot. We're also having more severe storms like hurricanes, carry more water, fires burn hotter and more extensively. And so we're facing those consequences. We have lost biodiversity and ecosystem damage that actually costs an estimated 3 percent of GDP. There are real financial costs that go with the way we've been doing business. Another issue is that median real world wages have been stagnant in developed countries since the 1980s. And, you know, people are restless about that happening. Social inequalities worsening in countries around the world. We're seeing the rich, the very super rich get richer, the middle class remaining stagnant and the poor even becoming poorer in some cases. So the spread between the rich and the poor has dramatically increased. Also, on average, women are still paid 25 percent less than men for comparable work. I'll never understand that. We all, you know, have women in our lives and men have daughters and wives. And why would you ever want women to be paid less for comparable work? Makes no sense. All right. So there are many, many more issues that go with that. Like we've been talking about throughout the course. There's something we really need to think a lot about is how this incredible economic growth did not consider the price of externalities. So these externalities are the impacts of what happens when you make a product that has effects like, you know, climate change, you know, carbon output, pollution, things like that. So if we look more carefully at this part of the equation, we can see that seven, seven point three trillion in environmental externalities went unpriced in 2009, which is 13 percent of GDP. That's the statistic from the Better Business, Better World report. And we can imagine it's most likely higher than that today. And so let's look at what, what does, what does this mean? So if we look at different industries and we see what their profit margins are before you price externalities and then after, we'll see there are some pretty heavy costs associated with some of these industries and they would not be profitable if they had to pay for things like using unsustainable fresh water, sending waste to landfills, wasting food, polluting the air or the ground, and producing the most resource intensive foods like beef. All right, let's look at cattle farming. I have a circle here at the bottom. It's the first column before you add in the externalities. They have about, you know, 3 percent profit margins. And if you add in all of those impacts, the negative impacts that creating beef for human consumption includes, it's actually negative 165. So cattle farming, you know, this is a huge question about what are we doing? What kind of decisions are we making? So what do we do with cattle farming? You know, let's just take that as an example from a policy leadership and business personal practices perspective, right? What do we do with that? Do we, one, should we expand production and consumption? Should we plow down more rainforests and natural land for cattle? Is that what we should do? Should we perhaps reorganize our priorities and our food systems? Perhaps we might want to consider shifting to pulses like lentils and beans for protein. Maybe this is an area where we need to really reduce production and consumption. Personal views are we eat way too much meat way beyond the human need for meat. And certainly if you just go back to previous eras before we had factory farming, humans did not eat nearly this much meat. So we could all reduce our consumption dramatically, right? Make a personal choice to eat less meat and eat more lentils. Maybe the government is going to set policies surrounding this. Maybe, you know, businesses will start to change what they serve or what they create and make based on this kind of information. So another area that skews these real numbers for economic growth are is subsidies. So let's look at the fossil fuel industry. So economies across the world continue to subsidize fossil fuel consumption, which is in direct conflict with the urgent need to tackle climate risks. All right, so these subsidies, why do governments do this? Well, they're intended to protect consumers by keeping prices low. You know, every time gas goes up at the pump, people just, you know, panic about it and get super upset about it. So what do they do? They make whatever moves they can to bring those prices down and give, you know, people a break on fuel costs. Yet these kinds of decisions come at a very high cost. These are the costs we need to think about. They're like the invisible costs. They're the costs that we don't see immediately when we're putting fuel into our cars or when we're paying for products that have been shipped or created using fossil fuels. We don't think a lot about that. But subsidizing fossil fuels contributes to irreversible damages from climate change, poor health from pollution. We have wars and we create alliances with bad actors over oil. These kind of subsidies actually hinder a healthy economic growth. All right, what does that mean? Well, if we reinvested that money into infrastructure for electric vehicles, that could probably be a much better use of our money. And in our long-term view, but we're always looking at this short term, gas prices went up, hurry up, bring it down, hurry up, bring it down. And we keep making these super short-term decisions that actually keep working against us. All right, so according to the IMF, these are today's numbers that globally fossil fuel subsidies were 5.9 trillion or 6.8% of GDP in 2020. They're expected to increase to 7.4% in 2025 as the share of fuel consumption in emerging markets continues to climb. We need to really think about this, not just close our eyes and close the door, but think about what if we took those fossil fuel subsidies of 5.9 trillion and invested them into sustainable energy and sustainable business practices, sustainable innovation. I would say that would be a much better use of our funds. All right, so in addition, local air pollution is costing the equivalent of between 2% to 10% of GDP across G20 countries, the top 20 economically developed countries, based on estimates of the WHO, the World Health Organization and