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1 CSQ CSQ CBS Sustainability Quarterly Volume 4, March 2013 INTERVIEW WITH MINISTER OF DEVELOPMENT COOPERATION CHRISTIAN FRIIS BACH THE WIND TURBINE INDUSTRY RESEARCH CLUSTERS CBS Research in emerging global innovation networks in Europe and China Six New Sustainability Clusters Launched at CBS

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Page 1: CBS Sustainability Quarterly 2013 #1

1CSQ

CSQCBS Sustainability QuarterlyVolume 4 March 2013

INTERVIEW WITH

MINISTER OF DEVELOPMENT

COOPERATION

CHRISTIAN

FRIIS BACH

THE WIND TURBINE INDUSTRY

RESEARCH

CLUSTERS

CBS Research in emerging global innovation networks in Europe and China

Six New Sustainability Clusters Launched at CBS

2 CSQ

3CSQ

Editorial 2013CSQ1

Welcome to a new spring semester and a new issue of the CBS Sustainability Quarterly

HighlightsIn this issue we discuss sustainability issues in developing countries with the Danish Minister for Development Cooperation Christian Friis Bach and what these entail for Danish business and CBS as a business school We also introduce you to the six new Sustainability Clusters which are led by a number of engaged CBS colleagues The six clusters focus on (1) Green Innovation and New Business Mod-els (2) Sustainable Transitions in Developing and Emerging Economies (3) Governing Sustainability (4) Communicative Dimensions of Sustainability (5) Sustainability in the Post-Growth Economy and (6) Corporate Governance and Leadership for Sustainability Strategy The purpose of the Sustainability Clusters is to contribute to sharpening the definition of what CBS currently does and will do in the future on sustainability issues The Clusters will work to highlight and position sustainability competences at CBS and facilitate multidis-ciplinary collaboration

What is happening at CBS on SustainabilitySince the publication of our previous issue the Platform has facilitated a number of conferences seminars and workshops on a variety of sustainability topics ndash such as the Greening of Supply Chains Sustainability in a Post-Growth Economy Corporate Governance and Corporate Social Responsibility the Cultural Political Economy of Climate Change and Cause-Related Marketing In our January appli-cation round which is one of our three annual funding application rounds the Platform allocated seed funding to 16 new sustainability projects submitted by CBS researchers and students We can also report that the Platform now accepts smaller applications of less than 25000 kroner on an ongoing basis in order to allow some flexibility for supporting innovative ideas with a shorter time horizon We in-vite you to visit our website wwwcbsdksustainability for more details on how to apply We also want to bring your attention to the new CBS UN PRME Secretariat Progress Report which can be found at wwwunprmeorg The report showcases how CBS is making great progress on responsible management and sustainability in research education and stakeholder engagement

What is coming upThe spring and early summer will be a busy time for all things sustainability at CBS Among the guests that we will welcome for seminars are international scholars Jeremy Moon Nottingham Business School and Mick Blowfield Oxford University as well as Cass Sunstein from Harvard Business School whom we will host in collaboration with the CBS Public-Private Platform The Sustainability Platform will also welcome our first Adjunct Professor Annette Stube Head of Group Sustainability at AP Moller-Maersk with an inaugural lec-ture on 2 April And in June we will co-sponsor the Sustainability in a Scandinavian Context Conference which will bring together more than 100 international academics and practitioners working with sustainability

Thanks to the many people who have contributed to this fourth issue of CSQ Barbara Louise Bech Jenny Mead Oana Brindusa Albu Mikkel Flyverbom Hans Krause Hansen Reneacute Taudal Poulsen members of the student organizations 180 Degrees Consulting and 360deg Students for Sustainability Lene Mette Soslashrensen Marie Koustrup Frandsen Michael Nguyen Christian Charity Christian-Philip Lun-dahl Satu Reijonen Julia Kirsch Hollitsch Louise Lyngfeldt Gorm Hansen Elise Lind Jacobsen Line Pedini Rasmussen Soslashren Jeppesen Stine Haakonsson Andreas Rasche Jette Steen Knudsen Anker Brink Lund Julie Uldam Anne Vestergaard Christian Erik Kampmann Jens Froslashslev Christensen Bersant Hobdari Ole Bjerg Bent Meier Soslashrensen Christian Friis Bach Jonas Soslashdergran and Kirsti Reitan An-dersen The next issue of CSQ will be out in August As always please contact us if you would like to contribute or if you have comments to this issue and the Platformrsquos work in general

Mette Morsing Stefano Ponte Elisabeth Crone Lindingsustainabilitycbsdk

4 CSQ

In this issueCSQ updates

Updates from partner organizations

Students

Events at CBS

PHD Focus

Research

CSQ Interviews

Update 5

Research clusters launched 6-9

Past Events 41-42

Upcoming Events 43

Hydropower Sustainability 29-31in China

Social Enterprise World 39-40Forum

Jenny Mead 10-11

Christian Friis Bach 12-14

180 Degrees 15

360 students 16

PRME 17-19

cbsCSR 20-21

CBS Goes Green 22

COBREN Biofuel 23-26Conference

Transparency-Sustainability 27-28 Nexus Workshop

Energy Efficient 32-33 Construction

The Climate Challenge in 34-35Shipping

The Wind Turbine Industry 36-38

5CSQ

Update

Next application deadline for Sustainability

Platform funding is 15 May

Applications of less than

25000 DKK can be submit-

ted on an on-going basis

Call for papers Journal of Consumer Policy Special

Issue - CBS Harvard Collaboration

Call for papers Sustainability in a Scandinavian Context

Conference at CBS

activities supporting sustainability research and education at CBS including expenses in connection with workshops seminars and conferences travel visiting faculty and salary for research or student assistance but please note that the Platform is not allowed to compensate faculty with internal buyout (frikoslashb) Please remember to use the ap-plication form to be found on our website when applying And do contact us if you have any questions beforehand

It is now possible to submit applications for smaller initiatives of maximum 25000 DKK to the Sustainability Platform on an on-going basis This is done to increase flexibility and create space for facilitating sustainability in-itiatives with a more short-term perspective When applying the Platform for support please also use the application form to be found on our website httpwwwcbsdkencbs-focusbusi-ness-in-society-bis-platformssustaina-bility

The Journal of Consumer Policy will publish a Special Issue on Behavioural Economics Environmental Policy and the Consumer edited by Professor Lucia A Reisch (CBS) and Professor of Consumer Behaviour and Consumer Policy Cass R Sunstein (Harvard University and Harvard Law School USA) In 2011 the Journal published a Special Issue focusing on ldquoBehavioural Economics Consumer Policy and Consumer Law ndash An interdisciplinary Perspectiverdquo Following on this trajectory the present Call focuses on the increasingly discussed possibility of applying behavioural economics to ldquonudgerdquo consumer choice and behaviour in the domain of environmental protection The editors invite both conceptual and empirical papers with a variety of perspectives (including both ldquoprordquo and ldquoconrdquo) and from a variety of disciplines Papers have to be submitted be-fore October 1st 2013 and according to the submission and author guidelines available on the journal website httplinkspringercomjournal10603 The publication of the Special Issue is scheduled for March 2014

On 10 and 11 June the Sustainability in a Scandinavian Context Conference 2013 will be held at CBS The con-ference is intended to bring academics and practitioners together to consider sustainability in a Scandinavian context and the potential development a research paradigm dedicated to exploring sustainability in a Scandinavian context Extended abstracts of between 500 - 1000 words are due by 10 April 2013 Accepted extended abstracts will be made available on the conference website and printed in the conference proceedings Extended abstracts will be considered with regards to their fit and potential contribution to the Sustainability in a Scandinavian Context Conference 2013 and furthermore with regards to their potential contribution as fully developed articles to a special issue dedicated to ldquoSustainability in a Scandinavian Contextrdquo This special issue will be with a respected international academic manage-ment journal (to be announced in advance of the conference) that will be edited by professors R Edward Freeman Kai Hockerts Mette Morsing and Robert Strand The call for the full articles will be early 2014 Please go to the confer-ence website httpwwwconferencemanagerdkssc2013conferencehtml for more information

Since its launch in July 2011 the CBS Sus-tainability Platform has been pleased to support a number of sustainability-related initiatives across CBS departments and dis-ciplines - and we are still very interested in receiving new applications for initiatives The next round of applications is due on 15 May 2013 n this round the Sustainability Platform will support initiatives with budg-ets up to 200000 DKKThe Platform is able to support a long list of

CSQ Update

6 CSQ

Six New Sustainability

Clusters Launched at CBS The CBS Sustainability Platform is happy to announce the launch of six new Sustainability Clus-ters in 2013 With the energy of a number of CBS colleagues that have taken on the responsibility of leading the Clusters the Platform hosted a kick-off meeting in January where focus and ideas for future activities of the Clusters were discussed among the Cluster leaders

Green Innovation and New Business Models

Corporate Governance and Leadership for

Sustainability Strategy

Sustainable Transitions in Developing and

Emerging Economies

Governing Sustainability

Communicative Dimen-sions of Sustainability

Sustainability in the Post-Growth Economy

he purpose of the Sustainability Clus-ters is to contribute to sharpen the

definition of what CBS does and will do on sustainability for the future The Clusters will thus work independently with researchers across CBS to highlight and position sustain-ability competences at our business school and facilitate multidisciplinary collaboration within and beyond CBS

With seed funding from the Platform the Cluster leaders plan for a number of activi-ties over the next few years within research education and outreach working as lsquocon-necting hubsrsquo for researchers at CBS that are engaged or wish to become engaged in spe-cific thematic areas within sustainability

Clusters will develop in-itiatives within research education as well as outreach in a variety of mixes Some will focus their efforts on developing new con-tent for Sustainability teaching and integrat-ing it into new andor existing courses and programs others will focus on developing new research projects and applications for external funding involving international re-search colleagues and corporate partners Some Clusters plan to facilitate the author-ing of journal publications and books as well as summarizing relevant literature in the field and making it available to inter-ested scholars at CBS There will also be efforts to work closely with students and external stakeholders on conferences sem-

inars and workshops and to invite interna-tional researchers and practitioners to share their thoughts on sustainability Activities will naturally depend on the particular inter-est of the CBS researchers that wish to take part in the Cluster

Cluster leaders as well as the Sustainability Platform team would like to hear from you on new ideas for activities comments or questions or on whether you would like to be engaged

T

CSQ Update

7CSQ

The Cluster on Green Innovation and New Business Models focuses on discussions and challenges around the increasing problems of global warming resource scarcity and en-vironmental deterioration which have a sub-stantial and comprehensive impact on future business conditions Companies must devel-op strategies to mitigate risks from supply disruptions social unrest rising materials costs and pressures from regulators NGOs and the general public The efficient use of resources will be an important competitive parameter and the need for sustainable pro-duction and resource use will open up new opportunities for innovations in technology products services and business models

The focus of the Cluster on Sustainable Tran-sitions in Developing and Emerging Econo-mies stems from the notion that developing and emerging economies (DEEs) are one of the main engines of contemporary growth in the global economy They face massive transitions in economic social and envi-ronmental terms In order to explain how business in these countries can contribute to sustainable growth the Cluster explores (1) innovative approaches and North-South partnerships on technology co-production

This Cluster will explore and analyze theo-ries frameworks and empirical evidence on the conditions and tools for promoting and managing sustainable innovation and busi-ness models with focus on environmental issues The Cluster will seek a coordinated alignment of both technological (and prod-uct and process) development and business model innovation including market plat-forms and infrastructures

Professor Jens Froslashslev Christensen (jfcinocbsdk) and Associate Professor Christian Erik Kampmann (cekinocbsdk) the De-partment of Innovation and Organizational Economics

and transfer within clean-tech industries (2) green innovation networks and capacity building in DEEs (3) social entrepreneur-ship and social business models in DEEs and (4) sustainability strategies of global firms that have implications in DEEs (Base-of-the-Pyramid markets Sustainable Value Chains) Associate Professors Soslashren Jeppesen (sjiklcbsdk) the Department of Intercultural Communication and Management and Stine Haakonsson (shdbpcbsdk) the Depart-ment of International Business and Politics

The six CBS Sustainability Clusters will be

focused on the following themes

Green Innovation and New Business Models

Sustainable Transitions in Developing and Emerging Economies

Stine Haakonsson

Jens Froslashslev Christensen

Christian Erik Kampmann

Soslashren Jeppesen

8 CSQ

The Cluster on Governing Sustainability takes it starting point in the recent flourish-ing of private governance of sustainability initiatives Private actors such as business firms and civil society groups have created numerous initiatives addressing pressing so-cial and environmental problems both at the national and transnational levels Some of these are strictly private others are collaborative efforts with the public sector In this Cluster we are particularly interest-ed in examining corporate codes of conduct public-private partnership agreements labe-ling schemes and standard setting by mul-ti-stakeholder initiatives with a focus on (1) legitimacy and accountability processes and

strategies related to private sustainability governance (2) the effectiveness and impact of sustainability initiatives (3) the dynamics of the relationship between hard and soft law (4) the influence of the state on private sustainability governance and (5) the or-ganization of sustainability management in transnational firms Professor Andreas Rasche (ariklcbsdk) the Department of Intercultural Communi-cation and Management and Associate Pro-fessor Jette Steen Knudsen (jskdbpcbsdk) the Department of International Business and Politics

Governing Sustainability

This cluster invites for exploration of the communicative construction of sustainabili-ty across a variety of interests and stakehold-ers Organizations are traditionally under-stood as instrumental spaces for managers to produce products and processes towards a more sustainable society However increas-ingly organizations appear as social and moral spaces where the meaning and role of sustainability is communicatively negotiated and co-constructed and no definite agree-ment seems to be achieved across publics This development poses new challenges for business in their continous work to appear as legitimate participants vis aacute vis civil society the political system and other organization-alcorporate actors In this cluster we focus on (1) how communication of sustainabili-ty has become a strategic tool for managers working in business ngos and policy-mak-ing (2) how traditional and social media play

an important role in mediating issues of sus-tainability across publics (3) how marketing and branding of sustainability influences consumption and public opinon and (4) how different forms of political and corpo-rate communication (via persuasion facts dialogue etc) about sustainability raise questions about the democratic models that underpin sustainability discourses Against this backdrop the sustainability cluster brings together leading academics from a range of disciplines to explore the role and meaning of communication in a broad sense for the development of sustainability

Cluster leaders Professor Anker Brink Lund (abldbpcbsdk) the Department of Inter-national Business and Politics and Assistant Professors Julie Uldam (juiklcbsdk) and Anne Vestergaard (aviklcbsdk) the De-partment of Intercultural Communication and Management

Communicative Dimensions of Sustainability

Anne Vestergaard

Julie Uldam

Anker Brink Lund

Andreas Rasche

Jette Steen Knudsen

9CSQ

The Cluster on Sustainability in the Post-Growth Economy starts from the realization that the era of perpetual economic growth may be over The Cluster explores and devel-ops ideas and imaginaries of what a sustain-able post-growth economy might look like The purpose of such effort is to transform the end of growth from being the cause of social economic and ecological depredation into being an opportunity for the creation of new forms of economic organization that do not rest upon the condition of growth We ap-proach this challenge by starting to rethink some fundamental economic concepts from the perspective of a post-growth economy

What is a company What is work What is leadership What is money What is con-sumption What is a market And what is in fact economic growth The Cluster will ap-proach these questions theoretically by look-ing into their assumptions rooted in the par-adigm of growth capitalism and empirically ndash by studying actual practices of alternative economic organization Associate Professor Ole Bjerg (oblpfcbsdk) and Professor Bent Meier Soslashrensen (bmslpfcbsdk) the Department of Man-agement Politics and Philosophy

Sustainability in the Post-Growth Economy

The Cluster on Corporate Governance and Leadership for Sustainability Strategy focus-es on managerial behavior and performanc-es related to responsibility in corporations with a particular interest in how managers and leaders in firms relate to and behave vis aacute vis expectations to corporate sustainability strategies policies and action The Cluster will invite discussions that engage with how responsibility issues play a role in shaping systems and models of corporate governance and leadership and conversely how different models impact corporate responsibility and performancesThe emphasis will be placed on bringing into the management debate to what extent responsibility brings demands

for new management competences and man-agement models The Cluster is particularly but not exclusively interested in exploring the relationships between sustainability and corporate performances with (1) board of director characteristics (2) corporate owner-ship structures (3) shareholder activism (4) leadership approaches (5) ethical consider-ations regarding corporate governance and leadership and (6) comparisons of corporate governance and leadership approaches in a Scandinavian context vis-agrave-vis other global contexts

Associate Professor Bersant Hobdari (bhintcbsdk) the Department of Internation-al Economics and Management

Corporate Governance and Leadership for Sustainability Strategy

Bent Meier Soslashrensen

Ole Bjerg

Bersant Hobdari

10 CSQ

Writing a good business case

from a Hollywood perspective

Jenny Mead (left) picture from readthehookcom

On November 28 2012 Kirsti Reitan Andersen temporary project manager at CBS Sustainability Platform interviewed Senior Research-er Jenny Mead Darden School of Business University of Virginia in extension of her visit to CBS Jenny Mead was here to host a workshop and one-on-one sessions on how to write good business cases with a focus on sustain-ability

Interview with Jenny Mead Senior Researcher Darden School of

Business

Could you tell a little bit about yourself

ldquoI have been at Darden School of Business for the past 10 years I write cases about business ethics sustainability strategy and leadership I am not a business person at all but call my-self a writer because that is what I prefer I write stories I have worked in the film busi-ness in Hollywood where I worked as a De-velopment Executive It means that I looked for projects that could be made into movies Again I am not a business person at allIn the 1920s Harvard University started case-based teaching Darden followed through on the case tradition in 1950s Darden has con-tinued to focus on business ethics as key in educating students From the 1950s onwards

in the first year of undergraduate studies we have had a mandatory business ethics course This tactic has developed a large student body which is constantly aware of business ethics as an integrated part of business life The business ethics cases I write have an ele-ment of ethical ambiguity and decision-mak-ing that contains ethical considerationsrdquo You are visiting CBS to host a case-writing workshop and one-on-one sessions with as-piring case-writers What have the partici-pants gained from the workshop

ldquoThey get a primer of what a business case looks like They learn what a case looks like and are given an exercise where they have to

craft a case and have colleagues critique that The second day concerns teaching notes If a professor from another business school wants to teach it they can get the teaching notes that suggest how to teach the casesrdquo

What is a good case and why are cases ben-eficial for teaching

ldquoInstead of using textbooks in classes teach-ers can make use of business cases Generally a case should present a dilemma that has to be solved or a business decision that has to be made by the protagonist in the caseBusiness cases are a good way of placing the student in the shoes of a manager or decision maker Giving him or her the practical expe-

CSQ Interview

11CSQ

Writing a good business case

from a Hollywood perspective

Jenny Mead and Jonas Hedman from Department of IT Management at Copenhagen Busimess School

From the workshop at Copenhagen Business School

riences in a safe environment ndash no company is going bankrupt based on the decisions It is almost real world training but you are not in the real world A feature of case teaching at Darden School of Business is the use of small video clips of the protagonist in the business case Instead of students just reading about the protago-nist in the case the protagonist presents the problem or issue on video to create a lively teaching environmentrdquo

Do businesses actually think about ethicsThat is a good question and I believe there is

a growing awareness I am very impressed by Darden and the students Maybe it is because of the mandatory first year ethics course but the students are very concerned with CSR sustainability and values

I am currently working on a series of cases on conscious capitalism More and more businesses are adopting true values A shift has been made towards conscious capitalism The idea of conscious capitalism is that busi-nesses realize the value of good treatment to all stakeholders Businesses exist to create value for everybody

Relevant links

Darden Case Studies

The Olsson Center for

Applied Ethics (Jennyrsquos

employer)

The Business Roundtable

Institute for Corporate

Ethics

httpwwwcorporate-ethics

orgpublicationscase-studies

httpwwwdardenvirginia

eduwebOlsson-Center-for-

Applied-Ethics

httpwwwcorporate-ethics

org

12 CSQ

SUSTAINABILITY AND

DEVELOPMENT COOOPERATIONInterview with Minister for Development Cooperation

Christian Friis Bach

Did you know that 7 out of 10 of the fast growing economies can be found in Africa Or that DANIDA funds a programme in which CBS and other Danish universities work together with universities in Tanzania Ghana and other countries to increase the quality of research and uni-versity-level education in devel-oping countries

CSQ - Elisabeth Crone Linding amp Stefano Ponte sat down with the Dan-ish Minister for Development Co-operation Christian Friis Bach to hear about how the developing world is moving ahead fast ndash and why Denmark needs to keep up in order to stay relevant

I t is not every day that we meet with min-isters on the top floor of Asiatisk Plads

ndash the official home of the Danish Ministry of Foreign Affairs and DANIDA the inter-national development cooperation branch of the Ministry Nevertheless here we are over-looking the busy waters of the Copenhagen canal and looking forward to a long-planned rendezvous with Christian Friis Bach Min-ister of Development Cooperation since the autumn of 2011

Besides spending time in the academic ranks of Copenhagen University and the political spheres of the European Commission the Minister knows a thing or two about the de-veloping world he has previously devoted his

time to positions in DanChurchAid WWF World Wide Fund for Nature MSActionAid and the Danish Ethical Trading Initiative

In its current strategy DANIDA has put a new focus on green growth renewable en-ergy sustainable agriculture and innovative solutions to enable continued access to scarce resources ndash a quite green agenda in fact But how does this resonate in a developing world that is growing very fast According to the Minister perceptions are changing with more democratic political environments be-ing built

ldquoMore and more developing countries see green growth and sustainability not as stum-

bling stones but as building blocks of a fu-ture strong economy They recognize that in a world of natural resource scarcity and increas-ing prices on for example energy they need to adopt a different growth pattern More and more poor countries are buying into this And therefore we now have a unique opportunity for shaping the political framework and ena-bling environment to create more sustainable developmentrdquo

So how does a business school such as CBS fit into this equation What can we offer

This is a key question for us to ask As the Sustainability Platform was born out of the CBS Business in Society strategy we are in-

CSQ Interview

13CSQ

terested in looking for ways to address grand societal challenges such as ensuring sustain-able development

Christian Friis Bach recognizes that CBS as a research and educational institution has a role to play here ndash maybe even a bigger role than we play now Because even though CBS is known and regarded as a very internation-ally oriented university the Minister encour-ages CBS to go even further in sharpening its global commitment and profile

ldquoMany of the problems that we have related to growth and employment in Europe are not to be found in developed countries I hope that CBS continues to engage internationally in order to shape graduates to tackle global chal-lenges For example 7 out of 10 of the worldrsquos fastest growing economies are in Africa and here I would really urge CBS to have an even stronger engagementrdquo

CBS is involved in the Building Stronger Universities in Developing Countries Pro-gramme (BSU) which is a partnership be-tween research and higher education institu-tions in selected developing countries and all the main Danish universities The long-term goal of the initiative is to make the partici-pating institutions stronger by conducting joint research projects that offer knowledge and solutions to localdomestic and global challenges to produce better graduate pro-grams and for universities to play an increas-ing role in the economic social and political development of their own countries How-ever Christian Friis Bach also encouraged close dialogue with a broader set of partner universities in the developing world as an important way for CBS to shape its research and educational efforts and thus remain rele-vant in the future

Christian Friis Bach highlighted

ldquoIt is a big world And the world moves fast And I think the challenges upon our edu-cational system in Denmark are increasing every day When I go to South Korea China Latin America or Africa I see that they look increasingly towards each other for innovative solutions not towards Europe If we need to remain relevant we do have a challenge hererdquo

For example this means looking at the econ-omies in the world that are the most innova-tive These are in many cases in the develop-ing world so this is when CBS should invest when it comes to partnering in research educational development and knowledge exchange for example among faculty and students

The Minister also notes the advantages that can be gained from globalizing our institu-tions much more broadly and working across borders and academic fields for example on

The Building Stronger Universities in Developing Countries initiative amp CBS

ldquoBuilding Stronger Universities in Developing Countriesrdquo is a partnership between research and higher education institutions in developing coun-

tries and Danish universities The long-term goal of the initiative is to make the participating institutions stronger in the sense that they

bull playanincreasingroleintheeconomicsocialandpoliticaldevelopmentofthesocietiesinwhichtheyarelocated

bull functionasnodesofinnovationandknowledgeproductionprovidingsolutionstolocaldomesticandglobalchallenges

bull produceskilledandmotivatedgraduatesthatcancontributetothefurtherdevelopmentofthesocietiesandaddressthechallenges

faced

The ldquoBuilding Stronger Universitiesrdquo initiative has a structure with four thematic platforms Copenhagen Business School contributes to one of

the four platforms under the initiative the Growth and Employment platform which is a partnership between University of Ghana (UG) Kwame

Nkrumah University of Science and Technology Ghana (KNUST) University of Dar es Salaam Tanzania (UDSM) Sokoine University of Agriculture

Tanzania (SUA) and the major Danish universities From CBS Associate Professors Soslashren Jeppesen and Michael Wendelboe Hansen the CBS

Center for Business and Development Studies is part of the project which for example seeks to develop relevant PhD programmes strengthen

growth and employment relevant research activities and research collaboration and disseminate research findings to stakeholders

wwwbsuudorg

Students Sierra Leone (picture from umdk) Photo Joslashrgen Schytte

When I go to South Korea China Latin America or Africa I see that they look increasingly towards each other for innovative solutions not towards Europerdquo

ldquo

14 CSQ

health technology and business develop-ment in cooperation with developing coun-try researchers And we need to be good at a lot more than ldquojustrdquo development coopera-tion ldquoif we want to remain relevant for exam-ple in Africa on sustainable business we can-not afford to send people out who have worked isolated in the development community here in Denmark So instead of seeing development research as a separate discipline it needs to be integrated into everything we dordquo

That is why the Minister argues for more fo-cus on educating graduates that are experts and specialists but not necessarily within development cooperation Instead he says Denmark needs graduates that can develop the best possible solutions for the developing world within energy technology etc ldquoThe fast-growing economies in China Southeast Asia Latin America Africa do not need spe-cial things made for developing markets they need top innovative solutions and high-quality products and we need to be able to offer that to them if we want to remain relevantrdquo

One of the solutions worth repeating is that of partnerships According to the Minister universities need to remember that partner-ships with other research institutions as well as with private companies and organizations can provide greater insight

ldquoYou need not only public-private partner-ships but large-scale multiple partnership Still universities can sometimes behave as isolated entities Of course universities need to focus on the core business of researching and educating students but they will also in-creasingly be challenged to engage in these in-ternational and multiple partnerships This is where you will find some of the most inspiring

About Christian Friis Bach

Born 1966 in Frederiksberg Denmark Married three children Lives on a hobby farm near Ganloslashse

Present officeMinister for Development Cooperation 3 October 2011 ndash

Education1992-1996 PhD International Economics Royal Danish Agricultural University Copenhagen 1986-1992 MSc Agronomy Royal Danish Agricultural University Copen-hagen

Work Experience2010-2011 Special Advisor for EU Commissioner Connie Hedegaard (UN Global Sustainability Panel) 2010-2011 CEO ViewWorld ApS 2009 Affiliated Professor in International Economics and Development at the University of Copenhagen 2005-2010 International Director DanChurchAid 2002 Journalist at the Danish Broadcasting Corporation (DR) 1999-2005 Associate Professor International EconomicsDevelopment Economics Royal Danish Agricultural University (University of Copenha-gen)

Other engagements2010-2011 Member of the Board of the Danish United Nations Associa-tion 2008-2010 Initiator and Board Member of the Danish Initiative for Ethical Trade 2008-2009 Member of the Danish Africa Commission 2007-2011 Member of the Presidium for WWF World Wide Fund for Nature Denmark 2000-2006 Board Member International Institute for Sustainable Develop-ment 1997-2001 Chairman Mellemfolkeligt Samvirke (Danish Association for International Cooperation)

Christian Friis Bach has published a large number of books reports and ar-ticles in newspapers and magazines Please see wwwfriisbachdk for details

15CSQ

In December 180 Degrees Consulting (180DC) finished its third round of pro-bono social impact consulting projects with even more success than in previous semes-ters All consultants showed dedication and motivation by spending a large amount of their spare time to work with socially con-scious organizations in order to help them to improve their social impact

An overcrowded lecture room during the 180DC information meeting at the begin-ning of the semester and the high number of applications to join the consulting projects were evidence of great interest in 180DCrsquos activities Out of the 139 applicants the top 45 were selected in a two-step recruitment process and grouped into teams of five to work on the nine exciting projects lined up in the Fall 2012 semester

All projects involved Danish-based organi-zations with a strong focus on either social andor environmental sustainability The projects however differed vastly One of the consulting teams assisted Engineers Without Borders and Action Aid in developing an investment rationale for the cultivation of farmland belonging to an Indian orphanage as well as assessing the social return of this investment

Another 180DC team worked with Hertha an organization focused on the reverse in-tegration of ordinary people into a commu-nity of mentally challenged Hertha needed assistance with improving their external reporting setup to stakeholders which was achieved by developing useful tools for the organization to measure both the social and cultural impact of their activities Yet another team of consultants helped the International Rehabilitation Council for Torture Victims optimizing their internal processes and thus helping them pursue their vision of a world without torture

During the consulting period 180DC or-ganized several training sessions for the con-sultants of the organization hosted by pro-fessional consultancies and each team was assigned a mentor with expertise specific to the given project The highlight of the semes-ter was the Final Event at which all of the teams presented their projects in front of a large audience comprised of all 180DC con-sultants the 180DC board members as well as mentors clients and a jury consisting of representatives from PwC DI CBS Sustain-ability Platform BCG and VSFA The juryacutes task was to evaluate the consulting projects based on their written report and oral pres-entation Based on the creativity feasibili-ty and impact potential of the projects the chairwoman of the Jury Birgitte Mogensen PwC announced the winner of the 180DC Social Impact Award Team Engineers With-out Borders

All of the 180DC board members have throughout the semester been working hard to constantly improve the organization in or-der to ensure a high quality of the services provided to clients and of the learning ex-perience provided to students With a new extended board in place 180DC is looking forward to continue its successful journey in the upcoming semester which kicked-off in January with two international projects in Chile and Sierra Leone ndash thanks to the sup-port of the CBS Sustainability Platform

by Nadine Koumlcher

UPDATE FROM 180DEGREES180 Degrees Consulting is an international student consultancy that works with growing non-profits helping them achieve a greater social impact

Contactphone no +45 6061 6399e-mail cph180degreesconsultingorg

Updates from partner organizations at CBS

16 CSQ

The past semester was a good one for 360deg Students for Sustainability Not only did our organization grow to nearly 50 members this fall but we were also nominated in the Student category for the CSR Awards 2012 ndash the second year in a row You can watch the nomination video here httpwwwyoutubecomwatchfeature=player_embed-dedampv=6J5mwn7TcYI Although we didnrsquot win the award representatives from 360deg got the chance to participate in the conferencersquos many seminars ndash and not least hear Bill Clin-ton speak360deg also took it to another level with 360deg Academy The project was a huge success with over 250 people signed up for the ex-tracurricular course It shows that there is a clear interest in CSR and sustainability among the students and that 360deg Students

for Sustainability fill an important gap in providing the students with a forum where they can discuss such issues with each oth-er professors and practitioners We have al-ready started planning Academy 2013 which will run in the fall In addition to 360deg Academy 360deg organ-ised several successful events and seminars the past semester 360deg Develop Prize was kick-started in November and has already found some dedicated social entrepreneurs who will join the coming events this spring as well as the final competition 360deg also co-organized events on microfinance (with Danish Forum for Microfinance) and fair-trade (with Fairtrade Maeligrket) We also created a nice Christmas spirit at the CBS campus with our annual Christmas event featuring cookies a fairtrade Christmas tree

and do nations to Red Cross and Verdens SkoveWhile it is important to look back this semester 360deg is focusing on the future By the end of the semester 360deg Students for Sustainability will have changed its name to oikos Copenhagen After becoming part of the international student network oikos in 2011 we believe that changing our name will emphasize our international commitment and will show the students the many oppor-tunities that are available to them through the oikos network You can read more about oikos International and the other 36 chapters around the world by visiting wwwoikos-in-ternationalorg

Christina EkChairwoman of 360deg and soon-to-be President of oikos Copenhagen

UPDATE FROM 360 STUDENTS

360deg Students for Sustainability

360deg Students for Sustainability is a non-profit student organization based at CBS working to enable and inspire students to make responsible and sus-tainable decisions in their future lives and professional careers

Contact Christina Ek tlf 42 39 99 54 mail info360studentsdk

Live show at CSR Awards 2012

(Picture from csrfondendk)

Updates from partner organizations at CBS

17CSQ

UPDATE FROM PRME

New approach by the Curriculum Development

projectThe commitment to the initiative of the UN Principles for Responsible Management Education (PRME) at CBS has been further sustained via a more targeted approach to the development of the curriculum at the undergraduate programmesAs part of the adherence to PRME CBS has launched a Curriculum Development project to integrate responsible management prac-tices into the study programmes and also make these practices more explicit This is an extensive process that recently has been even more focused on the individual content of each of the study programmes A more cus-tomised approach will only strengthen the analyses of syllabi for each core course and increase the content of explicit responsible management

ldquoThe current restructuring of the Service Management bachelor programme and the development of three specialised lines of ed-ucation offer a great opportunity to align the curriculum development with the Principles for Responsible Management adopted by CBS Currently the CBS Office for Respon-sible Management Education and faculty members from CBS are working to identify opportunities to integrate responsible man-agement education into the educational programmerdquo Assistant Professor Adriana

Budeanu BSc in Business Administration and Service Management CBS In collabo-ration with study boards students and fac-ulties the Curriculum Development project enables a targeted approach to the integra-tion of responsible management content in order to comply with the overall structure of each study programme

Anti-piracy strategy from Maersk was a winning strategy

In collaboration with the CBS Sustainabili-ty Platform the CBS Office for Responsible Management Education arranged an internal competition to identify the best team of stu-dents to represent CBS at the International Business Ethics Case Competition (IBECC) in San Diego later this year The students had to select a business case entailing a challenge with legal financial and ethical aspects and propose a solution to this challenge A jury found the winning team based on a live presentation followed by a QampA session that took place in November 2012

The winners of this unique opportunity were the graduate students Bjoslashrg Ilsoslash Klinkby (MSc IBP) Adam Eithz Kromann (MSc BAP) and Anne Cathrine Gaarde (MSc IBP) They presented a business case on the anti-piracy strategy of Maersk

Winners of the Business Ethics Case Competition

Updates from partner organizations at CBS

18 CSQ

THESIS PARTNERSHIP BETWEEN GRADUATE

STUDENTS AND COMPANIES MATCH-MAKING

On behalf of CBS the Office for Responsible Management Education invited companies and organi-sations to participate in a match-making event with graduate students who were looking to write their thesis within the field of sustainability or social responsibility

Prior to the event that took place on the 6th of February ambitious graduate students were matched with eight very diverse organ-isations all wanting to explore challenge and develop CSR related activities The selection of organisations ranged from Center for So-cialt Ansvar who sought the studentsrsquo advice on how to revitalise their social concepts in corporation with the civic public and pri-vate sector to Wonderful Copenhagen that engaged the students in their aspirations of

retaining Copenhagen as a leading ldquogreenrdquo conference destination This diversity mere-ly reflected the broad-based educational standards that are embodied in the conducts of CBS and enabled students from all study areas to participate With the meeting as the focal point of the event the aim was to in-troduce more students and companies to the possibilities of a thesis partnership On that basis it is the hope that students and organisations will take the initial meeting

further into a collaboration resulting in a thesis that with an analytical and reflected approach hopefully provides valuable insight for all parties The event was indeed a unique opportunity for the students to get the or-ganisationsrsquo unremitting attention but also the organisations expressed their excitement about how the theoretical knowledge and skills of the students could be combined with the specific issues reaching beyond everyday operations of the organisation

PRME

Lene Mette SoslashrensenTel +45 3815 2651E-mail lmsiklcbsdk

PRME Manager

Johanne Duelund Kramer from Wonderful Copenhagen and CBS student Joseacute Bandeirinha from International Marketing and Management

Updates from partner organizations at CBS

19CSQ

A value adding partnership

The match-making event was kick-started by Professor Andreas Rasche who gave a short speech on trends in the field of sustainability and social responsibility Likewise thesis con-sultant Vibeke Ankersborg rounded off the event by guiding both students and organisa-tion representatives in the right direction of obtaining a value adding thesis partnership

By facilitating integration of the theoretical knowledge pool at CBS with real-life busi-ness cases and their challenges this initiative underpins CBSrsquos Responsible Management Education profile ldquoAddressing societal chal-lenges in interaction with business is a key element in our Business in Society strategy and we hope to set up a similar initiative in the futurerdquo Lene Mette Soslashrensen PRME Manager CBS

Being able to engage in a thesis partnership gives us the opportunity to get new and fresh eyes on the challenges and opportunities we face in the aspiration of sus-taining Copenhagenrsquos position as marked leader within sustainable meetings and events ndash and the other way around we see it as a positive contribution to help young students to gain in-depth knowledge on how we actually work with sustainability in practicerdquo

Ulrika Maringrtensson senior communication consultant Wonderful Copenhagen

ldquo

Case Companies

20 CSQ

Update from CBS Centre for Corporate Social Responsibility

cbsCSR celebration10 years anniversaryOn Thursday November 22 2012 CBS Centre for Corporate Social Responsibility (cbsCSR) celebrated its 10 years anniversary The guest list included prominent guests from both academia and the corporate world Head of Department Dorte Salskov-Iversen President Per Holten-Andersen and cbsCSR Director Esben Rahbek Pedersen bid all a warm welcome to an afternoon of inspirational talks and celebration of the Centre

Susanne Stormer followed and initiated her presentation with a brief recap of Novo Nor-diskrsquos history and continuous development of corporate sustainability practices She em-phasized how Novo Nordisk with the help of Professor Ed Freeman has prioritized a close relationship with their stakeholders and learning with them as a means to reach a higher level of corporate sustainability An additional key take-away from Susanne Stormer was the notion of transformational partnerships She argued that corporations NGOs and other stakeholders should use each other to form transformational partner-ships instead of just transactional partner-ships She claimed that in order to address and solve the problems in todayrsquos world the issues have to be addressed at the roots ndash in cooperation with stakeholders

The program had been divided into two ses-sions Each session ended with a panel dis-cussion that gave the audience the opportu-nity to track the developmental trajectory of CSR and participate in the discussion of the future direction of CSR

In the first session which focused on the history of CSR Professor Lucia Reisch from Department of Intercultural Communica-tion and Management CBS Susanne Storm-er VP of Corporate Sustainability at Novo Nordisk and Professor Gail Whiteman from Rotterdam School of Management present-ed their perspectives on the development of CSR up until nowProfessor Lucia Reisch set the stage with an enlightening introduction to the history of sustainable development and emphasized balance on the triple bottom line as key

Professor Gail Whitemanrsquos presentation highlighted both the past and the future of CSR Her main topic was how to deal with planetary boundaries She drew attention to inherent implications of teaching sustaina-bility and CSR at a business school and ar-gued that in order for students and business executives to understand the implications of planetary boundaries and their importance classes should be taught in nature

In the second session Annette Stube Head of Group Sustainability in AP Moller ndash Maersk Simon Pickard Director General at ABIS and Professor Andreas Rasche from cbsCSR presented their views on the future of CSR

Updates from partner organizations at CBS

21CSQ

The topics in the second panel debate evolved around some of the same issues as in the first panel debate The audience was very interested in the educational aspect of CSR and sustainability and a discussion fol-lowed concerning the issues of lsquopreaching to the convertedrsquo Research shows that 75 of CSR courses are not mandatory 1 thus those students and executives who have a natural interest in CSR and sustainability enroll for these courses The speakers agreed that this posed a challenge for the future and that business schools might have to re-invent themselves in this regard They stressed that it is crucial that CSR and sustainability courses become mandatory Also the prac-titioners advocated in-company learning They set forth the argument that it may be a long time before current students will have sufficient impact on the corporate sector but also because the corporate sector and the ac-ademic world can learn from one another

Sum-up of key perspectives for the future

So how has lsquothe business of business really changedrsquo and in what direction From the afternoonrsquos discussions there were two recur-ring topics Susanne Stormer briefly touched upon it when she talked about transforma-tional partnerships Annette Stube and AP

Annette Stube set forth the argument that ldquothe business of business has really changedrdquo She gave an example of how AP Moller ndash Maersk should use their position in the shipping industry to facilitate substantial changes Simon Pickard supported her argu

ment stating that it is not possible for single corporations to make a difference but that clusters of corporations have to collaborate to push changes If corporations do not join forces they risk only making incremental changes Simon Pickard further argued paraphrasing Andrew Pettigrewrsquos argument that in the course of time there has been a conceptual change in the argument for CSR He pointed to the fact that it started out as a moral or philanthropic enterprise and is now perceived as a governance case Simon Pickard pointed to the fact that the future of business is to create shared value ie creat-ing economic value that also creates value for society at large Building on these re-marks Andreas Rasche discussed the future of standards and codes in the field of CSR Emphasizing a variety of case examples he argued that while standards have proliferated in recent years eg certification schemes in the global coffee and apparel industries there is a need to more actively manage the co-ex-istence of these initiatives in order to avoid overlap Rasche also highlighted the pivotal role of consumers who need to acknowledge standards and labels as market signals and factor social and environmental concerns into purchasing decisions

Moller ndash Maersk has it as an integrated and crucial part of their CSR policies and Simon Pickard highlighted how instrumental the-ories are no longer enough The concept of shared value is inescapable and it is what the lsquobusiness of businessrsquo in the early 21st centu-ry is really about

A second topic which also attracted a lot of attention was the importance of continuous education of both lsquothe convertedrsquo but also of opponents of CSR and people who are not aware of the importance of CSR and sustain-ability In-company learning was depicted as a crucial part of the development of CSR and sustainability however a physical change in the teaching settings is also required to meet the approaching environmental challenges

Centre Director Esben Rahbek Pedersen concluded the conference and the winners of the prize of 25000 DKK to participate in the IBECC case competition in San Diego in May 2013 were announced and the celebra-tion of cbsCSR ended with a reception

Thank you to all the speakers moderators and guests for an inspirational afternoon

By Elise Lind Jacobsen and Line Pedini Rasmussen cbsCSR

1Rasche A Gilbert DU and Schedel I (2013) Cross-Disciplinary Ethics Education in MBA Programs Rhetoric or Reality Academy of Management Learning and Education (forthcoming)

Three of the keynote speakers (from left) Professor Gail Whiteman from Rotterdam School of Management VP of Corporate Sustainability at Novo Nordisk Susanne Stormer and Sustaina-bility Professor at CBS Lucia Reisch

Simon Pickard Director General at ABIS

22 CSQ

UPDATE FROM

CBS GOES GREENThe Green Associate Program

2012 was an exciting year for CBS Goes Green with many great achievements One of the new initiatives that was launched in 2012 was the Green Associate Program Here CBS students were able to volunteer in a program to support sustainable behavior among students and staff at CBS More precisely 25 CBS stu-dents put in 30 hours of voluntary work to help with the planning and execution of Green Week - a week consisting of a lineup of successful companies shar-ing their sustainable initiatives and thoughts The overwhelming interest in sustainability and sustain-able business among the students has made it evi-dent that the Green Associate Program should con-tinue in 2013 We at CBS Goes Green look forward to this as well as all of the other initiatives we will be conducting in 2013

The following is an extract of an article that three of the associates wrote themselves This extract shows the associatesrsquo own experience working with CBS Goes Green

What does it mean to be an

associate with CBS Goes Green

In Week 39 CBS turned into a plethora of green initia-tives and events in order to make CBS reach its sustaina-bility goals for 2020 Both students and employees at CBS were asked to become a Green Ambassador to help CBS be smarter greener and better

But many of you may wonder how it is to be one of the people behind the scene As associates we have been help-ing out before and during Green Week in order to establish an event that would reach all corners of CBS This has re-quired both time and effort in order to make things work out but in the end there are also a lot of gains from being an associate

Firstly as an associate you get to expand your network You get to work with people from different studies countries and ages and you also get to talk to many different people while promoting

A bonus about being an associate is also that you get an official certificate which can be attached to your resume This shows that you have put an effort into making Green Week happen

Furthermore by being an associate you feel like you have a larger impact on making CBS a greener place Instead of being an ambassador and only doing the things you can do you get to be the person who raises awareness about sustainability You may influence people to make the right choices and it makes you feel good

Lastly it also gives you a feeling of responsibility because you work under an official part of CBS CBS Goes Green ndash a unit with a clear agenda and a clear vision

By Michael Nguyen Christian Charity and Christian-Philip Lundahl

Updates from partner organizations at CBS

23CSQ

International conference on sustainable biofuels presents latest research

By Barbara Louise Bech Department of Business and Politics CBS

EU Renewable Energy Directive

In 2009 the EU RED set a mandatory target for member states to use a minimum of 10 renewable energy sources in the transport sector by 2020 of which biofuels is expected to be the main contributor This is part of a policy to cut greenhouse gas emissions promote the green technology sector develop rural areas and reduce dependency on fos-sil fuels Due to increasing controversies claiming lack of sustainability in first generation biofuels based on food crops recently the EU pro-posed an amendment to the Directive limiting the share of first gener-ation biofuels to 5 of the targeted 10

The debate quickly zoomed in on the sustainability criteria as outlined in the EU RED drawing attention to the lack of social safeguards The general consensus is that the concept of sustainability is too narrow-ly defined Several case studies (Mozambique Brazil and Indonesia) show that basic labor and human rights of local populations are not protected by RED and the directive is more viewed as an environmen-tal safeguard This discussion raised questions in regard to the effects of RED globally (eg sustainable production in developing countries) and in this context whether EU legislation can have a lsquotrickle downrsquo effect on national standards of nation-states outside the EU In this re-gards one could ask if enforcement at the local level falls under the re-sponsibility of the EU but since first generation biofuels are produced outside the EU it is an important issue for European consumers ndash al-though interest is currently mainly driven by NGOs

On November 19-20 2012 the Copenhagen Biofuels Research Network (COBREN) held an international conference on sustainable biofuels inviting 30 research-ers from around the world to present and discuss their latest research During the two day conference focus was the sustainability criteria of the EU Renewable Energy Directive (RED) voluntary certification schemes and their impacts on sustainability and social safeguards in producer (developing) countries in particular and governance complexity of the biofuel system which has grown considerably over the past decade

Rough guide to biofuelsThere are two types of biofuels biodiesel and ethanol First generation biofuels (1G) are based on food crops and feed stocks such as palm oil soybean and rapeseed used for the production of biodiesel and sugarcane and corn for ethanol The produc-tion of biofuels increased heavily in the 2000s questioning the sustainability of 1G A number of issues have been claimed as key impediments to sustainable biofuel production such as deforestation competition with food production and increasing food prices loss of biodiversity lack of social and environmental safeguards and indirect land use change (ILUC) These contro-versies have led to a call for the promotion of second generation biofuels (2G) which are typically based on agricultural waste (eg straw) plants and forestry residues (also called lignocellu-losic biomassmaterials) However the immediate problem is that there is yet to be developed a market for 2G as they are more costly to produce (require longer and more complex production process)

CBS Sustainability Platform co-director and organizer of the COBREN conference Stefano Ponte doing a presentation

Event

24 CSQ

Voluntary certification schemes

In relation to how standards and certifications can impact sustainable biofuel production discussions pointed to the important difference be-tween mandatory and voluntary schemes As the controversy of sus-tainable biofuels in particular first generation is rolling out special attention has been given to biofuel production competing with food production ILUC value of emissions reduction and environmental and social issues This have off sprung a proliferation in private certifi-cations and during the conference it was discussed intensely whether these schemes have an actual effect on sustainability Depending on the point of view certifications can fill out the holes in legislation and act as a tool to force companies to comply with sustainability crite-ria However the development processes of new certifications may not be inclusive of relevant stakeholders (eg representatives of local populations) Additionally the nature and governance of the networks steering these processes is not always transparent and may favor one interest over the other This intense discussion led to the question of the purpose of certifications Can we use them for anything other than as a CSR PR tool as long as consumer awareness is as low as it is and how do the different regional drivers influence sustainability as a concept The answers to these questions are not easily found and it will be interesting to observe the future development and partnership between public and private sector

Governing the biofuel industry

Within the past decade biodiesel production has risen from below 30PJ in 2000 to 572PJ in 2009 globally and fuel ethanol production has increased from 340PJ to 1540 PJ respectively As the market expands more actors eg governments international organizations civil soci-ety and NGOs private sector networks and companies and profes-sions (biofuel experts and consultants) get involved and play different roles to promote their own agendas Being an emerging industry the structure of the biofuel system shows hybrid forms of governance with many actors As controversies of biofuelsrsquo sustainability develop more issues are added to the agenda giving life to more actors and interests in the governance structure Research shows a shift in power balance as private companies and NGOs increasingly push the agenda The dis-cussions during the conference centered on the complexity of sustain-ability issues calling for mixed governance responses and governance instruments such as standards and certifications which in return need to be followed up with endorsement instruments Given these com-plexities the question is whether the biofuel industry is too difficult to govern as long as the governing systems (for instance the EU) cannot accommodate expectations of all stakeholders

Indirect land use change (ILUC)ILUC is the unintended consequence in terms of more carbon emis-sions due to land use change around the world induced by the expan-sion of croplands for biofuel production When land that could be used to grow food and feed crops is used to grow energy crops this leads to existing agricultural production moving to another area or country where land is converted When this land is cleared and converted to cropland and because natural lands (rainforests and grasslands) store and sequester carbon in their soil and biomass a net increase in GHG emissions can occur Due to this change in the carbon stock of the soil and the biomass ILUC has consequences in the GHG balance of a biofuel Adding to this complexity models for ILUC calculations are not mainstreamed and thus difficult to assess internationally

25CSQ

Mellemfolkeligt Samvirke (MS) or Action Aid Denmark is a Danish NGO founded back in 1944 The

organizations key objective is to fight poverty by ensuring greater political influence for the worldrsquos poor and margin-alized at the local national and international levels MS works to bring about long-term development in the worldrsquos poorest countries focusing especially on education co-

operation and the ability to organize MS mainly works in Africa Read more about the organizationrsquos work

at wwwactionaiddk

Action Aid

A private sector view on the future of sustainable biofuels

By Barbara Louise Bech Department of Business and Politics CBS

nergy security continues to be an eminent concern in a world of finite resources For a long time biofuels have been viewed as

one of the key solutions to replace our dependency on fossil fuels and battle climate change but in recent years controversy has contested the sustainability of first generation biofuels based on food stock Issues such as lack of environmental safeguards causing loss of biodiversi-ty and deforestation and lack of social safeguards ensuring land and labor rights in producer (developing) countries have been claimed as key impediments to sustainable biofuel production Critical observers also argue that the emission savings of biofuel use in compar-ison to fossil fuels can become much smaller (or even disappear) when indirect land use change (ILUC) is included in the calculations Furthermore bi-omass production from food stock is argued to compete with food production and in-creasing food prices

The Danish NGO Action Aid has been engaged in biofuels since 2008 and is par-ticularly involved in protecting womenrsquos rights and preventing land grabs in de-veloping countries ldquoWe are very concerned about land use when it comes to first genera-tion biofuels This relates both to the people who are dependent on the land and to food security We rarely see good combinations where the local populationrsquos needs are taken into consideration The energy crops grown on the local farmerrsquos land donrsquot benefit him and local consumption is essential for developmentrdquo explains Kirsten Hjoslashrnholm Soslashrensen political advisor Action Aid Denmark

It is therefore believed by many that second generation biofuels is the only way forward to avoid competition with food and avert ILUC Next generation biofuels is based on lignocellulosic biomass such as agricultural and household waste and forest residues The Biorefining Alliance represents a cluster of leading Danish companies within the renewable energy sector with an ambition to promote second gener-

ation biofuels and make Denmark a world leader of technology and bi-ofuel productionldquoDenmark has very strong competencies in green tech and as a society we have put a lot of money in its development This is go-ing to be a huge deal globally so we are asking whether Denmark wants to be a customer or a producer What we are working for is of course that we become a lead exporter of technology but also that Denmark produces second generation biofuels commercially Even though we are a small country we cannot settle on selling know-how Denmark also needs to have some industrial productionrdquo says Anne Grete Holmsgaard di-

rector of Biorefining Alliance In her view Denmark needs to keep a firm grip on developing innovation or it will slowly but

steadily move out of the country In this regard she views sustainability criteria for biofuels as an in-

novator and not a hindrance

The Sustainable Biofuels Network (SBN) is another cluster of private companies trying to facilitate the transition from fossil fuels to biofuels in the transport sector For the aviation industry biofuels are considered

to be the only alternative to fossil fuels and the industry firmly believes that biofuels will

survive according to Robert Arendal chairman of SBN ldquoThe aviation industry has set very clear

guidelines for the use of biofuels We are not going to use food based biofuels and we will minimize the use of fresh

water By 2050 our target is to use 50 biofuels in the global aviation so we really need to move fastrdquo he explains adding that living up to sustainability criteria includes being careful about where biofuels are produced ldquoBut it should be produced all over the world and close to the 1600 airports worldwide that account for 95 of all aviationrdquo

he technology for second generation biofuels is already here but the problem is that production costs are too high and there is no market As long as prices are not competitive with conventional fuels it will be difficult to move forward ldquoOne might ask why there is no market The customers are certainly there so if I was in the business of producing

E

As part of the COBREN international conference on sustainable biofuels private sector civil society and academia were invited to give their views on sustainable biofuels at a roundtable discussion at an open public seminar held at DIIS November 19 2012

Event

26 CSQ

SBN is a ldquobreeding groundrdquo and ldquoknowledge centerrdquo for the biofu-els industry where synergies are created between all parties within

the biofuels sector SBN focuses in promoting supporting and enabling the commercial development and use of clean and sustainable biofuels for Heavy Road Transportation Shipping and Aviation Emphasis is put on the importance of global standards for biofuels with local as well as international institutions and decision makers to encourage con-

structive guidelines and rules for the development of biofuels SBN adheres to EUrsquos sustainability criteria SBN is a non-profit asso-

ciation established in 2008 Visit their website for more info at wwwsustainablebiofulsdk

Sustainable Biofuels Network(SBN)

The Biorefining Alliance (BA) was founded December 2011 by DONG Energy Novozymes Haldor Topsoslashe and the

Danish Agriculture and Food Council and is a three-year project to politically promote Denmarkrsquos position in the entire value chain from residues to bio-based products The Alliance has set forth a number of recommendations to achieve a sustainable Danish bio-economy Among other these include (i) that all organic

waste be considered a resource (high-value recycling and storable energy) (ii) reducing the cost of manufacturing 2G

bioethanol and (iii) contemplating the establishment of a national center for sustainable materials

Biorefining Alliance

second generation biofuels I would get started right awayrdquo says Robert Arendal The Biorefining Alliance is working on lowering the costs and recommends a stronger regulatory framework with binding targets as it has been done for the wind industry ldquoThere already is a market for first generation biodiesel which is the least sustainable biofuel We need to make a market for second generation biofuels and we know that binding targets work I donrsquot think it is possible to create a market for the lsquogreen consumerrsquo as you have one for organic food products but I believe that a niche market for HRT (Heavy Road Transport red) such as public bus transport could be a supplementrdquo concludes Anne Grete Holmsgaard

How the future for sustainable biofuels will shape depends on political will to create a market for second generation and the ability of private sector to innovate and bring prices down Oil production is claimed by some to already have peaked and exploring new geographical areas for extraction could be as costly as kick-starting the market for second generation biofuels although much less sustainable As the American ecologist and environmentalist Bill McKibben wrote in his book ldquoDeep Economyrdquo back in 2007

Even before we run out of oil wersquore running out of planetrdquoldquo Bill McKibben

27CSQ

The Transparency-Sustainability NexusA workshop on the practices meanings and tensions of organiza-

tional transparency

n December 5 2012 the Department of Intercultural Communication and Management (ICM) hosted an in-

ternational workshop supported by CBS Sustainability Plat-form and ICM The workshop was organized by Oana Brindusa Albu Mikkel Flyverbom and Hans Krause Hansen respectively PhD Fellow and Associate Professors at ICM The idea of the workshop was spurred by the observation that while ideals of transparency like lsquoopennessrsquo lsquodisclosurersquo and lsquoreportingrsquo are pro-liferating these years the actual construction of transparency within and across organizations is poorly understood Most re-search on transparency is highly normative if not celebratory just as popular discourse about transparency not least in the areas of sustainability and corporate social responsibility is obsessed with ideals of accountability performance and effi-ciency and pervaded by an optimism currently pushed to its extreme with the explosion of new media technologies

But the truth is that we generally know very little about the implications of ideals of transparency when translated into practice in specific issue areas and organizational contexts Importantly each of the contributions to this workshop clear-ly suggested that the contemporary politics of transparency is much more complex contradictory and dynamic than tradi-tionally recognized All papers examined various aspects of the contemporary obsession with transparency and specifically the increasing use of disclosure techniques within and around or-ganizations the rationales or myths underpinning these meas-ures their intended and unintended consequences including implications for identity-making management and govern-ance practices

Clare Birchall initiated the workshop with a paper titled lsquoThe Cultural Politics of Disclosurersquo highlighting how transparency has been positioned as a superior form of disclosure in popular management and organizational literatures and in policy docu-ments In her account the growing preference for transparency is a consequence not only of the positive qualities seen to be intrinsic to transparency itself but also a response to the per-ceived negative characteristics of other forms of disclosure such as gossip scandal and rumor Lars Thoslashger Christensen (with co-author Joep Cornelissen) then analyzed transparency as one of the foundational myths of modernity myths understood here as descriptions of the world in a narrative form which seeks to produce meaning and direction for a community and its members Such lsquoMyths of Transparencyrsquo sustain numerous organizational practices ndash including openness information provision and auditing But as argued by the authors there are conflicting evidence regarding the capacity of such practices to create insights and understandingThat aspirations and techniques of transparency can have seri-ous repercussions was demonstrated by Peter Skaeligrbaeligk (with co-author Mark Christensen) in the paper entitled lsquoAuditing and the purification of blamersquo which analyzed how auditing auditing practices and institutional entities including the po-liticized environments surrounding them are mobilized and participate in blame games and allocation In his paper titled lsquoQuantification transparency and the costs of reassurancersquo Henrik Vollmer analyzed various dimensions of the role of nu-merical records and signaling in generating transparency trust and mistrust

By Hans Krause Hansen Department of Intercultural Communication amp Management

Event

O

28 CSQ

Some of these aspects were also touched upon in the paper lsquoDisrupted Disclosures The Politics of Visibility and Surveil-lance in the Extractive Industriesrsquo by Hans Krause Hansen (with co-author Julie Uldam) which explored the wider field of visibility and surveillance in which contemporary transpar-ency policies are unfolding with examples from the extractive industries Oana Brindusa Albu in her lsquoTransparency and the organizational self everyday politics of identification in Cooperativesrsquo examined the paradoxical effects of values and practices of transparency on collective identity formation pro-cesses drawing upon her ongoing multi-sited fieldwork in co-operatives Under the heading of lsquoThe Improbability of Secrecyrsquo Mark Fenster analyzed the intersections of secrecy and trans-parency with examples from the US government and its efforts to control information which according to the author does not necessarily stop the flow of information Finally Mikkel Fly-verbom and Christina Garsten examined lsquoThe sway of (big) data ndash calculations and advocacy in the name of transparencyrsquo focusing on the operations of data-based forms of corporate lsquotransparency evangelismrsquo and advocacy through revelation including examples from Center for Global Development and Google

In all the workshop was highly successful in investigating not only the historical and mythical foundations of transparency but also the different practices and forms of transparency that currently shape organizations and a wide variety of issue areas It also provided a reminder of the usefulness of investigating a concept of transparency in relationship to a host of other con-cepts such as secrecy myth gossip blame surveillance visi-bility identity information and knowledge The organizers of the workshop wish to thank all workshop participants for their valuable contributions and the CBS Sustainability Platform and ICM for their support

Hans Krause Hansen

Mikkel Flyverbom

Oana Brindusa Albu

ASSOCIATE PROFESSORPHD (ICM)

ASSOCIATE PROFESSORPHD (ICM)

PHD FELLOW (ICM)

29CSQ

Louise Lyngfeldt Gorm Hansen is a PhD Fellow at the Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) She has a back-ground in Chinese Studies from Copenhagen University (BA) the Asian Studies Program at CBS (BSc) and in International Business Stud-ies and Sustainable Business (MSc) from CBS

The aim of her cross-disciplinary PhD project is to explore how the Chinese hydropower sector works with environmental sustainability and more particularly how the concept is understood and performed in the planning phase of a major dam project in the southwestern Chinese province of Yunnan

The aim of the project is to gain a deeper under-standing of how Chinese firms in the renewable energy sector such as hydropower companies understand and value sustainability as well as how such firms tackle the increasing pressure to deliver socially and environmentally balanced solutions to one of Chinarsquos major challenges lowering CO2 emissions in a time with rapidly rising water and energy demands Theoretically the project draws on - and aims to contribute to ndash a combination of Asian Studies and Science and Technology Studies

PHD FocusLouise Lyngfeldt Gorm Hansen

HYDROPOWER

SUSTAINABILITY

30 CSQ

HYDROPOWER

SUSTAINABILITY IN

CHINAy PhD project combines two of my main research interests China and

environmental sustainability I have studied China for a number of years mainly because of an interest in how the Chinese view sus-tainable development So since finishing my masters I have known that I wanted to study how China plan to tackle a sustainable tran-sition in the years to come I saw my chance when CBS announced PhD scholarships in

DanishEuropean-Chinese social science research in collaboration with the newly es-tablished Sino-Danish Center for Education and Research (SDC) and started my PhD in October 2011My PhD project focuses on the Chinese energy sector more specifically the rapidly growing part of the energy sector engaged in renewable energy Here I examine Chinarsquos second largest source of electricity gene-

eration hydropower In recent years China has become increasingly focused on reduc-ing CO2 emissions While some countries such as the US and Australia are decommis-sioning hydropower dams China is looking to large-scale hydropower construction as one of the solutions to a future clean energy supply This means that hydropower devel-opment plays a central role in Chinarsquos sus-tainable transition

However utilization of hydropower is con-troversial not least in China and has met increasing resistance in recent years particu-larly from Chinese and international NGOs the media as well as the scientific commu-nity Critique is most often focused on how or if social and environmental sustainability can be ensured in such large scale projects as the social and environmental impacts of large scale hydropower development are very complex and difficult to measure More gen-erally the viability of relying on hydropow-er as a future source of energy is also being questioned One of the major concerns here is the overarching issue of climate change ie glaciers shrinking and yearly water runoff decreasing This means less stable water flow for hydropower and less water for other pur-poses such as agriculture water supply for down-stream countries etc

By Louise Lyngfeldt Gorm Hansen Asia Research Centre Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) ndash sinodanishcenterdk

M

Picture from SinoHydro promotion material 2011

Research

31CSQ

In contrast to for example the wind power sector in China in which many foreign com-panies have invested the hydropower sector is dominated by a few large state-owned en-terprises Our knowledge of Chinese state-owned enterprises is still limited and there-fore my PhD project is also part of a larger research project at the Asia Research Centre with focus on Chinese state-owned enter-prises and the reform of the public sector in China

In combining these interests my PhD exam-ines how Chinese state-owned enterprises in the hydropower sector tackle the demand to expand hydropower development to help reduce Chinarsquos CO2 emissions while be-ing under increasing pressure to deliver on sustainability principles in the planning and execution of large scale hydropower pro-jects The pressure comes mainly from NGO organizations the media and the scientific community both at home and from abroad I am conducting a case study focused on a specific river in south-western China which has ndash until now ndash not been fully developed for hydropower and the plans for addition-al hydropower dams on the river are still undergoing assessments The project has continually stalled due to disagreements between Chinese government officials at all levels NGOs the media the increasingly deregulated but still state-owned Chinese hydropower companies and the scientif-ic community However the project has very recently been reopened and so will go through another round of assessments in the near future The case is an excellent example of the complexity of hydropower develop-ment decisions in China but it also highlights some of the social and environmental conse-quences of the global push to decrease CO2 emissions

China plays and will continue to play an increasingly important role globally in the years to come However the country also fac-es enormous challenges - not least regarding the environment These challenges also affect economies in Western Europe - for better or worse My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective so

that we here in Europe and in Denmark can more knowledgably and actively engage with China to help solve some of these difficult challenges that eventually affect us all In do-ing this I contribute to gain a better under-standing of the Chinese perspective on envi-ronmental sustainability that can be of use to companies wanting to engage in the Chinese renewable energy sector

My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective rdquoldquo

Picture of the case-river taken by the author in 2012

32 CSQ

FROM BLUEPRINT TO PRACTICE

ENERGY EFFICIENT CONSTRUCTION

By postdoc researcher Satu Reijonen Department of Organization CBS

In the EU almost one third of CO2 emis-sions are attributed to energy used in the construction and use of buildings (FIEC

2007) It is therefore not surprising that the construction sector has recently been subjected to a substantial amount of policy measures to combat its negative effects on climate change In Denmark the state has posed new thresholds for the energy efficien-cy of new buildings including a plan for con-tinuous improvement in the area This far the industry has responded well to these stricter performance requirements In the future re-quirements will rise to levels that are not that easily achieved in the coming years build-ings will have to use 25 less energy than in year 2008 How can these ambitious goals become business as usual

One of the most discussed ways besides add-on technologies such as windmills and solar panels to enhance the energy efficiency of a building is through an energy efficient phys-ical design In practice this means reduction of energy used for heating cooling down and lighting of the building through an optimal orientation and dimensioning of the build-ing

Integrated energy design contrary to add-on technologies can be achieved on a rath-er modest additional budget This should be good news for the sector that today is eco-nomically pressed Indeed today many low energy building projects claim to use the in-tegrated energy design method (IED) when seeking to meet the most ambitious energy related goals In this commentary I wish to discuss some challenges related to the imple-mentation of this design tool

The integrated energy design method sug-gests that one of the main problems in not achieving energy efficiency is that energy related concerns become integrated into the design process too late The method consists of two elements the first of which addresses the need to bring in energy related knowl-edge throughout the design process It sug-gests that design teams ought to be multidis-ciplinary and that architects engineers and experts should work together either co-lo-cated or in a series of workshops Further-more it suggests systematizing energy quali-ty follow-ups into the design process This is all very relevant and inspiring

Oddly enough a closer look on the actual design practices reveals that few seem to ac-tually follow the method of integrated energy design to the point This poses an interest-ing question about the challenges related to the use of such management technologies as vehicles for increased energy efficiency in construction Maybe it is about time practi-tioners and researchers ask themselves what are the boundaries of and challenges related to the use of these tools ndash and what else is required for organizing for more energy effi-cient building design processes

A revolution of relations

Integrated energy design points to the need to bring energy related expertise into the de-sign process at an earlier point In order to achieve this cooperative practices between different professional groups are advocated for Historically energy experts have most-ly been used to respond to rather advanced architectural plans Shared workshops and co-localization suggest a change in these business as usual relations But are they pos-sible and what type of changes do they ac-tually imply in order to function as wished

Research

33CSQ

Satu Reijonen is postdoctoral scholar at the Department of Organization at CBS In her on-going research project she investigates how architects and energy engineers two different profes-sions cooperate and coordinate their work regarding energy related ques-tions in construction design The ways in which relations between and roles of these professions become consti-tuted through socio-material arrange-ments are a central topics in her work Besides studies of work Satu has con-ducted research on environmentally friendly products and markets

ABOUT SATU RAIJONEN

The initiation of this type of new working forms is certainly beneficial for energy effi-cient design However for several reasons they are more difficult to make work than one would assume While it may sound rea-sonable it is after all a tall order Integrating energy related practices into an environment where different visions professions and in-terests meet and the divide between what one profession does is clearly and historically demarcated is demanding While architects need to make room for the intervention of energy experts into the creative work energy experts have to become capable of working creatively and relate to and follow the visual and aesthetic cues from architects In order to work these kind of changes in the profes-sional roles and relations have to resonate with the skills and visions of individual work-ers not only management level design strat-egies It is not surprising that organizational change scholars remind us of the possibility of loose coupling from the strategies placed at the management level (March 1981) What integrated energy design suggests is a kind of a revolution in the ways in which both the architects and the energy engineers envision their role and space of mobility

Linear tools in an unlinear design process

Integrated energy design suggests that the energy performance of the emerging build-ing design be followed up at certain points during the design process The method de-picts a rather mechanistic and linear under-standing of a design process consisting of phases within which iteration may occur While energy related issues may be dis-cussed as quality goals during these phases the method places a lot of emphasis on the check ups performed in the transition from one phase to another Design processes how-ever can also be characterized in a different manner unlinear exploratory and whirl wind type of practices where clear cut phases hardly exist (Akrich 1992 Van de Ven et al 1999) This also applies to the architectural design processes where the object of the de-sign is emergent (Yaneva 2009) This entails that the product the building may change in unexpected ways during any day of the de-sign process If this alternative description of the design processes is viable delegating energy related issues to some predetermined check up episodes may strike a false accord and indeed be contradictory with the aim of enhancing coordination and cooperation between professional groups What happens in between the predetermined checkups may very well be where the energy efficiency of the building becomes configured and where the intervention from the energy experts

would come most needed Perhaps this is why the best performing projects do not blindly follow the steps of the IED method Check ups however and no doubt play a role in verifying and making visible the energy performance for partners outside the design team

Integrated energy design as many other sus-tainability standards and guidelines make visible systematize and legitimize the ex-istence of environmental management and sustainability issues in organizations and work processes In this such way tools create awareness and legitimacy for environmental and sustainability issues The integrated en-ergy design method also suggests a possible way of thinking about what type of design practice might help us to achieve the stricter energy requirements of the future It howev-er falls short in becoming the change agent it suggests This is hardly surprising as a meth-od or a standard of any kind should only be seen as a possibility or as an opening for an inquiry of what the practice could be about Reconfiguring a well established practice is hard work and it would be foolish to trust that a design method would achieve it by itself What the method does is to alert us of the more profound changes in the pro-fessional roles and relations that is needed in order to enable the change However the method due to its rather mechanical under-standing of the design process may come to work against its own ambition of integrating energy issues into the design work In its quest for integration the method defines at which points in time the architectural and the engineering project has to be checked for its energy performance This approach may lead to bringing in energy related concerns in some artificially created points in a design process which may additionally compart-mentalize energy related issues from where the design really happens

Integrated energy design as many other sustainability standards and guidelines make visible systematize and legitimize the existence of environmental management and sustainability issues in organizations and work pro-cessesrdquo

ldquoLiteratureAkrich M (1992) The De-Scription of Technical Objects in Shaping Technology Building Society Studies in Soci-otechnical Change eds WE Bijker and J Law The MIT Press Cambridge Massachusetts pp 205-224

FIEC 2007 The impacts of buildings on climate change httpwwwbuildingsplatformeuepbd_publicationdocFIEC_Memo_p2919pdf on 1222008

March JG (1981) Footnotes to Organizational Change Administrative Science Quarterly vol 26 No 4 pp 563-577

Van de Ven A D Polley R Garud and SVenkataraman (1999) The innovation Journey Oxford Oxford Univer-sity Press

Yaneva A (2009) The making of a building A pragmatist approach to Architecture Bern Peter Lang

More about integrated energy design(IED)

httpwwwintendesigncomosloIntendnsfAttachmentsGuideline_Version_2pdf$FILEGuideline_Version_2pdf

34 CSQ

The climate challenge in

shipping

ldquoGlobal shipping faces two major challenges both of which are caused by its reliance on fossil fuelsrdquo

By Reneacute Taudal Poulsen Department of Innovation amp Organizational Economics

RENEacute TAUDAL POULSEN

ASSOCIATE PROFESSOR DEPARTMENT

OF INNOVATION AND ORGANIZATIONAL

ECONOMICS COPENHAGEN BUSINESS

SCHOOL

orecasts show that the shipping indus-tryrsquos CO2 emissions will most likely continue to rise in the next two to

three decades as demand for world sea-borne trade will expand At present global shipping accounts for approximately 33 per cent of global CO2 emissions but this share will most probably increase in the coming years if many onshore industries succeed in their aims of reducing emission levels

At the same time rapidly rising fuel costs put heavy strain on shipping company budg-ets Historically and until very recently fuel costs were only a minor concern for ship-ping companies but now they often exceed 60 per cent of variable operational costs Fuel savings made through energy efficiency improvements thus represent a win-win sce-nario for the shipping industry and for so-ciety at large They simply make good sense for everyone

Despite the strong incentives for fuel sav-ings numerous studies have demonstrated that shipping fails to implement cost-ef-fective measures to reduce fuel consump-tion Fuel-saving technologies are readily available in the market and in many cases pay-back periods are very short (less than a year) Changes in operational habits which require few if any investments also hold a significant potential for fuel savings

Global shipping thus holds several classic examples of energy-efficiency gaps Gaps occur wherever cost-effective measures to improve energy efficiency fail to materialize The causes for energy efficiency gaps have been a favourite research topic within the field of energy economics for decades and economists sociologists and political scien-tists have been able to identify several means to bridge the gaps However within the mar-itime domain energy efficiency gaps and the climate challenge remain neglected issues Legal barriers

Shipsrsquo fuel consumption rises steeply with speed Hence slow-steaming or just minor speed reductions can lower consumption and emission levels significantly Since oil prices started to rise rapidly a few years ago shipping companies have indeed resorted to various slow-steaming practices and com-panies which succeed in this regard have been able to gain competitive advantages In other words actors in the industry are trying to bridge the energy efficiency gap However and in spite of the strong price signals from the rising fuel prices a potential for fuel sav-ing through slow steaming still remains

FNew CBS research project

A new three year research project at CBS under-

taken by Reneacute Taudal Poulsen for the Department

of Innovation and Organizational Economics will

examine the climate issues bringing insights from

energy economics and innovation management

into the field of shipping economics The project

which is financed by The Danish Maritime Fund

runs from 2012 to 2015 The project asks why en-

ergy efficiency gaps continue to occur in shipping

and how shipping companies and the maritime

industry at large can use innovative business

models and process innovation to turn the climate

challenge and the rising fuel costs into a business

opportunity Energy efficiency gaps occur both

in daily operations and when investments in new

vessels are made This article will briefly present

two examples of energy efficiency gaps from

the operational level and some of the preliminary

findings of the project

References

Jaffe AB and RN Stavins 1994 lsquoThe energy efficiency gap What does it meanrsquo Energy Policy 22 (110) 804-10IMO 2009 Second IMO GHG Study 2009 London International Maritime OrganizationMoriarty P amp D Honnery 2012 lsquoEnergy efficiency Lessons from transportrsquo Energy Policy 46 1ndash3Poulsen Reneacute Taudal 2012 lsquoEmissions and energy efficiency - the twin challenges for shippingrsquo Mercator Maritime Innovation Research and Education MarchJune 447-454

Reneacute Taudal Poulsen is Associate Professor at the Department of Innovation and Organizational Eco-nomics at CBS He is also affliated with the Centre for Shipping Economics and Innovation at CBS Reneacute Taudal Poulsen holds a PhD degree in marine environmental history from the University of Southern Denmark and he has worked within the field of maritime business studies for the last seven years He has published in such journals as Fisheries Research Business History and Scandinavian Economic History Review

His current research intersts concern the environmen-tal challenges faced by the global shipping industry and business model innovation in the maritime domain

Research

35CSQ

It is clear that shipping companies cannot fully bridge the energy efficiency gap alone In fact factors beyond the control of in-dividual shipping companies and various structural or legal barriers prevent shipping from fully realizing the slow steaming po-tential

Port congestion remains a world-wide prob-lem and causes ships to spend remarkably long periods inactive Despite the financial crisis and the large drop in shipping freight markets after 2008 many loaded vessels sit at anchor outside ports waiting for berths In some cases they wait for a few hours In other cases for days weeks or even months Instead of waiting the ships could have re-duced speeds and saved fuel And the de-livery and the loading of the cargo in port would not have been delayed in any way However in many cases shipping companies or ship operators cannot reduce speed in spite of port congestion

Educational barriers

Energy efficiency gaps in shipping are also evident when the fuel consumption levels of sister ships are compared Even though the vessels are identical and operate in the same waters studies have shown that their fuel consumption may differ by several Decisions made by the crews onboard and by managers in the onshore organizations clearly influence the level of fuel consump-tion For instance if a captain selects only very small course deviation margins when coding the autopilot of the ship the shiprsquos rudder will move frequently to keep the ship on the exact course all the time This will slow down the ship and cause higher fuel consumption than if the captain had allowed for slightly wider margins and the wider margins would not have any effect on the safety of the ship Decisions made by the commercial depart-ments eg on how to crew the vessels how to monitor vessel fuel consumption or which new equipment to install onboard may also

have a large impact on fuel efficiency and emission levels If shipping company man-agers can nurture a fuel saving culture this could potentially make a difference Since 2007 or 2008 shipping companies have in-deed started to facilitate such organizational changes but educational barriers remain a problemOnshore truck drivers are now offered fuel saving courses but fuel-saving is not a major part of the traditional curriculum in nautical schools or in the commercial education of shipping trainees For good reasons the nau-tical educations have focused on maritime safety but this has caused them to neglect the climate challenge in shipping and the is-sue of fuel saving In fact no single nauticaltext book on maritime fuel savings has yet been published and according to teachers and students in the nautical schools this serves as an educational barrier to ener-gy-efficiency improvements The technical level of education for commercial employees in shipping companies may also hinder im-provements in energy-efficiency Some com-

mercial shipping employees may not have sufficient training to fully see and acknowl-edge the consequences of their decisions on fuel consumption In short it seems that fuel awareness and the educational systems have responded more slowly to the climate chal-lenge than the rise in fuel prices may other-wise suggest

For shipping to bridge energy-efficiency gaps education ndash both nautical and com-mercial ones ndash clearly is an area to set in Here the potential for innovative solutions is both evident and pertinent Changing educational systems and awareness is no easy task bearing in mind the global nature of the shipping industry and international crewing of the world fleet It is clear howev-er that educational upgrading is necessary for shipping to effectively address the cli-mate challenge effectively

Charter parties between ship-operators and shippers state a specific time of arrival for the vessel and in order to avoid claims ships proceed to port accordingly regardless of berth availability Experiments with new more flexible charter parties which allow for slow steaming in case of port congestion have recently been made Shipping compa-nies have generally been enthusiastic about this flexibility but often shippers remain skeptical Lack of trust between shippers which need the loading of their cargoes as soon as possible and shipping companies may be a cause for this discrepancy Even in cases where the savings made from slow-steaming are split between shipping companies and shippers shippers have re-mained skeptical Port queuing systems may have a role to play here

Many ports including some of the major container iron ore coal and grain ports serve ships on ldquofirst-come first-servedrdquo ba-sis Ships only receive their ldquoticketrdquo in the

waiting line upon their arrival at the port Again lack of trust between the ship-oper-ators shippers and the port authorities may explain this phenomenon Moreover port authorities currently do not have incentives to change queuing practices because they cannot gain a share in the fuel savings made from slow-steaming

The problem is particularly strong in the major tramp shipping segments of tanker and dry cargo shipping where vessels act as ldquotaxis of the seardquo serving numerous shippers and rarely calling at the same ports If the fleet from a shipping company only calls at a particular port once a year and the compa-ny has very short-term relations to individ-ual shippers building trustful relationships between the parties remains a major chal-lenge Solving this problem and realizing the full potential of slow steaming will require systemic innovation in shipping and port systems and further studies are required to identify possible solutions

36 CSQ

The Wind turbine industry -

Emerging global innovation networks in Europe and China

The wind turbine industry has developed into a global network encompassing a large amount of diverse actors within innovation production and installation of wind turbines across the globe

By Stine Haakonsson and Julia Kirch Hollitsch Department of Business amp Politics CBS

market for wind energy Chinese actors have turned China as a location into another im-portant lsquohubrsquo in this network This has led to new forms of innovation collaborations between European and Chinese actors The result has been a complete re-configuration of the industry over the past decade In the International Business and Economic Geog-raphy literatures the development of global production networks in which lead-firms be-come orchestrators of dispersed production

enmark has traditionally played a key role as an lsquoinnovation hubrsquo and com-

panies in Denmark remain among the lead firms within the wind turbine industry Re-cently the industry has reorganized from being located predominantly in the Triad regions (mainly in Europe and the US) to becoming a globally dispersed industry This development can partly be explained by de-velopments in international and national politics Due to the growth of the Chinese

activities in globalized value chains is well established theoretically as well as empiri-cally In the globalization process lead firms relocate production activities to low cost lo-cations by off-shoring and through vertical disintegration and outsourcing to specialized suppliers Producers of wind turbines are no exception However until recently the mar-ket and innovation activities remained con-centrated in Europe and US

With the recent focus on global politics for a post-carbon society the market for wind tur-bines has experienced an immense growth and a high degree of market globalization New locations have developed into main markets One of these is China which since 2010 has been the largest market for wind turbines in the world (in capacity installed) The globalization process in the wind tur-bine can be explained by a combination of offshoring of production by European lead firms mainly through foreign direct invest-ment and establishment of domestic lead firms in emerging markets In 2010 there were four Chinese-owned companies among the top-10 producers of wind turbines as compared to 2003 where all firms on this list were from Europe and the US

D

Julia Kirch Hollitsch

Stine Haakonsson

Stine Haakonsson and Julia Kirch Hollitsch from Depart-

ment of Business and Politics CBS are engaged in the

Sino-Danish Center for Research and Education (SDC)

project on Wind Energy in China Both research on the

current restructuring of industries and firms at the glob-

al level (outsourcing off shoring global value chains)

In particular their research is on 1) the restructuring of

innovation and RampD activities into global innovation net-

works(GINs)2)thechangingroleofemergingmarkets

(ChinaIndiaBrazilSouthAfrica)intheseemergingGINs

and 3) technology transfer and capability building related

to renewable energy

Research

37CSQ

by adapting their products to the Chinese market and through cost-out development activities in the new locations primarily China

As a result the wind industry is today highly knowledge-intensive and internationalized Due to increased attention and investments in sustainable transition policies and car-bon-reducing technology China has over the past decade developed into a high prior-ity investment area for wind turbines Also Chinese companies are upgrading technol-ogy and innovation from the global firms through integration into GINs Moreover the production and innovation networks for wind energy become highly complex and consist of many different suppliers of com-ponents (blades gear boxes control systems bearings) resulting in a variety of network linkages among suppliers of different com-ponents and the wind turbine producers

From our empirical data including more than 40 in-depth interviews collected in 2011 and 2012 in the wind turbines indus-tries in China and Denmark we have identi-fied some very interesting patterns We have identified very different characteristics of the GINs established by the Chinese wind tur-bine industry and the European wind tur

Emerging Global Innovation Networks

Innovation processes are also moving be-yond the boundaries of individual compa-nies and national innovation systems Firms engage in cross-border innovation networks spanning different innovation systems which may be national regional or sectorial in or-der to stay competitive in the global econ-omy Chinese lead firms are entering this scene too The result is globally organized networks of interconnected and integrated functions and operations by firms and non-firm organizations engaged in the develop-ment and diffusion of innovations so-called Global Innovation Networks (GINs) Lead firms internationalize innovation through strategies of exploitation global generation of innovation and global techno-scientific collaborations Chinese wind turbine pro-ducers ndash acknowledging their resource and capability deficiency ndash pursue strategies of innovation network integration through strategies of global generation of innovation These firms link up with specialized Europe-an actors such as core component suppliers through partnerships and networks in or-der to tap into the technology of firms from developed countries and upgrade Mean-while European companies internationalize through exploitation strategies for example

bine industry Although Danish and Chinese actors are experiencing a re-organization of activities and establish networks and globa-linnovation strategies the result is very dif-ferent

The industry from Europe and US

The industry from Europe and the US hosts the lead firms in terms of core technology de-velopment Denmark has traditionally played a key role as lsquoinnovation hubrsquo in technology development and global lead firms such as Vestas and Siemens Windpower (previously Danish lsquoBonusrsquo) took its start already in the 1970s The core competences of the Danish wind turbine innovation system are based on large testing facilities and long track records mainly due to the long time-line of experi-ence The wind industry goes 40 years back and therefore Denmark has a good knowl-edge pool within establishing wind farms (aerodynamics minimizing power loss in energy transmission wind mapping and other installation-related technologies)

38 CSQ

that will make it possible to finance the pro-jects ldquoFrom then on our wind turbine pro-jects developed very fastrdquo(Interview Wind Engineer Chinese Academy of Sciences) Thus this law was a milestone for elevating renewables to a strategic position in China or as expressed by a European lead-firm ldquoWhat drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick offrdquo

Until the turn of the millennium Chinarsquos wind energy industry was largely built on donors acquisition of finished wind turbines and licensed technology from European companies spread on a very small scale into the local industry during the mid 1990s Chi-nese wind turbine technology has evolved from imitation reverse engineering and licensing in the 1980-90s combined with assistance from foreign consultants One example is how DANIDA funded a project in 1986 for Goldwind in Xinjiang which imported 13 units of 150 kW lsquoBonusrsquo (now Siemens Wind Power) turbines

To get beyond the stage of pure imitation several policies have been introduced with the intent to upgrade Chinese manufacturers to obtain indigenous innovative capabilities Policy programs were introduced to enhance Chinese companies to develop wind energy subsidizing wind energy RampD expenditures at varied levels over time establishing a re-newable energy fund and through the ldquo863 Wind Programrdquo under the Tenth Five-Year Plan (2001-2005) Local content require-ments were put in place in which develop-ers of wind energy projects were required to source 70 pct of the content in China These policies ndash which essentially forced foreign manufacturers wishing to sell wind turbines to the Chinese market to establish China-based manufacturing facilities ndash were only removed recently (in 2009) One result was that the foreign companies had to up-grade local suppliers of components

Due to the technological complexity many European (and hereby also the Danish) firms are vertically integrated and have most com-ponents produced in-house or with regular specialized suppliers According to these companies the different parts need to be well adjusted to each other to some extent even co-developed in order to enhance effi-ciency and the lifetime of the wind turbine Likewise the European industry has expe-rienced a concentration of actors with the result that there are only relatively few but large manufacturers in Europe (the larg-est ones are Vestas Siemens Gamesa and Enercon) Together these four companies accounted for about 35 of the global mar-ket in 2010 By seeing the wind turbine as an integrated system these lead firms aim at producing lsquothe Rolls Roycersquo model wind turbines These are strong in terms of qual-ity and standards but generally expensive These firms learn cost-out techniques from their engagement with partners in China

The Chinese Wind Turbine Industry

Today the Chinese wind turbine industry is overly competitive It entails more than 80 wind turbine manufacturers and the Chi-nese market boasts the highest growth rates internationally with an average growth rate of 968 percentages annually in the last three years Several large domestic Chinese wind turbine manufacturers have emerged within the last decade Sinovel and Goldwind take the largest share followed by United Pow-er and Ming Yang just to mention some of them As of the end of 2010 these four were A major driver for the development of the Chinese wind energy market has been the establishment of an institutional context as a comprehensive concerted policy frame-work addressing the development of renewa-ble energies This change in the institutional context was first reflected clearly in the 11th 5-year-plan (2006-2010) which explicitly linked environmental sustainability to the key goal of establishing what was called a harmonious socialist society signalling a socially environmentally and economically sustainable economy With the Renewable Energy Law from 2005 the Chinese wind energy industry really took off as it explicitly seeks to ensure that renewable energy pro-jects have an outlet for their output at prices

Technical barriers and the role of GINs for a post-carbon society

Despite high ambitions in terms of devel-oping innovative capabilities Chinese pro-ducers still produce almost exclusively for the Chinese market However Chinese wind turbine manufacturers have recently started an internationalisation process and some are approaching international markets Not least for tapping into new knowledge

Europe (and Denmark in particular) is per-ceived as a main location from which the Chinese companies can learn more A cou-ple of Chinese companies have already set up RampD centres in Denmark European firms have also initiated RampD centres in new lo-cations primarily China and India In other words GINs can be identified

Our research also points towards important barriers for GINs in the wind turbine in-dustry and for approaching a post-carbon global society Most importantly are the technological barriers intellectual property rights quality issues and issues of limited appropriability of knowledge Further the institutional framework remain relevant for displaying how the sector and the emerging GINs are embedded institutionally socially and technologically Whether actors trans-act knowledge technology and know-how through cooperative innovation activities also depends on how core the technology of a given technology is Still as the market grows in China it seems to have matured in Europe because of changing policies on re-newable energy To sustain the position as a global lsquohubrsquo and world leader in wind tech-nologies there is a strong need for support in Europe as this research really shows how fast the Chinese industry is moving One major result is how important networks are for upgrading companies and it seems that Chinese firms perform better in network strategies and manage to tap into relevant knowledge than the European firms

What drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick off rdquoldquoInterview Wind Engineer Chinese Academy of Sciences

39CSQ

Social Enterprise World

ForumNadine Koumlcher from 180Degrees recounts her experience from the

conference on

Rio de Janeiro Brazil 2012

In the numerous panel debates and parallel track discussion it became clear that Impact Investment is a hot topic among both social entrepreneurs and impact investors a diverse group consisting of corporations founda-tions and potential donors However various obstacles impede a harmonious relationship between the twoSocial enterprises face structural challenges to make themselves more appealing to im-pact investors They have to become more transparent and increase their accountability This includes improving their impact assess-ment and reporting tools However despite much discussion no consensus could be formed on how to optimally conduct im-pact assessment One of the most frequently proposed methodologies involves the use

From the 16th to the 18th of October the CBS Sustainability Platform granted me the opportunity to attend the 5th Social Enter-prise World Forum which took place in Rio de Janeiro Brazil This yearly international conference focuses on social enterprises and their effectiveness in solving social challeng-es The overall theme of the 2012 conference hosted by NESsT was ldquoSocial Enterprise Investing for Impactrdquo Thus for three days over 180 speakers and 650 delegates from 30 different countries shared their experiences regarding impact investment and discussed possibilities to attract new investment by both the public and the private sector for so-cial enterprises

of control groups Story-telling has also been men-tioned to be a powerful tool to provide investors with a proof of outcomesSocial investors are willing to accept returns just below the market rate in exchange for a social return However large profits are still expect-ed and many social enter-prises are afraid of being unable to generate them Social enterprises typically operate on a small scale and are not used to undertake large projects with huge sums of investment given to them Many are too small for social investors to be

attractive as costs are similar for small and large investments although larger invest-ments have a higher payoff

Nichole Echert the CEO of NESsT there-fore pointed out that it is necessary to align expectations between impact investors and social entrepreneurs and to be patient in establishing a relationship between the two groups The expected financial return has to be reasonable close to covering the costs of operation and social returns have to be re-ported to investors by use of clearer criteria

By Nadine Koumlcher Director of Branch Development180 Degrees Consulting Limited

ldquoSocial Enterprise Investing for Impactrdquo

Students

40 CSQ

A highlight of the con-ference was definitely the site visit to a social enterprise project in a recently pacified fave-la It brought further insights on the great variety of social enter-prises that exist in Bra-zil and their missions and struggles We visit-ed a community center at which Comitecirc para

Democratizaccedilao da Informaacutetica (CDI) uses technology to fight poverty and to stimulate entrepreneurship CDI has formed a corpo-rate partnership with Coca Cola which in the same building teaches young locals how to write a CV and find a job Talking to the young locals at the center it became apparent that an increased self-confidence and the in-spiration they get from meeting former now employed participants of the project (eg at Coca Cola) is what they valued most of being part of the class

Participating at the conference was definite-ly a unique and valuable experience I would not want to miss as I tremendously improved my knowledge in the field of social enter-prises through attending the numerous pres-entations and discussions and further met so many inspiring social entrepreneurs impact

In addition it has been stressed that the problem is not a shortage of investment capital (even though the government could promote more impact investment by for instance granting tax breaks) but how to deploy it Social entrepreneurs also have to be aware of the different advantages and dis-advantages of the various types of capital It has to fit their process of establishment and it has therefore been suggested that funds and grants are most optimal in the start-up phase to cover such costs as capacity train-ing There is generally a lack of this early stage financial support Following the initial phase strategic philanthropy money would be most appropriate before impact and final-ly equity investment is sought Furthermore new ways of investment which fit the social enterprise world have to be created replac-ing the current situation of trying to fit social enterprises into the current financial world

investors and students with a genuine inter-est in the field

Participating at the conference was definitely a unique and valuable experience rdquo

ldquo

Social Enterprise World Forum 2013 in

Calgary Canada

The TRICO Charitable Foundation in part-nership with the Social Enterprise Council of Canada and the Social Finance Forum has been selected to host the 6th Annual Social Enterprise World Forum SEWF 2013 will take place October 2-4 2013 in Calgary Al-berta The Forum will present the Canadian social enterprise movement with opportuni-ties to engage learn and share on the inter-national stage

SEWF 2013 will be a gathering of over 1000 Canadian and international delegates who are involved in the social enterprise move-ment where the blending of social and fi-nancial values is core to business Attendees will consist of practitioners (from all sec-tors) funders investors supporters elected officials and public servants from around the world

Nadine Koumlcher

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 2: CBS Sustainability Quarterly 2013 #1

2 CSQ

3CSQ

Editorial 2013CSQ1

Welcome to a new spring semester and a new issue of the CBS Sustainability Quarterly

HighlightsIn this issue we discuss sustainability issues in developing countries with the Danish Minister for Development Cooperation Christian Friis Bach and what these entail for Danish business and CBS as a business school We also introduce you to the six new Sustainability Clusters which are led by a number of engaged CBS colleagues The six clusters focus on (1) Green Innovation and New Business Mod-els (2) Sustainable Transitions in Developing and Emerging Economies (3) Governing Sustainability (4) Communicative Dimensions of Sustainability (5) Sustainability in the Post-Growth Economy and (6) Corporate Governance and Leadership for Sustainability Strategy The purpose of the Sustainability Clusters is to contribute to sharpening the definition of what CBS currently does and will do in the future on sustainability issues The Clusters will work to highlight and position sustainability competences at CBS and facilitate multidis-ciplinary collaboration

What is happening at CBS on SustainabilitySince the publication of our previous issue the Platform has facilitated a number of conferences seminars and workshops on a variety of sustainability topics ndash such as the Greening of Supply Chains Sustainability in a Post-Growth Economy Corporate Governance and Corporate Social Responsibility the Cultural Political Economy of Climate Change and Cause-Related Marketing In our January appli-cation round which is one of our three annual funding application rounds the Platform allocated seed funding to 16 new sustainability projects submitted by CBS researchers and students We can also report that the Platform now accepts smaller applications of less than 25000 kroner on an ongoing basis in order to allow some flexibility for supporting innovative ideas with a shorter time horizon We in-vite you to visit our website wwwcbsdksustainability for more details on how to apply We also want to bring your attention to the new CBS UN PRME Secretariat Progress Report which can be found at wwwunprmeorg The report showcases how CBS is making great progress on responsible management and sustainability in research education and stakeholder engagement

What is coming upThe spring and early summer will be a busy time for all things sustainability at CBS Among the guests that we will welcome for seminars are international scholars Jeremy Moon Nottingham Business School and Mick Blowfield Oxford University as well as Cass Sunstein from Harvard Business School whom we will host in collaboration with the CBS Public-Private Platform The Sustainability Platform will also welcome our first Adjunct Professor Annette Stube Head of Group Sustainability at AP Moller-Maersk with an inaugural lec-ture on 2 April And in June we will co-sponsor the Sustainability in a Scandinavian Context Conference which will bring together more than 100 international academics and practitioners working with sustainability

Thanks to the many people who have contributed to this fourth issue of CSQ Barbara Louise Bech Jenny Mead Oana Brindusa Albu Mikkel Flyverbom Hans Krause Hansen Reneacute Taudal Poulsen members of the student organizations 180 Degrees Consulting and 360deg Students for Sustainability Lene Mette Soslashrensen Marie Koustrup Frandsen Michael Nguyen Christian Charity Christian-Philip Lun-dahl Satu Reijonen Julia Kirsch Hollitsch Louise Lyngfeldt Gorm Hansen Elise Lind Jacobsen Line Pedini Rasmussen Soslashren Jeppesen Stine Haakonsson Andreas Rasche Jette Steen Knudsen Anker Brink Lund Julie Uldam Anne Vestergaard Christian Erik Kampmann Jens Froslashslev Christensen Bersant Hobdari Ole Bjerg Bent Meier Soslashrensen Christian Friis Bach Jonas Soslashdergran and Kirsti Reitan An-dersen The next issue of CSQ will be out in August As always please contact us if you would like to contribute or if you have comments to this issue and the Platformrsquos work in general

Mette Morsing Stefano Ponte Elisabeth Crone Lindingsustainabilitycbsdk

4 CSQ

In this issueCSQ updates

Updates from partner organizations

Students

Events at CBS

PHD Focus

Research

CSQ Interviews

Update 5

Research clusters launched 6-9

Past Events 41-42

Upcoming Events 43

Hydropower Sustainability 29-31in China

Social Enterprise World 39-40Forum

Jenny Mead 10-11

Christian Friis Bach 12-14

180 Degrees 15

360 students 16

PRME 17-19

cbsCSR 20-21

CBS Goes Green 22

COBREN Biofuel 23-26Conference

Transparency-Sustainability 27-28 Nexus Workshop

Energy Efficient 32-33 Construction

The Climate Challenge in 34-35Shipping

The Wind Turbine Industry 36-38

5CSQ

Update

Next application deadline for Sustainability

Platform funding is 15 May

Applications of less than

25000 DKK can be submit-

ted on an on-going basis

Call for papers Journal of Consumer Policy Special

Issue - CBS Harvard Collaboration

Call for papers Sustainability in a Scandinavian Context

Conference at CBS

activities supporting sustainability research and education at CBS including expenses in connection with workshops seminars and conferences travel visiting faculty and salary for research or student assistance but please note that the Platform is not allowed to compensate faculty with internal buyout (frikoslashb) Please remember to use the ap-plication form to be found on our website when applying And do contact us if you have any questions beforehand

It is now possible to submit applications for smaller initiatives of maximum 25000 DKK to the Sustainability Platform on an on-going basis This is done to increase flexibility and create space for facilitating sustainability in-itiatives with a more short-term perspective When applying the Platform for support please also use the application form to be found on our website httpwwwcbsdkencbs-focusbusi-ness-in-society-bis-platformssustaina-bility

The Journal of Consumer Policy will publish a Special Issue on Behavioural Economics Environmental Policy and the Consumer edited by Professor Lucia A Reisch (CBS) and Professor of Consumer Behaviour and Consumer Policy Cass R Sunstein (Harvard University and Harvard Law School USA) In 2011 the Journal published a Special Issue focusing on ldquoBehavioural Economics Consumer Policy and Consumer Law ndash An interdisciplinary Perspectiverdquo Following on this trajectory the present Call focuses on the increasingly discussed possibility of applying behavioural economics to ldquonudgerdquo consumer choice and behaviour in the domain of environmental protection The editors invite both conceptual and empirical papers with a variety of perspectives (including both ldquoprordquo and ldquoconrdquo) and from a variety of disciplines Papers have to be submitted be-fore October 1st 2013 and according to the submission and author guidelines available on the journal website httplinkspringercomjournal10603 The publication of the Special Issue is scheduled for March 2014

On 10 and 11 June the Sustainability in a Scandinavian Context Conference 2013 will be held at CBS The con-ference is intended to bring academics and practitioners together to consider sustainability in a Scandinavian context and the potential development a research paradigm dedicated to exploring sustainability in a Scandinavian context Extended abstracts of between 500 - 1000 words are due by 10 April 2013 Accepted extended abstracts will be made available on the conference website and printed in the conference proceedings Extended abstracts will be considered with regards to their fit and potential contribution to the Sustainability in a Scandinavian Context Conference 2013 and furthermore with regards to their potential contribution as fully developed articles to a special issue dedicated to ldquoSustainability in a Scandinavian Contextrdquo This special issue will be with a respected international academic manage-ment journal (to be announced in advance of the conference) that will be edited by professors R Edward Freeman Kai Hockerts Mette Morsing and Robert Strand The call for the full articles will be early 2014 Please go to the confer-ence website httpwwwconferencemanagerdkssc2013conferencehtml for more information

Since its launch in July 2011 the CBS Sus-tainability Platform has been pleased to support a number of sustainability-related initiatives across CBS departments and dis-ciplines - and we are still very interested in receiving new applications for initiatives The next round of applications is due on 15 May 2013 n this round the Sustainability Platform will support initiatives with budg-ets up to 200000 DKKThe Platform is able to support a long list of

CSQ Update

6 CSQ

Six New Sustainability

Clusters Launched at CBS The CBS Sustainability Platform is happy to announce the launch of six new Sustainability Clus-ters in 2013 With the energy of a number of CBS colleagues that have taken on the responsibility of leading the Clusters the Platform hosted a kick-off meeting in January where focus and ideas for future activities of the Clusters were discussed among the Cluster leaders

Green Innovation and New Business Models

Corporate Governance and Leadership for

Sustainability Strategy

Sustainable Transitions in Developing and

Emerging Economies

Governing Sustainability

Communicative Dimen-sions of Sustainability

Sustainability in the Post-Growth Economy

he purpose of the Sustainability Clus-ters is to contribute to sharpen the

definition of what CBS does and will do on sustainability for the future The Clusters will thus work independently with researchers across CBS to highlight and position sustain-ability competences at our business school and facilitate multidisciplinary collaboration within and beyond CBS

With seed funding from the Platform the Cluster leaders plan for a number of activi-ties over the next few years within research education and outreach working as lsquocon-necting hubsrsquo for researchers at CBS that are engaged or wish to become engaged in spe-cific thematic areas within sustainability

Clusters will develop in-itiatives within research education as well as outreach in a variety of mixes Some will focus their efforts on developing new con-tent for Sustainability teaching and integrat-ing it into new andor existing courses and programs others will focus on developing new research projects and applications for external funding involving international re-search colleagues and corporate partners Some Clusters plan to facilitate the author-ing of journal publications and books as well as summarizing relevant literature in the field and making it available to inter-ested scholars at CBS There will also be efforts to work closely with students and external stakeholders on conferences sem-

inars and workshops and to invite interna-tional researchers and practitioners to share their thoughts on sustainability Activities will naturally depend on the particular inter-est of the CBS researchers that wish to take part in the Cluster

Cluster leaders as well as the Sustainability Platform team would like to hear from you on new ideas for activities comments or questions or on whether you would like to be engaged

T

CSQ Update

7CSQ

The Cluster on Green Innovation and New Business Models focuses on discussions and challenges around the increasing problems of global warming resource scarcity and en-vironmental deterioration which have a sub-stantial and comprehensive impact on future business conditions Companies must devel-op strategies to mitigate risks from supply disruptions social unrest rising materials costs and pressures from regulators NGOs and the general public The efficient use of resources will be an important competitive parameter and the need for sustainable pro-duction and resource use will open up new opportunities for innovations in technology products services and business models

The focus of the Cluster on Sustainable Tran-sitions in Developing and Emerging Econo-mies stems from the notion that developing and emerging economies (DEEs) are one of the main engines of contemporary growth in the global economy They face massive transitions in economic social and envi-ronmental terms In order to explain how business in these countries can contribute to sustainable growth the Cluster explores (1) innovative approaches and North-South partnerships on technology co-production

This Cluster will explore and analyze theo-ries frameworks and empirical evidence on the conditions and tools for promoting and managing sustainable innovation and busi-ness models with focus on environmental issues The Cluster will seek a coordinated alignment of both technological (and prod-uct and process) development and business model innovation including market plat-forms and infrastructures

Professor Jens Froslashslev Christensen (jfcinocbsdk) and Associate Professor Christian Erik Kampmann (cekinocbsdk) the De-partment of Innovation and Organizational Economics

and transfer within clean-tech industries (2) green innovation networks and capacity building in DEEs (3) social entrepreneur-ship and social business models in DEEs and (4) sustainability strategies of global firms that have implications in DEEs (Base-of-the-Pyramid markets Sustainable Value Chains) Associate Professors Soslashren Jeppesen (sjiklcbsdk) the Department of Intercultural Communication and Management and Stine Haakonsson (shdbpcbsdk) the Depart-ment of International Business and Politics

The six CBS Sustainability Clusters will be

focused on the following themes

Green Innovation and New Business Models

Sustainable Transitions in Developing and Emerging Economies

Stine Haakonsson

Jens Froslashslev Christensen

Christian Erik Kampmann

Soslashren Jeppesen

8 CSQ

The Cluster on Governing Sustainability takes it starting point in the recent flourish-ing of private governance of sustainability initiatives Private actors such as business firms and civil society groups have created numerous initiatives addressing pressing so-cial and environmental problems both at the national and transnational levels Some of these are strictly private others are collaborative efforts with the public sector In this Cluster we are particularly interest-ed in examining corporate codes of conduct public-private partnership agreements labe-ling schemes and standard setting by mul-ti-stakeholder initiatives with a focus on (1) legitimacy and accountability processes and

strategies related to private sustainability governance (2) the effectiveness and impact of sustainability initiatives (3) the dynamics of the relationship between hard and soft law (4) the influence of the state on private sustainability governance and (5) the or-ganization of sustainability management in transnational firms Professor Andreas Rasche (ariklcbsdk) the Department of Intercultural Communi-cation and Management and Associate Pro-fessor Jette Steen Knudsen (jskdbpcbsdk) the Department of International Business and Politics

Governing Sustainability

This cluster invites for exploration of the communicative construction of sustainabili-ty across a variety of interests and stakehold-ers Organizations are traditionally under-stood as instrumental spaces for managers to produce products and processes towards a more sustainable society However increas-ingly organizations appear as social and moral spaces where the meaning and role of sustainability is communicatively negotiated and co-constructed and no definite agree-ment seems to be achieved across publics This development poses new challenges for business in their continous work to appear as legitimate participants vis aacute vis civil society the political system and other organization-alcorporate actors In this cluster we focus on (1) how communication of sustainabili-ty has become a strategic tool for managers working in business ngos and policy-mak-ing (2) how traditional and social media play

an important role in mediating issues of sus-tainability across publics (3) how marketing and branding of sustainability influences consumption and public opinon and (4) how different forms of political and corpo-rate communication (via persuasion facts dialogue etc) about sustainability raise questions about the democratic models that underpin sustainability discourses Against this backdrop the sustainability cluster brings together leading academics from a range of disciplines to explore the role and meaning of communication in a broad sense for the development of sustainability

Cluster leaders Professor Anker Brink Lund (abldbpcbsdk) the Department of Inter-national Business and Politics and Assistant Professors Julie Uldam (juiklcbsdk) and Anne Vestergaard (aviklcbsdk) the De-partment of Intercultural Communication and Management

Communicative Dimensions of Sustainability

Anne Vestergaard

Julie Uldam

Anker Brink Lund

Andreas Rasche

Jette Steen Knudsen

9CSQ

The Cluster on Sustainability in the Post-Growth Economy starts from the realization that the era of perpetual economic growth may be over The Cluster explores and devel-ops ideas and imaginaries of what a sustain-able post-growth economy might look like The purpose of such effort is to transform the end of growth from being the cause of social economic and ecological depredation into being an opportunity for the creation of new forms of economic organization that do not rest upon the condition of growth We ap-proach this challenge by starting to rethink some fundamental economic concepts from the perspective of a post-growth economy

What is a company What is work What is leadership What is money What is con-sumption What is a market And what is in fact economic growth The Cluster will ap-proach these questions theoretically by look-ing into their assumptions rooted in the par-adigm of growth capitalism and empirically ndash by studying actual practices of alternative economic organization Associate Professor Ole Bjerg (oblpfcbsdk) and Professor Bent Meier Soslashrensen (bmslpfcbsdk) the Department of Man-agement Politics and Philosophy

Sustainability in the Post-Growth Economy

The Cluster on Corporate Governance and Leadership for Sustainability Strategy focus-es on managerial behavior and performanc-es related to responsibility in corporations with a particular interest in how managers and leaders in firms relate to and behave vis aacute vis expectations to corporate sustainability strategies policies and action The Cluster will invite discussions that engage with how responsibility issues play a role in shaping systems and models of corporate governance and leadership and conversely how different models impact corporate responsibility and performancesThe emphasis will be placed on bringing into the management debate to what extent responsibility brings demands

for new management competences and man-agement models The Cluster is particularly but not exclusively interested in exploring the relationships between sustainability and corporate performances with (1) board of director characteristics (2) corporate owner-ship structures (3) shareholder activism (4) leadership approaches (5) ethical consider-ations regarding corporate governance and leadership and (6) comparisons of corporate governance and leadership approaches in a Scandinavian context vis-agrave-vis other global contexts

Associate Professor Bersant Hobdari (bhintcbsdk) the Department of Internation-al Economics and Management

Corporate Governance and Leadership for Sustainability Strategy

Bent Meier Soslashrensen

Ole Bjerg

Bersant Hobdari

10 CSQ

Writing a good business case

from a Hollywood perspective

Jenny Mead (left) picture from readthehookcom

On November 28 2012 Kirsti Reitan Andersen temporary project manager at CBS Sustainability Platform interviewed Senior Research-er Jenny Mead Darden School of Business University of Virginia in extension of her visit to CBS Jenny Mead was here to host a workshop and one-on-one sessions on how to write good business cases with a focus on sustain-ability

Interview with Jenny Mead Senior Researcher Darden School of

Business

Could you tell a little bit about yourself

ldquoI have been at Darden School of Business for the past 10 years I write cases about business ethics sustainability strategy and leadership I am not a business person at all but call my-self a writer because that is what I prefer I write stories I have worked in the film busi-ness in Hollywood where I worked as a De-velopment Executive It means that I looked for projects that could be made into movies Again I am not a business person at allIn the 1920s Harvard University started case-based teaching Darden followed through on the case tradition in 1950s Darden has con-tinued to focus on business ethics as key in educating students From the 1950s onwards

in the first year of undergraduate studies we have had a mandatory business ethics course This tactic has developed a large student body which is constantly aware of business ethics as an integrated part of business life The business ethics cases I write have an ele-ment of ethical ambiguity and decision-mak-ing that contains ethical considerationsrdquo You are visiting CBS to host a case-writing workshop and one-on-one sessions with as-piring case-writers What have the partici-pants gained from the workshop

ldquoThey get a primer of what a business case looks like They learn what a case looks like and are given an exercise where they have to

craft a case and have colleagues critique that The second day concerns teaching notes If a professor from another business school wants to teach it they can get the teaching notes that suggest how to teach the casesrdquo

What is a good case and why are cases ben-eficial for teaching

ldquoInstead of using textbooks in classes teach-ers can make use of business cases Generally a case should present a dilemma that has to be solved or a business decision that has to be made by the protagonist in the caseBusiness cases are a good way of placing the student in the shoes of a manager or decision maker Giving him or her the practical expe-

CSQ Interview

11CSQ

Writing a good business case

from a Hollywood perspective

Jenny Mead and Jonas Hedman from Department of IT Management at Copenhagen Busimess School

From the workshop at Copenhagen Business School

riences in a safe environment ndash no company is going bankrupt based on the decisions It is almost real world training but you are not in the real world A feature of case teaching at Darden School of Business is the use of small video clips of the protagonist in the business case Instead of students just reading about the protago-nist in the case the protagonist presents the problem or issue on video to create a lively teaching environmentrdquo

Do businesses actually think about ethicsThat is a good question and I believe there is

a growing awareness I am very impressed by Darden and the students Maybe it is because of the mandatory first year ethics course but the students are very concerned with CSR sustainability and values

I am currently working on a series of cases on conscious capitalism More and more businesses are adopting true values A shift has been made towards conscious capitalism The idea of conscious capitalism is that busi-nesses realize the value of good treatment to all stakeholders Businesses exist to create value for everybody

Relevant links

Darden Case Studies

The Olsson Center for

Applied Ethics (Jennyrsquos

employer)

The Business Roundtable

Institute for Corporate

Ethics

httpwwwcorporate-ethics

orgpublicationscase-studies

httpwwwdardenvirginia

eduwebOlsson-Center-for-

Applied-Ethics

httpwwwcorporate-ethics

org

12 CSQ

SUSTAINABILITY AND

DEVELOPMENT COOOPERATIONInterview with Minister for Development Cooperation

Christian Friis Bach

Did you know that 7 out of 10 of the fast growing economies can be found in Africa Or that DANIDA funds a programme in which CBS and other Danish universities work together with universities in Tanzania Ghana and other countries to increase the quality of research and uni-versity-level education in devel-oping countries

CSQ - Elisabeth Crone Linding amp Stefano Ponte sat down with the Dan-ish Minister for Development Co-operation Christian Friis Bach to hear about how the developing world is moving ahead fast ndash and why Denmark needs to keep up in order to stay relevant

I t is not every day that we meet with min-isters on the top floor of Asiatisk Plads

ndash the official home of the Danish Ministry of Foreign Affairs and DANIDA the inter-national development cooperation branch of the Ministry Nevertheless here we are over-looking the busy waters of the Copenhagen canal and looking forward to a long-planned rendezvous with Christian Friis Bach Min-ister of Development Cooperation since the autumn of 2011

Besides spending time in the academic ranks of Copenhagen University and the political spheres of the European Commission the Minister knows a thing or two about the de-veloping world he has previously devoted his

time to positions in DanChurchAid WWF World Wide Fund for Nature MSActionAid and the Danish Ethical Trading Initiative

In its current strategy DANIDA has put a new focus on green growth renewable en-ergy sustainable agriculture and innovative solutions to enable continued access to scarce resources ndash a quite green agenda in fact But how does this resonate in a developing world that is growing very fast According to the Minister perceptions are changing with more democratic political environments be-ing built

ldquoMore and more developing countries see green growth and sustainability not as stum-

bling stones but as building blocks of a fu-ture strong economy They recognize that in a world of natural resource scarcity and increas-ing prices on for example energy they need to adopt a different growth pattern More and more poor countries are buying into this And therefore we now have a unique opportunity for shaping the political framework and ena-bling environment to create more sustainable developmentrdquo

So how does a business school such as CBS fit into this equation What can we offer

This is a key question for us to ask As the Sustainability Platform was born out of the CBS Business in Society strategy we are in-

CSQ Interview

13CSQ

terested in looking for ways to address grand societal challenges such as ensuring sustain-able development

Christian Friis Bach recognizes that CBS as a research and educational institution has a role to play here ndash maybe even a bigger role than we play now Because even though CBS is known and regarded as a very internation-ally oriented university the Minister encour-ages CBS to go even further in sharpening its global commitment and profile

ldquoMany of the problems that we have related to growth and employment in Europe are not to be found in developed countries I hope that CBS continues to engage internationally in order to shape graduates to tackle global chal-lenges For example 7 out of 10 of the worldrsquos fastest growing economies are in Africa and here I would really urge CBS to have an even stronger engagementrdquo

CBS is involved in the Building Stronger Universities in Developing Countries Pro-gramme (BSU) which is a partnership be-tween research and higher education institu-tions in selected developing countries and all the main Danish universities The long-term goal of the initiative is to make the partici-pating institutions stronger by conducting joint research projects that offer knowledge and solutions to localdomestic and global challenges to produce better graduate pro-grams and for universities to play an increas-ing role in the economic social and political development of their own countries How-ever Christian Friis Bach also encouraged close dialogue with a broader set of partner universities in the developing world as an important way for CBS to shape its research and educational efforts and thus remain rele-vant in the future

Christian Friis Bach highlighted

ldquoIt is a big world And the world moves fast And I think the challenges upon our edu-cational system in Denmark are increasing every day When I go to South Korea China Latin America or Africa I see that they look increasingly towards each other for innovative solutions not towards Europe If we need to remain relevant we do have a challenge hererdquo

For example this means looking at the econ-omies in the world that are the most innova-tive These are in many cases in the develop-ing world so this is when CBS should invest when it comes to partnering in research educational development and knowledge exchange for example among faculty and students

The Minister also notes the advantages that can be gained from globalizing our institu-tions much more broadly and working across borders and academic fields for example on

The Building Stronger Universities in Developing Countries initiative amp CBS

ldquoBuilding Stronger Universities in Developing Countriesrdquo is a partnership between research and higher education institutions in developing coun-

tries and Danish universities The long-term goal of the initiative is to make the participating institutions stronger in the sense that they

bull playanincreasingroleintheeconomicsocialandpoliticaldevelopmentofthesocietiesinwhichtheyarelocated

bull functionasnodesofinnovationandknowledgeproductionprovidingsolutionstolocaldomesticandglobalchallenges

bull produceskilledandmotivatedgraduatesthatcancontributetothefurtherdevelopmentofthesocietiesandaddressthechallenges

faced

The ldquoBuilding Stronger Universitiesrdquo initiative has a structure with four thematic platforms Copenhagen Business School contributes to one of

the four platforms under the initiative the Growth and Employment platform which is a partnership between University of Ghana (UG) Kwame

Nkrumah University of Science and Technology Ghana (KNUST) University of Dar es Salaam Tanzania (UDSM) Sokoine University of Agriculture

Tanzania (SUA) and the major Danish universities From CBS Associate Professors Soslashren Jeppesen and Michael Wendelboe Hansen the CBS

Center for Business and Development Studies is part of the project which for example seeks to develop relevant PhD programmes strengthen

growth and employment relevant research activities and research collaboration and disseminate research findings to stakeholders

wwwbsuudorg

Students Sierra Leone (picture from umdk) Photo Joslashrgen Schytte

When I go to South Korea China Latin America or Africa I see that they look increasingly towards each other for innovative solutions not towards Europerdquo

ldquo

14 CSQ

health technology and business develop-ment in cooperation with developing coun-try researchers And we need to be good at a lot more than ldquojustrdquo development coopera-tion ldquoif we want to remain relevant for exam-ple in Africa on sustainable business we can-not afford to send people out who have worked isolated in the development community here in Denmark So instead of seeing development research as a separate discipline it needs to be integrated into everything we dordquo

That is why the Minister argues for more fo-cus on educating graduates that are experts and specialists but not necessarily within development cooperation Instead he says Denmark needs graduates that can develop the best possible solutions for the developing world within energy technology etc ldquoThe fast-growing economies in China Southeast Asia Latin America Africa do not need spe-cial things made for developing markets they need top innovative solutions and high-quality products and we need to be able to offer that to them if we want to remain relevantrdquo

One of the solutions worth repeating is that of partnerships According to the Minister universities need to remember that partner-ships with other research institutions as well as with private companies and organizations can provide greater insight

ldquoYou need not only public-private partner-ships but large-scale multiple partnership Still universities can sometimes behave as isolated entities Of course universities need to focus on the core business of researching and educating students but they will also in-creasingly be challenged to engage in these in-ternational and multiple partnerships This is where you will find some of the most inspiring

About Christian Friis Bach

Born 1966 in Frederiksberg Denmark Married three children Lives on a hobby farm near Ganloslashse

Present officeMinister for Development Cooperation 3 October 2011 ndash

Education1992-1996 PhD International Economics Royal Danish Agricultural University Copenhagen 1986-1992 MSc Agronomy Royal Danish Agricultural University Copen-hagen

Work Experience2010-2011 Special Advisor for EU Commissioner Connie Hedegaard (UN Global Sustainability Panel) 2010-2011 CEO ViewWorld ApS 2009 Affiliated Professor in International Economics and Development at the University of Copenhagen 2005-2010 International Director DanChurchAid 2002 Journalist at the Danish Broadcasting Corporation (DR) 1999-2005 Associate Professor International EconomicsDevelopment Economics Royal Danish Agricultural University (University of Copenha-gen)

Other engagements2010-2011 Member of the Board of the Danish United Nations Associa-tion 2008-2010 Initiator and Board Member of the Danish Initiative for Ethical Trade 2008-2009 Member of the Danish Africa Commission 2007-2011 Member of the Presidium for WWF World Wide Fund for Nature Denmark 2000-2006 Board Member International Institute for Sustainable Develop-ment 1997-2001 Chairman Mellemfolkeligt Samvirke (Danish Association for International Cooperation)

Christian Friis Bach has published a large number of books reports and ar-ticles in newspapers and magazines Please see wwwfriisbachdk for details

15CSQ

In December 180 Degrees Consulting (180DC) finished its third round of pro-bono social impact consulting projects with even more success than in previous semes-ters All consultants showed dedication and motivation by spending a large amount of their spare time to work with socially con-scious organizations in order to help them to improve their social impact

An overcrowded lecture room during the 180DC information meeting at the begin-ning of the semester and the high number of applications to join the consulting projects were evidence of great interest in 180DCrsquos activities Out of the 139 applicants the top 45 were selected in a two-step recruitment process and grouped into teams of five to work on the nine exciting projects lined up in the Fall 2012 semester

All projects involved Danish-based organi-zations with a strong focus on either social andor environmental sustainability The projects however differed vastly One of the consulting teams assisted Engineers Without Borders and Action Aid in developing an investment rationale for the cultivation of farmland belonging to an Indian orphanage as well as assessing the social return of this investment

Another 180DC team worked with Hertha an organization focused on the reverse in-tegration of ordinary people into a commu-nity of mentally challenged Hertha needed assistance with improving their external reporting setup to stakeholders which was achieved by developing useful tools for the organization to measure both the social and cultural impact of their activities Yet another team of consultants helped the International Rehabilitation Council for Torture Victims optimizing their internal processes and thus helping them pursue their vision of a world without torture

During the consulting period 180DC or-ganized several training sessions for the con-sultants of the organization hosted by pro-fessional consultancies and each team was assigned a mentor with expertise specific to the given project The highlight of the semes-ter was the Final Event at which all of the teams presented their projects in front of a large audience comprised of all 180DC con-sultants the 180DC board members as well as mentors clients and a jury consisting of representatives from PwC DI CBS Sustain-ability Platform BCG and VSFA The juryacutes task was to evaluate the consulting projects based on their written report and oral pres-entation Based on the creativity feasibili-ty and impact potential of the projects the chairwoman of the Jury Birgitte Mogensen PwC announced the winner of the 180DC Social Impact Award Team Engineers With-out Borders

All of the 180DC board members have throughout the semester been working hard to constantly improve the organization in or-der to ensure a high quality of the services provided to clients and of the learning ex-perience provided to students With a new extended board in place 180DC is looking forward to continue its successful journey in the upcoming semester which kicked-off in January with two international projects in Chile and Sierra Leone ndash thanks to the sup-port of the CBS Sustainability Platform

by Nadine Koumlcher

UPDATE FROM 180DEGREES180 Degrees Consulting is an international student consultancy that works with growing non-profits helping them achieve a greater social impact

Contactphone no +45 6061 6399e-mail cph180degreesconsultingorg

Updates from partner organizations at CBS

16 CSQ

The past semester was a good one for 360deg Students for Sustainability Not only did our organization grow to nearly 50 members this fall but we were also nominated in the Student category for the CSR Awards 2012 ndash the second year in a row You can watch the nomination video here httpwwwyoutubecomwatchfeature=player_embed-dedampv=6J5mwn7TcYI Although we didnrsquot win the award representatives from 360deg got the chance to participate in the conferencersquos many seminars ndash and not least hear Bill Clin-ton speak360deg also took it to another level with 360deg Academy The project was a huge success with over 250 people signed up for the ex-tracurricular course It shows that there is a clear interest in CSR and sustainability among the students and that 360deg Students

for Sustainability fill an important gap in providing the students with a forum where they can discuss such issues with each oth-er professors and practitioners We have al-ready started planning Academy 2013 which will run in the fall In addition to 360deg Academy 360deg organ-ised several successful events and seminars the past semester 360deg Develop Prize was kick-started in November and has already found some dedicated social entrepreneurs who will join the coming events this spring as well as the final competition 360deg also co-organized events on microfinance (with Danish Forum for Microfinance) and fair-trade (with Fairtrade Maeligrket) We also created a nice Christmas spirit at the CBS campus with our annual Christmas event featuring cookies a fairtrade Christmas tree

and do nations to Red Cross and Verdens SkoveWhile it is important to look back this semester 360deg is focusing on the future By the end of the semester 360deg Students for Sustainability will have changed its name to oikos Copenhagen After becoming part of the international student network oikos in 2011 we believe that changing our name will emphasize our international commitment and will show the students the many oppor-tunities that are available to them through the oikos network You can read more about oikos International and the other 36 chapters around the world by visiting wwwoikos-in-ternationalorg

Christina EkChairwoman of 360deg and soon-to-be President of oikos Copenhagen

UPDATE FROM 360 STUDENTS

360deg Students for Sustainability

360deg Students for Sustainability is a non-profit student organization based at CBS working to enable and inspire students to make responsible and sus-tainable decisions in their future lives and professional careers

Contact Christina Ek tlf 42 39 99 54 mail info360studentsdk

Live show at CSR Awards 2012

(Picture from csrfondendk)

Updates from partner organizations at CBS

17CSQ

UPDATE FROM PRME

New approach by the Curriculum Development

projectThe commitment to the initiative of the UN Principles for Responsible Management Education (PRME) at CBS has been further sustained via a more targeted approach to the development of the curriculum at the undergraduate programmesAs part of the adherence to PRME CBS has launched a Curriculum Development project to integrate responsible management prac-tices into the study programmes and also make these practices more explicit This is an extensive process that recently has been even more focused on the individual content of each of the study programmes A more cus-tomised approach will only strengthen the analyses of syllabi for each core course and increase the content of explicit responsible management

ldquoThe current restructuring of the Service Management bachelor programme and the development of three specialised lines of ed-ucation offer a great opportunity to align the curriculum development with the Principles for Responsible Management adopted by CBS Currently the CBS Office for Respon-sible Management Education and faculty members from CBS are working to identify opportunities to integrate responsible man-agement education into the educational programmerdquo Assistant Professor Adriana

Budeanu BSc in Business Administration and Service Management CBS In collabo-ration with study boards students and fac-ulties the Curriculum Development project enables a targeted approach to the integra-tion of responsible management content in order to comply with the overall structure of each study programme

Anti-piracy strategy from Maersk was a winning strategy

In collaboration with the CBS Sustainabili-ty Platform the CBS Office for Responsible Management Education arranged an internal competition to identify the best team of stu-dents to represent CBS at the International Business Ethics Case Competition (IBECC) in San Diego later this year The students had to select a business case entailing a challenge with legal financial and ethical aspects and propose a solution to this challenge A jury found the winning team based on a live presentation followed by a QampA session that took place in November 2012

The winners of this unique opportunity were the graduate students Bjoslashrg Ilsoslash Klinkby (MSc IBP) Adam Eithz Kromann (MSc BAP) and Anne Cathrine Gaarde (MSc IBP) They presented a business case on the anti-piracy strategy of Maersk

Winners of the Business Ethics Case Competition

Updates from partner organizations at CBS

18 CSQ

THESIS PARTNERSHIP BETWEEN GRADUATE

STUDENTS AND COMPANIES MATCH-MAKING

On behalf of CBS the Office for Responsible Management Education invited companies and organi-sations to participate in a match-making event with graduate students who were looking to write their thesis within the field of sustainability or social responsibility

Prior to the event that took place on the 6th of February ambitious graduate students were matched with eight very diverse organ-isations all wanting to explore challenge and develop CSR related activities The selection of organisations ranged from Center for So-cialt Ansvar who sought the studentsrsquo advice on how to revitalise their social concepts in corporation with the civic public and pri-vate sector to Wonderful Copenhagen that engaged the students in their aspirations of

retaining Copenhagen as a leading ldquogreenrdquo conference destination This diversity mere-ly reflected the broad-based educational standards that are embodied in the conducts of CBS and enabled students from all study areas to participate With the meeting as the focal point of the event the aim was to in-troduce more students and companies to the possibilities of a thesis partnership On that basis it is the hope that students and organisations will take the initial meeting

further into a collaboration resulting in a thesis that with an analytical and reflected approach hopefully provides valuable insight for all parties The event was indeed a unique opportunity for the students to get the or-ganisationsrsquo unremitting attention but also the organisations expressed their excitement about how the theoretical knowledge and skills of the students could be combined with the specific issues reaching beyond everyday operations of the organisation

PRME

Lene Mette SoslashrensenTel +45 3815 2651E-mail lmsiklcbsdk

PRME Manager

Johanne Duelund Kramer from Wonderful Copenhagen and CBS student Joseacute Bandeirinha from International Marketing and Management

Updates from partner organizations at CBS

19CSQ

A value adding partnership

The match-making event was kick-started by Professor Andreas Rasche who gave a short speech on trends in the field of sustainability and social responsibility Likewise thesis con-sultant Vibeke Ankersborg rounded off the event by guiding both students and organisa-tion representatives in the right direction of obtaining a value adding thesis partnership

By facilitating integration of the theoretical knowledge pool at CBS with real-life busi-ness cases and their challenges this initiative underpins CBSrsquos Responsible Management Education profile ldquoAddressing societal chal-lenges in interaction with business is a key element in our Business in Society strategy and we hope to set up a similar initiative in the futurerdquo Lene Mette Soslashrensen PRME Manager CBS

Being able to engage in a thesis partnership gives us the opportunity to get new and fresh eyes on the challenges and opportunities we face in the aspiration of sus-taining Copenhagenrsquos position as marked leader within sustainable meetings and events ndash and the other way around we see it as a positive contribution to help young students to gain in-depth knowledge on how we actually work with sustainability in practicerdquo

Ulrika Maringrtensson senior communication consultant Wonderful Copenhagen

ldquo

Case Companies

20 CSQ

Update from CBS Centre for Corporate Social Responsibility

cbsCSR celebration10 years anniversaryOn Thursday November 22 2012 CBS Centre for Corporate Social Responsibility (cbsCSR) celebrated its 10 years anniversary The guest list included prominent guests from both academia and the corporate world Head of Department Dorte Salskov-Iversen President Per Holten-Andersen and cbsCSR Director Esben Rahbek Pedersen bid all a warm welcome to an afternoon of inspirational talks and celebration of the Centre

Susanne Stormer followed and initiated her presentation with a brief recap of Novo Nor-diskrsquos history and continuous development of corporate sustainability practices She em-phasized how Novo Nordisk with the help of Professor Ed Freeman has prioritized a close relationship with their stakeholders and learning with them as a means to reach a higher level of corporate sustainability An additional key take-away from Susanne Stormer was the notion of transformational partnerships She argued that corporations NGOs and other stakeholders should use each other to form transformational partner-ships instead of just transactional partner-ships She claimed that in order to address and solve the problems in todayrsquos world the issues have to be addressed at the roots ndash in cooperation with stakeholders

The program had been divided into two ses-sions Each session ended with a panel dis-cussion that gave the audience the opportu-nity to track the developmental trajectory of CSR and participate in the discussion of the future direction of CSR

In the first session which focused on the history of CSR Professor Lucia Reisch from Department of Intercultural Communica-tion and Management CBS Susanne Storm-er VP of Corporate Sustainability at Novo Nordisk and Professor Gail Whiteman from Rotterdam School of Management present-ed their perspectives on the development of CSR up until nowProfessor Lucia Reisch set the stage with an enlightening introduction to the history of sustainable development and emphasized balance on the triple bottom line as key

Professor Gail Whitemanrsquos presentation highlighted both the past and the future of CSR Her main topic was how to deal with planetary boundaries She drew attention to inherent implications of teaching sustaina-bility and CSR at a business school and ar-gued that in order for students and business executives to understand the implications of planetary boundaries and their importance classes should be taught in nature

In the second session Annette Stube Head of Group Sustainability in AP Moller ndash Maersk Simon Pickard Director General at ABIS and Professor Andreas Rasche from cbsCSR presented their views on the future of CSR

Updates from partner organizations at CBS

21CSQ

The topics in the second panel debate evolved around some of the same issues as in the first panel debate The audience was very interested in the educational aspect of CSR and sustainability and a discussion fol-lowed concerning the issues of lsquopreaching to the convertedrsquo Research shows that 75 of CSR courses are not mandatory 1 thus those students and executives who have a natural interest in CSR and sustainability enroll for these courses The speakers agreed that this posed a challenge for the future and that business schools might have to re-invent themselves in this regard They stressed that it is crucial that CSR and sustainability courses become mandatory Also the prac-titioners advocated in-company learning They set forth the argument that it may be a long time before current students will have sufficient impact on the corporate sector but also because the corporate sector and the ac-ademic world can learn from one another

Sum-up of key perspectives for the future

So how has lsquothe business of business really changedrsquo and in what direction From the afternoonrsquos discussions there were two recur-ring topics Susanne Stormer briefly touched upon it when she talked about transforma-tional partnerships Annette Stube and AP

Annette Stube set forth the argument that ldquothe business of business has really changedrdquo She gave an example of how AP Moller ndash Maersk should use their position in the shipping industry to facilitate substantial changes Simon Pickard supported her argu

ment stating that it is not possible for single corporations to make a difference but that clusters of corporations have to collaborate to push changes If corporations do not join forces they risk only making incremental changes Simon Pickard further argued paraphrasing Andrew Pettigrewrsquos argument that in the course of time there has been a conceptual change in the argument for CSR He pointed to the fact that it started out as a moral or philanthropic enterprise and is now perceived as a governance case Simon Pickard pointed to the fact that the future of business is to create shared value ie creat-ing economic value that also creates value for society at large Building on these re-marks Andreas Rasche discussed the future of standards and codes in the field of CSR Emphasizing a variety of case examples he argued that while standards have proliferated in recent years eg certification schemes in the global coffee and apparel industries there is a need to more actively manage the co-ex-istence of these initiatives in order to avoid overlap Rasche also highlighted the pivotal role of consumers who need to acknowledge standards and labels as market signals and factor social and environmental concerns into purchasing decisions

Moller ndash Maersk has it as an integrated and crucial part of their CSR policies and Simon Pickard highlighted how instrumental the-ories are no longer enough The concept of shared value is inescapable and it is what the lsquobusiness of businessrsquo in the early 21st centu-ry is really about

A second topic which also attracted a lot of attention was the importance of continuous education of both lsquothe convertedrsquo but also of opponents of CSR and people who are not aware of the importance of CSR and sustain-ability In-company learning was depicted as a crucial part of the development of CSR and sustainability however a physical change in the teaching settings is also required to meet the approaching environmental challenges

Centre Director Esben Rahbek Pedersen concluded the conference and the winners of the prize of 25000 DKK to participate in the IBECC case competition in San Diego in May 2013 were announced and the celebra-tion of cbsCSR ended with a reception

Thank you to all the speakers moderators and guests for an inspirational afternoon

By Elise Lind Jacobsen and Line Pedini Rasmussen cbsCSR

1Rasche A Gilbert DU and Schedel I (2013) Cross-Disciplinary Ethics Education in MBA Programs Rhetoric or Reality Academy of Management Learning and Education (forthcoming)

Three of the keynote speakers (from left) Professor Gail Whiteman from Rotterdam School of Management VP of Corporate Sustainability at Novo Nordisk Susanne Stormer and Sustaina-bility Professor at CBS Lucia Reisch

Simon Pickard Director General at ABIS

22 CSQ

UPDATE FROM

CBS GOES GREENThe Green Associate Program

2012 was an exciting year for CBS Goes Green with many great achievements One of the new initiatives that was launched in 2012 was the Green Associate Program Here CBS students were able to volunteer in a program to support sustainable behavior among students and staff at CBS More precisely 25 CBS stu-dents put in 30 hours of voluntary work to help with the planning and execution of Green Week - a week consisting of a lineup of successful companies shar-ing their sustainable initiatives and thoughts The overwhelming interest in sustainability and sustain-able business among the students has made it evi-dent that the Green Associate Program should con-tinue in 2013 We at CBS Goes Green look forward to this as well as all of the other initiatives we will be conducting in 2013

The following is an extract of an article that three of the associates wrote themselves This extract shows the associatesrsquo own experience working with CBS Goes Green

What does it mean to be an

associate with CBS Goes Green

In Week 39 CBS turned into a plethora of green initia-tives and events in order to make CBS reach its sustaina-bility goals for 2020 Both students and employees at CBS were asked to become a Green Ambassador to help CBS be smarter greener and better

But many of you may wonder how it is to be one of the people behind the scene As associates we have been help-ing out before and during Green Week in order to establish an event that would reach all corners of CBS This has re-quired both time and effort in order to make things work out but in the end there are also a lot of gains from being an associate

Firstly as an associate you get to expand your network You get to work with people from different studies countries and ages and you also get to talk to many different people while promoting

A bonus about being an associate is also that you get an official certificate which can be attached to your resume This shows that you have put an effort into making Green Week happen

Furthermore by being an associate you feel like you have a larger impact on making CBS a greener place Instead of being an ambassador and only doing the things you can do you get to be the person who raises awareness about sustainability You may influence people to make the right choices and it makes you feel good

Lastly it also gives you a feeling of responsibility because you work under an official part of CBS CBS Goes Green ndash a unit with a clear agenda and a clear vision

By Michael Nguyen Christian Charity and Christian-Philip Lundahl

Updates from partner organizations at CBS

23CSQ

International conference on sustainable biofuels presents latest research

By Barbara Louise Bech Department of Business and Politics CBS

EU Renewable Energy Directive

In 2009 the EU RED set a mandatory target for member states to use a minimum of 10 renewable energy sources in the transport sector by 2020 of which biofuels is expected to be the main contributor This is part of a policy to cut greenhouse gas emissions promote the green technology sector develop rural areas and reduce dependency on fos-sil fuels Due to increasing controversies claiming lack of sustainability in first generation biofuels based on food crops recently the EU pro-posed an amendment to the Directive limiting the share of first gener-ation biofuels to 5 of the targeted 10

The debate quickly zoomed in on the sustainability criteria as outlined in the EU RED drawing attention to the lack of social safeguards The general consensus is that the concept of sustainability is too narrow-ly defined Several case studies (Mozambique Brazil and Indonesia) show that basic labor and human rights of local populations are not protected by RED and the directive is more viewed as an environmen-tal safeguard This discussion raised questions in regard to the effects of RED globally (eg sustainable production in developing countries) and in this context whether EU legislation can have a lsquotrickle downrsquo effect on national standards of nation-states outside the EU In this re-gards one could ask if enforcement at the local level falls under the re-sponsibility of the EU but since first generation biofuels are produced outside the EU it is an important issue for European consumers ndash al-though interest is currently mainly driven by NGOs

On November 19-20 2012 the Copenhagen Biofuels Research Network (COBREN) held an international conference on sustainable biofuels inviting 30 research-ers from around the world to present and discuss their latest research During the two day conference focus was the sustainability criteria of the EU Renewable Energy Directive (RED) voluntary certification schemes and their impacts on sustainability and social safeguards in producer (developing) countries in particular and governance complexity of the biofuel system which has grown considerably over the past decade

Rough guide to biofuelsThere are two types of biofuels biodiesel and ethanol First generation biofuels (1G) are based on food crops and feed stocks such as palm oil soybean and rapeseed used for the production of biodiesel and sugarcane and corn for ethanol The produc-tion of biofuels increased heavily in the 2000s questioning the sustainability of 1G A number of issues have been claimed as key impediments to sustainable biofuel production such as deforestation competition with food production and increasing food prices loss of biodiversity lack of social and environmental safeguards and indirect land use change (ILUC) These contro-versies have led to a call for the promotion of second generation biofuels (2G) which are typically based on agricultural waste (eg straw) plants and forestry residues (also called lignocellu-losic biomassmaterials) However the immediate problem is that there is yet to be developed a market for 2G as they are more costly to produce (require longer and more complex production process)

CBS Sustainability Platform co-director and organizer of the COBREN conference Stefano Ponte doing a presentation

Event

24 CSQ

Voluntary certification schemes

In relation to how standards and certifications can impact sustainable biofuel production discussions pointed to the important difference be-tween mandatory and voluntary schemes As the controversy of sus-tainable biofuels in particular first generation is rolling out special attention has been given to biofuel production competing with food production ILUC value of emissions reduction and environmental and social issues This have off sprung a proliferation in private certifi-cations and during the conference it was discussed intensely whether these schemes have an actual effect on sustainability Depending on the point of view certifications can fill out the holes in legislation and act as a tool to force companies to comply with sustainability crite-ria However the development processes of new certifications may not be inclusive of relevant stakeholders (eg representatives of local populations) Additionally the nature and governance of the networks steering these processes is not always transparent and may favor one interest over the other This intense discussion led to the question of the purpose of certifications Can we use them for anything other than as a CSR PR tool as long as consumer awareness is as low as it is and how do the different regional drivers influence sustainability as a concept The answers to these questions are not easily found and it will be interesting to observe the future development and partnership between public and private sector

Governing the biofuel industry

Within the past decade biodiesel production has risen from below 30PJ in 2000 to 572PJ in 2009 globally and fuel ethanol production has increased from 340PJ to 1540 PJ respectively As the market expands more actors eg governments international organizations civil soci-ety and NGOs private sector networks and companies and profes-sions (biofuel experts and consultants) get involved and play different roles to promote their own agendas Being an emerging industry the structure of the biofuel system shows hybrid forms of governance with many actors As controversies of biofuelsrsquo sustainability develop more issues are added to the agenda giving life to more actors and interests in the governance structure Research shows a shift in power balance as private companies and NGOs increasingly push the agenda The dis-cussions during the conference centered on the complexity of sustain-ability issues calling for mixed governance responses and governance instruments such as standards and certifications which in return need to be followed up with endorsement instruments Given these com-plexities the question is whether the biofuel industry is too difficult to govern as long as the governing systems (for instance the EU) cannot accommodate expectations of all stakeholders

Indirect land use change (ILUC)ILUC is the unintended consequence in terms of more carbon emis-sions due to land use change around the world induced by the expan-sion of croplands for biofuel production When land that could be used to grow food and feed crops is used to grow energy crops this leads to existing agricultural production moving to another area or country where land is converted When this land is cleared and converted to cropland and because natural lands (rainforests and grasslands) store and sequester carbon in their soil and biomass a net increase in GHG emissions can occur Due to this change in the carbon stock of the soil and the biomass ILUC has consequences in the GHG balance of a biofuel Adding to this complexity models for ILUC calculations are not mainstreamed and thus difficult to assess internationally

25CSQ

Mellemfolkeligt Samvirke (MS) or Action Aid Denmark is a Danish NGO founded back in 1944 The

organizations key objective is to fight poverty by ensuring greater political influence for the worldrsquos poor and margin-alized at the local national and international levels MS works to bring about long-term development in the worldrsquos poorest countries focusing especially on education co-

operation and the ability to organize MS mainly works in Africa Read more about the organizationrsquos work

at wwwactionaiddk

Action Aid

A private sector view on the future of sustainable biofuels

By Barbara Louise Bech Department of Business and Politics CBS

nergy security continues to be an eminent concern in a world of finite resources For a long time biofuels have been viewed as

one of the key solutions to replace our dependency on fossil fuels and battle climate change but in recent years controversy has contested the sustainability of first generation biofuels based on food stock Issues such as lack of environmental safeguards causing loss of biodiversi-ty and deforestation and lack of social safeguards ensuring land and labor rights in producer (developing) countries have been claimed as key impediments to sustainable biofuel production Critical observers also argue that the emission savings of biofuel use in compar-ison to fossil fuels can become much smaller (or even disappear) when indirect land use change (ILUC) is included in the calculations Furthermore bi-omass production from food stock is argued to compete with food production and in-creasing food prices

The Danish NGO Action Aid has been engaged in biofuels since 2008 and is par-ticularly involved in protecting womenrsquos rights and preventing land grabs in de-veloping countries ldquoWe are very concerned about land use when it comes to first genera-tion biofuels This relates both to the people who are dependent on the land and to food security We rarely see good combinations where the local populationrsquos needs are taken into consideration The energy crops grown on the local farmerrsquos land donrsquot benefit him and local consumption is essential for developmentrdquo explains Kirsten Hjoslashrnholm Soslashrensen political advisor Action Aid Denmark

It is therefore believed by many that second generation biofuels is the only way forward to avoid competition with food and avert ILUC Next generation biofuels is based on lignocellulosic biomass such as agricultural and household waste and forest residues The Biorefining Alliance represents a cluster of leading Danish companies within the renewable energy sector with an ambition to promote second gener-

ation biofuels and make Denmark a world leader of technology and bi-ofuel productionldquoDenmark has very strong competencies in green tech and as a society we have put a lot of money in its development This is go-ing to be a huge deal globally so we are asking whether Denmark wants to be a customer or a producer What we are working for is of course that we become a lead exporter of technology but also that Denmark produces second generation biofuels commercially Even though we are a small country we cannot settle on selling know-how Denmark also needs to have some industrial productionrdquo says Anne Grete Holmsgaard di-

rector of Biorefining Alliance In her view Denmark needs to keep a firm grip on developing innovation or it will slowly but

steadily move out of the country In this regard she views sustainability criteria for biofuels as an in-

novator and not a hindrance

The Sustainable Biofuels Network (SBN) is another cluster of private companies trying to facilitate the transition from fossil fuels to biofuels in the transport sector For the aviation industry biofuels are considered

to be the only alternative to fossil fuels and the industry firmly believes that biofuels will

survive according to Robert Arendal chairman of SBN ldquoThe aviation industry has set very clear

guidelines for the use of biofuels We are not going to use food based biofuels and we will minimize the use of fresh

water By 2050 our target is to use 50 biofuels in the global aviation so we really need to move fastrdquo he explains adding that living up to sustainability criteria includes being careful about where biofuels are produced ldquoBut it should be produced all over the world and close to the 1600 airports worldwide that account for 95 of all aviationrdquo

he technology for second generation biofuels is already here but the problem is that production costs are too high and there is no market As long as prices are not competitive with conventional fuels it will be difficult to move forward ldquoOne might ask why there is no market The customers are certainly there so if I was in the business of producing

E

As part of the COBREN international conference on sustainable biofuels private sector civil society and academia were invited to give their views on sustainable biofuels at a roundtable discussion at an open public seminar held at DIIS November 19 2012

Event

26 CSQ

SBN is a ldquobreeding groundrdquo and ldquoknowledge centerrdquo for the biofu-els industry where synergies are created between all parties within

the biofuels sector SBN focuses in promoting supporting and enabling the commercial development and use of clean and sustainable biofuels for Heavy Road Transportation Shipping and Aviation Emphasis is put on the importance of global standards for biofuels with local as well as international institutions and decision makers to encourage con-

structive guidelines and rules for the development of biofuels SBN adheres to EUrsquos sustainability criteria SBN is a non-profit asso-

ciation established in 2008 Visit their website for more info at wwwsustainablebiofulsdk

Sustainable Biofuels Network(SBN)

The Biorefining Alliance (BA) was founded December 2011 by DONG Energy Novozymes Haldor Topsoslashe and the

Danish Agriculture and Food Council and is a three-year project to politically promote Denmarkrsquos position in the entire value chain from residues to bio-based products The Alliance has set forth a number of recommendations to achieve a sustainable Danish bio-economy Among other these include (i) that all organic

waste be considered a resource (high-value recycling and storable energy) (ii) reducing the cost of manufacturing 2G

bioethanol and (iii) contemplating the establishment of a national center for sustainable materials

Biorefining Alliance

second generation biofuels I would get started right awayrdquo says Robert Arendal The Biorefining Alliance is working on lowering the costs and recommends a stronger regulatory framework with binding targets as it has been done for the wind industry ldquoThere already is a market for first generation biodiesel which is the least sustainable biofuel We need to make a market for second generation biofuels and we know that binding targets work I donrsquot think it is possible to create a market for the lsquogreen consumerrsquo as you have one for organic food products but I believe that a niche market for HRT (Heavy Road Transport red) such as public bus transport could be a supplementrdquo concludes Anne Grete Holmsgaard

How the future for sustainable biofuels will shape depends on political will to create a market for second generation and the ability of private sector to innovate and bring prices down Oil production is claimed by some to already have peaked and exploring new geographical areas for extraction could be as costly as kick-starting the market for second generation biofuels although much less sustainable As the American ecologist and environmentalist Bill McKibben wrote in his book ldquoDeep Economyrdquo back in 2007

Even before we run out of oil wersquore running out of planetrdquoldquo Bill McKibben

27CSQ

The Transparency-Sustainability NexusA workshop on the practices meanings and tensions of organiza-

tional transparency

n December 5 2012 the Department of Intercultural Communication and Management (ICM) hosted an in-

ternational workshop supported by CBS Sustainability Plat-form and ICM The workshop was organized by Oana Brindusa Albu Mikkel Flyverbom and Hans Krause Hansen respectively PhD Fellow and Associate Professors at ICM The idea of the workshop was spurred by the observation that while ideals of transparency like lsquoopennessrsquo lsquodisclosurersquo and lsquoreportingrsquo are pro-liferating these years the actual construction of transparency within and across organizations is poorly understood Most re-search on transparency is highly normative if not celebratory just as popular discourse about transparency not least in the areas of sustainability and corporate social responsibility is obsessed with ideals of accountability performance and effi-ciency and pervaded by an optimism currently pushed to its extreme with the explosion of new media technologies

But the truth is that we generally know very little about the implications of ideals of transparency when translated into practice in specific issue areas and organizational contexts Importantly each of the contributions to this workshop clear-ly suggested that the contemporary politics of transparency is much more complex contradictory and dynamic than tradi-tionally recognized All papers examined various aspects of the contemporary obsession with transparency and specifically the increasing use of disclosure techniques within and around or-ganizations the rationales or myths underpinning these meas-ures their intended and unintended consequences including implications for identity-making management and govern-ance practices

Clare Birchall initiated the workshop with a paper titled lsquoThe Cultural Politics of Disclosurersquo highlighting how transparency has been positioned as a superior form of disclosure in popular management and organizational literatures and in policy docu-ments In her account the growing preference for transparency is a consequence not only of the positive qualities seen to be intrinsic to transparency itself but also a response to the per-ceived negative characteristics of other forms of disclosure such as gossip scandal and rumor Lars Thoslashger Christensen (with co-author Joep Cornelissen) then analyzed transparency as one of the foundational myths of modernity myths understood here as descriptions of the world in a narrative form which seeks to produce meaning and direction for a community and its members Such lsquoMyths of Transparencyrsquo sustain numerous organizational practices ndash including openness information provision and auditing But as argued by the authors there are conflicting evidence regarding the capacity of such practices to create insights and understandingThat aspirations and techniques of transparency can have seri-ous repercussions was demonstrated by Peter Skaeligrbaeligk (with co-author Mark Christensen) in the paper entitled lsquoAuditing and the purification of blamersquo which analyzed how auditing auditing practices and institutional entities including the po-liticized environments surrounding them are mobilized and participate in blame games and allocation In his paper titled lsquoQuantification transparency and the costs of reassurancersquo Henrik Vollmer analyzed various dimensions of the role of nu-merical records and signaling in generating transparency trust and mistrust

By Hans Krause Hansen Department of Intercultural Communication amp Management

Event

O

28 CSQ

Some of these aspects were also touched upon in the paper lsquoDisrupted Disclosures The Politics of Visibility and Surveil-lance in the Extractive Industriesrsquo by Hans Krause Hansen (with co-author Julie Uldam) which explored the wider field of visibility and surveillance in which contemporary transpar-ency policies are unfolding with examples from the extractive industries Oana Brindusa Albu in her lsquoTransparency and the organizational self everyday politics of identification in Cooperativesrsquo examined the paradoxical effects of values and practices of transparency on collective identity formation pro-cesses drawing upon her ongoing multi-sited fieldwork in co-operatives Under the heading of lsquoThe Improbability of Secrecyrsquo Mark Fenster analyzed the intersections of secrecy and trans-parency with examples from the US government and its efforts to control information which according to the author does not necessarily stop the flow of information Finally Mikkel Fly-verbom and Christina Garsten examined lsquoThe sway of (big) data ndash calculations and advocacy in the name of transparencyrsquo focusing on the operations of data-based forms of corporate lsquotransparency evangelismrsquo and advocacy through revelation including examples from Center for Global Development and Google

In all the workshop was highly successful in investigating not only the historical and mythical foundations of transparency but also the different practices and forms of transparency that currently shape organizations and a wide variety of issue areas It also provided a reminder of the usefulness of investigating a concept of transparency in relationship to a host of other con-cepts such as secrecy myth gossip blame surveillance visi-bility identity information and knowledge The organizers of the workshop wish to thank all workshop participants for their valuable contributions and the CBS Sustainability Platform and ICM for their support

Hans Krause Hansen

Mikkel Flyverbom

Oana Brindusa Albu

ASSOCIATE PROFESSORPHD (ICM)

ASSOCIATE PROFESSORPHD (ICM)

PHD FELLOW (ICM)

29CSQ

Louise Lyngfeldt Gorm Hansen is a PhD Fellow at the Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) She has a back-ground in Chinese Studies from Copenhagen University (BA) the Asian Studies Program at CBS (BSc) and in International Business Stud-ies and Sustainable Business (MSc) from CBS

The aim of her cross-disciplinary PhD project is to explore how the Chinese hydropower sector works with environmental sustainability and more particularly how the concept is understood and performed in the planning phase of a major dam project in the southwestern Chinese province of Yunnan

The aim of the project is to gain a deeper under-standing of how Chinese firms in the renewable energy sector such as hydropower companies understand and value sustainability as well as how such firms tackle the increasing pressure to deliver socially and environmentally balanced solutions to one of Chinarsquos major challenges lowering CO2 emissions in a time with rapidly rising water and energy demands Theoretically the project draws on - and aims to contribute to ndash a combination of Asian Studies and Science and Technology Studies

PHD FocusLouise Lyngfeldt Gorm Hansen

HYDROPOWER

SUSTAINABILITY

30 CSQ

HYDROPOWER

SUSTAINABILITY IN

CHINAy PhD project combines two of my main research interests China and

environmental sustainability I have studied China for a number of years mainly because of an interest in how the Chinese view sus-tainable development So since finishing my masters I have known that I wanted to study how China plan to tackle a sustainable tran-sition in the years to come I saw my chance when CBS announced PhD scholarships in

DanishEuropean-Chinese social science research in collaboration with the newly es-tablished Sino-Danish Center for Education and Research (SDC) and started my PhD in October 2011My PhD project focuses on the Chinese energy sector more specifically the rapidly growing part of the energy sector engaged in renewable energy Here I examine Chinarsquos second largest source of electricity gene-

eration hydropower In recent years China has become increasingly focused on reduc-ing CO2 emissions While some countries such as the US and Australia are decommis-sioning hydropower dams China is looking to large-scale hydropower construction as one of the solutions to a future clean energy supply This means that hydropower devel-opment plays a central role in Chinarsquos sus-tainable transition

However utilization of hydropower is con-troversial not least in China and has met increasing resistance in recent years particu-larly from Chinese and international NGOs the media as well as the scientific commu-nity Critique is most often focused on how or if social and environmental sustainability can be ensured in such large scale projects as the social and environmental impacts of large scale hydropower development are very complex and difficult to measure More gen-erally the viability of relying on hydropow-er as a future source of energy is also being questioned One of the major concerns here is the overarching issue of climate change ie glaciers shrinking and yearly water runoff decreasing This means less stable water flow for hydropower and less water for other pur-poses such as agriculture water supply for down-stream countries etc

By Louise Lyngfeldt Gorm Hansen Asia Research Centre Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) ndash sinodanishcenterdk

M

Picture from SinoHydro promotion material 2011

Research

31CSQ

In contrast to for example the wind power sector in China in which many foreign com-panies have invested the hydropower sector is dominated by a few large state-owned en-terprises Our knowledge of Chinese state-owned enterprises is still limited and there-fore my PhD project is also part of a larger research project at the Asia Research Centre with focus on Chinese state-owned enter-prises and the reform of the public sector in China

In combining these interests my PhD exam-ines how Chinese state-owned enterprises in the hydropower sector tackle the demand to expand hydropower development to help reduce Chinarsquos CO2 emissions while be-ing under increasing pressure to deliver on sustainability principles in the planning and execution of large scale hydropower pro-jects The pressure comes mainly from NGO organizations the media and the scientific community both at home and from abroad I am conducting a case study focused on a specific river in south-western China which has ndash until now ndash not been fully developed for hydropower and the plans for addition-al hydropower dams on the river are still undergoing assessments The project has continually stalled due to disagreements between Chinese government officials at all levels NGOs the media the increasingly deregulated but still state-owned Chinese hydropower companies and the scientif-ic community However the project has very recently been reopened and so will go through another round of assessments in the near future The case is an excellent example of the complexity of hydropower develop-ment decisions in China but it also highlights some of the social and environmental conse-quences of the global push to decrease CO2 emissions

China plays and will continue to play an increasingly important role globally in the years to come However the country also fac-es enormous challenges - not least regarding the environment These challenges also affect economies in Western Europe - for better or worse My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective so

that we here in Europe and in Denmark can more knowledgably and actively engage with China to help solve some of these difficult challenges that eventually affect us all In do-ing this I contribute to gain a better under-standing of the Chinese perspective on envi-ronmental sustainability that can be of use to companies wanting to engage in the Chinese renewable energy sector

My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective rdquoldquo

Picture of the case-river taken by the author in 2012

32 CSQ

FROM BLUEPRINT TO PRACTICE

ENERGY EFFICIENT CONSTRUCTION

By postdoc researcher Satu Reijonen Department of Organization CBS

In the EU almost one third of CO2 emis-sions are attributed to energy used in the construction and use of buildings (FIEC

2007) It is therefore not surprising that the construction sector has recently been subjected to a substantial amount of policy measures to combat its negative effects on climate change In Denmark the state has posed new thresholds for the energy efficien-cy of new buildings including a plan for con-tinuous improvement in the area This far the industry has responded well to these stricter performance requirements In the future re-quirements will rise to levels that are not that easily achieved in the coming years build-ings will have to use 25 less energy than in year 2008 How can these ambitious goals become business as usual

One of the most discussed ways besides add-on technologies such as windmills and solar panels to enhance the energy efficiency of a building is through an energy efficient phys-ical design In practice this means reduction of energy used for heating cooling down and lighting of the building through an optimal orientation and dimensioning of the build-ing

Integrated energy design contrary to add-on technologies can be achieved on a rath-er modest additional budget This should be good news for the sector that today is eco-nomically pressed Indeed today many low energy building projects claim to use the in-tegrated energy design method (IED) when seeking to meet the most ambitious energy related goals In this commentary I wish to discuss some challenges related to the imple-mentation of this design tool

The integrated energy design method sug-gests that one of the main problems in not achieving energy efficiency is that energy related concerns become integrated into the design process too late The method consists of two elements the first of which addresses the need to bring in energy related knowl-edge throughout the design process It sug-gests that design teams ought to be multidis-ciplinary and that architects engineers and experts should work together either co-lo-cated or in a series of workshops Further-more it suggests systematizing energy quali-ty follow-ups into the design process This is all very relevant and inspiring

Oddly enough a closer look on the actual design practices reveals that few seem to ac-tually follow the method of integrated energy design to the point This poses an interest-ing question about the challenges related to the use of such management technologies as vehicles for increased energy efficiency in construction Maybe it is about time practi-tioners and researchers ask themselves what are the boundaries of and challenges related to the use of these tools ndash and what else is required for organizing for more energy effi-cient building design processes

A revolution of relations

Integrated energy design points to the need to bring energy related expertise into the de-sign process at an earlier point In order to achieve this cooperative practices between different professional groups are advocated for Historically energy experts have most-ly been used to respond to rather advanced architectural plans Shared workshops and co-localization suggest a change in these business as usual relations But are they pos-sible and what type of changes do they ac-tually imply in order to function as wished

Research

33CSQ

Satu Reijonen is postdoctoral scholar at the Department of Organization at CBS In her on-going research project she investigates how architects and energy engineers two different profes-sions cooperate and coordinate their work regarding energy related ques-tions in construction design The ways in which relations between and roles of these professions become consti-tuted through socio-material arrange-ments are a central topics in her work Besides studies of work Satu has con-ducted research on environmentally friendly products and markets

ABOUT SATU RAIJONEN

The initiation of this type of new working forms is certainly beneficial for energy effi-cient design However for several reasons they are more difficult to make work than one would assume While it may sound rea-sonable it is after all a tall order Integrating energy related practices into an environment where different visions professions and in-terests meet and the divide between what one profession does is clearly and historically demarcated is demanding While architects need to make room for the intervention of energy experts into the creative work energy experts have to become capable of working creatively and relate to and follow the visual and aesthetic cues from architects In order to work these kind of changes in the profes-sional roles and relations have to resonate with the skills and visions of individual work-ers not only management level design strat-egies It is not surprising that organizational change scholars remind us of the possibility of loose coupling from the strategies placed at the management level (March 1981) What integrated energy design suggests is a kind of a revolution in the ways in which both the architects and the energy engineers envision their role and space of mobility

Linear tools in an unlinear design process

Integrated energy design suggests that the energy performance of the emerging build-ing design be followed up at certain points during the design process The method de-picts a rather mechanistic and linear under-standing of a design process consisting of phases within which iteration may occur While energy related issues may be dis-cussed as quality goals during these phases the method places a lot of emphasis on the check ups performed in the transition from one phase to another Design processes how-ever can also be characterized in a different manner unlinear exploratory and whirl wind type of practices where clear cut phases hardly exist (Akrich 1992 Van de Ven et al 1999) This also applies to the architectural design processes where the object of the de-sign is emergent (Yaneva 2009) This entails that the product the building may change in unexpected ways during any day of the de-sign process If this alternative description of the design processes is viable delegating energy related issues to some predetermined check up episodes may strike a false accord and indeed be contradictory with the aim of enhancing coordination and cooperation between professional groups What happens in between the predetermined checkups may very well be where the energy efficiency of the building becomes configured and where the intervention from the energy experts

would come most needed Perhaps this is why the best performing projects do not blindly follow the steps of the IED method Check ups however and no doubt play a role in verifying and making visible the energy performance for partners outside the design team

Integrated energy design as many other sus-tainability standards and guidelines make visible systematize and legitimize the ex-istence of environmental management and sustainability issues in organizations and work processes In this such way tools create awareness and legitimacy for environmental and sustainability issues The integrated en-ergy design method also suggests a possible way of thinking about what type of design practice might help us to achieve the stricter energy requirements of the future It howev-er falls short in becoming the change agent it suggests This is hardly surprising as a meth-od or a standard of any kind should only be seen as a possibility or as an opening for an inquiry of what the practice could be about Reconfiguring a well established practice is hard work and it would be foolish to trust that a design method would achieve it by itself What the method does is to alert us of the more profound changes in the pro-fessional roles and relations that is needed in order to enable the change However the method due to its rather mechanical under-standing of the design process may come to work against its own ambition of integrating energy issues into the design work In its quest for integration the method defines at which points in time the architectural and the engineering project has to be checked for its energy performance This approach may lead to bringing in energy related concerns in some artificially created points in a design process which may additionally compart-mentalize energy related issues from where the design really happens

Integrated energy design as many other sustainability standards and guidelines make visible systematize and legitimize the existence of environmental management and sustainability issues in organizations and work pro-cessesrdquo

ldquoLiteratureAkrich M (1992) The De-Scription of Technical Objects in Shaping Technology Building Society Studies in Soci-otechnical Change eds WE Bijker and J Law The MIT Press Cambridge Massachusetts pp 205-224

FIEC 2007 The impacts of buildings on climate change httpwwwbuildingsplatformeuepbd_publicationdocFIEC_Memo_p2919pdf on 1222008

March JG (1981) Footnotes to Organizational Change Administrative Science Quarterly vol 26 No 4 pp 563-577

Van de Ven A D Polley R Garud and SVenkataraman (1999) The innovation Journey Oxford Oxford Univer-sity Press

Yaneva A (2009) The making of a building A pragmatist approach to Architecture Bern Peter Lang

More about integrated energy design(IED)

httpwwwintendesigncomosloIntendnsfAttachmentsGuideline_Version_2pdf$FILEGuideline_Version_2pdf

34 CSQ

The climate challenge in

shipping

ldquoGlobal shipping faces two major challenges both of which are caused by its reliance on fossil fuelsrdquo

By Reneacute Taudal Poulsen Department of Innovation amp Organizational Economics

RENEacute TAUDAL POULSEN

ASSOCIATE PROFESSOR DEPARTMENT

OF INNOVATION AND ORGANIZATIONAL

ECONOMICS COPENHAGEN BUSINESS

SCHOOL

orecasts show that the shipping indus-tryrsquos CO2 emissions will most likely continue to rise in the next two to

three decades as demand for world sea-borne trade will expand At present global shipping accounts for approximately 33 per cent of global CO2 emissions but this share will most probably increase in the coming years if many onshore industries succeed in their aims of reducing emission levels

At the same time rapidly rising fuel costs put heavy strain on shipping company budg-ets Historically and until very recently fuel costs were only a minor concern for ship-ping companies but now they often exceed 60 per cent of variable operational costs Fuel savings made through energy efficiency improvements thus represent a win-win sce-nario for the shipping industry and for so-ciety at large They simply make good sense for everyone

Despite the strong incentives for fuel sav-ings numerous studies have demonstrated that shipping fails to implement cost-ef-fective measures to reduce fuel consump-tion Fuel-saving technologies are readily available in the market and in many cases pay-back periods are very short (less than a year) Changes in operational habits which require few if any investments also hold a significant potential for fuel savings

Global shipping thus holds several classic examples of energy-efficiency gaps Gaps occur wherever cost-effective measures to improve energy efficiency fail to materialize The causes for energy efficiency gaps have been a favourite research topic within the field of energy economics for decades and economists sociologists and political scien-tists have been able to identify several means to bridge the gaps However within the mar-itime domain energy efficiency gaps and the climate challenge remain neglected issues Legal barriers

Shipsrsquo fuel consumption rises steeply with speed Hence slow-steaming or just minor speed reductions can lower consumption and emission levels significantly Since oil prices started to rise rapidly a few years ago shipping companies have indeed resorted to various slow-steaming practices and com-panies which succeed in this regard have been able to gain competitive advantages In other words actors in the industry are trying to bridge the energy efficiency gap However and in spite of the strong price signals from the rising fuel prices a potential for fuel sav-ing through slow steaming still remains

FNew CBS research project

A new three year research project at CBS under-

taken by Reneacute Taudal Poulsen for the Department

of Innovation and Organizational Economics will

examine the climate issues bringing insights from

energy economics and innovation management

into the field of shipping economics The project

which is financed by The Danish Maritime Fund

runs from 2012 to 2015 The project asks why en-

ergy efficiency gaps continue to occur in shipping

and how shipping companies and the maritime

industry at large can use innovative business

models and process innovation to turn the climate

challenge and the rising fuel costs into a business

opportunity Energy efficiency gaps occur both

in daily operations and when investments in new

vessels are made This article will briefly present

two examples of energy efficiency gaps from

the operational level and some of the preliminary

findings of the project

References

Jaffe AB and RN Stavins 1994 lsquoThe energy efficiency gap What does it meanrsquo Energy Policy 22 (110) 804-10IMO 2009 Second IMO GHG Study 2009 London International Maritime OrganizationMoriarty P amp D Honnery 2012 lsquoEnergy efficiency Lessons from transportrsquo Energy Policy 46 1ndash3Poulsen Reneacute Taudal 2012 lsquoEmissions and energy efficiency - the twin challenges for shippingrsquo Mercator Maritime Innovation Research and Education MarchJune 447-454

Reneacute Taudal Poulsen is Associate Professor at the Department of Innovation and Organizational Eco-nomics at CBS He is also affliated with the Centre for Shipping Economics and Innovation at CBS Reneacute Taudal Poulsen holds a PhD degree in marine environmental history from the University of Southern Denmark and he has worked within the field of maritime business studies for the last seven years He has published in such journals as Fisheries Research Business History and Scandinavian Economic History Review

His current research intersts concern the environmen-tal challenges faced by the global shipping industry and business model innovation in the maritime domain

Research

35CSQ

It is clear that shipping companies cannot fully bridge the energy efficiency gap alone In fact factors beyond the control of in-dividual shipping companies and various structural or legal barriers prevent shipping from fully realizing the slow steaming po-tential

Port congestion remains a world-wide prob-lem and causes ships to spend remarkably long periods inactive Despite the financial crisis and the large drop in shipping freight markets after 2008 many loaded vessels sit at anchor outside ports waiting for berths In some cases they wait for a few hours In other cases for days weeks or even months Instead of waiting the ships could have re-duced speeds and saved fuel And the de-livery and the loading of the cargo in port would not have been delayed in any way However in many cases shipping companies or ship operators cannot reduce speed in spite of port congestion

Educational barriers

Energy efficiency gaps in shipping are also evident when the fuel consumption levels of sister ships are compared Even though the vessels are identical and operate in the same waters studies have shown that their fuel consumption may differ by several Decisions made by the crews onboard and by managers in the onshore organizations clearly influence the level of fuel consump-tion For instance if a captain selects only very small course deviation margins when coding the autopilot of the ship the shiprsquos rudder will move frequently to keep the ship on the exact course all the time This will slow down the ship and cause higher fuel consumption than if the captain had allowed for slightly wider margins and the wider margins would not have any effect on the safety of the ship Decisions made by the commercial depart-ments eg on how to crew the vessels how to monitor vessel fuel consumption or which new equipment to install onboard may also

have a large impact on fuel efficiency and emission levels If shipping company man-agers can nurture a fuel saving culture this could potentially make a difference Since 2007 or 2008 shipping companies have in-deed started to facilitate such organizational changes but educational barriers remain a problemOnshore truck drivers are now offered fuel saving courses but fuel-saving is not a major part of the traditional curriculum in nautical schools or in the commercial education of shipping trainees For good reasons the nau-tical educations have focused on maritime safety but this has caused them to neglect the climate challenge in shipping and the is-sue of fuel saving In fact no single nauticaltext book on maritime fuel savings has yet been published and according to teachers and students in the nautical schools this serves as an educational barrier to ener-gy-efficiency improvements The technical level of education for commercial employees in shipping companies may also hinder im-provements in energy-efficiency Some com-

mercial shipping employees may not have sufficient training to fully see and acknowl-edge the consequences of their decisions on fuel consumption In short it seems that fuel awareness and the educational systems have responded more slowly to the climate chal-lenge than the rise in fuel prices may other-wise suggest

For shipping to bridge energy-efficiency gaps education ndash both nautical and com-mercial ones ndash clearly is an area to set in Here the potential for innovative solutions is both evident and pertinent Changing educational systems and awareness is no easy task bearing in mind the global nature of the shipping industry and international crewing of the world fleet It is clear howev-er that educational upgrading is necessary for shipping to effectively address the cli-mate challenge effectively

Charter parties between ship-operators and shippers state a specific time of arrival for the vessel and in order to avoid claims ships proceed to port accordingly regardless of berth availability Experiments with new more flexible charter parties which allow for slow steaming in case of port congestion have recently been made Shipping compa-nies have generally been enthusiastic about this flexibility but often shippers remain skeptical Lack of trust between shippers which need the loading of their cargoes as soon as possible and shipping companies may be a cause for this discrepancy Even in cases where the savings made from slow-steaming are split between shipping companies and shippers shippers have re-mained skeptical Port queuing systems may have a role to play here

Many ports including some of the major container iron ore coal and grain ports serve ships on ldquofirst-come first-servedrdquo ba-sis Ships only receive their ldquoticketrdquo in the

waiting line upon their arrival at the port Again lack of trust between the ship-oper-ators shippers and the port authorities may explain this phenomenon Moreover port authorities currently do not have incentives to change queuing practices because they cannot gain a share in the fuel savings made from slow-steaming

The problem is particularly strong in the major tramp shipping segments of tanker and dry cargo shipping where vessels act as ldquotaxis of the seardquo serving numerous shippers and rarely calling at the same ports If the fleet from a shipping company only calls at a particular port once a year and the compa-ny has very short-term relations to individ-ual shippers building trustful relationships between the parties remains a major chal-lenge Solving this problem and realizing the full potential of slow steaming will require systemic innovation in shipping and port systems and further studies are required to identify possible solutions

36 CSQ

The Wind turbine industry -

Emerging global innovation networks in Europe and China

The wind turbine industry has developed into a global network encompassing a large amount of diverse actors within innovation production and installation of wind turbines across the globe

By Stine Haakonsson and Julia Kirch Hollitsch Department of Business amp Politics CBS

market for wind energy Chinese actors have turned China as a location into another im-portant lsquohubrsquo in this network This has led to new forms of innovation collaborations between European and Chinese actors The result has been a complete re-configuration of the industry over the past decade In the International Business and Economic Geog-raphy literatures the development of global production networks in which lead-firms be-come orchestrators of dispersed production

enmark has traditionally played a key role as an lsquoinnovation hubrsquo and com-

panies in Denmark remain among the lead firms within the wind turbine industry Re-cently the industry has reorganized from being located predominantly in the Triad regions (mainly in Europe and the US) to becoming a globally dispersed industry This development can partly be explained by de-velopments in international and national politics Due to the growth of the Chinese

activities in globalized value chains is well established theoretically as well as empiri-cally In the globalization process lead firms relocate production activities to low cost lo-cations by off-shoring and through vertical disintegration and outsourcing to specialized suppliers Producers of wind turbines are no exception However until recently the mar-ket and innovation activities remained con-centrated in Europe and US

With the recent focus on global politics for a post-carbon society the market for wind tur-bines has experienced an immense growth and a high degree of market globalization New locations have developed into main markets One of these is China which since 2010 has been the largest market for wind turbines in the world (in capacity installed) The globalization process in the wind tur-bine can be explained by a combination of offshoring of production by European lead firms mainly through foreign direct invest-ment and establishment of domestic lead firms in emerging markets In 2010 there were four Chinese-owned companies among the top-10 producers of wind turbines as compared to 2003 where all firms on this list were from Europe and the US

D

Julia Kirch Hollitsch

Stine Haakonsson

Stine Haakonsson and Julia Kirch Hollitsch from Depart-

ment of Business and Politics CBS are engaged in the

Sino-Danish Center for Research and Education (SDC)

project on Wind Energy in China Both research on the

current restructuring of industries and firms at the glob-

al level (outsourcing off shoring global value chains)

In particular their research is on 1) the restructuring of

innovation and RampD activities into global innovation net-

works(GINs)2)thechangingroleofemergingmarkets

(ChinaIndiaBrazilSouthAfrica)intheseemergingGINs

and 3) technology transfer and capability building related

to renewable energy

Research

37CSQ

by adapting their products to the Chinese market and through cost-out development activities in the new locations primarily China

As a result the wind industry is today highly knowledge-intensive and internationalized Due to increased attention and investments in sustainable transition policies and car-bon-reducing technology China has over the past decade developed into a high prior-ity investment area for wind turbines Also Chinese companies are upgrading technol-ogy and innovation from the global firms through integration into GINs Moreover the production and innovation networks for wind energy become highly complex and consist of many different suppliers of com-ponents (blades gear boxes control systems bearings) resulting in a variety of network linkages among suppliers of different com-ponents and the wind turbine producers

From our empirical data including more than 40 in-depth interviews collected in 2011 and 2012 in the wind turbines indus-tries in China and Denmark we have identi-fied some very interesting patterns We have identified very different characteristics of the GINs established by the Chinese wind tur-bine industry and the European wind tur

Emerging Global Innovation Networks

Innovation processes are also moving be-yond the boundaries of individual compa-nies and national innovation systems Firms engage in cross-border innovation networks spanning different innovation systems which may be national regional or sectorial in or-der to stay competitive in the global econ-omy Chinese lead firms are entering this scene too The result is globally organized networks of interconnected and integrated functions and operations by firms and non-firm organizations engaged in the develop-ment and diffusion of innovations so-called Global Innovation Networks (GINs) Lead firms internationalize innovation through strategies of exploitation global generation of innovation and global techno-scientific collaborations Chinese wind turbine pro-ducers ndash acknowledging their resource and capability deficiency ndash pursue strategies of innovation network integration through strategies of global generation of innovation These firms link up with specialized Europe-an actors such as core component suppliers through partnerships and networks in or-der to tap into the technology of firms from developed countries and upgrade Mean-while European companies internationalize through exploitation strategies for example

bine industry Although Danish and Chinese actors are experiencing a re-organization of activities and establish networks and globa-linnovation strategies the result is very dif-ferent

The industry from Europe and US

The industry from Europe and the US hosts the lead firms in terms of core technology de-velopment Denmark has traditionally played a key role as lsquoinnovation hubrsquo in technology development and global lead firms such as Vestas and Siemens Windpower (previously Danish lsquoBonusrsquo) took its start already in the 1970s The core competences of the Danish wind turbine innovation system are based on large testing facilities and long track records mainly due to the long time-line of experi-ence The wind industry goes 40 years back and therefore Denmark has a good knowl-edge pool within establishing wind farms (aerodynamics minimizing power loss in energy transmission wind mapping and other installation-related technologies)

38 CSQ

that will make it possible to finance the pro-jects ldquoFrom then on our wind turbine pro-jects developed very fastrdquo(Interview Wind Engineer Chinese Academy of Sciences) Thus this law was a milestone for elevating renewables to a strategic position in China or as expressed by a European lead-firm ldquoWhat drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick offrdquo

Until the turn of the millennium Chinarsquos wind energy industry was largely built on donors acquisition of finished wind turbines and licensed technology from European companies spread on a very small scale into the local industry during the mid 1990s Chi-nese wind turbine technology has evolved from imitation reverse engineering and licensing in the 1980-90s combined with assistance from foreign consultants One example is how DANIDA funded a project in 1986 for Goldwind in Xinjiang which imported 13 units of 150 kW lsquoBonusrsquo (now Siemens Wind Power) turbines

To get beyond the stage of pure imitation several policies have been introduced with the intent to upgrade Chinese manufacturers to obtain indigenous innovative capabilities Policy programs were introduced to enhance Chinese companies to develop wind energy subsidizing wind energy RampD expenditures at varied levels over time establishing a re-newable energy fund and through the ldquo863 Wind Programrdquo under the Tenth Five-Year Plan (2001-2005) Local content require-ments were put in place in which develop-ers of wind energy projects were required to source 70 pct of the content in China These policies ndash which essentially forced foreign manufacturers wishing to sell wind turbines to the Chinese market to establish China-based manufacturing facilities ndash were only removed recently (in 2009) One result was that the foreign companies had to up-grade local suppliers of components

Due to the technological complexity many European (and hereby also the Danish) firms are vertically integrated and have most com-ponents produced in-house or with regular specialized suppliers According to these companies the different parts need to be well adjusted to each other to some extent even co-developed in order to enhance effi-ciency and the lifetime of the wind turbine Likewise the European industry has expe-rienced a concentration of actors with the result that there are only relatively few but large manufacturers in Europe (the larg-est ones are Vestas Siemens Gamesa and Enercon) Together these four companies accounted for about 35 of the global mar-ket in 2010 By seeing the wind turbine as an integrated system these lead firms aim at producing lsquothe Rolls Roycersquo model wind turbines These are strong in terms of qual-ity and standards but generally expensive These firms learn cost-out techniques from their engagement with partners in China

The Chinese Wind Turbine Industry

Today the Chinese wind turbine industry is overly competitive It entails more than 80 wind turbine manufacturers and the Chi-nese market boasts the highest growth rates internationally with an average growth rate of 968 percentages annually in the last three years Several large domestic Chinese wind turbine manufacturers have emerged within the last decade Sinovel and Goldwind take the largest share followed by United Pow-er and Ming Yang just to mention some of them As of the end of 2010 these four were A major driver for the development of the Chinese wind energy market has been the establishment of an institutional context as a comprehensive concerted policy frame-work addressing the development of renewa-ble energies This change in the institutional context was first reflected clearly in the 11th 5-year-plan (2006-2010) which explicitly linked environmental sustainability to the key goal of establishing what was called a harmonious socialist society signalling a socially environmentally and economically sustainable economy With the Renewable Energy Law from 2005 the Chinese wind energy industry really took off as it explicitly seeks to ensure that renewable energy pro-jects have an outlet for their output at prices

Technical barriers and the role of GINs for a post-carbon society

Despite high ambitions in terms of devel-oping innovative capabilities Chinese pro-ducers still produce almost exclusively for the Chinese market However Chinese wind turbine manufacturers have recently started an internationalisation process and some are approaching international markets Not least for tapping into new knowledge

Europe (and Denmark in particular) is per-ceived as a main location from which the Chinese companies can learn more A cou-ple of Chinese companies have already set up RampD centres in Denmark European firms have also initiated RampD centres in new lo-cations primarily China and India In other words GINs can be identified

Our research also points towards important barriers for GINs in the wind turbine in-dustry and for approaching a post-carbon global society Most importantly are the technological barriers intellectual property rights quality issues and issues of limited appropriability of knowledge Further the institutional framework remain relevant for displaying how the sector and the emerging GINs are embedded institutionally socially and technologically Whether actors trans-act knowledge technology and know-how through cooperative innovation activities also depends on how core the technology of a given technology is Still as the market grows in China it seems to have matured in Europe because of changing policies on re-newable energy To sustain the position as a global lsquohubrsquo and world leader in wind tech-nologies there is a strong need for support in Europe as this research really shows how fast the Chinese industry is moving One major result is how important networks are for upgrading companies and it seems that Chinese firms perform better in network strategies and manage to tap into relevant knowledge than the European firms

What drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick off rdquoldquoInterview Wind Engineer Chinese Academy of Sciences

39CSQ

Social Enterprise World

ForumNadine Koumlcher from 180Degrees recounts her experience from the

conference on

Rio de Janeiro Brazil 2012

In the numerous panel debates and parallel track discussion it became clear that Impact Investment is a hot topic among both social entrepreneurs and impact investors a diverse group consisting of corporations founda-tions and potential donors However various obstacles impede a harmonious relationship between the twoSocial enterprises face structural challenges to make themselves more appealing to im-pact investors They have to become more transparent and increase their accountability This includes improving their impact assess-ment and reporting tools However despite much discussion no consensus could be formed on how to optimally conduct im-pact assessment One of the most frequently proposed methodologies involves the use

From the 16th to the 18th of October the CBS Sustainability Platform granted me the opportunity to attend the 5th Social Enter-prise World Forum which took place in Rio de Janeiro Brazil This yearly international conference focuses on social enterprises and their effectiveness in solving social challeng-es The overall theme of the 2012 conference hosted by NESsT was ldquoSocial Enterprise Investing for Impactrdquo Thus for three days over 180 speakers and 650 delegates from 30 different countries shared their experiences regarding impact investment and discussed possibilities to attract new investment by both the public and the private sector for so-cial enterprises

of control groups Story-telling has also been men-tioned to be a powerful tool to provide investors with a proof of outcomesSocial investors are willing to accept returns just below the market rate in exchange for a social return However large profits are still expect-ed and many social enter-prises are afraid of being unable to generate them Social enterprises typically operate on a small scale and are not used to undertake large projects with huge sums of investment given to them Many are too small for social investors to be

attractive as costs are similar for small and large investments although larger invest-ments have a higher payoff

Nichole Echert the CEO of NESsT there-fore pointed out that it is necessary to align expectations between impact investors and social entrepreneurs and to be patient in establishing a relationship between the two groups The expected financial return has to be reasonable close to covering the costs of operation and social returns have to be re-ported to investors by use of clearer criteria

By Nadine Koumlcher Director of Branch Development180 Degrees Consulting Limited

ldquoSocial Enterprise Investing for Impactrdquo

Students

40 CSQ

A highlight of the con-ference was definitely the site visit to a social enterprise project in a recently pacified fave-la It brought further insights on the great variety of social enter-prises that exist in Bra-zil and their missions and struggles We visit-ed a community center at which Comitecirc para

Democratizaccedilao da Informaacutetica (CDI) uses technology to fight poverty and to stimulate entrepreneurship CDI has formed a corpo-rate partnership with Coca Cola which in the same building teaches young locals how to write a CV and find a job Talking to the young locals at the center it became apparent that an increased self-confidence and the in-spiration they get from meeting former now employed participants of the project (eg at Coca Cola) is what they valued most of being part of the class

Participating at the conference was definite-ly a unique and valuable experience I would not want to miss as I tremendously improved my knowledge in the field of social enter-prises through attending the numerous pres-entations and discussions and further met so many inspiring social entrepreneurs impact

In addition it has been stressed that the problem is not a shortage of investment capital (even though the government could promote more impact investment by for instance granting tax breaks) but how to deploy it Social entrepreneurs also have to be aware of the different advantages and dis-advantages of the various types of capital It has to fit their process of establishment and it has therefore been suggested that funds and grants are most optimal in the start-up phase to cover such costs as capacity train-ing There is generally a lack of this early stage financial support Following the initial phase strategic philanthropy money would be most appropriate before impact and final-ly equity investment is sought Furthermore new ways of investment which fit the social enterprise world have to be created replac-ing the current situation of trying to fit social enterprises into the current financial world

investors and students with a genuine inter-est in the field

Participating at the conference was definitely a unique and valuable experience rdquo

ldquo

Social Enterprise World Forum 2013 in

Calgary Canada

The TRICO Charitable Foundation in part-nership with the Social Enterprise Council of Canada and the Social Finance Forum has been selected to host the 6th Annual Social Enterprise World Forum SEWF 2013 will take place October 2-4 2013 in Calgary Al-berta The Forum will present the Canadian social enterprise movement with opportuni-ties to engage learn and share on the inter-national stage

SEWF 2013 will be a gathering of over 1000 Canadian and international delegates who are involved in the social enterprise move-ment where the blending of social and fi-nancial values is core to business Attendees will consist of practitioners (from all sec-tors) funders investors supporters elected officials and public servants from around the world

Nadine Koumlcher

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 3: CBS Sustainability Quarterly 2013 #1

3CSQ

Editorial 2013CSQ1

Welcome to a new spring semester and a new issue of the CBS Sustainability Quarterly

HighlightsIn this issue we discuss sustainability issues in developing countries with the Danish Minister for Development Cooperation Christian Friis Bach and what these entail for Danish business and CBS as a business school We also introduce you to the six new Sustainability Clusters which are led by a number of engaged CBS colleagues The six clusters focus on (1) Green Innovation and New Business Mod-els (2) Sustainable Transitions in Developing and Emerging Economies (3) Governing Sustainability (4) Communicative Dimensions of Sustainability (5) Sustainability in the Post-Growth Economy and (6) Corporate Governance and Leadership for Sustainability Strategy The purpose of the Sustainability Clusters is to contribute to sharpening the definition of what CBS currently does and will do in the future on sustainability issues The Clusters will work to highlight and position sustainability competences at CBS and facilitate multidis-ciplinary collaboration

What is happening at CBS on SustainabilitySince the publication of our previous issue the Platform has facilitated a number of conferences seminars and workshops on a variety of sustainability topics ndash such as the Greening of Supply Chains Sustainability in a Post-Growth Economy Corporate Governance and Corporate Social Responsibility the Cultural Political Economy of Climate Change and Cause-Related Marketing In our January appli-cation round which is one of our three annual funding application rounds the Platform allocated seed funding to 16 new sustainability projects submitted by CBS researchers and students We can also report that the Platform now accepts smaller applications of less than 25000 kroner on an ongoing basis in order to allow some flexibility for supporting innovative ideas with a shorter time horizon We in-vite you to visit our website wwwcbsdksustainability for more details on how to apply We also want to bring your attention to the new CBS UN PRME Secretariat Progress Report which can be found at wwwunprmeorg The report showcases how CBS is making great progress on responsible management and sustainability in research education and stakeholder engagement

What is coming upThe spring and early summer will be a busy time for all things sustainability at CBS Among the guests that we will welcome for seminars are international scholars Jeremy Moon Nottingham Business School and Mick Blowfield Oxford University as well as Cass Sunstein from Harvard Business School whom we will host in collaboration with the CBS Public-Private Platform The Sustainability Platform will also welcome our first Adjunct Professor Annette Stube Head of Group Sustainability at AP Moller-Maersk with an inaugural lec-ture on 2 April And in June we will co-sponsor the Sustainability in a Scandinavian Context Conference which will bring together more than 100 international academics and practitioners working with sustainability

Thanks to the many people who have contributed to this fourth issue of CSQ Barbara Louise Bech Jenny Mead Oana Brindusa Albu Mikkel Flyverbom Hans Krause Hansen Reneacute Taudal Poulsen members of the student organizations 180 Degrees Consulting and 360deg Students for Sustainability Lene Mette Soslashrensen Marie Koustrup Frandsen Michael Nguyen Christian Charity Christian-Philip Lun-dahl Satu Reijonen Julia Kirsch Hollitsch Louise Lyngfeldt Gorm Hansen Elise Lind Jacobsen Line Pedini Rasmussen Soslashren Jeppesen Stine Haakonsson Andreas Rasche Jette Steen Knudsen Anker Brink Lund Julie Uldam Anne Vestergaard Christian Erik Kampmann Jens Froslashslev Christensen Bersant Hobdari Ole Bjerg Bent Meier Soslashrensen Christian Friis Bach Jonas Soslashdergran and Kirsti Reitan An-dersen The next issue of CSQ will be out in August As always please contact us if you would like to contribute or if you have comments to this issue and the Platformrsquos work in general

Mette Morsing Stefano Ponte Elisabeth Crone Lindingsustainabilitycbsdk

4 CSQ

In this issueCSQ updates

Updates from partner organizations

Students

Events at CBS

PHD Focus

Research

CSQ Interviews

Update 5

Research clusters launched 6-9

Past Events 41-42

Upcoming Events 43

Hydropower Sustainability 29-31in China

Social Enterprise World 39-40Forum

Jenny Mead 10-11

Christian Friis Bach 12-14

180 Degrees 15

360 students 16

PRME 17-19

cbsCSR 20-21

CBS Goes Green 22

COBREN Biofuel 23-26Conference

Transparency-Sustainability 27-28 Nexus Workshop

Energy Efficient 32-33 Construction

The Climate Challenge in 34-35Shipping

The Wind Turbine Industry 36-38

5CSQ

Update

Next application deadline for Sustainability

Platform funding is 15 May

Applications of less than

25000 DKK can be submit-

ted on an on-going basis

Call for papers Journal of Consumer Policy Special

Issue - CBS Harvard Collaboration

Call for papers Sustainability in a Scandinavian Context

Conference at CBS

activities supporting sustainability research and education at CBS including expenses in connection with workshops seminars and conferences travel visiting faculty and salary for research or student assistance but please note that the Platform is not allowed to compensate faculty with internal buyout (frikoslashb) Please remember to use the ap-plication form to be found on our website when applying And do contact us if you have any questions beforehand

It is now possible to submit applications for smaller initiatives of maximum 25000 DKK to the Sustainability Platform on an on-going basis This is done to increase flexibility and create space for facilitating sustainability in-itiatives with a more short-term perspective When applying the Platform for support please also use the application form to be found on our website httpwwwcbsdkencbs-focusbusi-ness-in-society-bis-platformssustaina-bility

The Journal of Consumer Policy will publish a Special Issue on Behavioural Economics Environmental Policy and the Consumer edited by Professor Lucia A Reisch (CBS) and Professor of Consumer Behaviour and Consumer Policy Cass R Sunstein (Harvard University and Harvard Law School USA) In 2011 the Journal published a Special Issue focusing on ldquoBehavioural Economics Consumer Policy and Consumer Law ndash An interdisciplinary Perspectiverdquo Following on this trajectory the present Call focuses on the increasingly discussed possibility of applying behavioural economics to ldquonudgerdquo consumer choice and behaviour in the domain of environmental protection The editors invite both conceptual and empirical papers with a variety of perspectives (including both ldquoprordquo and ldquoconrdquo) and from a variety of disciplines Papers have to be submitted be-fore October 1st 2013 and according to the submission and author guidelines available on the journal website httplinkspringercomjournal10603 The publication of the Special Issue is scheduled for March 2014

