Climate Change

Little doubt remains about the correlation between improved sustainability practices and better financial results: Exhibit 1 compiles the results of close to 160 research papers, most of which found a positive correlation between these two benefits. But which one is the trigger? In other words, do better sustainability practices lead to improved financial results, or does the availability of funds lead to increased investments in sustainability? In this article we explore the issue of causality between sustainability and financial performance, and what it means for various stakeholders.

Simple actions like switching off the lights or turning down the thermostat can lead to substantial savings: studies suggest that behavioral change alone, without any technology update, can result in 5 to 20% carbon emissions savings. The human mind is however far more complex than any machine, and meaningful behavioral changes in this area have proven difficult.

Productization, or turning services into products, has been a big trend among professional services companies, and for good reason: clients get a more tangible offer and companies get to systematize and reuse their previous work. But what about making an actual, physical product? We did it, and maybe you should too. Read on.

March 2007 set the date for the “20-20-20” targets in the European Union: 20% less carbon emissions, 20% more renewable energy production and 20% more energy efficiency. Five years and an economic crisis later, and with only eight years left to reach 2020, a recent report states we will fall short of some of these objectives. In the midst of this grim scenario, something stands out: the Covenant of Mayors, a group of more than 4250 European municipalities voluntarily committing to surpassing EU’s “20-20-20” targets”. Can they do it? They can, but most of them probably will not.

I really enjoy that moment, when you finish an assignment and you look back at your deliverable - that handful of slides that kept you up and running - and feel that everything you put in there makes perfect sense. It’s like bringing order to chaos. Fighting entropy. But, is that all? Is this handful of slides the final stage? The result of a work well done? We don’t think so. To reach the final stage, you need to bring your slides to life, you need to make sure that all your ideas and conclusions are implemented (or at least implementable), even in challenging conditions (economic downturn, lack of liquidity, etc...). And one of the best ways to do so is by running a pilot: an old recipe for an emerging issue. 82DBNBG9S443