the IMF. The IMF is International Monetary Fund. And that comes from the Better Business, Better World Report. All right, so what if we took that money and invested it in achieving the SDGs? We've got to make harder, maybe in the short term, but better in the long term decisions. So with these kinds of problems, how can these problems lead to opportunities, right? That's what business is. Business is solving problems, right? Being creative, finding a problem that needs to be solved and creating an opportunity for that to happen. Well, achieving the global goals creates at least U.S. $12 trillion in opportunities. And this is only looking at the four economic systems that the Better Business, Better World Report analyzed. And these are food and agriculture, cities, energy and materials, and health and well-being. All right. Something very important about these SDGs is that the business case for sustainable development, as a core strategy, it gets much stronger as the world achieves the global goals. The more people in on this, the stronger the business case is. Stronger the business case is, it's you get, you know, like there's critical mass, you create supply chains that become more efficient and you create access to products and all of this that when all together, everyone's doing it together, it's a stronger case. All right. So the research shows that the global goals open in 60 of the biggest market hotspots worth up to 12 trillion a year. And this number comes from both business savings. So you're saving money by being more sustainable and you're growing with revenue or achieving revenue outcomes in the four economic systems. All right. So let's see. Okay. So just these four economic systems, if we look at, if we go beyond that, the total economic price for implementing the global goals could be two to three times bigger than this. So maybe we need to shift a little bit and stop thinking this is painful and start thinking this is profitable. And for example, there are some statistics that show achieving the single goal of gender equality could contribute up to 28 trillion to global GDP by 2025. That's easy to do. Gender equality, you just do it. I mean, you don't need government or someone to help you do that. You just do it yourself. I'm a woman. That one just kind of gets me. All right. So let's see. You also save on the cost of these externalities such as carbon taxes that state or national governments do impose and can impose at any time, right? Governments at any time can start taxing any kind of business for the impact they have outside or in the process of creating their products and services and the consumption of those. All right. So also almost 380 million jobs could be created by global goals, opportunities, and the four systems. Sounds pretty good. All right. So the research shows that business needs the goals, right? So the goals offer a compelling growth strategy for businesses and for the world economy and the goals need business. So unless businesses seize the market opportunities of the goals and advance on the progress of the whole global package of 17 goals, the abundance they offer won't materialize. So back to this idea that we've got this moonshot effort for planet Earth and not being a spectator situation where you're watching it on TV, but you're an active participant from the country level to the company level to the community level to the individual level. We're all participants in this and the more people who are participating, the better the outcomes for everyone. All right. So it's kind of like choices, right? I think we've talked about that. We have choices and we are creating our future through the choices we are making today and we need to be really proactive in what we are investing in. So looking at these four economic systems, food and agriculture, cities, energy and materials, health and well-being, the Better Business Better World Report analyzed all of these industries and came up with the 60 biggest market opportunities. And here's a glance at some of them. You could reduce food waste in the value chain, right? You could create affordable housing, energy efficiency buildings, electric and hybrid vehicles. You could do car sharing. That's a circular business model. All right. Circular models for automotive, expansion of renewables, circular models for appliances, electronics, more energy efficiency, things like for health and well-being, risk pooling, pooling people together, remote patient monitoring, telehealth, advanced genomics, on and on. Okay. Here are the additional items that total the 60 all together. And you can see that there are many opportunities. And so I'd like for you to think about where can you make a difference? What's your entrepreneurial idea? What's your innovation? How can you be an influencer for sustainability? And looking at these 60 hot markets, where can you make a difference? What lights you up? Which role do you want to play? How do you want to participate in this whole sustainability revolution that we are going through? Another way of looking at these numbers is to put them into themes. And we can see the value of different themes. This is priced out in billions. And we can look at mobility systems being an incredibly valuable market. I think it's 2 trillion right there. And this would be things like mobility systems are like public transport, the circular economy and electric and hybrid vehicles, anything with moving people. Then we have healthcare solutions. That's a really strong market. And healthcare in many countries, including the United States, could use a lot of technology and ways to make healthcare more accessible. And even in your own home, taking even more charge of your own health. And that could even be using wearables and technology and things like that. Energy efficiency, I mean, artificial intelligence helps a lot with making our appliances more energy efficient. And then clean energy. Gosh, don't we all want clean energy? That would solve so many of our problems. And that's situations like anything that's renewable, anything that comes from the sun or the wind or the water or geothermal, natural heat underground, things like that. And making those in sustainable ways. So