On 10 and 11 June the Sustainability in a Scandinavian Context Conference 2013 will be held at CBS The con-ference is intended to bring academics and practitioners together to consider sustainability in a Scandinavian context and the potential development a research paradigm dedicated to exploring sustainability in a Scandinavian context Extended abstracts of between 500 - 1000 words are due by 10 April 2013 Accepted extended abstracts will be made available on the conference website and printed in the conference proceedings Extended abstracts will be considered with regards to their fit and potential contribution to the Sustainability in a Scandinavian Context Conference 2013 and furthermore with regards to their potential contribution as fully developed articles to a special issue dedicated to ldquoSustainability in a Scandinavian Contextrdquo This special issue will be with a respected international academic manage-ment journal (to be announced in advance of the conference) that will be edited by professors R Edward Freeman Kai Hockerts Mette Morsing and Robert Strand The call for the full articles will be early 2014 Please go to the confer-ence website httpwwwconferencemanagerdkssc2013conferencehtml for more information

Since its launch in July 2011 the CBS Sus-tainability Platform has been pleased to support a number of sustainability-related initiatives across CBS departments and dis-ciplines - and we are still very interested in receiving new applications for initiatives The next round of applications is due on 15 May 2013 n this round the Sustainability Platform will support initiatives with budg-ets up to 200000 DKKThe Platform is able to support a long list of

CSQ Update

6 CSQ

Six New Sustainability

Clusters Launched at CBS The CBS Sustainability Platform is happy to announce the launch of six new Sustainability Clus-ters in 2013 With the energy of a number of CBS colleagues that have taken on the responsibility of leading the Clusters the Platform hosted a kick-off meeting in January where focus and ideas for future activities of the Clusters were discussed among the Cluster leaders

Green Innovation and New Business Models

Corporate Governance and Leadership for

Sustainability Strategy

Sustainable Transitions in Developing and

Emerging Economies

Governing Sustainability

Communicative Dimen-sions of Sustainability

Sustainability in the Post-Growth Economy

he purpose of the Sustainability Clus-ters is to contribute to sharpen the

definition of what CBS does and will do on sustainability for the future The Clusters will thus work independently with researchers across CBS to highlight and position sustain-ability competences at our business school and facilitate multidisciplinary collaboration within and beyond CBS

With seed funding from the Platform the Cluster leaders plan for a number of activi-ties over the next few years within research education and outreach working as lsquocon-necting hubsrsquo for researchers at CBS that are engaged or wish to become engaged in spe-cific thematic areas within sustainability

Clusters will develop in-itiatives within research education as well as outreach in a variety of mixes Some will focus their efforts on developing new con-tent for Sustainability teaching and integrat-ing it into new andor existing courses and programs others will focus on developing new research projects and applications for external funding involving international re-search colleagues and corporate partners Some Clusters plan to facilitate the author-ing of journal publications and books as well as summarizing relevant literature in the field and making it available to inter-ested scholars at CBS There will also be efforts to work closely with students and external stakeholders on conferences sem-

inars and workshops and to invite interna-tional researchers and practitioners to share their thoughts on sustainability Activities will naturally depend on the particular inter-est of the CBS researchers that wish to take part in the Cluster

Cluster leaders as well as the Sustainability Platform team would like to hear from you on new ideas for activities comments or questions or on whether you would like to be engaged

T

CSQ Update

7CSQ

The Cluster on Green Innovation and New Business Models focuses on discussions and challenges around the increasing problems of global warming resource scarcity and en-vironmental deterioration which have a sub-stantial and comprehensive impact on future business conditions Companies must devel-op strategies to mitigate risks from supply disruptions social unrest rising materials costs and pressures from regulators NGOs and the general public The efficient use of resources will be an important competitive parameter and the need for sustainable pro-duction and resource use will open up new opportunities for innovations in technology products services and business models

The focus of the Cluster on Sustainable Tran-sitions in Developing and Emerging Econo-mies stems from the notion that developing and emerging economies (DEEs) are one of the main engines of contemporary growth in the global economy They face massive transitions in economic social and envi-ronmental terms In order to explain how business in these countries can contribute to sustainable growth the Cluster explores (1) innovative approaches and North-South partnerships on technology co-production

This Cluster will explore and analyze theo-ries frameworks and empirical evidence on the conditions and tools for promoting and managing sustainable innovation and busi-ness models with focus on environmental issues The Cluster will seek a coordinated alignment of both technological (and prod-uct and process) development and business model innovation including market plat-forms and infrastructures

Professor Jens Froslashslev Christensen (jfcinocbsdk) and Associate Professor Christian Erik Kampmann (cekinocbsdk) the De-partment of Innovation and Organizational Economics

and transfer within clean-tech industries (2) green innovation networks and capacity building in DEEs (3) social entrepreneur-ship and social business models in DEEs and (4) sustainability strategies of global firms that have implications in DEEs (Base-of-the-Pyramid markets Sustainable Value Chains) Associate Professors Soslashren Jeppesen (sjiklcbsdk) the Department of Intercultural Communication and Management and Stine Haakonsson (shdbpcbsdk) the Depart-ment of International Business and Politics

The six CBS Sustainability Clusters will be

focused on the following themes

Green Innovation and New Business Models

Sustainable Transitions in Developing and Emerging Economies

Stine Haakonsson

Jens Froslashslev Christensen

Christian Erik Kampmann

Soslashren Jeppesen

8 CSQ

The Cluster on Governing Sustainability takes it starting point in the recent flourish-ing of private governance of sustainability initiatives Private actors such as business firms and civil society groups have created numerous initiatives addressing pressing so-cial and environmental problems both at the national and transnational levels Some of these are strictly private others are collaborative efforts with the public sector In this Cluster we are particularly interest-ed in examining corporate codes of conduct public-private partnership agreements labe-ling schemes and standard setting by mul-ti-stakeholder initiatives with a focus on (1) legitimacy and accountability processes and

strategies related to private sustainability governance (2) the effectiveness and impact of sustainability initiatives (3) the dynamics of the relationship between hard and soft law (4) the influence of the state on private sustainability governance and (5) the or-ganization of sustainability management in transnational firms Professor Andreas Rasche (ariklcbsdk) the Department of Intercultural Communi-cation and Management and Associate Pro-fessor Jette Steen Knudsen (jskdbpcbsdk) the Department of International Business and Politics

Governing Sustainability

This cluster invites for exploration of the communicative construction of sustainabili-ty across a variety of interests and stakehold-ers Organizations are traditionally under-stood as instrumental spaces for managers to produce products and processes towards a more sustainable society However increas-ingly organizations appear as social and moral spaces where the meaning and role of sustainability is communicatively negotiated and co-constructed and no definite agree-ment seems to be achieved across publics This development poses new challenges for business in their continous work to appear as legitimate participants vis aacute vis civil society the political system and other organization-alcorporate actors In this cluster we focus on (1) how communication of sustainabili-ty has become a strategic tool for managers working in business ngos and policy-mak-ing (2) how traditional and social media play

an important role in mediating issues of sus-tainability across publics (3) how marketing and branding of sustainability influences consumption and public opinon and (4) how different forms of political and corpo-rate communication (via persuasion facts dialogue etc) about sustainability raise questions about the democratic models that underpin sustainability discourses Against this backdrop the sustainability cluster brings together leading academics from a range of disciplines to explore the role and meaning of communication in a broad sense for the development of sustainability

Cluster leaders Professor Anker Brink Lund (abldbpcbsdk) the Department of Inter-national Business and Politics and Assistant Professors Julie Uldam (juiklcbsdk) and Anne Vestergaard (aviklcbsdk) the De-partment of Intercultural Communication and Management

Communicative Dimensions of Sustainability

Anne Vestergaard

Julie Uldam

Anker Brink Lund

Andreas Rasche

Jette Steen Knudsen

9CSQ

The Cluster on Sustainability in the Post-Growth Economy starts from the realization that the era of perpetual economic growth may be over The Cluster explores and devel-ops ideas and imaginaries of what a sustain-able post-growth economy might look like The purpose of such effort is to transform the end of growth from being the cause of social economic and ecological depredation into being an opportunity for the creation of new forms of economic organization that do not rest upon the condition of growth We ap-proach this challenge by starting to rethink some fundamental economic concepts from the perspective of a post-growth economy

What is a company What is work What is leadership What is money What is con-sumption What is a market And what is in fact economic growth The Cluster will ap-proach these questions theoretically by look-ing into their assumptions rooted in the par-adigm of growth capitalism and empirically ndash by studying actual practices of alternative economic organization Associate Professor Ole Bjerg (oblpfcbsdk) and Professor Bent Meier Soslashrensen (bmslpfcbsdk) the Department of Man-agement Politics and Philosophy

Sustainability in the Post-Growth Economy

The Cluster on Corporate Governance and Leadership for Sustainability Strategy focus-es on managerial behavior and performanc-es related to responsibility in corporations with a particular interest in how managers and leaders in firms relate to and behave vis aacute vis expectations to corporate sustainability strategies policies and action The Cluster will invite discussions that engage with how responsibility issues play a role in shaping systems and models of corporate governance and leadership and conversely how different models impact corporate responsibility and performancesThe emphasis will be placed on bringing into the management debate to what extent responsibility brings demands

for new management competences and man-agement models The Cluster is particularly but not exclusively interested in exploring the relationships between sustainability and corporate performances with (1) board of director characteristics (2) corporate owner-ship structures (3) shareholder activism (4) leadership approaches (5) ethical consider-ations regarding corporate governance and leadership and (6) comparisons of corporate governance and leadership approaches in a Scandinavian context vis-agrave-vis other global contexts

Associate Professor Bersant Hobdari (bhintcbsdk) the Department of Internation-al Economics and Management

Corporate Governance and Leadership for Sustainability Strategy

Bent Meier Soslashrensen

Ole Bjerg

Bersant Hobdari

10 CSQ

Writing a good business case

from a Hollywood perspective

Jenny Mead (left) picture from readthehookcom

On November 28 2012 Kirsti Reitan Andersen temporary project manager at CBS Sustainability Platform interviewed Senior Research-er Jenny Mead Darden School of Business University of Virginia in extension of her visit to CBS Jenny Mead was here to host a workshop and one-on-one sessions on how to write good business cases with a focus on sustain-ability

Interview with Jenny Mead Senior Researcher Darden School of

Business

Could you tell a little bit about yourself

ldquoI have been at Darden School of Business for the past 10 years I write cases about business ethics sustainability strategy and leadership I am not a business person at all but call my-self a writer because that is what I prefer I write stories I have worked in the film busi-ness in Hollywood where I worked as a De-velopment Executive It means that I looked for projects that could be made into movies Again I am not a business person at allIn the 1920s Harvard University started case-based teaching Darden followed through on the case tradition in 1950s Darden has con-tinued to focus on business ethics as key in educating students From the 1950s onwards

in the first year of undergraduate studies we have had a mandatory business ethics course This tactic has developed a large student body which is constantly aware of business ethics as an integrated part of business life The business ethics cases I write have an ele-ment of ethical ambiguity and decision-mak-ing that contains ethical considerationsrdquo You are visiting CBS to host a case-writing workshop and one-on-one sessions with as-piring case-writers What have the partici-pants gained from the workshop

ldquoThey get a primer of what a business case looks like They learn what a case looks like and are given an exercise where they have to

craft a case and have colleagues critique that The second day concerns teaching notes If a professor from another business school wants to teach it they can get the teaching notes that suggest how to teach the casesrdquo

What is a good case and why are cases ben-eficial for teaching

ldquoInstead of using textbooks in classes teach-ers can make use of business cases Generally a case should present a dilemma that has to be solved or a business decision that has to be made by the protagonist in the caseBusiness cases are a good way of placing the student in the shoes of a manager or decision maker Giving him or her the practical expe-

CSQ Interview

11CSQ

Writing a good business case

from a Hollywood perspective

Jenny Mead and Jonas Hedman from Department of IT Management at Copenhagen Busimess School

From the workshop at Copenhagen Business School

riences in a safe environment ndash no company is going bankrupt based on the decisions It is almost real world training but you are not in the real world A feature of case teaching at Darden School of Business is the use of small video clips of the protagonist in the business case Instead of students just reading about the protago-nist in the case the protagonist presents the problem or issue on video to create a lively teaching environmentrdquo

Do businesses actually think about ethicsThat is a good question and I believe there is

a growing awareness I am very impressed by Darden and the students Maybe it is because of the mandatory first year ethics course but the students are very concerned with CSR sustainability and values

I am currently working on a series of cases on conscious capitalism More and more businesses are adopting true values A shift has been made towards conscious capitalism The idea of conscious capitalism is that busi-nesses realize the value of good treatment to all stakeholders Businesses exist to create value for everybody

Relevant links

Darden Case Studies

The Olsson Center for

Applied Ethics (Jennyrsquos

employer)

The Business Roundtable

Institute for Corporate

Ethics

httpwwwcorporate-ethics

orgpublicationscase-studies

httpwwwdardenvirginia

eduwebOlsson-Center-for-

Applied-Ethics

httpwwwcorporate-ethics

org

12 CSQ

SUSTAINABILITY AND

DEVELOPMENT COOOPERATIONInterview with Minister for Development Cooperation

Christian Friis Bach

Did you know that 7 out of 10 of the fast growing economies can be found in Africa Or that DANIDA funds a programme in which CBS and other Danish universities work together with universities in Tanzania Ghana and other countries to increase the quality of research and uni-versity-level education in devel-oping countries

CSQ - Elisabeth Crone Linding amp Stefano Ponte sat down with the Dan-ish Minister for Development Co-operation Christian Friis Bach to hear about how the developing world is moving ahead fast ndash and why Denmark needs to keep up in order to stay relevant

I t is not every day that we meet with min-isters on the top floor of Asiatisk Plads

ndash the official home of the Danish Ministry of Foreign Affairs and DANIDA the inter-national development cooperation branch of the Ministry Nevertheless here we are over-looking the busy waters of the Copenhagen canal and looking forward to a long-planned rendezvous with Christian Friis Bach Min-ister of Development Cooperation since the autumn of 2011

Besides spending time in the academic ranks of Copenhagen University and the political spheres of the European Commission the Minister knows a thing or two about the de-veloping world he has previously devoted his

time to positions in DanChurchAid WWF World Wide Fund for Nature MSActionAid and the Danish Ethical Trading Initiative

In its current strategy DANIDA has put a new focus on green growth renewable en-ergy sustainable agriculture and innovative solutions to enable continued access to scarce resources ndash a quite green agenda in fact But how does this resonate in a developing world that is growing very fast According to the Minister perceptions are changing with more democratic political environments be-ing built

ldquoMore and more developing countries see green growth and sustainability not as stum-

bling stones but as building blocks of a fu-ture strong economy They recognize that in a world of natural resource scarcity and increas-ing prices on for example energy they need to adopt a different growth pattern More and more poor countries are buying into this And therefore we now have a unique opportunity for shaping the political framework and ena-bling environment to create more sustainable developmentrdquo

So how does a business school such as CBS fit into this equation What can we offer

This is a key question for us to ask As the Sustainability Platform was born out of the CBS Business in Society strategy we are in-

CSQ Interview

13CSQ

terested in looking for ways to address grand societal challenges such as ensuring sustain-able development

Christian Friis Bach recognizes that CBS as a research and educational institution has a role to play here ndash maybe even a bigger role than we play now Because even though CBS is known and regarded as a very internation-ally oriented university the Minister encour-ages CBS to go even further in sharpening its global commitment and profile

ldquoMany of the problems that we have related to growth and employment in Europe are not to be found in developed countries I hope that CBS continues to engage internationally in order to shape graduates to tackle global chal-lenges For example 7 out of 10 of the worldrsquos fastest growing economies are in Africa and here I would really urge CBS to have an even stronger engagementrdquo

CBS is involved in the Building Stronger Universities in Developing Countries Pro-gramme (BSU) which is a partnership be-tween research and higher education institu-tions in selected developing countries and all the main Danish universities The long-term goal of the initiative is to make the partici-pating institutions stronger by conducting joint research projects that offer knowledge and solutions to localdomestic and global challenges to produce better graduate pro-grams and for universities to play an increas-ing role in the economic social and political development of their own countries How-ever Christian Friis Bach also encouraged close dialogue with a broader set of partner universities in the developing world as an important way for CBS to shape its research and educational efforts and thus remain rele-vant in the future

Christian Friis Bach highlighted

ldquoIt is a big world And the world moves fast And I think the challenges upon our edu-cational system in Denmark are increasing every day When I go to South Korea China Latin America or Africa I see that they look increasingly towards each other for innovative solutions not towards Europe If we need to remain relevant we do have a challenge hererdquo

For example this means looking at the econ-omies in the world that are the most innova-tive These are in many cases in the develop-ing world so this is when CBS should invest when it comes to partnering in research educational development and knowledge exchange for example among faculty and students

The Minister also notes the advantages that can be gained from globalizing our institu-tions much more broadly and working across borders and academic fields for example on

The Building Stronger Universities in Developing Countries initiative amp CBS

ldquoBuilding Stronger Universities in Developing Countriesrdquo is a partnership between research and higher education institutions in developing coun-

tries and Danish universities The long-term goal of the initiative is to make the participating institutions stronger in the sense that they

bull playanincreasingroleintheeconomicsocialandpoliticaldevelopmentofthesocietiesinwhichtheyarelocated

bull functionasnodesofinnovationandknowledgeproductionprovidingsolutionstolocaldomesticandglobalchallenges

bull produceskilledandmotivatedgraduatesthatcancontributetothefurtherdevelopmentofthesocietiesandaddressthechallenges

faced

The ldquoBuilding Stronger Universitiesrdquo initiative has a structure with four thematic platforms Copenhagen Business School contributes to one of

the four platforms under the initiative the Growth and Employment platform which is a partnership between University of Ghana (UG) Kwame

Nkrumah University of Science and Technology Ghana (KNUST) University of Dar es Salaam Tanzania (UDSM) Sokoine University of Agriculture

Tanzania (SUA) and the major Danish universities From CBS Associate Professors Soslashren Jeppesen and Michael Wendelboe Hansen the CBS

Center for Business and Development Studies is part of the project which for example seeks to develop relevant PhD programmes strengthen

growth and employment relevant research activities and research collaboration and disseminate research findings to stakeholders

wwwbsuudorg

Students Sierra Leone (picture from umdk) Photo Joslashrgen Schytte

When I go to South Korea China Latin America or Africa I see that they look increasingly towards each other for innovative solutions not towards Europerdquo

ldquo

14 CSQ

health technology and business develop-ment in cooperation with developing coun-try researchers And we need to be good at a lot more than ldquojustrdquo development coopera-tion ldquoif we want to remain relevant for exam-ple in Africa on sustainable business we can-not afford to send people out who have worked isolated in the development community here in Denmark So instead of seeing development research as a separate discipline it needs to be integrated into everything we dordquo

That is why the Minister argues for more fo-cus on educating graduates that are experts and specialists but not necessarily within development cooperation Instead he says Denmark needs graduates that can develop the best possible solutions for the developing world within energy technology etc ldquoThe fast-growing economies in China Southeast Asia Latin America Africa do not need spe-cial things made for developing markets they need top innovative solutions and high-quality products and we need to be able to offer that to them if we want to remain relevantrdquo

One of the solutions worth repeating is that of partnerships According to the Minister universities need to remember that partner-ships with other research institutions as well as with private companies and organizations can provide greater insight

ldquoYou need not only public-private partner-ships but large-scale multiple partnership Still universities can sometimes behave as isolated entities Of course universities need to focus on the core business of researching and educating students but they will also in-creasingly be challenged to engage in these in-ternational and multiple partnerships This is where you will find some of the most inspiring

About Christian Friis Bach

Born 1966 in Frederiksberg Denmark Married three children Lives on a hobby farm near Ganloslashse

Present officeMinister for Development Cooperation 3 October 2011 ndash

Education1992-1996 PhD International Economics Royal Danish Agricultural University Copenhagen 1986-1992 MSc Agronomy Royal Danish Agricultural University Copen-hagen

Work Experience2010-2011 Special Advisor for EU Commissioner Connie Hedegaard (UN Global Sustainability Panel) 2010-2011 CEO ViewWorld ApS 2009 Affiliated Professor in International Economics and Development at the University of Copenhagen 2005-2010 International Director DanChurchAid 2002 Journalist at the Danish Broadcasting Corporation (DR) 1999-2005 Associate Professor International EconomicsDevelopment Economics Royal Danish Agricultural University (University of Copenha-gen)

Other engagements2010-2011 Member of the Board of the Danish United Nations Associa-tion 2008-2010 Initiator and Board Member of the Danish Initiative for Ethical Trade 2008-2009 Member of the Danish Africa Commission 2007-2011 Member of the Presidium for WWF World Wide Fund for Nature Denmark 2000-2006 Board Member International Institute for Sustainable Develop-ment 1997-2001 Chairman Mellemfolkeligt Samvirke (Danish Association for International Cooperation)

Christian Friis Bach has published a large number of books reports and ar-ticles in newspapers and magazines Please see wwwfriisbachdk for details

15CSQ

In December 180 Degrees Consulting (180DC) finished its third round of pro-bono social impact consulting projects with even more success than in previous semes-ters All consultants showed dedication and motivation by spending a large amount of their spare time to work with socially con-scious organizations in order to help them to improve their social impact

An overcrowded lecture room during the 180DC information meeting at the begin-ning of the semester and the high number of applications to join the consulting projects were evidence of great interest in 180DCrsquos activities Out of the 139 applicants the top 45 were selected in a two-step recruitment process and grouped into teams of five to work on the nine exciting projects lined up in the Fall 2012 semester

All projects involved Danish-based organi-zations with a strong focus on either social andor environmental sustainability The projects however differed vastly One of the consulting teams assisted Engineers Without Borders and Action Aid in developing an investment rationale for the cultivation of farmland belonging to an Indian orphanage as well as assessing the social return of this investment

Another 180DC team worked with Hertha an organization focused on the reverse in-tegration of ordinary people into a commu-nity of mentally challenged Hertha needed assistance with improving their external reporting setup to stakeholders which was achieved by developing useful tools for the organization to measure both the social and cultural impact of their activities Yet another team of consultants helped the International Rehabilitation Council for Torture Victims optimizing their internal processes and thus helping them pursue their vision of a world without torture

During the consulting period 180DC or-ganized several training sessions for the con-sultants of the organization hosted by pro-fessional consultancies and each team was assigned a mentor with expertise specific to the given project The highlight of the semes-ter was the Final Event at which all of the teams presented their projects in front of a large audience comprised of all 180DC con-sultants the 180DC board members as well as mentors clients and a jury consisting of representatives from PwC DI CBS Sustain-ability Platform BCG and VSFA The juryacutes task was to evaluate the consulting projects based on their written report and oral pres-entation Based on the creativity feasibili-ty and impact potential of the projects the chairwoman of the Jury Birgitte Mogensen PwC announced the winner of the 180DC Social Impact Award Team Engineers With-out Borders

All of the 180DC board members have throughout the semester been working hard to constantly improve the organization in or-der to ensure a high quality of the services provided to clients and of the learning ex-perience provided to students With a new extended board in place 180DC is looking forward to continue its successful journey in the upcoming semester which kicked-off in January with two international projects in Chile and Sierra Leone ndash thanks to the sup-port of the CBS Sustainability Platform

by Nadine Koumlcher

UPDATE FROM 180DEGREES180 Degrees Consulting is an international student consultancy that works with growing non-profits helping them achieve a greater social impact

Contactphone no +45 6061 6399e-mail cph180degreesconsultingorg

Updates from partner organizations at CBS

16 CSQ

The past semester was a good one for 360deg Students for Sustainability Not only did our organization grow to nearly 50 members this fall but we were also nominated in the Student category for the CSR Awards 2012 ndash the second year in a row You can watch the nomination video here httpwwwyoutubecomwatchfeature=player_embed-dedampv=6J5mwn7TcYI Although we didnrsquot win the award representatives from 360deg got the chance to participate in the conferencersquos many seminars ndash and not least hear Bill Clin-ton speak360deg also took it to another level with 360deg Academy The project was a huge success with over 250 people signed up for the ex-tracurricular course It shows that there is a clear interest in CSR and sustainability among the students and that 360deg Students

for Sustainability fill an important gap in providing the students with a forum where they can discuss such issues with each oth-er professors and practitioners We have al-ready started planning Academy 2013 which will run in the fall In addition to 360deg Academy 360deg organ-ised several successful events and seminars the past semester 360deg Develop Prize was kick-started in November and has already found some dedicated social entrepreneurs who will join the coming events this spring as well as the final competition 360deg also co-organized events on microfinance (with Danish Forum for Microfinance) and fair-trade (with Fairtrade Maeligrket) We also created a nice Christmas spirit at the CBS campus with our annual Christmas event featuring cookies a fairtrade Christmas tree

and do nations to Red Cross and Verdens SkoveWhile it is important to look back this semester 360deg is focusing on the future By the end of the semester 360deg Students for Sustainability will have changed its name to oikos Copenhagen After becoming part of the international student network oikos in 2011 we believe that changing our name will emphasize our international commitment and will show the students the many oppor-tunities that are available to them through the oikos network You can read more about oikos International and the other 36 chapters around the world by visiting wwwoikos-in-ternationalorg

Christina EkChairwoman of 360deg and soon-to-be President of oikos Copenhagen

UPDATE FROM 360 STUDENTS

360deg Students for Sustainability

360deg Students for Sustainability is a non-profit student organization based at CBS working to enable and inspire students to make responsible and sus-tainable decisions in their future lives and professional careers

Contact Christina Ek tlf 42 39 99 54 mail info360studentsdk

Live show at CSR Awards 2012

(Picture from csrfondendk)

Updates from partner organizations at CBS

17CSQ

UPDATE FROM PRME

New approach by the Curriculum Development

projectThe commitment to the initiative of the UN Principles for Responsible Management Education (PRME) at CBS has been further sustained via a more targeted approach to the development of the curriculum at the undergraduate programmesAs part of the adherence to PRME CBS has launched a Curriculum Development project to integrate responsible management prac-tices into the study programmes and also make these practices more explicit This is an extensive process that recently has been even more focused on the individual content of each of the study programmes A more cus-tomised approach will only strengthen the analyses of syllabi for each core course and increase the content of explicit responsible management

ldquoThe current restructuring of the Service Management bachelor programme and the development of three specialised lines of ed-ucation offer a great opportunity to align the curriculum development with the Principles for Responsible Management adopted by CBS Currently the CBS Office for Respon-sible Management Education and faculty members from CBS are working to identify opportunities to integrate responsible man-agement education into the educational programmerdquo Assistant Professor Adriana

Budeanu BSc in Business Administration and Service Management CBS In collabo-ration with study boards students and fac-ulties the Curriculum Development project enables a targeted approach to the integra-tion of responsible management content in order to comply with the overall structure of each study programme

Anti-piracy strategy from Maersk was a winning strategy

In collaboration with the CBS Sustainabili-ty Platform the CBS Office for Responsible Management Education arranged an internal competition to identify the best team of stu-dents to represent CBS at the International Business Ethics Case Competition (IBECC) in San Diego later this year The students had to select a business case entailing a challenge with legal financial and ethical aspects and propose a solution to this challenge A jury found the winning team based on a live presentation followed by a QampA session that took place in November 2012

The winners of this unique opportunity were the graduate students Bjoslashrg Ilsoslash Klinkby (MSc IBP) Adam Eithz Kromann (MSc BAP) and Anne Cathrine Gaarde (MSc IBP) They presented a business case on the anti-piracy strategy of Maersk

Winners of the Business Ethics Case Competition

Updates from partner organizations at CBS

18 CSQ

THESIS PARTNERSHIP BETWEEN GRADUATE

STUDENTS AND COMPANIES MATCH-MAKING

On behalf of CBS the Office for Responsible Management Education invited companies and organi-sations to participate in a match-making event with graduate students who were looking to write their thesis within the field of sustainability or social responsibility

Prior to the event that took place on the 6th of February ambitious graduate students were matched with eight very diverse organ-isations all wanting to explore challenge and develop CSR related activities The selection of organisations ranged from Center for So-cialt Ansvar who sought the studentsrsquo advice on how to revitalise their social concepts in corporation with the civic public and pri-vate sector to Wonderful Copenhagen that engaged the students in their aspirations of

retaining Copenhagen as a leading ldquogreenrdquo conference destination This diversity mere-ly reflected the broad-based educational standards that are embodied in the conducts of CBS and enabled students from all study areas to participate With the meeting as the focal point of the event the aim was to in-troduce more students and companies to the possibilities of a thesis partnership On that basis it is the hope that students and organisations will take the initial meeting

further into a collaboration resulting in a thesis that with an analytical and reflected approach hopefully provides valuable insight for all parties The event was indeed a unique opportunity for the students to get the or-ganisationsrsquo unremitting attention but also the organisations expressed their excitement about how the theoretical knowledge and skills of the students could be combined with the specific issues reaching beyond everyday operations of the organisation

PRME

Lene Mette SoslashrensenTel +45 3815 2651E-mail lmsiklcbsdk

PRME Manager

Johanne Duelund Kramer from Wonderful Copenhagen and CBS student Joseacute Bandeirinha from International Marketing and Management

Updates from partner organizations at CBS

19CSQ

A value adding partnership

The match-making event was kick-started by Professor Andreas Rasche who gave a short speech on trends in the field of sustainability and social responsibility Likewise thesis con-sultant Vibeke Ankersborg rounded off the event by guiding both students and organisa-tion representatives in the right direction of obtaining a value adding thesis partnership

By facilitating integration of the theoretical knowledge pool at CBS with real-life busi-ness cases and their challenges this initiative underpins CBSrsquos Responsible Management Education profile ldquoAddressing societal chal-lenges in interaction with business is a key element in our Business in Society strategy and we hope to set up a similar initiative in the futurerdquo Lene Mette Soslashrensen PRME Manager CBS

Being able to engage in a thesis partnership gives us the opportunity to get new and fresh eyes on the challenges and opportunities we face in the aspiration of sus-taining Copenhagenrsquos position as marked leader within sustainable meetings and events ndash and the other way around we see it as a positive contribution to help young students to gain in-depth knowledge on how we actually work with sustainability in practicerdquo

Ulrika Maringrtensson senior communication consultant Wonderful Copenhagen

ldquo

Case Companies

20 CSQ

Update from CBS Centre for Corporate Social Responsibility

cbsCSR celebration10 years anniversaryOn Thursday November 22 2012 CBS Centre for Corporate Social Responsibility (cbsCSR) celebrated its 10 years anniversary The guest list included prominent guests from both academia and the corporate world Head of Department Dorte Salskov-Iversen President Per Holten-Andersen and cbsCSR Director Esben Rahbek Pedersen bid all a warm welcome to an afternoon of inspirational talks and celebration of the Centre

Susanne Stormer followed and initiated her presentation with a brief recap of Novo Nor-diskrsquos history and continuous development of corporate sustainability practices She em-phasized how Novo Nordisk with the help of Professor Ed Freeman has prioritized a close relationship with their stakeholders and learning with them as a means to reach a higher level of corporate sustainability An additional key take-away from Susanne Stormer was the notion of transformational partnerships She argued that corporations NGOs and other stakeholders should use each other to form transformational partner-ships instead of just transactional partner-ships She claimed that in order to address and solve the problems in todayrsquos world the issues have to be addressed at the roots ndash in cooperation with stakeholders

The program had been divided into two ses-sions Each session ended with a panel dis-cussion that gave the audience the opportu-nity to track the developmental trajectory of CSR and participate in the discussion of the future direction of CSR

In the first session which focused on the history of CSR Professor Lucia Reisch from Department of Intercultural Communica-tion and Management CBS Susanne Storm-er VP of Corporate Sustainability at Novo Nordisk and Professor Gail Whiteman from Rotterdam School of Management present-ed their perspectives on the development of CSR up until nowProfessor Lucia Reisch set the stage with an enlightening introduction to the history of sustainable development and emphasized balance on the triple bottom line as key

Professor Gail Whitemanrsquos presentation highlighted both the past and the future of CSR Her main topic was how to deal with planetary boundaries She drew attention to inherent implications of teaching sustaina-bility and CSR at a business school and ar-gued that in order for students and business executives to understand the implications of planetary boundaries and their importance classes should be taught in nature

In the second session Annette Stube Head of Group Sustainability in AP Moller ndash Maersk Simon Pickard Director General at ABIS and Professor Andreas Rasche from cbsCSR presented their views on the future of CSR

Updates from partner organizations at CBS

21CSQ

The topics in the second panel debate evolved around some of the same issues as in the first panel debate The audience was very interested in the educational aspect of CSR and sustainability and a discussion fol-lowed concerning the issues of lsquopreaching to the convertedrsquo Research shows that 75 of CSR courses are not mandatory 1 thus those students and executives who have a natural interest in CSR and sustainability enroll for these courses The speakers agreed that this posed a challenge for the future and that business schools might have to re-invent themselves in this regard They stressed that it is crucial that CSR and sustainability courses become mandatory Also the prac-titioners advocated in-company learning They set forth the argument that it may be a long time before current students will have sufficient impact on the corporate sector but also because the corporate sector and the ac-ademic world can learn from one another

Sum-up of key perspectives for the future

So how has lsquothe business of business really changedrsquo and in what direction From the afternoonrsquos discussions there were two recur-ring topics Susanne Stormer briefly touched upon it when she talked about transforma-tional partnerships Annette Stube and AP

Annette Stube set forth the argument that ldquothe business of business has really changedrdquo She gave an example of how AP Moller ndash Maersk should use their position in the shipping industry to facilitate substantial changes Simon Pickard supported her argu

ment stating that it is not possible for single corporations to make a difference but that clusters of corporations have to collaborate to push changes If corporations do not join forces they risk only making incremental changes Simon Pickard further argued paraphrasing Andrew Pettigrewrsquos argument that in the course of time there has been a conceptual change in the argument for CSR He pointed to the fact that it started out as a moral or philanthropic enterprise and is now perceived as a governance case Simon Pickard pointed to the fact that the future of business is to create shared value ie creat-ing economic value that also creates value for society at large Building on these re-marks Andreas Rasche discussed the future of standards and codes in the field of CSR Emphasizing a variety of case examples he argued that while standards have proliferated in recent years eg certification schemes in the global coffee and apparel industries there is a need to more actively manage the co-ex-istence of these initiatives in order to avoid overlap Rasche also highlighted the pivotal role of consumers who need to acknowledge standards and labels as market signals and factor social and environmental concerns into purchasing decisions

Moller ndash Maersk has it as an integrated and crucial part of their CSR policies and Simon Pickard highlighted how instrumental the-ories are no longer enough The concept of shared value is inescapable and it is what the lsquobusiness of businessrsquo in the early 21st centu-ry is really about

A second topic which also attracted a lot of attention was the importance of continuous education of both lsquothe convertedrsquo but also of opponents of CSR and people who are not aware of the importance of CSR and sustain-ability In-company learning was depicted as a crucial part of the development of CSR and sustainability however a physical change in the teaching settings is also required to meet the approaching environmental challenges

Centre Director Esben Rahbek Pedersen concluded the conference and the winners of the prize of 25000 DKK to participate in the IBECC case competition in San Diego in May 2013 were announced and the celebra-tion of cbsCSR ended with a reception

Thank you to all the speakers moderators and guests for an inspirational afternoon

By Elise Lind Jacobsen and Line Pedini Rasmussen cbsCSR

1Rasche A Gilbert DU and Schedel I (2013) Cross-Disciplinary Ethics Education in MBA Programs Rhetoric or Reality Academy of Management Learning and Education (forthcoming)

Three of the keynote speakers (from left) Professor Gail Whiteman from Rotterdam School of Management VP of Corporate Sustainability at Novo Nordisk Susanne Stormer and Sustaina-bility Professor at CBS Lucia Reisch

Simon Pickard Director General at ABIS

22 CSQ

UPDATE FROM

CBS GOES GREENThe Green Associate Program

2012 was an exciting year for CBS Goes Green with many great achievements One of the new initiatives that was launched in 2012 was the Green Associate Program Here CBS students were able to volunteer in a program to support sustainable behavior among students and staff at CBS More precisely 25 CBS stu-dents put in 30 hours of voluntary work to help with the planning and execution of Green Week - a week consisting of a lineup of successful companies shar-ing their sustainable initiatives and thoughts The overwhelming interest in sustainability and sustain-able business among the students has made it evi-dent that the Green Associate Program should con-tinue in 2013 We at CBS Goes Green look forward to this as well as all of the other initiatives we will be conducting in 2013

The following is an extract of an article that three of the associates wrote themselves This extract shows the associatesrsquo own experience working with CBS Goes Green

What does it mean to be an

associate with CBS Goes Green

In Week 39 CBS turned into a plethora of green initia-tives and events in order to make CBS reach its sustaina-bility goals for 2020 Both students and employees at CBS were asked to become a Green Ambassador to help CBS be smarter greener and better

But many of you may wonder how it is to be one of the people behind the scene As associates we have been help-ing out before and during Green Week in order to establish an event that would reach all corners of CBS This has re-quired both time and effort in order to make things work out but in the end there are also a lot of gains from being an associate

Firstly as an associate you get to expand your network You get to work with people from different studies countries and ages and you also get to talk to many different people while promoting

A bonus about being an associate is also that you get an official certificate which can be attached to your resume This shows that you have put an effort into making Green Week happen

Furthermore by being an associate you feel like you have a larger impact on making CBS a greener place Instead of being an ambassador and only doing the things you can do you get to be the person who raises awareness about sustainability You may influence people to make the right choices and it makes you feel good

Lastly it also gives you a feeling of responsibility because you work under an official part of CBS CBS Goes Green ndash a unit with a clear agenda and a clear vision

By Michael Nguyen Christian Charity and Christian-Philip Lundahl

Updates from partner organizations at CBS

23CSQ

International conference on sustainable biofuels presents latest research

By Barbara Louise Bech Department of Business and Politics CBS

EU Renewable Energy Directive

In 2009 the EU RED set a mandatory target for member states to use a minimum of 10 renewable energy sources in the transport sector by 2020 of which biofuels is expected to be the main contributor This is part of a policy to cut greenhouse gas emissions promote the green technology sector develop rural areas and reduce dependency on fos-sil fuels Due to increasing controversies claiming lack of sustainability in first generation biofuels based on food crops recently the EU pro-posed an amendment to the Directive limiting the share of first gener-ation biofuels to 5 of the targeted 10

The debate quickly zoomed in on the sustainability criteria as outlined in the EU RED drawing attention to the lack of social safeguards The general consensus is that the concept of sustainability is too narrow-ly defined Several case studies (Mozambique Brazil and Indonesia) show that basic labor and human rights of local populations are not protected by RED and the directive is more viewed as an environmen-tal safeguard This discussion raised questions in regard to the effects of RED globally (eg sustainable production in developing countries) and in this context whether EU legislation can have a lsquotrickle downrsquo effect on national standards of nation-states outside the EU In this re-gards one could ask if enforcement at the local level falls under the re-sponsibility of the EU but since first generation biofuels are produced outside the EU it is an important issue for European consumers ndash al-though interest is currently mainly driven by NGOs

On November 19-20 2012 the Copenhagen Biofuels Research Network (COBREN) held an international conference on sustainable biofuels inviting 30 research-ers from around the world to present and discuss their latest research During the two day conference focus was the sustainability criteria of the EU Renewable Energy Directive (RED) voluntary certification schemes and their impacts on sustainability and social safeguards in producer (developing) countries in particular and governance complexity of the biofuel system which has grown considerably over the past decade

Rough guide to biofuelsThere are two types of biofuels biodiesel and ethanol First generation biofuels (1G) are based on food crops and feed stocks such as palm oil soybean and rapeseed used for the production of biodiesel and sugarcane and corn for ethanol The produc-tion of biofuels increased heavily in the 2000s questioning the sustainability of 1G A number of issues have been claimed as key impediments to sustainable biofuel production such as deforestation competition with food production and increasing food prices loss of biodiversity lack of social and environmental safeguards and indirect land use change (ILUC) These contro-versies have led to a call for the promotion of second generation biofuels (2G) which are typically based on agricultural waste (eg straw) plants and forestry residues (also called lignocellu-losic biomassmaterials) However the immediate problem is that there is yet to be developed a market for 2G as they are more costly to produce (require longer and more complex production process)

CBS Sustainability Platform co-director and organizer of the COBREN conference Stefano Ponte doing a presentation

Event

24 CSQ

Voluntary certification schemes

In relation to how standards and certifications can impact sustainable biofuel production discussions pointed to the important difference be-tween mandatory and voluntary schemes As the controversy of sus-tainable biofuels in particular first generation is rolling out special attention has been given to biofuel production competing with food production ILUC value of emissions reduction and environmental and social issues This have off sprung a proliferation in private certifi-cations and during the conference it was discussed intensely whether these schemes have an actual effect on sustainability Depending on the point of view certifications can fill out the holes in legislation and act as a tool to force companies to comply with sustainability crite-ria However the development processes of new certifications may not be inclusive of relevant stakeholders (eg representatives of local populations) Additionally the nature and governance of the networks steering these processes is not always transparent and may favor one interest over the other This intense discussion led to the question of the purpose of certifications Can we use them for anything other than as a CSR PR tool as long as consumer awareness is as low as it is and how do the different regional drivers influence sustainability as a concept The answers to these questions are not easily found and it will be interesting to observe the future development and partnership between public and private sector

Governing the biofuel industry

Within the past decade biodiesel production has risen from below 30PJ in 2000 to 572PJ in 2009 globally and fuel ethanol production has increased from 340PJ to 1540 PJ respectively As the market expands more actors eg governments international organizations civil soci-ety and NGOs private sector networks and companies and profes-sions (biofuel experts and consultants) get involved and play different roles to promote their own agendas Being an emerging industry the structure of the biofuel system shows hybrid forms of governance with many actors As controversies of biofuelsrsquo sustainability develop more issues are added to the agenda giving life to more actors and interests in the governance structure Research shows a shift in power balance as private companies and NGOs increasingly push the agenda The dis-cussions during the conference centered on the complexity of sustain-ability issues calling for mixed governance responses and governance instruments such as standards and certifications which in return need to be followed up with endorsement instruments Given these com-plexities the question is whether the biofuel industry is too difficult to govern as long as the governing systems (for instance the EU) cannot accommodate expectations of all stakeholders

Indirect land use change (ILUC)ILUC is the unintended consequence in terms of more carbon emis-sions due to land use change around the world induced by the expan-sion of croplands for biofuel production When land that could be used to grow food and feed crops is used to grow energy crops this leads to existing agricultural production moving to another area or country where land is converted When this land is cleared and converted to cropland and because natural lands (rainforests and grasslands) store and sequester carbon in their soil and biomass a net increase in GHG emissions can occur Due to this change in the carbon stock of the soil and the biomass ILUC has consequences in the GHG balance of a biofuel Adding to this complexity models for ILUC calculations are not mainstreamed and thus difficult to assess internationally

25CSQ

Mellemfolkeligt Samvirke (MS) or Action Aid Denmark is a Danish NGO founded back in 1944 The

organizations key objective is to fight poverty by ensuring greater political influence for the worldrsquos poor and margin-alized at the local national and international levels MS works to bring about long-term development in the worldrsquos poorest countries focusing especially on education co-

operation and the ability to organize MS mainly works in Africa Read more about the organizationrsquos work

at wwwactionaiddk

Action Aid

A private sector view on the future of sustainable biofuels

By Barbara Louise Bech Department of Business and Politics CBS

nergy security continues to be an eminent concern in a world of finite resources For a long time biofuels have been viewed as

one of the key solutions to replace our dependency on fossil fuels and battle climate change but in recent years controversy has contested the sustainability of first generation biofuels based on food stock Issues such as lack of environmental safeguards causing loss of biodiversi-ty and deforestation and lack of social safeguards ensuring land and labor rights in producer (developing) countries have been claimed as key impediments to sustainable biofuel production Critical observers also argue that the emission savings of biofuel use in compar-ison to fossil fuels can become much smaller (or even disappear) when indirect land use change (ILUC) is included in the calculations Furthermore bi-omass production from food stock is argued to compete with food production and in-creasing food prices

The Danish NGO Action Aid has been engaged in biofuels since 2008 and is par-ticularly involved in protecting womenrsquos rights and preventing land grabs in de-veloping countries ldquoWe are very concerned about land use when it comes to first genera-tion biofuels This relates both to the people who are dependent on the land and to food security We rarely see good combinations where the local populationrsquos needs are taken into consideration The energy crops grown on the local farmerrsquos land donrsquot benefit him and local consumption is essential for developmentrdquo explains Kirsten Hjoslashrnholm Soslashrensen political advisor Action Aid Denmark

It is therefore believed by many that second generation biofuels is the only way forward to avoid competition with food and avert ILUC Next generation biofuels is based on lignocellulosic biomass such as agricultural and household waste and forest residues The Biorefining Alliance represents a cluster of leading Danish companies within the renewable energy sector with an ambition to promote second gener-

ation biofuels and make Denmark a world leader of technology and bi-ofuel productionldquoDenmark has very strong competencies in green tech and as a society we have put a lot of money in its development This is go-ing to be a huge deal globally so we are asking whether Denmark wants to be a customer or a producer What we are working for is of course that we become a lead exporter of technology but also that Denmark produces second generation biofuels commercially Even though we are a small country we cannot settle on selling know-how Denmark also needs to have some industrial productionrdquo says Anne Grete Holmsgaard di-

rector of Biorefining Alliance In her view Denmark needs to keep a firm grip on developing innovation or it will slowly but

steadily move out of the country In this regard she views sustainability criteria for biofuels as an in-

novator and not a hindrance

The Sustainable Biofuels Network (SBN) is another cluster of private companies trying to facilitate the transition from fossil fuels to biofuels in the transport sector For the aviation industry biofuels are considered

to be the only alternative to fossil fuels and the industry firmly believes that biofuels will

survive according to Robert Arendal chairman of SBN ldquoThe aviation industry has set very clear

guidelines for the use of biofuels We are not going to use food based biofuels and we will minimize the use of fresh

water By 2050 our target is to use 50 biofuels in the global aviation so we really need to move fastrdquo he explains adding that living up to sustainability criteria includes being careful about where biofuels are produced ldquoBut it should be produced all over the world and close to the 1600 airports worldwide that account for 95 of all aviationrdquo

he technology for second generation biofuels is already here but the problem is that production costs are too high and there is no market As long as prices are not competitive with conventional fuels it will be difficult to move forward ldquoOne might ask why there is no market The customers are certainly there so if I was in the business of producing

E

As part of the COBREN international conference on sustainable biofuels private sector civil society and academia were invited to give their views on sustainable biofuels at a roundtable discussion at an open public seminar held at DIIS November 19 2012

Event

26 CSQ

SBN is a ldquobreeding groundrdquo and ldquoknowledge centerrdquo for the biofu-els industry where synergies are created between all parties within

the biofuels sector SBN focuses in promoting supporting and enabling the commercial development and use of clean and sustainable biofuels for Heavy Road Transportation Shipping and Aviation Emphasis is put on the importance of global standards for biofuels with local as well as international institutions and decision makers to encourage con-

structive guidelines and rules for the development of biofuels SBN adheres to EUrsquos sustainability criteria SBN is a non-profit asso-

ciation established in 2008 Visit their website for more info at wwwsustainablebiofulsdk

Sustainable Biofuels Network(SBN)

The Biorefining Alliance (BA) was founded December 2011 by DONG Energy Novozymes Haldor Topsoslashe and the

Danish Agriculture and Food Council and is a three-year project to politically promote Denmarkrsquos position in the entire value chain from residues to bio-based products The Alliance has set forth a number of recommendations to achieve a sustainable Danish bio-economy Among other these include (i) that all organic

waste be considered a resource (high-value recycling and storable energy) (ii) reducing the cost of manufacturing 2G

bioethanol and (iii) contemplating the establishment of a national center for sustainable materials

Biorefining Alliance

second generation biofuels I would get started right awayrdquo says Robert Arendal The Biorefining Alliance is working on lowering the costs and recommends a stronger regulatory framework with binding targets as it has been done for the wind industry ldquoThere already is a market for first generation biodiesel which is the least sustainable biofuel We need to make a market for second generation biofuels and we know that binding targets work I donrsquot think it is possible to create a market for the lsquogreen consumerrsquo as you have one for organic food products but I believe that a niche market for HRT (Heavy Road Transport red) such as public bus transport could be a supplementrdquo concludes Anne Grete Holmsgaard

How the future for sustainable biofuels will shape depends on political will to create a market for second generation and the ability of private sector to innovate and bring prices down Oil production is claimed by some to already have peaked and exploring new geographical areas for extraction could be as costly as kick-starting the market for second generation biofuels although much less sustainable As the American ecologist and environmentalist Bill McKibben wrote in his book ldquoDeep Economyrdquo back in 2007

Even before we run out of oil wersquore running out of planetrdquoldquo Bill McKibben

27CSQ

The Transparency-Sustainability NexusA workshop on the practices meanings and tensions of organiza-

tional transparency

n December 5 2012 the Department of Intercultural Communication and Management (ICM) hosted an in-

ternational workshop supported by CBS Sustainability Plat-form and ICM The workshop was organized by Oana Brindusa Albu Mikkel Flyverbom and Hans Krause Hansen respectively PhD Fellow and Associate Professors at ICM The idea of the workshop was spurred by the observation that while ideals of transparency like lsquoopennessrsquo lsquodisclosurersquo and lsquoreportingrsquo are pro-liferating these years the actual construction of transparency within and across organizations is poorly understood Most re-search on transparency is highly normative if not celebratory just as popular discourse about transparency not least in the areas of sustainability and corporate social responsibility is obsessed with ideals of accountability performance and effi-ciency and pervaded by an optimism currently pushed to its extreme with the explosion of new media technologies

But the truth is that we generally know very little about the implications of ideals of transparency when translated into practice in specific issue areas and organizational contexts Importantly each of the contributions to this workshop clear-ly suggested that the contemporary politics of transparency is much more complex contradictory and dynamic than tradi-tionally recognized All papers examined various aspects of the contemporary obsession with transparency and specifically the increasing use of disclosure techniques within and around or-ganizations the rationales or myths underpinning these meas-ures their intended and unintended consequences including implications for identity-making management and govern-ance practices

Clare Birchall initiated the workshop with a paper titled lsquoThe Cultural Politics of Disclosurersquo highlighting how transparency has been positioned as a superior form of disclosure in popular management and organizational literatures and in policy docu-ments In her account the growing preference for transparency is a consequence not only of the positive qualities seen to be intrinsic to transparency itself but also a response to the per-ceived negative characteristics of other forms of disclosure such as gossip scandal and rumor Lars Thoslashger Christensen (with co-author Joep Cornelissen) then analyzed transparency as one of the foundational myths of modernity myths understood here as descriptions of the world in a narrative form which seeks to produce meaning and direction for a community and its members Such lsquoMyths of Transparencyrsquo sustain numerous organizational practices ndash including openness information provision and auditing But as argued by the authors there are conflicting evidence regarding the capacity of such practices to create insights and understandingThat aspirations and techniques of transparency can have seri-ous repercussions was demonstrated by Peter Skaeligrbaeligk (with co-author Mark Christensen) in the paper entitled lsquoAuditing and the purification of blamersquo which analyzed how auditing auditing practices and institutional entities including the po-liticized environments surrounding them are mobilized and participate in blame games and allocation In his paper titled lsquoQuantification transparency and the costs of reassurancersquo Henrik Vollmer analyzed various dimensions of the role of nu-merical records and signaling in generating transparency trust and mistrust

By Hans Krause Hansen Department of Intercultural Communication amp Management

Event

O

28 CSQ

Some of these aspects were also touched upon in the paper lsquoDisrupted Disclosures The Politics of Visibility and Surveil-lance in the Extractive Industriesrsquo by Hans Krause Hansen (with co-author Julie Uldam) which explored the wider field of visibility and surveillance in which contemporary transpar-ency policies are unfolding with examples from the extractive industries Oana Brindusa Albu in her lsquoTransparency and the organizational self everyday politics of identification in Cooperativesrsquo examined the paradoxical effects of values and practices of transparency on collective identity formation pro-cesses drawing upon her ongoing multi-sited fieldwork in co-operatives Under the heading of lsquoThe Improbability of Secrecyrsquo Mark Fenster analyzed the intersections of secrecy and trans-parency with examples from the US government and its efforts to control information which according to the author does not necessarily stop the flow of information Finally Mikkel Fly-verbom and Christina Garsten examined lsquoThe sway of (big) data ndash calculations and advocacy in the name of transparencyrsquo focusing on the operations of data-based forms of corporate lsquotransparency evangelismrsquo and advocacy through revelation including examples from Center for Global Development and Google

In all the workshop was highly successful in investigating not only the historical and mythical foundations of transparency but also the different practices and forms of transparency that currently shape organizations and a wide variety of issue areas It also provided a reminder of the usefulness of investigating a concept of transparency in relationship to a host of other con-cepts such as secrecy myth gossip blame surveillance visi-bility identity information and knowledge The organizers of the workshop wish to thank all workshop participants for their valuable contributions and the CBS Sustainability Platform and ICM for their support

Hans Krause Hansen

Mikkel Flyverbom

Oana Brindusa Albu

ASSOCIATE PROFESSORPHD (ICM)

ASSOCIATE PROFESSORPHD (ICM)

PHD FELLOW (ICM)

29CSQ

Louise Lyngfeldt Gorm Hansen is a PhD Fellow at the Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) She has a back-ground in Chinese Studies from Copenhagen University (BA) the Asian Studies Program at CBS (BSc) and in International Business Stud-ies and Sustainable Business (MSc) from CBS

The aim of her cross-disciplinary PhD project is to explore how the Chinese hydropower sector works with environmental sustainability and more particularly how the concept is understood and performed in the planning phase of a major dam project in the southwestern Chinese province of Yunnan

The aim of the project is to gain a deeper under-standing of how Chinese firms in the renewable energy sector such as hydropower companies understand and value sustainability as well as how such firms tackle the increasing pressure to deliver socially and environmentally balanced solutions to one of Chinarsquos major challenges lowering CO2 emissions in a time with rapidly rising water and energy demands Theoretically the project draws on - and aims to contribute to ndash a combination of Asian Studies and Science and Technology Studies

PHD FocusLouise Lyngfeldt Gorm Hansen

HYDROPOWER

SUSTAINABILITY

30 CSQ

HYDROPOWER

SUSTAINABILITY IN

CHINAy PhD project combines two of my main research interests China and

environmental sustainability I have studied China for a number of years mainly because of an interest in how the Chinese view sus-tainable development So since finishing my masters I have known that I wanted to study how China plan to tackle a sustainable tran-sition in the years to come I saw my chance when CBS announced PhD scholarships in

DanishEuropean-Chinese social science research in collaboration with the newly es-tablished Sino-Danish Center for Education and Research (SDC) and started my PhD in October 2011My PhD project focuses on the Chinese energy sector more specifically the rapidly growing part of the energy sector engaged in renewable energy Here I examine Chinarsquos second largest source of electricity gene-

eration hydropower In recent years China has become increasingly focused on reduc-ing CO2 emissions While some countries such as the US and Australia are decommis-sioning hydropower dams China is looking to large-scale hydropower construction as one of the solutions to a future clean energy supply This means that hydropower devel-opment plays a central role in Chinarsquos sus-tainable transition

However utilization of hydropower is con-troversial not least in China and has met increasing resistance in recent years particu-larly from Chinese and international NGOs the media as well as the scientific commu-nity Critique is most often focused on how or if social and environmental sustainability can be ensured in such large scale projects as the social and environmental impacts of large scale hydropower development are very complex and difficult to measure More gen-erally the viability of relying on hydropow-er as a future source of energy is also being questioned One of the major concerns here is the overarching issue of climate change ie glaciers shrinking and yearly water runoff decreasing This means less stable water flow for hydropower and less water for other pur-poses such as agriculture water supply for down-stream countries etc

By Louise Lyngfeldt Gorm Hansen Asia Research Centre Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) ndash sinodanishcenterdk

M

Picture from SinoHydro promotion material 2011

Research

31CSQ

In contrast to for example the wind power sector in China in which many foreign com-panies have invested the hydropower sector is dominated by a few large state-owned en-terprises Our knowledge of Chinese state-owned enterprises is still limited and there-fore my PhD project is also part of a larger research project at the Asia Research Centre with focus on Chinese state-owned enter-prises and the reform of the public sector in China

In combining these interests my PhD exam-ines how Chinese state-owned enterprises in the hydropower sector tackle the demand to expand hydropower development to help reduce Chinarsquos CO2 emissions while be-ing under increasing pressure to deliver on sustainability principles in the planning and execution of large scale hydropower pro-jects The pressure comes mainly from NGO organizations the media and the scientific community both at home and from abroad I am conducting a case study focused on a specific river in south-western China which has ndash until now ndash not been fully developed for hydropower and the plans for addition-al hydropower dams on the river are still undergoing assessments The project has continually stalled due to disagreements between Chinese government officials at all levels NGOs the media the increasingly deregulated but still state-owned Chinese hydropower companies and the scientif-ic community However the project has very recently been reopened and so will go through another round of assessments in the near future The case is an excellent example of the complexity of hydropower develop-ment decisions in China but it also highlights some of the social and environmental conse-quences of the global push to decrease CO2 emissions

China plays and will continue to play an increasingly important role globally in the years to come However the country also fac-es enormous challenges - not least regarding the environment These challenges also affect economies in Western Europe - for better or worse My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective so

that we here in Europe and in Denmark can more knowledgably and actively engage with China to help solve some of these difficult challenges that eventually affect us all In do-ing this I contribute to gain a better under-standing of the Chinese perspective on envi-ronmental sustainability that can be of use to companies wanting to engage in the Chinese renewable energy sector

My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective rdquoldquo

Picture of the case-river taken by the author in 2012

32 CSQ

FROM BLUEPRINT TO PRACTICE

ENERGY EFFICIENT CONSTRUCTION

By postdoc researcher Satu Reijonen Department of Organization CBS

In the EU almost one third of CO2 emis-sions are attributed to energy used in the construction and use of buildings (FIEC

2007) It is therefore not surprising that the construction sector has recently been subjected to a substantial amount of policy measures to combat its negative effects on climate change In Denmark the state has posed new thresholds for the energy efficien-cy of new buildings including a plan for con-tinuous improvement in the area This far the industry has responded well to these stricter performance requirements In the future re-quirements will rise to levels that are not that easily achieved in the coming years build-ings will have to use 25 less energy than in year 2008 How can these ambitious goals become business as usual

One of the most discussed ways besides add-on technologies such as windmills and solar panels to enhance the energy efficiency of a building is through an energy efficient phys-ical design In practice this means reduction of energy used for heating cooling down and lighting of the building through an optimal orientation and dimensioning of the build-ing

Integrated energy design contrary to add-on technologies can be achieved on a rath-er modest additional budget This should be good news for the sector that today is eco-nomically pressed Indeed today many low energy building projects claim to use the in-tegrated energy design method (IED) when seeking to meet the most ambitious energy related goals In this commentary I wish to discuss some challenges related to the imple-mentation of this design tool

The integrated energy design method sug-gests that one of the main problems in not achieving energy efficiency is that energy related concerns become integrated into the design process too late The method consists of two elements the first of which addresses the need to bring in energy related knowl-edge throughout the design process It sug-gests that design teams ought to be multidis-ciplinary and that architects engineers and experts should work together either co-lo-cated or in a series of workshops Further-more it suggests systematizing energy quali-ty follow-ups into the design process This is all very relevant and inspiring

Oddly enough a closer look on the actual design practices reveals that few seem to ac-tually follow the method of integrated energy design to the point This poses an interest-ing question about the challenges related to the use of such management technologies as vehicles for increased energy efficiency in construction Maybe it is about time practi-tioners and researchers ask themselves what are the boundaries of and challenges related to the use of these tools ndash and what else is required for organizing for more energy effi-cient building design processes

A revolution of relations

Integrated energy design points to the need to bring energy related expertise into the de-sign process at an earlier point In order to achieve this cooperative practices between different professional groups are advocated for Historically energy experts have most-ly been used to respond to rather advanced architectural plans Shared workshops and co-localization suggest a change in these business as usual relations But are they pos-sible and what type of changes do they ac-tually imply in order to function as wished

Research

33CSQ

Satu Reijonen is postdoctoral scholar at the Department of Organization at CBS In her on-going research project she investigates how architects and energy engineers two different profes-sions cooperate and coordinate their work regarding energy related ques-tions in construction design The ways in which relations between and roles of these professions become consti-tuted through socio-material arrange-ments are a central topics in her work Besides studies of work Satu has con-ducted research on environmentally friendly products and markets

ABOUT SATU RAIJONEN

The initiation of this type of new working forms is certainly beneficial for energy effi-cient design However for several reasons they are more difficult to make work than one would assume While it may sound rea-sonable it is after all a tall order Integrating energy related practices into an environment where different visions professions and in-terests meet and the divide between what one profession does is clearly and historically demarcated is demanding While architects need to make room for the intervention of energy experts into the creative work energy experts have to become capable of working creatively and relate to and follow the visual and aesthetic cues from architects In order to work these kind of changes in the profes-sional roles and relations have to resonate with the skills and visions of individual work-ers not only management level design strat-egies It is not surprising that organizational change scholars remind us of the possibility of loose coupling from the strategies placed at the management level (March 1981) What integrated energy design suggests is a kind of a revolution in the ways in which both the architects and the energy engineers envision their role and space of mobility

Linear tools in an unlinear design process

Integrated energy design suggests that the energy performance of the emerging build-ing design be followed up at certain points during the design process The method de-picts a rather mechanistic and linear under-standing of a design process consisting of phases within which iteration may occur While energy related issues may be dis-cussed as quality goals during these phases the method places a lot of emphasis on the check ups performed in the transition from one phase to another Design processes how-ever can also be characterized in a different manner unlinear exploratory and whirl wind type of practices where clear cut phases hardly exist (Akrich 1992 Van de Ven et al 1999) This also applies to the architectural design processes where the object of the de-sign is emergent (Yaneva 2009) This entails that the product the building may change in unexpected ways during any day of the de-sign process If this alternative description of the design processes is viable delegating energy related issues to some predetermined check up episodes may strike a false accord and indeed be contradictory with the aim of enhancing coordination and cooperation between professional groups What happens in between the predetermined checkups may very well be where the energy efficiency of the building becomes configured and where the intervention from the energy experts

would come most needed Perhaps this is why the best performing projects do not blindly follow the steps of the IED method Check ups however and no doubt play a role in verifying and making visible the energy performance for partners outside the design team

Integrated energy design as many other sus-tainability standards and guidelines make visible systematize and legitimize the ex-istence of environmental management and sustainability issues in organizations and work processes In this such way tools create awareness and legitimacy for environmental and sustainability issues The integrated en-ergy design method also suggests a possible way of thinking about what type of design practice might help us to achieve the stricter energy requirements of the future It howev-er falls short in becoming the change agent it suggests This is hardly surprising as a meth-od or a standard of any kind should only be seen as a possibility or as an opening for an inquiry of what the practice could be about Reconfiguring a well established practice is hard work and it would be foolish to trust that a design method would achieve it by itself What the method does is to alert us of the more profound changes in the pro-fessional roles and relations that is needed in order to enable the change However the method due to its rather mechanical under-standing of the design process may come to work against its own ambition of integrating energy issues into the design work In its quest for integration the method defines at which points in time the architectural and the engineering project has to be checked for its energy performance This approach may lead to bringing in energy related concerns in some artificially created points in a design process which may additionally compart-mentalize energy related issues from where the design really happens

Integrated energy design as many other sustainability standards and guidelines make visible systematize and legitimize the existence of environmental management and sustainability issues in organizations and work pro-cessesrdquo

ldquoLiteratureAkrich M (1992) The De-Scription of Technical Objects in Shaping Technology Building Society Studies in Soci-otechnical Change eds WE Bijker and J Law The MIT Press Cambridge Massachusetts pp 205-224

FIEC 2007 The impacts of buildings on climate change httpwwwbuildingsplatformeuepbd_publicationdocFIEC_Memo_p2919pdf on 1222008

March JG (1981) Footnotes to Organizational Change Administrative Science Quarterly vol 26 No 4 pp 563-577

Van de Ven A D Polley R Garud and SVenkataraman (1999) The innovation Journey Oxford Oxford Univer-sity Press

Yaneva A (2009) The making of a building A pragmatist approach to Architecture Bern Peter Lang

More about integrated energy design(IED)

httpwwwintendesigncomosloIntendnsfAttachmentsGuideline_Version_2pdf$FILEGuideline_Version_2pdf

34 CSQ

The climate challenge in

shipping

ldquoGlobal shipping faces two major challenges both of which are caused by its reliance on fossil fuelsrdquo

By Reneacute Taudal Poulsen Department of Innovation amp Organizational Economics

RENEacute TAUDAL POULSEN

ASSOCIATE PROFESSOR DEPARTMENT

OF INNOVATION AND ORGANIZATIONAL

ECONOMICS COPENHAGEN BUSINESS

SCHOOL

orecasts show that the shipping indus-tryrsquos CO2 emissions will most likely continue to rise in the next two to

three decades as demand for world sea-borne trade will expand At present global shipping accounts for approximately 33 per cent of global CO2 emissions but this share will most probably increase in the coming years if many onshore industries succeed in their aims of reducing emission levels

At the same time rapidly rising fuel costs put heavy strain on shipping company budg-ets Historically and until very recently fuel costs were only a minor concern for ship-ping companies but now they often exceed 60 per cent of variable operational costs Fuel savings made through energy efficiency improvements thus represent a win-win sce-nario for the shipping industry and for so-ciety at large They simply make good sense for everyone

Despite the strong incentives for fuel sav-ings numerous studies have demonstrated that shipping fails to implement cost-ef-fective measures to reduce fuel consump-tion Fuel-saving technologies are readily available in the market and in many cases pay-back periods are very short (less than a year) Changes in operational habits which require few if any investments also hold a significant potential for fuel savings

Global shipping thus holds several classic examples of energy-efficiency gaps Gaps occur wherever cost-effective measures to improve energy efficiency fail to materialize The causes for energy efficiency gaps have been a favourite research topic within the field of energy economics for decades and economists sociologists and political scien-tists have been able to identify several means to bridge the gaps However within the mar-itime domain energy efficiency gaps and the climate challenge remain neglected issues Legal barriers

Shipsrsquo fuel consumption rises steeply with speed Hence slow-steaming or just minor speed reductions can lower consumption and emission levels significantly Since oil prices started to rise rapidly a few years ago shipping companies have indeed resorted to various slow-steaming practices and com-panies which succeed in this regard have been able to gain competitive advantages In other words actors in the industry are trying to bridge the energy efficiency gap However and in spite of the strong price signals from the rising fuel prices a potential for fuel sav-ing through slow steaming still remains

FNew CBS research project

A new three year research project at CBS under-

taken by Reneacute Taudal Poulsen for the Department

of Innovation and Organizational Economics will

examine the climate issues bringing insights from

energy economics and innovation management

into the field of shipping economics The project

which is financed by The Danish Maritime Fund

runs from 2012 to 2015 The project asks why en-

ergy efficiency gaps continue to occur in shipping

and how shipping companies and the maritime

industry at large can use innovative business

models and process innovation to turn the climate

challenge and the rising fuel costs into a business

opportunity Energy efficiency gaps occur both

in daily operations and when investments in new

vessels are made This article will briefly present

two examples of energy efficiency gaps from

the operational level and some of the preliminary

findings of the project

References

Jaffe AB and RN Stavins 1994 lsquoThe energy efficiency gap What does it meanrsquo Energy Policy 22 (110) 804-10IMO 2009 Second IMO GHG Study 2009 London International Maritime OrganizationMoriarty P amp D Honnery 2012 lsquoEnergy efficiency Lessons from transportrsquo Energy Policy 46 1ndash3Poulsen Reneacute Taudal 2012 lsquoEmissions and energy efficiency - the twin challenges for shippingrsquo Mercator Maritime Innovation Research and Education MarchJune 447-454

Reneacute Taudal Poulsen is Associate Professor at the Department of Innovation and Organizational Eco-nomics at CBS He is also affliated with the Centre for Shipping Economics and Innovation at CBS Reneacute Taudal Poulsen holds a PhD degree in marine environmental history from the University of Southern Denmark and he has worked within the field of maritime business studies for the last seven years He has published in such journals as Fisheries Research Business History and Scandinavian Economic History Review

His current research intersts concern the environmen-tal challenges faced by the global shipping industry and business model innovation in the maritime domain

Research

35CSQ

It is clear that shipping companies cannot fully bridge the energy efficiency gap alone In fact factors beyond the control of in-dividual shipping companies and various structural or legal barriers prevent shipping from fully realizing the slow steaming po-tential

Port congestion remains a world-wide prob-lem and causes ships to spend remarkably long periods inactive Despite the financial crisis and the large drop in shipping freight markets after 2008 many loaded vessels sit at anchor outside ports waiting for berths In some cases they wait for a few hours In other cases for days weeks or even months Instead of waiting the ships could have re-duced speeds and saved fuel And the de-livery and the loading of the cargo in port would not have been delayed in any way However in many cases shipping companies or ship operators cannot reduce speed in spite of port congestion

Educational barriers

Energy efficiency gaps in shipping are also evident when the fuel consumption levels of sister ships are compared Even though the vessels are identical and operate in the same waters studies have shown that their fuel consumption may differ by several Decisions made by the crews onboard and by managers in the onshore organizations clearly influence the level of fuel consump-tion For instance if a captain selects only very small course deviation margins when coding the autopilot of the ship the shiprsquos rudder will move frequently to keep the ship on the exact course all the time This will slow down the ship and cause higher fuel consumption than if the captain had allowed for slightly wider margins and the wider margins would not have any effect on the safety of the ship Decisions made by the commercial depart-ments eg on how to crew the vessels how to monitor vessel fuel consumption or which new equipment to install onboard may also

have a large impact on fuel efficiency and emission levels If shipping company man-agers can nurture a fuel saving culture this could potentially make a difference Since 2007 or 2008 shipping companies have in-deed started to facilitate such organizational changes but educational barriers remain a problemOnshore truck drivers are now offered fuel saving courses but fuel-saving is not a major part of the traditional curriculum in nautical schools or in the commercial education of shipping trainees For good reasons the nau-tical educations have focused on maritime safety but this has caused them to neglect the climate challenge in shipping and the is-sue of fuel saving In fact no single nauticaltext book on maritime fuel savings has yet been published and according to teachers and students in the nautical schools this serves as an educational barrier to ener-gy-efficiency improvements The technical level of education for commercial employees in shipping companies may also hinder im-provements in energy-efficiency Some com-

mercial shipping employees may not have sufficient training to fully see and acknowl-edge the consequences of their decisions on fuel consumption In short it seems that fuel awareness and the educational systems have responded more slowly to the climate chal-lenge than the rise in fuel prices may other-wise suggest

For shipping to bridge energy-efficiency gaps education ndash both nautical and com-mercial ones ndash clearly is an area to set in Here the potential for innovative solutions is both evident and pertinent Changing educational systems and awareness is no easy task bearing in mind the global nature of the shipping industry and international crewing of the world fleet It is clear howev-er that educational upgrading is necessary for shipping to effectively address the cli-mate challenge effectively

Charter parties between ship-operators and shippers state a specific time of arrival for the vessel and in order to avoid claims ships proceed to port accordingly regardless of berth availability Experiments with new more flexible charter parties which allow for slow steaming in case of port congestion have recently been made Shipping compa-nies have generally been enthusiastic about this flexibility but often shippers remain skeptical Lack of trust between shippers which need the loading of their cargoes as soon as possible and shipping companies may be a cause for this discrepancy Even in cases where the savings made from slow-steaming are split between shipping companies and shippers shippers have re-mained skeptical Port queuing systems may have a role to play here

Many ports including some of the major container iron ore coal and grain ports serve ships on ldquofirst-come first-servedrdquo ba-sis Ships only receive their ldquoticketrdquo in the

waiting line upon their arrival at the port Again lack of trust between the ship-oper-ators shippers and the port authorities may explain this phenomenon Moreover port authorities currently do not have incentives to change queuing practices because they cannot gain a share in the fuel savings made from slow-steaming

The problem is particularly strong in the major tramp shipping segments of tanker and dry cargo shipping where vessels act as ldquotaxis of the seardquo serving numerous shippers and rarely calling at the same ports If the fleet from a shipping company only calls at a particular port once a year and the compa-ny has very short-term relations to individ-ual shippers building trustful relationships between the parties remains a major chal-lenge Solving this problem and realizing the full potential of slow steaming will require systemic innovation in shipping and port systems and further studies are required to identify possible solutions

36 CSQ

The Wind turbine industry -

Emerging global innovation networks in Europe and China

The wind turbine industry has developed into a global network encompassing a large amount of diverse actors within innovation production and installation of wind turbines across the globe

By Stine Haakonsson and Julia Kirch Hollitsch Department of Business amp Politics CBS

market for wind energy Chinese actors have turned China as a location into another im-portant lsquohubrsquo in this network This has led to new forms of innovation collaborations between European and Chinese actors The result has been a complete re-configuration of the industry over the past decade In the International Business and Economic Geog-raphy literatures the development of global production networks in which lead-firms be-come orchestrators of dispersed production

enmark has traditionally played a key role as an lsquoinnovation hubrsquo and com-

panies in Denmark remain among the lead firms within the wind turbine industry Re-cently the industry has reorganized from being located predominantly in the Triad regions (mainly in Europe and the US) to becoming a globally dispersed industry This development can partly be explained by de-velopments in international and national politics Due to the growth of the Chinese

activities in globalized value chains is well established theoretically as well as empiri-cally In the globalization process lead firms relocate production activities to low cost lo-cations by off-shoring and through vertical disintegration and outsourcing to specialized suppliers Producers of wind turbines are no exception However until recently the mar-ket and innovation activities remained con-centrated in Europe and US

With the recent focus on global politics for a post-carbon society the market for wind tur-bines has experienced an immense growth and a high degree of market globalization New locations have developed into main markets One of these is China which since 2010 has been the largest market for wind turbines in the world (in capacity installed) The globalization process in the wind tur-bine can be explained by a combination of offshoring of production by European lead firms mainly through foreign direct invest-ment and establishment of domestic lead firms in emerging markets In 2010 there were four Chinese-owned companies among the top-10 producers of wind turbines as compared to 2003 where all firms on this list were from Europe and the US

D

Julia Kirch Hollitsch

Stine Haakonsson

Stine Haakonsson and Julia Kirch Hollitsch from Depart-

ment of Business and Politics CBS are engaged in the

Sino-Danish Center for Research and Education (SDC)

project on Wind Energy in China Both research on the

current restructuring of industries and firms at the glob-

al level (outsourcing off shoring global value chains)

In particular their research is on 1) the restructuring of

innovation and RampD activities into global innovation net-

works(GINs)2)thechangingroleofemergingmarkets

(ChinaIndiaBrazilSouthAfrica)intheseemergingGINs

and 3) technology transfer and capability building related

to renewable energy

Research

37CSQ

by adapting their products to the Chinese market and through cost-out development activities in the new locations primarily China

As a result the wind industry is today highly knowledge-intensive and internationalized Due to increased attention and investments in sustainable transition policies and car-bon-reducing technology China has over the past decade developed into a high prior-ity investment area for wind turbines Also Chinese companies are upgrading technol-ogy and innovation from the global firms through integration into GINs Moreover the production and innovation networks for wind energy become highly complex and consist of many different suppliers of com-ponents (blades gear boxes control systems bearings) resulting in a variety of network linkages among suppliers of different com-ponents and the wind turbine producers

From our empirical data including more than 40 in-depth interviews collected in 2011 and 2012 in the wind turbines indus-tries in China and Denmark we have identi-fied some very interesting patterns We have identified very different characteristics of the GINs established by the Chinese wind tur-bine industry and the European wind tur

Emerging Global Innovation Networks

Innovation processes are also moving be-yond the boundaries of individual compa-nies and national innovation systems Firms engage in cross-border innovation networks spanning different innovation systems which may be national regional or sectorial in or-der to stay competitive in the global econ-omy Chinese lead firms are entering this scene too The result is globally organized networks of interconnected and integrated functions and operations by firms and non-firm organizations engaged in the develop-ment and diffusion of innovations so-called Global Innovation Networks (GINs) Lead firms internationalize innovation through strategies of exploitation global generation of innovation and global techno-scientific collaborations Chinese wind turbine pro-ducers ndash acknowledging their resource and capability deficiency ndash pursue strategies of innovation network integration through strategies of global generation of innovation These firms link up with specialized Europe-an actors such as core component suppliers through partnerships and networks in or-der to tap into the technology of firms from developed countries and upgrade Mean-while European companies internationalize through exploitation strategies for example

bine industry Although Danish and Chinese actors are experiencing a re-organization of activities and establish networks and globa-linnovation strategies the result is very dif-ferent

The industry from Europe and US

The industry from Europe and the US hosts the lead firms in terms of core technology de-velopment Denmark has traditionally played a key role as lsquoinnovation hubrsquo in technology development and global lead firms such as Vestas and Siemens Windpower (previously Danish lsquoBonusrsquo) took its start already in the 1970s The core competences of the Danish wind turbine innovation system are based on large testing facilities and long track records mainly due to the long time-line of experi-ence The wind industry goes 40 years back and therefore Denmark has a good knowl-edge pool within establishing wind farms (aerodynamics minimizing power loss in energy transmission wind mapping and other installation-related technologies)

38 CSQ

that will make it possible to finance the pro-jects ldquoFrom then on our wind turbine pro-jects developed very fastrdquo(Interview Wind Engineer Chinese Academy of Sciences) Thus this law was a milestone for elevating renewables to a strategic position in China or as expressed by a European lead-firm ldquoWhat drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick offrdquo

Until the turn of the millennium Chinarsquos wind energy industry was largely built on donors acquisition of finished wind turbines and licensed technology from European companies spread on a very small scale into the local industry during the mid 1990s Chi-nese wind turbine technology has evolved from imitation reverse engineering and licensing in the 1980-90s combined with assistance from foreign consultants One example is how DANIDA funded a project in 1986 for Goldwind in Xinjiang which imported 13 units of 150 kW lsquoBonusrsquo (now Siemens Wind Power) turbines

To get beyond the stage of pure imitation several policies have been introduced with the intent to upgrade Chinese manufacturers to obtain indigenous innovative capabilities Policy programs were introduced to enhance Chinese companies to develop wind energy subsidizing wind energy RampD expenditures at varied levels over time establishing a re-newable energy fund and through the ldquo863 Wind Programrdquo under the Tenth Five-Year Plan (2001-2005) Local content require-ments were put in place in which develop-ers of wind energy projects were required to source 70 pct of the content in China These policies ndash which essentially forced foreign manufacturers wishing to sell wind turbines to the Chinese market to establish China-based manufacturing facilities ndash were only removed recently (in 2009) One result was that the foreign companies had to up-grade local suppliers of components

Due to the technological complexity many European (and hereby also the Danish) firms are vertically integrated and have most com-ponents produced in-house or with regular specialized suppliers According to these companies the different parts need to be well adjusted to each other to some extent even co-developed in order to enhance effi-ciency and the lifetime of the wind turbine Likewise the European industry has expe-rienced a concentration of actors with the result that there are only relatively few but large manufacturers in Europe (the larg-est ones are Vestas Siemens Gamesa and Enercon) Together these four companies accounted for about 35 of the global mar-ket in 2010 By seeing the wind turbine as an integrated system these lead firms aim at producing lsquothe Rolls Roycersquo model wind turbines These are strong in terms of qual-ity and standards but generally expensive These firms learn cost-out techniques from their engagement with partners in China

The Chinese Wind Turbine Industry

Today the Chinese wind turbine industry is overly competitive It entails more than 80 wind turbine manufacturers and the Chi-nese market boasts the highest growth rates internationally with an average growth rate of 968 percentages annually in the last three years Several large domestic Chinese wind turbine manufacturers have emerged within the last decade Sinovel and Goldwind take the largest share followed by United Pow-er and Ming Yang just to mention some of them As of the end of 2010 these four were A major driver for the development of the Chinese wind energy market has been the establishment of an institutional context as a comprehensive concerted policy frame-work addressing the development of renewa-ble energies This change in the institutional context was first reflected clearly in the 11th 5-year-plan (2006-2010) which explicitly linked environmental sustainability to the key goal of establishing what was called a harmonious socialist society signalling a socially environmentally and economically sustainable economy With the Renewable Energy Law from 2005 the Chinese wind energy industry really took off as it explicitly seeks to ensure that renewable energy pro-jects have an outlet for their output at prices

Technical barriers and the role of GINs for a post-carbon society

Despite high ambitions in terms of devel-oping innovative capabilities Chinese pro-ducers still produce almost exclusively for the Chinese market However Chinese wind turbine manufacturers have recently started an internationalisation process and some are approaching international markets Not least for tapping into new knowledge

Europe (and Denmark in particular) is per-ceived as a main location from which the Chinese companies can learn more A cou-ple of Chinese companies have already set up RampD centres in Denmark European firms have also initiated RampD centres in new lo-cations primarily China and India In other words GINs can be identified

Our research also points towards important barriers for GINs in the wind turbine in-dustry and for approaching a post-carbon global society Most importantly are the technological barriers intellectual property rights quality issues and issues of limited appropriability of knowledge Further the institutional framework remain relevant for displaying how the sector and the emerging GINs are embedded institutionally socially and technologically Whether actors trans-act knowledge technology and know-how through cooperative innovation activities also depends on how core the technology of a given technology is Still as the market grows in China it seems to have matured in Europe because of changing policies on re-newable energy To sustain the position as a global lsquohubrsquo and world leader in wind tech-nologies there is a strong need for support in Europe as this research really shows how fast the Chinese industry is moving One major result is how important networks are for upgrading companies and it seems that Chinese firms perform better in network strategies and manage to tap into relevant knowledge than the European firms

What drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick off rdquoldquoInterview Wind Engineer Chinese Academy of Sciences

39CSQ

Social Enterprise World

ForumNadine Koumlcher from 180Degrees recounts her experience from the

conference on

Rio de Janeiro Brazil 2012

In the numerous panel debates and parallel track discussion it became clear that Impact Investment is a hot topic among both social entrepreneurs and impact investors a diverse group consisting of corporations founda-tions and potential donors However various obstacles impede a harmonious relationship between the twoSocial enterprises face structural challenges to make themselves more appealing to im-pact investors They have to become more transparent and increase their accountability This includes improving their impact assess-ment and reporting tools However despite much discussion no consensus could be formed on how to optimally conduct im-pact assessment One of the most frequently proposed methodologies involves the use

From the 16th to the 18th of October the CBS Sustainability Platform granted me the opportunity to attend the 5th Social Enter-prise World Forum which took place in Rio de Janeiro Brazil This yearly international conference focuses on social enterprises and their effectiveness in solving social challeng-es The overall theme of the 2012 conference hosted by NESsT was ldquoSocial Enterprise Investing for Impactrdquo Thus for three days over 180 speakers and 650 delegates from 30 different countries shared their experiences regarding impact investment and discussed possibilities to attract new investment by both the public and the private sector for so-cial enterprises

of control groups Story-telling has also been men-tioned to be a powerful tool to provide investors with a proof of outcomesSocial investors are willing to accept returns just below the market rate in exchange for a social return However large profits are still expect-ed and many social enter-prises are afraid of being unable to generate them Social enterprises typically operate on a small scale and are not used to undertake large projects with huge sums of investment given to them Many are too small for social investors to be

attractive as costs are similar for small and large investments although larger invest-ments have a higher payoff

Nichole Echert the CEO of NESsT there-fore pointed out that it is necessary to align expectations between impact investors and social entrepreneurs and to be patient in establishing a relationship between the two groups The expected financial return has to be reasonable close to covering the costs of operation and social returns have to be re-ported to investors by use of clearer criteria

By Nadine Koumlcher Director of Branch Development180 Degrees Consulting Limited

ldquoSocial Enterprise Investing for Impactrdquo

Students

40 CSQ

A highlight of the con-ference was definitely the site visit to a social enterprise project in a recently pacified fave-la It brought further insights on the great variety of social enter-prises that exist in Bra-zil and their missions and struggles We visit-ed a community center at which Comitecirc para

Democratizaccedilao da Informaacutetica (CDI) uses technology to fight poverty and to stimulate entrepreneurship CDI has formed a corpo-rate partnership with Coca Cola which in the same building teaches young locals how to write a CV and find a job Talking to the young locals at the center it became apparent that an increased self-confidence and the in-spiration they get from meeting former now employed participants of the project (eg at Coca Cola) is what they valued most of being part of the class

Participating at the conference was definite-ly a unique and valuable experience I would not want to miss as I tremendously improved my knowledge in the field of social enter-prises through attending the numerous pres-entations and discussions and further met so many inspiring social entrepreneurs impact

In addition it has been stressed that the problem is not a shortage of investment capital (even though the government could promote more impact investment by for instance granting tax breaks) but how to deploy it Social entrepreneurs also have to be aware of the different advantages and dis-advantages of the various types of capital It has to fit their process of establishment and it has therefore been suggested that funds and grants are most optimal in the start-up phase to cover such costs as capacity train-ing There is generally a lack of this early stage financial support Following the initial phase strategic philanthropy money would be most appropriate before impact and final-ly equity investment is sought Furthermore new ways of investment which fit the social enterprise world have to be created replac-ing the current situation of trying to fit social enterprises into the current financial world

investors and students with a genuine inter-est in the field

Participating at the conference was definitely a unique and valuable experience rdquo

ldquo

Social Enterprise World Forum 2013 in

Calgary Canada

The TRICO Charitable Foundation in part-nership with the Social Enterprise Council of Canada and the Social Finance Forum has been selected to host the 6th Annual Social Enterprise World Forum SEWF 2013 will take place October 2-4 2013 in Calgary Al-berta The Forum will present the Canadian social enterprise movement with opportuni-ties to engage learn and share on the inter-national stage

SEWF 2013 will be a gathering of over 1000 Canadian and international delegates who are involved in the social enterprise move-ment where the blending of social and fi-nancial values is core to business Attendees will consist of practitioners (from all sec-tors) funders investors supporters elected officials and public servants from around the world

Nadine Koumlcher

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 4: CBS Sustainability Quarterly 2013 #1

4 CSQ

In this issueCSQ updates

Updates from partner organizations

Students

Events at CBS

PHD Focus

Research

CSQ Interviews

Update 5

Research clusters launched 6-9

Past Events 41-42

Upcoming Events 43

Hydropower Sustainability 29-31in China

Social Enterprise World 39-40Forum

Jenny Mead 10-11

Christian Friis Bach 12-14

180 Degrees 15

360 students 16

PRME 17-19

cbsCSR 20-21

CBS Goes Green 22

COBREN Biofuel 23-26Conference

Transparency-Sustainability 27-28 Nexus Workshop

Energy Efficient 32-33 Construction

The Climate Challenge in 34-35Shipping

The Wind Turbine Industry 36-38

5CSQ

Update

Next application deadline for Sustainability

Platform funding is 15 May

Applications of less than

25000 DKK can be submit-

ted on an on-going basis

Call for papers Journal of Consumer Policy Special

Issue - CBS Harvard Collaboration

Call for papers Sustainability in a Scandinavian Context

Conference at CBS

activities supporting sustainability research and education at CBS including expenses in connection with workshops seminars and conferences travel visiting faculty and salary for research or student assistance but please note that the Platform is not allowed to compensate faculty with internal buyout (frikoslashb) Please remember to use the ap-plication form to be found on our website when applying And do contact us if you have any questions beforehand

It is now possible to submit applications for smaller initiatives of maximum 25000 DKK to the Sustainability Platform on an on-going basis This is done to increase flexibility and create space for facilitating sustainability in-itiatives with a more short-term perspective When applying the Platform for support please also use the application form to be found on our website httpwwwcbsdkencbs-focusbusi-ness-in-society-bis-platformssustaina-bility

The Journal of Consumer Policy will publish a Special Issue on Behavioural Economics Environmental Policy and the Consumer edited by Professor Lucia A Reisch (CBS) and Professor of Consumer Behaviour and Consumer Policy Cass R Sunstein (Harvard University and Harvard Law School USA) In 2011 the Journal published a Special Issue focusing on ldquoBehavioural Economics Consumer Policy and Consumer Law ndash An interdisciplinary Perspectiverdquo Following on this trajectory the present Call focuses on the increasingly discussed possibility of applying behavioural economics to ldquonudgerdquo consumer choice and behaviour in the domain of environmental protection The editors invite both conceptual and empirical papers with a variety of perspectives (including both ldquoprordquo and ldquoconrdquo) and from a variety of disciplines Papers have to be submitted be-fore October 1st 2013 and according to the submission and author guidelines available on the journal website httplinkspringercomjournal10603 The publication of the Special Issue is scheduled for March 2014

On 10 and 11 June the Sustainability in a Scandinavian Context Conference 2013 will be held at CBS The con-ference is intended to bring academics and practitioners together to consider sustainability in a Scandinavian context and the potential development a research paradigm dedicated to exploring sustainability in a Scandinavian context Extended abstracts of between 500 - 1000 words are due by 10 April 2013 Accepted extended abstracts will be made available on the conference website and printed in the conference proceedings Extended abstracts will be considered with regards to their fit and potential contribution to the Sustainability in a Scandinavian Context Conference 2013 and furthermore with regards to their potential contribution as fully developed articles to a special issue dedicated to ldquoSustainability in a Scandinavian Contextrdquo This special issue will be with a respected international academic manage-ment journal (to be announced in advance of the conference) that will be edited by professors R Edward Freeman Kai Hockerts Mette Morsing and Robert Strand The call for the full articles will be early 2014 Please go to the confer-ence website httpwwwconferencemanagerdkssc2013conferencehtml for more information

Since its launch in July 2011 the CBS Sus-tainability Platform has been pleased to support a number of sustainability-related initiatives across CBS departments and dis-ciplines - and we are still very interested in receiving new applications for initiatives The next round of applications is due on 15 May 2013 n this round the Sustainability Platform will support initiatives with budg-ets up to 200000 DKKThe Platform is able to support a long list of

CSQ Update

6 CSQ

Six New Sustainability

Clusters Launched at CBS The CBS Sustainability Platform is happy to announce the launch of six new Sustainability Clus-ters in 2013 With the energy of a number of CBS colleagues that have taken on the responsibility of leading the Clusters the Platform hosted a kick-off meeting in January where focus and ideas for future activities of the Clusters were discussed among the Cluster leaders

Green Innovation and New Business Models

Corporate Governance and Leadership for

Sustainability Strategy

Sustainable Transitions in Developing and

Emerging Economies

Governing Sustainability

Communicative Dimen-sions of Sustainability

Sustainability in the Post-Growth Economy

he purpose of the Sustainability Clus-ters is to contribute to sharpen the

definition of what CBS does and will do on sustainability for the future The Clusters will thus work independently with researchers across CBS to highlight and position sustain-ability competences at our business school and facilitate multidisciplinary collaboration within and beyond CBS

With seed funding from the Platform the Cluster leaders plan for a number of activi-ties over the next few years within research education and outreach working as lsquocon-necting hubsrsquo for researchers at CBS that are engaged or wish to become engaged in spe-cific thematic areas within sustainability

Clusters will develop in-itiatives within research education as well as outreach in a variety of mixes Some will focus their efforts on developing new con-tent for Sustainability teaching and integrat-ing it into new andor existing courses and programs others will focus on developing new research projects and applications for external funding involving international re-search colleagues and corporate partners Some Clusters plan to facilitate the author-ing of journal publications and books as well as summarizing relevant literature in the field and making it available to inter-ested scholars at CBS There will also be efforts to work closely with students and external stakeholders on conferences sem-

inars and workshops and to invite interna-tional researchers and practitioners to share their thoughts on sustainability Activities will naturally depend on the particular inter-est of the CBS researchers that wish to take part in the Cluster

Cluster leaders as well as the Sustainability Platform team would like to hear from you on new ideas for activities comments or questions or on whether you would like to be engaged

T

CSQ Update

7CSQ

The Cluster on Green Innovation and New Business Models focuses on discussions and challenges around the increasing problems of global warming resource scarcity and en-vironmental deterioration which have a sub-stantial and comprehensive impact on future business conditions Companies must devel-op strategies to mitigate risks from supply disruptions social unrest rising materials costs and pressures from regulators NGOs and the general public The efficient use of resources will be an important competitive parameter and the need for sustainable pro-duction and resource use will open up new opportunities for innovations in technology products services and business models

The focus of the Cluster on Sustainable Tran-sitions in Developing and Emerging Econo-mies stems from the notion that developing and emerging economies (DEEs) are one of the main engines of contemporary growth in the global economy They face massive transitions in economic social and envi-ronmental terms In order to explain how business in these countries can contribute to sustainable growth the Cluster explores (1) innovative approaches and North-South partnerships on technology co-production

This Cluster will explore and analyze theo-ries frameworks and empirical evidence on the conditions and tools for promoting and managing sustainable innovation and busi-ness models with focus on environmental issues The Cluster will seek a coordinated alignment of both technological (and prod-uct and process) development and business model innovation including market plat-forms and infrastructures

Professor Jens Froslashslev Christensen (jfcinocbsdk) and Associate Professor Christian Erik Kampmann (cekinocbsdk) the De-partment of Innovation and Organizational Economics

and transfer within clean-tech industries (2) green innovation networks and capacity building in DEEs (3) social entrepreneur-ship and social business models in DEEs and (4) sustainability strategies of global firms that have implications in DEEs (Base-of-the-Pyramid markets Sustainable Value Chains) Associate Professors Soslashren Jeppesen (sjiklcbsdk) the Department of Intercultural Communication and Management and Stine Haakonsson (shdbpcbsdk) the Depart-ment of International Business and Politics

The six CBS Sustainability Clusters will be

focused on the following themes

Green Innovation and New Business Models

Sustainable Transitions in Developing and Emerging Economies

Stine Haakonsson

Jens Froslashslev Christensen

Christian Erik Kampmann

Soslashren Jeppesen

8 CSQ

The Cluster on Governing Sustainability takes it starting point in the recent flourish-ing of private governance of sustainability initiatives Private actors such as business firms and civil society groups have created numerous initiatives addressing pressing so-cial and environmental problems both at the national and transnational levels Some of these are strictly private others are collaborative efforts with the public sector In this Cluster we are particularly interest-ed in examining corporate codes of conduct public-private partnership agreements labe-ling schemes and standard setting by mul-ti-stakeholder initiatives with a focus on (1) legitimacy and accountability processes and

strategies related to private sustainability governance (2) the effectiveness and impact of sustainability initiatives (3) the dynamics of the relationship between hard and soft law (4) the influence of the state on private sustainability governance and (5) the or-ganization of sustainability management in transnational firms Professor Andreas Rasche (ariklcbsdk) the Department of Intercultural Communi-cation and Management and Associate Pro-fessor Jette Steen Knudsen (jskdbpcbsdk) the Department of International Business and Politics

Governing Sustainability

This cluster invites for exploration of the communicative construction of sustainabili-ty across a variety of interests and stakehold-ers Organizations are traditionally under-stood as instrumental spaces for managers to produce products and processes towards a more sustainable society However increas-ingly organizations appear as social and moral spaces where the meaning and role of sustainability is communicatively negotiated and co-constructed and no definite agree-ment seems to be achieved across publics This development poses new challenges for business in their continous work to appear as legitimate participants vis aacute vis civil society the political system and other organization-alcorporate actors In this cluster we focus on (1) how communication of sustainabili-ty has become a strategic tool for managers working in business ngos and policy-mak-ing (2) how traditional and social media play

an important role in mediating issues of sus-tainability across publics (3) how marketing and branding of sustainability influences consumption and public opinon and (4) how different forms of political and corpo-rate communication (via persuasion facts dialogue etc) about sustainability raise questions about the democratic models that underpin sustainability discourses Against this backdrop the sustainability cluster brings together leading academics from a range of disciplines to explore the role and meaning of communication in a broad sense for the development of sustainability

Cluster leaders Professor Anker Brink Lund (abldbpcbsdk) the Department of Inter-national Business and Politics and Assistant Professors Julie Uldam (juiklcbsdk) and Anne Vestergaard (aviklcbsdk) the De-partment of Intercultural Communication and Management

Communicative Dimensions of Sustainability

Anne Vestergaard

Julie Uldam

Anker Brink Lund

Andreas Rasche

Jette Steen Knudsen

9CSQ

The Cluster on Sustainability in the Post-Growth Economy starts from the realization that the era of perpetual economic growth may be over The Cluster explores and devel-ops ideas and imaginaries of what a sustain-able post-growth economy might look like The purpose of such effort is to transform the end of growth from being the cause of social economic and ecological depredation into being an opportunity for the creation of new forms of economic organization that do not rest upon the condition of growth We ap-proach this challenge by starting to rethink some fundamental economic concepts from the perspective of a post-growth economy

What is a company What is work What is leadership What is money What is con-sumption What is a market And what is in fact economic growth The Cluster will ap-proach these questions theoretically by look-ing into their assumptions rooted in the par-adigm of growth capitalism and empirically ndash by studying actual practices of alternative economic organization Associate Professor Ole Bjerg (oblpfcbsdk) and Professor Bent Meier Soslashrensen (bmslpfcbsdk) the Department of Man-agement Politics and Philosophy

Sustainability in the Post-Growth Economy

The Cluster on Corporate Governance and Leadership for Sustainability Strategy focus-es on managerial behavior and performanc-es related to responsibility in corporations with a particular interest in how managers and leaders in firms relate to and behave vis aacute vis expectations to corporate sustainability strategies policies and action The Cluster will invite discussions that engage with how responsibility issues play a role in shaping systems and models of corporate governance and leadership and conversely how different models impact corporate responsibility and performancesThe emphasis will be placed on bringing into the management debate to what extent responsibility brings demands

for new management competences and man-agement models The Cluster is particularly but not exclusively interested in exploring the relationships between sustainability and corporate performances with (1) board of director characteristics (2) corporate owner-ship structures (3) shareholder activism (4) leadership approaches (5) ethical consider-ations regarding corporate governance and leadership and (6) comparisons of corporate governance and leadership approaches in a Scandinavian context vis-agrave-vis other global contexts

Associate Professor Bersant Hobdari (bhintcbsdk) the Department of Internation-al Economics and Management

Corporate Governance and Leadership for Sustainability Strategy

Bent Meier Soslashrensen

Ole Bjerg

Bersant Hobdari

10 CSQ

Writing a good business case

from a Hollywood perspective

Jenny Mead (left) picture from readthehookcom

On November 28 2012 Kirsti Reitan Andersen temporary project manager at CBS Sustainability Platform interviewed Senior Research-er Jenny Mead Darden School of Business University of Virginia in extension of her visit to CBS Jenny Mead was here to host a workshop and one-on-one sessions on how to write good business cases with a focus on sustain-ability

Interview with Jenny Mead Senior Researcher Darden School of

Business

Could you tell a little bit about yourself

ldquoI have been at Darden School of Business for the past 10 years I write cases about business ethics sustainability strategy and leadership I am not a business person at all but call my-self a writer because that is what I prefer I write stories I have worked in the film busi-ness in Hollywood where I worked as a De-velopment Executive It means that I looked for projects that could be made into movies Again I am not a business person at allIn the 1920s Harvard University started case-based teaching Darden followed through on the case tradition in 1950s Darden has con-tinued to focus on business ethics as key in educating students From the 1950s onwards

in the first year of undergraduate studies we have had a mandatory business ethics course This tactic has developed a large student body which is constantly aware of business ethics as an integrated part of business life The business ethics cases I write have an ele-ment of ethical ambiguity and decision-mak-ing that contains ethical considerationsrdquo You are visiting CBS to host a case-writing workshop and one-on-one sessions with as-piring case-writers What have the partici-pants gained from the workshop

ldquoThey get a primer of what a business case looks like They learn what a case looks like and are given an exercise where they have to

craft a case and have colleagues critique that The second day concerns teaching notes If a professor from another business school wants to teach it they can get the teaching notes that suggest how to teach the casesrdquo

What is a good case and why are cases ben-eficial for teaching

ldquoInstead of using textbooks in classes teach-ers can make use of business cases Generally a case should present a dilemma that has to be solved or a business decision that has to be made by the protagonist in the caseBusiness cases are a good way of placing the student in the shoes of a manager or decision maker Giving him or her the practical expe-

CSQ Interview

11CSQ

Writing a good business case

from a Hollywood perspective

Jenny Mead and Jonas Hedman from Department of IT Management at Copenhagen Busimess School

From the workshop at Copenhagen Business School

riences in a safe environment ndash no company is going bankrupt based on the decisions It is almost real world training but you are not in the real world A feature of case teaching at Darden School of Business is the use of small video clips of the protagonist in the business case Instead of students just reading about the protago-nist in the case the protagonist presents the problem or issue on video to create a lively teaching environmentrdquo

Do businesses actually think about ethicsThat is a good question and I believe there is

a growing awareness I am very impressed by Darden and the students Maybe it is because of the mandatory first year ethics course but the students are very concerned with CSR sustainability and values

I am currently working on a series of cases on conscious capitalism More and more businesses are adopting true values A shift has been made towards conscious capitalism The idea of conscious capitalism is that busi-nesses realize the value of good treatment to all stakeholders Businesses exist to create value for everybody

Relevant links

Darden Case Studies

The Olsson Center for

Applied Ethics (Jennyrsquos

employer)

The Business Roundtable

Institute for Corporate

Ethics

httpwwwcorporate-ethics

orgpublicationscase-studies

httpwwwdardenvirginia

eduwebOlsson-Center-for-

Applied-Ethics

httpwwwcorporate-ethics

org

12 CSQ

SUSTAINABILITY AND

DEVELOPMENT COOOPERATIONInterview with Minister for Development Cooperation

Christian Friis Bach

Did you know that 7 out of 10 of the fast growing economies can be found in Africa Or that DANIDA funds a programme in which CBS and other Danish universities work together with universities in Tanzania Ghana and other countries to increase the quality of research and uni-versity-level education in devel-oping countries

CSQ - Elisabeth Crone Linding amp Stefano Ponte sat down with the Dan-ish Minister for Development Co-operation Christian Friis Bach to hear about how the developing world is moving ahead fast ndash and why Denmark needs to keep up in order to stay relevant

I t is not every day that we meet with min-isters on the top floor of Asiatisk Plads

ndash the official home of the Danish Ministry of Foreign Affairs and DANIDA the inter-national development cooperation branch of the Ministry Nevertheless here we are over-looking the busy waters of the Copenhagen canal and looking forward to a long-planned rendezvous with Christian Friis Bach Min-ister of Development Cooperation since the autumn of 2011

Besides spending time in the academic ranks of Copenhagen University and the political spheres of the European Commission the Minister knows a thing or two about the de-veloping world he has previously devoted his

time to positions in DanChurchAid WWF World Wide Fund for Nature MSActionAid and the Danish Ethical Trading Initiative

In its current strategy DANIDA has put a new focus on green growth renewable en-ergy sustainable agriculture and innovative solutions to enable continued access to scarce resources ndash a quite green agenda in fact But how does this resonate in a developing world that is growing very fast According to the Minister perceptions are changing with more democratic political environments be-ing built

ldquoMore and more developing countries see green growth and sustainability not as stum-

bling stones but as building blocks of a fu-ture strong economy They recognize that in a world of natural resource scarcity and increas-ing prices on for example energy they need to adopt a different growth pattern More and more poor countries are buying into this And therefore we now have a unique opportunity for shaping the political framework and ena-bling environment to create more sustainable developmentrdquo

So how does a business school such as CBS fit into this equation What can we offer

This is a key question for us to ask As the Sustainability Platform was born out of the CBS Business in Society strategy we are in-

CSQ Interview

13CSQ

terested in looking for ways to address grand societal challenges such as ensuring sustain-able development

Christian Friis Bach recognizes that CBS as a research and educational institution has a role to play here ndash maybe even a bigger role than we play now Because even though CBS is known and regarded as a very internation-ally oriented university the Minister encour-ages CBS to go even further in sharpening its global commitment and profile

ldquoMany of the problems that we have related to growth and employment in Europe are not to be found in developed countries I hope that CBS continues to engage internationally in order to shape graduates to tackle global chal-lenges For example 7 out of 10 of the worldrsquos fastest growing economies are in Africa and here I would really urge CBS to have an even stronger engagementrdquo

CBS is involved in the Building Stronger Universities in Developing Countries Pro-gramme (BSU) which is a partnership be-tween research and higher education institu-tions in selected developing countries and all the main Danish universities The long-term goal of the initiative is to make the partici-pating institutions stronger by conducting joint research projects that offer knowledge and solutions to localdomestic and global challenges to produce better graduate pro-grams and for universities to play an increas-ing role in the economic social and political development of their own countries How-ever Christian Friis Bach also encouraged close dialogue with a broader set of partner universities in the developing world as an important way for CBS to shape its research and educational efforts and thus remain rele-vant in the future

Christian Friis Bach highlighted

ldquoIt is a big world And the world moves fast And I think the challenges upon our edu-cational system in Denmark are increasing every day When I go to South Korea China Latin America or Africa I see that they look increasingly towards each other for innovative solutions not towards Europe If we need to remain relevant we do have a challenge hererdquo

For example this means looking at the econ-omies in the world that are the most innova-tive These are in many cases in the develop-ing world so this is when CBS should invest when it comes to partnering in research educational development and knowledge exchange for example among faculty and students

The Minister also notes the advantages that can be gained from globalizing our institu-tions much more broadly and working across borders and academic fields for example on

The Building Stronger Universities in Developing Countries initiative amp CBS

ldquoBuilding Stronger Universities in Developing Countriesrdquo is a partnership between research and higher education institutions in developing coun-

tries and Danish universities The long-term goal of the initiative is to make the participating institutions stronger in the sense that they

bull playanincreasingroleintheeconomicsocialandpoliticaldevelopmentofthesocietiesinwhichtheyarelocated

bull functionasnodesofinnovationandknowledgeproductionprovidingsolutionstolocaldomesticandglobalchallenges

bull produceskilledandmotivatedgraduatesthatcancontributetothefurtherdevelopmentofthesocietiesandaddressthechallenges

faced

The ldquoBuilding Stronger Universitiesrdquo initiative has a structure with four thematic platforms Copenhagen Business School contributes to one of

the four platforms under the initiative the Growth and Employment platform which is a partnership between University of Ghana (UG) Kwame

Nkrumah University of Science and Technology Ghana (KNUST) University of Dar es Salaam Tanzania (UDSM) Sokoine University of Agriculture

Tanzania (SUA) and the major Danish universities From CBS Associate Professors Soslashren Jeppesen and Michael Wendelboe Hansen the CBS

Center for Business and Development Studies is part of the project which for example seeks to develop relevant PhD programmes strengthen

growth and employment relevant research activities and research collaboration and disseminate research findings to stakeholders

wwwbsuudorg

Students Sierra Leone (picture from umdk) Photo Joslashrgen Schytte

When I go to South Korea China Latin America or Africa I see that they look increasingly towards each other for innovative solutions not towards Europerdquo

ldquo

14 CSQ

health technology and business develop-ment in cooperation with developing coun-try researchers And we need to be good at a lot more than ldquojustrdquo development coopera-tion ldquoif we want to remain relevant for exam-ple in Africa on sustainable business we can-not afford to send people out who have worked isolated in the development community here in Denmark So instead of seeing development research as a separate discipline it needs to be integrated into everything we dordquo

That is why the Minister argues for more fo-cus on educating graduates that are experts and specialists but not necessarily within development cooperation Instead he says Denmark needs graduates that can develop the best possible solutions for the developing world within energy technology etc ldquoThe fast-growing economies in China Southeast Asia Latin America Africa do not need spe-cial things made for developing markets they need top innovative solutions and high-quality products and we need to be able to offer that to them if we want to remain relevantrdquo

One of the solutions worth repeating is that of partnerships According to the Minister universities need to remember that partner-ships with other research institutions as well as with private companies and organizations can provide greater insight

ldquoYou need not only public-private partner-ships but large-scale multiple partnership Still universities can sometimes behave as isolated entities Of course universities need to focus on the core business of researching and educating students but they will also in-creasingly be challenged to engage in these in-ternational and multiple partnerships This is where you will find some of the most inspiring

About Christian Friis Bach

Born 1966 in Frederiksberg Denmark Married three children Lives on a hobby farm near Ganloslashse

Present officeMinister for Development Cooperation 3 October 2011 ndash

Education1992-1996 PhD International Economics Royal Danish Agricultural University Copenhagen 1986-1992 MSc Agronomy Royal Danish Agricultural University Copen-hagen

Work Experience2010-2011 Special Advisor for EU Commissioner Connie Hedegaard (UN Global Sustainability Panel) 2010-2011 CEO ViewWorld ApS 2009 Affiliated Professor in International Economics and Development at the University of Copenhagen 2005-2010 International Director DanChurchAid 2002 Journalist at the Danish Broadcasting Corporation (DR) 1999-2005 Associate Professor International EconomicsDevelopment Economics Royal Danish Agricultural University (University of Copenha-gen)

Other engagements2010-2011 Member of the Board of the Danish United Nations Associa-tion 2008-2010 Initiator and Board Member of the Danish Initiative for Ethical Trade 2008-2009 Member of the Danish Africa Commission 2007-2011 Member of the Presidium for WWF World Wide Fund for Nature Denmark 2000-2006 Board Member International Institute for Sustainable Develop-ment 1997-2001 Chairman Mellemfolkeligt Samvirke (Danish Association for International Cooperation)

Christian Friis Bach has published a large number of books reports and ar-ticles in newspapers and magazines Please see wwwfriisbachdk for details

15CSQ

In December 180 Degrees Consulting (180DC) finished its third round of pro-bono social impact consulting projects with even more success than in previous semes-ters All consultants showed dedication and motivation by spending a large amount of their spare time to work with socially con-scious organizations in order to help them to improve their social impact

An overcrowded lecture room during the 180DC information meeting at the begin-ning of the semester and the high number of applications to join the consulting projects were evidence of great interest in 180DCrsquos activities Out of the 139 applicants the top 45 were selected in a two-step recruitment process and grouped into teams of five to work on the nine exciting projects lined up in the Fall 2012 semester

All projects involved Danish-based organi-zations with a strong focus on either social andor environmental sustainability The projects however differed vastly One of the consulting teams assisted Engineers Without Borders and Action Aid in developing an investment rationale for the cultivation of farmland belonging to an Indian orphanage as well as assessing the social return of this investment

Another 180DC team worked with Hertha an organization focused on the reverse in-tegration of ordinary people into a commu-nity of mentally challenged Hertha needed assistance with improving their external reporting setup to stakeholders which was achieved by developing useful tools for the organization to measure both the social and cultural impact of their activities Yet another team of consultants helped the International Rehabilitation Council for Torture Victims optimizing their internal processes and thus helping them pursue their vision of a world without torture

During the consulting period 180DC or-ganized several training sessions for the con-sultants of the organization hosted by pro-fessional consultancies and each team was assigned a mentor with expertise specific to the given project The highlight of the semes-ter was the Final Event at which all of the teams presented their projects in front of a large audience comprised of all 180DC con-sultants the 180DC board members as well as mentors clients and a jury consisting of representatives from PwC DI CBS Sustain-ability Platform BCG and VSFA The juryacutes task was to evaluate the consulting projects based on their written report and oral pres-entation Based on the creativity feasibili-ty and impact potential of the projects the chairwoman of the Jury Birgitte Mogensen PwC announced the winner of the 180DC Social Impact Award Team Engineers With-out Borders

All of the 180DC board members have throughout the semester been working hard to constantly improve the organization in or-der to ensure a high quality of the services provided to clients and of the learning ex-perience provided to students With a new extended board in place 180DC is looking forward to continue its successful journey in the upcoming semester which kicked-off in January with two international projects in Chile and Sierra Leone ndash thanks to the sup-port of the CBS Sustainability Platform

by Nadine Koumlcher

UPDATE FROM 180DEGREES180 Degrees Consulting is an international student consultancy that works with growing non-profits helping them achieve a greater social impact

Contactphone no +45 6061 6399e-mail cph180degreesconsultingorg

Updates from partner organizations at CBS

16 CSQ

The past semester was a good one for 360deg Students for Sustainability Not only did our organization grow to nearly 50 members this fall but we were also nominated in the Student category for the CSR Awards 2012 ndash the second year in a row You can watch the nomination video here httpwwwyoutubecomwatchfeature=player_embed-dedampv=6J5mwn7TcYI Although we didnrsquot win the award representatives from 360deg got the chance to participate in the conferencersquos many seminars ndash and not least hear Bill Clin-ton speak360deg also took it to another level with 360deg Academy The project was a huge success with over 250 people signed up for the ex-tracurricular course It shows that there is a clear interest in CSR and sustainability among the students and that 360deg Students

for Sustainability fill an important gap in providing the students with a forum where they can discuss such issues with each oth-er professors and practitioners We have al-ready started planning Academy 2013 which will run in the fall In addition to 360deg Academy 360deg organ-ised several successful events and seminars the past semester 360deg Develop Prize was kick-started in November and has already found some dedicated social entrepreneurs who will join the coming events this spring as well as the final competition 360deg also co-organized events on microfinance (with Danish Forum for Microfinance) and fair-trade (with Fairtrade Maeligrket) We also created a nice Christmas spirit at the CBS campus with our annual Christmas event featuring cookies a fairtrade Christmas tree

and do nations to Red Cross and Verdens SkoveWhile it is important to look back this semester 360deg is focusing on the future By the end of the semester 360deg Students for Sustainability will have changed its name to oikos Copenhagen After becoming part of the international student network oikos in 2011 we believe that changing our name will emphasize our international commitment and will show the students the many oppor-tunities that are available to them through the oikos network You can read more about oikos International and the other 36 chapters around the world by visiting wwwoikos-in-ternationalorg

Christina EkChairwoman of 360deg and soon-to-be President of oikos Copenhagen

UPDATE FROM 360 STUDENTS

360deg Students for Sustainability

360deg Students for Sustainability is a non-profit student organization based at CBS working to enable and inspire students to make responsible and sus-tainable decisions in their future lives and professional careers

Contact Christina Ek tlf 42 39 99 54 mail info360studentsdk

Live show at CSR Awards 2012

(Picture from csrfondendk)

Updates from partner organizations at CBS

17CSQ

UPDATE FROM PRME

New approach by the Curriculum Development

projectThe commitment to the initiative of the UN Principles for Responsible Management Education (PRME) at CBS has been further sustained via a more targeted approach to the development of the curriculum at the undergraduate programmesAs part of the adherence to PRME CBS has launched a Curriculum Development project to integrate responsible management prac-tices into the study programmes and also make these practices more explicit This is an extensive process that recently has been even more focused on the individual content of each of the study programmes A more cus-tomised approach will only strengthen the analyses of syllabi for each core course and increase the content of explicit responsible management

ldquoThe current restructuring of the Service Management bachelor programme and the development of three specialised lines of ed-ucation offer a great opportunity to align the curriculum development with the Principles for Responsible Management adopted by CBS Currently the CBS Office for Respon-sible Management Education and faculty members from CBS are working to identify opportunities to integrate responsible man-agement education into the educational programmerdquo Assistant Professor Adriana

Budeanu BSc in Business Administration and Service Management CBS In collabo-ration with study boards students and fac-ulties the Curriculum Development project enables a targeted approach to the integra-tion of responsible management content in order to comply with the overall structure of each study programme

Anti-piracy strategy from Maersk was a winning strategy

In collaboration with the CBS Sustainabili-ty Platform the CBS Office for Responsible Management Education arranged an internal competition to identify the best team of stu-dents to represent CBS at the International Business Ethics Case Competition (IBECC) in San Diego later this year The students had to select a business case entailing a challenge with legal financial and ethical aspects and propose a solution to this challenge A jury found the winning team based on a live presentation followed by a QampA session that took place in November 2012

The winners of this unique opportunity were the graduate students Bjoslashrg Ilsoslash Klinkby (MSc IBP) Adam Eithz Kromann (MSc BAP) and Anne Cathrine Gaarde (MSc IBP) They presented a business case on the anti-piracy strategy of Maersk

Winners of the Business Ethics Case Competition

Updates from partner organizations at CBS

18 CSQ

THESIS PARTNERSHIP BETWEEN GRADUATE

STUDENTS AND COMPANIES MATCH-MAKING

On behalf of CBS the Office for Responsible Management Education invited companies and organi-sations to participate in a match-making event with graduate students who were looking to write their thesis within the field of sustainability or social responsibility

Prior to the event that took place on the 6th of February ambitious graduate students were matched with eight very diverse organ-isations all wanting to explore challenge and develop CSR related activities The selection of organisations ranged from Center for So-cialt Ansvar who sought the studentsrsquo advice on how to revitalise their social concepts in corporation with the civic public and pri-vate sector to Wonderful Copenhagen that engaged the students in their aspirations of

retaining Copenhagen as a leading ldquogreenrdquo conference destination This diversity mere-ly reflected the broad-based educational standards that are embodied in the conducts of CBS and enabled students from all study areas to participate With the meeting as the focal point of the event the aim was to in-troduce more students and companies to the possibilities of a thesis partnership On that basis it is the hope that students and organisations will take the initial meeting

further into a collaboration resulting in a thesis that with an analytical and reflected approach hopefully provides valuable insight for all parties The event was indeed a unique opportunity for the students to get the or-ganisationsrsquo unremitting attention but also the organisations expressed their excitement about how the theoretical knowledge and skills of the students could be combined with the specific issues reaching beyond everyday operations of the organisation

PRME

Lene Mette SoslashrensenTel +45 3815 2651E-mail lmsiklcbsdk

PRME Manager

Johanne Duelund Kramer from Wonderful Copenhagen and CBS student Joseacute Bandeirinha from International Marketing and Management

Updates from partner organizations at CBS

19CSQ

A value adding partnership

The match-making event was kick-started by Professor Andreas Rasche who gave a short speech on trends in the field of sustainability and social responsibility Likewise thesis con-sultant Vibeke Ankersborg rounded off the event by guiding both students and organisa-tion representatives in the right direction of obtaining a value adding thesis partnership

By facilitating integration of the theoretical knowledge pool at CBS with real-life busi-ness cases and their challenges this initiative underpins CBSrsquos Responsible Management Education profile ldquoAddressing societal chal-lenges in interaction with business is a key element in our Business in Society strategy and we hope to set up a similar initiative in the futurerdquo Lene Mette Soslashrensen PRME Manager CBS

Being able to engage in a thesis partnership gives us the opportunity to get new and fresh eyes on the challenges and opportunities we face in the aspiration of sus-taining Copenhagenrsquos position as marked leader within sustainable meetings and events ndash and the other way around we see it as a positive contribution to help young students to gain in-depth knowledge on how we actually work with sustainability in practicerdquo

Ulrika Maringrtensson senior communication consultant Wonderful Copenhagen

ldquo

Case Companies

20 CSQ

Update from CBS Centre for Corporate Social Responsibility

cbsCSR celebration10 years anniversaryOn Thursday November 22 2012 CBS Centre for Corporate Social Responsibility (cbsCSR) celebrated its 10 years anniversary The guest list included prominent guests from both academia and the corporate world Head of Department Dorte Salskov-Iversen President Per Holten-Andersen and cbsCSR Director Esben Rahbek Pedersen bid all a warm welcome to an afternoon of inspirational talks and celebration of the Centre

Susanne Stormer followed and initiated her presentation with a brief recap of Novo Nor-diskrsquos history and continuous development of corporate sustainability practices She em-phasized how Novo Nordisk with the help of Professor Ed Freeman has prioritized a close relationship with their stakeholders and learning with them as a means to reach a higher level of corporate sustainability An additional key take-away from Susanne Stormer was the notion of transformational partnerships She argued that corporations NGOs and other stakeholders should use each other to form transformational partner-ships instead of just transactional partner-ships She claimed that in order to address and solve the problems in todayrsquos world the issues have to be addressed at the roots ndash in cooperation with stakeholders

The program had been divided into two ses-sions Each session ended with a panel dis-cussion that gave the audience the opportu-nity to track the developmental trajectory of CSR and participate in the discussion of the future direction of CSR

In the first session which focused on the history of CSR Professor Lucia Reisch from Department of Intercultural Communica-tion and Management CBS Susanne Storm-er VP of Corporate Sustainability at Novo Nordisk and Professor Gail Whiteman from Rotterdam School of Management present-ed their perspectives on the development of CSR up until nowProfessor Lucia Reisch set the stage with an enlightening introduction to the history of sustainable development and emphasized balance on the triple bottom line as key

Professor Gail Whitemanrsquos presentation highlighted both the past and the future of CSR Her main topic was how to deal with planetary boundaries She drew attention to inherent implications of teaching sustaina-bility and CSR at a business school and ar-gued that in order for students and business executives to understand the implications of planetary boundaries and their importance classes should be taught in nature

In the second session Annette Stube Head of Group Sustainability in AP Moller ndash Maersk Simon Pickard Director General at ABIS and Professor Andreas Rasche from cbsCSR presented their views on the future of CSR

Updates from partner organizations at CBS

21CSQ

The topics in the second panel debate evolved around some of the same issues as in the first panel debate The audience was very interested in the educational aspect of CSR and sustainability and a discussion fol-lowed concerning the issues of lsquopreaching to the convertedrsquo Research shows that 75 of CSR courses are not mandatory 1 thus those students and executives who have a natural interest in CSR and sustainability enroll for these courses The speakers agreed that this posed a challenge for the future and that business schools might have to re-invent themselves in this regard They stressed that it is crucial that CSR and sustainability courses become mandatory Also the prac-titioners advocated in-company learning They set forth the argument that it may be a long time before current students will have sufficient impact on the corporate sector but also because the corporate sector and the ac-ademic world can learn from one another

Sum-up of key perspectives for the future

So how has lsquothe business of business really changedrsquo and in what direction From the afternoonrsquos discussions there were two recur-ring topics Susanne Stormer briefly touched upon it when she talked about transforma-tional partnerships Annette Stube and AP

Annette Stube set forth the argument that ldquothe business of business has really changedrdquo She gave an example of how AP Moller ndash Maersk should use their position in the shipping industry to facilitate substantial changes Simon Pickard supported her argu

ment stating that it is not possible for single corporations to make a difference but that clusters of corporations have to collaborate to push changes If corporations do not join forces they risk only making incremental changes Simon Pickard further argued paraphrasing Andrew Pettigrewrsquos argument that in the course of time there has been a conceptual change in the argument for CSR He pointed to the fact that it started out as a moral or philanthropic enterprise and is now perceived as a governance case Simon Pickard pointed to the fact that the future of business is to create shared value ie creat-ing economic value that also creates value for society at large Building on these re-marks Andreas Rasche discussed the future of standards and codes in the field of CSR Emphasizing a variety of case examples he argued that while standards have proliferated in recent years eg certification schemes in the global coffee and apparel industries there is a need to more actively manage the co-ex-istence of these initiatives in order to avoid overlap Rasche also highlighted the pivotal role of consumers who need to acknowledge standards and labels as market signals and factor social and environmental concerns into purchasing decisions

Moller ndash Maersk has it as an integrated and crucial part of their CSR policies and Simon Pickard highlighted how instrumental the-ories are no longer enough The concept of shared value is inescapable and it is what the lsquobusiness of businessrsquo in the early 21st centu-ry is really about

A second topic which also attracted a lot of attention was the importance of continuous education of both lsquothe convertedrsquo but also of opponents of CSR and people who are not aware of the importance of CSR and sustain-ability In-company learning was depicted as a crucial part of the development of CSR and sustainability however a physical change in the teaching settings is also required to meet the approaching environmental challenges

Centre Director Esben Rahbek Pedersen concluded the conference and the winners of the prize of 25000 DKK to participate in the IBECC case competition in San Diego in May 2013 were announced and the celebra-tion of cbsCSR ended with a reception

Thank you to all the speakers moderators and guests for an inspirational afternoon

By Elise Lind Jacobsen and Line Pedini Rasmussen cbsCSR

1Rasche A Gilbert DU and Schedel I (2013) Cross-Disciplinary Ethics Education in MBA Programs Rhetoric or Reality Academy of Management Learning and Education (forthcoming)

Three of the keynote speakers (from left) Professor Gail Whiteman from Rotterdam School of Management VP of Corporate Sustainability at Novo Nordisk Susanne Stormer and Sustaina-bility Professor at CBS Lucia Reisch

Simon Pickard Director General at ABIS

22 CSQ

UPDATE FROM

CBS GOES GREENThe Green Associate Program

2012 was an exciting year for CBS Goes Green with many great achievements One of the new initiatives that was launched in 2012 was the Green Associate Program Here CBS students were able to volunteer in a program to support sustainable behavior among students and staff at CBS More precisely 25 CBS stu-dents put in 30 hours of voluntary work to help with the planning and execution of Green Week - a week consisting of a lineup of successful companies shar-ing their sustainable initiatives and thoughts The overwhelming interest in sustainability and sustain-able business among the students has made it evi-dent that the Green Associate Program should con-tinue in 2013 We at CBS Goes Green look forward to this as well as all of the other initiatives we will be conducting in 2013

The following is an extract of an article that three of the associates wrote themselves This extract shows the associatesrsquo own experience working with CBS Goes Green

What does it mean to be an

associate with CBS Goes Green

In Week 39 CBS turned into a plethora of green initia-tives and events in order to make CBS reach its sustaina-bility goals for 2020 Both students and employees at CBS were asked to become a Green Ambassador to help CBS be smarter greener and better

But many of you may wonder how it is to be one of the people behind the scene As associates we have been help-ing out before and during Green Week in order to establish an event that would reach all corners of CBS This has re-quired both time and effort in order to make things work out but in the end there are also a lot of gains from being an associate

Firstly as an associate you get to expand your network You get to work with people from different studies countries and ages and you also get to talk to many different people while promoting

A bonus about being an associate is also that you get an official certificate which can be attached to your resume This shows that you have put an effort into making Green Week happen

Furthermore by being an associate you feel like you have a larger impact on making CBS a greener place Instead of being an ambassador and only doing the things you can do you get to be the person who raises awareness about sustainability You may influence people to make the right choices and it makes you feel good

Lastly it also gives you a feeling of responsibility because you work under an official part of CBS CBS Goes Green ndash a unit with a clear agenda and a clear vision

By Michael Nguyen Christian Charity and Christian-Philip Lundahl

Updates from partner organizations at CBS

23CSQ

International conference on sustainable biofuels presents latest research

By Barbara Louise Bech Department of Business and Politics CBS

EU Renewable Energy Directive

In 2009 the EU RED set a mandatory target for member states to use a minimum of 10 renewable energy sources in the transport sector by 2020 of which biofuels is expected to be the main contributor This is part of a policy to cut greenhouse gas emissions promote the green technology sector develop rural areas and reduce dependency on fos-sil fuels Due to increasing controversies claiming lack of sustainability in first generation biofuels based on food crops recently the EU pro-posed an amendment to the Directive limiting the share of first gener-ation biofuels to 5 of the targeted 10

The debate quickly zoomed in on the sustainability criteria as outlined in the EU RED drawing attention to the lack of social safeguards The general consensus is that the concept of sustainability is too narrow-ly defined Several case studies (Mozambique Brazil and Indonesia) show that basic labor and human rights of local populations are not protected by RED and the directive is more viewed as an environmen-tal safeguard This discussion raised questions in regard to the effects of RED globally (eg sustainable production in developing countries) and in this context whether EU legislation can have a lsquotrickle downrsquo effect on national standards of nation-states outside the EU In this re-gards one could ask if enforcement at the local level falls under the re-sponsibility of the EU but since first generation biofuels are produced outside the EU it is an important issue for European consumers ndash al-though interest is currently mainly driven by NGOs

On November 19-20 2012 the Copenhagen Biofuels Research Network (COBREN) held an international conference on sustainable biofuels inviting 30 research-ers from around the world to present and discuss their latest research During the two day conference focus was the sustainability criteria of the EU Renewable Energy Directive (RED) voluntary certification schemes and their impacts on sustainability and social safeguards in producer (developing) countries in particular and governance complexity of the biofuel system which has grown considerably over the past decade

Rough guide to biofuelsThere are two types of biofuels biodiesel and ethanol First generation biofuels (1G) are based on food crops and feed stocks such as palm oil soybean and rapeseed used for the production of biodiesel and sugarcane and corn for ethanol The produc-tion of biofuels increased heavily in the 2000s questioning the sustainability of 1G A number of issues have been claimed as key impediments to sustainable biofuel production such as deforestation competition with food production and increasing food prices loss of biodiversity lack of social and environmental safeguards and indirect land use change (ILUC) These contro-versies have led to a call for the promotion of second generation biofuels (2G) which are typically based on agricultural waste (eg straw) plants and forestry residues (also called lignocellu-losic biomassmaterials) However the immediate problem is that there is yet to be developed a market for 2G as they are more costly to produce (require longer and more complex production process)

CBS Sustainability Platform co-director and organizer of the COBREN conference Stefano Ponte doing a presentation

Event

24 CSQ

Voluntary certification schemes

In relation to how standards and certifications can impact sustainable biofuel production discussions pointed to the important difference be-tween mandatory and voluntary schemes As the controversy of sus-tainable biofuels in particular first generation is rolling out special attention has been given to biofuel production competing with food production ILUC value of emissions reduction and environmental and social issues This have off sprung a proliferation in private certifi-cations and during the conference it was discussed intensely whether these schemes have an actual effect on sustainability Depending on the point of view certifications can fill out the holes in legislation and act as a tool to force companies to comply with sustainability crite-ria However the development processes of new certifications may not be inclusive of relevant stakeholders (eg representatives of local populations) Additionally the nature and governance of the networks steering these processes is not always transparent and may favor one interest over the other This intense discussion led to the question of the purpose of certifications Can we use them for anything other than as a CSR PR tool as long as consumer awareness is as low as it is and how do the different regional drivers influence sustainability as a concept The answers to these questions are not easily found and it will be interesting to observe the future development and partnership between public and private sector

Governing the biofuel industry

Within the past decade biodiesel production has risen from below 30PJ in 2000 to 572PJ in 2009 globally and fuel ethanol production has increased from 340PJ to 1540 PJ respectively As the market expands more actors eg governments international organizations civil soci-ety and NGOs private sector networks and companies and profes-sions (biofuel experts and consultants) get involved and play different roles to promote their own agendas Being an emerging industry the structure of the biofuel system shows hybrid forms of governance with many actors As controversies of biofuelsrsquo sustainability develop more issues are added to the agenda giving life to more actors and interests in the governance structure Research shows a shift in power balance as private companies and NGOs increasingly push the agenda The dis-cussions during the conference centered on the complexity of sustain-ability issues calling for mixed governance responses and governance instruments such as standards and certifications which in return need to be followed up with endorsement instruments Given these com-plexities the question is whether the biofuel industry is too difficult to govern as long as the governing systems (for instance the EU) cannot accommodate expectations of all stakeholders

Indirect land use change (ILUC)ILUC is the unintended consequence in terms of more carbon emis-sions due to land use change around the world induced by the expan-sion of croplands for biofuel production When land that could be used to grow food and feed crops is used to grow energy crops this leads to existing agricultural production moving to another area or country where land is converted When this land is cleared and converted to cropland and because natural lands (rainforests and grasslands) store and sequester carbon in their soil and biomass a net increase in GHG emissions can occur Due to this change in the carbon stock of the soil and the biomass ILUC has consequences in the GHG balance of a biofuel Adding to this complexity models for ILUC calculations are not mainstreamed and thus difficult to assess internationally

25CSQ

Mellemfolkeligt Samvirke (MS) or Action Aid Denmark is a Danish NGO founded back in 1944 The

organizations key objective is to fight poverty by ensuring greater political influence for the worldrsquos poor and margin-alized at the local national and international levels MS works to bring about long-term development in the worldrsquos poorest countries focusing especially on education co-

operation and the ability to organize MS mainly works in Africa Read more about the organizationrsquos work

at wwwactionaiddk

Action Aid

A private sector view on the future of sustainable biofuels

By Barbara Louise Bech Department of Business and Politics CBS

nergy security continues to be an eminent concern in a world of finite resources For a long time biofuels have been viewed as

one of the key solutions to replace our dependency on fossil fuels and battle climate change but in recent years controversy has contested the sustainability of first generation biofuels based on food stock Issues such as lack of environmental safeguards causing loss of biodiversi-ty and deforestation and lack of social safeguards ensuring land and labor rights in producer (developing) countries have been claimed as key impediments to sustainable biofuel production Critical observers also argue that the emission savings of biofuel use in compar-ison to fossil fuels can become much smaller (or even disappear) when indirect land use change (ILUC) is included in the calculations Furthermore bi-omass production from food stock is argued to compete with food production and in-creasing food prices

The Danish NGO Action Aid has been engaged in biofuels since 2008 and is par-ticularly involved in protecting womenrsquos rights and preventing land grabs in de-veloping countries ldquoWe are very concerned about land use when it comes to first genera-tion biofuels This relates both to the people who are dependent on the land and to food security We rarely see good combinations where the local populationrsquos needs are taken into consideration The energy crops grown on the local farmerrsquos land donrsquot benefit him and local consumption is essential for developmentrdquo explains Kirsten Hjoslashrnholm Soslashrensen political advisor Action Aid Denmark

It is therefore believed by many that second generation biofuels is the only way forward to avoid competition with food and avert ILUC Next generation biofuels is based on lignocellulosic biomass such as agricultural and household waste and forest residues The Biorefining Alliance represents a cluster of leading Danish companies within the renewable energy sector with an ambition to promote second gener-

ation biofuels and make Denmark a world leader of technology and bi-ofuel productionldquoDenmark has very strong competencies in green tech and as a society we have put a lot of money in its development This is go-ing to be a huge deal globally so we are asking whether Denmark wants to be a customer or a producer What we are working for is of course that we become a lead exporter of technology but also that Denmark produces second generation biofuels commercially Even though we are a small country we cannot settle on selling know-how Denmark also needs to have some industrial productionrdquo says Anne Grete Holmsgaard di-

rector of Biorefining Alliance In her view Denmark needs to keep a firm grip on developing innovation or it will slowly but

steadily move out of the country In this regard she views sustainability criteria for biofuels as an in-

novator and not a hindrance

The Sustainable Biofuels Network (SBN) is another cluster of private companies trying to facilitate the transition from fossil fuels to biofuels in the transport sector For the aviation industry biofuels are considered

to be the only alternative to fossil fuels and the industry firmly believes that biofuels will

survive according to Robert Arendal chairman of SBN ldquoThe aviation industry has set very clear

guidelines for the use of biofuels We are not going to use food based biofuels and we will minimize the use of fresh

water By 2050 our target is to use 50 biofuels in the global aviation so we really need to move fastrdquo he explains adding that living up to sustainability criteria includes being careful about where biofuels are produced ldquoBut it should be produced all over the world and close to the 1600 airports worldwide that account for 95 of all aviationrdquo

he technology for second generation biofuels is already here but the problem is that production costs are too high and there is no market As long as prices are not competitive with conventional fuels it will be difficult to move forward ldquoOne might ask why there is no market The customers are certainly there so if I was in the business of producing

E

As part of the COBREN international conference on sustainable biofuels private sector civil society and academia were invited to give their views on sustainable biofuels at a roundtable discussion at an open public seminar held at DIIS November 19 2012

Event

26 CSQ

SBN is a ldquobreeding groundrdquo and ldquoknowledge centerrdquo for the biofu-els industry where synergies are created between all parties within

the biofuels sector SBN focuses in promoting supporting and enabling the commercial development and use of clean and sustainable biofuels for Heavy Road Transportation Shipping and Aviation Emphasis is put on the importance of global standards for biofuels with local as well as international institutions and decision makers to encourage con-

structive guidelines and rules for the development of biofuels SBN adheres to EUrsquos sustainability criteria SBN is a non-profit asso-

ciation established in 2008 Visit their website for more info at wwwsustainablebiofulsdk

Sustainable Biofuels Network(SBN)

The Biorefining Alliance (BA) was founded December 2011 by DONG Energy Novozymes Haldor Topsoslashe and the

Danish Agriculture and Food Council and is a three-year project to politically promote Denmarkrsquos position in the entire value chain from residues to bio-based products The Alliance has set forth a number of recommendations to achieve a sustainable Danish bio-economy Among other these include (i) that all organic

waste be considered a resource (high-value recycling and storable energy) (ii) reducing the cost of manufacturing 2G

bioethanol and (iii) contemplating the establishment of a national center for sustainable materials

Biorefining Alliance

second generation biofuels I would get started right awayrdquo says Robert Arendal The Biorefining Alliance is working on lowering the costs and recommends a stronger regulatory framework with binding targets as it has been done for the wind industry ldquoThere already is a market for first generation biodiesel which is the least sustainable biofuel We need to make a market for second generation biofuels and we know that binding targets work I donrsquot think it is possible to create a market for the lsquogreen consumerrsquo as you have one for organic food products but I believe that a niche market for HRT (Heavy Road Transport red) such as public bus transport could be a supplementrdquo concludes Anne Grete Holmsgaard

How the future for sustainable biofuels will shape depends on political will to create a market for second generation and the ability of private sector to innovate and bring prices down Oil production is claimed by some to already have peaked and exploring new geographical areas for extraction could be as costly as kick-starting the market for second generation biofuels although much less sustainable As the American ecologist and environmentalist Bill McKibben wrote in his book ldquoDeep Economyrdquo back in 2007

Even before we run out of oil wersquore running out of planetrdquoldquo Bill McKibben

27CSQ

The Transparency-Sustainability NexusA workshop on the practices meanings and tensions of organiza-

tional transparency

n December 5 2012 the Department of Intercultural Communication and Management (ICM) hosted an in-

ternational workshop supported by CBS Sustainability Plat-form and ICM The workshop was organized by Oana Brindusa Albu Mikkel Flyverbom and Hans Krause Hansen respectively PhD Fellow and Associate Professors at ICM The idea of the workshop was spurred by the observation that while ideals of transparency like lsquoopennessrsquo lsquodisclosurersquo and lsquoreportingrsquo are pro-liferating these years the actual construction of transparency within and across organizations is poorly understood Most re-search on transparency is highly normative if not celebratory just as popular discourse about transparency not least in the areas of sustainability and corporate social responsibility is obsessed with ideals of accountability performance and effi-ciency and pervaded by an optimism currently pushed to its extreme with the explosion of new media technologies

But the truth is that we generally know very little about the implications of ideals of transparency when translated into practice in specific issue areas and organizational contexts Importantly each of the contributions to this workshop clear-ly suggested that the contemporary politics of transparency is much more complex contradictory and dynamic than tradi-tionally recognized All papers examined various aspects of the contemporary obsession with transparency and specifically the increasing use of disclosure techniques within and around or-ganizations the rationales or myths underpinning these meas-ures their intended and unintended consequences including implications for identity-making management and govern-ance practices

Clare Birchall initiated the workshop with a paper titled lsquoThe Cultural Politics of Disclosurersquo highlighting how transparency has been positioned as a superior form of disclosure in popular management and organizational literatures and in policy docu-ments In her account the growing preference for transparency is a consequence not only of the positive qualities seen to be intrinsic to transparency itself but also a response to the per-ceived negative characteristics of other forms of disclosure such as gossip scandal and rumor Lars Thoslashger Christensen (with co-author Joep Cornelissen) then analyzed transparency as one of the foundational myths of modernity myths understood here as descriptions of the world in a narrative form which seeks to produce meaning and direction for a community and its members Such lsquoMyths of Transparencyrsquo sustain numerous organizational practices ndash including openness information provision and auditing But as argued by the authors there are conflicting evidence regarding the capacity of such practices to create insights and understandingThat aspirations and techniques of transparency can have seri-ous repercussions was demonstrated by Peter Skaeligrbaeligk (with co-author Mark Christensen) in the paper entitled lsquoAuditing and the purification of blamersquo which analyzed how auditing auditing practices and institutional entities including the po-liticized environments surrounding them are mobilized and participate in blame games and allocation In his paper titled lsquoQuantification transparency and the costs of reassurancersquo Henrik Vollmer analyzed various dimensions of the role of nu-merical records and signaling in generating transparency trust and mistrust

By Hans Krause Hansen Department of Intercultural Communication amp Management

Event

O

28 CSQ

Some of these aspects were also touched upon in the paper lsquoDisrupted Disclosures The Politics of Visibility and Surveil-lance in the Extractive Industriesrsquo by Hans Krause Hansen (with co-author Julie Uldam) which explored the wider field of visibility and surveillance in which contemporary transpar-ency policies are unfolding with examples from the extractive industries Oana Brindusa Albu in her lsquoTransparency and the organizational self everyday politics of identification in Cooperativesrsquo examined the paradoxical effects of values and practices of transparency on collective identity formation pro-cesses drawing upon her ongoing multi-sited fieldwork in co-operatives Under the heading of lsquoThe Improbability of Secrecyrsquo Mark Fenster analyzed the intersections of secrecy and trans-parency with examples from the US government and its efforts to control information which according to the author does not necessarily stop the flow of information Finally Mikkel Fly-verbom and Christina Garsten examined lsquoThe sway of (big) data ndash calculations and advocacy in the name of transparencyrsquo focusing on the operations of data-based forms of corporate lsquotransparency evangelismrsquo and advocacy through revelation including examples from Center for Global Development and Google

In all the workshop was highly successful in investigating not only the historical and mythical foundations of transparency but also the different practices and forms of transparency that currently shape organizations and a wide variety of issue areas It also provided a reminder of the usefulness of investigating a concept of transparency in relationship to a host of other con-cepts such as secrecy myth gossip blame surveillance visi-bility identity information and knowledge The organizers of the workshop wish to thank all workshop participants for their valuable contributions and the CBS Sustainability Platform and ICM for their support

Hans Krause Hansen

Mikkel Flyverbom

Oana Brindusa Albu

ASSOCIATE PROFESSORPHD (ICM)

ASSOCIATE PROFESSORPHD (ICM)

PHD FELLOW (ICM)

29CSQ

Louise Lyngfeldt Gorm Hansen is a PhD Fellow at the Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) She has a back-ground in Chinese Studies from Copenhagen University (BA) the Asian Studies Program at CBS (BSc) and in International Business Stud-ies and Sustainable Business (MSc) from CBS

The aim of her cross-disciplinary PhD project is to explore how the Chinese hydropower sector works with environmental sustainability and more particularly how the concept is understood and performed in the planning phase of a major dam project in the southwestern Chinese province of Yunnan

The aim of the project is to gain a deeper under-standing of how Chinese firms in the renewable energy sector such as hydropower companies understand and value sustainability as well as how such firms tackle the increasing pressure to deliver socially and environmentally balanced solutions to one of Chinarsquos major challenges lowering CO2 emissions in a time with rapidly rising water and energy demands Theoretically the project draws on - and aims to contribute to ndash a combination of Asian Studies and Science and Technology Studies

PHD FocusLouise Lyngfeldt Gorm Hansen

HYDROPOWER

SUSTAINABILITY

30 CSQ

HYDROPOWER

SUSTAINABILITY IN

CHINAy PhD project combines two of my main research interests China and

environmental sustainability I have studied China for a number of years mainly because of an interest in how the Chinese view sus-tainable development So since finishing my masters I have known that I wanted to study how China plan to tackle a sustainable tran-sition in the years to come I saw my chance when CBS announced PhD scholarships in

DanishEuropean-Chinese social science research in collaboration with the newly es-tablished Sino-Danish Center for Education and Research (SDC) and started my PhD in October 2011My PhD project focuses on the Chinese energy sector more specifically the rapidly growing part of the energy sector engaged in renewable energy Here I examine Chinarsquos second largest source of electricity gene-

eration hydropower In recent years China has become increasingly focused on reduc-ing CO2 emissions While some countries such as the US and Australia are decommis-sioning hydropower dams China is looking to large-scale hydropower construction as one of the solutions to a future clean energy supply This means that hydropower devel-opment plays a central role in Chinarsquos sus-tainable transition

However utilization of hydropower is con-troversial not least in China and has met increasing resistance in recent years particu-larly from Chinese and international NGOs the media as well as the scientific commu-nity Critique is most often focused on how or if social and environmental sustainability can be ensured in such large scale projects as the social and environmental impacts of large scale hydropower development are very complex and difficult to measure More gen-erally the viability of relying on hydropow-er as a future source of energy is also being questioned One of the major concerns here is the overarching issue of climate change ie glaciers shrinking and yearly water runoff decreasing This means less stable water flow for hydropower and less water for other pur-poses such as agriculture water supply for down-stream countries etc

By Louise Lyngfeldt Gorm Hansen Asia Research Centre Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) ndash sinodanishcenterdk

M

Picture from SinoHydro promotion material 2011

Research

31CSQ

In contrast to for example the wind power sector in China in which many foreign com-panies have invested the hydropower sector is dominated by a few large state-owned en-terprises Our knowledge of Chinese state-owned enterprises is still limited and there-fore my PhD project is also part of a larger research project at the Asia Research Centre with focus on Chinese state-owned enter-prises and the reform of the public sector in China

In combining these interests my PhD exam-ines how Chinese state-owned enterprises in the hydropower sector tackle the demand to expand hydropower development to help reduce Chinarsquos CO2 emissions while be-ing under increasing pressure to deliver on sustainability principles in the planning and execution of large scale hydropower pro-jects The pressure comes mainly from NGO organizations the media and the scientific community both at home and from abroad I am conducting a case study focused on a specific river in south-western China which has ndash until now ndash not been fully developed for hydropower and the plans for addition-al hydropower dams on the river are still undergoing assessments The project has continually stalled due to disagreements between Chinese government officials at all levels NGOs the media the increasingly deregulated but still state-owned Chinese hydropower companies and the scientif-ic community However the project has very recently been reopened and so will go through another round of assessments in the near future The case is an excellent example of the complexity of hydropower develop-ment decisions in China but it also highlights some of the social and environmental conse-quences of the global push to decrease CO2 emissions

China plays and will continue to play an increasingly important role globally in the years to come However the country also fac-es enormous challenges - not least regarding the environment These challenges also affect economies in Western Europe - for better or worse My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective so

that we here in Europe and in Denmark can more knowledgably and actively engage with China to help solve some of these difficult challenges that eventually affect us all In do-ing this I contribute to gain a better under-standing of the Chinese perspective on envi-ronmental sustainability that can be of use to companies wanting to engage in the Chinese renewable energy sector

My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective rdquoldquo

Picture of the case-river taken by the author in 2012

32 CSQ

FROM BLUEPRINT TO PRACTICE

ENERGY EFFICIENT CONSTRUCTION

By postdoc researcher Satu Reijonen Department of Organization CBS

In the EU almost one third of CO2 emis-sions are attributed to energy used in the construction and use of buildings (FIEC

2007) It is therefore not surprising that the construction sector has recently been subjected to a substantial amount of policy measures to combat its negative effects on climate change In Denmark the state has posed new thresholds for the energy efficien-cy of new buildings including a plan for con-tinuous improvement in the area This far the industry has responded well to these stricter performance requirements In the future re-quirements will rise to levels that are not that easily achieved in the coming years build-ings will have to use 25 less energy than in year 2008 How can these ambitious goals become business as usual

One of the most discussed ways besides add-on technologies such as windmills and solar panels to enhance the energy efficiency of a building is through an energy efficient phys-ical design In practice this means reduction of energy used for heating cooling down and lighting of the building through an optimal orientation and dimensioning of the build-ing

Integrated energy design contrary to add-on technologies can be achieved on a rath-er modest additional budget This should be good news for the sector that today is eco-nomically pressed Indeed today many low energy building projects claim to use the in-tegrated energy design method (IED) when seeking to meet the most ambitious energy related goals In this commentary I wish to discuss some challenges related to the imple-mentation of this design tool

The integrated energy design method sug-gests that one of the main problems in not achieving energy efficiency is that energy related concerns become integrated into the design process too late The method consists of two elements the first of which addresses the need to bring in energy related knowl-edge throughout the design process It sug-gests that design teams ought to be multidis-ciplinary and that architects engineers and experts should work together either co-lo-cated or in a series of workshops Further-more it suggests systematizing energy quali-ty follow-ups into the design process This is all very relevant and inspiring

Oddly enough a closer look on the actual design practices reveals that few seem to ac-tually follow the method of integrated energy design to the point This poses an interest-ing question about the challenges related to the use of such management technologies as vehicles for increased energy efficiency in construction Maybe it is about time practi-tioners and researchers ask themselves what are the boundaries of and challenges related to the use of these tools ndash and what else is required for organizing for more energy effi-cient building design processes

A revolution of relations

Integrated energy design points to the need to bring energy related expertise into the de-sign process at an earlier point In order to achieve this cooperative practices between different professional groups are advocated for Historically energy experts have most-ly been used to respond to rather advanced architectural plans Shared workshops and co-localization suggest a change in these business as usual relations But are they pos-sible and what type of changes do they ac-tually imply in order to function as wished

Research

33CSQ

Satu Reijonen is postdoctoral scholar at the Department of Organization at CBS In her on-going research project she investigates how architects and energy engineers two different profes-sions cooperate and coordinate their work regarding energy related ques-tions in construction design The ways in which relations between and roles of these professions become consti-tuted through socio-material arrange-ments are a central topics in her work Besides studies of work Satu has con-ducted research on environmentally friendly products and markets

ABOUT SATU RAIJONEN

The initiation of this type of new working forms is certainly beneficial for energy effi-cient design However for several reasons they are more difficult to make work than one would assume While it may sound rea-sonable it is after all a tall order Integrating energy related practices into an environment where different visions professions and in-terests meet and the divide between what one profession does is clearly and historically demarcated is demanding While architects need to make room for the intervention of energy experts into the creative work energy experts have to become capable of working creatively and relate to and follow the visual and aesthetic cues from architects In order to work these kind of changes in the profes-sional roles and relations have to resonate with the skills and visions of individual work-ers not only management level design strat-egies It is not surprising that organizational change scholars remind us of the possibility of loose coupling from the strategies placed at the management level (March 1981) What integrated energy design suggests is a kind of a revolution in the ways in which both the architects and the energy engineers envision their role and space of mobility

Linear tools in an unlinear design process

Integrated energy design suggests that the energy performance of the emerging build-ing design be followed up at certain points during the design process The method de-picts a rather mechanistic and linear under-standing of a design process consisting of phases within which iteration may occur While energy related issues may be dis-cussed as quality goals during these phases the method places a lot of emphasis on the check ups performed in the transition from one phase to another Design processes how-ever can also be characterized in a different manner unlinear exploratory and whirl wind type of practices where clear cut phases hardly exist (Akrich 1992 Van de Ven et al 1999) This also applies to the architectural design processes where the object of the de-sign is emergent (Yaneva 2009) This entails that the product the building may change in unexpected ways during any day of the de-sign process If this alternative description of the design processes is viable delegating energy related issues to some predetermined check up episodes may strike a false accord and indeed be contradictory with the aim of enhancing coordination and cooperation between professional groups What happens in between the predetermined checkups may very well be where the energy efficiency of the building becomes configured and where the intervention from the energy experts

would come most needed Perhaps this is why the best performing projects do not blindly follow the steps of the IED method Check ups however and no doubt play a role in verifying and making visible the energy performance for partners outside the design team

Integrated energy design as many other sus-tainability standards and guidelines make visible systematize and legitimize the ex-istence of environmental management and sustainability issues in organizations and work processes In this such way tools create awareness and legitimacy for environmental and sustainability issues The integrated en-ergy design method also suggests a possible way of thinking about what type of design practice might help us to achieve the stricter energy requirements of the future It howev-er falls short in becoming the change agent it suggests This is hardly surprising as a meth-od or a standard of any kind should only be seen as a possibility or as an opening for an inquiry of what the practice could be about Reconfiguring a well established practice is hard work and it would be foolish to trust that a design method would achieve it by itself What the method does is to alert us of the more profound changes in the pro-fessional roles and relations that is needed in order to enable the change However the method due to its rather mechanical under-standing of the design process may come to work against its own ambition of integrating energy issues into the design work In its quest for integration the method defines at which points in time the architectural and the engineering project has to be checked for its energy performance This approach may lead to bringing in energy related concerns in some artificially created points in a design process which may additionally compart-mentalize energy related issues from where the design really happens

Integrated energy design as many other sustainability standards and guidelines make visible systematize and legitimize the existence of environmental management and sustainability issues in organizations and work pro-cessesrdquo

ldquoLiteratureAkrich M (1992) The De-Scription of Technical Objects in Shaping Technology Building Society Studies in Soci-otechnical Change eds WE Bijker and J Law The MIT Press Cambridge Massachusetts pp 205-224

FIEC 2007 The impacts of buildings on climate change httpwwwbuildingsplatformeuepbd_publicationdocFIEC_Memo_p2919pdf on 1222008

March JG (1981) Footnotes to Organizational Change Administrative Science Quarterly vol 26 No 4 pp 563-577

Van de Ven A D Polley R Garud and SVenkataraman (1999) The innovation Journey Oxford Oxford Univer-sity Press

Yaneva A (2009) The making of a building A pragmatist approach to Architecture Bern Peter Lang

More about integrated energy design(IED)

httpwwwintendesigncomosloIntendnsfAttachmentsGuideline_Version_2pdf$FILEGuideline_Version_2pdf

34 CSQ

The climate challenge in

shipping

ldquoGlobal shipping faces two major challenges both of which are caused by its reliance on fossil fuelsrdquo

By Reneacute Taudal Poulsen Department of Innovation amp Organizational Economics

RENEacute TAUDAL POULSEN

ASSOCIATE PROFESSOR DEPARTMENT

OF INNOVATION AND ORGANIZATIONAL

ECONOMICS COPENHAGEN BUSINESS

SCHOOL

orecasts show that the shipping indus-tryrsquos CO2 emissions will most likely continue to rise in the next two to

three decades as demand for world sea-borne trade will expand At present global shipping accounts for approximately 33 per cent of global CO2 emissions but this share will most probably increase in the coming years if many onshore industries succeed in their aims of reducing emission levels

At the same time rapidly rising fuel costs put heavy strain on shipping company budg-ets Historically and until very recently fuel costs were only a minor concern for ship-ping companies but now they often exceed 60 per cent of variable operational costs Fuel savings made through energy efficiency improvements thus represent a win-win sce-nario for the shipping industry and for so-ciety at large They simply make good sense for everyone

Despite the strong incentives for fuel sav-ings numerous studies have demonstrated that shipping fails to implement cost-ef-fective measures to reduce fuel consump-tion Fuel-saving technologies are readily available in the market and in many cases pay-back periods are very short (less than a year) Changes in operational habits which require few if any investments also hold a significant potential for fuel savings

Global shipping thus holds several classic examples of energy-efficiency gaps Gaps occur wherever cost-effective measures to improve energy efficiency fail to materialize The causes for energy efficiency gaps have been a favourite research topic within the field of energy economics for decades and economists sociologists and political scien-tists have been able to identify several means to bridge the gaps However within the mar-itime domain energy efficiency gaps and the climate challenge remain neglected issues Legal barriers

Shipsrsquo fuel consumption rises steeply with speed Hence slow-steaming or just minor speed reductions can lower consumption and emission levels significantly Since oil prices started to rise rapidly a few years ago shipping companies have indeed resorted to various slow-steaming practices and com-panies which succeed in this regard have been able to gain competitive advantages In other words actors in the industry are trying to bridge the energy efficiency gap However and in spite of the strong price signals from the rising fuel prices a potential for fuel sav-ing through slow steaming still remains

FNew CBS research project

A new three year research project at CBS under-

taken by Reneacute Taudal Poulsen for the Department

of Innovation and Organizational Economics will

examine the climate issues bringing insights from

energy economics and innovation management

into the field of shipping economics The project

which is financed by The Danish Maritime Fund

runs from 2012 to 2015 The project asks why en-

ergy efficiency gaps continue to occur in shipping

and how shipping companies and the maritime

industry at large can use innovative business

models and process innovation to turn the climate

challenge and the rising fuel costs into a business

opportunity Energy efficiency gaps occur both

in daily operations and when investments in new

vessels are made This article will briefly present

two examples of energy efficiency gaps from

the operational level and some of the preliminary

findings of the project

References

Jaffe AB and RN Stavins 1994 lsquoThe energy efficiency gap What does it meanrsquo Energy Policy 22 (110) 804-10IMO 2009 Second IMO GHG Study 2009 London International Maritime OrganizationMoriarty P amp D Honnery 2012 lsquoEnergy efficiency Lessons from transportrsquo Energy Policy 46 1ndash3Poulsen Reneacute Taudal 2012 lsquoEmissions and energy efficiency - the twin challenges for shippingrsquo Mercator Maritime Innovation Research and Education MarchJune 447-454

Reneacute Taudal Poulsen is Associate Professor at the Department of Innovation and Organizational Eco-nomics at CBS He is also affliated with the Centre for Shipping Economics and Innovation at CBS Reneacute Taudal Poulsen holds a PhD degree in marine environmental history from the University of Southern Denmark and he has worked within the field of maritime business studies for the last seven years He has published in such journals as Fisheries Research Business History and Scandinavian Economic History Review

His current research intersts concern the environmen-tal challenges faced by the global shipping industry and business model innovation in the maritime domain

Research

35CSQ

It is clear that shipping companies cannot fully bridge the energy efficiency gap alone In fact factors beyond the control of in-dividual shipping companies and various structural or legal barriers prevent shipping from fully realizing the slow steaming po-tential

Port congestion remains a world-wide prob-lem and causes ships to spend remarkably long periods inactive Despite the financial crisis and the large drop in shipping freight markets after 2008 many loaded vessels sit at anchor outside ports waiting for berths In some cases they wait for a few hours In other cases for days weeks or even months Instead of waiting the ships could have re-duced speeds and saved fuel And the de-livery and the loading of the cargo in port would not have been delayed in any way However in many cases shipping companies or ship operators cannot reduce speed in spite of port congestion

Educational barriers

Energy efficiency gaps in shipping are also evident when the fuel consumption levels of sister ships are compared Even though the vessels are identical and operate in the same waters studies have shown that their fuel consumption may differ by several Decisions made by the crews onboard and by managers in the onshore organizations clearly influence the level of fuel consump-tion For instance if a captain selects only very small course deviation margins when coding the autopilot of the ship the shiprsquos rudder will move frequently to keep the ship on the exact course all the time This will slow down the ship and cause higher fuel consumption than if the captain had allowed for slightly wider margins and the wider margins would not have any effect on the safety of the ship Decisions made by the commercial depart-ments eg on how to crew the vessels how to monitor vessel fuel consumption or which new equipment to install onboard may also

have a large impact on fuel efficiency and emission levels If shipping company man-agers can nurture a fuel saving culture this could potentially make a difference Since 2007 or 2008 shipping companies have in-deed started to facilitate such organizational changes but educational barriers remain a problemOnshore truck drivers are now offered fuel saving courses but fuel-saving is not a major part of the traditional curriculum in nautical schools or in the commercial education of shipping trainees For good reasons the nau-tical educations have focused on maritime safety but this has caused them to neglect the climate challenge in shipping and the is-sue of fuel saving In fact no single nauticaltext book on maritime fuel savings has yet been published and according to teachers and students in the nautical schools this serves as an educational barrier to ener-gy-efficiency improvements The technical level of education for commercial employees in shipping companies may also hinder im-provements in energy-efficiency Some com-

mercial shipping employees may not have sufficient training to fully see and acknowl-edge the consequences of their decisions on fuel consumption In short it seems that fuel awareness and the educational systems have responded more slowly to the climate chal-lenge than the rise in fuel prices may other-wise suggest

For shipping to bridge energy-efficiency gaps education ndash both nautical and com-mercial ones ndash clearly is an area to set in Here the potential for innovative solutions is both evident and pertinent Changing educational systems and awareness is no easy task bearing in mind the global nature of the shipping industry and international crewing of the world fleet It is clear howev-er that educational upgrading is necessary for shipping to effectively address the cli-mate challenge effectively

Charter parties between ship-operators and shippers state a specific time of arrival for the vessel and in order to avoid claims ships proceed to port accordingly regardless of berth availability Experiments with new more flexible charter parties which allow for slow steaming in case of port congestion have recently been made Shipping compa-nies have generally been enthusiastic about this flexibility but often shippers remain skeptical Lack of trust between shippers which need the loading of their cargoes as soon as possible and shipping companies may be a cause for this discrepancy Even in cases where the savings made from slow-steaming are split between shipping companies and shippers shippers have re-mained skeptical Port queuing systems may have a role to play here

Many ports including some of the major container iron ore coal and grain ports serve ships on ldquofirst-come first-servedrdquo ba-sis Ships only receive their ldquoticketrdquo in the

waiting line upon their arrival at the port Again lack of trust between the ship-oper-ators shippers and the port authorities may explain this phenomenon Moreover port authorities currently do not have incentives to change queuing practices because they cannot gain a share in the fuel savings made from slow-steaming

The problem is particularly strong in the major tramp shipping segments of tanker and dry cargo shipping where vessels act as ldquotaxis of the seardquo serving numerous shippers and rarely calling at the same ports If the fleet from a shipping company only calls at a particular port once a year and the compa-ny has very short-term relations to individ-ual shippers building trustful relationships between the parties remains a major chal-lenge Solving this problem and realizing the full potential of slow steaming will require systemic innovation in shipping and port systems and further studies are required to identify possible solutions

36 CSQ

The Wind turbine industry -

Emerging global innovation networks in Europe and China

The wind turbine industry has developed into a global network encompassing a large amount of diverse actors within innovation production and installation of wind turbines across the globe

By Stine Haakonsson and Julia Kirch Hollitsch Department of Business amp Politics CBS

market for wind energy Chinese actors have turned China as a location into another im-portant lsquohubrsquo in this network This has led to new forms of innovation collaborations between European and Chinese actors The result has been a complete re-configuration of the industry over the past decade In the International Business and Economic Geog-raphy literatures the development of global production networks in which lead-firms be-come orchestrators of dispersed production

enmark has traditionally played a key role as an lsquoinnovation hubrsquo and com-

panies in Denmark remain among the lead firms within the wind turbine industry Re-cently the industry has reorganized from being located predominantly in the Triad regions (mainly in Europe and the US) to becoming a globally dispersed industry This development can partly be explained by de-velopments in international and national politics Due to the growth of the Chinese

activities in globalized value chains is well established theoretically as well as empiri-cally In the globalization process lead firms relocate production activities to low cost lo-cations by off-shoring and through vertical disintegration and outsourcing to specialized suppliers Producers of wind turbines are no exception However until recently the mar-ket and innovation activities remained con-centrated in Europe and US

With the recent focus on global politics for a post-carbon society the market for wind tur-bines has experienced an immense growth and a high degree of market globalization New locations have developed into main markets One of these is China which since 2010 has been the largest market for wind turbines in the world (in capacity installed) The globalization process in the wind tur-bine can be explained by a combination of offshoring of production by European lead firms mainly through foreign direct invest-ment and establishment of domestic lead firms in emerging markets In 2010 there were four Chinese-owned companies among the top-10 producers of wind turbines as compared to 2003 where all firms on this list were from Europe and the US

D

Julia Kirch Hollitsch

Stine Haakonsson

Stine Haakonsson and Julia Kirch Hollitsch from Depart-

ment of Business and Politics CBS are engaged in the

Sino-Danish Center for Research and Education (SDC)

project on Wind Energy in China Both research on the

current restructuring of industries and firms at the glob-

al level (outsourcing off shoring global value chains)

In particular their research is on 1) the restructuring of

innovation and RampD activities into global innovation net-

works(GINs)2)thechangingroleofemergingmarkets

(ChinaIndiaBrazilSouthAfrica)intheseemergingGINs

and 3) technology transfer and capability building related

to renewable energy

Research

37CSQ

by adapting their products to the Chinese market and through cost-out development activities in the new locations primarily China

As a result the wind industry is today highly knowledge-intensive and internationalized Due to increased attention and investments in sustainable transition policies and car-bon-reducing technology China has over the past decade developed into a high prior-ity investment area for wind turbines Also Chinese companies are upgrading technol-ogy and innovation from the global firms through integration into GINs Moreover the production and innovation networks for wind energy become highly complex and consist of many different suppliers of com-ponents (blades gear boxes control systems bearings) resulting in a variety of network linkages among suppliers of different com-ponents and the wind turbine producers

From our empirical data including more than 40 in-depth interviews collected in 2011 and 2012 in the wind turbines indus-tries in China and Denmark we have identi-fied some very interesting patterns We have identified very different characteristics of the GINs established by the Chinese wind tur-bine industry and the European wind tur

Emerging Global Innovation Networks

Innovation processes are also moving be-yond the boundaries of individual compa-nies and national innovation systems Firms engage in cross-border innovation networks spanning different innovation systems which may be national regional or sectorial in or-der to stay competitive in the global econ-omy Chinese lead firms are entering this scene too The result is globally organized networks of interconnected and integrated functions and operations by firms and non-firm organizations engaged in the develop-ment and diffusion of innovations so-called Global Innovation Networks (GINs) Lead firms internationalize innovation through strategies of exploitation global generation of innovation and global techno-scientific collaborations Chinese wind turbine pro-ducers ndash acknowledging their resource and capability deficiency ndash pursue strategies of innovation network integration through strategies of global generation of innovation These firms link up with specialized Europe-an actors such as core component suppliers through partnerships and networks in or-der to tap into the technology of firms from developed countries and upgrade Mean-while European companies internationalize through exploitation strategies for example

bine industry Although Danish and Chinese actors are experiencing a re-organization of activities and establish networks and globa-linnovation strategies the result is very dif-ferent

The industry from Europe and US

The industry from Europe and the US hosts the lead firms in terms of core technology de-velopment Denmark has traditionally played a key role as lsquoinnovation hubrsquo in technology development and global lead firms such as Vestas and Siemens Windpower (previously Danish lsquoBonusrsquo) took its start already in the 1970s The core competences of the Danish wind turbine innovation system are based on large testing facilities and long track records mainly due to the long time-line of experi-ence The wind industry goes 40 years back and therefore Denmark has a good knowl-edge pool within establishing wind farms (aerodynamics minimizing power loss in energy transmission wind mapping and other installation-related technologies)

38 CSQ

that will make it possible to finance the pro-jects ldquoFrom then on our wind turbine pro-jects developed very fastrdquo(Interview Wind Engineer Chinese Academy of Sciences) Thus this law was a milestone for elevating renewables to a strategic position in China or as expressed by a European lead-firm ldquoWhat drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick offrdquo

Until the turn of the millennium Chinarsquos wind energy industry was largely built on donors acquisition of finished wind turbines and licensed technology from European companies spread on a very small scale into the local industry during the mid 1990s Chi-nese wind turbine technology has evolved from imitation reverse engineering and licensing in the 1980-90s combined with assistance from foreign consultants One example is how DANIDA funded a project in 1986 for Goldwind in Xinjiang which imported 13 units of 150 kW lsquoBonusrsquo (now Siemens Wind Power) turbines

To get beyond the stage of pure imitation several policies have been introduced with the intent to upgrade Chinese manufacturers to obtain indigenous innovative capabilities Policy programs were introduced to enhance Chinese companies to develop wind energy subsidizing wind energy RampD expenditures at varied levels over time establishing a re-newable energy fund and through the ldquo863 Wind Programrdquo under the Tenth Five-Year Plan (2001-2005) Local content require-ments were put in place in which develop-ers of wind energy projects were required to source 70 pct of the content in China These policies ndash which essentially forced foreign manufacturers wishing to sell wind turbines to the Chinese market to establish China-based manufacturing facilities ndash were only removed recently (in 2009) One result was that the foreign companies had to up-grade local suppliers of components

Due to the technological complexity many European (and hereby also the Danish) firms are vertically integrated and have most com-ponents produced in-house or with regular specialized suppliers According to these companies the different parts need to be well adjusted to each other to some extent even co-developed in order to enhance effi-ciency and the lifetime of the wind turbine Likewise the European industry has expe-rienced a concentration of actors with the result that there are only relatively few but large manufacturers in Europe (the larg-est ones are Vestas Siemens Gamesa and Enercon) Together these four companies accounted for about 35 of the global mar-ket in 2010 By seeing the wind turbine as an integrated system these lead firms aim at producing lsquothe Rolls Roycersquo model wind turbines These are strong in terms of qual-ity and standards but generally expensive These firms learn cost-out techniques from their engagement with partners in China

The Chinese Wind Turbine Industry

Today the Chinese wind turbine industry is overly competitive It entails more than 80 wind turbine manufacturers and the Chi-nese market boasts the highest growth rates internationally with an average growth rate of 968 percentages annually in the last three years Several large domestic Chinese wind turbine manufacturers have emerged within the last decade Sinovel and Goldwind take the largest share followed by United Pow-er and Ming Yang just to mention some of them As of the end of 2010 these four were A major driver for the development of the Chinese wind energy market has been the establishment of an institutional context as a comprehensive concerted policy frame-work addressing the development of renewa-ble energies This change in the institutional context was first reflected clearly in the 11th 5-year-plan (2006-2010) which explicitly linked environmental sustainability to the key goal of establishing what was called a harmonious socialist society signalling a socially environmentally and economically sustainable economy With the Renewable Energy Law from 2005 the Chinese wind energy industry really took off as it explicitly seeks to ensure that renewable energy pro-jects have an outlet for their output at prices

Technical barriers and the role of GINs for a post-carbon society

Despite high ambitions in terms of devel-oping innovative capabilities Chinese pro-ducers still produce almost exclusively for the Chinese market However Chinese wind turbine manufacturers have recently started an internationalisation process and some are approaching international markets Not least for tapping into new knowledge

Europe (and Denmark in particular) is per-ceived as a main location from which the Chinese companies can learn more A cou-ple of Chinese companies have already set up RampD centres in Denmark European firms have also initiated RampD centres in new lo-cations primarily China and India In other words GINs can be identified

Our research also points towards important barriers for GINs in the wind turbine in-dustry and for approaching a post-carbon global society Most importantly are the technological barriers intellectual property rights quality issues and issues of limited appropriability of knowledge Further the institutional framework remain relevant for displaying how the sector and the emerging GINs are embedded institutionally socially and technologically Whether actors trans-act knowledge technology and know-how through cooperative innovation activities also depends on how core the technology of a given technology is Still as the market grows in China it seems to have matured in Europe because of changing policies on re-newable energy To sustain the position as a global lsquohubrsquo and world leader in wind tech-nologies there is a strong need for support in Europe as this research really shows how fast the Chinese industry is moving One major result is how important networks are for upgrading companies and it seems that Chinese firms perform better in network strategies and manage to tap into relevant knowledge than the European firms

What drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick off rdquoldquoInterview Wind Engineer Chinese Academy of Sciences

39CSQ

Social Enterprise World

ForumNadine Koumlcher from 180Degrees recounts her experience from the

conference on

Rio de Janeiro Brazil 2012

In the numerous panel debates and parallel track discussion it became clear that Impact Investment is a hot topic among both social entrepreneurs and impact investors a diverse group consisting of corporations founda-tions and potential donors However various obstacles impede a harmonious relationship between the twoSocial enterprises face structural challenges to make themselves more appealing to im-pact investors They have to become more transparent and increase their accountability This includes improving their impact assess-ment and reporting tools However despite much discussion no consensus could be formed on how to optimally conduct im-pact assessment One of the most frequently proposed methodologies involves the use

From the 16th to the 18th of October the CBS Sustainability Platform granted me the opportunity to attend the 5th Social Enter-prise World Forum which took place in Rio de Janeiro Brazil This yearly international conference focuses on social enterprises and their effectiveness in solving social challeng-es The overall theme of the 2012 conference hosted by NESsT was ldquoSocial Enterprise Investing for Impactrdquo Thus for three days over 180 speakers and 650 delegates from 30 different countries shared their experiences regarding impact investment and discussed possibilities to attract new investment by both the public and the private sector for so-cial enterprises

of control groups Story-telling has also been men-tioned to be a powerful tool to provide investors with a proof of outcomesSocial investors are willing to accept returns just below the market rate in exchange for a social return However large profits are still expect-ed and many social enter-prises are afraid of being unable to generate them Social enterprises typically operate on a small scale and are not used to undertake large projects with huge sums of investment given to them Many are too small for social investors to be

attractive as costs are similar for small and large investments although larger invest-ments have a higher payoff

Nichole Echert the CEO of NESsT there-fore pointed out that it is necessary to align expectations between impact investors and social entrepreneurs and to be patient in establishing a relationship between the two groups The expected financial return has to be reasonable close to covering the costs of operation and social returns have to be re-ported to investors by use of clearer criteria

By Nadine Koumlcher Director of Branch Development180 Degrees Consulting Limited

ldquoSocial Enterprise Investing for Impactrdquo

Students

40 CSQ

A highlight of the con-ference was definitely the site visit to a social enterprise project in a recently pacified fave-la It brought further insights on the great variety of social enter-prises that exist in Bra-zil and their missions and struggles We visit-ed a community center at which Comitecirc para

Democratizaccedilao da Informaacutetica (CDI) uses technology to fight poverty and to stimulate entrepreneurship CDI has formed a corpo-rate partnership with Coca Cola which in the same building teaches young locals how to write a CV and find a job Talking to the young locals at the center it became apparent that an increased self-confidence and the in-spiration they get from meeting former now employed participants of the project (eg at Coca Cola) is what they valued most of being part of the class

Participating at the conference was definite-ly a unique and valuable experience I would not want to miss as I tremendously improved my knowledge in the field of social enter-prises through attending the numerous pres-entations and discussions and further met so many inspiring social entrepreneurs impact

In addition it has been stressed that the problem is not a shortage of investment capital (even though the government could promote more impact investment by for instance granting tax breaks) but how to deploy it Social entrepreneurs also have to be aware of the different advantages and dis-advantages of the various types of capital It has to fit their process of establishment and it has therefore been suggested that funds and grants are most optimal in the start-up phase to cover such costs as capacity train-ing There is generally a lack of this early stage financial support Following the initial phase strategic philanthropy money would be most appropriate before impact and final-ly equity investment is sought Furthermore new ways of investment which fit the social enterprise world have to be created replac-ing the current situation of trying to fit social enterprises into the current financial world

investors and students with a genuine inter-est in the field

Participating at the conference was definitely a unique and valuable experience rdquo

ldquo

Social Enterprise World Forum 2013 in

Calgary Canada

The TRICO Charitable Foundation in part-nership with the Social Enterprise Council of Canada and the Social Finance Forum has been selected to host the 6th Annual Social Enterprise World Forum SEWF 2013 will take place October 2-4 2013 in Calgary Al-berta The Forum will present the Canadian social enterprise movement with opportuni-ties to engage learn and share on the inter-national stage

SEWF 2013 will be a gathering of over 1000 Canadian and international delegates who are involved in the social enterprise move-ment where the blending of social and fi-nancial values is core to business Attendees will consist of practitioners (from all sec-tors) funders investors supporters elected officials and public servants from around the world

Nadine Koumlcher

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 5: CBS Sustainability Quarterly 2013 #1

5CSQ

Update

Next application deadline for Sustainability

Platform funding is 15 May

Applications of less than

25000 DKK can be submit-

ted on an on-going basis

Call for papers Journal of Consumer Policy Special

Issue - CBS Harvard Collaboration

Call for papers Sustainability in a Scandinavian Context

Conference at CBS

activities supporting sustainability research and education at CBS including expenses in connection with workshops seminars and conferences travel visiting faculty and salary for research or student assistance but please note that the Platform is not allowed to compensate faculty with internal buyout (frikoslashb) Please remember to use the ap-plication form to be found on our website when applying And do contact us if you have any questions beforehand

It is now possible to submit applications for smaller initiatives of maximum 25000 DKK to the Sustainability Platform on an on-going basis This is done to increase flexibility and create space for facilitating sustainability in-itiatives with a more short-term perspective When applying the Platform for support please also use the application form to be found on our website httpwwwcbsdkencbs-focusbusi-ness-in-society-bis-platformssustaina-bility

The Journal of Consumer Policy will publish a Special Issue on Behavioural Economics Environmental Policy and the Consumer edited by Professor Lucia A Reisch (CBS) and Professor of Consumer Behaviour and Consumer Policy Cass R Sunstein (Harvard University and Harvard Law School USA) In 2011 the Journal published a Special Issue focusing on ldquoBehavioural Economics Consumer Policy and Consumer Law ndash An interdisciplinary Perspectiverdquo Following on this trajectory the present Call focuses on the increasingly discussed possibility of applying behavioural economics to ldquonudgerdquo consumer choice and behaviour in the domain of environmental protection The editors invite both conceptual and empirical papers with a variety of perspectives (including both ldquoprordquo and ldquoconrdquo) and from a variety of disciplines Papers have to be submitted be-fore October 1st 2013 and according to the submission and author guidelines available on the journal website httplinkspringercomjournal10603 The publication of the Special Issue is scheduled for March 2014

On 10 and 11 June the Sustainability in a Scandinavian Context Conference 2013 will be held at CBS The con-ference is intended to bring academics and practitioners together to consider sustainability in a Scandinavian context and the potential development a research paradigm dedicated to exploring sustainability in a Scandinavian context Extended abstracts of between 500 - 1000 words are due by 10 April 2013 Accepted extended abstracts will be made available on the conference website and printed in the conference proceedings Extended abstracts will be considered with regards to their fit and potential contribution to the Sustainability in a Scandinavian Context Conference 2013 and furthermore with regards to their potential contribution as fully developed articles to a special issue dedicated to ldquoSustainability in a Scandinavian Contextrdquo This special issue will be with a respected international academic manage-ment journal (to be announced in advance of the conference) that will be edited by professors R Edward Freeman Kai Hockerts Mette Morsing and Robert Strand The call for the full articles will be early 2014 Please go to the confer-ence website httpwwwconferencemanagerdkssc2013conferencehtml for more information

Since its launch in July 2011 the CBS Sus-tainability Platform has been pleased to support a number of sustainability-related initiatives across CBS departments and dis-ciplines - and we are still very interested in receiving new applications for initiatives The next round of applications is due on 15 May 2013 n this round the Sustainability Platform will support initiatives with budg-ets up to 200000 DKKThe Platform is able to support a long list of

CSQ Update

6 CSQ

Six New Sustainability

Clusters Launched at CBS The CBS Sustainability Platform is happy to announce the launch of six new Sustainability Clus-ters in 2013 With the energy of a number of CBS colleagues that have taken on the responsibility of leading the Clusters the Platform hosted a kick-off meeting in January where focus and ideas for future activities of the Clusters were discussed among the Cluster leaders

Green Innovation and New Business Models

Corporate Governance and Leadership for

Sustainability Strategy

Sustainable Transitions in Developing and

Emerging Economies

Governing Sustainability

Communicative Dimen-sions of Sustainability

Sustainability in the Post-Growth Economy

he purpose of the Sustainability Clus-ters is to contribute to sharpen the

definition of what CBS does and will do on sustainability for the future The Clusters will thus work independently with researchers across CBS to highlight and position sustain-ability competences at our business school and facilitate multidisciplinary collaboration within and beyond CBS

With seed funding from the Platform the Cluster leaders plan for a number of activi-ties over the next few years within research education and outreach working as lsquocon-necting hubsrsquo for researchers at CBS that are engaged or wish to become engaged in spe-cific thematic areas within sustainability

Clusters will develop in-itiatives within research education as well as outreach in a variety of mixes Some will focus their efforts on developing new con-tent for Sustainability teaching and integrat-ing it into new andor existing courses and programs others will focus on developing new research projects and applications for external funding involving international re-search colleagues and corporate partners Some Clusters plan to facilitate the author-ing of journal publications and books as well as summarizing relevant literature in the field and making it available to inter-ested scholars at CBS There will also be efforts to work closely with students and external stakeholders on conferences sem-

inars and workshops and to invite interna-tional researchers and practitioners to share their thoughts on sustainability Activities will naturally depend on the particular inter-est of the CBS researchers that wish to take part in the Cluster

Cluster leaders as well as the Sustainability Platform team would like to hear from you on new ideas for activities comments or questions or on whether you would like to be engaged

T

CSQ Update

7CSQ

The Cluster on Green Innovation and New Business Models focuses on discussions and challenges around the increasing problems of global warming resource scarcity and en-vironmental deterioration which have a sub-stantial and comprehensive impact on future business conditions Companies must devel-op strategies to mitigate risks from supply disruptions social unrest rising materials costs and pressures from regulators NGOs and the general public The efficient use of resources will be an important competitive parameter and the need for sustainable pro-duction and resource use will open up new opportunities for innovations in technology products services and business models

The focus of the Cluster on Sustainable Tran-sitions in Developing and Emerging Econo-mies stems from the notion that developing and emerging economies (DEEs) are one of the main engines of contemporary growth in the global economy They face massive transitions in economic social and envi-ronmental terms In order to explain how business in these countries can contribute to sustainable growth the Cluster explores (1) innovative approaches and North-South partnerships on technology co-production

This Cluster will explore and analyze theo-ries frameworks and empirical evidence on the conditions and tools for promoting and managing sustainable innovation and busi-ness models with focus on environmental issues The Cluster will seek a coordinated alignment of both technological (and prod-uct and process) development and business model innovation including market plat-forms and infrastructures

Professor Jens Froslashslev Christensen (jfcinocbsdk) and Associate Professor Christian Erik Kampmann (cekinocbsdk) the De-partment of Innovation and Organizational Economics

and transfer within clean-tech industries (2) green innovation networks and capacity building in DEEs (3) social entrepreneur-ship and social business models in DEEs and (4) sustainability strategies of global firms that have implications in DEEs (Base-of-the-Pyramid markets Sustainable Value Chains) Associate Professors Soslashren Jeppesen (sjiklcbsdk) the Department of Intercultural Communication and Management and Stine Haakonsson (shdbpcbsdk) the Depart-ment of International Business and Politics

The six CBS Sustainability Clusters will be

focused on the following themes

Green Innovation and New Business Models

Sustainable Transitions in Developing and Emerging Economies

Stine Haakonsson

Jens Froslashslev Christensen

Christian Erik Kampmann

Soslashren Jeppesen

8 CSQ

The Cluster on Governing Sustainability takes it starting point in the recent flourish-ing of private governance of sustainability initiatives Private actors such as business firms and civil society groups have created numerous initiatives addressing pressing so-cial and environmental problems both at the national and transnational levels Some of these are strictly private others are collaborative efforts with the public sector In this Cluster we are particularly interest-ed in examining corporate codes of conduct public-private partnership agreements labe-ling schemes and standard setting by mul-ti-stakeholder initiatives with a focus on (1) legitimacy and accountability processes and

strategies related to private sustainability governance (2) the effectiveness and impact of sustainability initiatives (3) the dynamics of the relationship between hard and soft law (4) the influence of the state on private sustainability governance and (5) the or-ganization of sustainability management in transnational firms Professor Andreas Rasche (ariklcbsdk) the Department of Intercultural Communi-cation and Management and Associate Pro-fessor Jette Steen Knudsen (jskdbpcbsdk) the Department of International Business and Politics

Governing Sustainability

This cluster invites for exploration of the communicative construction of sustainabili-ty across a variety of interests and stakehold-ers Organizations are traditionally under-stood as instrumental spaces for managers to produce products and processes towards a more sustainable society However increas-ingly organizations appear as social and moral spaces where the meaning and role of sustainability is communicatively negotiated and co-constructed and no definite agree-ment seems to be achieved across publics This development poses new challenges for business in their continous work to appear as legitimate participants vis aacute vis civil society the political system and other organization-alcorporate actors In this cluster we focus on (1) how communication of sustainabili-ty has become a strategic tool for managers working in business ngos and policy-mak-ing (2) how traditional and social media play

an important role in mediating issues of sus-tainability across publics (3) how marketing and branding of sustainability influences consumption and public opinon and (4) how different forms of political and corpo-rate communication (via persuasion facts dialogue etc) about sustainability raise questions about the democratic models that underpin sustainability discourses Against this backdrop the sustainability cluster brings together leading academics from a range of disciplines to explore the role and meaning of communication in a broad sense for the development of sustainability

Cluster leaders Professor Anker Brink Lund (abldbpcbsdk) the Department of Inter-national Business and Politics and Assistant Professors Julie Uldam (juiklcbsdk) and Anne Vestergaard (aviklcbsdk) the De-partment of Intercultural Communication and Management

Communicative Dimensions of Sustainability

Anne Vestergaard

Julie Uldam

Anker Brink Lund

Andreas Rasche

Jette Steen Knudsen

9CSQ

The Cluster on Sustainability in the Post-Growth Economy starts from the realization that the era of perpetual economic growth may be over The Cluster explores and devel-ops ideas and imaginaries of what a sustain-able post-growth economy might look like The purpose of such effort is to transform the end of growth from being the cause of social economic and ecological depredation into being an opportunity for the creation of new forms of economic organization that do not rest upon the condition of growth We ap-proach this challenge by starting to rethink some fundamental economic concepts from the perspective of a post-growth economy

What is a company What is work What is leadership What is money What is con-sumption What is a market And what is in fact economic growth The Cluster will ap-proach these questions theoretically by look-ing into their assumptions rooted in the par-adigm of growth capitalism and empirically ndash by studying actual practices of alternative economic organization Associate Professor Ole Bjerg (oblpfcbsdk) and Professor Bent Meier Soslashrensen (bmslpfcbsdk) the Department of Man-agement Politics and Philosophy

Sustainability in the Post-Growth Economy

The Cluster on Corporate Governance and Leadership for Sustainability Strategy focus-es on managerial behavior and performanc-es related to responsibility in corporations with a particular interest in how managers and leaders in firms relate to and behave vis aacute vis expectations to corporate sustainability strategies policies and action The Cluster will invite discussions that engage with how responsibility issues play a role in shaping systems and models of corporate governance and leadership and conversely how different models impact corporate responsibility and performancesThe emphasis will be placed on bringing into the management debate to what extent responsibility brings demands

for new management competences and man-agement models The Cluster is particularly but not exclusively interested in exploring the relationships between sustainability and corporate performances with (1) board of director characteristics (2) corporate owner-ship structures (3) shareholder activism (4) leadership approaches (5) ethical consider-ations regarding corporate governance and leadership and (6) comparisons of corporate governance and leadership approaches in a Scandinavian context vis-agrave-vis other global contexts

Associate Professor Bersant Hobdari (bhintcbsdk) the Department of Internation-al Economics and Management

Corporate Governance and Leadership for Sustainability Strategy

Bent Meier Soslashrensen

Ole Bjerg

Bersant Hobdari

10 CSQ

Writing a good business case

from a Hollywood perspective

Jenny Mead (left) picture from readthehookcom

On November 28 2012 Kirsti Reitan Andersen temporary project manager at CBS Sustainability Platform interviewed Senior Research-er Jenny Mead Darden School of Business University of Virginia in extension of her visit to CBS Jenny Mead was here to host a workshop and one-on-one sessions on how to write good business cases with a focus on sustain-ability

Interview with Jenny Mead Senior Researcher Darden School of

Business

Could you tell a little bit about yourself

ldquoI have been at Darden School of Business for the past 10 years I write cases about business ethics sustainability strategy and leadership I am not a business person at all but call my-self a writer because that is what I prefer I write stories I have worked in the film busi-ness in Hollywood where I worked as a De-velopment Executive It means that I looked for projects that could be made into movies Again I am not a business person at allIn the 1920s Harvard University started case-based teaching Darden followed through on the case tradition in 1950s Darden has con-tinued to focus on business ethics as key in educating students From the 1950s onwards

in the first year of undergraduate studies we have had a mandatory business ethics course This tactic has developed a large student body which is constantly aware of business ethics as an integrated part of business life The business ethics cases I write have an ele-ment of ethical ambiguity and decision-mak-ing that contains ethical considerationsrdquo You are visiting CBS to host a case-writing workshop and one-on-one sessions with as-piring case-writers What have the partici-pants gained from the workshop

ldquoThey get a primer of what a business case looks like They learn what a case looks like and are given an exercise where they have to

craft a case and have colleagues critique that The second day concerns teaching notes If a professor from another business school wants to teach it they can get the teaching notes that suggest how to teach the casesrdquo

What is a good case and why are cases ben-eficial for teaching

ldquoInstead of using textbooks in classes teach-ers can make use of business cases Generally a case should present a dilemma that has to be solved or a business decision that has to be made by the protagonist in the caseBusiness cases are a good way of placing the student in the shoes of a manager or decision maker Giving him or her the practical expe-

CSQ Interview

11CSQ

Writing a good business case

from a Hollywood perspective

Jenny Mead and Jonas Hedman from Department of IT Management at Copenhagen Busimess School

From the workshop at Copenhagen Business School

riences in a safe environment ndash no company is going bankrupt based on the decisions It is almost real world training but you are not in the real world A feature of case teaching at Darden School of Business is the use of small video clips of the protagonist in the business case Instead of students just reading about the protago-nist in the case the protagonist presents the problem or issue on video to create a lively teaching environmentrdquo

Do businesses actually think about ethicsThat is a good question and I believe there is

a growing awareness I am very impressed by Darden and the students Maybe it is because of the mandatory first year ethics course but the students are very concerned with CSR sustainability and values

I am currently working on a series of cases on conscious capitalism More and more businesses are adopting true values A shift has been made towards conscious capitalism The idea of conscious capitalism is that busi-nesses realize the value of good treatment to all stakeholders Businesses exist to create value for everybody

Relevant links

Darden Case Studies

The Olsson Center for

Applied Ethics (Jennyrsquos

employer)

The Business Roundtable

Institute for Corporate

Ethics

httpwwwcorporate-ethics

orgpublicationscase-studies

httpwwwdardenvirginia

eduwebOlsson-Center-for-

Applied-Ethics

httpwwwcorporate-ethics

org

12 CSQ

SUSTAINABILITY AND

DEVELOPMENT COOOPERATIONInterview with Minister for Development Cooperation

Christian Friis Bach

Did you know that 7 out of 10 of the fast growing economies can be found in Africa Or that DANIDA funds a programme in which CBS and other Danish universities work together with universities in Tanzania Ghana and other countries to increase the quality of research and uni-versity-level education in devel-oping countries

CSQ - Elisabeth Crone Linding amp Stefano Ponte sat down with the Dan-ish Minister for Development Co-operation Christian Friis Bach to hear about how the developing world is moving ahead fast ndash and why Denmark needs to keep up in order to stay relevant

I t is not every day that we meet with min-isters on the top floor of Asiatisk Plads

ndash the official home of the Danish Ministry of Foreign Affairs and DANIDA the inter-national development cooperation branch of the Ministry Nevertheless here we are over-looking the busy waters of the Copenhagen canal and looking forward to a long-planned rendezvous with Christian Friis Bach Min-ister of Development Cooperation since the autumn of 2011

Besides spending time in the academic ranks of Copenhagen University and the political spheres of the European Commission the Minister knows a thing or two about the de-veloping world he has previously devoted his

time to positions in DanChurchAid WWF World Wide Fund for Nature MSActionAid and the Danish Ethical Trading Initiative

