Charting the New Course

The 2007 Melbourne Financial Services Symposium held this week was charting a new course for new frameworks and business models important to the industry and specifically to the superannuation sector.

The Keynote speaker (Beyond Sustainability Screens: Doing The Numbers) wGeoff Wellsas Geoff Wells, Managing Director of Imperative Plus, a Sustainability Consultancy based in Adelaide. I have known Geoff for more than a year now and he has immense understanding of the sustainability sector and its implications for business. He has been kind enough to guide me to understand and learn the important concepts and tools in this area. Most importantly, the tools developed by Geoff help to integrate the new sustainability issues within the existing financial and strategic frameworks of corporations.

Environmental Management News has more:

Traditional finance models can be distorted by their inability to model the impacts of environmental and social financial factors, he said.

“The financial implications can be dramatic, in some cases current values are shown by Value-Based Sustainability Management to be as much as 100% over- or under-valued,” Wells said.

“All businesses face the new sustainability challenges, especially now with the emerging impact of climate change,” he said.

“Companies have a choice; to be out in front by learning and applying the new sustainability techniques, or to be left behind.”

Stewart Brand : “Environmental Heresies.”

Stewart Brand is a man ahead of the curve. Reading about him I realized the importance of understanding this person and his ideas.

(He published)…the Whole Earth Catalog, he organized the first Hackers ConfeStewart Brandrence, in 1984, and helped found The WELL, the early electronic community that was a sort of prototype of the Web. In Professor Turner’s history, he was the impresario who knew everyone and brought the counterculture and the cyberculture together, from the Homebrew Computer Club in the 1970s to Wired magazine in the 1990s.

I first heard about the Whole Earth Catalog in Steve Jobs’s Keynote presentations. I rushed to the University library in Adelaide and started reading all the various versions. It was an amazing experience. That it was published in the 1970s was incredible. The idea, the combination, the presentation were inspiring and informative.

The “now” version of that is the World Changing book which I had a chance to contribute to. However, it does not still come near the original.

Stewart Brand is important to understand because “He expects that environmentalists will soon share his affection for nuclear power. They’ll lose their fear of population growth and start appreciating sprawling megacities. They’ll stop worrying about “frankenfoods” and embrace genetic engineering.”

These ideas are not discussed “heretic” in the environmental movement. However, as a wise friend once said, in a second best world we need second best ideas.

He is a person who clearly understands the difference between idealism or what he calls a romantic and a practical person or what he calls a scientist.

“My trend has been toward more rational and less romantic as the decades go by,” he says. “I keep seeing the harm done by religious romanticism, the terrible conservatism of romanticism, the ingrained pessimism of romanticism. It builds in a certain immunity to the scientific frame of mind.”

And then he suggests the following,

On Nuclear power:

“There were legitimate reasons to worry about nuclear power, but now that we know about the threat of climate change, we have to put the risks in perspective,” he says. “Sure, nuclear waste is a problem, but the great thing about it is y72heresiesspread.jpgou know where it is and you can guard it. The bad thing about coal waste is that you don’t know where it is and you don’t know what it’s doing. The carbon dioxide is in everybody’s atmosphere.”

On Mega-cities:

He now looks at the rapidly growing megacities of the third world not as a crisis but as good news: as villagers move to town, they find new opportunities and leave behind farms that can revert to forests and nature preserves. Instead of worrying about population growth, he’s afraid birth rates are declining too quickly, leaving future societies with a shortage of young people.

This makes a lot of sense. Coming from India I can understand the need for mega-cities. That is a far more sustainable option that living in 600,000 villages as is the current option in India. As Stewart says, lets work with the future trends rather than fighting for some idealistic situation.
What is more important is his thinking.

Mr. Brand would rather take a few risks.

“I get bored easily — on purpose,” he said, recalling advice from the co-discoverer of DNA’s double helix. “Jim Watson said he looks for youngThe Long View scientists with low thresholds of boredom, because otherwise you get researchers who just keep on gilding their own lilies. You have to keep on trying new things.”

That’s a good strategy, whether you’re trying to build a sustainable career or a sustainable civilization. Ultimately, there’s no safety in clinging to a romanticized past or trying to plan a risk-free future. You have to keep looking for better tools and learning from mistakes. You have to keep on hacking.

It is important not to be idealistic but stick to facts and situations. Most importantly, is ok to change. Withought change there is no progress.

Additional Resources:

Algae for Oil : From Pond to Pump

The NYTimes on the idea of replacing crude oil with Algae.

Algae may be slime to the average person, but to some venture capitalists, it is the path to energy independence. But Lissa Morgenthaler-Jones and her husband, David Jones, are betting their careers and personal fortunes that they can grow masses of the slimy organism and use its natural photosynthesis process to produce a plentiful supply of biofuel.

Like thousands of other pioneer venture capitalists over the last two years or so, these two San Francisco Bay area investors have trolled through the dizzying, complicated world of renewable fuels — from wave power, to hydrogen fuel cells, to lithium batteries, to cow manure for making methane. And just like their predecessors of the dot-com boom a decade ago, they have come up with their very own gamble, started their own company, called LiveFuels Inc., and are now negotiating with other potential venture capital partners.

What is different, though, about Ms. Morgenthaler-Jones and this latest entrepreneurial wave is that the search is for something that both produces profits and offers something good for the environment. One goal, for instance, is to find an energy-efficient way to convert algae into fuel, which is why she was visiting a catfish farm here that was for sale.

Farmed catfish could provide a useful source of carbon dioxide for the algae, as well as a critical revenue flow to keep research going. The timing may be just right. With oil prices at high levels and fears of global warming growing, the old world of conventional hydrocarbon energy has been joined by an alluring new array of alternative-energy gadgetry, technical wizardry and potential riches. But there are still many more blind alleys than successes, and sleepless nights go with the territory.