achieving the global goals, these are like we talked about before, the world's blueprint for environmental and social sustainability. They can also be called the world's to-do list. This is what we all need to do to get on this path and further along this path for creating a better world. So that would mean a world that is comprehensively sustainable, that's socially fair, environmentally secure, economically prosperous, inclusive and more predictable. More predictable means less risk, right? That's a good thing in investments and business. All right. So I mean, when your risk is, you know, your entire factory could burn down, you know, from forest fire or a hurricane, I mean, more predictable is better. All right. Achieving the global goals will provide a viable model for long-term growth as long as businesses move towards them together. Again, this can't be an isolated thing here or there are a few great businesses. It has to be all of us in this together. The goals are designed to interact. So progress on all of them will have much more impact in achieving only some of them. We have to think about all of them. Of course, the results will not be a utopia. There will be, you know, many challenges and actually bringing this into being, but the world would undoubtedly be on a better, more resilient path. And we could be building an economy of abundance. So part of our Unit 2 discussion is on leadership. And leadership is absolutely key to success. So leaders that are just in the status quo, doing things the way they've always been done, well, that's easy, right? That's easier. That's the known path. But true sustainability comes from embracing courage and determination to actually make these changes. So we need strong leaders with courage and grit and persistence and creativity and the willingness to do something different. Also, status quo is like the credibility of CEOs is in double-digit decline due to misuse of power and abuses, right? So you've got this whole public trust issue and that affects the value of corporations. And so sustainability is an opportunity to regain public trust by doing the right thing. So a single person or department cannot drive a necessary holistic change. So status quo is like, well, we've got our philanthropy department. We've got our corporate social responsibility department. We've got our one chief sustainability officer who's going to do it all in one company of 10,000 people. So no, true sustainability requires a change in company strategy that starts at the top with the way the leaders think and behave. And then you integrate that into everything you do. So you align your strategy with the global goals and incorporate them into your strategic planning, innovation, business development, and every other activity as well. So from investment and operations to marketing, talent management, and communication. So this is now not a little department or one or two people trying to form a miracle in an organization, but you integrate it as the strategic driver of success. So taking this holistic approach extends company's strategic horizons, encouraging decisions and investments that will deliver long term gains as this trend towards sustainability gathers pace. All right. So question from our study guide is, what are real world examples of businesses that have transformed products and processes to be both sustainable and profitable? Well, a great example is to look at Unilever. Paul Pullman was the CEO of Unilever for 10 years from 2009 to 2019. So he actually took his company back to its roots and then looked at today's situation and brought it into the future. You'll find that back in time, a lot of companies did take care of their people and gave them housing and gave them quality of life and education. They felt morally responsible for the people who work for them in those ways. So Paul Pullman styled a focus on sustainability from the roots of the company founded by the Lever Brothers in the late 1800s. And they were progressive and innovative for human health with soap products, right? Getting people to understand how you wash with soap and it takes care of germs and, you know, it helps you live healthier and live longer and those types of things. They treated employees with dignity and respect and they didn't see any trade-off between seeking to make a profit and seeking to improve society. Like that was the reason for being for Lever Brothers. So Paul Pullman went back to those original roots and then brought, you know, Unilever into the 21st century and refashioned the company so that social responsibility moved from an important facet of the company, like here it is over there, to become its driving force. And the vision to create a better future in which people can improve their quality of life without increasing their environmental footprint. We're going to talk at the end about what a footprint is. He also created the Unilever Sustainable Living Plan in 2010. So how much progress can happen in 10 years? Let's see. This is the Unilever Sustainable Living Plan summary over those 10 years. They used this plan, as you can see, to have three major goals of the organization. One, improving health and well-being for more than a billion people. So by 2020, we will help more than a billion people take action to improve their health and well-being. And that contributes to several of the SDGs, as you can see noted there. All right, so the next is reducing environmental impact by half. By 2030, our goal is to have the environmental footprint of them making a use of our products as we grow our business, here hitting a whole bunch of UN SDGs again. The third major goal, enhancing livelihoods for millions. And this goal states by 2020, we will enhance the livelihoods of millions of people as we grow our business. Again, contributing to a whole bunch more SDGs. So as you keep going down, you'll see how they aligned, they had their big goals, they aligned to the SDGs, and then they created more goals underneath that align to the three major goals. And using the SDGs as a blueprint, as a guide, as the world's to-do list, as what companies can focus in on to make their own products and services better. So this is really a phenomenal outcome. If