In its current strategy DANIDA has put a new focus on green growth renewable en-ergy sustainable agriculture and innovative solutions to enable continued access to scarce resources ndash a quite green agenda in fact But how does this resonate in a developing world that is growing very fast According to the Minister perceptions are changing with more democratic political environments be-ing built

ldquoMore and more developing countries see green growth and sustainability not as stum-

bling stones but as building blocks of a fu-ture strong economy They recognize that in a world of natural resource scarcity and increas-ing prices on for example energy they need to adopt a different growth pattern More and more poor countries are buying into this And therefore we now have a unique opportunity for shaping the political framework and ena-bling environment to create more sustainable developmentrdquo

So how does a business school such as CBS fit into this equation What can we offer

This is a key question for us to ask As the Sustainability Platform was born out of the CBS Business in Society strategy we are in-

CSQ Interview

13CSQ

terested in looking for ways to address grand societal challenges such as ensuring sustain-able development

Christian Friis Bach recognizes that CBS as a research and educational institution has a role to play here ndash maybe even a bigger role than we play now Because even though CBS is known and regarded as a very internation-ally oriented university the Minister encour-ages CBS to go even further in sharpening its global commitment and profile

ldquoMany of the problems that we have related to growth and employment in Europe are not to be found in developed countries I hope that CBS continues to engage internationally in order to shape graduates to tackle global chal-lenges For example 7 out of 10 of the worldrsquos fastest growing economies are in Africa and here I would really urge CBS to have an even stronger engagementrdquo

CBS is involved in the Building Stronger Universities in Developing Countries Pro-gramme (BSU) which is a partnership be-tween research and higher education institu-tions in selected developing countries and all the main Danish universities The long-term goal of the initiative is to make the partici-pating institutions stronger by conducting joint research projects that offer knowledge and solutions to localdomestic and global challenges to produce better graduate pro-grams and for universities to play an increas-ing role in the economic social and political development of their own countries How-ever Christian Friis Bach also encouraged close dialogue with a broader set of partner universities in the developing world as an important way for CBS to shape its research and educational efforts and thus remain rele-vant in the future

Christian Friis Bach highlighted

ldquoIt is a big world And the world moves fast And I think the challenges upon our edu-cational system in Denmark are increasing every day When I go to South Korea China Latin America or Africa I see that they look increasingly towards each other for innovative solutions not towards Europe If we need to remain relevant we do have a challenge hererdquo

For example this means looking at the econ-omies in the world that are the most innova-tive These are in many cases in the develop-ing world so this is when CBS should invest when it comes to partnering in research educational development and knowledge exchange for example among faculty and students

The Minister also notes the advantages that can be gained from globalizing our institu-tions much more broadly and working across borders and academic fields for example on

The Building Stronger Universities in Developing Countries initiative amp CBS

ldquoBuilding Stronger Universities in Developing Countriesrdquo is a partnership between research and higher education institutions in developing coun-

tries and Danish universities The long-term goal of the initiative is to make the participating institutions stronger in the sense that they

bull playanincreasingroleintheeconomicsocialandpoliticaldevelopmentofthesocietiesinwhichtheyarelocated

bull functionasnodesofinnovationandknowledgeproductionprovidingsolutionstolocaldomesticandglobalchallenges

bull produceskilledandmotivatedgraduatesthatcancontributetothefurtherdevelopmentofthesocietiesandaddressthechallenges

faced

The ldquoBuilding Stronger Universitiesrdquo initiative has a structure with four thematic platforms Copenhagen Business School contributes to one of

the four platforms under the initiative the Growth and Employment platform which is a partnership between University of Ghana (UG) Kwame

Nkrumah University of Science and Technology Ghana (KNUST) University of Dar es Salaam Tanzania (UDSM) Sokoine University of Agriculture

Tanzania (SUA) and the major Danish universities From CBS Associate Professors Soslashren Jeppesen and Michael Wendelboe Hansen the CBS

Center for Business and Development Studies is part of the project which for example seeks to develop relevant PhD programmes strengthen

growth and employment relevant research activities and research collaboration and disseminate research findings to stakeholders

wwwbsuudorg

Students Sierra Leone (picture from umdk) Photo Joslashrgen Schytte

When I go to South Korea China Latin America or Africa I see that they look increasingly towards each other for innovative solutions not towards Europerdquo

ldquo

14 CSQ

health technology and business develop-ment in cooperation with developing coun-try researchers And we need to be good at a lot more than ldquojustrdquo development coopera-tion ldquoif we want to remain relevant for exam-ple in Africa on sustainable business we can-not afford to send people out who have worked isolated in the development community here in Denmark So instead of seeing development research as a separate discipline it needs to be integrated into everything we dordquo

That is why the Minister argues for more fo-cus on educating graduates that are experts and specialists but not necessarily within development cooperation Instead he says Denmark needs graduates that can develop the best possible solutions for the developing world within energy technology etc ldquoThe fast-growing economies in China Southeast Asia Latin America Africa do not need spe-cial things made for developing markets they need top innovative solutions and high-quality products and we need to be able to offer that to them if we want to remain relevantrdquo

One of the solutions worth repeating is that of partnerships According to the Minister universities need to remember that partner-ships with other research institutions as well as with private companies and organizations can provide greater insight

ldquoYou need not only public-private partner-ships but large-scale multiple partnership Still universities can sometimes behave as isolated entities Of course universities need to focus on the core business of researching and educating students but they will also in-creasingly be challenged to engage in these in-ternational and multiple partnerships This is where you will find some of the most inspiring

About Christian Friis Bach

Born 1966 in Frederiksberg Denmark Married three children Lives on a hobby farm near Ganloslashse

Present officeMinister for Development Cooperation 3 October 2011 ndash

Education1992-1996 PhD International Economics Royal Danish Agricultural University Copenhagen 1986-1992 MSc Agronomy Royal Danish Agricultural University Copen-hagen

Work Experience2010-2011 Special Advisor for EU Commissioner Connie Hedegaard (UN Global Sustainability Panel) 2010-2011 CEO ViewWorld ApS 2009 Affiliated Professor in International Economics and Development at the University of Copenhagen 2005-2010 International Director DanChurchAid 2002 Journalist at the Danish Broadcasting Corporation (DR) 1999-2005 Associate Professor International EconomicsDevelopment Economics Royal Danish Agricultural University (University of Copenha-gen)

Other engagements2010-2011 Member of the Board of the Danish United Nations Associa-tion 2008-2010 Initiator and Board Member of the Danish Initiative for Ethical Trade 2008-2009 Member of the Danish Africa Commission 2007-2011 Member of the Presidium for WWF World Wide Fund for Nature Denmark 2000-2006 Board Member International Institute for Sustainable Develop-ment 1997-2001 Chairman Mellemfolkeligt Samvirke (Danish Association for International Cooperation)

Christian Friis Bach has published a large number of books reports and ar-ticles in newspapers and magazines Please see wwwfriisbachdk for details

15CSQ

In December 180 Degrees Consulting (180DC) finished its third round of pro-bono social impact consulting projects with even more success than in previous semes-ters All consultants showed dedication and motivation by spending a large amount of their spare time to work with socially con-scious organizations in order to help them to improve their social impact

An overcrowded lecture room during the 180DC information meeting at the begin-ning of the semester and the high number of applications to join the consulting projects were evidence of great interest in 180DCrsquos activities Out of the 139 applicants the top 45 were selected in a two-step recruitment process and grouped into teams of five to work on the nine exciting projects lined up in the Fall 2012 semester

All projects involved Danish-based organi-zations with a strong focus on either social andor environmental sustainability The projects however differed vastly One of the consulting teams assisted Engineers Without Borders and Action Aid in developing an investment rationale for the cultivation of farmland belonging to an Indian orphanage as well as assessing the social return of this investment

Another 180DC team worked with Hertha an organization focused on the reverse in-tegration of ordinary people into a commu-nity of mentally challenged Hertha needed assistance with improving their external reporting setup to stakeholders which was achieved by developing useful tools for the organization to measure both the social and cultural impact of their activities Yet another team of consultants helped the International Rehabilitation Council for Torture Victims optimizing their internal processes and thus helping them pursue their vision of a world without torture

During the consulting period 180DC or-ganized several training sessions for the con-sultants of the organization hosted by pro-fessional consultancies and each team was assigned a mentor with expertise specific to the given project The highlight of the semes-ter was the Final Event at which all of the teams presented their projects in front of a large audience comprised of all 180DC con-sultants the 180DC board members as well as mentors clients and a jury consisting of representatives from PwC DI CBS Sustain-ability Platform BCG and VSFA The juryacutes task was to evaluate the consulting projects based on their written report and oral pres-entation Based on the creativity feasibili-ty and impact potential of the projects the chairwoman of the Jury Birgitte Mogensen PwC announced the winner of the 180DC Social Impact Award Team Engineers With-out Borders

All of the 180DC board members have throughout the semester been working hard to constantly improve the organization in or-der to ensure a high quality of the services provided to clients and of the learning ex-perience provided to students With a new extended board in place 180DC is looking forward to continue its successful journey in the upcoming semester which kicked-off in January with two international projects in Chile and Sierra Leone ndash thanks to the sup-port of the CBS Sustainability Platform

by Nadine Koumlcher

UPDATE FROM 180DEGREES180 Degrees Consulting is an international student consultancy that works with growing non-profits helping them achieve a greater social impact

Contactphone no +45 6061 6399e-mail cph180degreesconsultingorg

Updates from partner organizations at CBS

16 CSQ

The past semester was a good one for 360deg Students for Sustainability Not only did our organization grow to nearly 50 members this fall but we were also nominated in the Student category for the CSR Awards 2012 ndash the second year in a row You can watch the nomination video here httpwwwyoutubecomwatchfeature=player_embed-dedampv=6J5mwn7TcYI Although we didnrsquot win the award representatives from 360deg got the chance to participate in the conferencersquos many seminars ndash and not least hear Bill Clin-ton speak360deg also took it to another level with 360deg Academy The project was a huge success with over 250 people signed up for the ex-tracurricular course It shows that there is a clear interest in CSR and sustainability among the students and that 360deg Students

for Sustainability fill an important gap in providing the students with a forum where they can discuss such issues with each oth-er professors and practitioners We have al-ready started planning Academy 2013 which will run in the fall In addition to 360deg Academy 360deg organ-ised several successful events and seminars the past semester 360deg Develop Prize was kick-started in November and has already found some dedicated social entrepreneurs who will join the coming events this spring as well as the final competition 360deg also co-organized events on microfinance (with Danish Forum for Microfinance) and fair-trade (with Fairtrade Maeligrket) We also created a nice Christmas spirit at the CBS campus with our annual Christmas event featuring cookies a fairtrade Christmas tree

and do nations to Red Cross and Verdens SkoveWhile it is important to look back this semester 360deg is focusing on the future By the end of the semester 360deg Students for Sustainability will have changed its name to oikos Copenhagen After becoming part of the international student network oikos in 2011 we believe that changing our name will emphasize our international commitment and will show the students the many oppor-tunities that are available to them through the oikos network You can read more about oikos International and the other 36 chapters around the world by visiting wwwoikos-in-ternationalorg

Christina EkChairwoman of 360deg and soon-to-be President of oikos Copenhagen

UPDATE FROM 360 STUDENTS

360deg Students for Sustainability

360deg Students for Sustainability is a non-profit student organization based at CBS working to enable and inspire students to make responsible and sus-tainable decisions in their future lives and professional careers

Contact Christina Ek tlf 42 39 99 54 mail info360studentsdk

Live show at CSR Awards 2012

(Picture from csrfondendk)

Updates from partner organizations at CBS

17CSQ

UPDATE FROM PRME

New approach by the Curriculum Development

projectThe commitment to the initiative of the UN Principles for Responsible Management Education (PRME) at CBS has been further sustained via a more targeted approach to the development of the curriculum at the undergraduate programmesAs part of the adherence to PRME CBS has launched a Curriculum Development project to integrate responsible management prac-tices into the study programmes and also make these practices more explicit This is an extensive process that recently has been even more focused on the individual content of each of the study programmes A more cus-tomised approach will only strengthen the analyses of syllabi for each core course and increase the content of explicit responsible management

ldquoThe current restructuring of the Service Management bachelor programme and the development of three specialised lines of ed-ucation offer a great opportunity to align the curriculum development with the Principles for Responsible Management adopted by CBS Currently the CBS Office for Respon-sible Management Education and faculty members from CBS are working to identify opportunities to integrate responsible man-agement education into the educational programmerdquo Assistant Professor Adriana

Budeanu BSc in Business Administration and Service Management CBS In collabo-ration with study boards students and fac-ulties the Curriculum Development project enables a targeted approach to the integra-tion of responsible management content in order to comply with the overall structure of each study programme

Anti-piracy strategy from Maersk was a winning strategy

In collaboration with the CBS Sustainabili-ty Platform the CBS Office for Responsible Management Education arranged an internal competition to identify the best team of stu-dents to represent CBS at the International Business Ethics Case Competition (IBECC) in San Diego later this year The students had to select a business case entailing a challenge with legal financial and ethical aspects and propose a solution to this challenge A jury found the winning team based on a live presentation followed by a QampA session that took place in November 2012

The winners of this unique opportunity were the graduate students Bjoslashrg Ilsoslash Klinkby (MSc IBP) Adam Eithz Kromann (MSc BAP) and Anne Cathrine Gaarde (MSc IBP) They presented a business case on the anti-piracy strategy of Maersk

Winners of the Business Ethics Case Competition

Updates from partner organizations at CBS

18 CSQ

THESIS PARTNERSHIP BETWEEN GRADUATE

STUDENTS AND COMPANIES MATCH-MAKING

On behalf of CBS the Office for Responsible Management Education invited companies and organi-sations to participate in a match-making event with graduate students who were looking to write their thesis within the field of sustainability or social responsibility

Prior to the event that took place on the 6th of February ambitious graduate students were matched with eight very diverse organ-isations all wanting to explore challenge and develop CSR related activities The selection of organisations ranged from Center for So-cialt Ansvar who sought the studentsrsquo advice on how to revitalise their social concepts in corporation with the civic public and pri-vate sector to Wonderful Copenhagen that engaged the students in their aspirations of

retaining Copenhagen as a leading ldquogreenrdquo conference destination This diversity mere-ly reflected the broad-based educational standards that are embodied in the conducts of CBS and enabled students from all study areas to participate With the meeting as the focal point of the event the aim was to in-troduce more students and companies to the possibilities of a thesis partnership On that basis it is the hope that students and organisations will take the initial meeting

further into a collaboration resulting in a thesis that with an analytical and reflected approach hopefully provides valuable insight for all parties The event was indeed a unique opportunity for the students to get the or-ganisationsrsquo unremitting attention but also the organisations expressed their excitement about how the theoretical knowledge and skills of the students could be combined with the specific issues reaching beyond everyday operations of the organisation

PRME

Lene Mette SoslashrensenTel +45 3815 2651E-mail lmsiklcbsdk

PRME Manager

Johanne Duelund Kramer from Wonderful Copenhagen and CBS student Joseacute Bandeirinha from International Marketing and Management

Updates from partner organizations at CBS

19CSQ

A value adding partnership

The match-making event was kick-started by Professor Andreas Rasche who gave a short speech on trends in the field of sustainability and social responsibility Likewise thesis con-sultant Vibeke Ankersborg rounded off the event by guiding both students and organisa-tion representatives in the right direction of obtaining a value adding thesis partnership

By facilitating integration of the theoretical knowledge pool at CBS with real-life busi-ness cases and their challenges this initiative underpins CBSrsquos Responsible Management Education profile ldquoAddressing societal chal-lenges in interaction with business is a key element in our Business in Society strategy and we hope to set up a similar initiative in the futurerdquo Lene Mette Soslashrensen PRME Manager CBS

Being able to engage in a thesis partnership gives us the opportunity to get new and fresh eyes on the challenges and opportunities we face in the aspiration of sus-taining Copenhagenrsquos position as marked leader within sustainable meetings and events ndash and the other way around we see it as a positive contribution to help young students to gain in-depth knowledge on how we actually work with sustainability in practicerdquo

Ulrika Maringrtensson senior communication consultant Wonderful Copenhagen

ldquo

Case Companies

20 CSQ

Update from CBS Centre for Corporate Social Responsibility

cbsCSR celebration10 years anniversaryOn Thursday November 22 2012 CBS Centre for Corporate Social Responsibility (cbsCSR) celebrated its 10 years anniversary The guest list included prominent guests from both academia and the corporate world Head of Department Dorte Salskov-Iversen President Per Holten-Andersen and cbsCSR Director Esben Rahbek Pedersen bid all a warm welcome to an afternoon of inspirational talks and celebration of the Centre

Susanne Stormer followed and initiated her presentation with a brief recap of Novo Nor-diskrsquos history and continuous development of corporate sustainability practices She em-phasized how Novo Nordisk with the help of Professor Ed Freeman has prioritized a close relationship with their stakeholders and learning with them as a means to reach a higher level of corporate sustainability An additional key take-away from Susanne Stormer was the notion of transformational partnerships She argued that corporations NGOs and other stakeholders should use each other to form transformational partner-ships instead of just transactional partner-ships She claimed that in order to address and solve the problems in todayrsquos world the issues have to be addressed at the roots ndash in cooperation with stakeholders

The program had been divided into two ses-sions Each session ended with a panel dis-cussion that gave the audience the opportu-nity to track the developmental trajectory of CSR and participate in the discussion of the future direction of CSR

In the first session which focused on the history of CSR Professor Lucia Reisch from Department of Intercultural Communica-tion and Management CBS Susanne Storm-er VP of Corporate Sustainability at Novo Nordisk and Professor Gail Whiteman from Rotterdam School of Management present-ed their perspectives on the development of CSR up until nowProfessor Lucia Reisch set the stage with an enlightening introduction to the history of sustainable development and emphasized balance on the triple bottom line as key

Professor Gail Whitemanrsquos presentation highlighted both the past and the future of CSR Her main topic was how to deal with planetary boundaries She drew attention to inherent implications of teaching sustaina-bility and CSR at a business school and ar-gued that in order for students and business executives to understand the implications of planetary boundaries and their importance classes should be taught in nature

In the second session Annette Stube Head of Group Sustainability in AP Moller ndash Maersk Simon Pickard Director General at ABIS and Professor Andreas Rasche from cbsCSR presented their views on the future of CSR

Updates from partner organizations at CBS

21CSQ

The topics in the second panel debate evolved around some of the same issues as in the first panel debate The audience was very interested in the educational aspect of CSR and sustainability and a discussion fol-lowed concerning the issues of lsquopreaching to the convertedrsquo Research shows that 75 of CSR courses are not mandatory 1 thus those students and executives who have a natural interest in CSR and sustainability enroll for these courses The speakers agreed that this posed a challenge for the future and that business schools might have to re-invent themselves in this regard They stressed that it is crucial that CSR and sustainability courses become mandatory Also the prac-titioners advocated in-company learning They set forth the argument that it may be a long time before current students will have sufficient impact on the corporate sector but also because the corporate sector and the ac-ademic world can learn from one another

Sum-up of key perspectives for the future

So how has lsquothe business of business really changedrsquo and in what direction From the afternoonrsquos discussions there were two recur-ring topics Susanne Stormer briefly touched upon it when she talked about transforma-tional partnerships Annette Stube and AP

Annette Stube set forth the argument that ldquothe business of business has really changedrdquo She gave an example of how AP Moller ndash Maersk should use their position in the shipping industry to facilitate substantial changes Simon Pickard supported her argu

ment stating that it is not possible for single corporations to make a difference but that clusters of corporations have to collaborate to push changes If corporations do not join forces they risk only making incremental changes Simon Pickard further argued paraphrasing Andrew Pettigrewrsquos argument that in the course of time there has been a conceptual change in the argument for CSR He pointed to the fact that it started out as a moral or philanthropic enterprise and is now perceived as a governance case Simon Pickard pointed to the fact that the future of business is to create shared value ie creat-ing economic value that also creates value for society at large Building on these re-marks Andreas Rasche discussed the future of standards and codes in the field of CSR Emphasizing a variety of case examples he argued that while standards have proliferated in recent years eg certification schemes in the global coffee and apparel industries there is a need to more actively manage the co-ex-istence of these initiatives in order to avoid overlap Rasche also highlighted the pivotal role of consumers who need to acknowledge standards and labels as market signals and factor social and environmental concerns into purchasing decisions

Moller ndash Maersk has it as an integrated and crucial part of their CSR policies and Simon Pickard highlighted how instrumental the-ories are no longer enough The concept of shared value is inescapable and it is what the lsquobusiness of businessrsquo in the early 21st centu-ry is really about

A second topic which also attracted a lot of attention was the importance of continuous education of both lsquothe convertedrsquo but also of opponents of CSR and people who are not aware of the importance of CSR and sustain-ability In-company learning was depicted as a crucial part of the development of CSR and sustainability however a physical change in the teaching settings is also required to meet the approaching environmental challenges

Centre Director Esben Rahbek Pedersen concluded the conference and the winners of the prize of 25000 DKK to participate in the IBECC case competition in San Diego in May 2013 were announced and the celebra-tion of cbsCSR ended with a reception

Thank you to all the speakers moderators and guests for an inspirational afternoon

By Elise Lind Jacobsen and Line Pedini Rasmussen cbsCSR

1Rasche A Gilbert DU and Schedel I (2013) Cross-Disciplinary Ethics Education in MBA Programs Rhetoric or Reality Academy of Management Learning and Education (forthcoming)

Three of the keynote speakers (from left) Professor Gail Whiteman from Rotterdam School of Management VP of Corporate Sustainability at Novo Nordisk Susanne Stormer and Sustaina-bility Professor at CBS Lucia Reisch

Simon Pickard Director General at ABIS

22 CSQ

UPDATE FROM

CBS GOES GREENThe Green Associate Program

2012 was an exciting year for CBS Goes Green with many great achievements One of the new initiatives that was launched in 2012 was the Green Associate Program Here CBS students were able to volunteer in a program to support sustainable behavior among students and staff at CBS More precisely 25 CBS stu-dents put in 30 hours of voluntary work to help with the planning and execution of Green Week - a week consisting of a lineup of successful companies shar-ing their sustainable initiatives and thoughts The overwhelming interest in sustainability and sustain-able business among the students has made it evi-dent that the Green Associate Program should con-tinue in 2013 We at CBS Goes Green look forward to this as well as all of the other initiatives we will be conducting in 2013

The following is an extract of an article that three of the associates wrote themselves This extract shows the associatesrsquo own experience working with CBS Goes Green

What does it mean to be an

associate with CBS Goes Green

In Week 39 CBS turned into a plethora of green initia-tives and events in order to make CBS reach its sustaina-bility goals for 2020 Both students and employees at CBS were asked to become a Green Ambassador to help CBS be smarter greener and better

But many of you may wonder how it is to be one of the people behind the scene As associates we have been help-ing out before and during Green Week in order to establish an event that would reach all corners of CBS This has re-quired both time and effort in order to make things work out but in the end there are also a lot of gains from being an associate

Firstly as an associate you get to expand your network You get to work with people from different studies countries and ages and you also get to talk to many different people while promoting

A bonus about being an associate is also that you get an official certificate which can be attached to your resume This shows that you have put an effort into making Green Week happen

Furthermore by being an associate you feel like you have a larger impact on making CBS a greener place Instead of being an ambassador and only doing the things you can do you get to be the person who raises awareness about sustainability You may influence people to make the right choices and it makes you feel good

Lastly it also gives you a feeling of responsibility because you work under an official part of CBS CBS Goes Green ndash a unit with a clear agenda and a clear vision

By Michael Nguyen Christian Charity and Christian-Philip Lundahl

Updates from partner organizations at CBS

23CSQ

International conference on sustainable biofuels presents latest research

By Barbara Louise Bech Department of Business and Politics CBS

EU Renewable Energy Directive

In 2009 the EU RED set a mandatory target for member states to use a minimum of 10 renewable energy sources in the transport sector by 2020 of which biofuels is expected to be the main contributor This is part of a policy to cut greenhouse gas emissions promote the green technology sector develop rural areas and reduce dependency on fos-sil fuels Due to increasing controversies claiming lack of sustainability in first generation biofuels based on food crops recently the EU pro-posed an amendment to the Directive limiting the share of first gener-ation biofuels to 5 of the targeted 10

The debate quickly zoomed in on the sustainability criteria as outlined in the EU RED drawing attention to the lack of social safeguards The general consensus is that the concept of sustainability is too narrow-ly defined Several case studies (Mozambique Brazil and Indonesia) show that basic labor and human rights of local populations are not protected by RED and the directive is more viewed as an environmen-tal safeguard This discussion raised questions in regard to the effects of RED globally (eg sustainable production in developing countries) and in this context whether EU legislation can have a lsquotrickle downrsquo effect on national standards of nation-states outside the EU In this re-gards one could ask if enforcement at the local level falls under the re-sponsibility of the EU but since first generation biofuels are produced outside the EU it is an important issue for European consumers ndash al-though interest is currently mainly driven by NGOs

On November 19-20 2012 the Copenhagen Biofuels Research Network (COBREN) held an international conference on sustainable biofuels inviting 30 research-ers from around the world to present and discuss their latest research During the two day conference focus was the sustainability criteria of the EU Renewable Energy Directive (RED) voluntary certification schemes and their impacts on sustainability and social safeguards in producer (developing) countries in particular and governance complexity of the biofuel system which has grown considerably over the past decade

Rough guide to biofuelsThere are two types of biofuels biodiesel and ethanol First generation biofuels (1G) are based on food crops and feed stocks such as palm oil soybean and rapeseed used for the production of biodiesel and sugarcane and corn for ethanol The produc-tion of biofuels increased heavily in the 2000s questioning the sustainability of 1G A number of issues have been claimed as key impediments to sustainable biofuel production such as deforestation competition with food production and increasing food prices loss of biodiversity lack of social and environmental safeguards and indirect land use change (ILUC) These contro-versies have led to a call for the promotion of second generation biofuels (2G) which are typically based on agricultural waste (eg straw) plants and forestry residues (also called lignocellu-losic biomassmaterials) However the immediate problem is that there is yet to be developed a market for 2G as they are more costly to produce (require longer and more complex production process)

CBS Sustainability Platform co-director and organizer of the COBREN conference Stefano Ponte doing a presentation

Event

24 CSQ

Voluntary certification schemes

In relation to how standards and certifications can impact sustainable biofuel production discussions pointed to the important difference be-tween mandatory and voluntary schemes As the controversy of sus-tainable biofuels in particular first generation is rolling out special attention has been given to biofuel production competing with food production ILUC value of emissions reduction and environmental and social issues This have off sprung a proliferation in private certifi-cations and during the conference it was discussed intensely whether these schemes have an actual effect on sustainability Depending on the point of view certifications can fill out the holes in legislation and act as a tool to force companies to comply with sustainability crite-ria However the development processes of new certifications may not be inclusive of relevant stakeholders (eg representatives of local populations) Additionally the nature and governance of the networks steering these processes is not always transparent and may favor one interest over the other This intense discussion led to the question of the purpose of certifications Can we use them for anything other than as a CSR PR tool as long as consumer awareness is as low as it is and how do the different regional drivers influence sustainability as a concept The answers to these questions are not easily found and it will be interesting to observe the future development and partnership between public and private sector

Governing the biofuel industry

Within the past decade biodiesel production has risen from below 30PJ in 2000 to 572PJ in 2009 globally and fuel ethanol production has increased from 340PJ to 1540 PJ respectively As the market expands more actors eg governments international organizations civil soci-ety and NGOs private sector networks and companies and profes-sions (biofuel experts and consultants) get involved and play different roles to promote their own agendas Being an emerging industry the structure of the biofuel system shows hybrid forms of governance with many actors As controversies of biofuelsrsquo sustainability develop more issues are added to the agenda giving life to more actors and interests in the governance structure Research shows a shift in power balance as private companies and NGOs increasingly push the agenda The dis-cussions during the conference centered on the complexity of sustain-ability issues calling for mixed governance responses and governance instruments such as standards and certifications which in return need to be followed up with endorsement instruments Given these com-plexities the question is whether the biofuel industry is too difficult to govern as long as the governing systems (for instance the EU) cannot accommodate expectations of all stakeholders

Indirect land use change (ILUC)ILUC is the unintended consequence in terms of more carbon emis-sions due to land use change around the world induced by the expan-sion of croplands for biofuel production When land that could be used to grow food and feed crops is used to grow energy crops this leads to existing agricultural production moving to another area or country where land is converted When this land is cleared and converted to cropland and because natural lands (rainforests and grasslands) store and sequester carbon in their soil and biomass a net increase in GHG emissions can occur Due to this change in the carbon stock of the soil and the biomass ILUC has consequences in the GHG balance of a biofuel Adding to this complexity models for ILUC calculations are not mainstreamed and thus difficult to assess internationally

25CSQ

Mellemfolkeligt Samvirke (MS) or Action Aid Denmark is a Danish NGO founded back in 1944 The

organizations key objective is to fight poverty by ensuring greater political influence for the worldrsquos poor and margin-alized at the local national and international levels MS works to bring about long-term development in the worldrsquos poorest countries focusing especially on education co-

operation and the ability to organize MS mainly works in Africa Read more about the organizationrsquos work

at wwwactionaiddk

Action Aid

A private sector view on the future of sustainable biofuels

By Barbara Louise Bech Department of Business and Politics CBS

nergy security continues to be an eminent concern in a world of finite resources For a long time biofuels have been viewed as

one of the key solutions to replace our dependency on fossil fuels and battle climate change but in recent years controversy has contested the sustainability of first generation biofuels based on food stock Issues such as lack of environmental safeguards causing loss of biodiversi-ty and deforestation and lack of social safeguards ensuring land and labor rights in producer (developing) countries have been claimed as key impediments to sustainable biofuel production Critical observers also argue that the emission savings of biofuel use in compar-ison to fossil fuels can become much smaller (or even disappear) when indirect land use change (ILUC) is included in the calculations Furthermore bi-omass production from food stock is argued to compete with food production and in-creasing food prices

The Danish NGO Action Aid has been engaged in biofuels since 2008 and is par-ticularly involved in protecting womenrsquos rights and preventing land grabs in de-veloping countries ldquoWe are very concerned about land use when it comes to first genera-tion biofuels This relates both to the people who are dependent on the land and to food security We rarely see good combinations where the local populationrsquos needs are taken into consideration The energy crops grown on the local farmerrsquos land donrsquot benefit him and local consumption is essential for developmentrdquo explains Kirsten Hjoslashrnholm Soslashrensen political advisor Action Aid Denmark

It is therefore believed by many that second generation biofuels is the only way forward to avoid competition with food and avert ILUC Next generation biofuels is based on lignocellulosic biomass such as agricultural and household waste and forest residues The Biorefining Alliance represents a cluster of leading Danish companies within the renewable energy sector with an ambition to promote second gener-

ation biofuels and make Denmark a world leader of technology and bi-ofuel productionldquoDenmark has very strong competencies in green tech and as a society we have put a lot of money in its development This is go-ing to be a huge deal globally so we are asking whether Denmark wants to be a customer or a producer What we are working for is of course that we become a lead exporter of technology but also that Denmark produces second generation biofuels commercially Even though we are a small country we cannot settle on selling know-how Denmark also needs to have some industrial productionrdquo says Anne Grete Holmsgaard di-

rector of Biorefining Alliance In her view Denmark needs to keep a firm grip on developing innovation or it will slowly but

steadily move out of the country In this regard she views sustainability criteria for biofuels as an in-

novator and not a hindrance

The Sustainable Biofuels Network (SBN) is another cluster of private companies trying to facilitate the transition from fossil fuels to biofuels in the transport sector For the aviation industry biofuels are considered

to be the only alternative to fossil fuels and the industry firmly believes that biofuels will

survive according to Robert Arendal chairman of SBN ldquoThe aviation industry has set very clear

guidelines for the use of biofuels We are not going to use food based biofuels and we will minimize the use of fresh

water By 2050 our target is to use 50 biofuels in the global aviation so we really need to move fastrdquo he explains adding that living up to sustainability criteria includes being careful about where biofuels are produced ldquoBut it should be produced all over the world and close to the 1600 airports worldwide that account for 95 of all aviationrdquo

he technology for second generation biofuels is already here but the problem is that production costs are too high and there is no market As long as prices are not competitive with conventional fuels it will be difficult to move forward ldquoOne might ask why there is no market The customers are certainly there so if I was in the business of producing

E

As part of the COBREN international conference on sustainable biofuels private sector civil society and academia were invited to give their views on sustainable biofuels at a roundtable discussion at an open public seminar held at DIIS November 19 2012

Event

26 CSQ

SBN is a ldquobreeding groundrdquo and ldquoknowledge centerrdquo for the biofu-els industry where synergies are created between all parties within

the biofuels sector SBN focuses in promoting supporting and enabling the commercial development and use of clean and sustainable biofuels for Heavy Road Transportation Shipping and Aviation Emphasis is put on the importance of global standards for biofuels with local as well as international institutions and decision makers to encourage con-

structive guidelines and rules for the development of biofuels SBN adheres to EUrsquos sustainability criteria SBN is a non-profit asso-

ciation established in 2008 Visit their website for more info at wwwsustainablebiofulsdk

Sustainable Biofuels Network(SBN)

The Biorefining Alliance (BA) was founded December 2011 by DONG Energy Novozymes Haldor Topsoslashe and the

Danish Agriculture and Food Council and is a three-year project to politically promote Denmarkrsquos position in the entire value chain from residues to bio-based products The Alliance has set forth a number of recommendations to achieve a sustainable Danish bio-economy Among other these include (i) that all organic

waste be considered a resource (high-value recycling and storable energy) (ii) reducing the cost of manufacturing 2G

bioethanol and (iii) contemplating the establishment of a national center for sustainable materials

Biorefining Alliance

second generation biofuels I would get started right awayrdquo says Robert Arendal The Biorefining Alliance is working on lowering the costs and recommends a stronger regulatory framework with binding targets as it has been done for the wind industry ldquoThere already is a market for first generation biodiesel which is the least sustainable biofuel We need to make a market for second generation biofuels and we know that binding targets work I donrsquot think it is possible to create a market for the lsquogreen consumerrsquo as you have one for organic food products but I believe that a niche market for HRT (Heavy Road Transport red) such as public bus transport could be a supplementrdquo concludes Anne Grete Holmsgaard

How the future for sustainable biofuels will shape depends on political will to create a market for second generation and the ability of private sector to innovate and bring prices down Oil production is claimed by some to already have peaked and exploring new geographical areas for extraction could be as costly as kick-starting the market for second generation biofuels although much less sustainable As the American ecologist and environmentalist Bill McKibben wrote in his book ldquoDeep Economyrdquo back in 2007

Even before we run out of oil wersquore running out of planetrdquoldquo Bill McKibben

27CSQ

The Transparency-Sustainability NexusA workshop on the practices meanings and tensions of organiza-

tional transparency

n December 5 2012 the Department of Intercultural Communication and Management (ICM) hosted an in-

ternational workshop supported by CBS Sustainability Plat-form and ICM The workshop was organized by Oana Brindusa Albu Mikkel Flyverbom and Hans Krause Hansen respectively PhD Fellow and Associate Professors at ICM The idea of the workshop was spurred by the observation that while ideals of transparency like lsquoopennessrsquo lsquodisclosurersquo and lsquoreportingrsquo are pro-liferating these years the actual construction of transparency within and across organizations is poorly understood Most re-search on transparency is highly normative if not celebratory just as popular discourse about transparency not least in the areas of sustainability and corporate social responsibility is obsessed with ideals of accountability performance and effi-ciency and pervaded by an optimism currently pushed to its extreme with the explosion of new media technologies

But the truth is that we generally know very little about the implications of ideals of transparency when translated into practice in specific issue areas and organizational contexts Importantly each of the contributions to this workshop clear-ly suggested that the contemporary politics of transparency is much more complex contradictory and dynamic than tradi-tionally recognized All papers examined various aspects of the contemporary obsession with transparency and specifically the increasing use of disclosure techniques within and around or-ganizations the rationales or myths underpinning these meas-ures their intended and unintended consequences including implications for identity-making management and govern-ance practices

Clare Birchall initiated the workshop with a paper titled lsquoThe Cultural Politics of Disclosurersquo highlighting how transparency has been positioned as a superior form of disclosure in popular management and organizational literatures and in policy docu-ments In her account the growing preference for transparency is a consequence not only of the positive qualities seen to be intrinsic to transparency itself but also a response to the per-ceived negative characteristics of other forms of disclosure such as gossip scandal and rumor Lars Thoslashger Christensen (with co-author Joep Cornelissen) then analyzed transparency as one of the foundational myths of modernity myths understood here as descriptions of the world in a narrative form which seeks to produce meaning and direction for a community and its members Such lsquoMyths of Transparencyrsquo sustain numerous organizational practices ndash including openness information provision and auditing But as argued by the authors there are conflicting evidence regarding the capacity of such practices to create insights and understandingThat aspirations and techniques of transparency can have seri-ous repercussions was demonstrated by Peter Skaeligrbaeligk (with co-author Mark Christensen) in the paper entitled lsquoAuditing and the purification of blamersquo which analyzed how auditing auditing practices and institutional entities including the po-liticized environments surrounding them are mobilized and participate in blame games and allocation In his paper titled lsquoQuantification transparency and the costs of reassurancersquo Henrik Vollmer analyzed various dimensions of the role of nu-merical records and signaling in generating transparency trust and mistrust

By Hans Krause Hansen Department of Intercultural Communication amp Management

Event

O

28 CSQ

Some of these aspects were also touched upon in the paper lsquoDisrupted Disclosures The Politics of Visibility and Surveil-lance in the Extractive Industriesrsquo by Hans Krause Hansen (with co-author Julie Uldam) which explored the wider field of visibility and surveillance in which contemporary transpar-ency policies are unfolding with examples from the extractive industries Oana Brindusa Albu in her lsquoTransparency and the organizational self everyday politics of identification in Cooperativesrsquo examined the paradoxical effects of values and practices of transparency on collective identity formation pro-cesses drawing upon her ongoing multi-sited fieldwork in co-operatives Under the heading of lsquoThe Improbability of Secrecyrsquo Mark Fenster analyzed the intersections of secrecy and trans-parency with examples from the US government and its efforts to control information which according to the author does not necessarily stop the flow of information Finally Mikkel Fly-verbom and Christina Garsten examined lsquoThe sway of (big) data ndash calculations and advocacy in the name of transparencyrsquo focusing on the operations of data-based forms of corporate lsquotransparency evangelismrsquo and advocacy through revelation including examples from Center for Global Development and Google

In all the workshop was highly successful in investigating not only the historical and mythical foundations of transparency but also the different practices and forms of transparency that currently shape organizations and a wide variety of issue areas It also provided a reminder of the usefulness of investigating a concept of transparency in relationship to a host of other con-cepts such as secrecy myth gossip blame surveillance visi-bility identity information and knowledge The organizers of the workshop wish to thank all workshop participants for their valuable contributions and the CBS Sustainability Platform and ICM for their support

Hans Krause Hansen

Mikkel Flyverbom

Oana Brindusa Albu

ASSOCIATE PROFESSORPHD (ICM)

ASSOCIATE PROFESSORPHD (ICM)

PHD FELLOW (ICM)

29CSQ

Louise Lyngfeldt Gorm Hansen is a PhD Fellow at the Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) She has a back-ground in Chinese Studies from Copenhagen University (BA) the Asian Studies Program at CBS (BSc) and in International Business Stud-ies and Sustainable Business (MSc) from CBS

The aim of her cross-disciplinary PhD project is to explore how the Chinese hydropower sector works with environmental sustainability and more particularly how the concept is understood and performed in the planning phase of a major dam project in the southwestern Chinese province of Yunnan

The aim of the project is to gain a deeper under-standing of how Chinese firms in the renewable energy sector such as hydropower companies understand and value sustainability as well as how such firms tackle the increasing pressure to deliver socially and environmentally balanced solutions to one of Chinarsquos major challenges lowering CO2 emissions in a time with rapidly rising water and energy demands Theoretically the project draws on - and aims to contribute to ndash a combination of Asian Studies and Science and Technology Studies

PHD FocusLouise Lyngfeldt Gorm Hansen

HYDROPOWER

SUSTAINABILITY

30 CSQ

HYDROPOWER

SUSTAINABILITY IN

CHINAy PhD project combines two of my main research interests China and

environmental sustainability I have studied China for a number of years mainly because of an interest in how the Chinese view sus-tainable development So since finishing my masters I have known that I wanted to study how China plan to tackle a sustainable tran-sition in the years to come I saw my chance when CBS announced PhD scholarships in

DanishEuropean-Chinese social science research in collaboration with the newly es-tablished Sino-Danish Center for Education and Research (SDC) and started my PhD in October 2011My PhD project focuses on the Chinese energy sector more specifically the rapidly growing part of the energy sector engaged in renewable energy Here I examine Chinarsquos second largest source of electricity gene-

eration hydropower In recent years China has become increasingly focused on reduc-ing CO2 emissions While some countries such as the US and Australia are decommis-sioning hydropower dams China is looking to large-scale hydropower construction as one of the solutions to a future clean energy supply This means that hydropower devel-opment plays a central role in Chinarsquos sus-tainable transition

However utilization of hydropower is con-troversial not least in China and has met increasing resistance in recent years particu-larly from Chinese and international NGOs the media as well as the scientific commu-nity Critique is most often focused on how or if social and environmental sustainability can be ensured in such large scale projects as the social and environmental impacts of large scale hydropower development are very complex and difficult to measure More gen-erally the viability of relying on hydropow-er as a future source of energy is also being questioned One of the major concerns here is the overarching issue of climate change ie glaciers shrinking and yearly water runoff decreasing This means less stable water flow for hydropower and less water for other pur-poses such as agriculture water supply for down-stream countries etc

By Louise Lyngfeldt Gorm Hansen Asia Research Centre Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) ndash sinodanishcenterdk

M

Picture from SinoHydro promotion material 2011

Research

31CSQ

In contrast to for example the wind power sector in China in which many foreign com-panies have invested the hydropower sector is dominated by a few large state-owned en-terprises Our knowledge of Chinese state-owned enterprises is still limited and there-fore my PhD project is also part of a larger research project at the Asia Research Centre with focus on Chinese state-owned enter-prises and the reform of the public sector in China

In combining these interests my PhD exam-ines how Chinese state-owned enterprises in the hydropower sector tackle the demand to expand hydropower development to help reduce Chinarsquos CO2 emissions while be-ing under increasing pressure to deliver on sustainability principles in the planning and execution of large scale hydropower pro-jects The pressure comes mainly from NGO organizations the media and the scientific community both at home and from abroad I am conducting a case study focused on a specific river in south-western China which has ndash until now ndash not been fully developed for hydropower and the plans for addition-al hydropower dams on the river are still undergoing assessments The project has continually stalled due to disagreements between Chinese government officials at all levels NGOs the media the increasingly deregulated but still state-owned Chinese hydropower companies and the scientif-ic community However the project has very recently been reopened and so will go through another round of assessments in the near future The case is an excellent example of the complexity of hydropower develop-ment decisions in China but it also highlights some of the social and environmental conse-quences of the global push to decrease CO2 emissions

China plays and will continue to play an increasingly important role globally in the years to come However the country also fac-es enormous challenges - not least regarding the environment These challenges also affect economies in Western Europe - for better or worse My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective so

that we here in Europe and in Denmark can more knowledgably and actively engage with China to help solve some of these difficult challenges that eventually affect us all In do-ing this I contribute to gain a better under-standing of the Chinese perspective on envi-ronmental sustainability that can be of use to companies wanting to engage in the Chinese renewable energy sector

My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective rdquoldquo

Picture of the case-river taken by the author in 2012

32 CSQ

FROM BLUEPRINT TO PRACTICE

ENERGY EFFICIENT CONSTRUCTION

By postdoc researcher Satu Reijonen Department of Organization CBS

In the EU almost one third of CO2 emis-sions are attributed to energy used in the construction and use of buildings (FIEC

2007) It is therefore not surprising that the construction sector has recently been subjected to a substantial amount of policy measures to combat its negative effects on climate change In Denmark the state has posed new thresholds for the energy efficien-cy of new buildings including a plan for con-tinuous improvement in the area This far the industry has responded well to these stricter performance requirements In the future re-quirements will rise to levels that are not that easily achieved in the coming years build-ings will have to use 25 less energy than in year 2008 How can these ambitious goals become business as usual

One of the most discussed ways besides add-on technologies such as windmills and solar panels to enhance the energy efficiency of a building is through an energy efficient phys-ical design In practice this means reduction of energy used for heating cooling down and lighting of the building through an optimal orientation and dimensioning of the build-ing

Integrated energy design contrary to add-on technologies can be achieved on a rath-er modest additional budget This should be good news for the sector that today is eco-nomically pressed Indeed today many low energy building projects claim to use the in-tegrated energy design method (IED) when seeking to meet the most ambitious energy related goals In this commentary I wish to discuss some challenges related to the imple-mentation of this design tool

The integrated energy design method sug-gests that one of the main problems in not achieving energy efficiency is that energy related concerns become integrated into the design process too late The method consists of two elements the first of which addresses the need to bring in energy related knowl-edge throughout the design process It sug-gests that design teams ought to be multidis-ciplinary and that architects engineers and experts should work together either co-lo-cated or in a series of workshops Further-more it suggests systematizing energy quali-ty follow-ups into the design process This is all very relevant and inspiring

Oddly enough a closer look on the actual design practices reveals that few seem to ac-tually follow the method of integrated energy design to the point This poses an interest-ing question about the challenges related to the use of such management technologies as vehicles for increased energy efficiency in construction Maybe it is about time practi-tioners and researchers ask themselves what are the boundaries of and challenges related to the use of these tools ndash and what else is required for organizing for more energy effi-cient building design processes

A revolution of relations

Integrated energy design points to the need to bring energy related expertise into the de-sign process at an earlier point In order to achieve this cooperative practices between different professional groups are advocated for Historically energy experts have most-ly been used to respond to rather advanced architectural plans Shared workshops and co-localization suggest a change in these business as usual relations But are they pos-sible and what type of changes do they ac-tually imply in order to function as wished

Research

33CSQ

Satu Reijonen is postdoctoral scholar at the Department of Organization at CBS In her on-going research project she investigates how architects and energy engineers two different profes-sions cooperate and coordinate their work regarding energy related ques-tions in construction design The ways in which relations between and roles of these professions become consti-tuted through socio-material arrange-ments are a central topics in her work Besides studies of work Satu has con-ducted research on environmentally friendly products and markets

ABOUT SATU RAIJONEN

The initiation of this type of new working forms is certainly beneficial for energy effi-cient design However for several reasons they are more difficult to make work than one would assume While it may sound rea-sonable it is after all a tall order Integrating energy related practices into an environment where different visions professions and in-terests meet and the divide between what one profession does is clearly and historically demarcated is demanding While architects need to make room for the intervention of energy experts into the creative work energy experts have to become capable of working creatively and relate to and follow the visual and aesthetic cues from architects In order to work these kind of changes in the profes-sional roles and relations have to resonate with the skills and visions of individual work-ers not only management level design strat-egies It is not surprising that organizational change scholars remind us of the possibility of loose coupling from the strategies placed at the management level (March 1981) What integrated energy design suggests is a kind of a revolution in the ways in which both the architects and the energy engineers envision their role and space of mobility

Linear tools in an unlinear design process

Integrated energy design suggests that the energy performance of the emerging build-ing design be followed up at certain points during the design process The method de-picts a rather mechanistic and linear under-standing of a design process consisting of phases within which iteration may occur While energy related issues may be dis-cussed as quality goals during these phases the method places a lot of emphasis on the check ups performed in the transition from one phase to another Design processes how-ever can also be characterized in a different manner unlinear exploratory and whirl wind type of practices where clear cut phases hardly exist (Akrich 1992 Van de Ven et al 1999) This also applies to the architectural design processes where the object of the de-sign is emergent (Yaneva 2009) This entails that the product the building may change in unexpected ways during any day of the de-sign process If this alternative description of the design processes is viable delegating energy related issues to some predetermined check up episodes may strike a false accord and indeed be contradictory with the aim of enhancing coordination and cooperation between professional groups What happens in between the predetermined checkups may very well be where the energy efficiency of the building becomes configured and where the intervention from the energy experts

would come most needed Perhaps this is why the best performing projects do not blindly follow the steps of the IED method Check ups however and no doubt play a role in verifying and making visible the energy performance for partners outside the design team

Integrated energy design as many other sus-tainability standards and guidelines make visible systematize and legitimize the ex-istence of environmental management and sustainability issues in organizations and work processes In this such way tools create awareness and legitimacy for environmental and sustainability issues The integrated en-ergy design method also suggests a possible way of thinking about what type of design practice might help us to achieve the stricter energy requirements of the future It howev-er falls short in becoming the change agent it suggests This is hardly surprising as a meth-od or a standard of any kind should only be seen as a possibility or as an opening for an inquiry of what the practice could be about Reconfiguring a well established practice is hard work and it would be foolish to trust that a design method would achieve it by itself What the method does is to alert us of the more profound changes in the pro-fessional roles and relations that is needed in order to enable the change However the method due to its rather mechanical under-standing of the design process may come to work against its own ambition of integrating energy issues into the design work In its quest for integration the method defines at which points in time the architectural and the engineering project has to be checked for its energy performance This approach may lead to bringing in energy related concerns in some artificially created points in a design process which may additionally compart-mentalize energy related issues from where the design really happens

Integrated energy design as many other sustainability standards and guidelines make visible systematize and legitimize the existence of environmental management and sustainability issues in organizations and work pro-cessesrdquo

ldquoLiteratureAkrich M (1992) The De-Scription of Technical Objects in Shaping Technology Building Society Studies in Soci-otechnical Change eds WE Bijker and J Law The MIT Press Cambridge Massachusetts pp 205-224

FIEC 2007 The impacts of buildings on climate change httpwwwbuildingsplatformeuepbd_publicationdocFIEC_Memo_p2919pdf on 1222008

March JG (1981) Footnotes to Organizational Change Administrative Science Quarterly vol 26 No 4 pp 563-577

Van de Ven A D Polley R Garud and SVenkataraman (1999) The innovation Journey Oxford Oxford Univer-sity Press

Yaneva A (2009) The making of a building A pragmatist approach to Architecture Bern Peter Lang

More about integrated energy design(IED)

httpwwwintendesigncomosloIntendnsfAttachmentsGuideline_Version_2pdf$FILEGuideline_Version_2pdf

34 CSQ

The climate challenge in

shipping

ldquoGlobal shipping faces two major challenges both of which are caused by its reliance on fossil fuelsrdquo

By Reneacute Taudal Poulsen Department of Innovation amp Organizational Economics

RENEacute TAUDAL POULSEN

ASSOCIATE PROFESSOR DEPARTMENT

OF INNOVATION AND ORGANIZATIONAL

ECONOMICS COPENHAGEN BUSINESS

SCHOOL

orecasts show that the shipping indus-tryrsquos CO2 emissions will most likely continue to rise in the next two to

three decades as demand for world sea-borne trade will expand At present global shipping accounts for approximately 33 per cent of global CO2 emissions but this share will most probably increase in the coming years if many onshore industries succeed in their aims of reducing emission levels

At the same time rapidly rising fuel costs put heavy strain on shipping company budg-ets Historically and until very recently fuel costs were only a minor concern for ship-ping companies but now they often exceed 60 per cent of variable operational costs Fuel savings made through energy efficiency improvements thus represent a win-win sce-nario for the shipping industry and for so-ciety at large They simply make good sense for everyone

Despite the strong incentives for fuel sav-ings numerous studies have demonstrated that shipping fails to implement cost-ef-fective measures to reduce fuel consump-tion Fuel-saving technologies are readily available in the market and in many cases pay-back periods are very short (less than a year) Changes in operational habits which require few if any investments also hold a significant potential for fuel savings

Global shipping thus holds several classic examples of energy-efficiency gaps Gaps occur wherever cost-effective measures to improve energy efficiency fail to materialize The causes for energy efficiency gaps have been a favourite research topic within the field of energy economics for decades and economists sociologists and political scien-tists have been able to identify several means to bridge the gaps However within the mar-itime domain energy efficiency gaps and the climate challenge remain neglected issues Legal barriers

Shipsrsquo fuel consumption rises steeply with speed Hence slow-steaming or just minor speed reductions can lower consumption and emission levels significantly Since oil prices started to rise rapidly a few years ago shipping companies have indeed resorted to various slow-steaming practices and com-panies which succeed in this regard have been able to gain competitive advantages In other words actors in the industry are trying to bridge the energy efficiency gap However and in spite of the strong price signals from the rising fuel prices a potential for fuel sav-ing through slow steaming still remains

FNew CBS research project

A new three year research project at CBS under-

taken by Reneacute Taudal Poulsen for the Department

of Innovation and Organizational Economics will

examine the climate issues bringing insights from

energy economics and innovation management

into the field of shipping economics The project

which is financed by The Danish Maritime Fund

runs from 2012 to 2015 The project asks why en-

ergy efficiency gaps continue to occur in shipping

and how shipping companies and the maritime

industry at large can use innovative business

models and process innovation to turn the climate

challenge and the rising fuel costs into a business

opportunity Energy efficiency gaps occur both

in daily operations and when investments in new

vessels are made This article will briefly present

two examples of energy efficiency gaps from

the operational level and some of the preliminary

findings of the project

References

Jaffe AB and RN Stavins 1994 lsquoThe energy efficiency gap What does it meanrsquo Energy Policy 22 (110) 804-10IMO 2009 Second IMO GHG Study 2009 London International Maritime OrganizationMoriarty P amp D Honnery 2012 lsquoEnergy efficiency Lessons from transportrsquo Energy Policy 46 1ndash3Poulsen Reneacute Taudal 2012 lsquoEmissions and energy efficiency - the twin challenges for shippingrsquo Mercator Maritime Innovation Research and Education MarchJune 447-454

Reneacute Taudal Poulsen is Associate Professor at the Department of Innovation and Organizational Eco-nomics at CBS He is also affliated with the Centre for Shipping Economics and Innovation at CBS Reneacute Taudal Poulsen holds a PhD degree in marine environmental history from the University of Southern Denmark and he has worked within the field of maritime business studies for the last seven years He has published in such journals as Fisheries Research Business History and Scandinavian Economic History Review

His current research intersts concern the environmen-tal challenges faced by the global shipping industry and business model innovation in the maritime domain

Research

35CSQ

It is clear that shipping companies cannot fully bridge the energy efficiency gap alone In fact factors beyond the control of in-dividual shipping companies and various structural or legal barriers prevent shipping from fully realizing the slow steaming po-tential

Port congestion remains a world-wide prob-lem and causes ships to spend remarkably long periods inactive Despite the financial crisis and the large drop in shipping freight markets after 2008 many loaded vessels sit at anchor outside ports waiting for berths In some cases they wait for a few hours In other cases for days weeks or even months Instead of waiting the ships could have re-duced speeds and saved fuel And the de-livery and the loading of the cargo in port would not have been delayed in any way However in many cases shipping companies or ship operators cannot reduce speed in spite of port congestion

Educational barriers

Energy efficiency gaps in shipping are also evident when the fuel consumption levels of sister ships are compared Even though the vessels are identical and operate in the same waters studies have shown that their fuel consumption may differ by several Decisions made by the crews onboard and by managers in the onshore organizations clearly influence the level of fuel consump-tion For instance if a captain selects only very small course deviation margins when coding the autopilot of the ship the shiprsquos rudder will move frequently to keep the ship on the exact course all the time This will slow down the ship and cause higher fuel consumption than if the captain had allowed for slightly wider margins and the wider margins would not have any effect on the safety of the ship Decisions made by the commercial depart-ments eg on how to crew the vessels how to monitor vessel fuel consumption or which new equipment to install onboard may also

have a large impact on fuel efficiency and emission levels If shipping company man-agers can nurture a fuel saving culture this could potentially make a difference Since 2007 or 2008 shipping companies have in-deed started to facilitate such organizational changes but educational barriers remain a problemOnshore truck drivers are now offered fuel saving courses but fuel-saving is not a major part of the traditional curriculum in nautical schools or in the commercial education of shipping trainees For good reasons the nau-tical educations have focused on maritime safety but this has caused them to neglect the climate challenge in shipping and the is-sue of fuel saving In fact no single nauticaltext book on maritime fuel savings has yet been published and according to teachers and students in the nautical schools this serves as an educational barrier to ener-gy-efficiency improvements The technical level of education for commercial employees in shipping companies may also hinder im-provements in energy-efficiency Some com-

mercial shipping employees may not have sufficient training to fully see and acknowl-edge the consequences of their decisions on fuel consumption In short it seems that fuel awareness and the educational systems have responded more slowly to the climate chal-lenge than the rise in fuel prices may other-wise suggest

For shipping to bridge energy-efficiency gaps education ndash both nautical and com-mercial ones ndash clearly is an area to set in Here the potential for innovative solutions is both evident and pertinent Changing educational systems and awareness is no easy task bearing in mind the global nature of the shipping industry and international crewing of the world fleet It is clear howev-er that educational upgrading is necessary for shipping to effectively address the cli-mate challenge effectively

Charter parties between ship-operators and shippers state a specific time of arrival for the vessel and in order to avoid claims ships proceed to port accordingly regardless of berth availability Experiments with new more flexible charter parties which allow for slow steaming in case of port congestion have recently been made Shipping compa-nies have generally been enthusiastic about this flexibility but often shippers remain skeptical Lack of trust between shippers which need the loading of their cargoes as soon as possible and shipping companies may be a cause for this discrepancy Even in cases where the savings made from slow-steaming are split between shipping companies and shippers shippers have re-mained skeptical Port queuing systems may have a role to play here

Many ports including some of the major container iron ore coal and grain ports serve ships on ldquofirst-come first-servedrdquo ba-sis Ships only receive their ldquoticketrdquo in the

waiting line upon their arrival at the port Again lack of trust between the ship-oper-ators shippers and the port authorities may explain this phenomenon Moreover port authorities currently do not have incentives to change queuing practices because they cannot gain a share in the fuel savings made from slow-steaming

The problem is particularly strong in the major tramp shipping segments of tanker and dry cargo shipping where vessels act as ldquotaxis of the seardquo serving numerous shippers and rarely calling at the same ports If the fleet from a shipping company only calls at a particular port once a year and the compa-ny has very short-term relations to individ-ual shippers building trustful relationships between the parties remains a major chal-lenge Solving this problem and realizing the full potential of slow steaming will require systemic innovation in shipping and port systems and further studies are required to identify possible solutions

36 CSQ

The Wind turbine industry -

Emerging global innovation networks in Europe and China

The wind turbine industry has developed into a global network encompassing a large amount of diverse actors within innovation production and installation of wind turbines across the globe

By Stine Haakonsson and Julia Kirch Hollitsch Department of Business amp Politics CBS

market for wind energy Chinese actors have turned China as a location into another im-portant lsquohubrsquo in this network This has led to new forms of innovation collaborations between European and Chinese actors The result has been a complete re-configuration of the industry over the past decade In the International Business and Economic Geog-raphy literatures the development of global production networks in which lead-firms be-come orchestrators of dispersed production

enmark has traditionally played a key role as an lsquoinnovation hubrsquo and com-

panies in Denmark remain among the lead firms within the wind turbine industry Re-cently the industry has reorganized from being located predominantly in the Triad regions (mainly in Europe and the US) to becoming a globally dispersed industry This development can partly be explained by de-velopments in international and national politics Due to the growth of the Chinese

activities in globalized value chains is well established theoretically as well as empiri-cally In the globalization process lead firms relocate production activities to low cost lo-cations by off-shoring and through vertical disintegration and outsourcing to specialized suppliers Producers of wind turbines are no exception However until recently the mar-ket and innovation activities remained con-centrated in Europe and US

With the recent focus on global politics for a post-carbon society the market for wind tur-bines has experienced an immense growth and a high degree of market globalization New locations have developed into main markets One of these is China which since 2010 has been the largest market for wind turbines in the world (in capacity installed) The globalization process in the wind tur-bine can be explained by a combination of offshoring of production by European lead firms mainly through foreign direct invest-ment and establishment of domestic lead firms in emerging markets In 2010 there were four Chinese-owned companies among the top-10 producers of wind turbines as compared to 2003 where all firms on this list were from Europe and the US

D

Julia Kirch Hollitsch

Stine Haakonsson

Stine Haakonsson and Julia Kirch Hollitsch from Depart-

ment of Business and Politics CBS are engaged in the

Sino-Danish Center for Research and Education (SDC)

project on Wind Energy in China Both research on the

current restructuring of industries and firms at the glob-

al level (outsourcing off shoring global value chains)

In particular their research is on 1) the restructuring of

innovation and RampD activities into global innovation net-

works(GINs)2)thechangingroleofemergingmarkets

(ChinaIndiaBrazilSouthAfrica)intheseemergingGINs

and 3) technology transfer and capability building related

to renewable energy

Research

37CSQ

by adapting their products to the Chinese market and through cost-out development activities in the new locations primarily China

As a result the wind industry is today highly knowledge-intensive and internationalized Due to increased attention and investments in sustainable transition policies and car-bon-reducing technology China has over the past decade developed into a high prior-ity investment area for wind turbines Also Chinese companies are upgrading technol-ogy and innovation from the global firms through integration into GINs Moreover the production and innovation networks for wind energy become highly complex and consist of many different suppliers of com-ponents (blades gear boxes control systems bearings) resulting in a variety of network linkages among suppliers of different com-ponents and the wind turbine producers

From our empirical data including more than 40 in-depth interviews collected in 2011 and 2012 in the wind turbines indus-tries in China and Denmark we have identi-fied some very interesting patterns We have identified very different characteristics of the GINs established by the Chinese wind tur-bine industry and the European wind tur

Emerging Global Innovation Networks

Innovation processes are also moving be-yond the boundaries of individual compa-nies and national innovation systems Firms engage in cross-border innovation networks spanning different innovation systems which may be national regional or sectorial in or-der to stay competitive in the global econ-omy Chinese lead firms are entering this scene too The result is globally organized networks of interconnected and integrated functions and operations by firms and non-firm organizations engaged in the develop-ment and diffusion of innovations so-called Global Innovation Networks (GINs) Lead firms internationalize innovation through strategies of exploitation global generation of innovation and global techno-scientific collaborations Chinese wind turbine pro-ducers ndash acknowledging their resource and capability deficiency ndash pursue strategies of innovation network integration through strategies of global generation of innovation These firms link up with specialized Europe-an actors such as core component suppliers through partnerships and networks in or-der to tap into the technology of firms from developed countries and upgrade Mean-while European companies internationalize through exploitation strategies for example

bine industry Although Danish and Chinese actors are experiencing a re-organization of activities and establish networks and globa-linnovation strategies the result is very dif-ferent

The industry from Europe and US

The industry from Europe and the US hosts the lead firms in terms of core technology de-velopment Denmark has traditionally played a key role as lsquoinnovation hubrsquo in technology development and global lead firms such as Vestas and Siemens Windpower (previously Danish lsquoBonusrsquo) took its start already in the 1970s The core competences of the Danish wind turbine innovation system are based on large testing facilities and long track records mainly due to the long time-line of experi-ence The wind industry goes 40 years back and therefore Denmark has a good knowl-edge pool within establishing wind farms (aerodynamics minimizing power loss in energy transmission wind mapping and other installation-related technologies)

38 CSQ

that will make it possible to finance the pro-jects ldquoFrom then on our wind turbine pro-jects developed very fastrdquo(Interview Wind Engineer Chinese Academy of Sciences) Thus this law was a milestone for elevating renewables to a strategic position in China or as expressed by a European lead-firm ldquoWhat drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick offrdquo

Until the turn of the millennium Chinarsquos wind energy industry was largely built on donors acquisition of finished wind turbines and licensed technology from European companies spread on a very small scale into the local industry during the mid 1990s Chi-nese wind turbine technology has evolved from imitation reverse engineering and licensing in the 1980-90s combined with assistance from foreign consultants One example is how DANIDA funded a project in 1986 for Goldwind in Xinjiang which imported 13 units of 150 kW lsquoBonusrsquo (now Siemens Wind Power) turbines

To get beyond the stage of pure imitation several policies have been introduced with the intent to upgrade Chinese manufacturers to obtain indigenous innovative capabilities Policy programs were introduced to enhance Chinese companies to develop wind energy subsidizing wind energy RampD expenditures at varied levels over time establishing a re-newable energy fund and through the ldquo863 Wind Programrdquo under the Tenth Five-Year Plan (2001-2005) Local content require-ments were put in place in which develop-ers of wind energy projects were required to source 70 pct of the content in China These policies ndash which essentially forced foreign manufacturers wishing to sell wind turbines to the Chinese market to establish China-based manufacturing facilities ndash were only removed recently (in 2009) One result was that the foreign companies had to up-grade local suppliers of components

Due to the technological complexity many European (and hereby also the Danish) firms are vertically integrated and have most com-ponents produced in-house or with regular specialized suppliers According to these companies the different parts need to be well adjusted to each other to some extent even co-developed in order to enhance effi-ciency and the lifetime of the wind turbine Likewise the European industry has expe-rienced a concentration of actors with the result that there are only relatively few but large manufacturers in Europe (the larg-est ones are Vestas Siemens Gamesa and Enercon) Together these four companies accounted for about 35 of the global mar-ket in 2010 By seeing the wind turbine as an integrated system these lead firms aim at producing lsquothe Rolls Roycersquo model wind turbines These are strong in terms of qual-ity and standards but generally expensive These firms learn cost-out techniques from their engagement with partners in China

The Chinese Wind Turbine Industry

Today the Chinese wind turbine industry is overly competitive It entails more than 80 wind turbine manufacturers and the Chi-nese market boasts the highest growth rates internationally with an average growth rate of 968 percentages annually in the last three years Several large domestic Chinese wind turbine manufacturers have emerged within the last decade Sinovel and Goldwind take the largest share followed by United Pow-er and Ming Yang just to mention some of them As of the end of 2010 these four were A major driver for the development of the Chinese wind energy market has been the establishment of an institutional context as a comprehensive concerted policy frame-work addressing the development of renewa-ble energies This change in the institutional context was first reflected clearly in the 11th 5-year-plan (2006-2010) which explicitly linked environmental sustainability to the key goal of establishing what was called a harmonious socialist society signalling a socially environmentally and economically sustainable economy With the Renewable Energy Law from 2005 the Chinese wind energy industry really took off as it explicitly seeks to ensure that renewable energy pro-jects have an outlet for their output at prices

Technical barriers and the role of GINs for a post-carbon society

Despite high ambitions in terms of devel-oping innovative capabilities Chinese pro-ducers still produce almost exclusively for the Chinese market However Chinese wind turbine manufacturers have recently started an internationalisation process and some are approaching international markets Not least for tapping into new knowledge

Europe (and Denmark in particular) is per-ceived as a main location from which the Chinese companies can learn more A cou-ple of Chinese companies have already set up RampD centres in Denmark European firms have also initiated RampD centres in new lo-cations primarily China and India In other words GINs can be identified

Our research also points towards important barriers for GINs in the wind turbine in-dustry and for approaching a post-carbon global society Most importantly are the technological barriers intellectual property rights quality issues and issues of limited appropriability of knowledge Further the institutional framework remain relevant for displaying how the sector and the emerging GINs are embedded institutionally socially and technologically Whether actors trans-act knowledge technology and know-how through cooperative innovation activities also depends on how core the technology of a given technology is Still as the market grows in China it seems to have matured in Europe because of changing policies on re-newable energy To sustain the position as a global lsquohubrsquo and world leader in wind tech-nologies there is a strong need for support in Europe as this research really shows how fast the Chinese industry is moving One major result is how important networks are for upgrading companies and it seems that Chinese firms perform better in network strategies and manage to tap into relevant knowledge than the European firms

What drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick off rdquoldquoInterview Wind Engineer Chinese Academy of Sciences

39CSQ

Social Enterprise World

ForumNadine Koumlcher from 180Degrees recounts her experience from the

conference on

Rio de Janeiro Brazil 2012

In the numerous panel debates and parallel track discussion it became clear that Impact Investment is a hot topic among both social entrepreneurs and impact investors a diverse group consisting of corporations founda-tions and potential donors However various obstacles impede a harmonious relationship between the twoSocial enterprises face structural challenges to make themselves more appealing to im-pact investors They have to become more transparent and increase their accountability This includes improving their impact assess-ment and reporting tools However despite much discussion no consensus could be formed on how to optimally conduct im-pact assessment One of the most frequently proposed methodologies involves the use

From the 16th to the 18th of October the CBS Sustainability Platform granted me the opportunity to attend the 5th Social Enter-prise World Forum which took place in Rio de Janeiro Brazil This yearly international conference focuses on social enterprises and their effectiveness in solving social challeng-es The overall theme of the 2012 conference hosted by NESsT was ldquoSocial Enterprise Investing for Impactrdquo Thus for three days over 180 speakers and 650 delegates from 30 different countries shared their experiences regarding impact investment and discussed possibilities to attract new investment by both the public and the private sector for so-cial enterprises

of control groups Story-telling has also been men-tioned to be a powerful tool to provide investors with a proof of outcomesSocial investors are willing to accept returns just below the market rate in exchange for a social return However large profits are still expect-ed and many social enter-prises are afraid of being unable to generate them Social enterprises typically operate on a small scale and are not used to undertake large projects with huge sums of investment given to them Many are too small for social investors to be

attractive as costs are similar for small and large investments although larger invest-ments have a higher payoff

Nichole Echert the CEO of NESsT there-fore pointed out that it is necessary to align expectations between impact investors and social entrepreneurs and to be patient in establishing a relationship between the two groups The expected financial return has to be reasonable close to covering the costs of operation and social returns have to be re-ported to investors by use of clearer criteria

By Nadine Koumlcher Director of Branch Development180 Degrees Consulting Limited

ldquoSocial Enterprise Investing for Impactrdquo

Students

40 CSQ

A highlight of the con-ference was definitely the site visit to a social enterprise project in a recently pacified fave-la It brought further insights on the great variety of social enter-prises that exist in Bra-zil and their missions and struggles We visit-ed a community center at which Comitecirc para

Democratizaccedilao da Informaacutetica (CDI) uses technology to fight poverty and to stimulate entrepreneurship CDI has formed a corpo-rate partnership with Coca Cola which in the same building teaches young locals how to write a CV and find a job Talking to the young locals at the center it became apparent that an increased self-confidence and the in-spiration they get from meeting former now employed participants of the project (eg at Coca Cola) is what they valued most of being part of the class

Participating at the conference was definite-ly a unique and valuable experience I would not want to miss as I tremendously improved my knowledge in the field of social enter-prises through attending the numerous pres-entations and discussions and further met so many inspiring social entrepreneurs impact

In addition it has been stressed that the problem is not a shortage of investment capital (even though the government could promote more impact investment by for instance granting tax breaks) but how to deploy it Social entrepreneurs also have to be aware of the different advantages and dis-advantages of the various types of capital It has to fit their process of establishment and it has therefore been suggested that funds and grants are most optimal in the start-up phase to cover such costs as capacity train-ing There is generally a lack of this early stage financial support Following the initial phase strategic philanthropy money would be most appropriate before impact and final-ly equity investment is sought Furthermore new ways of investment which fit the social enterprise world have to be created replac-ing the current situation of trying to fit social enterprises into the current financial world

investors and students with a genuine inter-est in the field

Participating at the conference was definitely a unique and valuable experience rdquo

ldquo

Social Enterprise World Forum 2013 in

Calgary Canada

The TRICO Charitable Foundation in part-nership with the Social Enterprise Council of Canada and the Social Finance Forum has been selected to host the 6th Annual Social Enterprise World Forum SEWF 2013 will take place October 2-4 2013 in Calgary Al-berta The Forum will present the Canadian social enterprise movement with opportuni-ties to engage learn and share on the inter-national stage

SEWF 2013 will be a gathering of over 1000 Canadian and international delegates who are involved in the social enterprise move-ment where the blending of social and fi-nancial values is core to business Attendees will consist of practitioners (from all sec-tors) funders investors supporters elected officials and public servants from around the world

Nadine Koumlcher

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 6: CBS Sustainability Quarterly 2013 #1

6 CSQ

Six New Sustainability

Clusters Launched at CBS The CBS Sustainability Platform is happy to announce the launch of six new Sustainability Clus-ters in 2013 With the energy of a number of CBS colleagues that have taken on the responsibility of leading the Clusters the Platform hosted a kick-off meeting in January where focus and ideas for future activities of the Clusters were discussed among the Cluster leaders

Green Innovation and New Business Models

Corporate Governance and Leadership for

Sustainability Strategy

Sustainable Transitions in Developing and

Emerging Economies

Governing Sustainability

Communicative Dimen-sions of Sustainability

Sustainability in the Post-Growth Economy

he purpose of the Sustainability Clus-ters is to contribute to sharpen the

definition of what CBS does and will do on sustainability for the future The Clusters will thus work independently with researchers across CBS to highlight and position sustain-ability competences at our business school and facilitate multidisciplinary collaboration within and beyond CBS

With seed funding from the Platform the Cluster leaders plan for a number of activi-ties over the next few years within research education and outreach working as lsquocon-necting hubsrsquo for researchers at CBS that are engaged or wish to become engaged in spe-cific thematic areas within sustainability

Clusters will develop in-itiatives within research education as well as outreach in a variety of mixes Some will focus their efforts on developing new con-tent for Sustainability teaching and integrat-ing it into new andor existing courses and programs others will focus on developing new research projects and applications for external funding involving international re-search colleagues and corporate partners Some Clusters plan to facilitate the author-ing of journal publications and books as well as summarizing relevant literature in the field and making it available to inter-ested scholars at CBS There will also be efforts to work closely with students and external stakeholders on conferences sem-

inars and workshops and to invite interna-tional researchers and practitioners to share their thoughts on sustainability Activities will naturally depend on the particular inter-est of the CBS researchers that wish to take part in the Cluster

Cluster leaders as well as the Sustainability Platform team would like to hear from you on new ideas for activities comments or questions or on whether you would like to be engaged

T

CSQ Update

7CSQ

The Cluster on Green Innovation and New Business Models focuses on discussions and challenges around the increasing problems of global warming resource scarcity and en-vironmental deterioration which have a sub-stantial and comprehensive impact on future business conditions Companies must devel-op strategies to mitigate risks from supply disruptions social unrest rising materials costs and pressures from regulators NGOs and the general public The efficient use of resources will be an important competitive parameter and the need for sustainable pro-duction and resource use will open up new opportunities for innovations in technology products services and business models

The focus of the Cluster on Sustainable Tran-sitions in Developing and Emerging Econo-mies stems from the notion that developing and emerging economies (DEEs) are one of the main engines of contemporary growth in the global economy They face massive transitions in economic social and envi-ronmental terms In order to explain how business in these countries can contribute to sustainable growth the Cluster explores (1) innovative approaches and North-South partnerships on technology co-production

This Cluster will explore and analyze theo-ries frameworks and empirical evidence on the conditions and tools for promoting and managing sustainable innovation and busi-ness models with focus on environmental issues The Cluster will seek a coordinated alignment of both technological (and prod-uct and process) development and business model innovation including market plat-forms and infrastructures

Professor Jens Froslashslev Christensen (jfcinocbsdk) and Associate Professor Christian Erik Kampmann (cekinocbsdk) the De-partment of Innovation and Organizational Economics

and transfer within clean-tech industries (2) green innovation networks and capacity building in DEEs (3) social entrepreneur-ship and social business models in DEEs and (4) sustainability strategies of global firms that have implications in DEEs (Base-of-the-Pyramid markets Sustainable Value Chains) Associate Professors Soslashren Jeppesen (sjiklcbsdk) the Department of Intercultural Communication and Management and Stine Haakonsson (shdbpcbsdk) the Depart-ment of International Business and Politics

The six CBS Sustainability Clusters will be

focused on the following themes

Green Innovation and New Business Models

Sustainable Transitions in Developing and Emerging Economies

Stine Haakonsson

Jens Froslashslev Christensen

Christian Erik Kampmann

Soslashren Jeppesen

8 CSQ

The Cluster on Governing Sustainability takes it starting point in the recent flourish-ing of private governance of sustainability initiatives Private actors such as business firms and civil society groups have created numerous initiatives addressing pressing so-cial and environmental problems both at the national and transnational levels Some of these are strictly private others are collaborative efforts with the public sector In this Cluster we are particularly interest-ed in examining corporate codes of conduct public-private partnership agreements labe-ling schemes and standard setting by mul-ti-stakeholder initiatives with a focus on (1) legitimacy and accountability processes and

strategies related to private sustainability governance (2) the effectiveness and impact of sustainability initiatives (3) the dynamics of the relationship between hard and soft law (4) the influence of the state on private sustainability governance and (5) the or-ganization of sustainability management in transnational firms Professor Andreas Rasche (ariklcbsdk) the Department of Intercultural Communi-cation and Management and Associate Pro-fessor Jette Steen Knudsen (jskdbpcbsdk) the Department of International Business and Politics

Governing Sustainability

This cluster invites for exploration of the communicative construction of sustainabili-ty across a variety of interests and stakehold-ers Organizations are traditionally under-stood as instrumental spaces for managers to produce products and processes towards a more sustainable society However increas-ingly organizations appear as social and moral spaces where the meaning and role of sustainability is communicatively negotiated and co-constructed and no definite agree-ment seems to be achieved across publics This development poses new challenges for business in their continous work to appear as legitimate participants vis aacute vis civil society the political system and other organization-alcorporate actors In this cluster we focus on (1) how communication of sustainabili-ty has become a strategic tool for managers working in business ngos and policy-mak-ing (2) how traditional and social media play

an important role in mediating issues of sus-tainability across publics (3) how marketing and branding of sustainability influences consumption and public opinon and (4) how different forms of political and corpo-rate communication (via persuasion facts dialogue etc) about sustainability raise questions about the democratic models that underpin sustainability discourses Against this backdrop the sustainability cluster brings together leading academics from a range of disciplines to explore the role and meaning of communication in a broad sense for the development of sustainability

Cluster leaders Professor Anker Brink Lund (abldbpcbsdk) the Department of Inter-national Business and Politics and Assistant Professors Julie Uldam (juiklcbsdk) and Anne Vestergaard (aviklcbsdk) the De-partment of Intercultural Communication and Management

Communicative Dimensions of Sustainability

Anne Vestergaard

Julie Uldam

Anker Brink Lund

Andreas Rasche

Jette Steen Knudsen

9CSQ

The Cluster on Sustainability in the Post-Growth Economy starts from the realization that the era of perpetual economic growth may be over The Cluster explores and devel-ops ideas and imaginaries of what a sustain-able post-growth economy might look like The purpose of such effort is to transform the end of growth from being the cause of social economic and ecological depredation into being an opportunity for the creation of new forms of economic organization that do not rest upon the condition of growth We ap-proach this challenge by starting to rethink some fundamental economic concepts from the perspective of a post-growth economy

What is a company What is work What is leadership What is money What is con-sumption What is a market And what is in fact economic growth The Cluster will ap-proach these questions theoretically by look-ing into their assumptions rooted in the par-adigm of growth capitalism and empirically ndash by studying actual practices of alternative economic organization Associate Professor Ole Bjerg (oblpfcbsdk) and Professor Bent Meier Soslashrensen (bmslpfcbsdk) the Department of Man-agement Politics and Philosophy

Sustainability in the Post-Growth Economy

The Cluster on Corporate Governance and Leadership for Sustainability Strategy focus-es on managerial behavior and performanc-es related to responsibility in corporations with a particular interest in how managers and leaders in firms relate to and behave vis aacute vis expectations to corporate sustainability strategies policies and action The Cluster will invite discussions that engage with how responsibility issues play a role in shaping systems and models of corporate governance and leadership and conversely how different models impact corporate responsibility and performancesThe emphasis will be placed on bringing into the management debate to what extent responsibility brings demands

for new management competences and man-agement models The Cluster is particularly but not exclusively interested in exploring the relationships between sustainability and corporate performances with (1) board of director characteristics (2) corporate owner-ship structures (3) shareholder activism (4) leadership approaches (5) ethical consider-ations regarding corporate governance and leadership and (6) comparisons of corporate governance and leadership approaches in a Scandinavian context vis-agrave-vis other global contexts

Associate Professor Bersant Hobdari (bhintcbsdk) the Department of Internation-al Economics and Management

Corporate Governance and Leadership for Sustainability Strategy

Bent Meier Soslashrensen

Ole Bjerg

Bersant Hobdari

10 CSQ

Writing a good business case

from a Hollywood perspective

Jenny Mead (left) picture from readthehookcom

On November 28 2012 Kirsti Reitan Andersen temporary project manager at CBS Sustainability Platform interviewed Senior Research-er Jenny Mead Darden School of Business University of Virginia in extension of her visit to CBS Jenny Mead was here to host a workshop and one-on-one sessions on how to write good business cases with a focus on sustain-ability

Interview with Jenny Mead Senior Researcher Darden School of

Business

Could you tell a little bit about yourself

ldquoI have been at Darden School of Business for the past 10 years I write cases about business ethics sustainability strategy and leadership I am not a business person at all but call my-self a writer because that is what I prefer I write stories I have worked in the film busi-ness in Hollywood where I worked as a De-velopment Executive It means that I looked for projects that could be made into movies Again I am not a business person at allIn the 1920s Harvard University started case-based teaching Darden followed through on the case tradition in 1950s Darden has con-tinued to focus on business ethics as key in educating students From the 1950s onwards

in the first year of undergraduate studies we have had a mandatory business ethics course This tactic has developed a large student body which is constantly aware of business ethics as an integrated part of business life The business ethics cases I write have an ele-ment of ethical ambiguity and decision-mak-ing that contains ethical considerationsrdquo You are visiting CBS to host a case-writing workshop and one-on-one sessions with as-piring case-writers What have the partici-pants gained from the workshop

ldquoThey get a primer of what a business case looks like They learn what a case looks like and are given an exercise where they have to

craft a case and have colleagues critique that The second day concerns teaching notes If a professor from another business school wants to teach it they can get the teaching notes that suggest how to teach the casesrdquo

What is a good case and why are cases ben-eficial for teaching

ldquoInstead of using textbooks in classes teach-ers can make use of business cases Generally a case should present a dilemma that has to be solved or a business decision that has to be made by the protagonist in the caseBusiness cases are a good way of placing the student in the shoes of a manager or decision maker Giving him or her the practical expe-

CSQ Interview

11CSQ

Writing a good business case

from a Hollywood perspective

Jenny Mead and Jonas Hedman from Department of IT Management at Copenhagen Busimess School

From the workshop at Copenhagen Business School

riences in a safe environment ndash no company is going bankrupt based on the decisions It is almost real world training but you are not in the real world A feature of case teaching at Darden School of Business is the use of small video clips of the protagonist in the business case Instead of students just reading about the protago-nist in the case the protagonist presents the problem or issue on video to create a lively teaching environmentrdquo

Do businesses actually think about ethicsThat is a good question and I believe there is

a growing awareness I am very impressed by Darden and the students Maybe it is because of the mandatory first year ethics course but the students are very concerned with CSR sustainability and values

I am currently working on a series of cases on conscious capitalism More and more businesses are adopting true values A shift has been made towards conscious capitalism The idea of conscious capitalism is that busi-nesses realize the value of good treatment to all stakeholders Businesses exist to create value for everybody

Relevant links

Darden Case Studies

The Olsson Center for

Applied Ethics (Jennyrsquos

employer)

The Business Roundtable

Institute for Corporate

Ethics

httpwwwcorporate-ethics

orgpublicationscase-studies

httpwwwdardenvirginia

eduwebOlsson-Center-for-

Applied-Ethics

httpwwwcorporate-ethics

org

12 CSQ

SUSTAINABILITY AND

DEVELOPMENT COOOPERATIONInterview with Minister for Development Cooperation

Christian Friis Bach

Did you know that 7 out of 10 of the fast growing economies can be found in Africa Or that DANIDA funds a programme in which CBS and other Danish universities work together with universities in Tanzania Ghana and other countries to increase the quality of research and uni-versity-level education in devel-oping countries

CSQ - Elisabeth Crone Linding amp Stefano Ponte sat down with the Dan-ish Minister for Development Co-operation Christian Friis Bach to hear about how the developing world is moving ahead fast ndash and why Denmark needs to keep up in order to stay relevant

I t is not every day that we meet with min-isters on the top floor of Asiatisk Plads

ndash the official home of the Danish Ministry of Foreign Affairs and DANIDA the inter-national development cooperation branch of the Ministry Nevertheless here we are over-looking the busy waters of the Copenhagen canal and looking forward to a long-planned rendezvous with Christian Friis Bach Min-ister of Development Cooperation since the autumn of 2011

Besides spending time in the academic ranks of Copenhagen University and the political spheres of the European Commission the Minister knows a thing or two about the de-veloping world he has previously devoted his

time to positions in DanChurchAid WWF World Wide Fund for Nature MSActionAid and the Danish Ethical Trading Initiative

In its current strategy DANIDA has put a new focus on green growth renewable en-ergy sustainable agriculture and innovative solutions to enable continued access to scarce resources ndash a quite green agenda in fact But how does this resonate in a developing world that is growing very fast According to the Minister perceptions are changing with more democratic political environments be-ing built

ldquoMore and more developing countries see green growth and sustainability not as stum-

bling stones but as building blocks of a fu-ture strong economy They recognize that in a world of natural resource scarcity and increas-ing prices on for example energy they need to adopt a different growth pattern More and more poor countries are buying into this And therefore we now have a unique opportunity for shaping the political framework and ena-bling environment to create more sustainable developmentrdquo

So how does a business school such as CBS fit into this equation What can we offer

This is a key question for us to ask As the Sustainability Platform was born out of the CBS Business in Society strategy we are in-

CSQ Interview

13CSQ

terested in looking for ways to address grand societal challenges such as ensuring sustain-able development

Christian Friis Bach recognizes that CBS as a research and educational institution has a role to play here ndash maybe even a bigger role than we play now Because even though CBS is known and regarded as a very internation-ally oriented university the Minister encour-ages CBS to go even further in sharpening its global commitment and profile

ldquoMany of the problems that we have related to growth and employment in Europe are not to be found in developed countries I hope that CBS continues to engage internationally in order to shape graduates to tackle global chal-lenges For example 7 out of 10 of the worldrsquos fastest growing economies are in Africa and here I would really urge CBS to have an even stronger engagementrdquo

CBS is involved in the Building Stronger Universities in Developing Countries Pro-gramme (BSU) which is a partnership be-tween research and higher education institu-tions in selected developing countries and all the main Danish universities The long-term goal of the initiative is to make the partici-pating institutions stronger by conducting joint research projects that offer knowledge and solutions to localdomestic and global challenges to produce better graduate pro-grams and for universities to play an increas-ing role in the economic social and political development of their own countries How-ever Christian Friis Bach also encouraged close dialogue with a broader set of partner universities in the developing world as an important way for CBS to shape its research and educational efforts and thus remain rele-vant in the future

Christian Friis Bach highlighted

ldquoIt is a big world And the world moves fast And I think the challenges upon our edu-cational system in Denmark are increasing every day When I go to South Korea China Latin America or Africa I see that they look increasingly towards each other for innovative solutions not towards Europe If we need to remain relevant we do have a challenge hererdquo

For example this means looking at the econ-omies in the world that are the most innova-tive These are in many cases in the develop-ing world so this is when CBS should invest when it comes to partnering in research educational development and knowledge exchange for example among faculty and students

The Minister also notes the advantages that can be gained from globalizing our institu-tions much more broadly and working across borders and academic fields for example on

The Building Stronger Universities in Developing Countries initiative amp CBS

ldquoBuilding Stronger Universities in Developing Countriesrdquo is a partnership between research and higher education institutions in developing coun-

tries and Danish universities The long-term goal of the initiative is to make the participating institutions stronger in the sense that they

bull playanincreasingroleintheeconomicsocialandpoliticaldevelopmentofthesocietiesinwhichtheyarelocated

bull functionasnodesofinnovationandknowledgeproductionprovidingsolutionstolocaldomesticandglobalchallenges

bull produceskilledandmotivatedgraduatesthatcancontributetothefurtherdevelopmentofthesocietiesandaddressthechallenges

faced

The ldquoBuilding Stronger Universitiesrdquo initiative has a structure with four thematic platforms Copenhagen Business School contributes to one of

the four platforms under the initiative the Growth and Employment platform which is a partnership between University of Ghana (UG) Kwame

Nkrumah University of Science and Technology Ghana (KNUST) University of Dar es Salaam Tanzania (UDSM) Sokoine University of Agriculture

Tanzania (SUA) and the major Danish universities From CBS Associate Professors Soslashren Jeppesen and Michael Wendelboe Hansen the CBS

Center for Business and Development Studies is part of the project which for example seeks to develop relevant PhD programmes strengthen

growth and employment relevant research activities and research collaboration and disseminate research findings to stakeholders

wwwbsuudorg

Students Sierra Leone (picture from umdk) Photo Joslashrgen Schytte

When I go to South Korea China Latin America or Africa I see that they look increasingly towards each other for innovative solutions not towards Europerdquo

ldquo

14 CSQ

health technology and business develop-ment in cooperation with developing coun-try researchers And we need to be good at a lot more than ldquojustrdquo development coopera-tion ldquoif we want to remain relevant for exam-ple in Africa on sustainable business we can-not afford to send people out who have worked isolated in the development community here in Denmark So instead of seeing development research as a separate discipline it needs to be integrated into everything we dordquo

That is why the Minister argues for more fo-cus on educating graduates that are experts and specialists but not necessarily within development cooperation Instead he says Denmark needs graduates that can develop the best possible solutions for the developing world within energy technology etc ldquoThe fast-growing economies in China Southeast Asia Latin America Africa do not need spe-cial things made for developing markets they need top innovative solutions and high-quality products and we need to be able to offer that to them if we want to remain relevantrdquo

One of the solutions worth repeating is that of partnerships According to the Minister universities need to remember that partner-ships with other research institutions as well as with private companies and organizations can provide greater insight

ldquoYou need not only public-private partner-ships but large-scale multiple partnership Still universities can sometimes behave as isolated entities Of course universities need to focus on the core business of researching and educating students but they will also in-creasingly be challenged to engage in these in-ternational and multiple partnerships This is where you will find some of the most inspiring

About Christian Friis Bach

Born 1966 in Frederiksberg Denmark Married three children Lives on a hobby farm near Ganloslashse

Present officeMinister for Development Cooperation 3 October 2011 ndash

Education1992-1996 PhD International Economics Royal Danish Agricultural University Copenhagen 1986-1992 MSc Agronomy Royal Danish Agricultural University Copen-hagen

Work Experience2010-2011 Special Advisor for EU Commissioner Connie Hedegaard (UN Global Sustainability Panel) 2010-2011 CEO ViewWorld ApS 2009 Affiliated Professor in International Economics and Development at the University of Copenhagen 2005-2010 International Director DanChurchAid 2002 Journalist at the Danish Broadcasting Corporation (DR) 1999-2005 Associate Professor International EconomicsDevelopment Economics Royal Danish Agricultural University (University of Copenha-gen)

Other engagements2010-2011 Member of the Board of the Danish United Nations Associa-tion 2008-2010 Initiator and Board Member of the Danish Initiative for Ethical Trade 2008-2009 Member of the Danish Africa Commission 2007-2011 Member of the Presidium for WWF World Wide Fund for Nature Denmark 2000-2006 Board Member International Institute for Sustainable Develop-ment 1997-2001 Chairman Mellemfolkeligt Samvirke (Danish Association for International Cooperation)

Christian Friis Bach has published a large number of books reports and ar-ticles in newspapers and magazines Please see wwwfriisbachdk for details

15CSQ

In December 180 Degrees Consulting (180DC) finished its third round of pro-bono social impact consulting projects with even more success than in previous semes-ters All consultants showed dedication and motivation by spending a large amount of their spare time to work with socially con-scious organizations in order to help them to improve their social impact

An overcrowded lecture room during the 180DC information meeting at the begin-ning of the semester and the high number of applications to join the consulting projects were evidence of great interest in 180DCrsquos activities Out of the 139 applicants the top 45 were selected in a two-step recruitment process and grouped into teams of five to work on the nine exciting projects lined up in the Fall 2012 semester

All projects involved Danish-based organi-zations with a strong focus on either social andor environmental sustainability The projects however differed vastly One of the consulting teams assisted Engineers Without Borders and Action Aid in developing an investment rationale for the cultivation of farmland belonging to an Indian orphanage as well as assessing the social return of this investment

Another 180DC team worked with Hertha an organization focused on the reverse in-tegration of ordinary people into a commu-nity of mentally challenged Hertha needed assistance with improving their external reporting setup to stakeholders which was achieved by developing useful tools for the organization to measure both the social and cultural impact of their activities Yet another team of consultants helped the International Rehabilitation Council for Torture Victims optimizing their internal processes and thus helping them pursue their vision of a world without torture

During the consulting period 180DC or-ganized several training sessions for the con-sultants of the organization hosted by pro-fessional consultancies and each team was assigned a mentor with expertise specific to the given project The highlight of the semes-ter was the Final Event at which all of the teams presented their projects in front of a large audience comprised of all 180DC con-sultants the 180DC board members as well as mentors clients and a jury consisting of representatives from PwC DI CBS Sustain-ability Platform BCG and VSFA The juryacutes task was to evaluate the consulting projects based on their written report and oral pres-entation Based on the creativity feasibili-ty and impact potential of the projects the chairwoman of the Jury Birgitte Mogensen PwC announced the winner of the 180DC Social Impact Award Team Engineers With-out Borders

All of the 180DC board members have throughout the semester been working hard to constantly improve the organization in or-der to ensure a high quality of the services provided to clients and of the learning ex-perience provided to students With a new extended board in place 180DC is looking forward to continue its successful journey in the upcoming semester which kicked-off in January with two international projects in Chile and Sierra Leone ndash thanks to the sup-port of the CBS Sustainability Platform

by Nadine Koumlcher

UPDATE FROM 180DEGREES180 Degrees Consulting is an international student consultancy that works with growing non-profits helping them achieve a greater social impact

Contactphone no +45 6061 6399e-mail cph180degreesconsultingorg

Updates from partner organizations at CBS

16 CSQ

The past semester was a good one for 360deg Students for Sustainability Not only did our organization grow to nearly 50 members this fall but we were also nominated in the Student category for the CSR Awards 2012 ndash the second year in a row You can watch the nomination video here httpwwwyoutubecomwatchfeature=player_embed-dedampv=6J5mwn7TcYI Although we didnrsquot win the award representatives from 360deg got the chance to participate in the conferencersquos many seminars ndash and not least hear Bill Clin-ton speak360deg also took it to another level with 360deg Academy The project was a huge success with over 250 people signed up for the ex-tracurricular course It shows that there is a clear interest in CSR and sustainability among the students and that 360deg Students

for Sustainability fill an important gap in providing the students with a forum where they can discuss such issues with each oth-er professors and practitioners We have al-ready started planning Academy 2013 which will run in the fall In addition to 360deg Academy 360deg organ-ised several successful events and seminars the past semester 360deg Develop Prize was kick-started in November and has already found some dedicated social entrepreneurs who will join the coming events this spring as well as the final competition 360deg also co-organized events on microfinance (with Danish Forum for Microfinance) and fair-trade (with Fairtrade Maeligrket) We also created a nice Christmas spirit at the CBS campus with our annual Christmas event featuring cookies a fairtrade Christmas tree

and do nations to Red Cross and Verdens SkoveWhile it is important to look back this semester 360deg is focusing on the future By the end of the semester 360deg Students for Sustainability will have changed its name to oikos Copenhagen After becoming part of the international student network oikos in 2011 we believe that changing our name will emphasize our international commitment and will show the students the many oppor-tunities that are available to them through the oikos network You can read more about oikos International and the other 36 chapters around the world by visiting wwwoikos-in-ternationalorg

Christina EkChairwoman of 360deg and soon-to-be President of oikos Copenhagen

UPDATE FROM 360 STUDENTS

360deg Students for Sustainability

360deg Students for Sustainability is a non-profit student organization based at CBS working to enable and inspire students to make responsible and sus-tainable decisions in their future lives and professional careers

Contact Christina Ek tlf 42 39 99 54 mail info360studentsdk

Live show at CSR Awards 2012

(Picture from csrfondendk)

Updates from partner organizations at CBS

17CSQ

UPDATE FROM PRME

New approach by the Curriculum Development

projectThe commitment to the initiative of the UN Principles for Responsible Management Education (PRME) at CBS has been further sustained via a more targeted approach to the development of the curriculum at the undergraduate programmesAs part of the adherence to PRME CBS has launched a Curriculum Development project to integrate responsible management prac-tices into the study programmes and also make these practices more explicit This is an extensive process that recently has been even more focused on the individual content of each of the study programmes A more cus-tomised approach will only strengthen the analyses of syllabi for each core course and increase the content of explicit responsible management

ldquoThe current restructuring of the Service Management bachelor programme and the development of three specialised lines of ed-ucation offer a great opportunity to align the curriculum development with the Principles for Responsible Management adopted by CBS Currently the CBS Office for Respon-sible Management Education and faculty members from CBS are working to identify opportunities to integrate responsible man-agement education into the educational programmerdquo Assistant Professor Adriana

Budeanu BSc in Business Administration and Service Management CBS In collabo-ration with study boards students and fac-ulties the Curriculum Development project enables a targeted approach to the integra-tion of responsible management content in order to comply with the overall structure of each study programme

Anti-piracy strategy from Maersk was a winning strategy

In collaboration with the CBS Sustainabili-ty Platform the CBS Office for Responsible Management Education arranged an internal competition to identify the best team of stu-dents to represent CBS at the International Business Ethics Case Competition (IBECC) in San Diego later this year The students had to select a business case entailing a challenge with legal financial and ethical aspects and propose a solution to this challenge A jury found the winning team based on a live presentation followed by a QampA session that took place in November 2012

The winners of this unique opportunity were the graduate students Bjoslashrg Ilsoslash Klinkby (MSc IBP) Adam Eithz Kromann (MSc BAP) and Anne Cathrine Gaarde (MSc IBP) They presented a business case on the anti-piracy strategy of Maersk

Winners of the Business Ethics Case Competition

Updates from partner organizations at CBS

18 CSQ

THESIS PARTNERSHIP BETWEEN GRADUATE

STUDENTS AND COMPANIES MATCH-MAKING

On behalf of CBS the Office for Responsible Management Education invited companies and organi-sations to participate in a match-making event with graduate students who were looking to write their thesis within the field of sustainability or social responsibility

Prior to the event that took place on the 6th of February ambitious graduate students were matched with eight very diverse organ-isations all wanting to explore challenge and develop CSR related activities The selection of organisations ranged from Center for So-cialt Ansvar who sought the studentsrsquo advice on how to revitalise their social concepts in corporation with the civic public and pri-vate sector to Wonderful Copenhagen that engaged the students in their aspirations of

retaining Copenhagen as a leading ldquogreenrdquo conference destination This diversity mere-ly reflected the broad-based educational standards that are embodied in the conducts of CBS and enabled students from all study areas to participate With the meeting as the focal point of the event the aim was to in-troduce more students and companies to the possibilities of a thesis partnership On that basis it is the hope that students and organisations will take the initial meeting

further into a collaboration resulting in a thesis that with an analytical and reflected approach hopefully provides valuable insight for all parties The event was indeed a unique opportunity for the students to get the or-ganisationsrsquo unremitting attention but also the organisations expressed their excitement about how the theoretical knowledge and skills of the students could be combined with the specific issues reaching beyond everyday operations of the organisation

PRME

Lene Mette SoslashrensenTel +45 3815 2651E-mail lmsiklcbsdk

PRME Manager

Johanne Duelund Kramer from Wonderful Copenhagen and CBS student Joseacute Bandeirinha from International Marketing and Management

Updates from partner organizations at CBS

19CSQ

A value adding partnership

The match-making event was kick-started by Professor Andreas Rasche who gave a short speech on trends in the field of sustainability and social responsibility Likewise thesis con-sultant Vibeke Ankersborg rounded off the event by guiding both students and organisa-tion representatives in the right direction of obtaining a value adding thesis partnership

By facilitating integration of the theoretical knowledge pool at CBS with real-life busi-ness cases and their challenges this initiative underpins CBSrsquos Responsible Management Education profile ldquoAddressing societal chal-lenges in interaction with business is a key element in our Business in Society strategy and we hope to set up a similar initiative in the futurerdquo Lene Mette Soslashrensen PRME Manager CBS

Being able to engage in a thesis partnership gives us the opportunity to get new and fresh eyes on the challenges and opportunities we face in the aspiration of sus-taining Copenhagenrsquos position as marked leader within sustainable meetings and events ndash and the other way around we see it as a positive contribution to help young students to gain in-depth knowledge on how we actually work with sustainability in practicerdquo

Ulrika Maringrtensson senior communication consultant Wonderful Copenhagen

ldquo

Case Companies

20 CSQ

Update from CBS Centre for Corporate Social Responsibility

cbsCSR celebration10 years anniversaryOn Thursday November 22 2012 CBS Centre for Corporate Social Responsibility (cbsCSR) celebrated its 10 years anniversary The guest list included prominent guests from both academia and the corporate world Head of Department Dorte Salskov-Iversen President Per Holten-Andersen and cbsCSR Director Esben Rahbek Pedersen bid all a warm welcome to an afternoon of inspirational talks and celebration of the Centre

Susanne Stormer followed and initiated her presentation with a brief recap of Novo Nor-diskrsquos history and continuous development of corporate sustainability practices She em-phasized how Novo Nordisk with the help of Professor Ed Freeman has prioritized a close relationship with their stakeholders and learning with them as a means to reach a higher level of corporate sustainability An additional key take-away from Susanne Stormer was the notion of transformational partnerships She argued that corporations NGOs and other stakeholders should use each other to form transformational partner-ships instead of just transactional partner-ships She claimed that in order to address and solve the problems in todayrsquos world the issues have to be addressed at the roots ndash in cooperation with stakeholders

The program had been divided into two ses-sions Each session ended with a panel dis-cussion that gave the audience the opportu-nity to track the developmental trajectory of CSR and participate in the discussion of the future direction of CSR

In the first session which focused on the history of CSR Professor Lucia Reisch from Department of Intercultural Communica-tion and Management CBS Susanne Storm-er VP of Corporate Sustainability at Novo Nordisk and Professor Gail Whiteman from Rotterdam School of Management present-ed their perspectives on the development of CSR up until nowProfessor Lucia Reisch set the stage with an enlightening introduction to the history of sustainable development and emphasized balance on the triple bottom line as key

Professor Gail Whitemanrsquos presentation highlighted both the past and the future of CSR Her main topic was how to deal with planetary boundaries She drew attention to inherent implications of teaching sustaina-bility and CSR at a business school and ar-gued that in order for students and business executives to understand the implications of planetary boundaries and their importance classes should be taught in nature

In the second session Annette Stube Head of Group Sustainability in AP Moller ndash Maersk Simon Pickard Director General at ABIS and Professor Andreas Rasche from cbsCSR presented their views on the future of CSR

Updates from partner organizations at CBS

21CSQ

The topics in the second panel debate evolved around some of the same issues as in the first panel debate The audience was very interested in the educational aspect of CSR and sustainability and a discussion fol-lowed concerning the issues of lsquopreaching to the convertedrsquo Research shows that 75 of CSR courses are not mandatory 1 thus those students and executives who have a natural interest in CSR and sustainability enroll for these courses The speakers agreed that this posed a challenge for the future and that business schools might have to re-invent themselves in this regard They stressed that it is crucial that CSR and sustainability courses become mandatory Also the prac-titioners advocated in-company learning They set forth the argument that it may be a long time before current students will have sufficient impact on the corporate sector but also because the corporate sector and the ac-ademic world can learn from one another

Sum-up of key perspectives for the future

So how has lsquothe business of business really changedrsquo and in what direction From the afternoonrsquos discussions there were two recur-ring topics Susanne Stormer briefly touched upon it when she talked about transforma-tional partnerships Annette Stube and AP

Annette Stube set forth the argument that ldquothe business of business has really changedrdquo She gave an example of how AP Moller ndash Maersk should use their position in the shipping industry to facilitate substantial changes Simon Pickard supported her argu

ment stating that it is not possible for single corporations to make a difference but that clusters of corporations have to collaborate to push changes If corporations do not join forces they risk only making incremental changes Simon Pickard further argued paraphrasing Andrew Pettigrewrsquos argument that in the course of time there has been a conceptual change in the argument for CSR He pointed to the fact that it started out as a moral or philanthropic enterprise and is now perceived as a governance case Simon Pickard pointed to the fact that the future of business is to create shared value ie creat-ing economic value that also creates value for society at large Building on these re-marks Andreas Rasche discussed the future of standards and codes in the field of CSR Emphasizing a variety of case examples he argued that while standards have proliferated in recent years eg certification schemes in the global coffee and apparel industries there is a need to more actively manage the co-ex-istence of these initiatives in order to avoid overlap Rasche also highlighted the pivotal role of consumers who need to acknowledge standards and labels as market signals and factor social and environmental concerns into purchasing decisions

Moller ndash Maersk has it as an integrated and crucial part of their CSR policies and Simon Pickard highlighted how instrumental the-ories are no longer enough The concept of shared value is inescapable and it is what the lsquobusiness of businessrsquo in the early 21st centu-ry is really about

A second topic which also attracted a lot of attention was the importance of continuous education of both lsquothe convertedrsquo but also of opponents of CSR and people who are not aware of the importance of CSR and sustain-ability In-company learning was depicted as a crucial part of the development of CSR and sustainability however a physical change in the teaching settings is also required to meet the approaching environmental challenges

Centre Director Esben Rahbek Pedersen concluded the conference and the winners of the prize of 25000 DKK to participate in the IBECC case competition in San Diego in May 2013 were announced and the celebra-tion of cbsCSR ended with a reception

Thank you to all the speakers moderators and guests for an inspirational afternoon

By Elise Lind Jacobsen and Line Pedini Rasmussen cbsCSR

1Rasche A Gilbert DU and Schedel I (2013) Cross-Disciplinary Ethics Education in MBA Programs Rhetoric or Reality Academy of Management Learning and Education (forthcoming)

Three of the keynote speakers (from left) Professor Gail Whiteman from Rotterdam School of Management VP of Corporate Sustainability at Novo Nordisk Susanne Stormer and Sustaina-bility Professor at CBS Lucia Reisch

Simon Pickard Director General at ABIS

22 CSQ

UPDATE FROM

CBS GOES GREENThe Green Associate Program

2012 was an exciting year for CBS Goes Green with many great achievements One of the new initiatives that was launched in 2012 was the Green Associate Program Here CBS students were able to volunteer in a program to support sustainable behavior among students and staff at CBS More precisely 25 CBS stu-dents put in 30 hours of voluntary work to help with the planning and execution of Green Week - a week consisting of a lineup of successful companies shar-ing their sustainable initiatives and thoughts The overwhelming interest in sustainability and sustain-able business among the students has made it evi-dent that the Green Associate Program should con-tinue in 2013 We at CBS Goes Green look forward to this as well as all of the other initiatives we will be conducting in 2013

The following is an extract of an article that three of the associates wrote themselves This extract shows the associatesrsquo own experience working with CBS Goes Green

What does it mean to be an

associate with CBS Goes Green

In Week 39 CBS turned into a plethora of green initia-tives and events in order to make CBS reach its sustaina-bility goals for 2020 Both students and employees at CBS were asked to become a Green Ambassador to help CBS be smarter greener and better

But many of you may wonder how it is to be one of the people behind the scene As associates we have been help-ing out before and during Green Week in order to establish an event that would reach all corners of CBS This has re-quired both time and effort in order to make things work out but in the end there are also a lot of gains from being an associate

Firstly as an associate you get to expand your network You get to work with people from different studies countries and ages and you also get to talk to many different people while promoting

A bonus about being an associate is also that you get an official certificate which can be attached to your resume This shows that you have put an effort into making Green Week happen

Furthermore by being an associate you feel like you have a larger impact on making CBS a greener place Instead of being an ambassador and only doing the things you can do you get to be the person who raises awareness about sustainability You may influence people to make the right choices and it makes you feel good

Lastly it also gives you a feeling of responsibility because you work under an official part of CBS CBS Goes Green ndash a unit with a clear agenda and a clear vision

By Michael Nguyen Christian Charity and Christian-Philip Lundahl

Updates from partner organizations at CBS

23CSQ

International conference on sustainable biofuels presents latest research

By Barbara Louise Bech Department of Business and Politics CBS

EU Renewable Energy Directive

In 2009 the EU RED set a mandatory target for member states to use a minimum of 10 renewable energy sources in the transport sector by 2020 of which biofuels is expected to be the main contributor This is part of a policy to cut greenhouse gas emissions promote the green technology sector develop rural areas and reduce dependency on fos-sil fuels Due to increasing controversies claiming lack of sustainability in first generation biofuels based on food crops recently the EU pro-posed an amendment to the Directive limiting the share of first gener-ation biofuels to 5 of the targeted 10

The debate quickly zoomed in on the sustainability criteria as outlined in the EU RED drawing attention to the lack of social safeguards The general consensus is that the concept of sustainability is too narrow-ly defined Several case studies (Mozambique Brazil and Indonesia) show that basic labor and human rights of local populations are not protected by RED and the directive is more viewed as an environmen-tal safeguard This discussion raised questions in regard to the effects of RED globally (eg sustainable production in developing countries) and in this context whether EU legislation can have a lsquotrickle downrsquo effect on national standards of nation-states outside the EU In this re-gards one could ask if enforcement at the local level falls under the re-sponsibility of the EU but since first generation biofuels are produced outside the EU it is an important issue for European consumers ndash al-though interest is currently mainly driven by NGOs

On November 19-20 2012 the Copenhagen Biofuels Research Network (COBREN) held an international conference on sustainable biofuels inviting 30 research-ers from around the world to present and discuss their latest research During the two day conference focus was the sustainability criteria of the EU Renewable Energy Directive (RED) voluntary certification schemes and their impacts on sustainability and social safeguards in producer (developing) countries in particular and governance complexity of the biofuel system which has grown considerably over the past decade

Rough guide to biofuelsThere are two types of biofuels biodiesel and ethanol First generation biofuels (1G) are based on food crops and feed stocks such as palm oil soybean and rapeseed used for the production of biodiesel and sugarcane and corn for ethanol The produc-tion of biofuels increased heavily in the 2000s questioning the sustainability of 1G A number of issues have been claimed as key impediments to sustainable biofuel production such as deforestation competition with food production and increasing food prices loss of biodiversity lack of social and environmental safeguards and indirect land use change (ILUC) These contro-versies have led to a call for the promotion of second generation biofuels (2G) which are typically based on agricultural waste (eg straw) plants and forestry residues (also called lignocellu-losic biomassmaterials) However the immediate problem is that there is yet to be developed a market for 2G as they are more costly to produce (require longer and more complex production process)

CBS Sustainability Platform co-director and organizer of the COBREN conference Stefano Ponte doing a presentation

Event

24 CSQ

Voluntary certification schemes

In relation to how standards and certifications can impact sustainable biofuel production discussions pointed to the important difference be-tween mandatory and voluntary schemes As the controversy of sus-tainable biofuels in particular first generation is rolling out special attention has been given to biofuel production competing with food production ILUC value of emissions reduction and environmental and social issues This have off sprung a proliferation in private certifi-cations and during the conference it was discussed intensely whether these schemes have an actual effect on sustainability Depending on the point of view certifications can fill out the holes in legislation and act as a tool to force companies to comply with sustainability crite-ria However the development processes of new certifications may not be inclusive of relevant stakeholders (eg representatives of local populations) Additionally the nature and governance of the networks steering these processes is not always transparent and may favor one interest over the other This intense discussion led to the question of the purpose of certifications Can we use them for anything other than as a CSR PR tool as long as consumer awareness is as low as it is and how do the different regional drivers influence sustainability as a concept The answers to these questions are not easily found and it will be interesting to observe the future development and partnership between public and private sector

Governing the biofuel industry

Within the past decade biodiesel production has risen from below 30PJ in 2000 to 572PJ in 2009 globally and fuel ethanol production has increased from 340PJ to 1540 PJ respectively As the market expands more actors eg governments international organizations civil soci-ety and NGOs private sector networks and companies and profes-sions (biofuel experts and consultants) get involved and play different roles to promote their own agendas Being an emerging industry the structure of the biofuel system shows hybrid forms of governance with many actors As controversies of biofuelsrsquo sustainability develop more issues are added to the agenda giving life to more actors and interests in the governance structure Research shows a shift in power balance as private companies and NGOs increasingly push the agenda The dis-cussions during the conference centered on the complexity of sustain-ability issues calling for mixed governance responses and governance instruments such as standards and certifications which in return need to be followed up with endorsement instruments Given these com-plexities the question is whether the biofuel industry is too difficult to govern as long as the governing systems (for instance the EU) cannot accommodate expectations of all stakeholders

Indirect land use change (ILUC)ILUC is the unintended consequence in terms of more carbon emis-sions due to land use change around the world induced by the expan-sion of croplands for biofuel production When land that could be used to grow food and feed crops is used to grow energy crops this leads to existing agricultural production moving to another area or country where land is converted When this land is cleared and converted to cropland and because natural lands (rainforests and grasslands) store and sequester carbon in their soil and biomass a net increase in GHG emissions can occur Due to this change in the carbon stock of the soil and the biomass ILUC has consequences in the GHG balance of a biofuel Adding to this complexity models for ILUC calculations are not mainstreamed and thus difficult to assess internationally

25CSQ

Mellemfolkeligt Samvirke (MS) or Action Aid Denmark is a Danish NGO founded back in 1944 The

organizations key objective is to fight poverty by ensuring greater political influence for the worldrsquos poor and margin-alized at the local national and international levels MS works to bring about long-term development in the worldrsquos poorest countries focusing especially on education co-

operation and the ability to organize MS mainly works in Africa Read more about the organizationrsquos work

at wwwactionaiddk

Action Aid

A private sector view on the future of sustainable biofuels

By Barbara Louise Bech Department of Business and Politics CBS

nergy security continues to be an eminent concern in a world of finite resources For a long time biofuels have been viewed as

one of the key solutions to replace our dependency on fossil fuels and battle climate change but in recent years controversy has contested the sustainability of first generation biofuels based on food stock Issues such as lack of environmental safeguards causing loss of biodiversi-ty and deforestation and lack of social safeguards ensuring land and labor rights in producer (developing) countries have been claimed as key impediments to sustainable biofuel production Critical observers also argue that the emission savings of biofuel use in compar-ison to fossil fuels can become much smaller (or even disappear) when indirect land use change (ILUC) is included in the calculations Furthermore bi-omass production from food stock is argued to compete with food production and in-creasing food prices

The Danish NGO Action Aid has been engaged in biofuels since 2008 and is par-ticularly involved in protecting womenrsquos rights and preventing land grabs in de-veloping countries ldquoWe are very concerned about land use when it comes to first genera-tion biofuels This relates both to the people who are dependent on the land and to food security We rarely see good combinations where the local populationrsquos needs are taken into consideration The energy crops grown on the local farmerrsquos land donrsquot benefit him and local consumption is essential for developmentrdquo explains Kirsten Hjoslashrnholm Soslashrensen political advisor Action Aid Denmark

It is therefore believed by many that second generation biofuels is the only way forward to avoid competition with food and avert ILUC Next generation biofuels is based on lignocellulosic biomass such as agricultural and household waste and forest residues The Biorefining Alliance represents a cluster of leading Danish companies within the renewable energy sector with an ambition to promote second gener-

ation biofuels and make Denmark a world leader of technology and bi-ofuel productionldquoDenmark has very strong competencies in green tech and as a society we have put a lot of money in its development This is go-ing to be a huge deal globally so we are asking whether Denmark wants to be a customer or a producer What we are working for is of course that we become a lead exporter of technology but also that Denmark produces second generation biofuels commercially Even though we are a small country we cannot settle on selling know-how Denmark also needs to have some industrial productionrdquo says Anne Grete Holmsgaard di-

rector of Biorefining Alliance In her view Denmark needs to keep a firm grip on developing innovation or it will slowly but

steadily move out of the country In this regard she views sustainability criteria for biofuels as an in-

novator and not a hindrance

The Sustainable Biofuels Network (SBN) is another cluster of private companies trying to facilitate the transition from fossil fuels to biofuels in the transport sector For the aviation industry biofuels are considered

to be the only alternative to fossil fuels and the industry firmly believes that biofuels will

survive according to Robert Arendal chairman of SBN ldquoThe aviation industry has set very clear

guidelines for the use of biofuels We are not going to use food based biofuels and we will minimize the use of fresh

water By 2050 our target is to use 50 biofuels in the global aviation so we really need to move fastrdquo he explains adding that living up to sustainability criteria includes being careful about where biofuels are produced ldquoBut it should be produced all over the world and close to the 1600 airports worldwide that account for 95 of all aviationrdquo

he technology for second generation biofuels is already here but the problem is that production costs are too high and there is no market As long as prices are not competitive with conventional fuels it will be difficult to move forward ldquoOne might ask why there is no market The customers are certainly there so if I was in the business of producing

E

As part of the COBREN international conference on sustainable biofuels private sector civil society and academia were invited to give their views on sustainable biofuels at a roundtable discussion at an open public seminar held at DIIS November 19 2012

Event

26 CSQ

SBN is a ldquobreeding groundrdquo and ldquoknowledge centerrdquo for the biofu-els industry where synergies are created between all parties within

the biofuels sector SBN focuses in promoting supporting and enabling the commercial development and use of clean and sustainable biofuels for Heavy Road Transportation Shipping and Aviation Emphasis is put on the importance of global standards for biofuels with local as well as international institutions and decision makers to encourage con-

structive guidelines and rules for the development of biofuels SBN adheres to EUrsquos sustainability criteria SBN is a non-profit asso-

ciation established in 2008 Visit their website for more info at wwwsustainablebiofulsdk

Sustainable Biofuels Network(SBN)

The Biorefining Alliance (BA) was founded December 2011 by DONG Energy Novozymes Haldor Topsoslashe and the

Danish Agriculture and Food Council and is a three-year project to politically promote Denmarkrsquos position in the entire value chain from residues to bio-based products The Alliance has set forth a number of recommendations to achieve a sustainable Danish bio-economy Among other these include (i) that all organic

waste be considered a resource (high-value recycling and storable energy) (ii) reducing the cost of manufacturing 2G

bioethanol and (iii) contemplating the establishment of a national center for sustainable materials

Biorefining Alliance

second generation biofuels I would get started right awayrdquo says Robert Arendal The Biorefining Alliance is working on lowering the costs and recommends a stronger regulatory framework with binding targets as it has been done for the wind industry ldquoThere already is a market for first generation biodiesel which is the least sustainable biofuel We need to make a market for second generation biofuels and we know that binding targets work I donrsquot think it is possible to create a market for the lsquogreen consumerrsquo as you have one for organic food products but I believe that a niche market for HRT (Heavy Road Transport red) such as public bus transport could be a supplementrdquo concludes Anne Grete Holmsgaard

How the future for sustainable biofuels will shape depends on political will to create a market for second generation and the ability of private sector to innovate and bring prices down Oil production is claimed by some to already have peaked and exploring new geographical areas for extraction could be as costly as kick-starting the market for second generation biofuels although much less sustainable As the American ecologist and environmentalist Bill McKibben wrote in his book ldquoDeep Economyrdquo back in 2007

Even before we run out of oil wersquore running out of planetrdquoldquo Bill McKibben

27CSQ

The Transparency-Sustainability NexusA workshop on the practices meanings and tensions of organiza-

tional transparency

n December 5 2012 the Department of Intercultural Communication and Management (ICM) hosted an in-

ternational workshop supported by CBS Sustainability Plat-form and ICM The workshop was organized by Oana Brindusa Albu Mikkel Flyverbom and Hans Krause Hansen respectively PhD Fellow and Associate Professors at ICM The idea of the workshop was spurred by the observation that while ideals of transparency like lsquoopennessrsquo lsquodisclosurersquo and lsquoreportingrsquo are pro-liferating these years the actual construction of transparency within and across organizations is poorly understood Most re-search on transparency is highly normative if not celebratory just as popular discourse about transparency not least in the areas of sustainability and corporate social responsibility is obsessed with ideals of accountability performance and effi-ciency and pervaded by an optimism currently pushed to its extreme with the explosion of new media technologies

But the truth is that we generally know very little about the implications of ideals of transparency when translated into practice in specific issue areas and organizational contexts Importantly each of the contributions to this workshop clear-ly suggested that the contemporary politics of transparency is much more complex contradictory and dynamic than tradi-tionally recognized All papers examined various aspects of the contemporary obsession with transparency and specifically the increasing use of disclosure techniques within and around or-ganizations the rationales or myths underpinning these meas-ures their intended and unintended consequences including implications for identity-making management and govern-ance practices

Clare Birchall initiated the workshop with a paper titled lsquoThe Cultural Politics of Disclosurersquo highlighting how transparency has been positioned as a superior form of disclosure in popular management and organizational literatures and in policy docu-ments In her account the growing preference for transparency is a consequence not only of the positive qualities seen to be intrinsic to transparency itself but also a response to the per-ceived negative characteristics of other forms of disclosure such as gossip scandal and rumor Lars Thoslashger Christensen (with co-author Joep Cornelissen) then analyzed transparency as one of the foundational myths of modernity myths understood here as descriptions of the world in a narrative form which seeks to produce meaning and direction for a community and its members Such lsquoMyths of Transparencyrsquo sustain numerous organizational practices ndash including openness information provision and auditing But as argued by the authors there are conflicting evidence regarding the capacity of such practices to create insights and understandingThat aspirations and techniques of transparency can have seri-ous repercussions was demonstrated by Peter Skaeligrbaeligk (with co-author Mark Christensen) in the paper entitled lsquoAuditing and the purification of blamersquo which analyzed how auditing auditing practices and institutional entities including the po-liticized environments surrounding them are mobilized and participate in blame games and allocation In his paper titled lsquoQuantification transparency and the costs of reassurancersquo Henrik Vollmer analyzed various dimensions of the role of nu-merical records and signaling in generating transparency trust and mistrust

By Hans Krause Hansen Department of Intercultural Communication amp Management

Event

O

28 CSQ

Some of these aspects were also touched upon in the paper lsquoDisrupted Disclosures The Politics of Visibility and Surveil-lance in the Extractive Industriesrsquo by Hans Krause Hansen (with co-author Julie Uldam) which explored the wider field of visibility and surveillance in which contemporary transpar-ency policies are unfolding with examples from the extractive industries Oana Brindusa Albu in her lsquoTransparency and the organizational self everyday politics of identification in Cooperativesrsquo examined the paradoxical effects of values and practices of transparency on collective identity formation pro-cesses drawing upon her ongoing multi-sited fieldwork in co-operatives Under the heading of lsquoThe Improbability of Secrecyrsquo Mark Fenster analyzed the intersections of secrecy and trans-parency with examples from the US government and its efforts to control information which according to the author does not necessarily stop the flow of information Finally Mikkel Fly-verbom and Christina Garsten examined lsquoThe sway of (big) data ndash calculations and advocacy in the name of transparencyrsquo focusing on the operations of data-based forms of corporate lsquotransparency evangelismrsquo and advocacy through revelation including examples from Center for Global Development and Google

In all the workshop was highly successful in investigating not only the historical and mythical foundations of transparency but also the different practices and forms of transparency that currently shape organizations and a wide variety of issue areas It also provided a reminder of the usefulness of investigating a concept of transparency in relationship to a host of other con-cepts such as secrecy myth gossip blame surveillance visi-bility identity information and knowledge The organizers of the workshop wish to thank all workshop participants for their valuable contributions and the CBS Sustainability Platform and ICM for their support

Hans Krause Hansen

Mikkel Flyverbom

Oana Brindusa Albu

ASSOCIATE PROFESSORPHD (ICM)

ASSOCIATE PROFESSORPHD (ICM)

PHD FELLOW (ICM)

29CSQ

Louise Lyngfeldt Gorm Hansen is a PhD Fellow at the Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) She has a back-ground in Chinese Studies from Copenhagen University (BA) the Asian Studies Program at CBS (BSc) and in International Business Stud-ies and Sustainable Business (MSc) from CBS

The aim of her cross-disciplinary PhD project is to explore how the Chinese hydropower sector works with environmental sustainability and more particularly how the concept is understood and performed in the planning phase of a major dam project in the southwestern Chinese province of Yunnan

The aim of the project is to gain a deeper under-standing of how Chinese firms in the renewable energy sector such as hydropower companies understand and value sustainability as well as how such firms tackle the increasing pressure to deliver socially and environmentally balanced solutions to one of Chinarsquos major challenges lowering CO2 emissions in a time with rapidly rising water and energy demands Theoretically the project draws on - and aims to contribute to ndash a combination of Asian Studies and Science and Technology Studies

PHD FocusLouise Lyngfeldt Gorm Hansen

HYDROPOWER

SUSTAINABILITY

30 CSQ

HYDROPOWER

SUSTAINABILITY IN

CHINAy PhD project combines two of my main research interests China and

environmental sustainability I have studied China for a number of years mainly because of an interest in how the Chinese view sus-tainable development So since finishing my masters I have known that I wanted to study how China plan to tackle a sustainable tran-sition in the years to come I saw my chance when CBS announced PhD scholarships in

DanishEuropean-Chinese social science research in collaboration with the newly es-tablished Sino-Danish Center for Education and Research (SDC) and started my PhD in October 2011My PhD project focuses on the Chinese energy sector more specifically the rapidly growing part of the energy sector engaged in renewable energy Here I examine Chinarsquos second largest source of electricity gene-

eration hydropower In recent years China has become increasingly focused on reduc-ing CO2 emissions While some countries such as the US and Australia are decommis-sioning hydropower dams China is looking to large-scale hydropower construction as one of the solutions to a future clean energy supply This means that hydropower devel-opment plays a central role in Chinarsquos sus-tainable transition

However utilization of hydropower is con-troversial not least in China and has met increasing resistance in recent years particu-larly from Chinese and international NGOs the media as well as the scientific commu-nity Critique is most often focused on how or if social and environmental sustainability can be ensured in such large scale projects as the social and environmental impacts of large scale hydropower development are very complex and difficult to measure More gen-erally the viability of relying on hydropow-er as a future source of energy is also being questioned One of the major concerns here is the overarching issue of climate change ie glaciers shrinking and yearly water runoff decreasing This means less stable water flow for hydropower and less water for other pur-poses such as agriculture water supply for down-stream countries etc

By Louise Lyngfeldt Gorm Hansen Asia Research Centre Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) ndash sinodanishcenterdk

M

Picture from SinoHydro promotion material 2011

Research

31CSQ

In contrast to for example the wind power sector in China in which many foreign com-panies have invested the hydropower sector is dominated by a few large state-owned en-terprises Our knowledge of Chinese state-owned enterprises is still limited and there-fore my PhD project is also part of a larger research project at the Asia Research Centre with focus on Chinese state-owned enter-prises and the reform of the public sector in China

In combining these interests my PhD exam-ines how Chinese state-owned enterprises in the hydropower sector tackle the demand to expand hydropower development to help reduce Chinarsquos CO2 emissions while be-ing under increasing pressure to deliver on sustainability principles in the planning and execution of large scale hydropower pro-jects The pressure comes mainly from NGO organizations the media and the scientific community both at home and from abroad I am conducting a case study focused on a specific river in south-western China which has ndash until now ndash not been fully developed for hydropower and the plans for addition-al hydropower dams on the river are still undergoing assessments The project has continually stalled due to disagreements between Chinese government officials at all levels NGOs the media the increasingly deregulated but still state-owned Chinese hydropower companies and the scientif-ic community However the project has very recently been reopened and so will go through another round of assessments in the near future The case is an excellent example of the complexity of hydropower develop-ment decisions in China but it also highlights some of the social and environmental conse-quences of the global push to decrease CO2 emissions

China plays and will continue to play an increasingly important role globally in the years to come However the country also fac-es enormous challenges - not least regarding the environment These challenges also affect economies in Western Europe - for better or worse My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective so

that we here in Europe and in Denmark can more knowledgably and actively engage with China to help solve some of these difficult challenges that eventually affect us all In do-ing this I contribute to gain a better under-standing of the Chinese perspective on envi-ronmental sustainability that can be of use to companies wanting to engage in the Chinese renewable energy sector

My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective rdquoldquo

Picture of the case-river taken by the author in 2012

32 CSQ

FROM BLUEPRINT TO PRACTICE

ENERGY EFFICIENT CONSTRUCTION

By postdoc researcher Satu Reijonen Department of Organization CBS

In the EU almost one third of CO2 emis-sions are attributed to energy used in the construction and use of buildings (FIEC

2007) It is therefore not surprising that the construction sector has recently been subjected to a substantial amount of policy measures to combat its negative effects on climate change In Denmark the state has posed new thresholds for the energy efficien-cy of new buildings including a plan for con-tinuous improvement in the area This far the industry has responded well to these stricter performance requirements In the future re-quirements will rise to levels that are not that easily achieved in the coming years build-ings will have to use 25 less energy than in year 2008 How can these ambitious goals become business as usual

One of the most discussed ways besides add-on technologies such as windmills and solar panels to enhance the energy efficiency of a building is through an energy efficient phys-ical design In practice this means reduction of energy used for heating cooling down and lighting of the building through an optimal orientation and dimensioning of the build-ing

Integrated energy design contrary to add-on technologies can be achieved on a rath-er modest additional budget This should be good news for the sector that today is eco-nomically pressed Indeed today many low energy building projects claim to use the in-tegrated energy design method (IED) when seeking to meet the most ambitious energy related goals In this commentary I wish to discuss some challenges related to the imple-mentation of this design tool

The integrated energy design method sug-gests that one of the main problems in not achieving energy efficiency is that energy related concerns become integrated into the design process too late The method consists of two elements the first of which addresses the need to bring in energy related knowl-edge throughout the design process It sug-gests that design teams ought to be multidis-ciplinary and that architects engineers and experts should work together either co-lo-cated or in a series of workshops Further-more it suggests systematizing energy quali-ty follow-ups into the design process This is all very relevant and inspiring

Oddly enough a closer look on the actual design practices reveals that few seem to ac-tually follow the method of integrated energy design to the point This poses an interest-ing question about the challenges related to the use of such management technologies as vehicles for increased energy efficiency in construction Maybe it is about time practi-tioners and researchers ask themselves what are the boundaries of and challenges related to the use of these tools ndash and what else is required for organizing for more energy effi-cient building design processes

A revolution of relations

Integrated energy design points to the need to bring energy related expertise into the de-sign process at an earlier point In order to achieve this cooperative practices between different professional groups are advocated for Historically energy experts have most-ly been used to respond to rather advanced architectural plans Shared workshops and co-localization suggest a change in these business as usual relations But are they pos-sible and what type of changes do they ac-tually imply in order to function as wished

Research

33CSQ

Satu Reijonen is postdoctoral scholar at the Department of Organization at CBS In her on-going research project she investigates how architects and energy engineers two different profes-sions cooperate and coordinate their work regarding energy related ques-tions in construction design The ways in which relations between and roles of these professions become consti-tuted through socio-material arrange-ments are a central topics in her work Besides studies of work Satu has con-ducted research on environmentally friendly products and markets

ABOUT SATU RAIJONEN

The initiation of this type of new working forms is certainly beneficial for energy effi-cient design However for several reasons they are more difficult to make work than one would assume While it may sound rea-sonable it is after all a tall order Integrating energy related practices into an environment where different visions professions and in-terests meet and the divide between what one profession does is clearly and historically demarcated is demanding While architects need to make room for the intervention of energy experts into the creative work energy experts have to become capable of working creatively and relate to and follow the visual and aesthetic cues from architects In order to work these kind of changes in the profes-sional roles and relations have to resonate with the skills and visions of individual work-ers not only management level design strat-egies It is not surprising that organizational change scholars remind us of the possibility of loose coupling from the strategies placed at the management level (March 1981) What integrated energy design suggests is a kind of a revolution in the ways in which both the architects and the energy engineers envision their role and space of mobility

Linear tools in an unlinear design process

Integrated energy design suggests that the energy performance of the emerging build-ing design be followed up at certain points during the design process The method de-picts a rather mechanistic and linear under-standing of a design process consisting of phases within which iteration may occur While energy related issues may be dis-cussed as quality goals during these phases the method places a lot of emphasis on the check ups performed in the transition from one phase to another Design processes how-ever can also be characterized in a different manner unlinear exploratory and whirl wind type of practices where clear cut phases hardly exist (Akrich 1992 Van de Ven et al 1999) This also applies to the architectural design processes where the object of the de-sign is emergent (Yaneva 2009) This entails that the product the building may change in unexpected ways during any day of the de-sign process If this alternative description of the design processes is viable delegating energy related issues to some predetermined check up episodes may strike a false accord and indeed be contradictory with the aim of enhancing coordination and cooperation between professional groups What happens in between the predetermined checkups may very well be where the energy efficiency of the building becomes configured and where the intervention from the energy experts

would come most needed Perhaps this is why the best performing projects do not blindly follow the steps of the IED method Check ups however and no doubt play a role in verifying and making visible the energy performance for partners outside the design team

Integrated energy design as many other sus-tainability standards and guidelines make visible systematize and legitimize the ex-istence of environmental management and sustainability issues in organizations and work processes In this such way tools create awareness and legitimacy for environmental and sustainability issues The integrated en-ergy design method also suggests a possible way of thinking about what type of design practice might help us to achieve the stricter energy requirements of the future It howev-er falls short in becoming the change agent it suggests This is hardly surprising as a meth-od or a standard of any kind should only be seen as a possibility or as an opening for an inquiry of what the practice could be about Reconfiguring a well established practice is hard work and it would be foolish to trust that a design method would achieve it by itself What the method does is to alert us of the more profound changes in the pro-fessional roles and relations that is needed in order to enable the change However the method due to its rather mechanical under-standing of the design process may come to work against its own ambition of integrating energy issues into the design work In its quest for integration the method defines at which points in time the architectural and the engineering project has to be checked for its energy performance This approach may lead to bringing in energy related concerns in some artificially created points in a design process which may additionally compart-mentalize energy related issues from where the design really happens

Integrated energy design as many other sustainability standards and guidelines make visible systematize and legitimize the existence of environmental management and sustainability issues in organizations and work pro-cessesrdquo

ldquoLiteratureAkrich M (1992) The De-Scription of Technical Objects in Shaping Technology Building Society Studies in Soci-otechnical Change eds WE Bijker and J Law The MIT Press Cambridge Massachusetts pp 205-224

FIEC 2007 The impacts of buildings on climate change httpwwwbuildingsplatformeuepbd_publicationdocFIEC_Memo_p2919pdf on 1222008

March JG (1981) Footnotes to Organizational Change Administrative Science Quarterly vol 26 No 4 pp 563-577

Van de Ven A D Polley R Garud and SVenkataraman (1999) The innovation Journey Oxford Oxford Univer-sity Press

Yaneva A (2009) The making of a building A pragmatist approach to Architecture Bern Peter Lang

More about integrated energy design(IED)

httpwwwintendesigncomosloIntendnsfAttachmentsGuideline_Version_2pdf$FILEGuideline_Version_2pdf

34 CSQ

The climate challenge in

shipping

ldquoGlobal shipping faces two major challenges both of which are caused by its reliance on fossil fuelsrdquo

By Reneacute Taudal Poulsen Department of Innovation amp Organizational Economics

RENEacute TAUDAL POULSEN

ASSOCIATE PROFESSOR DEPARTMENT

OF INNOVATION AND ORGANIZATIONAL

ECONOMICS COPENHAGEN BUSINESS

SCHOOL

orecasts show that the shipping indus-tryrsquos CO2 emissions will most likely continue to rise in the next two to

three decades as demand for world sea-borne trade will expand At present global shipping accounts for approximately 33 per cent of global CO2 emissions but this share will most probably increase in the coming years if many onshore industries succeed in their aims of reducing emission levels

At the same time rapidly rising fuel costs put heavy strain on shipping company budg-ets Historically and until very recently fuel costs were only a minor concern for ship-ping companies but now they often exceed 60 per cent of variable operational costs Fuel savings made through energy efficiency improvements thus represent a win-win sce-nario for the shipping industry and for so-ciety at large They simply make good sense for everyone

Despite the strong incentives for fuel sav-ings numerous studies have demonstrated that shipping fails to implement cost-ef-fective measures to reduce fuel consump-tion Fuel-saving technologies are readily available in the market and in many cases pay-back periods are very short (less than a year) Changes in operational habits which require few if any investments also hold a significant potential for fuel savings

Global shipping thus holds several classic examples of energy-efficiency gaps Gaps occur wherever cost-effective measures to improve energy efficiency fail to materialize The causes for energy efficiency gaps have been a favourite research topic within the field of energy economics for decades and economists sociologists and political scien-tists have been able to identify several means to bridge the gaps However within the mar-itime domain energy efficiency gaps and the climate challenge remain neglected issues Legal barriers

Shipsrsquo fuel consumption rises steeply with speed Hence slow-steaming or just minor speed reductions can lower consumption and emission levels significantly Since oil prices started to rise rapidly a few years ago shipping companies have indeed resorted to various slow-steaming practices and com-panies which succeed in this regard have been able to gain competitive advantages In other words actors in the industry are trying to bridge the energy efficiency gap However and in spite of the strong price signals from the rising fuel prices a potential for fuel sav-ing through slow steaming still remains

FNew CBS research project

A new three year research project at CBS under-

taken by Reneacute Taudal Poulsen for the Department

of Innovation and Organizational Economics will

examine the climate issues bringing insights from

energy economics and innovation management

into the field of shipping economics The project

which is financed by The Danish Maritime Fund

runs from 2012 to 2015 The project asks why en-

ergy efficiency gaps continue to occur in shipping

and how shipping companies and the maritime

industry at large can use innovative business

models and process innovation to turn the climate

challenge and the rising fuel costs into a business

opportunity Energy efficiency gaps occur both

in daily operations and when investments in new

vessels are made This article will briefly present

two examples of energy efficiency gaps from

the operational level and some of the preliminary

findings of the project

References

Jaffe AB and RN Stavins 1994 lsquoThe energy efficiency gap What does it meanrsquo Energy Policy 22 (110) 804-10IMO 2009 Second IMO GHG Study 2009 London International Maritime OrganizationMoriarty P amp D Honnery 2012 lsquoEnergy efficiency Lessons from transportrsquo Energy Policy 46 1ndash3Poulsen Reneacute Taudal 2012 lsquoEmissions and energy efficiency - the twin challenges for shippingrsquo Mercator Maritime Innovation Research and Education MarchJune 447-454

Reneacute Taudal Poulsen is Associate Professor at the Department of Innovation and Organizational Eco-nomics at CBS He is also affliated with the Centre for Shipping Economics and Innovation at CBS Reneacute Taudal Poulsen holds a PhD degree in marine environmental history from the University of Southern Denmark and he has worked within the field of maritime business studies for the last seven years He has published in such journals as Fisheries Research Business History and Scandinavian Economic History Review

His current research intersts concern the environmen-tal challenges faced by the global shipping industry and business model innovation in the maritime domain

Research

35CSQ

It is clear that shipping companies cannot fully bridge the energy efficiency gap alone In fact factors beyond the control of in-dividual shipping companies and various structural or legal barriers prevent shipping from fully realizing the slow steaming po-tential

Port congestion remains a world-wide prob-lem and causes ships to spend remarkably long periods inactive Despite the financial crisis and the large drop in shipping freight markets after 2008 many loaded vessels sit at anchor outside ports waiting for berths In some cases they wait for a few hours In other cases for days weeks or even months Instead of waiting the ships could have re-duced speeds and saved fuel And the de-livery and the loading of the cargo in port would not have been delayed in any way However in many cases shipping companies or ship operators cannot reduce speed in spite of port congestion

Educational barriers

Energy efficiency gaps in shipping are also evident when the fuel consumption levels of sister ships are compared Even though the vessels are identical and operate in the same waters studies have shown that their fuel consumption may differ by several Decisions made by the crews onboard and by managers in the onshore organizations clearly influence the level of fuel consump-tion For instance if a captain selects only very small course deviation margins when coding the autopilot of the ship the shiprsquos rudder will move frequently to keep the ship on the exact course all the time This will slow down the ship and cause higher fuel consumption than if the captain had allowed for slightly wider margins and the wider margins would not have any effect on the safety of the ship Decisions made by the commercial depart-ments eg on how to crew the vessels how to monitor vessel fuel consumption or which new equipment to install onboard may also

have a large impact on fuel efficiency and emission levels If shipping company man-agers can nurture a fuel saving culture this could potentially make a difference Since 2007 or 2008 shipping companies have in-deed started to facilitate such organizational changes but educational barriers remain a problemOnshore truck drivers are now offered fuel saving courses but fuel-saving is not a major part of the traditional curriculum in nautical schools or in the commercial education of shipping trainees For good reasons the nau-tical educations have focused on maritime safety but this has caused them to neglect the climate challenge in shipping and the is-sue of fuel saving In fact no single nauticaltext book on maritime fuel savings has yet been published and according to teachers and students in the nautical schools this serves as an educational barrier to ener-gy-efficiency improvements The technical level of education for commercial employees in shipping companies may also hinder im-provements in energy-efficiency Some com-

mercial shipping employees may not have sufficient training to fully see and acknowl-edge the consequences of their decisions on fuel consumption In short it seems that fuel awareness and the educational systems have responded more slowly to the climate chal-lenge than the rise in fuel prices may other-wise suggest

For shipping to bridge energy-efficiency gaps education ndash both nautical and com-mercial ones ndash clearly is an area to set in Here the potential for innovative solutions is both evident and pertinent Changing educational systems and awareness is no easy task bearing in mind the global nature of the shipping industry and international crewing of the world fleet It is clear howev-er that educational upgrading is necessary for shipping to effectively address the cli-mate challenge effectively

Charter parties between ship-operators and shippers state a specific time of arrival for the vessel and in order to avoid claims ships proceed to port accordingly regardless of berth availability Experiments with new more flexible charter parties which allow for slow steaming in case of port congestion have recently been made Shipping compa-nies have generally been enthusiastic about this flexibility but often shippers remain skeptical Lack of trust between shippers which need the loading of their cargoes as soon as possible and shipping companies may be a cause for this discrepancy Even in cases where the savings made from slow-steaming are split between shipping companies and shippers shippers have re-mained skeptical Port queuing systems may have a role to play here

Many ports including some of the major container iron ore coal and grain ports serve ships on ldquofirst-come first-servedrdquo ba-sis Ships only receive their ldquoticketrdquo in the

waiting line upon their arrival at the port Again lack of trust between the ship-oper-ators shippers and the port authorities may explain this phenomenon Moreover port authorities currently do not have incentives to change queuing practices because they cannot gain a share in the fuel savings made from slow-steaming

The problem is particularly strong in the major tramp shipping segments of tanker and dry cargo shipping where vessels act as ldquotaxis of the seardquo serving numerous shippers and rarely calling at the same ports If the fleet from a shipping company only calls at a particular port once a year and the compa-ny has very short-term relations to individ-ual shippers building trustful relationships between the parties remains a major chal-lenge Solving this problem and realizing the full potential of slow steaming will require systemic innovation in shipping and port systems and further studies are required to identify possible solutions

36 CSQ

The Wind turbine industry -

Emerging global innovation networks in Europe and China

The wind turbine industry has developed into a global network encompassing a large amount of diverse actors within innovation production and installation of wind turbines across the globe

By Stine Haakonsson and Julia Kirch Hollitsch Department of Business amp Politics CBS

market for wind energy Chinese actors have turned China as a location into another im-portant lsquohubrsquo in this network This has led to new forms of innovation collaborations between European and Chinese actors The result has been a complete re-configuration of the industry over the past decade In the International Business and Economic Geog-raphy literatures the development of global production networks in which lead-firms be-come orchestrators of dispersed production

enmark has traditionally played a key role as an lsquoinnovation hubrsquo and com-

panies in Denmark remain among the lead firms within the wind turbine industry Re-cently the industry has reorganized from being located predominantly in the Triad regions (mainly in Europe and the US) to becoming a globally dispersed industry This development can partly be explained by de-velopments in international and national politics Due to the growth of the Chinese

activities in globalized value chains is well established theoretically as well as empiri-cally In the globalization process lead firms relocate production activities to low cost lo-cations by off-shoring and through vertical disintegration and outsourcing to specialized suppliers Producers of wind turbines are no exception However until recently the mar-ket and innovation activities remained con-centrated in Europe and US

With the recent focus on global politics for a post-carbon society the market for wind tur-bines has experienced an immense growth and a high degree of market globalization New locations have developed into main markets One of these is China which since 2010 has been the largest market for wind turbines in the world (in capacity installed) The globalization process in the wind tur-bine can be explained by a combination of offshoring of production by European lead firms mainly through foreign direct invest-ment and establishment of domestic lead firms in emerging markets In 2010 there were four Chinese-owned companies among the top-10 producers of wind turbines as compared to 2003 where all firms on this list were from Europe and the US

D

Julia Kirch Hollitsch

Stine Haakonsson

Stine Haakonsson and Julia Kirch Hollitsch from Depart-

ment of Business and Politics CBS are engaged in the

Sino-Danish Center for Research and Education (SDC)

project on Wind Energy in China Both research on the

current restructuring of industries and firms at the glob-

al level (outsourcing off shoring global value chains)

In particular their research is on 1) the restructuring of

innovation and RampD activities into global innovation net-

works(GINs)2)thechangingroleofemergingmarkets

(ChinaIndiaBrazilSouthAfrica)intheseemergingGINs

and 3) technology transfer and capability building related

to renewable energy

Research

37CSQ

by adapting their products to the Chinese market and through cost-out development activities in the new locations primarily China

As a result the wind industry is today highly knowledge-intensive and internationalized Due to increased attention and investments in sustainable transition policies and car-bon-reducing technology China has over the past decade developed into a high prior-ity investment area for wind turbines Also Chinese companies are upgrading technol-ogy and innovation from the global firms through integration into GINs Moreover the production and innovation networks for wind energy become highly complex and consist of many different suppliers of com-ponents (blades gear boxes control systems bearings) resulting in a variety of network linkages among suppliers of different com-ponents and the wind turbine producers

From our empirical data including more than 40 in-depth interviews collected in 2011 and 2012 in the wind turbines indus-tries in China and Denmark we have identi-fied some very interesting patterns We have identified very different characteristics of the GINs established by the Chinese wind tur-bine industry and the European wind tur

Emerging Global Innovation Networks

Innovation processes are also moving be-yond the boundaries of individual compa-nies and national innovation systems Firms engage in cross-border innovation networks spanning different innovation systems which may be national regional or sectorial in or-der to stay competitive in the global econ-omy Chinese lead firms are entering this scene too The result is globally organized networks of interconnected and integrated functions and operations by firms and non-firm organizations engaged in the develop-ment and diffusion of innovations so-called Global Innovation Networks (GINs) Lead firms internationalize innovation through strategies of exploitation global generation of innovation and global techno-scientific collaborations Chinese wind turbine pro-ducers ndash acknowledging their resource and capability deficiency ndash pursue strategies of innovation network integration through strategies of global generation of innovation These firms link up with specialized Europe-an actors such as core component suppliers through partnerships and networks in or-der to tap into the technology of firms from developed countries and upgrade Mean-while European companies internationalize through exploitation strategies for example

bine industry Although Danish and Chinese actors are experiencing a re-organization of activities and establish networks and globa-linnovation strategies the result is very dif-ferent

The industry from Europe and US

The industry from Europe and the US hosts the lead firms in terms of core technology de-velopment Denmark has traditionally played a key role as lsquoinnovation hubrsquo in technology development and global lead firms such as Vestas and Siemens Windpower (previously Danish lsquoBonusrsquo) took its start already in the 1970s The core competences of the Danish wind turbine innovation system are based on large testing facilities and long track records mainly due to the long time-line of experi-ence The wind industry goes 40 years back and therefore Denmark has a good knowl-edge pool within establishing wind farms (aerodynamics minimizing power loss in energy transmission wind mapping and other installation-related technologies)

38 CSQ

that will make it possible to finance the pro-jects ldquoFrom then on our wind turbine pro-jects developed very fastrdquo(Interview Wind Engineer Chinese Academy of Sciences) Thus this law was a milestone for elevating renewables to a strategic position in China or as expressed by a European lead-firm ldquoWhat drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick offrdquo

Until the turn of the millennium Chinarsquos wind energy industry was largely built on donors acquisition of finished wind turbines and licensed technology from European companies spread on a very small scale into the local industry during the mid 1990s Chi-nese wind turbine technology has evolved from imitation reverse engineering and licensing in the 1980-90s combined with assistance from foreign consultants One example is how DANIDA funded a project in 1986 for Goldwind in Xinjiang which imported 13 units of 150 kW lsquoBonusrsquo (now Siemens Wind Power) turbines

To get beyond the stage of pure imitation several policies have been introduced with the intent to upgrade Chinese manufacturers to obtain indigenous innovative capabilities Policy programs were introduced to enhance Chinese companies to develop wind energy subsidizing wind energy RampD expenditures at varied levels over time establishing a re-newable energy fund and through the ldquo863 Wind Programrdquo under the Tenth Five-Year Plan (2001-2005) Local content require-ments were put in place in which develop-ers of wind energy projects were required to source 70 pct of the content in China These policies ndash which essentially forced foreign manufacturers wishing to sell wind turbines to the Chinese market to establish China-based manufacturing facilities ndash were only removed recently (in 2009) One result was that the foreign companies had to up-grade local suppliers of components

Due to the technological complexity many European (and hereby also the Danish) firms are vertically integrated and have most com-ponents produced in-house or with regular specialized suppliers According to these companies the different parts need to be well adjusted to each other to some extent even co-developed in order to enhance effi-ciency and the lifetime of the wind turbine Likewise the European industry has expe-rienced a concentration of actors with the result that there are only relatively few but large manufacturers in Europe (the larg-est ones are Vestas Siemens Gamesa and Enercon) Together these four companies accounted for about 35 of the global mar-ket in 2010 By seeing the wind turbine as an integrated system these lead firms aim at producing lsquothe Rolls Roycersquo model wind turbines These are strong in terms of qual-ity and standards but generally expensive These firms learn cost-out techniques from their engagement with partners in China

The Chinese Wind Turbine Industry

Today the Chinese wind turbine industry is overly competitive It entails more than 80 wind turbine manufacturers and the Chi-nese market boasts the highest growth rates internationally with an average growth rate of 968 percentages annually in the last three years Several large domestic Chinese wind turbine manufacturers have emerged within the last decade Sinovel and Goldwind take the largest share followed by United Pow-er and Ming Yang just to mention some of them As of the end of 2010 these four were A major driver for the development of the Chinese wind energy market has been the establishment of an institutional context as a comprehensive concerted policy frame-work addressing the development of renewa-ble energies This change in the institutional context was first reflected clearly in the 11th 5-year-plan (2006-2010) which explicitly linked environmental sustainability to the key goal of establishing what was called a harmonious socialist society signalling a socially environmentally and economically sustainable economy With the Renewable Energy Law from 2005 the Chinese wind energy industry really took off as it explicitly seeks to ensure that renewable energy pro-jects have an outlet for their output at prices

Technical barriers and the role of GINs for a post-carbon society

Despite high ambitions in terms of devel-oping innovative capabilities Chinese pro-ducers still produce almost exclusively for the Chinese market However Chinese wind turbine manufacturers have recently started an internationalisation process and some are approaching international markets Not least for tapping into new knowledge

Europe (and Denmark in particular) is per-ceived as a main location from which the Chinese companies can learn more A cou-ple of Chinese companies have already set up RampD centres in Denmark European firms have also initiated RampD centres in new lo-cations primarily China and India In other words GINs can be identified

Our research also points towards important barriers for GINs in the wind turbine in-dustry and for approaching a post-carbon global society Most importantly are the technological barriers intellectual property rights quality issues and issues of limited appropriability of knowledge Further the institutional framework remain relevant for displaying how the sector and the emerging GINs are embedded institutionally socially and technologically Whether actors trans-act knowledge technology and know-how through cooperative innovation activities also depends on how core the technology of a given technology is Still as the market grows in China it seems to have matured in Europe because of changing policies on re-newable energy To sustain the position as a global lsquohubrsquo and world leader in wind tech-nologies there is a strong need for support in Europe as this research really shows how fast the Chinese industry is moving One major result is how important networks are for upgrading companies and it seems that Chinese firms perform better in network strategies and manage to tap into relevant knowledge than the European firms

What drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick off rdquoldquoInterview Wind Engineer Chinese Academy of Sciences

39CSQ

Social Enterprise World

ForumNadine Koumlcher from 180Degrees recounts her experience from the

conference on

Rio de Janeiro Brazil 2012

In the numerous panel debates and parallel track discussion it became clear that Impact Investment is a hot topic among both social entrepreneurs and impact investors a diverse group consisting of corporations founda-tions and potential donors However various obstacles impede a harmonious relationship between the twoSocial enterprises face structural challenges to make themselves more appealing to im-pact investors They have to become more transparent and increase their accountability This includes improving their impact assess-ment and reporting tools However despite much discussion no consensus could be formed on how to optimally conduct im-pact assessment One of the most frequently proposed methodologies involves the use

From the 16th to the 18th of October the CBS Sustainability Platform granted me the opportunity to attend the 5th Social Enter-prise World Forum which took place in Rio de Janeiro Brazil This yearly international conference focuses on social enterprises and their effectiveness in solving social challeng-es The overall theme of the 2012 conference hosted by NESsT was ldquoSocial Enterprise Investing for Impactrdquo Thus for three days over 180 speakers and 650 delegates from 30 different countries shared their experiences regarding impact investment and discussed possibilities to attract new investment by both the public and the private sector for so-cial enterprises

of control groups Story-telling has also been men-tioned to be a powerful tool to provide investors with a proof of outcomesSocial investors are willing to accept returns just below the market rate in exchange for a social return However large profits are still expect-ed and many social enter-prises are afraid of being unable to generate them Social enterprises typically operate on a small scale and are not used to undertake large projects with huge sums of investment given to them Many are too small for social investors to be

attractive as costs are similar for small and large investments although larger invest-ments have a higher payoff

Nichole Echert the CEO of NESsT there-fore pointed out that it is necessary to align expectations between impact investors and social entrepreneurs and to be patient in establishing a relationship between the two groups The expected financial return has to be reasonable close to covering the costs of operation and social returns have to be re-ported to investors by use of clearer criteria

By Nadine Koumlcher Director of Branch Development180 Degrees Consulting Limited

ldquoSocial Enterprise Investing for Impactrdquo

Students

40 CSQ

A highlight of the con-ference was definitely the site visit to a social enterprise project in a recently pacified fave-la It brought further insights on the great variety of social enter-prises that exist in Bra-zil and their missions and struggles We visit-ed a community center at which Comitecirc para

Democratizaccedilao da Informaacutetica (CDI) uses technology to fight poverty and to stimulate entrepreneurship CDI has formed a corpo-rate partnership with Coca Cola which in the same building teaches young locals how to write a CV and find a job Talking to the young locals at the center it became apparent that an increased self-confidence and the in-spiration they get from meeting former now employed participants of the project (eg at Coca Cola) is what they valued most of being part of the class

Participating at the conference was definite-ly a unique and valuable experience I would not want to miss as I tremendously improved my knowledge in the field of social enter-prises through attending the numerous pres-entations and discussions and further met so many inspiring social entrepreneurs impact

In addition it has been stressed that the problem is not a shortage of investment capital (even though the government could promote more impact investment by for instance granting tax breaks) but how to deploy it Social entrepreneurs also have to be aware of the different advantages and dis-advantages of the various types of capital It has to fit their process of establishment and it has therefore been suggested that funds and grants are most optimal in the start-up phase to cover such costs as capacity train-ing There is generally a lack of this early stage financial support Following the initial phase strategic philanthropy money would be most appropriate before impact and final-ly equity investment is sought Furthermore new ways of investment which fit the social enterprise world have to be created replac-ing the current situation of trying to fit social enterprises into the current financial world

investors and students with a genuine inter-est in the field

Participating at the conference was definitely a unique and valuable experience rdquo

ldquo

Social Enterprise World Forum 2013 in

Calgary Canada

The TRICO Charitable Foundation in part-nership with the Social Enterprise Council of Canada and the Social Finance Forum has been selected to host the 6th Annual Social Enterprise World Forum SEWF 2013 will take place October 2-4 2013 in Calgary Al-berta The Forum will present the Canadian social enterprise movement with opportuni-ties to engage learn and share on the inter-national stage

SEWF 2013 will be a gathering of over 1000 Canadian and international delegates who are involved in the social enterprise move-ment where the blending of social and fi-nancial values is core to business Attendees will consist of practitioners (from all sec-tors) funders investors supporters elected officials and public servants from around the world

Nadine Koumlcher

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 7: CBS Sustainability Quarterly 2013 #1

7CSQ

The Cluster on Green Innovation and New Business Models focuses on discussions and challenges around the increasing problems of global warming resource scarcity and en-vironmental deterioration which have a sub-stantial and comprehensive impact on future business conditions Companies must devel-op strategies to mitigate risks from supply disruptions social unrest rising materials costs and pressures from regulators NGOs and the general public The efficient use of resources will be an important competitive parameter and the need for sustainable pro-duction and resource use will open up new opportunities for innovations in technology products services and business models

The focus of the Cluster on Sustainable Tran-sitions in Developing and Emerging Econo-mies stems from the notion that developing and emerging economies (DEEs) are one of the main engines of contemporary growth in the global economy They face massive transitions in economic social and envi-ronmental terms In order to explain how business in these countries can contribute to sustainable growth the Cluster explores (1) innovative approaches and North-South partnerships on technology co-production

This Cluster will explore and analyze theo-ries frameworks and empirical evidence on the conditions and tools for promoting and managing sustainable innovation and busi-ness models with focus on environmental issues The Cluster will seek a coordinated alignment of both technological (and prod-uct and process) development and business model innovation including market plat-forms and infrastructures

Professor Jens Froslashslev Christensen (jfcinocbsdk) and Associate Professor Christian Erik Kampmann (cekinocbsdk) the De-partment of Innovation and Organizational Economics

and transfer within clean-tech industries (2) green innovation networks and capacity building in DEEs (3) social entrepreneur-ship and social business models in DEEs and (4) sustainability strategies of global firms that have implications in DEEs (Base-of-the-Pyramid markets Sustainable Value Chains) Associate Professors Soslashren Jeppesen (sjiklcbsdk) the Department of Intercultural Communication and Management and Stine Haakonsson (shdbpcbsdk) the Depart-ment of International Business and Politics

The six CBS Sustainability Clusters will be

focused on the following themes

Green Innovation and New Business Models

Sustainable Transitions in Developing and Emerging Economies

Stine Haakonsson

Jens Froslashslev Christensen

Christian Erik Kampmann

Soslashren Jeppesen

8 CSQ

The Cluster on Governing Sustainability takes it starting point in the recent flourish-ing of private governance of sustainability initiatives Private actors such as business firms and civil society groups have created numerous initiatives addressing pressing so-cial and environmental problems both at the national and transnational levels Some of these are strictly private others are collaborative efforts with the public sector In this Cluster we are particularly interest-ed in examining corporate codes of conduct public-private partnership agreements labe-ling schemes and standard setting by mul-ti-stakeholder initiatives with a focus on (1) legitimacy and accountability processes and

strategies related to private sustainability governance (2) the effectiveness and impact of sustainability initiatives (3) the dynamics of the relationship between hard and soft law (4) the influence of the state on private sustainability governance and (5) the or-ganization of sustainability management in transnational firms Professor Andreas Rasche (ariklcbsdk) the Department of Intercultural Communi-cation and Management and Associate Pro-fessor Jette Steen Knudsen (jskdbpcbsdk) the Department of International Business and Politics

Governing Sustainability

This cluster invites for exploration of the communicative construction of sustainabili-ty across a variety of interests and stakehold-ers Organizations are traditionally under-stood as instrumental spaces for managers to produce products and processes towards a more sustainable society However increas-ingly organizations appear as social and moral spaces where the meaning and role of sustainability is communicatively negotiated and co-constructed and no definite agree-ment seems to be achieved across publics This development poses new challenges for business in their continous work to appear as legitimate participants vis aacute vis civil society the political system and other organization-alcorporate actors In this cluster we focus on (1) how communication of sustainabili-ty has become a strategic tool for managers working in business ngos and policy-mak-ing (2) how traditional and social media play

an important role in mediating issues of sus-tainability across publics (3) how marketing and branding of sustainability influences consumption and public opinon and (4) how different forms of political and corpo-rate communication (via persuasion facts dialogue etc) about sustainability raise questions about the democratic models that underpin sustainability discourses Against this backdrop the sustainability cluster brings together leading academics from a range of disciplines to explore the role and meaning of communication in a broad sense for the development of sustainability

Cluster leaders Professor Anker Brink Lund (abldbpcbsdk) the Department of Inter-national Business and Politics and Assistant Professors Julie Uldam (juiklcbsdk) and Anne Vestergaard (aviklcbsdk) the De-partment of Intercultural Communication and Management

Communicative Dimensions of Sustainability

Anne Vestergaard

Julie Uldam

Anker Brink Lund

Andreas Rasche

Jette Steen Knudsen

9CSQ

The Cluster on Sustainability in the Post-Growth Economy starts from the realization that the era of perpetual economic growth may be over The Cluster explores and devel-ops ideas and imaginaries of what a sustain-able post-growth economy might look like The purpose of such effort is to transform the end of growth from being the cause of social economic and ecological depredation into being an opportunity for the creation of new forms of economic organization that do not rest upon the condition of growth We ap-proach this challenge by starting to rethink some fundamental economic concepts from the perspective of a post-growth economy

What is a company What is work What is leadership What is money What is con-sumption What is a market And what is in fact economic growth The Cluster will ap-proach these questions theoretically by look-ing into their assumptions rooted in the par-adigm of growth capitalism and empirically ndash by studying actual practices of alternative economic organization Associate Professor Ole Bjerg (oblpfcbsdk) and Professor Bent Meier Soslashrensen (bmslpfcbsdk) the Department of Man-agement Politics and Philosophy

Sustainability in the Post-Growth Economy

The Cluster on Corporate Governance and Leadership for Sustainability Strategy focus-es on managerial behavior and performanc-es related to responsibility in corporations with a particular interest in how managers and leaders in firms relate to and behave vis aacute vis expectations to corporate sustainability strategies policies and action The Cluster will invite discussions that engage with how responsibility issues play a role in shaping systems and models of corporate governance and leadership and conversely how different models impact corporate responsibility and performancesThe emphasis will be placed on bringing into the management debate to what extent responsibility brings demands

for new management competences and man-agement models The Cluster is particularly but not exclusively interested in exploring the relationships between sustainability and corporate performances with (1) board of director characteristics (2) corporate owner-ship structures (3) shareholder activism (4) leadership approaches (5) ethical consider-ations regarding corporate governance and leadership and (6) comparisons of corporate governance and leadership approaches in a Scandinavian context vis-agrave-vis other global contexts

Associate Professor Bersant Hobdari (bhintcbsdk) the Department of Internation-al Economics and Management

Corporate Governance and Leadership for Sustainability Strategy

Bent Meier Soslashrensen

Ole Bjerg

Bersant Hobdari

10 CSQ

Writing a good business case

from a Hollywood perspective

Jenny Mead (left) picture from readthehookcom

On November 28 2012 Kirsti Reitan Andersen temporary project manager at CBS Sustainability Platform interviewed Senior Research-er Jenny Mead Darden School of Business University of Virginia in extension of her visit to CBS Jenny Mead was here to host a workshop and one-on-one sessions on how to write good business cases with a focus on sustain-ability

Interview with Jenny Mead Senior Researcher Darden School of

Business

Could you tell a little bit about yourself

ldquoI have been at Darden School of Business for the past 10 years I write cases about business ethics sustainability strategy and leadership I am not a business person at all but call my-self a writer because that is what I prefer I write stories I have worked in the film busi-ness in Hollywood where I worked as a De-velopment Executive It means that I looked for projects that could be made into movies Again I am not a business person at allIn the 1920s Harvard University started case-based teaching Darden followed through on the case tradition in 1950s Darden has con-tinued to focus on business ethics as key in educating students From the 1950s onwards

in the first year of undergraduate studies we have had a mandatory business ethics course This tactic has developed a large student body which is constantly aware of business ethics as an integrated part of business life The business ethics cases I write have an ele-ment of ethical ambiguity and decision-mak-ing that contains ethical considerationsrdquo You are visiting CBS to host a case-writing workshop and one-on-one sessions with as-piring case-writers What have the partici-pants gained from the workshop

ldquoThey get a primer of what a business case looks like They learn what a case looks like and are given an exercise where they have to

craft a case and have colleagues critique that The second day concerns teaching notes If a professor from another business school wants to teach it they can get the teaching notes that suggest how to teach the casesrdquo

What is a good case and why are cases ben-eficial for teaching

ldquoInstead of using textbooks in classes teach-ers can make use of business cases Generally a case should present a dilemma that has to be solved or a business decision that has to be made by the protagonist in the caseBusiness cases are a good way of placing the student in the shoes of a manager or decision maker Giving him or her the practical expe-

CSQ Interview

11CSQ

Writing a good business case

from a Hollywood perspective

Jenny Mead and Jonas Hedman from Department of IT Management at Copenhagen Busimess School

From the workshop at Copenhagen Business School

riences in a safe environment ndash no company is going bankrupt based on the decisions It is almost real world training but you are not in the real world A feature of case teaching at Darden School of Business is the use of small video clips of the protagonist in the business case Instead of students just reading about the protago-nist in the case the protagonist presents the problem or issue on video to create a lively teaching environmentrdquo

Do businesses actually think about ethicsThat is a good question and I believe there is

a growing awareness I am very impressed by Darden and the students Maybe it is because of the mandatory first year ethics course but the students are very concerned with CSR sustainability and values

I am currently working on a series of cases on conscious capitalism More and more businesses are adopting true values A shift has been made towards conscious capitalism The idea of conscious capitalism is that busi-nesses realize the value of good treatment to all stakeholders Businesses exist to create value for everybody

Relevant links

Darden Case Studies

The Olsson Center for

Applied Ethics (Jennyrsquos

employer)

The Business Roundtable

Institute for Corporate

Ethics

httpwwwcorporate-ethics

orgpublicationscase-studies

httpwwwdardenvirginia

eduwebOlsson-Center-for-

Applied-Ethics

httpwwwcorporate-ethics

org

12 CSQ

SUSTAINABILITY AND

DEVELOPMENT COOOPERATIONInterview with Minister for Development Cooperation

Christian Friis Bach

Did you know that 7 out of 10 of the fast growing economies can be found in Africa Or that DANIDA funds a programme in which CBS and other Danish universities work together with universities in Tanzania Ghana and other countries to increase the quality of research and uni-versity-level education in devel-oping countries

CSQ - Elisabeth Crone Linding amp Stefano Ponte sat down with the Dan-ish Minister for Development Co-operation Christian Friis Bach to hear about how the developing world is moving ahead fast ndash and why Denmark needs to keep up in order to stay relevant

I t is not every day that we meet with min-isters on the top floor of Asiatisk Plads

ndash the official home of the Danish Ministry of Foreign Affairs and DANIDA the inter-national development cooperation branch of the Ministry Nevertheless here we are over-looking the busy waters of the Copenhagen canal and looking forward to a long-planned rendezvous with Christian Friis Bach Min-ister of Development Cooperation since the autumn of 2011

Besides spending time in the academic ranks of Copenhagen University and the political spheres of the European Commission the Minister knows a thing or two about the de-veloping world he has previously devoted his

time to positions in DanChurchAid WWF World Wide Fund for Nature MSActionAid and the Danish Ethical Trading Initiative

In its current strategy DANIDA has put a new focus on green growth renewable en-ergy sustainable agriculture and innovative solutions to enable continued access to scarce resources ndash a quite green agenda in fact But how does this resonate in a developing world that is growing very fast According to the Minister perceptions are changing with more democratic political environments be-ing built

ldquoMore and more developing countries see green growth and sustainability not as stum-

bling stones but as building blocks of a fu-ture strong economy They recognize that in a world of natural resource scarcity and increas-ing prices on for example energy they need to adopt a different growth pattern More and more poor countries are buying into this And therefore we now have a unique opportunity for shaping the political framework and ena-bling environment to create more sustainable developmentrdquo

So how does a business school such as CBS fit into this equation What can we offer

This is a key question for us to ask As the Sustainability Platform was born out of the CBS Business in Society strategy we are in-

CSQ Interview

13CSQ

terested in looking for ways to address grand societal challenges such as ensuring sustain-able development

Christian Friis Bach recognizes that CBS as a research and educational institution has a role to play here ndash maybe even a bigger role than we play now Because even though CBS is known and regarded as a very internation-ally oriented university the Minister encour-ages CBS to go even further in sharpening its global commitment and profile

ldquoMany of the problems that we have related to growth and employment in Europe are not to be found in developed countries I hope that CBS continues to engage internationally in order to shape graduates to tackle global chal-lenges For example 7 out of 10 of the worldrsquos fastest growing economies are in Africa and here I would really urge CBS to have an even stronger engagementrdquo

CBS is involved in the Building Stronger Universities in Developing Countries Pro-gramme (BSU) which is a partnership be-tween research and higher education institu-tions in selected developing countries and all the main Danish universities The long-term goal of the initiative is to make the partici-pating institutions stronger by conducting joint research projects that offer knowledge and solutions to localdomestic and global challenges to produce better graduate pro-grams and for universities to play an increas-ing role in the economic social and political development of their own countries How-ever Christian Friis Bach also encouraged close dialogue with a broader set of partner universities in the developing world as an important way for CBS to shape its research and educational efforts and thus remain rele-vant in the future

Christian Friis Bach highlighted

ldquoIt is a big world And the world moves fast And I think the challenges upon our edu-cational system in Denmark are increasing every day When I go to South Korea China Latin America or Africa I see that they look increasingly towards each other for innovative solutions not towards Europe If we need to remain relevant we do have a challenge hererdquo

For example this means looking at the econ-omies in the world that are the most innova-tive These are in many cases in the develop-ing world so this is when CBS should invest when it comes to partnering in research educational development and knowledge exchange for example among faculty and students

The Minister also notes the advantages that can be gained from globalizing our institu-tions much more broadly and working across borders and academic fields for example on

The Building Stronger Universities in Developing Countries initiative amp CBS

ldquoBuilding Stronger Universities in Developing Countriesrdquo is a partnership between research and higher education institutions in developing coun-

tries and Danish universities The long-term goal of the initiative is to make the participating institutions stronger in the sense that they

bull playanincreasingroleintheeconomicsocialandpoliticaldevelopmentofthesocietiesinwhichtheyarelocated

bull functionasnodesofinnovationandknowledgeproductionprovidingsolutionstolocaldomesticandglobalchallenges

bull produceskilledandmotivatedgraduatesthatcancontributetothefurtherdevelopmentofthesocietiesandaddressthechallenges

faced

The ldquoBuilding Stronger Universitiesrdquo initiative has a structure with four thematic platforms Copenhagen Business School contributes to one of

the four platforms under the initiative the Growth and Employment platform which is a partnership between University of Ghana (UG) Kwame

Nkrumah University of Science and Technology Ghana (KNUST) University of Dar es Salaam Tanzania (UDSM) Sokoine University of Agriculture

Tanzania (SUA) and the major Danish universities From CBS Associate Professors Soslashren Jeppesen and Michael Wendelboe Hansen the CBS

Center for Business and Development Studies is part of the project which for example seeks to develop relevant PhD programmes strengthen

growth and employment relevant research activities and research collaboration and disseminate research findings to stakeholders

wwwbsuudorg

Students Sierra Leone (picture from umdk) Photo Joslashrgen Schytte

When I go to South Korea China Latin America or Africa I see that they look increasingly towards each other for innovative solutions not towards Europerdquo

ldquo

14 CSQ

health technology and business develop-ment in cooperation with developing coun-try researchers And we need to be good at a lot more than ldquojustrdquo development coopera-tion ldquoif we want to remain relevant for exam-ple in Africa on sustainable business we can-not afford to send people out who have worked isolated in the development community here in Denmark So instead of seeing development research as a separate discipline it needs to be integrated into everything we dordquo

That is why the Minister argues for more fo-cus on educating graduates that are experts and specialists but not necessarily within development cooperation Instead he says Denmark needs graduates that can develop the best possible solutions for the developing world within energy technology etc ldquoThe fast-growing economies in China Southeast Asia Latin America Africa do not need spe-cial things made for developing markets they need top innovative solutions and high-quality products and we need to be able to offer that to them if we want to remain relevantrdquo

One of the solutions worth repeating is that of partnerships According to the Minister universities need to remember that partner-ships with other research institutions as well as with private companies and organizations can provide greater insight

ldquoYou need not only public-private partner-ships but large-scale multiple partnership Still universities can sometimes behave as isolated entities Of course universities need to focus on the core business of researching and educating students but they will also in-creasingly be challenged to engage in these in-ternational and multiple partnerships This is where you will find some of the most inspiring

About Christian Friis Bach

Born 1966 in Frederiksberg Denmark Married three children Lives on a hobby farm near Ganloslashse

Present officeMinister for Development Cooperation 3 October 2011 ndash

Education1992-1996 PhD International Economics Royal Danish Agricultural University Copenhagen 1986-1992 MSc Agronomy Royal Danish Agricultural University Copen-hagen

Work Experience2010-2011 Special Advisor for EU Commissioner Connie Hedegaard (UN Global Sustainability Panel) 2010-2011 CEO ViewWorld ApS 2009 Affiliated Professor in International Economics and Development at the University of Copenhagen 2005-2010 International Director DanChurchAid 2002 Journalist at the Danish Broadcasting Corporation (DR) 1999-2005 Associate Professor International EconomicsDevelopment Economics Royal Danish Agricultural University (University of Copenha-gen)

Other engagements2010-2011 Member of the Board of the Danish United Nations Associa-tion 2008-2010 Initiator and Board Member of the Danish Initiative for Ethical Trade 2008-2009 Member of the Danish Africa Commission 2007-2011 Member of the Presidium for WWF World Wide Fund for Nature Denmark 2000-2006 Board Member International Institute for Sustainable Develop-ment 1997-2001 Chairman Mellemfolkeligt Samvirke (Danish Association for International Cooperation)

Christian Friis Bach has published a large number of books reports and ar-ticles in newspapers and magazines Please see wwwfriisbachdk for details

15CSQ

In December 180 Degrees Consulting (180DC) finished its third round of pro-bono social impact consulting projects with even more success than in previous semes-ters All consultants showed dedication and motivation by spending a large amount of their spare time to work with socially con-scious organizations in order to help them to improve their social impact

An overcrowded lecture room during the 180DC information meeting at the begin-ning of the semester and the high number of applications to join the consulting projects were evidence of great interest in 180DCrsquos activities Out of the 139 applicants the top 45 were selected in a two-step recruitment process and grouped into teams of five to work on the nine exciting projects lined up in the Fall 2012 semester

All projects involved Danish-based organi-zations with a strong focus on either social andor environmental sustainability The projects however differed vastly One of the consulting teams assisted Engineers Without Borders and Action Aid in developing an investment rationale for the cultivation of farmland belonging to an Indian orphanage as well as assessing the social return of this investment

Another 180DC team worked with Hertha an organization focused on the reverse in-tegration of ordinary people into a commu-nity of mentally challenged Hertha needed assistance with improving their external reporting setup to stakeholders which was achieved by developing useful tools for the organization to measure both the social and cultural impact of their activities Yet another team of consultants helped the International Rehabilitation Council for Torture Victims optimizing their internal processes and thus helping them pursue their vision of a world without torture

During the consulting period 180DC or-ganized several training sessions for the con-sultants of the organization hosted by pro-fessional consultancies and each team was assigned a mentor with expertise specific to the given project The highlight of the semes-ter was the Final Event at which all of the teams presented their projects in front of a large audience comprised of all 180DC con-sultants the 180DC board members as well as mentors clients and a jury consisting of representatives from PwC DI CBS Sustain-ability Platform BCG and VSFA The juryacutes task was to evaluate the consulting projects based on their written report and oral pres-entation Based on the creativity feasibili-ty and impact potential of the projects the chairwoman of the Jury Birgitte Mogensen PwC announced the winner of the 180DC Social Impact Award Team Engineers With-out Borders

All of the 180DC board members have throughout the semester been working hard to constantly improve the organization in or-der to ensure a high quality of the services provided to clients and of the learning ex-perience provided to students With a new extended board in place 180DC is looking forward to continue its successful journey in the upcoming semester which kicked-off in January with two international projects in Chile and Sierra Leone ndash thanks to the sup-port of the CBS Sustainability Platform

by Nadine Koumlcher

UPDATE FROM 180DEGREES180 Degrees Consulting is an international student consultancy that works with growing non-profits helping them achieve a greater social impact

Contactphone no +45 6061 6399e-mail cph180degreesconsultingorg

Updates from partner organizations at CBS

16 CSQ

The past semester was a good one for 360deg Students for Sustainability Not only did our organization grow to nearly 50 members this fall but we were also nominated in the Student category for the CSR Awards 2012 ndash the second year in a row You can watch the nomination video here httpwwwyoutubecomwatchfeature=player_embed-dedampv=6J5mwn7TcYI Although we didnrsquot win the award representatives from 360deg got the chance to participate in the conferencersquos many seminars ndash and not least hear Bill Clin-ton speak360deg also took it to another level with 360deg Academy The project was a huge success with over 250 people signed up for the ex-tracurricular course It shows that there is a clear interest in CSR and sustainability among the students and that 360deg Students

for Sustainability fill an important gap in providing the students with a forum where they can discuss such issues with each oth-er professors and practitioners We have al-ready started planning Academy 2013 which will run in the fall In addition to 360deg Academy 360deg organ-ised several successful events and seminars the past semester 360deg Develop Prize was kick-started in November and has already found some dedicated social entrepreneurs who will join the coming events this spring as well as the final competition 360deg also co-organized events on microfinance (with Danish Forum for Microfinance) and fair-trade (with Fairtrade Maeligrket) We also created a nice Christmas spirit at the CBS campus with our annual Christmas event featuring cookies a fairtrade Christmas tree

and do nations to Red Cross and Verdens SkoveWhile it is important to look back this semester 360deg is focusing on the future By the end of the semester 360deg Students for Sustainability will have changed its name to oikos Copenhagen After becoming part of the international student network oikos in 2011 we believe that changing our name will emphasize our international commitment and will show the students the many oppor-tunities that are available to them through the oikos network You can read more about oikos International and the other 36 chapters around the world by visiting wwwoikos-in-ternationalorg

Christina EkChairwoman of 360deg and soon-to-be President of oikos Copenhagen

UPDATE FROM 360 STUDENTS

360deg Students for Sustainability

360deg Students for Sustainability is a non-profit student organization based at CBS working to enable and inspire students to make responsible and sus-tainable decisions in their future lives and professional careers

Contact Christina Ek tlf 42 39 99 54 mail info360studentsdk

Live show at CSR Awards 2012

(Picture from csrfondendk)

Updates from partner organizations at CBS

17CSQ

UPDATE FROM PRME

New approach by the Curriculum Development

projectThe commitment to the initiative of the UN Principles for Responsible Management Education (PRME) at CBS has been further sustained via a more targeted approach to the development of the curriculum at the undergraduate programmesAs part of the adherence to PRME CBS has launched a Curriculum Development project to integrate responsible management prac-tices into the study programmes and also make these practices more explicit This is an extensive process that recently has been even more focused on the individual content of each of the study programmes A more cus-tomised approach will only strengthen the analyses of syllabi for each core course and increase the content of explicit responsible management

ldquoThe current restructuring of the Service Management bachelor programme and the development of three specialised lines of ed-ucation offer a great opportunity to align the curriculum development with the Principles for Responsible Management adopted by CBS Currently the CBS Office for Respon-sible Management Education and faculty members from CBS are working to identify opportunities to integrate responsible man-agement education into the educational programmerdquo Assistant Professor Adriana

Budeanu BSc in Business Administration and Service Management CBS In collabo-ration with study boards students and fac-ulties the Curriculum Development project enables a targeted approach to the integra-tion of responsible management content in order to comply with the overall structure of each study programme

Anti-piracy strategy from Maersk was a winning strategy

In collaboration with the CBS Sustainabili-ty Platform the CBS Office for Responsible Management Education arranged an internal competition to identify the best team of stu-dents to represent CBS at the International Business Ethics Case Competition (IBECC) in San Diego later this year The students had to select a business case entailing a challenge with legal financial and ethical aspects and propose a solution to this challenge A jury found the winning team based on a live presentation followed by a QampA session that took place in November 2012

The winners of this unique opportunity were the graduate students Bjoslashrg Ilsoslash Klinkby (MSc IBP) Adam Eithz Kromann (MSc BAP) and Anne Cathrine Gaarde (MSc IBP) They presented a business case on the anti-piracy strategy of Maersk

Winners of the Business Ethics Case Competition

Updates from partner organizations at CBS

18 CSQ

THESIS PARTNERSHIP BETWEEN GRADUATE

STUDENTS AND COMPANIES MATCH-MAKING

On behalf of CBS the Office for Responsible Management Education invited companies and organi-sations to participate in a match-making event with graduate students who were looking to write their thesis within the field of sustainability or social responsibility

Prior to the event that took place on the 6th of February ambitious graduate students were matched with eight very diverse organ-isations all wanting to explore challenge and develop CSR related activities The selection of organisations ranged from Center for So-cialt Ansvar who sought the studentsrsquo advice on how to revitalise their social concepts in corporation with the civic public and pri-vate sector to Wonderful Copenhagen that engaged the students in their aspirations of

retaining Copenhagen as a leading ldquogreenrdquo conference destination This diversity mere-ly reflected the broad-based educational standards that are embodied in the conducts of CBS and enabled students from all study areas to participate With the meeting as the focal point of the event the aim was to in-troduce more students and companies to the possibilities of a thesis partnership On that basis it is the hope that students and organisations will take the initial meeting

further into a collaboration resulting in a thesis that with an analytical and reflected approach hopefully provides valuable insight for all parties The event was indeed a unique opportunity for the students to get the or-ganisationsrsquo unremitting attention but also the organisations expressed their excitement about how the theoretical knowledge and skills of the students could be combined with the specific issues reaching beyond everyday operations of the organisation

PRME

Lene Mette SoslashrensenTel +45 3815 2651E-mail lmsiklcbsdk

PRME Manager

Johanne Duelund Kramer from Wonderful Copenhagen and CBS student Joseacute Bandeirinha from International Marketing and Management

Updates from partner organizations at CBS

19CSQ

A value adding partnership

The match-making event was kick-started by Professor Andreas Rasche who gave a short speech on trends in the field of sustainability and social responsibility Likewise thesis con-sultant Vibeke Ankersborg rounded off the event by guiding both students and organisa-tion representatives in the right direction of obtaining a value adding thesis partnership

By facilitating integration of the theoretical knowledge pool at CBS with real-life busi-ness cases and their challenges this initiative underpins CBSrsquos Responsible Management Education profile ldquoAddressing societal chal-lenges in interaction with business is a key element in our Business in Society strategy and we hope to set up a similar initiative in the futurerdquo Lene Mette Soslashrensen PRME Manager CBS

Being able to engage in a thesis partnership gives us the opportunity to get new and fresh eyes on the challenges and opportunities we face in the aspiration of sus-taining Copenhagenrsquos position as marked leader within sustainable meetings and events ndash and the other way around we see it as a positive contribution to help young students to gain in-depth knowledge on how we actually work with sustainability in practicerdquo

Ulrika Maringrtensson senior communication consultant Wonderful Copenhagen

ldquo

Case Companies

20 CSQ

Update from CBS Centre for Corporate Social Responsibility

cbsCSR celebration10 years anniversaryOn Thursday November 22 2012 CBS Centre for Corporate Social Responsibility (cbsCSR) celebrated its 10 years anniversary The guest list included prominent guests from both academia and the corporate world Head of Department Dorte Salskov-Iversen President Per Holten-Andersen and cbsCSR Director Esben Rahbek Pedersen bid all a warm welcome to an afternoon of inspirational talks and celebration of the Centre

Susanne Stormer followed and initiated her presentation with a brief recap of Novo Nor-diskrsquos history and continuous development of corporate sustainability practices She em-phasized how Novo Nordisk with the help of Professor Ed Freeman has prioritized a close relationship with their stakeholders and learning with them as a means to reach a higher level of corporate sustainability An additional key take-away from Susanne Stormer was the notion of transformational partnerships She argued that corporations NGOs and other stakeholders should use each other to form transformational partner-ships instead of just transactional partner-ships She claimed that in order to address and solve the problems in todayrsquos world the issues have to be addressed at the roots ndash in cooperation with stakeholders

The program had been divided into two ses-sions Each session ended with a panel dis-cussion that gave the audience the opportu-nity to track the developmental trajectory of CSR and participate in the discussion of the future direction of CSR

In the first session which focused on the history of CSR Professor Lucia Reisch from Department of Intercultural Communica-tion and Management CBS Susanne Storm-er VP of Corporate Sustainability at Novo Nordisk and Professor Gail Whiteman from Rotterdam School of Management present-ed their perspectives on the development of CSR up until nowProfessor Lucia Reisch set the stage with an enlightening introduction to the history of sustainable development and emphasized balance on the triple bottom line as key

Professor Gail Whitemanrsquos presentation highlighted both the past and the future of CSR Her main topic was how to deal with planetary boundaries She drew attention to inherent implications of teaching sustaina-bility and CSR at a business school and ar-gued that in order for students and business executives to understand the implications of planetary boundaries and their importance classes should be taught in nature

In the second session Annette Stube Head of Group Sustainability in AP Moller ndash Maersk Simon Pickard Director General at ABIS and Professor Andreas Rasche from cbsCSR presented their views on the future of CSR

Updates from partner organizations at CBS

21CSQ

The topics in the second panel debate evolved around some of the same issues as in the first panel debate The audience was very interested in the educational aspect of CSR and sustainability and a discussion fol-lowed concerning the issues of lsquopreaching to the convertedrsquo Research shows that 75 of CSR courses are not mandatory 1 thus those students and executives who have a natural interest in CSR and sustainability enroll for these courses The speakers agreed that this posed a challenge for the future and that business schools might have to re-invent themselves in this regard They stressed that it is crucial that CSR and sustainability courses become mandatory Also the prac-titioners advocated in-company learning They set forth the argument that it may be a long time before current students will have sufficient impact on the corporate sector but also because the corporate sector and the ac-ademic world can learn from one another

Sum-up of key perspectives for the future

So how has lsquothe business of business really changedrsquo and in what direction From the afternoonrsquos discussions there were two recur-ring topics Susanne Stormer briefly touched upon it when she talked about transforma-tional partnerships Annette Stube and AP

Annette Stube set forth the argument that ldquothe business of business has really changedrdquo She gave an example of how AP Moller ndash Maersk should use their position in the shipping industry to facilitate substantial changes Simon Pickard supported her argu

ment stating that it is not possible for single corporations to make a difference but that clusters of corporations have to collaborate to push changes If corporations do not join forces they risk only making incremental changes Simon Pickard further argued paraphrasing Andrew Pettigrewrsquos argument that in the course of time there has been a conceptual change in the argument for CSR He pointed to the fact that it started out as a moral or philanthropic enterprise and is now perceived as a governance case Simon Pickard pointed to the fact that the future of business is to create shared value ie creat-ing economic value that also creates value for society at large Building on these re-marks Andreas Rasche discussed the future of standards and codes in the field of CSR Emphasizing a variety of case examples he argued that while standards have proliferated in recent years eg certification schemes in the global coffee and apparel industries there is a need to more actively manage the co-ex-istence of these initiatives in order to avoid overlap Rasche also highlighted the pivotal role of consumers who need to acknowledge standards and labels as market signals and factor social and environmental concerns into purchasing decisions

Moller ndash Maersk has it as an integrated and crucial part of their CSR policies and Simon Pickard highlighted how instrumental the-ories are no longer enough The concept of shared value is inescapable and it is what the lsquobusiness of businessrsquo in the early 21st centu-ry is really about

A second topic which also attracted a lot of attention was the importance of continuous education of both lsquothe convertedrsquo but also of opponents of CSR and people who are not aware of the importance of CSR and sustain-ability In-company learning was depicted as a crucial part of the development of CSR and sustainability however a physical change in the teaching settings is also required to meet the approaching environmental challenges

Centre Director Esben Rahbek Pedersen concluded the conference and the winners of the prize of 25000 DKK to participate in the IBECC case competition in San Diego in May 2013 were announced and the celebra-tion of cbsCSR ended with a reception

Thank you to all the speakers moderators and guests for an inspirational afternoon

By Elise Lind Jacobsen and Line Pedini Rasmussen cbsCSR

1Rasche A Gilbert DU and Schedel I (2013) Cross-Disciplinary Ethics Education in MBA Programs Rhetoric or Reality Academy of Management Learning and Education (forthcoming)

Three of the keynote speakers (from left) Professor Gail Whiteman from Rotterdam School of Management VP of Corporate Sustainability at Novo Nordisk Susanne Stormer and Sustaina-bility Professor at CBS Lucia Reisch

Simon Pickard Director General at ABIS

22 CSQ

UPDATE FROM

CBS GOES GREENThe Green Associate Program

2012 was an exciting year for CBS Goes Green with many great achievements One of the new initiatives that was launched in 2012 was the Green Associate Program Here CBS students were able to volunteer in a program to support sustainable behavior among students and staff at CBS More precisely 25 CBS stu-dents put in 30 hours of voluntary work to help with the planning and execution of Green Week - a week consisting of a lineup of successful companies shar-ing their sustainable initiatives and thoughts The overwhelming interest in sustainability and sustain-able business among the students has made it evi-dent that the Green Associate Program should con-tinue in 2013 We at CBS Goes Green look forward to this as well as all of the other initiatives we will be conducting in 2013

The following is an extract of an article that three of the associates wrote themselves This extract shows the associatesrsquo own experience working with CBS Goes Green

What does it mean to be an

associate with CBS Goes Green

In Week 39 CBS turned into a plethora of green initia-tives and events in order to make CBS reach its sustaina-bility goals for 2020 Both students and employees at CBS were asked to become a Green Ambassador to help CBS be smarter greener and better

But many of you may wonder how it is to be one of the people behind the scene As associates we have been help-ing out before and during Green Week in order to establish an event that would reach all corners of CBS This has re-quired both time and effort in order to make things work out but in the end there are also a lot of gains from being an associate

Firstly as an associate you get to expand your network You get to work with people from different studies countries and ages and you also get to talk to many different people while promoting

A bonus about being an associate is also that you get an official certificate which can be attached to your resume This shows that you have put an effort into making Green Week happen

Furthermore by being an associate you feel like you have a larger impact on making CBS a greener place Instead of being an ambassador and only doing the things you can do you get to be the person who raises awareness about sustainability You may influence people to make the right choices and it makes you feel good

Lastly it also gives you a feeling of responsibility because you work under an official part of CBS CBS Goes Green ndash a unit with a clear agenda and a clear vision

By Michael Nguyen Christian Charity and Christian-Philip Lundahl

Updates from partner organizations at CBS

23CSQ

International conference on sustainable biofuels presents latest research

By Barbara Louise Bech Department of Business and Politics CBS

EU Renewable Energy Directive

In 2009 the EU RED set a mandatory target for member states to use a minimum of 10 renewable energy sources in the transport sector by 2020 of which biofuels is expected to be the main contributor This is part of a policy to cut greenhouse gas emissions promote the green technology sector develop rural areas and reduce dependency on fos-sil fuels Due to increasing controversies claiming lack of sustainability in first generation biofuels based on food crops recently the EU pro-posed an amendment to the Directive limiting the share of first gener-ation biofuels to 5 of the targeted 10

The debate quickly zoomed in on the sustainability criteria as outlined in the EU RED drawing attention to the lack of social safeguards The general consensus is that the concept of sustainability is too narrow-ly defined Several case studies (Mozambique Brazil and Indonesia) show that basic labor and human rights of local populations are not protected by RED and the directive is more viewed as an environmen-tal safeguard This discussion raised questions in regard to the effects of RED globally (eg sustainable production in developing countries) and in this context whether EU legislation can have a lsquotrickle downrsquo effect on national standards of nation-states outside the EU In this re-gards one could ask if enforcement at the local level falls under the re-sponsibility of the EU but since first generation biofuels are produced outside the EU it is an important issue for European consumers ndash al-though interest is currently mainly driven by NGOs

On November 19-20 2012 the Copenhagen Biofuels Research Network (COBREN) held an international conference on sustainable biofuels inviting 30 research-ers from around the world to present and discuss their latest research During the two day conference focus was the sustainability criteria of the EU Renewable Energy Directive (RED) voluntary certification schemes and their impacts on sustainability and social safeguards in producer (developing) countries in particular and governance complexity of the biofuel system which has grown considerably over the past decade

Rough guide to biofuelsThere are two types of biofuels biodiesel and ethanol First generation biofuels (1G) are based on food crops and feed stocks such as palm oil soybean and rapeseed used for the production of biodiesel and sugarcane and corn for ethanol The produc-tion of biofuels increased heavily in the 2000s questioning the sustainability of 1G A number of issues have been claimed as key impediments to sustainable biofuel production such as deforestation competition with food production and increasing food prices loss of biodiversity lack of social and environmental safeguards and indirect land use change (ILUC) These contro-versies have led to a call for the promotion of second generation biofuels (2G) which are typically based on agricultural waste (eg straw) plants and forestry residues (also called lignocellu-losic biomassmaterials) However the immediate problem is that there is yet to be developed a market for 2G as they are more costly to produce (require longer and more complex production process)

CBS Sustainability Platform co-director and organizer of the COBREN conference Stefano Ponte doing a presentation

Event

24 CSQ

Voluntary certification schemes

In relation to how standards and certifications can impact sustainable biofuel production discussions pointed to the important difference be-tween mandatory and voluntary schemes As the controversy of sus-tainable biofuels in particular first generation is rolling out special attention has been given to biofuel production competing with food production ILUC value of emissions reduction and environmental and social issues This have off sprung a proliferation in private certifi-cations and during the conference it was discussed intensely whether these schemes have an actual effect on sustainability Depending on the point of view certifications can fill out the holes in legislation and act as a tool to force companies to comply with sustainability crite-ria However the development processes of new certifications may not be inclusive of relevant stakeholders (eg representatives of local populations) Additionally the nature and governance of the networks steering these processes is not always transparent and may favor one interest over the other This intense discussion led to the question of the purpose of certifications Can we use them for anything other than as a CSR PR tool as long as consumer awareness is as low as it is and how do the different regional drivers influence sustainability as a concept The answers to these questions are not easily found and it will be interesting to observe the future development and partnership between public and private sector

Governing the biofuel industry

Within the past decade biodiesel production has risen from below 30PJ in 2000 to 572PJ in 2009 globally and fuel ethanol production has increased from 340PJ to 1540 PJ respectively As the market expands more actors eg governments international organizations civil soci-ety and NGOs private sector networks and companies and profes-sions (biofuel experts and consultants) get involved and play different roles to promote their own agendas Being an emerging industry the structure of the biofuel system shows hybrid forms of governance with many actors As controversies of biofuelsrsquo sustainability develop more issues are added to the agenda giving life to more actors and interests in the governance structure Research shows a shift in power balance as private companies and NGOs increasingly push the agenda The dis-cussions during the conference centered on the complexity of sustain-ability issues calling for mixed governance responses and governance instruments such as standards and certifications which in return need to be followed up with endorsement instruments Given these com-plexities the question is whether the biofuel industry is too difficult to govern as long as the governing systems (for instance the EU) cannot accommodate expectations of all stakeholders

Indirect land use change (ILUC)ILUC is the unintended consequence in terms of more carbon emis-sions due to land use change around the world induced by the expan-sion of croplands for biofuel production When land that could be used to grow food and feed crops is used to grow energy crops this leads to existing agricultural production moving to another area or country where land is converted When this land is cleared and converted to cropland and because natural lands (rainforests and grasslands) store and sequester carbon in their soil and biomass a net increase in GHG emissions can occur Due to this change in the carbon stock of the soil and the biomass ILUC has consequences in the GHG balance of a biofuel Adding to this complexity models for ILUC calculations are not mainstreamed and thus difficult to assess internationally

25CSQ

Mellemfolkeligt Samvirke (MS) or Action Aid Denmark is a Danish NGO founded back in 1944 The

organizations key objective is to fight poverty by ensuring greater political influence for the worldrsquos poor and margin-alized at the local national and international levels MS works to bring about long-term development in the worldrsquos poorest countries focusing especially on education co-

operation and the ability to organize MS mainly works in Africa Read more about the organizationrsquos work

at wwwactionaiddk

Action Aid

A private sector view on the future of sustainable biofuels

By Barbara Louise Bech Department of Business and Politics CBS

nergy security continues to be an eminent concern in a world of finite resources For a long time biofuels have been viewed as

one of the key solutions to replace our dependency on fossil fuels and battle climate change but in recent years controversy has contested the sustainability of first generation biofuels based on food stock Issues such as lack of environmental safeguards causing loss of biodiversi-ty and deforestation and lack of social safeguards ensuring land and labor rights in producer (developing) countries have been claimed as key impediments to sustainable biofuel production Critical observers also argue that the emission savings of biofuel use in compar-ison to fossil fuels can become much smaller (or even disappear) when indirect land use change (ILUC) is included in the calculations Furthermore bi-omass production from food stock is argued to compete with food production and in-creasing food prices

The Danish NGO Action Aid has been engaged in biofuels since 2008 and is par-ticularly involved in protecting womenrsquos rights and preventing land grabs in de-veloping countries ldquoWe are very concerned about land use when it comes to first genera-tion biofuels This relates both to the people who are dependent on the land and to food security We rarely see good combinations where the local populationrsquos needs are taken into consideration The energy crops grown on the local farmerrsquos land donrsquot benefit him and local consumption is essential for developmentrdquo explains Kirsten Hjoslashrnholm Soslashrensen political advisor Action Aid Denmark

It is therefore believed by many that second generation biofuels is the only way forward to avoid competition with food and avert ILUC Next generation biofuels is based on lignocellulosic biomass such as agricultural and household waste and forest residues The Biorefining Alliance represents a cluster of leading Danish companies within the renewable energy sector with an ambition to promote second gener-

ation biofuels and make Denmark a world leader of technology and bi-ofuel productionldquoDenmark has very strong competencies in green tech and as a society we have put a lot of money in its development This is go-ing to be a huge deal globally so we are asking whether Denmark wants to be a customer or a producer What we are working for is of course that we become a lead exporter of technology but also that Denmark produces second generation biofuels commercially Even though we are a small country we cannot settle on selling know-how Denmark also needs to have some industrial productionrdquo says Anne Grete Holmsgaard di-

rector of Biorefining Alliance In her view Denmark needs to keep a firm grip on developing innovation or it will slowly but

steadily move out of the country In this regard she views sustainability criteria for biofuels as an in-

novator and not a hindrance

The Sustainable Biofuels Network (SBN) is another cluster of private companies trying to facilitate the transition from fossil fuels to biofuels in the transport sector For the aviation industry biofuels are considered

to be the only alternative to fossil fuels and the industry firmly believes that biofuels will

survive according to Robert Arendal chairman of SBN ldquoThe aviation industry has set very clear

guidelines for the use of biofuels We are not going to use food based biofuels and we will minimize the use of fresh

water By 2050 our target is to use 50 biofuels in the global aviation so we really need to move fastrdquo he explains adding that living up to sustainability criteria includes being careful about where biofuels are produced ldquoBut it should be produced all over the world and close to the 1600 airports worldwide that account for 95 of all aviationrdquo

he technology for second generation biofuels is already here but the problem is that production costs are too high and there is no market As long as prices are not competitive with conventional fuels it will be difficult to move forward ldquoOne might ask why there is no market The customers are certainly there so if I was in the business of producing

E

As part of the COBREN international conference on sustainable biofuels private sector civil society and academia were invited to give their views on sustainable biofuels at a roundtable discussion at an open public seminar held at DIIS November 19 2012

Event

26 CSQ

SBN is a ldquobreeding groundrdquo and ldquoknowledge centerrdquo for the biofu-els industry where synergies are created between all parties within

the biofuels sector SBN focuses in promoting supporting and enabling the commercial development and use of clean and sustainable biofuels for Heavy Road Transportation Shipping and Aviation Emphasis is put on the importance of global standards for biofuels with local as well as international institutions and decision makers to encourage con-

structive guidelines and rules for the development of biofuels SBN adheres to EUrsquos sustainability criteria SBN is a non-profit asso-

ciation established in 2008 Visit their website for more info at wwwsustainablebiofulsdk

Sustainable Biofuels Network(SBN)

The Biorefining Alliance (BA) was founded December 2011 by DONG Energy Novozymes Haldor Topsoslashe and the

Danish Agriculture and Food Council and is a three-year project to politically promote Denmarkrsquos position in the entire value chain from residues to bio-based products The Alliance has set forth a number of recommendations to achieve a sustainable Danish bio-economy Among other these include (i) that all organic

waste be considered a resource (high-value recycling and storable energy) (ii) reducing the cost of manufacturing 2G

bioethanol and (iii) contemplating the establishment of a national center for sustainable materials

Biorefining Alliance

second generation biofuels I would get started right awayrdquo says Robert Arendal The Biorefining Alliance is working on lowering the costs and recommends a stronger regulatory framework with binding targets as it has been done for the wind industry ldquoThere already is a market for first generation biodiesel which is the least sustainable biofuel We need to make a market for second generation biofuels and we know that binding targets work I donrsquot think it is possible to create a market for the lsquogreen consumerrsquo as you have one for organic food products but I believe that a niche market for HRT (Heavy Road Transport red) such as public bus transport could be a supplementrdquo concludes Anne Grete Holmsgaard

How the future for sustainable biofuels will shape depends on political will to create a market for second generation and the ability of private sector to innovate and bring prices down Oil production is claimed by some to already have peaked and exploring new geographical areas for extraction could be as costly as kick-starting the market for second generation biofuels although much less sustainable As the American ecologist and environmentalist Bill McKibben wrote in his book ldquoDeep Economyrdquo back in 2007

Even before we run out of oil wersquore running out of planetrdquoldquo Bill McKibben

27CSQ

The Transparency-Sustainability NexusA workshop on the practices meanings and tensions of organiza-

tional transparency

n December 5 2012 the Department of Intercultural Communication and Management (ICM) hosted an in-

ternational workshop supported by CBS Sustainability Plat-form and ICM The workshop was organized by Oana Brindusa Albu Mikkel Flyverbom and Hans Krause Hansen respectively PhD Fellow and Associate Professors at ICM The idea of the workshop was spurred by the observation that while ideals of transparency like lsquoopennessrsquo lsquodisclosurersquo and lsquoreportingrsquo are pro-liferating these years the actual construction of transparency within and across organizations is poorly understood Most re-search on transparency is highly normative if not celebratory just as popular discourse about transparency not least in the areas of sustainability and corporate social responsibility is obsessed with ideals of accountability performance and effi-ciency and pervaded by an optimism currently pushed to its extreme with the explosion of new media technologies

But the truth is that we generally know very little about the implications of ideals of transparency when translated into practice in specific issue areas and organizational contexts Importantly each of the contributions to this workshop clear-ly suggested that the contemporary politics of transparency is much more complex contradictory and dynamic than tradi-tionally recognized All papers examined various aspects of the contemporary obsession with transparency and specifically the increasing use of disclosure techniques within and around or-ganizations the rationales or myths underpinning these meas-ures their intended and unintended consequences including implications for identity-making management and govern-ance practices

Clare Birchall initiated the workshop with a paper titled lsquoThe Cultural Politics of Disclosurersquo highlighting how transparency has been positioned as a superior form of disclosure in popular management and organizational literatures and in policy docu-ments In her account the growing preference for transparency is a consequence not only of the positive qualities seen to be intrinsic to transparency itself but also a response to the per-ceived negative characteristics of other forms of disclosure such as gossip scandal and rumor Lars Thoslashger Christensen (with co-author Joep Cornelissen) then analyzed transparency as one of the foundational myths of modernity myths understood here as descriptions of the world in a narrative form which seeks to produce meaning and direction for a community and its members Such lsquoMyths of Transparencyrsquo sustain numerous organizational practices ndash including openness information provision and auditing But as argued by the authors there are conflicting evidence regarding the capacity of such practices to create insights and understandingThat aspirations and techniques of transparency can have seri-ous repercussions was demonstrated by Peter Skaeligrbaeligk (with co-author Mark Christensen) in the paper entitled lsquoAuditing and the purification of blamersquo which analyzed how auditing auditing practices and institutional entities including the po-liticized environments surrounding them are mobilized and participate in blame games and allocation In his paper titled lsquoQuantification transparency and the costs of reassurancersquo Henrik Vollmer analyzed various dimensions of the role of nu-merical records and signaling in generating transparency trust and mistrust

By Hans Krause Hansen Department of Intercultural Communication amp Management

Event

O

28 CSQ

Some of these aspects were also touched upon in the paper lsquoDisrupted Disclosures The Politics of Visibility and Surveil-lance in the Extractive Industriesrsquo by Hans Krause Hansen (with co-author Julie Uldam) which explored the wider field of visibility and surveillance in which contemporary transpar-ency policies are unfolding with examples from the extractive industries Oana Brindusa Albu in her lsquoTransparency and the organizational self everyday politics of identification in Cooperativesrsquo examined the paradoxical effects of values and practices of transparency on collective identity formation pro-cesses drawing upon her ongoing multi-sited fieldwork in co-operatives Under the heading of lsquoThe Improbability of Secrecyrsquo Mark Fenster analyzed the intersections of secrecy and trans-parency with examples from the US government and its efforts to control information which according to the author does not necessarily stop the flow of information Finally Mikkel Fly-verbom and Christina Garsten examined lsquoThe sway of (big) data ndash calculations and advocacy in the name of transparencyrsquo focusing on the operations of data-based forms of corporate lsquotransparency evangelismrsquo and advocacy through revelation including examples from Center for Global Development and Google

In all the workshop was highly successful in investigating not only the historical and mythical foundations of transparency but also the different practices and forms of transparency that currently shape organizations and a wide variety of issue areas It also provided a reminder of the usefulness of investigating a concept of transparency in relationship to a host of other con-cepts such as secrecy myth gossip blame surveillance visi-bility identity information and knowledge The organizers of the workshop wish to thank all workshop participants for their valuable contributions and the CBS Sustainability Platform and ICM for their support

Hans Krause Hansen

Mikkel Flyverbom

Oana Brindusa Albu

ASSOCIATE PROFESSORPHD (ICM)

ASSOCIATE PROFESSORPHD (ICM)

PHD FELLOW (ICM)

29CSQ

Louise Lyngfeldt Gorm Hansen is a PhD Fellow at the Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) She has a back-ground in Chinese Studies from Copenhagen University (BA) the Asian Studies Program at CBS (BSc) and in International Business Stud-ies and Sustainable Business (MSc) from CBS

The aim of her cross-disciplinary PhD project is to explore how the Chinese hydropower sector works with environmental sustainability and more particularly how the concept is understood and performed in the planning phase of a major dam project in the southwestern Chinese province of Yunnan

The aim of the project is to gain a deeper under-standing of how Chinese firms in the renewable energy sector such as hydropower companies understand and value sustainability as well as how such firms tackle the increasing pressure to deliver socially and environmentally balanced solutions to one of Chinarsquos major challenges lowering CO2 emissions in a time with rapidly rising water and energy demands Theoretically the project draws on - and aims to contribute to ndash a combination of Asian Studies and Science and Technology Studies

PHD FocusLouise Lyngfeldt Gorm Hansen

HYDROPOWER

SUSTAINABILITY

30 CSQ

HYDROPOWER

SUSTAINABILITY IN

CHINAy PhD project combines two of my main research interests China and

environmental sustainability I have studied China for a number of years mainly because of an interest in how the Chinese view sus-tainable development So since finishing my masters I have known that I wanted to study how China plan to tackle a sustainable tran-sition in the years to come I saw my chance when CBS announced PhD scholarships in

DanishEuropean-Chinese social science research in collaboration with the newly es-tablished Sino-Danish Center for Education and Research (SDC) and started my PhD in October 2011My PhD project focuses on the Chinese energy sector more specifically the rapidly growing part of the energy sector engaged in renewable energy Here I examine Chinarsquos second largest source of electricity gene-

eration hydropower In recent years China has become increasingly focused on reduc-ing CO2 emissions While some countries such as the US and Australia are decommis-sioning hydropower dams China is looking to large-scale hydropower construction as one of the solutions to a future clean energy supply This means that hydropower devel-opment plays a central role in Chinarsquos sus-tainable transition

However utilization of hydropower is con-troversial not least in China and has met increasing resistance in recent years particu-larly from Chinese and international NGOs the media as well as the scientific commu-nity Critique is most often focused on how or if social and environmental sustainability can be ensured in such large scale projects as the social and environmental impacts of large scale hydropower development are very complex and difficult to measure More gen-erally the viability of relying on hydropow-er as a future source of energy is also being questioned One of the major concerns here is the overarching issue of climate change ie glaciers shrinking and yearly water runoff decreasing This means less stable water flow for hydropower and less water for other pur-poses such as agriculture water supply for down-stream countries etc

By Louise Lyngfeldt Gorm Hansen Asia Research Centre Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) ndash sinodanishcenterdk

M

Picture from SinoHydro promotion material 2011

Research

31CSQ

In contrast to for example the wind power sector in China in which many foreign com-panies have invested the hydropower sector is dominated by a few large state-owned en-terprises Our knowledge of Chinese state-owned enterprises is still limited and there-fore my PhD project is also part of a larger research project at the Asia Research Centre with focus on Chinese state-owned enter-prises and the reform of the public sector in China

In combining these interests my PhD exam-ines how Chinese state-owned enterprises in the hydropower sector tackle the demand to expand hydropower development to help reduce Chinarsquos CO2 emissions while be-ing under increasing pressure to deliver on sustainability principles in the planning and execution of large scale hydropower pro-jects The pressure comes mainly from NGO organizations the media and the scientific community both at home and from abroad I am conducting a case study focused on a specific river in south-western China which has ndash until now ndash not been fully developed for hydropower and the plans for addition-al hydropower dams on the river are still undergoing assessments The project has continually stalled due to disagreements between Chinese government officials at all levels NGOs the media the increasingly deregulated but still state-owned Chinese hydropower companies and the scientif-ic community However the project has very recently been reopened and so will go through another round of assessments in the near future The case is an excellent example of the complexity of hydropower develop-ment decisions in China but it also highlights some of the social and environmental conse-quences of the global push to decrease CO2 emissions

China plays and will continue to play an increasingly important role globally in the years to come However the country also fac-es enormous challenges - not least regarding the environment These challenges also affect economies in Western Europe - for better or worse My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective so

that we here in Europe and in Denmark can more knowledgably and actively engage with China to help solve some of these difficult challenges that eventually affect us all In do-ing this I contribute to gain a better under-standing of the Chinese perspective on envi-ronmental sustainability that can be of use to companies wanting to engage in the Chinese renewable energy sector

My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective rdquoldquo

Picture of the case-river taken by the author in 2012

32 CSQ

FROM BLUEPRINT TO PRACTICE

ENERGY EFFICIENT CONSTRUCTION

By postdoc researcher Satu Reijonen Department of Organization CBS

In the EU almost one third of CO2 emis-sions are attributed to energy used in the construction and use of buildings (FIEC

2007) It is therefore not surprising that the construction sector has recently been subjected to a substantial amount of policy measures to combat its negative effects on climate change In Denmark the state has posed new thresholds for the energy efficien-cy of new buildings including a plan for con-tinuous improvement in the area This far the industry has responded well to these stricter performance requirements In the future re-quirements will rise to levels that are not that easily achieved in the coming years build-ings will have to use 25 less energy than in year 2008 How can these ambitious goals become business as usual

One of the most discussed ways besides add-on technologies such as windmills and solar panels to enhance the energy efficiency of a building is through an energy efficient phys-ical design In practice this means reduction of energy used for heating cooling down and lighting of the building through an optimal orientation and dimensioning of the build-ing

Integrated energy design contrary to add-on technologies can be achieved on a rath-er modest additional budget This should be good news for the sector that today is eco-nomically pressed Indeed today many low energy building projects claim to use the in-tegrated energy design method (IED) when seeking to meet the most ambitious energy related goals In this commentary I wish to discuss some challenges related to the imple-mentation of this design tool

The integrated energy design method sug-gests that one of the main problems in not achieving energy efficiency is that energy related concerns become integrated into the design process too late The method consists of two elements the first of which addresses the need to bring in energy related knowl-edge throughout the design process It sug-gests that design teams ought to be multidis-ciplinary and that architects engineers and experts should work together either co-lo-cated or in a series of workshops Further-more it suggests systematizing energy quali-ty follow-ups into the design process This is all very relevant and inspiring

Oddly enough a closer look on the actual design practices reveals that few seem to ac-tually follow the method of integrated energy design to the point This poses an interest-ing question about the challenges related to the use of such management technologies as vehicles for increased energy efficiency in construction Maybe it is about time practi-tioners and researchers ask themselves what are the boundaries of and challenges related to the use of these tools ndash and what else is required for organizing for more energy effi-cient building design processes

A revolution of relations

Integrated energy design points to the need to bring energy related expertise into the de-sign process at an earlier point In order to achieve this cooperative practices between different professional groups are advocated for Historically energy experts have most-ly been used to respond to rather advanced architectural plans Shared workshops and co-localization suggest a change in these business as usual relations But are they pos-sible and what type of changes do they ac-tually imply in order to function as wished

Research

33CSQ

Satu Reijonen is postdoctoral scholar at the Department of Organization at CBS In her on-going research project she investigates how architects and energy engineers two different profes-sions cooperate and coordinate their work regarding energy related ques-tions in construction design The ways in which relations between and roles of these professions become consti-tuted through socio-material arrange-ments are a central topics in her work Besides studies of work Satu has con-ducted research on environmentally friendly products and markets

ABOUT SATU RAIJONEN

The initiation of this type of new working forms is certainly beneficial for energy effi-cient design However for several reasons they are more difficult to make work than one would assume While it may sound rea-sonable it is after all a tall order Integrating energy related practices into an environment where different visions professions and in-terests meet and the divide between what one profession does is clearly and historically demarcated is demanding While architects need to make room for the intervention of energy experts into the creative work energy experts have to become capable of working creatively and relate to and follow the visual and aesthetic cues from architects In order to work these kind of changes in the profes-sional roles and relations have to resonate with the skills and visions of individual work-ers not only management level design strat-egies It is not surprising that organizational change scholars remind us of the possibility of loose coupling from the strategies placed at the management level (March 1981) What integrated energy design suggests is a kind of a revolution in the ways in which both the architects and the energy engineers envision their role and space of mobility

Linear tools in an unlinear design process

Integrated energy design suggests that the energy performance of the emerging build-ing design be followed up at certain points during the design process The method de-picts a rather mechanistic and linear under-standing of a design process consisting of phases within which iteration may occur While energy related issues may be dis-cussed as quality goals during these phases the method places a lot of emphasis on the check ups performed in the transition from one phase to another Design processes how-ever can also be characterized in a different manner unlinear exploratory and whirl wind type of practices where clear cut phases hardly exist (Akrich 1992 Van de Ven et al 1999) This also applies to the architectural design processes where the object of the de-sign is emergent (Yaneva 2009) This entails that the product the building may change in unexpected ways during any day of the de-sign process If this alternative description of the design processes is viable delegating energy related issues to some predetermined check up episodes may strike a false accord and indeed be contradictory with the aim of enhancing coordination and cooperation between professional groups What happens in between the predetermined checkups may very well be where the energy efficiency of the building becomes configured and where the intervention from the energy experts

would come most needed Perhaps this is why the best performing projects do not blindly follow the steps of the IED method Check ups however and no doubt play a role in verifying and making visible the energy performance for partners outside the design team

Integrated energy design as many other sus-tainability standards and guidelines make visible systematize and legitimize the ex-istence of environmental management and sustainability issues in organizations and work processes In this such way tools create awareness and legitimacy for environmental and sustainability issues The integrated en-ergy design method also suggests a possible way of thinking about what type of design practice might help us to achieve the stricter energy requirements of the future It howev-er falls short in becoming the change agent it suggests This is hardly surprising as a meth-od or a standard of any kind should only be seen as a possibility or as an opening for an inquiry of what the practice could be about Reconfiguring a well established practice is hard work and it would be foolish to trust that a design method would achieve it by itself What the method does is to alert us of the more profound changes in the pro-fessional roles and relations that is needed in order to enable the change However the method due to its rather mechanical under-standing of the design process may come to work against its own ambition of integrating energy issues into the design work In its quest for integration the method defines at which points in time the architectural and the engineering project has to be checked for its energy performance This approach may lead to bringing in energy related concerns in some artificially created points in a design process which may additionally compart-mentalize energy related issues from where the design really happens

Integrated energy design as many other sustainability standards and guidelines make visible systematize and legitimize the existence of environmental management and sustainability issues in organizations and work pro-cessesrdquo

ldquoLiteratureAkrich M (1992) The De-Scription of Technical Objects in Shaping Technology Building Society Studies in Soci-otechnical Change eds WE Bijker and J Law The MIT Press Cambridge Massachusetts pp 205-224

FIEC 2007 The impacts of buildings on climate change httpwwwbuildingsplatformeuepbd_publicationdocFIEC_Memo_p2919pdf on 1222008

March JG (1981) Footnotes to Organizational Change Administrative Science Quarterly vol 26 No 4 pp 563-577

Van de Ven A D Polley R Garud and SVenkataraman (1999) The innovation Journey Oxford Oxford Univer-sity Press

Yaneva A (2009) The making of a building A pragmatist approach to Architecture Bern Peter Lang

More about integrated energy design(IED)

httpwwwintendesigncomosloIntendnsfAttachmentsGuideline_Version_2pdf$FILEGuideline_Version_2pdf

34 CSQ

The climate challenge in

shipping

ldquoGlobal shipping faces two major challenges both of which are caused by its reliance on fossil fuelsrdquo

By Reneacute Taudal Poulsen Department of Innovation amp Organizational Economics

RENEacute TAUDAL POULSEN

ASSOCIATE PROFESSOR DEPARTMENT

OF INNOVATION AND ORGANIZATIONAL

ECONOMICS COPENHAGEN BUSINESS

SCHOOL

orecasts show that the shipping indus-tryrsquos CO2 emissions will most likely continue to rise in the next two to

three decades as demand for world sea-borne trade will expand At present global shipping accounts for approximately 33 per cent of global CO2 emissions but this share will most probably increase in the coming years if many onshore industries succeed in their aims of reducing emission levels

At the same time rapidly rising fuel costs put heavy strain on shipping company budg-ets Historically and until very recently fuel costs were only a minor concern for ship-ping companies but now they often exceed 60 per cent of variable operational costs Fuel savings made through energy efficiency improvements thus represent a win-win sce-nario for the shipping industry and for so-ciety at large They simply make good sense for everyone

Despite the strong incentives for fuel sav-ings numerous studies have demonstrated that shipping fails to implement cost-ef-fective measures to reduce fuel consump-tion Fuel-saving technologies are readily available in the market and in many cases pay-back periods are very short (less than a year) Changes in operational habits which require few if any investments also hold a significant potential for fuel savings

Global shipping thus holds several classic examples of energy-efficiency gaps Gaps occur wherever cost-effective measures to improve energy efficiency fail to materialize The causes for energy efficiency gaps have been a favourite research topic within the field of energy economics for decades and economists sociologists and political scien-tists have been able to identify several means to bridge the gaps However within the mar-itime domain energy efficiency gaps and the climate challenge remain neglected issues Legal barriers

Shipsrsquo fuel consumption rises steeply with speed Hence slow-steaming or just minor speed reductions can lower consumption and emission levels significantly Since oil prices started to rise rapidly a few years ago shipping companies have indeed resorted to various slow-steaming practices and com-panies which succeed in this regard have been able to gain competitive advantages In other words actors in the industry are trying to bridge the energy efficiency gap However and in spite of the strong price signals from the rising fuel prices a potential for fuel sav-ing through slow steaming still remains

FNew CBS research project

A new three year research project at CBS under-

taken by Reneacute Taudal Poulsen for the Department

of Innovation and Organizational Economics will

examine the climate issues bringing insights from

energy economics and innovation management

into the field of shipping economics The project

which is financed by The Danish Maritime Fund

runs from 2012 to 2015 The project asks why en-

ergy efficiency gaps continue to occur in shipping

and how shipping companies and the maritime

industry at large can use innovative business

models and process innovation to turn the climate

challenge and the rising fuel costs into a business

opportunity Energy efficiency gaps occur both

in daily operations and when investments in new

vessels are made This article will briefly present

two examples of energy efficiency gaps from

the operational level and some of the preliminary

findings of the project

References

Jaffe AB and RN Stavins 1994 lsquoThe energy efficiency gap What does it meanrsquo Energy Policy 22 (110) 804-10IMO 2009 Second IMO GHG Study 2009 London International Maritime OrganizationMoriarty P amp D Honnery 2012 lsquoEnergy efficiency Lessons from transportrsquo Energy Policy 46 1ndash3Poulsen Reneacute Taudal 2012 lsquoEmissions and energy efficiency - the twin challenges for shippingrsquo Mercator Maritime Innovation Research and Education MarchJune 447-454

Reneacute Taudal Poulsen is Associate Professor at the Department of Innovation and Organizational Eco-nomics at CBS He is also affliated with the Centre for Shipping Economics and Innovation at CBS Reneacute Taudal Poulsen holds a PhD degree in marine environmental history from the University of Southern Denmark and he has worked within the field of maritime business studies for the last seven years He has published in such journals as Fisheries Research Business History and Scandinavian Economic History Review

His current research intersts concern the environmen-tal challenges faced by the global shipping industry and business model innovation in the maritime domain

Research

35CSQ

It is clear that shipping companies cannot fully bridge the energy efficiency gap alone In fact factors beyond the control of in-dividual shipping companies and various structural or legal barriers prevent shipping from fully realizing the slow steaming po-tential

Port congestion remains a world-wide prob-lem and causes ships to spend remarkably long periods inactive Despite the financial crisis and the large drop in shipping freight markets after 2008 many loaded vessels sit at anchor outside ports waiting for berths In some cases they wait for a few hours In other cases for days weeks or even months Instead of waiting the ships could have re-duced speeds and saved fuel And the de-livery and the loading of the cargo in port would not have been delayed in any way However in many cases shipping companies or ship operators cannot reduce speed in spite of port congestion

Educational barriers

Energy efficiency gaps in shipping are also evident when the fuel consumption levels of sister ships are compared Even though the vessels are identical and operate in the same waters studies have shown that their fuel consumption may differ by several Decisions made by the crews onboard and by managers in the onshore organizations clearly influence the level of fuel consump-tion For instance if a captain selects only very small course deviation margins when coding the autopilot of the ship the shiprsquos rudder will move frequently to keep the ship on the exact course all the time This will slow down the ship and cause higher fuel consumption than if the captain had allowed for slightly wider margins and the wider margins would not have any effect on the safety of the ship Decisions made by the commercial depart-ments eg on how to crew the vessels how to monitor vessel fuel consumption or which new equipment to install onboard may also

have a large impact on fuel efficiency and emission levels If shipping company man-agers can nurture a fuel saving culture this could potentially make a difference Since 2007 or 2008 shipping companies have in-deed started to facilitate such organizational changes but educational barriers remain a problemOnshore truck drivers are now offered fuel saving courses but fuel-saving is not a major part of the traditional curriculum in nautical schools or in the commercial education of shipping trainees For good reasons the nau-tical educations have focused on maritime safety but this has caused them to neglect the climate challenge in shipping and the is-sue of fuel saving In fact no single nauticaltext book on maritime fuel savings has yet been published and according to teachers and students in the nautical schools this serves as an educational barrier to ener-gy-efficiency improvements The technical level of education for commercial employees in shipping companies may also hinder im-provements in energy-efficiency Some com-

mercial shipping employees may not have sufficient training to fully see and acknowl-edge the consequences of their decisions on fuel consumption In short it seems that fuel awareness and the educational systems have responded more slowly to the climate chal-lenge than the rise in fuel prices may other-wise suggest

For shipping to bridge energy-efficiency gaps education ndash both nautical and com-mercial ones ndash clearly is an area to set in Here the potential for innovative solutions is both evident and pertinent Changing educational systems and awareness is no easy task bearing in mind the global nature of the shipping industry and international crewing of the world fleet It is clear howev-er that educational upgrading is necessary for shipping to effectively address the cli-mate challenge effectively

Charter parties between ship-operators and shippers state a specific time of arrival for the vessel and in order to avoid claims ships proceed to port accordingly regardless of berth availability Experiments with new more flexible charter parties which allow for slow steaming in case of port congestion have recently been made Shipping compa-nies have generally been enthusiastic about this flexibility but often shippers remain skeptical Lack of trust between shippers which need the loading of their cargoes as soon as possible and shipping companies may be a cause for this discrepancy Even in cases where the savings made from slow-steaming are split between shipping companies and shippers shippers have re-mained skeptical Port queuing systems may have a role to play here

Many ports including some of the major container iron ore coal and grain ports serve ships on ldquofirst-come first-servedrdquo ba-sis Ships only receive their ldquoticketrdquo in the

waiting line upon their arrival at the port Again lack of trust between the ship-oper-ators shippers and the port authorities may explain this phenomenon Moreover port authorities currently do not have incentives to change queuing practices because they cannot gain a share in the fuel savings made from slow-steaming

The problem is particularly strong in the major tramp shipping segments of tanker and dry cargo shipping where vessels act as ldquotaxis of the seardquo serving numerous shippers and rarely calling at the same ports If the fleet from a shipping company only calls at a particular port once a year and the compa-ny has very short-term relations to individ-ual shippers building trustful relationships between the parties remains a major chal-lenge Solving this problem and realizing the full potential of slow steaming will require systemic innovation in shipping and port systems and further studies are required to identify possible solutions

36 CSQ

The Wind turbine industry -

Emerging global innovation networks in Europe and China

The wind turbine industry has developed into a global network encompassing a large amount of diverse actors within innovation production and installation of wind turbines across the globe

By Stine Haakonsson and Julia Kirch Hollitsch Department of Business amp Politics CBS

market for wind energy Chinese actors have turned China as a location into another im-portant lsquohubrsquo in this network This has led to new forms of innovation collaborations between European and Chinese actors The result has been a complete re-configuration of the industry over the past decade In the International Business and Economic Geog-raphy literatures the development of global production networks in which lead-firms be-come orchestrators of dispersed production

enmark has traditionally played a key role as an lsquoinnovation hubrsquo and com-

panies in Denmark remain among the lead firms within the wind turbine industry Re-cently the industry has reorganized from being located predominantly in the Triad regions (mainly in Europe and the US) to becoming a globally dispersed industry This development can partly be explained by de-velopments in international and national politics Due to the growth of the Chinese

activities in globalized value chains is well established theoretically as well as empiri-cally In the globalization process lead firms relocate production activities to low cost lo-cations by off-shoring and through vertical disintegration and outsourcing to specialized suppliers Producers of wind turbines are no exception However until recently the mar-ket and innovation activities remained con-centrated in Europe and US

With the recent focus on global politics for a post-carbon society the market for wind tur-bines has experienced an immense growth and a high degree of market globalization New locations have developed into main markets One of these is China which since 2010 has been the largest market for wind turbines in the world (in capacity installed) The globalization process in the wind tur-bine can be explained by a combination of offshoring of production by European lead firms mainly through foreign direct invest-ment and establishment of domestic lead firms in emerging markets In 2010 there were four Chinese-owned companies among the top-10 producers of wind turbines as compared to 2003 where all firms on this list were from Europe and the US

D

Julia Kirch Hollitsch

Stine Haakonsson

Stine Haakonsson and Julia Kirch Hollitsch from Depart-

ment of Business and Politics CBS are engaged in the

Sino-Danish Center for Research and Education (SDC)

project on Wind Energy in China Both research on the

current restructuring of industries and firms at the glob-

al level (outsourcing off shoring global value chains)

In particular their research is on 1) the restructuring of

innovation and RampD activities into global innovation net-

works(GINs)2)thechangingroleofemergingmarkets

(ChinaIndiaBrazilSouthAfrica)intheseemergingGINs

and 3) technology transfer and capability building related

to renewable energy

Research

37CSQ

by adapting their products to the Chinese market and through cost-out development activities in the new locations primarily China

As a result the wind industry is today highly knowledge-intensive and internationalized Due to increased attention and investments in sustainable transition policies and car-bon-reducing technology China has over the past decade developed into a high prior-ity investment area for wind turbines Also Chinese companies are upgrading technol-ogy and innovation from the global firms through integration into GINs Moreover the production and innovation networks for wind energy become highly complex and consist of many different suppliers of com-ponents (blades gear boxes control systems bearings) resulting in a variety of network linkages among suppliers of different com-ponents and the wind turbine producers

From our empirical data including more than 40 in-depth interviews collected in 2011 and 2012 in the wind turbines indus-tries in China and Denmark we have identi-fied some very interesting patterns We have identified very different characteristics of the GINs established by the Chinese wind tur-bine industry and the European wind tur

Emerging Global Innovation Networks

Innovation processes are also moving be-yond the boundaries of individual compa-nies and national innovation systems Firms engage in cross-border innovation networks spanning different innovation systems which may be national regional or sectorial in or-der to stay competitive in the global econ-omy Chinese lead firms are entering this scene too The result is globally organized networks of interconnected and integrated functions and operations by firms and non-firm organizations engaged in the develop-ment and diffusion of innovations so-called Global Innovation Networks (GINs) Lead firms internationalize innovation through strategies of exploitation global generation of innovation and global techno-scientific collaborations Chinese wind turbine pro-ducers ndash acknowledging their resource and capability deficiency ndash pursue strategies of innovation network integration through strategies of global generation of innovation These firms link up with specialized Europe-an actors such as core component suppliers through partnerships and networks in or-der to tap into the technology of firms from developed countries and upgrade Mean-while European companies internationalize through exploitation strategies for example

bine industry Although Danish and Chinese actors are experiencing a re-organization of activities and establish networks and globa-linnovation strategies the result is very dif-ferent

The industry from Europe and US

The industry from Europe and the US hosts the lead firms in terms of core technology de-velopment Denmark has traditionally played a key role as lsquoinnovation hubrsquo in technology development and global lead firms such as Vestas and Siemens Windpower (previously Danish lsquoBonusrsquo) took its start already in the 1970s The core competences of the Danish wind turbine innovation system are based on large testing facilities and long track records mainly due to the long time-line of experi-ence The wind industry goes 40 years back and therefore Denmark has a good knowl-edge pool within establishing wind farms (aerodynamics minimizing power loss in energy transmission wind mapping and other installation-related technologies)

38 CSQ

that will make it possible to finance the pro-jects ldquoFrom then on our wind turbine pro-jects developed very fastrdquo(Interview Wind Engineer Chinese Academy of Sciences) Thus this law was a milestone for elevating renewables to a strategic position in China or as expressed by a European lead-firm ldquoWhat drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick offrdquo

Until the turn of the millennium Chinarsquos wind energy industry was largely built on donors acquisition of finished wind turbines and licensed technology from European companies spread on a very small scale into the local industry during the mid 1990s Chi-nese wind turbine technology has evolved from imitation reverse engineering and licensing in the 1980-90s combined with assistance from foreign consultants One example is how DANIDA funded a project in 1986 for Goldwind in Xinjiang which imported 13 units of 150 kW lsquoBonusrsquo (now Siemens Wind Power) turbines

To get beyond the stage of pure imitation several policies have been introduced with the intent to upgrade Chinese manufacturers to obtain indigenous innovative capabilities Policy programs were introduced to enhance Chinese companies to develop wind energy subsidizing wind energy RampD expenditures at varied levels over time establishing a re-newable energy fund and through the ldquo863 Wind Programrdquo under the Tenth Five-Year Plan (2001-2005) Local content require-ments were put in place in which develop-ers of wind energy projects were required to source 70 pct of the content in China These policies ndash which essentially forced foreign manufacturers wishing to sell wind turbines to the Chinese market to establish China-based manufacturing facilities ndash were only removed recently (in 2009) One result was that the foreign companies had to up-grade local suppliers of components

Due to the technological complexity many European (and hereby also the Danish) firms are vertically integrated and have most com-ponents produced in-house or with regular specialized suppliers According to these companies the different parts need to be well adjusted to each other to some extent even co-developed in order to enhance effi-ciency and the lifetime of the wind turbine Likewise the European industry has expe-rienced a concentration of actors with the result that there are only relatively few but large manufacturers in Europe (the larg-est ones are Vestas Siemens Gamesa and Enercon) Together these four companies accounted for about 35 of the global mar-ket in 2010 By seeing the wind turbine as an integrated system these lead firms aim at producing lsquothe Rolls Roycersquo model wind turbines These are strong in terms of qual-ity and standards but generally expensive These firms learn cost-out techniques from their engagement with partners in China

The Chinese Wind Turbine Industry

Today the Chinese wind turbine industry is overly competitive It entails more than 80 wind turbine manufacturers and the Chi-nese market boasts the highest growth rates internationally with an average growth rate of 968 percentages annually in the last three years Several large domestic Chinese wind turbine manufacturers have emerged within the last decade Sinovel and Goldwind take the largest share followed by United Pow-er and Ming Yang just to mention some of them As of the end of 2010 these four were A major driver for the development of the Chinese wind energy market has been the establishment of an institutional context as a comprehensive concerted policy frame-work addressing the development of renewa-ble energies This change in the institutional context was first reflected clearly in the 11th 5-year-plan (2006-2010) which explicitly linked environmental sustainability to the key goal of establishing what was called a harmonious socialist society signalling a socially environmentally and economically sustainable economy With the Renewable Energy Law from 2005 the Chinese wind energy industry really took off as it explicitly seeks to ensure that renewable energy pro-jects have an outlet for their output at prices

Technical barriers and the role of GINs for a post-carbon society

Despite high ambitions in terms of devel-oping innovative capabilities Chinese pro-ducers still produce almost exclusively for the Chinese market However Chinese wind turbine manufacturers have recently started an internationalisation process and some are approaching international markets Not least for tapping into new knowledge

Europe (and Denmark in particular) is per-ceived as a main location from which the Chinese companies can learn more A cou-ple of Chinese companies have already set up RampD centres in Denmark European firms have also initiated RampD centres in new lo-cations primarily China and India In other words GINs can be identified

Our research also points towards important barriers for GINs in the wind turbine in-dustry and for approaching a post-carbon global society Most importantly are the technological barriers intellectual property rights quality issues and issues of limited appropriability of knowledge Further the institutional framework remain relevant for displaying how the sector and the emerging GINs are embedded institutionally socially and technologically Whether actors trans-act knowledge technology and know-how through cooperative innovation activities also depends on how core the technology of a given technology is Still as the market grows in China it seems to have matured in Europe because of changing policies on re-newable energy To sustain the position as a global lsquohubrsquo and world leader in wind tech-nologies there is a strong need for support in Europe as this research really shows how fast the Chinese industry is moving One major result is how important networks are for upgrading companies and it seems that Chinese firms perform better in network strategies and manage to tap into relevant knowledge than the European firms

What drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick off rdquoldquoInterview Wind Engineer Chinese Academy of Sciences

39CSQ

Social Enterprise World

ForumNadine Koumlcher from 180Degrees recounts her experience from the

conference on

Rio de Janeiro Brazil 2012

In the numerous panel debates and parallel track discussion it became clear that Impact Investment is a hot topic among both social entrepreneurs and impact investors a diverse group consisting of corporations founda-tions and potential donors However various obstacles impede a harmonious relationship between the twoSocial enterprises face structural challenges to make themselves more appealing to im-pact investors They have to become more transparent and increase their accountability This includes improving their impact assess-ment and reporting tools However despite much discussion no consensus could be formed on how to optimally conduct im-pact assessment One of the most frequently proposed methodologies involves the use

From the 16th to the 18th of October the CBS Sustainability Platform granted me the opportunity to attend the 5th Social Enter-prise World Forum which took place in Rio de Janeiro Brazil This yearly international conference focuses on social enterprises and their effectiveness in solving social challeng-es The overall theme of the 2012 conference hosted by NESsT was ldquoSocial Enterprise Investing for Impactrdquo Thus for three days over 180 speakers and 650 delegates from 30 different countries shared their experiences regarding impact investment and discussed possibilities to attract new investment by both the public and the private sector for so-cial enterprises

of control groups Story-telling has also been men-tioned to be a powerful tool to provide investors with a proof of outcomesSocial investors are willing to accept returns just below the market rate in exchange for a social return However large profits are still expect-ed and many social enter-prises are afraid of being unable to generate them Social enterprises typically operate on a small scale and are not used to undertake large projects with huge sums of investment given to them Many are too small for social investors to be

attractive as costs are similar for small and large investments although larger invest-ments have a higher payoff

Nichole Echert the CEO of NESsT there-fore pointed out that it is necessary to align expectations between impact investors and social entrepreneurs and to be patient in establishing a relationship between the two groups The expected financial return has to be reasonable close to covering the costs of operation and social returns have to be re-ported to investors by use of clearer criteria

By Nadine Koumlcher Director of Branch Development180 Degrees Consulting Limited

ldquoSocial Enterprise Investing for Impactrdquo

Students

40 CSQ

A highlight of the con-ference was definitely the site visit to a social enterprise project in a recently pacified fave-la It brought further insights on the great variety of social enter-prises that exist in Bra-zil and their missions and struggles We visit-ed a community center at which Comitecirc para

Democratizaccedilao da Informaacutetica (CDI) uses technology to fight poverty and to stimulate entrepreneurship CDI has formed a corpo-rate partnership with Coca Cola which in the same building teaches young locals how to write a CV and find a job Talking to the young locals at the center it became apparent that an increased self-confidence and the in-spiration they get from meeting former now employed participants of the project (eg at Coca Cola) is what they valued most of being part of the class

Participating at the conference was definite-ly a unique and valuable experience I would not want to miss as I tremendously improved my knowledge in the field of social enter-prises through attending the numerous pres-entations and discussions and further met so many inspiring social entrepreneurs impact

In addition it has been stressed that the problem is not a shortage of investment capital (even though the government could promote more impact investment by for instance granting tax breaks) but how to deploy it Social entrepreneurs also have to be aware of the different advantages and dis-advantages of the various types of capital It has to fit their process of establishment and it has therefore been suggested that funds and grants are most optimal in the start-up phase to cover such costs as capacity train-ing There is generally a lack of this early stage financial support Following the initial phase strategic philanthropy money would be most appropriate before impact and final-ly equity investment is sought Furthermore new ways of investment which fit the social enterprise world have to be created replac-ing the current situation of trying to fit social enterprises into the current financial world

investors and students with a genuine inter-est in the field

Participating at the conference was definitely a unique and valuable experience rdquo

ldquo

Social Enterprise World Forum 2013 in

Calgary Canada

The TRICO Charitable Foundation in part-nership with the Social Enterprise Council of Canada and the Social Finance Forum has been selected to host the 6th Annual Social Enterprise World Forum SEWF 2013 will take place October 2-4 2013 in Calgary Al-berta The Forum will present the Canadian social enterprise movement with opportuni-ties to engage learn and share on the inter-national stage

SEWF 2013 will be a gathering of over 1000 Canadian and international delegates who are involved in the social enterprise move-ment where the blending of social and fi-nancial values is core to business Attendees will consist of practitioners (from all sec-tors) funders investors supporters elected officials and public servants from around the world

Nadine Koumlcher

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 8: CBS Sustainability Quarterly 2013 #1

8 CSQ

The Cluster on Governing Sustainability takes it starting point in the recent flourish-ing of private governance of sustainability initiatives Private actors such as business firms and civil society groups have created numerous initiatives addressing pressing so-cial and environmental problems both at the national and transnational levels Some of these are strictly private others are collaborative efforts with the public sector In this Cluster we are particularly interest-ed in examining corporate codes of conduct public-private partnership agreements labe-ling schemes and standard setting by mul-ti-stakeholder initiatives with a focus on (1) legitimacy and accountability processes and

strategies related to private sustainability governance (2) the effectiveness and impact of sustainability initiatives (3) the dynamics of the relationship between hard and soft law (4) the influence of the state on private sustainability governance and (5) the or-ganization of sustainability management in transnational firms Professor Andreas Rasche (ariklcbsdk) the Department of Intercultural Communi-cation and Management and Associate Pro-fessor Jette Steen Knudsen (jskdbpcbsdk) the Department of International Business and Politics

Governing Sustainability

This cluster invites for exploration of the communicative construction of sustainabili-ty across a variety of interests and stakehold-ers Organizations are traditionally under-stood as instrumental spaces for managers to produce products and processes towards a more sustainable society However increas-ingly organizations appear as social and moral spaces where the meaning and role of sustainability is communicatively negotiated and co-constructed and no definite agree-ment seems to be achieved across publics This development poses new challenges for business in their continous work to appear as legitimate participants vis aacute vis civil society the political system and other organization-alcorporate actors In this cluster we focus on (1) how communication of sustainabili-ty has become a strategic tool for managers working in business ngos and policy-mak-ing (2) how traditional and social media play

an important role in mediating issues of sus-tainability across publics (3) how marketing and branding of sustainability influences consumption and public opinon and (4) how different forms of political and corpo-rate communication (via persuasion facts dialogue etc) about sustainability raise questions about the democratic models that underpin sustainability discourses Against this backdrop the sustainability cluster brings together leading academics from a range of disciplines to explore the role and meaning of communication in a broad sense for the development of sustainability

Cluster leaders Professor Anker Brink Lund (abldbpcbsdk) the Department of Inter-national Business and Politics and Assistant Professors Julie Uldam (juiklcbsdk) and Anne Vestergaard (aviklcbsdk) the De-partment of Intercultural Communication and Management

Communicative Dimensions of Sustainability

Anne Vestergaard

Julie Uldam

Anker Brink Lund

Andreas Rasche

Jette Steen Knudsen

9CSQ

The Cluster on Sustainability in the Post-Growth Economy starts from the realization that the era of perpetual economic growth may be over The Cluster explores and devel-ops ideas and imaginaries of what a sustain-able post-growth economy might look like The purpose of such effort is to transform the end of growth from being the cause of social economic and ecological depredation into being an opportunity for the creation of new forms of economic organization that do not rest upon the condition of growth We ap-proach this challenge by starting to rethink some fundamental economic concepts from the perspective of a post-growth economy

What is a company What is work What is leadership What is money What is con-sumption What is a market And what is in fact economic growth The Cluster will ap-proach these questions theoretically by look-ing into their assumptions rooted in the par-adigm of growth capitalism and empirically ndash by studying actual practices of alternative economic organization Associate Professor Ole Bjerg (oblpfcbsdk) and Professor Bent Meier Soslashrensen (bmslpfcbsdk) the Department of Man-agement Politics and Philosophy

Sustainability in the Post-Growth Economy

The Cluster on Corporate Governance and Leadership for Sustainability Strategy focus-es on managerial behavior and performanc-es related to responsibility in corporations with a particular interest in how managers and leaders in firms relate to and behave vis aacute vis expectations to corporate sustainability strategies policies and action The Cluster will invite discussions that engage with how responsibility issues play a role in shaping systems and models of corporate governance and leadership and conversely how different models impact corporate responsibility and performancesThe emphasis will be placed on bringing into the management debate to what extent responsibility brings demands

for new management competences and man-agement models The Cluster is particularly but not exclusively interested in exploring the relationships between sustainability and corporate performances with (1) board of director characteristics (2) corporate owner-ship structures (3) shareholder activism (4) leadership approaches (5) ethical consider-ations regarding corporate governance and leadership and (6) comparisons of corporate governance and leadership approaches in a Scandinavian context vis-agrave-vis other global contexts

Associate Professor Bersant Hobdari (bhintcbsdk) the Department of Internation-al Economics and Management

Corporate Governance and Leadership for Sustainability Strategy

Bent Meier Soslashrensen

Ole Bjerg

Bersant Hobdari

10 CSQ

Writing a good business case

from a Hollywood perspective

Jenny Mead (left) picture from readthehookcom

On November 28 2012 Kirsti Reitan Andersen temporary project manager at CBS Sustainability Platform interviewed Senior Research-er Jenny Mead Darden School of Business University of Virginia in extension of her visit to CBS Jenny Mead was here to host a workshop and one-on-one sessions on how to write good business cases with a focus on sustain-ability

Interview with Jenny Mead Senior Researcher Darden School of

Business

Could you tell a little bit about yourself

ldquoI have been at Darden School of Business for the past 10 years I write cases about business ethics sustainability strategy and leadership I am not a business person at all but call my-self a writer because that is what I prefer I write stories I have worked in the film busi-ness in Hollywood where I worked as a De-velopment Executive It means that I looked for projects that could be made into movies Again I am not a business person at allIn the 1920s Harvard University started case-based teaching Darden followed through on the case tradition in 1950s Darden has con-tinued to focus on business ethics as key in educating students From the 1950s onwards

in the first year of undergraduate studies we have had a mandatory business ethics course This tactic has developed a large student body which is constantly aware of business ethics as an integrated part of business life The business ethics cases I write have an ele-ment of ethical ambiguity and decision-mak-ing that contains ethical considerationsrdquo You are visiting CBS to host a case-writing workshop and one-on-one sessions with as-piring case-writers What have the partici-pants gained from the workshop

ldquoThey get a primer of what a business case looks like They learn what a case looks like and are given an exercise where they have to

craft a case and have colleagues critique that The second day concerns teaching notes If a professor from another business school wants to teach it they can get the teaching notes that suggest how to teach the casesrdquo

What is a good case and why are cases ben-eficial for teaching

ldquoInstead of using textbooks in classes teach-ers can make use of business cases Generally a case should present a dilemma that has to be solved or a business decision that has to be made by the protagonist in the caseBusiness cases are a good way of placing the student in the shoes of a manager or decision maker Giving him or her the practical expe-

CSQ Interview

11CSQ

Writing a good business case

from a Hollywood perspective

Jenny Mead and Jonas Hedman from Department of IT Management at Copenhagen Busimess School

From the workshop at Copenhagen Business School

riences in a safe environment ndash no company is going bankrupt based on the decisions It is almost real world training but you are not in the real world A feature of case teaching at Darden School of Business is the use of small video clips of the protagonist in the business case Instead of students just reading about the protago-nist in the case the protagonist presents the problem or issue on video to create a lively teaching environmentrdquo

Do businesses actually think about ethicsThat is a good question and I believe there is

a growing awareness I am very impressed by Darden and the students Maybe it is because of the mandatory first year ethics course but the students are very concerned with CSR sustainability and values

I am currently working on a series of cases on conscious capitalism More and more businesses are adopting true values A shift has been made towards conscious capitalism The idea of conscious capitalism is that busi-nesses realize the value of good treatment to all stakeholders Businesses exist to create value for everybody

Relevant links

Darden Case Studies

The Olsson Center for

Applied Ethics (Jennyrsquos

employer)

The Business Roundtable

Institute for Corporate

Ethics

httpwwwcorporate-ethics

orgpublicationscase-studies

httpwwwdardenvirginia

eduwebOlsson-Center-for-

Applied-Ethics

httpwwwcorporate-ethics

org

12 CSQ

SUSTAINABILITY AND

DEVELOPMENT COOOPERATIONInterview with Minister for Development Cooperation

Christian Friis Bach

Did you know that 7 out of 10 of the fast growing economies can be found in Africa Or that DANIDA funds a programme in which CBS and other Danish universities work together with universities in Tanzania Ghana and other countries to increase the quality of research and uni-versity-level education in devel-oping countries

CSQ - Elisabeth Crone Linding amp Stefano Ponte sat down with the Dan-ish Minister for Development Co-operation Christian Friis Bach to hear about how the developing world is moving ahead fast ndash and why Denmark needs to keep up in order to stay relevant

I t is not every day that we meet with min-isters on the top floor of Asiatisk Plads

ndash the official home of the Danish Ministry of Foreign Affairs and DANIDA the inter-national development cooperation branch of the Ministry Nevertheless here we are over-looking the busy waters of the Copenhagen canal and looking forward to a long-planned rendezvous with Christian Friis Bach Min-ister of Development Cooperation since the autumn of 2011

Besides spending time in the academic ranks of Copenhagen University and the political spheres of the European Commission the Minister knows a thing or two about the de-veloping world he has previously devoted his

time to positions in DanChurchAid WWF World Wide Fund for Nature MSActionAid and the Danish Ethical Trading Initiative

In its current strategy DANIDA has put a new focus on green growth renewable en-ergy sustainable agriculture and innovative solutions to enable continued access to scarce resources ndash a quite green agenda in fact But how does this resonate in a developing world that is growing very fast According to the Minister perceptions are changing with more democratic political environments be-ing built

ldquoMore and more developing countries see green growth and sustainability not as stum-

bling stones but as building blocks of a fu-ture strong economy They recognize that in a world of natural resource scarcity and increas-ing prices on for example energy they need to adopt a different growth pattern More and more poor countries are buying into this And therefore we now have a unique opportunity for shaping the political framework and ena-bling environment to create more sustainable developmentrdquo

So how does a business school such as CBS fit into this equation What can we offer

This is a key question for us to ask As the Sustainability Platform was born out of the CBS Business in Society strategy we are in-

CSQ Interview

13CSQ

terested in looking for ways to address grand societal challenges such as ensuring sustain-able development

Christian Friis Bach recognizes that CBS as a research and educational institution has a role to play here ndash maybe even a bigger role than we play now Because even though CBS is known and regarded as a very internation-ally oriented university the Minister encour-ages CBS to go even further in sharpening its global commitment and profile

ldquoMany of the problems that we have related to growth and employment in Europe are not to be found in developed countries I hope that CBS continues to engage internationally in order to shape graduates to tackle global chal-lenges For example 7 out of 10 of the worldrsquos fastest growing economies are in Africa and here I would really urge CBS to have an even stronger engagementrdquo

CBS is involved in the Building Stronger Universities in Developing Countries Pro-gramme (BSU) which is a partnership be-tween research and higher education institu-tions in selected developing countries and all the main Danish universities The long-term goal of the initiative is to make the partici-pating institutions stronger by conducting joint research projects that offer knowledge and solutions to localdomestic and global challenges to produce better graduate pro-grams and for universities to play an increas-ing role in the economic social and political development of their own countries How-ever Christian Friis Bach also encouraged close dialogue with a broader set of partner universities in the developing world as an important way for CBS to shape its research and educational efforts and thus remain rele-vant in the future

Christian Friis Bach highlighted

ldquoIt is a big world And the world moves fast And I think the challenges upon our edu-cational system in Denmark are increasing every day When I go to South Korea China Latin America or Africa I see that they look increasingly towards each other for innovative solutions not towards Europe If we need to remain relevant we do have a challenge hererdquo

For example this means looking at the econ-omies in the world that are the most innova-tive These are in many cases in the develop-ing world so this is when CBS should invest when it comes to partnering in research educational development and knowledge exchange for example among faculty and students

The Minister also notes the advantages that can be gained from globalizing our institu-tions much more broadly and working across borders and academic fields for example on

The Building Stronger Universities in Developing Countries initiative amp CBS

ldquoBuilding Stronger Universities in Developing Countriesrdquo is a partnership between research and higher education institutions in developing coun-

tries and Danish universities The long-term goal of the initiative is to make the participating institutions stronger in the sense that they

bull playanincreasingroleintheeconomicsocialandpoliticaldevelopmentofthesocietiesinwhichtheyarelocated

bull functionasnodesofinnovationandknowledgeproductionprovidingsolutionstolocaldomesticandglobalchallenges

bull produceskilledandmotivatedgraduatesthatcancontributetothefurtherdevelopmentofthesocietiesandaddressthechallenges

faced

The ldquoBuilding Stronger Universitiesrdquo initiative has a structure with four thematic platforms Copenhagen Business School contributes to one of

the four platforms under the initiative the Growth and Employment platform which is a partnership between University of Ghana (UG) Kwame

Nkrumah University of Science and Technology Ghana (KNUST) University of Dar es Salaam Tanzania (UDSM) Sokoine University of Agriculture

Tanzania (SUA) and the major Danish universities From CBS Associate Professors Soslashren Jeppesen and Michael Wendelboe Hansen the CBS

Center for Business and Development Studies is part of the project which for example seeks to develop relevant PhD programmes strengthen

growth and employment relevant research activities and research collaboration and disseminate research findings to stakeholders

wwwbsuudorg

Students Sierra Leone (picture from umdk) Photo Joslashrgen Schytte

When I go to South Korea China Latin America or Africa I see that they look increasingly towards each other for innovative solutions not towards Europerdquo

ldquo

14 CSQ

health technology and business develop-ment in cooperation with developing coun-try researchers And we need to be good at a lot more than ldquojustrdquo development coopera-tion ldquoif we want to remain relevant for exam-ple in Africa on sustainable business we can-not afford to send people out who have worked isolated in the development community here in Denmark So instead of seeing development research as a separate discipline it needs to be integrated into everything we dordquo

That is why the Minister argues for more fo-cus on educating graduates that are experts and specialists but not necessarily within development cooperation Instead he says Denmark needs graduates that can develop the best possible solutions for the developing world within energy technology etc ldquoThe fast-growing economies in China Southeast Asia Latin America Africa do not need spe-cial things made for developing markets they need top innovative solutions and high-quality products and we need to be able to offer that to them if we want to remain relevantrdquo

One of the solutions worth repeating is that of partnerships According to the Minister universities need to remember that partner-ships with other research institutions as well as with private companies and organizations can provide greater insight

ldquoYou need not only public-private partner-ships but large-scale multiple partnership Still universities can sometimes behave as isolated entities Of course universities need to focus on the core business of researching and educating students but they will also in-creasingly be challenged to engage in these in-ternational and multiple partnerships This is where you will find some of the most inspiring

About Christian Friis Bach

Born 1966 in Frederiksberg Denmark Married three children Lives on a hobby farm near Ganloslashse

Present officeMinister for Development Cooperation 3 October 2011 ndash

Education1992-1996 PhD International Economics Royal Danish Agricultural University Copenhagen 1986-1992 MSc Agronomy Royal Danish Agricultural University Copen-hagen

Work Experience2010-2011 Special Advisor for EU Commissioner Connie Hedegaard (UN Global Sustainability Panel) 2010-2011 CEO ViewWorld ApS 2009 Affiliated Professor in International Economics and Development at the University of Copenhagen 2005-2010 International Director DanChurchAid 2002 Journalist at the Danish Broadcasting Corporation (DR) 1999-2005 Associate Professor International EconomicsDevelopment Economics Royal Danish Agricultural University (University of Copenha-gen)

Other engagements2010-2011 Member of the Board of the Danish United Nations Associa-tion 2008-2010 Initiator and Board Member of the Danish Initiative for Ethical Trade 2008-2009 Member of the Danish Africa Commission 2007-2011 Member of the Presidium for WWF World Wide Fund for Nature Denmark 2000-2006 Board Member International Institute for Sustainable Develop-ment 1997-2001 Chairman Mellemfolkeligt Samvirke (Danish Association for International Cooperation)

Christian Friis Bach has published a large number of books reports and ar-ticles in newspapers and magazines Please see wwwfriisbachdk for details

15CSQ

In December 180 Degrees Consulting (180DC) finished its third round of pro-bono social impact consulting projects with even more success than in previous semes-ters All consultants showed dedication and motivation by spending a large amount of their spare time to work with socially con-scious organizations in order to help them to improve their social impact

An overcrowded lecture room during the 180DC information meeting at the begin-ning of the semester and the high number of applications to join the consulting projects were evidence of great interest in 180DCrsquos activities Out of the 139 applicants the top 45 were selected in a two-step recruitment process and grouped into teams of five to work on the nine exciting projects lined up in the Fall 2012 semester

All projects involved Danish-based organi-zations with a strong focus on either social andor environmental sustainability The projects however differed vastly One of the consulting teams assisted Engineers Without Borders and Action Aid in developing an investment rationale for the cultivation of farmland belonging to an Indian orphanage as well as assessing the social return of this investment

Another 180DC team worked with Hertha an organization focused on the reverse in-tegration of ordinary people into a commu-nity of mentally challenged Hertha needed assistance with improving their external reporting setup to stakeholders which was achieved by developing useful tools for the organization to measure both the social and cultural impact of their activities Yet another team of consultants helped the International Rehabilitation Council for Torture Victims optimizing their internal processes and thus helping them pursue their vision of a world without torture

During the consulting period 180DC or-ganized several training sessions for the con-sultants of the organization hosted by pro-fessional consultancies and each team was assigned a mentor with expertise specific to the given project The highlight of the semes-ter was the Final Event at which all of the teams presented their projects in front of a large audience comprised of all 180DC con-sultants the 180DC board members as well as mentors clients and a jury consisting of representatives from PwC DI CBS Sustain-ability Platform BCG and VSFA The juryacutes task was to evaluate the consulting projects based on their written report and oral pres-entation Based on the creativity feasibili-ty and impact potential of the projects the chairwoman of the Jury Birgitte Mogensen PwC announced the winner of the 180DC Social Impact Award Team Engineers With-out Borders

All of the 180DC board members have throughout the semester been working hard to constantly improve the organization in or-der to ensure a high quality of the services provided to clients and of the learning ex-perience provided to students With a new extended board in place 180DC is looking forward to continue its successful journey in the upcoming semester which kicked-off in January with two international projects in Chile and Sierra Leone ndash thanks to the sup-port of the CBS Sustainability Platform

by Nadine Koumlcher

UPDATE FROM 180DEGREES180 Degrees Consulting is an international student consultancy that works with growing non-profits helping them achieve a greater social impact

Contactphone no +45 6061 6399e-mail cph180degreesconsultingorg

Updates from partner organizations at CBS

16 CSQ

The past semester was a good one for 360deg Students for Sustainability Not only did our organization grow to nearly 50 members this fall but we were also nominated in the Student category for the CSR Awards 2012 ndash the second year in a row You can watch the nomination video here httpwwwyoutubecomwatchfeature=player_embed-dedampv=6J5mwn7TcYI Although we didnrsquot win the award representatives from 360deg got the chance to participate in the conferencersquos many seminars ndash and not least hear Bill Clin-ton speak360deg also took it to another level with 360deg Academy The project was a huge success with over 250 people signed up for the ex-tracurricular course It shows that there is a clear interest in CSR and sustainability among the students and that 360deg Students

for Sustainability fill an important gap in providing the students with a forum where they can discuss such issues with each oth-er professors and practitioners We have al-ready started planning Academy 2013 which will run in the fall In addition to 360deg Academy 360deg organ-ised several successful events and seminars the past semester 360deg Develop Prize was kick-started in November and has already found some dedicated social entrepreneurs who will join the coming events this spring as well as the final competition 360deg also co-organized events on microfinance (with Danish Forum for Microfinance) and fair-trade (with Fairtrade Maeligrket) We also created a nice Christmas spirit at the CBS campus with our annual Christmas event featuring cookies a fairtrade Christmas tree

and do nations to Red Cross and Verdens SkoveWhile it is important to look back this semester 360deg is focusing on the future By the end of the semester 360deg Students for Sustainability will have changed its name to oikos Copenhagen After becoming part of the international student network oikos in 2011 we believe that changing our name will emphasize our international commitment and will show the students the many oppor-tunities that are available to them through the oikos network You can read more about oikos International and the other 36 chapters around the world by visiting wwwoikos-in-ternationalorg

Christina EkChairwoman of 360deg and soon-to-be President of oikos Copenhagen

UPDATE FROM 360 STUDENTS

360deg Students for Sustainability

360deg Students for Sustainability is a non-profit student organization based at CBS working to enable and inspire students to make responsible and sus-tainable decisions in their future lives and professional careers

Contact Christina Ek tlf 42 39 99 54 mail info360studentsdk

Live show at CSR Awards 2012

(Picture from csrfondendk)

Updates from partner organizations at CBS

17CSQ

UPDATE FROM PRME

New approach by the Curriculum Development

projectThe commitment to the initiative of the UN Principles for Responsible Management Education (PRME) at CBS has been further sustained via a more targeted approach to the development of the curriculum at the undergraduate programmesAs part of the adherence to PRME CBS has launched a Curriculum Development project to integrate responsible management prac-tices into the study programmes and also make these practices more explicit This is an extensive process that recently has been even more focused on the individual content of each of the study programmes A more cus-tomised approach will only strengthen the analyses of syllabi for each core course and increase the content of explicit responsible management

ldquoThe current restructuring of the Service Management bachelor programme and the development of three specialised lines of ed-ucation offer a great opportunity to align the curriculum development with the Principles for Responsible Management adopted by CBS Currently the CBS Office for Respon-sible Management Education and faculty members from CBS are working to identify opportunities to integrate responsible man-agement education into the educational programmerdquo Assistant Professor Adriana

Budeanu BSc in Business Administration and Service Management CBS In collabo-ration with study boards students and fac-ulties the Curriculum Development project enables a targeted approach to the integra-tion of responsible management content in order to comply with the overall structure of each study programme

Anti-piracy strategy from Maersk was a winning strategy

In collaboration with the CBS Sustainabili-ty Platform the CBS Office for Responsible Management Education arranged an internal competition to identify the best team of stu-dents to represent CBS at the International Business Ethics Case Competition (IBECC) in San Diego later this year The students had to select a business case entailing a challenge with legal financial and ethical aspects and propose a solution to this challenge A jury found the winning team based on a live presentation followed by a QampA session that took place in November 2012

The winners of this unique opportunity were the graduate students Bjoslashrg Ilsoslash Klinkby (MSc IBP) Adam Eithz Kromann (MSc BAP) and Anne Cathrine Gaarde (MSc IBP) They presented a business case on the anti-piracy strategy of Maersk

Winners of the Business Ethics Case Competition

Updates from partner organizations at CBS

18 CSQ

THESIS PARTNERSHIP BETWEEN GRADUATE

STUDENTS AND COMPANIES MATCH-MAKING

On behalf of CBS the Office for Responsible Management Education invited companies and organi-sations to participate in a match-making event with graduate students who were looking to write their thesis within the field of sustainability or social responsibility

Prior to the event that took place on the 6th of February ambitious graduate students were matched with eight very diverse organ-isations all wanting to explore challenge and develop CSR related activities The selection of organisations ranged from Center for So-cialt Ansvar who sought the studentsrsquo advice on how to revitalise their social concepts in corporation with the civic public and pri-vate sector to Wonderful Copenhagen that engaged the students in their aspirations of

retaining Copenhagen as a leading ldquogreenrdquo conference destination This diversity mere-ly reflected the broad-based educational standards that are embodied in the conducts of CBS and enabled students from all study areas to participate With the meeting as the focal point of the event the aim was to in-troduce more students and companies to the possibilities of a thesis partnership On that basis it is the hope that students and organisations will take the initial meeting

further into a collaboration resulting in a thesis that with an analytical and reflected approach hopefully provides valuable insight for all parties The event was indeed a unique opportunity for the students to get the or-ganisationsrsquo unremitting attention but also the organisations expressed their excitement about how the theoretical knowledge and skills of the students could be combined with the specific issues reaching beyond everyday operations of the organisation

PRME

Lene Mette SoslashrensenTel +45 3815 2651E-mail lmsiklcbsdk

PRME Manager

Johanne Duelund Kramer from Wonderful Copenhagen and CBS student Joseacute Bandeirinha from International Marketing and Management

Updates from partner organizations at CBS

19CSQ

A value adding partnership

The match-making event was kick-started by Professor Andreas Rasche who gave a short speech on trends in the field of sustainability and social responsibility Likewise thesis con-sultant Vibeke Ankersborg rounded off the event by guiding both students and organisa-tion representatives in the right direction of obtaining a value adding thesis partnership

By facilitating integration of the theoretical knowledge pool at CBS with real-life busi-ness cases and their challenges this initiative underpins CBSrsquos Responsible Management Education profile ldquoAddressing societal chal-lenges in interaction with business is a key element in our Business in Society strategy and we hope to set up a similar initiative in the futurerdquo Lene Mette Soslashrensen PRME Manager CBS

Being able to engage in a thesis partnership gives us the opportunity to get new and fresh eyes on the challenges and opportunities we face in the aspiration of sus-taining Copenhagenrsquos position as marked leader within sustainable meetings and events ndash and the other way around we see it as a positive contribution to help young students to gain in-depth knowledge on how we actually work with sustainability in practicerdquo

Ulrika Maringrtensson senior communication consultant Wonderful Copenhagen

ldquo

Case Companies

20 CSQ

Update from CBS Centre for Corporate Social Responsibility

cbsCSR celebration10 years anniversaryOn Thursday November 22 2012 CBS Centre for Corporate Social Responsibility (cbsCSR) celebrated its 10 years anniversary The guest list included prominent guests from both academia and the corporate world Head of Department Dorte Salskov-Iversen President Per Holten-Andersen and cbsCSR Director Esben Rahbek Pedersen bid all a warm welcome to an afternoon of inspirational talks and celebration of the Centre

Susanne Stormer followed and initiated her presentation with a brief recap of Novo Nor-diskrsquos history and continuous development of corporate sustainability practices She em-phasized how Novo Nordisk with the help of Professor Ed Freeman has prioritized a close relationship with their stakeholders and learning with them as a means to reach a higher level of corporate sustainability An additional key take-away from Susanne Stormer was the notion of transformational partnerships She argued that corporations NGOs and other stakeholders should use each other to form transformational partner-ships instead of just transactional partner-ships She claimed that in order to address and solve the problems in todayrsquos world the issues have to be addressed at the roots ndash in cooperation with stakeholders

The program had been divided into two ses-sions Each session ended with a panel dis-cussion that gave the audience the opportu-nity to track the developmental trajectory of CSR and participate in the discussion of the future direction of CSR

In the first session which focused on the history of CSR Professor Lucia Reisch from Department of Intercultural Communica-tion and Management CBS Susanne Storm-er VP of Corporate Sustainability at Novo Nordisk and Professor Gail Whiteman from Rotterdam School of Management present-ed their perspectives on the development of CSR up until nowProfessor Lucia Reisch set the stage with an enlightening introduction to the history of sustainable development and emphasized balance on the triple bottom line as key

Professor Gail Whitemanrsquos presentation highlighted both the past and the future of CSR Her main topic was how to deal with planetary boundaries She drew attention to inherent implications of teaching sustaina-bility and CSR at a business school and ar-gued that in order for students and business executives to understand the implications of planetary boundaries and their importance classes should be taught in nature

In the second session Annette Stube Head of Group Sustainability in AP Moller ndash Maersk Simon Pickard Director General at ABIS and Professor Andreas Rasche from cbsCSR presented their views on the future of CSR

Updates from partner organizations at CBS

21CSQ

The topics in the second panel debate evolved around some of the same issues as in the first panel debate The audience was very interested in the educational aspect of CSR and sustainability and a discussion fol-lowed concerning the issues of lsquopreaching to the convertedrsquo Research shows that 75 of CSR courses are not mandatory 1 thus those students and executives who have a natural interest in CSR and sustainability enroll for these courses The speakers agreed that this posed a challenge for the future and that business schools might have to re-invent themselves in this regard They stressed that it is crucial that CSR and sustainability courses become mandatory Also the prac-titioners advocated in-company learning They set forth the argument that it may be a long time before current students will have sufficient impact on the corporate sector but also because the corporate sector and the ac-ademic world can learn from one another

Sum-up of key perspectives for the future

So how has lsquothe business of business really changedrsquo and in what direction From the afternoonrsquos discussions there were two recur-ring topics Susanne Stormer briefly touched upon it when she talked about transforma-tional partnerships Annette Stube and AP

Annette Stube set forth the argument that ldquothe business of business has really changedrdquo She gave an example of how AP Moller ndash Maersk should use their position in the shipping industry to facilitate substantial changes Simon Pickard supported her argu

ment stating that it is not possible for single corporations to make a difference but that clusters of corporations have to collaborate to push changes If corporations do not join forces they risk only making incremental changes Simon Pickard further argued paraphrasing Andrew Pettigrewrsquos argument that in the course of time there has been a conceptual change in the argument for CSR He pointed to the fact that it started out as a moral or philanthropic enterprise and is now perceived as a governance case Simon Pickard pointed to the fact that the future of business is to create shared value ie creat-ing economic value that also creates value for society at large Building on these re-marks Andreas Rasche discussed the future of standards and codes in the field of CSR Emphasizing a variety of case examples he argued that while standards have proliferated in recent years eg certification schemes in the global coffee and apparel industries there is a need to more actively manage the co-ex-istence of these initiatives in order to avoid overlap Rasche also highlighted the pivotal role of consumers who need to acknowledge standards and labels as market signals and factor social and environmental concerns into purchasing decisions

Moller ndash Maersk has it as an integrated and crucial part of their CSR policies and Simon Pickard highlighted how instrumental the-ories are no longer enough The concept of shared value is inescapable and it is what the lsquobusiness of businessrsquo in the early 21st centu-ry is really about

A second topic which also attracted a lot of attention was the importance of continuous education of both lsquothe convertedrsquo but also of opponents of CSR and people who are not aware of the importance of CSR and sustain-ability In-company learning was depicted as a crucial part of the development of CSR and sustainability however a physical change in the teaching settings is also required to meet the approaching environmental challenges

Centre Director Esben Rahbek Pedersen concluded the conference and the winners of the prize of 25000 DKK to participate in the IBECC case competition in San Diego in May 2013 were announced and the celebra-tion of cbsCSR ended with a reception

Thank you to all the speakers moderators and guests for an inspirational afternoon

By Elise Lind Jacobsen and Line Pedini Rasmussen cbsCSR

1Rasche A Gilbert DU and Schedel I (2013) Cross-Disciplinary Ethics Education in MBA Programs Rhetoric or Reality Academy of Management Learning and Education (forthcoming)

Three of the keynote speakers (from left) Professor Gail Whiteman from Rotterdam School of Management VP of Corporate Sustainability at Novo Nordisk Susanne Stormer and Sustaina-bility Professor at CBS Lucia Reisch

Simon Pickard Director General at ABIS

22 CSQ

UPDATE FROM

CBS GOES GREENThe Green Associate Program

2012 was an exciting year for CBS Goes Green with many great achievements One of the new initiatives that was launched in 2012 was the Green Associate Program Here CBS students were able to volunteer in a program to support sustainable behavior among students and staff at CBS More precisely 25 CBS stu-dents put in 30 hours of voluntary work to help with the planning and execution of Green Week - a week consisting of a lineup of successful companies shar-ing their sustainable initiatives and thoughts The overwhelming interest in sustainability and sustain-able business among the students has made it evi-dent that the Green Associate Program should con-tinue in 2013 We at CBS Goes Green look forward to this as well as all of the other initiatives we will be conducting in 2013

The following is an extract of an article that three of the associates wrote themselves This extract shows the associatesrsquo own experience working with CBS Goes Green

What does it mean to be an

associate with CBS Goes Green

In Week 39 CBS turned into a plethora of green initia-tives and events in order to make CBS reach its sustaina-bility goals for 2020 Both students and employees at CBS were asked to become a Green Ambassador to help CBS be smarter greener and better

But many of you may wonder how it is to be one of the people behind the scene As associates we have been help-ing out before and during Green Week in order to establish an event that would reach all corners of CBS This has re-quired both time and effort in order to make things work out but in the end there are also a lot of gains from being an associate

Firstly as an associate you get to expand your network You get to work with people from different studies countries and ages and you also get to talk to many different people while promoting

A bonus about being an associate is also that you get an official certificate which can be attached to your resume This shows that you have put an effort into making Green Week happen

Furthermore by being an associate you feel like you have a larger impact on making CBS a greener place Instead of being an ambassador and only doing the things you can do you get to be the person who raises awareness about sustainability You may influence people to make the right choices and it makes you feel good

Lastly it also gives you a feeling of responsibility because you work under an official part of CBS CBS Goes Green ndash a unit with a clear agenda and a clear vision

By Michael Nguyen Christian Charity and Christian-Philip Lundahl

Updates from partner organizations at CBS

23CSQ

International conference on sustainable biofuels presents latest research

By Barbara Louise Bech Department of Business and Politics CBS

EU Renewable Energy Directive

In 2009 the EU RED set a mandatory target for member states to use a minimum of 10 renewable energy sources in the transport sector by 2020 of which biofuels is expected to be the main contributor This is part of a policy to cut greenhouse gas emissions promote the green technology sector develop rural areas and reduce dependency on fos-sil fuels Due to increasing controversies claiming lack of sustainability in first generation biofuels based on food crops recently the EU pro-posed an amendment to the Directive limiting the share of first gener-ation biofuels to 5 of the targeted 10

The debate quickly zoomed in on the sustainability criteria as outlined in the EU RED drawing attention to the lack of social safeguards The general consensus is that the concept of sustainability is too narrow-ly defined Several case studies (Mozambique Brazil and Indonesia) show that basic labor and human rights of local populations are not protected by RED and the directive is more viewed as an environmen-tal safeguard This discussion raised questions in regard to the effects of RED globally (eg sustainable production in developing countries) and in this context whether EU legislation can have a lsquotrickle downrsquo effect on national standards of nation-states outside the EU In this re-gards one could ask if enforcement at the local level falls under the re-sponsibility of the EU but since first generation biofuels are produced outside the EU it is an important issue for European consumers ndash al-though interest is currently mainly driven by NGOs

On November 19-20 2012 the Copenhagen Biofuels Research Network (COBREN) held an international conference on sustainable biofuels inviting 30 research-ers from around the world to present and discuss their latest research During the two day conference focus was the sustainability criteria of the EU Renewable Energy Directive (RED) voluntary certification schemes and their impacts on sustainability and social safeguards in producer (developing) countries in particular and governance complexity of the biofuel system which has grown considerably over the past decade

Rough guide to biofuelsThere are two types of biofuels biodiesel and ethanol First generation biofuels (1G) are based on food crops and feed stocks such as palm oil soybean and rapeseed used for the production of biodiesel and sugarcane and corn for ethanol The produc-tion of biofuels increased heavily in the 2000s questioning the sustainability of 1G A number of issues have been claimed as key impediments to sustainable biofuel production such as deforestation competition with food production and increasing food prices loss of biodiversity lack of social and environmental safeguards and indirect land use change (ILUC) These contro-versies have led to a call for the promotion of second generation biofuels (2G) which are typically based on agricultural waste (eg straw) plants and forestry residues (also called lignocellu-losic biomassmaterials) However the immediate problem is that there is yet to be developed a market for 2G as they are more costly to produce (require longer and more complex production process)

CBS Sustainability Platform co-director and organizer of the COBREN conference Stefano Ponte doing a presentation

Event

24 CSQ

Voluntary certification schemes

In relation to how standards and certifications can impact sustainable biofuel production discussions pointed to the important difference be-tween mandatory and voluntary schemes As the controversy of sus-tainable biofuels in particular first generation is rolling out special attention has been given to biofuel production competing with food production ILUC value of emissions reduction and environmental and social issues This have off sprung a proliferation in private certifi-cations and during the conference it was discussed intensely whether these schemes have an actual effect on sustainability Depending on the point of view certifications can fill out the holes in legislation and act as a tool to force companies to comply with sustainability crite-ria However the development processes of new certifications may not be inclusive of relevant stakeholders (eg representatives of local populations) Additionally the nature and governance of the networks steering these processes is not always transparent and may favor one interest over the other This intense discussion led to the question of the purpose of certifications Can we use them for anything other than as a CSR PR tool as long as consumer awareness is as low as it is and how do the different regional drivers influence sustainability as a concept The answers to these questions are not easily found and it will be interesting to observe the future development and partnership between public and private sector

Governing the biofuel industry

Within the past decade biodiesel production has risen from below 30PJ in 2000 to 572PJ in 2009 globally and fuel ethanol production has increased from 340PJ to 1540 PJ respectively As the market expands more actors eg governments international organizations civil soci-ety and NGOs private sector networks and companies and profes-sions (biofuel experts and consultants) get involved and play different roles to promote their own agendas Being an emerging industry the structure of the biofuel system shows hybrid forms of governance with many actors As controversies of biofuelsrsquo sustainability develop more issues are added to the agenda giving life to more actors and interests in the governance structure Research shows a shift in power balance as private companies and NGOs increasingly push the agenda The dis-cussions during the conference centered on the complexity of sustain-ability issues calling for mixed governance responses and governance instruments such as standards and certifications which in return need to be followed up with endorsement instruments Given these com-plexities the question is whether the biofuel industry is too difficult to govern as long as the governing systems (for instance the EU) cannot accommodate expectations of all stakeholders

Indirect land use change (ILUC)ILUC is the unintended consequence in terms of more carbon emis-sions due to land use change around the world induced by the expan-sion of croplands for biofuel production When land that could be used to grow food and feed crops is used to grow energy crops this leads to existing agricultural production moving to another area or country where land is converted When this land is cleared and converted to cropland and because natural lands (rainforests and grasslands) store and sequester carbon in their soil and biomass a net increase in GHG emissions can occur Due to this change in the carbon stock of the soil and the biomass ILUC has consequences in the GHG balance of a biofuel Adding to this complexity models for ILUC calculations are not mainstreamed and thus difficult to assess internationally

25CSQ

Mellemfolkeligt Samvirke (MS) or Action Aid Denmark is a Danish NGO founded back in 1944 The

organizations key objective is to fight poverty by ensuring greater political influence for the worldrsquos poor and margin-alized at the local national and international levels MS works to bring about long-term development in the worldrsquos poorest countries focusing especially on education co-

operation and the ability to organize MS mainly works in Africa Read more about the organizationrsquos work

at wwwactionaiddk

Action Aid

A private sector view on the future of sustainable biofuels

By Barbara Louise Bech Department of Business and Politics CBS

nergy security continues to be an eminent concern in a world of finite resources For a long time biofuels have been viewed as

one of the key solutions to replace our dependency on fossil fuels and battle climate change but in recent years controversy has contested the sustainability of first generation biofuels based on food stock Issues such as lack of environmental safeguards causing loss of biodiversi-ty and deforestation and lack of social safeguards ensuring land and labor rights in producer (developing) countries have been claimed as key impediments to sustainable biofuel production Critical observers also argue that the emission savings of biofuel use in compar-ison to fossil fuels can become much smaller (or even disappear) when indirect land use change (ILUC) is included in the calculations Furthermore bi-omass production from food stock is argued to compete with food production and in-creasing food prices

The Danish NGO Action Aid has been engaged in biofuels since 2008 and is par-ticularly involved in protecting womenrsquos rights and preventing land grabs in de-veloping countries ldquoWe are very concerned about land use when it comes to first genera-tion biofuels This relates both to the people who are dependent on the land and to food security We rarely see good combinations where the local populationrsquos needs are taken into consideration The energy crops grown on the local farmerrsquos land donrsquot benefit him and local consumption is essential for developmentrdquo explains Kirsten Hjoslashrnholm Soslashrensen political advisor Action Aid Denmark

It is therefore believed by many that second generation biofuels is the only way forward to avoid competition with food and avert ILUC Next generation biofuels is based on lignocellulosic biomass such as agricultural and household waste and forest residues The Biorefining Alliance represents a cluster of leading Danish companies within the renewable energy sector with an ambition to promote second gener-

ation biofuels and make Denmark a world leader of technology and bi-ofuel productionldquoDenmark has very strong competencies in green tech and as a society we have put a lot of money in its development This is go-ing to be a huge deal globally so we are asking whether Denmark wants to be a customer or a producer What we are working for is of course that we become a lead exporter of technology but also that Denmark produces second generation biofuels commercially Even though we are a small country we cannot settle on selling know-how Denmark also needs to have some industrial productionrdquo says Anne Grete Holmsgaard di-

rector of Biorefining Alliance In her view Denmark needs to keep a firm grip on developing innovation or it will slowly but

steadily move out of the country In this regard she views sustainability criteria for biofuels as an in-

novator and not a hindrance

The Sustainable Biofuels Network (SBN) is another cluster of private companies trying to facilitate the transition from fossil fuels to biofuels in the transport sector For the aviation industry biofuels are considered

to be the only alternative to fossil fuels and the industry firmly believes that biofuels will

survive according to Robert Arendal chairman of SBN ldquoThe aviation industry has set very clear

guidelines for the use of biofuels We are not going to use food based biofuels and we will minimize the use of fresh

water By 2050 our target is to use 50 biofuels in the global aviation so we really need to move fastrdquo he explains adding that living up to sustainability criteria includes being careful about where biofuels are produced ldquoBut it should be produced all over the world and close to the 1600 airports worldwide that account for 95 of all aviationrdquo

he technology for second generation biofuels is already here but the problem is that production costs are too high and there is no market As long as prices are not competitive with conventional fuels it will be difficult to move forward ldquoOne might ask why there is no market The customers are certainly there so if I was in the business of producing

E

As part of the COBREN international conference on sustainable biofuels private sector civil society and academia were invited to give their views on sustainable biofuels at a roundtable discussion at an open public seminar held at DIIS November 19 2012

Event

26 CSQ

SBN is a ldquobreeding groundrdquo and ldquoknowledge centerrdquo for the biofu-els industry where synergies are created between all parties within

the biofuels sector SBN focuses in promoting supporting and enabling the commercial development and use of clean and sustainable biofuels for Heavy Road Transportation Shipping and Aviation Emphasis is put on the importance of global standards for biofuels with local as well as international institutions and decision makers to encourage con-

structive guidelines and rules for the development of biofuels SBN adheres to EUrsquos sustainability criteria SBN is a non-profit asso-

ciation established in 2008 Visit their website for more info at wwwsustainablebiofulsdk

Sustainable Biofuels Network(SBN)

The Biorefining Alliance (BA) was founded December 2011 by DONG Energy Novozymes Haldor Topsoslashe and the

Danish Agriculture and Food Council and is a three-year project to politically promote Denmarkrsquos position in the entire value chain from residues to bio-based products The Alliance has set forth a number of recommendations to achieve a sustainable Danish bio-economy Among other these include (i) that all organic

waste be considered a resource (high-value recycling and storable energy) (ii) reducing the cost of manufacturing 2G

bioethanol and (iii) contemplating the establishment of a national center for sustainable materials

Biorefining Alliance

second generation biofuels I would get started right awayrdquo says Robert Arendal The Biorefining Alliance is working on lowering the costs and recommends a stronger regulatory framework with binding targets as it has been done for the wind industry ldquoThere already is a market for first generation biodiesel which is the least sustainable biofuel We need to make a market for second generation biofuels and we know that binding targets work I donrsquot think it is possible to create a market for the lsquogreen consumerrsquo as you have one for organic food products but I believe that a niche market for HRT (Heavy Road Transport red) such as public bus transport could be a supplementrdquo concludes Anne Grete Holmsgaard

How the future for sustainable biofuels will shape depends on political will to create a market for second generation and the ability of private sector to innovate and bring prices down Oil production is claimed by some to already have peaked and exploring new geographical areas for extraction could be as costly as kick-starting the market for second generation biofuels although much less sustainable As the American ecologist and environmentalist Bill McKibben wrote in his book ldquoDeep Economyrdquo back in 2007

Even before we run out of oil wersquore running out of planetrdquoldquo Bill McKibben

27CSQ

The Transparency-Sustainability NexusA workshop on the practices meanings and tensions of organiza-

tional transparency

n December 5 2012 the Department of Intercultural Communication and Management (ICM) hosted an in-

ternational workshop supported by CBS Sustainability Plat-form and ICM The workshop was organized by Oana Brindusa Albu Mikkel Flyverbom and Hans Krause Hansen respectively PhD Fellow and Associate Professors at ICM The idea of the workshop was spurred by the observation that while ideals of transparency like lsquoopennessrsquo lsquodisclosurersquo and lsquoreportingrsquo are pro-liferating these years the actual construction of transparency within and across organizations is poorly understood Most re-search on transparency is highly normative if not celebratory just as popular discourse about transparency not least in the areas of sustainability and corporate social responsibility is obsessed with ideals of accountability performance and effi-ciency and pervaded by an optimism currently pushed to its extreme with the explosion of new media technologies

But the truth is that we generally know very little about the implications of ideals of transparency when translated into practice in specific issue areas and organizational contexts Importantly each of the contributions to this workshop clear-ly suggested that the contemporary politics of transparency is much more complex contradictory and dynamic than tradi-tionally recognized All papers examined various aspects of the contemporary obsession with transparency and specifically the increasing use of disclosure techniques within and around or-ganizations the rationales or myths underpinning these meas-ures their intended and unintended consequences including implications for identity-making management and govern-ance practices

Clare Birchall initiated the workshop with a paper titled lsquoThe Cultural Politics of Disclosurersquo highlighting how transparency has been positioned as a superior form of disclosure in popular management and organizational literatures and in policy docu-ments In her account the growing preference for transparency is a consequence not only of the positive qualities seen to be intrinsic to transparency itself but also a response to the per-ceived negative characteristics of other forms of disclosure such as gossip scandal and rumor Lars Thoslashger Christensen (with co-author Joep Cornelissen) then analyzed transparency as one of the foundational myths of modernity myths understood here as descriptions of the world in a narrative form which seeks to produce meaning and direction for a community and its members Such lsquoMyths of Transparencyrsquo sustain numerous organizational practices ndash including openness information provision and auditing But as argued by the authors there are conflicting evidence regarding the capacity of such practices to create insights and understandingThat aspirations and techniques of transparency can have seri-ous repercussions was demonstrated by Peter Skaeligrbaeligk (with co-author Mark Christensen) in the paper entitled lsquoAuditing and the purification of blamersquo which analyzed how auditing auditing practices and institutional entities including the po-liticized environments surrounding them are mobilized and participate in blame games and allocation In his paper titled lsquoQuantification transparency and the costs of reassurancersquo Henrik Vollmer analyzed various dimensions of the role of nu-merical records and signaling in generating transparency trust and mistrust

By Hans Krause Hansen Department of Intercultural Communication amp Management

Event

O

28 CSQ

Some of these aspects were also touched upon in the paper lsquoDisrupted Disclosures The Politics of Visibility and Surveil-lance in the Extractive Industriesrsquo by Hans Krause Hansen (with co-author Julie Uldam) which explored the wider field of visibility and surveillance in which contemporary transpar-ency policies are unfolding with examples from the extractive industries Oana Brindusa Albu in her lsquoTransparency and the organizational self everyday politics of identification in Cooperativesrsquo examined the paradoxical effects of values and practices of transparency on collective identity formation pro-cesses drawing upon her ongoing multi-sited fieldwork in co-operatives Under the heading of lsquoThe Improbability of Secrecyrsquo Mark Fenster analyzed the intersections of secrecy and trans-parency with examples from the US government and its efforts to control information which according to the author does not necessarily stop the flow of information Finally Mikkel Fly-verbom and Christina Garsten examined lsquoThe sway of (big) data ndash calculations and advocacy in the name of transparencyrsquo focusing on the operations of data-based forms of corporate lsquotransparency evangelismrsquo and advocacy through revelation including examples from Center for Global Development and Google

In all the workshop was highly successful in investigating not only the historical and mythical foundations of transparency but also the different practices and forms of transparency that currently shape organizations and a wide variety of issue areas It also provided a reminder of the usefulness of investigating a concept of transparency in relationship to a host of other con-cepts such as secrecy myth gossip blame surveillance visi-bility identity information and knowledge The organizers of the workshop wish to thank all workshop participants for their valuable contributions and the CBS Sustainability Platform and ICM for their support

Hans Krause Hansen

Mikkel Flyverbom

Oana Brindusa Albu

ASSOCIATE PROFESSORPHD (ICM)

ASSOCIATE PROFESSORPHD (ICM)

PHD FELLOW (ICM)

29CSQ

Louise Lyngfeldt Gorm Hansen is a PhD Fellow at the Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) She has a back-ground in Chinese Studies from Copenhagen University (BA) the Asian Studies Program at CBS (BSc) and in International Business Stud-ies and Sustainable Business (MSc) from CBS

The aim of her cross-disciplinary PhD project is to explore how the Chinese hydropower sector works with environmental sustainability and more particularly how the concept is understood and performed in the planning phase of a major dam project in the southwestern Chinese province of Yunnan

The aim of the project is to gain a deeper under-standing of how Chinese firms in the renewable energy sector such as hydropower companies understand and value sustainability as well as how such firms tackle the increasing pressure to deliver socially and environmentally balanced solutions to one of Chinarsquos major challenges lowering CO2 emissions in a time with rapidly rising water and energy demands Theoretically the project draws on - and aims to contribute to ndash a combination of Asian Studies and Science and Technology Studies

PHD FocusLouise Lyngfeldt Gorm Hansen

HYDROPOWER

SUSTAINABILITY

30 CSQ

HYDROPOWER

SUSTAINABILITY IN

CHINAy PhD project combines two of my main research interests China and

environmental sustainability I have studied China for a number of years mainly because of an interest in how the Chinese view sus-tainable development So since finishing my masters I have known that I wanted to study how China plan to tackle a sustainable tran-sition in the years to come I saw my chance when CBS announced PhD scholarships in

DanishEuropean-Chinese social science research in collaboration with the newly es-tablished Sino-Danish Center for Education and Research (SDC) and started my PhD in October 2011My PhD project focuses on the Chinese energy sector more specifically the rapidly growing part of the energy sector engaged in renewable energy Here I examine Chinarsquos second largest source of electricity gene-

eration hydropower In recent years China has become increasingly focused on reduc-ing CO2 emissions While some countries such as the US and Australia are decommis-sioning hydropower dams China is looking to large-scale hydropower construction as one of the solutions to a future clean energy supply This means that hydropower devel-opment plays a central role in Chinarsquos sus-tainable transition

However utilization of hydropower is con-troversial not least in China and has met increasing resistance in recent years particu-larly from Chinese and international NGOs the media as well as the scientific commu-nity Critique is most often focused on how or if social and environmental sustainability can be ensured in such large scale projects as the social and environmental impacts of large scale hydropower development are very complex and difficult to measure More gen-erally the viability of relying on hydropow-er as a future source of energy is also being questioned One of the major concerns here is the overarching issue of climate change ie glaciers shrinking and yearly water runoff decreasing This means less stable water flow for hydropower and less water for other pur-poses such as agriculture water supply for down-stream countries etc

By Louise Lyngfeldt Gorm Hansen Asia Research Centre Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) ndash sinodanishcenterdk

M

Picture from SinoHydro promotion material 2011

Research

31CSQ

In contrast to for example the wind power sector in China in which many foreign com-panies have invested the hydropower sector is dominated by a few large state-owned en-terprises Our knowledge of Chinese state-owned enterprises is still limited and there-fore my PhD project is also part of a larger research project at the Asia Research Centre with focus on Chinese state-owned enter-prises and the reform of the public sector in China

In combining these interests my PhD exam-ines how Chinese state-owned enterprises in the hydropower sector tackle the demand to expand hydropower development to help reduce Chinarsquos CO2 emissions while be-ing under increasing pressure to deliver on sustainability principles in the planning and execution of large scale hydropower pro-jects The pressure comes mainly from NGO organizations the media and the scientific community both at home and from abroad I am conducting a case study focused on a specific river in south-western China which has ndash until now ndash not been fully developed for hydropower and the plans for addition-al hydropower dams on the river are still undergoing assessments The project has continually stalled due to disagreements between Chinese government officials at all levels NGOs the media the increasingly deregulated but still state-owned Chinese hydropower companies and the scientif-ic community However the project has very recently been reopened and so will go through another round of assessments in the near future The case is an excellent example of the complexity of hydropower develop-ment decisions in China but it also highlights some of the social and environmental conse-quences of the global push to decrease CO2 emissions

China plays and will continue to play an increasingly important role globally in the years to come However the country also fac-es enormous challenges - not least regarding the environment These challenges also affect economies in Western Europe - for better or worse My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective so

that we here in Europe and in Denmark can more knowledgably and actively engage with China to help solve some of these difficult challenges that eventually affect us all In do-ing this I contribute to gain a better under-standing of the Chinese perspective on envi-ronmental sustainability that can be of use to companies wanting to engage in the Chinese renewable energy sector

My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective rdquoldquo

Picture of the case-river taken by the author in 2012

32 CSQ

FROM BLUEPRINT TO PRACTICE

ENERGY EFFICIENT CONSTRUCTION

By postdoc researcher Satu Reijonen Department of Organization CBS

In the EU almost one third of CO2 emis-sions are attributed to energy used in the construction and use of buildings (FIEC

2007) It is therefore not surprising that the construction sector has recently been subjected to a substantial amount of policy measures to combat its negative effects on climate change In Denmark the state has posed new thresholds for the energy efficien-cy of new buildings including a plan for con-tinuous improvement in the area This far the industry has responded well to these stricter performance requirements In the future re-quirements will rise to levels that are not that easily achieved in the coming years build-ings will have to use 25 less energy than in year 2008 How can these ambitious goals become business as usual

One of the most discussed ways besides add-on technologies such as windmills and solar panels to enhance the energy efficiency of a building is through an energy efficient phys-ical design In practice this means reduction of energy used for heating cooling down and lighting of the building through an optimal orientation and dimensioning of the build-ing

Integrated energy design contrary to add-on technologies can be achieved on a rath-er modest additional budget This should be good news for the sector that today is eco-nomically pressed Indeed today many low energy building projects claim to use the in-tegrated energy design method (IED) when seeking to meet the most ambitious energy related goals In this commentary I wish to discuss some challenges related to the imple-mentation of this design tool

The integrated energy design method sug-gests that one of the main problems in not achieving energy efficiency is that energy related concerns become integrated into the design process too late The method consists of two elements the first of which addresses the need to bring in energy related knowl-edge throughout the design process It sug-gests that design teams ought to be multidis-ciplinary and that architects engineers and experts should work together either co-lo-cated or in a series of workshops Further-more it suggests systematizing energy quali-ty follow-ups into the design process This is all very relevant and inspiring

Oddly enough a closer look on the actual design practices reveals that few seem to ac-tually follow the method of integrated energy design to the point This poses an interest-ing question about the challenges related to the use of such management technologies as vehicles for increased energy efficiency in construction Maybe it is about time practi-tioners and researchers ask themselves what are the boundaries of and challenges related to the use of these tools ndash and what else is required for organizing for more energy effi-cient building design processes

A revolution of relations

Integrated energy design points to the need to bring energy related expertise into the de-sign process at an earlier point In order to achieve this cooperative practices between different professional groups are advocated for Historically energy experts have most-ly been used to respond to rather advanced architectural plans Shared workshops and co-localization suggest a change in these business as usual relations But are they pos-sible and what type of changes do they ac-tually imply in order to function as wished

Research

33CSQ

Satu Reijonen is postdoctoral scholar at the Department of Organization at CBS In her on-going research project she investigates how architects and energy engineers two different profes-sions cooperate and coordinate their work regarding energy related ques-tions in construction design The ways in which relations between and roles of these professions become consti-tuted through socio-material arrange-ments are a central topics in her work Besides studies of work Satu has con-ducted research on environmentally friendly products and markets

ABOUT SATU RAIJONEN

The initiation of this type of new working forms is certainly beneficial for energy effi-cient design However for several reasons they are more difficult to make work than one would assume While it may sound rea-sonable it is after all a tall order Integrating energy related practices into an environment where different visions professions and in-terests meet and the divide between what one profession does is clearly and historically demarcated is demanding While architects need to make room for the intervention of energy experts into the creative work energy experts have to become capable of working creatively and relate to and follow the visual and aesthetic cues from architects In order to work these kind of changes in the profes-sional roles and relations have to resonate with the skills and visions of individual work-ers not only management level design strat-egies It is not surprising that organizational change scholars remind us of the possibility of loose coupling from the strategies placed at the management level (March 1981) What integrated energy design suggests is a kind of a revolution in the ways in which both the architects and the energy engineers envision their role and space of mobility

Linear tools in an unlinear design process

Integrated energy design suggests that the energy performance of the emerging build-ing design be followed up at certain points during the design process The method de-picts a rather mechanistic and linear under-standing of a design process consisting of phases within which iteration may occur While energy related issues may be dis-cussed as quality goals during these phases the method places a lot of emphasis on the check ups performed in the transition from one phase to another Design processes how-ever can also be characterized in a different manner unlinear exploratory and whirl wind type of practices where clear cut phases hardly exist (Akrich 1992 Van de Ven et al 1999) This also applies to the architectural design processes where the object of the de-sign is emergent (Yaneva 2009) This entails that the product the building may change in unexpected ways during any day of the de-sign process If this alternative description of the design processes is viable delegating energy related issues to some predetermined check up episodes may strike a false accord and indeed be contradictory with the aim of enhancing coordination and cooperation between professional groups What happens in between the predetermined checkups may very well be where the energy efficiency of the building becomes configured and where the intervention from the energy experts

would come most needed Perhaps this is why the best performing projects do not blindly follow the steps of the IED method Check ups however and no doubt play a role in verifying and making visible the energy performance for partners outside the design team

Integrated energy design as many other sus-tainability standards and guidelines make visible systematize and legitimize the ex-istence of environmental management and sustainability issues in organizations and work processes In this such way tools create awareness and legitimacy for environmental and sustainability issues The integrated en-ergy design method also suggests a possible way of thinking about what type of design practice might help us to achieve the stricter energy requirements of the future It howev-er falls short in becoming the change agent it suggests This is hardly surprising as a meth-od or a standard of any kind should only be seen as a possibility or as an opening for an inquiry of what the practice could be about Reconfiguring a well established practice is hard work and it would be foolish to trust that a design method would achieve it by itself What the method does is to alert us of the more profound changes in the pro-fessional roles and relations that is needed in order to enable the change However the method due to its rather mechanical under-standing of the design process may come to work against its own ambition of integrating energy issues into the design work In its quest for integration the method defines at which points in time the architectural and the engineering project has to be checked for its energy performance This approach may lead to bringing in energy related concerns in some artificially created points in a design process which may additionally compart-mentalize energy related issues from where the design really happens

Integrated energy design as many other sustainability standards and guidelines make visible systematize and legitimize the existence of environmental management and sustainability issues in organizations and work pro-cessesrdquo

ldquoLiteratureAkrich M (1992) The De-Scription of Technical Objects in Shaping Technology Building Society Studies in Soci-otechnical Change eds WE Bijker and J Law The MIT Press Cambridge Massachusetts pp 205-224

FIEC 2007 The impacts of buildings on climate change httpwwwbuildingsplatformeuepbd_publicationdocFIEC_Memo_p2919pdf on 1222008

March JG (1981) Footnotes to Organizational Change Administrative Science Quarterly vol 26 No 4 pp 563-577

Van de Ven A D Polley R Garud and SVenkataraman (1999) The innovation Journey Oxford Oxford Univer-sity Press

Yaneva A (2009) The making of a building A pragmatist approach to Architecture Bern Peter Lang

More about integrated energy design(IED)

httpwwwintendesigncomosloIntendnsfAttachmentsGuideline_Version_2pdf$FILEGuideline_Version_2pdf

34 CSQ

The climate challenge in

shipping

ldquoGlobal shipping faces two major challenges both of which are caused by its reliance on fossil fuelsrdquo

By Reneacute Taudal Poulsen Department of Innovation amp Organizational Economics

RENEacute TAUDAL POULSEN

ASSOCIATE PROFESSOR DEPARTMENT

OF INNOVATION AND ORGANIZATIONAL

ECONOMICS COPENHAGEN BUSINESS

SCHOOL

orecasts show that the shipping indus-tryrsquos CO2 emissions will most likely continue to rise in the next two to

three decades as demand for world sea-borne trade will expand At present global shipping accounts for approximately 33 per cent of global CO2 emissions but this share will most probably increase in the coming years if many onshore industries succeed in their aims of reducing emission levels

At the same time rapidly rising fuel costs put heavy strain on shipping company budg-ets Historically and until very recently fuel costs were only a minor concern for ship-ping companies but now they often exceed 60 per cent of variable operational costs Fuel savings made through energy efficiency improvements thus represent a win-win sce-nario for the shipping industry and for so-ciety at large They simply make good sense for everyone

Despite the strong incentives for fuel sav-ings numerous studies have demonstrated that shipping fails to implement cost-ef-fective measures to reduce fuel consump-tion Fuel-saving technologies are readily available in the market and in many cases pay-back periods are very short (less than a year) Changes in operational habits which require few if any investments also hold a significant potential for fuel savings

Global shipping thus holds several classic examples of energy-efficiency gaps Gaps occur wherever cost-effective measures to improve energy efficiency fail to materialize The causes for energy efficiency gaps have been a favourite research topic within the field of energy economics for decades and economists sociologists and political scien-tists have been able to identify several means to bridge the gaps However within the mar-itime domain energy efficiency gaps and the climate challenge remain neglected issues Legal barriers

Shipsrsquo fuel consumption rises steeply with speed Hence slow-steaming or just minor speed reductions can lower consumption and emission levels significantly Since oil prices started to rise rapidly a few years ago shipping companies have indeed resorted to various slow-steaming practices and com-panies which succeed in this regard have been able to gain competitive advantages In other words actors in the industry are trying to bridge the energy efficiency gap However and in spite of the strong price signals from the rising fuel prices a potential for fuel sav-ing through slow steaming still remains

FNew CBS research project

A new three year research project at CBS under-

taken by Reneacute Taudal Poulsen for the Department

of Innovation and Organizational Economics will

examine the climate issues bringing insights from

energy economics and innovation management

into the field of shipping economics The project

which is financed by The Danish Maritime Fund

runs from 2012 to 2015 The project asks why en-

ergy efficiency gaps continue to occur in shipping

and how shipping companies and the maritime

industry at large can use innovative business

models and process innovation to turn the climate

challenge and the rising fuel costs into a business

opportunity Energy efficiency gaps occur both

in daily operations and when investments in new

vessels are made This article will briefly present

two examples of energy efficiency gaps from

the operational level and some of the preliminary

findings of the project

References

Jaffe AB and RN Stavins 1994 lsquoThe energy efficiency gap What does it meanrsquo Energy Policy 22 (110) 804-10IMO 2009 Second IMO GHG Study 2009 London International Maritime OrganizationMoriarty P amp D Honnery 2012 lsquoEnergy efficiency Lessons from transportrsquo Energy Policy 46 1ndash3Poulsen Reneacute Taudal 2012 lsquoEmissions and energy efficiency - the twin challenges for shippingrsquo Mercator Maritime Innovation Research and Education MarchJune 447-454

Reneacute Taudal Poulsen is Associate Professor at the Department of Innovation and Organizational Eco-nomics at CBS He is also affliated with the Centre for Shipping Economics and Innovation at CBS Reneacute Taudal Poulsen holds a PhD degree in marine environmental history from the University of Southern Denmark and he has worked within the field of maritime business studies for the last seven years He has published in such journals as Fisheries Research Business History and Scandinavian Economic History Review

His current research intersts concern the environmen-tal challenges faced by the global shipping industry and business model innovation in the maritime domain

Research

35CSQ

It is clear that shipping companies cannot fully bridge the energy efficiency gap alone In fact factors beyond the control of in-dividual shipping companies and various structural or legal barriers prevent shipping from fully realizing the slow steaming po-tential

Port congestion remains a world-wide prob-lem and causes ships to spend remarkably long periods inactive Despite the financial crisis and the large drop in shipping freight markets after 2008 many loaded vessels sit at anchor outside ports waiting for berths In some cases they wait for a few hours In other cases for days weeks or even months Instead of waiting the ships could have re-duced speeds and saved fuel And the de-livery and the loading of the cargo in port would not have been delayed in any way However in many cases shipping companies or ship operators cannot reduce speed in spite of port congestion

Educational barriers

Energy efficiency gaps in shipping are also evident when the fuel consumption levels of sister ships are compared Even though the vessels are identical and operate in the same waters studies have shown that their fuel consumption may differ by several Decisions made by the crews onboard and by managers in the onshore organizations clearly influence the level of fuel consump-tion For instance if a captain selects only very small course deviation margins when coding the autopilot of the ship the shiprsquos rudder will move frequently to keep the ship on the exact course all the time This will slow down the ship and cause higher fuel consumption than if the captain had allowed for slightly wider margins and the wider margins would not have any effect on the safety of the ship Decisions made by the commercial depart-ments eg on how to crew the vessels how to monitor vessel fuel consumption or which new equipment to install onboard may also

have a large impact on fuel efficiency and emission levels If shipping company man-agers can nurture a fuel saving culture this could potentially make a difference Since 2007 or 2008 shipping companies have in-deed started to facilitate such organizational changes but educational barriers remain a problemOnshore truck drivers are now offered fuel saving courses but fuel-saving is not a major part of the traditional curriculum in nautical schools or in the commercial education of shipping trainees For good reasons the nau-tical educations have focused on maritime safety but this has caused them to neglect the climate challenge in shipping and the is-sue of fuel saving In fact no single nauticaltext book on maritime fuel savings has yet been published and according to teachers and students in the nautical schools this serves as an educational barrier to ener-gy-efficiency improvements The technical level of education for commercial employees in shipping companies may also hinder im-provements in energy-efficiency Some com-

mercial shipping employees may not have sufficient training to fully see and acknowl-edge the consequences of their decisions on fuel consumption In short it seems that fuel awareness and the educational systems have responded more slowly to the climate chal-lenge than the rise in fuel prices may other-wise suggest

For shipping to bridge energy-efficiency gaps education ndash both nautical and com-mercial ones ndash clearly is an area to set in Here the potential for innovative solutions is both evident and pertinent Changing educational systems and awareness is no easy task bearing in mind the global nature of the shipping industry and international crewing of the world fleet It is clear howev-er that educational upgrading is necessary for shipping to effectively address the cli-mate challenge effectively

Charter parties between ship-operators and shippers state a specific time of arrival for the vessel and in order to avoid claims ships proceed to port accordingly regardless of berth availability Experiments with new more flexible charter parties which allow for slow steaming in case of port congestion have recently been made Shipping compa-nies have generally been enthusiastic about this flexibility but often shippers remain skeptical Lack of trust between shippers which need the loading of their cargoes as soon as possible and shipping companies may be a cause for this discrepancy Even in cases where the savings made from slow-steaming are split between shipping companies and shippers shippers have re-mained skeptical Port queuing systems may have a role to play here

Many ports including some of the major container iron ore coal and grain ports serve ships on ldquofirst-come first-servedrdquo ba-sis Ships only receive their ldquoticketrdquo in the

waiting line upon their arrival at the port Again lack of trust between the ship-oper-ators shippers and the port authorities may explain this phenomenon Moreover port authorities currently do not have incentives to change queuing practices because they cannot gain a share in the fuel savings made from slow-steaming

The problem is particularly strong in the major tramp shipping segments of tanker and dry cargo shipping where vessels act as ldquotaxis of the seardquo serving numerous shippers and rarely calling at the same ports If the fleet from a shipping company only calls at a particular port once a year and the compa-ny has very short-term relations to individ-ual shippers building trustful relationships between the parties remains a major chal-lenge Solving this problem and realizing the full potential of slow steaming will require systemic innovation in shipping and port systems and further studies are required to identify possible solutions

36 CSQ

The Wind turbine industry -

Emerging global innovation networks in Europe and China

The wind turbine industry has developed into a global network encompassing a large amount of diverse actors within innovation production and installation of wind turbines across the globe

By Stine Haakonsson and Julia Kirch Hollitsch Department of Business amp Politics CBS

market for wind energy Chinese actors have turned China as a location into another im-portant lsquohubrsquo in this network This has led to new forms of innovation collaborations between European and Chinese actors The result has been a complete re-configuration of the industry over the past decade In the International Business and Economic Geog-raphy literatures the development of global production networks in which lead-firms be-come orchestrators of dispersed production

enmark has traditionally played a key role as an lsquoinnovation hubrsquo and com-

panies in Denmark remain among the lead firms within the wind turbine industry Re-cently the industry has reorganized from being located predominantly in the Triad regions (mainly in Europe and the US) to becoming a globally dispersed industry This development can partly be explained by de-velopments in international and national politics Due to the growth of the Chinese

activities in globalized value chains is well established theoretically as well as empiri-cally In the globalization process lead firms relocate production activities to low cost lo-cations by off-shoring and through vertical disintegration and outsourcing to specialized suppliers Producers of wind turbines are no exception However until recently the mar-ket and innovation activities remained con-centrated in Europe and US

With the recent focus on global politics for a post-carbon society the market for wind tur-bines has experienced an immense growth and a high degree of market globalization New locations have developed into main markets One of these is China which since 2010 has been the largest market for wind turbines in the world (in capacity installed) The globalization process in the wind tur-bine can be explained by a combination of offshoring of production by European lead firms mainly through foreign direct invest-ment and establishment of domestic lead firms in emerging markets In 2010 there were four Chinese-owned companies among the top-10 producers of wind turbines as compared to 2003 where all firms on this list were from Europe and the US

D

Julia Kirch Hollitsch

Stine Haakonsson

Stine Haakonsson and Julia Kirch Hollitsch from Depart-

ment of Business and Politics CBS are engaged in the

Sino-Danish Center for Research and Education (SDC)

project on Wind Energy in China Both research on the

current restructuring of industries and firms at the glob-

al level (outsourcing off shoring global value chains)

In particular their research is on 1) the restructuring of

innovation and RampD activities into global innovation net-

works(GINs)2)thechangingroleofemergingmarkets

(ChinaIndiaBrazilSouthAfrica)intheseemergingGINs

and 3) technology transfer and capability building related

to renewable energy

Research

37CSQ

by adapting their products to the Chinese market and through cost-out development activities in the new locations primarily China

As a result the wind industry is today highly knowledge-intensive and internationalized Due to increased attention and investments in sustainable transition policies and car-bon-reducing technology China has over the past decade developed into a high prior-ity investment area for wind turbines Also Chinese companies are upgrading technol-ogy and innovation from the global firms through integration into GINs Moreover the production and innovation networks for wind energy become highly complex and consist of many different suppliers of com-ponents (blades gear boxes control systems bearings) resulting in a variety of network linkages among suppliers of different com-ponents and the wind turbine producers

From our empirical data including more than 40 in-depth interviews collected in 2011 and 2012 in the wind turbines indus-tries in China and Denmark we have identi-fied some very interesting patterns We have identified very different characteristics of the GINs established by the Chinese wind tur-bine industry and the European wind tur

Emerging Global Innovation Networks

Innovation processes are also moving be-yond the boundaries of individual compa-nies and national innovation systems Firms engage in cross-border innovation networks spanning different innovation systems which may be national regional or sectorial in or-der to stay competitive in the global econ-omy Chinese lead firms are entering this scene too The result is globally organized networks of interconnected and integrated functions and operations by firms and non-firm organizations engaged in the develop-ment and diffusion of innovations so-called Global Innovation Networks (GINs) Lead firms internationalize innovation through strategies of exploitation global generation of innovation and global techno-scientific collaborations Chinese wind turbine pro-ducers ndash acknowledging their resource and capability deficiency ndash pursue strategies of innovation network integration through strategies of global generation of innovation These firms link up with specialized Europe-an actors such as core component suppliers through partnerships and networks in or-der to tap into the technology of firms from developed countries and upgrade Mean-while European companies internationalize through exploitation strategies for example

bine industry Although Danish and Chinese actors are experiencing a re-organization of activities and establish networks and globa-linnovation strategies the result is very dif-ferent

The industry from Europe and US

The industry from Europe and the US hosts the lead firms in terms of core technology de-velopment Denmark has traditionally played a key role as lsquoinnovation hubrsquo in technology development and global lead firms such as Vestas and Siemens Windpower (previously Danish lsquoBonusrsquo) took its start already in the 1970s The core competences of the Danish wind turbine innovation system are based on large testing facilities and long track records mainly due to the long time-line of experi-ence The wind industry goes 40 years back and therefore Denmark has a good knowl-edge pool within establishing wind farms (aerodynamics minimizing power loss in energy transmission wind mapping and other installation-related technologies)

38 CSQ

that will make it possible to finance the pro-jects ldquoFrom then on our wind turbine pro-jects developed very fastrdquo(Interview Wind Engineer Chinese Academy of Sciences) Thus this law was a milestone for elevating renewables to a strategic position in China or as expressed by a European lead-firm ldquoWhat drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick offrdquo

Until the turn of the millennium Chinarsquos wind energy industry was largely built on donors acquisition of finished wind turbines and licensed technology from European companies spread on a very small scale into the local industry during the mid 1990s Chi-nese wind turbine technology has evolved from imitation reverse engineering and licensing in the 1980-90s combined with assistance from foreign consultants One example is how DANIDA funded a project in 1986 for Goldwind in Xinjiang which imported 13 units of 150 kW lsquoBonusrsquo (now Siemens Wind Power) turbines

To get beyond the stage of pure imitation several policies have been introduced with the intent to upgrade Chinese manufacturers to obtain indigenous innovative capabilities Policy programs were introduced to enhance Chinese companies to develop wind energy subsidizing wind energy RampD expenditures at varied levels over time establishing a re-newable energy fund and through the ldquo863 Wind Programrdquo under the Tenth Five-Year Plan (2001-2005) Local content require-ments were put in place in which develop-ers of wind energy projects were required to source 70 pct of the content in China These policies ndash which essentially forced foreign manufacturers wishing to sell wind turbines to the Chinese market to establish China-based manufacturing facilities ndash were only removed recently (in 2009) One result was that the foreign companies had to up-grade local suppliers of components

Due to the technological complexity many European (and hereby also the Danish) firms are vertically integrated and have most com-ponents produced in-house or with regular specialized suppliers According to these companies the different parts need to be well adjusted to each other to some extent even co-developed in order to enhance effi-ciency and the lifetime of the wind turbine Likewise the European industry has expe-rienced a concentration of actors with the result that there are only relatively few but large manufacturers in Europe (the larg-est ones are Vestas Siemens Gamesa and Enercon) Together these four companies accounted for about 35 of the global mar-ket in 2010 By seeing the wind turbine as an integrated system these lead firms aim at producing lsquothe Rolls Roycersquo model wind turbines These are strong in terms of qual-ity and standards but generally expensive These firms learn cost-out techniques from their engagement with partners in China

The Chinese Wind Turbine Industry

Today the Chinese wind turbine industry is overly competitive It entails more than 80 wind turbine manufacturers and the Chi-nese market boasts the highest growth rates internationally with an average growth rate of 968 percentages annually in the last three years Several large domestic Chinese wind turbine manufacturers have emerged within the last decade Sinovel and Goldwind take the largest share followed by United Pow-er and Ming Yang just to mention some of them As of the end of 2010 these four were A major driver for the development of the Chinese wind energy market has been the establishment of an institutional context as a comprehensive concerted policy frame-work addressing the development of renewa-ble energies This change in the institutional context was first reflected clearly in the 11th 5-year-plan (2006-2010) which explicitly linked environmental sustainability to the key goal of establishing what was called a harmonious socialist society signalling a socially environmentally and economically sustainable economy With the Renewable Energy Law from 2005 the Chinese wind energy industry really took off as it explicitly seeks to ensure that renewable energy pro-jects have an outlet for their output at prices

Technical barriers and the role of GINs for a post-carbon society

Despite high ambitions in terms of devel-oping innovative capabilities Chinese pro-ducers still produce almost exclusively for the Chinese market However Chinese wind turbine manufacturers have recently started an internationalisation process and some are approaching international markets Not least for tapping into new knowledge

Europe (and Denmark in particular) is per-ceived as a main location from which the Chinese companies can learn more A cou-ple of Chinese companies have already set up RampD centres in Denmark European firms have also initiated RampD centres in new lo-cations primarily China and India In other words GINs can be identified

Our research also points towards important barriers for GINs in the wind turbine in-dustry and for approaching a post-carbon global society Most importantly are the technological barriers intellectual property rights quality issues and issues of limited appropriability of knowledge Further the institutional framework remain relevant for displaying how the sector and the emerging GINs are embedded institutionally socially and technologically Whether actors trans-act knowledge technology and know-how through cooperative innovation activities also depends on how core the technology of a given technology is Still as the market grows in China it seems to have matured in Europe because of changing policies on re-newable energy To sustain the position as a global lsquohubrsquo and world leader in wind tech-nologies there is a strong need for support in Europe as this research really shows how fast the Chinese industry is moving One major result is how important networks are for upgrading companies and it seems that Chinese firms perform better in network strategies and manage to tap into relevant knowledge than the European firms

What drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick off rdquoldquoInterview Wind Engineer Chinese Academy of Sciences

39CSQ

Social Enterprise World

ForumNadine Koumlcher from 180Degrees recounts her experience from the

conference on

Rio de Janeiro Brazil 2012

In the numerous panel debates and parallel track discussion it became clear that Impact Investment is a hot topic among both social entrepreneurs and impact investors a diverse group consisting of corporations founda-tions and potential donors However various obstacles impede a harmonious relationship between the twoSocial enterprises face structural challenges to make themselves more appealing to im-pact investors They have to become more transparent and increase their accountability This includes improving their impact assess-ment and reporting tools However despite much discussion no consensus could be formed on how to optimally conduct im-pact assessment One of the most frequently proposed methodologies involves the use

From the 16th to the 18th of October the CBS Sustainability Platform granted me the opportunity to attend the 5th Social Enter-prise World Forum which took place in Rio de Janeiro Brazil This yearly international conference focuses on social enterprises and their effectiveness in solving social challeng-es The overall theme of the 2012 conference hosted by NESsT was ldquoSocial Enterprise Investing for Impactrdquo Thus for three days over 180 speakers and 650 delegates from 30 different countries shared their experiences regarding impact investment and discussed possibilities to attract new investment by both the public and the private sector for so-cial enterprises

of control groups Story-telling has also been men-tioned to be a powerful tool to provide investors with a proof of outcomesSocial investors are willing to accept returns just below the market rate in exchange for a social return However large profits are still expect-ed and many social enter-prises are afraid of being unable to generate them Social enterprises typically operate on a small scale and are not used to undertake large projects with huge sums of investment given to them Many are too small for social investors to be

attractive as costs are similar for small and large investments although larger invest-ments have a higher payoff

Nichole Echert the CEO of NESsT there-fore pointed out that it is necessary to align expectations between impact investors and social entrepreneurs and to be patient in establishing a relationship between the two groups The expected financial return has to be reasonable close to covering the costs of operation and social returns have to be re-ported to investors by use of clearer criteria

By Nadine Koumlcher Director of Branch Development180 Degrees Consulting Limited

ldquoSocial Enterprise Investing for Impactrdquo

Students

40 CSQ

A highlight of the con-ference was definitely the site visit to a social enterprise project in a recently pacified fave-la It brought further insights on the great variety of social enter-prises that exist in Bra-zil and their missions and struggles We visit-ed a community center at which Comitecirc para

Democratizaccedilao da Informaacutetica (CDI) uses technology to fight poverty and to stimulate entrepreneurship CDI has formed a corpo-rate partnership with Coca Cola which in the same building teaches young locals how to write a CV and find a job Talking to the young locals at the center it became apparent that an increased self-confidence and the in-spiration they get from meeting former now employed participants of the project (eg at Coca Cola) is what they valued most of being part of the class

Participating at the conference was definite-ly a unique and valuable experience I would not want to miss as I tremendously improved my knowledge in the field of social enter-prises through attending the numerous pres-entations and discussions and further met so many inspiring social entrepreneurs impact

In addition it has been stressed that the problem is not a shortage of investment capital (even though the government could promote more impact investment by for instance granting tax breaks) but how to deploy it Social entrepreneurs also have to be aware of the different advantages and dis-advantages of the various types of capital It has to fit their process of establishment and it has therefore been suggested that funds and grants are most optimal in the start-up phase to cover such costs as capacity train-ing There is generally a lack of this early stage financial support Following the initial phase strategic philanthropy money would be most appropriate before impact and final-ly equity investment is sought Furthermore new ways of investment which fit the social enterprise world have to be created replac-ing the current situation of trying to fit social enterprises into the current financial world

investors and students with a genuine inter-est in the field

Participating at the conference was definitely a unique and valuable experience rdquo

ldquo

Social Enterprise World Forum 2013 in

Calgary Canada

The TRICO Charitable Foundation in part-nership with the Social Enterprise Council of Canada and the Social Finance Forum has been selected to host the 6th Annual Social Enterprise World Forum SEWF 2013 will take place October 2-4 2013 in Calgary Al-berta The Forum will present the Canadian social enterprise movement with opportuni-ties to engage learn and share on the inter-national stage

SEWF 2013 will be a gathering of over 1000 Canadian and international delegates who are involved in the social enterprise move-ment where the blending of social and fi-nancial values is core to business Attendees will consist of practitioners (from all sec-tors) funders investors supporters elected officials and public servants from around the world

Nadine Koumlcher

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 9: CBS Sustainability Quarterly 2013 #1

9CSQ

The Cluster on Sustainability in the Post-Growth Economy starts from the realization that the era of perpetual economic growth may be over The Cluster explores and devel-ops ideas and imaginaries of what a sustain-able post-growth economy might look like The purpose of such effort is to transform the end of growth from being the cause of social economic and ecological depredation into being an opportunity for the creation of new forms of economic organization that do not rest upon the condition of growth We ap-proach this challenge by starting to rethink some fundamental economic concepts from the perspective of a post-growth economy

What is a company What is work What is leadership What is money What is con-sumption What is a market And what is in fact economic growth The Cluster will ap-proach these questions theoretically by look-ing into their assumptions rooted in the par-adigm of growth capitalism and empirically ndash by studying actual practices of alternative economic organization Associate Professor Ole Bjerg (oblpfcbsdk) and Professor Bent Meier Soslashrensen (bmslpfcbsdk) the Department of Man-agement Politics and Philosophy

Sustainability in the Post-Growth Economy

The Cluster on Corporate Governance and Leadership for Sustainability Strategy focus-es on managerial behavior and performanc-es related to responsibility in corporations with a particular interest in how managers and leaders in firms relate to and behave vis aacute vis expectations to corporate sustainability strategies policies and action The Cluster will invite discussions that engage with how responsibility issues play a role in shaping systems and models of corporate governance and leadership and conversely how different models impact corporate responsibility and performancesThe emphasis will be placed on bringing into the management debate to what extent responsibility brings demands

for new management competences and man-agement models The Cluster is particularly but not exclusively interested in exploring the relationships between sustainability and corporate performances with (1) board of director characteristics (2) corporate owner-ship structures (3) shareholder activism (4) leadership approaches (5) ethical consider-ations regarding corporate governance and leadership and (6) comparisons of corporate governance and leadership approaches in a Scandinavian context vis-agrave-vis other global contexts

Associate Professor Bersant Hobdari (bhintcbsdk) the Department of Internation-al Economics and Management

Corporate Governance and Leadership for Sustainability Strategy

Bent Meier Soslashrensen

Ole Bjerg

Bersant Hobdari

10 CSQ

Writing a good business case

from a Hollywood perspective

Jenny Mead (left) picture from readthehookcom

On November 28 2012 Kirsti Reitan Andersen temporary project manager at CBS Sustainability Platform interviewed Senior Research-er Jenny Mead Darden School of Business University of Virginia in extension of her visit to CBS Jenny Mead was here to host a workshop and one-on-one sessions on how to write good business cases with a focus on sustain-ability

Interview with Jenny Mead Senior Researcher Darden School of

Business

Could you tell a little bit about yourself

ldquoI have been at Darden School of Business for the past 10 years I write cases about business ethics sustainability strategy and leadership I am not a business person at all but call my-self a writer because that is what I prefer I write stories I have worked in the film busi-ness in Hollywood where I worked as a De-velopment Executive It means that I looked for projects that could be made into movies Again I am not a business person at allIn the 1920s Harvard University started case-based teaching Darden followed through on the case tradition in 1950s Darden has con-tinued to focus on business ethics as key in educating students From the 1950s onwards

in the first year of undergraduate studies we have had a mandatory business ethics course This tactic has developed a large student body which is constantly aware of business ethics as an integrated part of business life The business ethics cases I write have an ele-ment of ethical ambiguity and decision-mak-ing that contains ethical considerationsrdquo You are visiting CBS to host a case-writing workshop and one-on-one sessions with as-piring case-writers What have the partici-pants gained from the workshop

ldquoThey get a primer of what a business case looks like They learn what a case looks like and are given an exercise where they have to

craft a case and have colleagues critique that The second day concerns teaching notes If a professor from another business school wants to teach it they can get the teaching notes that suggest how to teach the casesrdquo

What is a good case and why are cases ben-eficial for teaching

ldquoInstead of using textbooks in classes teach-ers can make use of business cases Generally a case should present a dilemma that has to be solved or a business decision that has to be made by the protagonist in the caseBusiness cases are a good way of placing the student in the shoes of a manager or decision maker Giving him or her the practical expe-

CSQ Interview

11CSQ

Writing a good business case

from a Hollywood perspective

Jenny Mead and Jonas Hedman from Department of IT Management at Copenhagen Busimess School

From the workshop at Copenhagen Business School

riences in a safe environment ndash no company is going bankrupt based on the decisions It is almost real world training but you are not in the real world A feature of case teaching at Darden School of Business is the use of small video clips of the protagonist in the business case Instead of students just reading about the protago-nist in the case the protagonist presents the problem or issue on video to create a lively teaching environmentrdquo

Do businesses actually think about ethicsThat is a good question and I believe there is

a growing awareness I am very impressed by Darden and the students Maybe it is because of the mandatory first year ethics course but the students are very concerned with CSR sustainability and values

I am currently working on a series of cases on conscious capitalism More and more businesses are adopting true values A shift has been made towards conscious capitalism The idea of conscious capitalism is that busi-nesses realize the value of good treatment to all stakeholders Businesses exist to create value for everybody

Relevant links

Darden Case Studies

The Olsson Center for

Applied Ethics (Jennyrsquos

employer)

The Business Roundtable

Institute for Corporate

Ethics

httpwwwcorporate-ethics

orgpublicationscase-studies

httpwwwdardenvirginia

eduwebOlsson-Center-for-

Applied-Ethics

httpwwwcorporate-ethics

org

12 CSQ

SUSTAINABILITY AND

DEVELOPMENT COOOPERATIONInterview with Minister for Development Cooperation

Christian Friis Bach

Did you know that 7 out of 10 of the fast growing economies can be found in Africa Or that DANIDA funds a programme in which CBS and other Danish universities work together with universities in Tanzania Ghana and other countries to increase the quality of research and uni-versity-level education in devel-oping countries

CSQ - Elisabeth Crone Linding amp Stefano Ponte sat down with the Dan-ish Minister for Development Co-operation Christian Friis Bach to hear about how the developing world is moving ahead fast ndash and why Denmark needs to keep up in order to stay relevant

I t is not every day that we meet with min-isters on the top floor of Asiatisk Plads

ndash the official home of the Danish Ministry of Foreign Affairs and DANIDA the inter-national development cooperation branch of the Ministry Nevertheless here we are over-looking the busy waters of the Copenhagen canal and looking forward to a long-planned rendezvous with Christian Friis Bach Min-ister of Development Cooperation since the autumn of 2011

Besides spending time in the academic ranks of Copenhagen University and the political spheres of the European Commission the Minister knows a thing or two about the de-veloping world he has previously devoted his

time to positions in DanChurchAid WWF World Wide Fund for Nature MSActionAid and the Danish Ethical Trading Initiative

In its current strategy DANIDA has put a new focus on green growth renewable en-ergy sustainable agriculture and innovative solutions to enable continued access to scarce resources ndash a quite green agenda in fact But how does this resonate in a developing world that is growing very fast According to the Minister perceptions are changing with more democratic political environments be-ing built

ldquoMore and more developing countries see green growth and sustainability not as stum-

bling stones but as building blocks of a fu-ture strong economy They recognize that in a world of natural resource scarcity and increas-ing prices on for example energy they need to adopt a different growth pattern More and more poor countries are buying into this And therefore we now have a unique opportunity for shaping the political framework and ena-bling environment to create more sustainable developmentrdquo

So how does a business school such as CBS fit into this equation What can we offer

This is a key question for us to ask As the Sustainability Platform was born out of the CBS Business in Society strategy we are in-

CSQ Interview

13CSQ

terested in looking for ways to address grand societal challenges such as ensuring sustain-able development

Christian Friis Bach recognizes that CBS as a research and educational institution has a role to play here ndash maybe even a bigger role than we play now Because even though CBS is known and regarded as a very internation-ally oriented university the Minister encour-ages CBS to go even further in sharpening its global commitment and profile

ldquoMany of the problems that we have related to growth and employment in Europe are not to be found in developed countries I hope that CBS continues to engage internationally in order to shape graduates to tackle global chal-lenges For example 7 out of 10 of the worldrsquos fastest growing economies are in Africa and here I would really urge CBS to have an even stronger engagementrdquo

CBS is involved in the Building Stronger Universities in Developing Countries Pro-gramme (BSU) which is a partnership be-tween research and higher education institu-tions in selected developing countries and all the main Danish universities The long-term goal of the initiative is to make the partici-pating institutions stronger by conducting joint research projects that offer knowledge and solutions to localdomestic and global challenges to produce better graduate pro-grams and for universities to play an increas-ing role in the economic social and political development of their own countries How-ever Christian Friis Bach also encouraged close dialogue with a broader set of partner universities in the developing world as an important way for CBS to shape its research and educational efforts and thus remain rele-vant in the future

Christian Friis Bach highlighted

ldquoIt is a big world And the world moves fast And I think the challenges upon our edu-cational system in Denmark are increasing every day When I go to South Korea China Latin America or Africa I see that they look increasingly towards each other for innovative solutions not towards Europe If we need to remain relevant we do have a challenge hererdquo

For example this means looking at the econ-omies in the world that are the most innova-tive These are in many cases in the develop-ing world so this is when CBS should invest when it comes to partnering in research educational development and knowledge exchange for example among faculty and students

The Minister also notes the advantages that can be gained from globalizing our institu-tions much more broadly and working across borders and academic fields for example on

The Building Stronger Universities in Developing Countries initiative amp CBS

ldquoBuilding Stronger Universities in Developing Countriesrdquo is a partnership between research and higher education institutions in developing coun-

tries and Danish universities The long-term goal of the initiative is to make the participating institutions stronger in the sense that they

bull playanincreasingroleintheeconomicsocialandpoliticaldevelopmentofthesocietiesinwhichtheyarelocated

bull functionasnodesofinnovationandknowledgeproductionprovidingsolutionstolocaldomesticandglobalchallenges

bull produceskilledandmotivatedgraduatesthatcancontributetothefurtherdevelopmentofthesocietiesandaddressthechallenges

faced

The ldquoBuilding Stronger Universitiesrdquo initiative has a structure with four thematic platforms Copenhagen Business School contributes to one of

the four platforms under the initiative the Growth and Employment platform which is a partnership between University of Ghana (UG) Kwame

Nkrumah University of Science and Technology Ghana (KNUST) University of Dar es Salaam Tanzania (UDSM) Sokoine University of Agriculture

Tanzania (SUA) and the major Danish universities From CBS Associate Professors Soslashren Jeppesen and Michael Wendelboe Hansen the CBS

Center for Business and Development Studies is part of the project which for example seeks to develop relevant PhD programmes strengthen

growth and employment relevant research activities and research collaboration and disseminate research findings to stakeholders

wwwbsuudorg

Students Sierra Leone (picture from umdk) Photo Joslashrgen Schytte

When I go to South Korea China Latin America or Africa I see that they look increasingly towards each other for innovative solutions not towards Europerdquo

ldquo

14 CSQ

health technology and business develop-ment in cooperation with developing coun-try researchers And we need to be good at a lot more than ldquojustrdquo development coopera-tion ldquoif we want to remain relevant for exam-ple in Africa on sustainable business we can-not afford to send people out who have worked isolated in the development community here in Denmark So instead of seeing development research as a separate discipline it needs to be integrated into everything we dordquo

That is why the Minister argues for more fo-cus on educating graduates that are experts and specialists but not necessarily within development cooperation Instead he says Denmark needs graduates that can develop the best possible solutions for the developing world within energy technology etc ldquoThe fast-growing economies in China Southeast Asia Latin America Africa do not need spe-cial things made for developing markets they need top innovative solutions and high-quality products and we need to be able to offer that to them if we want to remain relevantrdquo

One of the solutions worth repeating is that of partnerships According to the Minister universities need to remember that partner-ships with other research institutions as well as with private companies and organizations can provide greater insight

ldquoYou need not only public-private partner-ships but large-scale multiple partnership Still universities can sometimes behave as isolated entities Of course universities need to focus on the core business of researching and educating students but they will also in-creasingly be challenged to engage in these in-ternational and multiple partnerships This is where you will find some of the most inspiring

About Christian Friis Bach

Born 1966 in Frederiksberg Denmark Married three children Lives on a hobby farm near Ganloslashse

Present officeMinister for Development Cooperation 3 October 2011 ndash

Education1992-1996 PhD International Economics Royal Danish Agricultural University Copenhagen 1986-1992 MSc Agronomy Royal Danish Agricultural University Copen-hagen

Work Experience2010-2011 Special Advisor for EU Commissioner Connie Hedegaard (UN Global Sustainability Panel) 2010-2011 CEO ViewWorld ApS 2009 Affiliated Professor in International Economics and Development at the University of Copenhagen 2005-2010 International Director DanChurchAid 2002 Journalist at the Danish Broadcasting Corporation (DR) 1999-2005 Associate Professor International EconomicsDevelopment Economics Royal Danish Agricultural University (University of Copenha-gen)

Other engagements2010-2011 Member of the Board of the Danish United Nations Associa-tion 2008-2010 Initiator and Board Member of the Danish Initiative for Ethical Trade 2008-2009 Member of the Danish Africa Commission 2007-2011 Member of the Presidium for WWF World Wide Fund for Nature Denmark 2000-2006 Board Member International Institute for Sustainable Develop-ment 1997-2001 Chairman Mellemfolkeligt Samvirke (Danish Association for International Cooperation)

Christian Friis Bach has published a large number of books reports and ar-ticles in newspapers and magazines Please see wwwfriisbachdk for details

15CSQ

In December 180 Degrees Consulting (180DC) finished its third round of pro-bono social impact consulting projects with even more success than in previous semes-ters All consultants showed dedication and motivation by spending a large amount of their spare time to work with socially con-scious organizations in order to help them to improve their social impact

An overcrowded lecture room during the 180DC information meeting at the begin-ning of the semester and the high number of applications to join the consulting projects were evidence of great interest in 180DCrsquos activities Out of the 139 applicants the top 45 were selected in a two-step recruitment process and grouped into teams of five to work on the nine exciting projects lined up in the Fall 2012 semester

All projects involved Danish-based organi-zations with a strong focus on either social andor environmental sustainability The projects however differed vastly One of the consulting teams assisted Engineers Without Borders and Action Aid in developing an investment rationale for the cultivation of farmland belonging to an Indian orphanage as well as assessing the social return of this investment

Another 180DC team worked with Hertha an organization focused on the reverse in-tegration of ordinary people into a commu-nity of mentally challenged Hertha needed assistance with improving their external reporting setup to stakeholders which was achieved by developing useful tools for the organization to measure both the social and cultural impact of their activities Yet another team of consultants helped the International Rehabilitation Council for Torture Victims optimizing their internal processes and thus helping them pursue their vision of a world without torture

During the consulting period 180DC or-ganized several training sessions for the con-sultants of the organization hosted by pro-fessional consultancies and each team was assigned a mentor with expertise specific to the given project The highlight of the semes-ter was the Final Event at which all of the teams presented their projects in front of a large audience comprised of all 180DC con-sultants the 180DC board members as well as mentors clients and a jury consisting of representatives from PwC DI CBS Sustain-ability Platform BCG and VSFA The juryacutes task was to evaluate the consulting projects based on their written report and oral pres-entation Based on the creativity feasibili-ty and impact potential of the projects the chairwoman of the Jury Birgitte Mogensen PwC announced the winner of the 180DC Social Impact Award Team Engineers With-out Borders

All of the 180DC board members have throughout the semester been working hard to constantly improve the organization in or-der to ensure a high quality of the services provided to clients and of the learning ex-perience provided to students With a new extended board in place 180DC is looking forward to continue its successful journey in the upcoming semester which kicked-off in January with two international projects in Chile and Sierra Leone ndash thanks to the sup-port of the CBS Sustainability Platform

by Nadine Koumlcher

UPDATE FROM 180DEGREES180 Degrees Consulting is an international student consultancy that works with growing non-profits helping them achieve a greater social impact

Contactphone no +45 6061 6399e-mail cph180degreesconsultingorg

Updates from partner organizations at CBS

16 CSQ

The past semester was a good one for 360deg Students for Sustainability Not only did our organization grow to nearly 50 members this fall but we were also nominated in the Student category for the CSR Awards 2012 ndash the second year in a row You can watch the nomination video here httpwwwyoutubecomwatchfeature=player_embed-dedampv=6J5mwn7TcYI Although we didnrsquot win the award representatives from 360deg got the chance to participate in the conferencersquos many seminars ndash and not least hear Bill Clin-ton speak360deg also took it to another level with 360deg Academy The project was a huge success with over 250 people signed up for the ex-tracurricular course It shows that there is a clear interest in CSR and sustainability among the students and that 360deg Students

for Sustainability fill an important gap in providing the students with a forum where they can discuss such issues with each oth-er professors and practitioners We have al-ready started planning Academy 2013 which will run in the fall In addition to 360deg Academy 360deg organ-ised several successful events and seminars the past semester 360deg Develop Prize was kick-started in November and has already found some dedicated social entrepreneurs who will join the coming events this spring as well as the final competition 360deg also co-organized events on microfinance (with Danish Forum for Microfinance) and fair-trade (with Fairtrade Maeligrket) We also created a nice Christmas spirit at the CBS campus with our annual Christmas event featuring cookies a fairtrade Christmas tree

and do nations to Red Cross and Verdens SkoveWhile it is important to look back this semester 360deg is focusing on the future By the end of the semester 360deg Students for Sustainability will have changed its name to oikos Copenhagen After becoming part of the international student network oikos in 2011 we believe that changing our name will emphasize our international commitment and will show the students the many oppor-tunities that are available to them through the oikos network You can read more about oikos International and the other 36 chapters around the world by visiting wwwoikos-in-ternationalorg

Christina EkChairwoman of 360deg and soon-to-be President of oikos Copenhagen

UPDATE FROM 360 STUDENTS

360deg Students for Sustainability

360deg Students for Sustainability is a non-profit student organization based at CBS working to enable and inspire students to make responsible and sus-tainable decisions in their future lives and professional careers

Contact Christina Ek tlf 42 39 99 54 mail info360studentsdk

Live show at CSR Awards 2012

(Picture from csrfondendk)

Updates from partner organizations at CBS

17CSQ

UPDATE FROM PRME

New approach by the Curriculum Development

projectThe commitment to the initiative of the UN Principles for Responsible Management Education (PRME) at CBS has been further sustained via a more targeted approach to the development of the curriculum at the undergraduate programmesAs part of the adherence to PRME CBS has launched a Curriculum Development project to integrate responsible management prac-tices into the study programmes and also make these practices more explicit This is an extensive process that recently has been even more focused on the individual content of each of the study programmes A more cus-tomised approach will only strengthen the analyses of syllabi for each core course and increase the content of explicit responsible management

ldquoThe current restructuring of the Service Management bachelor programme and the development of three specialised lines of ed-ucation offer a great opportunity to align the curriculum development with the Principles for Responsible Management adopted by CBS Currently the CBS Office for Respon-sible Management Education and faculty members from CBS are working to identify opportunities to integrate responsible man-agement education into the educational programmerdquo Assistant Professor Adriana

Budeanu BSc in Business Administration and Service Management CBS In collabo-ration with study boards students and fac-ulties the Curriculum Development project enables a targeted approach to the integra-tion of responsible management content in order to comply with the overall structure of each study programme

Anti-piracy strategy from Maersk was a winning strategy

In collaboration with the CBS Sustainabili-ty Platform the CBS Office for Responsible Management Education arranged an internal competition to identify the best team of stu-dents to represent CBS at the International Business Ethics Case Competition (IBECC) in San Diego later this year The students had to select a business case entailing a challenge with legal financial and ethical aspects and propose a solution to this challenge A jury found the winning team based on a live presentation followed by a QampA session that took place in November 2012

The winners of this unique opportunity were the graduate students Bjoslashrg Ilsoslash Klinkby (MSc IBP) Adam Eithz Kromann (MSc BAP) and Anne Cathrine Gaarde (MSc IBP) They presented a business case on the anti-piracy strategy of Maersk

Winners of the Business Ethics Case Competition

Updates from partner organizations at CBS

18 CSQ

THESIS PARTNERSHIP BETWEEN GRADUATE

STUDENTS AND COMPANIES MATCH-MAKING

On behalf of CBS the Office for Responsible Management Education invited companies and organi-sations to participate in a match-making event with graduate students who were looking to write their thesis within the field of sustainability or social responsibility

Prior to the event that took place on the 6th of February ambitious graduate students were matched with eight very diverse organ-isations all wanting to explore challenge and develop CSR related activities The selection of organisations ranged from Center for So-cialt Ansvar who sought the studentsrsquo advice on how to revitalise their social concepts in corporation with the civic public and pri-vate sector to Wonderful Copenhagen that engaged the students in their aspirations of

retaining Copenhagen as a leading ldquogreenrdquo conference destination This diversity mere-ly reflected the broad-based educational standards that are embodied in the conducts of CBS and enabled students from all study areas to participate With the meeting as the focal point of the event the aim was to in-troduce more students and companies to the possibilities of a thesis partnership On that basis it is the hope that students and organisations will take the initial meeting

further into a collaboration resulting in a thesis that with an analytical and reflected approach hopefully provides valuable insight for all parties The event was indeed a unique opportunity for the students to get the or-ganisationsrsquo unremitting attention but also the organisations expressed their excitement about how the theoretical knowledge and skills of the students could be combined with the specific issues reaching beyond everyday operations of the organisation

PRME

Lene Mette SoslashrensenTel +45 3815 2651E-mail lmsiklcbsdk

PRME Manager

Johanne Duelund Kramer from Wonderful Copenhagen and CBS student Joseacute Bandeirinha from International Marketing and Management

Updates from partner organizations at CBS

19CSQ

A value adding partnership

The match-making event was kick-started by Professor Andreas Rasche who gave a short speech on trends in the field of sustainability and social responsibility Likewise thesis con-sultant Vibeke Ankersborg rounded off the event by guiding both students and organisa-tion representatives in the right direction of obtaining a value adding thesis partnership

By facilitating integration of the theoretical knowledge pool at CBS with real-life busi-ness cases and their challenges this initiative underpins CBSrsquos Responsible Management Education profile ldquoAddressing societal chal-lenges in interaction with business is a key element in our Business in Society strategy and we hope to set up a similar initiative in the futurerdquo Lene Mette Soslashrensen PRME Manager CBS

Being able to engage in a thesis partnership gives us the opportunity to get new and fresh eyes on the challenges and opportunities we face in the aspiration of sus-taining Copenhagenrsquos position as marked leader within sustainable meetings and events ndash and the other way around we see it as a positive contribution to help young students to gain in-depth knowledge on how we actually work with sustainability in practicerdquo

Ulrika Maringrtensson senior communication consultant Wonderful Copenhagen

ldquo

Case Companies

20 CSQ

Update from CBS Centre for Corporate Social Responsibility

cbsCSR celebration10 years anniversaryOn Thursday November 22 2012 CBS Centre for Corporate Social Responsibility (cbsCSR) celebrated its 10 years anniversary The guest list included prominent guests from both academia and the corporate world Head of Department Dorte Salskov-Iversen President Per Holten-Andersen and cbsCSR Director Esben Rahbek Pedersen bid all a warm welcome to an afternoon of inspirational talks and celebration of the Centre

Susanne Stormer followed and initiated her presentation with a brief recap of Novo Nor-diskrsquos history and continuous development of corporate sustainability practices She em-phasized how Novo Nordisk with the help of Professor Ed Freeman has prioritized a close relationship with their stakeholders and learning with them as a means to reach a higher level of corporate sustainability An additional key take-away from Susanne Stormer was the notion of transformational partnerships She argued that corporations NGOs and other stakeholders should use each other to form transformational partner-ships instead of just transactional partner-ships She claimed that in order to address and solve the problems in todayrsquos world the issues have to be addressed at the roots ndash in cooperation with stakeholders

The program had been divided into two ses-sions Each session ended with a panel dis-cussion that gave the audience the opportu-nity to track the developmental trajectory of CSR and participate in the discussion of the future direction of CSR

In the first session which focused on the history of CSR Professor Lucia Reisch from Department of Intercultural Communica-tion and Management CBS Susanne Storm-er VP of Corporate Sustainability at Novo Nordisk and Professor Gail Whiteman from Rotterdam School of Management present-ed their perspectives on the development of CSR up until nowProfessor Lucia Reisch set the stage with an enlightening introduction to the history of sustainable development and emphasized balance on the triple bottom line as key

Professor Gail Whitemanrsquos presentation highlighted both the past and the future of CSR Her main topic was how to deal with planetary boundaries She drew attention to inherent implications of teaching sustaina-bility and CSR at a business school and ar-gued that in order for students and business executives to understand the implications of planetary boundaries and their importance classes should be taught in nature

In the second session Annette Stube Head of Group Sustainability in AP Moller ndash Maersk Simon Pickard Director General at ABIS and Professor Andreas Rasche from cbsCSR presented their views on the future of CSR

Updates from partner organizations at CBS

21CSQ

The topics in the second panel debate evolved around some of the same issues as in the first panel debate The audience was very interested in the educational aspect of CSR and sustainability and a discussion fol-lowed concerning the issues of lsquopreaching to the convertedrsquo Research shows that 75 of CSR courses are not mandatory 1 thus those students and executives who have a natural interest in CSR and sustainability enroll for these courses The speakers agreed that this posed a challenge for the future and that business schools might have to re-invent themselves in this regard They stressed that it is crucial that CSR and sustainability courses become mandatory Also the prac-titioners advocated in-company learning They set forth the argument that it may be a long time before current students will have sufficient impact on the corporate sector but also because the corporate sector and the ac-ademic world can learn from one another

Sum-up of key perspectives for the future

So how has lsquothe business of business really changedrsquo and in what direction From the afternoonrsquos discussions there were two recur-ring topics Susanne Stormer briefly touched upon it when she talked about transforma-tional partnerships Annette Stube and AP

Annette Stube set forth the argument that ldquothe business of business has really changedrdquo She gave an example of how AP Moller ndash Maersk should use their position in the shipping industry to facilitate substantial changes Simon Pickard supported her argu

ment stating that it is not possible for single corporations to make a difference but that clusters of corporations have to collaborate to push changes If corporations do not join forces they risk only making incremental changes Simon Pickard further argued paraphrasing Andrew Pettigrewrsquos argument that in the course of time there has been a conceptual change in the argument for CSR He pointed to the fact that it started out as a moral or philanthropic enterprise and is now perceived as a governance case Simon Pickard pointed to the fact that the future of business is to create shared value ie creat-ing economic value that also creates value for society at large Building on these re-marks Andreas Rasche discussed the future of standards and codes in the field of CSR Emphasizing a variety of case examples he argued that while standards have proliferated in recent years eg certification schemes in the global coffee and apparel industries there is a need to more actively manage the co-ex-istence of these initiatives in order to avoid overlap Rasche also highlighted the pivotal role of consumers who need to acknowledge standards and labels as market signals and factor social and environmental concerns into purchasing decisions

Moller ndash Maersk has it as an integrated and crucial part of their CSR policies and Simon Pickard highlighted how instrumental the-ories are no longer enough The concept of shared value is inescapable and it is what the lsquobusiness of businessrsquo in the early 21st centu-ry is really about

A second topic which also attracted a lot of attention was the importance of continuous education of both lsquothe convertedrsquo but also of opponents of CSR and people who are not aware of the importance of CSR and sustain-ability In-company learning was depicted as a crucial part of the development of CSR and sustainability however a physical change in the teaching settings is also required to meet the approaching environmental challenges

Centre Director Esben Rahbek Pedersen concluded the conference and the winners of the prize of 25000 DKK to participate in the IBECC case competition in San Diego in May 2013 were announced and the celebra-tion of cbsCSR ended with a reception

Thank you to all the speakers moderators and guests for an inspirational afternoon

By Elise Lind Jacobsen and Line Pedini Rasmussen cbsCSR

1Rasche A Gilbert DU and Schedel I (2013) Cross-Disciplinary Ethics Education in MBA Programs Rhetoric or Reality Academy of Management Learning and Education (forthcoming)

Three of the keynote speakers (from left) Professor Gail Whiteman from Rotterdam School of Management VP of Corporate Sustainability at Novo Nordisk Susanne Stormer and Sustaina-bility Professor at CBS Lucia Reisch

Simon Pickard Director General at ABIS

22 CSQ

UPDATE FROM

CBS GOES GREENThe Green Associate Program

2012 was an exciting year for CBS Goes Green with many great achievements One of the new initiatives that was launched in 2012 was the Green Associate Program Here CBS students were able to volunteer in a program to support sustainable behavior among students and staff at CBS More precisely 25 CBS stu-dents put in 30 hours of voluntary work to help with the planning and execution of Green Week - a week consisting of a lineup of successful companies shar-ing their sustainable initiatives and thoughts The overwhelming interest in sustainability and sustain-able business among the students has made it evi-dent that the Green Associate Program should con-tinue in 2013 We at CBS Goes Green look forward to this as well as all of the other initiatives we will be conducting in 2013

The following is an extract of an article that three of the associates wrote themselves This extract shows the associatesrsquo own experience working with CBS Goes Green

What does it mean to be an

associate with CBS Goes Green

In Week 39 CBS turned into a plethora of green initia-tives and events in order to make CBS reach its sustaina-bility goals for 2020 Both students and employees at CBS were asked to become a Green Ambassador to help CBS be smarter greener and better

But many of you may wonder how it is to be one of the people behind the scene As associates we have been help-ing out before and during Green Week in order to establish an event that would reach all corners of CBS This has re-quired both time and effort in order to make things work out but in the end there are also a lot of gains from being an associate

Firstly as an associate you get to expand your network You get to work with people from different studies countries and ages and you also get to talk to many different people while promoting

A bonus about being an associate is also that you get an official certificate which can be attached to your resume This shows that you have put an effort into making Green Week happen

Furthermore by being an associate you feel like you have a larger impact on making CBS a greener place Instead of being an ambassador and only doing the things you can do you get to be the person who raises awareness about sustainability You may influence people to make the right choices and it makes you feel good

Lastly it also gives you a feeling of responsibility because you work under an official part of CBS CBS Goes Green ndash a unit with a clear agenda and a clear vision

By Michael Nguyen Christian Charity and Christian-Philip Lundahl

Updates from partner organizations at CBS

23CSQ

International conference on sustainable biofuels presents latest research

By Barbara Louise Bech Department of Business and Politics CBS

EU Renewable Energy Directive

In 2009 the EU RED set a mandatory target for member states to use a minimum of 10 renewable energy sources in the transport sector by 2020 of which biofuels is expected to be the main contributor This is part of a policy to cut greenhouse gas emissions promote the green technology sector develop rural areas and reduce dependency on fos-sil fuels Due to increasing controversies claiming lack of sustainability in first generation biofuels based on food crops recently the EU pro-posed an amendment to the Directive limiting the share of first gener-ation biofuels to 5 of the targeted 10

The debate quickly zoomed in on the sustainability criteria as outlined in the EU RED drawing attention to the lack of social safeguards The general consensus is that the concept of sustainability is too narrow-ly defined Several case studies (Mozambique Brazil and Indonesia) show that basic labor and human rights of local populations are not protected by RED and the directive is more viewed as an environmen-tal safeguard This discussion raised questions in regard to the effects of RED globally (eg sustainable production in developing countries) and in this context whether EU legislation can have a lsquotrickle downrsquo effect on national standards of nation-states outside the EU In this re-gards one could ask if enforcement at the local level falls under the re-sponsibility of the EU but since first generation biofuels are produced outside the EU it is an important issue for European consumers ndash al-though interest is currently mainly driven by NGOs

On November 19-20 2012 the Copenhagen Biofuels Research Network (COBREN) held an international conference on sustainable biofuels inviting 30 research-ers from around the world to present and discuss their latest research During the two day conference focus was the sustainability criteria of the EU Renewable Energy Directive (RED) voluntary certification schemes and their impacts on sustainability and social safeguards in producer (developing) countries in particular and governance complexity of the biofuel system which has grown considerably over the past decade

Rough guide to biofuelsThere are two types of biofuels biodiesel and ethanol First generation biofuels (1G) are based on food crops and feed stocks such as palm oil soybean and rapeseed used for the production of biodiesel and sugarcane and corn for ethanol The produc-tion of biofuels increased heavily in the 2000s questioning the sustainability of 1G A number of issues have been claimed as key impediments to sustainable biofuel production such as deforestation competition with food production and increasing food prices loss of biodiversity lack of social and environmental safeguards and indirect land use change (ILUC) These contro-versies have led to a call for the promotion of second generation biofuels (2G) which are typically based on agricultural waste (eg straw) plants and forestry residues (also called lignocellu-losic biomassmaterials) However the immediate problem is that there is yet to be developed a market for 2G as they are more costly to produce (require longer and more complex production process)

CBS Sustainability Platform co-director and organizer of the COBREN conference Stefano Ponte doing a presentation

Event

24 CSQ

Voluntary certification schemes

In relation to how standards and certifications can impact sustainable biofuel production discussions pointed to the important difference be-tween mandatory and voluntary schemes As the controversy of sus-tainable biofuels in particular first generation is rolling out special attention has been given to biofuel production competing with food production ILUC value of emissions reduction and environmental and social issues This have off sprung a proliferation in private certifi-cations and during the conference it was discussed intensely whether these schemes have an actual effect on sustainability Depending on the point of view certifications can fill out the holes in legislation and act as a tool to force companies to comply with sustainability crite-ria However the development processes of new certifications may not be inclusive of relevant stakeholders (eg representatives of local populations) Additionally the nature and governance of the networks steering these processes is not always transparent and may favor one interest over the other This intense discussion led to the question of the purpose of certifications Can we use them for anything other than as a CSR PR tool as long as consumer awareness is as low as it is and how do the different regional drivers influence sustainability as a concept The answers to these questions are not easily found and it will be interesting to observe the future development and partnership between public and private sector

Governing the biofuel industry

Within the past decade biodiesel production has risen from below 30PJ in 2000 to 572PJ in 2009 globally and fuel ethanol production has increased from 340PJ to 1540 PJ respectively As the market expands more actors eg governments international organizations civil soci-ety and NGOs private sector networks and companies and profes-sions (biofuel experts and consultants) get involved and play different roles to promote their own agendas Being an emerging industry the structure of the biofuel system shows hybrid forms of governance with many actors As controversies of biofuelsrsquo sustainability develop more issues are added to the agenda giving life to more actors and interests in the governance structure Research shows a shift in power balance as private companies and NGOs increasingly push the agenda The dis-cussions during the conference centered on the complexity of sustain-ability issues calling for mixed governance responses and governance instruments such as standards and certifications which in return need to be followed up with endorsement instruments Given these com-plexities the question is whether the biofuel industry is too difficult to govern as long as the governing systems (for instance the EU) cannot accommodate expectations of all stakeholders

Indirect land use change (ILUC)ILUC is the unintended consequence in terms of more carbon emis-sions due to land use change around the world induced by the expan-sion of croplands for biofuel production When land that could be used to grow food and feed crops is used to grow energy crops this leads to existing agricultural production moving to another area or country where land is converted When this land is cleared and converted to cropland and because natural lands (rainforests and grasslands) store and sequester carbon in their soil and biomass a net increase in GHG emissions can occur Due to this change in the carbon stock of the soil and the biomass ILUC has consequences in the GHG balance of a biofuel Adding to this complexity models for ILUC calculations are not mainstreamed and thus difficult to assess internationally

25CSQ

Mellemfolkeligt Samvirke (MS) or Action Aid Denmark is a Danish NGO founded back in 1944 The

organizations key objective is to fight poverty by ensuring greater political influence for the worldrsquos poor and margin-alized at the local national and international levels MS works to bring about long-term development in the worldrsquos poorest countries focusing especially on education co-

operation and the ability to organize MS mainly works in Africa Read more about the organizationrsquos work

at wwwactionaiddk

Action Aid

A private sector view on the future of sustainable biofuels

By Barbara Louise Bech Department of Business and Politics CBS

nergy security continues to be an eminent concern in a world of finite resources For a long time biofuels have been viewed as

one of the key solutions to replace our dependency on fossil fuels and battle climate change but in recent years controversy has contested the sustainability of first generation biofuels based on food stock Issues such as lack of environmental safeguards causing loss of biodiversi-ty and deforestation and lack of social safeguards ensuring land and labor rights in producer (developing) countries have been claimed as key impediments to sustainable biofuel production Critical observers also argue that the emission savings of biofuel use in compar-ison to fossil fuels can become much smaller (or even disappear) when indirect land use change (ILUC) is included in the calculations Furthermore bi-omass production from food stock is argued to compete with food production and in-creasing food prices

The Danish NGO Action Aid has been engaged in biofuels since 2008 and is par-ticularly involved in protecting womenrsquos rights and preventing land grabs in de-veloping countries ldquoWe are very concerned about land use when it comes to first genera-tion biofuels This relates both to the people who are dependent on the land and to food security We rarely see good combinations where the local populationrsquos needs are taken into consideration The energy crops grown on the local farmerrsquos land donrsquot benefit him and local consumption is essential for developmentrdquo explains Kirsten Hjoslashrnholm Soslashrensen political advisor Action Aid Denmark

It is therefore believed by many that second generation biofuels is the only way forward to avoid competition with food and avert ILUC Next generation biofuels is based on lignocellulosic biomass such as agricultural and household waste and forest residues The Biorefining Alliance represents a cluster of leading Danish companies within the renewable energy sector with an ambition to promote second gener-

ation biofuels and make Denmark a world leader of technology and bi-ofuel productionldquoDenmark has very strong competencies in green tech and as a society we have put a lot of money in its development This is go-ing to be a huge deal globally so we are asking whether Denmark wants to be a customer or a producer What we are working for is of course that we become a lead exporter of technology but also that Denmark produces second generation biofuels commercially Even though we are a small country we cannot settle on selling know-how Denmark also needs to have some industrial productionrdquo says Anne Grete Holmsgaard di-

rector of Biorefining Alliance In her view Denmark needs to keep a firm grip on developing innovation or it will slowly but

steadily move out of the country In this regard she views sustainability criteria for biofuels as an in-

novator and not a hindrance

The Sustainable Biofuels Network (SBN) is another cluster of private companies trying to facilitate the transition from fossil fuels to biofuels in the transport sector For the aviation industry biofuels are considered

to be the only alternative to fossil fuels and the industry firmly believes that biofuels will

survive according to Robert Arendal chairman of SBN ldquoThe aviation industry has set very clear

guidelines for the use of biofuels We are not going to use food based biofuels and we will minimize the use of fresh

water By 2050 our target is to use 50 biofuels in the global aviation so we really need to move fastrdquo he explains adding that living up to sustainability criteria includes being careful about where biofuels are produced ldquoBut it should be produced all over the world and close to the 1600 airports worldwide that account for 95 of all aviationrdquo

he technology for second generation biofuels is already here but the problem is that production costs are too high and there is no market As long as prices are not competitive with conventional fuels it will be difficult to move forward ldquoOne might ask why there is no market The customers are certainly there so if I was in the business of producing

E

As part of the COBREN international conference on sustainable biofuels private sector civil society and academia were invited to give their views on sustainable biofuels at a roundtable discussion at an open public seminar held at DIIS November 19 2012

Event

26 CSQ

SBN is a ldquobreeding groundrdquo and ldquoknowledge centerrdquo for the biofu-els industry where synergies are created between all parties within

the biofuels sector SBN focuses in promoting supporting and enabling the commercial development and use of clean and sustainable biofuels for Heavy Road Transportation Shipping and Aviation Emphasis is put on the importance of global standards for biofuels with local as well as international institutions and decision makers to encourage con-

structive guidelines and rules for the development of biofuels SBN adheres to EUrsquos sustainability criteria SBN is a non-profit asso-

ciation established in 2008 Visit their website for more info at wwwsustainablebiofulsdk

Sustainable Biofuels Network(SBN)

The Biorefining Alliance (BA) was founded December 2011 by DONG Energy Novozymes Haldor Topsoslashe and the

Danish Agriculture and Food Council and is a three-year project to politically promote Denmarkrsquos position in the entire value chain from residues to bio-based products The Alliance has set forth a number of recommendations to achieve a sustainable Danish bio-economy Among other these include (i) that all organic

waste be considered a resource (high-value recycling and storable energy) (ii) reducing the cost of manufacturing 2G

bioethanol and (iii) contemplating the establishment of a national center for sustainable materials

Biorefining Alliance

second generation biofuels I would get started right awayrdquo says Robert Arendal The Biorefining Alliance is working on lowering the costs and recommends a stronger regulatory framework with binding targets as it has been done for the wind industry ldquoThere already is a market for first generation biodiesel which is the least sustainable biofuel We need to make a market for second generation biofuels and we know that binding targets work I donrsquot think it is possible to create a market for the lsquogreen consumerrsquo as you have one for organic food products but I believe that a niche market for HRT (Heavy Road Transport red) such as public bus transport could be a supplementrdquo concludes Anne Grete Holmsgaard

How the future for sustainable biofuels will shape depends on political will to create a market for second generation and the ability of private sector to innovate and bring prices down Oil production is claimed by some to already have peaked and exploring new geographical areas for extraction could be as costly as kick-starting the market for second generation biofuels although much less sustainable As the American ecologist and environmentalist Bill McKibben wrote in his book ldquoDeep Economyrdquo back in 2007

Even before we run out of oil wersquore running out of planetrdquoldquo Bill McKibben

27CSQ

The Transparency-Sustainability NexusA workshop on the practices meanings and tensions of organiza-

tional transparency

n December 5 2012 the Department of Intercultural Communication and Management (ICM) hosted an in-

ternational workshop supported by CBS Sustainability Plat-form and ICM The workshop was organized by Oana Brindusa Albu Mikkel Flyverbom and Hans Krause Hansen respectively PhD Fellow and Associate Professors at ICM The idea of the workshop was spurred by the observation that while ideals of transparency like lsquoopennessrsquo lsquodisclosurersquo and lsquoreportingrsquo are pro-liferating these years the actual construction of transparency within and across organizations is poorly understood Most re-search on transparency is highly normative if not celebratory just as popular discourse about transparency not least in the areas of sustainability and corporate social responsibility is obsessed with ideals of accountability performance and effi-ciency and pervaded by an optimism currently pushed to its extreme with the explosion of new media technologies

But the truth is that we generally know very little about the implications of ideals of transparency when translated into practice in specific issue areas and organizational contexts Importantly each of the contributions to this workshop clear-ly suggested that the contemporary politics of transparency is much more complex contradictory and dynamic than tradi-tionally recognized All papers examined various aspects of the contemporary obsession with transparency and specifically the increasing use of disclosure techniques within and around or-ganizations the rationales or myths underpinning these meas-ures their intended and unintended consequences including implications for identity-making management and govern-ance practices

Clare Birchall initiated the workshop with a paper titled lsquoThe Cultural Politics of Disclosurersquo highlighting how transparency has been positioned as a superior form of disclosure in popular management and organizational literatures and in policy docu-ments In her account the growing preference for transparency is a consequence not only of the positive qualities seen to be intrinsic to transparency itself but also a response to the per-ceived negative characteristics of other forms of disclosure such as gossip scandal and rumor Lars Thoslashger Christensen (with co-author Joep Cornelissen) then analyzed transparency as one of the foundational myths of modernity myths understood here as descriptions of the world in a narrative form which seeks to produce meaning and direction for a community and its members Such lsquoMyths of Transparencyrsquo sustain numerous organizational practices ndash including openness information provision and auditing But as argued by the authors there are conflicting evidence regarding the capacity of such practices to create insights and understandingThat aspirations and techniques of transparency can have seri-ous repercussions was demonstrated by Peter Skaeligrbaeligk (with co-author Mark Christensen) in the paper entitled lsquoAuditing and the purification of blamersquo which analyzed how auditing auditing practices and institutional entities including the po-liticized environments surrounding them are mobilized and participate in blame games and allocation In his paper titled lsquoQuantification transparency and the costs of reassurancersquo Henrik Vollmer analyzed various dimensions of the role of nu-merical records and signaling in generating transparency trust and mistrust

By Hans Krause Hansen Department of Intercultural Communication amp Management

Event

O

28 CSQ

Some of these aspects were also touched upon in the paper lsquoDisrupted Disclosures The Politics of Visibility and Surveil-lance in the Extractive Industriesrsquo by Hans Krause Hansen (with co-author Julie Uldam) which explored the wider field of visibility and surveillance in which contemporary transpar-ency policies are unfolding with examples from the extractive industries Oana Brindusa Albu in her lsquoTransparency and the organizational self everyday politics of identification in Cooperativesrsquo examined the paradoxical effects of values and practices of transparency on collective identity formation pro-cesses drawing upon her ongoing multi-sited fieldwork in co-operatives Under the heading of lsquoThe Improbability of Secrecyrsquo Mark Fenster analyzed the intersections of secrecy and trans-parency with examples from the US government and its efforts to control information which according to the author does not necessarily stop the flow of information Finally Mikkel Fly-verbom and Christina Garsten examined lsquoThe sway of (big) data ndash calculations and advocacy in the name of transparencyrsquo focusing on the operations of data-based forms of corporate lsquotransparency evangelismrsquo and advocacy through revelation including examples from Center for Global Development and Google

In all the workshop was highly successful in investigating not only the historical and mythical foundations of transparency but also the different practices and forms of transparency that currently shape organizations and a wide variety of issue areas It also provided a reminder of the usefulness of investigating a concept of transparency in relationship to a host of other con-cepts such as secrecy myth gossip blame surveillance visi-bility identity information and knowledge The organizers of the workshop wish to thank all workshop participants for their valuable contributions and the CBS Sustainability Platform and ICM for their support

Hans Krause Hansen

Mikkel Flyverbom

Oana Brindusa Albu

ASSOCIATE PROFESSORPHD (ICM)

ASSOCIATE PROFESSORPHD (ICM)

PHD FELLOW (ICM)

29CSQ

Louise Lyngfeldt Gorm Hansen is a PhD Fellow at the Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) She has a back-ground in Chinese Studies from Copenhagen University (BA) the Asian Studies Program at CBS (BSc) and in International Business Stud-ies and Sustainable Business (MSc) from CBS

The aim of her cross-disciplinary PhD project is to explore how the Chinese hydropower sector works with environmental sustainability and more particularly how the concept is understood and performed in the planning phase of a major dam project in the southwestern Chinese province of Yunnan

The aim of the project is to gain a deeper under-standing of how Chinese firms in the renewable energy sector such as hydropower companies understand and value sustainability as well as how such firms tackle the increasing pressure to deliver socially and environmentally balanced solutions to one of Chinarsquos major challenges lowering CO2 emissions in a time with rapidly rising water and energy demands Theoretically the project draws on - and aims to contribute to ndash a combination of Asian Studies and Science and Technology Studies

PHD FocusLouise Lyngfeldt Gorm Hansen

HYDROPOWER

SUSTAINABILITY

30 CSQ

HYDROPOWER

SUSTAINABILITY IN

CHINAy PhD project combines two of my main research interests China and

environmental sustainability I have studied China for a number of years mainly because of an interest in how the Chinese view sus-tainable development So since finishing my masters I have known that I wanted to study how China plan to tackle a sustainable tran-sition in the years to come I saw my chance when CBS announced PhD scholarships in

DanishEuropean-Chinese social science research in collaboration with the newly es-tablished Sino-Danish Center for Education and Research (SDC) and started my PhD in October 2011My PhD project focuses on the Chinese energy sector more specifically the rapidly growing part of the energy sector engaged in renewable energy Here I examine Chinarsquos second largest source of electricity gene-

eration hydropower In recent years China has become increasingly focused on reduc-ing CO2 emissions While some countries such as the US and Australia are decommis-sioning hydropower dams China is looking to large-scale hydropower construction as one of the solutions to a future clean energy supply This means that hydropower devel-opment plays a central role in Chinarsquos sus-tainable transition

However utilization of hydropower is con-troversial not least in China and has met increasing resistance in recent years particu-larly from Chinese and international NGOs the media as well as the scientific commu-nity Critique is most often focused on how or if social and environmental sustainability can be ensured in such large scale projects as the social and environmental impacts of large scale hydropower development are very complex and difficult to measure More gen-erally the viability of relying on hydropow-er as a future source of energy is also being questioned One of the major concerns here is the overarching issue of climate change ie glaciers shrinking and yearly water runoff decreasing This means less stable water flow for hydropower and less water for other pur-poses such as agriculture water supply for down-stream countries etc

By Louise Lyngfeldt Gorm Hansen Asia Research Centre Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) ndash sinodanishcenterdk

M

Picture from SinoHydro promotion material 2011

Research

31CSQ

In contrast to for example the wind power sector in China in which many foreign com-panies have invested the hydropower sector is dominated by a few large state-owned en-terprises Our knowledge of Chinese state-owned enterprises is still limited and there-fore my PhD project is also part of a larger research project at the Asia Research Centre with focus on Chinese state-owned enter-prises and the reform of the public sector in China

In combining these interests my PhD exam-ines how Chinese state-owned enterprises in the hydropower sector tackle the demand to expand hydropower development to help reduce Chinarsquos CO2 emissions while be-ing under increasing pressure to deliver on sustainability principles in the planning and execution of large scale hydropower pro-jects The pressure comes mainly from NGO organizations the media and the scientific community both at home and from abroad I am conducting a case study focused on a specific river in south-western China which has ndash until now ndash not been fully developed for hydropower and the plans for addition-al hydropower dams on the river are still undergoing assessments The project has continually stalled due to disagreements between Chinese government officials at all levels NGOs the media the increasingly deregulated but still state-owned Chinese hydropower companies and the scientif-ic community However the project has very recently been reopened and so will go through another round of assessments in the near future The case is an excellent example of the complexity of hydropower develop-ment decisions in China but it also highlights some of the social and environmental conse-quences of the global push to decrease CO2 emissions

China plays and will continue to play an increasingly important role globally in the years to come However the country also fac-es enormous challenges - not least regarding the environment These challenges also affect economies in Western Europe - for better or worse My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective so

that we here in Europe and in Denmark can more knowledgably and actively engage with China to help solve some of these difficult challenges that eventually affect us all In do-ing this I contribute to gain a better under-standing of the Chinese perspective on envi-ronmental sustainability that can be of use to companies wanting to engage in the Chinese renewable energy sector

My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective rdquoldquo

Picture of the case-river taken by the author in 2012

32 CSQ

FROM BLUEPRINT TO PRACTICE

ENERGY EFFICIENT CONSTRUCTION

By postdoc researcher Satu Reijonen Department of Organization CBS

In the EU almost one third of CO2 emis-sions are attributed to energy used in the construction and use of buildings (FIEC

2007) It is therefore not surprising that the construction sector has recently been subjected to a substantial amount of policy measures to combat its negative effects on climate change In Denmark the state has posed new thresholds for the energy efficien-cy of new buildings including a plan for con-tinuous improvement in the area This far the industry has responded well to these stricter performance requirements In the future re-quirements will rise to levels that are not that easily achieved in the coming years build-ings will have to use 25 less energy than in year 2008 How can these ambitious goals become business as usual

One of the most discussed ways besides add-on technologies such as windmills and solar panels to enhance the energy efficiency of a building is through an energy efficient phys-ical design In practice this means reduction of energy used for heating cooling down and lighting of the building through an optimal orientation and dimensioning of the build-ing

Integrated energy design contrary to add-on technologies can be achieved on a rath-er modest additional budget This should be good news for the sector that today is eco-nomically pressed Indeed today many low energy building projects claim to use the in-tegrated energy design method (IED) when seeking to meet the most ambitious energy related goals In this commentary I wish to discuss some challenges related to the imple-mentation of this design tool

The integrated energy design method sug-gests that one of the main problems in not achieving energy efficiency is that energy related concerns become integrated into the design process too late The method consists of two elements the first of which addresses the need to bring in energy related knowl-edge throughout the design process It sug-gests that design teams ought to be multidis-ciplinary and that architects engineers and experts should work together either co-lo-cated or in a series of workshops Further-more it suggests systematizing energy quali-ty follow-ups into the design process This is all very relevant and inspiring

Oddly enough a closer look on the actual design practices reveals that few seem to ac-tually follow the method of integrated energy design to the point This poses an interest-ing question about the challenges related to the use of such management technologies as vehicles for increased energy efficiency in construction Maybe it is about time practi-tioners and researchers ask themselves what are the boundaries of and challenges related to the use of these tools ndash and what else is required for organizing for more energy effi-cient building design processes

A revolution of relations

Integrated energy design points to the need to bring energy related expertise into the de-sign process at an earlier point In order to achieve this cooperative practices between different professional groups are advocated for Historically energy experts have most-ly been used to respond to rather advanced architectural plans Shared workshops and co-localization suggest a change in these business as usual relations But are they pos-sible and what type of changes do they ac-tually imply in order to function as wished

Research

33CSQ

Satu Reijonen is postdoctoral scholar at the Department of Organization at CBS In her on-going research project she investigates how architects and energy engineers two different profes-sions cooperate and coordinate their work regarding energy related ques-tions in construction design The ways in which relations between and roles of these professions become consti-tuted through socio-material arrange-ments are a central topics in her work Besides studies of work Satu has con-ducted research on environmentally friendly products and markets

ABOUT SATU RAIJONEN

The initiation of this type of new working forms is certainly beneficial for energy effi-cient design However for several reasons they are more difficult to make work than one would assume While it may sound rea-sonable it is after all a tall order Integrating energy related practices into an environment where different visions professions and in-terests meet and the divide between what one profession does is clearly and historically demarcated is demanding While architects need to make room for the intervention of energy experts into the creative work energy experts have to become capable of working creatively and relate to and follow the visual and aesthetic cues from architects In order to work these kind of changes in the profes-sional roles and relations have to resonate with the skills and visions of individual work-ers not only management level design strat-egies It is not surprising that organizational change scholars remind us of the possibility of loose coupling from the strategies placed at the management level (March 1981) What integrated energy design suggests is a kind of a revolution in the ways in which both the architects and the energy engineers envision their role and space of mobility

Linear tools in an unlinear design process

Integrated energy design suggests that the energy performance of the emerging build-ing design be followed up at certain points during the design process The method de-picts a rather mechanistic and linear under-standing of a design process consisting of phases within which iteration may occur While energy related issues may be dis-cussed as quality goals during these phases the method places a lot of emphasis on the check ups performed in the transition from one phase to another Design processes how-ever can also be characterized in a different manner unlinear exploratory and whirl wind type of practices where clear cut phases hardly exist (Akrich 1992 Van de Ven et al 1999) This also applies to the architectural design processes where the object of the de-sign is emergent (Yaneva 2009) This entails that the product the building may change in unexpected ways during any day of the de-sign process If this alternative description of the design processes is viable delegating energy related issues to some predetermined check up episodes may strike a false accord and indeed be contradictory with the aim of enhancing coordination and cooperation between professional groups What happens in between the predetermined checkups may very well be where the energy efficiency of the building becomes configured and where the intervention from the energy experts

would come most needed Perhaps this is why the best performing projects do not blindly follow the steps of the IED method Check ups however and no doubt play a role in verifying and making visible the energy performance for partners outside the design team

Integrated energy design as many other sus-tainability standards and guidelines make visible systematize and legitimize the ex-istence of environmental management and sustainability issues in organizations and work processes In this such way tools create awareness and legitimacy for environmental and sustainability issues The integrated en-ergy design method also suggests a possible way of thinking about what type of design practice might help us to achieve the stricter energy requirements of the future It howev-er falls short in becoming the change agent it suggests This is hardly surprising as a meth-od or a standard of any kind should only be seen as a possibility or as an opening for an inquiry of what the practice could be about Reconfiguring a well established practice is hard work and it would be foolish to trust that a design method would achieve it by itself What the method does is to alert us of the more profound changes in the pro-fessional roles and relations that is needed in order to enable the change However the method due to its rather mechanical under-standing of the design process may come to work against its own ambition of integrating energy issues into the design work In its quest for integration the method defines at which points in time the architectural and the engineering project has to be checked for its energy performance This approach may lead to bringing in energy related concerns in some artificially created points in a design process which may additionally compart-mentalize energy related issues from where the design really happens

Integrated energy design as many other sustainability standards and guidelines make visible systematize and legitimize the existence of environmental management and sustainability issues in organizations and work pro-cessesrdquo

ldquoLiteratureAkrich M (1992) The De-Scription of Technical Objects in Shaping Technology Building Society Studies in Soci-otechnical Change eds WE Bijker and J Law The MIT Press Cambridge Massachusetts pp 205-224

FIEC 2007 The impacts of buildings on climate change httpwwwbuildingsplatformeuepbd_publicationdocFIEC_Memo_p2919pdf on 1222008

March JG (1981) Footnotes to Organizational Change Administrative Science Quarterly vol 26 No 4 pp 563-577

Van de Ven A D Polley R Garud and SVenkataraman (1999) The innovation Journey Oxford Oxford Univer-sity Press

Yaneva A (2009) The making of a building A pragmatist approach to Architecture Bern Peter Lang

More about integrated energy design(IED)

httpwwwintendesigncomosloIntendnsfAttachmentsGuideline_Version_2pdf$FILEGuideline_Version_2pdf

34 CSQ

The climate challenge in

shipping

ldquoGlobal shipping faces two major challenges both of which are caused by its reliance on fossil fuelsrdquo

By Reneacute Taudal Poulsen Department of Innovation amp Organizational Economics

RENEacute TAUDAL POULSEN

ASSOCIATE PROFESSOR DEPARTMENT

OF INNOVATION AND ORGANIZATIONAL

ECONOMICS COPENHAGEN BUSINESS

SCHOOL

orecasts show that the shipping indus-tryrsquos CO2 emissions will most likely continue to rise in the next two to

three decades as demand for world sea-borne trade will expand At present global shipping accounts for approximately 33 per cent of global CO2 emissions but this share will most probably increase in the coming years if many onshore industries succeed in their aims of reducing emission levels

At the same time rapidly rising fuel costs put heavy strain on shipping company budg-ets Historically and until very recently fuel costs were only a minor concern for ship-ping companies but now they often exceed 60 per cent of variable operational costs Fuel savings made through energy efficiency improvements thus represent a win-win sce-nario for the shipping industry and for so-ciety at large They simply make good sense for everyone

Despite the strong incentives for fuel sav-ings numerous studies have demonstrated that shipping fails to implement cost-ef-fective measures to reduce fuel consump-tion Fuel-saving technologies are readily available in the market and in many cases pay-back periods are very short (less than a year) Changes in operational habits which require few if any investments also hold a significant potential for fuel savings

Global shipping thus holds several classic examples of energy-efficiency gaps Gaps occur wherever cost-effective measures to improve energy efficiency fail to materialize The causes for energy efficiency gaps have been a favourite research topic within the field of energy economics for decades and economists sociologists and political scien-tists have been able to identify several means to bridge the gaps However within the mar-itime domain energy efficiency gaps and the climate challenge remain neglected issues Legal barriers

Shipsrsquo fuel consumption rises steeply with speed Hence slow-steaming or just minor speed reductions can lower consumption and emission levels significantly Since oil prices started to rise rapidly a few years ago shipping companies have indeed resorted to various slow-steaming practices and com-panies which succeed in this regard have been able to gain competitive advantages In other words actors in the industry are trying to bridge the energy efficiency gap However and in spite of the strong price signals from the rising fuel prices a potential for fuel sav-ing through slow steaming still remains

FNew CBS research project

A new three year research project at CBS under-

taken by Reneacute Taudal Poulsen for the Department

of Innovation and Organizational Economics will

examine the climate issues bringing insights from

energy economics and innovation management

into the field of shipping economics The project

which is financed by The Danish Maritime Fund

runs from 2012 to 2015 The project asks why en-

ergy efficiency gaps continue to occur in shipping

and how shipping companies and the maritime

industry at large can use innovative business

models and process innovation to turn the climate

challenge and the rising fuel costs into a business

opportunity Energy efficiency gaps occur both

in daily operations and when investments in new

vessels are made This article will briefly present

two examples of energy efficiency gaps from

the operational level and some of the preliminary

findings of the project

References

Jaffe AB and RN Stavins 1994 lsquoThe energy efficiency gap What does it meanrsquo Energy Policy 22 (110) 804-10IMO 2009 Second IMO GHG Study 2009 London International Maritime OrganizationMoriarty P amp D Honnery 2012 lsquoEnergy efficiency Lessons from transportrsquo Energy Policy 46 1ndash3Poulsen Reneacute Taudal 2012 lsquoEmissions and energy efficiency - the twin challenges for shippingrsquo Mercator Maritime Innovation Research and Education MarchJune 447-454

Reneacute Taudal Poulsen is Associate Professor at the Department of Innovation and Organizational Eco-nomics at CBS He is also affliated with the Centre for Shipping Economics and Innovation at CBS Reneacute Taudal Poulsen holds a PhD degree in marine environmental history from the University of Southern Denmark and he has worked within the field of maritime business studies for the last seven years He has published in such journals as Fisheries Research Business History and Scandinavian Economic History Review

His current research intersts concern the environmen-tal challenges faced by the global shipping industry and business model innovation in the maritime domain

Research

35CSQ

It is clear that shipping companies cannot fully bridge the energy efficiency gap alone In fact factors beyond the control of in-dividual shipping companies and various structural or legal barriers prevent shipping from fully realizing the slow steaming po-tential

Port congestion remains a world-wide prob-lem and causes ships to spend remarkably long periods inactive Despite the financial crisis and the large drop in shipping freight markets after 2008 many loaded vessels sit at anchor outside ports waiting for berths In some cases they wait for a few hours In other cases for days weeks or even months Instead of waiting the ships could have re-duced speeds and saved fuel And the de-livery and the loading of the cargo in port would not have been delayed in any way However in many cases shipping companies or ship operators cannot reduce speed in spite of port congestion