you go to unilever.com, I recommend that you do visit that site I have linked at the bottom. You'll just see that from the homepage, their commitment to sustainability is integrated in everything they are doing. You want to see the whole PDF that goes with this document, you know, a screen capture that I put here for us. You can click on the, or just search for unilever sustainable living plan, or you can click on that link and from the slides, which will be posted below. And you can dive into this further and you can just see how extensive they extensively, they have integrated this into their whole reason for being. So it's really a standout company. And Paul Coleman is absolutely a leader in sustainability today. As a matter of fact, one of our cases in the exams is based on Paul Coleman and Unilever, but it's called Uniglobal. And it's a female CEO called Paula Jaredus. And so anyway, I really do admire what Paul Coleman did with Unilever and what he's doing today. So what he showed, you know, him, his leadership, but the entire company of people who engaged in this process that you can do well by doing good. So we're looking at this people, planet profits, you know, triple bottom line formula. And for these are some of the statistics or achievements shared in Paul Coleman's chapter in the breakthrough from innovation to impact case study book. And that's in our study guide and learning materials. All right, so here we go. This is from what he wrote that they created a purpose driven culture which attracts and retains people, especially millennials who value this most, they put purpose into everything they do. They have a focus on creating a work culture where everyone can apply their full potential. So you get this personal development and professional development in the process of working there. They support a sustainable workforce by investing in the physical, emotional, mental and spiritual well being of their people. They see that that's an investment that gives returns treating their people well. Another category, let's look at the planet. So they have zero ways to landfills across their entire global factory network, pretty remarkable. They cut CO2 from energy by 47% and reduced waste disposal by 98% for ton of production. Quite remarkable. Many factories run on renewable energy with company wide expectation of being carbon positive net positive, which is Paul Coleman's new name of his new book with Andrew Winston, carbon net positive by 2030. Continuous innovation across the brands resulted in better products, less packaging, smaller sizes and more items that could be put on each shipping load. So there's just so many benefits that came for the company by innovating and getting everyone engaged in this process of bettering products and the workplace for people. Well, profits, let's look at profits. The 22 sustainable living brands in Unilever, 22 of the brands are in this game of sustainability. They are growing 70% faster than other brands in account for 46% of a company's total growth. And from 2009 to 2017 Unilever's total shareholder return had risen by 300%. All right. So there's an excellent case to show you how companies can do well and do good and it can work with the right leadership and the right engagement from everyone in the organization. All right. All right, so next let's think about how can organizations effectively measure their impact on social and environmental sustainability. Well, this is an area that does have its challenges. Trying to determine what matters, what to measure, what's material, what's significant. The great news is that there has been a surge in sustainability data and measurement frameworks in recent decades. So investors, business, municipalities, governments, global institutions and communities are gathering information on environmental, social and governance issues at an unprecedented scale. So that is great news, right? People are caring more about this and doing, actually doing really great things in the workplace to help achieve these goals. The challenges, however, is that the proliferation of different indices, metrics and frameworks bring new challenges. So now there are many, many frameworks and metrics to choose from. For example, there are like over 2,500 metrics by which to measure sustainable supply chains. A business deciding to track biodiversity has over 34 frameworks to choose from and a government tracking inequality can measure it 19 different ways. So measuring what matters becomes challenging when we're asking businesses to be transparent and sharing their impact and then having that data be comparable from one organization to another organization. So there are things that are being done and have been underway for quite some time. One is the Global Reporting Initiative, GRI. They've been around now 25 years and they have standards they've created for sustainability reporting and they are extensive and comprehensive and they're by industry and by topic and so you can, you know, if you're leading up an initiative to start measuring impact, GRI is one tool to look into. There are others and this is shifting and changing right now and it hasn't fallen totally into place but choose wisely. So it takes a lot of time, effort and energy to do this kind of measurement. So companies have this increasing pressure from the stakeholder groups, you know, the government, the consumers, the investors to be more transparent about their environmental, economic and social impacts and provide credible sustainability reporting. Okay, so if everyone's using GRI while you have a better chance of everything being comparable, right? Let's see. So it is now the most widely used standards and used in more than 90 countries and in 2017, 63% of the largest 100 companies and 75% of the Global Fortune 250 reported applying the GRI framework. Doesn't mean it's the only framework they use either but this is one of the major ones and I think will continue to be an important player in measuring for sustainability. So what has also really come up in recent years, especially post-pandemic, the conversation is really ESG, ESG, ESG and this is environmental, governance. So these are considered like the three pillars of sustainability