Educational barriers

Energy efficiency gaps in shipping are also evident when the fuel consumption levels of sister ships are compared Even though the vessels are identical and operate in the same waters studies have shown that their fuel consumption may differ by several Decisions made by the crews onboard and by managers in the onshore organizations clearly influence the level of fuel consump-tion For instance if a captain selects only very small course deviation margins when coding the autopilot of the ship the shiprsquos rudder will move frequently to keep the ship on the exact course all the time This will slow down the ship and cause higher fuel consumption than if the captain had allowed for slightly wider margins and the wider margins would not have any effect on the safety of the ship Decisions made by the commercial depart-ments eg on how to crew the vessels how to monitor vessel fuel consumption or which new equipment to install onboard may also

have a large impact on fuel efficiency and emission levels If shipping company man-agers can nurture a fuel saving culture this could potentially make a difference Since 2007 or 2008 shipping companies have in-deed started to facilitate such organizational changes but educational barriers remain a problemOnshore truck drivers are now offered fuel saving courses but fuel-saving is not a major part of the traditional curriculum in nautical schools or in the commercial education of shipping trainees For good reasons the nau-tical educations have focused on maritime safety but this has caused them to neglect the climate challenge in shipping and the is-sue of fuel saving In fact no single nauticaltext book on maritime fuel savings has yet been published and according to teachers and students in the nautical schools this serves as an educational barrier to ener-gy-efficiency improvements The technical level of education for commercial employees in shipping companies may also hinder im-provements in energy-efficiency Some com-

mercial shipping employees may not have sufficient training to fully see and acknowl-edge the consequences of their decisions on fuel consumption In short it seems that fuel awareness and the educational systems have responded more slowly to the climate chal-lenge than the rise in fuel prices may other-wise suggest

For shipping to bridge energy-efficiency gaps education ndash both nautical and com-mercial ones ndash clearly is an area to set in Here the potential for innovative solutions is both evident and pertinent Changing educational systems and awareness is no easy task bearing in mind the global nature of the shipping industry and international crewing of the world fleet It is clear howev-er that educational upgrading is necessary for shipping to effectively address the cli-mate challenge effectively

Charter parties between ship-operators and shippers state a specific time of arrival for the vessel and in order to avoid claims ships proceed to port accordingly regardless of berth availability Experiments with new more flexible charter parties which allow for slow steaming in case of port congestion have recently been made Shipping compa-nies have generally been enthusiastic about this flexibility but often shippers remain skeptical Lack of trust between shippers which need the loading of their cargoes as soon as possible and shipping companies may be a cause for this discrepancy Even in cases where the savings made from slow-steaming are split between shipping companies and shippers shippers have re-mained skeptical Port queuing systems may have a role to play here

Many ports including some of the major container iron ore coal and grain ports serve ships on ldquofirst-come first-servedrdquo ba-sis Ships only receive their ldquoticketrdquo in the

waiting line upon their arrival at the port Again lack of trust between the ship-oper-ators shippers and the port authorities may explain this phenomenon Moreover port authorities currently do not have incentives to change queuing practices because they cannot gain a share in the fuel savings made from slow-steaming

The problem is particularly strong in the major tramp shipping segments of tanker and dry cargo shipping where vessels act as ldquotaxis of the seardquo serving numerous shippers and rarely calling at the same ports If the fleet from a shipping company only calls at a particular port once a year and the compa-ny has very short-term relations to individ-ual shippers building trustful relationships between the parties remains a major chal-lenge Solving this problem and realizing the full potential of slow steaming will require systemic innovation in shipping and port systems and further studies are required to identify possible solutions

36 CSQ

The Wind turbine industry -

Emerging global innovation networks in Europe and China

The wind turbine industry has developed into a global network encompassing a large amount of diverse actors within innovation production and installation of wind turbines across the globe

By Stine Haakonsson and Julia Kirch Hollitsch Department of Business amp Politics CBS

market for wind energy Chinese actors have turned China as a location into another im-portant lsquohubrsquo in this network This has led to new forms of innovation collaborations between European and Chinese actors The result has been a complete re-configuration of the industry over the past decade In the International Business and Economic Geog-raphy literatures the development of global production networks in which lead-firms be-come orchestrators of dispersed production

enmark has traditionally played a key role as an lsquoinnovation hubrsquo and com-

panies in Denmark remain among the lead firms within the wind turbine industry Re-cently the industry has reorganized from being located predominantly in the Triad regions (mainly in Europe and the US) to becoming a globally dispersed industry This development can partly be explained by de-velopments in international and national politics Due to the growth of the Chinese

activities in globalized value chains is well established theoretically as well as empiri-cally In the globalization process lead firms relocate production activities to low cost lo-cations by off-shoring and through vertical disintegration and outsourcing to specialized suppliers Producers of wind turbines are no exception However until recently the mar-ket and innovation activities remained con-centrated in Europe and US

With the recent focus on global politics for a post-carbon society the market for wind tur-bines has experienced an immense growth and a high degree of market globalization New locations have developed into main markets One of these is China which since 2010 has been the largest market for wind turbines in the world (in capacity installed) The globalization process in the wind tur-bine can be explained by a combination of offshoring of production by European lead firms mainly through foreign direct invest-ment and establishment of domestic lead firms in emerging markets In 2010 there were four Chinese-owned companies among the top-10 producers of wind turbines as compared to 2003 where all firms on this list were from Europe and the US

D

Julia Kirch Hollitsch

Stine Haakonsson

Stine Haakonsson and Julia Kirch Hollitsch from Depart-

ment of Business and Politics CBS are engaged in the

Sino-Danish Center for Research and Education (SDC)

project on Wind Energy in China Both research on the

current restructuring of industries and firms at the glob-

al level (outsourcing off shoring global value chains)

In particular their research is on 1) the restructuring of

innovation and RampD activities into global innovation net-

works(GINs)2)thechangingroleofemergingmarkets

(ChinaIndiaBrazilSouthAfrica)intheseemergingGINs

and 3) technology transfer and capability building related

to renewable energy

Research

37CSQ

by adapting their products to the Chinese market and through cost-out development activities in the new locations primarily China

As a result the wind industry is today highly knowledge-intensive and internationalized Due to increased attention and investments in sustainable transition policies and car-bon-reducing technology China has over the past decade developed into a high prior-ity investment area for wind turbines Also Chinese companies are upgrading technol-ogy and innovation from the global firms through integration into GINs Moreover the production and innovation networks for wind energy become highly complex and consist of many different suppliers of com-ponents (blades gear boxes control systems bearings) resulting in a variety of network linkages among suppliers of different com-ponents and the wind turbine producers

From our empirical data including more than 40 in-depth interviews collected in 2011 and 2012 in the wind turbines indus-tries in China and Denmark we have identi-fied some very interesting patterns We have identified very different characteristics of the GINs established by the Chinese wind tur-bine industry and the European wind tur

Emerging Global Innovation Networks

Innovation processes are also moving be-yond the boundaries of individual compa-nies and national innovation systems Firms engage in cross-border innovation networks spanning different innovation systems which may be national regional or sectorial in or-der to stay competitive in the global econ-omy Chinese lead firms are entering this scene too The result is globally organized networks of interconnected and integrated functions and operations by firms and non-firm organizations engaged in the develop-ment and diffusion of innovations so-called Global Innovation Networks (GINs) Lead firms internationalize innovation through strategies of exploitation global generation of innovation and global techno-scientific collaborations Chinese wind turbine pro-ducers ndash acknowledging their resource and capability deficiency ndash pursue strategies of innovation network integration through strategies of global generation of innovation These firms link up with specialized Europe-an actors such as core component suppliers through partnerships and networks in or-der to tap into the technology of firms from developed countries and upgrade Mean-while European companies internationalize through exploitation strategies for example

bine industry Although Danish and Chinese actors are experiencing a re-organization of activities and establish networks and globa-linnovation strategies the result is very dif-ferent

The industry from Europe and US

The industry from Europe and the US hosts the lead firms in terms of core technology de-velopment Denmark has traditionally played a key role as lsquoinnovation hubrsquo in technology development and global lead firms such as Vestas and Siemens Windpower (previously Danish lsquoBonusrsquo) took its start already in the 1970s The core competences of the Danish wind turbine innovation system are based on large testing facilities and long track records mainly due to the long time-line of experi-ence The wind industry goes 40 years back and therefore Denmark has a good knowl-edge pool within establishing wind farms (aerodynamics minimizing power loss in energy transmission wind mapping and other installation-related technologies)

38 CSQ

that will make it possible to finance the pro-jects ldquoFrom then on our wind turbine pro-jects developed very fastrdquo(Interview Wind Engineer Chinese Academy of Sciences) Thus this law was a milestone for elevating renewables to a strategic position in China or as expressed by a European lead-firm ldquoWhat drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick offrdquo

Until the turn of the millennium Chinarsquos wind energy industry was largely built on donors acquisition of finished wind turbines and licensed technology from European companies spread on a very small scale into the local industry during the mid 1990s Chi-nese wind turbine technology has evolved from imitation reverse engineering and licensing in the 1980-90s combined with assistance from foreign consultants One example is how DANIDA funded a project in 1986 for Goldwind in Xinjiang which imported 13 units of 150 kW lsquoBonusrsquo (now Siemens Wind Power) turbines

To get beyond the stage of pure imitation several policies have been introduced with the intent to upgrade Chinese manufacturers to obtain indigenous innovative capabilities Policy programs were introduced to enhance Chinese companies to develop wind energy subsidizing wind energy RampD expenditures at varied levels over time establishing a re-newable energy fund and through the ldquo863 Wind Programrdquo under the Tenth Five-Year Plan (2001-2005) Local content require-ments were put in place in which develop-ers of wind energy projects were required to source 70 pct of the content in China These policies ndash which essentially forced foreign manufacturers wishing to sell wind turbines to the Chinese market to establish China-based manufacturing facilities ndash were only removed recently (in 2009) One result was that the foreign companies had to up-grade local suppliers of components

Due to the technological complexity many European (and hereby also the Danish) firms are vertically integrated and have most com-ponents produced in-house or with regular specialized suppliers According to these companies the different parts need to be well adjusted to each other to some extent even co-developed in order to enhance effi-ciency and the lifetime of the wind turbine Likewise the European industry has expe-rienced a concentration of actors with the result that there are only relatively few but large manufacturers in Europe (the larg-est ones are Vestas Siemens Gamesa and Enercon) Together these four companies accounted for about 35 of the global mar-ket in 2010 By seeing the wind turbine as an integrated system these lead firms aim at producing lsquothe Rolls Roycersquo model wind turbines These are strong in terms of qual-ity and standards but generally expensive These firms learn cost-out techniques from their engagement with partners in China

The Chinese Wind Turbine Industry

Today the Chinese wind turbine industry is overly competitive It entails more than 80 wind turbine manufacturers and the Chi-nese market boasts the highest growth rates internationally with an average growth rate of 968 percentages annually in the last three years Several large domestic Chinese wind turbine manufacturers have emerged within the last decade Sinovel and Goldwind take the largest share followed by United Pow-er and Ming Yang just to mention some of them As of the end of 2010 these four were A major driver for the development of the Chinese wind energy market has been the establishment of an institutional context as a comprehensive concerted policy frame-work addressing the development of renewa-ble energies This change in the institutional context was first reflected clearly in the 11th 5-year-plan (2006-2010) which explicitly linked environmental sustainability to the key goal of establishing what was called a harmonious socialist society signalling a socially environmentally and economically sustainable economy With the Renewable Energy Law from 2005 the Chinese wind energy industry really took off as it explicitly seeks to ensure that renewable energy pro-jects have an outlet for their output at prices

Technical barriers and the role of GINs for a post-carbon society

Despite high ambitions in terms of devel-oping innovative capabilities Chinese pro-ducers still produce almost exclusively for the Chinese market However Chinese wind turbine manufacturers have recently started an internationalisation process and some are approaching international markets Not least for tapping into new knowledge

Europe (and Denmark in particular) is per-ceived as a main location from which the Chinese companies can learn more A cou-ple of Chinese companies have already set up RampD centres in Denmark European firms have also initiated RampD centres in new lo-cations primarily China and India In other words GINs can be identified

Our research also points towards important barriers for GINs in the wind turbine in-dustry and for approaching a post-carbon global society Most importantly are the technological barriers intellectual property rights quality issues and issues of limited appropriability of knowledge Further the institutional framework remain relevant for displaying how the sector and the emerging GINs are embedded institutionally socially and technologically Whether actors trans-act knowledge technology and know-how through cooperative innovation activities also depends on how core the technology of a given technology is Still as the market grows in China it seems to have matured in Europe because of changing policies on re-newable energy To sustain the position as a global lsquohubrsquo and world leader in wind tech-nologies there is a strong need for support in Europe as this research really shows how fast the Chinese industry is moving One major result is how important networks are for upgrading companies and it seems that Chinese firms perform better in network strategies and manage to tap into relevant knowledge than the European firms

What drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick off rdquoldquoInterview Wind Engineer Chinese Academy of Sciences

39CSQ

Social Enterprise World

ForumNadine Koumlcher from 180Degrees recounts her experience from the

conference on

Rio de Janeiro Brazil 2012

In the numerous panel debates and parallel track discussion it became clear that Impact Investment is a hot topic among both social entrepreneurs and impact investors a diverse group consisting of corporations founda-tions and potential donors However various obstacles impede a harmonious relationship between the twoSocial enterprises face structural challenges to make themselves more appealing to im-pact investors They have to become more transparent and increase their accountability This includes improving their impact assess-ment and reporting tools However despite much discussion no consensus could be formed on how to optimally conduct im-pact assessment One of the most frequently proposed methodologies involves the use

From the 16th to the 18th of October the CBS Sustainability Platform granted me the opportunity to attend the 5th Social Enter-prise World Forum which took place in Rio de Janeiro Brazil This yearly international conference focuses on social enterprises and their effectiveness in solving social challeng-es The overall theme of the 2012 conference hosted by NESsT was ldquoSocial Enterprise Investing for Impactrdquo Thus for three days over 180 speakers and 650 delegates from 30 different countries shared their experiences regarding impact investment and discussed possibilities to attract new investment by both the public and the private sector for so-cial enterprises

of control groups Story-telling has also been men-tioned to be a powerful tool to provide investors with a proof of outcomesSocial investors are willing to accept returns just below the market rate in exchange for a social return However large profits are still expect-ed and many social enter-prises are afraid of being unable to generate them Social enterprises typically operate on a small scale and are not used to undertake large projects with huge sums of investment given to them Many are too small for social investors to be

attractive as costs are similar for small and large investments although larger invest-ments have a higher payoff

Nichole Echert the CEO of NESsT there-fore pointed out that it is necessary to align expectations between impact investors and social entrepreneurs and to be patient in establishing a relationship between the two groups The expected financial return has to be reasonable close to covering the costs of operation and social returns have to be re-ported to investors by use of clearer criteria

By Nadine Koumlcher Director of Branch Development180 Degrees Consulting Limited

ldquoSocial Enterprise Investing for Impactrdquo

Students

40 CSQ

A highlight of the con-ference was definitely the site visit to a social enterprise project in a recently pacified fave-la It brought further insights on the great variety of social enter-prises that exist in Bra-zil and their missions and struggles We visit-ed a community center at which Comitecirc para

Democratizaccedilao da Informaacutetica (CDI) uses technology to fight poverty and to stimulate entrepreneurship CDI has formed a corpo-rate partnership with Coca Cola which in the same building teaches young locals how to write a CV and find a job Talking to the young locals at the center it became apparent that an increased self-confidence and the in-spiration they get from meeting former now employed participants of the project (eg at Coca Cola) is what they valued most of being part of the class

Participating at the conference was definite-ly a unique and valuable experience I would not want to miss as I tremendously improved my knowledge in the field of social enter-prises through attending the numerous pres-entations and discussions and further met so many inspiring social entrepreneurs impact

In addition it has been stressed that the problem is not a shortage of investment capital (even though the government could promote more impact investment by for instance granting tax breaks) but how to deploy it Social entrepreneurs also have to be aware of the different advantages and dis-advantages of the various types of capital It has to fit their process of establishment and it has therefore been suggested that funds and grants are most optimal in the start-up phase to cover such costs as capacity train-ing There is generally a lack of this early stage financial support Following the initial phase strategic philanthropy money would be most appropriate before impact and final-ly equity investment is sought Furthermore new ways of investment which fit the social enterprise world have to be created replac-ing the current situation of trying to fit social enterprises into the current financial world

investors and students with a genuine inter-est in the field

Participating at the conference was definitely a unique and valuable experience rdquo

ldquo

Social Enterprise World Forum 2013 in

Calgary Canada

The TRICO Charitable Foundation in part-nership with the Social Enterprise Council of Canada and the Social Finance Forum has been selected to host the 6th Annual Social Enterprise World Forum SEWF 2013 will take place October 2-4 2013 in Calgary Al-berta The Forum will present the Canadian social enterprise movement with opportuni-ties to engage learn and share on the inter-national stage

SEWF 2013 will be a gathering of over 1000 Canadian and international delegates who are involved in the social enterprise move-ment where the blending of social and fi-nancial values is core to business Attendees will consist of practitioners (from all sec-tors) funders investors supporters elected officials and public servants from around the world

Nadine Koumlcher

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 10: CBS Sustainability Quarterly 2013 #1

10 CSQ

Writing a good business case

from a Hollywood perspective

Jenny Mead (left) picture from readthehookcom

On November 28 2012 Kirsti Reitan Andersen temporary project manager at CBS Sustainability Platform interviewed Senior Research-er Jenny Mead Darden School of Business University of Virginia in extension of her visit to CBS Jenny Mead was here to host a workshop and one-on-one sessions on how to write good business cases with a focus on sustain-ability

Interview with Jenny Mead Senior Researcher Darden School of

Business

Could you tell a little bit about yourself

ldquoI have been at Darden School of Business for the past 10 years I write cases about business ethics sustainability strategy and leadership I am not a business person at all but call my-self a writer because that is what I prefer I write stories I have worked in the film busi-ness in Hollywood where I worked as a De-velopment Executive It means that I looked for projects that could be made into movies Again I am not a business person at allIn the 1920s Harvard University started case-based teaching Darden followed through on the case tradition in 1950s Darden has con-tinued to focus on business ethics as key in educating students From the 1950s onwards

in the first year of undergraduate studies we have had a mandatory business ethics course This tactic has developed a large student body which is constantly aware of business ethics as an integrated part of business life The business ethics cases I write have an ele-ment of ethical ambiguity and decision-mak-ing that contains ethical considerationsrdquo You are visiting CBS to host a case-writing workshop and one-on-one sessions with as-piring case-writers What have the partici-pants gained from the workshop

ldquoThey get a primer of what a business case looks like They learn what a case looks like and are given an exercise where they have to

craft a case and have colleagues critique that The second day concerns teaching notes If a professor from another business school wants to teach it they can get the teaching notes that suggest how to teach the casesrdquo

What is a good case and why are cases ben-eficial for teaching

ldquoInstead of using textbooks in classes teach-ers can make use of business cases Generally a case should present a dilemma that has to be solved or a business decision that has to be made by the protagonist in the caseBusiness cases are a good way of placing the student in the shoes of a manager or decision maker Giving him or her the practical expe-

CSQ Interview

11CSQ

Writing a good business case

from a Hollywood perspective

Jenny Mead and Jonas Hedman from Department of IT Management at Copenhagen Busimess School

From the workshop at Copenhagen Business School

riences in a safe environment ndash no company is going bankrupt based on the decisions It is almost real world training but you are not in the real world A feature of case teaching at Darden School of Business is the use of small video clips of the protagonist in the business case Instead of students just reading about the protago-nist in the case the protagonist presents the problem or issue on video to create a lively teaching environmentrdquo

Do businesses actually think about ethicsThat is a good question and I believe there is

a growing awareness I am very impressed by Darden and the students Maybe it is because of the mandatory first year ethics course but the students are very concerned with CSR sustainability and values

I am currently working on a series of cases on conscious capitalism More and more businesses are adopting true values A shift has been made towards conscious capitalism The idea of conscious capitalism is that busi-nesses realize the value of good treatment to all stakeholders Businesses exist to create value for everybody

Relevant links

Darden Case Studies

The Olsson Center for

Applied Ethics (Jennyrsquos

employer)

The Business Roundtable

Institute for Corporate

Ethics

httpwwwcorporate-ethics

orgpublicationscase-studies

httpwwwdardenvirginia

eduwebOlsson-Center-for-

Applied-Ethics

httpwwwcorporate-ethics

org

12 CSQ

SUSTAINABILITY AND

DEVELOPMENT COOOPERATIONInterview with Minister for Development Cooperation

Christian Friis Bach

Did you know that 7 out of 10 of the fast growing economies can be found in Africa Or that DANIDA funds a programme in which CBS and other Danish universities work together with universities in Tanzania Ghana and other countries to increase the quality of research and uni-versity-level education in devel-oping countries

CSQ - Elisabeth Crone Linding amp Stefano Ponte sat down with the Dan-ish Minister for Development Co-operation Christian Friis Bach to hear about how the developing world is moving ahead fast ndash and why Denmark needs to keep up in order to stay relevant

I t is not every day that we meet with min-isters on the top floor of Asiatisk Plads

ndash the official home of the Danish Ministry of Foreign Affairs and DANIDA the inter-national development cooperation branch of the Ministry Nevertheless here we are over-looking the busy waters of the Copenhagen canal and looking forward to a long-planned rendezvous with Christian Friis Bach Min-ister of Development Cooperation since the autumn of 2011

Besides spending time in the academic ranks of Copenhagen University and the political spheres of the European Commission the Minister knows a thing or two about the de-veloping world he has previously devoted his

time to positions in DanChurchAid WWF World Wide Fund for Nature MSActionAid and the Danish Ethical Trading Initiative

In its current strategy DANIDA has put a new focus on green growth renewable en-ergy sustainable agriculture and innovative solutions to enable continued access to scarce resources ndash a quite green agenda in fact But how does this resonate in a developing world that is growing very fast According to the Minister perceptions are changing with more democratic political environments be-ing built

ldquoMore and more developing countries see green growth and sustainability not as stum-

bling stones but as building blocks of a fu-ture strong economy They recognize that in a world of natural resource scarcity and increas-ing prices on for example energy they need to adopt a different growth pattern More and more poor countries are buying into this And therefore we now have a unique opportunity for shaping the political framework and ena-bling environment to create more sustainable developmentrdquo

So how does a business school such as CBS fit into this equation What can we offer

This is a key question for us to ask As the Sustainability Platform was born out of the CBS Business in Society strategy we are in-

CSQ Interview

13CSQ

terested in looking for ways to address grand societal challenges such as ensuring sustain-able development

Christian Friis Bach recognizes that CBS as a research and educational institution has a role to play here ndash maybe even a bigger role than we play now Because even though CBS is known and regarded as a very internation-ally oriented university the Minister encour-ages CBS to go even further in sharpening its global commitment and profile

ldquoMany of the problems that we have related to growth and employment in Europe are not to be found in developed countries I hope that CBS continues to engage internationally in order to shape graduates to tackle global chal-lenges For example 7 out of 10 of the worldrsquos fastest growing economies are in Africa and here I would really urge CBS to have an even stronger engagementrdquo

CBS is involved in the Building Stronger Universities in Developing Countries Pro-gramme (BSU) which is a partnership be-tween research and higher education institu-tions in selected developing countries and all the main Danish universities The long-term goal of the initiative is to make the partici-pating institutions stronger by conducting joint research projects that offer knowledge and solutions to localdomestic and global challenges to produce better graduate pro-grams and for universities to play an increas-ing role in the economic social and political development of their own countries How-ever Christian Friis Bach also encouraged close dialogue with a broader set of partner universities in the developing world as an important way for CBS to shape its research and educational efforts and thus remain rele-vant in the future

Christian Friis Bach highlighted

ldquoIt is a big world And the world moves fast And I think the challenges upon our edu-cational system in Denmark are increasing every day When I go to South Korea China Latin America or Africa I see that they look increasingly towards each other for innovative solutions not towards Europe If we need to remain relevant we do have a challenge hererdquo

For example this means looking at the econ-omies in the world that are the most innova-tive These are in many cases in the develop-ing world so this is when CBS should invest when it comes to partnering in research educational development and knowledge exchange for example among faculty and students

The Minister also notes the advantages that can be gained from globalizing our institu-tions much more broadly and working across borders and academic fields for example on

The Building Stronger Universities in Developing Countries initiative amp CBS

ldquoBuilding Stronger Universities in Developing Countriesrdquo is a partnership between research and higher education institutions in developing coun-

tries and Danish universities The long-term goal of the initiative is to make the participating institutions stronger in the sense that they

bull playanincreasingroleintheeconomicsocialandpoliticaldevelopmentofthesocietiesinwhichtheyarelocated

bull functionasnodesofinnovationandknowledgeproductionprovidingsolutionstolocaldomesticandglobalchallenges

bull produceskilledandmotivatedgraduatesthatcancontributetothefurtherdevelopmentofthesocietiesandaddressthechallenges

faced

The ldquoBuilding Stronger Universitiesrdquo initiative has a structure with four thematic platforms Copenhagen Business School contributes to one of

the four platforms under the initiative the Growth and Employment platform which is a partnership between University of Ghana (UG) Kwame

Nkrumah University of Science and Technology Ghana (KNUST) University of Dar es Salaam Tanzania (UDSM) Sokoine University of Agriculture

Tanzania (SUA) and the major Danish universities From CBS Associate Professors Soslashren Jeppesen and Michael Wendelboe Hansen the CBS

Center for Business and Development Studies is part of the project which for example seeks to develop relevant PhD programmes strengthen

growth and employment relevant research activities and research collaboration and disseminate research findings to stakeholders

wwwbsuudorg

Students Sierra Leone (picture from umdk) Photo Joslashrgen Schytte

When I go to South Korea China Latin America or Africa I see that they look increasingly towards each other for innovative solutions not towards Europerdquo

ldquo

14 CSQ

health technology and business develop-ment in cooperation with developing coun-try researchers And we need to be good at a lot more than ldquojustrdquo development coopera-tion ldquoif we want to remain relevant for exam-ple in Africa on sustainable business we can-not afford to send people out who have worked isolated in the development community here in Denmark So instead of seeing development research as a separate discipline it needs to be integrated into everything we dordquo

That is why the Minister argues for more fo-cus on educating graduates that are experts and specialists but not necessarily within development cooperation Instead he says Denmark needs graduates that can develop the best possible solutions for the developing world within energy technology etc ldquoThe fast-growing economies in China Southeast Asia Latin America Africa do not need spe-cial things made for developing markets they need top innovative solutions and high-quality products and we need to be able to offer that to them if we want to remain relevantrdquo

One of the solutions worth repeating is that of partnerships According to the Minister universities need to remember that partner-ships with other research institutions as well as with private companies and organizations can provide greater insight

ldquoYou need not only public-private partner-ships but large-scale multiple partnership Still universities can sometimes behave as isolated entities Of course universities need to focus on the core business of researching and educating students but they will also in-creasingly be challenged to engage in these in-ternational and multiple partnerships This is where you will find some of the most inspiring

About Christian Friis Bach

Born 1966 in Frederiksberg Denmark Married three children Lives on a hobby farm near Ganloslashse

Present officeMinister for Development Cooperation 3 October 2011 ndash

Education1992-1996 PhD International Economics Royal Danish Agricultural University Copenhagen 1986-1992 MSc Agronomy Royal Danish Agricultural University Copen-hagen

Work Experience2010-2011 Special Advisor for EU Commissioner Connie Hedegaard (UN Global Sustainability Panel) 2010-2011 CEO ViewWorld ApS 2009 Affiliated Professor in International Economics and Development at the University of Copenhagen 2005-2010 International Director DanChurchAid 2002 Journalist at the Danish Broadcasting Corporation (DR) 1999-2005 Associate Professor International EconomicsDevelopment Economics Royal Danish Agricultural University (University of Copenha-gen)

Other engagements2010-2011 Member of the Board of the Danish United Nations Associa-tion 2008-2010 Initiator and Board Member of the Danish Initiative for Ethical Trade 2008-2009 Member of the Danish Africa Commission 2007-2011 Member of the Presidium for WWF World Wide Fund for Nature Denmark 2000-2006 Board Member International Institute for Sustainable Develop-ment 1997-2001 Chairman Mellemfolkeligt Samvirke (Danish Association for International Cooperation)

Christian Friis Bach has published a large number of books reports and ar-ticles in newspapers and magazines Please see wwwfriisbachdk for details

15CSQ

In December 180 Degrees Consulting (180DC) finished its third round of pro-bono social impact consulting projects with even more success than in previous semes-ters All consultants showed dedication and motivation by spending a large amount of their spare time to work with socially con-scious organizations in order to help them to improve their social impact

An overcrowded lecture room during the 180DC information meeting at the begin-ning of the semester and the high number of applications to join the consulting projects were evidence of great interest in 180DCrsquos activities Out of the 139 applicants the top 45 were selected in a two-step recruitment process and grouped into teams of five to work on the nine exciting projects lined up in the Fall 2012 semester

All projects involved Danish-based organi-zations with a strong focus on either social andor environmental sustainability The projects however differed vastly One of the consulting teams assisted Engineers Without Borders and Action Aid in developing an investment rationale for the cultivation of farmland belonging to an Indian orphanage as well as assessing the social return of this investment

Another 180DC team worked with Hertha an organization focused on the reverse in-tegration of ordinary people into a commu-nity of mentally challenged Hertha needed assistance with improving their external reporting setup to stakeholders which was achieved by developing useful tools for the organization to measure both the social and cultural impact of their activities Yet another team of consultants helped the International Rehabilitation Council for Torture Victims optimizing their internal processes and thus helping them pursue their vision of a world without torture

During the consulting period 180DC or-ganized several training sessions for the con-sultants of the organization hosted by pro-fessional consultancies and each team was assigned a mentor with expertise specific to the given project The highlight of the semes-ter was the Final Event at which all of the teams presented their projects in front of a large audience comprised of all 180DC con-sultants the 180DC board members as well as mentors clients and a jury consisting of representatives from PwC DI CBS Sustain-ability Platform BCG and VSFA The juryacutes task was to evaluate the consulting projects based on their written report and oral pres-entation Based on the creativity feasibili-ty and impact potential of the projects the chairwoman of the Jury Birgitte Mogensen PwC announced the winner of the 180DC Social Impact Award Team Engineers With-out Borders

All of the 180DC board members have throughout the semester been working hard to constantly improve the organization in or-der to ensure a high quality of the services provided to clients and of the learning ex-perience provided to students With a new extended board in place 180DC is looking forward to continue its successful journey in the upcoming semester which kicked-off in January with two international projects in Chile and Sierra Leone ndash thanks to the sup-port of the CBS Sustainability Platform

by Nadine Koumlcher

UPDATE FROM 180DEGREES180 Degrees Consulting is an international student consultancy that works with growing non-profits helping them achieve a greater social impact

Contactphone no +45 6061 6399e-mail cph180degreesconsultingorg

Updates from partner organizations at CBS

16 CSQ

The past semester was a good one for 360deg Students for Sustainability Not only did our organization grow to nearly 50 members this fall but we were also nominated in the Student category for the CSR Awards 2012 ndash the second year in a row You can watch the nomination video here httpwwwyoutubecomwatchfeature=player_embed-dedampv=6J5mwn7TcYI Although we didnrsquot win the award representatives from 360deg got the chance to participate in the conferencersquos many seminars ndash and not least hear Bill Clin-ton speak360deg also took it to another level with 360deg Academy The project was a huge success with over 250 people signed up for the ex-tracurricular course It shows that there is a clear interest in CSR and sustainability among the students and that 360deg Students

for Sustainability fill an important gap in providing the students with a forum where they can discuss such issues with each oth-er professors and practitioners We have al-ready started planning Academy 2013 which will run in the fall In addition to 360deg Academy 360deg organ-ised several successful events and seminars the past semester 360deg Develop Prize was kick-started in November and has already found some dedicated social entrepreneurs who will join the coming events this spring as well as the final competition 360deg also co-organized events on microfinance (with Danish Forum for Microfinance) and fair-trade (with Fairtrade Maeligrket) We also created a nice Christmas spirit at the CBS campus with our annual Christmas event featuring cookies a fairtrade Christmas tree

and do nations to Red Cross and Verdens SkoveWhile it is important to look back this semester 360deg is focusing on the future By the end of the semester 360deg Students for Sustainability will have changed its name to oikos Copenhagen After becoming part of the international student network oikos in 2011 we believe that changing our name will emphasize our international commitment and will show the students the many oppor-tunities that are available to them through the oikos network You can read more about oikos International and the other 36 chapters around the world by visiting wwwoikos-in-ternationalorg

Christina EkChairwoman of 360deg and soon-to-be President of oikos Copenhagen

UPDATE FROM 360 STUDENTS

360deg Students for Sustainability

360deg Students for Sustainability is a non-profit student organization based at CBS working to enable and inspire students to make responsible and sus-tainable decisions in their future lives and professional careers

Contact Christina Ek tlf 42 39 99 54 mail info360studentsdk

Live show at CSR Awards 2012

(Picture from csrfondendk)

Updates from partner organizations at CBS

17CSQ

UPDATE FROM PRME

New approach by the Curriculum Development

projectThe commitment to the initiative of the UN Principles for Responsible Management Education (PRME) at CBS has been further sustained via a more targeted approach to the development of the curriculum at the undergraduate programmesAs part of the adherence to PRME CBS has launched a Curriculum Development project to integrate responsible management prac-tices into the study programmes and also make these practices more explicit This is an extensive process that recently has been even more focused on the individual content of each of the study programmes A more cus-tomised approach will only strengthen the analyses of syllabi for each core course and increase the content of explicit responsible management

ldquoThe current restructuring of the Service Management bachelor programme and the development of three specialised lines of ed-ucation offer a great opportunity to align the curriculum development with the Principles for Responsible Management adopted by CBS Currently the CBS Office for Respon-sible Management Education and faculty members from CBS are working to identify opportunities to integrate responsible man-agement education into the educational programmerdquo Assistant Professor Adriana

Budeanu BSc in Business Administration and Service Management CBS In collabo-ration with study boards students and fac-ulties the Curriculum Development project enables a targeted approach to the integra-tion of responsible management content in order to comply with the overall structure of each study programme

Anti-piracy strategy from Maersk was a winning strategy

In collaboration with the CBS Sustainabili-ty Platform the CBS Office for Responsible Management Education arranged an internal competition to identify the best team of stu-dents to represent CBS at the International Business Ethics Case Competition (IBECC) in San Diego later this year The students had to select a business case entailing a challenge with legal financial and ethical aspects and propose a solution to this challenge A jury found the winning team based on a live presentation followed by a QampA session that took place in November 2012

The winners of this unique opportunity were the graduate students Bjoslashrg Ilsoslash Klinkby (MSc IBP) Adam Eithz Kromann (MSc BAP) and Anne Cathrine Gaarde (MSc IBP) They presented a business case on the anti-piracy strategy of Maersk

Winners of the Business Ethics Case Competition

Updates from partner organizations at CBS

18 CSQ

THESIS PARTNERSHIP BETWEEN GRADUATE

STUDENTS AND COMPANIES MATCH-MAKING

On behalf of CBS the Office for Responsible Management Education invited companies and organi-sations to participate in a match-making event with graduate students who were looking to write their thesis within the field of sustainability or social responsibility

Prior to the event that took place on the 6th of February ambitious graduate students were matched with eight very diverse organ-isations all wanting to explore challenge and develop CSR related activities The selection of organisations ranged from Center for So-cialt Ansvar who sought the studentsrsquo advice on how to revitalise their social concepts in corporation with the civic public and pri-vate sector to Wonderful Copenhagen that engaged the students in their aspirations of

retaining Copenhagen as a leading ldquogreenrdquo conference destination This diversity mere-ly reflected the broad-based educational standards that are embodied in the conducts of CBS and enabled students from all study areas to participate With the meeting as the focal point of the event the aim was to in-troduce more students and companies to the possibilities of a thesis partnership On that basis it is the hope that students and organisations will take the initial meeting

further into a collaboration resulting in a thesis that with an analytical and reflected approach hopefully provides valuable insight for all parties The event was indeed a unique opportunity for the students to get the or-ganisationsrsquo unremitting attention but also the organisations expressed their excitement about how the theoretical knowledge and skills of the students could be combined with the specific issues reaching beyond everyday operations of the organisation

PRME

Lene Mette SoslashrensenTel +45 3815 2651E-mail lmsiklcbsdk

PRME Manager

Johanne Duelund Kramer from Wonderful Copenhagen and CBS student Joseacute Bandeirinha from International Marketing and Management

Updates from partner organizations at CBS

19CSQ

A value adding partnership

The match-making event was kick-started by Professor Andreas Rasche who gave a short speech on trends in the field of sustainability and social responsibility Likewise thesis con-sultant Vibeke Ankersborg rounded off the event by guiding both students and organisa-tion representatives in the right direction of obtaining a value adding thesis partnership

By facilitating integration of the theoretical knowledge pool at CBS with real-life busi-ness cases and their challenges this initiative underpins CBSrsquos Responsible Management Education profile ldquoAddressing societal chal-lenges in interaction with business is a key element in our Business in Society strategy and we hope to set up a similar initiative in the futurerdquo Lene Mette Soslashrensen PRME Manager CBS

Being able to engage in a thesis partnership gives us the opportunity to get new and fresh eyes on the challenges and opportunities we face in the aspiration of sus-taining Copenhagenrsquos position as marked leader within sustainable meetings and events ndash and the other way around we see it as a positive contribution to help young students to gain in-depth knowledge on how we actually work with sustainability in practicerdquo

Ulrika Maringrtensson senior communication consultant Wonderful Copenhagen

ldquo

Case Companies

20 CSQ

Update from CBS Centre for Corporate Social Responsibility

cbsCSR celebration10 years anniversaryOn Thursday November 22 2012 CBS Centre for Corporate Social Responsibility (cbsCSR) celebrated its 10 years anniversary The guest list included prominent guests from both academia and the corporate world Head of Department Dorte Salskov-Iversen President Per Holten-Andersen and cbsCSR Director Esben Rahbek Pedersen bid all a warm welcome to an afternoon of inspirational talks and celebration of the Centre

Susanne Stormer followed and initiated her presentation with a brief recap of Novo Nor-diskrsquos history and continuous development of corporate sustainability practices She em-phasized how Novo Nordisk with the help of Professor Ed Freeman has prioritized a close relationship with their stakeholders and learning with them as a means to reach a higher level of corporate sustainability An additional key take-away from Susanne Stormer was the notion of transformational partnerships She argued that corporations NGOs and other stakeholders should use each other to form transformational partner-ships instead of just transactional partner-ships She claimed that in order to address and solve the problems in todayrsquos world the issues have to be addressed at the roots ndash in cooperation with stakeholders

The program had been divided into two ses-sions Each session ended with a panel dis-cussion that gave the audience the opportu-nity to track the developmental trajectory of CSR and participate in the discussion of the future direction of CSR

In the first session which focused on the history of CSR Professor Lucia Reisch from Department of Intercultural Communica-tion and Management CBS Susanne Storm-er VP of Corporate Sustainability at Novo Nordisk and Professor Gail Whiteman from Rotterdam School of Management present-ed their perspectives on the development of CSR up until nowProfessor Lucia Reisch set the stage with an enlightening introduction to the history of sustainable development and emphasized balance on the triple bottom line as key

Professor Gail Whitemanrsquos presentation highlighted both the past and the future of CSR Her main topic was how to deal with planetary boundaries She drew attention to inherent implications of teaching sustaina-bility and CSR at a business school and ar-gued that in order for students and business executives to understand the implications of planetary boundaries and their importance classes should be taught in nature

In the second session Annette Stube Head of Group Sustainability in AP Moller ndash Maersk Simon Pickard Director General at ABIS and Professor Andreas Rasche from cbsCSR presented their views on the future of CSR

Updates from partner organizations at CBS

21CSQ

The topics in the second panel debate evolved around some of the same issues as in the first panel debate The audience was very interested in the educational aspect of CSR and sustainability and a discussion fol-lowed concerning the issues of lsquopreaching to the convertedrsquo Research shows that 75 of CSR courses are not mandatory 1 thus those students and executives who have a natural interest in CSR and sustainability enroll for these courses The speakers agreed that this posed a challenge for the future and that business schools might have to re-invent themselves in this regard They stressed that it is crucial that CSR and sustainability courses become mandatory Also the prac-titioners advocated in-company learning They set forth the argument that it may be a long time before current students will have sufficient impact on the corporate sector but also because the corporate sector and the ac-ademic world can learn from one another

Sum-up of key perspectives for the future

So how has lsquothe business of business really changedrsquo and in what direction From the afternoonrsquos discussions there were two recur-ring topics Susanne Stormer briefly touched upon it when she talked about transforma-tional partnerships Annette Stube and AP

Annette Stube set forth the argument that ldquothe business of business has really changedrdquo She gave an example of how AP Moller ndash Maersk should use their position in the shipping industry to facilitate substantial changes Simon Pickard supported her argu

ment stating that it is not possible for single corporations to make a difference but that clusters of corporations have to collaborate to push changes If corporations do not join forces they risk only making incremental changes Simon Pickard further argued paraphrasing Andrew Pettigrewrsquos argument that in the course of time there has been a conceptual change in the argument for CSR He pointed to the fact that it started out as a moral or philanthropic enterprise and is now perceived as a governance case Simon Pickard pointed to the fact that the future of business is to create shared value ie creat-ing economic value that also creates value for society at large Building on these re-marks Andreas Rasche discussed the future of standards and codes in the field of CSR Emphasizing a variety of case examples he argued that while standards have proliferated in recent years eg certification schemes in the global coffee and apparel industries there is a need to more actively manage the co-ex-istence of these initiatives in order to avoid overlap Rasche also highlighted the pivotal role of consumers who need to acknowledge standards and labels as market signals and factor social and environmental concerns into purchasing decisions

Moller ndash Maersk has it as an integrated and crucial part of their CSR policies and Simon Pickard highlighted how instrumental the-ories are no longer enough The concept of shared value is inescapable and it is what the lsquobusiness of businessrsquo in the early 21st centu-ry is really about

A second topic which also attracted a lot of attention was the importance of continuous education of both lsquothe convertedrsquo but also of opponents of CSR and people who are not aware of the importance of CSR and sustain-ability In-company learning was depicted as a crucial part of the development of CSR and sustainability however a physical change in the teaching settings is also required to meet the approaching environmental challenges

Centre Director Esben Rahbek Pedersen concluded the conference and the winners of the prize of 25000 DKK to participate in the IBECC case competition in San Diego in May 2013 were announced and the celebra-tion of cbsCSR ended with a reception

Thank you to all the speakers moderators and guests for an inspirational afternoon

By Elise Lind Jacobsen and Line Pedini Rasmussen cbsCSR

1Rasche A Gilbert DU and Schedel I (2013) Cross-Disciplinary Ethics Education in MBA Programs Rhetoric or Reality Academy of Management Learning and Education (forthcoming)

Three of the keynote speakers (from left) Professor Gail Whiteman from Rotterdam School of Management VP of Corporate Sustainability at Novo Nordisk Susanne Stormer and Sustaina-bility Professor at CBS Lucia Reisch

Simon Pickard Director General at ABIS

22 CSQ

UPDATE FROM

CBS GOES GREENThe Green Associate Program

2012 was an exciting year for CBS Goes Green with many great achievements One of the new initiatives that was launched in 2012 was the Green Associate Program Here CBS students were able to volunteer in a program to support sustainable behavior among students and staff at CBS More precisely 25 CBS stu-dents put in 30 hours of voluntary work to help with the planning and execution of Green Week - a week consisting of a lineup of successful companies shar-ing their sustainable initiatives and thoughts The overwhelming interest in sustainability and sustain-able business among the students has made it evi-dent that the Green Associate Program should con-tinue in 2013 We at CBS Goes Green look forward to this as well as all of the other initiatives we will be conducting in 2013

The following is an extract of an article that three of the associates wrote themselves This extract shows the associatesrsquo own experience working with CBS Goes Green

What does it mean to be an

associate with CBS Goes Green

In Week 39 CBS turned into a plethora of green initia-tives and events in order to make CBS reach its sustaina-bility goals for 2020 Both students and employees at CBS were asked to become a Green Ambassador to help CBS be smarter greener and better

But many of you may wonder how it is to be one of the people behind the scene As associates we have been help-ing out before and during Green Week in order to establish an event that would reach all corners of CBS This has re-quired both time and effort in order to make things work out but in the end there are also a lot of gains from being an associate

Firstly as an associate you get to expand your network You get to work with people from different studies countries and ages and you also get to talk to many different people while promoting

A bonus about being an associate is also that you get an official certificate which can be attached to your resume This shows that you have put an effort into making Green Week happen

Furthermore by being an associate you feel like you have a larger impact on making CBS a greener place Instead of being an ambassador and only doing the things you can do you get to be the person who raises awareness about sustainability You may influence people to make the right choices and it makes you feel good

Lastly it also gives you a feeling of responsibility because you work under an official part of CBS CBS Goes Green ndash a unit with a clear agenda and a clear vision

By Michael Nguyen Christian Charity and Christian-Philip Lundahl

Updates from partner organizations at CBS

23CSQ

International conference on sustainable biofuels presents latest research

By Barbara Louise Bech Department of Business and Politics CBS

EU Renewable Energy Directive

In 2009 the EU RED set a mandatory target for member states to use a minimum of 10 renewable energy sources in the transport sector by 2020 of which biofuels is expected to be the main contributor This is part of a policy to cut greenhouse gas emissions promote the green technology sector develop rural areas and reduce dependency on fos-sil fuels Due to increasing controversies claiming lack of sustainability in first generation biofuels based on food crops recently the EU pro-posed an amendment to the Directive limiting the share of first gener-ation biofuels to 5 of the targeted 10

The debate quickly zoomed in on the sustainability criteria as outlined in the EU RED drawing attention to the lack of social safeguards The general consensus is that the concept of sustainability is too narrow-ly defined Several case studies (Mozambique Brazil and Indonesia) show that basic labor and human rights of local populations are not protected by RED and the directive is more viewed as an environmen-tal safeguard This discussion raised questions in regard to the effects of RED globally (eg sustainable production in developing countries) and in this context whether EU legislation can have a lsquotrickle downrsquo effect on national standards of nation-states outside the EU In this re-gards one could ask if enforcement at the local level falls under the re-sponsibility of the EU but since first generation biofuels are produced outside the EU it is an important issue for European consumers ndash al-though interest is currently mainly driven by NGOs

On November 19-20 2012 the Copenhagen Biofuels Research Network (COBREN) held an international conference on sustainable biofuels inviting 30 research-ers from around the world to present and discuss their latest research During the two day conference focus was the sustainability criteria of the EU Renewable Energy Directive (RED) voluntary certification schemes and their impacts on sustainability and social safeguards in producer (developing) countries in particular and governance complexity of the biofuel system which has grown considerably over the past decade

Rough guide to biofuelsThere are two types of biofuels biodiesel and ethanol First generation biofuels (1G) are based on food crops and feed stocks such as palm oil soybean and rapeseed used for the production of biodiesel and sugarcane and corn for ethanol The produc-tion of biofuels increased heavily in the 2000s questioning the sustainability of 1G A number of issues have been claimed as key impediments to sustainable biofuel production such as deforestation competition with food production and increasing food prices loss of biodiversity lack of social and environmental safeguards and indirect land use change (ILUC) These contro-versies have led to a call for the promotion of second generation biofuels (2G) which are typically based on agricultural waste (eg straw) plants and forestry residues (also called lignocellu-losic biomassmaterials) However the immediate problem is that there is yet to be developed a market for 2G as they are more costly to produce (require longer and more complex production process)

CBS Sustainability Platform co-director and organizer of the COBREN conference Stefano Ponte doing a presentation

Event

24 CSQ

Voluntary certification schemes

In relation to how standards and certifications can impact sustainable biofuel production discussions pointed to the important difference be-tween mandatory and voluntary schemes As the controversy of sus-tainable biofuels in particular first generation is rolling out special attention has been given to biofuel production competing with food production ILUC value of emissions reduction and environmental and social issues This have off sprung a proliferation in private certifi-cations and during the conference it was discussed intensely whether these schemes have an actual effect on sustainability Depending on the point of view certifications can fill out the holes in legislation and act as a tool to force companies to comply with sustainability crite-ria However the development processes of new certifications may not be inclusive of relevant stakeholders (eg representatives of local populations) Additionally the nature and governance of the networks steering these processes is not always transparent and may favor one interest over the other This intense discussion led to the question of the purpose of certifications Can we use them for anything other than as a CSR PR tool as long as consumer awareness is as low as it is and how do the different regional drivers influence sustainability as a concept The answers to these questions are not easily found and it will be interesting to observe the future development and partnership between public and private sector

Governing the biofuel industry

Within the past decade biodiesel production has risen from below 30PJ in 2000 to 572PJ in 2009 globally and fuel ethanol production has increased from 340PJ to 1540 PJ respectively As the market expands more actors eg governments international organizations civil soci-ety and NGOs private sector networks and companies and profes-sions (biofuel experts and consultants) get involved and play different roles to promote their own agendas Being an emerging industry the structure of the biofuel system shows hybrid forms of governance with many actors As controversies of biofuelsrsquo sustainability develop more issues are added to the agenda giving life to more actors and interests in the governance structure Research shows a shift in power balance as private companies and NGOs increasingly push the agenda The dis-cussions during the conference centered on the complexity of sustain-ability issues calling for mixed governance responses and governance instruments such as standards and certifications which in return need to be followed up with endorsement instruments Given these com-plexities the question is whether the biofuel industry is too difficult to govern as long as the governing systems (for instance the EU) cannot accommodate expectations of all stakeholders

Indirect land use change (ILUC)ILUC is the unintended consequence in terms of more carbon emis-sions due to land use change around the world induced by the expan-sion of croplands for biofuel production When land that could be used to grow food and feed crops is used to grow energy crops this leads to existing agricultural production moving to another area or country where land is converted When this land is cleared and converted to cropland and because natural lands (rainforests and grasslands) store and sequester carbon in their soil and biomass a net increase in GHG emissions can occur Due to this change in the carbon stock of the soil and the biomass ILUC has consequences in the GHG balance of a biofuel Adding to this complexity models for ILUC calculations are not mainstreamed and thus difficult to assess internationally

25CSQ

Mellemfolkeligt Samvirke (MS) or Action Aid Denmark is a Danish NGO founded back in 1944 The

organizations key objective is to fight poverty by ensuring greater political influence for the worldrsquos poor and margin-alized at the local national and international levels MS works to bring about long-term development in the worldrsquos poorest countries focusing especially on education co-

operation and the ability to organize MS mainly works in Africa Read more about the organizationrsquos work

at wwwactionaiddk

Action Aid

A private sector view on the future of sustainable biofuels

By Barbara Louise Bech Department of Business and Politics CBS

nergy security continues to be an eminent concern in a world of finite resources For a long time biofuels have been viewed as

one of the key solutions to replace our dependency on fossil fuels and battle climate change but in recent years controversy has contested the sustainability of first generation biofuels based on food stock Issues such as lack of environmental safeguards causing loss of biodiversi-ty and deforestation and lack of social safeguards ensuring land and labor rights in producer (developing) countries have been claimed as key impediments to sustainable biofuel production Critical observers also argue that the emission savings of biofuel use in compar-ison to fossil fuels can become much smaller (or even disappear) when indirect land use change (ILUC) is included in the calculations Furthermore bi-omass production from food stock is argued to compete with food production and in-creasing food prices

The Danish NGO Action Aid has been engaged in biofuels since 2008 and is par-ticularly involved in protecting womenrsquos rights and preventing land grabs in de-veloping countries ldquoWe are very concerned about land use when it comes to first genera-tion biofuels This relates both to the people who are dependent on the land and to food security We rarely see good combinations where the local populationrsquos needs are taken into consideration The energy crops grown on the local farmerrsquos land donrsquot benefit him and local consumption is essential for developmentrdquo explains Kirsten Hjoslashrnholm Soslashrensen political advisor Action Aid Denmark

It is therefore believed by many that second generation biofuels is the only way forward to avoid competition with food and avert ILUC Next generation biofuels is based on lignocellulosic biomass such as agricultural and household waste and forest residues The Biorefining Alliance represents a cluster of leading Danish companies within the renewable energy sector with an ambition to promote second gener-

ation biofuels and make Denmark a world leader of technology and bi-ofuel productionldquoDenmark has very strong competencies in green tech and as a society we have put a lot of money in its development This is go-ing to be a huge deal globally so we are asking whether Denmark wants to be a customer or a producer What we are working for is of course that we become a lead exporter of technology but also that Denmark produces second generation biofuels commercially Even though we are a small country we cannot settle on selling know-how Denmark also needs to have some industrial productionrdquo says Anne Grete Holmsgaard di-

rector of Biorefining Alliance In her view Denmark needs to keep a firm grip on developing innovation or it will slowly but

steadily move out of the country In this regard she views sustainability criteria for biofuels as an in-

novator and not a hindrance

The Sustainable Biofuels Network (SBN) is another cluster of private companies trying to facilitate the transition from fossil fuels to biofuels in the transport sector For the aviation industry biofuels are considered

to be the only alternative to fossil fuels and the industry firmly believes that biofuels will

survive according to Robert Arendal chairman of SBN ldquoThe aviation industry has set very clear

guidelines for the use of biofuels We are not going to use food based biofuels and we will minimize the use of fresh

water By 2050 our target is to use 50 biofuels in the global aviation so we really need to move fastrdquo he explains adding that living up to sustainability criteria includes being careful about where biofuels are produced ldquoBut it should be produced all over the world and close to the 1600 airports worldwide that account for 95 of all aviationrdquo

he technology for second generation biofuels is already here but the problem is that production costs are too high and there is no market As long as prices are not competitive with conventional fuels it will be difficult to move forward ldquoOne might ask why there is no market The customers are certainly there so if I was in the business of producing

E

As part of the COBREN international conference on sustainable biofuels private sector civil society and academia were invited to give their views on sustainable biofuels at a roundtable discussion at an open public seminar held at DIIS November 19 2012

Event

26 CSQ

SBN is a ldquobreeding groundrdquo and ldquoknowledge centerrdquo for the biofu-els industry where synergies are created between all parties within

the biofuels sector SBN focuses in promoting supporting and enabling the commercial development and use of clean and sustainable biofuels for Heavy Road Transportation Shipping and Aviation Emphasis is put on the importance of global standards for biofuels with local as well as international institutions and decision makers to encourage con-

structive guidelines and rules for the development of biofuels SBN adheres to EUrsquos sustainability criteria SBN is a non-profit asso-

ciation established in 2008 Visit their website for more info at wwwsustainablebiofulsdk

Sustainable Biofuels Network(SBN)

The Biorefining Alliance (BA) was founded December 2011 by DONG Energy Novozymes Haldor Topsoslashe and the

Danish Agriculture and Food Council and is a three-year project to politically promote Denmarkrsquos position in the entire value chain from residues to bio-based products The Alliance has set forth a number of recommendations to achieve a sustainable Danish bio-economy Among other these include (i) that all organic

waste be considered a resource (high-value recycling and storable energy) (ii) reducing the cost of manufacturing 2G

bioethanol and (iii) contemplating the establishment of a national center for sustainable materials

Biorefining Alliance

second generation biofuels I would get started right awayrdquo says Robert Arendal The Biorefining Alliance is working on lowering the costs and recommends a stronger regulatory framework with binding targets as it has been done for the wind industry ldquoThere already is a market for first generation biodiesel which is the least sustainable biofuel We need to make a market for second generation biofuels and we know that binding targets work I donrsquot think it is possible to create a market for the lsquogreen consumerrsquo as you have one for organic food products but I believe that a niche market for HRT (Heavy Road Transport red) such as public bus transport could be a supplementrdquo concludes Anne Grete Holmsgaard

How the future for sustainable biofuels will shape depends on political will to create a market for second generation and the ability of private sector to innovate and bring prices down Oil production is claimed by some to already have peaked and exploring new geographical areas for extraction could be as costly as kick-starting the market for second generation biofuels although much less sustainable As the American ecologist and environmentalist Bill McKibben wrote in his book ldquoDeep Economyrdquo back in 2007

Even before we run out of oil wersquore running out of planetrdquoldquo Bill McKibben

27CSQ

The Transparency-Sustainability NexusA workshop on the practices meanings and tensions of organiza-

tional transparency

n December 5 2012 the Department of Intercultural Communication and Management (ICM) hosted an in-

ternational workshop supported by CBS Sustainability Plat-form and ICM The workshop was organized by Oana Brindusa Albu Mikkel Flyverbom and Hans Krause Hansen respectively PhD Fellow and Associate Professors at ICM The idea of the workshop was spurred by the observation that while ideals of transparency like lsquoopennessrsquo lsquodisclosurersquo and lsquoreportingrsquo are pro-liferating these years the actual construction of transparency within and across organizations is poorly understood Most re-search on transparency is highly normative if not celebratory just as popular discourse about transparency not least in the areas of sustainability and corporate social responsibility is obsessed with ideals of accountability performance and effi-ciency and pervaded by an optimism currently pushed to its extreme with the explosion of new media technologies

But the truth is that we generally know very little about the implications of ideals of transparency when translated into practice in specific issue areas and organizational contexts Importantly each of the contributions to this workshop clear-ly suggested that the contemporary politics of transparency is much more complex contradictory and dynamic than tradi-tionally recognized All papers examined various aspects of the contemporary obsession with transparency and specifically the increasing use of disclosure techniques within and around or-ganizations the rationales or myths underpinning these meas-ures their intended and unintended consequences including implications for identity-making management and govern-ance practices

Clare Birchall initiated the workshop with a paper titled lsquoThe Cultural Politics of Disclosurersquo highlighting how transparency has been positioned as a superior form of disclosure in popular management and organizational literatures and in policy docu-ments In her account the growing preference for transparency is a consequence not only of the positive qualities seen to be intrinsic to transparency itself but also a response to the per-ceived negative characteristics of other forms of disclosure such as gossip scandal and rumor Lars Thoslashger Christensen (with co-author Joep Cornelissen) then analyzed transparency as one of the foundational myths of modernity myths understood here as descriptions of the world in a narrative form which seeks to produce meaning and direction for a community and its members Such lsquoMyths of Transparencyrsquo sustain numerous organizational practices ndash including openness information provision and auditing But as argued by the authors there are conflicting evidence regarding the capacity of such practices to create insights and understandingThat aspirations and techniques of transparency can have seri-ous repercussions was demonstrated by Peter Skaeligrbaeligk (with co-author Mark Christensen) in the paper entitled lsquoAuditing and the purification of blamersquo which analyzed how auditing auditing practices and institutional entities including the po-liticized environments surrounding them are mobilized and participate in blame games and allocation In his paper titled lsquoQuantification transparency and the costs of reassurancersquo Henrik Vollmer analyzed various dimensions of the role of nu-merical records and signaling in generating transparency trust and mistrust

By Hans Krause Hansen Department of Intercultural Communication amp Management

Event

O

28 CSQ

Some of these aspects were also touched upon in the paper lsquoDisrupted Disclosures The Politics of Visibility and Surveil-lance in the Extractive Industriesrsquo by Hans Krause Hansen (with co-author Julie Uldam) which explored the wider field of visibility and surveillance in which contemporary transpar-ency policies are unfolding with examples from the extractive industries Oana Brindusa Albu in her lsquoTransparency and the organizational self everyday politics of identification in Cooperativesrsquo examined the paradoxical effects of values and practices of transparency on collective identity formation pro-cesses drawing upon her ongoing multi-sited fieldwork in co-operatives Under the heading of lsquoThe Improbability of Secrecyrsquo Mark Fenster analyzed the intersections of secrecy and trans-parency with examples from the US government and its efforts to control information which according to the author does not necessarily stop the flow of information Finally Mikkel Fly-verbom and Christina Garsten examined lsquoThe sway of (big) data ndash calculations and advocacy in the name of transparencyrsquo focusing on the operations of data-based forms of corporate lsquotransparency evangelismrsquo and advocacy through revelation including examples from Center for Global Development and Google

In all the workshop was highly successful in investigating not only the historical and mythical foundations of transparency but also the different practices and forms of transparency that currently shape organizations and a wide variety of issue areas It also provided a reminder of the usefulness of investigating a concept of transparency in relationship to a host of other con-cepts such as secrecy myth gossip blame surveillance visi-bility identity information and knowledge The organizers of the workshop wish to thank all workshop participants for their valuable contributions and the CBS Sustainability Platform and ICM for their support

Hans Krause Hansen

Mikkel Flyverbom

Oana Brindusa Albu

ASSOCIATE PROFESSORPHD (ICM)

ASSOCIATE PROFESSORPHD (ICM)

PHD FELLOW (ICM)

29CSQ

Louise Lyngfeldt Gorm Hansen is a PhD Fellow at the Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) She has a back-ground in Chinese Studies from Copenhagen University (BA) the Asian Studies Program at CBS (BSc) and in International Business Stud-ies and Sustainable Business (MSc) from CBS

The aim of her cross-disciplinary PhD project is to explore how the Chinese hydropower sector works with environmental sustainability and more particularly how the concept is understood and performed in the planning phase of a major dam project in the southwestern Chinese province of Yunnan

The aim of the project is to gain a deeper under-standing of how Chinese firms in the renewable energy sector such as hydropower companies understand and value sustainability as well as how such firms tackle the increasing pressure to deliver socially and environmentally balanced solutions to one of Chinarsquos major challenges lowering CO2 emissions in a time with rapidly rising water and energy demands Theoretically the project draws on - and aims to contribute to ndash a combination of Asian Studies and Science and Technology Studies

PHD FocusLouise Lyngfeldt Gorm Hansen

HYDROPOWER

SUSTAINABILITY

30 CSQ

HYDROPOWER

SUSTAINABILITY IN

CHINAy PhD project combines two of my main research interests China and

environmental sustainability I have studied China for a number of years mainly because of an interest in how the Chinese view sus-tainable development So since finishing my masters I have known that I wanted to study how China plan to tackle a sustainable tran-sition in the years to come I saw my chance when CBS announced PhD scholarships in

DanishEuropean-Chinese social science research in collaboration with the newly es-tablished Sino-Danish Center for Education and Research (SDC) and started my PhD in October 2011My PhD project focuses on the Chinese energy sector more specifically the rapidly growing part of the energy sector engaged in renewable energy Here I examine Chinarsquos second largest source of electricity gene-

eration hydropower In recent years China has become increasingly focused on reduc-ing CO2 emissions While some countries such as the US and Australia are decommis-sioning hydropower dams China is looking to large-scale hydropower construction as one of the solutions to a future clean energy supply This means that hydropower devel-opment plays a central role in Chinarsquos sus-tainable transition

However utilization of hydropower is con-troversial not least in China and has met increasing resistance in recent years particu-larly from Chinese and international NGOs the media as well as the scientific commu-nity Critique is most often focused on how or if social and environmental sustainability can be ensured in such large scale projects as the social and environmental impacts of large scale hydropower development are very complex and difficult to measure More gen-erally the viability of relying on hydropow-er as a future source of energy is also being questioned One of the major concerns here is the overarching issue of climate change ie glaciers shrinking and yearly water runoff decreasing This means less stable water flow for hydropower and less water for other pur-poses such as agriculture water supply for down-stream countries etc

By Louise Lyngfeldt Gorm Hansen Asia Research Centre Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) ndash sinodanishcenterdk

M

Picture from SinoHydro promotion material 2011

Research

31CSQ

In contrast to for example the wind power sector in China in which many foreign com-panies have invested the hydropower sector is dominated by a few large state-owned en-terprises Our knowledge of Chinese state-owned enterprises is still limited and there-fore my PhD project is also part of a larger research project at the Asia Research Centre with focus on Chinese state-owned enter-prises and the reform of the public sector in China

In combining these interests my PhD exam-ines how Chinese state-owned enterprises in the hydropower sector tackle the demand to expand hydropower development to help reduce Chinarsquos CO2 emissions while be-ing under increasing pressure to deliver on sustainability principles in the planning and execution of large scale hydropower pro-jects The pressure comes mainly from NGO organizations the media and the scientific community both at home and from abroad I am conducting a case study focused on a specific river in south-western China which has ndash until now ndash not been fully developed for hydropower and the plans for addition-al hydropower dams on the river are still undergoing assessments The project has continually stalled due to disagreements between Chinese government officials at all levels NGOs the media the increasingly deregulated but still state-owned Chinese hydropower companies and the scientif-ic community However the project has very recently been reopened and so will go through another round of assessments in the near future The case is an excellent example of the complexity of hydropower develop-ment decisions in China but it also highlights some of the social and environmental conse-quences of the global push to decrease CO2 emissions

China plays and will continue to play an increasingly important role globally in the years to come However the country also fac-es enormous challenges - not least regarding the environment These challenges also affect economies in Western Europe - for better or worse My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective so

that we here in Europe and in Denmark can more knowledgably and actively engage with China to help solve some of these difficult challenges that eventually affect us all In do-ing this I contribute to gain a better under-standing of the Chinese perspective on envi-ronmental sustainability that can be of use to companies wanting to engage in the Chinese renewable energy sector

My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective rdquoldquo

Picture of the case-river taken by the author in 2012

32 CSQ

FROM BLUEPRINT TO PRACTICE

ENERGY EFFICIENT CONSTRUCTION

By postdoc researcher Satu Reijonen Department of Organization CBS

In the EU almost one third of CO2 emis-sions are attributed to energy used in the construction and use of buildings (FIEC

2007) It is therefore not surprising that the construction sector has recently been subjected to a substantial amount of policy measures to combat its negative effects on climate change In Denmark the state has posed new thresholds for the energy efficien-cy of new buildings including a plan for con-tinuous improvement in the area This far the industry has responded well to these stricter performance requirements In the future re-quirements will rise to levels that are not that easily achieved in the coming years build-ings will have to use 25 less energy than in year 2008 How can these ambitious goals become business as usual

One of the most discussed ways besides add-on technologies such as windmills and solar panels to enhance the energy efficiency of a building is through an energy efficient phys-ical design In practice this means reduction of energy used for heating cooling down and lighting of the building through an optimal orientation and dimensioning of the build-ing

Integrated energy design contrary to add-on technologies can be achieved on a rath-er modest additional budget This should be good news for the sector that today is eco-nomically pressed Indeed today many low energy building projects claim to use the in-tegrated energy design method (IED) when seeking to meet the most ambitious energy related goals In this commentary I wish to discuss some challenges related to the imple-mentation of this design tool

The integrated energy design method sug-gests that one of the main problems in not achieving energy efficiency is that energy related concerns become integrated into the design process too late The method consists of two elements the first of which addresses the need to bring in energy related knowl-edge throughout the design process It sug-gests that design teams ought to be multidis-ciplinary and that architects engineers and experts should work together either co-lo-cated or in a series of workshops Further-more it suggests systematizing energy quali-ty follow-ups into the design process This is all very relevant and inspiring

Oddly enough a closer look on the actual design practices reveals that few seem to ac-tually follow the method of integrated energy design to the point This poses an interest-ing question about the challenges related to the use of such management technologies as vehicles for increased energy efficiency in construction Maybe it is about time practi-tioners and researchers ask themselves what are the boundaries of and challenges related to the use of these tools ndash and what else is required for organizing for more energy effi-cient building design processes

A revolution of relations

Integrated energy design points to the need to bring energy related expertise into the de-sign process at an earlier point In order to achieve this cooperative practices between different professional groups are advocated for Historically energy experts have most-ly been used to respond to rather advanced architectural plans Shared workshops and co-localization suggest a change in these business as usual relations But are they pos-sible and what type of changes do they ac-tually imply in order to function as wished

Research

33CSQ

Satu Reijonen is postdoctoral scholar at the Department of Organization at CBS In her on-going research project she investigates how architects and energy engineers two different profes-sions cooperate and coordinate their work regarding energy related ques-tions in construction design The ways in which relations between and roles of these professions become consti-tuted through socio-material arrange-ments are a central topics in her work Besides studies of work Satu has con-ducted research on environmentally friendly products and markets

ABOUT SATU RAIJONEN

The initiation of this type of new working forms is certainly beneficial for energy effi-cient design However for several reasons they are more difficult to make work than one would assume While it may sound rea-sonable it is after all a tall order Integrating energy related practices into an environment where different visions professions and in-terests meet and the divide between what one profession does is clearly and historically demarcated is demanding While architects need to make room for the intervention of energy experts into the creative work energy experts have to become capable of working creatively and relate to and follow the visual and aesthetic cues from architects In order to work these kind of changes in the profes-sional roles and relations have to resonate with the skills and visions of individual work-ers not only management level design strat-egies It is not surprising that organizational change scholars remind us of the possibility of loose coupling from the strategies placed at the management level (March 1981) What integrated energy design suggests is a kind of a revolution in the ways in which both the architects and the energy engineers envision their role and space of mobility

Linear tools in an unlinear design process

Integrated energy design suggests that the energy performance of the emerging build-ing design be followed up at certain points during the design process The method de-picts a rather mechanistic and linear under-standing of a design process consisting of phases within which iteration may occur While energy related issues may be dis-cussed as quality goals during these phases the method places a lot of emphasis on the check ups performed in the transition from one phase to another Design processes how-ever can also be characterized in a different manner unlinear exploratory and whirl wind type of practices where clear cut phases hardly exist (Akrich 1992 Van de Ven et al 1999) This also applies to the architectural design processes where the object of the de-sign is emergent (Yaneva 2009) This entails that the product the building may change in unexpected ways during any day of the de-sign process If this alternative description of the design processes is viable delegating energy related issues to some predetermined check up episodes may strike a false accord and indeed be contradictory with the aim of enhancing coordination and cooperation between professional groups What happens in between the predetermined checkups may very well be where the energy efficiency of the building becomes configured and where the intervention from the energy experts

would come most needed Perhaps this is why the best performing projects do not blindly follow the steps of the IED method Check ups however and no doubt play a role in verifying and making visible the energy performance for partners outside the design team

Integrated energy design as many other sus-tainability standards and guidelines make visible systematize and legitimize the ex-istence of environmental management and sustainability issues in organizations and work processes In this such way tools create awareness and legitimacy for environmental and sustainability issues The integrated en-ergy design method also suggests a possible way of thinking about what type of design practice might help us to achieve the stricter energy requirements of the future It howev-er falls short in becoming the change agent it suggests This is hardly surprising as a meth-od or a standard of any kind should only be seen as a possibility or as an opening for an inquiry of what the practice could be about Reconfiguring a well established practice is hard work and it would be foolish to trust that a design method would achieve it by itself What the method does is to alert us of the more profound changes in the pro-fessional roles and relations that is needed in order to enable the change However the method due to its rather mechanical under-standing of the design process may come to work against its own ambition of integrating energy issues into the design work In its quest for integration the method defines at which points in time the architectural and the engineering project has to be checked for its energy performance This approach may lead to bringing in energy related concerns in some artificially created points in a design process which may additionally compart-mentalize energy related issues from where the design really happens

Integrated energy design as many other sustainability standards and guidelines make visible systematize and legitimize the existence of environmental management and sustainability issues in organizations and work pro-cessesrdquo

ldquoLiteratureAkrich M (1992) The De-Scription of Technical Objects in Shaping Technology Building Society Studies in Soci-otechnical Change eds WE Bijker and J Law The MIT Press Cambridge Massachusetts pp 205-224

FIEC 2007 The impacts of buildings on climate change httpwwwbuildingsplatformeuepbd_publicationdocFIEC_Memo_p2919pdf on 1222008

March JG (1981) Footnotes to Organizational Change Administrative Science Quarterly vol 26 No 4 pp 563-577

Van de Ven A D Polley R Garud and SVenkataraman (1999) The innovation Journey Oxford Oxford Univer-sity Press

Yaneva A (2009) The making of a building A pragmatist approach to Architecture Bern Peter Lang

More about integrated energy design(IED)

httpwwwintendesigncomosloIntendnsfAttachmentsGuideline_Version_2pdf$FILEGuideline_Version_2pdf

34 CSQ

The climate challenge in

shipping

ldquoGlobal shipping faces two major challenges both of which are caused by its reliance on fossil fuelsrdquo

By Reneacute Taudal Poulsen Department of Innovation amp Organizational Economics

RENEacute TAUDAL POULSEN

ASSOCIATE PROFESSOR DEPARTMENT

OF INNOVATION AND ORGANIZATIONAL

ECONOMICS COPENHAGEN BUSINESS

SCHOOL

orecasts show that the shipping indus-tryrsquos CO2 emissions will most likely continue to rise in the next two to

three decades as demand for world sea-borne trade will expand At present global shipping accounts for approximately 33 per cent of global CO2 emissions but this share will most probably increase in the coming years if many onshore industries succeed in their aims of reducing emission levels

At the same time rapidly rising fuel costs put heavy strain on shipping company budg-ets Historically and until very recently fuel costs were only a minor concern for ship-ping companies but now they often exceed 60 per cent of variable operational costs Fuel savings made through energy efficiency improvements thus represent a win-win sce-nario for the shipping industry and for so-ciety at large They simply make good sense for everyone

Despite the strong incentives for fuel sav-ings numerous studies have demonstrated that shipping fails to implement cost-ef-fective measures to reduce fuel consump-tion Fuel-saving technologies are readily available in the market and in many cases pay-back periods are very short (less than a year) Changes in operational habits which require few if any investments also hold a significant potential for fuel savings

Global shipping thus holds several classic examples of energy-efficiency gaps Gaps occur wherever cost-effective measures to improve energy efficiency fail to materialize The causes for energy efficiency gaps have been a favourite research topic within the field of energy economics for decades and economists sociologists and political scien-tists have been able to identify several means to bridge the gaps However within the mar-itime domain energy efficiency gaps and the climate challenge remain neglected issues Legal barriers

Shipsrsquo fuel consumption rises steeply with speed Hence slow-steaming or just minor speed reductions can lower consumption and emission levels significantly Since oil prices started to rise rapidly a few years ago shipping companies have indeed resorted to various slow-steaming practices and com-panies which succeed in this regard have been able to gain competitive advantages In other words actors in the industry are trying to bridge the energy efficiency gap However and in spite of the strong price signals from the rising fuel prices a potential for fuel sav-ing through slow steaming still remains

FNew CBS research project

A new three year research project at CBS under-

taken by Reneacute Taudal Poulsen for the Department

of Innovation and Organizational Economics will

examine the climate issues bringing insights from

energy economics and innovation management

into the field of shipping economics The project

which is financed by The Danish Maritime Fund

runs from 2012 to 2015 The project asks why en-

ergy efficiency gaps continue to occur in shipping

and how shipping companies and the maritime

industry at large can use innovative business

models and process innovation to turn the climate

challenge and the rising fuel costs into a business

opportunity Energy efficiency gaps occur both

in daily operations and when investments in new

vessels are made This article will briefly present

two examples of energy efficiency gaps from

the operational level and some of the preliminary

findings of the project

References

Jaffe AB and RN Stavins 1994 lsquoThe energy efficiency gap What does it meanrsquo Energy Policy 22 (110) 804-10IMO 2009 Second IMO GHG Study 2009 London International Maritime OrganizationMoriarty P amp D Honnery 2012 lsquoEnergy efficiency Lessons from transportrsquo Energy Policy 46 1ndash3Poulsen Reneacute Taudal 2012 lsquoEmissions and energy efficiency - the twin challenges for shippingrsquo Mercator Maritime Innovation Research and Education MarchJune 447-454

Reneacute Taudal Poulsen is Associate Professor at the Department of Innovation and Organizational Eco-nomics at CBS He is also affliated with the Centre for Shipping Economics and Innovation at CBS Reneacute Taudal Poulsen holds a PhD degree in marine environmental history from the University of Southern Denmark and he has worked within the field of maritime business studies for the last seven years He has published in such journals as Fisheries Research Business History and Scandinavian Economic History Review

His current research intersts concern the environmen-tal challenges faced by the global shipping industry and business model innovation in the maritime domain

Research

35CSQ

It is clear that shipping companies cannot fully bridge the energy efficiency gap alone In fact factors beyond the control of in-dividual shipping companies and various structural or legal barriers prevent shipping from fully realizing the slow steaming po-tential

Port congestion remains a world-wide prob-lem and causes ships to spend remarkably long periods inactive Despite the financial crisis and the large drop in shipping freight markets after 2008 many loaded vessels sit at anchor outside ports waiting for berths In some cases they wait for a few hours In other cases for days weeks or even months Instead of waiting the ships could have re-duced speeds and saved fuel And the de-livery and the loading of the cargo in port would not have been delayed in any way However in many cases shipping companies or ship operators cannot reduce speed in spite of port congestion

Educational barriers

Energy efficiency gaps in shipping are also evident when the fuel consumption levels of sister ships are compared Even though the vessels are identical and operate in the same waters studies have shown that their fuel consumption may differ by several Decisions made by the crews onboard and by managers in the onshore organizations clearly influence the level of fuel consump-tion For instance if a captain selects only very small course deviation margins when coding the autopilot of the ship the shiprsquos rudder will move frequently to keep the ship on the exact course all the time This will slow down the ship and cause higher fuel consumption than if the captain had allowed for slightly wider margins and the wider margins would not have any effect on the safety of the ship Decisions made by the commercial depart-ments eg on how to crew the vessels how to monitor vessel fuel consumption or which new equipment to install onboard may also

have a large impact on fuel efficiency and emission levels If shipping company man-agers can nurture a fuel saving culture this could potentially make a difference Since 2007 or 2008 shipping companies have in-deed started to facilitate such organizational changes but educational barriers remain a problemOnshore truck drivers are now offered fuel saving courses but fuel-saving is not a major part of the traditional curriculum in nautical schools or in the commercial education of shipping trainees For good reasons the nau-tical educations have focused on maritime safety but this has caused them to neglect the climate challenge in shipping and the is-sue of fuel saving In fact no single nauticaltext book on maritime fuel savings has yet been published and according to teachers and students in the nautical schools this serves as an educational barrier to ener-gy-efficiency improvements The technical level of education for commercial employees in shipping companies may also hinder im-provements in energy-efficiency Some com-

mercial shipping employees may not have sufficient training to fully see and acknowl-edge the consequences of their decisions on fuel consumption In short it seems that fuel awareness and the educational systems have responded more slowly to the climate chal-lenge than the rise in fuel prices may other-wise suggest

For shipping to bridge energy-efficiency gaps education ndash both nautical and com-mercial ones ndash clearly is an area to set in Here the potential for innovative solutions is both evident and pertinent Changing educational systems and awareness is no easy task bearing in mind the global nature of the shipping industry and international crewing of the world fleet It is clear howev-er that educational upgrading is necessary for shipping to effectively address the cli-mate challenge effectively

Charter parties between ship-operators and shippers state a specific time of arrival for the vessel and in order to avoid claims ships proceed to port accordingly regardless of berth availability Experiments with new more flexible charter parties which allow for slow steaming in case of port congestion have recently been made Shipping compa-nies have generally been enthusiastic about this flexibility but often shippers remain skeptical Lack of trust between shippers which need the loading of their cargoes as soon as possible and shipping companies may be a cause for this discrepancy Even in cases where the savings made from slow-steaming are split between shipping companies and shippers shippers have re-mained skeptical Port queuing systems may have a role to play here

Many ports including some of the major container iron ore coal and grain ports serve ships on ldquofirst-come first-servedrdquo ba-sis Ships only receive their ldquoticketrdquo in the

waiting line upon their arrival at the port Again lack of trust between the ship-oper-ators shippers and the port authorities may explain this phenomenon Moreover port authorities currently do not have incentives to change queuing practices because they cannot gain a share in the fuel savings made from slow-steaming

The problem is particularly strong in the major tramp shipping segments of tanker and dry cargo shipping where vessels act as ldquotaxis of the seardquo serving numerous shippers and rarely calling at the same ports If the fleet from a shipping company only calls at a particular port once a year and the compa-ny has very short-term relations to individ-ual shippers building trustful relationships between the parties remains a major chal-lenge Solving this problem and realizing the full potential of slow steaming will require systemic innovation in shipping and port systems and further studies are required to identify possible solutions

36 CSQ

The Wind turbine industry -

Emerging global innovation networks in Europe and China

The wind turbine industry has developed into a global network encompassing a large amount of diverse actors within innovation production and installation of wind turbines across the globe

By Stine Haakonsson and Julia Kirch Hollitsch Department of Business amp Politics CBS

market for wind energy Chinese actors have turned China as a location into another im-portant lsquohubrsquo in this network This has led to new forms of innovation collaborations between European and Chinese actors The result has been a complete re-configuration of the industry over the past decade In the International Business and Economic Geog-raphy literatures the development of global production networks in which lead-firms be-come orchestrators of dispersed production

enmark has traditionally played a key role as an lsquoinnovation hubrsquo and com-

panies in Denmark remain among the lead firms within the wind turbine industry Re-cently the industry has reorganized from being located predominantly in the Triad regions (mainly in Europe and the US) to becoming a globally dispersed industry This development can partly be explained by de-velopments in international and national politics Due to the growth of the Chinese

activities in globalized value chains is well established theoretically as well as empiri-cally In the globalization process lead firms relocate production activities to low cost lo-cations by off-shoring and through vertical disintegration and outsourcing to specialized suppliers Producers of wind turbines are no exception However until recently the mar-ket and innovation activities remained con-centrated in Europe and US

With the recent focus on global politics for a post-carbon society the market for wind tur-bines has experienced an immense growth and a high degree of market globalization New locations have developed into main markets One of these is China which since 2010 has been the largest market for wind turbines in the world (in capacity installed) The globalization process in the wind tur-bine can be explained by a combination of offshoring of production by European lead firms mainly through foreign direct invest-ment and establishment of domestic lead firms in emerging markets In 2010 there were four Chinese-owned companies among the top-10 producers of wind turbines as compared to 2003 where all firms on this list were from Europe and the US

D

Julia Kirch Hollitsch

Stine Haakonsson

Stine Haakonsson and Julia Kirch Hollitsch from Depart-

ment of Business and Politics CBS are engaged in the

Sino-Danish Center for Research and Education (SDC)

project on Wind Energy in China Both research on the

current restructuring of industries and firms at the glob-

al level (outsourcing off shoring global value chains)

In particular their research is on 1) the restructuring of

innovation and RampD activities into global innovation net-

works(GINs)2)thechangingroleofemergingmarkets

(ChinaIndiaBrazilSouthAfrica)intheseemergingGINs

and 3) technology transfer and capability building related

to renewable energy

Research

37CSQ

by adapting their products to the Chinese market and through cost-out development activities in the new locations primarily China

As a result the wind industry is today highly knowledge-intensive and internationalized Due to increased attention and investments in sustainable transition policies and car-bon-reducing technology China has over the past decade developed into a high prior-ity investment area for wind turbines Also Chinese companies are upgrading technol-ogy and innovation from the global firms through integration into GINs Moreover the production and innovation networks for wind energy become highly complex and consist of many different suppliers of com-ponents (blades gear boxes control systems bearings) resulting in a variety of network linkages among suppliers of different com-ponents and the wind turbine producers

From our empirical data including more than 40 in-depth interviews collected in 2011 and 2012 in the wind turbines indus-tries in China and Denmark we have identi-fied some very interesting patterns We have identified very different characteristics of the GINs established by the Chinese wind tur-bine industry and the European wind tur

Emerging Global Innovation Networks

Innovation processes are also moving be-yond the boundaries of individual compa-nies and national innovation systems Firms engage in cross-border innovation networks spanning different innovation systems which may be national regional or sectorial in or-der to stay competitive in the global econ-omy Chinese lead firms are entering this scene too The result is globally organized networks of interconnected and integrated functions and operations by firms and non-firm organizations engaged in the develop-ment and diffusion of innovations so-called Global Innovation Networks (GINs) Lead firms internationalize innovation through strategies of exploitation global generation of innovation and global techno-scientific collaborations Chinese wind turbine pro-ducers ndash acknowledging their resource and capability deficiency ndash pursue strategies of innovation network integration through strategies of global generation of innovation These firms link up with specialized Europe-an actors such as core component suppliers through partnerships and networks in or-der to tap into the technology of firms from developed countries and upgrade Mean-while European companies internationalize through exploitation strategies for example

bine industry Although Danish and Chinese actors are experiencing a re-organization of activities and establish networks and globa-linnovation strategies the result is very dif-ferent

The industry from Europe and US

The industry from Europe and the US hosts the lead firms in terms of core technology de-velopment Denmark has traditionally played a key role as lsquoinnovation hubrsquo in technology development and global lead firms such as Vestas and Siemens Windpower (previously Danish lsquoBonusrsquo) took its start already in the 1970s The core competences of the Danish wind turbine innovation system are based on large testing facilities and long track records mainly due to the long time-line of experi-ence The wind industry goes 40 years back and therefore Denmark has a good knowl-edge pool within establishing wind farms (aerodynamics minimizing power loss in energy transmission wind mapping and other installation-related technologies)

38 CSQ

that will make it possible to finance the pro-jects ldquoFrom then on our wind turbine pro-jects developed very fastrdquo(Interview Wind Engineer Chinese Academy of Sciences) Thus this law was a milestone for elevating renewables to a strategic position in China or as expressed by a European lead-firm ldquoWhat drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick offrdquo

Until the turn of the millennium Chinarsquos wind energy industry was largely built on donors acquisition of finished wind turbines and licensed technology from European companies spread on a very small scale into the local industry during the mid 1990s Chi-nese wind turbine technology has evolved from imitation reverse engineering and licensing in the 1980-90s combined with assistance from foreign consultants One example is how DANIDA funded a project in 1986 for Goldwind in Xinjiang which imported 13 units of 150 kW lsquoBonusrsquo (now Siemens Wind Power) turbines

To get beyond the stage of pure imitation several policies have been introduced with the intent to upgrade Chinese manufacturers to obtain indigenous innovative capabilities Policy programs were introduced to enhance Chinese companies to develop wind energy subsidizing wind energy RampD expenditures at varied levels over time establishing a re-newable energy fund and through the ldquo863 Wind Programrdquo under the Tenth Five-Year Plan (2001-2005) Local content require-ments were put in place in which develop-ers of wind energy projects were required to source 70 pct of the content in China These policies ndash which essentially forced foreign manufacturers wishing to sell wind turbines to the Chinese market to establish China-based manufacturing facilities ndash were only removed recently (in 2009) One result was that the foreign companies had to up-grade local suppliers of components

Due to the technological complexity many European (and hereby also the Danish) firms are vertically integrated and have most com-ponents produced in-house or with regular specialized suppliers According to these companies the different parts need to be well adjusted to each other to some extent even co-developed in order to enhance effi-ciency and the lifetime of the wind turbine Likewise the European industry has expe-rienced a concentration of actors with the result that there are only relatively few but large manufacturers in Europe (the larg-est ones are Vestas Siemens Gamesa and Enercon) Together these four companies accounted for about 35 of the global mar-ket in 2010 By seeing the wind turbine as an integrated system these lead firms aim at producing lsquothe Rolls Roycersquo model wind turbines These are strong in terms of qual-ity and standards but generally expensive These firms learn cost-out techniques from their engagement with partners in China

The Chinese Wind Turbine Industry

Today the Chinese wind turbine industry is overly competitive It entails more than 80 wind turbine manufacturers and the Chi-nese market boasts the highest growth rates internationally with an average growth rate of 968 percentages annually in the last three years Several large domestic Chinese wind turbine manufacturers have emerged within the last decade Sinovel and Goldwind take the largest share followed by United Pow-er and Ming Yang just to mention some of them As of the end of 2010 these four were A major driver for the development of the Chinese wind energy market has been the establishment of an institutional context as a comprehensive concerted policy frame-work addressing the development of renewa-ble energies This change in the institutional context was first reflected clearly in the 11th 5-year-plan (2006-2010) which explicitly linked environmental sustainability to the key goal of establishing what was called a harmonious socialist society signalling a socially environmentally and economically sustainable economy With the Renewable Energy Law from 2005 the Chinese wind energy industry really took off as it explicitly seeks to ensure that renewable energy pro-jects have an outlet for their output at prices

Technical barriers and the role of GINs for a post-carbon society

Despite high ambitions in terms of devel-oping innovative capabilities Chinese pro-ducers still produce almost exclusively for the Chinese market However Chinese wind turbine manufacturers have recently started an internationalisation process and some are approaching international markets Not least for tapping into new knowledge

Europe (and Denmark in particular) is per-ceived as a main location from which the Chinese companies can learn more A cou-ple of Chinese companies have already set up RampD centres in Denmark European firms have also initiated RampD centres in new lo-cations primarily China and India In other words GINs can be identified

Our research also points towards important barriers for GINs in the wind turbine in-dustry and for approaching a post-carbon global society Most importantly are the technological barriers intellectual property rights quality issues and issues of limited appropriability of knowledge Further the institutional framework remain relevant for displaying how the sector and the emerging GINs are embedded institutionally socially and technologically Whether actors trans-act knowledge technology and know-how through cooperative innovation activities also depends on how core the technology of a given technology is Still as the market grows in China it seems to have matured in Europe because of changing policies on re-newable energy To sustain the position as a global lsquohubrsquo and world leader in wind tech-nologies there is a strong need for support in Europe as this research really shows how fast the Chinese industry is moving One major result is how important networks are for upgrading companies and it seems that Chinese firms perform better in network strategies and manage to tap into relevant knowledge than the European firms

What drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick off rdquoldquoInterview Wind Engineer Chinese Academy of Sciences

39CSQ

Social Enterprise World

ForumNadine Koumlcher from 180Degrees recounts her experience from the

conference on

Rio de Janeiro Brazil 2012

In the numerous panel debates and parallel track discussion it became clear that Impact Investment is a hot topic among both social entrepreneurs and impact investors a diverse group consisting of corporations founda-tions and potential donors However various obstacles impede a harmonious relationship between the twoSocial enterprises face structural challenges to make themselves more appealing to im-pact investors They have to become more transparent and increase their accountability This includes improving their impact assess-ment and reporting tools However despite much discussion no consensus could be formed on how to optimally conduct im-pact assessment One of the most frequently proposed methodologies involves the use

From the 16th to the 18th of October the CBS Sustainability Platform granted me the opportunity to attend the 5th Social Enter-prise World Forum which took place in Rio de Janeiro Brazil This yearly international conference focuses on social enterprises and their effectiveness in solving social challeng-es The overall theme of the 2012 conference hosted by NESsT was ldquoSocial Enterprise Investing for Impactrdquo Thus for three days over 180 speakers and 650 delegates from 30 different countries shared their experiences regarding impact investment and discussed possibilities to attract new investment by both the public and the private sector for so-cial enterprises

of control groups Story-telling has also been men-tioned to be a powerful tool to provide investors with a proof of outcomesSocial investors are willing to accept returns just below the market rate in exchange for a social return However large profits are still expect-ed and many social enter-prises are afraid of being unable to generate them Social enterprises typically operate on a small scale and are not used to undertake large projects with huge sums of investment given to them Many are too small for social investors to be

attractive as costs are similar for small and large investments although larger invest-ments have a higher payoff

Nichole Echert the CEO of NESsT there-fore pointed out that it is necessary to align expectations between impact investors and social entrepreneurs and to be patient in establishing a relationship between the two groups The expected financial return has to be reasonable close to covering the costs of operation and social returns have to be re-ported to investors by use of clearer criteria

By Nadine Koumlcher Director of Branch Development180 Degrees Consulting Limited

ldquoSocial Enterprise Investing for Impactrdquo

Students

40 CSQ

A highlight of the con-ference was definitely the site visit to a social enterprise project in a recently pacified fave-la It brought further insights on the great variety of social enter-prises that exist in Bra-zil and their missions and struggles We visit-ed a community center at which Comitecirc para

Democratizaccedilao da Informaacutetica (CDI) uses technology to fight poverty and to stimulate entrepreneurship CDI has formed a corpo-rate partnership with Coca Cola which in the same building teaches young locals how to write a CV and find a job Talking to the young locals at the center it became apparent that an increased self-confidence and the in-spiration they get from meeting former now employed participants of the project (eg at Coca Cola) is what they valued most of being part of the class

Participating at the conference was definite-ly a unique and valuable experience I would not want to miss as I tremendously improved my knowledge in the field of social enter-prises through attending the numerous pres-entations and discussions and further met so many inspiring social entrepreneurs impact

In addition it has been stressed that the problem is not a shortage of investment capital (even though the government could promote more impact investment by for instance granting tax breaks) but how to deploy it Social entrepreneurs also have to be aware of the different advantages and dis-advantages of the various types of capital It has to fit their process of establishment and it has therefore been suggested that funds and grants are most optimal in the start-up phase to cover such costs as capacity train-ing There is generally a lack of this early stage financial support Following the initial phase strategic philanthropy money would be most appropriate before impact and final-ly equity investment is sought Furthermore new ways of investment which fit the social enterprise world have to be created replac-ing the current situation of trying to fit social enterprises into the current financial world

investors and students with a genuine inter-est in the field

Participating at the conference was definitely a unique and valuable experience rdquo

ldquo

Social Enterprise World Forum 2013 in

Calgary Canada

The TRICO Charitable Foundation in part-nership with the Social Enterprise Council of Canada and the Social Finance Forum has been selected to host the 6th Annual Social Enterprise World Forum SEWF 2013 will take place October 2-4 2013 in Calgary Al-berta The Forum will present the Canadian social enterprise movement with opportuni-ties to engage learn and share on the inter-national stage

SEWF 2013 will be a gathering of over 1000 Canadian and international delegates who are involved in the social enterprise move-ment where the blending of social and fi-nancial values is core to business Attendees will consist of practitioners (from all sec-tors) funders investors supporters elected officials and public servants from around the world

Nadine Koumlcher

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 11: CBS Sustainability Quarterly 2013 #1

11CSQ

Writing a good business case

from a Hollywood perspective

Jenny Mead and Jonas Hedman from Department of IT Management at Copenhagen Busimess School

From the workshop at Copenhagen Business School

riences in a safe environment ndash no company is going bankrupt based on the decisions It is almost real world training but you are not in the real world A feature of case teaching at Darden School of Business is the use of small video clips of the protagonist in the business case Instead of students just reading about the protago-nist in the case the protagonist presents the problem or issue on video to create a lively teaching environmentrdquo

Do businesses actually think about ethicsThat is a good question and I believe there is

a growing awareness I am very impressed by Darden and the students Maybe it is because of the mandatory first year ethics course but the students are very concerned with CSR sustainability and values

I am currently working on a series of cases on conscious capitalism More and more businesses are adopting true values A shift has been made towards conscious capitalism The idea of conscious capitalism is that busi-nesses realize the value of good treatment to all stakeholders Businesses exist to create value for everybody

Relevant links

Darden Case Studies

The Olsson Center for

Applied Ethics (Jennyrsquos

employer)

The Business Roundtable

Institute for Corporate

Ethics

httpwwwcorporate-ethics

orgpublicationscase-studies

httpwwwdardenvirginia

eduwebOlsson-Center-for-

Applied-Ethics

httpwwwcorporate-ethics

org

12 CSQ

SUSTAINABILITY AND

DEVELOPMENT COOOPERATIONInterview with Minister for Development Cooperation

Christian Friis Bach

Did you know that 7 out of 10 of the fast growing economies can be found in Africa Or that DANIDA funds a programme in which CBS and other Danish universities work together with universities in Tanzania Ghana and other countries to increase the quality of research and uni-versity-level education in devel-oping countries

CSQ - Elisabeth Crone Linding amp Stefano Ponte sat down with the Dan-ish Minister for Development Co-operation Christian Friis Bach to hear about how the developing world is moving ahead fast ndash and why Denmark needs to keep up in order to stay relevant

I t is not every day that we meet with min-isters on the top floor of Asiatisk Plads

ndash the official home of the Danish Ministry of Foreign Affairs and DANIDA the inter-national development cooperation branch of the Ministry Nevertheless here we are over-looking the busy waters of the Copenhagen canal and looking forward to a long-planned rendezvous with Christian Friis Bach Min-ister of Development Cooperation since the autumn of 2011

Besides spending time in the academic ranks of Copenhagen University and the political spheres of the European Commission the Minister knows a thing or two about the de-veloping world he has previously devoted his

time to positions in DanChurchAid WWF World Wide Fund for Nature MSActionAid and the Danish Ethical Trading Initiative

In its current strategy DANIDA has put a new focus on green growth renewable en-ergy sustainable agriculture and innovative solutions to enable continued access to scarce resources ndash a quite green agenda in fact But how does this resonate in a developing world that is growing very fast According to the Minister perceptions are changing with more democratic political environments be-ing built

ldquoMore and more developing countries see green growth and sustainability not as stum-

bling stones but as building blocks of a fu-ture strong economy They recognize that in a world of natural resource scarcity and increas-ing prices on for example energy they need to adopt a different growth pattern More and more poor countries are buying into this And therefore we now have a unique opportunity for shaping the political framework and ena-bling environment to create more sustainable developmentrdquo

So how does a business school such as CBS fit into this equation What can we offer

This is a key question for us to ask As the Sustainability Platform was born out of the CBS Business in Society strategy we are in-

CSQ Interview

13CSQ

terested in looking for ways to address grand societal challenges such as ensuring sustain-able development

Christian Friis Bach recognizes that CBS as a research and educational institution has a role to play here ndash maybe even a bigger role than we play now Because even though CBS is known and regarded as a very internation-ally oriented university the Minister encour-ages CBS to go even further in sharpening its global commitment and profile

ldquoMany of the problems that we have related to growth and employment in Europe are not to be found in developed countries I hope that CBS continues to engage internationally in order to shape graduates to tackle global chal-lenges For example 7 out of 10 of the worldrsquos fastest growing economies are in Africa and here I would really urge CBS to have an even stronger engagementrdquo

CBS is involved in the Building Stronger Universities in Developing Countries Pro-gramme (BSU) which is a partnership be-tween research and higher education institu-tions in selected developing countries and all the main Danish universities The long-term goal of the initiative is to make the partici-pating institutions stronger by conducting joint research projects that offer knowledge and solutions to localdomestic and global challenges to produce better graduate pro-grams and for universities to play an increas-ing role in the economic social and political development of their own countries How-ever Christian Friis Bach also encouraged close dialogue with a broader set of partner universities in the developing world as an important way for CBS to shape its research and educational efforts and thus remain rele-vant in the future

Christian Friis Bach highlighted

ldquoIt is a big world And the world moves fast And I think the challenges upon our edu-cational system in Denmark are increasing every day When I go to South Korea China Latin America or Africa I see that they look increasingly towards each other for innovative solutions not towards Europe If we need to remain relevant we do have a challenge hererdquo

For example this means looking at the econ-omies in the world that are the most innova-tive These are in many cases in the develop-ing world so this is when CBS should invest when it comes to partnering in research educational development and knowledge exchange for example among faculty and students

The Minister also notes the advantages that can be gained from globalizing our institu-tions much more broadly and working across borders and academic fields for example on

The Building Stronger Universities in Developing Countries initiative amp CBS

ldquoBuilding Stronger Universities in Developing Countriesrdquo is a partnership between research and higher education institutions in developing coun-

tries and Danish universities The long-term goal of the initiative is to make the participating institutions stronger in the sense that they

bull playanincreasingroleintheeconomicsocialandpoliticaldevelopmentofthesocietiesinwhichtheyarelocated

bull functionasnodesofinnovationandknowledgeproductionprovidingsolutionstolocaldomesticandglobalchallenges

bull produceskilledandmotivatedgraduatesthatcancontributetothefurtherdevelopmentofthesocietiesandaddressthechallenges

faced

The ldquoBuilding Stronger Universitiesrdquo initiative has a structure with four thematic platforms Copenhagen Business School contributes to one of

the four platforms under the initiative the Growth and Employment platform which is a partnership between University of Ghana (UG) Kwame

Nkrumah University of Science and Technology Ghana (KNUST) University of Dar es Salaam Tanzania (UDSM) Sokoine University of Agriculture

Tanzania (SUA) and the major Danish universities From CBS Associate Professors Soslashren Jeppesen and Michael Wendelboe Hansen the CBS

Center for Business and Development Studies is part of the project which for example seeks to develop relevant PhD programmes strengthen

growth and employment relevant research activities and research collaboration and disseminate research findings to stakeholders

wwwbsuudorg

Students Sierra Leone (picture from umdk) Photo Joslashrgen Schytte

When I go to South Korea China Latin America or Africa I see that they look increasingly towards each other for innovative solutions not towards Europerdquo

ldquo

14 CSQ

health technology and business develop-ment in cooperation with developing coun-try researchers And we need to be good at a lot more than ldquojustrdquo development coopera-tion ldquoif we want to remain relevant for exam-ple in Africa on sustainable business we can-not afford to send people out who have worked isolated in the development community here in Denmark So instead of seeing development research as a separate discipline it needs to be integrated into everything we dordquo

That is why the Minister argues for more fo-cus on educating graduates that are experts and specialists but not necessarily within development cooperation Instead he says Denmark needs graduates that can develop the best possible solutions for the developing world within energy technology etc ldquoThe fast-growing economies in China Southeast Asia Latin America Africa do not need spe-cial things made for developing markets they need top innovative solutions and high-quality products and we need to be able to offer that to them if we want to remain relevantrdquo

One of the solutions worth repeating is that of partnerships According to the Minister universities need to remember that partner-ships with other research institutions as well as with private companies and organizations can provide greater insight

ldquoYou need not only public-private partner-ships but large-scale multiple partnership Still universities can sometimes behave as isolated entities Of course universities need to focus on the core business of researching and educating students but they will also in-creasingly be challenged to engage in these in-ternational and multiple partnerships This is where you will find some of the most inspiring

About Christian Friis Bach

Born 1966 in Frederiksberg Denmark Married three children Lives on a hobby farm near Ganloslashse

Present officeMinister for Development Cooperation 3 October 2011 ndash

Education1992-1996 PhD International Economics Royal Danish Agricultural University Copenhagen 1986-1992 MSc Agronomy Royal Danish Agricultural University Copen-hagen

Work Experience2010-2011 Special Advisor for EU Commissioner Connie Hedegaard (UN Global Sustainability Panel) 2010-2011 CEO ViewWorld ApS 2009 Affiliated Professor in International Economics and Development at the University of Copenhagen 2005-2010 International Director DanChurchAid 2002 Journalist at the Danish Broadcasting Corporation (DR) 1999-2005 Associate Professor International EconomicsDevelopment Economics Royal Danish Agricultural University (University of Copenha-gen)

Other engagements2010-2011 Member of the Board of the Danish United Nations Associa-tion 2008-2010 Initiator and Board Member of the Danish Initiative for Ethical Trade 2008-2009 Member of the Danish Africa Commission 2007-2011 Member of the Presidium for WWF World Wide Fund for Nature Denmark 2000-2006 Board Member International Institute for Sustainable Develop-ment 1997-2001 Chairman Mellemfolkeligt Samvirke (Danish Association for International Cooperation)

Christian Friis Bach has published a large number of books reports and ar-ticles in newspapers and magazines Please see wwwfriisbachdk for details

15CSQ

In December 180 Degrees Consulting (180DC) finished its third round of pro-bono social impact consulting projects with even more success than in previous semes-ters All consultants showed dedication and motivation by spending a large amount of their spare time to work with socially con-scious organizations in order to help them to improve their social impact

An overcrowded lecture room during the 180DC information meeting at the begin-ning of the semester and the high number of applications to join the consulting projects were evidence of great interest in 180DCrsquos activities Out of the 139 applicants the top 45 were selected in a two-step recruitment process and grouped into teams of five to work on the nine exciting projects lined up in the Fall 2012 semester

All projects involved Danish-based organi-zations with a strong focus on either social andor environmental sustainability The projects however differed vastly One of the consulting teams assisted Engineers Without Borders and Action Aid in developing an investment rationale for the cultivation of farmland belonging to an Indian orphanage as well as assessing the social return of this investment

Another 180DC team worked with Hertha an organization focused on the reverse in-tegration of ordinary people into a commu-nity of mentally challenged Hertha needed assistance with improving their external reporting setup to stakeholders which was achieved by developing useful tools for the organization to measure both the social and cultural impact of their activities Yet another team of consultants helped the International Rehabilitation Council for Torture Victims optimizing their internal processes and thus helping them pursue their vision of a world without torture

During the consulting period 180DC or-ganized several training sessions for the con-sultants of the organization hosted by pro-fessional consultancies and each team was assigned a mentor with expertise specific to the given project The highlight of the semes-ter was the Final Event at which all of the teams presented their projects in front of a large audience comprised of all 180DC con-sultants the 180DC board members as well as mentors clients and a jury consisting of representatives from PwC DI CBS Sustain-ability Platform BCG and VSFA The juryacutes task was to evaluate the consulting projects based on their written report and oral pres-entation Based on the creativity feasibili-ty and impact potential of the projects the chairwoman of the Jury Birgitte Mogensen PwC announced the winner of the 180DC Social Impact Award Team Engineers With-out Borders

All of the 180DC board members have throughout the semester been working hard to constantly improve the organization in or-der to ensure a high quality of the services provided to clients and of the learning ex-perience provided to students With a new extended board in place 180DC is looking forward to continue its successful journey in the upcoming semester which kicked-off in January with two international projects in Chile and Sierra Leone ndash thanks to the sup-port of the CBS Sustainability Platform

by Nadine Koumlcher

UPDATE FROM 180DEGREES180 Degrees Consulting is an international student consultancy that works with growing non-profits helping them achieve a greater social impact

Contactphone no +45 6061 6399e-mail cph180degreesconsultingorg

Updates from partner organizations at CBS

16 CSQ

The past semester was a good one for 360deg Students for Sustainability Not only did our organization grow to nearly 50 members this fall but we were also nominated in the Student category for the CSR Awards 2012 ndash the second year in a row You can watch the nomination video here httpwwwyoutubecomwatchfeature=player_embed-dedampv=6J5mwn7TcYI Although we didnrsquot win the award representatives from 360deg got the chance to participate in the conferencersquos many seminars ndash and not least hear Bill Clin-ton speak360deg also took it to another level with 360deg Academy The project was a huge success with over 250 people signed up for the ex-tracurricular course It shows that there is a clear interest in CSR and sustainability among the students and that 360deg Students

for Sustainability fill an important gap in providing the students with a forum where they can discuss such issues with each oth-er professors and practitioners We have al-ready started planning Academy 2013 which will run in the fall In addition to 360deg Academy 360deg organ-ised several successful events and seminars the past semester 360deg Develop Prize was kick-started in November and has already found some dedicated social entrepreneurs who will join the coming events this spring as well as the final competition 360deg also co-organized events on microfinance (with Danish Forum for Microfinance) and fair-trade (with Fairtrade Maeligrket) We also created a nice Christmas spirit at the CBS campus with our annual Christmas event featuring cookies a fairtrade Christmas tree

and do nations to Red Cross and Verdens SkoveWhile it is important to look back this semester 360deg is focusing on the future By the end of the semester 360deg Students for Sustainability will have changed its name to oikos Copenhagen After becoming part of the international student network oikos in 2011 we believe that changing our name will emphasize our international commitment and will show the students the many oppor-tunities that are available to them through the oikos network You can read more about oikos International and the other 36 chapters around the world by visiting wwwoikos-in-ternationalorg

Christina EkChairwoman of 360deg and soon-to-be President of oikos Copenhagen

UPDATE FROM 360 STUDENTS

360deg Students for Sustainability

360deg Students for Sustainability is a non-profit student organization based at CBS working to enable and inspire students to make responsible and sus-tainable decisions in their future lives and professional careers

Contact Christina Ek tlf 42 39 99 54 mail info360studentsdk

Live show at CSR Awards 2012

(Picture from csrfondendk)

Updates from partner organizations at CBS

17CSQ

UPDATE FROM PRME

New approach by the Curriculum Development

projectThe commitment to the initiative of the UN Principles for Responsible Management Education (PRME) at CBS has been further sustained via a more targeted approach to the development of the curriculum at the undergraduate programmesAs part of the adherence to PRME CBS has launched a Curriculum Development project to integrate responsible management prac-tices into the study programmes and also make these practices more explicit This is an extensive process that recently has been even more focused on the individual content of each of the study programmes A more cus-tomised approach will only strengthen the analyses of syllabi for each core course and increase the content of explicit responsible management

ldquoThe current restructuring of the Service Management bachelor programme and the development of three specialised lines of ed-ucation offer a great opportunity to align the curriculum development with the Principles for Responsible Management adopted by CBS Currently the CBS Office for Respon-sible Management Education and faculty members from CBS are working to identify opportunities to integrate responsible man-agement education into the educational programmerdquo Assistant Professor Adriana

Budeanu BSc in Business Administration and Service Management CBS In collabo-ration with study boards students and fac-ulties the Curriculum Development project enables a targeted approach to the integra-tion of responsible management content in order to comply with the overall structure of each study programme

Anti-piracy strategy from Maersk was a winning strategy

In collaboration with the CBS Sustainabili-ty Platform the CBS Office for Responsible Management Education arranged an internal competition to identify the best team of stu-dents to represent CBS at the International Business Ethics Case Competition (IBECC) in San Diego later this year The students had to select a business case entailing a challenge with legal financial and ethical aspects and propose a solution to this challenge A jury found the winning team based on a live presentation followed by a QampA session that took place in November 2012

The winners of this unique opportunity were the graduate students Bjoslashrg Ilsoslash Klinkby (MSc IBP) Adam Eithz Kromann (MSc BAP) and Anne Cathrine Gaarde (MSc IBP) They presented a business case on the anti-piracy strategy of Maersk

Winners of the Business Ethics Case Competition

Updates from partner organizations at CBS

18 CSQ

THESIS PARTNERSHIP BETWEEN GRADUATE

STUDENTS AND COMPANIES MATCH-MAKING

On behalf of CBS the Office for Responsible Management Education invited companies and organi-sations to participate in a match-making event with graduate students who were looking to write their thesis within the field of sustainability or social responsibility

Prior to the event that took place on the 6th of February ambitious graduate students were matched with eight very diverse organ-isations all wanting to explore challenge and develop CSR related activities The selection of organisations ranged from Center for So-cialt Ansvar who sought the studentsrsquo advice on how to revitalise their social concepts in corporation with the civic public and pri-vate sector to Wonderful Copenhagen that engaged the students in their aspirations of

retaining Copenhagen as a leading ldquogreenrdquo conference destination This diversity mere-ly reflected the broad-based educational standards that are embodied in the conducts of CBS and enabled students from all study areas to participate With the meeting as the focal point of the event the aim was to in-troduce more students and companies to the possibilities of a thesis partnership On that basis it is the hope that students and organisations will take the initial meeting

further into a collaboration resulting in a thesis that with an analytical and reflected approach hopefully provides valuable insight for all parties The event was indeed a unique opportunity for the students to get the or-ganisationsrsquo unremitting attention but also the organisations expressed their excitement about how the theoretical knowledge and skills of the students could be combined with the specific issues reaching beyond everyday operations of the organisation

PRME

Lene Mette SoslashrensenTel +45 3815 2651E-mail lmsiklcbsdk

PRME Manager

Johanne Duelund Kramer from Wonderful Copenhagen and CBS student Joseacute Bandeirinha from International Marketing and Management

Updates from partner organizations at CBS

19CSQ

A value adding partnership

The match-making event was kick-started by Professor Andreas Rasche who gave a short speech on trends in the field of sustainability and social responsibility Likewise thesis con-sultant Vibeke Ankersborg rounded off the event by guiding both students and organisa-tion representatives in the right direction of obtaining a value adding thesis partnership

By facilitating integration of the theoretical knowledge pool at CBS with real-life busi-ness cases and their challenges this initiative underpins CBSrsquos Responsible Management Education profile ldquoAddressing societal chal-lenges in interaction with business is a key element in our Business in Society strategy and we hope to set up a similar initiative in the futurerdquo Lene Mette Soslashrensen PRME Manager CBS

Being able to engage in a thesis partnership gives us the opportunity to get new and fresh eyes on the challenges and opportunities we face in the aspiration of sus-taining Copenhagenrsquos position as marked leader within sustainable meetings and events ndash and the other way around we see it as a positive contribution to help young students to gain in-depth knowledge on how we actually work with sustainability in practicerdquo

Ulrika Maringrtensson senior communication consultant Wonderful Copenhagen

ldquo

Case Companies

20 CSQ

Update from CBS Centre for Corporate Social Responsibility

cbsCSR celebration10 years anniversaryOn Thursday November 22 2012 CBS Centre for Corporate Social Responsibility (cbsCSR) celebrated its 10 years anniversary The guest list included prominent guests from both academia and the corporate world Head of Department Dorte Salskov-Iversen President Per Holten-Andersen and cbsCSR Director Esben Rahbek Pedersen bid all a warm welcome to an afternoon of inspirational talks and celebration of the Centre

Susanne Stormer followed and initiated her presentation with a brief recap of Novo Nor-diskrsquos history and continuous development of corporate sustainability practices She em-phasized how Novo Nordisk with the help of Professor Ed Freeman has prioritized a close relationship with their stakeholders and learning with them as a means to reach a higher level of corporate sustainability An additional key take-away from Susanne Stormer was the notion of transformational partnerships She argued that corporations NGOs and other stakeholders should use each other to form transformational partner-ships instead of just transactional partner-ships She claimed that in order to address and solve the problems in todayrsquos world the issues have to be addressed at the roots ndash in cooperation with stakeholders

The program had been divided into two ses-sions Each session ended with a panel dis-cussion that gave the audience the opportu-nity to track the developmental trajectory of CSR and participate in the discussion of the future direction of CSR

In the first session which focused on the history of CSR Professor Lucia Reisch from Department of Intercultural Communica-tion and Management CBS Susanne Storm-er VP of Corporate Sustainability at Novo Nordisk and Professor Gail Whiteman from Rotterdam School of Management present-ed their perspectives on the development of CSR up until nowProfessor Lucia Reisch set the stage with an enlightening introduction to the history of sustainable development and emphasized balance on the triple bottom line as key

Professor Gail Whitemanrsquos presentation highlighted both the past and the future of CSR Her main topic was how to deal with planetary boundaries She drew attention to inherent implications of teaching sustaina-bility and CSR at a business school and ar-gued that in order for students and business executives to understand the implications of planetary boundaries and their importance classes should be taught in nature

In the second session Annette Stube Head of Group Sustainability in AP Moller ndash Maersk Simon Pickard Director General at ABIS and Professor Andreas Rasche from cbsCSR presented their views on the future of CSR

Updates from partner organizations at CBS

21CSQ

The topics in the second panel debate evolved around some of the same issues as in the first panel debate The audience was very interested in the educational aspect of CSR and sustainability and a discussion fol-lowed concerning the issues of lsquopreaching to the convertedrsquo Research shows that 75 of CSR courses are not mandatory 1 thus those students and executives who have a natural interest in CSR and sustainability enroll for these courses The speakers agreed that this posed a challenge for the future and that business schools might have to re-invent themselves in this regard They stressed that it is crucial that CSR and sustainability courses become mandatory Also the prac-titioners advocated in-company learning They set forth the argument that it may be a long time before current students will have sufficient impact on the corporate sector but also because the corporate sector and the ac-ademic world can learn from one another

Sum-up of key perspectives for the future

So how has lsquothe business of business really changedrsquo and in what direction From the afternoonrsquos discussions there were two recur-ring topics Susanne Stormer briefly touched upon it when she talked about transforma-tional partnerships Annette Stube and AP

Annette Stube set forth the argument that ldquothe business of business has really changedrdquo She gave an example of how AP Moller ndash Maersk should use their position in the shipping industry to facilitate substantial changes Simon Pickard supported her argu

ment stating that it is not possible for single corporations to make a difference but that clusters of corporations have to collaborate to push changes If corporations do not join forces they risk only making incremental changes Simon Pickard further argued paraphrasing Andrew Pettigrewrsquos argument that in the course of time there has been a conceptual change in the argument for CSR He pointed to the fact that it started out as a moral or philanthropic enterprise and is now perceived as a governance case Simon Pickard pointed to the fact that the future of business is to create shared value ie creat-ing economic value that also creates value for society at large Building on these re-marks Andreas Rasche discussed the future of standards and codes in the field of CSR Emphasizing a variety of case examples he argued that while standards have proliferated in recent years eg certification schemes in the global coffee and apparel industries there is a need to more actively manage the co-ex-istence of these initiatives in order to avoid overlap Rasche also highlighted the pivotal role of consumers who need to acknowledge standards and labels as market signals and factor social and environmental concerns into purchasing decisions

Moller ndash Maersk has it as an integrated and crucial part of their CSR policies and Simon Pickard highlighted how instrumental the-ories are no longer enough The concept of shared value is inescapable and it is what the lsquobusiness of businessrsquo in the early 21st centu-ry is really about

A second topic which also attracted a lot of attention was the importance of continuous education of both lsquothe convertedrsquo but also of opponents of CSR and people who are not aware of the importance of CSR and sustain-ability In-company learning was depicted as a crucial part of the development of CSR and sustainability however a physical change in the teaching settings is also required to meet the approaching environmental challenges

Centre Director Esben Rahbek Pedersen concluded the conference and the winners of the prize of 25000 DKK to participate in the IBECC case competition in San Diego in May 2013 were announced and the celebra-tion of cbsCSR ended with a reception

Thank you to all the speakers moderators and guests for an inspirational afternoon

By Elise Lind Jacobsen and Line Pedini Rasmussen cbsCSR

1Rasche A Gilbert DU and Schedel I (2013) Cross-Disciplinary Ethics Education in MBA Programs Rhetoric or Reality Academy of Management Learning and Education (forthcoming)

Three of the keynote speakers (from left) Professor Gail Whiteman from Rotterdam School of Management VP of Corporate Sustainability at Novo Nordisk Susanne Stormer and Sustaina-bility Professor at CBS Lucia Reisch

Simon Pickard Director General at ABIS

22 CSQ

UPDATE FROM

CBS GOES GREENThe Green Associate Program

2012 was an exciting year for CBS Goes Green with many great achievements One of the new initiatives that was launched in 2012 was the Green Associate Program Here CBS students were able to volunteer in a program to support sustainable behavior among students and staff at CBS More precisely 25 CBS stu-dents put in 30 hours of voluntary work to help with the planning and execution of Green Week - a week consisting of a lineup of successful companies shar-ing their sustainable initiatives and thoughts The overwhelming interest in sustainability and sustain-able business among the students has made it evi-dent that the Green Associate Program should con-tinue in 2013 We at CBS Goes Green look forward to this as well as all of the other initiatives we will be conducting in 2013

The following is an extract of an article that three of the associates wrote themselves This extract shows the associatesrsquo own experience working with CBS Goes Green

What does it mean to be an

associate with CBS Goes Green

In Week 39 CBS turned into a plethora of green initia-tives and events in order to make CBS reach its sustaina-bility goals for 2020 Both students and employees at CBS were asked to become a Green Ambassador to help CBS be smarter greener and better

But many of you may wonder how it is to be one of the people behind the scene As associates we have been help-ing out before and during Green Week in order to establish an event that would reach all corners of CBS This has re-quired both time and effort in order to make things work out but in the end there are also a lot of gains from being an associate

Firstly as an associate you get to expand your network You get to work with people from different studies countries and ages and you also get to talk to many different people while promoting

A bonus about being an associate is also that you get an official certificate which can be attached to your resume This shows that you have put an effort into making Green Week happen

Furthermore by being an associate you feel like you have a larger impact on making CBS a greener place Instead of being an ambassador and only doing the things you can do you get to be the person who raises awareness about sustainability You may influence people to make the right choices and it makes you feel good

Lastly it also gives you a feeling of responsibility because you work under an official part of CBS CBS Goes Green ndash a unit with a clear agenda and a clear vision

By Michael Nguyen Christian Charity and Christian-Philip Lundahl

Updates from partner organizations at CBS

23CSQ

International conference on sustainable biofuels presents latest research

By Barbara Louise Bech Department of Business and Politics CBS

EU Renewable Energy Directive

In 2009 the EU RED set a mandatory target for member states to use a minimum of 10 renewable energy sources in the transport sector by 2020 of which biofuels is expected to be the main contributor This is part of a policy to cut greenhouse gas emissions promote the green technology sector develop rural areas and reduce dependency on fos-sil fuels Due to increasing controversies claiming lack of sustainability in first generation biofuels based on food crops recently the EU pro-posed an amendment to the Directive limiting the share of first gener-ation biofuels to 5 of the targeted 10

The debate quickly zoomed in on the sustainability criteria as outlined in the EU RED drawing attention to the lack of social safeguards The general consensus is that the concept of sustainability is too narrow-ly defined Several case studies (Mozambique Brazil and Indonesia) show that basic labor and human rights of local populations are not protected by RED and the directive is more viewed as an environmen-tal safeguard This discussion raised questions in regard to the effects of RED globally (eg sustainable production in developing countries) and in this context whether EU legislation can have a lsquotrickle downrsquo effect on national standards of nation-states outside the EU In this re-gards one could ask if enforcement at the local level falls under the re-sponsibility of the EU but since first generation biofuels are produced outside the EU it is an important issue for European consumers ndash al-though interest is currently mainly driven by NGOs

On November 19-20 2012 the Copenhagen Biofuels Research Network (COBREN) held an international conference on sustainable biofuels inviting 30 research-ers from around the world to present and discuss their latest research During the two day conference focus was the sustainability criteria of the EU Renewable Energy Directive (RED) voluntary certification schemes and their impacts on sustainability and social safeguards in producer (developing) countries in particular and governance complexity of the biofuel system which has grown considerably over the past decade

Rough guide to biofuelsThere are two types of biofuels biodiesel and ethanol First generation biofuels (1G) are based on food crops and feed stocks such as palm oil soybean and rapeseed used for the production of biodiesel and sugarcane and corn for ethanol The produc-tion of biofuels increased heavily in the 2000s questioning the sustainability of 1G A number of issues have been claimed as key impediments to sustainable biofuel production such as deforestation competition with food production and increasing food prices loss of biodiversity lack of social and environmental safeguards and indirect land use change (ILUC) These contro-versies have led to a call for the promotion of second generation biofuels (2G) which are typically based on agricultural waste (eg straw) plants and forestry residues (also called lignocellu-losic biomassmaterials) However the immediate problem is that there is yet to be developed a market for 2G as they are more costly to produce (require longer and more complex production process)

CBS Sustainability Platform co-director and organizer of the COBREN conference Stefano Ponte doing a presentation

Event

24 CSQ

Voluntary certification schemes

In relation to how standards and certifications can impact sustainable biofuel production discussions pointed to the important difference be-tween mandatory and voluntary schemes As the controversy of sus-tainable biofuels in particular first generation is rolling out special attention has been given to biofuel production competing with food production ILUC value of emissions reduction and environmental and social issues This have off sprung a proliferation in private certifi-cations and during the conference it was discussed intensely whether these schemes have an actual effect on sustainability Depending on the point of view certifications can fill out the holes in legislation and act as a tool to force companies to comply with sustainability crite-ria However the development processes of new certifications may not be inclusive of relevant stakeholders (eg representatives of local populations) Additionally the nature and governance of the networks steering these processes is not always transparent and may favor one interest over the other This intense discussion led to the question of the purpose of certifications Can we use them for anything other than as a CSR PR tool as long as consumer awareness is as low as it is and how do the different regional drivers influence sustainability as a concept The answers to these questions are not easily found and it will be interesting to observe the future development and partnership between public and private sector

Governing the biofuel industry

Within the past decade biodiesel production has risen from below 30PJ in 2000 to 572PJ in 2009 globally and fuel ethanol production has increased from 340PJ to 1540 PJ respectively As the market expands more actors eg governments international organizations civil soci-ety and NGOs private sector networks and companies and profes-sions (biofuel experts and consultants) get involved and play different roles to promote their own agendas Being an emerging industry the structure of the biofuel system shows hybrid forms of governance with many actors As controversies of biofuelsrsquo sustainability develop more issues are added to the agenda giving life to more actors and interests in the governance structure Research shows a shift in power balance as private companies and NGOs increasingly push the agenda The dis-cussions during the conference centered on the complexity of sustain-ability issues calling for mixed governance responses and governance instruments such as standards and certifications which in return need to be followed up with endorsement instruments Given these com-plexities the question is whether the biofuel industry is too difficult to govern as long as the governing systems (for instance the EU) cannot accommodate expectations of all stakeholders

Indirect land use change (ILUC)ILUC is the unintended consequence in terms of more carbon emis-sions due to land use change around the world induced by the expan-sion of croplands for biofuel production When land that could be used to grow food and feed crops is used to grow energy crops this leads to existing agricultural production moving to another area or country where land is converted When this land is cleared and converted to cropland and because natural lands (rainforests and grasslands) store and sequester carbon in their soil and biomass a net increase in GHG emissions can occur Due to this change in the carbon stock of the soil and the biomass ILUC has consequences in the GHG balance of a biofuel Adding to this complexity models for ILUC calculations are not mainstreamed and thus difficult to assess internationally

25CSQ

Mellemfolkeligt Samvirke (MS) or Action Aid Denmark is a Danish NGO founded back in 1944 The

organizations key objective is to fight poverty by ensuring greater political influence for the worldrsquos poor and margin-alized at the local national and international levels MS works to bring about long-term development in the worldrsquos poorest countries focusing especially on education co-

operation and the ability to organize MS mainly works in Africa Read more about the organizationrsquos work

at wwwactionaiddk

Action Aid

A private sector view on the future of sustainable biofuels

By Barbara Louise Bech Department of Business and Politics CBS

nergy security continues to be an eminent concern in a world of finite resources For a long time biofuels have been viewed as

one of the key solutions to replace our dependency on fossil fuels and battle climate change but in recent years controversy has contested the sustainability of first generation biofuels based on food stock Issues such as lack of environmental safeguards causing loss of biodiversi-ty and deforestation and lack of social safeguards ensuring land and labor rights in producer (developing) countries have been claimed as key impediments to sustainable biofuel production Critical observers also argue that the emission savings of biofuel use in compar-ison to fossil fuels can become much smaller (or even disappear) when indirect land use change (ILUC) is included in the calculations Furthermore bi-omass production from food stock is argued to compete with food production and in-creasing food prices

The Danish NGO Action Aid has been engaged in biofuels since 2008 and is par-ticularly involved in protecting womenrsquos rights and preventing land grabs in de-veloping countries ldquoWe are very concerned about land use when it comes to first genera-tion biofuels This relates both to the people who are dependent on the land and to food security We rarely see good combinations where the local populationrsquos needs are taken into consideration The energy crops grown on the local farmerrsquos land donrsquot benefit him and local consumption is essential for developmentrdquo explains Kirsten Hjoslashrnholm Soslashrensen political advisor Action Aid Denmark

It is therefore believed by many that second generation biofuels is the only way forward to avoid competition with food and avert ILUC Next generation biofuels is based on lignocellulosic biomass such as agricultural and household waste and forest residues The Biorefining Alliance represents a cluster of leading Danish companies within the renewable energy sector with an ambition to promote second gener-

ation biofuels and make Denmark a world leader of technology and bi-ofuel productionldquoDenmark has very strong competencies in green tech and as a society we have put a lot of money in its development This is go-ing to be a huge deal globally so we are asking whether Denmark wants to be a customer or a producer What we are working for is of course that we become a lead exporter of technology but also that Denmark produces second generation biofuels commercially Even though we are a small country we cannot settle on selling know-how Denmark also needs to have some industrial productionrdquo says Anne Grete Holmsgaard di-

rector of Biorefining Alliance In her view Denmark needs to keep a firm grip on developing innovation or it will slowly but

steadily move out of the country In this regard she views sustainability criteria for biofuels as an in-

novator and not a hindrance

The Sustainable Biofuels Network (SBN) is another cluster of private companies trying to facilitate the transition from fossil fuels to biofuels in the transport sector For the aviation industry biofuels are considered

to be the only alternative to fossil fuels and the industry firmly believes that biofuels will

survive according to Robert Arendal chairman of SBN ldquoThe aviation industry has set very clear

guidelines for the use of biofuels We are not going to use food based biofuels and we will minimize the use of fresh

water By 2050 our target is to use 50 biofuels in the global aviation so we really need to move fastrdquo he explains adding that living up to sustainability criteria includes being careful about where biofuels are produced ldquoBut it should be produced all over the world and close to the 1600 airports worldwide that account for 95 of all aviationrdquo

he technology for second generation biofuels is already here but the problem is that production costs are too high and there is no market As long as prices are not competitive with conventional fuels it will be difficult to move forward ldquoOne might ask why there is no market The customers are certainly there so if I was in the business of producing

E

As part of the COBREN international conference on sustainable biofuels private sector civil society and academia were invited to give their views on sustainable biofuels at a roundtable discussion at an open public seminar held at DIIS November 19 2012

Event

26 CSQ

SBN is a ldquobreeding groundrdquo and ldquoknowledge centerrdquo for the biofu-els industry where synergies are created between all parties within

the biofuels sector SBN focuses in promoting supporting and enabling the commercial development and use of clean and sustainable biofuels for Heavy Road Transportation Shipping and Aviation Emphasis is put on the importance of global standards for biofuels with local as well as international institutions and decision makers to encourage con-

structive guidelines and rules for the development of biofuels SBN adheres to EUrsquos sustainability criteria SBN is a non-profit asso-

ciation established in 2008 Visit their website for more info at wwwsustainablebiofulsdk

Sustainable Biofuels Network(SBN)

The Biorefining Alliance (BA) was founded December 2011 by DONG Energy Novozymes Haldor Topsoslashe and the

Danish Agriculture and Food Council and is a three-year project to politically promote Denmarkrsquos position in the entire value chain from residues to bio-based products The Alliance has set forth a number of recommendations to achieve a sustainable Danish bio-economy Among other these include (i) that all organic

waste be considered a resource (high-value recycling and storable energy) (ii) reducing the cost of manufacturing 2G

bioethanol and (iii) contemplating the establishment of a national center for sustainable materials

Biorefining Alliance

second generation biofuels I would get started right awayrdquo says Robert Arendal The Biorefining Alliance is working on lowering the costs and recommends a stronger regulatory framework with binding targets as it has been done for the wind industry ldquoThere already is a market for first generation biodiesel which is the least sustainable biofuel We need to make a market for second generation biofuels and we know that binding targets work I donrsquot think it is possible to create a market for the lsquogreen consumerrsquo as you have one for organic food products but I believe that a niche market for HRT (Heavy Road Transport red) such as public bus transport could be a supplementrdquo concludes Anne Grete Holmsgaard

How the future for sustainable biofuels will shape depends on political will to create a market for second generation and the ability of private sector to innovate and bring prices down Oil production is claimed by some to already have peaked and exploring new geographical areas for extraction could be as costly as kick-starting the market for second generation biofuels although much less sustainable As the American ecologist and environmentalist Bill McKibben wrote in his book ldquoDeep Economyrdquo back in 2007

Even before we run out of oil wersquore running out of planetrdquoldquo Bill McKibben

27CSQ

The Transparency-Sustainability NexusA workshop on the practices meanings and tensions of organiza-

tional transparency

n December 5 2012 the Department of Intercultural Communication and Management (ICM) hosted an in-

ternational workshop supported by CBS Sustainability Plat-form and ICM The workshop was organized by Oana Brindusa Albu Mikkel Flyverbom and Hans Krause Hansen respectively PhD Fellow and Associate Professors at ICM The idea of the workshop was spurred by the observation that while ideals of transparency like lsquoopennessrsquo lsquodisclosurersquo and lsquoreportingrsquo are pro-liferating these years the actual construction of transparency within and across organizations is poorly understood Most re-search on transparency is highly normative if not celebratory just as popular discourse about transparency not least in the areas of sustainability and corporate social responsibility is obsessed with ideals of accountability performance and effi-ciency and pervaded by an optimism currently pushed to its extreme with the explosion of new media technologies

But the truth is that we generally know very little about the implications of ideals of transparency when translated into practice in specific issue areas and organizational contexts Importantly each of the contributions to this workshop clear-ly suggested that the contemporary politics of transparency is much more complex contradictory and dynamic than tradi-tionally recognized All papers examined various aspects of the contemporary obsession with transparency and specifically the increasing use of disclosure techniques within and around or-ganizations the rationales or myths underpinning these meas-ures their intended and unintended consequences including implications for identity-making management and govern-ance practices

Clare Birchall initiated the workshop with a paper titled lsquoThe Cultural Politics of Disclosurersquo highlighting how transparency has been positioned as a superior form of disclosure in popular management and organizational literatures and in policy docu-ments In her account the growing preference for transparency is a consequence not only of the positive qualities seen to be intrinsic to transparency itself but also a response to the per-ceived negative characteristics of other forms of disclosure such as gossip scandal and rumor Lars Thoslashger Christensen (with co-author Joep Cornelissen) then analyzed transparency as one of the foundational myths of modernity myths understood here as descriptions of the world in a narrative form which seeks to produce meaning and direction for a community and its members Such lsquoMyths of Transparencyrsquo sustain numerous organizational practices ndash including openness information provision and auditing But as argued by the authors there are conflicting evidence regarding the capacity of such practices to create insights and understandingThat aspirations and techniques of transparency can have seri-ous repercussions was demonstrated by Peter Skaeligrbaeligk (with co-author Mark Christensen) in the paper entitled lsquoAuditing and the purification of blamersquo which analyzed how auditing auditing practices and institutional entities including the po-liticized environments surrounding them are mobilized and participate in blame games and allocation In his paper titled lsquoQuantification transparency and the costs of reassurancersquo Henrik Vollmer analyzed various dimensions of the role of nu-merical records and signaling in generating transparency trust and mistrust

By Hans Krause Hansen Department of Intercultural Communication amp Management

Event

O

28 CSQ

Some of these aspects were also touched upon in the paper lsquoDisrupted Disclosures The Politics of Visibility and Surveil-lance in the Extractive Industriesrsquo by Hans Krause Hansen (with co-author Julie Uldam) which explored the wider field of visibility and surveillance in which contemporary transpar-ency policies are unfolding with examples from the extractive industries Oana Brindusa Albu in her lsquoTransparency and the organizational self everyday politics of identification in Cooperativesrsquo examined the paradoxical effects of values and practices of transparency on collective identity formation pro-cesses drawing upon her ongoing multi-sited fieldwork in co-operatives Under the heading of lsquoThe Improbability of Secrecyrsquo Mark Fenster analyzed the intersections of secrecy and trans-parency with examples from the US government and its efforts to control information which according to the author does not necessarily stop the flow of information Finally Mikkel Fly-verbom and Christina Garsten examined lsquoThe sway of (big) data ndash calculations and advocacy in the name of transparencyrsquo focusing on the operations of data-based forms of corporate lsquotransparency evangelismrsquo and advocacy through revelation including examples from Center for Global Development and Google

In all the workshop was highly successful in investigating not only the historical and mythical foundations of transparency but also the different practices and forms of transparency that currently shape organizations and a wide variety of issue areas It also provided a reminder of the usefulness of investigating a concept of transparency in relationship to a host of other con-cepts such as secrecy myth gossip blame surveillance visi-bility identity information and knowledge The organizers of the workshop wish to thank all workshop participants for their valuable contributions and the CBS Sustainability Platform and ICM for their support

Hans Krause Hansen

Mikkel Flyverbom

Oana Brindusa Albu

ASSOCIATE PROFESSORPHD (ICM)

ASSOCIATE PROFESSORPHD (ICM)

PHD FELLOW (ICM)

29CSQ

Louise Lyngfeldt Gorm Hansen is a PhD Fellow at the Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) She has a back-ground in Chinese Studies from Copenhagen University (BA) the Asian Studies Program at CBS (BSc) and in International Business Stud-ies and Sustainable Business (MSc) from CBS

The aim of her cross-disciplinary PhD project is to explore how the Chinese hydropower sector works with environmental sustainability and more particularly how the concept is understood and performed in the planning phase of a major dam project in the southwestern Chinese province of Yunnan

The aim of the project is to gain a deeper under-standing of how Chinese firms in the renewable energy sector such as hydropower companies understand and value sustainability as well as how such firms tackle the increasing pressure to deliver socially and environmentally balanced solutions to one of Chinarsquos major challenges lowering CO2 emissions in a time with rapidly rising water and energy demands Theoretically the project draws on - and aims to contribute to ndash a combination of Asian Studies and Science and Technology Studies

PHD FocusLouise Lyngfeldt Gorm Hansen

HYDROPOWER

SUSTAINABILITY

30 CSQ

HYDROPOWER

SUSTAINABILITY IN

CHINAy PhD project combines two of my main research interests China and

environmental sustainability I have studied China for a number of years mainly because of an interest in how the Chinese view sus-tainable development So since finishing my masters I have known that I wanted to study how China plan to tackle a sustainable tran-sition in the years to come I saw my chance when CBS announced PhD scholarships in

DanishEuropean-Chinese social science research in collaboration with the newly es-tablished Sino-Danish Center for Education and Research (SDC) and started my PhD in October 2011My PhD project focuses on the Chinese energy sector more specifically the rapidly growing part of the energy sector engaged in renewable energy Here I examine Chinarsquos second largest source of electricity gene-

eration hydropower In recent years China has become increasingly focused on reduc-ing CO2 emissions While some countries such as the US and Australia are decommis-sioning hydropower dams China is looking to large-scale hydropower construction as one of the solutions to a future clean energy supply This means that hydropower devel-opment plays a central role in Chinarsquos sus-tainable transition

However utilization of hydropower is con-troversial not least in China and has met increasing resistance in recent years particu-larly from Chinese and international NGOs the media as well as the scientific commu-nity Critique is most often focused on how or if social and environmental sustainability can be ensured in such large scale projects as the social and environmental impacts of large scale hydropower development are very complex and difficult to measure More gen-erally the viability of relying on hydropow-er as a future source of energy is also being questioned One of the major concerns here is the overarching issue of climate change ie glaciers shrinking and yearly water runoff decreasing This means less stable water flow for hydropower and less water for other pur-poses such as agriculture water supply for down-stream countries etc

By Louise Lyngfeldt Gorm Hansen Asia Research Centre Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) ndash sinodanishcenterdk

M

Picture from SinoHydro promotion material 2011

Research

31CSQ

In contrast to for example the wind power sector in China in which many foreign com-panies have invested the hydropower sector is dominated by a few large state-owned en-terprises Our knowledge of Chinese state-owned enterprises is still limited and there-fore my PhD project is also part of a larger research project at the Asia Research Centre with focus on Chinese state-owned enter-prises and the reform of the public sector in China

In combining these interests my PhD exam-ines how Chinese state-owned enterprises in the hydropower sector tackle the demand to expand hydropower development to help reduce Chinarsquos CO2 emissions while be-ing under increasing pressure to deliver on sustainability principles in the planning and execution of large scale hydropower pro-jects The pressure comes mainly from NGO organizations the media and the scientific community both at home and from abroad I am conducting a case study focused on a specific river in south-western China which has ndash until now ndash not been fully developed for hydropower and the plans for addition-al hydropower dams on the river are still undergoing assessments The project has continually stalled due to disagreements between Chinese government officials at all levels NGOs the media the increasingly deregulated but still state-owned Chinese hydropower companies and the scientif-ic community However the project has very recently been reopened and so will go through another round of assessments in the near future The case is an excellent example of the complexity of hydropower develop-ment decisions in China but it also highlights some of the social and environmental conse-quences of the global push to decrease CO2 emissions

China plays and will continue to play an increasingly important role globally in the years to come However the country also fac-es enormous challenges - not least regarding the environment These challenges also affect economies in Western Europe - for better or worse My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective so

that we here in Europe and in Denmark can more knowledgably and actively engage with China to help solve some of these difficult challenges that eventually affect us all In do-ing this I contribute to gain a better under-standing of the Chinese perspective on envi-ronmental sustainability that can be of use to companies wanting to engage in the Chinese renewable energy sector

My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective rdquoldquo

Picture of the case-river taken by the author in 2012

32 CSQ

FROM BLUEPRINT TO PRACTICE

ENERGY EFFICIENT CONSTRUCTION

By postdoc researcher Satu Reijonen Department of Organization CBS

In the EU almost one third of CO2 emis-sions are attributed to energy used in the construction and use of buildings (FIEC

2007) It is therefore not surprising that the construction sector has recently been subjected to a substantial amount of policy measures to combat its negative effects on climate change In Denmark the state has posed new thresholds for the energy efficien-cy of new buildings including a plan for con-tinuous improvement in the area This far the industry has responded well to these stricter performance requirements In the future re-quirements will rise to levels that are not that easily achieved in the coming years build-ings will have to use 25 less energy than in year 2008 How can these ambitious goals become business as usual

One of the most discussed ways besides add-on technologies such as windmills and solar panels to enhance the energy efficiency of a building is through an energy efficient phys-ical design In practice this means reduction of energy used for heating cooling down and lighting of the building through an optimal orientation and dimensioning of the build-ing

Integrated energy design contrary to add-on technologies can be achieved on a rath-er modest additional budget This should be good news for the sector that today is eco-nomically pressed Indeed today many low energy building projects claim to use the in-tegrated energy design method (IED) when seeking to meet the most ambitious energy related goals In this commentary I wish to discuss some challenges related to the imple-mentation of this design tool

The integrated energy design method sug-gests that one of the main problems in not achieving energy efficiency is that energy related concerns become integrated into the design process too late The method consists of two elements the first of which addresses the need to bring in energy related knowl-edge throughout the design process It sug-gests that design teams ought to be multidis-ciplinary and that architects engineers and experts should work together either co-lo-cated or in a series of workshops Further-more it suggests systematizing energy quali-ty follow-ups into the design process This is all very relevant and inspiring

Oddly enough a closer look on the actual design practices reveals that few seem to ac-tually follow the method of integrated energy design to the point This poses an interest-ing question about the challenges related to the use of such management technologies as vehicles for increased energy efficiency in construction Maybe it is about time practi-tioners and researchers ask themselves what are the boundaries of and challenges related to the use of these tools ndash and what else is required for organizing for more energy effi-cient building design processes

A revolution of relations

Integrated energy design points to the need to bring energy related expertise into the de-sign process at an earlier point In order to achieve this cooperative practices between different professional groups are advocated for Historically energy experts have most-ly been used to respond to rather advanced architectural plans Shared workshops and co-localization suggest a change in these business as usual relations But are they pos-sible and what type of changes do they ac-tually imply in order to function as wished

Research

33CSQ

Satu Reijonen is postdoctoral scholar at the Department of Organization at CBS In her on-going research project she investigates how architects and energy engineers two different profes-sions cooperate and coordinate their work regarding energy related ques-tions in construction design The ways in which relations between and roles of these professions become consti-tuted through socio-material arrange-ments are a central topics in her work Besides studies of work Satu has con-ducted research on environmentally friendly products and markets

ABOUT SATU RAIJONEN

The initiation of this type of new working forms is certainly beneficial for energy effi-cient design However for several reasons they are more difficult to make work than one would assume While it may sound rea-sonable it is after all a tall order Integrating energy related practices into an environment where different visions professions and in-terests meet and the divide between what one profession does is clearly and historically demarcated is demanding While architects need to make room for the intervention of energy experts into the creative work energy experts have to become capable of working creatively and relate to and follow the visual and aesthetic cues from architects In order to work these kind of changes in the profes-sional roles and relations have to resonate with the skills and visions of individual work-ers not only management level design strat-egies It is not surprising that organizational change scholars remind us of the possibility of loose coupling from the strategies placed at the management level (March 1981) What integrated energy design suggests is a kind of a revolution in the ways in which both the architects and the energy engineers envision their role and space of mobility

Linear tools in an unlinear design process

Integrated energy design suggests that the energy performance of the emerging build-ing design be followed up at certain points during the design process The method de-picts a rather mechanistic and linear under-standing of a design process consisting of phases within which iteration may occur While energy related issues may be dis-cussed as quality goals during these phases the method places a lot of emphasis on the check ups performed in the transition from one phase to another Design processes how-ever can also be characterized in a different manner unlinear exploratory and whirl wind type of practices where clear cut phases hardly exist (Akrich 1992 Van de Ven et al 1999) This also applies to the architectural design processes where the object of the de-sign is emergent (Yaneva 2009) This entails that the product the building may change in unexpected ways during any day of the de-sign process If this alternative description of the design processes is viable delegating energy related issues to some predetermined check up episodes may strike a false accord and indeed be contradictory with the aim of enhancing coordination and cooperation between professional groups What happens in between the predetermined checkups may very well be where the energy efficiency of the building becomes configured and where the intervention from the energy experts

would come most needed Perhaps this is why the best performing projects do not blindly follow the steps of the IED method Check ups however and no doubt play a role in verifying and making visible the energy performance for partners outside the design team

Integrated energy design as many other sus-tainability standards and guidelines make visible systematize and legitimize the ex-istence of environmental management and sustainability issues in organizations and work processes In this such way tools create awareness and legitimacy for environmental and sustainability issues The integrated en-ergy design method also suggests a possible way of thinking about what type of design practice might help us to achieve the stricter energy requirements of the future It howev-er falls short in becoming the change agent it suggests This is hardly surprising as a meth-od or a standard of any kind should only be seen as a possibility or as an opening for an inquiry of what the practice could be about Reconfiguring a well established practice is hard work and it would be foolish to trust that a design method would achieve it by itself What the method does is to alert us of the more profound changes in the pro-fessional roles and relations that is needed in order to enable the change However the method due to its rather mechanical under-standing of the design process may come to work against its own ambition of integrating energy issues into the design work In its quest for integration the method defines at which points in time the architectural and the engineering project has to be checked for its energy performance This approach may lead to bringing in energy related concerns in some artificially created points in a design process which may additionally compart-mentalize energy related issues from where the design really happens

Integrated energy design as many other sustainability standards and guidelines make visible systematize and legitimize the existence of environmental management and sustainability issues in organizations and work pro-cessesrdquo

ldquoLiteratureAkrich M (1992) The De-Scription of Technical Objects in Shaping Technology Building Society Studies in Soci-otechnical Change eds WE Bijker and J Law The MIT Press Cambridge Massachusetts pp 205-224

FIEC 2007 The impacts of buildings on climate change httpwwwbuildingsplatformeuepbd_publicationdocFIEC_Memo_p2919pdf on 1222008

March JG (1981) Footnotes to Organizational Change Administrative Science Quarterly vol 26 No 4 pp 563-577

Van de Ven A D Polley R Garud and SVenkataraman (1999) The innovation Journey Oxford Oxford Univer-sity Press

Yaneva A (2009) The making of a building A pragmatist approach to Architecture Bern Peter Lang

More about integrated energy design(IED)

httpwwwintendesigncomosloIntendnsfAttachmentsGuideline_Version_2pdf$FILEGuideline_Version_2pdf

34 CSQ

The climate challenge in

shipping

ldquoGlobal shipping faces two major challenges both of which are caused by its reliance on fossil fuelsrdquo

By Reneacute Taudal Poulsen Department of Innovation amp Organizational Economics

RENEacute TAUDAL POULSEN

ASSOCIATE PROFESSOR DEPARTMENT

OF INNOVATION AND ORGANIZATIONAL

ECONOMICS COPENHAGEN BUSINESS

SCHOOL

orecasts show that the shipping indus-tryrsquos CO2 emissions will most likely continue to rise in the next two to

three decades as demand for world sea-borne trade will expand At present global shipping accounts for approximately 33 per cent of global CO2 emissions but this share will most probably increase in the coming years if many onshore industries succeed in their aims of reducing emission levels

At the same time rapidly rising fuel costs put heavy strain on shipping company budg-ets Historically and until very recently fuel costs were only a minor concern for ship-ping companies but now they often exceed 60 per cent of variable operational costs Fuel savings made through energy efficiency improvements thus represent a win-win sce-nario for the shipping industry and for so-ciety at large They simply make good sense for everyone

Despite the strong incentives for fuel sav-ings numerous studies have demonstrated that shipping fails to implement cost-ef-fective measures to reduce fuel consump-tion Fuel-saving technologies are readily available in the market and in many cases pay-back periods are very short (less than a year) Changes in operational habits which require few if any investments also hold a significant potential for fuel savings

Global shipping thus holds several classic examples of energy-efficiency gaps Gaps occur wherever cost-effective measures to improve energy efficiency fail to materialize The causes for energy efficiency gaps have been a favourite research topic within the field of energy economics for decades and economists sociologists and political scien-tists have been able to identify several means to bridge the gaps However within the mar-itime domain energy efficiency gaps and the climate challenge remain neglected issues Legal barriers

Shipsrsquo fuel consumption rises steeply with speed Hence slow-steaming or just minor speed reductions can lower consumption and emission levels significantly Since oil prices started to rise rapidly a few years ago shipping companies have indeed resorted to various slow-steaming practices and com-panies which succeed in this regard have been able to gain competitive advantages In other words actors in the industry are trying to bridge the energy efficiency gap However and in spite of the strong price signals from the rising fuel prices a potential for fuel sav-ing through slow steaming still remains

FNew CBS research project

A new three year research project at CBS under-

taken by Reneacute Taudal Poulsen for the Department

of Innovation and Organizational Economics will

examine the climate issues bringing insights from

energy economics and innovation management

into the field of shipping economics The project

which is financed by The Danish Maritime Fund

runs from 2012 to 2015 The project asks why en-

ergy efficiency gaps continue to occur in shipping

and how shipping companies and the maritime

industry at large can use innovative business

models and process innovation to turn the climate

challenge and the rising fuel costs into a business

opportunity Energy efficiency gaps occur both

in daily operations and when investments in new

vessels are made This article will briefly present

two examples of energy efficiency gaps from

the operational level and some of the preliminary

findings of the project

References

Jaffe AB and RN Stavins 1994 lsquoThe energy efficiency gap What does it meanrsquo Energy Policy 22 (110) 804-10IMO 2009 Second IMO GHG Study 2009 London International Maritime OrganizationMoriarty P amp D Honnery 2012 lsquoEnergy efficiency Lessons from transportrsquo Energy Policy 46 1ndash3Poulsen Reneacute Taudal 2012 lsquoEmissions and energy efficiency - the twin challenges for shippingrsquo Mercator Maritime Innovation Research and Education MarchJune 447-454

Reneacute Taudal Poulsen is Associate Professor at the Department of Innovation and Organizational Eco-nomics at CBS He is also affliated with the Centre for Shipping Economics and Innovation at CBS Reneacute Taudal Poulsen holds a PhD degree in marine environmental history from the University of Southern Denmark and he has worked within the field of maritime business studies for the last seven years He has published in such journals as Fisheries Research Business History and Scandinavian Economic History Review

His current research intersts concern the environmen-tal challenges faced by the global shipping industry and business model innovation in the maritime domain

Research

35CSQ

It is clear that shipping companies cannot fully bridge the energy efficiency gap alone In fact factors beyond the control of in-dividual shipping companies and various structural or legal barriers prevent shipping from fully realizing the slow steaming po-tential

Port congestion remains a world-wide prob-lem and causes ships to spend remarkably long periods inactive Despite the financial crisis and the large drop in shipping freight markets after 2008 many loaded vessels sit at anchor outside ports waiting for berths In some cases they wait for a few hours In other cases for days weeks or even months Instead of waiting the ships could have re-duced speeds and saved fuel And the de-livery and the loading of the cargo in port would not have been delayed in any way However in many cases shipping companies or ship operators cannot reduce speed in spite of port congestion

Educational barriers

Energy efficiency gaps in shipping are also evident when the fuel consumption levels of sister ships are compared Even though the vessels are identical and operate in the same waters studies have shown that their fuel consumption may differ by several Decisions made by the crews onboard and by managers in the onshore organizations clearly influence the level of fuel consump-tion For instance if a captain selects only very small course deviation margins when coding the autopilot of the ship the shiprsquos rudder will move frequently to keep the ship on the exact course all the time This will slow down the ship and cause higher fuel consumption than if the captain had allowed for slightly wider margins and the wider margins would not have any effect on the safety of the ship Decisions made by the commercial depart-ments eg on how to crew the vessels how to monitor vessel fuel consumption or which new equipment to install onboard may also

have a large impact on fuel efficiency and emission levels If shipping company man-agers can nurture a fuel saving culture this could potentially make a difference Since 2007 or 2008 shipping companies have in-deed started to facilitate such organizational changes but educational barriers remain a problemOnshore truck drivers are now offered fuel saving courses but fuel-saving is not a major part of the traditional curriculum in nautical schools or in the commercial education of shipping trainees For good reasons the nau-tical educations have focused on maritime safety but this has caused them to neglect the climate challenge in shipping and the is-sue of fuel saving In fact no single nauticaltext book on maritime fuel savings has yet been published and according to teachers and students in the nautical schools this serves as an educational barrier to ener-gy-efficiency improvements The technical level of education for commercial employees in shipping companies may also hinder im-provements in energy-efficiency Some com-

mercial shipping employees may not have sufficient training to fully see and acknowl-edge the consequences of their decisions on fuel consumption In short it seems that fuel awareness and the educational systems have responded more slowly to the climate chal-lenge than the rise in fuel prices may other-wise suggest

For shipping to bridge energy-efficiency gaps education ndash both nautical and com-mercial ones ndash clearly is an area to set in Here the potential for innovative solutions is both evident and pertinent Changing educational systems and awareness is no easy task bearing in mind the global nature of the shipping industry and international crewing of the world fleet It is clear howev-er that educational upgrading is necessary for shipping to effectively address the cli-mate challenge effectively

Charter parties between ship-operators and shippers state a specific time of arrival for the vessel and in order to avoid claims ships proceed to port accordingly regardless of berth availability Experiments with new more flexible charter parties which allow for slow steaming in case of port congestion have recently been made Shipping compa-nies have generally been enthusiastic about this flexibility but often shippers remain skeptical Lack of trust between shippers which need the loading of their cargoes as soon as possible and shipping companies may be a cause for this discrepancy Even in cases where the savings made from slow-steaming are split between shipping companies and shippers shippers have re-mained skeptical Port queuing systems may have a role to play here

Many ports including some of the major container iron ore coal and grain ports serve ships on ldquofirst-come first-servedrdquo ba-sis Ships only receive their ldquoticketrdquo in the

waiting line upon their arrival at the port Again lack of trust between the ship-oper-ators shippers and the port authorities may explain this phenomenon Moreover port authorities currently do not have incentives to change queuing practices because they cannot gain a share in the fuel savings made from slow-steaming

The problem is particularly strong in the major tramp shipping segments of tanker and dry cargo shipping where vessels act as ldquotaxis of the seardquo serving numerous shippers and rarely calling at the same ports If the fleet from a shipping company only calls at a particular port once a year and the compa-ny has very short-term relations to individ-ual shippers building trustful relationships between the parties remains a major chal-lenge Solving this problem and realizing the full potential of slow steaming will require systemic innovation in shipping and port systems and further studies are required to identify possible solutions

36 CSQ

The Wind turbine industry -

Emerging global innovation networks in Europe and China

The wind turbine industry has developed into a global network encompassing a large amount of diverse actors within innovation production and installation of wind turbines across the globe

By Stine Haakonsson and Julia Kirch Hollitsch Department of Business amp Politics CBS

market for wind energy Chinese actors have turned China as a location into another im-portant lsquohubrsquo in this network This has led to new forms of innovation collaborations between European and Chinese actors The result has been a complete re-configuration of the industry over the past decade In the International Business and Economic Geog-raphy literatures the development of global production networks in which lead-firms be-come orchestrators of dispersed production

enmark has traditionally played a key role as an lsquoinnovation hubrsquo and com-

panies in Denmark remain among the lead firms within the wind turbine industry Re-cently the industry has reorganized from being located predominantly in the Triad regions (mainly in Europe and the US) to becoming a globally dispersed industry This development can partly be explained by de-velopments in international and national politics Due to the growth of the Chinese

activities in globalized value chains is well established theoretically as well as empiri-cally In the globalization process lead firms relocate production activities to low cost lo-cations by off-shoring and through vertical disintegration and outsourcing to specialized suppliers Producers of wind turbines are no exception However until recently the mar-ket and innovation activities remained con-centrated in Europe and US

With the recent focus on global politics for a post-carbon society the market for wind tur-bines has experienced an immense growth and a high degree of market globalization New locations have developed into main markets One of these is China which since 2010 has been the largest market for wind turbines in the world (in capacity installed) The globalization process in the wind tur-bine can be explained by a combination of offshoring of production by European lead firms mainly through foreign direct invest-ment and establishment of domestic lead firms in emerging markets In 2010 there were four Chinese-owned companies among the top-10 producers of wind turbines as compared to 2003 where all firms on this list were from Europe and the US

D

Julia Kirch Hollitsch

Stine Haakonsson

Stine Haakonsson and Julia Kirch Hollitsch from Depart-

ment of Business and Politics CBS are engaged in the

Sino-Danish Center for Research and Education (SDC)

project on Wind Energy in China Both research on the

current restructuring of industries and firms at the glob-

al level (outsourcing off shoring global value chains)

In particular their research is on 1) the restructuring of

innovation and RampD activities into global innovation net-

works(GINs)2)thechangingroleofemergingmarkets

(ChinaIndiaBrazilSouthAfrica)intheseemergingGINs

and 3) technology transfer and capability building related

to renewable energy

Research

37CSQ

by adapting their products to the Chinese market and through cost-out development activities in the new locations primarily China

As a result the wind industry is today highly knowledge-intensive and internationalized Due to increased attention and investments in sustainable transition policies and car-bon-reducing technology China has over the past decade developed into a high prior-ity investment area for wind turbines Also Chinese companies are upgrading technol-ogy and innovation from the global firms through integration into GINs Moreover the production and innovation networks for wind energy become highly complex and consist of many different suppliers of com-ponents (blades gear boxes control systems bearings) resulting in a variety of network linkages among suppliers of different com-ponents and the wind turbine producers

From our empirical data including more than 40 in-depth interviews collected in 2011 and 2012 in the wind turbines indus-tries in China and Denmark we have identi-fied some very interesting patterns We have identified very different characteristics of the GINs established by the Chinese wind tur-bine industry and the European wind tur

Emerging Global Innovation Networks

Innovation processes are also moving be-yond the boundaries of individual compa-nies and national innovation systems Firms engage in cross-border innovation networks spanning different innovation systems which may be national regional or sectorial in or-der to stay competitive in the global econ-omy Chinese lead firms are entering this scene too The result is globally organized networks of interconnected and integrated functions and operations by firms and non-firm organizations engaged in the develop-ment and diffusion of innovations so-called Global Innovation Networks (GINs) Lead firms internationalize innovation through strategies of exploitation global generation of innovation and global techno-scientific collaborations Chinese wind turbine pro-ducers ndash acknowledging their resource and capability deficiency ndash pursue strategies of innovation network integration through strategies of global generation of innovation These firms link up with specialized Europe-an actors such as core component suppliers through partnerships and networks in or-der to tap into the technology of firms from developed countries and upgrade Mean-while European companies internationalize through exploitation strategies for example

bine industry Although Danish and Chinese actors are experiencing a re-organization of activities and establish networks and globa-linnovation strategies the result is very dif-ferent

The industry from Europe and US

The industry from Europe and the US hosts the lead firms in terms of core technology de-velopment Denmark has traditionally played a key role as lsquoinnovation hubrsquo in technology development and global lead firms such as Vestas and Siemens Windpower (previously Danish lsquoBonusrsquo) took its start already in the 1970s The core competences of the Danish wind turbine innovation system are based on large testing facilities and long track records mainly due to the long time-line of experi-ence The wind industry goes 40 years back and therefore Denmark has a good knowl-edge pool within establishing wind farms (aerodynamics minimizing power loss in energy transmission wind mapping and other installation-related technologies)

38 CSQ

that will make it possible to finance the pro-jects ldquoFrom then on our wind turbine pro-jects developed very fastrdquo(Interview Wind Engineer Chinese Academy of Sciences) Thus this law was a milestone for elevating renewables to a strategic position in China or as expressed by a European lead-firm ldquoWhat drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick offrdquo

Until the turn of the millennium Chinarsquos wind energy industry was largely built on donors acquisition of finished wind turbines and licensed technology from European companies spread on a very small scale into the local industry during the mid 1990s Chi-nese wind turbine technology has evolved from imitation reverse engineering and licensing in the 1980-90s combined with assistance from foreign consultants One example is how DANIDA funded a project in 1986 for Goldwind in Xinjiang which imported 13 units of 150 kW lsquoBonusrsquo (now Siemens Wind Power) turbines

To get beyond the stage of pure imitation several policies have been introduced with the intent to upgrade Chinese manufacturers to obtain indigenous innovative capabilities Policy programs were introduced to enhance Chinese companies to develop wind energy subsidizing wind energy RampD expenditures at varied levels over time establishing a re-newable energy fund and through the ldquo863 Wind Programrdquo under the Tenth Five-Year Plan (2001-2005) Local content require-ments were put in place in which develop-ers of wind energy projects were required to source 70 pct of the content in China These policies ndash which essentially forced foreign manufacturers wishing to sell wind turbines to the Chinese market to establish China-based manufacturing facilities ndash were only removed recently (in 2009) One result was that the foreign companies had to up-grade local suppliers of components

Due to the technological complexity many European (and hereby also the Danish) firms are vertically integrated and have most com-ponents produced in-house or with regular specialized suppliers According to these companies the different parts need to be well adjusted to each other to some extent even co-developed in order to enhance effi-ciency and the lifetime of the wind turbine Likewise the European industry has expe-rienced a concentration of actors with the result that there are only relatively few but large manufacturers in Europe (the larg-est ones are Vestas Siemens Gamesa and Enercon) Together these four companies accounted for about 35 of the global mar-ket in 2010 By seeing the wind turbine as an integrated system these lead firms aim at producing lsquothe Rolls Roycersquo model wind turbines These are strong in terms of qual-ity and standards but generally expensive These firms learn cost-out techniques from their engagement with partners in China

The Chinese Wind Turbine Industry

Today the Chinese wind turbine industry is overly competitive It entails more than 80 wind turbine manufacturers and the Chi-nese market boasts the highest growth rates internationally with an average growth rate of 968 percentages annually in the last three years Several large domestic Chinese wind turbine manufacturers have emerged within the last decade Sinovel and Goldwind take the largest share followed by United Pow-er and Ming Yang just to mention some of them As of the end of 2010 these four were A major driver for the development of the Chinese wind energy market has been the establishment of an institutional context as a comprehensive concerted policy frame-work addressing the development of renewa-ble energies This change in the institutional context was first reflected clearly in the 11th 5-year-plan (2006-2010) which explicitly linked environmental sustainability to the key goal of establishing what was called a harmonious socialist society signalling a socially environmentally and economically sustainable economy With the Renewable Energy Law from 2005 the Chinese wind energy industry really took off as it explicitly seeks to ensure that renewable energy pro-jects have an outlet for their output at prices

Technical barriers and the role of GINs for a post-carbon society

Despite high ambitions in terms of devel-oping innovative capabilities Chinese pro-ducers still produce almost exclusively for the Chinese market However Chinese wind turbine manufacturers have recently started an internationalisation process and some are approaching international markets Not least for tapping into new knowledge

Europe (and Denmark in particular) is per-ceived as a main location from which the Chinese companies can learn more A cou-ple of Chinese companies have already set up RampD centres in Denmark European firms have also initiated RampD centres in new lo-cations primarily China and India In other words GINs can be identified

Our research also points towards important barriers for GINs in the wind turbine in-dustry and for approaching a post-carbon global society Most importantly are the technological barriers intellectual property rights quality issues and issues of limited appropriability of knowledge Further the institutional framework remain relevant for displaying how the sector and the emerging GINs are embedded institutionally socially and technologically Whether actors trans-act knowledge technology and know-how through cooperative innovation activities also depends on how core the technology of a given technology is Still as the market grows in China it seems to have matured in Europe because of changing policies on re-newable energy To sustain the position as a global lsquohubrsquo and world leader in wind tech-nologies there is a strong need for support in Europe as this research really shows how fast the Chinese industry is moving One major result is how important networks are for upgrading companies and it seems that Chinese firms perform better in network strategies and manage to tap into relevant knowledge than the European firms

What drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick off rdquoldquoInterview Wind Engineer Chinese Academy of Sciences

39CSQ

Social Enterprise World

ForumNadine Koumlcher from 180Degrees recounts her experience from the

conference on

Rio de Janeiro Brazil 2012

In the numerous panel debates and parallel track discussion it became clear that Impact Investment is a hot topic among both social entrepreneurs and impact investors a diverse group consisting of corporations founda-tions and potential donors However various obstacles impede a harmonious relationship between the twoSocial enterprises face structural challenges to make themselves more appealing to im-pact investors They have to become more transparent and increase their accountability This includes improving their impact assess-ment and reporting tools However despite much discussion no consensus could be formed on how to optimally conduct im-pact assessment One of the most frequently proposed methodologies involves the use

From the 16th to the 18th of October the CBS Sustainability Platform granted me the opportunity to attend the 5th Social Enter-prise World Forum which took place in Rio de Janeiro Brazil This yearly international conference focuses on social enterprises and their effectiveness in solving social challeng-es The overall theme of the 2012 conference hosted by NESsT was ldquoSocial Enterprise Investing for Impactrdquo Thus for three days over 180 speakers and 650 delegates from 30 different countries shared their experiences regarding impact investment and discussed possibilities to attract new investment by both the public and the private sector for so-cial enterprises

of control groups Story-telling has also been men-tioned to be a powerful tool to provide investors with a proof of outcomesSocial investors are willing to accept returns just below the market rate in exchange for a social return However large profits are still expect-ed and many social enter-prises are afraid of being unable to generate them Social enterprises typically operate on a small scale and are not used to undertake large projects with huge sums of investment given to them Many are too small for social investors to be

attractive as costs are similar for small and large investments although larger invest-ments have a higher payoff

Nichole Echert the CEO of NESsT there-fore pointed out that it is necessary to align expectations between impact investors and social entrepreneurs and to be patient in establishing a relationship between the two groups The expected financial return has to be reasonable close to covering the costs of operation and social returns have to be re-ported to investors by use of clearer criteria

By Nadine Koumlcher Director of Branch Development180 Degrees Consulting Limited

ldquoSocial Enterprise Investing for Impactrdquo

Students

40 CSQ

A highlight of the con-ference was definitely the site visit to a social enterprise project in a recently pacified fave-la It brought further insights on the great variety of social enter-prises that exist in Bra-zil and their missions and struggles We visit-ed a community center at which Comitecirc para

Democratizaccedilao da Informaacutetica (CDI) uses technology to fight poverty and to stimulate entrepreneurship CDI has formed a corpo-rate partnership with Coca Cola which in the same building teaches young locals how to write a CV and find a job Talking to the young locals at the center it became apparent that an increased self-confidence and the in-spiration they get from meeting former now employed participants of the project (eg at Coca Cola) is what they valued most of being part of the class

Participating at the conference was definite-ly a unique and valuable experience I would not want to miss as I tremendously improved my knowledge in the field of social enter-prises through attending the numerous pres-entations and discussions and further met so many inspiring social entrepreneurs impact

In addition it has been stressed that the problem is not a shortage of investment capital (even though the government could promote more impact investment by for instance granting tax breaks) but how to deploy it Social entrepreneurs also have to be aware of the different advantages and dis-advantages of the various types of capital It has to fit their process of establishment and it has therefore been suggested that funds and grants are most optimal in the start-up phase to cover such costs as capacity train-ing There is generally a lack of this early stage financial support Following the initial phase strategic philanthropy money would be most appropriate before impact and final-ly equity investment is sought Furthermore new ways of investment which fit the social enterprise world have to be created replac-ing the current situation of trying to fit social enterprises into the current financial world

investors and students with a genuine inter-est in the field

Participating at the conference was definitely a unique and valuable experience rdquo

ldquo

Social Enterprise World Forum 2013 in

Calgary Canada

The TRICO Charitable Foundation in part-nership with the Social Enterprise Council of Canada and the Social Finance Forum has been selected to host the 6th Annual Social Enterprise World Forum SEWF 2013 will take place October 2-4 2013 in Calgary Al-berta The Forum will present the Canadian social enterprise movement with opportuni-ties to engage learn and share on the inter-national stage

SEWF 2013 will be a gathering of over 1000 Canadian and international delegates who are involved in the social enterprise move-ment where the blending of social and fi-nancial values is core to business Attendees will consist of practitioners (from all sec-tors) funders investors supporters elected officials and public servants from around the world

Nadine Koumlcher

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 12: CBS Sustainability Quarterly 2013 #1

12 CSQ

SUSTAINABILITY AND

DEVELOPMENT COOOPERATIONInterview with Minister for Development Cooperation

Christian Friis Bach

Did you know that 7 out of 10 of the fast growing economies can be found in Africa Or that DANIDA funds a programme in which CBS and other Danish universities work together with universities in Tanzania Ghana and other countries to increase the quality of research and uni-versity-level education in devel-oping countries

CSQ - Elisabeth Crone Linding amp Stefano Ponte sat down with the Dan-ish Minister for Development Co-operation Christian Friis Bach to hear about how the developing world is moving ahead fast ndash and why Denmark needs to keep up in order to stay relevant

I t is not every day that we meet with min-isters on the top floor of Asiatisk Plads

ndash the official home of the Danish Ministry of Foreign Affairs and DANIDA the inter-national development cooperation branch of the Ministry Nevertheless here we are over-looking the busy waters of the Copenhagen canal and looking forward to a long-planned rendezvous with Christian Friis Bach Min-ister of Development Cooperation since the autumn of 2011

Besides spending time in the academic ranks of Copenhagen University and the political spheres of the European Commission the Minister knows a thing or two about the de-veloping world he has previously devoted his

time to positions in DanChurchAid WWF World Wide Fund for Nature MSActionAid and the Danish Ethical Trading Initiative

In its current strategy DANIDA has put a new focus on green growth renewable en-ergy sustainable agriculture and innovative solutions to enable continued access to scarce resources ndash a quite green agenda in fact But how does this resonate in a developing world that is growing very fast According to the Minister perceptions are changing with more democratic political environments be-ing built

ldquoMore and more developing countries see green growth and sustainability not as stum-

bling stones but as building blocks of a fu-ture strong economy They recognize that in a world of natural resource scarcity and increas-ing prices on for example energy they need to adopt a different growth pattern More and more poor countries are buying into this And therefore we now have a unique opportunity for shaping the political framework and ena-bling environment to create more sustainable developmentrdquo

So how does a business school such as CBS fit into this equation What can we offer

This is a key question for us to ask As the Sustainability Platform was born out of the CBS Business in Society strategy we are in-

CSQ Interview

13CSQ

terested in looking for ways to address grand societal challenges such as ensuring sustain-able development

Christian Friis Bach recognizes that CBS as a research and educational institution has a role to play here ndash maybe even a bigger role than we play now Because even though CBS is known and regarded as a very internation-ally oriented university the Minister encour-ages CBS to go even further in sharpening its global commitment and profile

ldquoMany of the problems that we have related to growth and employment in Europe are not to be found in developed countries I hope that CBS continues to engage internationally in order to shape graduates to tackle global chal-lenges For example 7 out of 10 of the worldrsquos fastest growing economies are in Africa and here I would really urge CBS to have an even stronger engagementrdquo

CBS is involved in the Building Stronger Universities in Developing Countries Pro-gramme (BSU) which is a partnership be-tween research and higher education institu-tions in selected developing countries and all the main Danish universities The long-term goal of the initiative is to make the partici-pating institutions stronger by conducting joint research projects that offer knowledge and solutions to localdomestic and global challenges to produce better graduate pro-grams and for universities to play an increas-ing role in the economic social and political development of their own countries How-ever Christian Friis Bach also encouraged close dialogue with a broader set of partner universities in the developing world as an important way for CBS to shape its research and educational efforts and thus remain rele-vant in the future

Christian Friis Bach highlighted

ldquoIt is a big world And the world moves fast And I think the challenges upon our edu-cational system in Denmark are increasing every day When I go to South Korea China Latin America or Africa I see that they look increasingly towards each other for innovative solutions not towards Europe If we need to remain relevant we do have a challenge hererdquo

For example this means looking at the econ-omies in the world that are the most innova-tive These are in many cases in the develop-ing world so this is when CBS should invest when it comes to partnering in research educational development and knowledge exchange for example among faculty and students

The Minister also notes the advantages that can be gained from globalizing our institu-tions much more broadly and working across borders and academic fields for example on

The Building Stronger Universities in Developing Countries initiative amp CBS

ldquoBuilding Stronger Universities in Developing Countriesrdquo is a partnership between research and higher education institutions in developing coun-

tries and Danish universities The long-term goal of the initiative is to make the participating institutions stronger in the sense that they

bull playanincreasingroleintheeconomicsocialandpoliticaldevelopmentofthesocietiesinwhichtheyarelocated

bull functionasnodesofinnovationandknowledgeproductionprovidingsolutionstolocaldomesticandglobalchallenges

bull produceskilledandmotivatedgraduatesthatcancontributetothefurtherdevelopmentofthesocietiesandaddressthechallenges

faced

The ldquoBuilding Stronger Universitiesrdquo initiative has a structure with four thematic platforms Copenhagen Business School contributes to one of

the four platforms under the initiative the Growth and Employment platform which is a partnership between University of Ghana (UG) Kwame

Nkrumah University of Science and Technology Ghana (KNUST) University of Dar es Salaam Tanzania (UDSM) Sokoine University of Agriculture

Tanzania (SUA) and the major Danish universities From CBS Associate Professors Soslashren Jeppesen and Michael Wendelboe Hansen the CBS

Center for Business and Development Studies is part of the project which for example seeks to develop relevant PhD programmes strengthen

growth and employment relevant research activities and research collaboration and disseminate research findings to stakeholders

wwwbsuudorg

Students Sierra Leone (picture from umdk) Photo Joslashrgen Schytte

When I go to South Korea China Latin America or Africa I see that they look increasingly towards each other for innovative solutions not towards Europerdquo

ldquo

14 CSQ

health technology and business develop-ment in cooperation with developing coun-try researchers And we need to be good at a lot more than ldquojustrdquo development coopera-tion ldquoif we want to remain relevant for exam-ple in Africa on sustainable business we can-not afford to send people out who have worked isolated in the development community here in Denmark So instead of seeing development research as a separate discipline it needs to be integrated into everything we dordquo

That is why the Minister argues for more fo-cus on educating graduates that are experts and specialists but not necessarily within development cooperation Instead he says Denmark needs graduates that can develop the best possible solutions for the developing world within energy technology etc ldquoThe fast-growing economies in China Southeast Asia Latin America Africa do not need spe-cial things made for developing markets they need top innovative solutions and high-quality products and we need to be able to offer that to them if we want to remain relevantrdquo

One of the solutions worth repeating is that of partnerships According to the Minister universities need to remember that partner-ships with other research institutions as well as with private companies and organizations can provide greater insight

ldquoYou need not only public-private partner-ships but large-scale multiple partnership Still universities can sometimes behave as isolated entities Of course universities need to focus on the core business of researching and educating students but they will also in-creasingly be challenged to engage in these in-ternational and multiple partnerships This is where you will find some of the most inspiring

About Christian Friis Bach

Born 1966 in Frederiksberg Denmark Married three children Lives on a hobby farm near Ganloslashse

Present officeMinister for Development Cooperation 3 October 2011 ndash

Education1992-1996 PhD International Economics Royal Danish Agricultural University Copenhagen 1986-1992 MSc Agronomy Royal Danish Agricultural University Copen-hagen

Work Experience2010-2011 Special Advisor for EU Commissioner Connie Hedegaard (UN Global Sustainability Panel) 2010-2011 CEO ViewWorld ApS 2009 Affiliated Professor in International Economics and Development at the University of Copenhagen 2005-2010 International Director DanChurchAid 2002 Journalist at the Danish Broadcasting Corporation (DR) 1999-2005 Associate Professor International EconomicsDevelopment Economics Royal Danish Agricultural University (University of Copenha-gen)

Other engagements2010-2011 Member of the Board of the Danish United Nations Associa-tion 2008-2010 Initiator and Board Member of the Danish Initiative for Ethical Trade 2008-2009 Member of the Danish Africa Commission 2007-2011 Member of the Presidium for WWF World Wide Fund for Nature Denmark 2000-2006 Board Member International Institute for Sustainable Develop-ment 1997-2001 Chairman Mellemfolkeligt Samvirke (Danish Association for International Cooperation)

Christian Friis Bach has published a large number of books reports and ar-ticles in newspapers and magazines Please see wwwfriisbachdk for details

15CSQ

In December 180 Degrees Consulting (180DC) finished its third round of pro-bono social impact consulting projects with even more success than in previous semes-ters All consultants showed dedication and motivation by spending a large amount of their spare time to work with socially con-scious organizations in order to help them to improve their social impact

An overcrowded lecture room during the 180DC information meeting at the begin-ning of the semester and the high number of applications to join the consulting projects were evidence of great interest in 180DCrsquos activities Out of the 139 applicants the top 45 were selected in a two-step recruitment process and grouped into teams of five to work on the nine exciting projects lined up in the Fall 2012 semester

All projects involved Danish-based organi-zations with a strong focus on either social andor environmental sustainability The projects however differed vastly One of the consulting teams assisted Engineers Without Borders and Action Aid in developing an investment rationale for the cultivation of farmland belonging to an Indian orphanage as well as assessing the social return of this investment

Another 180DC team worked with Hertha an organization focused on the reverse in-tegration of ordinary people into a commu-nity of mentally challenged Hertha needed assistance with improving their external reporting setup to stakeholders which was achieved by developing useful tools for the organization to measure both the social and cultural impact of their activities Yet another team of consultants helped the International Rehabilitation Council for Torture Victims optimizing their internal processes and thus helping them pursue their vision of a world without torture

During the consulting period 180DC or-ganized several training sessions for the con-sultants of the organization hosted by pro-fessional consultancies and each team was assigned a mentor with expertise specific to the given project The highlight of the semes-ter was the Final Event at which all of the teams presented their projects in front of a large audience comprised of all 180DC con-sultants the 180DC board members as well as mentors clients and a jury consisting of representatives from PwC DI CBS Sustain-ability Platform BCG and VSFA The juryacutes task was to evaluate the consulting projects based on their written report and oral pres-entation Based on the creativity feasibili-ty and impact potential of the projects the chairwoman of the Jury Birgitte Mogensen PwC announced the winner of the 180DC Social Impact Award Team Engineers With-out Borders

All of the 180DC board members have throughout the semester been working hard to constantly improve the organization in or-der to ensure a high quality of the services provided to clients and of the learning ex-perience provided to students With a new extended board in place 180DC is looking forward to continue its successful journey in the upcoming semester which kicked-off in January with two international projects in Chile and Sierra Leone ndash thanks to the sup-port of the CBS Sustainability Platform

by Nadine Koumlcher

UPDATE FROM 180DEGREES180 Degrees Consulting is an international student consultancy that works with growing non-profits helping them achieve a greater social impact

Contactphone no +45 6061 6399e-mail cph180degreesconsultingorg

Updates from partner organizations at CBS

16 CSQ

The past semester was a good one for 360deg Students for Sustainability Not only did our organization grow to nearly 50 members this fall but we were also nominated in the Student category for the CSR Awards 2012 ndash the second year in a row You can watch the nomination video here httpwwwyoutubecomwatchfeature=player_embed-dedampv=6J5mwn7TcYI Although we didnrsquot win the award representatives from 360deg got the chance to participate in the conferencersquos many seminars ndash and not least hear Bill Clin-ton speak360deg also took it to another level with 360deg Academy The project was a huge success with over 250 people signed up for the ex-tracurricular course It shows that there is a clear interest in CSR and sustainability among the students and that 360deg Students

for Sustainability fill an important gap in providing the students with a forum where they can discuss such issues with each oth-er professors and practitioners We have al-ready started planning Academy 2013 which will run in the fall In addition to 360deg Academy 360deg organ-ised several successful events and seminars the past semester 360deg Develop Prize was kick-started in November and has already found some dedicated social entrepreneurs who will join the coming events this spring as well as the final competition 360deg also co-organized events on microfinance (with Danish Forum for Microfinance) and fair-trade (with Fairtrade Maeligrket) We also created a nice Christmas spirit at the CBS campus with our annual Christmas event featuring cookies a fairtrade Christmas tree

and do nations to Red Cross and Verdens SkoveWhile it is important to look back this semester 360deg is focusing on the future By the end of the semester 360deg Students for Sustainability will have changed its name to oikos Copenhagen After becoming part of the international student network oikos in 2011 we believe that changing our name will emphasize our international commitment and will show the students the many oppor-tunities that are available to them through the oikos network You can read more about oikos International and the other 36 chapters around the world by visiting wwwoikos-in-ternationalorg

Christina EkChairwoman of 360deg and soon-to-be President of oikos Copenhagen

UPDATE FROM 360 STUDENTS

360deg Students for Sustainability

360deg Students for Sustainability is a non-profit student organization based at CBS working to enable and inspire students to make responsible and sus-tainable decisions in their future lives and professional careers

Contact Christina Ek tlf 42 39 99 54 mail info360studentsdk

Live show at CSR Awards 2012

(Picture from csrfondendk)

Updates from partner organizations at CBS

17CSQ

UPDATE FROM PRME

New approach by the Curriculum Development

projectThe commitment to the initiative of the UN Principles for Responsible Management Education (PRME) at CBS has been further sustained via a more targeted approach to the development of the curriculum at the undergraduate programmesAs part of the adherence to PRME CBS has launched a Curriculum Development project to integrate responsible management prac-tices into the study programmes and also make these practices more explicit This is an extensive process that recently has been even more focused on the individual content of each of the study programmes A more cus-tomised approach will only strengthen the analyses of syllabi for each core course and increase the content of explicit responsible management

ldquoThe current restructuring of the Service Management bachelor programme and the development of three specialised lines of ed-ucation offer a great opportunity to align the curriculum development with the Principles for Responsible Management adopted by CBS Currently the CBS Office for Respon-sible Management Education and faculty members from CBS are working to identify opportunities to integrate responsible man-agement education into the educational programmerdquo Assistant Professor Adriana

Budeanu BSc in Business Administration and Service Management CBS In collabo-ration with study boards students and fac-ulties the Curriculum Development project enables a targeted approach to the integra-tion of responsible management content in order to comply with the overall structure of each study programme

Anti-piracy strategy from Maersk was a winning strategy

In collaboration with the CBS Sustainabili-ty Platform the CBS Office for Responsible Management Education arranged an internal competition to identify the best team of stu-dents to represent CBS at the International Business Ethics Case Competition (IBECC) in San Diego later this year The students had to select a business case entailing a challenge with legal financial and ethical aspects and propose a solution to this challenge A jury found the winning team based on a live presentation followed by a QampA session that took place in November 2012

The winners of this unique opportunity were the graduate students Bjoslashrg Ilsoslash Klinkby (MSc IBP) Adam Eithz Kromann (MSc BAP) and Anne Cathrine Gaarde (MSc IBP) They presented a business case on the anti-piracy strategy of Maersk

Winners of the Business Ethics Case Competition

Updates from partner organizations at CBS

18 CSQ

THESIS PARTNERSHIP BETWEEN GRADUATE

STUDENTS AND COMPANIES MATCH-MAKING

On behalf of CBS the Office for Responsible Management Education invited companies and organi-sations to participate in a match-making event with graduate students who were looking to write their thesis within the field of sustainability or social responsibility

Prior to the event that took place on the 6th of February ambitious graduate students were matched with eight very diverse organ-isations all wanting to explore challenge and develop CSR related activities The selection of organisations ranged from Center for So-cialt Ansvar who sought the studentsrsquo advice on how to revitalise their social concepts in corporation with the civic public and pri-vate sector to Wonderful Copenhagen that engaged the students in their aspirations of

retaining Copenhagen as a leading ldquogreenrdquo conference destination This diversity mere-ly reflected the broad-based educational standards that are embodied in the conducts of CBS and enabled students from all study areas to participate With the meeting as the focal point of the event the aim was to in-troduce more students and companies to the possibilities of a thesis partnership On that basis it is the hope that students and organisations will take the initial meeting

further into a collaboration resulting in a thesis that with an analytical and reflected approach hopefully provides valuable insight for all parties The event was indeed a unique opportunity for the students to get the or-ganisationsrsquo unremitting attention but also the organisations expressed their excitement about how the theoretical knowledge and skills of the students could be combined with the specific issues reaching beyond everyday operations of the organisation

PRME

Lene Mette SoslashrensenTel +45 3815 2651E-mail lmsiklcbsdk

PRME Manager

Johanne Duelund Kramer from Wonderful Copenhagen and CBS student Joseacute Bandeirinha from International Marketing and Management

Updates from partner organizations at CBS

19CSQ

A value adding partnership

The match-making event was kick-started by Professor Andreas Rasche who gave a short speech on trends in the field of sustainability and social responsibility Likewise thesis con-sultant Vibeke Ankersborg rounded off the event by guiding both students and organisa-tion representatives in the right direction of obtaining a value adding thesis partnership

By facilitating integration of the theoretical knowledge pool at CBS with real-life busi-ness cases and their challenges this initiative underpins CBSrsquos Responsible Management Education profile ldquoAddressing societal chal-lenges in interaction with business is a key element in our Business in Society strategy and we hope to set up a similar initiative in the futurerdquo Lene Mette Soslashrensen PRME Manager CBS

Being able to engage in a thesis partnership gives us the opportunity to get new and fresh eyes on the challenges and opportunities we face in the aspiration of sus-taining Copenhagenrsquos position as marked leader within sustainable meetings and events ndash and the other way around we see it as a positive contribution to help young students to gain in-depth knowledge on how we actually work with sustainability in practicerdquo

Ulrika Maringrtensson senior communication consultant Wonderful Copenhagen

ldquo

Case Companies

20 CSQ

Update from CBS Centre for Corporate Social Responsibility

cbsCSR celebration10 years anniversaryOn Thursday November 22 2012 CBS Centre for Corporate Social Responsibility (cbsCSR) celebrated its 10 years anniversary The guest list included prominent guests from both academia and the corporate world Head of Department Dorte Salskov-Iversen President Per Holten-Andersen and cbsCSR Director Esben Rahbek Pedersen bid all a warm welcome to an afternoon of inspirational talks and celebration of the Centre

Susanne Stormer followed and initiated her presentation with a brief recap of Novo Nor-diskrsquos history and continuous development of corporate sustainability practices She em-phasized how Novo Nordisk with the help of Professor Ed Freeman has prioritized a close relationship with their stakeholders and learning with them as a means to reach a higher level of corporate sustainability An additional key take-away from Susanne Stormer was the notion of transformational partnerships She argued that corporations NGOs and other stakeholders should use each other to form transformational partner-ships instead of just transactional partner-ships She claimed that in order to address and solve the problems in todayrsquos world the issues have to be addressed at the roots ndash in cooperation with stakeholders

The program had been divided into two ses-sions Each session ended with a panel dis-cussion that gave the audience the opportu-nity to track the developmental trajectory of CSR and participate in the discussion of the future direction of CSR

In the first session which focused on the history of CSR Professor Lucia Reisch from Department of Intercultural Communica-tion and Management CBS Susanne Storm-er VP of Corporate Sustainability at Novo Nordisk and Professor Gail Whiteman from Rotterdam School of Management present-ed their perspectives on the development of CSR up until nowProfessor Lucia Reisch set the stage with an enlightening introduction to the history of sustainable development and emphasized balance on the triple bottom line as key

Professor Gail Whitemanrsquos presentation highlighted both the past and the future of CSR Her main topic was how to deal with planetary boundaries She drew attention to inherent implications of teaching sustaina-bility and CSR at a business school and ar-gued that in order for students and business executives to understand the implications of planetary boundaries and their importance classes should be taught in nature

In the second session Annette Stube Head of Group Sustainability in AP Moller ndash Maersk Simon Pickard Director General at ABIS and Professor Andreas Rasche from cbsCSR presented their views on the future of CSR

Updates from partner organizations at CBS

21CSQ

The topics in the second panel debate evolved around some of the same issues as in the first panel debate The audience was very interested in the educational aspect of CSR and sustainability and a discussion fol-lowed concerning the issues of lsquopreaching to the convertedrsquo Research shows that 75 of CSR courses are not mandatory 1 thus those students and executives who have a natural interest in CSR and sustainability enroll for these courses The speakers agreed that this posed a challenge for the future and that business schools might have to re-invent themselves in this regard They stressed that it is crucial that CSR and sustainability courses become mandatory Also the prac-titioners advocated in-company learning They set forth the argument that it may be a long time before current students will have sufficient impact on the corporate sector but also because the corporate sector and the ac-ademic world can learn from one another

Sum-up of key perspectives for the future

So how has lsquothe business of business really changedrsquo and in what direction From the afternoonrsquos discussions there were two recur-ring topics Susanne Stormer briefly touched upon it when she talked about transforma-tional partnerships Annette Stube and AP

Annette Stube set forth the argument that ldquothe business of business has really changedrdquo She gave an example of how AP Moller ndash Maersk should use their position in the shipping industry to facilitate substantial changes Simon Pickard supported her argu

ment stating that it is not possible for single corporations to make a difference but that clusters of corporations have to collaborate to push changes If corporations do not join forces they risk only making incremental changes Simon Pickard further argued paraphrasing Andrew Pettigrewrsquos argument that in the course of time there has been a conceptual change in the argument for CSR He pointed to the fact that it started out as a moral or philanthropic enterprise and is now perceived as a governance case Simon Pickard pointed to the fact that the future of business is to create shared value ie creat-ing economic value that also creates value for society at large Building on these re-marks Andreas Rasche discussed the future of standards and codes in the field of CSR Emphasizing a variety of case examples he argued that while standards have proliferated in recent years eg certification schemes in the global coffee and apparel industries there is a need to more actively manage the co-ex-istence of these initiatives in order to avoid overlap Rasche also highlighted the pivotal role of consumers who need to acknowledge standards and labels as market signals and factor social and environmental concerns into purchasing decisions

Moller ndash Maersk has it as an integrated and crucial part of their CSR policies and Simon Pickard highlighted how instrumental the-ories are no longer enough The concept of shared value is inescapable and it is what the lsquobusiness of businessrsquo in the early 21st centu-ry is really about

A second topic which also attracted a lot of attention was the importance of continuous education of both lsquothe convertedrsquo but also of opponents of CSR and people who are not aware of the importance of CSR and sustain-ability In-company learning was depicted as a crucial part of the development of CSR and sustainability however a physical change in the teaching settings is also required to meet the approaching environmental challenges

Centre Director Esben Rahbek Pedersen concluded the conference and the winners of the prize of 25000 DKK to participate in the IBECC case competition in San Diego in May 2013 were announced and the celebra-tion of cbsCSR ended with a reception

Thank you to all the speakers moderators and guests for an inspirational afternoon

By Elise Lind Jacobsen and Line Pedini Rasmussen cbsCSR

1Rasche A Gilbert DU and Schedel I (2013) Cross-Disciplinary Ethics Education in MBA Programs Rhetoric or Reality Academy of Management Learning and Education (forthcoming)

Three of the keynote speakers (from left) Professor Gail Whiteman from Rotterdam School of Management VP of Corporate Sustainability at Novo Nordisk Susanne Stormer and Sustaina-bility Professor at CBS Lucia Reisch

Simon Pickard Director General at ABIS

22 CSQ

UPDATE FROM

CBS GOES GREENThe Green Associate Program

2012 was an exciting year for CBS Goes Green with many great achievements One of the new initiatives that was launched in 2012 was the Green Associate Program Here CBS students were able to volunteer in a program to support sustainable behavior among students and staff at CBS More precisely 25 CBS stu-dents put in 30 hours of voluntary work to help with the planning and execution of Green Week - a week consisting of a lineup of successful companies shar-ing their sustainable initiatives and thoughts The overwhelming interest in sustainability and sustain-able business among the students has made it evi-dent that the Green Associate Program should con-tinue in 2013 We at CBS Goes Green look forward to this as well as all of the other initiatives we will be conducting in 2013

The following is an extract of an article that three of the associates wrote themselves This extract shows the associatesrsquo own experience working with CBS Goes Green

What does it mean to be an

associate with CBS Goes Green

In Week 39 CBS turned into a plethora of green initia-tives and events in order to make CBS reach its sustaina-bility goals for 2020 Both students and employees at CBS were asked to become a Green Ambassador to help CBS be smarter greener and better

But many of you may wonder how it is to be one of the people behind the scene As associates we have been help-ing out before and during Green Week in order to establish an event that would reach all corners of CBS This has re-quired both time and effort in order to make things work out but in the end there are also a lot of gains from being an associate

Firstly as an associate you get to expand your network You get to work with people from different studies countries and ages and you also get to talk to many different people while promoting

A bonus about being an associate is also that you get an official certificate which can be attached to your resume This shows that you have put an effort into making Green Week happen

Furthermore by being an associate you feel like you have a larger impact on making CBS a greener place Instead of being an ambassador and only doing the things you can do you get to be the person who raises awareness about sustainability You may influence people to make the right choices and it makes you feel good

Lastly it also gives you a feeling of responsibility because you work under an official part of CBS CBS Goes Green ndash a unit with a clear agenda and a clear vision

By Michael Nguyen Christian Charity and Christian-Philip Lundahl

Updates from partner organizations at CBS

23CSQ

International conference on sustainable biofuels presents latest research

By Barbara Louise Bech Department of Business and Politics CBS

EU Renewable Energy Directive

In 2009 the EU RED set a mandatory target for member states to use a minimum of 10 renewable energy sources in the transport sector by 2020 of which biofuels is expected to be the main contributor This is part of a policy to cut greenhouse gas emissions promote the green technology sector develop rural areas and reduce dependency on fos-sil fuels Due to increasing controversies claiming lack of sustainability in first generation biofuels based on food crops recently the EU pro-posed an amendment to the Directive limiting the share of first gener-ation biofuels to 5 of the targeted 10

The debate quickly zoomed in on the sustainability criteria as outlined in the EU RED drawing attention to the lack of social safeguards The general consensus is that the concept of sustainability is too narrow-ly defined Several case studies (Mozambique Brazil and Indonesia) show that basic labor and human rights of local populations are not protected by RED and the directive is more viewed as an environmen-tal safeguard This discussion raised questions in regard to the effects of RED globally (eg sustainable production in developing countries) and in this context whether EU legislation can have a lsquotrickle downrsquo effect on national standards of nation-states outside the EU In this re-gards one could ask if enforcement at the local level falls under the re-sponsibility of the EU but since first generation biofuels are produced outside the EU it is an important issue for European consumers ndash al-though interest is currently mainly driven by NGOs

On November 19-20 2012 the Copenhagen Biofuels Research Network (COBREN) held an international conference on sustainable biofuels inviting 30 research-ers from around the world to present and discuss their latest research During the two day conference focus was the sustainability criteria of the EU Renewable Energy Directive (RED) voluntary certification schemes and their impacts on sustainability and social safeguards in producer (developing) countries in particular and governance complexity of the biofuel system which has grown considerably over the past decade

Rough guide to biofuelsThere are two types of biofuels biodiesel and ethanol First generation biofuels (1G) are based on food crops and feed stocks such as palm oil soybean and rapeseed used for the production of biodiesel and sugarcane and corn for ethanol The produc-tion of biofuels increased heavily in the 2000s questioning the sustainability of 1G A number of issues have been claimed as key impediments to sustainable biofuel production such as deforestation competition with food production and increasing food prices loss of biodiversity lack of social and environmental safeguards and indirect land use change (ILUC) These contro-versies have led to a call for the promotion of second generation biofuels (2G) which are typically based on agricultural waste (eg straw) plants and forestry residues (also called lignocellu-losic biomassmaterials) However the immediate problem is that there is yet to be developed a market for 2G as they are more costly to produce (require longer and more complex production process)

CBS Sustainability Platform co-director and organizer of the COBREN conference Stefano Ponte doing a presentation

Event

24 CSQ

Voluntary certification schemes

In relation to how standards and certifications can impact sustainable biofuel production discussions pointed to the important difference be-tween mandatory and voluntary schemes As the controversy of sus-tainable biofuels in particular first generation is rolling out special attention has been given to biofuel production competing with food production ILUC value of emissions reduction and environmental and social issues This have off sprung a proliferation in private certifi-cations and during the conference it was discussed intensely whether these schemes have an actual effect on sustainability Depending on the point of view certifications can fill out the holes in legislation and act as a tool to force companies to comply with sustainability crite-ria However the development processes of new certifications may not be inclusive of relevant stakeholders (eg representatives of local populations) Additionally the nature and governance of the networks steering these processes is not always transparent and may favor one interest over the other This intense discussion led to the question of the purpose of certifications Can we use them for anything other than as a CSR PR tool as long as consumer awareness is as low as it is and how do the different regional drivers influence sustainability as a concept The answers to these questions are not easily found and it will be interesting to observe the future development and partnership between public and private sector

Governing the biofuel industry

Within the past decade biodiesel production has risen from below 30PJ in 2000 to 572PJ in 2009 globally and fuel ethanol production has increased from 340PJ to 1540 PJ respectively As the market expands more actors eg governments international organizations civil soci-ety and NGOs private sector networks and companies and profes-sions (biofuel experts and consultants) get involved and play different roles to promote their own agendas Being an emerging industry the structure of the biofuel system shows hybrid forms of governance with many actors As controversies of biofuelsrsquo sustainability develop more issues are added to the agenda giving life to more actors and interests in the governance structure Research shows a shift in power balance as private companies and NGOs increasingly push the agenda The dis-cussions during the conference centered on the complexity of sustain-ability issues calling for mixed governance responses and governance instruments such as standards and certifications which in return need to be followed up with endorsement instruments Given these com-plexities the question is whether the biofuel industry is too difficult to govern as long as the governing systems (for instance the EU) cannot accommodate expectations of all stakeholders

Indirect land use change (ILUC)ILUC is the unintended consequence in terms of more carbon emis-sions due to land use change around the world induced by the expan-sion of croplands for biofuel production When land that could be used to grow food and feed crops is used to grow energy crops this leads to existing agricultural production moving to another area or country where land is converted When this land is cleared and converted to cropland and because natural lands (rainforests and grasslands) store and sequester carbon in their soil and biomass a net increase in GHG emissions can occur Due to this change in the carbon stock of the soil and the biomass ILUC has consequences in the GHG balance of a biofuel Adding to this complexity models for ILUC calculations are not mainstreamed and thus difficult to assess internationally

25CSQ

Mellemfolkeligt Samvirke (MS) or Action Aid Denmark is a Danish NGO founded back in 1944 The

organizations key objective is to fight poverty by ensuring greater political influence for the worldrsquos poor and margin-alized at the local national and international levels MS works to bring about long-term development in the worldrsquos poorest countries focusing especially on education co-

operation and the ability to organize MS mainly works in Africa Read more about the organizationrsquos work

at wwwactionaiddk

Action Aid

A private sector view on the future of sustainable biofuels

By Barbara Louise Bech Department of Business and Politics CBS

nergy security continues to be an eminent concern in a world of finite resources For a long time biofuels have been viewed as

one of the key solutions to replace our dependency on fossil fuels and battle climate change but in recent years controversy has contested the sustainability of first generation biofuels based on food stock Issues such as lack of environmental safeguards causing loss of biodiversi-ty and deforestation and lack of social safeguards ensuring land and labor rights in producer (developing) countries have been claimed as key impediments to sustainable biofuel production Critical observers also argue that the emission savings of biofuel use in compar-ison to fossil fuels can become much smaller (or even disappear) when indirect land use change (ILUC) is included in the calculations Furthermore bi-omass production from food stock is argued to compete with food production and in-creasing food prices

The Danish NGO Action Aid has been engaged in biofuels since 2008 and is par-ticularly involved in protecting womenrsquos rights and preventing land grabs in de-veloping countries ldquoWe are very concerned about land use when it comes to first genera-tion biofuels This relates both to the people who are dependent on the land and to food security We rarely see good combinations where the local populationrsquos needs are taken into consideration The energy crops grown on the local farmerrsquos land donrsquot benefit him and local consumption is essential for developmentrdquo explains Kirsten Hjoslashrnholm Soslashrensen political advisor Action Aid Denmark

It is therefore believed by many that second generation biofuels is the only way forward to avoid competition with food and avert ILUC Next generation biofuels is based on lignocellulosic biomass such as agricultural and household waste and forest residues The Biorefining Alliance represents a cluster of leading Danish companies within the renewable energy sector with an ambition to promote second gener-

ation biofuels and make Denmark a world leader of technology and bi-ofuel productionldquoDenmark has very strong competencies in green tech and as a society we have put a lot of money in its development This is go-ing to be a huge deal globally so we are asking whether Denmark wants to be a customer or a producer What we are working for is of course that we become a lead exporter of technology but also that Denmark produces second generation biofuels commercially Even though we are a small country we cannot settle on selling know-how Denmark also needs to have some industrial productionrdquo says Anne Grete Holmsgaard di-

rector of Biorefining Alliance In her view Denmark needs to keep a firm grip on developing innovation or it will slowly but

steadily move out of the country In this regard she views sustainability criteria for biofuels as an in-

novator and not a hindrance

The Sustainable Biofuels Network (SBN) is another cluster of private companies trying to facilitate the transition from fossil fuels to biofuels in the transport sector For the aviation industry biofuels are considered

to be the only alternative to fossil fuels and the industry firmly believes that biofuels will

survive according to Robert Arendal chairman of SBN ldquoThe aviation industry has set very clear

guidelines for the use of biofuels We are not going to use food based biofuels and we will minimize the use of fresh

water By 2050 our target is to use 50 biofuels in the global aviation so we really need to move fastrdquo he explains adding that living up to sustainability criteria includes being careful about where biofuels are produced ldquoBut it should be produced all over the world and close to the 1600 airports worldwide that account for 95 of all aviationrdquo

he technology for second generation biofuels is already here but the problem is that production costs are too high and there is no market As long as prices are not competitive with conventional fuels it will be difficult to move forward ldquoOne might ask why there is no market The customers are certainly there so if I was in the business of producing

E

As part of the COBREN international conference on sustainable biofuels private sector civil society and academia were invited to give their views on sustainable biofuels at a roundtable discussion at an open public seminar held at DIIS November 19 2012

Event

26 CSQ

SBN is a ldquobreeding groundrdquo and ldquoknowledge centerrdquo for the biofu-els industry where synergies are created between all parties within

the biofuels sector SBN focuses in promoting supporting and enabling the commercial development and use of clean and sustainable biofuels for Heavy Road Transportation Shipping and Aviation Emphasis is put on the importance of global standards for biofuels with local as well as international institutions and decision makers to encourage con-

structive guidelines and rules for the development of biofuels SBN adheres to EUrsquos sustainability criteria SBN is a non-profit asso-

ciation established in 2008 Visit their website for more info at wwwsustainablebiofulsdk

Sustainable Biofuels Network(SBN)

The Biorefining Alliance (BA) was founded December 2011 by DONG Energy Novozymes Haldor Topsoslashe and the

Danish Agriculture and Food Council and is a three-year project to politically promote Denmarkrsquos position in the entire value chain from residues to bio-based products The Alliance has set forth a number of recommendations to achieve a sustainable Danish bio-economy Among other these include (i) that all organic

waste be considered a resource (high-value recycling and storable energy) (ii) reducing the cost of manufacturing 2G

bioethanol and (iii) contemplating the establishment of a national center for sustainable materials

Biorefining Alliance

second generation biofuels I would get started right awayrdquo says Robert Arendal The Biorefining Alliance is working on lowering the costs and recommends a stronger regulatory framework with binding targets as it has been done for the wind industry ldquoThere already is a market for first generation biodiesel which is the least sustainable biofuel We need to make a market for second generation biofuels and we know that binding targets work I donrsquot think it is possible to create a market for the lsquogreen consumerrsquo as you have one for organic food products but I believe that a niche market for HRT (Heavy Road Transport red) such as public bus transport could be a supplementrdquo concludes Anne Grete Holmsgaard

How the future for sustainable biofuels will shape depends on political will to create a market for second generation and the ability of private sector to innovate and bring prices down Oil production is claimed by some to already have peaked and exploring new geographical areas for extraction could be as costly as kick-starting the market for second generation biofuels although much less sustainable As the American ecologist and environmentalist Bill McKibben wrote in his book ldquoDeep Economyrdquo back in 2007

Even before we run out of oil wersquore running out of planetrdquoldquo Bill McKibben

27CSQ

The Transparency-Sustainability NexusA workshop on the practices meanings and tensions of organiza-

tional transparency

n December 5 2012 the Department of Intercultural Communication and Management (ICM) hosted an in-

ternational workshop supported by CBS Sustainability Plat-form and ICM The workshop was organized by Oana Brindusa Albu Mikkel Flyverbom and Hans Krause Hansen respectively PhD Fellow and Associate Professors at ICM The idea of the workshop was spurred by the observation that while ideals of transparency like lsquoopennessrsquo lsquodisclosurersquo and lsquoreportingrsquo are pro-liferating these years the actual construction of transparency within and across organizations is poorly understood Most re-search on transparency is highly normative if not celebratory just as popular discourse about transparency not least in the areas of sustainability and corporate social responsibility is obsessed with ideals of accountability performance and effi-ciency and pervaded by an optimism currently pushed to its extreme with the explosion of new media technologies

But the truth is that we generally know very little about the implications of ideals of transparency when translated into practice in specific issue areas and organizational contexts Importantly each of the contributions to this workshop clear-ly suggested that the contemporary politics of transparency is much more complex contradictory and dynamic than tradi-tionally recognized All papers examined various aspects of the contemporary obsession with transparency and specifically the increasing use of disclosure techniques within and around or-ganizations the rationales or myths underpinning these meas-ures their intended and unintended consequences including implications for identity-making management and govern-ance practices

Clare Birchall initiated the workshop with a paper titled lsquoThe Cultural Politics of Disclosurersquo highlighting how transparency has been positioned as a superior form of disclosure in popular management and organizational literatures and in policy docu-ments In her account the growing preference for transparency is a consequence not only of the positive qualities seen to be intrinsic to transparency itself but also a response to the per-ceived negative characteristics of other forms of disclosure such as gossip scandal and rumor Lars Thoslashger Christensen (with co-author Joep Cornelissen) then analyzed transparency as one of the foundational myths of modernity myths understood here as descriptions of the world in a narrative form which seeks to produce meaning and direction for a community and its members Such lsquoMyths of Transparencyrsquo sustain numerous organizational practices ndash including openness information provision and auditing But as argued by the authors there are conflicting evidence regarding the capacity of such practices to create insights and understandingThat aspirations and techniques of transparency can have seri-ous repercussions was demonstrated by Peter Skaeligrbaeligk (with co-author Mark Christensen) in the paper entitled lsquoAuditing and the purification of blamersquo which analyzed how auditing auditing practices and institutional entities including the po-liticized environments surrounding them are mobilized and participate in blame games and allocation In his paper titled lsquoQuantification transparency and the costs of reassurancersquo Henrik Vollmer analyzed various dimensions of the role of nu-merical records and signaling in generating transparency trust and mistrust

By Hans Krause Hansen Department of Intercultural Communication amp Management

Event

O

28 CSQ

Some of these aspects were also touched upon in the paper lsquoDisrupted Disclosures The Politics of Visibility and Surveil-lance in the Extractive Industriesrsquo by Hans Krause Hansen (with co-author Julie Uldam) which explored the wider field of visibility and surveillance in which contemporary transpar-ency policies are unfolding with examples from the extractive industries Oana Brindusa Albu in her lsquoTransparency and the organizational self everyday politics of identification in Cooperativesrsquo examined the paradoxical effects of values and practices of transparency on collective identity formation pro-cesses drawing upon her ongoing multi-sited fieldwork in co-operatives Under the heading of lsquoThe Improbability of Secrecyrsquo Mark Fenster analyzed the intersections of secrecy and trans-parency with examples from the US government and its efforts to control information which according to the author does not necessarily stop the flow of information Finally Mikkel Fly-verbom and Christina Garsten examined lsquoThe sway of (big) data ndash calculations and advocacy in the name of transparencyrsquo focusing on the operations of data-based forms of corporate lsquotransparency evangelismrsquo and advocacy through revelation including examples from Center for Global Development and Google

In all the workshop was highly successful in investigating not only the historical and mythical foundations of transparency but also the different practices and forms of transparency that currently shape organizations and a wide variety of issue areas It also provided a reminder of the usefulness of investigating a concept of transparency in relationship to a host of other con-cepts such as secrecy myth gossip blame surveillance visi-bility identity information and knowledge The organizers of the workshop wish to thank all workshop participants for their valuable contributions and the CBS Sustainability Platform and ICM for their support

Hans Krause Hansen

Mikkel Flyverbom

Oana Brindusa Albu

ASSOCIATE PROFESSORPHD (ICM)

ASSOCIATE PROFESSORPHD (ICM)

PHD FELLOW (ICM)

29CSQ

Louise Lyngfeldt Gorm Hansen is a PhD Fellow at the Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) She has a back-ground in Chinese Studies from Copenhagen University (BA) the Asian Studies Program at CBS (BSc) and in International Business Stud-ies and Sustainable Business (MSc) from CBS

The aim of her cross-disciplinary PhD project is to explore how the Chinese hydropower sector works with environmental sustainability and more particularly how the concept is understood and performed in the planning phase of a major dam project in the southwestern Chinese province of Yunnan

The aim of the project is to gain a deeper under-standing of how Chinese firms in the renewable energy sector such as hydropower companies understand and value sustainability as well as how such firms tackle the increasing pressure to deliver socially and environmentally balanced solutions to one of Chinarsquos major challenges lowering CO2 emissions in a time with rapidly rising water and energy demands Theoretically the project draws on - and aims to contribute to ndash a combination of Asian Studies and Science and Technology Studies

PHD FocusLouise Lyngfeldt Gorm Hansen

HYDROPOWER

SUSTAINABILITY

30 CSQ

HYDROPOWER

SUSTAINABILITY IN

CHINAy PhD project combines two of my main research interests China and

environmental sustainability I have studied China for a number of years mainly because of an interest in how the Chinese view sus-tainable development So since finishing my masters I have known that I wanted to study how China plan to tackle a sustainable tran-sition in the years to come I saw my chance when CBS announced PhD scholarships in

DanishEuropean-Chinese social science research in collaboration with the newly es-tablished Sino-Danish Center for Education and Research (SDC) and started my PhD in October 2011My PhD project focuses on the Chinese energy sector more specifically the rapidly growing part of the energy sector engaged in renewable energy Here I examine Chinarsquos second largest source of electricity gene-

eration hydropower In recent years China has become increasingly focused on reduc-ing CO2 emissions While some countries such as the US and Australia are decommis-sioning hydropower dams China is looking to large-scale hydropower construction as one of the solutions to a future clean energy supply This means that hydropower devel-opment plays a central role in Chinarsquos sus-tainable transition

However utilization of hydropower is con-troversial not least in China and has met increasing resistance in recent years particu-larly from Chinese and international NGOs the media as well as the scientific commu-nity Critique is most often focused on how or if social and environmental sustainability can be ensured in such large scale projects as the social and environmental impacts of large scale hydropower development are very complex and difficult to measure More gen-erally the viability of relying on hydropow-er as a future source of energy is also being questioned One of the major concerns here is the overarching issue of climate change ie glaciers shrinking and yearly water runoff decreasing This means less stable water flow for hydropower and less water for other pur-poses such as agriculture water supply for down-stream countries etc

By Louise Lyngfeldt Gorm Hansen Asia Research Centre Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) ndash sinodanishcenterdk

M

Picture from SinoHydro promotion material 2011

Research

31CSQ

In contrast to for example the wind power sector in China in which many foreign com-panies have invested the hydropower sector is dominated by a few large state-owned en-terprises Our knowledge of Chinese state-owned enterprises is still limited and there-fore my PhD project is also part of a larger research project at the Asia Research Centre with focus on Chinese state-owned enter-prises and the reform of the public sector in China

In combining these interests my PhD exam-ines how Chinese state-owned enterprises in the hydropower sector tackle the demand to expand hydropower development to help reduce Chinarsquos CO2 emissions while be-ing under increasing pressure to deliver on sustainability principles in the planning and execution of large scale hydropower pro-jects The pressure comes mainly from NGO organizations the media and the scientific community both at home and from abroad I am conducting a case study focused on a specific river in south-western China which has ndash until now ndash not been fully developed for hydropower and the plans for addition-al hydropower dams on the river are still undergoing assessments The project has continually stalled due to disagreements between Chinese government officials at all levels NGOs the media the increasingly deregulated but still state-owned Chinese hydropower companies and the scientif-ic community However the project has very recently been reopened and so will go through another round of assessments in the near future The case is an excellent example of the complexity of hydropower develop-ment decisions in China but it also highlights some of the social and environmental conse-quences of the global push to decrease CO2 emissions

China plays and will continue to play an increasingly important role globally in the years to come However the country also fac-es enormous challenges - not least regarding the environment These challenges also affect economies in Western Europe - for better or worse My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective so

that we here in Europe and in Denmark can more knowledgably and actively engage with China to help solve some of these difficult challenges that eventually affect us all In do-ing this I contribute to gain a better under-standing of the Chinese perspective on envi-ronmental sustainability that can be of use to companies wanting to engage in the Chinese renewable energy sector

My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective rdquoldquo

Picture of the case-river taken by the author in 2012

32 CSQ

FROM BLUEPRINT TO PRACTICE

ENERGY EFFICIENT CONSTRUCTION

By postdoc researcher Satu Reijonen Department of Organization CBS

In the EU almost one third of CO2 emis-sions are attributed to energy used in the construction and use of buildings (FIEC

2007) It is therefore not surprising that the construction sector has recently been subjected to a substantial amount of policy measures to combat its negative effects on climate change In Denmark the state has posed new thresholds for the energy efficien-cy of new buildings including a plan for con-tinuous improvement in the area This far the industry has responded well to these stricter performance requirements In the future re-quirements will rise to levels that are not that easily achieved in the coming years build-ings will have to use 25 less energy than in year 2008 How can these ambitious goals become business as usual

One of the most discussed ways besides add-on technologies such as windmills and solar panels to enhance the energy efficiency of a building is through an energy efficient phys-ical design In practice this means reduction of energy used for heating cooling down and lighting of the building through an optimal orientation and dimensioning of the build-ing

Integrated energy design contrary to add-on technologies can be achieved on a rath-er modest additional budget This should be good news for the sector that today is eco-nomically pressed Indeed today many low energy building projects claim to use the in-tegrated energy design method (IED) when seeking to meet the most ambitious energy related goals In this commentary I wish to discuss some challenges related to the imple-mentation of this design tool

The integrated energy design method sug-gests that one of the main problems in not achieving energy efficiency is that energy related concerns become integrated into the design process too late The method consists of two elements the first of which addresses the need to bring in energy related knowl-edge throughout the design process It sug-gests that design teams ought to be multidis-ciplinary and that architects engineers and experts should work together either co-lo-cated or in a series of workshops Further-more it suggests systematizing energy quali-ty follow-ups into the design process This is all very relevant and inspiring

Oddly enough a closer look on the actual design practices reveals that few seem to ac-tually follow the method of integrated energy design to the point This poses an interest-ing question about the challenges related to the use of such management technologies as vehicles for increased energy efficiency in construction Maybe it is about time practi-tioners and researchers ask themselves what are the boundaries of and challenges related to the use of these tools ndash and what else is required for organizing for more energy effi-cient building design processes

A revolution of relations

Integrated energy design points to the need to bring energy related expertise into the de-sign process at an earlier point In order to achieve this cooperative practices between different professional groups are advocated for Historically energy experts have most-ly been used to respond to rather advanced architectural plans Shared workshops and co-localization suggest a change in these business as usual relations But are they pos-sible and what type of changes do they ac-tually imply in order to function as wished

Research

33CSQ

Satu Reijonen is postdoctoral scholar at the Department of Organization at CBS In her on-going research project she investigates how architects and energy engineers two different profes-sions cooperate and coordinate their work regarding energy related ques-tions in construction design The ways in which relations between and roles of these professions become consti-tuted through socio-material arrange-ments are a central topics in her work Besides studies of work Satu has con-ducted research on environmentally friendly products and markets

ABOUT SATU RAIJONEN

The initiation of this type of new working forms is certainly beneficial for energy effi-cient design However for several reasons they are more difficult to make work than one would assume While it may sound rea-sonable it is after all a tall order Integrating energy related practices into an environment where different visions professions and in-terests meet and the divide between what one profession does is clearly and historically demarcated is demanding While architects need to make room for the intervention of energy experts into the creative work energy experts have to become capable of working creatively and relate to and follow the visual and aesthetic cues from architects In order to work these kind of changes in the profes-sional roles and relations have to resonate with the skills and visions of individual work-ers not only management level design strat-egies It is not surprising that organizational change scholars remind us of the possibility of loose coupling from the strategies placed at the management level (March 1981) What integrated energy design suggests is a kind of a revolution in the ways in which both the architects and the energy engineers envision their role and space of mobility

Linear tools in an unlinear design process

Integrated energy design suggests that the energy performance of the emerging build-ing design be followed up at certain points during the design process The method de-picts a rather mechanistic and linear under-standing of a design process consisting of phases within which iteration may occur While energy related issues may be dis-cussed as quality goals during these phases the method places a lot of emphasis on the check ups performed in the transition from one phase to another Design processes how-ever can also be characterized in a different manner unlinear exploratory and whirl wind type of practices where clear cut phases hardly exist (Akrich 1992 Van de Ven et al 1999) This also applies to the architectural design processes where the object of the de-sign is emergent (Yaneva 2009) This entails that the product the building may change in unexpected ways during any day of the de-sign process If this alternative description of the design processes is viable delegating energy related issues to some predetermined check up episodes may strike a false accord and indeed be contradictory with the aim of enhancing coordination and cooperation between professional groups What happens in between the predetermined checkups may very well be where the energy efficiency of the building becomes configured and where the intervention from the energy experts

would come most needed Perhaps this is why the best performing projects do not blindly follow the steps of the IED method Check ups however and no doubt play a role in verifying and making visible the energy performance for partners outside the design team

Integrated energy design as many other sus-tainability standards and guidelines make visible systematize and legitimize the ex-istence of environmental management and sustainability issues in organizations and work processes In this such way tools create awareness and legitimacy for environmental and sustainability issues The integrated en-ergy design method also suggests a possible way of thinking about what type of design practice might help us to achieve the stricter energy requirements of the future It howev-er falls short in becoming the change agent it suggests This is hardly surprising as a meth-od or a standard of any kind should only be seen as a possibility or as an opening for an inquiry of what the practice could be about Reconfiguring a well established practice is hard work and it would be foolish to trust that a design method would achieve it by itself What the method does is to alert us of the more profound changes in the pro-fessional roles and relations that is needed in order to enable the change However the method due to its rather mechanical under-standing of the design process may come to work against its own ambition of integrating energy issues into the design work In its quest for integration the method defines at which points in time the architectural and the engineering project has to be checked for its energy performance This approach may lead to bringing in energy related concerns in some artificially created points in a design process which may additionally compart-mentalize energy related issues from where the design really happens

Integrated energy design as many other sustainability standards and guidelines make visible systematize and legitimize the existence of environmental management and sustainability issues in organizations and work pro-cessesrdquo

ldquoLiteratureAkrich M (1992) The De-Scription of Technical Objects in Shaping Technology Building Society Studies in Soci-otechnical Change eds WE Bijker and J Law The MIT Press Cambridge Massachusetts pp 205-224

FIEC 2007 The impacts of buildings on climate change httpwwwbuildingsplatformeuepbd_publicationdocFIEC_Memo_p2919pdf on 1222008

March JG (1981) Footnotes to Organizational Change Administrative Science Quarterly vol 26 No 4 pp 563-577

Van de Ven A D Polley R Garud and SVenkataraman (1999) The innovation Journey Oxford Oxford Univer-sity Press

Yaneva A (2009) The making of a building A pragmatist approach to Architecture Bern Peter Lang

More about integrated energy design(IED)

httpwwwintendesigncomosloIntendnsfAttachmentsGuideline_Version_2pdf$FILEGuideline_Version_2pdf

34 CSQ

The climate challenge in

shipping

ldquoGlobal shipping faces two major challenges both of which are caused by its reliance on fossil fuelsrdquo

By Reneacute Taudal Poulsen Department of Innovation amp Organizational Economics

RENEacute TAUDAL POULSEN

ASSOCIATE PROFESSOR DEPARTMENT

OF INNOVATION AND ORGANIZATIONAL

ECONOMICS COPENHAGEN BUSINESS

SCHOOL

orecasts show that the shipping indus-tryrsquos CO2 emissions will most likely continue to rise in the next two to

three decades as demand for world sea-borne trade will expand At present global shipping accounts for approximately 33 per cent of global CO2 emissions but this share will most probably increase in the coming years if many onshore industries succeed in their aims of reducing emission levels

At the same time rapidly rising fuel costs put heavy strain on shipping company budg-ets Historically and until very recently fuel costs were only a minor concern for ship-ping companies but now they often exceed 60 per cent of variable operational costs Fuel savings made through energy efficiency improvements thus represent a win-win sce-nario for the shipping industry and for so-ciety at large They simply make good sense for everyone

Despite the strong incentives for fuel sav-ings numerous studies have demonstrated that shipping fails to implement cost-ef-fective measures to reduce fuel consump-tion Fuel-saving technologies are readily available in the market and in many cases pay-back periods are very short (less than a year) Changes in operational habits which require few if any investments also hold a significant potential for fuel savings

Global shipping thus holds several classic examples of energy-efficiency gaps Gaps occur wherever cost-effective measures to improve energy efficiency fail to materialize The causes for energy efficiency gaps have been a favourite research topic within the field of energy economics for decades and economists sociologists and political scien-tists have been able to identify several means to bridge the gaps However within the mar-itime domain energy efficiency gaps and the climate challenge remain neglected issues Legal barriers

Shipsrsquo fuel consumption rises steeply with speed Hence slow-steaming or just minor speed reductions can lower consumption and emission levels significantly Since oil prices started to rise rapidly a few years ago shipping companies have indeed resorted to various slow-steaming practices and com-panies which succeed in this regard have been able to gain competitive advantages In other words actors in the industry are trying to bridge the energy efficiency gap However and in spite of the strong price signals from the rising fuel prices a potential for fuel sav-ing through slow steaming still remains

FNew CBS research project

A new three year research project at CBS under-

taken by Reneacute Taudal Poulsen for the Department

of Innovation and Organizational Economics will

examine the climate issues bringing insights from

energy economics and innovation management

into the field of shipping economics The project

which is financed by The Danish Maritime Fund

runs from 2012 to 2015 The project asks why en-

ergy efficiency gaps continue to occur in shipping

and how shipping companies and the maritime

industry at large can use innovative business

models and process innovation to turn the climate

challenge and the rising fuel costs into a business

opportunity Energy efficiency gaps occur both

in daily operations and when investments in new

vessels are made This article will briefly present

two examples of energy efficiency gaps from

the operational level and some of the preliminary

findings of the project

References

Jaffe AB and RN Stavins 1994 lsquoThe energy efficiency gap What does it meanrsquo Energy Policy 22 (110) 804-10IMO 2009 Second IMO GHG Study 2009 London International Maritime OrganizationMoriarty P amp D Honnery 2012 lsquoEnergy efficiency Lessons from transportrsquo Energy Policy 46 1ndash3Poulsen Reneacute Taudal 2012 lsquoEmissions and energy efficiency - the twin challenges for shippingrsquo Mercator Maritime Innovation Research and Education MarchJune 447-454

Reneacute Taudal Poulsen is Associate Professor at the Department of Innovation and Organizational Eco-nomics at CBS He is also affliated with the Centre for Shipping Economics and Innovation at CBS Reneacute Taudal Poulsen holds a PhD degree in marine environmental history from the University of Southern Denmark and he has worked within the field of maritime business studies for the last seven years He has published in such journals as Fisheries Research Business History and Scandinavian Economic History Review

His current research intersts concern the environmen-tal challenges faced by the global shipping industry and business model innovation in the maritime domain

Research

35CSQ

It is clear that shipping companies cannot fully bridge the energy efficiency gap alone In fact factors beyond the control of in-dividual shipping companies and various structural or legal barriers prevent shipping from fully realizing the slow steaming po-tential

Port congestion remains a world-wide prob-lem and causes ships to spend remarkably long periods inactive Despite the financial crisis and the large drop in shipping freight markets after 2008 many loaded vessels sit at anchor outside ports waiting for berths In some cases they wait for a few hours In other cases for days weeks or even months Instead of waiting the ships could have re-duced speeds and saved fuel And the de-livery and the loading of the cargo in port would not have been delayed in any way However in many cases shipping companies or ship operators cannot reduce speed in spite of port congestion

Educational barriers

Energy efficiency gaps in shipping are also evident when the fuel consumption levels of sister ships are compared Even though the vessels are identical and operate in the same waters studies have shown that their fuel consumption may differ by several Decisions made by the crews onboard and by managers in the onshore organizations clearly influence the level of fuel consump-tion For instance if a captain selects only very small course deviation margins when coding the autopilot of the ship the shiprsquos rudder will move frequently to keep the ship on the exact course all the time This will slow down the ship and cause higher fuel consumption than if the captain had allowed for slightly wider margins and the wider margins would not have any effect on the safety of the ship Decisions made by the commercial depart-ments eg on how to crew the vessels how to monitor vessel fuel consumption or which new equipment to install onboard may also

have a large impact on fuel efficiency and emission levels If shipping company man-agers can nurture a fuel saving culture this could potentially make a difference Since 2007 or 2008 shipping companies have in-deed started to facilitate such organizational changes but educational barriers remain a problemOnshore truck drivers are now offered fuel saving courses but fuel-saving is not a major part of the traditional curriculum in nautical schools or in the commercial education of shipping trainees For good reasons the nau-tical educations have focused on maritime safety but this has caused them to neglect the climate challenge in shipping and the is-sue of fuel saving In fact no single nauticaltext book on maritime fuel savings has yet been published and according to teachers and students in the nautical schools this serves as an educational barrier to ener-gy-efficiency improvements The technical level of education for commercial employees in shipping companies may also hinder im-provements in energy-efficiency Some com-

mercial shipping employees may not have sufficient training to fully see and acknowl-edge the consequences of their decisions on fuel consumption In short it seems that fuel awareness and the educational systems have responded more slowly to the climate chal-lenge than the rise in fuel prices may other-wise suggest

For shipping to bridge energy-efficiency gaps education ndash both nautical and com-mercial ones ndash clearly is an area to set in Here the potential for innovative solutions is both evident and pertinent Changing educational systems and awareness is no easy task bearing in mind the global nature of the shipping industry and international crewing of the world fleet It is clear howev-er that educational upgrading is necessary for shipping to effectively address the cli-mate challenge effectively

Charter parties between ship-operators and shippers state a specific time of arrival for the vessel and in order to avoid claims ships proceed to port accordingly regardless of berth availability Experiments with new more flexible charter parties which allow for slow steaming in case of port congestion have recently been made Shipping compa-nies have generally been enthusiastic about this flexibility but often shippers remain skeptical Lack of trust between shippers which need the loading of their cargoes as soon as possible and shipping companies may be a cause for this discrepancy Even in cases where the savings made from slow-steaming are split between shipping companies and shippers shippers have re-mained skeptical Port queuing systems may have a role to play here

Many ports including some of the major container iron ore coal and grain ports serve ships on ldquofirst-come first-servedrdquo ba-sis Ships only receive their ldquoticketrdquo in the

waiting line upon their arrival at the port Again lack of trust between the ship-oper-ators shippers and the port authorities may explain this phenomenon Moreover port authorities currently do not have incentives to change queuing practices because they cannot gain a share in the fuel savings made from slow-steaming

The problem is particularly strong in the major tramp shipping segments of tanker and dry cargo shipping where vessels act as ldquotaxis of the seardquo serving numerous shippers and rarely calling at the same ports If the fleet from a shipping company only calls at a particular port once a year and the compa-ny has very short-term relations to individ-ual shippers building trustful relationships between the parties remains a major chal-lenge Solving this problem and realizing the full potential of slow steaming will require systemic innovation in shipping and port systems and further studies are required to identify possible solutions

36 CSQ

The Wind turbine industry -

Emerging global innovation networks in Europe and China

The wind turbine industry has developed into a global network encompassing a large amount of diverse actors within innovation production and installation of wind turbines across the globe

By Stine Haakonsson and Julia Kirch Hollitsch Department of Business amp Politics CBS

market for wind energy Chinese actors have turned China as a location into another im-portant lsquohubrsquo in this network This has led to new forms of innovation collaborations between European and Chinese actors The result has been a complete re-configuration of the industry over the past decade In the International Business and Economic Geog-raphy literatures the development of global production networks in which lead-firms be-come orchestrators of dispersed production

enmark has traditionally played a key role as an lsquoinnovation hubrsquo and com-

panies in Denmark remain among the lead firms within the wind turbine industry Re-cently the industry has reorganized from being located predominantly in the Triad regions (mainly in Europe and the US) to becoming a globally dispersed industry This development can partly be explained by de-velopments in international and national politics Due to the growth of the Chinese

activities in globalized value chains is well established theoretically as well as empiri-cally In the globalization process lead firms relocate production activities to low cost lo-cations by off-shoring and through vertical disintegration and outsourcing to specialized suppliers Producers of wind turbines are no exception However until recently the mar-ket and innovation activities remained con-centrated in Europe and US

With the recent focus on global politics for a post-carbon society the market for wind tur-bines has experienced an immense growth and a high degree of market globalization New locations have developed into main markets One of these is China which since 2010 has been the largest market for wind turbines in the world (in capacity installed) The globalization process in the wind tur-bine can be explained by a combination of offshoring of production by European lead firms mainly through foreign direct invest-ment and establishment of domestic lead firms in emerging markets In 2010 there were four Chinese-owned companies among the top-10 producers of wind turbines as compared to 2003 where all firms on this list were from Europe and the US

D

Julia Kirch Hollitsch

Stine Haakonsson

Stine Haakonsson and Julia Kirch Hollitsch from Depart-

ment of Business and Politics CBS are engaged in the

Sino-Danish Center for Research and Education (SDC)

project on Wind Energy in China Both research on the

current restructuring of industries and firms at the glob-

al level (outsourcing off shoring global value chains)

In particular their research is on 1) the restructuring of

innovation and RampD activities into global innovation net-

works(GINs)2)thechangingroleofemergingmarkets

(ChinaIndiaBrazilSouthAfrica)intheseemergingGINs

and 3) technology transfer and capability building related

to renewable energy

Research

37CSQ

by adapting their products to the Chinese market and through cost-out development activities in the new locations primarily China

As a result the wind industry is today highly knowledge-intensive and internationalized Due to increased attention and investments in sustainable transition policies and car-bon-reducing technology China has over the past decade developed into a high prior-ity investment area for wind turbines Also Chinese companies are upgrading technol-ogy and innovation from the global firms through integration into GINs Moreover the production and innovation networks for wind energy become highly complex and consist of many different suppliers of com-ponents (blades gear boxes control systems bearings) resulting in a variety of network linkages among suppliers of different com-ponents and the wind turbine producers

From our empirical data including more than 40 in-depth interviews collected in 2011 and 2012 in the wind turbines indus-tries in China and Denmark we have identi-fied some very interesting patterns We have identified very different characteristics of the GINs established by the Chinese wind tur-bine industry and the European wind tur

Emerging Global Innovation Networks

Innovation processes are also moving be-yond the boundaries of individual compa-nies and national innovation systems Firms engage in cross-border innovation networks spanning different innovation systems which may be national regional or sectorial in or-der to stay competitive in the global econ-omy Chinese lead firms are entering this scene too The result is globally organized networks of interconnected and integrated functions and operations by firms and non-firm organizations engaged in the develop-ment and diffusion of innovations so-called Global Innovation Networks (GINs) Lead firms internationalize innovation through strategies of exploitation global generation of innovation and global techno-scientific collaborations Chinese wind turbine pro-ducers ndash acknowledging their resource and capability deficiency ndash pursue strategies of innovation network integration through strategies of global generation of innovation These firms link up with specialized Europe-an actors such as core component suppliers through partnerships and networks in or-der to tap into the technology of firms from developed countries and upgrade Mean-while European companies internationalize through exploitation strategies for example

bine industry Although Danish and Chinese actors are experiencing a re-organization of activities and establish networks and globa-linnovation strategies the result is very dif-ferent

The industry from Europe and US

The industry from Europe and the US hosts the lead firms in terms of core technology de-velopment Denmark has traditionally played a key role as lsquoinnovation hubrsquo in technology development and global lead firms such as Vestas and Siemens Windpower (previously Danish lsquoBonusrsquo) took its start already in the 1970s The core competences of the Danish wind turbine innovation system are based on large testing facilities and long track records mainly due to the long time-line of experi-ence The wind industry goes 40 years back and therefore Denmark has a good knowl-edge pool within establishing wind farms (aerodynamics minimizing power loss in energy transmission wind mapping and other installation-related technologies)

38 CSQ

that will make it possible to finance the pro-jects ldquoFrom then on our wind turbine pro-jects developed very fastrdquo(Interview Wind Engineer Chinese Academy of Sciences) Thus this law was a milestone for elevating renewables to a strategic position in China or as expressed by a European lead-firm ldquoWhat drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick offrdquo

Until the turn of the millennium Chinarsquos wind energy industry was largely built on donors acquisition of finished wind turbines and licensed technology from European companies spread on a very small scale into the local industry during the mid 1990s Chi-nese wind turbine technology has evolved from imitation reverse engineering and licensing in the 1980-90s combined with assistance from foreign consultants One example is how DANIDA funded a project in 1986 for Goldwind in Xinjiang which imported 13 units of 150 kW lsquoBonusrsquo (now Siemens Wind Power) turbines

To get beyond the stage of pure imitation several policies have been introduced with the intent to upgrade Chinese manufacturers to obtain indigenous innovative capabilities Policy programs were introduced to enhance Chinese companies to develop wind energy subsidizing wind energy RampD expenditures at varied levels over time establishing a re-newable energy fund and through the ldquo863 Wind Programrdquo under the Tenth Five-Year Plan (2001-2005) Local content require-ments were put in place in which develop-ers of wind energy projects were required to source 70 pct of the content in China These policies ndash which essentially forced foreign manufacturers wishing to sell wind turbines to the Chinese market to establish China-based manufacturing facilities ndash were only removed recently (in 2009) One result was that the foreign companies had to up-grade local suppliers of components

Due to the technological complexity many European (and hereby also the Danish) firms are vertically integrated and have most com-ponents produced in-house or with regular specialized suppliers According to these companies the different parts need to be well adjusted to each other to some extent even co-developed in order to enhance effi-ciency and the lifetime of the wind turbine Likewise the European industry has expe-rienced a concentration of actors with the result that there are only relatively few but large manufacturers in Europe (the larg-est ones are Vestas Siemens Gamesa and Enercon) Together these four companies accounted for about 35 of the global mar-ket in 2010 By seeing the wind turbine as an integrated system these lead firms aim at producing lsquothe Rolls Roycersquo model wind turbines These are strong in terms of qual-ity and standards but generally expensive These firms learn cost-out techniques from their engagement with partners in China

The Chinese Wind Turbine Industry

Today the Chinese wind turbine industry is overly competitive It entails more than 80 wind turbine manufacturers and the Chi-nese market boasts the highest growth rates internationally with an average growth rate of 968 percentages annually in the last three years Several large domestic Chinese wind turbine manufacturers have emerged within the last decade Sinovel and Goldwind take the largest share followed by United Pow-er and Ming Yang just to mention some of them As of the end of 2010 these four were A major driver for the development of the Chinese wind energy market has been the establishment of an institutional context as a comprehensive concerted policy frame-work addressing the development of renewa-ble energies This change in the institutional context was first reflected clearly in the 11th 5-year-plan (2006-2010) which explicitly linked environmental sustainability to the key goal of establishing what was called a harmonious socialist society signalling a socially environmentally and economically sustainable economy With the Renewable Energy Law from 2005 the Chinese wind energy industry really took off as it explicitly seeks to ensure that renewable energy pro-jects have an outlet for their output at prices

Technical barriers and the role of GINs for a post-carbon society

Despite high ambitions in terms of devel-oping innovative capabilities Chinese pro-ducers still produce almost exclusively for the Chinese market However Chinese wind turbine manufacturers have recently started an internationalisation process and some are approaching international markets Not least for tapping into new knowledge

Europe (and Denmark in particular) is per-ceived as a main location from which the Chinese companies can learn more A cou-ple of Chinese companies have already set up RampD centres in Denmark European firms have also initiated RampD centres in new lo-cations primarily China and India In other words GINs can be identified

Our research also points towards important barriers for GINs in the wind turbine in-dustry and for approaching a post-carbon global society Most importantly are the technological barriers intellectual property rights quality issues and issues of limited appropriability of knowledge Further the institutional framework remain relevant for displaying how the sector and the emerging GINs are embedded institutionally socially and technologically Whether actors trans-act knowledge technology and know-how through cooperative innovation activities also depends on how core the technology of a given technology is Still as the market grows in China it seems to have matured in Europe because of changing policies on re-newable energy To sustain the position as a global lsquohubrsquo and world leader in wind tech-nologies there is a strong need for support in Europe as this research really shows how fast the Chinese industry is moving One major result is how important networks are for upgrading companies and it seems that Chinese firms perform better in network strategies and manage to tap into relevant knowledge than the European firms

What drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick off rdquoldquoInterview Wind Engineer Chinese Academy of Sciences

39CSQ

Social Enterprise World

ForumNadine Koumlcher from 180Degrees recounts her experience from the

conference on

Rio de Janeiro Brazil 2012

In the numerous panel debates and parallel track discussion it became clear that Impact Investment is a hot topic among both social entrepreneurs and impact investors a diverse group consisting of corporations founda-tions and potential donors However various obstacles impede a harmonious relationship between the twoSocial enterprises face structural challenges to make themselves more appealing to im-pact investors They have to become more transparent and increase their accountability This includes improving their impact assess-ment and reporting tools However despite much discussion no consensus could be formed on how to optimally conduct im-pact assessment One of the most frequently proposed methodologies involves the use

From the 16th to the 18th of October the CBS Sustainability Platform granted me the opportunity to attend the 5th Social Enter-prise World Forum which took place in Rio de Janeiro Brazil This yearly international conference focuses on social enterprises and their effectiveness in solving social challeng-es The overall theme of the 2012 conference hosted by NESsT was ldquoSocial Enterprise Investing for Impactrdquo Thus for three days over 180 speakers and 650 delegates from 30 different countries shared their experiences regarding impact investment and discussed possibilities to attract new investment by both the public and the private sector for so-cial enterprises

of control groups Story-telling has also been men-tioned to be a powerful tool to provide investors with a proof of outcomesSocial investors are willing to accept returns just below the market rate in exchange for a social return However large profits are still expect-ed and many social enter-prises are afraid of being unable to generate them Social enterprises typically operate on a small scale and are not used to undertake large projects with huge sums of investment given to them Many are too small for social investors to be

attractive as costs are similar for small and large investments although larger invest-ments have a higher payoff

Nichole Echert the CEO of NESsT there-fore pointed out that it is necessary to align expectations between impact investors and social entrepreneurs and to be patient in establishing a relationship between the two groups The expected financial return has to be reasonable close to covering the costs of operation and social returns have to be re-ported to investors by use of clearer criteria

By Nadine Koumlcher Director of Branch Development180 Degrees Consulting Limited

ldquoSocial Enterprise Investing for Impactrdquo

Students

40 CSQ

A highlight of the con-ference was definitely the site visit to a social enterprise project in a recently pacified fave-la It brought further insights on the great variety of social enter-prises that exist in Bra-zil and their missions and struggles We visit-ed a community center at which Comitecirc para

Democratizaccedilao da Informaacutetica (CDI) uses technology to fight poverty and to stimulate entrepreneurship CDI has formed a corpo-rate partnership with Coca Cola which in the same building teaches young locals how to write a CV and find a job Talking to the young locals at the center it became apparent that an increased self-confidence and the in-spiration they get from meeting former now employed participants of the project (eg at Coca Cola) is what they valued most of being part of the class

Participating at the conference was definite-ly a unique and valuable experience I would not want to miss as I tremendously improved my knowledge in the field of social enter-prises through attending the numerous pres-entations and discussions and further met so many inspiring social entrepreneurs impact

In addition it has been stressed that the problem is not a shortage of investment capital (even though the government could promote more impact investment by for instance granting tax breaks) but how to deploy it Social entrepreneurs also have to be aware of the different advantages and dis-advantages of the various types of capital It has to fit their process of establishment and it has therefore been suggested that funds and grants are most optimal in the start-up phase to cover such costs as capacity train-ing There is generally a lack of this early stage financial support Following the initial phase strategic philanthropy money would be most appropriate before impact and final-ly equity investment is sought Furthermore new ways of investment which fit the social enterprise world have to be created replac-ing the current situation of trying to fit social enterprises into the current financial world

investors and students with a genuine inter-est in the field

Participating at the conference was definitely a unique and valuable experience rdquo

ldquo

Social Enterprise World Forum 2013 in

Calgary Canada

The TRICO Charitable Foundation in part-nership with the Social Enterprise Council of Canada and the Social Finance Forum has been selected to host the 6th Annual Social Enterprise World Forum SEWF 2013 will take place October 2-4 2013 in Calgary Al-berta The Forum will present the Canadian social enterprise movement with opportuni-ties to engage learn and share on the inter-national stage

SEWF 2013 will be a gathering of over 1000 Canadian and international delegates who are involved in the social enterprise move-ment where the blending of social and fi-nancial values is core to business Attendees will consist of practitioners (from all sec-tors) funders investors supporters elected officials and public servants from around the world

Nadine Koumlcher

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 13: CBS Sustainability Quarterly 2013 #1

13CSQ

terested in looking for ways to address grand societal challenges such as ensuring sustain-able development

Christian Friis Bach recognizes that CBS as a research and educational institution has a role to play here ndash maybe even a bigger role than we play now Because even though CBS is known and regarded as a very internation-ally oriented university the Minister encour-ages CBS to go even further in sharpening its global commitment and profile

ldquoMany of the problems that we have related to growth and employment in Europe are not to be found in developed countries I hope that CBS continues to engage internationally in order to shape graduates to tackle global chal-lenges For example 7 out of 10 of the worldrsquos fastest growing economies are in Africa and here I would really urge CBS to have an even stronger engagementrdquo

CBS is involved in the Building Stronger Universities in Developing Countries Pro-gramme (BSU) which is a partnership be-tween research and higher education institu-tions in selected developing countries and all the main Danish universities The long-term goal of the initiative is to make the partici-pating institutions stronger by conducting joint research projects that offer knowledge and solutions to localdomestic and global challenges to produce better graduate pro-grams and for universities to play an increas-ing role in the economic social and political development of their own countries How-ever Christian Friis Bach also encouraged close dialogue with a broader set of partner universities in the developing world as an important way for CBS to shape its research and educational efforts and thus remain rele-vant in the future

Christian Friis Bach highlighted

ldquoIt is a big world And the world moves fast And I think the challenges upon our edu-cational system in Denmark are increasing every day When I go to South Korea China Latin America or Africa I see that they look increasingly towards each other for innovative solutions not towards Europe If we need to remain relevant we do have a challenge hererdquo

For example this means looking at the econ-omies in the world that are the most innova-tive These are in many cases in the develop-ing world so this is when CBS should invest when it comes to partnering in research educational development and knowledge exchange for example among faculty and students

The Minister also notes the advantages that can be gained from globalizing our institu-tions much more broadly and working across borders and academic fields for example on

The Building Stronger Universities in Developing Countries initiative amp CBS

ldquoBuilding Stronger Universities in Developing Countriesrdquo is a partnership between research and higher education institutions in developing coun-

tries and Danish universities The long-term goal of the initiative is to make the participating institutions stronger in the sense that they

bull playanincreasingroleintheeconomicsocialandpoliticaldevelopmentofthesocietiesinwhichtheyarelocated

bull functionasnodesofinnovationandknowledgeproductionprovidingsolutionstolocaldomesticandglobalchallenges

bull produceskilledandmotivatedgraduatesthatcancontributetothefurtherdevelopmentofthesocietiesandaddressthechallenges

faced

The ldquoBuilding Stronger Universitiesrdquo initiative has a structure with four thematic platforms Copenhagen Business School contributes to one of

the four platforms under the initiative the Growth and Employment platform which is a partnership between University of Ghana (UG) Kwame

Nkrumah University of Science and Technology Ghana (KNUST) University of Dar es Salaam Tanzania (UDSM) Sokoine University of Agriculture

Tanzania (SUA) and the major Danish universities From CBS Associate Professors Soslashren Jeppesen and Michael Wendelboe Hansen the CBS

Center for Business and Development Studies is part of the project which for example seeks to develop relevant PhD programmes strengthen

growth and employment relevant research activities and research collaboration and disseminate research findings to stakeholders

wwwbsuudorg

Students Sierra Leone (picture from umdk) Photo Joslashrgen Schytte

When I go to South Korea China Latin America or Africa I see that they look increasingly towards each other for innovative solutions not towards Europerdquo

ldquo

14 CSQ

health technology and business develop-ment in cooperation with developing coun-try researchers And we need to be good at a lot more than ldquojustrdquo development coopera-tion ldquoif we want to remain relevant for exam-ple in Africa on sustainable business we can-not afford to send people out who have worked isolated in the development community here in Denmark So instead of seeing development research as a separate discipline it needs to be integrated into everything we dordquo

That is why the Minister argues for more fo-cus on educating graduates that are experts and specialists but not necessarily within development cooperation Instead he says Denmark needs graduates that can develop the best possible solutions for the developing world within energy technology etc ldquoThe fast-growing economies in China Southeast Asia Latin America Africa do not need spe-cial things made for developing markets they need top innovative solutions and high-quality products and we need to be able to offer that to them if we want to remain relevantrdquo

One of the solutions worth repeating is that of partnerships According to the Minister universities need to remember that partner-ships with other research institutions as well as with private companies and organizations can provide greater insight

ldquoYou need not only public-private partner-ships but large-scale multiple partnership Still universities can sometimes behave as isolated entities Of course universities need to focus on the core business of researching and educating students but they will also in-creasingly be challenged to engage in these in-ternational and multiple partnerships This is where you will find some of the most inspiring

About Christian Friis Bach

Born 1966 in Frederiksberg Denmark Married three children Lives on a hobby farm near Ganloslashse

Present officeMinister for Development Cooperation 3 October 2011 ndash

Education1992-1996 PhD International Economics Royal Danish Agricultural University Copenhagen 1986-1992 MSc Agronomy Royal Danish Agricultural University Copen-hagen

Work Experience2010-2011 Special Advisor for EU Commissioner Connie Hedegaard (UN Global Sustainability Panel) 2010-2011 CEO ViewWorld ApS 2009 Affiliated Professor in International Economics and Development at the University of Copenhagen 2005-2010 International Director DanChurchAid 2002 Journalist at the Danish Broadcasting Corporation (DR) 1999-2005 Associate Professor International EconomicsDevelopment Economics Royal Danish Agricultural University (University of Copenha-gen)

Other engagements2010-2011 Member of the Board of the Danish United Nations Associa-tion 2008-2010 Initiator and Board Member of the Danish Initiative for Ethical Trade 2008-2009 Member of the Danish Africa Commission 2007-2011 Member of the Presidium for WWF World Wide Fund for Nature Denmark 2000-2006 Board Member International Institute for Sustainable Develop-ment 1997-2001 Chairman Mellemfolkeligt Samvirke (Danish Association for International Cooperation)

Christian Friis Bach has published a large number of books reports and ar-ticles in newspapers and magazines Please see wwwfriisbachdk for details

15CSQ

In December 180 Degrees Consulting (180DC) finished its third round of pro-bono social impact consulting projects with even more success than in previous semes-ters All consultants showed dedication and motivation by spending a large amount of their spare time to work with socially con-scious organizations in order to help them to improve their social impact

An overcrowded lecture room during the 180DC information meeting at the begin-ning of the semester and the high number of applications to join the consulting projects were evidence of great interest in 180DCrsquos activities Out of the 139 applicants the top 45 were selected in a two-step recruitment process and grouped into teams of five to work on the nine exciting projects lined up in the Fall 2012 semester

All projects involved Danish-based organi-zations with a strong focus on either social andor environmental sustainability The projects however differed vastly One of the consulting teams assisted Engineers Without Borders and Action Aid in developing an investment rationale for the cultivation of farmland belonging to an Indian orphanage as well as assessing the social return of this investment

Another 180DC team worked with Hertha an organization focused on the reverse in-tegration of ordinary people into a commu-nity of mentally challenged Hertha needed assistance with improving their external reporting setup to stakeholders which was achieved by developing useful tools for the organization to measure both the social and cultural impact of their activities Yet another team of consultants helped the International Rehabilitation Council for Torture Victims optimizing their internal processes and thus helping them pursue their vision of a world without torture

During the consulting period 180DC or-ganized several training sessions for the con-sultants of the organization hosted by pro-fessional consultancies and each team was assigned a mentor with expertise specific to the given project The highlight of the semes-ter was the Final Event at which all of the teams presented their projects in front of a large audience comprised of all 180DC con-sultants the 180DC board members as well as mentors clients and a jury consisting of representatives from PwC DI CBS Sustain-ability Platform BCG and VSFA The juryacutes task was to evaluate the consulting projects based on their written report and oral pres-entation Based on the creativity feasibili-ty and impact potential of the projects the chairwoman of the Jury Birgitte Mogensen PwC announced the winner of the 180DC Social Impact Award Team Engineers With-out Borders

All of the 180DC board members have throughout the semester been working hard to constantly improve the organization in or-der to ensure a high quality of the services provided to clients and of the learning ex-perience provided to students With a new extended board in place 180DC is looking forward to continue its successful journey in the upcoming semester which kicked-off in January with two international projects in Chile and Sierra Leone ndash thanks to the sup-port of the CBS Sustainability Platform

by Nadine Koumlcher

UPDATE FROM 180DEGREES180 Degrees Consulting is an international student consultancy that works with growing non-profits helping them achieve a greater social impact

Contactphone no +45 6061 6399e-mail cph180degreesconsultingorg

Updates from partner organizations at CBS

16 CSQ

The past semester was a good one for 360deg Students for Sustainability Not only did our organization grow to nearly 50 members this fall but we were also nominated in the Student category for the CSR Awards 2012 ndash the second year in a row You can watch the nomination video here httpwwwyoutubecomwatchfeature=player_embed-dedampv=6J5mwn7TcYI Although we didnrsquot win the award representatives from 360deg got the chance to participate in the conferencersquos many seminars ndash and not least hear Bill Clin-ton speak360deg also took it to another level with 360deg Academy The project was a huge success with over 250 people signed up for the ex-tracurricular course It shows that there is a clear interest in CSR and sustainability among the students and that 360deg Students

for Sustainability fill an important gap in providing the students with a forum where they can discuss such issues with each oth-er professors and practitioners We have al-ready started planning Academy 2013 which will run in the fall In addition to 360deg Academy 360deg organ-ised several successful events and seminars the past semester 360deg Develop Prize was kick-started in November and has already found some dedicated social entrepreneurs who will join the coming events this spring as well as the final competition 360deg also co-organized events on microfinance (with Danish Forum for Microfinance) and fair-trade (with Fairtrade Maeligrket) We also created a nice Christmas spirit at the CBS campus with our annual Christmas event featuring cookies a fairtrade Christmas tree

and do nations to Red Cross and Verdens SkoveWhile it is important to look back this semester 360deg is focusing on the future By the end of the semester 360deg Students for Sustainability will have changed its name to oikos Copenhagen After becoming part of the international student network oikos in 2011 we believe that changing our name will emphasize our international commitment and will show the students the many oppor-tunities that are available to them through the oikos network You can read more about oikos International and the other 36 chapters around the world by visiting wwwoikos-in-ternationalorg

Christina EkChairwoman of 360deg and soon-to-be President of oikos Copenhagen

UPDATE FROM 360 STUDENTS

360deg Students for Sustainability

360deg Students for Sustainability is a non-profit student organization based at CBS working to enable and inspire students to make responsible and sus-tainable decisions in their future lives and professional careers

Contact Christina Ek tlf 42 39 99 54 mail info360studentsdk

Live show at CSR Awards 2012

(Picture from csrfondendk)

Updates from partner organizations at CBS

17CSQ

UPDATE FROM PRME

New approach by the Curriculum Development

projectThe commitment to the initiative of the UN Principles for Responsible Management Education (PRME) at CBS has been further sustained via a more targeted approach to the development of the curriculum at the undergraduate programmesAs part of the adherence to PRME CBS has launched a Curriculum Development project to integrate responsible management prac-tices into the study programmes and also make these practices more explicit This is an extensive process that recently has been even more focused on the individual content of each of the study programmes A more cus-tomised approach will only strengthen the analyses of syllabi for each core course and increase the content of explicit responsible management

ldquoThe current restructuring of the Service Management bachelor programme and the development of three specialised lines of ed-ucation offer a great opportunity to align the curriculum development with the Principles for Responsible Management adopted by CBS Currently the CBS Office for Respon-sible Management Education and faculty members from CBS are working to identify opportunities to integrate responsible man-agement education into the educational programmerdquo Assistant Professor Adriana

Budeanu BSc in Business Administration and Service Management CBS In collabo-ration with study boards students and fac-ulties the Curriculum Development project enables a targeted approach to the integra-tion of responsible management content in order to comply with the overall structure of each study programme

Anti-piracy strategy from Maersk was a winning strategy

In collaboration with the CBS Sustainabili-ty Platform the CBS Office for Responsible Management Education arranged an internal competition to identify the best team of stu-dents to represent CBS at the International Business Ethics Case Competition (IBECC) in San Diego later this year The students had to select a business case entailing a challenge with legal financial and ethical aspects and propose a solution to this challenge A jury found the winning team based on a live presentation followed by a QampA session that took place in November 2012

The winners of this unique opportunity were the graduate students Bjoslashrg Ilsoslash Klinkby (MSc IBP) Adam Eithz Kromann (MSc BAP) and Anne Cathrine Gaarde (MSc IBP) They presented a business case on the anti-piracy strategy of Maersk

Winners of the Business Ethics Case Competition

Updates from partner organizations at CBS

18 CSQ

THESIS PARTNERSHIP BETWEEN GRADUATE

STUDENTS AND COMPANIES MATCH-MAKING

On behalf of CBS the Office for Responsible Management Education invited companies and organi-sations to participate in a match-making event with graduate students who were looking to write their thesis within the field of sustainability or social responsibility

Prior to the event that took place on the 6th of February ambitious graduate students were matched with eight very diverse organ-isations all wanting to explore challenge and develop CSR related activities The selection of organisations ranged from Center for So-cialt Ansvar who sought the studentsrsquo advice on how to revitalise their social concepts in corporation with the civic public and pri-vate sector to Wonderful Copenhagen that engaged the students in their aspirations of

retaining Copenhagen as a leading ldquogreenrdquo conference destination This diversity mere-ly reflected the broad-based educational standards that are embodied in the conducts of CBS and enabled students from all study areas to participate With the meeting as the focal point of the event the aim was to in-troduce more students and companies to the possibilities of a thesis partnership On that basis it is the hope that students and organisations will take the initial meeting

further into a collaboration resulting in a thesis that with an analytical and reflected approach hopefully provides valuable insight for all parties The event was indeed a unique opportunity for the students to get the or-ganisationsrsquo unremitting attention but also the organisations expressed their excitement about how the theoretical knowledge and skills of the students could be combined with the specific issues reaching beyond everyday operations of the organisation

PRME

Lene Mette SoslashrensenTel +45 3815 2651E-mail lmsiklcbsdk

PRME Manager

Johanne Duelund Kramer from Wonderful Copenhagen and CBS student Joseacute Bandeirinha from International Marketing and Management

Updates from partner organizations at CBS

19CSQ

A value adding partnership

The match-making event was kick-started by Professor Andreas Rasche who gave a short speech on trends in the field of sustainability and social responsibility Likewise thesis con-sultant Vibeke Ankersborg rounded off the event by guiding both students and organisa-tion representatives in the right direction of obtaining a value adding thesis partnership

By facilitating integration of the theoretical knowledge pool at CBS with real-life busi-ness cases and their challenges this initiative underpins CBSrsquos Responsible Management Education profile ldquoAddressing societal chal-lenges in interaction with business is a key element in our Business in Society strategy and we hope to set up a similar initiative in the futurerdquo Lene Mette Soslashrensen PRME Manager CBS

Being able to engage in a thesis partnership gives us the opportunity to get new and fresh eyes on the challenges and opportunities we face in the aspiration of sus-taining Copenhagenrsquos position as marked leader within sustainable meetings and events ndash and the other way around we see it as a positive contribution to help young students to gain in-depth knowledge on how we actually work with sustainability in practicerdquo

Ulrika Maringrtensson senior communication consultant Wonderful Copenhagen

ldquo

Case Companies

20 CSQ

Update from CBS Centre for Corporate Social Responsibility

cbsCSR celebration10 years anniversaryOn Thursday November 22 2012 CBS Centre for Corporate Social Responsibility (cbsCSR) celebrated its 10 years anniversary The guest list included prominent guests from both academia and the corporate world Head of Department Dorte Salskov-Iversen President Per Holten-Andersen and cbsCSR Director Esben Rahbek Pedersen bid all a warm welcome to an afternoon of inspirational talks and celebration of the Centre

Susanne Stormer followed and initiated her presentation with a brief recap of Novo Nor-diskrsquos history and continuous development of corporate sustainability practices She em-phasized how Novo Nordisk with the help of Professor Ed Freeman has prioritized a close relationship with their stakeholders and learning with them as a means to reach a higher level of corporate sustainability An additional key take-away from Susanne Stormer was the notion of transformational partnerships She argued that corporations NGOs and other stakeholders should use each other to form transformational partner-ships instead of just transactional partner-ships She claimed that in order to address and solve the problems in todayrsquos world the issues have to be addressed at the roots ndash in cooperation with stakeholders

The program had been divided into two ses-sions Each session ended with a panel dis-cussion that gave the audience the opportu-nity to track the developmental trajectory of CSR and participate in the discussion of the future direction of CSR

In the first session which focused on the history of CSR Professor Lucia Reisch from Department of Intercultural Communica-tion and Management CBS Susanne Storm-er VP of Corporate Sustainability at Novo Nordisk and Professor Gail Whiteman from Rotterdam School of Management present-ed their perspectives on the development of CSR up until nowProfessor Lucia Reisch set the stage with an enlightening introduction to the history of sustainable development and emphasized balance on the triple bottom line as key

Professor Gail Whitemanrsquos presentation highlighted both the past and the future of CSR Her main topic was how to deal with planetary boundaries She drew attention to inherent implications of teaching sustaina-bility and CSR at a business school and ar-gued that in order for students and business executives to understand the implications of planetary boundaries and their importance classes should be taught in nature

In the second session Annette Stube Head of Group Sustainability in AP Moller ndash Maersk Simon Pickard Director General at ABIS and Professor Andreas Rasche from cbsCSR presented their views on the future of CSR

Updates from partner organizations at CBS

21CSQ

The topics in the second panel debate evolved around some of the same issues as in the first panel debate The audience was very interested in the educational aspect of CSR and sustainability and a discussion fol-lowed concerning the issues of lsquopreaching to the convertedrsquo Research shows that 75 of CSR courses are not mandatory 1 thus those students and executives who have a natural interest in CSR and sustainability enroll for these courses The speakers agreed that this posed a challenge for the future and that business schools might have to re-invent themselves in this regard They stressed that it is crucial that CSR and sustainability courses become mandatory Also the prac-titioners advocated in-company learning They set forth the argument that it may be a long time before current students will have sufficient impact on the corporate sector but also because the corporate sector and the ac-ademic world can learn from one another

Sum-up of key perspectives for the future

So how has lsquothe business of business really changedrsquo and in what direction From the afternoonrsquos discussions there were two recur-ring topics Susanne Stormer briefly touched upon it when she talked about transforma-tional partnerships Annette Stube and AP

Annette Stube set forth the argument that ldquothe business of business has really changedrdquo She gave an example of how AP Moller ndash Maersk should use their position in the shipping industry to facilitate substantial changes Simon Pickard supported her argu

ment stating that it is not possible for single corporations to make a difference but that clusters of corporations have to collaborate to push changes If corporations do not join forces they risk only making incremental changes Simon Pickard further argued paraphrasing Andrew Pettigrewrsquos argument that in the course of time there has been a conceptual change in the argument for CSR He pointed to the fact that it started out as a moral or philanthropic enterprise and is now perceived as a governance case Simon Pickard pointed to the fact that the future of business is to create shared value ie creat-ing economic value that also creates value for society at large Building on these re-marks Andreas Rasche discussed the future of standards and codes in the field of CSR Emphasizing a variety of case examples he argued that while standards have proliferated in recent years eg certification schemes in the global coffee and apparel industries there is a need to more actively manage the co-ex-istence of these initiatives in order to avoid overlap Rasche also highlighted the pivotal role of consumers who need to acknowledge standards and labels as market signals and factor social and environmental concerns into purchasing decisions

Moller ndash Maersk has it as an integrated and crucial part of their CSR policies and Simon Pickard highlighted how instrumental the-ories are no longer enough The concept of shared value is inescapable and it is what the lsquobusiness of businessrsquo in the early 21st centu-ry is really about

A second topic which also attracted a lot of attention was the importance of continuous education of both lsquothe convertedrsquo but also of opponents of CSR and people who are not aware of the importance of CSR and sustain-ability In-company learning was depicted as a crucial part of the development of CSR and sustainability however a physical change in the teaching settings is also required to meet the approaching environmental challenges

Centre Director Esben Rahbek Pedersen concluded the conference and the winners of the prize of 25000 DKK to participate in the IBECC case competition in San Diego in May 2013 were announced and the celebra-tion of cbsCSR ended with a reception

Thank you to all the speakers moderators and guests for an inspirational afternoon

By Elise Lind Jacobsen and Line Pedini Rasmussen cbsCSR

1Rasche A Gilbert DU and Schedel I (2013) Cross-Disciplinary Ethics Education in MBA Programs Rhetoric or Reality Academy of Management Learning and Education (forthcoming)

Three of the keynote speakers (from left) Professor Gail Whiteman from Rotterdam School of Management VP of Corporate Sustainability at Novo Nordisk Susanne Stormer and Sustaina-bility Professor at CBS Lucia Reisch

Simon Pickard Director General at ABIS

22 CSQ

UPDATE FROM

CBS GOES GREENThe Green Associate Program

2012 was an exciting year for CBS Goes Green with many great achievements One of the new initiatives that was launched in 2012 was the Green Associate Program Here CBS students were able to volunteer in a program to support sustainable behavior among students and staff at CBS More precisely 25 CBS stu-dents put in 30 hours of voluntary work to help with the planning and execution of Green Week - a week consisting of a lineup of successful companies shar-ing their sustainable initiatives and thoughts The overwhelming interest in sustainability and sustain-able business among the students has made it evi-dent that the Green Associate Program should con-tinue in 2013 We at CBS Goes Green look forward to this as well as all of the other initiatives we will be conducting in 2013

The following is an extract of an article that three of the associates wrote themselves This extract shows the associatesrsquo own experience working with CBS Goes Green

What does it mean to be an

associate with CBS Goes Green

In Week 39 CBS turned into a plethora of green initia-tives and events in order to make CBS reach its sustaina-bility goals for 2020 Both students and employees at CBS were asked to become a Green Ambassador to help CBS be smarter greener and better

But many of you may wonder how it is to be one of the people behind the scene As associates we have been help-ing out before and during Green Week in order to establish an event that would reach all corners of CBS This has re-quired both time and effort in order to make things work out but in the end there are also a lot of gains from being an associate

Firstly as an associate you get to expand your network You get to work with people from different studies countries and ages and you also get to talk to many different people while promoting

A bonus about being an associate is also that you get an official certificate which can be attached to your resume This shows that you have put an effort into making Green Week happen

Furthermore by being an associate you feel like you have a larger impact on making CBS a greener place Instead of being an ambassador and only doing the things you can do you get to be the person who raises awareness about sustainability You may influence people to make the right choices and it makes you feel good

Lastly it also gives you a feeling of responsibility because you work under an official part of CBS CBS Goes Green ndash a unit with a clear agenda and a clear vision

By Michael Nguyen Christian Charity and Christian-Philip Lundahl

Updates from partner organizations at CBS

23CSQ

International conference on sustainable biofuels presents latest research

By Barbara Louise Bech Department of Business and Politics CBS

EU Renewable Energy Directive

In 2009 the EU RED set a mandatory target for member states to use a minimum of 10 renewable energy sources in the transport sector by 2020 of which biofuels is expected to be the main contributor This is part of a policy to cut greenhouse gas emissions promote the green technology sector develop rural areas and reduce dependency on fos-sil fuels Due to increasing controversies claiming lack of sustainability in first generation biofuels based on food crops recently the EU pro-posed an amendment to the Directive limiting the share of first gener-ation biofuels to 5 of the targeted 10

The debate quickly zoomed in on the sustainability criteria as outlined in the EU RED drawing attention to the lack of social safeguards The general consensus is that the concept of sustainability is too narrow-ly defined Several case studies (Mozambique Brazil and Indonesia) show that basic labor and human rights of local populations are not protected by RED and the directive is more viewed as an environmen-tal safeguard This discussion raised questions in regard to the effects of RED globally (eg sustainable production in developing countries) and in this context whether EU legislation can have a lsquotrickle downrsquo effect on national standards of nation-states outside the EU In this re-gards one could ask if enforcement at the local level falls under the re-sponsibility of the EU but since first generation biofuels are produced outside the EU it is an important issue for European consumers ndash al-though interest is currently mainly driven by NGOs

On November 19-20 2012 the Copenhagen Biofuels Research Network (COBREN) held an international conference on sustainable biofuels inviting 30 research-ers from around the world to present and discuss their latest research During the two day conference focus was the sustainability criteria of the EU Renewable Energy Directive (RED) voluntary certification schemes and their impacts on sustainability and social safeguards in producer (developing) countries in particular and governance complexity of the biofuel system which has grown considerably over the past decade

Rough guide to biofuelsThere are two types of biofuels biodiesel and ethanol First generation biofuels (1G) are based on food crops and feed stocks such as palm oil soybean and rapeseed used for the production of biodiesel and sugarcane and corn for ethanol The produc-tion of biofuels increased heavily in the 2000s questioning the sustainability of 1G A number of issues have been claimed as key impediments to sustainable biofuel production such as deforestation competition with food production and increasing food prices loss of biodiversity lack of social and environmental safeguards and indirect land use change (ILUC) These contro-versies have led to a call for the promotion of second generation biofuels (2G) which are typically based on agricultural waste (eg straw) plants and forestry residues (also called lignocellu-losic biomassmaterials) However the immediate problem is that there is yet to be developed a market for 2G as they are more costly to produce (require longer and more complex production process)

CBS Sustainability Platform co-director and organizer of the COBREN conference Stefano Ponte doing a presentation

Event

24 CSQ

Voluntary certification schemes

In relation to how standards and certifications can impact sustainable biofuel production discussions pointed to the important difference be-tween mandatory and voluntary schemes As the controversy of sus-tainable biofuels in particular first generation is rolling out special attention has been given to biofuel production competing with food production ILUC value of emissions reduction and environmental and social issues This have off sprung a proliferation in private certifi-cations and during the conference it was discussed intensely whether these schemes have an actual effect on sustainability Depending on the point of view certifications can fill out the holes in legislation and act as a tool to force companies to comply with sustainability crite-ria However the development processes of new certifications may not be inclusive of relevant stakeholders (eg representatives of local populations) Additionally the nature and governance of the networks steering these processes is not always transparent and may favor one interest over the other This intense discussion led to the question of the purpose of certifications Can we use them for anything other than as a CSR PR tool as long as consumer awareness is as low as it is and how do the different regional drivers influence sustainability as a concept The answers to these questions are not easily found and it will be interesting to observe the future development and partnership between public and private sector

Governing the biofuel industry

Within the past decade biodiesel production has risen from below 30PJ in 2000 to 572PJ in 2009 globally and fuel ethanol production has increased from 340PJ to 1540 PJ respectively As the market expands more actors eg governments international organizations civil soci-ety and NGOs private sector networks and companies and profes-sions (biofuel experts and consultants) get involved and play different roles to promote their own agendas Being an emerging industry the structure of the biofuel system shows hybrid forms of governance with many actors As controversies of biofuelsrsquo sustainability develop more issues are added to the agenda giving life to more actors and interests in the governance structure Research shows a shift in power balance as private companies and NGOs increasingly push the agenda The dis-cussions during the conference centered on the complexity of sustain-ability issues calling for mixed governance responses and governance instruments such as standards and certifications which in return need to be followed up with endorsement instruments Given these com-plexities the question is whether the biofuel industry is too difficult to govern as long as the governing systems (for instance the EU) cannot accommodate expectations of all stakeholders

Indirect land use change (ILUC)ILUC is the unintended consequence in terms of more carbon emis-sions due to land use change around the world induced by the expan-sion of croplands for biofuel production When land that could be used to grow food and feed crops is used to grow energy crops this leads to existing agricultural production moving to another area or country where land is converted When this land is cleared and converted to cropland and because natural lands (rainforests and grasslands) store and sequester carbon in their soil and biomass a net increase in GHG emissions can occur Due to this change in the carbon stock of the soil and the biomass ILUC has consequences in the GHG balance of a biofuel Adding to this complexity models for ILUC calculations are not mainstreamed and thus difficult to assess internationally

25CSQ

Mellemfolkeligt Samvirke (MS) or Action Aid Denmark is a Danish NGO founded back in 1944 The

organizations key objective is to fight poverty by ensuring greater political influence for the worldrsquos poor and margin-alized at the local national and international levels MS works to bring about long-term development in the worldrsquos poorest countries focusing especially on education co-

operation and the ability to organize MS mainly works in Africa Read more about the organizationrsquos work

at wwwactionaiddk

Action Aid

A private sector view on the future of sustainable biofuels

By Barbara Louise Bech Department of Business and Politics CBS

nergy security continues to be an eminent concern in a world of finite resources For a long time biofuels have been viewed as

one of the key solutions to replace our dependency on fossil fuels and battle climate change but in recent years controversy has contested the sustainability of first generation biofuels based on food stock Issues such as lack of environmental safeguards causing loss of biodiversi-ty and deforestation and lack of social safeguards ensuring land and labor rights in producer (developing) countries have been claimed as key impediments to sustainable biofuel production Critical observers also argue that the emission savings of biofuel use in compar-ison to fossil fuels can become much smaller (or even disappear) when indirect land use change (ILUC) is included in the calculations Furthermore bi-omass production from food stock is argued to compete with food production and in-creasing food prices

The Danish NGO Action Aid has been engaged in biofuels since 2008 and is par-ticularly involved in protecting womenrsquos rights and preventing land grabs in de-veloping countries ldquoWe are very concerned about land use when it comes to first genera-tion biofuels This relates both to the people who are dependent on the land and to food security We rarely see good combinations where the local populationrsquos needs are taken into consideration The energy crops grown on the local farmerrsquos land donrsquot benefit him and local consumption is essential for developmentrdquo explains Kirsten Hjoslashrnholm Soslashrensen political advisor Action Aid Denmark

It is therefore believed by many that second generation biofuels is the only way forward to avoid competition with food and avert ILUC Next generation biofuels is based on lignocellulosic biomass such as agricultural and household waste and forest residues The Biorefining Alliance represents a cluster of leading Danish companies within the renewable energy sector with an ambition to promote second gener-

ation biofuels and make Denmark a world leader of technology and bi-ofuel productionldquoDenmark has very strong competencies in green tech and as a society we have put a lot of money in its development This is go-ing to be a huge deal globally so we are asking whether Denmark wants to be a customer or a producer What we are working for is of course that we become a lead exporter of technology but also that Denmark produces second generation biofuels commercially Even though we are a small country we cannot settle on selling know-how Denmark also needs to have some industrial productionrdquo says Anne Grete Holmsgaard di-

rector of Biorefining Alliance In her view Denmark needs to keep a firm grip on developing innovation or it will slowly but

steadily move out of the country In this regard she views sustainability criteria for biofuels as an in-

novator and not a hindrance

The Sustainable Biofuels Network (SBN) is another cluster of private companies trying to facilitate the transition from fossil fuels to biofuels in the transport sector For the aviation industry biofuels are considered

to be the only alternative to fossil fuels and the industry firmly believes that biofuels will

survive according to Robert Arendal chairman of SBN ldquoThe aviation industry has set very clear

guidelines for the use of biofuels We are not going to use food based biofuels and we will minimize the use of fresh

water By 2050 our target is to use 50 biofuels in the global aviation so we really need to move fastrdquo he explains adding that living up to sustainability criteria includes being careful about where biofuels are produced ldquoBut it should be produced all over the world and close to the 1600 airports worldwide that account for 95 of all aviationrdquo

he technology for second generation biofuels is already here but the problem is that production costs are too high and there is no market As long as prices are not competitive with conventional fuels it will be difficult to move forward ldquoOne might ask why there is no market The customers are certainly there so if I was in the business of producing

E

As part of the COBREN international conference on sustainable biofuels private sector civil society and academia were invited to give their views on sustainable biofuels at a roundtable discussion at an open public seminar held at DIIS November 19 2012

Event

26 CSQ

SBN is a ldquobreeding groundrdquo and ldquoknowledge centerrdquo for the biofu-els industry where synergies are created between all parties within

the biofuels sector SBN focuses in promoting supporting and enabling the commercial development and use of clean and sustainable biofuels for Heavy Road Transportation Shipping and Aviation Emphasis is put on the importance of global standards for biofuels with local as well as international institutions and decision makers to encourage con-

structive guidelines and rules for the development of biofuels SBN adheres to EUrsquos sustainability criteria SBN is a non-profit asso-

ciation established in 2008 Visit their website for more info at wwwsustainablebiofulsdk

Sustainable Biofuels Network(SBN)

The Biorefining Alliance (BA) was founded December 2011 by DONG Energy Novozymes Haldor Topsoslashe and the

Danish Agriculture and Food Council and is a three-year project to politically promote Denmarkrsquos position in the entire value chain from residues to bio-based products The Alliance has set forth a number of recommendations to achieve a sustainable Danish bio-economy Among other these include (i) that all organic

waste be considered a resource (high-value recycling and storable energy) (ii) reducing the cost of manufacturing 2G

bioethanol and (iii) contemplating the establishment of a national center for sustainable materials

Biorefining Alliance

second generation biofuels I would get started right awayrdquo says Robert Arendal The Biorefining Alliance is working on lowering the costs and recommends a stronger regulatory framework with binding targets as it has been done for the wind industry ldquoThere already is a market for first generation biodiesel which is the least sustainable biofuel We need to make a market for second generation biofuels and we know that binding targets work I donrsquot think it is possible to create a market for the lsquogreen consumerrsquo as you have one for organic food products but I believe that a niche market for HRT (Heavy Road Transport red) such as public bus transport could be a supplementrdquo concludes Anne Grete Holmsgaard

How the future for sustainable biofuels will shape depends on political will to create a market for second generation and the ability of private sector to innovate and bring prices down Oil production is claimed by some to already have peaked and exploring new geographical areas for extraction could be as costly as kick-starting the market for second generation biofuels although much less sustainable As the American ecologist and environmentalist Bill McKibben wrote in his book ldquoDeep Economyrdquo back in 2007

Even before we run out of oil wersquore running out of planetrdquoldquo Bill McKibben

27CSQ

The Transparency-Sustainability NexusA workshop on the practices meanings and tensions of organiza-

tional transparency

n December 5 2012 the Department of Intercultural Communication and Management (ICM) hosted an in-

ternational workshop supported by CBS Sustainability Plat-form and ICM The workshop was organized by Oana Brindusa Albu Mikkel Flyverbom and Hans Krause Hansen respectively PhD Fellow and Associate Professors at ICM The idea of the workshop was spurred by the observation that while ideals of transparency like lsquoopennessrsquo lsquodisclosurersquo and lsquoreportingrsquo are pro-liferating these years the actual construction of transparency within and across organizations is poorly understood Most re-search on transparency is highly normative if not celebratory just as popular discourse about transparency not least in the areas of sustainability and corporate social responsibility is obsessed with ideals of accountability performance and effi-ciency and pervaded by an optimism currently pushed to its extreme with the explosion of new media technologies

But the truth is that we generally know very little about the implications of ideals of transparency when translated into practice in specific issue areas and organizational contexts Importantly each of the contributions to this workshop clear-ly suggested that the contemporary politics of transparency is much more complex contradictory and dynamic than tradi-tionally recognized All papers examined various aspects of the contemporary obsession with transparency and specifically the increasing use of disclosure techniques within and around or-ganizations the rationales or myths underpinning these meas-ures their intended and unintended consequences including implications for identity-making management and govern-ance practices

Clare Birchall initiated the workshop with a paper titled lsquoThe Cultural Politics of Disclosurersquo highlighting how transparency has been positioned as a superior form of disclosure in popular management and organizational literatures and in policy docu-ments In her account the growing preference for transparency is a consequence not only of the positive qualities seen to be intrinsic to transparency itself but also a response to the per-ceived negative characteristics of other forms of disclosure such as gossip scandal and rumor Lars Thoslashger Christensen (with co-author Joep Cornelissen) then analyzed transparency as one of the foundational myths of modernity myths understood here as descriptions of the world in a narrative form which seeks to produce meaning and direction for a community and its members Such lsquoMyths of Transparencyrsquo sustain numerous organizational practices ndash including openness information provision and auditing But as argued by the authors there are conflicting evidence regarding the capacity of such practices to create insights and understandingThat aspirations and techniques of transparency can have seri-ous repercussions was demonstrated by Peter Skaeligrbaeligk (with co-author Mark Christensen) in the paper entitled lsquoAuditing and the purification of blamersquo which analyzed how auditing auditing practices and institutional entities including the po-liticized environments surrounding them are mobilized and participate in blame games and allocation In his paper titled lsquoQuantification transparency and the costs of reassurancersquo Henrik Vollmer analyzed various dimensions of the role of nu-merical records and signaling in generating transparency trust and mistrust

By Hans Krause Hansen Department of Intercultural Communication amp Management

Event

O

28 CSQ

Some of these aspects were also touched upon in the paper lsquoDisrupted Disclosures The Politics of Visibility and Surveil-lance in the Extractive Industriesrsquo by Hans Krause Hansen (with co-author Julie Uldam) which explored the wider field of visibility and surveillance in which contemporary transpar-ency policies are unfolding with examples from the extractive industries Oana Brindusa Albu in her lsquoTransparency and the organizational self everyday politics of identification in Cooperativesrsquo examined the paradoxical effects of values and practices of transparency on collective identity formation pro-cesses drawing upon her ongoing multi-sited fieldwork in co-operatives Under the heading of lsquoThe Improbability of Secrecyrsquo Mark Fenster analyzed the intersections of secrecy and trans-parency with examples from the US government and its efforts to control information which according to the author does not necessarily stop the flow of information Finally Mikkel Fly-verbom and Christina Garsten examined lsquoThe sway of (big) data ndash calculations and advocacy in the name of transparencyrsquo focusing on the operations of data-based forms of corporate lsquotransparency evangelismrsquo and advocacy through revelation including examples from Center for Global Development and Google

In all the workshop was highly successful in investigating not only the historical and mythical foundations of transparency but also the different practices and forms of transparency that currently shape organizations and a wide variety of issue areas It also provided a reminder of the usefulness of investigating a concept of transparency in relationship to a host of other con-cepts such as secrecy myth gossip blame surveillance visi-bility identity information and knowledge The organizers of the workshop wish to thank all workshop participants for their valuable contributions and the CBS Sustainability Platform and ICM for their support

Hans Krause Hansen

Mikkel Flyverbom

Oana Brindusa Albu

ASSOCIATE PROFESSORPHD (ICM)

ASSOCIATE PROFESSORPHD (ICM)

PHD FELLOW (ICM)

29CSQ

Louise Lyngfeldt Gorm Hansen is a PhD Fellow at the Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) She has a back-ground in Chinese Studies from Copenhagen University (BA) the Asian Studies Program at CBS (BSc) and in International Business Stud-ies and Sustainable Business (MSc) from CBS

The aim of her cross-disciplinary PhD project is to explore how the Chinese hydropower sector works with environmental sustainability and more particularly how the concept is understood and performed in the planning phase of a major dam project in the southwestern Chinese province of Yunnan

The aim of the project is to gain a deeper under-standing of how Chinese firms in the renewable energy sector such as hydropower companies understand and value sustainability as well as how such firms tackle the increasing pressure to deliver socially and environmentally balanced solutions to one of Chinarsquos major challenges lowering CO2 emissions in a time with rapidly rising water and energy demands Theoretically the project draws on - and aims to contribute to ndash a combination of Asian Studies and Science and Technology Studies

PHD FocusLouise Lyngfeldt Gorm Hansen

HYDROPOWER

SUSTAINABILITY

30 CSQ

HYDROPOWER

SUSTAINABILITY IN

CHINAy PhD project combines two of my main research interests China and

environmental sustainability I have studied China for a number of years mainly because of an interest in how the Chinese view sus-tainable development So since finishing my masters I have known that I wanted to study how China plan to tackle a sustainable tran-sition in the years to come I saw my chance when CBS announced PhD scholarships in

DanishEuropean-Chinese social science research in collaboration with the newly es-tablished Sino-Danish Center for Education and Research (SDC) and started my PhD in October 2011My PhD project focuses on the Chinese energy sector more specifically the rapidly growing part of the energy sector engaged in renewable energy Here I examine Chinarsquos second largest source of electricity gene-

eration hydropower In recent years China has become increasingly focused on reduc-ing CO2 emissions While some countries such as the US and Australia are decommis-sioning hydropower dams China is looking to large-scale hydropower construction as one of the solutions to a future clean energy supply This means that hydropower devel-opment plays a central role in Chinarsquos sus-tainable transition

However utilization of hydropower is con-troversial not least in China and has met increasing resistance in recent years particu-larly from Chinese and international NGOs the media as well as the scientific commu-nity Critique is most often focused on how or if social and environmental sustainability can be ensured in such large scale projects as the social and environmental impacts of large scale hydropower development are very complex and difficult to measure More gen-erally the viability of relying on hydropow-er as a future source of energy is also being questioned One of the major concerns here is the overarching issue of climate change ie glaciers shrinking and yearly water runoff decreasing This means less stable water flow for hydropower and less water for other pur-poses such as agriculture water supply for down-stream countries etc

By Louise Lyngfeldt Gorm Hansen Asia Research Centre Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) ndash sinodanishcenterdk

M

Picture from SinoHydro promotion material 2011

Research

31CSQ

In contrast to for example the wind power sector in China in which many foreign com-panies have invested the hydropower sector is dominated by a few large state-owned en-terprises Our knowledge of Chinese state-owned enterprises is still limited and there-fore my PhD project is also part of a larger research project at the Asia Research Centre with focus on Chinese state-owned enter-prises and the reform of the public sector in China

In combining these interests my PhD exam-ines how Chinese state-owned enterprises in the hydropower sector tackle the demand to expand hydropower development to help reduce Chinarsquos CO2 emissions while be-ing under increasing pressure to deliver on sustainability principles in the planning and execution of large scale hydropower pro-jects The pressure comes mainly from NGO organizations the media and the scientific community both at home and from abroad I am conducting a case study focused on a specific river in south-western China which has ndash until now ndash not been fully developed for hydropower and the plans for addition-al hydropower dams on the river are still undergoing assessments The project has continually stalled due to disagreements between Chinese government officials at all levels NGOs the media the increasingly deregulated but still state-owned Chinese hydropower companies and the scientif-ic community However the project has very recently been reopened and so will go through another round of assessments in the near future The case is an excellent example of the complexity of hydropower develop-ment decisions in China but it also highlights some of the social and environmental conse-quences of the global push to decrease CO2 emissions

China plays and will continue to play an increasingly important role globally in the years to come However the country also fac-es enormous challenges - not least regarding the environment These challenges also affect economies in Western Europe - for better or worse My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective so

that we here in Europe and in Denmark can more knowledgably and actively engage with China to help solve some of these difficult challenges that eventually affect us all In do-ing this I contribute to gain a better under-standing of the Chinese perspective on envi-ronmental sustainability that can be of use to companies wanting to engage in the Chinese renewable energy sector

My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective rdquoldquo

Picture of the case-river taken by the author in 2012

32 CSQ

FROM BLUEPRINT TO PRACTICE

ENERGY EFFICIENT CONSTRUCTION

By postdoc researcher Satu Reijonen Department of Organization CBS

In the EU almost one third of CO2 emis-sions are attributed to energy used in the construction and use of buildings (FIEC

2007) It is therefore not surprising that the construction sector has recently been subjected to a substantial amount of policy measures to combat its negative effects on climate change In Denmark the state has posed new thresholds for the energy efficien-cy of new buildings including a plan for con-tinuous improvement in the area This far the industry has responded well to these stricter performance requirements In the future re-quirements will rise to levels that are not that easily achieved in the coming years build-ings will have to use 25 less energy than in year 2008 How can these ambitious goals become business as usual

One of the most discussed ways besides add-on technologies such as windmills and solar panels to enhance the energy efficiency of a building is through an energy efficient phys-ical design In practice this means reduction of energy used for heating cooling down and lighting of the building through an optimal orientation and dimensioning of the build-ing

Integrated energy design contrary to add-on technologies can be achieved on a rath-er modest additional budget This should be good news for the sector that today is eco-nomically pressed Indeed today many low energy building projects claim to use the in-tegrated energy design method (IED) when seeking to meet the most ambitious energy related goals In this commentary I wish to discuss some challenges related to the imple-mentation of this design tool

The integrated energy design method sug-gests that one of the main problems in not achieving energy efficiency is that energy related concerns become integrated into the design process too late The method consists of two elements the first of which addresses the need to bring in energy related knowl-edge throughout the design process It sug-gests that design teams ought to be multidis-ciplinary and that architects engineers and experts should work together either co-lo-cated or in a series of workshops Further-more it suggests systematizing energy quali-ty follow-ups into the design process This is all very relevant and inspiring

Oddly enough a closer look on the actual design practices reveals that few seem to ac-tually follow the method of integrated energy design to the point This poses an interest-ing question about the challenges related to the use of such management technologies as vehicles for increased energy efficiency in construction Maybe it is about time practi-tioners and researchers ask themselves what are the boundaries of and challenges related to the use of these tools ndash and what else is required for organizing for more energy effi-cient building design processes

A revolution of relations

Integrated energy design points to the need to bring energy related expertise into the de-sign process at an earlier point In order to achieve this cooperative practices between different professional groups are advocated for Historically energy experts have most-ly been used to respond to rather advanced architectural plans Shared workshops and co-localization suggest a change in these business as usual relations But are they pos-sible and what type of changes do they ac-tually imply in order to function as wished

Research

33CSQ

Satu Reijonen is postdoctoral scholar at the Department of Organization at CBS In her on-going research project she investigates how architects and energy engineers two different profes-sions cooperate and coordinate their work regarding energy related ques-tions in construction design The ways in which relations between and roles of these professions become consti-tuted through socio-material arrange-ments are a central topics in her work Besides studies of work Satu has con-ducted research on environmentally friendly products and markets

ABOUT SATU RAIJONEN

The initiation of this type of new working forms is certainly beneficial for energy effi-cient design However for several reasons they are more difficult to make work than one would assume While it may sound rea-sonable it is after all a tall order Integrating energy related practices into an environment where different visions professions and in-terests meet and the divide between what one profession does is clearly and historically demarcated is demanding While architects need to make room for the intervention of energy experts into the creative work energy experts have to become capable of working creatively and relate to and follow the visual and aesthetic cues from architects In order to work these kind of changes in the profes-sional roles and relations have to resonate with the skills and visions of individual work-ers not only management level design strat-egies It is not surprising that organizational change scholars remind us of the possibility of loose coupling from the strategies placed at the management level (March 1981) What integrated energy design suggests is a kind of a revolution in the ways in which both the architects and the energy engineers envision their role and space of mobility

Linear tools in an unlinear design process

Integrated energy design suggests that the energy performance of the emerging build-ing design be followed up at certain points during the design process The method de-picts a rather mechanistic and linear under-standing of a design process consisting of phases within which iteration may occur While energy related issues may be dis-cussed as quality goals during these phases the method places a lot of emphasis on the check ups performed in the transition from one phase to another Design processes how-ever can also be characterized in a different manner unlinear exploratory and whirl wind type of practices where clear cut phases hardly exist (Akrich 1992 Van de Ven et al 1999) This also applies to the architectural design processes where the object of the de-sign is emergent (Yaneva 2009) This entails that the product the building may change in unexpected ways during any day of the de-sign process If this alternative description of the design processes is viable delegating energy related issues to some predetermined check up episodes may strike a false accord and indeed be contradictory with the aim of enhancing coordination and cooperation between professional groups What happens in between the predetermined checkups may very well be where the energy efficiency of the building becomes configured and where the intervention from the energy experts

would come most needed Perhaps this is why the best performing projects do not blindly follow the steps of the IED method Check ups however and no doubt play a role in verifying and making visible the energy performance for partners outside the design team

Integrated energy design as many other sus-tainability standards and guidelines make visible systematize and legitimize the ex-istence of environmental management and sustainability issues in organizations and work processes In this such way tools create awareness and legitimacy for environmental and sustainability issues The integrated en-ergy design method also suggests a possible way of thinking about what type of design practice might help us to achieve the stricter energy requirements of the future It howev-er falls short in becoming the change agent it suggests This is hardly surprising as a meth-od or a standard of any kind should only be seen as a possibility or as an opening for an inquiry of what the practice could be about Reconfiguring a well established practice is hard work and it would be foolish to trust that a design method would achieve it by itself What the method does is to alert us of the more profound changes in the pro-fessional roles and relations that is needed in order to enable the change However the method due to its rather mechanical under-standing of the design process may come to work against its own ambition of integrating energy issues into the design work In its quest for integration the method defines at which points in time the architectural and the engineering project has to be checked for its energy performance This approach may lead to bringing in energy related concerns in some artificially created points in a design process which may additionally compart-mentalize energy related issues from where the design really happens

Integrated energy design as many other sustainability standards and guidelines make visible systematize and legitimize the existence of environmental management and sustainability issues in organizations and work pro-cessesrdquo

ldquoLiteratureAkrich M (1992) The De-Scription of Technical Objects in Shaping Technology Building Society Studies in Soci-otechnical Change eds WE Bijker and J Law The MIT Press Cambridge Massachusetts pp 205-224

FIEC 2007 The impacts of buildings on climate change httpwwwbuildingsplatformeuepbd_publicationdocFIEC_Memo_p2919pdf on 1222008

March JG (1981) Footnotes to Organizational Change Administrative Science Quarterly vol 26 No 4 pp 563-577

Van de Ven A D Polley R Garud and SVenkataraman (1999) The innovation Journey Oxford Oxford Univer-sity Press

Yaneva A (2009) The making of a building A pragmatist approach to Architecture Bern Peter Lang

More about integrated energy design(IED)

httpwwwintendesigncomosloIntendnsfAttachmentsGuideline_Version_2pdf$FILEGuideline_Version_2pdf

34 CSQ

The climate challenge in

shipping

ldquoGlobal shipping faces two major challenges both of which are caused by its reliance on fossil fuelsrdquo

By Reneacute Taudal Poulsen Department of Innovation amp Organizational Economics

RENEacute TAUDAL POULSEN

ASSOCIATE PROFESSOR DEPARTMENT

OF INNOVATION AND ORGANIZATIONAL

ECONOMICS COPENHAGEN BUSINESS

SCHOOL

orecasts show that the shipping indus-tryrsquos CO2 emissions will most likely continue to rise in the next two to

three decades as demand for world sea-borne trade will expand At present global shipping accounts for approximately 33 per cent of global CO2 emissions but this share will most probably increase in the coming years if many onshore industries succeed in their aims of reducing emission levels

At the same time rapidly rising fuel costs put heavy strain on shipping company budg-ets Historically and until very recently fuel costs were only a minor concern for ship-ping companies but now they often exceed 60 per cent of variable operational costs Fuel savings made through energy efficiency improvements thus represent a win-win sce-nario for the shipping industry and for so-ciety at large They simply make good sense for everyone

Despite the strong incentives for fuel sav-ings numerous studies have demonstrated that shipping fails to implement cost-ef-fective measures to reduce fuel consump-tion Fuel-saving technologies are readily available in the market and in many cases pay-back periods are very short (less than a year) Changes in operational habits which require few if any investments also hold a significant potential for fuel savings

Global shipping thus holds several classic examples of energy-efficiency gaps Gaps occur wherever cost-effective measures to improve energy efficiency fail to materialize The causes for energy efficiency gaps have been a favourite research topic within the field of energy economics for decades and economists sociologists and political scien-tists have been able to identify several means to bridge the gaps However within the mar-itime domain energy efficiency gaps and the climate challenge remain neglected issues Legal barriers

Shipsrsquo fuel consumption rises steeply with speed Hence slow-steaming or just minor speed reductions can lower consumption and emission levels significantly Since oil prices started to rise rapidly a few years ago shipping companies have indeed resorted to various slow-steaming practices and com-panies which succeed in this regard have been able to gain competitive advantages In other words actors in the industry are trying to bridge the energy efficiency gap However and in spite of the strong price signals from the rising fuel prices a potential for fuel sav-ing through slow steaming still remains

FNew CBS research project

A new three year research project at CBS under-

taken by Reneacute Taudal Poulsen for the Department

of Innovation and Organizational Economics will

examine the climate issues bringing insights from

energy economics and innovation management

into the field of shipping economics The project

which is financed by The Danish Maritime Fund

runs from 2012 to 2015 The project asks why en-

ergy efficiency gaps continue to occur in shipping

and how shipping companies and the maritime

industry at large can use innovative business

models and process innovation to turn the climate

challenge and the rising fuel costs into a business

opportunity Energy efficiency gaps occur both

in daily operations and when investments in new

vessels are made This article will briefly present

two examples of energy efficiency gaps from

the operational level and some of the preliminary

findings of the project

References

Jaffe AB and RN Stavins 1994 lsquoThe energy efficiency gap What does it meanrsquo Energy Policy 22 (110) 804-10IMO 2009 Second IMO GHG Study 2009 London International Maritime OrganizationMoriarty P amp D Honnery 2012 lsquoEnergy efficiency Lessons from transportrsquo Energy Policy 46 1ndash3Poulsen Reneacute Taudal 2012 lsquoEmissions and energy efficiency - the twin challenges for shippingrsquo Mercator Maritime Innovation Research and Education MarchJune 447-454

Reneacute Taudal Poulsen is Associate Professor at the Department of Innovation and Organizational Eco-nomics at CBS He is also affliated with the Centre for Shipping Economics and Innovation at CBS Reneacute Taudal Poulsen holds a PhD degree in marine environmental history from the University of Southern Denmark and he has worked within the field of maritime business studies for the last seven years He has published in such journals as Fisheries Research Business History and Scandinavian Economic History Review

His current research intersts concern the environmen-tal challenges faced by the global shipping industry and business model innovation in the maritime domain

Research

35CSQ

It is clear that shipping companies cannot fully bridge the energy efficiency gap alone In fact factors beyond the control of in-dividual shipping companies and various structural or legal barriers prevent shipping from fully realizing the slow steaming po-tential

Port congestion remains a world-wide prob-lem and causes ships to spend remarkably long periods inactive Despite the financial crisis and the large drop in shipping freight markets after 2008 many loaded vessels sit at anchor outside ports waiting for berths In some cases they wait for a few hours In other cases for days weeks or even months Instead of waiting the ships could have re-duced speeds and saved fuel And the de-livery and the loading of the cargo in port would not have been delayed in any way However in many cases shipping companies or ship operators cannot reduce speed in spite of port congestion

Educational barriers

Energy efficiency gaps in shipping are also evident when the fuel consumption levels of sister ships are compared Even though the vessels are identical and operate in the same waters studies have shown that their fuel consumption may differ by several Decisions made by the crews onboard and by managers in the onshore organizations clearly influence the level of fuel consump-tion For instance if a captain selects only very small course deviation margins when coding the autopilot of the ship the shiprsquos rudder will move frequently to keep the ship on the exact course all the time This will slow down the ship and cause higher fuel consumption than if the captain had allowed for slightly wider margins and the wider margins would not have any effect on the safety of the ship Decisions made by the commercial depart-ments eg on how to crew the vessels how to monitor vessel fuel consumption or which new equipment to install onboard may also

have a large impact on fuel efficiency and emission levels If shipping company man-agers can nurture a fuel saving culture this could potentially make a difference Since 2007 or 2008 shipping companies have in-deed started to facilitate such organizational changes but educational barriers remain a problemOnshore truck drivers are now offered fuel saving courses but fuel-saving is not a major part of the traditional curriculum in nautical schools or in the commercial education of shipping trainees For good reasons the nau-tical educations have focused on maritime safety but this has caused them to neglect the climate challenge in shipping and the is-sue of fuel saving In fact no single nauticaltext book on maritime fuel savings has yet been published and according to teachers and students in the nautical schools this serves as an educational barrier to ener-gy-efficiency improvements The technical level of education for commercial employees in shipping companies may also hinder im-provements in energy-efficiency Some com-

mercial shipping employees may not have sufficient training to fully see and acknowl-edge the consequences of their decisions on fuel consumption In short it seems that fuel awareness and the educational systems have responded more slowly to the climate chal-lenge than the rise in fuel prices may other-wise suggest

For shipping to bridge energy-efficiency gaps education ndash both nautical and com-mercial ones ndash clearly is an area to set in Here the potential for innovative solutions is both evident and pertinent Changing educational systems and awareness is no easy task bearing in mind the global nature of the shipping industry and international crewing of the world fleet It is clear howev-er that educational upgrading is necessary for shipping to effectively address the cli-mate challenge effectively

Charter parties between ship-operators and shippers state a specific time of arrival for the vessel and in order to avoid claims ships proceed to port accordingly regardless of berth availability Experiments with new more flexible charter parties which allow for slow steaming in case of port congestion have recently been made Shipping compa-nies have generally been enthusiastic about this flexibility but often shippers remain skeptical Lack of trust between shippers which need the loading of their cargoes as soon as possible and shipping companies may be a cause for this discrepancy Even in cases where the savings made from slow-steaming are split between shipping companies and shippers shippers have re-mained skeptical Port queuing systems may have a role to play here

Many ports including some of the major container iron ore coal and grain ports serve ships on ldquofirst-come first-servedrdquo ba-sis Ships only receive their ldquoticketrdquo in the

waiting line upon their arrival at the port Again lack of trust between the ship-oper-ators shippers and the port authorities may explain this phenomenon Moreover port authorities currently do not have incentives to change queuing practices because they cannot gain a share in the fuel savings made from slow-steaming

The problem is particularly strong in the major tramp shipping segments of tanker and dry cargo shipping where vessels act as ldquotaxis of the seardquo serving numerous shippers and rarely calling at the same ports If the fleet from a shipping company only calls at a particular port once a year and the compa-ny has very short-term relations to individ-ual shippers building trustful relationships between the parties remains a major chal-lenge Solving this problem and realizing the full potential of slow steaming will require systemic innovation in shipping and port systems and further studies are required to identify possible solutions

36 CSQ

The Wind turbine industry -

Emerging global innovation networks in Europe and China

The wind turbine industry has developed into a global network encompassing a large amount of diverse actors within innovation production and installation of wind turbines across the globe

By Stine Haakonsson and Julia Kirch Hollitsch Department of Business amp Politics CBS

market for wind energy Chinese actors have turned China as a location into another im-portant lsquohubrsquo in this network This has led to new forms of innovation collaborations between European and Chinese actors The result has been a complete re-configuration of the industry over the past decade In the International Business and Economic Geog-raphy literatures the development of global production networks in which lead-firms be-come orchestrators of dispersed production

enmark has traditionally played a key role as an lsquoinnovation hubrsquo and com-

panies in Denmark remain among the lead firms within the wind turbine industry Re-cently the industry has reorganized from being located predominantly in the Triad regions (mainly in Europe and the US) to becoming a globally dispersed industry This development can partly be explained by de-velopments in international and national politics Due to the growth of the Chinese

activities in globalized value chains is well established theoretically as well as empiri-cally In the globalization process lead firms relocate production activities to low cost lo-cations by off-shoring and through vertical disintegration and outsourcing to specialized suppliers Producers of wind turbines are no exception However until recently the mar-ket and innovation activities remained con-centrated in Europe and US

With the recent focus on global politics for a post-carbon society the market for wind tur-bines has experienced an immense growth and a high degree of market globalization New locations have developed into main markets One of these is China which since 2010 has been the largest market for wind turbines in the world (in capacity installed) The globalization process in the wind tur-bine can be explained by a combination of offshoring of production by European lead firms mainly through foreign direct invest-ment and establishment of domestic lead firms in emerging markets In 2010 there were four Chinese-owned companies among the top-10 producers of wind turbines as compared to 2003 where all firms on this list were from Europe and the US

D

Julia Kirch Hollitsch

Stine Haakonsson

Stine Haakonsson and Julia Kirch Hollitsch from Depart-

ment of Business and Politics CBS are engaged in the

Sino-Danish Center for Research and Education (SDC)

project on Wind Energy in China Both research on the

current restructuring of industries and firms at the glob-

al level (outsourcing off shoring global value chains)

In particular their research is on 1) the restructuring of

innovation and RampD activities into global innovation net-

works(GINs)2)thechangingroleofemergingmarkets

(ChinaIndiaBrazilSouthAfrica)intheseemergingGINs

and 3) technology transfer and capability building related

to renewable energy

Research

37CSQ

by adapting their products to the Chinese market and through cost-out development activities in the new locations primarily China

As a result the wind industry is today highly knowledge-intensive and internationalized Due to increased attention and investments in sustainable transition policies and car-bon-reducing technology China has over the past decade developed into a high prior-ity investment area for wind turbines Also Chinese companies are upgrading technol-ogy and innovation from the global firms through integration into GINs Moreover the production and innovation networks for wind energy become highly complex and consist of many different suppliers of com-ponents (blades gear boxes control systems bearings) resulting in a variety of network linkages among suppliers of different com-ponents and the wind turbine producers

From our empirical data including more than 40 in-depth interviews collected in 2011 and 2012 in the wind turbines indus-tries in China and Denmark we have identi-fied some very interesting patterns We have identified very different characteristics of the GINs established by the Chinese wind tur-bine industry and the European wind tur

Emerging Global Innovation Networks

Innovation processes are also moving be-yond the boundaries of individual compa-nies and national innovation systems Firms engage in cross-border innovation networks spanning different innovation systems which may be national regional or sectorial in or-der to stay competitive in the global econ-omy Chinese lead firms are entering this scene too The result is globally organized networks of interconnected and integrated functions and operations by firms and non-firm organizations engaged in the develop-ment and diffusion of innovations so-called Global Innovation Networks (GINs) Lead firms internationalize innovation through strategies of exploitation global generation of innovation and global techno-scientific collaborations Chinese wind turbine pro-ducers ndash acknowledging their resource and capability deficiency ndash pursue strategies of innovation network integration through strategies of global generation of innovation These firms link up with specialized Europe-an actors such as core component suppliers through partnerships and networks in or-der to tap into the technology of firms from developed countries and upgrade Mean-while European companies internationalize through exploitation strategies for example

bine industry Although Danish and Chinese actors are experiencing a re-organization of activities and establish networks and globa-linnovation strategies the result is very dif-ferent

The industry from Europe and US

The industry from Europe and the US hosts the lead firms in terms of core technology de-velopment Denmark has traditionally played a key role as lsquoinnovation hubrsquo in technology development and global lead firms such as Vestas and Siemens Windpower (previously Danish lsquoBonusrsquo) took its start already in the 1970s The core competences of the Danish wind turbine innovation system are based on large testing facilities and long track records mainly due to the long time-line of experi-ence The wind industry goes 40 years back and therefore Denmark has a good knowl-edge pool within establishing wind farms (aerodynamics minimizing power loss in energy transmission wind mapping and other installation-related technologies)

38 CSQ

that will make it possible to finance the pro-jects ldquoFrom then on our wind turbine pro-jects developed very fastrdquo(Interview Wind Engineer Chinese Academy of Sciences) Thus this law was a milestone for elevating renewables to a strategic position in China or as expressed by a European lead-firm ldquoWhat drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick offrdquo

Until the turn of the millennium Chinarsquos wind energy industry was largely built on donors acquisition of finished wind turbines and licensed technology from European companies spread on a very small scale into the local industry during the mid 1990s Chi-nese wind turbine technology has evolved from imitation reverse engineering and licensing in the 1980-90s combined with assistance from foreign consultants One example is how DANIDA funded a project in 1986 for Goldwind in Xinjiang which imported 13 units of 150 kW lsquoBonusrsquo (now Siemens Wind Power) turbines

To get beyond the stage of pure imitation several policies have been introduced with the intent to upgrade Chinese manufacturers to obtain indigenous innovative capabilities Policy programs were introduced to enhance Chinese companies to develop wind energy subsidizing wind energy RampD expenditures at varied levels over time establishing a re-newable energy fund and through the ldquo863 Wind Programrdquo under the Tenth Five-Year Plan (2001-2005) Local content require-ments were put in place in which develop-ers of wind energy projects were required to source 70 pct of the content in China These policies ndash which essentially forced foreign manufacturers wishing to sell wind turbines to the Chinese market to establish China-based manufacturing facilities ndash were only removed recently (in 2009) One result was that the foreign companies had to up-grade local suppliers of components

Due to the technological complexity many European (and hereby also the Danish) firms are vertically integrated and have most com-ponents produced in-house or with regular specialized suppliers According to these companies the different parts need to be well adjusted to each other to some extent even co-developed in order to enhance effi-ciency and the lifetime of the wind turbine Likewise the European industry has expe-rienced a concentration of actors with the result that there are only relatively few but large manufacturers in Europe (the larg-est ones are Vestas Siemens Gamesa and Enercon) Together these four companies accounted for about 35 of the global mar-ket in 2010 By seeing the wind turbine as an integrated system these lead firms aim at producing lsquothe Rolls Roycersquo model wind turbines These are strong in terms of qual-ity and standards but generally expensive These firms learn cost-out techniques from their engagement with partners in China

The Chinese Wind Turbine Industry

Today the Chinese wind turbine industry is overly competitive It entails more than 80 wind turbine manufacturers and the Chi-nese market boasts the highest growth rates internationally with an average growth rate of 968 percentages annually in the last three years Several large domestic Chinese wind turbine manufacturers have emerged within the last decade Sinovel and Goldwind take the largest share followed by United Pow-er and Ming Yang just to mention some of them As of the end of 2010 these four were A major driver for the development of the Chinese wind energy market has been the establishment of an institutional context as a comprehensive concerted policy frame-work addressing the development of renewa-ble energies This change in the institutional context was first reflected clearly in the 11th 5-year-plan (2006-2010) which explicitly linked environmental sustainability to the key goal of establishing what was called a harmonious socialist society signalling a socially environmentally and economically sustainable economy With the Renewable Energy Law from 2005 the Chinese wind energy industry really took off as it explicitly seeks to ensure that renewable energy pro-jects have an outlet for their output at prices

Technical barriers and the role of GINs for a post-carbon society

Despite high ambitions in terms of devel-oping innovative capabilities Chinese pro-ducers still produce almost exclusively for the Chinese market However Chinese wind turbine manufacturers have recently started an internationalisation process and some are approaching international markets Not least for tapping into new knowledge

Europe (and Denmark in particular) is per-ceived as a main location from which the Chinese companies can learn more A cou-ple of Chinese companies have already set up RampD centres in Denmark European firms have also initiated RampD centres in new lo-cations primarily China and India In other words GINs can be identified

Our research also points towards important barriers for GINs in the wind turbine in-dustry and for approaching a post-carbon global society Most importantly are the technological barriers intellectual property rights quality issues and issues of limited appropriability of knowledge Further the institutional framework remain relevant for displaying how the sector and the emerging GINs are embedded institutionally socially and technologically Whether actors trans-act knowledge technology and know-how through cooperative innovation activities also depends on how core the technology of a given technology is Still as the market grows in China it seems to have matured in Europe because of changing policies on re-newable energy To sustain the position as a global lsquohubrsquo and world leader in wind tech-nologies there is a strong need for support in Europe as this research really shows how fast the Chinese industry is moving One major result is how important networks are for upgrading companies and it seems that Chinese firms perform better in network strategies and manage to tap into relevant knowledge than the European firms

What drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick off rdquoldquoInterview Wind Engineer Chinese Academy of Sciences

39CSQ

Social Enterprise World

ForumNadine Koumlcher from 180Degrees recounts her experience from the

conference on

Rio de Janeiro Brazil 2012

In the numerous panel debates and parallel track discussion it became clear that Impact Investment is a hot topic among both social entrepreneurs and impact investors a diverse group consisting of corporations founda-tions and potential donors However various obstacles impede a harmonious relationship between the twoSocial enterprises face structural challenges to make themselves more appealing to im-pact investors They have to become more transparent and increase their accountability This includes improving their impact assess-ment and reporting tools However despite much discussion no consensus could be formed on how to optimally conduct im-pact assessment One of the most frequently proposed methodologies involves the use

From the 16th to the 18th of October the CBS Sustainability Platform granted me the opportunity to attend the 5th Social Enter-prise World Forum which took place in Rio de Janeiro Brazil This yearly international conference focuses on social enterprises and their effectiveness in solving social challeng-es The overall theme of the 2012 conference hosted by NESsT was ldquoSocial Enterprise Investing for Impactrdquo Thus for three days over 180 speakers and 650 delegates from 30 different countries shared their experiences regarding impact investment and discussed possibilities to attract new investment by both the public and the private sector for so-cial enterprises

of control groups Story-telling has also been men-tioned to be a powerful tool to provide investors with a proof of outcomesSocial investors are willing to accept returns just below the market rate in exchange for a social return However large profits are still expect-ed and many social enter-prises are afraid of being unable to generate them Social enterprises typically operate on a small scale and are not used to undertake large projects with huge sums of investment given to them Many are too small for social investors to be

attractive as costs are similar for small and large investments although larger invest-ments have a higher payoff

Nichole Echert the CEO of NESsT there-fore pointed out that it is necessary to align expectations between impact investors and social entrepreneurs and to be patient in establishing a relationship between the two groups The expected financial return has to be reasonable close to covering the costs of operation and social returns have to be re-ported to investors by use of clearer criteria

By Nadine Koumlcher Director of Branch Development180 Degrees Consulting Limited

ldquoSocial Enterprise Investing for Impactrdquo

Students

40 CSQ

A highlight of the con-ference was definitely the site visit to a social enterprise project in a recently pacified fave-la It brought further insights on the great variety of social enter-prises that exist in Bra-zil and their missions and struggles We visit-ed a community center at which Comitecirc para

Democratizaccedilao da Informaacutetica (CDI) uses technology to fight poverty and to stimulate entrepreneurship CDI has formed a corpo-rate partnership with Coca Cola which in the same building teaches young locals how to write a CV and find a job Talking to the young locals at the center it became apparent that an increased self-confidence and the in-spiration they get from meeting former now employed participants of the project (eg at Coca Cola) is what they valued most of being part of the class

Participating at the conference was definite-ly a unique and valuable experience I would not want to miss as I tremendously improved my knowledge in the field of social enter-prises through attending the numerous pres-entations and discussions and further met so many inspiring social entrepreneurs impact

In addition it has been stressed that the problem is not a shortage of investment capital (even though the government could promote more impact investment by for instance granting tax breaks) but how to deploy it Social entrepreneurs also have to be aware of the different advantages and dis-advantages of the various types of capital It has to fit their process of establishment and it has therefore been suggested that funds and grants are most optimal in the start-up phase to cover such costs as capacity train-ing There is generally a lack of this early stage financial support Following the initial phase strategic philanthropy money would be most appropriate before impact and final-ly equity investment is sought Furthermore new ways of investment which fit the social enterprise world have to be created replac-ing the current situation of trying to fit social enterprises into the current financial world

investors and students with a genuine inter-est in the field

Participating at the conference was definitely a unique and valuable experience rdquo

ldquo

Social Enterprise World Forum 2013 in

Calgary Canada

The TRICO Charitable Foundation in part-nership with the Social Enterprise Council of Canada and the Social Finance Forum has been selected to host the 6th Annual Social Enterprise World Forum SEWF 2013 will take place October 2-4 2013 in Calgary Al-berta The Forum will present the Canadian social enterprise movement with opportuni-ties to engage learn and share on the inter-national stage

SEWF 2013 will be a gathering of over 1000 Canadian and international delegates who are involved in the social enterprise move-ment where the blending of social and fi-nancial values is core to business Attendees will consist of practitioners (from all sec-tors) funders investors supporters elected officials and public servants from around the world

Nadine Koumlcher

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 14: CBS Sustainability Quarterly 2013 #1

14 CSQ

health technology and business develop-ment in cooperation with developing coun-try researchers And we need to be good at a lot more than ldquojustrdquo development coopera-tion ldquoif we want to remain relevant for exam-ple in Africa on sustainable business we can-not afford to send people out who have worked isolated in the development community here in Denmark So instead of seeing development research as a separate discipline it needs to be integrated into everything we dordquo

That is why the Minister argues for more fo-cus on educating graduates that are experts and specialists but not necessarily within development cooperation Instead he says Denmark needs graduates that can develop the best possible solutions for the developing world within energy technology etc ldquoThe fast-growing economies in China Southeast Asia Latin America Africa do not need spe-cial things made for developing markets they need top innovative solutions and high-quality products and we need to be able to offer that to them if we want to remain relevantrdquo

One of the solutions worth repeating is that of partnerships According to the Minister universities need to remember that partner-ships with other research institutions as well as with private companies and organizations can provide greater insight

ldquoYou need not only public-private partner-ships but large-scale multiple partnership Still universities can sometimes behave as isolated entities Of course universities need to focus on the core business of researching and educating students but they will also in-creasingly be challenged to engage in these in-ternational and multiple partnerships This is where you will find some of the most inspiring

About Christian Friis Bach

Born 1966 in Frederiksberg Denmark Married three children Lives on a hobby farm near Ganloslashse

Present officeMinister for Development Cooperation 3 October 2011 ndash

Education1992-1996 PhD International Economics Royal Danish Agricultural University Copenhagen 1986-1992 MSc Agronomy Royal Danish Agricultural University Copen-hagen

Work Experience2010-2011 Special Advisor for EU Commissioner Connie Hedegaard (UN Global Sustainability Panel) 2010-2011 CEO ViewWorld ApS 2009 Affiliated Professor in International Economics and Development at the University of Copenhagen 2005-2010 International Director DanChurchAid 2002 Journalist at the Danish Broadcasting Corporation (DR) 1999-2005 Associate Professor International EconomicsDevelopment Economics Royal Danish Agricultural University (University of Copenha-gen)

Other engagements2010-2011 Member of the Board of the Danish United Nations Associa-tion 2008-2010 Initiator and Board Member of the Danish Initiative for Ethical Trade 2008-2009 Member of the Danish Africa Commission 2007-2011 Member of the Presidium for WWF World Wide Fund for Nature Denmark 2000-2006 Board Member International Institute for Sustainable Develop-ment 1997-2001 Chairman Mellemfolkeligt Samvirke (Danish Association for International Cooperation)

Christian Friis Bach has published a large number of books reports and ar-ticles in newspapers and magazines Please see wwwfriisbachdk for details

15CSQ

In December 180 Degrees Consulting (180DC) finished its third round of pro-bono social impact consulting projects with even more success than in previous semes-ters All consultants showed dedication and motivation by spending a large amount of their spare time to work with socially con-scious organizations in order to help them to improve their social impact

An overcrowded lecture room during the 180DC information meeting at the begin-ning of the semester and the high number of applications to join the consulting projects were evidence of great interest in 180DCrsquos activities Out of the 139 applicants the top 45 were selected in a two-step recruitment process and grouped into teams of five to work on the nine exciting projects lined up in the Fall 2012 semester

All projects involved Danish-based organi-zations with a strong focus on either social andor environmental sustainability The projects however differed vastly One of the consulting teams assisted Engineers Without Borders and Action Aid in developing an investment rationale for the cultivation of farmland belonging to an Indian orphanage as well as assessing the social return of this investment

Another 180DC team worked with Hertha an organization focused on the reverse in-tegration of ordinary people into a commu-nity of mentally challenged Hertha needed assistance with improving their external reporting setup to stakeholders which was achieved by developing useful tools for the organization to measure both the social and cultural impact of their activities Yet another team of consultants helped the International Rehabilitation Council for Torture Victims optimizing their internal processes and thus helping them pursue their vision of a world without torture

During the consulting period 180DC or-ganized several training sessions for the con-sultants of the organization hosted by pro-fessional consultancies and each team was assigned a mentor with expertise specific to the given project The highlight of the semes-ter was the Final Event at which all of the teams presented their projects in front of a large audience comprised of all 180DC con-sultants the 180DC board members as well as mentors clients and a jury consisting of representatives from PwC DI CBS Sustain-ability Platform BCG and VSFA The juryacutes task was to evaluate the consulting projects based on their written report and oral pres-entation Based on the creativity feasibili-ty and impact potential of the projects the chairwoman of the Jury Birgitte Mogensen PwC announced the winner of the 180DC Social Impact Award Team Engineers With-out Borders

All of the 180DC board members have throughout the semester been working hard to constantly improve the organization in or-der to ensure a high quality of the services provided to clients and of the learning ex-perience provided to students With a new extended board in place 180DC is looking forward to continue its successful journey in the upcoming semester which kicked-off in January with two international projects in Chile and Sierra Leone ndash thanks to the sup-port of the CBS Sustainability Platform

by Nadine Koumlcher

UPDATE FROM 180DEGREES180 Degrees Consulting is an international student consultancy that works with growing non-profits helping them achieve a greater social impact

Contactphone no +45 6061 6399e-mail cph180degreesconsultingorg

Updates from partner organizations at CBS

16 CSQ

The past semester was a good one for 360deg Students for Sustainability Not only did our organization grow to nearly 50 members this fall but we were also nominated in the Student category for the CSR Awards 2012 ndash the second year in a row You can watch the nomination video here httpwwwyoutubecomwatchfeature=player_embed-dedampv=6J5mwn7TcYI Although we didnrsquot win the award representatives from 360deg got the chance to participate in the conferencersquos many seminars ndash and not least hear Bill Clin-ton speak360deg also took it to another level with 360deg Academy The project was a huge success with over 250 people signed up for the ex-tracurricular course It shows that there is a clear interest in CSR and sustainability among the students and that 360deg Students

for Sustainability fill an important gap in providing the students with a forum where they can discuss such issues with each oth-er professors and practitioners We have al-ready started planning Academy 2013 which will run in the fall In addition to 360deg Academy 360deg organ-ised several successful events and seminars the past semester 360deg Develop Prize was kick-started in November and has already found some dedicated social entrepreneurs who will join the coming events this spring as well as the final competition 360deg also co-organized events on microfinance (with Danish Forum for Microfinance) and fair-trade (with Fairtrade Maeligrket) We also created a nice Christmas spirit at the CBS campus with our annual Christmas event featuring cookies a fairtrade Christmas tree

and do nations to Red Cross and Verdens SkoveWhile it is important to look back this semester 360deg is focusing on the future By the end of the semester 360deg Students for Sustainability will have changed its name to oikos Copenhagen After becoming part of the international student network oikos in 2011 we believe that changing our name will emphasize our international commitment and will show the students the many oppor-tunities that are available to them through the oikos network You can read more about oikos International and the other 36 chapters around the world by visiting wwwoikos-in-ternationalorg

Christina EkChairwoman of 360deg and soon-to-be President of oikos Copenhagen

UPDATE FROM 360 STUDENTS

360deg Students for Sustainability

360deg Students for Sustainability is a non-profit student organization based at CBS working to enable and inspire students to make responsible and sus-tainable decisions in their future lives and professional careers

Contact Christina Ek tlf 42 39 99 54 mail info360studentsdk

Live show at CSR Awards 2012

(Picture from csrfondendk)

Updates from partner organizations at CBS

17CSQ

UPDATE FROM PRME

New approach by the Curriculum Development

projectThe commitment to the initiative of the UN Principles for Responsible Management Education (PRME) at CBS has been further sustained via a more targeted approach to the development of the curriculum at the undergraduate programmesAs part of the adherence to PRME CBS has launched a Curriculum Development project to integrate responsible management prac-tices into the study programmes and also make these practices more explicit This is an extensive process that recently has been even more focused on the individual content of each of the study programmes A more cus-tomised approach will only strengthen the analyses of syllabi for each core course and increase the content of explicit responsible management

ldquoThe current restructuring of the Service Management bachelor programme and the development of three specialised lines of ed-ucation offer a great opportunity to align the curriculum development with the Principles for Responsible Management adopted by CBS Currently the CBS Office for Respon-sible Management Education and faculty members from CBS are working to identify opportunities to integrate responsible man-agement education into the educational programmerdquo Assistant Professor Adriana

Budeanu BSc in Business Administration and Service Management CBS In collabo-ration with study boards students and fac-ulties the Curriculum Development project enables a targeted approach to the integra-tion of responsible management content in order to comply with the overall structure of each study programme

Anti-piracy strategy from Maersk was a winning strategy

In collaboration with the CBS Sustainabili-ty Platform the CBS Office for Responsible Management Education arranged an internal competition to identify the best team of stu-dents to represent CBS at the International Business Ethics Case Competition (IBECC) in San Diego later this year The students had to select a business case entailing a challenge with legal financial and ethical aspects and propose a solution to this challenge A jury found the winning team based on a live presentation followed by a QampA session that took place in November 2012

The winners of this unique opportunity were the graduate students Bjoslashrg Ilsoslash Klinkby (MSc IBP) Adam Eithz Kromann (MSc BAP) and Anne Cathrine Gaarde (MSc IBP) They presented a business case on the anti-piracy strategy of Maersk

Winners of the Business Ethics Case Competition

Updates from partner organizations at CBS

18 CSQ

THESIS PARTNERSHIP BETWEEN GRADUATE

STUDENTS AND COMPANIES MATCH-MAKING

On behalf of CBS the Office for Responsible Management Education invited companies and organi-sations to participate in a match-making event with graduate students who were looking to write their thesis within the field of sustainability or social responsibility

Prior to the event that took place on the 6th of February ambitious graduate students were matched with eight very diverse organ-isations all wanting to explore challenge and develop CSR related activities The selection of organisations ranged from Center for So-cialt Ansvar who sought the studentsrsquo advice on how to revitalise their social concepts in corporation with the civic public and pri-vate sector to Wonderful Copenhagen that engaged the students in their aspirations of

retaining Copenhagen as a leading ldquogreenrdquo conference destination This diversity mere-ly reflected the broad-based educational standards that are embodied in the conducts of CBS and enabled students from all study areas to participate With the meeting as the focal point of the event the aim was to in-troduce more students and companies to the possibilities of a thesis partnership On that basis it is the hope that students and organisations will take the initial meeting

further into a collaboration resulting in a thesis that with an analytical and reflected approach hopefully provides valuable insight for all parties The event was indeed a unique opportunity for the students to get the or-ganisationsrsquo unremitting attention but also the organisations expressed their excitement about how the theoretical knowledge and skills of the students could be combined with the specific issues reaching beyond everyday operations of the organisation

PRME

Lene Mette SoslashrensenTel +45 3815 2651E-mail lmsiklcbsdk

PRME Manager

Johanne Duelund Kramer from Wonderful Copenhagen and CBS student Joseacute Bandeirinha from International Marketing and Management

Updates from partner organizations at CBS

19CSQ

A value adding partnership

The match-making event was kick-started by Professor Andreas Rasche who gave a short speech on trends in the field of sustainability and social responsibility Likewise thesis con-sultant Vibeke Ankersborg rounded off the event by guiding both students and organisa-tion representatives in the right direction of obtaining a value adding thesis partnership

By facilitating integration of the theoretical knowledge pool at CBS with real-life busi-ness cases and their challenges this initiative underpins CBSrsquos Responsible Management Education profile ldquoAddressing societal chal-lenges in interaction with business is a key element in our Business in Society strategy and we hope to set up a similar initiative in the futurerdquo Lene Mette Soslashrensen PRME Manager CBS

Being able to engage in a thesis partnership gives us the opportunity to get new and fresh eyes on the challenges and opportunities we face in the aspiration of sus-taining Copenhagenrsquos position as marked leader within sustainable meetings and events ndash and the other way around we see it as a positive contribution to help young students to gain in-depth knowledge on how we actually work with sustainability in practicerdquo

Ulrika Maringrtensson senior communication consultant Wonderful Copenhagen

ldquo

Case Companies

20 CSQ

Update from CBS Centre for Corporate Social Responsibility

cbsCSR celebration10 years anniversaryOn Thursday November 22 2012 CBS Centre for Corporate Social Responsibility (cbsCSR) celebrated its 10 years anniversary The guest list included prominent guests from both academia and the corporate world Head of Department Dorte Salskov-Iversen President Per Holten-Andersen and cbsCSR Director Esben Rahbek Pedersen bid all a warm welcome to an afternoon of inspirational talks and celebration of the Centre

Susanne Stormer followed and initiated her presentation with a brief recap of Novo Nor-diskrsquos history and continuous development of corporate sustainability practices She em-phasized how Novo Nordisk with the help of Professor Ed Freeman has prioritized a close relationship with their stakeholders and learning with them as a means to reach a higher level of corporate sustainability An additional key take-away from Susanne Stormer was the notion of transformational partnerships She argued that corporations NGOs and other stakeholders should use each other to form transformational partner-ships instead of just transactional partner-ships She claimed that in order to address and solve the problems in todayrsquos world the issues have to be addressed at the roots ndash in cooperation with stakeholders

The program had been divided into two ses-sions Each session ended with a panel dis-cussion that gave the audience the opportu-nity to track the developmental trajectory of CSR and participate in the discussion of the future direction of CSR

In the first session which focused on the history of CSR Professor Lucia Reisch from Department of Intercultural Communica-tion and Management CBS Susanne Storm-er VP of Corporate Sustainability at Novo Nordisk and Professor Gail Whiteman from Rotterdam School of Management present-ed their perspectives on the development of CSR up until nowProfessor Lucia Reisch set the stage with an enlightening introduction to the history of sustainable development and emphasized balance on the triple bottom line as key

Professor Gail Whitemanrsquos presentation highlighted both the past and the future of CSR Her main topic was how to deal with planetary boundaries She drew attention to inherent implications of teaching sustaina-bility and CSR at a business school and ar-gued that in order for students and business executives to understand the implications of planetary boundaries and their importance classes should be taught in nature

In the second session Annette Stube Head of Group Sustainability in AP Moller ndash Maersk Simon Pickard Director General at ABIS and Professor Andreas Rasche from cbsCSR presented their views on the future of CSR

Updates from partner organizations at CBS

21CSQ

The topics in the second panel debate evolved around some of the same issues as in the first panel debate The audience was very interested in the educational aspect of CSR and sustainability and a discussion fol-lowed concerning the issues of lsquopreaching to the convertedrsquo Research shows that 75 of CSR courses are not mandatory 1 thus those students and executives who have a natural interest in CSR and sustainability enroll for these courses The speakers agreed that this posed a challenge for the future and that business schools might have to re-invent themselves in this regard They stressed that it is crucial that CSR and sustainability courses become mandatory Also the prac-titioners advocated in-company learning They set forth the argument that it may be a long time before current students will have sufficient impact on the corporate sector but also because the corporate sector and the ac-ademic world can learn from one another

Sum-up of key perspectives for the future

So how has lsquothe business of business really changedrsquo and in what direction From the afternoonrsquos discussions there were two recur-ring topics Susanne Stormer briefly touched upon it when she talked about transforma-tional partnerships Annette Stube and AP

Annette Stube set forth the argument that ldquothe business of business has really changedrdquo She gave an example of how AP Moller ndash Maersk should use their position in the shipping industry to facilitate substantial changes Simon Pickard supported her argu

ment stating that it is not possible for single corporations to make a difference but that clusters of corporations have to collaborate to push changes If corporations do not join forces they risk only making incremental changes Simon Pickard further argued paraphrasing Andrew Pettigrewrsquos argument that in the course of time there has been a conceptual change in the argument for CSR He pointed to the fact that it started out as a moral or philanthropic enterprise and is now perceived as a governance case Simon Pickard pointed to the fact that the future of business is to create shared value ie creat-ing economic value that also creates value for society at large Building on these re-marks Andreas Rasche discussed the future of standards and codes in the field of CSR Emphasizing a variety of case examples he argued that while standards have proliferated in recent years eg certification schemes in the global coffee and apparel industries there is a need to more actively manage the co-ex-istence of these initiatives in order to avoid overlap Rasche also highlighted the pivotal role of consumers who need to acknowledge standards and labels as market signals and factor social and environmental concerns into purchasing decisions

Moller ndash Maersk has it as an integrated and crucial part of their CSR policies and Simon Pickard highlighted how instrumental the-ories are no longer enough The concept of shared value is inescapable and it is what the lsquobusiness of businessrsquo in the early 21st centu-ry is really about

A second topic which also attracted a lot of attention was the importance of continuous education of both lsquothe convertedrsquo but also of opponents of CSR and people who are not aware of the importance of CSR and sustain-ability In-company learning was depicted as a crucial part of the development of CSR and sustainability however a physical change in the teaching settings is also required to meet the approaching environmental challenges

Centre Director Esben Rahbek Pedersen concluded the conference and the winners of the prize of 25000 DKK to participate in the IBECC case competition in San Diego in May 2013 were announced and the celebra-tion of cbsCSR ended with a reception

Thank you to all the speakers moderators and guests for an inspirational afternoon

By Elise Lind Jacobsen and Line Pedini Rasmussen cbsCSR

1Rasche A Gilbert DU and Schedel I (2013) Cross-Disciplinary Ethics Education in MBA Programs Rhetoric or Reality Academy of Management Learning and Education (forthcoming)

Three of the keynote speakers (from left) Professor Gail Whiteman from Rotterdam School of Management VP of Corporate Sustainability at Novo Nordisk Susanne Stormer and Sustaina-bility Professor at CBS Lucia Reisch

Simon Pickard Director General at ABIS

22 CSQ

UPDATE FROM

CBS GOES GREENThe Green Associate Program

2012 was an exciting year for CBS Goes Green with many great achievements One of the new initiatives that was launched in 2012 was the Green Associate Program Here CBS students were able to volunteer in a program to support sustainable behavior among students and staff at CBS More precisely 25 CBS stu-dents put in 30 hours of voluntary work to help with the planning and execution of Green Week - a week consisting of a lineup of successful companies shar-ing their sustainable initiatives and thoughts The overwhelming interest in sustainability and sustain-able business among the students has made it evi-dent that the Green Associate Program should con-tinue in 2013 We at CBS Goes Green look forward to this as well as all of the other initiatives we will be conducting in 2013

The following is an extract of an article that three of the associates wrote themselves This extract shows the associatesrsquo own experience working with CBS Goes Green

What does it mean to be an

associate with CBS Goes Green

In Week 39 CBS turned into a plethora of green initia-tives and events in order to make CBS reach its sustaina-bility goals for 2020 Both students and employees at CBS were asked to become a Green Ambassador to help CBS be smarter greener and better

But many of you may wonder how it is to be one of the people behind the scene As associates we have been help-ing out before and during Green Week in order to establish an event that would reach all corners of CBS This has re-quired both time and effort in order to make things work out but in the end there are also a lot of gains from being an associate

Firstly as an associate you get to expand your network You get to work with people from different studies countries and ages and you also get to talk to many different people while promoting

A bonus about being an associate is also that you get an official certificate which can be attached to your resume This shows that you have put an effort into making Green Week happen

Furthermore by being an associate you feel like you have a larger impact on making CBS a greener place Instead of being an ambassador and only doing the things you can do you get to be the person who raises awareness about sustainability You may influence people to make the right choices and it makes you feel good

Lastly it also gives you a feeling of responsibility because you work under an official part of CBS CBS Goes Green ndash a unit with a clear agenda and a clear vision

By Michael Nguyen Christian Charity and Christian-Philip Lundahl

Updates from partner organizations at CBS

23CSQ

International conference on sustainable biofuels presents latest research

By Barbara Louise Bech Department of Business and Politics CBS

EU Renewable Energy Directive

In 2009 the EU RED set a mandatory target for member states to use a minimum of 10 renewable energy sources in the transport sector by 2020 of which biofuels is expected to be the main contributor This is part of a policy to cut greenhouse gas emissions promote the green technology sector develop rural areas and reduce dependency on fos-sil fuels Due to increasing controversies claiming lack of sustainability in first generation biofuels based on food crops recently the EU pro-posed an amendment to the Directive limiting the share of first gener-ation biofuels to 5 of the targeted 10

The debate quickly zoomed in on the sustainability criteria as outlined in the EU RED drawing attention to the lack of social safeguards The general consensus is that the concept of sustainability is too narrow-ly defined Several case studies (Mozambique Brazil and Indonesia) show that basic labor and human rights of local populations are not protected by RED and the directive is more viewed as an environmen-tal safeguard This discussion raised questions in regard to the effects of RED globally (eg sustainable production in developing countries) and in this context whether EU legislation can have a lsquotrickle downrsquo effect on national standards of nation-states outside the EU In this re-gards one could ask if enforcement at the local level falls under the re-sponsibility of the EU but since first generation biofuels are produced outside the EU it is an important issue for European consumers ndash al-though interest is currently mainly driven by NGOs

On November 19-20 2012 the Copenhagen Biofuels Research Network (COBREN) held an international conference on sustainable biofuels inviting 30 research-ers from around the world to present and discuss their latest research During the two day conference focus was the sustainability criteria of the EU Renewable Energy Directive (RED) voluntary certification schemes and their impacts on sustainability and social safeguards in producer (developing) countries in particular and governance complexity of the biofuel system which has grown considerably over the past decade

Rough guide to biofuelsThere are two types of biofuels biodiesel and ethanol First generation biofuels (1G) are based on food crops and feed stocks such as palm oil soybean and rapeseed used for the production of biodiesel and sugarcane and corn for ethanol The produc-tion of biofuels increased heavily in the 2000s questioning the sustainability of 1G A number of issues have been claimed as key impediments to sustainable biofuel production such as deforestation competition with food production and increasing food prices loss of biodiversity lack of social and environmental safeguards and indirect land use change (ILUC) These contro-versies have led to a call for the promotion of second generation biofuels (2G) which are typically based on agricultural waste (eg straw) plants and forestry residues (also called lignocellu-losic biomassmaterials) However the immediate problem is that there is yet to be developed a market for 2G as they are more costly to produce (require longer and more complex production process)

CBS Sustainability Platform co-director and organizer of the COBREN conference Stefano Ponte doing a presentation

Event

24 CSQ

Voluntary certification schemes

In relation to how standards and certifications can impact sustainable biofuel production discussions pointed to the important difference be-tween mandatory and voluntary schemes As the controversy of sus-tainable biofuels in particular first generation is rolling out special attention has been given to biofuel production competing with food production ILUC value of emissions reduction and environmental and social issues This have off sprung a proliferation in private certifi-cations and during the conference it was discussed intensely whether these schemes have an actual effect on sustainability Depending on the point of view certifications can fill out the holes in legislation and act as a tool to force companies to comply with sustainability crite-ria However the development processes of new certifications may not be inclusive of relevant stakeholders (eg representatives of local populations) Additionally the nature and governance of the networks steering these processes is not always transparent and may favor one interest over the other This intense discussion led to the question of the purpose of certifications Can we use them for anything other than as a CSR PR tool as long as consumer awareness is as low as it is and how do the different regional drivers influence sustainability as a concept The answers to these questions are not easily found and it will be interesting to observe the future development and partnership between public and private sector

Governing the biofuel industry

Within the past decade biodiesel production has risen from below 30PJ in 2000 to 572PJ in 2009 globally and fuel ethanol production has increased from 340PJ to 1540 PJ respectively As the market expands more actors eg governments international organizations civil soci-ety and NGOs private sector networks and companies and profes-sions (biofuel experts and consultants) get involved and play different roles to promote their own agendas Being an emerging industry the structure of the biofuel system shows hybrid forms of governance with many actors As controversies of biofuelsrsquo sustainability develop more issues are added to the agenda giving life to more actors and interests in the governance structure Research shows a shift in power balance as private companies and NGOs increasingly push the agenda The dis-cussions during the conference centered on the complexity of sustain-ability issues calling for mixed governance responses and governance instruments such as standards and certifications which in return need to be followed up with endorsement instruments Given these com-plexities the question is whether the biofuel industry is too difficult to govern as long as the governing systems (for instance the EU) cannot accommodate expectations of all stakeholders

Indirect land use change (ILUC)ILUC is the unintended consequence in terms of more carbon emis-sions due to land use change around the world induced by the expan-sion of croplands for biofuel production When land that could be used to grow food and feed crops is used to grow energy crops this leads to existing agricultural production moving to another area or country where land is converted When this land is cleared and converted to cropland and because natural lands (rainforests and grasslands) store and sequester carbon in their soil and biomass a net increase in GHG emissions can occur Due to this change in the carbon stock of the soil and the biomass ILUC has consequences in the GHG balance of a biofuel Adding to this complexity models for ILUC calculations are not mainstreamed and thus difficult to assess internationally

25CSQ

Mellemfolkeligt Samvirke (MS) or Action Aid Denmark is a Danish NGO founded back in 1944 The

organizations key objective is to fight poverty by ensuring greater political influence for the worldrsquos poor and margin-alized at the local national and international levels MS works to bring about long-term development in the worldrsquos poorest countries focusing especially on education co-

operation and the ability to organize MS mainly works in Africa Read more about the organizationrsquos work

at wwwactionaiddk

Action Aid

A private sector view on the future of sustainable biofuels

By Barbara Louise Bech Department of Business and Politics CBS

nergy security continues to be an eminent concern in a world of finite resources For a long time biofuels have been viewed as

one of the key solutions to replace our dependency on fossil fuels and battle climate change but in recent years controversy has contested the sustainability of first generation biofuels based on food stock Issues such as lack of environmental safeguards causing loss of biodiversi-ty and deforestation and lack of social safeguards ensuring land and labor rights in producer (developing) countries have been claimed as key impediments to sustainable biofuel production Critical observers also argue that the emission savings of biofuel use in compar-ison to fossil fuels can become much smaller (or even disappear) when indirect land use change (ILUC) is included in the calculations Furthermore bi-omass production from food stock is argued to compete with food production and in-creasing food prices

The Danish NGO Action Aid has been engaged in biofuels since 2008 and is par-ticularly involved in protecting womenrsquos rights and preventing land grabs in de-veloping countries ldquoWe are very concerned about land use when it comes to first genera-tion biofuels This relates both to the people who are dependent on the land and to food security We rarely see good combinations where the local populationrsquos needs are taken into consideration The energy crops grown on the local farmerrsquos land donrsquot benefit him and local consumption is essential for developmentrdquo explains Kirsten Hjoslashrnholm Soslashrensen political advisor Action Aid Denmark

It is therefore believed by many that second generation biofuels is the only way forward to avoid competition with food and avert ILUC Next generation biofuels is based on lignocellulosic biomass such as agricultural and household waste and forest residues The Biorefining Alliance represents a cluster of leading Danish companies within the renewable energy sector with an ambition to promote second gener-

ation biofuels and make Denmark a world leader of technology and bi-ofuel productionldquoDenmark has very strong competencies in green tech and as a society we have put a lot of money in its development This is go-ing to be a huge deal globally so we are asking whether Denmark wants to be a customer or a producer What we are working for is of course that we become a lead exporter of technology but also that Denmark produces second generation biofuels commercially Even though we are a small country we cannot settle on selling know-how Denmark also needs to have some industrial productionrdquo says Anne Grete Holmsgaard di-

rector of Biorefining Alliance In her view Denmark needs to keep a firm grip on developing innovation or it will slowly but

steadily move out of the country In this regard she views sustainability criteria for biofuels as an in-

novator and not a hindrance

The Sustainable Biofuels Network (SBN) is another cluster of private companies trying to facilitate the transition from fossil fuels to biofuels in the transport sector For the aviation industry biofuels are considered

to be the only alternative to fossil fuels and the industry firmly believes that biofuels will

survive according to Robert Arendal chairman of SBN ldquoThe aviation industry has set very clear

guidelines for the use of biofuels We are not going to use food based biofuels and we will minimize the use of fresh

water By 2050 our target is to use 50 biofuels in the global aviation so we really need to move fastrdquo he explains adding that living up to sustainability criteria includes being careful about where biofuels are produced ldquoBut it should be produced all over the world and close to the 1600 airports worldwide that account for 95 of all aviationrdquo

he technology for second generation biofuels is already here but the problem is that production costs are too high and there is no market As long as prices are not competitive with conventional fuels it will be difficult to move forward ldquoOne might ask why there is no market The customers are certainly there so if I was in the business of producing

E

As part of the COBREN international conference on sustainable biofuels private sector civil society and academia were invited to give their views on sustainable biofuels at a roundtable discussion at an open public seminar held at DIIS November 19 2012

Event

26 CSQ

SBN is a ldquobreeding groundrdquo and ldquoknowledge centerrdquo for the biofu-els industry where synergies are created between all parties within

the biofuels sector SBN focuses in promoting supporting and enabling the commercial development and use of clean and sustainable biofuels for Heavy Road Transportation Shipping and Aviation Emphasis is put on the importance of global standards for biofuels with local as well as international institutions and decision makers to encourage con-

structive guidelines and rules for the development of biofuels SBN adheres to EUrsquos sustainability criteria SBN is a non-profit asso-

ciation established in 2008 Visit their website for more info at wwwsustainablebiofulsdk

Sustainable Biofuels Network(SBN)

The Biorefining Alliance (BA) was founded December 2011 by DONG Energy Novozymes Haldor Topsoslashe and the

Danish Agriculture and Food Council and is a three-year project to politically promote Denmarkrsquos position in the entire value chain from residues to bio-based products The Alliance has set forth a number of recommendations to achieve a sustainable Danish bio-economy Among other these include (i) that all organic

waste be considered a resource (high-value recycling and storable energy) (ii) reducing the cost of manufacturing 2G

bioethanol and (iii) contemplating the establishment of a national center for sustainable materials

Biorefining Alliance

second generation biofuels I would get started right awayrdquo says Robert Arendal The Biorefining Alliance is working on lowering the costs and recommends a stronger regulatory framework with binding targets as it has been done for the wind industry ldquoThere already is a market for first generation biodiesel which is the least sustainable biofuel We need to make a market for second generation biofuels and we know that binding targets work I donrsquot think it is possible to create a market for the lsquogreen consumerrsquo as you have one for organic food products but I believe that a niche market for HRT (Heavy Road Transport red) such as public bus transport could be a supplementrdquo concludes Anne Grete Holmsgaard

How the future for sustainable biofuels will shape depends on political will to create a market for second generation and the ability of private sector to innovate and bring prices down Oil production is claimed by some to already have peaked and exploring new geographical areas for extraction could be as costly as kick-starting the market for second generation biofuels although much less sustainable As the American ecologist and environmentalist Bill McKibben wrote in his book ldquoDeep Economyrdquo back in 2007

Even before we run out of oil wersquore running out of planetrdquoldquo Bill McKibben

27CSQ

The Transparency-Sustainability NexusA workshop on the practices meanings and tensions of organiza-

tional transparency

n December 5 2012 the Department of Intercultural Communication and Management (ICM) hosted an in-

ternational workshop supported by CBS Sustainability Plat-form and ICM The workshop was organized by Oana Brindusa Albu Mikkel Flyverbom and Hans Krause Hansen respectively PhD Fellow and Associate Professors at ICM The idea of the workshop was spurred by the observation that while ideals of transparency like lsquoopennessrsquo lsquodisclosurersquo and lsquoreportingrsquo are pro-liferating these years the actual construction of transparency within and across organizations is poorly understood Most re-search on transparency is highly normative if not celebratory just as popular discourse about transparency not least in the areas of sustainability and corporate social responsibility is obsessed with ideals of accountability performance and effi-ciency and pervaded by an optimism currently pushed to its extreme with the explosion of new media technologies

But the truth is that we generally know very little about the implications of ideals of transparency when translated into practice in specific issue areas and organizational contexts Importantly each of the contributions to this workshop clear-ly suggested that the contemporary politics of transparency is much more complex contradictory and dynamic than tradi-tionally recognized All papers examined various aspects of the contemporary obsession with transparency and specifically the increasing use of disclosure techniques within and around or-ganizations the rationales or myths underpinning these meas-ures their intended and unintended consequences including implications for identity-making management and govern-ance practices

Clare Birchall initiated the workshop with a paper titled lsquoThe Cultural Politics of Disclosurersquo highlighting how transparency has been positioned as a superior form of disclosure in popular management and organizational literatures and in policy docu-ments In her account the growing preference for transparency is a consequence not only of the positive qualities seen to be intrinsic to transparency itself but also a response to the per-ceived negative characteristics of other forms of disclosure such as gossip scandal and rumor Lars Thoslashger Christensen (with co-author Joep Cornelissen) then analyzed transparency as one of the foundational myths of modernity myths understood here as descriptions of the world in a narrative form which seeks to produce meaning and direction for a community and its members Such lsquoMyths of Transparencyrsquo sustain numerous organizational practices ndash including openness information provision and auditing But as argued by the authors there are conflicting evidence regarding the capacity of such practices to create insights and understandingThat aspirations and techniques of transparency can have seri-ous repercussions was demonstrated by Peter Skaeligrbaeligk (with co-author Mark Christensen) in the paper entitled lsquoAuditing and the purification of blamersquo which analyzed how auditing auditing practices and institutional entities including the po-liticized environments surrounding them are mobilized and participate in blame games and allocation In his paper titled lsquoQuantification transparency and the costs of reassurancersquo Henrik Vollmer analyzed various dimensions of the role of nu-merical records and signaling in generating transparency trust and mistrust

By Hans Krause Hansen Department of Intercultural Communication amp Management

Event

O

28 CSQ

Some of these aspects were also touched upon in the paper lsquoDisrupted Disclosures The Politics of Visibility and Surveil-lance in the Extractive Industriesrsquo by Hans Krause Hansen (with co-author Julie Uldam) which explored the wider field of visibility and surveillance in which contemporary transpar-ency policies are unfolding with examples from the extractive industries Oana Brindusa Albu in her lsquoTransparency and the organizational self everyday politics of identification in Cooperativesrsquo examined the paradoxical effects of values and practices of transparency on collective identity formation pro-cesses drawing upon her ongoing multi-sited fieldwork in co-operatives Under the heading of lsquoThe Improbability of Secrecyrsquo Mark Fenster analyzed the intersections of secrecy and trans-parency with examples from the US government and its efforts to control information which according to the author does not necessarily stop the flow of information Finally Mikkel Fly-verbom and Christina Garsten examined lsquoThe sway of (big) data ndash calculations and advocacy in the name of transparencyrsquo focusing on the operations of data-based forms of corporate lsquotransparency evangelismrsquo and advocacy through revelation including examples from Center for Global Development and Google

In all the workshop was highly successful in investigating not only the historical and mythical foundations of transparency but also the different practices and forms of transparency that currently shape organizations and a wide variety of issue areas It also provided a reminder of the usefulness of investigating a concept of transparency in relationship to a host of other con-cepts such as secrecy myth gossip blame surveillance visi-bility identity information and knowledge The organizers of the workshop wish to thank all workshop participants for their valuable contributions and the CBS Sustainability Platform and ICM for their support

Hans Krause Hansen

Mikkel Flyverbom

Oana Brindusa Albu

ASSOCIATE PROFESSORPHD (ICM)

ASSOCIATE PROFESSORPHD (ICM)

PHD FELLOW (ICM)

29CSQ

Louise Lyngfeldt Gorm Hansen is a PhD Fellow at the Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) She has a back-ground in Chinese Studies from Copenhagen University (BA) the Asian Studies Program at CBS (BSc) and in International Business Stud-ies and Sustainable Business (MSc) from CBS

The aim of her cross-disciplinary PhD project is to explore how the Chinese hydropower sector works with environmental sustainability and more particularly how the concept is understood and performed in the planning phase of a major dam project in the southwestern Chinese province of Yunnan

The aim of the project is to gain a deeper under-standing of how Chinese firms in the renewable energy sector such as hydropower companies understand and value sustainability as well as how such firms tackle the increasing pressure to deliver socially and environmentally balanced solutions to one of Chinarsquos major challenges lowering CO2 emissions in a time with rapidly rising water and energy demands Theoretically the project draws on - and aims to contribute to ndash a combination of Asian Studies and Science and Technology Studies

PHD FocusLouise Lyngfeldt Gorm Hansen

HYDROPOWER

SUSTAINABILITY

30 CSQ

HYDROPOWER

SUSTAINABILITY IN

CHINAy PhD project combines two of my main research interests China and

environmental sustainability I have studied China for a number of years mainly because of an interest in how the Chinese view sus-tainable development So since finishing my masters I have known that I wanted to study how China plan to tackle a sustainable tran-sition in the years to come I saw my chance when CBS announced PhD scholarships in

DanishEuropean-Chinese social science research in collaboration with the newly es-tablished Sino-Danish Center for Education and Research (SDC) and started my PhD in October 2011My PhD project focuses on the Chinese energy sector more specifically the rapidly growing part of the energy sector engaged in renewable energy Here I examine Chinarsquos second largest source of electricity gene-

eration hydropower In recent years China has become increasingly focused on reduc-ing CO2 emissions While some countries such as the US and Australia are decommis-sioning hydropower dams China is looking to large-scale hydropower construction as one of the solutions to a future clean energy supply This means that hydropower devel-opment plays a central role in Chinarsquos sus-tainable transition

However utilization of hydropower is con-troversial not least in China and has met increasing resistance in recent years particu-larly from Chinese and international NGOs the media as well as the scientific commu-nity Critique is most often focused on how or if social and environmental sustainability can be ensured in such large scale projects as the social and environmental impacts of large scale hydropower development are very complex and difficult to measure More gen-erally the viability of relying on hydropow-er as a future source of energy is also being questioned One of the major concerns here is the overarching issue of climate change ie glaciers shrinking and yearly water runoff decreasing This means less stable water flow for hydropower and less water for other pur-poses such as agriculture water supply for down-stream countries etc

By Louise Lyngfeldt Gorm Hansen Asia Research Centre Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) ndash sinodanishcenterdk

M

Picture from SinoHydro promotion material 2011

Research

31CSQ

In contrast to for example the wind power sector in China in which many foreign com-panies have invested the hydropower sector is dominated by a few large state-owned en-terprises Our knowledge of Chinese state-owned enterprises is still limited and there-fore my PhD project is also part of a larger research project at the Asia Research Centre with focus on Chinese state-owned enter-prises and the reform of the public sector in China

In combining these interests my PhD exam-ines how Chinese state-owned enterprises in the hydropower sector tackle the demand to expand hydropower development to help reduce Chinarsquos CO2 emissions while be-ing under increasing pressure to deliver on sustainability principles in the planning and execution of large scale hydropower pro-jects The pressure comes mainly from NGO organizations the media and the scientific community both at home and from abroad I am conducting a case study focused on a specific river in south-western China which has ndash until now ndash not been fully developed for hydropower and the plans for addition-al hydropower dams on the river are still undergoing assessments The project has continually stalled due to disagreements between Chinese government officials at all levels NGOs the media the increasingly deregulated but still state-owned Chinese hydropower companies and the scientif-ic community However the project has very recently been reopened and so will go through another round of assessments in the near future The case is an excellent example of the complexity of hydropower develop-ment decisions in China but it also highlights some of the social and environmental conse-quences of the global push to decrease CO2 emissions

China plays and will continue to play an increasingly important role globally in the years to come However the country also fac-es enormous challenges - not least regarding the environment These challenges also affect economies in Western Europe - for better or worse My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective so

that we here in Europe and in Denmark can more knowledgably and actively engage with China to help solve some of these difficult challenges that eventually affect us all In do-ing this I contribute to gain a better under-standing of the Chinese perspective on envi-ronmental sustainability that can be of use to companies wanting to engage in the Chinese renewable energy sector

My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective rdquoldquo

Picture of the case-river taken by the author in 2012

32 CSQ

FROM BLUEPRINT TO PRACTICE

ENERGY EFFICIENT CONSTRUCTION

By postdoc researcher Satu Reijonen Department of Organization CBS

In the EU almost one third of CO2 emis-sions are attributed to energy used in the construction and use of buildings (FIEC

2007) It is therefore not surprising that the construction sector has recently been subjected to a substantial amount of policy measures to combat its negative effects on climate change In Denmark the state has posed new thresholds for the energy efficien-cy of new buildings including a plan for con-tinuous improvement in the area This far the industry has responded well to these stricter performance requirements In the future re-quirements will rise to levels that are not that easily achieved in the coming years build-ings will have to use 25 less energy than in year 2008 How can these ambitious goals become business as usual

One of the most discussed ways besides add-on technologies such as windmills and solar panels to enhance the energy efficiency of a building is through an energy efficient phys-ical design In practice this means reduction of energy used for heating cooling down and lighting of the building through an optimal orientation and dimensioning of the build-ing

Integrated energy design contrary to add-on technologies can be achieved on a rath-er modest additional budget This should be good news for the sector that today is eco-nomically pressed Indeed today many low energy building projects claim to use the in-tegrated energy design method (IED) when seeking to meet the most ambitious energy related goals In this commentary I wish to discuss some challenges related to the imple-mentation of this design tool

The integrated energy design method sug-gests that one of the main problems in not achieving energy efficiency is that energy related concerns become integrated into the design process too late The method consists of two elements the first of which addresses the need to bring in energy related knowl-edge throughout the design process It sug-gests that design teams ought to be multidis-ciplinary and that architects engineers and experts should work together either co-lo-cated or in a series of workshops Further-more it suggests systematizing energy quali-ty follow-ups into the design process This is all very relevant and inspiring

Oddly enough a closer look on the actual design practices reveals that few seem to ac-tually follow the method of integrated energy design to the point This poses an interest-ing question about the challenges related to the use of such management technologies as vehicles for increased energy efficiency in construction Maybe it is about time practi-tioners and researchers ask themselves what are the boundaries of and challenges related to the use of these tools ndash and what else is required for organizing for more energy effi-cient building design processes

A revolution of relations

Integrated energy design points to the need to bring energy related expertise into the de-sign process at an earlier point In order to achieve this cooperative practices between different professional groups are advocated for Historically energy experts have most-ly been used to respond to rather advanced architectural plans Shared workshops and co-localization suggest a change in these business as usual relations But are they pos-sible and what type of changes do they ac-tually imply in order to function as wished

Research

33CSQ

Satu Reijonen is postdoctoral scholar at the Department of Organization at CBS In her on-going research project she investigates how architects and energy engineers two different profes-sions cooperate and coordinate their work regarding energy related ques-tions in construction design The ways in which relations between and roles of these professions become consti-tuted through socio-material arrange-ments are a central topics in her work Besides studies of work Satu has con-ducted research on environmentally friendly products and markets

ABOUT SATU RAIJONEN

The initiation of this type of new working forms is certainly beneficial for energy effi-cient design However for several reasons they are more difficult to make work than one would assume While it may sound rea-sonable it is after all a tall order Integrating energy related practices into an environment where different visions professions and in-terests meet and the divide between what one profession does is clearly and historically demarcated is demanding While architects need to make room for the intervention of energy experts into the creative work energy experts have to become capable of working creatively and relate to and follow the visual and aesthetic cues from architects In order to work these kind of changes in the profes-sional roles and relations have to resonate with the skills and visions of individual work-ers not only management level design strat-egies It is not surprising that organizational change scholars remind us of the possibility of loose coupling from the strategies placed at the management level (March 1981) What integrated energy design suggests is a kind of a revolution in the ways in which both the architects and the energy engineers envision their role and space of mobility

Linear tools in an unlinear design process

Integrated energy design suggests that the energy performance of the emerging build-ing design be followed up at certain points during the design process The method de-picts a rather mechanistic and linear under-standing of a design process consisting of phases within which iteration may occur While energy related issues may be dis-cussed as quality goals during these phases the method places a lot of emphasis on the check ups performed in the transition from one phase to another Design processes how-ever can also be characterized in a different manner unlinear exploratory and whirl wind type of practices where clear cut phases hardly exist (Akrich 1992 Van de Ven et al 1999) This also applies to the architectural design processes where the object of the de-sign is emergent (Yaneva 2009) This entails that the product the building may change in unexpected ways during any day of the de-sign process If this alternative description of the design processes is viable delegating energy related issues to some predetermined check up episodes may strike a false accord and indeed be contradictory with the aim of enhancing coordination and cooperation between professional groups What happens in between the predetermined checkups may very well be where the energy efficiency of the building becomes configured and where the intervention from the energy experts

would come most needed Perhaps this is why the best performing projects do not blindly follow the steps of the IED method Check ups however and no doubt play a role in verifying and making visible the energy performance for partners outside the design team

Integrated energy design as many other sus-tainability standards and guidelines make visible systematize and legitimize the ex-istence of environmental management and sustainability issues in organizations and work processes In this such way tools create awareness and legitimacy for environmental and sustainability issues The integrated en-ergy design method also suggests a possible way of thinking about what type of design practice might help us to achieve the stricter energy requirements of the future It howev-er falls short in becoming the change agent it suggests This is hardly surprising as a meth-od or a standard of any kind should only be seen as a possibility or as an opening for an inquiry of what the practice could be about Reconfiguring a well established practice is hard work and it would be foolish to trust that a design method would achieve it by itself What the method does is to alert us of the more profound changes in the pro-fessional roles and relations that is needed in order to enable the change However the method due to its rather mechanical under-standing of the design process may come to work against its own ambition of integrating energy issues into the design work In its quest for integration the method defines at which points in time the architectural and the engineering project has to be checked for its energy performance This approach may lead to bringing in energy related concerns in some artificially created points in a design process which may additionally compart-mentalize energy related issues from where the design really happens

Integrated energy design as many other sustainability standards and guidelines make visible systematize and legitimize the existence of environmental management and sustainability issues in organizations and work pro-cessesrdquo

ldquoLiteratureAkrich M (1992) The De-Scription of Technical Objects in Shaping Technology Building Society Studies in Soci-otechnical Change eds WE Bijker and J Law The MIT Press Cambridge Massachusetts pp 205-224

FIEC 2007 The impacts of buildings on climate change httpwwwbuildingsplatformeuepbd_publicationdocFIEC_Memo_p2919pdf on 1222008

March JG (1981) Footnotes to Organizational Change Administrative Science Quarterly vol 26 No 4 pp 563-577

Van de Ven A D Polley R Garud and SVenkataraman (1999) The innovation Journey Oxford Oxford Univer-sity Press

Yaneva A (2009) The making of a building A pragmatist approach to Architecture Bern Peter Lang

More about integrated energy design(IED)

httpwwwintendesigncomosloIntendnsfAttachmentsGuideline_Version_2pdf$FILEGuideline_Version_2pdf

34 CSQ

The climate challenge in

shipping

ldquoGlobal shipping faces two major challenges both of which are caused by its reliance on fossil fuelsrdquo

By Reneacute Taudal Poulsen Department of Innovation amp Organizational Economics

RENEacute TAUDAL POULSEN

ASSOCIATE PROFESSOR DEPARTMENT

OF INNOVATION AND ORGANIZATIONAL

ECONOMICS COPENHAGEN BUSINESS

SCHOOL

orecasts show that the shipping indus-tryrsquos CO2 emissions will most likely continue to rise in the next two to

three decades as demand for world sea-borne trade will expand At present global shipping accounts for approximately 33 per cent of global CO2 emissions but this share will most probably increase in the coming years if many onshore industries succeed in their aims of reducing emission levels

At the same time rapidly rising fuel costs put heavy strain on shipping company budg-ets Historically and until very recently fuel costs were only a minor concern for ship-ping companies but now they often exceed 60 per cent of variable operational costs Fuel savings made through energy efficiency improvements thus represent a win-win sce-nario for the shipping industry and for so-ciety at large They simply make good sense for everyone

Despite the strong incentives for fuel sav-ings numerous studies have demonstrated that shipping fails to implement cost-ef-fective measures to reduce fuel consump-tion Fuel-saving technologies are readily available in the market and in many cases pay-back periods are very short (less than a year) Changes in operational habits which require few if any investments also hold a significant potential for fuel savings

Global shipping thus holds several classic examples of energy-efficiency gaps Gaps occur wherever cost-effective measures to improve energy efficiency fail to materialize The causes for energy efficiency gaps have been a favourite research topic within the field of energy economics for decades and economists sociologists and political scien-tists have been able to identify several means to bridge the gaps However within the mar-itime domain energy efficiency gaps and the climate challenge remain neglected issues Legal barriers

Shipsrsquo fuel consumption rises steeply with speed Hence slow-steaming or just minor speed reductions can lower consumption and emission levels significantly Since oil prices started to rise rapidly a few years ago shipping companies have indeed resorted to various slow-steaming practices and com-panies which succeed in this regard have been able to gain competitive advantages In other words actors in the industry are trying to bridge the energy efficiency gap However and in spite of the strong price signals from the rising fuel prices a potential for fuel sav-ing through slow steaming still remains

FNew CBS research project

A new three year research project at CBS under-

taken by Reneacute Taudal Poulsen for the Department

of Innovation and Organizational Economics will

examine the climate issues bringing insights from

energy economics and innovation management

into the field of shipping economics The project

which is financed by The Danish Maritime Fund

runs from 2012 to 2015 The project asks why en-

ergy efficiency gaps continue to occur in shipping

and how shipping companies and the maritime

industry at large can use innovative business

models and process innovation to turn the climate

challenge and the rising fuel costs into a business

opportunity Energy efficiency gaps occur both

in daily operations and when investments in new

vessels are made This article will briefly present

two examples of energy efficiency gaps from

the operational level and some of the preliminary

findings of the project

References

Jaffe AB and RN Stavins 1994 lsquoThe energy efficiency gap What does it meanrsquo Energy Policy 22 (110) 804-10IMO 2009 Second IMO GHG Study 2009 London International Maritime OrganizationMoriarty P amp D Honnery 2012 lsquoEnergy efficiency Lessons from transportrsquo Energy Policy 46 1ndash3Poulsen Reneacute Taudal 2012 lsquoEmissions and energy efficiency - the twin challenges for shippingrsquo Mercator Maritime Innovation Research and Education MarchJune 447-454

Reneacute Taudal Poulsen is Associate Professor at the Department of Innovation and Organizational Eco-nomics at CBS He is also affliated with the Centre for Shipping Economics and Innovation at CBS Reneacute Taudal Poulsen holds a PhD degree in marine environmental history from the University of Southern Denmark and he has worked within the field of maritime business studies for the last seven years He has published in such journals as Fisheries Research Business History and Scandinavian Economic History Review

His current research intersts concern the environmen-tal challenges faced by the global shipping industry and business model innovation in the maritime domain

Research

35CSQ

It is clear that shipping companies cannot fully bridge the energy efficiency gap alone In fact factors beyond the control of in-dividual shipping companies and various structural or legal barriers prevent shipping from fully realizing the slow steaming po-tential

Port congestion remains a world-wide prob-lem and causes ships to spend remarkably long periods inactive Despite the financial crisis and the large drop in shipping freight markets after 2008 many loaded vessels sit at anchor outside ports waiting for berths In some cases they wait for a few hours In other cases for days weeks or even months Instead of waiting the ships could have re-duced speeds and saved fuel And the de-livery and the loading of the cargo in port would not have been delayed in any way However in many cases shipping companies or ship operators cannot reduce speed in spite of port congestion

Educational barriers

Energy efficiency gaps in shipping are also evident when the fuel consumption levels of sister ships are compared Even though the vessels are identical and operate in the same waters studies have shown that their fuel consumption may differ by several Decisions made by the crews onboard and by managers in the onshore organizations clearly influence the level of fuel consump-tion For instance if a captain selects only very small course deviation margins when coding the autopilot of the ship the shiprsquos rudder will move frequently to keep the ship on the exact course all the time This will slow down the ship and cause higher fuel consumption than if the captain had allowed for slightly wider margins and the wider margins would not have any effect on the safety of the ship Decisions made by the commercial depart-ments eg on how to crew the vessels how to monitor vessel fuel consumption or which new equipment to install onboard may also

have a large impact on fuel efficiency and emission levels If shipping company man-agers can nurture a fuel saving culture this could potentially make a difference Since 2007 or 2008 shipping companies have in-deed started to facilitate such organizational changes but educational barriers remain a problemOnshore truck drivers are now offered fuel saving courses but fuel-saving is not a major part of the traditional curriculum in nautical schools or in the commercial education of shipping trainees For good reasons the nau-tical educations have focused on maritime safety but this has caused them to neglect the climate challenge in shipping and the is-sue of fuel saving In fact no single nauticaltext book on maritime fuel savings has yet been published and according to teachers and students in the nautical schools this serves as an educational barrier to ener-gy-efficiency improvements The technical level of education for commercial employees in shipping companies may also hinder im-provements in energy-efficiency Some com-

mercial shipping employees may not have sufficient training to fully see and acknowl-edge the consequences of their decisions on fuel consumption In short it seems that fuel awareness and the educational systems have responded more slowly to the climate chal-lenge than the rise in fuel prices may other-wise suggest

For shipping to bridge energy-efficiency gaps education ndash both nautical and com-mercial ones ndash clearly is an area to set in Here the potential for innovative solutions is both evident and pertinent Changing educational systems and awareness is no easy task bearing in mind the global nature of the shipping industry and international crewing of the world fleet It is clear howev-er that educational upgrading is necessary for shipping to effectively address the cli-mate challenge effectively

Charter parties between ship-operators and shippers state a specific time of arrival for the vessel and in order to avoid claims ships proceed to port accordingly regardless of berth availability Experiments with new more flexible charter parties which allow for slow steaming in case of port congestion have recently been made Shipping compa-nies have generally been enthusiastic about this flexibility but often shippers remain skeptical Lack of trust between shippers which need the loading of their cargoes as soon as possible and shipping companies may be a cause for this discrepancy Even in cases where the savings made from slow-steaming are split between shipping companies and shippers shippers have re-mained skeptical Port queuing systems may have a role to play here

Many ports including some of the major container iron ore coal and grain ports serve ships on ldquofirst-come first-servedrdquo ba-sis Ships only receive their ldquoticketrdquo in the

waiting line upon their arrival at the port Again lack of trust between the ship-oper-ators shippers and the port authorities may explain this phenomenon Moreover port authorities currently do not have incentives to change queuing practices because they cannot gain a share in the fuel savings made from slow-steaming

The problem is particularly strong in the major tramp shipping segments of tanker and dry cargo shipping where vessels act as ldquotaxis of the seardquo serving numerous shippers and rarely calling at the same ports If the fleet from a shipping company only calls at a particular port once a year and the compa-ny has very short-term relations to individ-ual shippers building trustful relationships between the parties remains a major chal-lenge Solving this problem and realizing the full potential of slow steaming will require systemic innovation in shipping and port systems and further studies are required to identify possible solutions

36 CSQ

The Wind turbine industry -

Emerging global innovation networks in Europe and China

The wind turbine industry has developed into a global network encompassing a large amount of diverse actors within innovation production and installation of wind turbines across the globe

By Stine Haakonsson and Julia Kirch Hollitsch Department of Business amp Politics CBS

market for wind energy Chinese actors have turned China as a location into another im-portant lsquohubrsquo in this network This has led to new forms of innovation collaborations between European and Chinese actors The result has been a complete re-configuration of the industry over the past decade In the International Business and Economic Geog-raphy literatures the development of global production networks in which lead-firms be-come orchestrators of dispersed production

enmark has traditionally played a key role as an lsquoinnovation hubrsquo and com-

panies in Denmark remain among the lead firms within the wind turbine industry Re-cently the industry has reorganized from being located predominantly in the Triad regions (mainly in Europe and the US) to becoming a globally dispersed industry This development can partly be explained by de-velopments in international and national politics Due to the growth of the Chinese

activities in globalized value chains is well established theoretically as well as empiri-cally In the globalization process lead firms relocate production activities to low cost lo-cations by off-shoring and through vertical disintegration and outsourcing to specialized suppliers Producers of wind turbines are no exception However until recently the mar-ket and innovation activities remained con-centrated in Europe and US

With the recent focus on global politics for a post-carbon society the market for wind tur-bines has experienced an immense growth and a high degree of market globalization New locations have developed into main markets One of these is China which since 2010 has been the largest market for wind turbines in the world (in capacity installed) The globalization process in the wind tur-bine can be explained by a combination of offshoring of production by European lead firms mainly through foreign direct invest-ment and establishment of domestic lead firms in emerging markets In 2010 there were four Chinese-owned companies among the top-10 producers of wind turbines as compared to 2003 where all firms on this list were from Europe and the US

D

Julia Kirch Hollitsch

Stine Haakonsson

Stine Haakonsson and Julia Kirch Hollitsch from Depart-

ment of Business and Politics CBS are engaged in the

Sino-Danish Center for Research and Education (SDC)

project on Wind Energy in China Both research on the

current restructuring of industries and firms at the glob-

al level (outsourcing off shoring global value chains)

In particular their research is on 1) the restructuring of

innovation and RampD activities into global innovation net-

works(GINs)2)thechangingroleofemergingmarkets

(ChinaIndiaBrazilSouthAfrica)intheseemergingGINs

and 3) technology transfer and capability building related

to renewable energy

Research

37CSQ

by adapting their products to the Chinese market and through cost-out development activities in the new locations primarily China

As a result the wind industry is today highly knowledge-intensive and internationalized Due to increased attention and investments in sustainable transition policies and car-bon-reducing technology China has over the past decade developed into a high prior-ity investment area for wind turbines Also Chinese companies are upgrading technol-ogy and innovation from the global firms through integration into GINs Moreover the production and innovation networks for wind energy become highly complex and consist of many different suppliers of com-ponents (blades gear boxes control systems bearings) resulting in a variety of network linkages among suppliers of different com-ponents and the wind turbine producers

From our empirical data including more than 40 in-depth interviews collected in 2011 and 2012 in the wind turbines indus-tries in China and Denmark we have identi-fied some very interesting patterns We have identified very different characteristics of the GINs established by the Chinese wind tur-bine industry and the European wind tur

Emerging Global Innovation Networks

Innovation processes are also moving be-yond the boundaries of individual compa-nies and national innovation systems Firms engage in cross-border innovation networks spanning different innovation systems which may be national regional or sectorial in or-der to stay competitive in the global econ-omy Chinese lead firms are entering this scene too The result is globally organized networks of interconnected and integrated functions and operations by firms and non-firm organizations engaged in the develop-ment and diffusion of innovations so-called Global Innovation Networks (GINs) Lead firms internationalize innovation through strategies of exploitation global generation of innovation and global techno-scientific collaborations Chinese wind turbine pro-ducers ndash acknowledging their resource and capability deficiency ndash pursue strategies of innovation network integration through strategies of global generation of innovation These firms link up with specialized Europe-an actors such as core component suppliers through partnerships and networks in or-der to tap into the technology of firms from developed countries and upgrade Mean-while European companies internationalize through exploitation strategies for example

bine industry Although Danish and Chinese actors are experiencing a re-organization of activities and establish networks and globa-linnovation strategies the result is very dif-ferent

The industry from Europe and US

The industry from Europe and the US hosts the lead firms in terms of core technology de-velopment Denmark has traditionally played a key role as lsquoinnovation hubrsquo in technology development and global lead firms such as Vestas and Siemens Windpower (previously Danish lsquoBonusrsquo) took its start already in the 1970s The core competences of the Danish wind turbine innovation system are based on large testing facilities and long track records mainly due to the long time-line of experi-ence The wind industry goes 40 years back and therefore Denmark has a good knowl-edge pool within establishing wind farms (aerodynamics minimizing power loss in energy transmission wind mapping and other installation-related technologies)

38 CSQ

that will make it possible to finance the pro-jects ldquoFrom then on our wind turbine pro-jects developed very fastrdquo(Interview Wind Engineer Chinese Academy of Sciences) Thus this law was a milestone for elevating renewables to a strategic position in China or as expressed by a European lead-firm ldquoWhat drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick offrdquo

Until the turn of the millennium Chinarsquos wind energy industry was largely built on donors acquisition of finished wind turbines and licensed technology from European companies spread on a very small scale into the local industry during the mid 1990s Chi-nese wind turbine technology has evolved from imitation reverse engineering and licensing in the 1980-90s combined with assistance from foreign consultants One example is how DANIDA funded a project in 1986 for Goldwind in Xinjiang which imported 13 units of 150 kW lsquoBonusrsquo (now Siemens Wind Power) turbines

To get beyond the stage of pure imitation several policies have been introduced with the intent to upgrade Chinese manufacturers to obtain indigenous innovative capabilities Policy programs were introduced to enhance Chinese companies to develop wind energy subsidizing wind energy RampD expenditures at varied levels over time establishing a re-newable energy fund and through the ldquo863 Wind Programrdquo under the Tenth Five-Year Plan (2001-2005) Local content require-ments were put in place in which develop-ers of wind energy projects were required to source 70 pct of the content in China These policies ndash which essentially forced foreign manufacturers wishing to sell wind turbines to the Chinese market to establish China-based manufacturing facilities ndash were only removed recently (in 2009) One result was that the foreign companies had to up-grade local suppliers of components

Due to the technological complexity many European (and hereby also the Danish) firms are vertically integrated and have most com-ponents produced in-house or with regular specialized suppliers According to these companies the different parts need to be well adjusted to each other to some extent even co-developed in order to enhance effi-ciency and the lifetime of the wind turbine Likewise the European industry has expe-rienced a concentration of actors with the result that there are only relatively few but large manufacturers in Europe (the larg-est ones are Vestas Siemens Gamesa and Enercon) Together these four companies accounted for about 35 of the global mar-ket in 2010 By seeing the wind turbine as an integrated system these lead firms aim at producing lsquothe Rolls Roycersquo model wind turbines These are strong in terms of qual-ity and standards but generally expensive These firms learn cost-out techniques from their engagement with partners in China

The Chinese Wind Turbine Industry

Today the Chinese wind turbine industry is overly competitive It entails more than 80 wind turbine manufacturers and the Chi-nese market boasts the highest growth rates internationally with an average growth rate of 968 percentages annually in the last three years Several large domestic Chinese wind turbine manufacturers have emerged within the last decade Sinovel and Goldwind take the largest share followed by United Pow-er and Ming Yang just to mention some of them As of the end of 2010 these four were A major driver for the development of the Chinese wind energy market has been the establishment of an institutional context as a comprehensive concerted policy frame-work addressing the development of renewa-ble energies This change in the institutional context was first reflected clearly in the 11th 5-year-plan (2006-2010) which explicitly linked environmental sustainability to the key goal of establishing what was called a harmonious socialist society signalling a socially environmentally and economically sustainable economy With the Renewable Energy Law from 2005 the Chinese wind energy industry really took off as it explicitly seeks to ensure that renewable energy pro-jects have an outlet for their output at prices

Technical barriers and the role of GINs for a post-carbon society

Despite high ambitions in terms of devel-oping innovative capabilities Chinese pro-ducers still produce almost exclusively for the Chinese market However Chinese wind turbine manufacturers have recently started an internationalisation process and some are approaching international markets Not least for tapping into new knowledge

Europe (and Denmark in particular) is per-ceived as a main location from which the Chinese companies can learn more A cou-ple of Chinese companies have already set up RampD centres in Denmark European firms have also initiated RampD centres in new lo-cations primarily China and India In other words GINs can be identified

Our research also points towards important barriers for GINs in the wind turbine in-dustry and for approaching a post-carbon global society Most importantly are the technological barriers intellectual property rights quality issues and issues of limited appropriability of knowledge Further the institutional framework remain relevant for displaying how the sector and the emerging GINs are embedded institutionally socially and technologically Whether actors trans-act knowledge technology and know-how through cooperative innovation activities also depends on how core the technology of a given technology is Still as the market grows in China it seems to have matured in Europe because of changing policies on re-newable energy To sustain the position as a global lsquohubrsquo and world leader in wind tech-nologies there is a strong need for support in Europe as this research really shows how fast the Chinese industry is moving One major result is how important networks are for upgrading companies and it seems that Chinese firms perform better in network strategies and manage to tap into relevant knowledge than the European firms

What drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick off rdquoldquoInterview Wind Engineer Chinese Academy of Sciences

39CSQ

Social Enterprise World

ForumNadine Koumlcher from 180Degrees recounts her experience from the

conference on

Rio de Janeiro Brazil 2012

In the numerous panel debates and parallel track discussion it became clear that Impact Investment is a hot topic among both social entrepreneurs and impact investors a diverse group consisting of corporations founda-tions and potential donors However various obstacles impede a harmonious relationship between the twoSocial enterprises face structural challenges to make themselves more appealing to im-pact investors They have to become more transparent and increase their accountability This includes improving their impact assess-ment and reporting tools However despite much discussion no consensus could be formed on how to optimally conduct im-pact assessment One of the most frequently proposed methodologies involves the use

From the 16th to the 18th of October the CBS Sustainability Platform granted me the opportunity to attend the 5th Social Enter-prise World Forum which took place in Rio de Janeiro Brazil This yearly international conference focuses on social enterprises and their effectiveness in solving social challeng-es The overall theme of the 2012 conference hosted by NESsT was ldquoSocial Enterprise Investing for Impactrdquo Thus for three days over 180 speakers and 650 delegates from 30 different countries shared their experiences regarding impact investment and discussed possibilities to attract new investment by both the public and the private sector for so-cial enterprises

of control groups Story-telling has also been men-tioned to be a powerful tool to provide investors with a proof of outcomesSocial investors are willing to accept returns just below the market rate in exchange for a social return However large profits are still expect-ed and many social enter-prises are afraid of being unable to generate them Social enterprises typically operate on a small scale and are not used to undertake large projects with huge sums of investment given to them Many are too small for social investors to be

attractive as costs are similar for small and large investments although larger invest-ments have a higher payoff

Nichole Echert the CEO of NESsT there-fore pointed out that it is necessary to align expectations between impact investors and social entrepreneurs and to be patient in establishing a relationship between the two groups The expected financial return has to be reasonable close to covering the costs of operation and social returns have to be re-ported to investors by use of clearer criteria

By Nadine Koumlcher Director of Branch Development180 Degrees Consulting Limited

ldquoSocial Enterprise Investing for Impactrdquo

Students

40 CSQ

A highlight of the con-ference was definitely the site visit to a social enterprise project in a recently pacified fave-la It brought further insights on the great variety of social enter-prises that exist in Bra-zil and their missions and struggles We visit-ed a community center at which Comitecirc para

Democratizaccedilao da Informaacutetica (CDI) uses technology to fight poverty and to stimulate entrepreneurship CDI has formed a corpo-rate partnership with Coca Cola which in the same building teaches young locals how to write a CV and find a job Talking to the young locals at the center it became apparent that an increased self-confidence and the in-spiration they get from meeting former now employed participants of the project (eg at Coca Cola) is what they valued most of being part of the class

Participating at the conference was definite-ly a unique and valuable experience I would not want to miss as I tremendously improved my knowledge in the field of social enter-prises through attending the numerous pres-entations and discussions and further met so many inspiring social entrepreneurs impact

In addition it has been stressed that the problem is not a shortage of investment capital (even though the government could promote more impact investment by for instance granting tax breaks) but how to deploy it Social entrepreneurs also have to be aware of the different advantages and dis-advantages of the various types of capital It has to fit their process of establishment and it has therefore been suggested that funds and grants are most optimal in the start-up phase to cover such costs as capacity train-ing There is generally a lack of this early stage financial support Following the initial phase strategic philanthropy money would be most appropriate before impact and final-ly equity investment is sought Furthermore new ways of investment which fit the social enterprise world have to be created replac-ing the current situation of trying to fit social enterprises into the current financial world

investors and students with a genuine inter-est in the field

Participating at the conference was definitely a unique and valuable experience rdquo

ldquo

Social Enterprise World Forum 2013 in

Calgary Canada

The TRICO Charitable Foundation in part-nership with the Social Enterprise Council of Canada and the Social Finance Forum has been selected to host the 6th Annual Social Enterprise World Forum SEWF 2013 will take place October 2-4 2013 in Calgary Al-berta The Forum will present the Canadian social enterprise movement with opportuni-ties to engage learn and share on the inter-national stage

SEWF 2013 will be a gathering of over 1000 Canadian and international delegates who are involved in the social enterprise move-ment where the blending of social and fi-nancial values is core to business Attendees will consist of practitioners (from all sec-tors) funders investors supporters elected officials and public servants from around the world

Nadine Koumlcher

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 15: CBS Sustainability Quarterly 2013 #1

15CSQ

In December 180 Degrees Consulting (180DC) finished its third round of pro-bono social impact consulting projects with even more success than in previous semes-ters All consultants showed dedication and motivation by spending a large amount of their spare time to work with socially con-scious organizations in order to help them to improve their social impact

An overcrowded lecture room during the 180DC information meeting at the begin-ning of the semester and the high number of applications to join the consulting projects were evidence of great interest in 180DCrsquos activities Out of the 139 applicants the top 45 were selected in a two-step recruitment process and grouped into teams of five to work on the nine exciting projects lined up in the Fall 2012 semester

All projects involved Danish-based organi-zations with a strong focus on either social andor environmental sustainability The projects however differed vastly One of the consulting teams assisted Engineers Without Borders and Action Aid in developing an investment rationale for the cultivation of farmland belonging to an Indian orphanage as well as assessing the social return of this investment

Another 180DC team worked with Hertha an organization focused on the reverse in-tegration of ordinary people into a commu-nity of mentally challenged Hertha needed assistance with improving their external reporting setup to stakeholders which was achieved by developing useful tools for the organization to measure both the social and cultural impact of their activities Yet another team of consultants helped the International Rehabilitation Council for Torture Victims optimizing their internal processes and thus helping them pursue their vision of a world without torture