and what do these categories mean? Well, environmental, the things we've been talking about here in this course and again, you can go to the global goals and dive into those to see what matters, what's important. You can do the same for social issues. Look at the SDGs, see what's identified there. The items listed here are pretty universally understood to be environmental and social issues related to ESG and governance passage you with how a company is run, like what's its management structure, what are the employee relations like. We want to know about executive compensation, employee compensation, it's about transparency and ethics. So ESG evaluates a company's and helps determine responsible investing. So earlier we talked about those externalities and those externalities have real costs and for the most part they're not factored into the price of goods being shared in the marketplace. So let's go back to cattle farming. What if you're an investor in cattle farming? Yet the real price for profitability of cattle farming is negative 165. Well, that's a risk, right? What if policies change? What if consumer demand changes? What if your supply chain changes and says no, our consumers don't want the rainforest cut down for beef production or we want to consume less beef, things like that. Well, that's a risk and in business you need to constantly be assessing the environmental forces, right? So in unit two we're talking about policies and those policies can shift and change and you have to stay abreast of that. So ESG is a way of staying abreast of those risk profiles and determining how sustainable a company is, right? What's their longevity based on the decisions they're making and the way they're making products and services? All right, another thing I think we did talk about though is like carbon taxes. Carbon taxes, as that plays out in the marketplace, can affect profitability. All right, so what is the research show? It shows that companies manage with the long-term ESG friendly approach and a clear focus on sustainability perform better financially than those that aren't. There has been a huge rise in interest and responsible and sustainable investment among asset managers and owners and rapid growth among companies providing ESG analysis. So as of 2022, 96% of the world's largest 250 companies report on sustainability. And the lack of a standardized system for reporting on ESG performance is the main reason ESG analysis is time-consuming and expensive while also making comparison difficult. All right, so remember we are in the beginning of this new economic system, this newer way of doing business. We're looking at the beginning of the 21st century to now and these things are playing out and they haven't settled. This is an area that hasn't really settled that, but these inconsistencies in reporting methods, yes, they are a challenge, but these standards are starting to converge and so you'll see more of that as we move forward, converging, merging, combining and that's going to be ultimately cleared out, but it is currently definitely a challenge. Okay, for learning outcome to be, here are your study guide resources and links and some additional resources. Really highly recommend, you also recommend or you read the additional resources because you'll see some really great case studies like making a man-made blue zone in the Netherlands, like intentionally making a blue zone, which is healthy lifestyle. The blue zone cultures are ones where they have found that people live regularly to be 100 years old or more and so how can you recreate that human sustainability? And then what about Dutch marine industry and engineering in the oceans? How can a company that's 100 plus years old respond to current changes? There's some really good things on citizen driven innovation and creative community spaces and you'll see a lot more examples of companies that have successfully integrated the SDGs and sustainability into their businesses like the Business and Sustainable Development Commission Report, the Better Business Better World Report, has a lot a lot of examples in there and well just dive in and you will see a lot more examples which we could never go over in our time here, but I just want to encourage you to look and see what companies are doing because can inspire you and give you hope and give you you know some energy to do what you need to do to take part in this. All right our final final learning outcome for unit two is to recognize social and environmental ethical issues such as equity well-being production and consumption arising from innovation as sustainability policies and practices. So let's see how we can bring this to life for us. Well something I mentioned in unit one which is something I'll mention again and I think we're seeing that as we move through this course more and more that sustainable business is ethical business that's your ethics yes your ethics strategy and wow right we can be an ethical business start to finish and and by being conscientiously sustainable being creative being innovative and thinking differently and creating new ways of doing business. So in unit two we're also talking about policies and choices and this is the production possibility frontier in the PPF it's a classic you know economic way of looking at trade-offs. So in this case we're looking at the trade-off between economic output and environmental protection and you know we think back to Paul Pullman and Unilever in the very beginning of that company in the 1800s they didn't see that as a trade-off they saw it as like what they do their reason for being and I kind of question this this kind of economic thinking when it comes to sustainability because I think it what influences this thinking very much is are you looking at a short-term viewer or a long-term viewer and you need to carefully weigh that out so each society will have to weigh its own values and decide whether it prefers a choice like P on the production possibility frontier which is more economic output and less environmental protection or a choice like T with more environmental protection and less economic output these are the choices we make right these are the values we express in our lives and in our societies and in our businesses and in the work that we do and our personal purpose and in our life experiences. So my question for you is where would you place countries like China on this production possibility frontier what about the USA what about Sweden what about Costa Rica South Africa perhaps the country you are from you're not from one of those countries where would you put your own country on this production possibility frontier and where would you like to see your country on this production possibility frontier and do you believe that perhaps there are not truly trade-offs between economic output and environmental protection which is what some of the research we've talked about today has shown so these are the questions we have about moving into a more sustainable world you know does this idea really is it really a trade-off or not okay I'm going to let you think about that I have some ideas but you'll have to reach out to me directly if you want my feedback I want you to consider and look up those countries and decide for yourself where you place them all right another ethical issue is our individual and our collective impact and there's something called earth overshoot day and this is a day that an organization called the global footprint network determines through all of its research and analysis that when we use all of the earth's resources that it can regenerate in one year so if we were 100 sustainable we would not have an overshoot day we'd make it the whole year without using more resources than the earth can regenerate right but what's happening is that every year this goes earlier and earlier and earlier in the year this day hits earlier and collectively meaning all countries in the world together collectively that earth overshoot day is the 28th of July okay next year it'll be earlier because that unfortunately is the path that we are on at this point until we change that so that means in 2022 we would need 1.75 earths to keep up with our usage sustainably but obviously we only have one earth what we need 1.75 to keep up with the way that we're using the resources here um all right so if everyone lived like norwegians just a developed economy with you know a lot of infrastructure and things like that um we would actually need if everyone on the planet lived like norwegians we would need four planets right and you know it's probably the same for the united states i don't know we need the least four planets for the usa um two everyone live like us but the statistic from our video the footprint of companies they are norwegian so they share what their country would take um the presenters in that video are our professors um from norway okay now in jamaica in jamaica when is earth just looking at the country jamaica earth overshoot day is december 20th so what we have is an ethical issue and sustainability is the unfairness and we hear this all the time that that smaller developing nations are paying a huge price and they're not even the cause of the problem like the global north you know or the more developed nations in the world so that is unethical it's unethical that we even need for earth's or even 1.75 earths um collectively but it's also unfair it's unfair to countries that are way more sustainable in their lifestyles like jamaica and many others um i just pulled that from the global footprint network website and um so there's this huge unfairness and a country like jamaica is an island nation and we have sea level rise and they're going to pay the price they're going to pay a huge price for that right all right so we see this unfairness and we need to think that's why we need to think globally not just individualistically in our own houses in our own communities we need to think bigger way way way bigger all right so what are footprints we talked about footprints a little bit earlier in our talk today and the footprint of companies is really the sum of our individual footprints what we all do individually becomes the footprint of companies and it becomes our collective impact so the way we shop eat travel has either a positive or negative effect on the environment and society right so that's our footprint those problems we are causing those externalities from what we're buying how we're traveling what we're eating all of these things and we need to reduce the negative effects and we need to increase the positive effects on both societal and environmental impacts and as we are talking about in this course this requires innovation in new ways of making and using products all right so i'm going to leave you with this um this is another chapter in our breakthrough from innovation to impact book case study book it's the responsible society which was written by um jan petter uh balkan ender who was the prime minister of the netherlands from 2002 to 2008 and he wrote this chapter in the breakthrough book in around 2018 so he um through his leadership in sustainability as prime minister and even after being prime minister his work today these are his lessons learned he says in my opinion it is a matter of how you change the mindset and how you change the mainstream i am convinced that the role of business is changing so these are some of his leadership lessons learned which are always be aware of the dna and values of your organization use the creativity of your organization and its people try to make a connection between the sustainable development goals climate change the circular economy the new economy and the moral dimension if you have analyzed things well and have the conviction to carry out reforms and implement new ideas stick to them in order to be successful especially when it comes to innovation it is essential to cooperate with other organizations and sectors invest in new alliances and relevant stakeholders and leadership requires long term thinking in order to accomplish change you need to develop a long term view all right so i'll leave you with that to to reflect on and here are your study guide resources for our learning outcome to see and next up we will be heading into unit three where we will be integrating entrepreneurship with innovation and sustainability all right so see you next time and take care until then