During the consulting period 180DC or-ganized several training sessions for the con-sultants of the organization hosted by pro-fessional consultancies and each team was assigned a mentor with expertise specific to the given project The highlight of the semes-ter was the Final Event at which all of the teams presented their projects in front of a large audience comprised of all 180DC con-sultants the 180DC board members as well as mentors clients and a jury consisting of representatives from PwC DI CBS Sustain-ability Platform BCG and VSFA The juryacutes task was to evaluate the consulting projects based on their written report and oral pres-entation Based on the creativity feasibili-ty and impact potential of the projects the chairwoman of the Jury Birgitte Mogensen PwC announced the winner of the 180DC Social Impact Award Team Engineers With-out Borders

All of the 180DC board members have throughout the semester been working hard to constantly improve the organization in or-der to ensure a high quality of the services provided to clients and of the learning ex-perience provided to students With a new extended board in place 180DC is looking forward to continue its successful journey in the upcoming semester which kicked-off in January with two international projects in Chile and Sierra Leone ndash thanks to the sup-port of the CBS Sustainability Platform

by Nadine Koumlcher

UPDATE FROM 180DEGREES180 Degrees Consulting is an international student consultancy that works with growing non-profits helping them achieve a greater social impact

Contactphone no +45 6061 6399e-mail cph180degreesconsultingorg

Updates from partner organizations at CBS

16 CSQ

The past semester was a good one for 360deg Students for Sustainability Not only did our organization grow to nearly 50 members this fall but we were also nominated in the Student category for the CSR Awards 2012 ndash the second year in a row You can watch the nomination video here httpwwwyoutubecomwatchfeature=player_embed-dedampv=6J5mwn7TcYI Although we didnrsquot win the award representatives from 360deg got the chance to participate in the conferencersquos many seminars ndash and not least hear Bill Clin-ton speak360deg also took it to another level with 360deg Academy The project was a huge success with over 250 people signed up for the ex-tracurricular course It shows that there is a clear interest in CSR and sustainability among the students and that 360deg Students

for Sustainability fill an important gap in providing the students with a forum where they can discuss such issues with each oth-er professors and practitioners We have al-ready started planning Academy 2013 which will run in the fall In addition to 360deg Academy 360deg organ-ised several successful events and seminars the past semester 360deg Develop Prize was kick-started in November and has already found some dedicated social entrepreneurs who will join the coming events this spring as well as the final competition 360deg also co-organized events on microfinance (with Danish Forum for Microfinance) and fair-trade (with Fairtrade Maeligrket) We also created a nice Christmas spirit at the CBS campus with our annual Christmas event featuring cookies a fairtrade Christmas tree

and do nations to Red Cross and Verdens SkoveWhile it is important to look back this semester 360deg is focusing on the future By the end of the semester 360deg Students for Sustainability will have changed its name to oikos Copenhagen After becoming part of the international student network oikos in 2011 we believe that changing our name will emphasize our international commitment and will show the students the many oppor-tunities that are available to them through the oikos network You can read more about oikos International and the other 36 chapters around the world by visiting wwwoikos-in-ternationalorg

Christina EkChairwoman of 360deg and soon-to-be President of oikos Copenhagen

UPDATE FROM 360 STUDENTS

360deg Students for Sustainability

360deg Students for Sustainability is a non-profit student organization based at CBS working to enable and inspire students to make responsible and sus-tainable decisions in their future lives and professional careers

Contact Christina Ek tlf 42 39 99 54 mail info360studentsdk

Live show at CSR Awards 2012

(Picture from csrfondendk)

Updates from partner organizations at CBS

17CSQ

UPDATE FROM PRME

New approach by the Curriculum Development

projectThe commitment to the initiative of the UN Principles for Responsible Management Education (PRME) at CBS has been further sustained via a more targeted approach to the development of the curriculum at the undergraduate programmesAs part of the adherence to PRME CBS has launched a Curriculum Development project to integrate responsible management prac-tices into the study programmes and also make these practices more explicit This is an extensive process that recently has been even more focused on the individual content of each of the study programmes A more cus-tomised approach will only strengthen the analyses of syllabi for each core course and increase the content of explicit responsible management

ldquoThe current restructuring of the Service Management bachelor programme and the development of three specialised lines of ed-ucation offer a great opportunity to align the curriculum development with the Principles for Responsible Management adopted by CBS Currently the CBS Office for Respon-sible Management Education and faculty members from CBS are working to identify opportunities to integrate responsible man-agement education into the educational programmerdquo Assistant Professor Adriana

Budeanu BSc in Business Administration and Service Management CBS In collabo-ration with study boards students and fac-ulties the Curriculum Development project enables a targeted approach to the integra-tion of responsible management content in order to comply with the overall structure of each study programme

Anti-piracy strategy from Maersk was a winning strategy

In collaboration with the CBS Sustainabili-ty Platform the CBS Office for Responsible Management Education arranged an internal competition to identify the best team of stu-dents to represent CBS at the International Business Ethics Case Competition (IBECC) in San Diego later this year The students had to select a business case entailing a challenge with legal financial and ethical aspects and propose a solution to this challenge A jury found the winning team based on a live presentation followed by a QampA session that took place in November 2012

The winners of this unique opportunity were the graduate students Bjoslashrg Ilsoslash Klinkby (MSc IBP) Adam Eithz Kromann (MSc BAP) and Anne Cathrine Gaarde (MSc IBP) They presented a business case on the anti-piracy strategy of Maersk

Winners of the Business Ethics Case Competition

Updates from partner organizations at CBS

18 CSQ

THESIS PARTNERSHIP BETWEEN GRADUATE

STUDENTS AND COMPANIES MATCH-MAKING

On behalf of CBS the Office for Responsible Management Education invited companies and organi-sations to participate in a match-making event with graduate students who were looking to write their thesis within the field of sustainability or social responsibility

Prior to the event that took place on the 6th of February ambitious graduate students were matched with eight very diverse organ-isations all wanting to explore challenge and develop CSR related activities The selection of organisations ranged from Center for So-cialt Ansvar who sought the studentsrsquo advice on how to revitalise their social concepts in corporation with the civic public and pri-vate sector to Wonderful Copenhagen that engaged the students in their aspirations of

retaining Copenhagen as a leading ldquogreenrdquo conference destination This diversity mere-ly reflected the broad-based educational standards that are embodied in the conducts of CBS and enabled students from all study areas to participate With the meeting as the focal point of the event the aim was to in-troduce more students and companies to the possibilities of a thesis partnership On that basis it is the hope that students and organisations will take the initial meeting

further into a collaboration resulting in a thesis that with an analytical and reflected approach hopefully provides valuable insight for all parties The event was indeed a unique opportunity for the students to get the or-ganisationsrsquo unremitting attention but also the organisations expressed their excitement about how the theoretical knowledge and skills of the students could be combined with the specific issues reaching beyond everyday operations of the organisation

PRME

Lene Mette SoslashrensenTel +45 3815 2651E-mail lmsiklcbsdk

PRME Manager

Johanne Duelund Kramer from Wonderful Copenhagen and CBS student Joseacute Bandeirinha from International Marketing and Management

Updates from partner organizations at CBS

19CSQ

A value adding partnership

The match-making event was kick-started by Professor Andreas Rasche who gave a short speech on trends in the field of sustainability and social responsibility Likewise thesis con-sultant Vibeke Ankersborg rounded off the event by guiding both students and organisa-tion representatives in the right direction of obtaining a value adding thesis partnership

By facilitating integration of the theoretical knowledge pool at CBS with real-life busi-ness cases and their challenges this initiative underpins CBSrsquos Responsible Management Education profile ldquoAddressing societal chal-lenges in interaction with business is a key element in our Business in Society strategy and we hope to set up a similar initiative in the futurerdquo Lene Mette Soslashrensen PRME Manager CBS

Being able to engage in a thesis partnership gives us the opportunity to get new and fresh eyes on the challenges and opportunities we face in the aspiration of sus-taining Copenhagenrsquos position as marked leader within sustainable meetings and events ndash and the other way around we see it as a positive contribution to help young students to gain in-depth knowledge on how we actually work with sustainability in practicerdquo

Ulrika Maringrtensson senior communication consultant Wonderful Copenhagen

ldquo

Case Companies

20 CSQ

Update from CBS Centre for Corporate Social Responsibility

cbsCSR celebration10 years anniversaryOn Thursday November 22 2012 CBS Centre for Corporate Social Responsibility (cbsCSR) celebrated its 10 years anniversary The guest list included prominent guests from both academia and the corporate world Head of Department Dorte Salskov-Iversen President Per Holten-Andersen and cbsCSR Director Esben Rahbek Pedersen bid all a warm welcome to an afternoon of inspirational talks and celebration of the Centre

Susanne Stormer followed and initiated her presentation with a brief recap of Novo Nor-diskrsquos history and continuous development of corporate sustainability practices She em-phasized how Novo Nordisk with the help of Professor Ed Freeman has prioritized a close relationship with their stakeholders and learning with them as a means to reach a higher level of corporate sustainability An additional key take-away from Susanne Stormer was the notion of transformational partnerships She argued that corporations NGOs and other stakeholders should use each other to form transformational partner-ships instead of just transactional partner-ships She claimed that in order to address and solve the problems in todayrsquos world the issues have to be addressed at the roots ndash in cooperation with stakeholders

The program had been divided into two ses-sions Each session ended with a panel dis-cussion that gave the audience the opportu-nity to track the developmental trajectory of CSR and participate in the discussion of the future direction of CSR

In the first session which focused on the history of CSR Professor Lucia Reisch from Department of Intercultural Communica-tion and Management CBS Susanne Storm-er VP of Corporate Sustainability at Novo Nordisk and Professor Gail Whiteman from Rotterdam School of Management present-ed their perspectives on the development of CSR up until nowProfessor Lucia Reisch set the stage with an enlightening introduction to the history of sustainable development and emphasized balance on the triple bottom line as key

Professor Gail Whitemanrsquos presentation highlighted both the past and the future of CSR Her main topic was how to deal with planetary boundaries She drew attention to inherent implications of teaching sustaina-bility and CSR at a business school and ar-gued that in order for students and business executives to understand the implications of planetary boundaries and their importance classes should be taught in nature

In the second session Annette Stube Head of Group Sustainability in AP Moller ndash Maersk Simon Pickard Director General at ABIS and Professor Andreas Rasche from cbsCSR presented their views on the future of CSR

Updates from partner organizations at CBS

21CSQ

The topics in the second panel debate evolved around some of the same issues as in the first panel debate The audience was very interested in the educational aspect of CSR and sustainability and a discussion fol-lowed concerning the issues of lsquopreaching to the convertedrsquo Research shows that 75 of CSR courses are not mandatory 1 thus those students and executives who have a natural interest in CSR and sustainability enroll for these courses The speakers agreed that this posed a challenge for the future and that business schools might have to re-invent themselves in this regard They stressed that it is crucial that CSR and sustainability courses become mandatory Also the prac-titioners advocated in-company learning They set forth the argument that it may be a long time before current students will have sufficient impact on the corporate sector but also because the corporate sector and the ac-ademic world can learn from one another

Sum-up of key perspectives for the future

So how has lsquothe business of business really changedrsquo and in what direction From the afternoonrsquos discussions there were two recur-ring topics Susanne Stormer briefly touched upon it when she talked about transforma-tional partnerships Annette Stube and AP

Annette Stube set forth the argument that ldquothe business of business has really changedrdquo She gave an example of how AP Moller ndash Maersk should use their position in the shipping industry to facilitate substantial changes Simon Pickard supported her argu

ment stating that it is not possible for single corporations to make a difference but that clusters of corporations have to collaborate to push changes If corporations do not join forces they risk only making incremental changes Simon Pickard further argued paraphrasing Andrew Pettigrewrsquos argument that in the course of time there has been a conceptual change in the argument for CSR He pointed to the fact that it started out as a moral or philanthropic enterprise and is now perceived as a governance case Simon Pickard pointed to the fact that the future of business is to create shared value ie creat-ing economic value that also creates value for society at large Building on these re-marks Andreas Rasche discussed the future of standards and codes in the field of CSR Emphasizing a variety of case examples he argued that while standards have proliferated in recent years eg certification schemes in the global coffee and apparel industries there is a need to more actively manage the co-ex-istence of these initiatives in order to avoid overlap Rasche also highlighted the pivotal role of consumers who need to acknowledge standards and labels as market signals and factor social and environmental concerns into purchasing decisions

Moller ndash Maersk has it as an integrated and crucial part of their CSR policies and Simon Pickard highlighted how instrumental the-ories are no longer enough The concept of shared value is inescapable and it is what the lsquobusiness of businessrsquo in the early 21st centu-ry is really about

A second topic which also attracted a lot of attention was the importance of continuous education of both lsquothe convertedrsquo but also of opponents of CSR and people who are not aware of the importance of CSR and sustain-ability In-company learning was depicted as a crucial part of the development of CSR and sustainability however a physical change in the teaching settings is also required to meet the approaching environmental challenges

Centre Director Esben Rahbek Pedersen concluded the conference and the winners of the prize of 25000 DKK to participate in the IBECC case competition in San Diego in May 2013 were announced and the celebra-tion of cbsCSR ended with a reception

Thank you to all the speakers moderators and guests for an inspirational afternoon

By Elise Lind Jacobsen and Line Pedini Rasmussen cbsCSR

1Rasche A Gilbert DU and Schedel I (2013) Cross-Disciplinary Ethics Education in MBA Programs Rhetoric or Reality Academy of Management Learning and Education (forthcoming)

Three of the keynote speakers (from left) Professor Gail Whiteman from Rotterdam School of Management VP of Corporate Sustainability at Novo Nordisk Susanne Stormer and Sustaina-bility Professor at CBS Lucia Reisch

Simon Pickard Director General at ABIS

22 CSQ

UPDATE FROM

CBS GOES GREENThe Green Associate Program

2012 was an exciting year for CBS Goes Green with many great achievements One of the new initiatives that was launched in 2012 was the Green Associate Program Here CBS students were able to volunteer in a program to support sustainable behavior among students and staff at CBS More precisely 25 CBS stu-dents put in 30 hours of voluntary work to help with the planning and execution of Green Week - a week consisting of a lineup of successful companies shar-ing their sustainable initiatives and thoughts The overwhelming interest in sustainability and sustain-able business among the students has made it evi-dent that the Green Associate Program should con-tinue in 2013 We at CBS Goes Green look forward to this as well as all of the other initiatives we will be conducting in 2013

The following is an extract of an article that three of the associates wrote themselves This extract shows the associatesrsquo own experience working with CBS Goes Green

What does it mean to be an

associate with CBS Goes Green

In Week 39 CBS turned into a plethora of green initia-tives and events in order to make CBS reach its sustaina-bility goals for 2020 Both students and employees at CBS were asked to become a Green Ambassador to help CBS be smarter greener and better

But many of you may wonder how it is to be one of the people behind the scene As associates we have been help-ing out before and during Green Week in order to establish an event that would reach all corners of CBS This has re-quired both time and effort in order to make things work out but in the end there are also a lot of gains from being an associate

Firstly as an associate you get to expand your network You get to work with people from different studies countries and ages and you also get to talk to many different people while promoting

A bonus about being an associate is also that you get an official certificate which can be attached to your resume This shows that you have put an effort into making Green Week happen

Furthermore by being an associate you feel like you have a larger impact on making CBS a greener place Instead of being an ambassador and only doing the things you can do you get to be the person who raises awareness about sustainability You may influence people to make the right choices and it makes you feel good

Lastly it also gives you a feeling of responsibility because you work under an official part of CBS CBS Goes Green ndash a unit with a clear agenda and a clear vision

By Michael Nguyen Christian Charity and Christian-Philip Lundahl

Updates from partner organizations at CBS

23CSQ

International conference on sustainable biofuels presents latest research

By Barbara Louise Bech Department of Business and Politics CBS

EU Renewable Energy Directive

In 2009 the EU RED set a mandatory target for member states to use a minimum of 10 renewable energy sources in the transport sector by 2020 of which biofuels is expected to be the main contributor This is part of a policy to cut greenhouse gas emissions promote the green technology sector develop rural areas and reduce dependency on fos-sil fuels Due to increasing controversies claiming lack of sustainability in first generation biofuels based on food crops recently the EU pro-posed an amendment to the Directive limiting the share of first gener-ation biofuels to 5 of the targeted 10

The debate quickly zoomed in on the sustainability criteria as outlined in the EU RED drawing attention to the lack of social safeguards The general consensus is that the concept of sustainability is too narrow-ly defined Several case studies (Mozambique Brazil and Indonesia) show that basic labor and human rights of local populations are not protected by RED and the directive is more viewed as an environmen-tal safeguard This discussion raised questions in regard to the effects of RED globally (eg sustainable production in developing countries) and in this context whether EU legislation can have a lsquotrickle downrsquo effect on national standards of nation-states outside the EU In this re-gards one could ask if enforcement at the local level falls under the re-sponsibility of the EU but since first generation biofuels are produced outside the EU it is an important issue for European consumers ndash al-though interest is currently mainly driven by NGOs

On November 19-20 2012 the Copenhagen Biofuels Research Network (COBREN) held an international conference on sustainable biofuels inviting 30 research-ers from around the world to present and discuss their latest research During the two day conference focus was the sustainability criteria of the EU Renewable Energy Directive (RED) voluntary certification schemes and their impacts on sustainability and social safeguards in producer (developing) countries in particular and governance complexity of the biofuel system which has grown considerably over the past decade

Rough guide to biofuelsThere are two types of biofuels biodiesel and ethanol First generation biofuels (1G) are based on food crops and feed stocks such as palm oil soybean and rapeseed used for the production of biodiesel and sugarcane and corn for ethanol The produc-tion of biofuels increased heavily in the 2000s questioning the sustainability of 1G A number of issues have been claimed as key impediments to sustainable biofuel production such as deforestation competition with food production and increasing food prices loss of biodiversity lack of social and environmental safeguards and indirect land use change (ILUC) These contro-versies have led to a call for the promotion of second generation biofuels (2G) which are typically based on agricultural waste (eg straw) plants and forestry residues (also called lignocellu-losic biomassmaterials) However the immediate problem is that there is yet to be developed a market for 2G as they are more costly to produce (require longer and more complex production process)

CBS Sustainability Platform co-director and organizer of the COBREN conference Stefano Ponte doing a presentation

Event

24 CSQ

Voluntary certification schemes

In relation to how standards and certifications can impact sustainable biofuel production discussions pointed to the important difference be-tween mandatory and voluntary schemes As the controversy of sus-tainable biofuels in particular first generation is rolling out special attention has been given to biofuel production competing with food production ILUC value of emissions reduction and environmental and social issues This have off sprung a proliferation in private certifi-cations and during the conference it was discussed intensely whether these schemes have an actual effect on sustainability Depending on the point of view certifications can fill out the holes in legislation and act as a tool to force companies to comply with sustainability crite-ria However the development processes of new certifications may not be inclusive of relevant stakeholders (eg representatives of local populations) Additionally the nature and governance of the networks steering these processes is not always transparent and may favor one interest over the other This intense discussion led to the question of the purpose of certifications Can we use them for anything other than as a CSR PR tool as long as consumer awareness is as low as it is and how do the different regional drivers influence sustainability as a concept The answers to these questions are not easily found and it will be interesting to observe the future development and partnership between public and private sector

Governing the biofuel industry

Within the past decade biodiesel production has risen from below 30PJ in 2000 to 572PJ in 2009 globally and fuel ethanol production has increased from 340PJ to 1540 PJ respectively As the market expands more actors eg governments international organizations civil soci-ety and NGOs private sector networks and companies and profes-sions (biofuel experts and consultants) get involved and play different roles to promote their own agendas Being an emerging industry the structure of the biofuel system shows hybrid forms of governance with many actors As controversies of biofuelsrsquo sustainability develop more issues are added to the agenda giving life to more actors and interests in the governance structure Research shows a shift in power balance as private companies and NGOs increasingly push the agenda The dis-cussions during the conference centered on the complexity of sustain-ability issues calling for mixed governance responses and governance instruments such as standards and certifications which in return need to be followed up with endorsement instruments Given these com-plexities the question is whether the biofuel industry is too difficult to govern as long as the governing systems (for instance the EU) cannot accommodate expectations of all stakeholders

Indirect land use change (ILUC)ILUC is the unintended consequence in terms of more carbon emis-sions due to land use change around the world induced by the expan-sion of croplands for biofuel production When land that could be used to grow food and feed crops is used to grow energy crops this leads to existing agricultural production moving to another area or country where land is converted When this land is cleared and converted to cropland and because natural lands (rainforests and grasslands) store and sequester carbon in their soil and biomass a net increase in GHG emissions can occur Due to this change in the carbon stock of the soil and the biomass ILUC has consequences in the GHG balance of a biofuel Adding to this complexity models for ILUC calculations are not mainstreamed and thus difficult to assess internationally

25CSQ

Mellemfolkeligt Samvirke (MS) or Action Aid Denmark is a Danish NGO founded back in 1944 The

organizations key objective is to fight poverty by ensuring greater political influence for the worldrsquos poor and margin-alized at the local national and international levels MS works to bring about long-term development in the worldrsquos poorest countries focusing especially on education co-

operation and the ability to organize MS mainly works in Africa Read more about the organizationrsquos work

at wwwactionaiddk

Action Aid

A private sector view on the future of sustainable biofuels

By Barbara Louise Bech Department of Business and Politics CBS

nergy security continues to be an eminent concern in a world of finite resources For a long time biofuels have been viewed as

one of the key solutions to replace our dependency on fossil fuels and battle climate change but in recent years controversy has contested the sustainability of first generation biofuels based on food stock Issues such as lack of environmental safeguards causing loss of biodiversi-ty and deforestation and lack of social safeguards ensuring land and labor rights in producer (developing) countries have been claimed as key impediments to sustainable biofuel production Critical observers also argue that the emission savings of biofuel use in compar-ison to fossil fuels can become much smaller (or even disappear) when indirect land use change (ILUC) is included in the calculations Furthermore bi-omass production from food stock is argued to compete with food production and in-creasing food prices

The Danish NGO Action Aid has been engaged in biofuels since 2008 and is par-ticularly involved in protecting womenrsquos rights and preventing land grabs in de-veloping countries ldquoWe are very concerned about land use when it comes to first genera-tion biofuels This relates both to the people who are dependent on the land and to food security We rarely see good combinations where the local populationrsquos needs are taken into consideration The energy crops grown on the local farmerrsquos land donrsquot benefit him and local consumption is essential for developmentrdquo explains Kirsten Hjoslashrnholm Soslashrensen political advisor Action Aid Denmark

It is therefore believed by many that second generation biofuels is the only way forward to avoid competition with food and avert ILUC Next generation biofuels is based on lignocellulosic biomass such as agricultural and household waste and forest residues The Biorefining Alliance represents a cluster of leading Danish companies within the renewable energy sector with an ambition to promote second gener-

ation biofuels and make Denmark a world leader of technology and bi-ofuel productionldquoDenmark has very strong competencies in green tech and as a society we have put a lot of money in its development This is go-ing to be a huge deal globally so we are asking whether Denmark wants to be a customer or a producer What we are working for is of course that we become a lead exporter of technology but also that Denmark produces second generation biofuels commercially Even though we are a small country we cannot settle on selling know-how Denmark also needs to have some industrial productionrdquo says Anne Grete Holmsgaard di-

rector of Biorefining Alliance In her view Denmark needs to keep a firm grip on developing innovation or it will slowly but

steadily move out of the country In this regard she views sustainability criteria for biofuels as an in-

novator and not a hindrance

The Sustainable Biofuels Network (SBN) is another cluster of private companies trying to facilitate the transition from fossil fuels to biofuels in the transport sector For the aviation industry biofuels are considered

to be the only alternative to fossil fuels and the industry firmly believes that biofuels will

survive according to Robert Arendal chairman of SBN ldquoThe aviation industry has set very clear

guidelines for the use of biofuels We are not going to use food based biofuels and we will minimize the use of fresh

water By 2050 our target is to use 50 biofuels in the global aviation so we really need to move fastrdquo he explains adding that living up to sustainability criteria includes being careful about where biofuels are produced ldquoBut it should be produced all over the world and close to the 1600 airports worldwide that account for 95 of all aviationrdquo

he technology for second generation biofuels is already here but the problem is that production costs are too high and there is no market As long as prices are not competitive with conventional fuels it will be difficult to move forward ldquoOne might ask why there is no market The customers are certainly there so if I was in the business of producing

E

As part of the COBREN international conference on sustainable biofuels private sector civil society and academia were invited to give their views on sustainable biofuels at a roundtable discussion at an open public seminar held at DIIS November 19 2012

Event

26 CSQ

SBN is a ldquobreeding groundrdquo and ldquoknowledge centerrdquo for the biofu-els industry where synergies are created between all parties within

the biofuels sector SBN focuses in promoting supporting and enabling the commercial development and use of clean and sustainable biofuels for Heavy Road Transportation Shipping and Aviation Emphasis is put on the importance of global standards for biofuels with local as well as international institutions and decision makers to encourage con-

structive guidelines and rules for the development of biofuels SBN adheres to EUrsquos sustainability criteria SBN is a non-profit asso-

ciation established in 2008 Visit their website for more info at wwwsustainablebiofulsdk

Sustainable Biofuels Network(SBN)

The Biorefining Alliance (BA) was founded December 2011 by DONG Energy Novozymes Haldor Topsoslashe and the

Danish Agriculture and Food Council and is a three-year project to politically promote Denmarkrsquos position in the entire value chain from residues to bio-based products The Alliance has set forth a number of recommendations to achieve a sustainable Danish bio-economy Among other these include (i) that all organic

waste be considered a resource (high-value recycling and storable energy) (ii) reducing the cost of manufacturing 2G

bioethanol and (iii) contemplating the establishment of a national center for sustainable materials

Biorefining Alliance

second generation biofuels I would get started right awayrdquo says Robert Arendal The Biorefining Alliance is working on lowering the costs and recommends a stronger regulatory framework with binding targets as it has been done for the wind industry ldquoThere already is a market for first generation biodiesel which is the least sustainable biofuel We need to make a market for second generation biofuels and we know that binding targets work I donrsquot think it is possible to create a market for the lsquogreen consumerrsquo as you have one for organic food products but I believe that a niche market for HRT (Heavy Road Transport red) such as public bus transport could be a supplementrdquo concludes Anne Grete Holmsgaard

How the future for sustainable biofuels will shape depends on political will to create a market for second generation and the ability of private sector to innovate and bring prices down Oil production is claimed by some to already have peaked and exploring new geographical areas for extraction could be as costly as kick-starting the market for second generation biofuels although much less sustainable As the American ecologist and environmentalist Bill McKibben wrote in his book ldquoDeep Economyrdquo back in 2007

Even before we run out of oil wersquore running out of planetrdquoldquo Bill McKibben

27CSQ

The Transparency-Sustainability NexusA workshop on the practices meanings and tensions of organiza-

tional transparency

n December 5 2012 the Department of Intercultural Communication and Management (ICM) hosted an in-

ternational workshop supported by CBS Sustainability Plat-form and ICM The workshop was organized by Oana Brindusa Albu Mikkel Flyverbom and Hans Krause Hansen respectively PhD Fellow and Associate Professors at ICM The idea of the workshop was spurred by the observation that while ideals of transparency like lsquoopennessrsquo lsquodisclosurersquo and lsquoreportingrsquo are pro-liferating these years the actual construction of transparency within and across organizations is poorly understood Most re-search on transparency is highly normative if not celebratory just as popular discourse about transparency not least in the areas of sustainability and corporate social responsibility is obsessed with ideals of accountability performance and effi-ciency and pervaded by an optimism currently pushed to its extreme with the explosion of new media technologies

But the truth is that we generally know very little about the implications of ideals of transparency when translated into practice in specific issue areas and organizational contexts Importantly each of the contributions to this workshop clear-ly suggested that the contemporary politics of transparency is much more complex contradictory and dynamic than tradi-tionally recognized All papers examined various aspects of the contemporary obsession with transparency and specifically the increasing use of disclosure techniques within and around or-ganizations the rationales or myths underpinning these meas-ures their intended and unintended consequences including implications for identity-making management and govern-ance practices

Clare Birchall initiated the workshop with a paper titled lsquoThe Cultural Politics of Disclosurersquo highlighting how transparency has been positioned as a superior form of disclosure in popular management and organizational literatures and in policy docu-ments In her account the growing preference for transparency is a consequence not only of the positive qualities seen to be intrinsic to transparency itself but also a response to the per-ceived negative characteristics of other forms of disclosure such as gossip scandal and rumor Lars Thoslashger Christensen (with co-author Joep Cornelissen) then analyzed transparency as one of the foundational myths of modernity myths understood here as descriptions of the world in a narrative form which seeks to produce meaning and direction for a community and its members Such lsquoMyths of Transparencyrsquo sustain numerous organizational practices ndash including openness information provision and auditing But as argued by the authors there are conflicting evidence regarding the capacity of such practices to create insights and understandingThat aspirations and techniques of transparency can have seri-ous repercussions was demonstrated by Peter Skaeligrbaeligk (with co-author Mark Christensen) in the paper entitled lsquoAuditing and the purification of blamersquo which analyzed how auditing auditing practices and institutional entities including the po-liticized environments surrounding them are mobilized and participate in blame games and allocation In his paper titled lsquoQuantification transparency and the costs of reassurancersquo Henrik Vollmer analyzed various dimensions of the role of nu-merical records and signaling in generating transparency trust and mistrust

By Hans Krause Hansen Department of Intercultural Communication amp Management

Event

O

28 CSQ

Some of these aspects were also touched upon in the paper lsquoDisrupted Disclosures The Politics of Visibility and Surveil-lance in the Extractive Industriesrsquo by Hans Krause Hansen (with co-author Julie Uldam) which explored the wider field of visibility and surveillance in which contemporary transpar-ency policies are unfolding with examples from the extractive industries Oana Brindusa Albu in her lsquoTransparency and the organizational self everyday politics of identification in Cooperativesrsquo examined the paradoxical effects of values and practices of transparency on collective identity formation pro-cesses drawing upon her ongoing multi-sited fieldwork in co-operatives Under the heading of lsquoThe Improbability of Secrecyrsquo Mark Fenster analyzed the intersections of secrecy and trans-parency with examples from the US government and its efforts to control information which according to the author does not necessarily stop the flow of information Finally Mikkel Fly-verbom and Christina Garsten examined lsquoThe sway of (big) data ndash calculations and advocacy in the name of transparencyrsquo focusing on the operations of data-based forms of corporate lsquotransparency evangelismrsquo and advocacy through revelation including examples from Center for Global Development and Google

In all the workshop was highly successful in investigating not only the historical and mythical foundations of transparency but also the different practices and forms of transparency that currently shape organizations and a wide variety of issue areas It also provided a reminder of the usefulness of investigating a concept of transparency in relationship to a host of other con-cepts such as secrecy myth gossip blame surveillance visi-bility identity information and knowledge The organizers of the workshop wish to thank all workshop participants for their valuable contributions and the CBS Sustainability Platform and ICM for their support

Hans Krause Hansen

Mikkel Flyverbom

Oana Brindusa Albu

ASSOCIATE PROFESSORPHD (ICM)

ASSOCIATE PROFESSORPHD (ICM)

PHD FELLOW (ICM)

29CSQ

Louise Lyngfeldt Gorm Hansen is a PhD Fellow at the Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) She has a back-ground in Chinese Studies from Copenhagen University (BA) the Asian Studies Program at CBS (BSc) and in International Business Stud-ies and Sustainable Business (MSc) from CBS

The aim of her cross-disciplinary PhD project is to explore how the Chinese hydropower sector works with environmental sustainability and more particularly how the concept is understood and performed in the planning phase of a major dam project in the southwestern Chinese province of Yunnan

The aim of the project is to gain a deeper under-standing of how Chinese firms in the renewable energy sector such as hydropower companies understand and value sustainability as well as how such firms tackle the increasing pressure to deliver socially and environmentally balanced solutions to one of Chinarsquos major challenges lowering CO2 emissions in a time with rapidly rising water and energy demands Theoretically the project draws on - and aims to contribute to ndash a combination of Asian Studies and Science and Technology Studies

PHD FocusLouise Lyngfeldt Gorm Hansen

HYDROPOWER

SUSTAINABILITY

30 CSQ

HYDROPOWER

SUSTAINABILITY IN

CHINAy PhD project combines two of my main research interests China and

environmental sustainability I have studied China for a number of years mainly because of an interest in how the Chinese view sus-tainable development So since finishing my masters I have known that I wanted to study how China plan to tackle a sustainable tran-sition in the years to come I saw my chance when CBS announced PhD scholarships in

DanishEuropean-Chinese social science research in collaboration with the newly es-tablished Sino-Danish Center for Education and Research (SDC) and started my PhD in October 2011My PhD project focuses on the Chinese energy sector more specifically the rapidly growing part of the energy sector engaged in renewable energy Here I examine Chinarsquos second largest source of electricity gene-

eration hydropower In recent years China has become increasingly focused on reduc-ing CO2 emissions While some countries such as the US and Australia are decommis-sioning hydropower dams China is looking to large-scale hydropower construction as one of the solutions to a future clean energy supply This means that hydropower devel-opment plays a central role in Chinarsquos sus-tainable transition

However utilization of hydropower is con-troversial not least in China and has met increasing resistance in recent years particu-larly from Chinese and international NGOs the media as well as the scientific commu-nity Critique is most often focused on how or if social and environmental sustainability can be ensured in such large scale projects as the social and environmental impacts of large scale hydropower development are very complex and difficult to measure More gen-erally the viability of relying on hydropow-er as a future source of energy is also being questioned One of the major concerns here is the overarching issue of climate change ie glaciers shrinking and yearly water runoff decreasing This means less stable water flow for hydropower and less water for other pur-poses such as agriculture water supply for down-stream countries etc

By Louise Lyngfeldt Gorm Hansen Asia Research Centre Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) ndash sinodanishcenterdk

M

Picture from SinoHydro promotion material 2011

Research

31CSQ

In contrast to for example the wind power sector in China in which many foreign com-panies have invested the hydropower sector is dominated by a few large state-owned en-terprises Our knowledge of Chinese state-owned enterprises is still limited and there-fore my PhD project is also part of a larger research project at the Asia Research Centre with focus on Chinese state-owned enter-prises and the reform of the public sector in China

In combining these interests my PhD exam-ines how Chinese state-owned enterprises in the hydropower sector tackle the demand to expand hydropower development to help reduce Chinarsquos CO2 emissions while be-ing under increasing pressure to deliver on sustainability principles in the planning and execution of large scale hydropower pro-jects The pressure comes mainly from NGO organizations the media and the scientific community both at home and from abroad I am conducting a case study focused on a specific river in south-western China which has ndash until now ndash not been fully developed for hydropower and the plans for addition-al hydropower dams on the river are still undergoing assessments The project has continually stalled due to disagreements between Chinese government officials at all levels NGOs the media the increasingly deregulated but still state-owned Chinese hydropower companies and the scientif-ic community However the project has very recently been reopened and so will go through another round of assessments in the near future The case is an excellent example of the complexity of hydropower develop-ment decisions in China but it also highlights some of the social and environmental conse-quences of the global push to decrease CO2 emissions

China plays and will continue to play an increasingly important role globally in the years to come However the country also fac-es enormous challenges - not least regarding the environment These challenges also affect economies in Western Europe - for better or worse My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective so

that we here in Europe and in Denmark can more knowledgably and actively engage with China to help solve some of these difficult challenges that eventually affect us all In do-ing this I contribute to gain a better under-standing of the Chinese perspective on envi-ronmental sustainability that can be of use to companies wanting to engage in the Chinese renewable energy sector

My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective rdquoldquo

Picture of the case-river taken by the author in 2012

32 CSQ

FROM BLUEPRINT TO PRACTICE

ENERGY EFFICIENT CONSTRUCTION

By postdoc researcher Satu Reijonen Department of Organization CBS

In the EU almost one third of CO2 emis-sions are attributed to energy used in the construction and use of buildings (FIEC

2007) It is therefore not surprising that the construction sector has recently been subjected to a substantial amount of policy measures to combat its negative effects on climate change In Denmark the state has posed new thresholds for the energy efficien-cy of new buildings including a plan for con-tinuous improvement in the area This far the industry has responded well to these stricter performance requirements In the future re-quirements will rise to levels that are not that easily achieved in the coming years build-ings will have to use 25 less energy than in year 2008 How can these ambitious goals become business as usual

One of the most discussed ways besides add-on technologies such as windmills and solar panels to enhance the energy efficiency of a building is through an energy efficient phys-ical design In practice this means reduction of energy used for heating cooling down and lighting of the building through an optimal orientation and dimensioning of the build-ing

Integrated energy design contrary to add-on technologies can be achieved on a rath-er modest additional budget This should be good news for the sector that today is eco-nomically pressed Indeed today many low energy building projects claim to use the in-tegrated energy design method (IED) when seeking to meet the most ambitious energy related goals In this commentary I wish to discuss some challenges related to the imple-mentation of this design tool

The integrated energy design method sug-gests that one of the main problems in not achieving energy efficiency is that energy related concerns become integrated into the design process too late The method consists of two elements the first of which addresses the need to bring in energy related knowl-edge throughout the design process It sug-gests that design teams ought to be multidis-ciplinary and that architects engineers and experts should work together either co-lo-cated or in a series of workshops Further-more it suggests systematizing energy quali-ty follow-ups into the design process This is all very relevant and inspiring

Oddly enough a closer look on the actual design practices reveals that few seem to ac-tually follow the method of integrated energy design to the point This poses an interest-ing question about the challenges related to the use of such management technologies as vehicles for increased energy efficiency in construction Maybe it is about time practi-tioners and researchers ask themselves what are the boundaries of and challenges related to the use of these tools ndash and what else is required for organizing for more energy effi-cient building design processes

A revolution of relations

Integrated energy design points to the need to bring energy related expertise into the de-sign process at an earlier point In order to achieve this cooperative practices between different professional groups are advocated for Historically energy experts have most-ly been used to respond to rather advanced architectural plans Shared workshops and co-localization suggest a change in these business as usual relations But are they pos-sible and what type of changes do they ac-tually imply in order to function as wished

Research

33CSQ

Satu Reijonen is postdoctoral scholar at the Department of Organization at CBS In her on-going research project she investigates how architects and energy engineers two different profes-sions cooperate and coordinate their work regarding energy related ques-tions in construction design The ways in which relations between and roles of these professions become consti-tuted through socio-material arrange-ments are a central topics in her work Besides studies of work Satu has con-ducted research on environmentally friendly products and markets

ABOUT SATU RAIJONEN

The initiation of this type of new working forms is certainly beneficial for energy effi-cient design However for several reasons they are more difficult to make work than one would assume While it may sound rea-sonable it is after all a tall order Integrating energy related practices into an environment where different visions professions and in-terests meet and the divide between what one profession does is clearly and historically demarcated is demanding While architects need to make room for the intervention of energy experts into the creative work energy experts have to become capable of working creatively and relate to and follow the visual and aesthetic cues from architects In order to work these kind of changes in the profes-sional roles and relations have to resonate with the skills and visions of individual work-ers not only management level design strat-egies It is not surprising that organizational change scholars remind us of the possibility of loose coupling from the strategies placed at the management level (March 1981) What integrated energy design suggests is a kind of a revolution in the ways in which both the architects and the energy engineers envision their role and space of mobility

Linear tools in an unlinear design process

Integrated energy design suggests that the energy performance of the emerging build-ing design be followed up at certain points during the design process The method de-picts a rather mechanistic and linear under-standing of a design process consisting of phases within which iteration may occur While energy related issues may be dis-cussed as quality goals during these phases the method places a lot of emphasis on the check ups performed in the transition from one phase to another Design processes how-ever can also be characterized in a different manner unlinear exploratory and whirl wind type of practices where clear cut phases hardly exist (Akrich 1992 Van de Ven et al 1999) This also applies to the architectural design processes where the object of the de-sign is emergent (Yaneva 2009) This entails that the product the building may change in unexpected ways during any day of the de-sign process If this alternative description of the design processes is viable delegating energy related issues to some predetermined check up episodes may strike a false accord and indeed be contradictory with the aim of enhancing coordination and cooperation between professional groups What happens in between the predetermined checkups may very well be where the energy efficiency of the building becomes configured and where the intervention from the energy experts

would come most needed Perhaps this is why the best performing projects do not blindly follow the steps of the IED method Check ups however and no doubt play a role in verifying and making visible the energy performance for partners outside the design team

Integrated energy design as many other sus-tainability standards and guidelines make visible systematize and legitimize the ex-istence of environmental management and sustainability issues in organizations and work processes In this such way tools create awareness and legitimacy for environmental and sustainability issues The integrated en-ergy design method also suggests a possible way of thinking about what type of design practice might help us to achieve the stricter energy requirements of the future It howev-er falls short in becoming the change agent it suggests This is hardly surprising as a meth-od or a standard of any kind should only be seen as a possibility or as an opening for an inquiry of what the practice could be about Reconfiguring a well established practice is hard work and it would be foolish to trust that a design method would achieve it by itself What the method does is to alert us of the more profound changes in the pro-fessional roles and relations that is needed in order to enable the change However the method due to its rather mechanical under-standing of the design process may come to work against its own ambition of integrating energy issues into the design work In its quest for integration the method defines at which points in time the architectural and the engineering project has to be checked for its energy performance This approach may lead to bringing in energy related concerns in some artificially created points in a design process which may additionally compart-mentalize energy related issues from where the design really happens

Integrated energy design as many other sustainability standards and guidelines make visible systematize and legitimize the existence of environmental management and sustainability issues in organizations and work pro-cessesrdquo

ldquoLiteratureAkrich M (1992) The De-Scription of Technical Objects in Shaping Technology Building Society Studies in Soci-otechnical Change eds WE Bijker and J Law The MIT Press Cambridge Massachusetts pp 205-224

FIEC 2007 The impacts of buildings on climate change httpwwwbuildingsplatformeuepbd_publicationdocFIEC_Memo_p2919pdf on 1222008

March JG (1981) Footnotes to Organizational Change Administrative Science Quarterly vol 26 No 4 pp 563-577

Van de Ven A D Polley R Garud and SVenkataraman (1999) The innovation Journey Oxford Oxford Univer-sity Press

Yaneva A (2009) The making of a building A pragmatist approach to Architecture Bern Peter Lang

More about integrated energy design(IED)

httpwwwintendesigncomosloIntendnsfAttachmentsGuideline_Version_2pdf$FILEGuideline_Version_2pdf

34 CSQ

The climate challenge in

shipping

ldquoGlobal shipping faces two major challenges both of which are caused by its reliance on fossil fuelsrdquo

By Reneacute Taudal Poulsen Department of Innovation amp Organizational Economics

RENEacute TAUDAL POULSEN

ASSOCIATE PROFESSOR DEPARTMENT

OF INNOVATION AND ORGANIZATIONAL

ECONOMICS COPENHAGEN BUSINESS

SCHOOL

orecasts show that the shipping indus-tryrsquos CO2 emissions will most likely continue to rise in the next two to

three decades as demand for world sea-borne trade will expand At present global shipping accounts for approximately 33 per cent of global CO2 emissions but this share will most probably increase in the coming years if many onshore industries succeed in their aims of reducing emission levels

At the same time rapidly rising fuel costs put heavy strain on shipping company budg-ets Historically and until very recently fuel costs were only a minor concern for ship-ping companies but now they often exceed 60 per cent of variable operational costs Fuel savings made through energy efficiency improvements thus represent a win-win sce-nario for the shipping industry and for so-ciety at large They simply make good sense for everyone

Despite the strong incentives for fuel sav-ings numerous studies have demonstrated that shipping fails to implement cost-ef-fective measures to reduce fuel consump-tion Fuel-saving technologies are readily available in the market and in many cases pay-back periods are very short (less than a year) Changes in operational habits which require few if any investments also hold a significant potential for fuel savings

Global shipping thus holds several classic examples of energy-efficiency gaps Gaps occur wherever cost-effective measures to improve energy efficiency fail to materialize The causes for energy efficiency gaps have been a favourite research topic within the field of energy economics for decades and economists sociologists and political scien-tists have been able to identify several means to bridge the gaps However within the mar-itime domain energy efficiency gaps and the climate challenge remain neglected issues Legal barriers

Shipsrsquo fuel consumption rises steeply with speed Hence slow-steaming or just minor speed reductions can lower consumption and emission levels significantly Since oil prices started to rise rapidly a few years ago shipping companies have indeed resorted to various slow-steaming practices and com-panies which succeed in this regard have been able to gain competitive advantages In other words actors in the industry are trying to bridge the energy efficiency gap However and in spite of the strong price signals from the rising fuel prices a potential for fuel sav-ing through slow steaming still remains

FNew CBS research project

A new three year research project at CBS under-

taken by Reneacute Taudal Poulsen for the Department

of Innovation and Organizational Economics will

examine the climate issues bringing insights from

energy economics and innovation management

into the field of shipping economics The project

which is financed by The Danish Maritime Fund

runs from 2012 to 2015 The project asks why en-

ergy efficiency gaps continue to occur in shipping

and how shipping companies and the maritime

industry at large can use innovative business

models and process innovation to turn the climate

challenge and the rising fuel costs into a business

opportunity Energy efficiency gaps occur both

in daily operations and when investments in new

vessels are made This article will briefly present

two examples of energy efficiency gaps from

the operational level and some of the preliminary

findings of the project

References

Jaffe AB and RN Stavins 1994 lsquoThe energy efficiency gap What does it meanrsquo Energy Policy 22 (110) 804-10IMO 2009 Second IMO GHG Study 2009 London International Maritime OrganizationMoriarty P amp D Honnery 2012 lsquoEnergy efficiency Lessons from transportrsquo Energy Policy 46 1ndash3Poulsen Reneacute Taudal 2012 lsquoEmissions and energy efficiency - the twin challenges for shippingrsquo Mercator Maritime Innovation Research and Education MarchJune 447-454

Reneacute Taudal Poulsen is Associate Professor at the Department of Innovation and Organizational Eco-nomics at CBS He is also affliated with the Centre for Shipping Economics and Innovation at CBS Reneacute Taudal Poulsen holds a PhD degree in marine environmental history from the University of Southern Denmark and he has worked within the field of maritime business studies for the last seven years He has published in such journals as Fisheries Research Business History and Scandinavian Economic History Review

His current research intersts concern the environmen-tal challenges faced by the global shipping industry and business model innovation in the maritime domain

Research

35CSQ

It is clear that shipping companies cannot fully bridge the energy efficiency gap alone In fact factors beyond the control of in-dividual shipping companies and various structural or legal barriers prevent shipping from fully realizing the slow steaming po-tential

Port congestion remains a world-wide prob-lem and causes ships to spend remarkably long periods inactive Despite the financial crisis and the large drop in shipping freight markets after 2008 many loaded vessels sit at anchor outside ports waiting for berths In some cases they wait for a few hours In other cases for days weeks or even months Instead of waiting the ships could have re-duced speeds and saved fuel And the de-livery and the loading of the cargo in port would not have been delayed in any way However in many cases shipping companies or ship operators cannot reduce speed in spite of port congestion

Educational barriers

Energy efficiency gaps in shipping are also evident when the fuel consumption levels of sister ships are compared Even though the vessels are identical and operate in the same waters studies have shown that their fuel consumption may differ by several Decisions made by the crews onboard and by managers in the onshore organizations clearly influence the level of fuel consump-tion For instance if a captain selects only very small course deviation margins when coding the autopilot of the ship the shiprsquos rudder will move frequently to keep the ship on the exact course all the time This will slow down the ship and cause higher fuel consumption than if the captain had allowed for slightly wider margins and the wider margins would not have any effect on the safety of the ship Decisions made by the commercial depart-ments eg on how to crew the vessels how to monitor vessel fuel consumption or which new equipment to install onboard may also

have a large impact on fuel efficiency and emission levels If shipping company man-agers can nurture a fuel saving culture this could potentially make a difference Since 2007 or 2008 shipping companies have in-deed started to facilitate such organizational changes but educational barriers remain a problemOnshore truck drivers are now offered fuel saving courses but fuel-saving is not a major part of the traditional curriculum in nautical schools or in the commercial education of shipping trainees For good reasons the nau-tical educations have focused on maritime safety but this has caused them to neglect the climate challenge in shipping and the is-sue of fuel saving In fact no single nauticaltext book on maritime fuel savings has yet been published and according to teachers and students in the nautical schools this serves as an educational barrier to ener-gy-efficiency improvements The technical level of education for commercial employees in shipping companies may also hinder im-provements in energy-efficiency Some com-

mercial shipping employees may not have sufficient training to fully see and acknowl-edge the consequences of their decisions on fuel consumption In short it seems that fuel awareness and the educational systems have responded more slowly to the climate chal-lenge than the rise in fuel prices may other-wise suggest

For shipping to bridge energy-efficiency gaps education ndash both nautical and com-mercial ones ndash clearly is an area to set in Here the potential for innovative solutions is both evident and pertinent Changing educational systems and awareness is no easy task bearing in mind the global nature of the shipping industry and international crewing of the world fleet It is clear howev-er that educational upgrading is necessary for shipping to effectively address the cli-mate challenge effectively

Charter parties between ship-operators and shippers state a specific time of arrival for the vessel and in order to avoid claims ships proceed to port accordingly regardless of berth availability Experiments with new more flexible charter parties which allow for slow steaming in case of port congestion have recently been made Shipping compa-nies have generally been enthusiastic about this flexibility but often shippers remain skeptical Lack of trust between shippers which need the loading of their cargoes as soon as possible and shipping companies may be a cause for this discrepancy Even in cases where the savings made from slow-steaming are split between shipping companies and shippers shippers have re-mained skeptical Port queuing systems may have a role to play here

Many ports including some of the major container iron ore coal and grain ports serve ships on ldquofirst-come first-servedrdquo ba-sis Ships only receive their ldquoticketrdquo in the

waiting line upon their arrival at the port Again lack of trust between the ship-oper-ators shippers and the port authorities may explain this phenomenon Moreover port authorities currently do not have incentives to change queuing practices because they cannot gain a share in the fuel savings made from slow-steaming

The problem is particularly strong in the major tramp shipping segments of tanker and dry cargo shipping where vessels act as ldquotaxis of the seardquo serving numerous shippers and rarely calling at the same ports If the fleet from a shipping company only calls at a particular port once a year and the compa-ny has very short-term relations to individ-ual shippers building trustful relationships between the parties remains a major chal-lenge Solving this problem and realizing the full potential of slow steaming will require systemic innovation in shipping and port systems and further studies are required to identify possible solutions

36 CSQ

The Wind turbine industry -

Emerging global innovation networks in Europe and China

The wind turbine industry has developed into a global network encompassing a large amount of diverse actors within innovation production and installation of wind turbines across the globe

By Stine Haakonsson and Julia Kirch Hollitsch Department of Business amp Politics CBS

market for wind energy Chinese actors have turned China as a location into another im-portant lsquohubrsquo in this network This has led to new forms of innovation collaborations between European and Chinese actors The result has been a complete re-configuration of the industry over the past decade In the International Business and Economic Geog-raphy literatures the development of global production networks in which lead-firms be-come orchestrators of dispersed production

enmark has traditionally played a key role as an lsquoinnovation hubrsquo and com-

panies in Denmark remain among the lead firms within the wind turbine industry Re-cently the industry has reorganized from being located predominantly in the Triad regions (mainly in Europe and the US) to becoming a globally dispersed industry This development can partly be explained by de-velopments in international and national politics Due to the growth of the Chinese

activities in globalized value chains is well established theoretically as well as empiri-cally In the globalization process lead firms relocate production activities to low cost lo-cations by off-shoring and through vertical disintegration and outsourcing to specialized suppliers Producers of wind turbines are no exception However until recently the mar-ket and innovation activities remained con-centrated in Europe and US

With the recent focus on global politics for a post-carbon society the market for wind tur-bines has experienced an immense growth and a high degree of market globalization New locations have developed into main markets One of these is China which since 2010 has been the largest market for wind turbines in the world (in capacity installed) The globalization process in the wind tur-bine can be explained by a combination of offshoring of production by European lead firms mainly through foreign direct invest-ment and establishment of domestic lead firms in emerging markets In 2010 there were four Chinese-owned companies among the top-10 producers of wind turbines as compared to 2003 where all firms on this list were from Europe and the US

D

Julia Kirch Hollitsch

Stine Haakonsson

Stine Haakonsson and Julia Kirch Hollitsch from Depart-

ment of Business and Politics CBS are engaged in the

Sino-Danish Center for Research and Education (SDC)

project on Wind Energy in China Both research on the

current restructuring of industries and firms at the glob-

al level (outsourcing off shoring global value chains)

In particular their research is on 1) the restructuring of

innovation and RampD activities into global innovation net-

works(GINs)2)thechangingroleofemergingmarkets

(ChinaIndiaBrazilSouthAfrica)intheseemergingGINs

and 3) technology transfer and capability building related

to renewable energy

Research

37CSQ

by adapting their products to the Chinese market and through cost-out development activities in the new locations primarily China

As a result the wind industry is today highly knowledge-intensive and internationalized Due to increased attention and investments in sustainable transition policies and car-bon-reducing technology China has over the past decade developed into a high prior-ity investment area for wind turbines Also Chinese companies are upgrading technol-ogy and innovation from the global firms through integration into GINs Moreover the production and innovation networks for wind energy become highly complex and consist of many different suppliers of com-ponents (blades gear boxes control systems bearings) resulting in a variety of network linkages among suppliers of different com-ponents and the wind turbine producers

From our empirical data including more than 40 in-depth interviews collected in 2011 and 2012 in the wind turbines indus-tries in China and Denmark we have identi-fied some very interesting patterns We have identified very different characteristics of the GINs established by the Chinese wind tur-bine industry and the European wind tur

Emerging Global Innovation Networks

Innovation processes are also moving be-yond the boundaries of individual compa-nies and national innovation systems Firms engage in cross-border innovation networks spanning different innovation systems which may be national regional or sectorial in or-der to stay competitive in the global econ-omy Chinese lead firms are entering this scene too The result is globally organized networks of interconnected and integrated functions and operations by firms and non-firm organizations engaged in the develop-ment and diffusion of innovations so-called Global Innovation Networks (GINs) Lead firms internationalize innovation through strategies of exploitation global generation of innovation and global techno-scientific collaborations Chinese wind turbine pro-ducers ndash acknowledging their resource and capability deficiency ndash pursue strategies of innovation network integration through strategies of global generation of innovation These firms link up with specialized Europe-an actors such as core component suppliers through partnerships and networks in or-der to tap into the technology of firms from developed countries and upgrade Mean-while European companies internationalize through exploitation strategies for example

bine industry Although Danish and Chinese actors are experiencing a re-organization of activities and establish networks and globa-linnovation strategies the result is very dif-ferent

The industry from Europe and US

The industry from Europe and the US hosts the lead firms in terms of core technology de-velopment Denmark has traditionally played a key role as lsquoinnovation hubrsquo in technology development and global lead firms such as Vestas and Siemens Windpower (previously Danish lsquoBonusrsquo) took its start already in the 1970s The core competences of the Danish wind turbine innovation system are based on large testing facilities and long track records mainly due to the long time-line of experi-ence The wind industry goes 40 years back and therefore Denmark has a good knowl-edge pool within establishing wind farms (aerodynamics minimizing power loss in energy transmission wind mapping and other installation-related technologies)

38 CSQ

that will make it possible to finance the pro-jects ldquoFrom then on our wind turbine pro-jects developed very fastrdquo(Interview Wind Engineer Chinese Academy of Sciences) Thus this law was a milestone for elevating renewables to a strategic position in China or as expressed by a European lead-firm ldquoWhat drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick offrdquo

Until the turn of the millennium Chinarsquos wind energy industry was largely built on donors acquisition of finished wind turbines and licensed technology from European companies spread on a very small scale into the local industry during the mid 1990s Chi-nese wind turbine technology has evolved from imitation reverse engineering and licensing in the 1980-90s combined with assistance from foreign consultants One example is how DANIDA funded a project in 1986 for Goldwind in Xinjiang which imported 13 units of 150 kW lsquoBonusrsquo (now Siemens Wind Power) turbines

To get beyond the stage of pure imitation several policies have been introduced with the intent to upgrade Chinese manufacturers to obtain indigenous innovative capabilities Policy programs were introduced to enhance Chinese companies to develop wind energy subsidizing wind energy RampD expenditures at varied levels over time establishing a re-newable energy fund and through the ldquo863 Wind Programrdquo under the Tenth Five-Year Plan (2001-2005) Local content require-ments were put in place in which develop-ers of wind energy projects were required to source 70 pct of the content in China These policies ndash which essentially forced foreign manufacturers wishing to sell wind turbines to the Chinese market to establish China-based manufacturing facilities ndash were only removed recently (in 2009) One result was that the foreign companies had to up-grade local suppliers of components

Due to the technological complexity many European (and hereby also the Danish) firms are vertically integrated and have most com-ponents produced in-house or with regular specialized suppliers According to these companies the different parts need to be well adjusted to each other to some extent even co-developed in order to enhance effi-ciency and the lifetime of the wind turbine Likewise the European industry has expe-rienced a concentration of actors with the result that there are only relatively few but large manufacturers in Europe (the larg-est ones are Vestas Siemens Gamesa and Enercon) Together these four companies accounted for about 35 of the global mar-ket in 2010 By seeing the wind turbine as an integrated system these lead firms aim at producing lsquothe Rolls Roycersquo model wind turbines These are strong in terms of qual-ity and standards but generally expensive These firms learn cost-out techniques from their engagement with partners in China

The Chinese Wind Turbine Industry

Today the Chinese wind turbine industry is overly competitive It entails more than 80 wind turbine manufacturers and the Chi-nese market boasts the highest growth rates internationally with an average growth rate of 968 percentages annually in the last three years Several large domestic Chinese wind turbine manufacturers have emerged within the last decade Sinovel and Goldwind take the largest share followed by United Pow-er and Ming Yang just to mention some of them As of the end of 2010 these four were A major driver for the development of the Chinese wind energy market has been the establishment of an institutional context as a comprehensive concerted policy frame-work addressing the development of renewa-ble energies This change in the institutional context was first reflected clearly in the 11th 5-year-plan (2006-2010) which explicitly linked environmental sustainability to the key goal of establishing what was called a harmonious socialist society signalling a socially environmentally and economically sustainable economy With the Renewable Energy Law from 2005 the Chinese wind energy industry really took off as it explicitly seeks to ensure that renewable energy pro-jects have an outlet for their output at prices

Technical barriers and the role of GINs for a post-carbon society

Despite high ambitions in terms of devel-oping innovative capabilities Chinese pro-ducers still produce almost exclusively for the Chinese market However Chinese wind turbine manufacturers have recently started an internationalisation process and some are approaching international markets Not least for tapping into new knowledge

Europe (and Denmark in particular) is per-ceived as a main location from which the Chinese companies can learn more A cou-ple of Chinese companies have already set up RampD centres in Denmark European firms have also initiated RampD centres in new lo-cations primarily China and India In other words GINs can be identified

Our research also points towards important barriers for GINs in the wind turbine in-dustry and for approaching a post-carbon global society Most importantly are the technological barriers intellectual property rights quality issues and issues of limited appropriability of knowledge Further the institutional framework remain relevant for displaying how the sector and the emerging GINs are embedded institutionally socially and technologically Whether actors trans-act knowledge technology and know-how through cooperative innovation activities also depends on how core the technology of a given technology is Still as the market grows in China it seems to have matured in Europe because of changing policies on re-newable energy To sustain the position as a global lsquohubrsquo and world leader in wind tech-nologies there is a strong need for support in Europe as this research really shows how fast the Chinese industry is moving One major result is how important networks are for upgrading companies and it seems that Chinese firms perform better in network strategies and manage to tap into relevant knowledge than the European firms

What drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick off rdquoldquoInterview Wind Engineer Chinese Academy of Sciences

39CSQ

Social Enterprise World

ForumNadine Koumlcher from 180Degrees recounts her experience from the

conference on

Rio de Janeiro Brazil 2012

In the numerous panel debates and parallel track discussion it became clear that Impact Investment is a hot topic among both social entrepreneurs and impact investors a diverse group consisting of corporations founda-tions and potential donors However various obstacles impede a harmonious relationship between the twoSocial enterprises face structural challenges to make themselves more appealing to im-pact investors They have to become more transparent and increase their accountability This includes improving their impact assess-ment and reporting tools However despite much discussion no consensus could be formed on how to optimally conduct im-pact assessment One of the most frequently proposed methodologies involves the use

From the 16th to the 18th of October the CBS Sustainability Platform granted me the opportunity to attend the 5th Social Enter-prise World Forum which took place in Rio de Janeiro Brazil This yearly international conference focuses on social enterprises and their effectiveness in solving social challeng-es The overall theme of the 2012 conference hosted by NESsT was ldquoSocial Enterprise Investing for Impactrdquo Thus for three days over 180 speakers and 650 delegates from 30 different countries shared their experiences regarding impact investment and discussed possibilities to attract new investment by both the public and the private sector for so-cial enterprises

of control groups Story-telling has also been men-tioned to be a powerful tool to provide investors with a proof of outcomesSocial investors are willing to accept returns just below the market rate in exchange for a social return However large profits are still expect-ed and many social enter-prises are afraid of being unable to generate them Social enterprises typically operate on a small scale and are not used to undertake large projects with huge sums of investment given to them Many are too small for social investors to be

attractive as costs are similar for small and large investments although larger invest-ments have a higher payoff

Nichole Echert the CEO of NESsT there-fore pointed out that it is necessary to align expectations between impact investors and social entrepreneurs and to be patient in establishing a relationship between the two groups The expected financial return has to be reasonable close to covering the costs of operation and social returns have to be re-ported to investors by use of clearer criteria

By Nadine Koumlcher Director of Branch Development180 Degrees Consulting Limited

ldquoSocial Enterprise Investing for Impactrdquo

Students

40 CSQ

A highlight of the con-ference was definitely the site visit to a social enterprise project in a recently pacified fave-la It brought further insights on the great variety of social enter-prises that exist in Bra-zil and their missions and struggles We visit-ed a community center at which Comitecirc para

Democratizaccedilao da Informaacutetica (CDI) uses technology to fight poverty and to stimulate entrepreneurship CDI has formed a corpo-rate partnership with Coca Cola which in the same building teaches young locals how to write a CV and find a job Talking to the young locals at the center it became apparent that an increased self-confidence and the in-spiration they get from meeting former now employed participants of the project (eg at Coca Cola) is what they valued most of being part of the class

Participating at the conference was definite-ly a unique and valuable experience I would not want to miss as I tremendously improved my knowledge in the field of social enter-prises through attending the numerous pres-entations and discussions and further met so many inspiring social entrepreneurs impact

In addition it has been stressed that the problem is not a shortage of investment capital (even though the government could promote more impact investment by for instance granting tax breaks) but how to deploy it Social entrepreneurs also have to be aware of the different advantages and dis-advantages of the various types of capital It has to fit their process of establishment and it has therefore been suggested that funds and grants are most optimal in the start-up phase to cover such costs as capacity train-ing There is generally a lack of this early stage financial support Following the initial phase strategic philanthropy money would be most appropriate before impact and final-ly equity investment is sought Furthermore new ways of investment which fit the social enterprise world have to be created replac-ing the current situation of trying to fit social enterprises into the current financial world

investors and students with a genuine inter-est in the field

Participating at the conference was definitely a unique and valuable experience rdquo

ldquo

Social Enterprise World Forum 2013 in

Calgary Canada

The TRICO Charitable Foundation in part-nership with the Social Enterprise Council of Canada and the Social Finance Forum has been selected to host the 6th Annual Social Enterprise World Forum SEWF 2013 will take place October 2-4 2013 in Calgary Al-berta The Forum will present the Canadian social enterprise movement with opportuni-ties to engage learn and share on the inter-national stage

SEWF 2013 will be a gathering of over 1000 Canadian and international delegates who are involved in the social enterprise move-ment where the blending of social and fi-nancial values is core to business Attendees will consist of practitioners (from all sec-tors) funders investors supporters elected officials and public servants from around the world

Nadine Koumlcher

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 16: CBS Sustainability Quarterly 2013 #1

16 CSQ

The past semester was a good one for 360deg Students for Sustainability Not only did our organization grow to nearly 50 members this fall but we were also nominated in the Student category for the CSR Awards 2012 ndash the second year in a row You can watch the nomination video here httpwwwyoutubecomwatchfeature=player_embed-dedampv=6J5mwn7TcYI Although we didnrsquot win the award representatives from 360deg got the chance to participate in the conferencersquos many seminars ndash and not least hear Bill Clin-ton speak360deg also took it to another level with 360deg Academy The project was a huge success with over 250 people signed up for the ex-tracurricular course It shows that there is a clear interest in CSR and sustainability among the students and that 360deg Students

for Sustainability fill an important gap in providing the students with a forum where they can discuss such issues with each oth-er professors and practitioners We have al-ready started planning Academy 2013 which will run in the fall In addition to 360deg Academy 360deg organ-ised several successful events and seminars the past semester 360deg Develop Prize was kick-started in November and has already found some dedicated social entrepreneurs who will join the coming events this spring as well as the final competition 360deg also co-organized events on microfinance (with Danish Forum for Microfinance) and fair-trade (with Fairtrade Maeligrket) We also created a nice Christmas spirit at the CBS campus with our annual Christmas event featuring cookies a fairtrade Christmas tree

and do nations to Red Cross and Verdens SkoveWhile it is important to look back this semester 360deg is focusing on the future By the end of the semester 360deg Students for Sustainability will have changed its name to oikos Copenhagen After becoming part of the international student network oikos in 2011 we believe that changing our name will emphasize our international commitment and will show the students the many oppor-tunities that are available to them through the oikos network You can read more about oikos International and the other 36 chapters around the world by visiting wwwoikos-in-ternationalorg

Christina EkChairwoman of 360deg and soon-to-be President of oikos Copenhagen

UPDATE FROM 360 STUDENTS

360deg Students for Sustainability

360deg Students for Sustainability is a non-profit student organization based at CBS working to enable and inspire students to make responsible and sus-tainable decisions in their future lives and professional careers

Contact Christina Ek tlf 42 39 99 54 mail info360studentsdk

Live show at CSR Awards 2012

(Picture from csrfondendk)

Updates from partner organizations at CBS

17CSQ

UPDATE FROM PRME

New approach by the Curriculum Development

projectThe commitment to the initiative of the UN Principles for Responsible Management Education (PRME) at CBS has been further sustained via a more targeted approach to the development of the curriculum at the undergraduate programmesAs part of the adherence to PRME CBS has launched a Curriculum Development project to integrate responsible management prac-tices into the study programmes and also make these practices more explicit This is an extensive process that recently has been even more focused on the individual content of each of the study programmes A more cus-tomised approach will only strengthen the analyses of syllabi for each core course and increase the content of explicit responsible management

ldquoThe current restructuring of the Service Management bachelor programme and the development of three specialised lines of ed-ucation offer a great opportunity to align the curriculum development with the Principles for Responsible Management adopted by CBS Currently the CBS Office for Respon-sible Management Education and faculty members from CBS are working to identify opportunities to integrate responsible man-agement education into the educational programmerdquo Assistant Professor Adriana

Budeanu BSc in Business Administration and Service Management CBS In collabo-ration with study boards students and fac-ulties the Curriculum Development project enables a targeted approach to the integra-tion of responsible management content in order to comply with the overall structure of each study programme

Anti-piracy strategy from Maersk was a winning strategy

In collaboration with the CBS Sustainabili-ty Platform the CBS Office for Responsible Management Education arranged an internal competition to identify the best team of stu-dents to represent CBS at the International Business Ethics Case Competition (IBECC) in San Diego later this year The students had to select a business case entailing a challenge with legal financial and ethical aspects and propose a solution to this challenge A jury found the winning team based on a live presentation followed by a QampA session that took place in November 2012

The winners of this unique opportunity were the graduate students Bjoslashrg Ilsoslash Klinkby (MSc IBP) Adam Eithz Kromann (MSc BAP) and Anne Cathrine Gaarde (MSc IBP) They presented a business case on the anti-piracy strategy of Maersk

Winners of the Business Ethics Case Competition

Updates from partner organizations at CBS

18 CSQ

THESIS PARTNERSHIP BETWEEN GRADUATE

STUDENTS AND COMPANIES MATCH-MAKING

On behalf of CBS the Office for Responsible Management Education invited companies and organi-sations to participate in a match-making event with graduate students who were looking to write their thesis within the field of sustainability or social responsibility

Prior to the event that took place on the 6th of February ambitious graduate students were matched with eight very diverse organ-isations all wanting to explore challenge and develop CSR related activities The selection of organisations ranged from Center for So-cialt Ansvar who sought the studentsrsquo advice on how to revitalise their social concepts in corporation with the civic public and pri-vate sector to Wonderful Copenhagen that engaged the students in their aspirations of

retaining Copenhagen as a leading ldquogreenrdquo conference destination This diversity mere-ly reflected the broad-based educational standards that are embodied in the conducts of CBS and enabled students from all study areas to participate With the meeting as the focal point of the event the aim was to in-troduce more students and companies to the possibilities of a thesis partnership On that basis it is the hope that students and organisations will take the initial meeting

further into a collaboration resulting in a thesis that with an analytical and reflected approach hopefully provides valuable insight for all parties The event was indeed a unique opportunity for the students to get the or-ganisationsrsquo unremitting attention but also the organisations expressed their excitement about how the theoretical knowledge and skills of the students could be combined with the specific issues reaching beyond everyday operations of the organisation

PRME

Lene Mette SoslashrensenTel +45 3815 2651E-mail lmsiklcbsdk

PRME Manager

Johanne Duelund Kramer from Wonderful Copenhagen and CBS student Joseacute Bandeirinha from International Marketing and Management

Updates from partner organizations at CBS

19CSQ

A value adding partnership

The match-making event was kick-started by Professor Andreas Rasche who gave a short speech on trends in the field of sustainability and social responsibility Likewise thesis con-sultant Vibeke Ankersborg rounded off the event by guiding both students and organisa-tion representatives in the right direction of obtaining a value adding thesis partnership

By facilitating integration of the theoretical knowledge pool at CBS with real-life busi-ness cases and their challenges this initiative underpins CBSrsquos Responsible Management Education profile ldquoAddressing societal chal-lenges in interaction with business is a key element in our Business in Society strategy and we hope to set up a similar initiative in the futurerdquo Lene Mette Soslashrensen PRME Manager CBS

Being able to engage in a thesis partnership gives us the opportunity to get new and fresh eyes on the challenges and opportunities we face in the aspiration of sus-taining Copenhagenrsquos position as marked leader within sustainable meetings and events ndash and the other way around we see it as a positive contribution to help young students to gain in-depth knowledge on how we actually work with sustainability in practicerdquo

Ulrika Maringrtensson senior communication consultant Wonderful Copenhagen

ldquo

Case Companies

20 CSQ

Update from CBS Centre for Corporate Social Responsibility

cbsCSR celebration10 years anniversaryOn Thursday November 22 2012 CBS Centre for Corporate Social Responsibility (cbsCSR) celebrated its 10 years anniversary The guest list included prominent guests from both academia and the corporate world Head of Department Dorte Salskov-Iversen President Per Holten-Andersen and cbsCSR Director Esben Rahbek Pedersen bid all a warm welcome to an afternoon of inspirational talks and celebration of the Centre

Susanne Stormer followed and initiated her presentation with a brief recap of Novo Nor-diskrsquos history and continuous development of corporate sustainability practices She em-phasized how Novo Nordisk with the help of Professor Ed Freeman has prioritized a close relationship with their stakeholders and learning with them as a means to reach a higher level of corporate sustainability An additional key take-away from Susanne Stormer was the notion of transformational partnerships She argued that corporations NGOs and other stakeholders should use each other to form transformational partner-ships instead of just transactional partner-ships She claimed that in order to address and solve the problems in todayrsquos world the issues have to be addressed at the roots ndash in cooperation with stakeholders

The program had been divided into two ses-sions Each session ended with a panel dis-cussion that gave the audience the opportu-nity to track the developmental trajectory of CSR and participate in the discussion of the future direction of CSR

In the first session which focused on the history of CSR Professor Lucia Reisch from Department of Intercultural Communica-tion and Management CBS Susanne Storm-er VP of Corporate Sustainability at Novo Nordisk and Professor Gail Whiteman from Rotterdam School of Management present-ed their perspectives on the development of CSR up until nowProfessor Lucia Reisch set the stage with an enlightening introduction to the history of sustainable development and emphasized balance on the triple bottom line as key

Professor Gail Whitemanrsquos presentation highlighted both the past and the future of CSR Her main topic was how to deal with planetary boundaries She drew attention to inherent implications of teaching sustaina-bility and CSR at a business school and ar-gued that in order for students and business executives to understand the implications of planetary boundaries and their importance classes should be taught in nature

In the second session Annette Stube Head of Group Sustainability in AP Moller ndash Maersk Simon Pickard Director General at ABIS and Professor Andreas Rasche from cbsCSR presented their views on the future of CSR

Updates from partner organizations at CBS

21CSQ

The topics in the second panel debate evolved around some of the same issues as in the first panel debate The audience was very interested in the educational aspect of CSR and sustainability and a discussion fol-lowed concerning the issues of lsquopreaching to the convertedrsquo Research shows that 75 of CSR courses are not mandatory 1 thus those students and executives who have a natural interest in CSR and sustainability enroll for these courses The speakers agreed that this posed a challenge for the future and that business schools might have to re-invent themselves in this regard They stressed that it is crucial that CSR and sustainability courses become mandatory Also the prac-titioners advocated in-company learning They set forth the argument that it may be a long time before current students will have sufficient impact on the corporate sector but also because the corporate sector and the ac-ademic world can learn from one another

Sum-up of key perspectives for the future

So how has lsquothe business of business really changedrsquo and in what direction From the afternoonrsquos discussions there were two recur-ring topics Susanne Stormer briefly touched upon it when she talked about transforma-tional partnerships Annette Stube and AP

Annette Stube set forth the argument that ldquothe business of business has really changedrdquo She gave an example of how AP Moller ndash Maersk should use their position in the shipping industry to facilitate substantial changes Simon Pickard supported her argu

ment stating that it is not possible for single corporations to make a difference but that clusters of corporations have to collaborate to push changes If corporations do not join forces they risk only making incremental changes Simon Pickard further argued paraphrasing Andrew Pettigrewrsquos argument that in the course of time there has been a conceptual change in the argument for CSR He pointed to the fact that it started out as a moral or philanthropic enterprise and is now perceived as a governance case Simon Pickard pointed to the fact that the future of business is to create shared value ie creat-ing economic value that also creates value for society at large Building on these re-marks Andreas Rasche discussed the future of standards and codes in the field of CSR Emphasizing a variety of case examples he argued that while standards have proliferated in recent years eg certification schemes in the global coffee and apparel industries there is a need to more actively manage the co-ex-istence of these initiatives in order to avoid overlap Rasche also highlighted the pivotal role of consumers who need to acknowledge standards and labels as market signals and factor social and environmental concerns into purchasing decisions

Moller ndash Maersk has it as an integrated and crucial part of their CSR policies and Simon Pickard highlighted how instrumental the-ories are no longer enough The concept of shared value is inescapable and it is what the lsquobusiness of businessrsquo in the early 21st centu-ry is really about

A second topic which also attracted a lot of attention was the importance of continuous education of both lsquothe convertedrsquo but also of opponents of CSR and people who are not aware of the importance of CSR and sustain-ability In-company learning was depicted as a crucial part of the development of CSR and sustainability however a physical change in the teaching settings is also required to meet the approaching environmental challenges

Centre Director Esben Rahbek Pedersen concluded the conference and the winners of the prize of 25000 DKK to participate in the IBECC case competition in San Diego in May 2013 were announced and the celebra-tion of cbsCSR ended with a reception

Thank you to all the speakers moderators and guests for an inspirational afternoon

By Elise Lind Jacobsen and Line Pedini Rasmussen cbsCSR

1Rasche A Gilbert DU and Schedel I (2013) Cross-Disciplinary Ethics Education in MBA Programs Rhetoric or Reality Academy of Management Learning and Education (forthcoming)

Three of the keynote speakers (from left) Professor Gail Whiteman from Rotterdam School of Management VP of Corporate Sustainability at Novo Nordisk Susanne Stormer and Sustaina-bility Professor at CBS Lucia Reisch

Simon Pickard Director General at ABIS

22 CSQ

UPDATE FROM

CBS GOES GREENThe Green Associate Program

2012 was an exciting year for CBS Goes Green with many great achievements One of the new initiatives that was launched in 2012 was the Green Associate Program Here CBS students were able to volunteer in a program to support sustainable behavior among students and staff at CBS More precisely 25 CBS stu-dents put in 30 hours of voluntary work to help with the planning and execution of Green Week - a week consisting of a lineup of successful companies shar-ing their sustainable initiatives and thoughts The overwhelming interest in sustainability and sustain-able business among the students has made it evi-dent that the Green Associate Program should con-tinue in 2013 We at CBS Goes Green look forward to this as well as all of the other initiatives we will be conducting in 2013

The following is an extract of an article that three of the associates wrote themselves This extract shows the associatesrsquo own experience working with CBS Goes Green

What does it mean to be an

associate with CBS Goes Green

In Week 39 CBS turned into a plethora of green initia-tives and events in order to make CBS reach its sustaina-bility goals for 2020 Both students and employees at CBS were asked to become a Green Ambassador to help CBS be smarter greener and better

But many of you may wonder how it is to be one of the people behind the scene As associates we have been help-ing out before and during Green Week in order to establish an event that would reach all corners of CBS This has re-quired both time and effort in order to make things work out but in the end there are also a lot of gains from being an associate

Firstly as an associate you get to expand your network You get to work with people from different studies countries and ages and you also get to talk to many different people while promoting

A bonus about being an associate is also that you get an official certificate which can be attached to your resume This shows that you have put an effort into making Green Week happen

Furthermore by being an associate you feel like you have a larger impact on making CBS a greener place Instead of being an ambassador and only doing the things you can do you get to be the person who raises awareness about sustainability You may influence people to make the right choices and it makes you feel good

Lastly it also gives you a feeling of responsibility because you work under an official part of CBS CBS Goes Green ndash a unit with a clear agenda and a clear vision

By Michael Nguyen Christian Charity and Christian-Philip Lundahl

Updates from partner organizations at CBS

23CSQ

International conference on sustainable biofuels presents latest research

By Barbara Louise Bech Department of Business and Politics CBS

EU Renewable Energy Directive

In 2009 the EU RED set a mandatory target for member states to use a minimum of 10 renewable energy sources in the transport sector by 2020 of which biofuels is expected to be the main contributor This is part of a policy to cut greenhouse gas emissions promote the green technology sector develop rural areas and reduce dependency on fos-sil fuels Due to increasing controversies claiming lack of sustainability in first generation biofuels based on food crops recently the EU pro-posed an amendment to the Directive limiting the share of first gener-ation biofuels to 5 of the targeted 10

The debate quickly zoomed in on the sustainability criteria as outlined in the EU RED drawing attention to the lack of social safeguards The general consensus is that the concept of sustainability is too narrow-ly defined Several case studies (Mozambique Brazil and Indonesia) show that basic labor and human rights of local populations are not protected by RED and the directive is more viewed as an environmen-tal safeguard This discussion raised questions in regard to the effects of RED globally (eg sustainable production in developing countries) and in this context whether EU legislation can have a lsquotrickle downrsquo effect on national standards of nation-states outside the EU In this re-gards one could ask if enforcement at the local level falls under the re-sponsibility of the EU but since first generation biofuels are produced outside the EU it is an important issue for European consumers ndash al-though interest is currently mainly driven by NGOs

On November 19-20 2012 the Copenhagen Biofuels Research Network (COBREN) held an international conference on sustainable biofuels inviting 30 research-ers from around the world to present and discuss their latest research During the two day conference focus was the sustainability criteria of the EU Renewable Energy Directive (RED) voluntary certification schemes and their impacts on sustainability and social safeguards in producer (developing) countries in particular and governance complexity of the biofuel system which has grown considerably over the past decade

Rough guide to biofuelsThere are two types of biofuels biodiesel and ethanol First generation biofuels (1G) are based on food crops and feed stocks such as palm oil soybean and rapeseed used for the production of biodiesel and sugarcane and corn for ethanol The produc-tion of biofuels increased heavily in the 2000s questioning the sustainability of 1G A number of issues have been claimed as key impediments to sustainable biofuel production such as deforestation competition with food production and increasing food prices loss of biodiversity lack of social and environmental safeguards and indirect land use change (ILUC) These contro-versies have led to a call for the promotion of second generation biofuels (2G) which are typically based on agricultural waste (eg straw) plants and forestry residues (also called lignocellu-losic biomassmaterials) However the immediate problem is that there is yet to be developed a market for 2G as they are more costly to produce (require longer and more complex production process)

CBS Sustainability Platform co-director and organizer of the COBREN conference Stefano Ponte doing a presentation

Event

24 CSQ

Voluntary certification schemes

In relation to how standards and certifications can impact sustainable biofuel production discussions pointed to the important difference be-tween mandatory and voluntary schemes As the controversy of sus-tainable biofuels in particular first generation is rolling out special attention has been given to biofuel production competing with food production ILUC value of emissions reduction and environmental and social issues This have off sprung a proliferation in private certifi-cations and during the conference it was discussed intensely whether these schemes have an actual effect on sustainability Depending on the point of view certifications can fill out the holes in legislation and act as a tool to force companies to comply with sustainability crite-ria However the development processes of new certifications may not be inclusive of relevant stakeholders (eg representatives of local populations) Additionally the nature and governance of the networks steering these processes is not always transparent and may favor one interest over the other This intense discussion led to the question of the purpose of certifications Can we use them for anything other than as a CSR PR tool as long as consumer awareness is as low as it is and how do the different regional drivers influence sustainability as a concept The answers to these questions are not easily found and it will be interesting to observe the future development and partnership between public and private sector

Governing the biofuel industry

Within the past decade biodiesel production has risen from below 30PJ in 2000 to 572PJ in 2009 globally and fuel ethanol production has increased from 340PJ to 1540 PJ respectively As the market expands more actors eg governments international organizations civil soci-ety and NGOs private sector networks and companies and profes-sions (biofuel experts and consultants) get involved and play different roles to promote their own agendas Being an emerging industry the structure of the biofuel system shows hybrid forms of governance with many actors As controversies of biofuelsrsquo sustainability develop more issues are added to the agenda giving life to more actors and interests in the governance structure Research shows a shift in power balance as private companies and NGOs increasingly push the agenda The dis-cussions during the conference centered on the complexity of sustain-ability issues calling for mixed governance responses and governance instruments such as standards and certifications which in return need to be followed up with endorsement instruments Given these com-plexities the question is whether the biofuel industry is too difficult to govern as long as the governing systems (for instance the EU) cannot accommodate expectations of all stakeholders

Indirect land use change (ILUC)ILUC is the unintended consequence in terms of more carbon emis-sions due to land use change around the world induced by the expan-sion of croplands for biofuel production When land that could be used to grow food and feed crops is used to grow energy crops this leads to existing agricultural production moving to another area or country where land is converted When this land is cleared and converted to cropland and because natural lands (rainforests and grasslands) store and sequester carbon in their soil and biomass a net increase in GHG emissions can occur Due to this change in the carbon stock of the soil and the biomass ILUC has consequences in the GHG balance of a biofuel Adding to this complexity models for ILUC calculations are not mainstreamed and thus difficult to assess internationally

25CSQ

Mellemfolkeligt Samvirke (MS) or Action Aid Denmark is a Danish NGO founded back in 1944 The

organizations key objective is to fight poverty by ensuring greater political influence for the worldrsquos poor and margin-alized at the local national and international levels MS works to bring about long-term development in the worldrsquos poorest countries focusing especially on education co-

operation and the ability to organize MS mainly works in Africa Read more about the organizationrsquos work

at wwwactionaiddk

Action Aid

A private sector view on the future of sustainable biofuels

By Barbara Louise Bech Department of Business and Politics CBS

nergy security continues to be an eminent concern in a world of finite resources For a long time biofuels have been viewed as

one of the key solutions to replace our dependency on fossil fuels and battle climate change but in recent years controversy has contested the sustainability of first generation biofuels based on food stock Issues such as lack of environmental safeguards causing loss of biodiversi-ty and deforestation and lack of social safeguards ensuring land and labor rights in producer (developing) countries have been claimed as key impediments to sustainable biofuel production Critical observers also argue that the emission savings of biofuel use in compar-ison to fossil fuels can become much smaller (or even disappear) when indirect land use change (ILUC) is included in the calculations Furthermore bi-omass production from food stock is argued to compete with food production and in-creasing food prices

The Danish NGO Action Aid has been engaged in biofuels since 2008 and is par-ticularly involved in protecting womenrsquos rights and preventing land grabs in de-veloping countries ldquoWe are very concerned about land use when it comes to first genera-tion biofuels This relates both to the people who are dependent on the land and to food security We rarely see good combinations where the local populationrsquos needs are taken into consideration The energy crops grown on the local farmerrsquos land donrsquot benefit him and local consumption is essential for developmentrdquo explains Kirsten Hjoslashrnholm Soslashrensen political advisor Action Aid Denmark

It is therefore believed by many that second generation biofuels is the only way forward to avoid competition with food and avert ILUC Next generation biofuels is based on lignocellulosic biomass such as agricultural and household waste and forest residues The Biorefining Alliance represents a cluster of leading Danish companies within the renewable energy sector with an ambition to promote second gener-

ation biofuels and make Denmark a world leader of technology and bi-ofuel productionldquoDenmark has very strong competencies in green tech and as a society we have put a lot of money in its development This is go-ing to be a huge deal globally so we are asking whether Denmark wants to be a customer or a producer What we are working for is of course that we become a lead exporter of technology but also that Denmark produces second generation biofuels commercially Even though we are a small country we cannot settle on selling know-how Denmark also needs to have some industrial productionrdquo says Anne Grete Holmsgaard di-

rector of Biorefining Alliance In her view Denmark needs to keep a firm grip on developing innovation or it will slowly but

steadily move out of the country In this regard she views sustainability criteria for biofuels as an in-

novator and not a hindrance

The Sustainable Biofuels Network (SBN) is another cluster of private companies trying to facilitate the transition from fossil fuels to biofuels in the transport sector For the aviation industry biofuels are considered

to be the only alternative to fossil fuels and the industry firmly believes that biofuels will

survive according to Robert Arendal chairman of SBN ldquoThe aviation industry has set very clear

guidelines for the use of biofuels We are not going to use food based biofuels and we will minimize the use of fresh

water By 2050 our target is to use 50 biofuels in the global aviation so we really need to move fastrdquo he explains adding that living up to sustainability criteria includes being careful about where biofuels are produced ldquoBut it should be produced all over the world and close to the 1600 airports worldwide that account for 95 of all aviationrdquo

he technology for second generation biofuels is already here but the problem is that production costs are too high and there is no market As long as prices are not competitive with conventional fuels it will be difficult to move forward ldquoOne might ask why there is no market The customers are certainly there so if I was in the business of producing

E

As part of the COBREN international conference on sustainable biofuels private sector civil society and academia were invited to give their views on sustainable biofuels at a roundtable discussion at an open public seminar held at DIIS November 19 2012

Event

26 CSQ

SBN is a ldquobreeding groundrdquo and ldquoknowledge centerrdquo for the biofu-els industry where synergies are created between all parties within

the biofuels sector SBN focuses in promoting supporting and enabling the commercial development and use of clean and sustainable biofuels for Heavy Road Transportation Shipping and Aviation Emphasis is put on the importance of global standards for biofuels with local as well as international institutions and decision makers to encourage con-

structive guidelines and rules for the development of biofuels SBN adheres to EUrsquos sustainability criteria SBN is a non-profit asso-

ciation established in 2008 Visit their website for more info at wwwsustainablebiofulsdk

Sustainable Biofuels Network(SBN)

The Biorefining Alliance (BA) was founded December 2011 by DONG Energy Novozymes Haldor Topsoslashe and the

Danish Agriculture and Food Council and is a three-year project to politically promote Denmarkrsquos position in the entire value chain from residues to bio-based products The Alliance has set forth a number of recommendations to achieve a sustainable Danish bio-economy Among other these include (i) that all organic

waste be considered a resource (high-value recycling and storable energy) (ii) reducing the cost of manufacturing 2G

bioethanol and (iii) contemplating the establishment of a national center for sustainable materials

Biorefining Alliance

second generation biofuels I would get started right awayrdquo says Robert Arendal The Biorefining Alliance is working on lowering the costs and recommends a stronger regulatory framework with binding targets as it has been done for the wind industry ldquoThere already is a market for first generation biodiesel which is the least sustainable biofuel We need to make a market for second generation biofuels and we know that binding targets work I donrsquot think it is possible to create a market for the lsquogreen consumerrsquo as you have one for organic food products but I believe that a niche market for HRT (Heavy Road Transport red) such as public bus transport could be a supplementrdquo concludes Anne Grete Holmsgaard

How the future for sustainable biofuels will shape depends on political will to create a market for second generation and the ability of private sector to innovate and bring prices down Oil production is claimed by some to already have peaked and exploring new geographical areas for extraction could be as costly as kick-starting the market for second generation biofuels although much less sustainable As the American ecologist and environmentalist Bill McKibben wrote in his book ldquoDeep Economyrdquo back in 2007

Even before we run out of oil wersquore running out of planetrdquoldquo Bill McKibben

27CSQ

The Transparency-Sustainability NexusA workshop on the practices meanings and tensions of organiza-

tional transparency

n December 5 2012 the Department of Intercultural Communication and Management (ICM) hosted an in-

ternational workshop supported by CBS Sustainability Plat-form and ICM The workshop was organized by Oana Brindusa Albu Mikkel Flyverbom and Hans Krause Hansen respectively PhD Fellow and Associate Professors at ICM The idea of the workshop was spurred by the observation that while ideals of transparency like lsquoopennessrsquo lsquodisclosurersquo and lsquoreportingrsquo are pro-liferating these years the actual construction of transparency within and across organizations is poorly understood Most re-search on transparency is highly normative if not celebratory just as popular discourse about transparency not least in the areas of sustainability and corporate social responsibility is obsessed with ideals of accountability performance and effi-ciency and pervaded by an optimism currently pushed to its extreme with the explosion of new media technologies

But the truth is that we generally know very little about the implications of ideals of transparency when translated into practice in specific issue areas and organizational contexts Importantly each of the contributions to this workshop clear-ly suggested that the contemporary politics of transparency is much more complex contradictory and dynamic than tradi-tionally recognized All papers examined various aspects of the contemporary obsession with transparency and specifically the increasing use of disclosure techniques within and around or-ganizations the rationales or myths underpinning these meas-ures their intended and unintended consequences including implications for identity-making management and govern-ance practices

Clare Birchall initiated the workshop with a paper titled lsquoThe Cultural Politics of Disclosurersquo highlighting how transparency has been positioned as a superior form of disclosure in popular management and organizational literatures and in policy docu-ments In her account the growing preference for transparency is a consequence not only of the positive qualities seen to be intrinsic to transparency itself but also a response to the per-ceived negative characteristics of other forms of disclosure such as gossip scandal and rumor Lars Thoslashger Christensen (with co-author Joep Cornelissen) then analyzed transparency as one of the foundational myths of modernity myths understood here as descriptions of the world in a narrative form which seeks to produce meaning and direction for a community and its members Such lsquoMyths of Transparencyrsquo sustain numerous organizational practices ndash including openness information provision and auditing But as argued by the authors there are conflicting evidence regarding the capacity of such practices to create insights and understandingThat aspirations and techniques of transparency can have seri-ous repercussions was demonstrated by Peter Skaeligrbaeligk (with co-author Mark Christensen) in the paper entitled lsquoAuditing and the purification of blamersquo which analyzed how auditing auditing practices and institutional entities including the po-liticized environments surrounding them are mobilized and participate in blame games and allocation In his paper titled lsquoQuantification transparency and the costs of reassurancersquo Henrik Vollmer analyzed various dimensions of the role of nu-merical records and signaling in generating transparency trust and mistrust

By Hans Krause Hansen Department of Intercultural Communication amp Management

Event

O

28 CSQ

Some of these aspects were also touched upon in the paper lsquoDisrupted Disclosures The Politics of Visibility and Surveil-lance in the Extractive Industriesrsquo by Hans Krause Hansen (with co-author Julie Uldam) which explored the wider field of visibility and surveillance in which contemporary transpar-ency policies are unfolding with examples from the extractive industries Oana Brindusa Albu in her lsquoTransparency and the organizational self everyday politics of identification in Cooperativesrsquo examined the paradoxical effects of values and practices of transparency on collective identity formation pro-cesses drawing upon her ongoing multi-sited fieldwork in co-operatives Under the heading of lsquoThe Improbability of Secrecyrsquo Mark Fenster analyzed the intersections of secrecy and trans-parency with examples from the US government and its efforts to control information which according to the author does not necessarily stop the flow of information Finally Mikkel Fly-verbom and Christina Garsten examined lsquoThe sway of (big) data ndash calculations and advocacy in the name of transparencyrsquo focusing on the operations of data-based forms of corporate lsquotransparency evangelismrsquo and advocacy through revelation including examples from Center for Global Development and Google

In all the workshop was highly successful in investigating not only the historical and mythical foundations of transparency but also the different practices and forms of transparency that currently shape organizations and a wide variety of issue areas It also provided a reminder of the usefulness of investigating a concept of transparency in relationship to a host of other con-cepts such as secrecy myth gossip blame surveillance visi-bility identity information and knowledge The organizers of the workshop wish to thank all workshop participants for their valuable contributions and the CBS Sustainability Platform and ICM for their support

Hans Krause Hansen

Mikkel Flyverbom

Oana Brindusa Albu

ASSOCIATE PROFESSORPHD (ICM)

ASSOCIATE PROFESSORPHD (ICM)

PHD FELLOW (ICM)

29CSQ

Louise Lyngfeldt Gorm Hansen is a PhD Fellow at the Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) She has a back-ground in Chinese Studies from Copenhagen University (BA) the Asian Studies Program at CBS (BSc) and in International Business Stud-ies and Sustainable Business (MSc) from CBS

The aim of her cross-disciplinary PhD project is to explore how the Chinese hydropower sector works with environmental sustainability and more particularly how the concept is understood and performed in the planning phase of a major dam project in the southwestern Chinese province of Yunnan

The aim of the project is to gain a deeper under-standing of how Chinese firms in the renewable energy sector such as hydropower companies understand and value sustainability as well as how such firms tackle the increasing pressure to deliver socially and environmentally balanced solutions to one of Chinarsquos major challenges lowering CO2 emissions in a time with rapidly rising water and energy demands Theoretically the project draws on - and aims to contribute to ndash a combination of Asian Studies and Science and Technology Studies

PHD FocusLouise Lyngfeldt Gorm Hansen

HYDROPOWER

SUSTAINABILITY

30 CSQ

HYDROPOWER

SUSTAINABILITY IN

CHINAy PhD project combines two of my main research interests China and

environmental sustainability I have studied China for a number of years mainly because of an interest in how the Chinese view sus-tainable development So since finishing my masters I have known that I wanted to study how China plan to tackle a sustainable tran-sition in the years to come I saw my chance when CBS announced PhD scholarships in

DanishEuropean-Chinese social science research in collaboration with the newly es-tablished Sino-Danish Center for Education and Research (SDC) and started my PhD in October 2011My PhD project focuses on the Chinese energy sector more specifically the rapidly growing part of the energy sector engaged in renewable energy Here I examine Chinarsquos second largest source of electricity gene-

eration hydropower In recent years China has become increasingly focused on reduc-ing CO2 emissions While some countries such as the US and Australia are decommis-sioning hydropower dams China is looking to large-scale hydropower construction as one of the solutions to a future clean energy supply This means that hydropower devel-opment plays a central role in Chinarsquos sus-tainable transition

However utilization of hydropower is con-troversial not least in China and has met increasing resistance in recent years particu-larly from Chinese and international NGOs the media as well as the scientific commu-nity Critique is most often focused on how or if social and environmental sustainability can be ensured in such large scale projects as the social and environmental impacts of large scale hydropower development are very complex and difficult to measure More gen-erally the viability of relying on hydropow-er as a future source of energy is also being questioned One of the major concerns here is the overarching issue of climate change ie glaciers shrinking and yearly water runoff decreasing This means less stable water flow for hydropower and less water for other pur-poses such as agriculture water supply for down-stream countries etc

By Louise Lyngfeldt Gorm Hansen Asia Research Centre Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) ndash sinodanishcenterdk

M

Picture from SinoHydro promotion material 2011

Research

31CSQ

In contrast to for example the wind power sector in China in which many foreign com-panies have invested the hydropower sector is dominated by a few large state-owned en-terprises Our knowledge of Chinese state-owned enterprises is still limited and there-fore my PhD project is also part of a larger research project at the Asia Research Centre with focus on Chinese state-owned enter-prises and the reform of the public sector in China

In combining these interests my PhD exam-ines how Chinese state-owned enterprises in the hydropower sector tackle the demand to expand hydropower development to help reduce Chinarsquos CO2 emissions while be-ing under increasing pressure to deliver on sustainability principles in the planning and execution of large scale hydropower pro-jects The pressure comes mainly from NGO organizations the media and the scientific community both at home and from abroad I am conducting a case study focused on a specific river in south-western China which has ndash until now ndash not been fully developed for hydropower and the plans for addition-al hydropower dams on the river are still undergoing assessments The project has continually stalled due to disagreements between Chinese government officials at all levels NGOs the media the increasingly deregulated but still state-owned Chinese hydropower companies and the scientif-ic community However the project has very recently been reopened and so will go through another round of assessments in the near future The case is an excellent example of the complexity of hydropower develop-ment decisions in China but it also highlights some of the social and environmental conse-quences of the global push to decrease CO2 emissions

China plays and will continue to play an increasingly important role globally in the years to come However the country also fac-es enormous challenges - not least regarding the environment These challenges also affect economies in Western Europe - for better or worse My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective so

that we here in Europe and in Denmark can more knowledgably and actively engage with China to help solve some of these difficult challenges that eventually affect us all In do-ing this I contribute to gain a better under-standing of the Chinese perspective on envi-ronmental sustainability that can be of use to companies wanting to engage in the Chinese renewable energy sector

My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective rdquoldquo

Picture of the case-river taken by the author in 2012

32 CSQ

FROM BLUEPRINT TO PRACTICE

ENERGY EFFICIENT CONSTRUCTION

By postdoc researcher Satu Reijonen Department of Organization CBS

In the EU almost one third of CO2 emis-sions are attributed to energy used in the construction and use of buildings (FIEC

2007) It is therefore not surprising that the construction sector has recently been subjected to a substantial amount of policy measures to combat its negative effects on climate change In Denmark the state has posed new thresholds for the energy efficien-cy of new buildings including a plan for con-tinuous improvement in the area This far the industry has responded well to these stricter performance requirements In the future re-quirements will rise to levels that are not that easily achieved in the coming years build-ings will have to use 25 less energy than in year 2008 How can these ambitious goals become business as usual

One of the most discussed ways besides add-on technologies such as windmills and solar panels to enhance the energy efficiency of a building is through an energy efficient phys-ical design In practice this means reduction of energy used for heating cooling down and lighting of the building through an optimal orientation and dimensioning of the build-ing

Integrated energy design contrary to add-on technologies can be achieved on a rath-er modest additional budget This should be good news for the sector that today is eco-nomically pressed Indeed today many low energy building projects claim to use the in-tegrated energy design method (IED) when seeking to meet the most ambitious energy related goals In this commentary I wish to discuss some challenges related to the imple-mentation of this design tool

The integrated energy design method sug-gests that one of the main problems in not achieving energy efficiency is that energy related concerns become integrated into the design process too late The method consists of two elements the first of which addresses the need to bring in energy related knowl-edge throughout the design process It sug-gests that design teams ought to be multidis-ciplinary and that architects engineers and experts should work together either co-lo-cated or in a series of workshops Further-more it suggests systematizing energy quali-ty follow-ups into the design process This is all very relevant and inspiring

Oddly enough a closer look on the actual design practices reveals that few seem to ac-tually follow the method of integrated energy design to the point This poses an interest-ing question about the challenges related to the use of such management technologies as vehicles for increased energy efficiency in construction Maybe it is about time practi-tioners and researchers ask themselves what are the boundaries of and challenges related to the use of these tools ndash and what else is required for organizing for more energy effi-cient building design processes

A revolution of relations

Integrated energy design points to the need to bring energy related expertise into the de-sign process at an earlier point In order to achieve this cooperative practices between different professional groups are advocated for Historically energy experts have most-ly been used to respond to rather advanced architectural plans Shared workshops and co-localization suggest a change in these business as usual relations But are they pos-sible and what type of changes do they ac-tually imply in order to function as wished

Research

33CSQ

Satu Reijonen is postdoctoral scholar at the Department of Organization at CBS In her on-going research project she investigates how architects and energy engineers two different profes-sions cooperate and coordinate their work regarding energy related ques-tions in construction design The ways in which relations between and roles of these professions become consti-tuted through socio-material arrange-ments are a central topics in her work Besides studies of work Satu has con-ducted research on environmentally friendly products and markets

ABOUT SATU RAIJONEN

The initiation of this type of new working forms is certainly beneficial for energy effi-cient design However for several reasons they are more difficult to make work than one would assume While it may sound rea-sonable it is after all a tall order Integrating energy related practices into an environment where different visions professions and in-terests meet and the divide between what one profession does is clearly and historically demarcated is demanding While architects need to make room for the intervention of energy experts into the creative work energy experts have to become capable of working creatively and relate to and follow the visual and aesthetic cues from architects In order to work these kind of changes in the profes-sional roles and relations have to resonate with the skills and visions of individual work-ers not only management level design strat-egies It is not surprising that organizational change scholars remind us of the possibility of loose coupling from the strategies placed at the management level (March 1981) What integrated energy design suggests is a kind of a revolution in the ways in which both the architects and the energy engineers envision their role and space of mobility

Linear tools in an unlinear design process

Integrated energy design suggests that the energy performance of the emerging build-ing design be followed up at certain points during the design process The method de-picts a rather mechanistic and linear under-standing of a design process consisting of phases within which iteration may occur While energy related issues may be dis-cussed as quality goals during these phases the method places a lot of emphasis on the check ups performed in the transition from one phase to another Design processes how-ever can also be characterized in a different manner unlinear exploratory and whirl wind type of practices where clear cut phases hardly exist (Akrich 1992 Van de Ven et al 1999) This also applies to the architectural design processes where the object of the de-sign is emergent (Yaneva 2009) This entails that the product the building may change in unexpected ways during any day of the de-sign process If this alternative description of the design processes is viable delegating energy related issues to some predetermined check up episodes may strike a false accord and indeed be contradictory with the aim of enhancing coordination and cooperation between professional groups What happens in between the predetermined checkups may very well be where the energy efficiency of the building becomes configured and where the intervention from the energy experts

would come most needed Perhaps this is why the best performing projects do not blindly follow the steps of the IED method Check ups however and no doubt play a role in verifying and making visible the energy performance for partners outside the design team

Integrated energy design as many other sus-tainability standards and guidelines make visible systematize and legitimize the ex-istence of environmental management and sustainability issues in organizations and work processes In this such way tools create awareness and legitimacy for environmental and sustainability issues The integrated en-ergy design method also suggests a possible way of thinking about what type of design practice might help us to achieve the stricter energy requirements of the future It howev-er falls short in becoming the change agent it suggests This is hardly surprising as a meth-od or a standard of any kind should only be seen as a possibility or as an opening for an inquiry of what the practice could be about Reconfiguring a well established practice is hard work and it would be foolish to trust that a design method would achieve it by itself What the method does is to alert us of the more profound changes in the pro-fessional roles and relations that is needed in order to enable the change However the method due to its rather mechanical under-standing of the design process may come to work against its own ambition of integrating energy issues into the design work In its quest for integration the method defines at which points in time the architectural and the engineering project has to be checked for its energy performance This approach may lead to bringing in energy related concerns in some artificially created points in a design process which may additionally compart-mentalize energy related issues from where the design really happens

Integrated energy design as many other sustainability standards and guidelines make visible systematize and legitimize the existence of environmental management and sustainability issues in organizations and work pro-cessesrdquo

ldquoLiteratureAkrich M (1992) The De-Scription of Technical Objects in Shaping Technology Building Society Studies in Soci-otechnical Change eds WE Bijker and J Law The MIT Press Cambridge Massachusetts pp 205-224

FIEC 2007 The impacts of buildings on climate change httpwwwbuildingsplatformeuepbd_publicationdocFIEC_Memo_p2919pdf on 1222008

March JG (1981) Footnotes to Organizational Change Administrative Science Quarterly vol 26 No 4 pp 563-577

Van de Ven A D Polley R Garud and SVenkataraman (1999) The innovation Journey Oxford Oxford Univer-sity Press

Yaneva A (2009) The making of a building A pragmatist approach to Architecture Bern Peter Lang

More about integrated energy design(IED)

httpwwwintendesigncomosloIntendnsfAttachmentsGuideline_Version_2pdf$FILEGuideline_Version_2pdf

34 CSQ

The climate challenge in

shipping

ldquoGlobal shipping faces two major challenges both of which are caused by its reliance on fossil fuelsrdquo

By Reneacute Taudal Poulsen Department of Innovation amp Organizational Economics

RENEacute TAUDAL POULSEN

ASSOCIATE PROFESSOR DEPARTMENT

OF INNOVATION AND ORGANIZATIONAL

ECONOMICS COPENHAGEN BUSINESS

SCHOOL

orecasts show that the shipping indus-tryrsquos CO2 emissions will most likely continue to rise in the next two to

three decades as demand for world sea-borne trade will expand At present global shipping accounts for approximately 33 per cent of global CO2 emissions but this share will most probably increase in the coming years if many onshore industries succeed in their aims of reducing emission levels

At the same time rapidly rising fuel costs put heavy strain on shipping company budg-ets Historically and until very recently fuel costs were only a minor concern for ship-ping companies but now they often exceed 60 per cent of variable operational costs Fuel savings made through energy efficiency improvements thus represent a win-win sce-nario for the shipping industry and for so-ciety at large They simply make good sense for everyone

Despite the strong incentives for fuel sav-ings numerous studies have demonstrated that shipping fails to implement cost-ef-fective measures to reduce fuel consump-tion Fuel-saving technologies are readily available in the market and in many cases pay-back periods are very short (less than a year) Changes in operational habits which require few if any investments also hold a significant potential for fuel savings

Global shipping thus holds several classic examples of energy-efficiency gaps Gaps occur wherever cost-effective measures to improve energy efficiency fail to materialize The causes for energy efficiency gaps have been a favourite research topic within the field of energy economics for decades and economists sociologists and political scien-tists have been able to identify several means to bridge the gaps However within the mar-itime domain energy efficiency gaps and the climate challenge remain neglected issues Legal barriers

Shipsrsquo fuel consumption rises steeply with speed Hence slow-steaming or just minor speed reductions can lower consumption and emission levels significantly Since oil prices started to rise rapidly a few years ago shipping companies have indeed resorted to various slow-steaming practices and com-panies which succeed in this regard have been able to gain competitive advantages In other words actors in the industry are trying to bridge the energy efficiency gap However and in spite of the strong price signals from the rising fuel prices a potential for fuel sav-ing through slow steaming still remains

FNew CBS research project

A new three year research project at CBS under-

taken by Reneacute Taudal Poulsen for the Department

of Innovation and Organizational Economics will

examine the climate issues bringing insights from

energy economics and innovation management

into the field of shipping economics The project

which is financed by The Danish Maritime Fund

runs from 2012 to 2015 The project asks why en-

ergy efficiency gaps continue to occur in shipping

and how shipping companies and the maritime

industry at large can use innovative business

models and process innovation to turn the climate

challenge and the rising fuel costs into a business

opportunity Energy efficiency gaps occur both

in daily operations and when investments in new

vessels are made This article will briefly present

two examples of energy efficiency gaps from

the operational level and some of the preliminary

findings of the project

References

Jaffe AB and RN Stavins 1994 lsquoThe energy efficiency gap What does it meanrsquo Energy Policy 22 (110) 804-10IMO 2009 Second IMO GHG Study 2009 London International Maritime OrganizationMoriarty P amp D Honnery 2012 lsquoEnergy efficiency Lessons from transportrsquo Energy Policy 46 1ndash3Poulsen Reneacute Taudal 2012 lsquoEmissions and energy efficiency - the twin challenges for shippingrsquo Mercator Maritime Innovation Research and Education MarchJune 447-454

Reneacute Taudal Poulsen is Associate Professor at the Department of Innovation and Organizational Eco-nomics at CBS He is also affliated with the Centre for Shipping Economics and Innovation at CBS Reneacute Taudal Poulsen holds a PhD degree in marine environmental history from the University of Southern Denmark and he has worked within the field of maritime business studies for the last seven years He has published in such journals as Fisheries Research Business History and Scandinavian Economic History Review

His current research intersts concern the environmen-tal challenges faced by the global shipping industry and business model innovation in the maritime domain

Research

35CSQ

It is clear that shipping companies cannot fully bridge the energy efficiency gap alone In fact factors beyond the control of in-dividual shipping companies and various structural or legal barriers prevent shipping from fully realizing the slow steaming po-tential

Port congestion remains a world-wide prob-lem and causes ships to spend remarkably long periods inactive Despite the financial crisis and the large drop in shipping freight markets after 2008 many loaded vessels sit at anchor outside ports waiting for berths In some cases they wait for a few hours In other cases for days weeks or even months Instead of waiting the ships could have re-duced speeds and saved fuel And the de-livery and the loading of the cargo in port would not have been delayed in any way However in many cases shipping companies or ship operators cannot reduce speed in spite of port congestion

Educational barriers

Energy efficiency gaps in shipping are also evident when the fuel consumption levels of sister ships are compared Even though the vessels are identical and operate in the same waters studies have shown that their fuel consumption may differ by several Decisions made by the crews onboard and by managers in the onshore organizations clearly influence the level of fuel consump-tion For instance if a captain selects only very small course deviation margins when coding the autopilot of the ship the shiprsquos rudder will move frequently to keep the ship on the exact course all the time This will slow down the ship and cause higher fuel consumption than if the captain had allowed for slightly wider margins and the wider margins would not have any effect on the safety of the ship Decisions made by the commercial depart-ments eg on how to crew the vessels how to monitor vessel fuel consumption or which new equipment to install onboard may also

have a large impact on fuel efficiency and emission levels If shipping company man-agers can nurture a fuel saving culture this could potentially make a difference Since 2007 or 2008 shipping companies have in-deed started to facilitate such organizational changes but educational barriers remain a problemOnshore truck drivers are now offered fuel saving courses but fuel-saving is not a major part of the traditional curriculum in nautical schools or in the commercial education of shipping trainees For good reasons the nau-tical educations have focused on maritime safety but this has caused them to neglect the climate challenge in shipping and the is-sue of fuel saving In fact no single nauticaltext book on maritime fuel savings has yet been published and according to teachers and students in the nautical schools this serves as an educational barrier to ener-gy-efficiency improvements The technical level of education for commercial employees in shipping companies may also hinder im-provements in energy-efficiency Some com-

mercial shipping employees may not have sufficient training to fully see and acknowl-edge the consequences of their decisions on fuel consumption In short it seems that fuel awareness and the educational systems have responded more slowly to the climate chal-lenge than the rise in fuel prices may other-wise suggest

For shipping to bridge energy-efficiency gaps education ndash both nautical and com-mercial ones ndash clearly is an area to set in Here the potential for innovative solutions is both evident and pertinent Changing educational systems and awareness is no easy task bearing in mind the global nature of the shipping industry and international crewing of the world fleet It is clear howev-er that educational upgrading is necessary for shipping to effectively address the cli-mate challenge effectively

Charter parties between ship-operators and shippers state a specific time of arrival for the vessel and in order to avoid claims ships proceed to port accordingly regardless of berth availability Experiments with new more flexible charter parties which allow for slow steaming in case of port congestion have recently been made Shipping compa-nies have generally been enthusiastic about this flexibility but often shippers remain skeptical Lack of trust between shippers which need the loading of their cargoes as soon as possible and shipping companies may be a cause for this discrepancy Even in cases where the savings made from slow-steaming are split between shipping companies and shippers shippers have re-mained skeptical Port queuing systems may have a role to play here

Many ports including some of the major container iron ore coal and grain ports serve ships on ldquofirst-come first-servedrdquo ba-sis Ships only receive their ldquoticketrdquo in the

waiting line upon their arrival at the port Again lack of trust between the ship-oper-ators shippers and the port authorities may explain this phenomenon Moreover port authorities currently do not have incentives to change queuing practices because they cannot gain a share in the fuel savings made from slow-steaming

The problem is particularly strong in the major tramp shipping segments of tanker and dry cargo shipping where vessels act as ldquotaxis of the seardquo serving numerous shippers and rarely calling at the same ports If the fleet from a shipping company only calls at a particular port once a year and the compa-ny has very short-term relations to individ-ual shippers building trustful relationships between the parties remains a major chal-lenge Solving this problem and realizing the full potential of slow steaming will require systemic innovation in shipping and port systems and further studies are required to identify possible solutions

36 CSQ

The Wind turbine industry -

Emerging global innovation networks in Europe and China

The wind turbine industry has developed into a global network encompassing a large amount of diverse actors within innovation production and installation of wind turbines across the globe

By Stine Haakonsson and Julia Kirch Hollitsch Department of Business amp Politics CBS

market for wind energy Chinese actors have turned China as a location into another im-portant lsquohubrsquo in this network This has led to new forms of innovation collaborations between European and Chinese actors The result has been a complete re-configuration of the industry over the past decade In the International Business and Economic Geog-raphy literatures the development of global production networks in which lead-firms be-come orchestrators of dispersed production

enmark has traditionally played a key role as an lsquoinnovation hubrsquo and com-

panies in Denmark remain among the lead firms within the wind turbine industry Re-cently the industry has reorganized from being located predominantly in the Triad regions (mainly in Europe and the US) to becoming a globally dispersed industry This development can partly be explained by de-velopments in international and national politics Due to the growth of the Chinese

activities in globalized value chains is well established theoretically as well as empiri-cally In the globalization process lead firms relocate production activities to low cost lo-cations by off-shoring and through vertical disintegration and outsourcing to specialized suppliers Producers of wind turbines are no exception However until recently the mar-ket and innovation activities remained con-centrated in Europe and US

With the recent focus on global politics for a post-carbon society the market for wind tur-bines has experienced an immense growth and a high degree of market globalization New locations have developed into main markets One of these is China which since 2010 has been the largest market for wind turbines in the world (in capacity installed) The globalization process in the wind tur-bine can be explained by a combination of offshoring of production by European lead firms mainly through foreign direct invest-ment and establishment of domestic lead firms in emerging markets In 2010 there were four Chinese-owned companies among the top-10 producers of wind turbines as compared to 2003 where all firms on this list were from Europe and the US

D

Julia Kirch Hollitsch

Stine Haakonsson

Stine Haakonsson and Julia Kirch Hollitsch from Depart-

ment of Business and Politics CBS are engaged in the

Sino-Danish Center for Research and Education (SDC)

project on Wind Energy in China Both research on the

current restructuring of industries and firms at the glob-

al level (outsourcing off shoring global value chains)

In particular their research is on 1) the restructuring of

innovation and RampD activities into global innovation net-

works(GINs)2)thechangingroleofemergingmarkets

(ChinaIndiaBrazilSouthAfrica)intheseemergingGINs

and 3) technology transfer and capability building related

to renewable energy

Research

37CSQ

by adapting their products to the Chinese market and through cost-out development activities in the new locations primarily China

As a result the wind industry is today highly knowledge-intensive and internationalized Due to increased attention and investments in sustainable transition policies and car-bon-reducing technology China has over the past decade developed into a high prior-ity investment area for wind turbines Also Chinese companies are upgrading technol-ogy and innovation from the global firms through integration into GINs Moreover the production and innovation networks for wind energy become highly complex and consist of many different suppliers of com-ponents (blades gear boxes control systems bearings) resulting in a variety of network linkages among suppliers of different com-ponents and the wind turbine producers

From our empirical data including more than 40 in-depth interviews collected in 2011 and 2012 in the wind turbines indus-tries in China and Denmark we have identi-fied some very interesting patterns We have identified very different characteristics of the GINs established by the Chinese wind tur-bine industry and the European wind tur

Emerging Global Innovation Networks

Innovation processes are also moving be-yond the boundaries of individual compa-nies and national innovation systems Firms engage in cross-border innovation networks spanning different innovation systems which may be national regional or sectorial in or-der to stay competitive in the global econ-omy Chinese lead firms are entering this scene too The result is globally organized networks of interconnected and integrated functions and operations by firms and non-firm organizations engaged in the develop-ment and diffusion of innovations so-called Global Innovation Networks (GINs) Lead firms internationalize innovation through strategies of exploitation global generation of innovation and global techno-scientific collaborations Chinese wind turbine pro-ducers ndash acknowledging their resource and capability deficiency ndash pursue strategies of innovation network integration through strategies of global generation of innovation These firms link up with specialized Europe-an actors such as core component suppliers through partnerships and networks in or-der to tap into the technology of firms from developed countries and upgrade Mean-while European companies internationalize through exploitation strategies for example

bine industry Although Danish and Chinese actors are experiencing a re-organization of activities and establish networks and globa-linnovation strategies the result is very dif-ferent

The industry from Europe and US

The industry from Europe and the US hosts the lead firms in terms of core technology de-velopment Denmark has traditionally played a key role as lsquoinnovation hubrsquo in technology development and global lead firms such as Vestas and Siemens Windpower (previously Danish lsquoBonusrsquo) took its start already in the 1970s The core competences of the Danish wind turbine innovation system are based on large testing facilities and long track records mainly due to the long time-line of experi-ence The wind industry goes 40 years back and therefore Denmark has a good knowl-edge pool within establishing wind farms (aerodynamics minimizing power loss in energy transmission wind mapping and other installation-related technologies)

38 CSQ

that will make it possible to finance the pro-jects ldquoFrom then on our wind turbine pro-jects developed very fastrdquo(Interview Wind Engineer Chinese Academy of Sciences) Thus this law was a milestone for elevating renewables to a strategic position in China or as expressed by a European lead-firm ldquoWhat drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick offrdquo

Until the turn of the millennium Chinarsquos wind energy industry was largely built on donors acquisition of finished wind turbines and licensed technology from European companies spread on a very small scale into the local industry during the mid 1990s Chi-nese wind turbine technology has evolved from imitation reverse engineering and licensing in the 1980-90s combined with assistance from foreign consultants One example is how DANIDA funded a project in 1986 for Goldwind in Xinjiang which imported 13 units of 150 kW lsquoBonusrsquo (now Siemens Wind Power) turbines

To get beyond the stage of pure imitation several policies have been introduced with the intent to upgrade Chinese manufacturers to obtain indigenous innovative capabilities Policy programs were introduced to enhance Chinese companies to develop wind energy subsidizing wind energy RampD expenditures at varied levels over time establishing a re-newable energy fund and through the ldquo863 Wind Programrdquo under the Tenth Five-Year Plan (2001-2005) Local content require-ments were put in place in which develop-ers of wind energy projects were required to source 70 pct of the content in China These policies ndash which essentially forced foreign manufacturers wishing to sell wind turbines to the Chinese market to establish China-based manufacturing facilities ndash were only removed recently (in 2009) One result was that the foreign companies had to up-grade local suppliers of components

Due to the technological complexity many European (and hereby also the Danish) firms are vertically integrated and have most com-ponents produced in-house or with regular specialized suppliers According to these companies the different parts need to be well adjusted to each other to some extent even co-developed in order to enhance effi-ciency and the lifetime of the wind turbine Likewise the European industry has expe-rienced a concentration of actors with the result that there are only relatively few but large manufacturers in Europe (the larg-est ones are Vestas Siemens Gamesa and Enercon) Together these four companies accounted for about 35 of the global mar-ket in 2010 By seeing the wind turbine as an integrated system these lead firms aim at producing lsquothe Rolls Roycersquo model wind turbines These are strong in terms of qual-ity and standards but generally expensive These firms learn cost-out techniques from their engagement with partners in China

The Chinese Wind Turbine Industry

Today the Chinese wind turbine industry is overly competitive It entails more than 80 wind turbine manufacturers and the Chi-nese market boasts the highest growth rates internationally with an average growth rate of 968 percentages annually in the last three years Several large domestic Chinese wind turbine manufacturers have emerged within the last decade Sinovel and Goldwind take the largest share followed by United Pow-er and Ming Yang just to mention some of them As of the end of 2010 these four were A major driver for the development of the Chinese wind energy market has been the establishment of an institutional context as a comprehensive concerted policy frame-work addressing the development of renewa-ble energies This change in the institutional context was first reflected clearly in the 11th 5-year-plan (2006-2010) which explicitly linked environmental sustainability to the key goal of establishing what was called a harmonious socialist society signalling a socially environmentally and economically sustainable economy With the Renewable Energy Law from 2005 the Chinese wind energy industry really took off as it explicitly seeks to ensure that renewable energy pro-jects have an outlet for their output at prices

Technical barriers and the role of GINs for a post-carbon society

Despite high ambitions in terms of devel-oping innovative capabilities Chinese pro-ducers still produce almost exclusively for the Chinese market However Chinese wind turbine manufacturers have recently started an internationalisation process and some are approaching international markets Not least for tapping into new knowledge

Europe (and Denmark in particular) is per-ceived as a main location from which the Chinese companies can learn more A cou-ple of Chinese companies have already set up RampD centres in Denmark European firms have also initiated RampD centres in new lo-cations primarily China and India In other words GINs can be identified

Our research also points towards important barriers for GINs in the wind turbine in-dustry and for approaching a post-carbon global society Most importantly are the technological barriers intellectual property rights quality issues and issues of limited appropriability of knowledge Further the institutional framework remain relevant for displaying how the sector and the emerging GINs are embedded institutionally socially and technologically Whether actors trans-act knowledge technology and know-how through cooperative innovation activities also depends on how core the technology of a given technology is Still as the market grows in China it seems to have matured in Europe because of changing policies on re-newable energy To sustain the position as a global lsquohubrsquo and world leader in wind tech-nologies there is a strong need for support in Europe as this research really shows how fast the Chinese industry is moving One major result is how important networks are for upgrading companies and it seems that Chinese firms perform better in network strategies and manage to tap into relevant knowledge than the European firms

What drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick off rdquoldquoInterview Wind Engineer Chinese Academy of Sciences

39CSQ

Social Enterprise World

ForumNadine Koumlcher from 180Degrees recounts her experience from the

conference on

Rio de Janeiro Brazil 2012

In the numerous panel debates and parallel track discussion it became clear that Impact Investment is a hot topic among both social entrepreneurs and impact investors a diverse group consisting of corporations founda-tions and potential donors However various obstacles impede a harmonious relationship between the twoSocial enterprises face structural challenges to make themselves more appealing to im-pact investors They have to become more transparent and increase their accountability This includes improving their impact assess-ment and reporting tools However despite much discussion no consensus could be formed on how to optimally conduct im-pact assessment One of the most frequently proposed methodologies involves the use

From the 16th to the 18th of October the CBS Sustainability Platform granted me the opportunity to attend the 5th Social Enter-prise World Forum which took place in Rio de Janeiro Brazil This yearly international conference focuses on social enterprises and their effectiveness in solving social challeng-es The overall theme of the 2012 conference hosted by NESsT was ldquoSocial Enterprise Investing for Impactrdquo Thus for three days over 180 speakers and 650 delegates from 30 different countries shared their experiences regarding impact investment and discussed possibilities to attract new investment by both the public and the private sector for so-cial enterprises

of control groups Story-telling has also been men-tioned to be a powerful tool to provide investors with a proof of outcomesSocial investors are willing to accept returns just below the market rate in exchange for a social return However large profits are still expect-ed and many social enter-prises are afraid of being unable to generate them Social enterprises typically operate on a small scale and are not used to undertake large projects with huge sums of investment given to them Many are too small for social investors to be

attractive as costs are similar for small and large investments although larger invest-ments have a higher payoff

Nichole Echert the CEO of NESsT there-fore pointed out that it is necessary to align expectations between impact investors and social entrepreneurs and to be patient in establishing a relationship between the two groups The expected financial return has to be reasonable close to covering the costs of operation and social returns have to be re-ported to investors by use of clearer criteria

By Nadine Koumlcher Director of Branch Development180 Degrees Consulting Limited

ldquoSocial Enterprise Investing for Impactrdquo

Students

40 CSQ

A highlight of the con-ference was definitely the site visit to a social enterprise project in a recently pacified fave-la It brought further insights on the great variety of social enter-prises that exist in Bra-zil and their missions and struggles We visit-ed a community center at which Comitecirc para

Democratizaccedilao da Informaacutetica (CDI) uses technology to fight poverty and to stimulate entrepreneurship CDI has formed a corpo-rate partnership with Coca Cola which in the same building teaches young locals how to write a CV and find a job Talking to the young locals at the center it became apparent that an increased self-confidence and the in-spiration they get from meeting former now employed participants of the project (eg at Coca Cola) is what they valued most of being part of the class

Participating at the conference was definite-ly a unique and valuable experience I would not want to miss as I tremendously improved my knowledge in the field of social enter-prises through attending the numerous pres-entations and discussions and further met so many inspiring social entrepreneurs impact

In addition it has been stressed that the problem is not a shortage of investment capital (even though the government could promote more impact investment by for instance granting tax breaks) but how to deploy it Social entrepreneurs also have to be aware of the different advantages and dis-advantages of the various types of capital It has to fit their process of establishment and it has therefore been suggested that funds and grants are most optimal in the start-up phase to cover such costs as capacity train-ing There is generally a lack of this early stage financial support Following the initial phase strategic philanthropy money would be most appropriate before impact and final-ly equity investment is sought Furthermore new ways of investment which fit the social enterprise world have to be created replac-ing the current situation of trying to fit social enterprises into the current financial world

investors and students with a genuine inter-est in the field

Participating at the conference was definitely a unique and valuable experience rdquo

ldquo

Social Enterprise World Forum 2013 in

Calgary Canada

The TRICO Charitable Foundation in part-nership with the Social Enterprise Council of Canada and the Social Finance Forum has been selected to host the 6th Annual Social Enterprise World Forum SEWF 2013 will take place October 2-4 2013 in Calgary Al-berta The Forum will present the Canadian social enterprise movement with opportuni-ties to engage learn and share on the inter-national stage

SEWF 2013 will be a gathering of over 1000 Canadian and international delegates who are involved in the social enterprise move-ment where the blending of social and fi-nancial values is core to business Attendees will consist of practitioners (from all sec-tors) funders investors supporters elected officials and public servants from around the world

Nadine Koumlcher

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 17: CBS Sustainability Quarterly 2013 #1

17CSQ

UPDATE FROM PRME

New approach by the Curriculum Development

projectThe commitment to the initiative of the UN Principles for Responsible Management Education (PRME) at CBS has been further sustained via a more targeted approach to the development of the curriculum at the undergraduate programmesAs part of the adherence to PRME CBS has launched a Curriculum Development project to integrate responsible management prac-tices into the study programmes and also make these practices more explicit This is an extensive process that recently has been even more focused on the individual content of each of the study programmes A more cus-tomised approach will only strengthen the analyses of syllabi for each core course and increase the content of explicit responsible management

ldquoThe current restructuring of the Service Management bachelor programme and the development of three specialised lines of ed-ucation offer a great opportunity to align the curriculum development with the Principles for Responsible Management adopted by CBS Currently the CBS Office for Respon-sible Management Education and faculty members from CBS are working to identify opportunities to integrate responsible man-agement education into the educational programmerdquo Assistant Professor Adriana

Budeanu BSc in Business Administration and Service Management CBS In collabo-ration with study boards students and fac-ulties the Curriculum Development project enables a targeted approach to the integra-tion of responsible management content in order to comply with the overall structure of each study programme

Anti-piracy strategy from Maersk was a winning strategy

In collaboration with the CBS Sustainabili-ty Platform the CBS Office for Responsible Management Education arranged an internal competition to identify the best team of stu-dents to represent CBS at the International Business Ethics Case Competition (IBECC) in San Diego later this year The students had to select a business case entailing a challenge with legal financial and ethical aspects and propose a solution to this challenge A jury found the winning team based on a live presentation followed by a QampA session that took place in November 2012

The winners of this unique opportunity were the graduate students Bjoslashrg Ilsoslash Klinkby (MSc IBP) Adam Eithz Kromann (MSc BAP) and Anne Cathrine Gaarde (MSc IBP) They presented a business case on the anti-piracy strategy of Maersk

Winners of the Business Ethics Case Competition

Updates from partner organizations at CBS

18 CSQ

THESIS PARTNERSHIP BETWEEN GRADUATE

STUDENTS AND COMPANIES MATCH-MAKING

On behalf of CBS the Office for Responsible Management Education invited companies and organi-sations to participate in a match-making event with graduate students who were looking to write their thesis within the field of sustainability or social responsibility

Prior to the event that took place on the 6th of February ambitious graduate students were matched with eight very diverse organ-isations all wanting to explore challenge and develop CSR related activities The selection of organisations ranged from Center for So-cialt Ansvar who sought the studentsrsquo advice on how to revitalise their social concepts in corporation with the civic public and pri-vate sector to Wonderful Copenhagen that engaged the students in their aspirations of

retaining Copenhagen as a leading ldquogreenrdquo conference destination This diversity mere-ly reflected the broad-based educational standards that are embodied in the conducts of CBS and enabled students from all study areas to participate With the meeting as the focal point of the event the aim was to in-troduce more students and companies to the possibilities of a thesis partnership On that basis it is the hope that students and organisations will take the initial meeting

further into a collaboration resulting in a thesis that with an analytical and reflected approach hopefully provides valuable insight for all parties The event was indeed a unique opportunity for the students to get the or-ganisationsrsquo unremitting attention but also the organisations expressed their excitement about how the theoretical knowledge and skills of the students could be combined with the specific issues reaching beyond everyday operations of the organisation

PRME

Lene Mette SoslashrensenTel +45 3815 2651E-mail lmsiklcbsdk

PRME Manager

Johanne Duelund Kramer from Wonderful Copenhagen and CBS student Joseacute Bandeirinha from International Marketing and Management

Updates from partner organizations at CBS

19CSQ

A value adding partnership

The match-making event was kick-started by Professor Andreas Rasche who gave a short speech on trends in the field of sustainability and social responsibility Likewise thesis con-sultant Vibeke Ankersborg rounded off the event by guiding both students and organisa-tion representatives in the right direction of obtaining a value adding thesis partnership

By facilitating integration of the theoretical knowledge pool at CBS with real-life busi-ness cases and their challenges this initiative underpins CBSrsquos Responsible Management Education profile ldquoAddressing societal chal-lenges in interaction with business is a key element in our Business in Society strategy and we hope to set up a similar initiative in the futurerdquo Lene Mette Soslashrensen PRME Manager CBS

Being able to engage in a thesis partnership gives us the opportunity to get new and fresh eyes on the challenges and opportunities we face in the aspiration of sus-taining Copenhagenrsquos position as marked leader within sustainable meetings and events ndash and the other way around we see it as a positive contribution to help young students to gain in-depth knowledge on how we actually work with sustainability in practicerdquo

Ulrika Maringrtensson senior communication consultant Wonderful Copenhagen

ldquo

Case Companies

20 CSQ

Update from CBS Centre for Corporate Social Responsibility

cbsCSR celebration10 years anniversaryOn Thursday November 22 2012 CBS Centre for Corporate Social Responsibility (cbsCSR) celebrated its 10 years anniversary The guest list included prominent guests from both academia and the corporate world Head of Department Dorte Salskov-Iversen President Per Holten-Andersen and cbsCSR Director Esben Rahbek Pedersen bid all a warm welcome to an afternoon of inspirational talks and celebration of the Centre

Susanne Stormer followed and initiated her presentation with a brief recap of Novo Nor-diskrsquos history and continuous development of corporate sustainability practices She em-phasized how Novo Nordisk with the help of Professor Ed Freeman has prioritized a close relationship with their stakeholders and learning with them as a means to reach a higher level of corporate sustainability An additional key take-away from Susanne Stormer was the notion of transformational partnerships She argued that corporations NGOs and other stakeholders should use each other to form transformational partner-ships instead of just transactional partner-ships She claimed that in order to address and solve the problems in todayrsquos world the issues have to be addressed at the roots ndash in cooperation with stakeholders

The program had been divided into two ses-sions Each session ended with a panel dis-cussion that gave the audience the opportu-nity to track the developmental trajectory of CSR and participate in the discussion of the future direction of CSR

In the first session which focused on the history of CSR Professor Lucia Reisch from Department of Intercultural Communica-tion and Management CBS Susanne Storm-er VP of Corporate Sustainability at Novo Nordisk and Professor Gail Whiteman from Rotterdam School of Management present-ed their perspectives on the development of CSR up until nowProfessor Lucia Reisch set the stage with an enlightening introduction to the history of sustainable development and emphasized balance on the triple bottom line as key

Professor Gail Whitemanrsquos presentation highlighted both the past and the future of CSR Her main topic was how to deal with planetary boundaries She drew attention to inherent implications of teaching sustaina-bility and CSR at a business school and ar-gued that in order for students and business executives to understand the implications of planetary boundaries and their importance classes should be taught in nature

In the second session Annette Stube Head of Group Sustainability in AP Moller ndash Maersk Simon Pickard Director General at ABIS and Professor Andreas Rasche from cbsCSR presented their views on the future of CSR

Updates from partner organizations at CBS

21CSQ

The topics in the second panel debate evolved around some of the same issues as in the first panel debate The audience was very interested in the educational aspect of CSR and sustainability and a discussion fol-lowed concerning the issues of lsquopreaching to the convertedrsquo Research shows that 75 of CSR courses are not mandatory 1 thus those students and executives who have a natural interest in CSR and sustainability enroll for these courses The speakers agreed that this posed a challenge for the future and that business schools might have to re-invent themselves in this regard They stressed that it is crucial that CSR and sustainability courses become mandatory Also the prac-titioners advocated in-company learning They set forth the argument that it may be a long time before current students will have sufficient impact on the corporate sector but also because the corporate sector and the ac-ademic world can learn from one another

Sum-up of key perspectives for the future

So how has lsquothe business of business really changedrsquo and in what direction From the afternoonrsquos discussions there were two recur-ring topics Susanne Stormer briefly touched upon it when she talked about transforma-tional partnerships Annette Stube and AP

Annette Stube set forth the argument that ldquothe business of business has really changedrdquo She gave an example of how AP Moller ndash Maersk should use their position in the shipping industry to facilitate substantial changes Simon Pickard supported her argu

ment stating that it is not possible for single corporations to make a difference but that clusters of corporations have to collaborate to push changes If corporations do not join forces they risk only making incremental changes Simon Pickard further argued paraphrasing Andrew Pettigrewrsquos argument that in the course of time there has been a conceptual change in the argument for CSR He pointed to the fact that it started out as a moral or philanthropic enterprise and is now perceived as a governance case Simon Pickard pointed to the fact that the future of business is to create shared value ie creat-ing economic value that also creates value for society at large Building on these re-marks Andreas Rasche discussed the future of standards and codes in the field of CSR Emphasizing a variety of case examples he argued that while standards have proliferated in recent years eg certification schemes in the global coffee and apparel industries there is a need to more actively manage the co-ex-istence of these initiatives in order to avoid overlap Rasche also highlighted the pivotal role of consumers who need to acknowledge standards and labels as market signals and factor social and environmental concerns into purchasing decisions

Moller ndash Maersk has it as an integrated and crucial part of their CSR policies and Simon Pickard highlighted how instrumental the-ories are no longer enough The concept of shared value is inescapable and it is what the lsquobusiness of businessrsquo in the early 21st centu-ry is really about

A second topic which also attracted a lot of attention was the importance of continuous education of both lsquothe convertedrsquo but also of opponents of CSR and people who are not aware of the importance of CSR and sustain-ability In-company learning was depicted as a crucial part of the development of CSR and sustainability however a physical change in the teaching settings is also required to meet the approaching environmental challenges

Centre Director Esben Rahbek Pedersen concluded the conference and the winners of the prize of 25000 DKK to participate in the IBECC case competition in San Diego in May 2013 were announced and the celebra-tion of cbsCSR ended with a reception

Thank you to all the speakers moderators and guests for an inspirational afternoon

By Elise Lind Jacobsen and Line Pedini Rasmussen cbsCSR

1Rasche A Gilbert DU and Schedel I (2013) Cross-Disciplinary Ethics Education in MBA Programs Rhetoric or Reality Academy of Management Learning and Education (forthcoming)

Three of the keynote speakers (from left) Professor Gail Whiteman from Rotterdam School of Management VP of Corporate Sustainability at Novo Nordisk Susanne Stormer and Sustaina-bility Professor at CBS Lucia Reisch

Simon Pickard Director General at ABIS

22 CSQ

UPDATE FROM

CBS GOES GREENThe Green Associate Program

2012 was an exciting year for CBS Goes Green with many great achievements One of the new initiatives that was launched in 2012 was the Green Associate Program Here CBS students were able to volunteer in a program to support sustainable behavior among students and staff at CBS More precisely 25 CBS stu-dents put in 30 hours of voluntary work to help with the planning and execution of Green Week - a week consisting of a lineup of successful companies shar-ing their sustainable initiatives and thoughts The overwhelming interest in sustainability and sustain-able business among the students has made it evi-dent that the Green Associate Program should con-tinue in 2013 We at CBS Goes Green look forward to this as well as all of the other initiatives we will be conducting in 2013

The following is an extract of an article that three of the associates wrote themselves This extract shows the associatesrsquo own experience working with CBS Goes Green

What does it mean to be an

associate with CBS Goes Green

In Week 39 CBS turned into a plethora of green initia-tives and events in order to make CBS reach its sustaina-bility goals for 2020 Both students and employees at CBS were asked to become a Green Ambassador to help CBS be smarter greener and better

But many of you may wonder how it is to be one of the people behind the scene As associates we have been help-ing out before and during Green Week in order to establish an event that would reach all corners of CBS This has re-quired both time and effort in order to make things work out but in the end there are also a lot of gains from being an associate

Firstly as an associate you get to expand your network You get to work with people from different studies countries and ages and you also get to talk to many different people while promoting

A bonus about being an associate is also that you get an official certificate which can be attached to your resume This shows that you have put an effort into making Green Week happen

Furthermore by being an associate you feel like you have a larger impact on making CBS a greener place Instead of being an ambassador and only doing the things you can do you get to be the person who raises awareness about sustainability You may influence people to make the right choices and it makes you feel good

Lastly it also gives you a feeling of responsibility because you work under an official part of CBS CBS Goes Green ndash a unit with a clear agenda and a clear vision

By Michael Nguyen Christian Charity and Christian-Philip Lundahl

Updates from partner organizations at CBS

23CSQ

International conference on sustainable biofuels presents latest research

By Barbara Louise Bech Department of Business and Politics CBS

EU Renewable Energy Directive

In 2009 the EU RED set a mandatory target for member states to use a minimum of 10 renewable energy sources in the transport sector by 2020 of which biofuels is expected to be the main contributor This is part of a policy to cut greenhouse gas emissions promote the green technology sector develop rural areas and reduce dependency on fos-sil fuels Due to increasing controversies claiming lack of sustainability in first generation biofuels based on food crops recently the EU pro-posed an amendment to the Directive limiting the share of first gener-ation biofuels to 5 of the targeted 10

The debate quickly zoomed in on the sustainability criteria as outlined in the EU RED drawing attention to the lack of social safeguards The general consensus is that the concept of sustainability is too narrow-ly defined Several case studies (Mozambique Brazil and Indonesia) show that basic labor and human rights of local populations are not protected by RED and the directive is more viewed as an environmen-tal safeguard This discussion raised questions in regard to the effects of RED globally (eg sustainable production in developing countries) and in this context whether EU legislation can have a lsquotrickle downrsquo effect on national standards of nation-states outside the EU In this re-gards one could ask if enforcement at the local level falls under the re-sponsibility of the EU but since first generation biofuels are produced outside the EU it is an important issue for European consumers ndash al-though interest is currently mainly driven by NGOs

On November 19-20 2012 the Copenhagen Biofuels Research Network (COBREN) held an international conference on sustainable biofuels inviting 30 research-ers from around the world to present and discuss their latest research During the two day conference focus was the sustainability criteria of the EU Renewable Energy Directive (RED) voluntary certification schemes and their impacts on sustainability and social safeguards in producer (developing) countries in particular and governance complexity of the biofuel system which has grown considerably over the past decade

Rough guide to biofuelsThere are two types of biofuels biodiesel and ethanol First generation biofuels (1G) are based on food crops and feed stocks such as palm oil soybean and rapeseed used for the production of biodiesel and sugarcane and corn for ethanol The produc-tion of biofuels increased heavily in the 2000s questioning the sustainability of 1G A number of issues have been claimed as key impediments to sustainable biofuel production such as deforestation competition with food production and increasing food prices loss of biodiversity lack of social and environmental safeguards and indirect land use change (ILUC) These contro-versies have led to a call for the promotion of second generation biofuels (2G) which are typically based on agricultural waste (eg straw) plants and forestry residues (also called lignocellu-losic biomassmaterials) However the immediate problem is that there is yet to be developed a market for 2G as they are more costly to produce (require longer and more complex production process)

CBS Sustainability Platform co-director and organizer of the COBREN conference Stefano Ponte doing a presentation

Event

24 CSQ

Voluntary certification schemes

In relation to how standards and certifications can impact sustainable biofuel production discussions pointed to the important difference be-tween mandatory and voluntary schemes As the controversy of sus-tainable biofuels in particular first generation is rolling out special attention has been given to biofuel production competing with food production ILUC value of emissions reduction and environmental and social issues This have off sprung a proliferation in private certifi-cations and during the conference it was discussed intensely whether these schemes have an actual effect on sustainability Depending on the point of view certifications can fill out the holes in legislation and act as a tool to force companies to comply with sustainability crite-ria However the development processes of new certifications may not be inclusive of relevant stakeholders (eg representatives of local populations) Additionally the nature and governance of the networks steering these processes is not always transparent and may favor one interest over the other This intense discussion led to the question of the purpose of certifications Can we use them for anything other than as a CSR PR tool as long as consumer awareness is as low as it is and how do the different regional drivers influence sustainability as a concept The answers to these questions are not easily found and it will be interesting to observe the future development and partnership between public and private sector

Governing the biofuel industry

Within the past decade biodiesel production has risen from below 30PJ in 2000 to 572PJ in 2009 globally and fuel ethanol production has increased from 340PJ to 1540 PJ respectively As the market expands more actors eg governments international organizations civil soci-ety and NGOs private sector networks and companies and profes-sions (biofuel experts and consultants) get involved and play different roles to promote their own agendas Being an emerging industry the structure of the biofuel system shows hybrid forms of governance with many actors As controversies of biofuelsrsquo sustainability develop more issues are added to the agenda giving life to more actors and interests in the governance structure Research shows a shift in power balance as private companies and NGOs increasingly push the agenda The dis-cussions during the conference centered on the complexity of sustain-ability issues calling for mixed governance responses and governance instruments such as standards and certifications which in return need to be followed up with endorsement instruments Given these com-plexities the question is whether the biofuel industry is too difficult to govern as long as the governing systems (for instance the EU) cannot accommodate expectations of all stakeholders

Indirect land use change (ILUC)ILUC is the unintended consequence in terms of more carbon emis-sions due to land use change around the world induced by the expan-sion of croplands for biofuel production When land that could be used to grow food and feed crops is used to grow energy crops this leads to existing agricultural production moving to another area or country where land is converted When this land is cleared and converted to cropland and because natural lands (rainforests and grasslands) store and sequester carbon in their soil and biomass a net increase in GHG emissions can occur Due to this change in the carbon stock of the soil and the biomass ILUC has consequences in the GHG balance of a biofuel Adding to this complexity models for ILUC calculations are not mainstreamed and thus difficult to assess internationally

25CSQ

Mellemfolkeligt Samvirke (MS) or Action Aid Denmark is a Danish NGO founded back in 1944 The

organizations key objective is to fight poverty by ensuring greater political influence for the worldrsquos poor and margin-alized at the local national and international levels MS works to bring about long-term development in the worldrsquos poorest countries focusing especially on education co-

operation and the ability to organize MS mainly works in Africa Read more about the organizationrsquos work

at wwwactionaiddk

Action Aid

A private sector view on the future of sustainable biofuels

By Barbara Louise Bech Department of Business and Politics CBS

nergy security continues to be an eminent concern in a world of finite resources For a long time biofuels have been viewed as

one of the key solutions to replace our dependency on fossil fuels and battle climate change but in recent years controversy has contested the sustainability of first generation biofuels based on food stock Issues such as lack of environmental safeguards causing loss of biodiversi-ty and deforestation and lack of social safeguards ensuring land and labor rights in producer (developing) countries have been claimed as key impediments to sustainable biofuel production Critical observers also argue that the emission savings of biofuel use in compar-ison to fossil fuels can become much smaller (or even disappear) when indirect land use change (ILUC) is included in the calculations Furthermore bi-omass production from food stock is argued to compete with food production and in-creasing food prices

The Danish NGO Action Aid has been engaged in biofuels since 2008 and is par-ticularly involved in protecting womenrsquos rights and preventing land grabs in de-veloping countries ldquoWe are very concerned about land use when it comes to first genera-tion biofuels This relates both to the people who are dependent on the land and to food security We rarely see good combinations where the local populationrsquos needs are taken into consideration The energy crops grown on the local farmerrsquos land donrsquot benefit him and local consumption is essential for developmentrdquo explains Kirsten Hjoslashrnholm Soslashrensen political advisor Action Aid Denmark

It is therefore believed by many that second generation biofuels is the only way forward to avoid competition with food and avert ILUC Next generation biofuels is based on lignocellulosic biomass such as agricultural and household waste and forest residues The Biorefining Alliance represents a cluster of leading Danish companies within the renewable energy sector with an ambition to promote second gener-

ation biofuels and make Denmark a world leader of technology and bi-ofuel productionldquoDenmark has very strong competencies in green tech and as a society we have put a lot of money in its development This is go-ing to be a huge deal globally so we are asking whether Denmark wants to be a customer or a producer What we are working for is of course that we become a lead exporter of technology but also that Denmark produces second generation biofuels commercially Even though we are a small country we cannot settle on selling know-how Denmark also needs to have some industrial productionrdquo says Anne Grete Holmsgaard di-

rector of Biorefining Alliance In her view Denmark needs to keep a firm grip on developing innovation or it will slowly but

steadily move out of the country In this regard she views sustainability criteria for biofuels as an in-

novator and not a hindrance

The Sustainable Biofuels Network (SBN) is another cluster of private companies trying to facilitate the transition from fossil fuels to biofuels in the transport sector For the aviation industry biofuels are considered

to be the only alternative to fossil fuels and the industry firmly believes that biofuels will

survive according to Robert Arendal chairman of SBN ldquoThe aviation industry has set very clear

guidelines for the use of biofuels We are not going to use food based biofuels and we will minimize the use of fresh

water By 2050 our target is to use 50 biofuels in the global aviation so we really need to move fastrdquo he explains adding that living up to sustainability criteria includes being careful about where biofuels are produced ldquoBut it should be produced all over the world and close to the 1600 airports worldwide that account for 95 of all aviationrdquo

he technology for second generation biofuels is already here but the problem is that production costs are too high and there is no market As long as prices are not competitive with conventional fuels it will be difficult to move forward ldquoOne might ask why there is no market The customers are certainly there so if I was in the business of producing

E

As part of the COBREN international conference on sustainable biofuels private sector civil society and academia were invited to give their views on sustainable biofuels at a roundtable discussion at an open public seminar held at DIIS November 19 2012

Event

26 CSQ

SBN is a ldquobreeding groundrdquo and ldquoknowledge centerrdquo for the biofu-els industry where synergies are created between all parties within

the biofuels sector SBN focuses in promoting supporting and enabling the commercial development and use of clean and sustainable biofuels for Heavy Road Transportation Shipping and Aviation Emphasis is put on the importance of global standards for biofuels with local as well as international institutions and decision makers to encourage con-

structive guidelines and rules for the development of biofuels SBN adheres to EUrsquos sustainability criteria SBN is a non-profit asso-

ciation established in 2008 Visit their website for more info at wwwsustainablebiofulsdk

Sustainable Biofuels Network(SBN)

The Biorefining Alliance (BA) was founded December 2011 by DONG Energy Novozymes Haldor Topsoslashe and the

Danish Agriculture and Food Council and is a three-year project to politically promote Denmarkrsquos position in the entire value chain from residues to bio-based products The Alliance has set forth a number of recommendations to achieve a sustainable Danish bio-economy Among other these include (i) that all organic

waste be considered a resource (high-value recycling and storable energy) (ii) reducing the cost of manufacturing 2G

bioethanol and (iii) contemplating the establishment of a national center for sustainable materials

Biorefining Alliance

second generation biofuels I would get started right awayrdquo says Robert Arendal The Biorefining Alliance is working on lowering the costs and recommends a stronger regulatory framework with binding targets as it has been done for the wind industry ldquoThere already is a market for first generation biodiesel which is the least sustainable biofuel We need to make a market for second generation biofuels and we know that binding targets work I donrsquot think it is possible to create a market for the lsquogreen consumerrsquo as you have one for organic food products but I believe that a niche market for HRT (Heavy Road Transport red) such as public bus transport could be a supplementrdquo concludes Anne Grete Holmsgaard

How the future for sustainable biofuels will shape depends on political will to create a market for second generation and the ability of private sector to innovate and bring prices down Oil production is claimed by some to already have peaked and exploring new geographical areas for extraction could be as costly as kick-starting the market for second generation biofuels although much less sustainable As the American ecologist and environmentalist Bill McKibben wrote in his book ldquoDeep Economyrdquo back in 2007

Even before we run out of oil wersquore running out of planetrdquoldquo Bill McKibben

27CSQ

The Transparency-Sustainability NexusA workshop on the practices meanings and tensions of organiza-

tional transparency

n December 5 2012 the Department of Intercultural Communication and Management (ICM) hosted an in-

ternational workshop supported by CBS Sustainability Plat-form and ICM The workshop was organized by Oana Brindusa Albu Mikkel Flyverbom and Hans Krause Hansen respectively PhD Fellow and Associate Professors at ICM The idea of the workshop was spurred by the observation that while ideals of transparency like lsquoopennessrsquo lsquodisclosurersquo and lsquoreportingrsquo are pro-liferating these years the actual construction of transparency within and across organizations is poorly understood Most re-search on transparency is highly normative if not celebratory just as popular discourse about transparency not least in the areas of sustainability and corporate social responsibility is obsessed with ideals of accountability performance and effi-ciency and pervaded by an optimism currently pushed to its extreme with the explosion of new media technologies

But the truth is that we generally know very little about the implications of ideals of transparency when translated into practice in specific issue areas and organizational contexts Importantly each of the contributions to this workshop clear-ly suggested that the contemporary politics of transparency is much more complex contradictory and dynamic than tradi-tionally recognized All papers examined various aspects of the contemporary obsession with transparency and specifically the increasing use of disclosure techniques within and around or-ganizations the rationales or myths underpinning these meas-ures their intended and unintended consequences including implications for identity-making management and govern-ance practices

Clare Birchall initiated the workshop with a paper titled lsquoThe Cultural Politics of Disclosurersquo highlighting how transparency has been positioned as a superior form of disclosure in popular management and organizational literatures and in policy docu-ments In her account the growing preference for transparency is a consequence not only of the positive qualities seen to be intrinsic to transparency itself but also a response to the per-ceived negative characteristics of other forms of disclosure such as gossip scandal and rumor Lars Thoslashger Christensen (with co-author Joep Cornelissen) then analyzed transparency as one of the foundational myths of modernity myths understood here as descriptions of the world in a narrative form which seeks to produce meaning and direction for a community and its members Such lsquoMyths of Transparencyrsquo sustain numerous organizational practices ndash including openness information provision and auditing But as argued by the authors there are conflicting evidence regarding the capacity of such practices to create insights and understandingThat aspirations and techniques of transparency can have seri-ous repercussions was demonstrated by Peter Skaeligrbaeligk (with co-author Mark Christensen) in the paper entitled lsquoAuditing and the purification of blamersquo which analyzed how auditing auditing practices and institutional entities including the po-liticized environments surrounding them are mobilized and participate in blame games and allocation In his paper titled lsquoQuantification transparency and the costs of reassurancersquo Henrik Vollmer analyzed various dimensions of the role of nu-merical records and signaling in generating transparency trust and mistrust

By Hans Krause Hansen Department of Intercultural Communication amp Management

Event

O

28 CSQ

Some of these aspects were also touched upon in the paper lsquoDisrupted Disclosures The Politics of Visibility and Surveil-lance in the Extractive Industriesrsquo by Hans Krause Hansen (with co-author Julie Uldam) which explored the wider field of visibility and surveillance in which contemporary transpar-ency policies are unfolding with examples from the extractive industries Oana Brindusa Albu in her lsquoTransparency and the organizational self everyday politics of identification in Cooperativesrsquo examined the paradoxical effects of values and practices of transparency on collective identity formation pro-cesses drawing upon her ongoing multi-sited fieldwork in co-operatives Under the heading of lsquoThe Improbability of Secrecyrsquo Mark Fenster analyzed the intersections of secrecy and trans-parency with examples from the US government and its efforts to control information which according to the author does not necessarily stop the flow of information Finally Mikkel Fly-verbom and Christina Garsten examined lsquoThe sway of (big) data ndash calculations and advocacy in the name of transparencyrsquo focusing on the operations of data-based forms of corporate lsquotransparency evangelismrsquo and advocacy through revelation including examples from Center for Global Development and Google

In all the workshop was highly successful in investigating not only the historical and mythical foundations of transparency but also the different practices and forms of transparency that currently shape organizations and a wide variety of issue areas It also provided a reminder of the usefulness of investigating a concept of transparency in relationship to a host of other con-cepts such as secrecy myth gossip blame surveillance visi-bility identity information and knowledge The organizers of the workshop wish to thank all workshop participants for their valuable contributions and the CBS Sustainability Platform and ICM for their support

Hans Krause Hansen

Mikkel Flyverbom

Oana Brindusa Albu

ASSOCIATE PROFESSORPHD (ICM)

ASSOCIATE PROFESSORPHD (ICM)

PHD FELLOW (ICM)

29CSQ

Louise Lyngfeldt Gorm Hansen is a PhD Fellow at the Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) She has a back-ground in Chinese Studies from Copenhagen University (BA) the Asian Studies Program at CBS (BSc) and in International Business Stud-ies and Sustainable Business (MSc) from CBS

The aim of her cross-disciplinary PhD project is to explore how the Chinese hydropower sector works with environmental sustainability and more particularly how the concept is understood and performed in the planning phase of a major dam project in the southwestern Chinese province of Yunnan

The aim of the project is to gain a deeper under-standing of how Chinese firms in the renewable energy sector such as hydropower companies understand and value sustainability as well as how such firms tackle the increasing pressure to deliver socially and environmentally balanced solutions to one of Chinarsquos major challenges lowering CO2 emissions in a time with rapidly rising water and energy demands Theoretically the project draws on - and aims to contribute to ndash a combination of Asian Studies and Science and Technology Studies

PHD FocusLouise Lyngfeldt Gorm Hansen

HYDROPOWER

SUSTAINABILITY

30 CSQ

HYDROPOWER

SUSTAINABILITY IN

CHINAy PhD project combines two of my main research interests China and

environmental sustainability I have studied China for a number of years mainly because of an interest in how the Chinese view sus-tainable development So since finishing my masters I have known that I wanted to study how China plan to tackle a sustainable tran-sition in the years to come I saw my chance when CBS announced PhD scholarships in

DanishEuropean-Chinese social science research in collaboration with the newly es-tablished Sino-Danish Center for Education and Research (SDC) and started my PhD in October 2011My PhD project focuses on the Chinese energy sector more specifically the rapidly growing part of the energy sector engaged in renewable energy Here I examine Chinarsquos second largest source of electricity gene-

eration hydropower In recent years China has become increasingly focused on reduc-ing CO2 emissions While some countries such as the US and Australia are decommis-sioning hydropower dams China is looking to large-scale hydropower construction as one of the solutions to a future clean energy supply This means that hydropower devel-opment plays a central role in Chinarsquos sus-tainable transition

However utilization of hydropower is con-troversial not least in China and has met increasing resistance in recent years particu-larly from Chinese and international NGOs the media as well as the scientific commu-nity Critique is most often focused on how or if social and environmental sustainability can be ensured in such large scale projects as the social and environmental impacts of large scale hydropower development are very complex and difficult to measure More gen-erally the viability of relying on hydropow-er as a future source of energy is also being questioned One of the major concerns here is the overarching issue of climate change ie glaciers shrinking and yearly water runoff decreasing This means less stable water flow for hydropower and less water for other pur-poses such as agriculture water supply for down-stream countries etc

By Louise Lyngfeldt Gorm Hansen Asia Research Centre Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) ndash sinodanishcenterdk

M

Picture from SinoHydro promotion material 2011

Research

31CSQ

In contrast to for example the wind power sector in China in which many foreign com-panies have invested the hydropower sector is dominated by a few large state-owned en-terprises Our knowledge of Chinese state-owned enterprises is still limited and there-fore my PhD project is also part of a larger research project at the Asia Research Centre with focus on Chinese state-owned enter-prises and the reform of the public sector in China

In combining these interests my PhD exam-ines how Chinese state-owned enterprises in the hydropower sector tackle the demand to expand hydropower development to help reduce Chinarsquos CO2 emissions while be-ing under increasing pressure to deliver on sustainability principles in the planning and execution of large scale hydropower pro-jects The pressure comes mainly from NGO organizations the media and the scientific community both at home and from abroad I am conducting a case study focused on a specific river in south-western China which has ndash until now ndash not been fully developed for hydropower and the plans for addition-al hydropower dams on the river are still undergoing assessments The project has continually stalled due to disagreements between Chinese government officials at all levels NGOs the media the increasingly deregulated but still state-owned Chinese hydropower companies and the scientif-ic community However the project has very recently been reopened and so will go through another round of assessments in the near future The case is an excellent example of the complexity of hydropower develop-ment decisions in China but it also highlights some of the social and environmental conse-quences of the global push to decrease CO2 emissions

China plays and will continue to play an increasingly important role globally in the years to come However the country also fac-es enormous challenges - not least regarding the environment These challenges also affect economies in Western Europe - for better or worse My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective so

that we here in Europe and in Denmark can more knowledgably and actively engage with China to help solve some of these difficult challenges that eventually affect us all In do-ing this I contribute to gain a better under-standing of the Chinese perspective on envi-ronmental sustainability that can be of use to companies wanting to engage in the Chinese renewable energy sector

My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective rdquoldquo

Picture of the case-river taken by the author in 2012

32 CSQ

FROM BLUEPRINT TO PRACTICE

ENERGY EFFICIENT CONSTRUCTION

By postdoc researcher Satu Reijonen Department of Organization CBS

In the EU almost one third of CO2 emis-sions are attributed to energy used in the construction and use of buildings (FIEC

2007) It is therefore not surprising that the construction sector has recently been subjected to a substantial amount of policy measures to combat its negative effects on climate change In Denmark the state has posed new thresholds for the energy efficien-cy of new buildings including a plan for con-tinuous improvement in the area This far the industry has responded well to these stricter performance requirements In the future re-quirements will rise to levels that are not that easily achieved in the coming years build-ings will have to use 25 less energy than in year 2008 How can these ambitious goals become business as usual

One of the most discussed ways besides add-on technologies such as windmills and solar panels to enhance the energy efficiency of a building is through an energy efficient phys-ical design In practice this means reduction of energy used for heating cooling down and lighting of the building through an optimal orientation and dimensioning of the build-ing

Integrated energy design contrary to add-on technologies can be achieved on a rath-er modest additional budget This should be good news for the sector that today is eco-nomically pressed Indeed today many low energy building projects claim to use the in-tegrated energy design method (IED) when seeking to meet the most ambitious energy related goals In this commentary I wish to discuss some challenges related to the imple-mentation of this design tool

The integrated energy design method sug-gests that one of the main problems in not achieving energy efficiency is that energy related concerns become integrated into the design process too late The method consists of two elements the first of which addresses the need to bring in energy related knowl-edge throughout the design process It sug-gests that design teams ought to be multidis-ciplinary and that architects engineers and experts should work together either co-lo-cated or in a series of workshops Further-more it suggests systematizing energy quali-ty follow-ups into the design process This is all very relevant and inspiring

Oddly enough a closer look on the actual design practices reveals that few seem to ac-tually follow the method of integrated energy design to the point This poses an interest-ing question about the challenges related to the use of such management technologies as vehicles for increased energy efficiency in construction Maybe it is about time practi-tioners and researchers ask themselves what are the boundaries of and challenges related to the use of these tools ndash and what else is required for organizing for more energy effi-cient building design processes

A revolution of relations

Integrated energy design points to the need to bring energy related expertise into the de-sign process at an earlier point In order to achieve this cooperative practices between different professional groups are advocated for Historically energy experts have most-ly been used to respond to rather advanced architectural plans Shared workshops and co-localization suggest a change in these business as usual relations But are they pos-sible and what type of changes do they ac-tually imply in order to function as wished

Research

33CSQ

Satu Reijonen is postdoctoral scholar at the Department of Organization at CBS In her on-going research project she investigates how architects and energy engineers two different profes-sions cooperate and coordinate their work regarding energy related ques-tions in construction design The ways in which relations between and roles of these professions become consti-tuted through socio-material arrange-ments are a central topics in her work Besides studies of work Satu has con-ducted research on environmentally friendly products and markets

ABOUT SATU RAIJONEN

The initiation of this type of new working forms is certainly beneficial for energy effi-cient design However for several reasons they are more difficult to make work than one would assume While it may sound rea-sonable it is after all a tall order Integrating energy related practices into an environment where different visions professions and in-terests meet and the divide between what one profession does is clearly and historically demarcated is demanding While architects need to make room for the intervention of energy experts into the creative work energy experts have to become capable of working creatively and relate to and follow the visual and aesthetic cues from architects In order to work these kind of changes in the profes-sional roles and relations have to resonate with the skills and visions of individual work-ers not only management level design strat-egies It is not surprising that organizational change scholars remind us of the possibility of loose coupling from the strategies placed at the management level (March 1981) What integrated energy design suggests is a kind of a revolution in the ways in which both the architects and the energy engineers envision their role and space of mobility

Linear tools in an unlinear design process

Integrated energy design suggests that the energy performance of the emerging build-ing design be followed up at certain points during the design process The method de-picts a rather mechanistic and linear under-standing of a design process consisting of phases within which iteration may occur While energy related issues may be dis-cussed as quality goals during these phases the method places a lot of emphasis on the check ups performed in the transition from one phase to another Design processes how-ever can also be characterized in a different manner unlinear exploratory and whirl wind type of practices where clear cut phases hardly exist (Akrich 1992 Van de Ven et al 1999) This also applies to the architectural design processes where the object of the de-sign is emergent (Yaneva 2009) This entails that the product the building may change in unexpected ways during any day of the de-sign process If this alternative description of the design processes is viable delegating energy related issues to some predetermined check up episodes may strike a false accord and indeed be contradictory with the aim of enhancing coordination and cooperation between professional groups What happens in between the predetermined checkups may very well be where the energy efficiency of the building becomes configured and where the intervention from the energy experts

would come most needed Perhaps this is why the best performing projects do not blindly follow the steps of the IED method Check ups however and no doubt play a role in verifying and making visible the energy performance for partners outside the design team

Integrated energy design as many other sus-tainability standards and guidelines make visible systematize and legitimize the ex-istence of environmental management and sustainability issues in organizations and work processes In this such way tools create awareness and legitimacy for environmental and sustainability issues The integrated en-ergy design method also suggests a possible way of thinking about what type of design practice might help us to achieve the stricter energy requirements of the future It howev-er falls short in becoming the change agent it suggests This is hardly surprising as a meth-od or a standard of any kind should only be seen as a possibility or as an opening for an inquiry of what the practice could be about Reconfiguring a well established practice is hard work and it would be foolish to trust that a design method would achieve it by itself What the method does is to alert us of the more profound changes in the pro-fessional roles and relations that is needed in order to enable the change However the method due to its rather mechanical under-standing of the design process may come to work against its own ambition of integrating energy issues into the design work In its quest for integration the method defines at which points in time the architectural and the engineering project has to be checked for its energy performance This approach may lead to bringing in energy related concerns in some artificially created points in a design process which may additionally compart-mentalize energy related issues from where the design really happens

Integrated energy design as many other sustainability standards and guidelines make visible systematize and legitimize the existence of environmental management and sustainability issues in organizations and work pro-cessesrdquo

ldquoLiteratureAkrich M (1992) The De-Scription of Technical Objects in Shaping Technology Building Society Studies in Soci-otechnical Change eds WE Bijker and J Law The MIT Press Cambridge Massachusetts pp 205-224

FIEC 2007 The impacts of buildings on climate change httpwwwbuildingsplatformeuepbd_publicationdocFIEC_Memo_p2919pdf on 1222008

March JG (1981) Footnotes to Organizational Change Administrative Science Quarterly vol 26 No 4 pp 563-577

Van de Ven A D Polley R Garud and SVenkataraman (1999) The innovation Journey Oxford Oxford Univer-sity Press

Yaneva A (2009) The making of a building A pragmatist approach to Architecture Bern Peter Lang

More about integrated energy design(IED)

httpwwwintendesigncomosloIntendnsfAttachmentsGuideline_Version_2pdf$FILEGuideline_Version_2pdf

34 CSQ

The climate challenge in

shipping

ldquoGlobal shipping faces two major challenges both of which are caused by its reliance on fossil fuelsrdquo

By Reneacute Taudal Poulsen Department of Innovation amp Organizational Economics

RENEacute TAUDAL POULSEN

ASSOCIATE PROFESSOR DEPARTMENT

OF INNOVATION AND ORGANIZATIONAL

ECONOMICS COPENHAGEN BUSINESS

SCHOOL

orecasts show that the shipping indus-tryrsquos CO2 emissions will most likely continue to rise in the next two to

three decades as demand for world sea-borne trade will expand At present global shipping accounts for approximately 33 per cent of global CO2 emissions but this share will most probably increase in the coming years if many onshore industries succeed in their aims of reducing emission levels

At the same time rapidly rising fuel costs put heavy strain on shipping company budg-ets Historically and until very recently fuel costs were only a minor concern for ship-ping companies but now they often exceed 60 per cent of variable operational costs Fuel savings made through energy efficiency improvements thus represent a win-win sce-nario for the shipping industry and for so-ciety at large They simply make good sense for everyone

Despite the strong incentives for fuel sav-ings numerous studies have demonstrated that shipping fails to implement cost-ef-fective measures to reduce fuel consump-tion Fuel-saving technologies are readily available in the market and in many cases pay-back periods are very short (less than a year) Changes in operational habits which require few if any investments also hold a significant potential for fuel savings

Global shipping thus holds several classic examples of energy-efficiency gaps Gaps occur wherever cost-effective measures to improve energy efficiency fail to materialize The causes for energy efficiency gaps have been a favourite research topic within the field of energy economics for decades and economists sociologists and political scien-tists have been able to identify several means to bridge the gaps However within the mar-itime domain energy efficiency gaps and the climate challenge remain neglected issues Legal barriers

Shipsrsquo fuel consumption rises steeply with speed Hence slow-steaming or just minor speed reductions can lower consumption and emission levels significantly Since oil prices started to rise rapidly a few years ago shipping companies have indeed resorted to various slow-steaming practices and com-panies which succeed in this regard have been able to gain competitive advantages In other words actors in the industry are trying to bridge the energy efficiency gap However and in spite of the strong price signals from the rising fuel prices a potential for fuel sav-ing through slow steaming still remains

FNew CBS research project

A new three year research project at CBS under-

taken by Reneacute Taudal Poulsen for the Department

of Innovation and Organizational Economics will

examine the climate issues bringing insights from

energy economics and innovation management

into the field of shipping economics The project

which is financed by The Danish Maritime Fund

runs from 2012 to 2015 The project asks why en-

ergy efficiency gaps continue to occur in shipping

and how shipping companies and the maritime

industry at large can use innovative business

models and process innovation to turn the climate

challenge and the rising fuel costs into a business

opportunity Energy efficiency gaps occur both

in daily operations and when investments in new

vessels are made This article will briefly present

two examples of energy efficiency gaps from

the operational level and some of the preliminary

findings of the project

References

Jaffe AB and RN Stavins 1994 lsquoThe energy efficiency gap What does it meanrsquo Energy Policy 22 (110) 804-10IMO 2009 Second IMO GHG Study 2009 London International Maritime OrganizationMoriarty P amp D Honnery 2012 lsquoEnergy efficiency Lessons from transportrsquo Energy Policy 46 1ndash3Poulsen Reneacute Taudal 2012 lsquoEmissions and energy efficiency - the twin challenges for shippingrsquo Mercator Maritime Innovation Research and Education MarchJune 447-454

Reneacute Taudal Poulsen is Associate Professor at the Department of Innovation and Organizational Eco-nomics at CBS He is also affliated with the Centre for Shipping Economics and Innovation at CBS Reneacute Taudal Poulsen holds a PhD degree in marine environmental history from the University of Southern Denmark and he has worked within the field of maritime business studies for the last seven years He has published in such journals as Fisheries Research Business History and Scandinavian Economic History Review

His current research intersts concern the environmen-tal challenges faced by the global shipping industry and business model innovation in the maritime domain

Research

35CSQ

It is clear that shipping companies cannot fully bridge the energy efficiency gap alone In fact factors beyond the control of in-dividual shipping companies and various structural or legal barriers prevent shipping from fully realizing the slow steaming po-tential

Port congestion remains a world-wide prob-lem and causes ships to spend remarkably long periods inactive Despite the financial crisis and the large drop in shipping freight markets after 2008 many loaded vessels sit at anchor outside ports waiting for berths In some cases they wait for a few hours In other cases for days weeks or even months Instead of waiting the ships could have re-duced speeds and saved fuel And the de-livery and the loading of the cargo in port would not have been delayed in any way However in many cases shipping companies or ship operators cannot reduce speed in spite of port congestion

Educational barriers

Energy efficiency gaps in shipping are also evident when the fuel consumption levels of sister ships are compared Even though the vessels are identical and operate in the same waters studies have shown that their fuel consumption may differ by several Decisions made by the crews onboard and by managers in the onshore organizations clearly influence the level of fuel consump-tion For instance if a captain selects only very small course deviation margins when coding the autopilot of the ship the shiprsquos rudder will move frequently to keep the ship on the exact course all the time This will slow down the ship and cause higher fuel consumption than if the captain had allowed for slightly wider margins and the wider margins would not have any effect on the safety of the ship Decisions made by the commercial depart-ments eg on how to crew the vessels how to monitor vessel fuel consumption or which new equipment to install onboard may also

have a large impact on fuel efficiency and emission levels If shipping company man-agers can nurture a fuel saving culture this could potentially make a difference Since 2007 or 2008 shipping companies have in-deed started to facilitate such organizational changes but educational barriers remain a problemOnshore truck drivers are now offered fuel saving courses but fuel-saving is not a major part of the traditional curriculum in nautical schools or in the commercial education of shipping trainees For good reasons the nau-tical educations have focused on maritime safety but this has caused them to neglect the climate challenge in shipping and the is-sue of fuel saving In fact no single nauticaltext book on maritime fuel savings has yet been published and according to teachers and students in the nautical schools this serves as an educational barrier to ener-gy-efficiency improvements The technical level of education for commercial employees in shipping companies may also hinder im-provements in energy-efficiency Some com-

mercial shipping employees may not have sufficient training to fully see and acknowl-edge the consequences of their decisions on fuel consumption In short it seems that fuel awareness and the educational systems have responded more slowly to the climate chal-lenge than the rise in fuel prices may other-wise suggest

For shipping to bridge energy-efficiency gaps education ndash both nautical and com-mercial ones ndash clearly is an area to set in Here the potential for innovative solutions is both evident and pertinent Changing educational systems and awareness is no easy task bearing in mind the global nature of the shipping industry and international crewing of the world fleet It is clear howev-er that educational upgrading is necessary for shipping to effectively address the cli-mate challenge effectively

Charter parties between ship-operators and shippers state a specific time of arrival for the vessel and in order to avoid claims ships proceed to port accordingly regardless of berth availability Experiments with new more flexible charter parties which allow for slow steaming in case of port congestion have recently been made Shipping compa-nies have generally been enthusiastic about this flexibility but often shippers remain skeptical Lack of trust between shippers which need the loading of their cargoes as soon as possible and shipping companies may be a cause for this discrepancy Even in cases where the savings made from slow-steaming are split between shipping companies and shippers shippers have re-mained skeptical Port queuing systems may have a role to play here

Many ports including some of the major container iron ore coal and grain ports serve ships on ldquofirst-come first-servedrdquo ba-sis Ships only receive their ldquoticketrdquo in the

waiting line upon their arrival at the port Again lack of trust between the ship-oper-ators shippers and the port authorities may explain this phenomenon Moreover port authorities currently do not have incentives to change queuing practices because they cannot gain a share in the fuel savings made from slow-steaming

The problem is particularly strong in the major tramp shipping segments of tanker and dry cargo shipping where vessels act as ldquotaxis of the seardquo serving numerous shippers and rarely calling at the same ports If the fleet from a shipping company only calls at a particular port once a year and the compa-ny has very short-term relations to individ-ual shippers building trustful relationships between the parties remains a major chal-lenge Solving this problem and realizing the full potential of slow steaming will require systemic innovation in shipping and port systems and further studies are required to identify possible solutions

36 CSQ

The Wind turbine industry -

Emerging global innovation networks in Europe and China

The wind turbine industry has developed into a global network encompassing a large amount of diverse actors within innovation production and installation of wind turbines across the globe

By Stine Haakonsson and Julia Kirch Hollitsch Department of Business amp Politics CBS

market for wind energy Chinese actors have turned China as a location into another im-portant lsquohubrsquo in this network This has led to new forms of innovation collaborations between European and Chinese actors The result has been a complete re-configuration of the industry over the past decade In the International Business and Economic Geog-raphy literatures the development of global production networks in which lead-firms be-come orchestrators of dispersed production

enmark has traditionally played a key role as an lsquoinnovation hubrsquo and com-

panies in Denmark remain among the lead firms within the wind turbine industry Re-cently the industry has reorganized from being located predominantly in the Triad regions (mainly in Europe and the US) to becoming a globally dispersed industry This development can partly be explained by de-velopments in international and national politics Due to the growth of the Chinese

activities in globalized value chains is well established theoretically as well as empiri-cally In the globalization process lead firms relocate production activities to low cost lo-cations by off-shoring and through vertical disintegration and outsourcing to specialized suppliers Producers of wind turbines are no exception However until recently the mar-ket and innovation activities remained con-centrated in Europe and US

With the recent focus on global politics for a post-carbon society the market for wind tur-bines has experienced an immense growth and a high degree of market globalization New locations have developed into main markets One of these is China which since 2010 has been the largest market for wind turbines in the world (in capacity installed) The globalization process in the wind tur-bine can be explained by a combination of offshoring of production by European lead firms mainly through foreign direct invest-ment and establishment of domestic lead firms in emerging markets In 2010 there were four Chinese-owned companies among the top-10 producers of wind turbines as compared to 2003 where all firms on this list were from Europe and the US

D

Julia Kirch Hollitsch

Stine Haakonsson

Stine Haakonsson and Julia Kirch Hollitsch from Depart-

ment of Business and Politics CBS are engaged in the

Sino-Danish Center for Research and Education (SDC)

project on Wind Energy in China Both research on the

current restructuring of industries and firms at the glob-

al level (outsourcing off shoring global value chains)

In particular their research is on 1) the restructuring of

innovation and RampD activities into global innovation net-

works(GINs)2)thechangingroleofemergingmarkets

(ChinaIndiaBrazilSouthAfrica)intheseemergingGINs

and 3) technology transfer and capability building related

to renewable energy

Research

37CSQ

by adapting their products to the Chinese market and through cost-out development activities in the new locations primarily China

As a result the wind industry is today highly knowledge-intensive and internationalized Due to increased attention and investments in sustainable transition policies and car-bon-reducing technology China has over the past decade developed into a high prior-ity investment area for wind turbines Also Chinese companies are upgrading technol-ogy and innovation from the global firms through integration into GINs Moreover the production and innovation networks for wind energy become highly complex and consist of many different suppliers of com-ponents (blades gear boxes control systems bearings) resulting in a variety of network linkages among suppliers of different com-ponents and the wind turbine producers

From our empirical data including more than 40 in-depth interviews collected in 2011 and 2012 in the wind turbines indus-tries in China and Denmark we have identi-fied some very interesting patterns We have identified very different characteristics of the GINs established by the Chinese wind tur-bine industry and the European wind tur

Emerging Global Innovation Networks

Innovation processes are also moving be-yond the boundaries of individual compa-nies and national innovation systems Firms engage in cross-border innovation networks spanning different innovation systems which may be national regional or sectorial in or-der to stay competitive in the global econ-omy Chinese lead firms are entering this scene too The result is globally organized networks of interconnected and integrated functions and operations by firms and non-firm organizations engaged in the develop-ment and diffusion of innovations so-called Global Innovation Networks (GINs) Lead firms internationalize innovation through strategies of exploitation global generation of innovation and global techno-scientific collaborations Chinese wind turbine pro-ducers ndash acknowledging their resource and capability deficiency ndash pursue strategies of innovation network integration through strategies of global generation of innovation These firms link up with specialized Europe-an actors such as core component suppliers through partnerships and networks in or-der to tap into the technology of firms from developed countries and upgrade Mean-while European companies internationalize through exploitation strategies for example

bine industry Although Danish and Chinese actors are experiencing a re-organization of activities and establish networks and globa-linnovation strategies the result is very dif-ferent

The industry from Europe and US

The industry from Europe and the US hosts the lead firms in terms of core technology de-velopment Denmark has traditionally played a key role as lsquoinnovation hubrsquo in technology development and global lead firms such as Vestas and Siemens Windpower (previously Danish lsquoBonusrsquo) took its start already in the 1970s The core competences of the Danish wind turbine innovation system are based on large testing facilities and long track records mainly due to the long time-line of experi-ence The wind industry goes 40 years back and therefore Denmark has a good knowl-edge pool within establishing wind farms (aerodynamics minimizing power loss in energy transmission wind mapping and other installation-related technologies)

38 CSQ

that will make it possible to finance the pro-jects ldquoFrom then on our wind turbine pro-jects developed very fastrdquo(Interview Wind Engineer Chinese Academy of Sciences) Thus this law was a milestone for elevating renewables to a strategic position in China or as expressed by a European lead-firm ldquoWhat drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick offrdquo

Until the turn of the millennium Chinarsquos wind energy industry was largely built on donors acquisition of finished wind turbines and licensed technology from European companies spread on a very small scale into the local industry during the mid 1990s Chi-nese wind turbine technology has evolved from imitation reverse engineering and licensing in the 1980-90s combined with assistance from foreign consultants One example is how DANIDA funded a project in 1986 for Goldwind in Xinjiang which imported 13 units of 150 kW lsquoBonusrsquo (now Siemens Wind Power) turbines

To get beyond the stage of pure imitation several policies have been introduced with the intent to upgrade Chinese manufacturers to obtain indigenous innovative capabilities Policy programs were introduced to enhance Chinese companies to develop wind energy subsidizing wind energy RampD expenditures at varied levels over time establishing a re-newable energy fund and through the ldquo863 Wind Programrdquo under the Tenth Five-Year Plan (2001-2005) Local content require-ments were put in place in which develop-ers of wind energy projects were required to source 70 pct of the content in China These policies ndash which essentially forced foreign manufacturers wishing to sell wind turbines to the Chinese market to establish China-based manufacturing facilities ndash were only removed recently (in 2009) One result was that the foreign companies had to up-grade local suppliers of components

Due to the technological complexity many European (and hereby also the Danish) firms are vertically integrated and have most com-ponents produced in-house or with regular specialized suppliers According to these companies the different parts need to be well adjusted to each other to some extent even co-developed in order to enhance effi-ciency and the lifetime of the wind turbine Likewise the European industry has expe-rienced a concentration of actors with the result that there are only relatively few but large manufacturers in Europe (the larg-est ones are Vestas Siemens Gamesa and Enercon) Together these four companies accounted for about 35 of the global mar-ket in 2010 By seeing the wind turbine as an integrated system these lead firms aim at producing lsquothe Rolls Roycersquo model wind turbines These are strong in terms of qual-ity and standards but generally expensive These firms learn cost-out techniques from their engagement with partners in China

The Chinese Wind Turbine Industry

Today the Chinese wind turbine industry is overly competitive It entails more than 80 wind turbine manufacturers and the Chi-nese market boasts the highest growth rates internationally with an average growth rate of 968 percentages annually in the last three years Several large domestic Chinese wind turbine manufacturers have emerged within the last decade Sinovel and Goldwind take the largest share followed by United Pow-er and Ming Yang just to mention some of them As of the end of 2010 these four were A major driver for the development of the Chinese wind energy market has been the establishment of an institutional context as a comprehensive concerted policy frame-work addressing the development of renewa-ble energies This change in the institutional context was first reflected clearly in the 11th 5-year-plan (2006-2010) which explicitly linked environmental sustainability to the key goal of establishing what was called a harmonious socialist society signalling a socially environmentally and economically sustainable economy With the Renewable Energy Law from 2005 the Chinese wind energy industry really took off as it explicitly seeks to ensure that renewable energy pro-jects have an outlet for their output at prices

Technical barriers and the role of GINs for a post-carbon society

Despite high ambitions in terms of devel-oping innovative capabilities Chinese pro-ducers still produce almost exclusively for the Chinese market However Chinese wind turbine manufacturers have recently started an internationalisation process and some are approaching international markets Not least for tapping into new knowledge

Europe (and Denmark in particular) is per-ceived as a main location from which the Chinese companies can learn more A cou-ple of Chinese companies have already set up RampD centres in Denmark European firms have also initiated RampD centres in new lo-cations primarily China and India In other words GINs can be identified

Our research also points towards important barriers for GINs in the wind turbine in-dustry and for approaching a post-carbon global society Most importantly are the technological barriers intellectual property rights quality issues and issues of limited appropriability of knowledge Further the institutional framework remain relevant for displaying how the sector and the emerging GINs are embedded institutionally socially and technologically Whether actors trans-act knowledge technology and know-how through cooperative innovation activities also depends on how core the technology of a given technology is Still as the market grows in China it seems to have matured in Europe because of changing policies on re-newable energy To sustain the position as a global lsquohubrsquo and world leader in wind tech-nologies there is a strong need for support in Europe as this research really shows how fast the Chinese industry is moving One major result is how important networks are for upgrading companies and it seems that Chinese firms perform better in network strategies and manage to tap into relevant knowledge than the European firms

What drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick off rdquoldquoInterview Wind Engineer Chinese Academy of Sciences

39CSQ

Social Enterprise World

ForumNadine Koumlcher from 180Degrees recounts her experience from the

conference on

Rio de Janeiro Brazil 2012

In the numerous panel debates and parallel track discussion it became clear that Impact Investment is a hot topic among both social entrepreneurs and impact investors a diverse group consisting of corporations founda-tions and potential donors However various obstacles impede a harmonious relationship between the twoSocial enterprises face structural challenges to make themselves more appealing to im-pact investors They have to become more transparent and increase their accountability This includes improving their impact assess-ment and reporting tools However despite much discussion no consensus could be formed on how to optimally conduct im-pact assessment One of the most frequently proposed methodologies involves the use

From the 16th to the 18th of October the CBS Sustainability Platform granted me the opportunity to attend the 5th Social Enter-prise World Forum which took place in Rio de Janeiro Brazil This yearly international conference focuses on social enterprises and their effectiveness in solving social challeng-es The overall theme of the 2012 conference hosted by NESsT was ldquoSocial Enterprise Investing for Impactrdquo Thus for three days over 180 speakers and 650 delegates from 30 different countries shared their experiences regarding impact investment and discussed possibilities to attract new investment by both the public and the private sector for so-cial enterprises

of control groups Story-telling has also been men-tioned to be a powerful tool to provide investors with a proof of outcomesSocial investors are willing to accept returns just below the market rate in exchange for a social return However large profits are still expect-ed and many social enter-prises are afraid of being unable to generate them Social enterprises typically operate on a small scale and are not used to undertake large projects with huge sums of investment given to them Many are too small for social investors to be

attractive as costs are similar for small and large investments although larger invest-ments have a higher payoff

Nichole Echert the CEO of NESsT there-fore pointed out that it is necessary to align expectations between impact investors and social entrepreneurs and to be patient in establishing a relationship between the two groups The expected financial return has to be reasonable close to covering the costs of operation and social returns have to be re-ported to investors by use of clearer criteria

By Nadine Koumlcher Director of Branch Development180 Degrees Consulting Limited

ldquoSocial Enterprise Investing for Impactrdquo

Students

40 CSQ

A highlight of the con-ference was definitely the site visit to a social enterprise project in a recently pacified fave-la It brought further insights on the great variety of social enter-prises that exist in Bra-zil and their missions and struggles We visit-ed a community center at which Comitecirc para

Democratizaccedilao da Informaacutetica (CDI) uses technology to fight poverty and to stimulate entrepreneurship CDI has formed a corpo-rate partnership with Coca Cola which in the same building teaches young locals how to write a CV and find a job Talking to the young locals at the center it became apparent that an increased self-confidence and the in-spiration they get from meeting former now employed participants of the project (eg at Coca Cola) is what they valued most of being part of the class

Participating at the conference was definite-ly a unique and valuable experience I would not want to miss as I tremendously improved my knowledge in the field of social enter-prises through attending the numerous pres-entations and discussions and further met so many inspiring social entrepreneurs impact

In addition it has been stressed that the problem is not a shortage of investment capital (even though the government could promote more impact investment by for instance granting tax breaks) but how to deploy it Social entrepreneurs also have to be aware of the different advantages and dis-advantages of the various types of capital It has to fit their process of establishment and it has therefore been suggested that funds and grants are most optimal in the start-up phase to cover such costs as capacity train-ing There is generally a lack of this early stage financial support Following the initial phase strategic philanthropy money would be most appropriate before impact and final-ly equity investment is sought Furthermore new ways of investment which fit the social enterprise world have to be created replac-ing the current situation of trying to fit social enterprises into the current financial world

investors and students with a genuine inter-est in the field

Participating at the conference was definitely a unique and valuable experience rdquo

ldquo

Social Enterprise World Forum 2013 in

Calgary Canada

The TRICO Charitable Foundation in part-nership with the Social Enterprise Council of Canada and the Social Finance Forum has been selected to host the 6th Annual Social Enterprise World Forum SEWF 2013 will take place October 2-4 2013 in Calgary Al-berta The Forum will present the Canadian social enterprise movement with opportuni-ties to engage learn and share on the inter-national stage

SEWF 2013 will be a gathering of over 1000 Canadian and international delegates who are involved in the social enterprise move-ment where the blending of social and fi-nancial values is core to business Attendees will consist of practitioners (from all sec-tors) funders investors supporters elected officials and public servants from around the world

Nadine Koumlcher

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 18: CBS Sustainability Quarterly 2013 #1

18 CSQ

THESIS PARTNERSHIP BETWEEN GRADUATE

STUDENTS AND COMPANIES MATCH-MAKING

On behalf of CBS the Office for Responsible Management Education invited companies and organi-sations to participate in a match-making event with graduate students who were looking to write their thesis within the field of sustainability or social responsibility

Prior to the event that took place on the 6th of February ambitious graduate students were matched with eight very diverse organ-isations all wanting to explore challenge and develop CSR related activities The selection of organisations ranged from Center for So-cialt Ansvar who sought the studentsrsquo advice on how to revitalise their social concepts in corporation with the civic public and pri-vate sector to Wonderful Copenhagen that engaged the students in their aspirations of

retaining Copenhagen as a leading ldquogreenrdquo conference destination This diversity mere-ly reflected the broad-based educational standards that are embodied in the conducts of CBS and enabled students from all study areas to participate With the meeting as the focal point of the event the aim was to in-troduce more students and companies to the possibilities of a thesis partnership On that basis it is the hope that students and organisations will take the initial meeting

further into a collaboration resulting in a thesis that with an analytical and reflected approach hopefully provides valuable insight for all parties The event was indeed a unique opportunity for the students to get the or-ganisationsrsquo unremitting attention but also the organisations expressed their excitement about how the theoretical knowledge and skills of the students could be combined with the specific issues reaching beyond everyday operations of the organisation

PRME

Lene Mette SoslashrensenTel +45 3815 2651E-mail lmsiklcbsdk

PRME Manager

Johanne Duelund Kramer from Wonderful Copenhagen and CBS student Joseacute Bandeirinha from International Marketing and Management

Updates from partner organizations at CBS

19CSQ

A value adding partnership

The match-making event was kick-started by Professor Andreas Rasche who gave a short speech on trends in the field of sustainability and social responsibility Likewise thesis con-sultant Vibeke Ankersborg rounded off the event by guiding both students and organisa-tion representatives in the right direction of obtaining a value adding thesis partnership

By facilitating integration of the theoretical knowledge pool at CBS with real-life busi-ness cases and their challenges this initiative underpins CBSrsquos Responsible Management Education profile ldquoAddressing societal chal-lenges in interaction with business is a key element in our Business in Society strategy and we hope to set up a similar initiative in the futurerdquo Lene Mette Soslashrensen PRME Manager CBS

Being able to engage in a thesis partnership gives us the opportunity to get new and fresh eyes on the challenges and opportunities we face in the aspiration of sus-taining Copenhagenrsquos position as marked leader within sustainable meetings and events ndash and the other way around we see it as a positive contribution to help young students to gain in-depth knowledge on how we actually work with sustainability in practicerdquo

Ulrika Maringrtensson senior communication consultant Wonderful Copenhagen

ldquo

Case Companies

20 CSQ

Update from CBS Centre for Corporate Social Responsibility

cbsCSR celebration10 years anniversaryOn Thursday November 22 2012 CBS Centre for Corporate Social Responsibility (cbsCSR) celebrated its 10 years anniversary The guest list included prominent guests from both academia and the corporate world Head of Department Dorte Salskov-Iversen President Per Holten-Andersen and cbsCSR Director Esben Rahbek Pedersen bid all a warm welcome to an afternoon of inspirational talks and celebration of the Centre

Susanne Stormer followed and initiated her presentation with a brief recap of Novo Nor-diskrsquos history and continuous development of corporate sustainability practices She em-phasized how Novo Nordisk with the help of Professor Ed Freeman has prioritized a close relationship with their stakeholders and learning with them as a means to reach a higher level of corporate sustainability An additional key take-away from Susanne Stormer was the notion of transformational partnerships She argued that corporations NGOs and other stakeholders should use each other to form transformational partner-ships instead of just transactional partner-ships She claimed that in order to address and solve the problems in todayrsquos world the issues have to be addressed at the roots ndash in cooperation with stakeholders

The program had been divided into two ses-sions Each session ended with a panel dis-cussion that gave the audience the opportu-nity to track the developmental trajectory of CSR and participate in the discussion of the future direction of CSR

In the first session which focused on the history of CSR Professor Lucia Reisch from Department of Intercultural Communica-tion and Management CBS Susanne Storm-er VP of Corporate Sustainability at Novo Nordisk and Professor Gail Whiteman from Rotterdam School of Management present-ed their perspectives on the development of CSR up until nowProfessor Lucia Reisch set the stage with an enlightening introduction to the history of sustainable development and emphasized balance on the triple bottom line as key

Professor Gail Whitemanrsquos presentation highlighted both the past and the future of CSR Her main topic was how to deal with planetary boundaries She drew attention to inherent implications of teaching sustaina-bility and CSR at a business school and ar-gued that in order for students and business executives to understand the implications of planetary boundaries and their importance classes should be taught in nature

In the second session Annette Stube Head of Group Sustainability in AP Moller ndash Maersk Simon Pickard Director General at ABIS and Professor Andreas Rasche from cbsCSR presented their views on the future of CSR

Updates from partner organizations at CBS

21CSQ

The topics in the second panel debate evolved around some of the same issues as in the first panel debate The audience was very interested in the educational aspect of CSR and sustainability and a discussion fol-lowed concerning the issues of lsquopreaching to the convertedrsquo Research shows that 75 of CSR courses are not mandatory 1 thus those students and executives who have a natural interest in CSR and sustainability enroll for these courses The speakers agreed that this posed a challenge for the future and that business schools might have to re-invent themselves in this regard They stressed that it is crucial that CSR and sustainability courses become mandatory Also the prac-titioners advocated in-company learning They set forth the argument that it may be a long time before current students will have sufficient impact on the corporate sector but also because the corporate sector and the ac-ademic world can learn from one another

Sum-up of key perspectives for the future

So how has lsquothe business of business really changedrsquo and in what direction From the afternoonrsquos discussions there were two recur-ring topics Susanne Stormer briefly touched upon it when she talked about transforma-tional partnerships Annette Stube and AP

Annette Stube set forth the argument that ldquothe business of business has really changedrdquo She gave an example of how AP Moller ndash Maersk should use their position in the shipping industry to facilitate substantial changes Simon Pickard supported her argu

ment stating that it is not possible for single corporations to make a difference but that clusters of corporations have to collaborate to push changes If corporations do not join forces they risk only making incremental changes Simon Pickard further argued paraphrasing Andrew Pettigrewrsquos argument that in the course of time there has been a conceptual change in the argument for CSR He pointed to the fact that it started out as a moral or philanthropic enterprise and is now perceived as a governance case Simon Pickard pointed to the fact that the future of business is to create shared value ie creat-ing economic value that also creates value for society at large Building on these re-marks Andreas Rasche discussed the future of standards and codes in the field of CSR Emphasizing a variety of case examples he argued that while standards have proliferated in recent years eg certification schemes in the global coffee and apparel industries there is a need to more actively manage the co-ex-istence of these initiatives in order to avoid overlap Rasche also highlighted the pivotal role of consumers who need to acknowledge standards and labels as market signals and factor social and environmental concerns into purchasing decisions

Moller ndash Maersk has it as an integrated and crucial part of their CSR policies and Simon Pickard highlighted how instrumental the-ories are no longer enough The concept of shared value is inescapable and it is what the lsquobusiness of businessrsquo in the early 21st centu-ry is really about

A second topic which also attracted a lot of attention was the importance of continuous education of both lsquothe convertedrsquo but also of opponents of CSR and people who are not aware of the importance of CSR and sustain-ability In-company learning was depicted as a crucial part of the development of CSR and sustainability however a physical change in the teaching settings is also required to meet the approaching environmental challenges

Centre Director Esben Rahbek Pedersen concluded the conference and the winners of the prize of 25000 DKK to participate in the IBECC case competition in San Diego in May 2013 were announced and the celebra-tion of cbsCSR ended with a reception

Thank you to all the speakers moderators and guests for an inspirational afternoon

By Elise Lind Jacobsen and Line Pedini Rasmussen cbsCSR

1Rasche A Gilbert DU and Schedel I (2013) Cross-Disciplinary Ethics Education in MBA Programs Rhetoric or Reality Academy of Management Learning and Education (forthcoming)

Three of the keynote speakers (from left) Professor Gail Whiteman from Rotterdam School of Management VP of Corporate Sustainability at Novo Nordisk Susanne Stormer and Sustaina-bility Professor at CBS Lucia Reisch

Simon Pickard Director General at ABIS

22 CSQ

UPDATE FROM

CBS GOES GREENThe Green Associate Program

2012 was an exciting year for CBS Goes Green with many great achievements One of the new initiatives that was launched in 2012 was the Green Associate Program Here CBS students were able to volunteer in a program to support sustainable behavior among students and staff at CBS More precisely 25 CBS stu-dents put in 30 hours of voluntary work to help with the planning and execution of Green Week - a week consisting of a lineup of successful companies shar-ing their sustainable initiatives and thoughts The overwhelming interest in sustainability and sustain-able business among the students has made it evi-dent that the Green Associate Program should con-tinue in 2013 We at CBS Goes Green look forward to this as well as all of the other initiatives we will be conducting in 2013

The following is an extract of an article that three of the associates wrote themselves This extract shows the associatesrsquo own experience working with CBS Goes Green

What does it mean to be an

associate with CBS Goes Green

In Week 39 CBS turned into a plethora of green initia-tives and events in order to make CBS reach its sustaina-bility goals for 2020 Both students and employees at CBS were asked to become a Green Ambassador to help CBS be smarter greener and better

But many of you may wonder how it is to be one of the people behind the scene As associates we have been help-ing out before and during Green Week in order to establish an event that would reach all corners of CBS This has re-quired both time and effort in order to make things work out but in the end there are also a lot of gains from being an associate

Firstly as an associate you get to expand your network You get to work with people from different studies countries and ages and you also get to talk to many different people while promoting

A bonus about being an associate is also that you get an official certificate which can be attached to your resume This shows that you have put an effort into making Green Week happen

Furthermore by being an associate you feel like you have a larger impact on making CBS a greener place Instead of being an ambassador and only doing the things you can do you get to be the person who raises awareness about sustainability You may influence people to make the right choices and it makes you feel good

Lastly it also gives you a feeling of responsibility because you work under an official part of CBS CBS Goes Green ndash a unit with a clear agenda and a clear vision

By Michael Nguyen Christian Charity and Christian-Philip Lundahl

Updates from partner organizations at CBS

23CSQ

International conference on sustainable biofuels presents latest research

By Barbara Louise Bech Department of Business and Politics CBS

EU Renewable Energy Directive

In 2009 the EU RED set a mandatory target for member states to use a minimum of 10 renewable energy sources in the transport sector by 2020 of which biofuels is expected to be the main contributor This is part of a policy to cut greenhouse gas emissions promote the green technology sector develop rural areas and reduce dependency on fos-sil fuels Due to increasing controversies claiming lack of sustainability in first generation biofuels based on food crops recently the EU pro-posed an amendment to the Directive limiting the share of first gener-ation biofuels to 5 of the targeted 10

The debate quickly zoomed in on the sustainability criteria as outlined in the EU RED drawing attention to the lack of social safeguards The general consensus is that the concept of sustainability is too narrow-ly defined Several case studies (Mozambique Brazil and Indonesia) show that basic labor and human rights of local populations are not protected by RED and the directive is more viewed as an environmen-tal safeguard This discussion raised questions in regard to the effects of RED globally (eg sustainable production in developing countries) and in this context whether EU legislation can have a lsquotrickle downrsquo effect on national standards of nation-states outside the EU In this re-gards one could ask if enforcement at the local level falls under the re-sponsibility of the EU but since first generation biofuels are produced outside the EU it is an important issue for European consumers ndash al-though interest is currently mainly driven by NGOs

On November 19-20 2012 the Copenhagen Biofuels Research Network (COBREN) held an international conference on sustainable biofuels inviting 30 research-ers from around the world to present and discuss their latest research During the two day conference focus was the sustainability criteria of the EU Renewable Energy Directive (RED) voluntary certification schemes and their impacts on sustainability and social safeguards in producer (developing) countries in particular and governance complexity of the biofuel system which has grown considerably over the past decade

Rough guide to biofuelsThere are two types of biofuels biodiesel and ethanol First generation biofuels (1G) are based on food crops and feed stocks such as palm oil soybean and rapeseed used for the production of biodiesel and sugarcane and corn for ethanol The produc-tion of biofuels increased heavily in the 2000s questioning the sustainability of 1G A number of issues have been claimed as key impediments to sustainable biofuel production such as deforestation competition with food production and increasing food prices loss of biodiversity lack of social and environmental safeguards and indirect land use change (ILUC) These contro-versies have led to a call for the promotion of second generation biofuels (2G) which are typically based on agricultural waste (eg straw) plants and forestry residues (also called lignocellu-losic biomassmaterials) However the immediate problem is that there is yet to be developed a market for 2G as they are more costly to produce (require longer and more complex production process)

CBS Sustainability Platform co-director and organizer of the COBREN conference Stefano Ponte doing a presentation

Event

24 CSQ

Voluntary certification schemes

In relation to how standards and certifications can impact sustainable biofuel production discussions pointed to the important difference be-tween mandatory and voluntary schemes As the controversy of sus-tainable biofuels in particular first generation is rolling out special attention has been given to biofuel production competing with food production ILUC value of emissions reduction and environmental and social issues This have off sprung a proliferation in private certifi-cations and during the conference it was discussed intensely whether these schemes have an actual effect on sustainability Depending on the point of view certifications can fill out the holes in legislation and act as a tool to force companies to comply with sustainability crite-ria However the development processes of new certifications may not be inclusive of relevant stakeholders (eg representatives of local populations) Additionally the nature and governance of the networks steering these processes is not always transparent and may favor one interest over the other This intense discussion led to the question of the purpose of certifications Can we use them for anything other than as a CSR PR tool as long as consumer awareness is as low as it is and how do the different regional drivers influence sustainability as a concept The answers to these questions are not easily found and it will be interesting to observe the future development and partnership between public and private sector

Governing the biofuel industry

Within the past decade biodiesel production has risen from below 30PJ in 2000 to 572PJ in 2009 globally and fuel ethanol production has increased from 340PJ to 1540 PJ respectively As the market expands more actors eg governments international organizations civil soci-ety and NGOs private sector networks and companies and profes-sions (biofuel experts and consultants) get involved and play different roles to promote their own agendas Being an emerging industry the structure of the biofuel system shows hybrid forms of governance with many actors As controversies of biofuelsrsquo sustainability develop more issues are added to the agenda giving life to more actors and interests in the governance structure Research shows a shift in power balance as private companies and NGOs increasingly push the agenda The dis-cussions during the conference centered on the complexity of sustain-ability issues calling for mixed governance responses and governance instruments such as standards and certifications which in return need to be followed up with endorsement instruments Given these com-plexities the question is whether the biofuel industry is too difficult to govern as long as the governing systems (for instance the EU) cannot accommodate expectations of all stakeholders

Indirect land use change (ILUC)ILUC is the unintended consequence in terms of more carbon emis-sions due to land use change around the world induced by the expan-sion of croplands for biofuel production When land that could be used to grow food and feed crops is used to grow energy crops this leads to existing agricultural production moving to another area or country where land is converted When this land is cleared and converted to cropland and because natural lands (rainforests and grasslands) store and sequester carbon in their soil and biomass a net increase in GHG emissions can occur Due to this change in the carbon stock of the soil and the biomass ILUC has consequences in the GHG balance of a biofuel Adding to this complexity models for ILUC calculations are not mainstreamed and thus difficult to assess internationally

25CSQ

Mellemfolkeligt Samvirke (MS) or Action Aid Denmark is a Danish NGO founded back in 1944 The

organizations key objective is to fight poverty by ensuring greater political influence for the worldrsquos poor and margin-alized at the local national and international levels MS works to bring about long-term development in the worldrsquos poorest countries focusing especially on education co-

operation and the ability to organize MS mainly works in Africa Read more about the organizationrsquos work

at wwwactionaiddk

Action Aid

A private sector view on the future of sustainable biofuels

By Barbara Louise Bech Department of Business and Politics CBS

nergy security continues to be an eminent concern in a world of finite resources For a long time biofuels have been viewed as

one of the key solutions to replace our dependency on fossil fuels and battle climate change but in recent years controversy has contested the sustainability of first generation biofuels based on food stock Issues such as lack of environmental safeguards causing loss of biodiversi-ty and deforestation and lack of social safeguards ensuring land and labor rights in producer (developing) countries have been claimed as key impediments to sustainable biofuel production Critical observers also argue that the emission savings of biofuel use in compar-ison to fossil fuels can become much smaller (or even disappear) when indirect land use change (ILUC) is included in the calculations Furthermore bi-omass production from food stock is argued to compete with food production and in-creasing food prices

The Danish NGO Action Aid has been engaged in biofuels since 2008 and is par-ticularly involved in protecting womenrsquos rights and preventing land grabs in de-veloping countries ldquoWe are very concerned about land use when it comes to first genera-tion biofuels This relates both to the people who are dependent on the land and to food security We rarely see good combinations where the local populationrsquos needs are taken into consideration The energy crops grown on the local farmerrsquos land donrsquot benefit him and local consumption is essential for developmentrdquo explains Kirsten Hjoslashrnholm Soslashrensen political advisor Action Aid Denmark

It is therefore believed by many that second generation biofuels is the only way forward to avoid competition with food and avert ILUC Next generation biofuels is based on lignocellulosic biomass such as agricultural and household waste and forest residues The Biorefining Alliance represents a cluster of leading Danish companies within the renewable energy sector with an ambition to promote second gener-

ation biofuels and make Denmark a world leader of technology and bi-ofuel productionldquoDenmark has very strong competencies in green tech and as a society we have put a lot of money in its development This is go-ing to be a huge deal globally so we are asking whether Denmark wants to be a customer or a producer What we are working for is of course that we become a lead exporter of technology but also that Denmark produces second generation biofuels commercially Even though we are a small country we cannot settle on selling know-how Denmark also needs to have some industrial productionrdquo says Anne Grete Holmsgaard di-

rector of Biorefining Alliance In her view Denmark needs to keep a firm grip on developing innovation or it will slowly but

steadily move out of the country In this regard she views sustainability criteria for biofuels as an in-

novator and not a hindrance

The Sustainable Biofuels Network (SBN) is another cluster of private companies trying to facilitate the transition from fossil fuels to biofuels in the transport sector For the aviation industry biofuels are considered

to be the only alternative to fossil fuels and the industry firmly believes that biofuels will

survive according to Robert Arendal chairman of SBN ldquoThe aviation industry has set very clear

guidelines for the use of biofuels We are not going to use food based biofuels and we will minimize the use of fresh

water By 2050 our target is to use 50 biofuels in the global aviation so we really need to move fastrdquo he explains adding that living up to sustainability criteria includes being careful about where biofuels are produced ldquoBut it should be produced all over the world and close to the 1600 airports worldwide that account for 95 of all aviationrdquo

he technology for second generation biofuels is already here but the problem is that production costs are too high and there is no market As long as prices are not competitive with conventional fuels it will be difficult to move forward ldquoOne might ask why there is no market The customers are certainly there so if I was in the business of producing

E

As part of the COBREN international conference on sustainable biofuels private sector civil society and academia were invited to give their views on sustainable biofuels at a roundtable discussion at an open public seminar held at DIIS November 19 2012

Event

26 CSQ

SBN is a ldquobreeding groundrdquo and ldquoknowledge centerrdquo for the biofu-els industry where synergies are created between all parties within

the biofuels sector SBN focuses in promoting supporting and enabling the commercial development and use of clean and sustainable biofuels for Heavy Road Transportation Shipping and Aviation Emphasis is put on the importance of global standards for biofuels with local as well as international institutions and decision makers to encourage con-

structive guidelines and rules for the development of biofuels SBN adheres to EUrsquos sustainability criteria SBN is a non-profit asso-

ciation established in 2008 Visit their website for more info at wwwsustainablebiofulsdk

Sustainable Biofuels Network(SBN)

The Biorefining Alliance (BA) was founded December 2011 by DONG Energy Novozymes Haldor Topsoslashe and the

Danish Agriculture and Food Council and is a three-year project to politically promote Denmarkrsquos position in the entire value chain from residues to bio-based products The Alliance has set forth a number of recommendations to achieve a sustainable Danish bio-economy Among other these include (i) that all organic

waste be considered a resource (high-value recycling and storable energy) (ii) reducing the cost of manufacturing 2G

bioethanol and (iii) contemplating the establishment of a national center for sustainable materials

Biorefining Alliance

second generation biofuels I would get started right awayrdquo says Robert Arendal The Biorefining Alliance is working on lowering the costs and recommends a stronger regulatory framework with binding targets as it has been done for the wind industry ldquoThere already is a market for first generation biodiesel which is the least sustainable biofuel We need to make a market for second generation biofuels and we know that binding targets work I donrsquot think it is possible to create a market for the lsquogreen consumerrsquo as you have one for organic food products but I believe that a niche market for HRT (Heavy Road Transport red) such as public bus transport could be a supplementrdquo concludes Anne Grete Holmsgaard

How the future for sustainable biofuels will shape depends on political will to create a market for second generation and the ability of private sector to innovate and bring prices down Oil production is claimed by some to already have peaked and exploring new geographical areas for extraction could be as costly as kick-starting the market for second generation biofuels although much less sustainable As the American ecologist and environmentalist Bill McKibben wrote in his book ldquoDeep Economyrdquo back in 2007

Even before we run out of oil wersquore running out of planetrdquoldquo Bill McKibben

27CSQ

The Transparency-Sustainability NexusA workshop on the practices meanings and tensions of organiza-

tional transparency

n December 5 2012 the Department of Intercultural Communication and Management (ICM) hosted an in-

ternational workshop supported by CBS Sustainability Plat-form and ICM The workshop was organized by Oana Brindusa Albu Mikkel Flyverbom and Hans Krause Hansen respectively PhD Fellow and Associate Professors at ICM The idea of the workshop was spurred by the observation that while ideals of transparency like lsquoopennessrsquo lsquodisclosurersquo and lsquoreportingrsquo are pro-liferating these years the actual construction of transparency within and across organizations is poorly understood Most re-search on transparency is highly normative if not celebratory just as popular discourse about transparency not least in the areas of sustainability and corporate social responsibility is obsessed with ideals of accountability performance and effi-ciency and pervaded by an optimism currently pushed to its extreme with the explosion of new media technologies

But the truth is that we generally know very little about the implications of ideals of transparency when translated into practice in specific issue areas and organizational contexts Importantly each of the contributions to this workshop clear-ly suggested that the contemporary politics of transparency is much more complex contradictory and dynamic than tradi-tionally recognized All papers examined various aspects of the contemporary obsession with transparency and specifically the increasing use of disclosure techniques within and around or-ganizations the rationales or myths underpinning these meas-ures their intended and unintended consequences including implications for identity-making management and govern-ance practices

Clare Birchall initiated the workshop with a paper titled lsquoThe Cultural Politics of Disclosurersquo highlighting how transparency has been positioned as a superior form of disclosure in popular management and organizational literatures and in policy docu-ments In her account the growing preference for transparency is a consequence not only of the positive qualities seen to be intrinsic to transparency itself but also a response to the per-ceived negative characteristics of other forms of disclosure such as gossip scandal and rumor Lars Thoslashger Christensen (with co-author Joep Cornelissen) then analyzed transparency as one of the foundational myths of modernity myths understood here as descriptions of the world in a narrative form which seeks to produce meaning and direction for a community and its members Such lsquoMyths of Transparencyrsquo sustain numerous organizational practices ndash including openness information provision and auditing But as argued by the authors there are conflicting evidence regarding the capacity of such practices to create insights and understandingThat aspirations and techniques of transparency can have seri-ous repercussions was demonstrated by Peter Skaeligrbaeligk (with co-author Mark Christensen) in the paper entitled lsquoAuditing and the purification of blamersquo which analyzed how auditing auditing practices and institutional entities including the po-liticized environments surrounding them are mobilized and participate in blame games and allocation In his paper titled lsquoQuantification transparency and the costs of reassurancersquo Henrik Vollmer analyzed various dimensions of the role of nu-merical records and signaling in generating transparency trust and mistrust

By Hans Krause Hansen Department of Intercultural Communication amp Management

Event

O

28 CSQ

Some of these aspects were also touched upon in the paper lsquoDisrupted Disclosures The Politics of Visibility and Surveil-lance in the Extractive Industriesrsquo by Hans Krause Hansen (with co-author Julie Uldam) which explored the wider field of visibility and surveillance in which contemporary transpar-ency policies are unfolding with examples from the extractive industries Oana Brindusa Albu in her lsquoTransparency and the organizational self everyday politics of identification in Cooperativesrsquo examined the paradoxical effects of values and practices of transparency on collective identity formation pro-cesses drawing upon her ongoing multi-sited fieldwork in co-operatives Under the heading of lsquoThe Improbability of Secrecyrsquo Mark Fenster analyzed the intersections of secrecy and trans-parency with examples from the US government and its efforts to control information which according to the author does not necessarily stop the flow of information Finally Mikkel Fly-verbom and Christina Garsten examined lsquoThe sway of (big) data ndash calculations and advocacy in the name of transparencyrsquo focusing on the operations of data-based forms of corporate lsquotransparency evangelismrsquo and advocacy through revelation including examples from Center for Global Development and Google

In all the workshop was highly successful in investigating not only the historical and mythical foundations of transparency but also the different practices and forms of transparency that currently shape organizations and a wide variety of issue areas It also provided a reminder of the usefulness of investigating a concept of transparency in relationship to a host of other con-cepts such as secrecy myth gossip blame surveillance visi-bility identity information and knowledge The organizers of the workshop wish to thank all workshop participants for their valuable contributions and the CBS Sustainability Platform and ICM for their support

Hans Krause Hansen

Mikkel Flyverbom

Oana Brindusa Albu

ASSOCIATE PROFESSORPHD (ICM)

ASSOCIATE PROFESSORPHD (ICM)

PHD FELLOW (ICM)

29CSQ

Louise Lyngfeldt Gorm Hansen is a PhD Fellow at the Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) She has a back-ground in Chinese Studies from Copenhagen University (BA) the Asian Studies Program at CBS (BSc) and in International Business Stud-ies and Sustainable Business (MSc) from CBS

The aim of her cross-disciplinary PhD project is to explore how the Chinese hydropower sector works with environmental sustainability and more particularly how the concept is understood and performed in the planning phase of a major dam project in the southwestern Chinese province of Yunnan

The aim of the project is to gain a deeper under-standing of how Chinese firms in the renewable energy sector such as hydropower companies understand and value sustainability as well as how such firms tackle the increasing pressure to deliver socially and environmentally balanced solutions to one of Chinarsquos major challenges lowering CO2 emissions in a time with rapidly rising water and energy demands Theoretically the project draws on - and aims to contribute to ndash a combination of Asian Studies and Science and Technology Studies

PHD FocusLouise Lyngfeldt Gorm Hansen

HYDROPOWER

SUSTAINABILITY

30 CSQ

HYDROPOWER

SUSTAINABILITY IN

CHINAy PhD project combines two of my main research interests China and

environmental sustainability I have studied China for a number of years mainly because of an interest in how the Chinese view sus-tainable development So since finishing my masters I have known that I wanted to study how China plan to tackle a sustainable tran-sition in the years to come I saw my chance when CBS announced PhD scholarships in

DanishEuropean-Chinese social science research in collaboration with the newly es-tablished Sino-Danish Center for Education and Research (SDC) and started my PhD in October 2011My PhD project focuses on the Chinese energy sector more specifically the rapidly growing part of the energy sector engaged in renewable energy Here I examine Chinarsquos second largest source of electricity gene-

eration hydropower In recent years China has become increasingly focused on reduc-ing CO2 emissions While some countries such as the US and Australia are decommis-sioning hydropower dams China is looking to large-scale hydropower construction as one of the solutions to a future clean energy supply This means that hydropower devel-opment plays a central role in Chinarsquos sus-tainable transition

However utilization of hydropower is con-troversial not least in China and has met increasing resistance in recent years particu-larly from Chinese and international NGOs the media as well as the scientific commu-nity Critique is most often focused on how or if social and environmental sustainability can be ensured in such large scale projects as the social and environmental impacts of large scale hydropower development are very complex and difficult to measure More gen-erally the viability of relying on hydropow-er as a future source of energy is also being questioned One of the major concerns here is the overarching issue of climate change ie glaciers shrinking and yearly water runoff decreasing This means less stable water flow for hydropower and less water for other pur-poses such as agriculture water supply for down-stream countries etc

By Louise Lyngfeldt Gorm Hansen Asia Research Centre Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) ndash sinodanishcenterdk

M

Picture from SinoHydro promotion material 2011

Research

31CSQ

In contrast to for example the wind power sector in China in which many foreign com-panies have invested the hydropower sector is dominated by a few large state-owned en-terprises Our knowledge of Chinese state-owned enterprises is still limited and there-fore my PhD project is also part of a larger research project at the Asia Research Centre with focus on Chinese state-owned enter-prises and the reform of the public sector in China

In combining these interests my PhD exam-ines how Chinese state-owned enterprises in the hydropower sector tackle the demand to expand hydropower development to help reduce Chinarsquos CO2 emissions while be-ing under increasing pressure to deliver on sustainability principles in the planning and execution of large scale hydropower pro-jects The pressure comes mainly from NGO organizations the media and the scientific community both at home and from abroad I am conducting a case study focused on a specific river in south-western China which has ndash until now ndash not been fully developed for hydropower and the plans for addition-al hydropower dams on the river are still undergoing assessments The project has continually stalled due to disagreements between Chinese government officials at all levels NGOs the media the increasingly deregulated but still state-owned Chinese hydropower companies and the scientif-ic community However the project has very recently been reopened and so will go through another round of assessments in the near future The case is an excellent example of the complexity of hydropower develop-ment decisions in China but it also highlights some of the social and environmental conse-quences of the global push to decrease CO2 emissions

China plays and will continue to play an increasingly important role globally in the years to come However the country also fac-es enormous challenges - not least regarding the environment These challenges also affect economies in Western Europe - for better or worse My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective so

that we here in Europe and in Denmark can more knowledgably and actively engage with China to help solve some of these difficult challenges that eventually affect us all In do-ing this I contribute to gain a better under-standing of the Chinese perspective on envi-ronmental sustainability that can be of use to companies wanting to engage in the Chinese renewable energy sector

My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective rdquoldquo

Picture of the case-river taken by the author in 2012

32 CSQ

FROM BLUEPRINT TO PRACTICE

ENERGY EFFICIENT CONSTRUCTION

By postdoc researcher Satu Reijonen Department of Organization CBS

In the EU almost one third of CO2 emis-sions are attributed to energy used in the construction and use of buildings (FIEC

2007) It is therefore not surprising that the construction sector has recently been subjected to a substantial amount of policy measures to combat its negative effects on climate change In Denmark the state has posed new thresholds for the energy efficien-cy of new buildings including a plan for con-tinuous improvement in the area This far the industry has responded well to these stricter performance requirements In the future re-quirements will rise to levels that are not that easily achieved in the coming years build-ings will have to use 25 less energy than in year 2008 How can these ambitious goals become business as usual

One of the most discussed ways besides add-on technologies such as windmills and solar panels to enhance the energy efficiency of a building is through an energy efficient phys-ical design In practice this means reduction of energy used for heating cooling down and lighting of the building through an optimal orientation and dimensioning of the build-ing

Integrated energy design contrary to add-on technologies can be achieved on a rath-er modest additional budget This should be good news for the sector that today is eco-nomically pressed Indeed today many low energy building projects claim to use the in-tegrated energy design method (IED) when seeking to meet the most ambitious energy related goals In this commentary I wish to discuss some challenges related to the imple-mentation of this design tool

The integrated energy design method sug-gests that one of the main problems in not achieving energy efficiency is that energy related concerns become integrated into the design process too late The method consists of two elements the first of which addresses the need to bring in energy related knowl-edge throughout the design process It sug-gests that design teams ought to be multidis-ciplinary and that architects engineers and experts should work together either co-lo-cated or in a series of workshops Further-more it suggests systematizing energy quali-ty follow-ups into the design process This is all very relevant and inspiring

Oddly enough a closer look on the actual design practices reveals that few seem to ac-tually follow the method of integrated energy design to the point This poses an interest-ing question about the challenges related to the use of such management technologies as vehicles for increased energy efficiency in construction Maybe it is about time practi-tioners and researchers ask themselves what are the boundaries of and challenges related to the use of these tools ndash and what else is required for organizing for more energy effi-cient building design processes

A revolution of relations

Integrated energy design points to the need to bring energy related expertise into the de-sign process at an earlier point In order to achieve this cooperative practices between different professional groups are advocated for Historically energy experts have most-ly been used to respond to rather advanced architectural plans Shared workshops and co-localization suggest a change in these business as usual relations But are they pos-sible and what type of changes do they ac-tually imply in order to function as wished

Research

33CSQ

Satu Reijonen is postdoctoral scholar at the Department of Organization at CBS In her on-going research project she investigates how architects and energy engineers two different profes-sions cooperate and coordinate their work regarding energy related ques-tions in construction design The ways in which relations between and roles of these professions become consti-tuted through socio-material arrange-ments are a central topics in her work Besides studies of work Satu has con-ducted research on environmentally friendly products and markets

ABOUT SATU RAIJONEN

The initiation of this type of new working forms is certainly beneficial for energy effi-cient design However for several reasons they are more difficult to make work than one would assume While it may sound rea-sonable it is after all a tall order Integrating energy related practices into an environment where different visions professions and in-terests meet and the divide between what one profession does is clearly and historically demarcated is demanding While architects need to make room for the intervention of energy experts into the creative work energy experts have to become capable of working creatively and relate to and follow the visual and aesthetic cues from architects In order to work these kind of changes in the profes-sional roles and relations have to resonate with the skills and visions of individual work-ers not only management level design strat-egies It is not surprising that organizational change scholars remind us of the possibility of loose coupling from the strategies placed at the management level (March 1981) What integrated energy design suggests is a kind of a revolution in the ways in which both the architects and the energy engineers envision their role and space of mobility

Linear tools in an unlinear design process

Integrated energy design suggests that the energy performance of the emerging build-ing design be followed up at certain points during the design process The method de-picts a rather mechanistic and linear under-standing of a design process consisting of phases within which iteration may occur While energy related issues may be dis-cussed as quality goals during these phases the method places a lot of emphasis on the check ups performed in the transition from one phase to another Design processes how-ever can also be characterized in a different manner unlinear exploratory and whirl wind type of practices where clear cut phases hardly exist (Akrich 1992 Van de Ven et al 1999) This also applies to the architectural design processes where the object of the de-sign is emergent (Yaneva 2009) This entails that the product the building may change in unexpected ways during any day of the de-sign process If this alternative description of the design processes is viable delegating energy related issues to some predetermined check up episodes may strike a false accord and indeed be contradictory with the aim of enhancing coordination and cooperation between professional groups What happens in between the predetermined checkups may very well be where the energy efficiency of the building becomes configured and where the intervention from the energy experts

would come most needed Perhaps this is why the best performing projects do not blindly follow the steps of the IED method Check ups however and no doubt play a role in verifying and making visible the energy performance for partners outside the design team

Integrated energy design as many other sus-tainability standards and guidelines make visible systematize and legitimize the ex-istence of environmental management and sustainability issues in organizations and work processes In this such way tools create awareness and legitimacy for environmental and sustainability issues The integrated en-ergy design method also suggests a possible way of thinking about what type of design practice might help us to achieve the stricter energy requirements of the future It howev-er falls short in becoming the change agent it suggests This is hardly surprising as a meth-od or a standard of any kind should only be seen as a possibility or as an opening for an inquiry of what the practice could be about Reconfiguring a well established practice is hard work and it would be foolish to trust that a design method would achieve it by itself What the method does is to alert us of the more profound changes in the pro-fessional roles and relations that is needed in order to enable the change However the method due to its rather mechanical under-standing of the design process may come to work against its own ambition of integrating energy issues into the design work In its quest for integration the method defines at which points in time the architectural and the engineering project has to be checked for its energy performance This approach may lead to bringing in energy related concerns in some artificially created points in a design process which may additionally compart-mentalize energy related issues from where the design really happens

Integrated energy design as many other sustainability standards and guidelines make visible systematize and legitimize the existence of environmental management and sustainability issues in organizations and work pro-cessesrdquo

ldquoLiteratureAkrich M (1992) The De-Scription of Technical Objects in Shaping Technology Building Society Studies in Soci-otechnical Change eds WE Bijker and J Law The MIT Press Cambridge Massachusetts pp 205-224

FIEC 2007 The impacts of buildings on climate change httpwwwbuildingsplatformeuepbd_publicationdocFIEC_Memo_p2919pdf on 1222008

March JG (1981) Footnotes to Organizational Change Administrative Science Quarterly vol 26 No 4 pp 563-577

Van de Ven A D Polley R Garud and SVenkataraman (1999) The innovation Journey Oxford Oxford Univer-sity Press

Yaneva A (2009) The making of a building A pragmatist approach to Architecture Bern Peter Lang

More about integrated energy design(IED)

httpwwwintendesigncomosloIntendnsfAttachmentsGuideline_Version_2pdf$FILEGuideline_Version_2pdf

34 CSQ

The climate challenge in

shipping

ldquoGlobal shipping faces two major challenges both of which are caused by its reliance on fossil fuelsrdquo

By Reneacute Taudal Poulsen Department of Innovation amp Organizational Economics

RENEacute TAUDAL POULSEN

ASSOCIATE PROFESSOR DEPARTMENT

OF INNOVATION AND ORGANIZATIONAL

ECONOMICS COPENHAGEN BUSINESS

SCHOOL

orecasts show that the shipping indus-tryrsquos CO2 emissions will most likely continue to rise in the next two to

three decades as demand for world sea-borne trade will expand At present global shipping accounts for approximately 33 per cent of global CO2 emissions but this share will most probably increase in the coming years if many onshore industries succeed in their aims of reducing emission levels

At the same time rapidly rising fuel costs put heavy strain on shipping company budg-ets Historically and until very recently fuel costs were only a minor concern for ship-ping companies but now they often exceed 60 per cent of variable operational costs Fuel savings made through energy efficiency improvements thus represent a win-win sce-nario for the shipping industry and for so-ciety at large They simply make good sense for everyone

Despite the strong incentives for fuel sav-ings numerous studies have demonstrated that shipping fails to implement cost-ef-fective measures to reduce fuel consump-tion Fuel-saving technologies are readily available in the market and in many cases pay-back periods are very short (less than a year) Changes in operational habits which require few if any investments also hold a significant potential for fuel savings

Global shipping thus holds several classic examples of energy-efficiency gaps Gaps occur wherever cost-effective measures to improve energy efficiency fail to materialize The causes for energy efficiency gaps have been a favourite research topic within the field of energy economics for decades and economists sociologists and political scien-tists have been able to identify several means to bridge the gaps However within the mar-itime domain energy efficiency gaps and the climate challenge remain neglected issues Legal barriers

Shipsrsquo fuel consumption rises steeply with speed Hence slow-steaming or just minor speed reductions can lower consumption and emission levels significantly Since oil prices started to rise rapidly a few years ago shipping companies have indeed resorted to various slow-steaming practices and com-panies which succeed in this regard have been able to gain competitive advantages In other words actors in the industry are trying to bridge the energy efficiency gap However and in spite of the strong price signals from the rising fuel prices a potential for fuel sav-ing through slow steaming still remains

FNew CBS research project

A new three year research project at CBS under-

taken by Reneacute Taudal Poulsen for the Department

of Innovation and Organizational Economics will

examine the climate issues bringing insights from

energy economics and innovation management

into the field of shipping economics The project

which is financed by The Danish Maritime Fund

runs from 2012 to 2015 The project asks why en-

ergy efficiency gaps continue to occur in shipping

and how shipping companies and the maritime

industry at large can use innovative business

models and process innovation to turn the climate

challenge and the rising fuel costs into a business

opportunity Energy efficiency gaps occur both

in daily operations and when investments in new

vessels are made This article will briefly present

two examples of energy efficiency gaps from

the operational level and some of the preliminary

findings of the project

References

Jaffe AB and RN Stavins 1994 lsquoThe energy efficiency gap What does it meanrsquo Energy Policy 22 (110) 804-10IMO 2009 Second IMO GHG Study 2009 London International Maritime OrganizationMoriarty P amp D Honnery 2012 lsquoEnergy efficiency Lessons from transportrsquo Energy Policy 46 1ndash3Poulsen Reneacute Taudal 2012 lsquoEmissions and energy efficiency - the twin challenges for shippingrsquo Mercator Maritime Innovation Research and Education MarchJune 447-454

Reneacute Taudal Poulsen is Associate Professor at the Department of Innovation and Organizational Eco-nomics at CBS He is also affliated with the Centre for Shipping Economics and Innovation at CBS Reneacute Taudal Poulsen holds a PhD degree in marine environmental history from the University of Southern Denmark and he has worked within the field of maritime business studies for the last seven years He has published in such journals as Fisheries Research Business History and Scandinavian Economic History Review

His current research intersts concern the environmen-tal challenges faced by the global shipping industry and business model innovation in the maritime domain

Research

35CSQ

It is clear that shipping companies cannot fully bridge the energy efficiency gap alone In fact factors beyond the control of in-dividual shipping companies and various structural or legal barriers prevent shipping from fully realizing the slow steaming po-tential

Port congestion remains a world-wide prob-lem and causes ships to spend remarkably long periods inactive Despite the financial crisis and the large drop in shipping freight markets after 2008 many loaded vessels sit at anchor outside ports waiting for berths In some cases they wait for a few hours In other cases for days weeks or even months Instead of waiting the ships could have re-duced speeds and saved fuel And the de-livery and the loading of the cargo in port would not have been delayed in any way However in many cases shipping companies or ship operators cannot reduce speed in spite of port congestion

Educational barriers

Energy efficiency gaps in shipping are also evident when the fuel consumption levels of sister ships are compared Even though the vessels are identical and operate in the same waters studies have shown that their fuel consumption may differ by several Decisions made by the crews onboard and by managers in the onshore organizations clearly influence the level of fuel consump-tion For instance if a captain selects only very small course deviation margins when coding the autopilot of the ship the shiprsquos rudder will move frequently to keep the ship on the exact course all the time This will slow down the ship and cause higher fuel consumption than if the captain had allowed for slightly wider margins and the wider margins would not have any effect on the safety of the ship Decisions made by the commercial depart-ments eg on how to crew the vessels how to monitor vessel fuel consumption or which new equipment to install onboard may also

have a large impact on fuel efficiency and emission levels If shipping company man-agers can nurture a fuel saving culture this could potentially make a difference Since 2007 or 2008 shipping companies have in-deed started to facilitate such organizational changes but educational barriers remain a problemOnshore truck drivers are now offered fuel saving courses but fuel-saving is not a major part of the traditional curriculum in nautical schools or in the commercial education of shipping trainees For good reasons the nau-tical educations have focused on maritime safety but this has caused them to neglect the climate challenge in shipping and the is-sue of fuel saving In fact no single nauticaltext book on maritime fuel savings has yet been published and according to teachers and students in the nautical schools this serves as an educational barrier to ener-gy-efficiency improvements The technical level of education for commercial employees in shipping companies may also hinder im-provements in energy-efficiency Some com-

mercial shipping employees may not have sufficient training to fully see and acknowl-edge the consequences of their decisions on fuel consumption In short it seems that fuel awareness and the educational systems have responded more slowly to the climate chal-lenge than the rise in fuel prices may other-wise suggest

For shipping to bridge energy-efficiency gaps education ndash both nautical and com-mercial ones ndash clearly is an area to set in Here the potential for innovative solutions is both evident and pertinent Changing educational systems and awareness is no easy task bearing in mind the global nature of the shipping industry and international crewing of the world fleet It is clear howev-er that educational upgrading is necessary for shipping to effectively address the cli-mate challenge effectively

Charter parties between ship-operators and shippers state a specific time of arrival for the vessel and in order to avoid claims ships proceed to port accordingly regardless of berth availability Experiments with new more flexible charter parties which allow for slow steaming in case of port congestion have recently been made Shipping compa-nies have generally been enthusiastic about this flexibility but often shippers remain skeptical Lack of trust between shippers which need the loading of their cargoes as soon as possible and shipping companies may be a cause for this discrepancy Even in cases where the savings made from slow-steaming are split between shipping companies and shippers shippers have re-mained skeptical Port queuing systems may have a role to play here

Many ports including some of the major container iron ore coal and grain ports serve ships on ldquofirst-come first-servedrdquo ba-sis Ships only receive their ldquoticketrdquo in the

waiting line upon their arrival at the port Again lack of trust between the ship-oper-ators shippers and the port authorities may explain this phenomenon Moreover port authorities currently do not have incentives to change queuing practices because they cannot gain a share in the fuel savings made from slow-steaming

The problem is particularly strong in the major tramp shipping segments of tanker and dry cargo shipping where vessels act as ldquotaxis of the seardquo serving numerous shippers and rarely calling at the same ports If the fleet from a shipping company only calls at a particular port once a year and the compa-ny has very short-term relations to individ-ual shippers building trustful relationships between the parties remains a major chal-lenge Solving this problem and realizing the full potential of slow steaming will require systemic innovation in shipping and port systems and further studies are required to identify possible solutions

36 CSQ

The Wind turbine industry -

Emerging global innovation networks in Europe and China

The wind turbine industry has developed into a global network encompassing a large amount of diverse actors within innovation production and installation of wind turbines across the globe

By Stine Haakonsson and Julia Kirch Hollitsch Department of Business amp Politics CBS

market for wind energy Chinese actors have turned China as a location into another im-portant lsquohubrsquo in this network This has led to new forms of innovation collaborations between European and Chinese actors The result has been a complete re-configuration of the industry over the past decade In the International Business and Economic Geog-raphy literatures the development of global production networks in which lead-firms be-come orchestrators of dispersed production

enmark has traditionally played a key role as an lsquoinnovation hubrsquo and com-

panies in Denmark remain among the lead firms within the wind turbine industry Re-cently the industry has reorganized from being located predominantly in the Triad regions (mainly in Europe and the US) to becoming a globally dispersed industry This development can partly be explained by de-velopments in international and national politics Due to the growth of the Chinese

activities in globalized value chains is well established theoretically as well as empiri-cally In the globalization process lead firms relocate production activities to low cost lo-cations by off-shoring and through vertical disintegration and outsourcing to specialized suppliers Producers of wind turbines are no exception However until recently the mar-ket and innovation activities remained con-centrated in Europe and US

With the recent focus on global politics for a post-carbon society the market for wind tur-bines has experienced an immense growth and a high degree of market globalization New locations have developed into main markets One of these is China which since 2010 has been the largest market for wind turbines in the world (in capacity installed) The globalization process in the wind tur-bine can be explained by a combination of offshoring of production by European lead firms mainly through foreign direct invest-ment and establishment of domestic lead firms in emerging markets In 2010 there were four Chinese-owned companies among the top-10 producers of wind turbines as compared to 2003 where all firms on this list were from Europe and the US

D

Julia Kirch Hollitsch

Stine Haakonsson

Stine Haakonsson and Julia Kirch Hollitsch from Depart-

ment of Business and Politics CBS are engaged in the

Sino-Danish Center for Research and Education (SDC)

project on Wind Energy in China Both research on the

current restructuring of industries and firms at the glob-

al level (outsourcing off shoring global value chains)

In particular their research is on 1) the restructuring of

innovation and RampD activities into global innovation net-

works(GINs)2)thechangingroleofemergingmarkets

(ChinaIndiaBrazilSouthAfrica)intheseemergingGINs

and 3) technology transfer and capability building related

to renewable energy

Research

37CSQ

by adapting their products to the Chinese market and through cost-out development activities in the new locations primarily China

As a result the wind industry is today highly knowledge-intensive and internationalized Due to increased attention and investments in sustainable transition policies and car-bon-reducing technology China has over the past decade developed into a high prior-ity investment area for wind turbines Also Chinese companies are upgrading technol-ogy and innovation from the global firms through integration into GINs Moreover the production and innovation networks for wind energy become highly complex and consist of many different suppliers of com-ponents (blades gear boxes control systems bearings) resulting in a variety of network linkages among suppliers of different com-ponents and the wind turbine producers

From our empirical data including more than 40 in-depth interviews collected in 2011 and 2012 in the wind turbines indus-tries in China and Denmark we have identi-fied some very interesting patterns We have identified very different characteristics of the GINs established by the Chinese wind tur-bine industry and the European wind tur

Emerging Global Innovation Networks

Innovation processes are also moving be-yond the boundaries of individual compa-nies and national innovation systems Firms engage in cross-border innovation networks spanning different innovation systems which may be national regional or sectorial in or-der to stay competitive in the global econ-omy Chinese lead firms are entering this scene too The result is globally organized networks of interconnected and integrated functions and operations by firms and non-firm organizations engaged in the develop-ment and diffusion of innovations so-called Global Innovation Networks (GINs) Lead firms internationalize innovation through strategies of exploitation global generation of innovation and global techno-scientific collaborations Chinese wind turbine pro-ducers ndash acknowledging their resource and capability deficiency ndash pursue strategies of innovation network integration through strategies of global generation of innovation These firms link up with specialized Europe-an actors such as core component suppliers through partnerships and networks in or-der to tap into the technology of firms from developed countries and upgrade Mean-while European companies internationalize through exploitation strategies for example

bine industry Although Danish and Chinese actors are experiencing a re-organization of activities and establish networks and globa-linnovation strategies the result is very dif-ferent

The industry from Europe and US

The industry from Europe and the US hosts the lead firms in terms of core technology de-velopment Denmark has traditionally played a key role as lsquoinnovation hubrsquo in technology development and global lead firms such as Vestas and Siemens Windpower (previously Danish lsquoBonusrsquo) took its start already in the 1970s The core competences of the Danish wind turbine innovation system are based on large testing facilities and long track records mainly due to the long time-line of experi-ence The wind industry goes 40 years back and therefore Denmark has a good knowl-edge pool within establishing wind farms (aerodynamics minimizing power loss in energy transmission wind mapping and other installation-related technologies)

38 CSQ

that will make it possible to finance the pro-jects ldquoFrom then on our wind turbine pro-jects developed very fastrdquo(Interview Wind Engineer Chinese Academy of Sciences) Thus this law was a milestone for elevating renewables to a strategic position in China or as expressed by a European lead-firm ldquoWhat drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick offrdquo

Until the turn of the millennium Chinarsquos wind energy industry was largely built on donors acquisition of finished wind turbines and licensed technology from European companies spread on a very small scale into the local industry during the mid 1990s Chi-nese wind turbine technology has evolved from imitation reverse engineering and licensing in the 1980-90s combined with assistance from foreign consultants One example is how DANIDA funded a project in 1986 for Goldwind in Xinjiang which imported 13 units of 150 kW lsquoBonusrsquo (now Siemens Wind Power) turbines

To get beyond the stage of pure imitation several policies have been introduced with the intent to upgrade Chinese manufacturers to obtain indigenous innovative capabilities Policy programs were introduced to enhance Chinese companies to develop wind energy subsidizing wind energy RampD expenditures at varied levels over time establishing a re-newable energy fund and through the ldquo863 Wind Programrdquo under the Tenth Five-Year Plan (2001-2005) Local content require-ments were put in place in which develop-ers of wind energy projects were required to source 70 pct of the content in China These policies ndash which essentially forced foreign manufacturers wishing to sell wind turbines to the Chinese market to establish China-based manufacturing facilities ndash were only removed recently (in 2009) One result was that the foreign companies had to up-grade local suppliers of components

Due to the technological complexity many European (and hereby also the Danish) firms are vertically integrated and have most com-ponents produced in-house or with regular specialized suppliers According to these companies the different parts need to be well adjusted to each other to some extent even co-developed in order to enhance effi-ciency and the lifetime of the wind turbine Likewise the European industry has expe-rienced a concentration of actors with the result that there are only relatively few but large manufacturers in Europe (the larg-est ones are Vestas Siemens Gamesa and Enercon) Together these four companies accounted for about 35 of the global mar-ket in 2010 By seeing the wind turbine as an integrated system these lead firms aim at producing lsquothe Rolls Roycersquo model wind turbines These are strong in terms of qual-ity and standards but generally expensive These firms learn cost-out techniques from their engagement with partners in China

The Chinese Wind Turbine Industry

Today the Chinese wind turbine industry is overly competitive It entails more than 80 wind turbine manufacturers and the Chi-nese market boasts the highest growth rates internationally with an average growth rate of 968 percentages annually in the last three years Several large domestic Chinese wind turbine manufacturers have emerged within the last decade Sinovel and Goldwind take the largest share followed by United Pow-er and Ming Yang just to mention some of them As of the end of 2010 these four were A major driver for the development of the Chinese wind energy market has been the establishment of an institutional context as a comprehensive concerted policy frame-work addressing the development of renewa-ble energies This change in the institutional context was first reflected clearly in the 11th 5-year-plan (2006-2010) which explicitly linked environmental sustainability to the key goal of establishing what was called a harmonious socialist society signalling a socially environmentally and economically sustainable economy With the Renewable Energy Law from 2005 the Chinese wind energy industry really took off as it explicitly seeks to ensure that renewable energy pro-jects have an outlet for their output at prices

Technical barriers and the role of GINs for a post-carbon society

Despite high ambitions in terms of devel-oping innovative capabilities Chinese pro-ducers still produce almost exclusively for the Chinese market However Chinese wind turbine manufacturers have recently started an internationalisation process and some are approaching international markets Not least for tapping into new knowledge

Europe (and Denmark in particular) is per-ceived as a main location from which the Chinese companies can learn more A cou-ple of Chinese companies have already set up RampD centres in Denmark European firms have also initiated RampD centres in new lo-cations primarily China and India In other words GINs can be identified

Our research also points towards important barriers for GINs in the wind turbine in-dustry and for approaching a post-carbon global society Most importantly are the technological barriers intellectual property rights quality issues and issues of limited appropriability of knowledge Further the institutional framework remain relevant for displaying how the sector and the emerging GINs are embedded institutionally socially and technologically Whether actors trans-act knowledge technology and know-how through cooperative innovation activities also depends on how core the technology of a given technology is Still as the market grows in China it seems to have matured in Europe because of changing policies on re-newable energy To sustain the position as a global lsquohubrsquo and world leader in wind tech-nologies there is a strong need for support in Europe as this research really shows how fast the Chinese industry is moving One major result is how important networks are for upgrading companies and it seems that Chinese firms perform better in network strategies and manage to tap into relevant knowledge than the European firms

What drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick off rdquoldquoInterview Wind Engineer Chinese Academy of Sciences

39CSQ

Social Enterprise World

ForumNadine Koumlcher from 180Degrees recounts her experience from the

conference on

Rio de Janeiro Brazil 2012

In the numerous panel debates and parallel track discussion it became clear that Impact Investment is a hot topic among both social entrepreneurs and impact investors a diverse group consisting of corporations founda-tions and potential donors However various obstacles impede a harmonious relationship between the twoSocial enterprises face structural challenges to make themselves more appealing to im-pact investors They have to become more transparent and increase their accountability This includes improving their impact assess-ment and reporting tools However despite much discussion no consensus could be formed on how to optimally conduct im-pact assessment One of the most frequently proposed methodologies involves the use

From the 16th to the 18th of October the CBS Sustainability Platform granted me the opportunity to attend the 5th Social Enter-prise World Forum which took place in Rio de Janeiro Brazil This yearly international conference focuses on social enterprises and their effectiveness in solving social challeng-es The overall theme of the 2012 conference hosted by NESsT was ldquoSocial Enterprise Investing for Impactrdquo Thus for three days over 180 speakers and 650 delegates from 30 different countries shared their experiences regarding impact investment and discussed possibilities to attract new investment by both the public and the private sector for so-cial enterprises

of control groups Story-telling has also been men-tioned to be a powerful tool to provide investors with a proof of outcomesSocial investors are willing to accept returns just below the market rate in exchange for a social return However large profits are still expect-ed and many social enter-prises are afraid of being unable to generate them Social enterprises typically operate on a small scale and are not used to undertake large projects with huge sums of investment given to them Many are too small for social investors to be

attractive as costs are similar for small and large investments although larger invest-ments have a higher payoff

Nichole Echert the CEO of NESsT there-fore pointed out that it is necessary to align expectations between impact investors and social entrepreneurs and to be patient in establishing a relationship between the two groups The expected financial return has to be reasonable close to covering the costs of operation and social returns have to be re-ported to investors by use of clearer criteria

By Nadine Koumlcher Director of Branch Development180 Degrees Consulting Limited

ldquoSocial Enterprise Investing for Impactrdquo

Students

40 CSQ

A highlight of the con-ference was definitely the site visit to a social enterprise project in a recently pacified fave-la It brought further insights on the great variety of social enter-prises that exist in Bra-zil and their missions and struggles We visit-ed a community center at which Comitecirc para

Democratizaccedilao da Informaacutetica (CDI) uses technology to fight poverty and to stimulate entrepreneurship CDI has formed a corpo-rate partnership with Coca Cola which in the same building teaches young locals how to write a CV and find a job Talking to the young locals at the center it became apparent that an increased self-confidence and the in-spiration they get from meeting former now employed participants of the project (eg at Coca Cola) is what they valued most of being part of the class

Participating at the conference was definite-ly a unique and valuable experience I would not want to miss as I tremendously improved my knowledge in the field of social enter-prises through attending the numerous pres-entations and discussions and further met so many inspiring social entrepreneurs impact

In addition it has been stressed that the problem is not a shortage of investment capital (even though the government could promote more impact investment by for instance granting tax breaks) but how to deploy it Social entrepreneurs also have to be aware of the different advantages and dis-advantages of the various types of capital It has to fit their process of establishment and it has therefore been suggested that funds and grants are most optimal in the start-up phase to cover such costs as capacity train-ing There is generally a lack of this early stage financial support Following the initial phase strategic philanthropy money would be most appropriate before impact and final-ly equity investment is sought Furthermore new ways of investment which fit the social enterprise world have to be created replac-ing the current situation of trying to fit social enterprises into the current financial world

investors and students with a genuine inter-est in the field

Participating at the conference was definitely a unique and valuable experience rdquo

ldquo

Social Enterprise World Forum 2013 in

Calgary Canada

The TRICO Charitable Foundation in part-nership with the Social Enterprise Council of Canada and the Social Finance Forum has been selected to host the 6th Annual Social Enterprise World Forum SEWF 2013 will take place October 2-4 2013 in Calgary Al-berta The Forum will present the Canadian social enterprise movement with opportuni-ties to engage learn and share on the inter-national stage

SEWF 2013 will be a gathering of over 1000 Canadian and international delegates who are involved in the social enterprise move-ment where the blending of social and fi-nancial values is core to business Attendees will consist of practitioners (from all sec-tors) funders investors supporters elected officials and public servants from around the world

Nadine Koumlcher

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 19: CBS Sustainability Quarterly 2013 #1

19CSQ

A value adding partnership

The match-making event was kick-started by Professor Andreas Rasche who gave a short speech on trends in the field of sustainability and social responsibility Likewise thesis con-sultant Vibeke Ankersborg rounded off the event by guiding both students and organisa-tion representatives in the right direction of obtaining a value adding thesis partnership

By facilitating integration of the theoretical knowledge pool at CBS with real-life busi-ness cases and their challenges this initiative underpins CBSrsquos Responsible Management Education profile ldquoAddressing societal chal-lenges in interaction with business is a key element in our Business in Society strategy and we hope to set up a similar initiative in the futurerdquo Lene Mette Soslashrensen PRME Manager CBS

Being able to engage in a thesis partnership gives us the opportunity to get new and fresh eyes on the challenges and opportunities we face in the aspiration of sus-taining Copenhagenrsquos position as marked leader within sustainable meetings and events ndash and the other way around we see it as a positive contribution to help young students to gain in-depth knowledge on how we actually work with sustainability in practicerdquo

Ulrika Maringrtensson senior communication consultant Wonderful Copenhagen

ldquo

Case Companies

20 CSQ

Update from CBS Centre for Corporate Social Responsibility

cbsCSR celebration10 years anniversaryOn Thursday November 22 2012 CBS Centre for Corporate Social Responsibility (cbsCSR) celebrated its 10 years anniversary The guest list included prominent guests from both academia and the corporate world Head of Department Dorte Salskov-Iversen President Per Holten-Andersen and cbsCSR Director Esben Rahbek Pedersen bid all a warm welcome to an afternoon of inspirational talks and celebration of the Centre

Susanne Stormer followed and initiated her presentation with a brief recap of Novo Nor-diskrsquos history and continuous development of corporate sustainability practices She em-phasized how Novo Nordisk with the help of Professor Ed Freeman has prioritized a close relationship with their stakeholders and learning with them as a means to reach a higher level of corporate sustainability An additional key take-away from Susanne Stormer was the notion of transformational partnerships She argued that corporations NGOs and other stakeholders should use each other to form transformational partner-ships instead of just transactional partner-ships She claimed that in order to address and solve the problems in todayrsquos world the issues have to be addressed at the roots ndash in cooperation with stakeholders

The program had been divided into two ses-sions Each session ended with a panel dis-cussion that gave the audience the opportu-nity to track the developmental trajectory of CSR and participate in the discussion of the future direction of CSR

In the first session which focused on the history of CSR Professor Lucia Reisch from Department of Intercultural Communica-tion and Management CBS Susanne Storm-er VP of Corporate Sustainability at Novo Nordisk and Professor Gail Whiteman from Rotterdam School of Management present-ed their perspectives on the development of CSR up until nowProfessor Lucia Reisch set the stage with an enlightening introduction to the history of sustainable development and emphasized balance on the triple bottom line as key

Professor Gail Whitemanrsquos presentation highlighted both the past and the future of CSR Her main topic was how to deal with planetary boundaries She drew attention to inherent implications of teaching sustaina-bility and CSR at a business school and ar-gued that in order for students and business executives to understand the implications of planetary boundaries and their importance classes should be taught in nature

In the second session Annette Stube Head of Group Sustainability in AP Moller ndash Maersk Simon Pickard Director General at ABIS and Professor Andreas Rasche from cbsCSR presented their views on the future of CSR

Updates from partner organizations at CBS

21CSQ

The topics in the second panel debate evolved around some of the same issues as in the first panel debate The audience was very interested in the educational aspect of CSR and sustainability and a discussion fol-lowed concerning the issues of lsquopreaching to the convertedrsquo Research shows that 75 of CSR courses are not mandatory 1 thus those students and executives who have a natural interest in CSR and sustainability enroll for these courses The speakers agreed that this posed a challenge for the future and that business schools might have to re-invent themselves in this regard They stressed that it is crucial that CSR and sustainability courses become mandatory Also the prac-titioners advocated in-company learning They set forth the argument that it may be a long time before current students will have sufficient impact on the corporate sector but also because the corporate sector and the ac-ademic world can learn from one another

Sum-up of key perspectives for the future

So how has lsquothe business of business really changedrsquo and in what direction From the afternoonrsquos discussions there were two recur-ring topics Susanne Stormer briefly touched upon it when she talked about transforma-tional partnerships Annette Stube and AP

Annette Stube set forth the argument that ldquothe business of business has really changedrdquo She gave an example of how AP Moller ndash Maersk should use their position in the shipping industry to facilitate substantial changes Simon Pickard supported her argu

ment stating that it is not possible for single corporations to make a difference but that clusters of corporations have to collaborate to push changes If corporations do not join forces they risk only making incremental changes Simon Pickard further argued paraphrasing Andrew Pettigrewrsquos argument that in the course of time there has been a conceptual change in the argument for CSR He pointed to the fact that it started out as a moral or philanthropic enterprise and is now perceived as a governance case Simon Pickard pointed to the fact that the future of business is to create shared value ie creat-ing economic value that also creates value for society at large Building on these re-marks Andreas Rasche discussed the future of standards and codes in the field of CSR Emphasizing a variety of case examples he argued that while standards have proliferated in recent years eg certification schemes in the global coffee and apparel industries there is a need to more actively manage the co-ex-istence of these initiatives in order to avoid overlap Rasche also highlighted the pivotal role of consumers who need to acknowledge standards and labels as market signals and factor social and environmental concerns into purchasing decisions

Moller ndash Maersk has it as an integrated and crucial part of their CSR policies and Simon Pickard highlighted how instrumental the-ories are no longer enough The concept of shared value is inescapable and it is what the lsquobusiness of businessrsquo in the early 21st centu-ry is really about

A second topic which also attracted a lot of attention was the importance of continuous education of both lsquothe convertedrsquo but also of opponents of CSR and people who are not aware of the importance of CSR and sustain-ability In-company learning was depicted as a crucial part of the development of CSR and sustainability however a physical change in the teaching settings is also required to meet the approaching environmental challenges

Centre Director Esben Rahbek Pedersen concluded the conference and the winners of the prize of 25000 DKK to participate in the IBECC case competition in San Diego in May 2013 were announced and the celebra-tion of cbsCSR ended with a reception

Thank you to all the speakers moderators and guests for an inspirational afternoon

By Elise Lind Jacobsen and Line Pedini Rasmussen cbsCSR

1Rasche A Gilbert DU and Schedel I (2013) Cross-Disciplinary Ethics Education in MBA Programs Rhetoric or Reality Academy of Management Learning and Education (forthcoming)

Three of the keynote speakers (from left) Professor Gail Whiteman from Rotterdam School of Management VP of Corporate Sustainability at Novo Nordisk Susanne Stormer and Sustaina-bility Professor at CBS Lucia Reisch

Simon Pickard Director General at ABIS

22 CSQ

UPDATE FROM

CBS GOES GREENThe Green Associate Program

2012 was an exciting year for CBS Goes Green with many great achievements One of the new initiatives that was launched in 2012 was the Green Associate Program Here CBS students were able to volunteer in a program to support sustainable behavior among students and staff at CBS More precisely 25 CBS stu-dents put in 30 hours of voluntary work to help with the planning and execution of Green Week - a week consisting of a lineup of successful companies shar-ing their sustainable initiatives and thoughts The overwhelming interest in sustainability and sustain-able business among the students has made it evi-dent that the Green Associate Program should con-tinue in 2013 We at CBS Goes Green look forward to this as well as all of the other initiatives we will be conducting in 2013

The following is an extract of an article that three of the associates wrote themselves This extract shows the associatesrsquo own experience working with CBS Goes Green

What does it mean to be an

associate with CBS Goes Green

In Week 39 CBS turned into a plethora of green initia-tives and events in order to make CBS reach its sustaina-bility goals for 2020 Both students and employees at CBS were asked to become a Green Ambassador to help CBS be smarter greener and better

But many of you may wonder how it is to be one of the people behind the scene As associates we have been help-ing out before and during Green Week in order to establish an event that would reach all corners of CBS This has re-quired both time and effort in order to make things work out but in the end there are also a lot of gains from being an associate

Firstly as an associate you get to expand your network You get to work with people from different studies countries and ages and you also get to talk to many different people while promoting

A bonus about being an associate is also that you get an official certificate which can be attached to your resume This shows that you have put an effort into making Green Week happen

Furthermore by being an associate you feel like you have a larger impact on making CBS a greener place Instead of being an ambassador and only doing the things you can do you get to be the person who raises awareness about sustainability You may influence people to make the right choices and it makes you feel good

Lastly it also gives you a feeling of responsibility because you work under an official part of CBS CBS Goes Green ndash a unit with a clear agenda and a clear vision

By Michael Nguyen Christian Charity and Christian-Philip Lundahl

Updates from partner organizations at CBS

23CSQ

International conference on sustainable biofuels presents latest research

By Barbara Louise Bech Department of Business and Politics CBS

EU Renewable Energy Directive

In 2009 the EU RED set a mandatory target for member states to use a minimum of 10 renewable energy sources in the transport sector by 2020 of which biofuels is expected to be the main contributor This is part of a policy to cut greenhouse gas emissions promote the green technology sector develop rural areas and reduce dependency on fos-sil fuels Due to increasing controversies claiming lack of sustainability in first generation biofuels based on food crops recently the EU pro-posed an amendment to the Directive limiting the share of first gener-ation biofuels to 5 of the targeted 10

The debate quickly zoomed in on the sustainability criteria as outlined in the EU RED drawing attention to the lack of social safeguards The general consensus is that the concept of sustainability is too narrow-ly defined Several case studies (Mozambique Brazil and Indonesia) show that basic labor and human rights of local populations are not protected by RED and the directive is more viewed as an environmen-tal safeguard This discussion raised questions in regard to the effects of RED globally (eg sustainable production in developing countries) and in this context whether EU legislation can have a lsquotrickle downrsquo effect on national standards of nation-states outside the EU In this re-gards one could ask if enforcement at the local level falls under the re-sponsibility of the EU but since first generation biofuels are produced outside the EU it is an important issue for European consumers ndash al-though interest is currently mainly driven by NGOs

On November 19-20 2012 the Copenhagen Biofuels Research Network (COBREN) held an international conference on sustainable biofuels inviting 30 research-ers from around the world to present and discuss their latest research During the two day conference focus was the sustainability criteria of the EU Renewable Energy Directive (RED) voluntary certification schemes and their impacts on sustainability and social safeguards in producer (developing) countries in particular and governance complexity of the biofuel system which has grown considerably over the past decade

Rough guide to biofuelsThere are two types of biofuels biodiesel and ethanol First generation biofuels (1G) are based on food crops and feed stocks such as palm oil soybean and rapeseed used for the production of biodiesel and sugarcane and corn for ethanol The produc-tion of biofuels increased heavily in the 2000s questioning the sustainability of 1G A number of issues have been claimed as key impediments to sustainable biofuel production such as deforestation competition with food production and increasing food prices loss of biodiversity lack of social and environmental safeguards and indirect land use change (ILUC) These contro-versies have led to a call for the promotion of second generation biofuels (2G) which are typically based on agricultural waste (eg straw) plants and forestry residues (also called lignocellu-losic biomassmaterials) However the immediate problem is that there is yet to be developed a market for 2G as they are more costly to produce (require longer and more complex production process)

CBS Sustainability Platform co-director and organizer of the COBREN conference Stefano Ponte doing a presentation

Event

24 CSQ

Voluntary certification schemes

In relation to how standards and certifications can impact sustainable biofuel production discussions pointed to the important difference be-tween mandatory and voluntary schemes As the controversy of sus-tainable biofuels in particular first generation is rolling out special attention has been given to biofuel production competing with food production ILUC value of emissions reduction and environmental and social issues This have off sprung a proliferation in private certifi-cations and during the conference it was discussed intensely whether these schemes have an actual effect on sustainability Depending on the point of view certifications can fill out the holes in legislation and act as a tool to force companies to comply with sustainability crite-ria However the development processes of new certifications may not be inclusive of relevant stakeholders (eg representatives of local populations) Additionally the nature and governance of the networks steering these processes is not always transparent and may favor one interest over the other This intense discussion led to the question of the purpose of certifications Can we use them for anything other than as a CSR PR tool as long as consumer awareness is as low as it is and how do the different regional drivers influence sustainability as a concept The answers to these questions are not easily found and it will be interesting to observe the future development and partnership between public and private sector

Governing the biofuel industry

Within the past decade biodiesel production has risen from below 30PJ in 2000 to 572PJ in 2009 globally and fuel ethanol production has increased from 340PJ to 1540 PJ respectively As the market expands more actors eg governments international organizations civil soci-ety and NGOs private sector networks and companies and profes-sions (biofuel experts and consultants) get involved and play different roles to promote their own agendas Being an emerging industry the structure of the biofuel system shows hybrid forms of governance with many actors As controversies of biofuelsrsquo sustainability develop more issues are added to the agenda giving life to more actors and interests in the governance structure Research shows a shift in power balance as private companies and NGOs increasingly push the agenda The dis-cussions during the conference centered on the complexity of sustain-ability issues calling for mixed governance responses and governance instruments such as standards and certifications which in return need to be followed up with endorsement instruments Given these com-plexities the question is whether the biofuel industry is too difficult to govern as long as the governing systems (for instance the EU) cannot accommodate expectations of all stakeholders

Indirect land use change (ILUC)ILUC is the unintended consequence in terms of more carbon emis-sions due to land use change around the world induced by the expan-sion of croplands for biofuel production When land that could be used to grow food and feed crops is used to grow energy crops this leads to existing agricultural production moving to another area or country where land is converted When this land is cleared and converted to cropland and because natural lands (rainforests and grasslands) store and sequester carbon in their soil and biomass a net increase in GHG emissions can occur Due to this change in the carbon stock of the soil and the biomass ILUC has consequences in the GHG balance of a biofuel Adding to this complexity models for ILUC calculations are not mainstreamed and thus difficult to assess internationally

25CSQ

Mellemfolkeligt Samvirke (MS) or Action Aid Denmark is a Danish NGO founded back in 1944 The

organizations key objective is to fight poverty by ensuring greater political influence for the worldrsquos poor and margin-alized at the local national and international levels MS works to bring about long-term development in the worldrsquos poorest countries focusing especially on education co-

operation and the ability to organize MS mainly works in Africa Read more about the organizationrsquos work

at wwwactionaiddk

Action Aid

A private sector view on the future of sustainable biofuels

By Barbara Louise Bech Department of Business and Politics CBS

nergy security continues to be an eminent concern in a world of finite resources For a long time biofuels have been viewed as

one of the key solutions to replace our dependency on fossil fuels and battle climate change but in recent years controversy has contested the sustainability of first generation biofuels based on food stock Issues such as lack of environmental safeguards causing loss of biodiversi-ty and deforestation and lack of social safeguards ensuring land and labor rights in producer (developing) countries have been claimed as key impediments to sustainable biofuel production Critical observers also argue that the emission savings of biofuel use in compar-ison to fossil fuels can become much smaller (or even disappear) when indirect land use change (ILUC) is included in the calculations Furthermore bi-omass production from food stock is argued to compete with food production and in-creasing food prices

The Danish NGO Action Aid has been engaged in biofuels since 2008 and is par-ticularly involved in protecting womenrsquos rights and preventing land grabs in de-veloping countries ldquoWe are very concerned about land use when it comes to first genera-tion biofuels This relates both to the people who are dependent on the land and to food security We rarely see good combinations where the local populationrsquos needs are taken into consideration The energy crops grown on the local farmerrsquos land donrsquot benefit him and local consumption is essential for developmentrdquo explains Kirsten Hjoslashrnholm Soslashrensen political advisor Action Aid Denmark

It is therefore believed by many that second generation biofuels is the only way forward to avoid competition with food and avert ILUC Next generation biofuels is based on lignocellulosic biomass such as agricultural and household waste and forest residues The Biorefining Alliance represents a cluster of leading Danish companies within the renewable energy sector with an ambition to promote second gener-

ation biofuels and make Denmark a world leader of technology and bi-ofuel productionldquoDenmark has very strong competencies in green tech and as a society we have put a lot of money in its development This is go-ing to be a huge deal globally so we are asking whether Denmark wants to be a customer or a producer What we are working for is of course that we become a lead exporter of technology but also that Denmark produces second generation biofuels commercially Even though we are a small country we cannot settle on selling know-how Denmark also needs to have some industrial productionrdquo says Anne Grete Holmsgaard di-

rector of Biorefining Alliance In her view Denmark needs to keep a firm grip on developing innovation or it will slowly but

steadily move out of the country In this regard she views sustainability criteria for biofuels as an in-

novator and not a hindrance

The Sustainable Biofuels Network (SBN) is another cluster of private companies trying to facilitate the transition from fossil fuels to biofuels in the transport sector For the aviation industry biofuels are considered

to be the only alternative to fossil fuels and the industry firmly believes that biofuels will

survive according to Robert Arendal chairman of SBN ldquoThe aviation industry has set very clear

guidelines for the use of biofuels We are not going to use food based biofuels and we will minimize the use of fresh

water By 2050 our target is to use 50 biofuels in the global aviation so we really need to move fastrdquo he explains adding that living up to sustainability criteria includes being careful about where biofuels are produced ldquoBut it should be produced all over the world and close to the 1600 airports worldwide that account for 95 of all aviationrdquo

he technology for second generation biofuels is already here but the problem is that production costs are too high and there is no market As long as prices are not competitive with conventional fuels it will be difficult to move forward ldquoOne might ask why there is no market The customers are certainly there so if I was in the business of producing

E

As part of the COBREN international conference on sustainable biofuels private sector civil society and academia were invited to give their views on sustainable biofuels at a roundtable discussion at an open public seminar held at DIIS November 19 2012

Event

26 CSQ

SBN is a ldquobreeding groundrdquo and ldquoknowledge centerrdquo for the biofu-els industry where synergies are created between all parties within

the biofuels sector SBN focuses in promoting supporting and enabling the commercial development and use of clean and sustainable biofuels for Heavy Road Transportation Shipping and Aviation Emphasis is put on the importance of global standards for biofuels with local as well as international institutions and decision makers to encourage con-

structive guidelines and rules for the development of biofuels SBN adheres to EUrsquos sustainability criteria SBN is a non-profit asso-

ciation established in 2008 Visit their website for more info at wwwsustainablebiofulsdk

Sustainable Biofuels Network(SBN)

The Biorefining Alliance (BA) was founded December 2011 by DONG Energy Novozymes Haldor Topsoslashe and the

Danish Agriculture and Food Council and is a three-year project to politically promote Denmarkrsquos position in the entire value chain from residues to bio-based products The Alliance has set forth a number of recommendations to achieve a sustainable Danish bio-economy Among other these include (i) that all organic

waste be considered a resource (high-value recycling and storable energy) (ii) reducing the cost of manufacturing 2G

bioethanol and (iii) contemplating the establishment of a national center for sustainable materials

Biorefining Alliance

second generation biofuels I would get started right awayrdquo says Robert Arendal The Biorefining Alliance is working on lowering the costs and recommends a stronger regulatory framework with binding targets as it has been done for the wind industry ldquoThere already is a market for first generation biodiesel which is the least sustainable biofuel We need to make a market for second generation biofuels and we know that binding targets work I donrsquot think it is possible to create a market for the lsquogreen consumerrsquo as you have one for organic food products but I believe that a niche market for HRT (Heavy Road Transport red) such as public bus transport could be a supplementrdquo concludes Anne Grete Holmsgaard

How the future for sustainable biofuels will shape depends on political will to create a market for second generation and the ability of private sector to innovate and bring prices down Oil production is claimed by some to already have peaked and exploring new geographical areas for extraction could be as costly as kick-starting the market for second generation biofuels although much less sustainable As the American ecologist and environmentalist Bill McKibben wrote in his book ldquoDeep Economyrdquo back in 2007

Even before we run out of oil wersquore running out of planetrdquoldquo Bill McKibben

27CSQ

The Transparency-Sustainability NexusA workshop on the practices meanings and tensions of organiza-

tional transparency

n December 5 2012 the Department of Intercultural Communication and Management (ICM) hosted an in-

ternational workshop supported by CBS Sustainability Plat-form and ICM The workshop was organized by Oana Brindusa Albu Mikkel Flyverbom and Hans Krause Hansen respectively PhD Fellow and Associate Professors at ICM The idea of the workshop was spurred by the observation that while ideals of transparency like lsquoopennessrsquo lsquodisclosurersquo and lsquoreportingrsquo are pro-liferating these years the actual construction of transparency within and across organizations is poorly understood Most re-search on transparency is highly normative if not celebratory just as popular discourse about transparency not least in the areas of sustainability and corporate social responsibility is obsessed with ideals of accountability performance and effi-ciency and pervaded by an optimism currently pushed to its extreme with the explosion of new media technologies

But the truth is that we generally know very little about the implications of ideals of transparency when translated into practice in specific issue areas and organizational contexts Importantly each of the contributions to this workshop clear-ly suggested that the contemporary politics of transparency is much more complex contradictory and dynamic than tradi-tionally recognized All papers examined various aspects of the contemporary obsession with transparency and specifically the increasing use of disclosure techniques within and around or-ganizations the rationales or myths underpinning these meas-ures their intended and unintended consequences including implications for identity-making management and govern-ance practices

Clare Birchall initiated the workshop with a paper titled lsquoThe Cultural Politics of Disclosurersquo highlighting how transparency has been positioned as a superior form of disclosure in popular management and organizational literatures and in policy docu-ments In her account the growing preference for transparency is a consequence not only of the positive qualities seen to be intrinsic to transparency itself but also a response to the per-ceived negative characteristics of other forms of disclosure such as gossip scandal and rumor Lars Thoslashger Christensen (with co-author Joep Cornelissen) then analyzed transparency as one of the foundational myths of modernity myths understood here as descriptions of the world in a narrative form which seeks to produce meaning and direction for a community and its members Such lsquoMyths of Transparencyrsquo sustain numerous organizational practices ndash including openness information provision and auditing But as argued by the authors there are conflicting evidence regarding the capacity of such practices to create insights and understandingThat aspirations and techniques of transparency can have seri-ous repercussions was demonstrated by Peter Skaeligrbaeligk (with co-author Mark Christensen) in the paper entitled lsquoAuditing and the purification of blamersquo which analyzed how auditing auditing practices and institutional entities including the po-liticized environments surrounding them are mobilized and participate in blame games and allocation In his paper titled lsquoQuantification transparency and the costs of reassurancersquo Henrik Vollmer analyzed various dimensions of the role of nu-merical records and signaling in generating transparency trust and mistrust

By Hans Krause Hansen Department of Intercultural Communication amp Management

Event

O

28 CSQ

Some of these aspects were also touched upon in the paper lsquoDisrupted Disclosures The Politics of Visibility and Surveil-lance in the Extractive Industriesrsquo by Hans Krause Hansen (with co-author Julie Uldam) which explored the wider field of visibility and surveillance in which contemporary transpar-ency policies are unfolding with examples from the extractive industries Oana Brindusa Albu in her lsquoTransparency and the organizational self everyday politics of identification in Cooperativesrsquo examined the paradoxical effects of values and practices of transparency on collective identity formation pro-cesses drawing upon her ongoing multi-sited fieldwork in co-operatives Under the heading of lsquoThe Improbability of Secrecyrsquo Mark Fenster analyzed the intersections of secrecy and trans-parency with examples from the US government and its efforts to control information which according to the author does not necessarily stop the flow of information Finally Mikkel Fly-verbom and Christina Garsten examined lsquoThe sway of (big) data ndash calculations and advocacy in the name of transparencyrsquo focusing on the operations of data-based forms of corporate lsquotransparency evangelismrsquo and advocacy through revelation including examples from Center for Global Development and Google

In all the workshop was highly successful in investigating not only the historical and mythical foundations of transparency but also the different practices and forms of transparency that currently shape organizations and a wide variety of issue areas It also provided a reminder of the usefulness of investigating a concept of transparency in relationship to a host of other con-cepts such as secrecy myth gossip blame surveillance visi-bility identity information and knowledge The organizers of the workshop wish to thank all workshop participants for their valuable contributions and the CBS Sustainability Platform and ICM for their support

Hans Krause Hansen

Mikkel Flyverbom

Oana Brindusa Albu

ASSOCIATE PROFESSORPHD (ICM)

ASSOCIATE PROFESSORPHD (ICM)

PHD FELLOW (ICM)

29CSQ

Louise Lyngfeldt Gorm Hansen is a PhD Fellow at the Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) She has a back-ground in Chinese Studies from Copenhagen University (BA) the Asian Studies Program at CBS (BSc) and in International Business Stud-ies and Sustainable Business (MSc) from CBS

The aim of her cross-disciplinary PhD project is to explore how the Chinese hydropower sector works with environmental sustainability and more particularly how the concept is understood and performed in the planning phase of a major dam project in the southwestern Chinese province of Yunnan

The aim of the project is to gain a deeper under-standing of how Chinese firms in the renewable energy sector such as hydropower companies understand and value sustainability as well as how such firms tackle the increasing pressure to deliver socially and environmentally balanced solutions to one of Chinarsquos major challenges lowering CO2 emissions in a time with rapidly rising water and energy demands Theoretically the project draws on - and aims to contribute to ndash a combination of Asian Studies and Science and Technology Studies

PHD FocusLouise Lyngfeldt Gorm Hansen

HYDROPOWER

SUSTAINABILITY

30 CSQ

HYDROPOWER

SUSTAINABILITY IN

CHINAy PhD project combines two of my main research interests China and

environmental sustainability I have studied China for a number of years mainly because of an interest in how the Chinese view sus-tainable development So since finishing my masters I have known that I wanted to study how China plan to tackle a sustainable tran-sition in the years to come I saw my chance when CBS announced PhD scholarships in

DanishEuropean-Chinese social science research in collaboration with the newly es-tablished Sino-Danish Center for Education and Research (SDC) and started my PhD in October 2011My PhD project focuses on the Chinese energy sector more specifically the rapidly growing part of the energy sector engaged in renewable energy Here I examine Chinarsquos second largest source of electricity gene-

eration hydropower In recent years China has become increasingly focused on reduc-ing CO2 emissions While some countries such as the US and Australia are decommis-sioning hydropower dams China is looking to large-scale hydropower construction as one of the solutions to a future clean energy supply This means that hydropower devel-opment plays a central role in Chinarsquos sus-tainable transition

However utilization of hydropower is con-troversial not least in China and has met increasing resistance in recent years particu-larly from Chinese and international NGOs the media as well as the scientific commu-nity Critique is most often focused on how or if social and environmental sustainability can be ensured in such large scale projects as the social and environmental impacts of large scale hydropower development are very complex and difficult to measure More gen-erally the viability of relying on hydropow-er as a future source of energy is also being questioned One of the major concerns here is the overarching issue of climate change ie glaciers shrinking and yearly water runoff decreasing This means less stable water flow for hydropower and less water for other pur-poses such as agriculture water supply for down-stream countries etc

By Louise Lyngfeldt Gorm Hansen Asia Research Centre Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) ndash sinodanishcenterdk

M

Picture from SinoHydro promotion material 2011

Research

31CSQ

In contrast to for example the wind power sector in China in which many foreign com-panies have invested the hydropower sector is dominated by a few large state-owned en-terprises Our knowledge of Chinese state-owned enterprises is still limited and there-fore my PhD project is also part of a larger research project at the Asia Research Centre with focus on Chinese state-owned enter-prises and the reform of the public sector in China

In combining these interests my PhD exam-ines how Chinese state-owned enterprises in the hydropower sector tackle the demand to expand hydropower development to help reduce Chinarsquos CO2 emissions while be-ing under increasing pressure to deliver on sustainability principles in the planning and execution of large scale hydropower pro-jects The pressure comes mainly from NGO organizations the media and the scientific community both at home and from abroad I am conducting a case study focused on a specific river in south-western China which has ndash until now ndash not been fully developed for hydropower and the plans for addition-al hydropower dams on the river are still undergoing assessments The project has continually stalled due to disagreements between Chinese government officials at all levels NGOs the media the increasingly deregulated but still state-owned Chinese hydropower companies and the scientif-ic community However the project has very recently been reopened and so will go through another round of assessments in the near future The case is an excellent example of the complexity of hydropower develop-ment decisions in China but it also highlights some of the social and environmental conse-quences of the global push to decrease CO2 emissions

China plays and will continue to play an increasingly important role globally in the years to come However the country also fac-es enormous challenges - not least regarding the environment These challenges also affect economies in Western Europe - for better or worse My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective so

that we here in Europe and in Denmark can more knowledgably and actively engage with China to help solve some of these difficult challenges that eventually affect us all In do-ing this I contribute to gain a better under-standing of the Chinese perspective on envi-ronmental sustainability that can be of use to companies wanting to engage in the Chinese renewable energy sector

My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective rdquoldquo

Picture of the case-river taken by the author in 2012

32 CSQ

FROM BLUEPRINT TO PRACTICE

ENERGY EFFICIENT CONSTRUCTION

By postdoc researcher Satu Reijonen Department of Organization CBS

In the EU almost one third of CO2 emis-sions are attributed to energy used in the construction and use of buildings (FIEC

2007) It is therefore not surprising that the construction sector has recently been subjected to a substantial amount of policy measures to combat its negative effects on climate change In Denmark the state has posed new thresholds for the energy efficien-cy of new buildings including a plan for con-tinuous improvement in the area This far the industry has responded well to these stricter performance requirements In the future re-quirements will rise to levels that are not that easily achieved in the coming years build-ings will have to use 25 less energy than in year 2008 How can these ambitious goals become business as usual

One of the most discussed ways besides add-on technologies such as windmills and solar panels to enhance the energy efficiency of a building is through an energy efficient phys-ical design In practice this means reduction of energy used for heating cooling down and lighting of the building through an optimal orientation and dimensioning of the build-ing

Integrated energy design contrary to add-on technologies can be achieved on a rath-er modest additional budget This should be good news for the sector that today is eco-nomically pressed Indeed today many low energy building projects claim to use the in-tegrated energy design method (IED) when seeking to meet the most ambitious energy related goals In this commentary I wish to discuss some challenges related to the imple-mentation of this design tool

The integrated energy design method sug-gests that one of the main problems in not achieving energy efficiency is that energy related concerns become integrated into the design process too late The method consists of two elements the first of which addresses the need to bring in energy related knowl-edge throughout the design process It sug-gests that design teams ought to be multidis-ciplinary and that architects engineers and experts should work together either co-lo-cated or in a series of workshops Further-more it suggests systematizing energy quali-ty follow-ups into the design process This is all very relevant and inspiring

Oddly enough a closer look on the actual design practices reveals that few seem to ac-tually follow the method of integrated energy design to the point This poses an interest-ing question about the challenges related to the use of such management technologies as vehicles for increased energy efficiency in construction Maybe it is about time practi-tioners and researchers ask themselves what are the boundaries of and challenges related to the use of these tools ndash and what else is required for organizing for more energy effi-cient building design processes

A revolution of relations

Integrated energy design points to the need to bring energy related expertise into the de-sign process at an earlier point In order to achieve this cooperative practices between different professional groups are advocated for Historically energy experts have most-ly been used to respond to rather advanced architectural plans Shared workshops and co-localization suggest a change in these business as usual relations But are they pos-sible and what type of changes do they ac-tually imply in order to function as wished

Research

33CSQ

Satu Reijonen is postdoctoral scholar at the Department of Organization at CBS In her on-going research project she investigates how architects and energy engineers two different profes-sions cooperate and coordinate their work regarding energy related ques-tions in construction design The ways in which relations between and roles of these professions become consti-tuted through socio-material arrange-ments are a central topics in her work Besides studies of work Satu has con-ducted research on environmentally friendly products and markets

ABOUT SATU RAIJONEN

The initiation of this type of new working forms is certainly beneficial for energy effi-cient design However for several reasons they are more difficult to make work than one would assume While it may sound rea-sonable it is after all a tall order Integrating energy related practices into an environment where different visions professions and in-terests meet and the divide between what one profession does is clearly and historically demarcated is demanding While architects need to make room for the intervention of energy experts into the creative work energy experts have to become capable of working creatively and relate to and follow the visual and aesthetic cues from architects In order to work these kind of changes in the profes-sional roles and relations have to resonate with the skills and visions of individual work-ers not only management level design strat-egies It is not surprising that organizational change scholars remind us of the possibility of loose coupling from the strategies placed at the management level (March 1981) What integrated energy design suggests is a kind of a revolution in the ways in which both the architects and the energy engineers envision their role and space of mobility

Linear tools in an unlinear design process

Integrated energy design suggests that the energy performance of the emerging build-ing design be followed up at certain points during the design process The method de-picts a rather mechanistic and linear under-standing of a design process consisting of phases within which iteration may occur While energy related issues may be dis-cussed as quality goals during these phases the method places a lot of emphasis on the check ups performed in the transition from one phase to another Design processes how-ever can also be characterized in a different manner unlinear exploratory and whirl wind type of practices where clear cut phases hardly exist (Akrich 1992 Van de Ven et al 1999) This also applies to the architectural design processes where the object of the de-sign is emergent (Yaneva 2009) This entails that the product the building may change in unexpected ways during any day of the de-sign process If this alternative description of the design processes is viable delegating energy related issues to some predetermined check up episodes may strike a false accord and indeed be contradictory with the aim of enhancing coordination and cooperation between professional groups What happens in between the predetermined checkups may very well be where the energy efficiency of the building becomes configured and where the intervention from the energy experts

would come most needed Perhaps this is why the best performing projects do not blindly follow the steps of the IED method Check ups however and no doubt play a role in verifying and making visible the energy performance for partners outside the design team

Integrated energy design as many other sus-tainability standards and guidelines make visible systematize and legitimize the ex-istence of environmental management and sustainability issues in organizations and work processes In this such way tools create awareness and legitimacy for environmental and sustainability issues The integrated en-ergy design method also suggests a possible way of thinking about what type of design practice might help us to achieve the stricter energy requirements of the future It howev-er falls short in becoming the change agent it suggests This is hardly surprising as a meth-od or a standard of any kind should only be seen as a possibility or as an opening for an inquiry of what the practice could be about Reconfiguring a well established practice is hard work and it would be foolish to trust that a design method would achieve it by itself What the method does is to alert us of the more profound changes in the pro-fessional roles and relations that is needed in order to enable the change However the method due to its rather mechanical under-standing of the design process may come to work against its own ambition of integrating energy issues into the design work In its quest for integration the method defines at which points in time the architectural and the engineering project has to be checked for its energy performance This approach may lead to bringing in energy related concerns in some artificially created points in a design process which may additionally compart-mentalize energy related issues from where the design really happens

Integrated energy design as many other sustainability standards and guidelines make visible systematize and legitimize the existence of environmental management and sustainability issues in organizations and work pro-cessesrdquo

ldquoLiteratureAkrich M (1992) The De-Scription of Technical Objects in Shaping Technology Building Society Studies in Soci-otechnical Change eds WE Bijker and J Law The MIT Press Cambridge Massachusetts pp 205-224

FIEC 2007 The impacts of buildings on climate change httpwwwbuildingsplatformeuepbd_publicationdocFIEC_Memo_p2919pdf on 1222008

March JG (1981) Footnotes to Organizational Change Administrative Science Quarterly vol 26 No 4 pp 563-577

Van de Ven A D Polley R Garud and SVenkataraman (1999) The innovation Journey Oxford Oxford Univer-sity Press

Yaneva A (2009) The making of a building A pragmatist approach to Architecture Bern Peter Lang

More about integrated energy design(IED)

httpwwwintendesigncomosloIntendnsfAttachmentsGuideline_Version_2pdf$FILEGuideline_Version_2pdf

34 CSQ

The climate challenge in

shipping

ldquoGlobal shipping faces two major challenges both of which are caused by its reliance on fossil fuelsrdquo

By Reneacute Taudal Poulsen Department of Innovation amp Organizational Economics

RENEacute TAUDAL POULSEN

ASSOCIATE PROFESSOR DEPARTMENT

OF INNOVATION AND ORGANIZATIONAL

ECONOMICS COPENHAGEN BUSINESS

SCHOOL

orecasts show that the shipping indus-tryrsquos CO2 emissions will most likely continue to rise in the next two to

three decades as demand for world sea-borne trade will expand At present global shipping accounts for approximately 33 per cent of global CO2 emissions but this share will most probably increase in the coming years if many onshore industries succeed in their aims of reducing emission levels

At the same time rapidly rising fuel costs put heavy strain on shipping company budg-ets Historically and until very recently fuel costs were only a minor concern for ship-ping companies but now they often exceed 60 per cent of variable operational costs Fuel savings made through energy efficiency improvements thus represent a win-win sce-nario for the shipping industry and for so-ciety at large They simply make good sense for everyone

Despite the strong incentives for fuel sav-ings numerous studies have demonstrated that shipping fails to implement cost-ef-fective measures to reduce fuel consump-tion Fuel-saving technologies are readily available in the market and in many cases pay-back periods are very short (less than a year) Changes in operational habits which require few if any investments also hold a significant potential for fuel savings

Global shipping thus holds several classic examples of energy-efficiency gaps Gaps occur wherever cost-effective measures to improve energy efficiency fail to materialize The causes for energy efficiency gaps have been a favourite research topic within the field of energy economics for decades and economists sociologists and political scien-tists have been able to identify several means to bridge the gaps However within the mar-itime domain energy efficiency gaps and the climate challenge remain neglected issues Legal barriers

Shipsrsquo fuel consumption rises steeply with speed Hence slow-steaming or just minor speed reductions can lower consumption and emission levels significantly Since oil prices started to rise rapidly a few years ago shipping companies have indeed resorted to various slow-steaming practices and com-panies which succeed in this regard have been able to gain competitive advantages In other words actors in the industry are trying to bridge the energy efficiency gap However and in spite of the strong price signals from the rising fuel prices a potential for fuel sav-ing through slow steaming still remains

FNew CBS research project

A new three year research project at CBS under-

taken by Reneacute Taudal Poulsen for the Department

of Innovation and Organizational Economics will

examine the climate issues bringing insights from

energy economics and innovation management

into the field of shipping economics The project

which is financed by The Danish Maritime Fund

runs from 2012 to 2015 The project asks why en-

ergy efficiency gaps continue to occur in shipping

and how shipping companies and the maritime

industry at large can use innovative business

models and process innovation to turn the climate

challenge and the rising fuel costs into a business

opportunity Energy efficiency gaps occur both

in daily operations and when investments in new

vessels are made This article will briefly present

two examples of energy efficiency gaps from

the operational level and some of the preliminary

findings of the project

References

Jaffe AB and RN Stavins 1994 lsquoThe energy efficiency gap What does it meanrsquo Energy Policy 22 (110) 804-10IMO 2009 Second IMO GHG Study 2009 London International Maritime OrganizationMoriarty P amp D Honnery 2012 lsquoEnergy efficiency Lessons from transportrsquo Energy Policy 46 1ndash3Poulsen Reneacute Taudal 2012 lsquoEmissions and energy efficiency - the twin challenges for shippingrsquo Mercator Maritime Innovation Research and Education MarchJune 447-454

Reneacute Taudal Poulsen is Associate Professor at the Department of Innovation and Organizational Eco-nomics at CBS He is also affliated with the Centre for Shipping Economics and Innovation at CBS Reneacute Taudal Poulsen holds a PhD degree in marine environmental history from the University of Southern Denmark and he has worked within the field of maritime business studies for the last seven years He has published in such journals as Fisheries Research Business History and Scandinavian Economic History Review

His current research intersts concern the environmen-tal challenges faced by the global shipping industry and business model innovation in the maritime domain

Research

35CSQ

It is clear that shipping companies cannot fully bridge the energy efficiency gap alone In fact factors beyond the control of in-dividual shipping companies and various structural or legal barriers prevent shipping from fully realizing the slow steaming po-tential

Port congestion remains a world-wide prob-lem and causes ships to spend remarkably long periods inactive Despite the financial crisis and the large drop in shipping freight markets after 2008 many loaded vessels sit at anchor outside ports waiting for berths In some cases they wait for a few hours In other cases for days weeks or even months Instead of waiting the ships could have re-duced speeds and saved fuel And the de-livery and the loading of the cargo in port would not have been delayed in any way However in many cases shipping companies or ship operators cannot reduce speed in spite of port congestion

Educational barriers

Energy efficiency gaps in shipping are also evident when the fuel consumption levels of sister ships are compared Even though the vessels are identical and operate in the same waters studies have shown that their fuel consumption may differ by several Decisions made by the crews onboard and by managers in the onshore organizations clearly influence the level of fuel consump-tion For instance if a captain selects only very small course deviation margins when coding the autopilot of the ship the shiprsquos rudder will move frequently to keep the ship on the exact course all the time This will slow down the ship and cause higher fuel consumption than if the captain had allowed for slightly wider margins and the wider margins would not have any effect on the safety of the ship Decisions made by the commercial depart-ments eg on how to crew the vessels how to monitor vessel fuel consumption or which new equipment to install onboard may also

have a large impact on fuel efficiency and emission levels If shipping company man-agers can nurture a fuel saving culture this could potentially make a difference Since 2007 or 2008 shipping companies have in-deed started to facilitate such organizational changes but educational barriers remain a problemOnshore truck drivers are now offered fuel saving courses but fuel-saving is not a major part of the traditional curriculum in nautical schools or in the commercial education of shipping trainees For good reasons the nau-tical educations have focused on maritime safety but this has caused them to neglect the climate challenge in shipping and the is-sue of fuel saving In fact no single nauticaltext book on maritime fuel savings has yet been published and according to teachers and students in the nautical schools this serves as an educational barrier to ener-gy-efficiency improvements The technical level of education for commercial employees in shipping companies may also hinder im-provements in energy-efficiency Some com-

mercial shipping employees may not have sufficient training to fully see and acknowl-edge the consequences of their decisions on fuel consumption In short it seems that fuel awareness and the educational systems have responded more slowly to the climate chal-lenge than the rise in fuel prices may other-wise suggest

For shipping to bridge energy-efficiency gaps education ndash both nautical and com-mercial ones ndash clearly is an area to set in Here the potential for innovative solutions is both evident and pertinent Changing educational systems and awareness is no easy task bearing in mind the global nature of the shipping industry and international crewing of the world fleet It is clear howev-er that educational upgrading is necessary for shipping to effectively address the cli-mate challenge effectively

Charter parties between ship-operators and shippers state a specific time of arrival for the vessel and in order to avoid claims ships proceed to port accordingly regardless of berth availability Experiments with new more flexible charter parties which allow for slow steaming in case of port congestion have recently been made Shipping compa-nies have generally been enthusiastic about this flexibility but often shippers remain skeptical Lack of trust between shippers which need the loading of their cargoes as soon as possible and shipping companies may be a cause for this discrepancy Even in cases where the savings made from slow-steaming are split between shipping companies and shippers shippers have re-mained skeptical Port queuing systems may have a role to play here

Many ports including some of the major container iron ore coal and grain ports serve ships on ldquofirst-come first-servedrdquo ba-sis Ships only receive their ldquoticketrdquo in the

waiting line upon their arrival at the port Again lack of trust between the ship-oper-ators shippers and the port authorities may explain this phenomenon Moreover port authorities currently do not have incentives to change queuing practices because they cannot gain a share in the fuel savings made from slow-steaming

The problem is particularly strong in the major tramp shipping segments of tanker and dry cargo shipping where vessels act as ldquotaxis of the seardquo serving numerous shippers and rarely calling at the same ports If the fleet from a shipping company only calls at a particular port once a year and the compa-ny has very short-term relations to individ-ual shippers building trustful relationships between the parties remains a major chal-lenge Solving this problem and realizing the full potential of slow steaming will require systemic innovation in shipping and port systems and further studies are required to identify possible solutions

36 CSQ

The Wind turbine industry -

Emerging global innovation networks in Europe and China

The wind turbine industry has developed into a global network encompassing a large amount of diverse actors within innovation production and installation of wind turbines across the globe

By Stine Haakonsson and Julia Kirch Hollitsch Department of Business amp Politics CBS

market for wind energy Chinese actors have turned China as a location into another im-portant lsquohubrsquo in this network This has led to new forms of innovation collaborations between European and Chinese actors The result has been a complete re-configuration of the industry over the past decade In the International Business and Economic Geog-raphy literatures the development of global production networks in which lead-firms be-come orchestrators of dispersed production

enmark has traditionally played a key role as an lsquoinnovation hubrsquo and com-

panies in Denmark remain among the lead firms within the wind turbine industry Re-cently the industry has reorganized from being located predominantly in the Triad regions (mainly in Europe and the US) to becoming a globally dispersed industry This development can partly be explained by de-velopments in international and national politics Due to the growth of the Chinese

activities in globalized value chains is well established theoretically as well as empiri-cally In the globalization process lead firms relocate production activities to low cost lo-cations by off-shoring and through vertical disintegration and outsourcing to specialized suppliers Producers of wind turbines are no exception However until recently the mar-ket and innovation activities remained con-centrated in Europe and US

With the recent focus on global politics for a post-carbon society the market for wind tur-bines has experienced an immense growth and a high degree of market globalization New locations have developed into main markets One of these is China which since 2010 has been the largest market for wind turbines in the world (in capacity installed) The globalization process in the wind tur-bine can be explained by a combination of offshoring of production by European lead firms mainly through foreign direct invest-ment and establishment of domestic lead firms in emerging markets In 2010 there were four Chinese-owned companies among the top-10 producers of wind turbines as compared to 2003 where all firms on this list were from Europe and the US

D

Julia Kirch Hollitsch

Stine Haakonsson

Stine Haakonsson and Julia Kirch Hollitsch from Depart-

ment of Business and Politics CBS are engaged in the

Sino-Danish Center for Research and Education (SDC)

project on Wind Energy in China Both research on the

current restructuring of industries and firms at the glob-

al level (outsourcing off shoring global value chains)

In particular their research is on 1) the restructuring of

innovation and RampD activities into global innovation net-

works(GINs)2)thechangingroleofemergingmarkets

(ChinaIndiaBrazilSouthAfrica)intheseemergingGINs

and 3) technology transfer and capability building related

to renewable energy

Research

37CSQ

by adapting their products to the Chinese market and through cost-out development activities in the new locations primarily China

As a result the wind industry is today highly knowledge-intensive and internationalized Due to increased attention and investments in sustainable transition policies and car-bon-reducing technology China has over the past decade developed into a high prior-ity investment area for wind turbines Also Chinese companies are upgrading technol-ogy and innovation from the global firms through integration into GINs Moreover the production and innovation networks for wind energy become highly complex and consist of many different suppliers of com-ponents (blades gear boxes control systems bearings) resulting in a variety of network linkages among suppliers of different com-ponents and the wind turbine producers

From our empirical data including more than 40 in-depth interviews collected in 2011 and 2012 in the wind turbines indus-tries in China and Denmark we have identi-fied some very interesting patterns We have identified very different characteristics of the GINs established by the Chinese wind tur-bine industry and the European wind tur

Emerging Global Innovation Networks

Innovation processes are also moving be-yond the boundaries of individual compa-nies and national innovation systems Firms engage in cross-border innovation networks spanning different innovation systems which may be national regional or sectorial in or-der to stay competitive in the global econ-omy Chinese lead firms are entering this scene too The result is globally organized networks of interconnected and integrated functions and operations by firms and non-firm organizations engaged in the develop-ment and diffusion of innovations so-called Global Innovation Networks (GINs) Lead firms internationalize innovation through strategies of exploitation global generation of innovation and global techno-scientific collaborations Chinese wind turbine pro-ducers ndash acknowledging their resource and capability deficiency ndash pursue strategies of innovation network integration through strategies of global generation of innovation These firms link up with specialized Europe-an actors such as core component suppliers through partnerships and networks in or-der to tap into the technology of firms from developed countries and upgrade Mean-while European companies internationalize through exploitation strategies for example

bine industry Although Danish and Chinese actors are experiencing a re-organization of activities and establish networks and globa-linnovation strategies the result is very dif-ferent

The industry from Europe and US

The industry from Europe and the US hosts the lead firms in terms of core technology de-velopment Denmark has traditionally played a key role as lsquoinnovation hubrsquo in technology development and global lead firms such as Vestas and Siemens Windpower (previously Danish lsquoBonusrsquo) took its start already in the 1970s The core competences of the Danish wind turbine innovation system are based on large testing facilities and long track records mainly due to the long time-line of experi-ence The wind industry goes 40 years back and therefore Denmark has a good knowl-edge pool within establishing wind farms (aerodynamics minimizing power loss in energy transmission wind mapping and other installation-related technologies)

38 CSQ

that will make it possible to finance the pro-jects ldquoFrom then on our wind turbine pro-jects developed very fastrdquo(Interview Wind Engineer Chinese Academy of Sciences) Thus this law was a milestone for elevating renewables to a strategic position in China or as expressed by a European lead-firm ldquoWhat drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick offrdquo

Until the turn of the millennium Chinarsquos wind energy industry was largely built on donors acquisition of finished wind turbines and licensed technology from European companies spread on a very small scale into the local industry during the mid 1990s Chi-nese wind turbine technology has evolved from imitation reverse engineering and licensing in the 1980-90s combined with assistance from foreign consultants One example is how DANIDA funded a project in 1986 for Goldwind in Xinjiang which imported 13 units of 150 kW lsquoBonusrsquo (now Siemens Wind Power) turbines

To get beyond the stage of pure imitation several policies have been introduced with the intent to upgrade Chinese manufacturers to obtain indigenous innovative capabilities Policy programs were introduced to enhance Chinese companies to develop wind energy subsidizing wind energy RampD expenditures at varied levels over time establishing a re-newable energy fund and through the ldquo863 Wind Programrdquo under the Tenth Five-Year Plan (2001-2005) Local content require-ments were put in place in which develop-ers of wind energy projects were required to source 70 pct of the content in China These policies ndash which essentially forced foreign manufacturers wishing to sell wind turbines to the Chinese market to establish China-based manufacturing facilities ndash were only removed recently (in 2009) One result was that the foreign companies had to up-grade local suppliers of components

Due to the technological complexity many European (and hereby also the Danish) firms are vertically integrated and have most com-ponents produced in-house or with regular specialized suppliers According to these companies the different parts need to be well adjusted to each other to some extent even co-developed in order to enhance effi-ciency and the lifetime of the wind turbine Likewise the European industry has expe-rienced a concentration of actors with the result that there are only relatively few but large manufacturers in Europe (the larg-est ones are Vestas Siemens Gamesa and Enercon) Together these four companies accounted for about 35 of the global mar-ket in 2010 By seeing the wind turbine as an integrated system these lead firms aim at producing lsquothe Rolls Roycersquo model wind turbines These are strong in terms of qual-ity and standards but generally expensive These firms learn cost-out techniques from their engagement with partners in China

The Chinese Wind Turbine Industry

Today the Chinese wind turbine industry is overly competitive It entails more than 80 wind turbine manufacturers and the Chi-nese market boasts the highest growth rates internationally with an average growth rate of 968 percentages annually in the last three years Several large domestic Chinese wind turbine manufacturers have emerged within the last decade Sinovel and Goldwind take the largest share followed by United Pow-er and Ming Yang just to mention some of them As of the end of 2010 these four were A major driver for the development of the Chinese wind energy market has been the establishment of an institutional context as a comprehensive concerted policy frame-work addressing the development of renewa-ble energies This change in the institutional context was first reflected clearly in the 11th 5-year-plan (2006-2010) which explicitly linked environmental sustainability to the key goal of establishing what was called a harmonious socialist society signalling a socially environmentally and economically sustainable economy With the Renewable Energy Law from 2005 the Chinese wind energy industry really took off as it explicitly seeks to ensure that renewable energy pro-jects have an outlet for their output at prices

Technical barriers and the role of GINs for a post-carbon society

Despite high ambitions in terms of devel-oping innovative capabilities Chinese pro-ducers still produce almost exclusively for the Chinese market However Chinese wind turbine manufacturers have recently started an internationalisation process and some are approaching international markets Not least for tapping into new knowledge

Europe (and Denmark in particular) is per-ceived as a main location from which the Chinese companies can learn more A cou-ple of Chinese companies have already set up RampD centres in Denmark European firms have also initiated RampD centres in new lo-cations primarily China and India In other words GINs can be identified

Our research also points towards important barriers for GINs in the wind turbine in-dustry and for approaching a post-carbon global society Most importantly are the technological barriers intellectual property rights quality issues and issues of limited appropriability of knowledge Further the institutional framework remain relevant for displaying how the sector and the emerging GINs are embedded institutionally socially and technologically Whether actors trans-act knowledge technology and know-how through cooperative innovation activities also depends on how core the technology of a given technology is Still as the market grows in China it seems to have matured in Europe because of changing policies on re-newable energy To sustain the position as a global lsquohubrsquo and world leader in wind tech-nologies there is a strong need for support in Europe as this research really shows how fast the Chinese industry is moving One major result is how important networks are for upgrading companies and it seems that Chinese firms perform better in network strategies and manage to tap into relevant knowledge than the European firms

What drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick off rdquoldquoInterview Wind Engineer Chinese Academy of Sciences

39CSQ

Social Enterprise World

ForumNadine Koumlcher from 180Degrees recounts her experience from the

conference on

Rio de Janeiro Brazil 2012

In the numerous panel debates and parallel track discussion it became clear that Impact Investment is a hot topic among both social entrepreneurs and impact investors a diverse group consisting of corporations founda-tions and potential donors However various obstacles impede a harmonious relationship between the twoSocial enterprises face structural challenges to make themselves more appealing to im-pact investors They have to become more transparent and increase their accountability This includes improving their impact assess-ment and reporting tools However despite much discussion no consensus could be formed on how to optimally conduct im-pact assessment One of the most frequently proposed methodologies involves the use

From the 16th to the 18th of October the CBS Sustainability Platform granted me the opportunity to attend the 5th Social Enter-prise World Forum which took place in Rio de Janeiro Brazil This yearly international conference focuses on social enterprises and their effectiveness in solving social challeng-es The overall theme of the 2012 conference hosted by NESsT was ldquoSocial Enterprise Investing for Impactrdquo Thus for three days over 180 speakers and 650 delegates from 30 different countries shared their experiences regarding impact investment and discussed possibilities to attract new investment by both the public and the private sector for so-cial enterprises

of control groups Story-telling has also been men-tioned to be a powerful tool to provide investors with a proof of outcomesSocial investors are willing to accept returns just below the market rate in exchange for a social return However large profits are still expect-ed and many social enter-prises are afraid of being unable to generate them Social enterprises typically operate on a small scale and are not used to undertake large projects with huge sums of investment given to them Many are too small for social investors to be

attractive as costs are similar for small and large investments although larger invest-ments have a higher payoff

Nichole Echert the CEO of NESsT there-fore pointed out that it is necessary to align expectations between impact investors and social entrepreneurs and to be patient in establishing a relationship between the two groups The expected financial return has to be reasonable close to covering the costs of operation and social returns have to be re-ported to investors by use of clearer criteria

By Nadine Koumlcher Director of Branch Development180 Degrees Consulting Limited

ldquoSocial Enterprise Investing for Impactrdquo

Students

40 CSQ

A highlight of the con-ference was definitely the site visit to a social enterprise project in a recently pacified fave-la It brought further insights on the great variety of social enter-prises that exist in Bra-zil and their missions and struggles We visit-ed a community center at which Comitecirc para

Democratizaccedilao da Informaacutetica (CDI) uses technology to fight poverty and to stimulate entrepreneurship CDI has formed a corpo-rate partnership with Coca Cola which in the same building teaches young locals how to write a CV and find a job Talking to the young locals at the center it became apparent that an increased self-confidence and the in-spiration they get from meeting former now employed participants of the project (eg at Coca Cola) is what they valued most of being part of the class

Participating at the conference was definite-ly a unique and valuable experience I would not want to miss as I tremendously improved my knowledge in the field of social enter-prises through attending the numerous pres-entations and discussions and further met so many inspiring social entrepreneurs impact

In addition it has been stressed that the problem is not a shortage of investment capital (even though the government could promote more impact investment by for instance granting tax breaks) but how to deploy it Social entrepreneurs also have to be aware of the different advantages and dis-advantages of the various types of capital It has to fit their process of establishment and it has therefore been suggested that funds and grants are most optimal in the start-up phase to cover such costs as capacity train-ing There is generally a lack of this early stage financial support Following the initial phase strategic philanthropy money would be most appropriate before impact and final-ly equity investment is sought Furthermore new ways of investment which fit the social enterprise world have to be created replac-ing the current situation of trying to fit social enterprises into the current financial world

investors and students with a genuine inter-est in the field

Participating at the conference was definitely a unique and valuable experience rdquo

ldquo

Social Enterprise World Forum 2013 in

Calgary Canada

The TRICO Charitable Foundation in part-nership with the Social Enterprise Council of Canada and the Social Finance Forum has been selected to host the 6th Annual Social Enterprise World Forum SEWF 2013 will take place October 2-4 2013 in Calgary Al-berta The Forum will present the Canadian social enterprise movement with opportuni-ties to engage learn and share on the inter-national stage

SEWF 2013 will be a gathering of over 1000 Canadian and international delegates who are involved in the social enterprise move-ment where the blending of social and fi-nancial values is core to business Attendees will consist of practitioners (from all sec-tors) funders investors supporters elected officials and public servants from around the world

Nadine Koumlcher

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 20: CBS Sustainability Quarterly 2013 #1

20 CSQ

Update from CBS Centre for Corporate Social Responsibility

cbsCSR celebration10 years anniversaryOn Thursday November 22 2012 CBS Centre for Corporate Social Responsibility (cbsCSR) celebrated its 10 years anniversary The guest list included prominent guests from both academia and the corporate world Head of Department Dorte Salskov-Iversen President Per Holten-Andersen and cbsCSR Director Esben Rahbek Pedersen bid all a warm welcome to an afternoon of inspirational talks and celebration of the Centre

Susanne Stormer followed and initiated her presentation with a brief recap of Novo Nor-diskrsquos history and continuous development of corporate sustainability practices She em-phasized how Novo Nordisk with the help of Professor Ed Freeman has prioritized a close relationship with their stakeholders and learning with them as a means to reach a higher level of corporate sustainability An additional key take-away from Susanne Stormer was the notion of transformational partnerships She argued that corporations NGOs and other stakeholders should use each other to form transformational partner-ships instead of just transactional partner-ships She claimed that in order to address and solve the problems in todayrsquos world the issues have to be addressed at the roots ndash in cooperation with stakeholders

The program had been divided into two ses-sions Each session ended with a panel dis-cussion that gave the audience the opportu-nity to track the developmental trajectory of CSR and participate in the discussion of the future direction of CSR

In the first session which focused on the history of CSR Professor Lucia Reisch from Department of Intercultural Communica-tion and Management CBS Susanne Storm-er VP of Corporate Sustainability at Novo Nordisk and Professor Gail Whiteman from Rotterdam School of Management present-ed their perspectives on the development of CSR up until nowProfessor Lucia Reisch set the stage with an enlightening introduction to the history of sustainable development and emphasized balance on the triple bottom line as key

Professor Gail Whitemanrsquos presentation highlighted both the past and the future of CSR Her main topic was how to deal with planetary boundaries She drew attention to inherent implications of teaching sustaina-bility and CSR at a business school and ar-gued that in order for students and business executives to understand the implications of planetary boundaries and their importance classes should be taught in nature

In the second session Annette Stube Head of Group Sustainability in AP Moller ndash Maersk Simon Pickard Director General at ABIS and Professor Andreas Rasche from cbsCSR presented their views on the future of CSR

Updates from partner organizations at CBS

21CSQ

The topics in the second panel debate evolved around some of the same issues as in the first panel debate The audience was very interested in the educational aspect of CSR and sustainability and a discussion fol-lowed concerning the issues of lsquopreaching to the convertedrsquo Research shows that 75 of CSR courses are not mandatory 1 thus those students and executives who have a natural interest in CSR and sustainability enroll for these courses The speakers agreed that this posed a challenge for the future and that business schools might have to re-invent themselves in this regard They stressed that it is crucial that CSR and sustainability courses become mandatory Also the prac-titioners advocated in-company learning They set forth the argument that it may be a long time before current students will have sufficient impact on the corporate sector but also because the corporate sector and the ac-ademic world can learn from one another

Sum-up of key perspectives for the future

So how has lsquothe business of business really changedrsquo and in what direction From the afternoonrsquos discussions there were two recur-ring topics Susanne Stormer briefly touched upon it when she talked about transforma-tional partnerships Annette Stube and AP

Annette Stube set forth the argument that ldquothe business of business has really changedrdquo She gave an example of how AP Moller ndash Maersk should use their position in the shipping industry to facilitate substantial changes Simon Pickard supported her argu

ment stating that it is not possible for single corporations to make a difference but that clusters of corporations have to collaborate to push changes If corporations do not join forces they risk only making incremental changes Simon Pickard further argued paraphrasing Andrew Pettigrewrsquos argument that in the course of time there has been a conceptual change in the argument for CSR He pointed to the fact that it started out as a moral or philanthropic enterprise and is now perceived as a governance case Simon Pickard pointed to the fact that the future of business is to create shared value ie creat-ing economic value that also creates value for society at large Building on these re-marks Andreas Rasche discussed the future of standards and codes in the field of CSR Emphasizing a variety of case examples he argued that while standards have proliferated in recent years eg certification schemes in the global coffee and apparel industries there is a need to more actively manage the co-ex-istence of these initiatives in order to avoid overlap Rasche also highlighted the pivotal role of consumers who need to acknowledge standards and labels as market signals and factor social and environmental concerns into purchasing decisions

Moller ndash Maersk has it as an integrated and crucial part of their CSR policies and Simon Pickard highlighted how instrumental the-ories are no longer enough The concept of shared value is inescapable and it is what the lsquobusiness of businessrsquo in the early 21st centu-ry is really about

A second topic which also attracted a lot of attention was the importance of continuous education of both lsquothe convertedrsquo but also of opponents of CSR and people who are not aware of the importance of CSR and sustain-ability In-company learning was depicted as a crucial part of the development of CSR and sustainability however a physical change in the teaching settings is also required to meet the approaching environmental challenges

Centre Director Esben Rahbek Pedersen concluded the conference and the winners of the prize of 25000 DKK to participate in the IBECC case competition in San Diego in May 2013 were announced and the celebra-tion of cbsCSR ended with a reception

Thank you to all the speakers moderators and guests for an inspirational afternoon

By Elise Lind Jacobsen and Line Pedini Rasmussen cbsCSR

1Rasche A Gilbert DU and Schedel I (2013) Cross-Disciplinary Ethics Education in MBA Programs Rhetoric or Reality Academy of Management Learning and Education (forthcoming)

Three of the keynote speakers (from left) Professor Gail Whiteman from Rotterdam School of Management VP of Corporate Sustainability at Novo Nordisk Susanne Stormer and Sustaina-bility Professor at CBS Lucia Reisch

Simon Pickard Director General at ABIS

22 CSQ

UPDATE FROM

CBS GOES GREENThe Green Associate Program

2012 was an exciting year for CBS Goes Green with many great achievements One of the new initiatives that was launched in 2012 was the Green Associate Program Here CBS students were able to volunteer in a program to support sustainable behavior among students and staff at CBS More precisely 25 CBS stu-dents put in 30 hours of voluntary work to help with the planning and execution of Green Week - a week consisting of a lineup of successful companies shar-ing their sustainable initiatives and thoughts The overwhelming interest in sustainability and sustain-able business among the students has made it evi-dent that the Green Associate Program should con-tinue in 2013 We at CBS Goes Green look forward to this as well as all of the other initiatives we will be conducting in 2013

The following is an extract of an article that three of the associates wrote themselves This extract shows the associatesrsquo own experience working with CBS Goes Green

What does it mean to be an

associate with CBS Goes Green

In Week 39 CBS turned into a plethora of green initia-tives and events in order to make CBS reach its sustaina-bility goals for 2020 Both students and employees at CBS were asked to become a Green Ambassador to help CBS be smarter greener and better

But many of you may wonder how it is to be one of the people behind the scene As associates we have been help-ing out before and during Green Week in order to establish an event that would reach all corners of CBS This has re-quired both time and effort in order to make things work out but in the end there are also a lot of gains from being an associate

Firstly as an associate you get to expand your network You get to work with people from different studies countries and ages and you also get to talk to many different people while promoting

A bonus about being an associate is also that you get an official certificate which can be attached to your resume This shows that you have put an effort into making Green Week happen

Furthermore by being an associate you feel like you have a larger impact on making CBS a greener place Instead of being an ambassador and only doing the things you can do you get to be the person who raises awareness about sustainability You may influence people to make the right choices and it makes you feel good

Lastly it also gives you a feeling of responsibility because you work under an official part of CBS CBS Goes Green ndash a unit with a clear agenda and a clear vision

By Michael Nguyen Christian Charity and Christian-Philip Lundahl

Updates from partner organizations at CBS

23CSQ

International conference on sustainable biofuels presents latest research

By Barbara Louise Bech Department of Business and Politics CBS

EU Renewable Energy Directive

In 2009 the EU RED set a mandatory target for member states to use a minimum of 10 renewable energy sources in the transport sector by 2020 of which biofuels is expected to be the main contributor This is part of a policy to cut greenhouse gas emissions promote the green technology sector develop rural areas and reduce dependency on fos-sil fuels Due to increasing controversies claiming lack of sustainability in first generation biofuels based on food crops recently the EU pro-posed an amendment to the Directive limiting the share of first gener-ation biofuels to 5 of the targeted 10

The debate quickly zoomed in on the sustainability criteria as outlined in the EU RED drawing attention to the lack of social safeguards The general consensus is that the concept of sustainability is too narrow-ly defined Several case studies (Mozambique Brazil and Indonesia) show that basic labor and human rights of local populations are not protected by RED and the directive is more viewed as an environmen-tal safeguard This discussion raised questions in regard to the effects of RED globally (eg sustainable production in developing countries) and in this context whether EU legislation can have a lsquotrickle downrsquo effect on national standards of nation-states outside the EU In this re-gards one could ask if enforcement at the local level falls under the re-sponsibility of the EU but since first generation biofuels are produced outside the EU it is an important issue for European consumers ndash al-though interest is currently mainly driven by NGOs

On November 19-20 2012 the Copenhagen Biofuels Research Network (COBREN) held an international conference on sustainable biofuels inviting 30 research-ers from around the world to present and discuss their latest research During the two day conference focus was the sustainability criteria of the EU Renewable Energy Directive (RED) voluntary certification schemes and their impacts on sustainability and social safeguards in producer (developing) countries in particular and governance complexity of the biofuel system which has grown considerably over the past decade

Rough guide to biofuelsThere are two types of biofuels biodiesel and ethanol First generation biofuels (1G) are based on food crops and feed stocks such as palm oil soybean and rapeseed used for the production of biodiesel and sugarcane and corn for ethanol The produc-tion of biofuels increased heavily in the 2000s questioning the sustainability of 1G A number of issues have been claimed as key impediments to sustainable biofuel production such as deforestation competition with food production and increasing food prices loss of biodiversity lack of social and environmental safeguards and indirect land use change (ILUC) These contro-versies have led to a call for the promotion of second generation biofuels (2G) which are typically based on agricultural waste (eg straw) plants and forestry residues (also called lignocellu-losic biomassmaterials) However the immediate problem is that there is yet to be developed a market for 2G as they are more costly to produce (require longer and more complex production process)

CBS Sustainability Platform co-director and organizer of the COBREN conference Stefano Ponte doing a presentation

Event

24 CSQ

Voluntary certification schemes

In relation to how standards and certifications can impact sustainable biofuel production discussions pointed to the important difference be-tween mandatory and voluntary schemes As the controversy of sus-tainable biofuels in particular first generation is rolling out special attention has been given to biofuel production competing with food production ILUC value of emissions reduction and environmental and social issues This have off sprung a proliferation in private certifi-cations and during the conference it was discussed intensely whether these schemes have an actual effect on sustainability Depending on the point of view certifications can fill out the holes in legislation and act as a tool to force companies to comply with sustainability crite-ria However the development processes of new certifications may not be inclusive of relevant stakeholders (eg representatives of local populations) Additionally the nature and governance of the networks steering these processes is not always transparent and may favor one interest over the other This intense discussion led to the question of the purpose of certifications Can we use them for anything other than as a CSR PR tool as long as consumer awareness is as low as it is and how do the different regional drivers influence sustainability as a concept The answers to these questions are not easily found and it will be interesting to observe the future development and partnership between public and private sector

Governing the biofuel industry

Within the past decade biodiesel production has risen from below 30PJ in 2000 to 572PJ in 2009 globally and fuel ethanol production has increased from 340PJ to 1540 PJ respectively As the market expands more actors eg governments international organizations civil soci-ety and NGOs private sector networks and companies and profes-sions (biofuel experts and consultants) get involved and play different roles to promote their own agendas Being an emerging industry the structure of the biofuel system shows hybrid forms of governance with many actors As controversies of biofuelsrsquo sustainability develop more issues are added to the agenda giving life to more actors and interests in the governance structure Research shows a shift in power balance as private companies and NGOs increasingly push the agenda The dis-cussions during the conference centered on the complexity of sustain-ability issues calling for mixed governance responses and governance instruments such as standards and certifications which in return need to be followed up with endorsement instruments Given these com-plexities the question is whether the biofuel industry is too difficult to govern as long as the governing systems (for instance the EU) cannot accommodate expectations of all stakeholders

Indirect land use change (ILUC)ILUC is the unintended consequence in terms of more carbon emis-sions due to land use change around the world induced by the expan-sion of croplands for biofuel production When land that could be used to grow food and feed crops is used to grow energy crops this leads to existing agricultural production moving to another area or country where land is converted When this land is cleared and converted to cropland and because natural lands (rainforests and grasslands) store and sequester carbon in their soil and biomass a net increase in GHG emissions can occur Due to this change in the carbon stock of the soil and the biomass ILUC has consequences in the GHG balance of a biofuel Adding to this complexity models for ILUC calculations are not mainstreamed and thus difficult to assess internationally

25CSQ

Mellemfolkeligt Samvirke (MS) or Action Aid Denmark is a Danish NGO founded back in 1944 The

organizations key objective is to fight poverty by ensuring greater political influence for the worldrsquos poor and margin-alized at the local national and international levels MS works to bring about long-term development in the worldrsquos poorest countries focusing especially on education co-

operation and the ability to organize MS mainly works in Africa Read more about the organizationrsquos work

at wwwactionaiddk

Action Aid

A private sector view on the future of sustainable biofuels

By Barbara Louise Bech Department of Business and Politics CBS

nergy security continues to be an eminent concern in a world of finite resources For a long time biofuels have been viewed as

one of the key solutions to replace our dependency on fossil fuels and battle climate change but in recent years controversy has contested the sustainability of first generation biofuels based on food stock Issues such as lack of environmental safeguards causing loss of biodiversi-ty and deforestation and lack of social safeguards ensuring land and labor rights in producer (developing) countries have been claimed as key impediments to sustainable biofuel production Critical observers also argue that the emission savings of biofuel use in compar-ison to fossil fuels can become much smaller (or even disappear) when indirect land use change (ILUC) is included in the calculations Furthermore bi-omass production from food stock is argued to compete with food production and in-creasing food prices

The Danish NGO Action Aid has been engaged in biofuels since 2008 and is par-ticularly involved in protecting womenrsquos rights and preventing land grabs in de-veloping countries ldquoWe are very concerned about land use when it comes to first genera-tion biofuels This relates both to the people who are dependent on the land and to food security We rarely see good combinations where the local populationrsquos needs are taken into consideration The energy crops grown on the local farmerrsquos land donrsquot benefit him and local consumption is essential for developmentrdquo explains Kirsten Hjoslashrnholm Soslashrensen political advisor Action Aid Denmark

It is therefore believed by many that second generation biofuels is the only way forward to avoid competition with food and avert ILUC Next generation biofuels is based on lignocellulosic biomass such as agricultural and household waste and forest residues The Biorefining Alliance represents a cluster of leading Danish companies within the renewable energy sector with an ambition to promote second gener-

ation biofuels and make Denmark a world leader of technology and bi-ofuel productionldquoDenmark has very strong competencies in green tech and as a society we have put a lot of money in its development This is go-ing to be a huge deal globally so we are asking whether Denmark wants to be a customer or a producer What we are working for is of course that we become a lead exporter of technology but also that Denmark produces second generation biofuels commercially Even though we are a small country we cannot settle on selling know-how Denmark also needs to have some industrial productionrdquo says Anne Grete Holmsgaard di-

rector of Biorefining Alliance In her view Denmark needs to keep a firm grip on developing innovation or it will slowly but

steadily move out of the country In this regard she views sustainability criteria for biofuels as an in-

novator and not a hindrance

The Sustainable Biofuels Network (SBN) is another cluster of private companies trying to facilitate the transition from fossil fuels to biofuels in the transport sector For the aviation industry biofuels are considered

to be the only alternative to fossil fuels and the industry firmly believes that biofuels will

survive according to Robert Arendal chairman of SBN ldquoThe aviation industry has set very clear

guidelines for the use of biofuels We are not going to use food based biofuels and we will minimize the use of fresh

water By 2050 our target is to use 50 biofuels in the global aviation so we really need to move fastrdquo he explains adding that living up to sustainability criteria includes being careful about where biofuels are produced ldquoBut it should be produced all over the world and close to the 1600 airports worldwide that account for 95 of all aviationrdquo

he technology for second generation biofuels is already here but the problem is that production costs are too high and there is no market As long as prices are not competitive with conventional fuels it will be difficult to move forward ldquoOne might ask why there is no market The customers are certainly there so if I was in the business of producing

E

As part of the COBREN international conference on sustainable biofuels private sector civil society and academia were invited to give their views on sustainable biofuels at a roundtable discussion at an open public seminar held at DIIS November 19 2012

Event

26 CSQ

SBN is a ldquobreeding groundrdquo and ldquoknowledge centerrdquo for the biofu-els industry where synergies are created between all parties within

the biofuels sector SBN focuses in promoting supporting and enabling the commercial development and use of clean and sustainable biofuels for Heavy Road Transportation Shipping and Aviation Emphasis is put on the importance of global standards for biofuels with local as well as international institutions and decision makers to encourage con-

structive guidelines and rules for the development of biofuels SBN adheres to EUrsquos sustainability criteria SBN is a non-profit asso-

ciation established in 2008 Visit their website for more info at wwwsustainablebiofulsdk

Sustainable Biofuels Network(SBN)

The Biorefining Alliance (BA) was founded December 2011 by DONG Energy Novozymes Haldor Topsoslashe and the

Danish Agriculture and Food Council and is a three-year project to politically promote Denmarkrsquos position in the entire value chain from residues to bio-based products The Alliance has set forth a number of recommendations to achieve a sustainable Danish bio-economy Among other these include (i) that all organic

waste be considered a resource (high-value recycling and storable energy) (ii) reducing the cost of manufacturing 2G

bioethanol and (iii) contemplating the establishment of a national center for sustainable materials

Biorefining Alliance

second generation biofuels I would get started right awayrdquo says Robert Arendal The Biorefining Alliance is working on lowering the costs and recommends a stronger regulatory framework with binding targets as it has been done for the wind industry ldquoThere already is a market for first generation biodiesel which is the least sustainable biofuel We need to make a market for second generation biofuels and we know that binding targets work I donrsquot think it is possible to create a market for the lsquogreen consumerrsquo as you have one for organic food products but I believe that a niche market for HRT (Heavy Road Transport red) such as public bus transport could be a supplementrdquo concludes Anne Grete Holmsgaard

How the future for sustainable biofuels will shape depends on political will to create a market for second generation and the ability of private sector to innovate and bring prices down Oil production is claimed by some to already have peaked and exploring new geographical areas for extraction could be as costly as kick-starting the market for second generation biofuels although much less sustainable As the American ecologist and environmentalist Bill McKibben wrote in his book ldquoDeep Economyrdquo back in 2007

Even before we run out of oil wersquore running out of planetrdquoldquo Bill McKibben

27CSQ

The Transparency-Sustainability NexusA workshop on the practices meanings and tensions of organiza-

tional transparency

n December 5 2012 the Department of Intercultural Communication and Management (ICM) hosted an in-

ternational workshop supported by CBS Sustainability Plat-form and ICM The workshop was organized by Oana Brindusa Albu Mikkel Flyverbom and Hans Krause Hansen respectively PhD Fellow and Associate Professors at ICM The idea of the workshop was spurred by the observation that while ideals of transparency like lsquoopennessrsquo lsquodisclosurersquo and lsquoreportingrsquo are pro-liferating these years the actual construction of transparency within and across organizations is poorly understood Most re-search on transparency is highly normative if not celebratory just as popular discourse about transparency not least in the areas of sustainability and corporate social responsibility is obsessed with ideals of accountability performance and effi-ciency and pervaded by an optimism currently pushed to its extreme with the explosion of new media technologies

But the truth is that we generally know very little about the implications of ideals of transparency when translated into practice in specific issue areas and organizational contexts Importantly each of the contributions to this workshop clear-ly suggested that the contemporary politics of transparency is much more complex contradictory and dynamic than tradi-tionally recognized All papers examined various aspects of the contemporary obsession with transparency and specifically the increasing use of disclosure techniques within and around or-ganizations the rationales or myths underpinning these meas-ures their intended and unintended consequences including implications for identity-making management and govern-ance practices

Clare Birchall initiated the workshop with a paper titled lsquoThe Cultural Politics of Disclosurersquo highlighting how transparency has been positioned as a superior form of disclosure in popular management and organizational literatures and in policy docu-ments In her account the growing preference for transparency is a consequence not only of the positive qualities seen to be intrinsic to transparency itself but also a response to the per-ceived negative characteristics of other forms of disclosure such as gossip scandal and rumor Lars Thoslashger Christensen (with co-author Joep Cornelissen) then analyzed transparency as one of the foundational myths of modernity myths understood here as descriptions of the world in a narrative form which seeks to produce meaning and direction for a community and its members Such lsquoMyths of Transparencyrsquo sustain numerous organizational practices ndash including openness information provision and auditing But as argued by the authors there are conflicting evidence regarding the capacity of such practices to create insights and understandingThat aspirations and techniques of transparency can have seri-ous repercussions was demonstrated by Peter Skaeligrbaeligk (with co-author Mark Christensen) in the paper entitled lsquoAuditing and the purification of blamersquo which analyzed how auditing auditing practices and institutional entities including the po-liticized environments surrounding them are mobilized and participate in blame games and allocation In his paper titled lsquoQuantification transparency and the costs of reassurancersquo Henrik Vollmer analyzed various dimensions of the role of nu-merical records and signaling in generating transparency trust and mistrust

By Hans Krause Hansen Department of Intercultural Communication amp Management

Event

O

28 CSQ

Some of these aspects were also touched upon in the paper lsquoDisrupted Disclosures The Politics of Visibility and Surveil-lance in the Extractive Industriesrsquo by Hans Krause Hansen (with co-author Julie Uldam) which explored the wider field of visibility and surveillance in which contemporary transpar-ency policies are unfolding with examples from the extractive industries Oana Brindusa Albu in her lsquoTransparency and the organizational self everyday politics of identification in Cooperativesrsquo examined the paradoxical effects of values and practices of transparency on collective identity formation pro-cesses drawing upon her ongoing multi-sited fieldwork in co-operatives Under the heading of lsquoThe Improbability of Secrecyrsquo Mark Fenster analyzed the intersections of secrecy and trans-parency with examples from the US government and its efforts to control information which according to the author does not necessarily stop the flow of information Finally Mikkel Fly-verbom and Christina Garsten examined lsquoThe sway of (big) data ndash calculations and advocacy in the name of transparencyrsquo focusing on the operations of data-based forms of corporate lsquotransparency evangelismrsquo and advocacy through revelation including examples from Center for Global Development and Google

In all the workshop was highly successful in investigating not only the historical and mythical foundations of transparency but also the different practices and forms of transparency that currently shape organizations and a wide variety of issue areas It also provided a reminder of the usefulness of investigating a concept of transparency in relationship to a host of other con-cepts such as secrecy myth gossip blame surveillance visi-bility identity information and knowledge The organizers of the workshop wish to thank all workshop participants for their valuable contributions and the CBS Sustainability Platform and ICM for their support

Hans Krause Hansen

Mikkel Flyverbom

Oana Brindusa Albu

ASSOCIATE PROFESSORPHD (ICM)

ASSOCIATE PROFESSORPHD (ICM)

PHD FELLOW (ICM)

29CSQ

Louise Lyngfeldt Gorm Hansen is a PhD Fellow at the Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) She has a back-ground in Chinese Studies from Copenhagen University (BA) the Asian Studies Program at CBS (BSc) and in International Business Stud-ies and Sustainable Business (MSc) from CBS

The aim of her cross-disciplinary PhD project is to explore how the Chinese hydropower sector works with environmental sustainability and more particularly how the concept is understood and performed in the planning phase of a major dam project in the southwestern Chinese province of Yunnan

The aim of the project is to gain a deeper under-standing of how Chinese firms in the renewable energy sector such as hydropower companies understand and value sustainability as well as how such firms tackle the increasing pressure to deliver socially and environmentally balanced solutions to one of Chinarsquos major challenges lowering CO2 emissions in a time with rapidly rising water and energy demands Theoretically the project draws on - and aims to contribute to ndash a combination of Asian Studies and Science and Technology Studies

PHD FocusLouise Lyngfeldt Gorm Hansen

HYDROPOWER

SUSTAINABILITY

30 CSQ

HYDROPOWER

SUSTAINABILITY IN

CHINAy PhD project combines two of my main research interests China and

environmental sustainability I have studied China for a number of years mainly because of an interest in how the Chinese view sus-tainable development So since finishing my masters I have known that I wanted to study how China plan to tackle a sustainable tran-sition in the years to come I saw my chance when CBS announced PhD scholarships in

DanishEuropean-Chinese social science research in collaboration with the newly es-tablished Sino-Danish Center for Education and Research (SDC) and started my PhD in October 2011My PhD project focuses on the Chinese energy sector more specifically the rapidly growing part of the energy sector engaged in renewable energy Here I examine Chinarsquos second largest source of electricity gene-

eration hydropower In recent years China has become increasingly focused on reduc-ing CO2 emissions While some countries such as the US and Australia are decommis-sioning hydropower dams China is looking to large-scale hydropower construction as one of the solutions to a future clean energy supply This means that hydropower devel-opment plays a central role in Chinarsquos sus-tainable transition

However utilization of hydropower is con-troversial not least in China and has met increasing resistance in recent years particu-larly from Chinese and international NGOs the media as well as the scientific commu-nity Critique is most often focused on how or if social and environmental sustainability can be ensured in such large scale projects as the social and environmental impacts of large scale hydropower development are very complex and difficult to measure More gen-erally the viability of relying on hydropow-er as a future source of energy is also being questioned One of the major concerns here is the overarching issue of climate change ie glaciers shrinking and yearly water runoff decreasing This means less stable water flow for hydropower and less water for other pur-poses such as agriculture water supply for down-stream countries etc

By Louise Lyngfeldt Gorm Hansen Asia Research Centre Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) ndash sinodanishcenterdk

M

Picture from SinoHydro promotion material 2011

Research

31CSQ

In contrast to for example the wind power sector in China in which many foreign com-panies have invested the hydropower sector is dominated by a few large state-owned en-terprises Our knowledge of Chinese state-owned enterprises is still limited and there-fore my PhD project is also part of a larger research project at the Asia Research Centre with focus on Chinese state-owned enter-prises and the reform of the public sector in China

In combining these interests my PhD exam-ines how Chinese state-owned enterprises in the hydropower sector tackle the demand to expand hydropower development to help reduce Chinarsquos CO2 emissions while be-ing under increasing pressure to deliver on sustainability principles in the planning and execution of large scale hydropower pro-jects The pressure comes mainly from NGO organizations the media and the scientific community both at home and from abroad I am conducting a case study focused on a specific river in south-western China which has ndash until now ndash not been fully developed for hydropower and the plans for addition-al hydropower dams on the river are still undergoing assessments The project has continually stalled due to disagreements between Chinese government officials at all levels NGOs the media the increasingly deregulated but still state-owned Chinese hydropower companies and the scientif-ic community However the project has very recently been reopened and so will go through another round of assessments in the near future The case is an excellent example of the complexity of hydropower develop-ment decisions in China but it also highlights some of the social and environmental conse-quences of the global push to decrease CO2 emissions

China plays and will continue to play an increasingly important role globally in the years to come However the country also fac-es enormous challenges - not least regarding the environment These challenges also affect economies in Western Europe - for better or worse My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective so

that we here in Europe and in Denmark can more knowledgably and actively engage with China to help solve some of these difficult challenges that eventually affect us all In do-ing this I contribute to gain a better under-standing of the Chinese perspective on envi-ronmental sustainability that can be of use to companies wanting to engage in the Chinese renewable energy sector

My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective rdquoldquo

Picture of the case-river taken by the author in 2012

32 CSQ

FROM BLUEPRINT TO PRACTICE

ENERGY EFFICIENT CONSTRUCTION

By postdoc researcher Satu Reijonen Department of Organization CBS

In the EU almost one third of CO2 emis-sions are attributed to energy used in the construction and use of buildings (FIEC

2007) It is therefore not surprising that the construction sector has recently been subjected to a substantial amount of policy measures to combat its negative effects on climate change In Denmark the state has posed new thresholds for the energy efficien-cy of new buildings including a plan for con-tinuous improvement in the area This far the industry has responded well to these stricter performance requirements In the future re-quirements will rise to levels that are not that easily achieved in the coming years build-ings will have to use 25 less energy than in year 2008 How can these ambitious goals become business as usual

One of the most discussed ways besides add-on technologies such as windmills and solar panels to enhance the energy efficiency of a building is through an energy efficient phys-ical design In practice this means reduction of energy used for heating cooling down and lighting of the building through an optimal orientation and dimensioning of the build-ing

Integrated energy design contrary to add-on technologies can be achieved on a rath-er modest additional budget This should be good news for the sector that today is eco-nomically pressed Indeed today many low energy building projects claim to use the in-tegrated energy design method (IED) when seeking to meet the most ambitious energy related goals In this commentary I wish to discuss some challenges related to the imple-mentation of this design tool

The integrated energy design method sug-gests that one of the main problems in not achieving energy efficiency is that energy related concerns become integrated into the design process too late The method consists of two elements the first of which addresses the need to bring in energy related knowl-edge throughout the design process It sug-gests that design teams ought to be multidis-ciplinary and that architects engineers and experts should work together either co-lo-cated or in a series of workshops Further-more it suggests systematizing energy quali-ty follow-ups into the design process This is all very relevant and inspiring

Oddly enough a closer look on the actual design practices reveals that few seem to ac-tually follow the method of integrated energy design to the point This poses an interest-ing question about the challenges related to the use of such management technologies as vehicles for increased energy efficiency in construction Maybe it is about time practi-tioners and researchers ask themselves what are the boundaries of and challenges related to the use of these tools ndash and what else is required for organizing for more energy effi-cient building design processes

A revolution of relations

Integrated energy design points to the need to bring energy related expertise into the de-sign process at an earlier point In order to achieve this cooperative practices between different professional groups are advocated for Historically energy experts have most-ly been used to respond to rather advanced architectural plans Shared workshops and co-localization suggest a change in these business as usual relations But are they pos-sible and what type of changes do they ac-tually imply in order to function as wished

Research

33CSQ

Satu Reijonen is postdoctoral scholar at the Department of Organization at CBS In her on-going research project she investigates how architects and energy engineers two different profes-sions cooperate and coordinate their work regarding energy related ques-tions in construction design The ways in which relations between and roles of these professions become consti-tuted through socio-material arrange-ments are a central topics in her work Besides studies of work Satu has con-ducted research on environmentally friendly products and markets

ABOUT SATU RAIJONEN

The initiation of this type of new working forms is certainly beneficial for energy effi-cient design However for several reasons they are more difficult to make work than one would assume While it may sound rea-sonable it is after all a tall order Integrating energy related practices into an environment where different visions professions and in-terests meet and the divide between what one profession does is clearly and historically demarcated is demanding While architects need to make room for the intervention of energy experts into the creative work energy experts have to become capable of working creatively and relate to and follow the visual and aesthetic cues from architects In order to work these kind of changes in the profes-sional roles and relations have to resonate with the skills and visions of individual work-ers not only management level design strat-egies It is not surprising that organizational change scholars remind us of the possibility of loose coupling from the strategies placed at the management level (March 1981) What integrated energy design suggests is a kind of a revolution in the ways in which both the architects and the energy engineers envision their role and space of mobility

Linear tools in an unlinear design process

Integrated energy design suggests that the energy performance of the emerging build-ing design be followed up at certain points during the design process The method de-picts a rather mechanistic and linear under-standing of a design process consisting of phases within which iteration may occur While energy related issues may be dis-cussed as quality goals during these phases the method places a lot of emphasis on the check ups performed in the transition from one phase to another Design processes how-ever can also be characterized in a different manner unlinear exploratory and whirl wind type of practices where clear cut phases hardly exist (Akrich 1992 Van de Ven et al 1999) This also applies to the architectural design processes where the object of the de-sign is emergent (Yaneva 2009) This entails that the product the building may change in unexpected ways during any day of the de-sign process If this alternative description of the design processes is viable delegating energy related issues to some predetermined check up episodes may strike a false accord and indeed be contradictory with the aim of enhancing coordination and cooperation between professional groups What happens in between the predetermined checkups may very well be where the energy efficiency of the building becomes configured and where the intervention from the energy experts

would come most needed Perhaps this is why the best performing projects do not blindly follow the steps of the IED method Check ups however and no doubt play a role in verifying and making visible the energy performance for partners outside the design team

Integrated energy design as many other sus-tainability standards and guidelines make visible systematize and legitimize the ex-istence of environmental management and sustainability issues in organizations and work processes In this such way tools create awareness and legitimacy for environmental and sustainability issues The integrated en-ergy design method also suggests a possible way of thinking about what type of design practice might help us to achieve the stricter energy requirements of the future It howev-er falls short in becoming the change agent it suggests This is hardly surprising as a meth-od or a standard of any kind should only be seen as a possibility or as an opening for an inquiry of what the practice could be about Reconfiguring a well established practice is hard work and it would be foolish to trust that a design method would achieve it by itself What the method does is to alert us of the more profound changes in the pro-fessional roles and relations that is needed in order to enable the change However the method due to its rather mechanical under-standing of the design process may come to work against its own ambition of integrating energy issues into the design work In its quest for integration the method defines at which points in time the architectural and the engineering project has to be checked for its energy performance This approach may lead to bringing in energy related concerns in some artificially created points in a design process which may additionally compart-mentalize energy related issues from where the design really happens

Integrated energy design as many other sustainability standards and guidelines make visible systematize and legitimize the existence of environmental management and sustainability issues in organizations and work pro-cessesrdquo

ldquoLiteratureAkrich M (1992) The De-Scription of Technical Objects in Shaping Technology Building Society Studies in Soci-otechnical Change eds WE Bijker and J Law The MIT Press Cambridge Massachusetts pp 205-224

FIEC 2007 The impacts of buildings on climate change httpwwwbuildingsplatformeuepbd_publicationdocFIEC_Memo_p2919pdf on 1222008

March JG (1981) Footnotes to Organizational Change Administrative Science Quarterly vol 26 No 4 pp 563-577

Van de Ven A D Polley R Garud and SVenkataraman (1999) The innovation Journey Oxford Oxford Univer-sity Press

Yaneva A (2009) The making of a building A pragmatist approach to Architecture Bern Peter Lang

More about integrated energy design(IED)

httpwwwintendesigncomosloIntendnsfAttachmentsGuideline_Version_2pdf$FILEGuideline_Version_2pdf

34 CSQ

The climate challenge in

shipping

ldquoGlobal shipping faces two major challenges both of which are caused by its reliance on fossil fuelsrdquo

By Reneacute Taudal Poulsen Department of Innovation amp Organizational Economics

RENEacute TAUDAL POULSEN

ASSOCIATE PROFESSOR DEPARTMENT

OF INNOVATION AND ORGANIZATIONAL

ECONOMICS COPENHAGEN BUSINESS

SCHOOL

orecasts show that the shipping indus-tryrsquos CO2 emissions will most likely continue to rise in the next two to

three decades as demand for world sea-borne trade will expand At present global shipping accounts for approximately 33 per cent of global CO2 emissions but this share will most probably increase in the coming years if many onshore industries succeed in their aims of reducing emission levels

At the same time rapidly rising fuel costs put heavy strain on shipping company budg-ets Historically and until very recently fuel costs were only a minor concern for ship-ping companies but now they often exceed 60 per cent of variable operational costs Fuel savings made through energy efficiency improvements thus represent a win-win sce-nario for the shipping industry and for so-ciety at large They simply make good sense for everyone

Despite the strong incentives for fuel sav-ings numerous studies have demonstrated that shipping fails to implement cost-ef-fective measures to reduce fuel consump-tion Fuel-saving technologies are readily available in the market and in many cases pay-back periods are very short (less than a year) Changes in operational habits which require few if any investments also hold a significant potential for fuel savings

Global shipping thus holds several classic examples of energy-efficiency gaps Gaps occur wherever cost-effective measures to improve energy efficiency fail to materialize The causes for energy efficiency gaps have been a favourite research topic within the field of energy economics for decades and economists sociologists and political scien-tists have been able to identify several means to bridge the gaps However within the mar-itime domain energy efficiency gaps and the climate challenge remain neglected issues Legal barriers

Shipsrsquo fuel consumption rises steeply with speed Hence slow-steaming or just minor speed reductions can lower consumption and emission levels significantly Since oil prices started to rise rapidly a few years ago shipping companies have indeed resorted to various slow-steaming practices and com-panies which succeed in this regard have been able to gain competitive advantages In other words actors in the industry are trying to bridge the energy efficiency gap However and in spite of the strong price signals from the rising fuel prices a potential for fuel sav-ing through slow steaming still remains

FNew CBS research project

A new three year research project at CBS under-

taken by Reneacute Taudal Poulsen for the Department

of Innovation and Organizational Economics will

examine the climate issues bringing insights from

energy economics and innovation management

into the field of shipping economics The project

which is financed by The Danish Maritime Fund

runs from 2012 to 2015 The project asks why en-

ergy efficiency gaps continue to occur in shipping

and how shipping companies and the maritime

industry at large can use innovative business

models and process innovation to turn the climate

challenge and the rising fuel costs into a business

opportunity Energy efficiency gaps occur both

in daily operations and when investments in new

vessels are made This article will briefly present

two examples of energy efficiency gaps from

the operational level and some of the preliminary

findings of the project

References

Jaffe AB and RN Stavins 1994 lsquoThe energy efficiency gap What does it meanrsquo Energy Policy 22 (110) 804-10IMO 2009 Second IMO GHG Study 2009 London International Maritime OrganizationMoriarty P amp D Honnery 2012 lsquoEnergy efficiency Lessons from transportrsquo Energy Policy 46 1ndash3Poulsen Reneacute Taudal 2012 lsquoEmissions and energy efficiency - the twin challenges for shippingrsquo Mercator Maritime Innovation Research and Education MarchJune 447-454

Reneacute Taudal Poulsen is Associate Professor at the Department of Innovation and Organizational Eco-nomics at CBS He is also affliated with the Centre for Shipping Economics and Innovation at CBS Reneacute Taudal Poulsen holds a PhD degree in marine environmental history from the University of Southern Denmark and he has worked within the field of maritime business studies for the last seven years He has published in such journals as Fisheries Research Business History and Scandinavian Economic History Review

His current research intersts concern the environmen-tal challenges faced by the global shipping industry and business model innovation in the maritime domain

Research

35CSQ

It is clear that shipping companies cannot fully bridge the energy efficiency gap alone In fact factors beyond the control of in-dividual shipping companies and various structural or legal barriers prevent shipping from fully realizing the slow steaming po-tential

Port congestion remains a world-wide prob-lem and causes ships to spend remarkably long periods inactive Despite the financial crisis and the large drop in shipping freight markets after 2008 many loaded vessels sit at anchor outside ports waiting for berths In some cases they wait for a few hours In other cases for days weeks or even months Instead of waiting the ships could have re-duced speeds and saved fuel And the de-livery and the loading of the cargo in port would not have been delayed in any way However in many cases shipping companies or ship operators cannot reduce speed in spite of port congestion

Educational barriers

Energy efficiency gaps in shipping are also evident when the fuel consumption levels of sister ships are compared Even though the vessels are identical and operate in the same waters studies have shown that their fuel consumption may differ by several Decisions made by the crews onboard and by managers in the onshore organizations clearly influence the level of fuel consump-tion For instance if a captain selects only very small course deviation margins when coding the autopilot of the ship the shiprsquos rudder will move frequently to keep the ship on the exact course all the time This will slow down the ship and cause higher fuel consumption than if the captain had allowed for slightly wider margins and the wider margins would not have any effect on the safety of the ship Decisions made by the commercial depart-ments eg on how to crew the vessels how to monitor vessel fuel consumption or which new equipment to install onboard may also

have a large impact on fuel efficiency and emission levels If shipping company man-agers can nurture a fuel saving culture this could potentially make a difference Since 2007 or 2008 shipping companies have in-deed started to facilitate such organizational changes but educational barriers remain a problemOnshore truck drivers are now offered fuel saving courses but fuel-saving is not a major part of the traditional curriculum in nautical schools or in the commercial education of shipping trainees For good reasons the nau-tical educations have focused on maritime safety but this has caused them to neglect the climate challenge in shipping and the is-sue of fuel saving In fact no single nauticaltext book on maritime fuel savings has yet been published and according to teachers and students in the nautical schools this serves as an educational barrier to ener-gy-efficiency improvements The technical level of education for commercial employees in shipping companies may also hinder im-provements in energy-efficiency Some com-

mercial shipping employees may not have sufficient training to fully see and acknowl-edge the consequences of their decisions on fuel consumption In short it seems that fuel awareness and the educational systems have responded more slowly to the climate chal-lenge than the rise in fuel prices may other-wise suggest

For shipping to bridge energy-efficiency gaps education ndash both nautical and com-mercial ones ndash clearly is an area to set in Here the potential for innovative solutions is both evident and pertinent Changing educational systems and awareness is no easy task bearing in mind the global nature of the shipping industry and international crewing of the world fleet It is clear howev-er that educational upgrading is necessary for shipping to effectively address the cli-mate challenge effectively

Charter parties between ship-operators and shippers state a specific time of arrival for the vessel and in order to avoid claims ships proceed to port accordingly regardless of berth availability Experiments with new more flexible charter parties which allow for slow steaming in case of port congestion have recently been made Shipping compa-nies have generally been enthusiastic about this flexibility but often shippers remain skeptical Lack of trust between shippers which need the loading of their cargoes as soon as possible and shipping companies may be a cause for this discrepancy Even in cases where the savings made from slow-steaming are split between shipping companies and shippers shippers have re-mained skeptical Port queuing systems may have a role to play here

Many ports including some of the major container iron ore coal and grain ports serve ships on ldquofirst-come first-servedrdquo ba-sis Ships only receive their ldquoticketrdquo in the

waiting line upon their arrival at the port Again lack of trust between the ship-oper-ators shippers and the port authorities may explain this phenomenon Moreover port authorities currently do not have incentives to change queuing practices because they cannot gain a share in the fuel savings made from slow-steaming

The problem is particularly strong in the major tramp shipping segments of tanker and dry cargo shipping where vessels act as ldquotaxis of the seardquo serving numerous shippers and rarely calling at the same ports If the fleet from a shipping company only calls at a particular port once a year and the compa-ny has very short-term relations to individ-ual shippers building trustful relationships between the parties remains a major chal-lenge Solving this problem and realizing the full potential of slow steaming will require systemic innovation in shipping and port systems and further studies are required to identify possible solutions

36 CSQ

The Wind turbine industry -

Emerging global innovation networks in Europe and China

The wind turbine industry has developed into a global network encompassing a large amount of diverse actors within innovation production and installation of wind turbines across the globe

By Stine Haakonsson and Julia Kirch Hollitsch Department of Business amp Politics CBS

market for wind energy Chinese actors have turned China as a location into another im-portant lsquohubrsquo in this network This has led to new forms of innovation collaborations between European and Chinese actors The result has been a complete re-configuration of the industry over the past decade In the International Business and Economic Geog-raphy literatures the development of global production networks in which lead-firms be-come orchestrators of dispersed production

enmark has traditionally played a key role as an lsquoinnovation hubrsquo and com-

panies in Denmark remain among the lead firms within the wind turbine industry Re-cently the industry has reorganized from being located predominantly in the Triad regions (mainly in Europe and the US) to becoming a globally dispersed industry This development can partly be explained by de-velopments in international and national politics Due to the growth of the Chinese

activities in globalized value chains is well established theoretically as well as empiri-cally In the globalization process lead firms relocate production activities to low cost lo-cations by off-shoring and through vertical disintegration and outsourcing to specialized suppliers Producers of wind turbines are no exception However until recently the mar-ket and innovation activities remained con-centrated in Europe and US

With the recent focus on global politics for a post-carbon society the market for wind tur-bines has experienced an immense growth and a high degree of market globalization New locations have developed into main markets One of these is China which since 2010 has been the largest market for wind turbines in the world (in capacity installed) The globalization process in the wind tur-bine can be explained by a combination of offshoring of production by European lead firms mainly through foreign direct invest-ment and establishment of domestic lead firms in emerging markets In 2010 there were four Chinese-owned companies among the top-10 producers of wind turbines as compared to 2003 where all firms on this list were from Europe and the US

D

Julia Kirch Hollitsch

Stine Haakonsson

Stine Haakonsson and Julia Kirch Hollitsch from Depart-

ment of Business and Politics CBS are engaged in the

Sino-Danish Center for Research and Education (SDC)

project on Wind Energy in China Both research on the

current restructuring of industries and firms at the glob-

al level (outsourcing off shoring global value chains)

In particular their research is on 1) the restructuring of

innovation and RampD activities into global innovation net-

works(GINs)2)thechangingroleofemergingmarkets

(ChinaIndiaBrazilSouthAfrica)intheseemergingGINs

and 3) technology transfer and capability building related

to renewable energy

Research

37CSQ

by adapting their products to the Chinese market and through cost-out development activities in the new locations primarily China

As a result the wind industry is today highly knowledge-intensive and internationalized Due to increased attention and investments in sustainable transition policies and car-bon-reducing technology China has over the past decade developed into a high prior-ity investment area for wind turbines Also Chinese companies are upgrading technol-ogy and innovation from the global firms through integration into GINs Moreover the production and innovation networks for wind energy become highly complex and consist of many different suppliers of com-ponents (blades gear boxes control systems bearings) resulting in a variety of network linkages among suppliers of different com-ponents and the wind turbine producers

From our empirical data including more than 40 in-depth interviews collected in 2011 and 2012 in the wind turbines indus-tries in China and Denmark we have identi-fied some very interesting patterns We have identified very different characteristics of the GINs established by the Chinese wind tur-bine industry and the European wind tur

Emerging Global Innovation Networks

Innovation processes are also moving be-yond the boundaries of individual compa-nies and national innovation systems Firms engage in cross-border innovation networks spanning different innovation systems which may be national regional or sectorial in or-der to stay competitive in the global econ-omy Chinese lead firms are entering this scene too The result is globally organized networks of interconnected and integrated functions and operations by firms and non-firm organizations engaged in the develop-ment and diffusion of innovations so-called Global Innovation Networks (GINs) Lead firms internationalize innovation through strategies of exploitation global generation of innovation and global techno-scientific collaborations Chinese wind turbine pro-ducers ndash acknowledging their resource and capability deficiency ndash pursue strategies of innovation network integration through strategies of global generation of innovation These firms link up with specialized Europe-an actors such as core component suppliers through partnerships and networks in or-der to tap into the technology of firms from developed countries and upgrade Mean-while European companies internationalize through exploitation strategies for example

bine industry Although Danish and Chinese actors are experiencing a re-organization of activities and establish networks and globa-linnovation strategies the result is very dif-ferent

The industry from Europe and US

The industry from Europe and the US hosts the lead firms in terms of core technology de-velopment Denmark has traditionally played a key role as lsquoinnovation hubrsquo in technology development and global lead firms such as Vestas and Siemens Windpower (previously Danish lsquoBonusrsquo) took its start already in the 1970s The core competences of the Danish wind turbine innovation system are based on large testing facilities and long track records mainly due to the long time-line of experi-ence The wind industry goes 40 years back and therefore Denmark has a good knowl-edge pool within establishing wind farms (aerodynamics minimizing power loss in energy transmission wind mapping and other installation-related technologies)

38 CSQ

that will make it possible to finance the pro-jects ldquoFrom then on our wind turbine pro-jects developed very fastrdquo(Interview Wind Engineer Chinese Academy of Sciences) Thus this law was a milestone for elevating renewables to a strategic position in China or as expressed by a European lead-firm ldquoWhat drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick offrdquo

Until the turn of the millennium Chinarsquos wind energy industry was largely built on donors acquisition of finished wind turbines and licensed technology from European companies spread on a very small scale into the local industry during the mid 1990s Chi-nese wind turbine technology has evolved from imitation reverse engineering and licensing in the 1980-90s combined with assistance from foreign consultants One example is how DANIDA funded a project in 1986 for Goldwind in Xinjiang which imported 13 units of 150 kW lsquoBonusrsquo (now Siemens Wind Power) turbines

To get beyond the stage of pure imitation several policies have been introduced with the intent to upgrade Chinese manufacturers to obtain indigenous innovative capabilities Policy programs were introduced to enhance Chinese companies to develop wind energy subsidizing wind energy RampD expenditures at varied levels over time establishing a re-newable energy fund and through the ldquo863 Wind Programrdquo under the Tenth Five-Year Plan (2001-2005) Local content require-ments were put in place in which develop-ers of wind energy projects were required to source 70 pct of the content in China These policies ndash which essentially forced foreign manufacturers wishing to sell wind turbines to the Chinese market to establish China-based manufacturing facilities ndash were only removed recently (in 2009) One result was that the foreign companies had to up-grade local suppliers of components

Due to the technological complexity many European (and hereby also the Danish) firms are vertically integrated and have most com-ponents produced in-house or with regular specialized suppliers According to these companies the different parts need to be well adjusted to each other to some extent even co-developed in order to enhance effi-ciency and the lifetime of the wind turbine Likewise the European industry has expe-rienced a concentration of actors with the result that there are only relatively few but large manufacturers in Europe (the larg-est ones are Vestas Siemens Gamesa and Enercon) Together these four companies accounted for about 35 of the global mar-ket in 2010 By seeing the wind turbine as an integrated system these lead firms aim at producing lsquothe Rolls Roycersquo model wind turbines These are strong in terms of qual-ity and standards but generally expensive These firms learn cost-out techniques from their engagement with partners in China

The Chinese Wind Turbine Industry

Today the Chinese wind turbine industry is overly competitive It entails more than 80 wind turbine manufacturers and the Chi-nese market boasts the highest growth rates internationally with an average growth rate of 968 percentages annually in the last three years Several large domestic Chinese wind turbine manufacturers have emerged within the last decade Sinovel and Goldwind take the largest share followed by United Pow-er and Ming Yang just to mention some of them As of the end of 2010 these four were A major driver for the development of the Chinese wind energy market has been the establishment of an institutional context as a comprehensive concerted policy frame-work addressing the development of renewa-ble energies This change in the institutional context was first reflected clearly in the 11th 5-year-plan (2006-2010) which explicitly linked environmental sustainability to the key goal of establishing what was called a harmonious socialist society signalling a socially environmentally and economically sustainable economy With the Renewable Energy Law from 2005 the Chinese wind energy industry really took off as it explicitly seeks to ensure that renewable energy pro-jects have an outlet for their output at prices

Technical barriers and the role of GINs for a post-carbon society

Despite high ambitions in terms of devel-oping innovative capabilities Chinese pro-ducers still produce almost exclusively for the Chinese market However Chinese wind turbine manufacturers have recently started an internationalisation process and some are approaching international markets Not least for tapping into new knowledge

Europe (and Denmark in particular) is per-ceived as a main location from which the Chinese companies can learn more A cou-ple of Chinese companies have already set up RampD centres in Denmark European firms have also initiated RampD centres in new lo-cations primarily China and India In other words GINs can be identified

Our research also points towards important barriers for GINs in the wind turbine in-dustry and for approaching a post-carbon global society Most importantly are the technological barriers intellectual property rights quality issues and issues of limited appropriability of knowledge Further the institutional framework remain relevant for displaying how the sector and the emerging GINs are embedded institutionally socially and technologically Whether actors trans-act knowledge technology and know-how through cooperative innovation activities also depends on how core the technology of a given technology is Still as the market grows in China it seems to have matured in Europe because of changing policies on re-newable energy To sustain the position as a global lsquohubrsquo and world leader in wind tech-nologies there is a strong need for support in Europe as this research really shows how fast the Chinese industry is moving One major result is how important networks are for upgrading companies and it seems that Chinese firms perform better in network strategies and manage to tap into relevant knowledge than the European firms

What drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick off rdquoldquoInterview Wind Engineer Chinese Academy of Sciences

39CSQ

Social Enterprise World

ForumNadine Koumlcher from 180Degrees recounts her experience from the

conference on

Rio de Janeiro Brazil 2012

In the numerous panel debates and parallel track discussion it became clear that Impact Investment is a hot topic among both social entrepreneurs and impact investors a diverse group consisting of corporations founda-tions and potential donors However various obstacles impede a harmonious relationship between the twoSocial enterprises face structural challenges to make themselves more appealing to im-pact investors They have to become more transparent and increase their accountability This includes improving their impact assess-ment and reporting tools However despite much discussion no consensus could be formed on how to optimally conduct im-pact assessment One of the most frequently proposed methodologies involves the use

From the 16th to the 18th of October the CBS Sustainability Platform granted me the opportunity to attend the 5th Social Enter-prise World Forum which took place in Rio de Janeiro Brazil This yearly international conference focuses on social enterprises and their effectiveness in solving social challeng-es The overall theme of the 2012 conference hosted by NESsT was ldquoSocial Enterprise Investing for Impactrdquo Thus for three days over 180 speakers and 650 delegates from 30 different countries shared their experiences regarding impact investment and discussed possibilities to attract new investment by both the public and the private sector for so-cial enterprises

of control groups Story-telling has also been men-tioned to be a powerful tool to provide investors with a proof of outcomesSocial investors are willing to accept returns just below the market rate in exchange for a social return However large profits are still expect-ed and many social enter-prises are afraid of being unable to generate them Social enterprises typically operate on a small scale and are not used to undertake large projects with huge sums of investment given to them Many are too small for social investors to be

attractive as costs are similar for small and large investments although larger invest-ments have a higher payoff

Nichole Echert the CEO of NESsT there-fore pointed out that it is necessary to align expectations between impact investors and social entrepreneurs and to be patient in establishing a relationship between the two groups The expected financial return has to be reasonable close to covering the costs of operation and social returns have to be re-ported to investors by use of clearer criteria

By Nadine Koumlcher Director of Branch Development180 Degrees Consulting Limited

ldquoSocial Enterprise Investing for Impactrdquo

Students

40 CSQ

A highlight of the con-ference was definitely the site visit to a social enterprise project in a recently pacified fave-la It brought further insights on the great variety of social enter-prises that exist in Bra-zil and their missions and struggles We visit-ed a community center at which Comitecirc para

Democratizaccedilao da Informaacutetica (CDI) uses technology to fight poverty and to stimulate entrepreneurship CDI has formed a corpo-rate partnership with Coca Cola which in the same building teaches young locals how to write a CV and find a job Talking to the young locals at the center it became apparent that an increased self-confidence and the in-spiration they get from meeting former now employed participants of the project (eg at Coca Cola) is what they valued most of being part of the class

Participating at the conference was definite-ly a unique and valuable experience I would not want to miss as I tremendously improved my knowledge in the field of social enter-prises through attending the numerous pres-entations and discussions and further met so many inspiring social entrepreneurs impact

In addition it has been stressed that the problem is not a shortage of investment capital (even though the government could promote more impact investment by for instance granting tax breaks) but how to deploy it Social entrepreneurs also have to be aware of the different advantages and dis-advantages of the various types of capital It has to fit their process of establishment and it has therefore been suggested that funds and grants are most optimal in the start-up phase to cover such costs as capacity train-ing There is generally a lack of this early stage financial support Following the initial phase strategic philanthropy money would be most appropriate before impact and final-ly equity investment is sought Furthermore new ways of investment which fit the social enterprise world have to be created replac-ing the current situation of trying to fit social enterprises into the current financial world

investors and students with a genuine inter-est in the field

Participating at the conference was definitely a unique and valuable experience rdquo

ldquo

Social Enterprise World Forum 2013 in

Calgary Canada

The TRICO Charitable Foundation in part-nership with the Social Enterprise Council of Canada and the Social Finance Forum has been selected to host the 6th Annual Social Enterprise World Forum SEWF 2013 will take place October 2-4 2013 in Calgary Al-berta The Forum will present the Canadian social enterprise movement with opportuni-ties to engage learn and share on the inter-national stage

SEWF 2013 will be a gathering of over 1000 Canadian and international delegates who are involved in the social enterprise move-ment where the blending of social and fi-nancial values is core to business Attendees will consist of practitioners (from all sec-tors) funders investors supporters elected officials and public servants from around the world

Nadine Koumlcher

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 21: CBS Sustainability Quarterly 2013 #1

21CSQ

The topics in the second panel debate evolved around some of the same issues as in the first panel debate The audience was very interested in the educational aspect of CSR and sustainability and a discussion fol-lowed concerning the issues of lsquopreaching to the convertedrsquo Research shows that 75 of CSR courses are not mandatory 1 thus those students and executives who have a natural interest in CSR and sustainability enroll for these courses The speakers agreed that this posed a challenge for the future and that business schools might have to re-invent themselves in this regard They stressed that it is crucial that CSR and sustainability courses become mandatory Also the prac-titioners advocated in-company learning They set forth the argument that it may be a long time before current students will have sufficient impact on the corporate sector but also because the corporate sector and the ac-ademic world can learn from one another

Sum-up of key perspectives for the future

So how has lsquothe business of business really changedrsquo and in what direction From the afternoonrsquos discussions there were two recur-ring topics Susanne Stormer briefly touched upon it when she talked about transforma-tional partnerships Annette Stube and AP

Annette Stube set forth the argument that ldquothe business of business has really changedrdquo She gave an example of how AP Moller ndash Maersk should use their position in the shipping industry to facilitate substantial changes Simon Pickard supported her argu

ment stating that it is not possible for single corporations to make a difference but that clusters of corporations have to collaborate to push changes If corporations do not join forces they risk only making incremental changes Simon Pickard further argued paraphrasing Andrew Pettigrewrsquos argument that in the course of time there has been a conceptual change in the argument for CSR He pointed to the fact that it started out as a moral or philanthropic enterprise and is now perceived as a governance case Simon Pickard pointed to the fact that the future of business is to create shared value ie creat-ing economic value that also creates value for society at large Building on these re-marks Andreas Rasche discussed the future of standards and codes in the field of CSR Emphasizing a variety of case examples he argued that while standards have proliferated in recent years eg certification schemes in the global coffee and apparel industries there is a need to more actively manage the co-ex-istence of these initiatives in order to avoid overlap Rasche also highlighted the pivotal role of consumers who need to acknowledge standards and labels as market signals and factor social and environmental concerns into purchasing decisions

Moller ndash Maersk has it as an integrated and crucial part of their CSR policies and Simon Pickard highlighted how instrumental the-ories are no longer enough The concept of shared value is inescapable and it is what the lsquobusiness of businessrsquo in the early 21st centu-ry is really about

A second topic which also attracted a lot of attention was the importance of continuous education of both lsquothe convertedrsquo but also of opponents of CSR and people who are not aware of the importance of CSR and sustain-ability In-company learning was depicted as a crucial part of the development of CSR and sustainability however a physical change in the teaching settings is also required to meet the approaching environmental challenges

Centre Director Esben Rahbek Pedersen concluded the conference and the winners of the prize of 25000 DKK to participate in the IBECC case competition in San Diego in May 2013 were announced and the celebra-tion of cbsCSR ended with a reception

Thank you to all the speakers moderators and guests for an inspirational afternoon

By Elise Lind Jacobsen and Line Pedini Rasmussen cbsCSR

1Rasche A Gilbert DU and Schedel I (2013) Cross-Disciplinary Ethics Education in MBA Programs Rhetoric or Reality Academy of Management Learning and Education (forthcoming)

Three of the keynote speakers (from left) Professor Gail Whiteman from Rotterdam School of Management VP of Corporate Sustainability at Novo Nordisk Susanne Stormer and Sustaina-bility Professor at CBS Lucia Reisch

Simon Pickard Director General at ABIS

22 CSQ

UPDATE FROM

CBS GOES GREENThe Green Associate Program

2012 was an exciting year for CBS Goes Green with many great achievements One of the new initiatives that was launched in 2012 was the Green Associate Program Here CBS students were able to volunteer in a program to support sustainable behavior among students and staff at CBS More precisely 25 CBS stu-dents put in 30 hours of voluntary work to help with the planning and execution of Green Week - a week consisting of a lineup of successful companies shar-ing their sustainable initiatives and thoughts The overwhelming interest in sustainability and sustain-able business among the students has made it evi-dent that the Green Associate Program should con-tinue in 2013 We at CBS Goes Green look forward to this as well as all of the other initiatives we will be conducting in 2013

The following is an extract of an article that three of the associates wrote themselves This extract shows the associatesrsquo own experience working with CBS Goes Green

What does it mean to be an

associate with CBS Goes Green

In Week 39 CBS turned into a plethora of green initia-tives and events in order to make CBS reach its sustaina-bility goals for 2020 Both students and employees at CBS were asked to become a Green Ambassador to help CBS be smarter greener and better

But many of you may wonder how it is to be one of the people behind the scene As associates we have been help-ing out before and during Green Week in order to establish an event that would reach all corners of CBS This has re-quired both time and effort in order to make things work out but in the end there are also a lot of gains from being an associate

Firstly as an associate you get to expand your network You get to work with people from different studies countries and ages and you also get to talk to many different people while promoting

A bonus about being an associate is also that you get an official certificate which can be attached to your resume This shows that you have put an effort into making Green Week happen

Furthermore by being an associate you feel like you have a larger impact on making CBS a greener place Instead of being an ambassador and only doing the things you can do you get to be the person who raises awareness about sustainability You may influence people to make the right choices and it makes you feel good

Lastly it also gives you a feeling of responsibility because you work under an official part of CBS CBS Goes Green ndash a unit with a clear agenda and a clear vision

By Michael Nguyen Christian Charity and Christian-Philip Lundahl

Updates from partner organizations at CBS

23CSQ

International conference on sustainable biofuels presents latest research

By Barbara Louise Bech Department of Business and Politics CBS

EU Renewable Energy Directive

In 2009 the EU RED set a mandatory target for member states to use a minimum of 10 renewable energy sources in the transport sector by 2020 of which biofuels is expected to be the main contributor This is part of a policy to cut greenhouse gas emissions promote the green technology sector develop rural areas and reduce dependency on fos-sil fuels Due to increasing controversies claiming lack of sustainability in first generation biofuels based on food crops recently the EU pro-posed an amendment to the Directive limiting the share of first gener-ation biofuels to 5 of the targeted 10

The debate quickly zoomed in on the sustainability criteria as outlined in the EU RED drawing attention to the lack of social safeguards The general consensus is that the concept of sustainability is too narrow-ly defined Several case studies (Mozambique Brazil and Indonesia) show that basic labor and human rights of local populations are not protected by RED and the directive is more viewed as an environmen-tal safeguard This discussion raised questions in regard to the effects of RED globally (eg sustainable production in developing countries) and in this context whether EU legislation can have a lsquotrickle downrsquo effect on national standards of nation-states outside the EU In this re-gards one could ask if enforcement at the local level falls under the re-sponsibility of the EU but since first generation biofuels are produced outside the EU it is an important issue for European consumers ndash al-though interest is currently mainly driven by NGOs

On November 19-20 2012 the Copenhagen Biofuels Research Network (COBREN) held an international conference on sustainable biofuels inviting 30 research-ers from around the world to present and discuss their latest research During the two day conference focus was the sustainability criteria of the EU Renewable Energy Directive (RED) voluntary certification schemes and their impacts on sustainability and social safeguards in producer (developing) countries in particular and governance complexity of the biofuel system which has grown considerably over the past decade

Rough guide to biofuelsThere are two types of biofuels biodiesel and ethanol First generation biofuels (1G) are based on food crops and feed stocks such as palm oil soybean and rapeseed used for the production of biodiesel and sugarcane and corn for ethanol The produc-tion of biofuels increased heavily in the 2000s questioning the sustainability of 1G A number of issues have been claimed as key impediments to sustainable biofuel production such as deforestation competition with food production and increasing food prices loss of biodiversity lack of social and environmental safeguards and indirect land use change (ILUC) These contro-versies have led to a call for the promotion of second generation biofuels (2G) which are typically based on agricultural waste (eg straw) plants and forestry residues (also called lignocellu-losic biomassmaterials) However the immediate problem is that there is yet to be developed a market for 2G as they are more costly to produce (require longer and more complex production process)

CBS Sustainability Platform co-director and organizer of the COBREN conference Stefano Ponte doing a presentation

Event

24 CSQ

Voluntary certification schemes

In relation to how standards and certifications can impact sustainable biofuel production discussions pointed to the important difference be-tween mandatory and voluntary schemes As the controversy of sus-tainable biofuels in particular first generation is rolling out special attention has been given to biofuel production competing with food production ILUC value of emissions reduction and environmental and social issues This have off sprung a proliferation in private certifi-cations and during the conference it was discussed intensely whether these schemes have an actual effect on sustainability Depending on the point of view certifications can fill out the holes in legislation and act as a tool to force companies to comply with sustainability crite-ria However the development processes of new certifications may not be inclusive of relevant stakeholders (eg representatives of local populations) Additionally the nature and governance of the networks steering these processes is not always transparent and may favor one interest over the other This intense discussion led to the question of the purpose of certifications Can we use them for anything other than as a CSR PR tool as long as consumer awareness is as low as it is and how do the different regional drivers influence sustainability as a concept The answers to these questions are not easily found and it will be interesting to observe the future development and partnership between public and private sector

Governing the biofuel industry

Within the past decade biodiesel production has risen from below 30PJ in 2000 to 572PJ in 2009 globally and fuel ethanol production has increased from 340PJ to 1540 PJ respectively As the market expands more actors eg governments international organizations civil soci-ety and NGOs private sector networks and companies and profes-sions (biofuel experts and consultants) get involved and play different roles to promote their own agendas Being an emerging industry the structure of the biofuel system shows hybrid forms of governance with many actors As controversies of biofuelsrsquo sustainability develop more issues are added to the agenda giving life to more actors and interests in the governance structure Research shows a shift in power balance as private companies and NGOs increasingly push the agenda The dis-cussions during the conference centered on the complexity of sustain-ability issues calling for mixed governance responses and governance instruments such as standards and certifications which in return need to be followed up with endorsement instruments Given these com-plexities the question is whether the biofuel industry is too difficult to govern as long as the governing systems (for instance the EU) cannot accommodate expectations of all stakeholders

Indirect land use change (ILUC)ILUC is the unintended consequence in terms of more carbon emis-sions due to land use change around the world induced by the expan-sion of croplands for biofuel production When land that could be used to grow food and feed crops is used to grow energy crops this leads to existing agricultural production moving to another area or country where land is converted When this land is cleared and converted to cropland and because natural lands (rainforests and grasslands) store and sequester carbon in their soil and biomass a net increase in GHG emissions can occur Due to this change in the carbon stock of the soil and the biomass ILUC has consequences in the GHG balance of a biofuel Adding to this complexity models for ILUC calculations are not mainstreamed and thus difficult to assess internationally

25CSQ

Mellemfolkeligt Samvirke (MS) or Action Aid Denmark is a Danish NGO founded back in 1944 The

organizations key objective is to fight poverty by ensuring greater political influence for the worldrsquos poor and margin-alized at the local national and international levels MS works to bring about long-term development in the worldrsquos poorest countries focusing especially on education co-

operation and the ability to organize MS mainly works in Africa Read more about the organizationrsquos work

at wwwactionaiddk

Action Aid

A private sector view on the future of sustainable biofuels

By Barbara Louise Bech Department of Business and Politics CBS

nergy security continues to be an eminent concern in a world of finite resources For a long time biofuels have been viewed as

one of the key solutions to replace our dependency on fossil fuels and battle climate change but in recent years controversy has contested the sustainability of first generation biofuels based on food stock Issues such as lack of environmental safeguards causing loss of biodiversi-ty and deforestation and lack of social safeguards ensuring land and labor rights in producer (developing) countries have been claimed as key impediments to sustainable biofuel production Critical observers also argue that the emission savings of biofuel use in compar-ison to fossil fuels can become much smaller (or even disappear) when indirect land use change (ILUC) is included in the calculations Furthermore bi-omass production from food stock is argued to compete with food production and in-creasing food prices

The Danish NGO Action Aid has been engaged in biofuels since 2008 and is par-ticularly involved in protecting womenrsquos rights and preventing land grabs in de-veloping countries ldquoWe are very concerned about land use when it comes to first genera-tion biofuels This relates both to the people who are dependent on the land and to food security We rarely see good combinations where the local populationrsquos needs are taken into consideration The energy crops grown on the local farmerrsquos land donrsquot benefit him and local consumption is essential for developmentrdquo explains Kirsten Hjoslashrnholm Soslashrensen political advisor Action Aid Denmark

It is therefore believed by many that second generation biofuels is the only way forward to avoid competition with food and avert ILUC Next generation biofuels is based on lignocellulosic biomass such as agricultural and household waste and forest residues The Biorefining Alliance represents a cluster of leading Danish companies within the renewable energy sector with an ambition to promote second gener-

ation biofuels and make Denmark a world leader of technology and bi-ofuel productionldquoDenmark has very strong competencies in green tech and as a society we have put a lot of money in its development This is go-ing to be a huge deal globally so we are asking whether Denmark wants to be a customer or a producer What we are working for is of course that we become a lead exporter of technology but also that Denmark produces second generation biofuels commercially Even though we are a small country we cannot settle on selling know-how Denmark also needs to have some industrial productionrdquo says Anne Grete Holmsgaard di-

rector of Biorefining Alliance In her view Denmark needs to keep a firm grip on developing innovation or it will slowly but

steadily move out of the country In this regard she views sustainability criteria for biofuels as an in-

novator and not a hindrance

The Sustainable Biofuels Network (SBN) is another cluster of private companies trying to facilitate the transition from fossil fuels to biofuels in the transport sector For the aviation industry biofuels are considered

to be the only alternative to fossil fuels and the industry firmly believes that biofuels will

survive according to Robert Arendal chairman of SBN ldquoThe aviation industry has set very clear

guidelines for the use of biofuels We are not going to use food based biofuels and we will minimize the use of fresh

water By 2050 our target is to use 50 biofuels in the global aviation so we really need to move fastrdquo he explains adding that living up to sustainability criteria includes being careful about where biofuels are produced ldquoBut it should be produced all over the world and close to the 1600 airports worldwide that account for 95 of all aviationrdquo

he technology for second generation biofuels is already here but the problem is that production costs are too high and there is no market As long as prices are not competitive with conventional fuels it will be difficult to move forward ldquoOne might ask why there is no market The customers are certainly there so if I was in the business of producing

E

As part of the COBREN international conference on sustainable biofuels private sector civil society and academia were invited to give their views on sustainable biofuels at a roundtable discussion at an open public seminar held at DIIS November 19 2012

Event

26 CSQ

SBN is a ldquobreeding groundrdquo and ldquoknowledge centerrdquo for the biofu-els industry where synergies are created between all parties within

the biofuels sector SBN focuses in promoting supporting and enabling the commercial development and use of clean and sustainable biofuels for Heavy Road Transportation Shipping and Aviation Emphasis is put on the importance of global standards for biofuels with local as well as international institutions and decision makers to encourage con-

structive guidelines and rules for the development of biofuels SBN adheres to EUrsquos sustainability criteria SBN is a non-profit asso-

ciation established in 2008 Visit their website for more info at wwwsustainablebiofulsdk

Sustainable Biofuels Network(SBN)

The Biorefining Alliance (BA) was founded December 2011 by DONG Energy Novozymes Haldor Topsoslashe and the

Danish Agriculture and Food Council and is a three-year project to politically promote Denmarkrsquos position in the entire value chain from residues to bio-based products The Alliance has set forth a number of recommendations to achieve a sustainable Danish bio-economy Among other these include (i) that all organic

waste be considered a resource (high-value recycling and storable energy) (ii) reducing the cost of manufacturing 2G

bioethanol and (iii) contemplating the establishment of a national center for sustainable materials

Biorefining Alliance

second generation biofuels I would get started right awayrdquo says Robert Arendal The Biorefining Alliance is working on lowering the costs and recommends a stronger regulatory framework with binding targets as it has been done for the wind industry ldquoThere already is a market for first generation biodiesel which is the least sustainable biofuel We need to make a market for second generation biofuels and we know that binding targets work I donrsquot think it is possible to create a market for the lsquogreen consumerrsquo as you have one for organic food products but I believe that a niche market for HRT (Heavy Road Transport red) such as public bus transport could be a supplementrdquo concludes Anne Grete Holmsgaard

How the future for sustainable biofuels will shape depends on political will to create a market for second generation and the ability of private sector to innovate and bring prices down Oil production is claimed by some to already have peaked and exploring new geographical areas for extraction could be as costly as kick-starting the market for second generation biofuels although much less sustainable As the American ecologist and environmentalist Bill McKibben wrote in his book ldquoDeep Economyrdquo back in 2007

Even before we run out of oil wersquore running out of planetrdquoldquo Bill McKibben

27CSQ

The Transparency-Sustainability NexusA workshop on the practices meanings and tensions of organiza-

tional transparency

n December 5 2012 the Department of Intercultural Communication and Management (ICM) hosted an in-

ternational workshop supported by CBS Sustainability Plat-form and ICM The workshop was organized by Oana Brindusa Albu Mikkel Flyverbom and Hans Krause Hansen respectively PhD Fellow and Associate Professors at ICM The idea of the workshop was spurred by the observation that while ideals of transparency like lsquoopennessrsquo lsquodisclosurersquo and lsquoreportingrsquo are pro-liferating these years the actual construction of transparency within and across organizations is poorly understood Most re-search on transparency is highly normative if not celebratory just as popular discourse about transparency not least in the areas of sustainability and corporate social responsibility is obsessed with ideals of accountability performance and effi-ciency and pervaded by an optimism currently pushed to its extreme with the explosion of new media technologies

But the truth is that we generally know very little about the implications of ideals of transparency when translated into practice in specific issue areas and organizational contexts Importantly each of the contributions to this workshop clear-ly suggested that the contemporary politics of transparency is much more complex contradictory and dynamic than tradi-tionally recognized All papers examined various aspects of the contemporary obsession with transparency and specifically the increasing use of disclosure techniques within and around or-ganizations the rationales or myths underpinning these meas-ures their intended and unintended consequences including implications for identity-making management and govern-ance practices

Clare Birchall initiated the workshop with a paper titled lsquoThe Cultural Politics of Disclosurersquo highlighting how transparency has been positioned as a superior form of disclosure in popular management and organizational literatures and in policy docu-ments In her account the growing preference for transparency is a consequence not only of the positive qualities seen to be intrinsic to transparency itself but also a response to the per-ceived negative characteristics of other forms of disclosure such as gossip scandal and rumor Lars Thoslashger Christensen (with co-author Joep Cornelissen) then analyzed transparency as one of the foundational myths of modernity myths understood here as descriptions of the world in a narrative form which seeks to produce meaning and direction for a community and its members Such lsquoMyths of Transparencyrsquo sustain numerous organizational practices ndash including openness information provision and auditing But as argued by the authors there are conflicting evidence regarding the capacity of such practices to create insights and understandingThat aspirations and techniques of transparency can have seri-ous repercussions was demonstrated by Peter Skaeligrbaeligk (with co-author Mark Christensen) in the paper entitled lsquoAuditing and the purification of blamersquo which analyzed how auditing auditing practices and institutional entities including the po-liticized environments surrounding them are mobilized and participate in blame games and allocation In his paper titled lsquoQuantification transparency and the costs of reassurancersquo Henrik Vollmer analyzed various dimensions of the role of nu-merical records and signaling in generating transparency trust and mistrust

By Hans Krause Hansen Department of Intercultural Communication amp Management

Event

O

28 CSQ

Some of these aspects were also touched upon in the paper lsquoDisrupted Disclosures The Politics of Visibility and Surveil-lance in the Extractive Industriesrsquo by Hans Krause Hansen (with co-author Julie Uldam) which explored the wider field of visibility and surveillance in which contemporary transpar-ency policies are unfolding with examples from the extractive industries Oana Brindusa Albu in her lsquoTransparency and the organizational self everyday politics of identification in Cooperativesrsquo examined the paradoxical effects of values and practices of transparency on collective identity formation pro-cesses drawing upon her ongoing multi-sited fieldwork in co-operatives Under the heading of lsquoThe Improbability of Secrecyrsquo Mark Fenster analyzed the intersections of secrecy and trans-parency with examples from the US government and its efforts to control information which according to the author does not necessarily stop the flow of information Finally Mikkel Fly-verbom and Christina Garsten examined lsquoThe sway of (big) data ndash calculations and advocacy in the name of transparencyrsquo focusing on the operations of data-based forms of corporate lsquotransparency evangelismrsquo and advocacy through revelation including examples from Center for Global Development and Google

In all the workshop was highly successful in investigating not only the historical and mythical foundations of transparency but also the different practices and forms of transparency that currently shape organizations and a wide variety of issue areas It also provided a reminder of the usefulness of investigating a concept of transparency in relationship to a host of other con-cepts such as secrecy myth gossip blame surveillance visi-bility identity information and knowledge The organizers of the workshop wish to thank all workshop participants for their valuable contributions and the CBS Sustainability Platform and ICM for their support

Hans Krause Hansen

Mikkel Flyverbom

Oana Brindusa Albu

ASSOCIATE PROFESSORPHD (ICM)

ASSOCIATE PROFESSORPHD (ICM)

PHD FELLOW (ICM)

29CSQ

Louise Lyngfeldt Gorm Hansen is a PhD Fellow at the Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) She has a back-ground in Chinese Studies from Copenhagen University (BA) the Asian Studies Program at CBS (BSc) and in International Business Stud-ies and Sustainable Business (MSc) from CBS

The aim of her cross-disciplinary PhD project is to explore how the Chinese hydropower sector works with environmental sustainability and more particularly how the concept is understood and performed in the planning phase of a major dam project in the southwestern Chinese province of Yunnan

The aim of the project is to gain a deeper under-standing of how Chinese firms in the renewable energy sector such as hydropower companies understand and value sustainability as well as how such firms tackle the increasing pressure to deliver socially and environmentally balanced solutions to one of Chinarsquos major challenges lowering CO2 emissions in a time with rapidly rising water and energy demands Theoretically the project draws on - and aims to contribute to ndash a combination of Asian Studies and Science and Technology Studies

PHD FocusLouise Lyngfeldt Gorm Hansen

HYDROPOWER

SUSTAINABILITY

30 CSQ

HYDROPOWER

SUSTAINABILITY IN

CHINAy PhD project combines two of my main research interests China and

environmental sustainability I have studied China for a number of years mainly because of an interest in how the Chinese view sus-tainable development So since finishing my masters I have known that I wanted to study how China plan to tackle a sustainable tran-sition in the years to come I saw my chance when CBS announced PhD scholarships in

DanishEuropean-Chinese social science research in collaboration with the newly es-tablished Sino-Danish Center for Education and Research (SDC) and started my PhD in October 2011My PhD project focuses on the Chinese energy sector more specifically the rapidly growing part of the energy sector engaged in renewable energy Here I examine Chinarsquos second largest source of electricity gene-

eration hydropower In recent years China has become increasingly focused on reduc-ing CO2 emissions While some countries such as the US and Australia are decommis-sioning hydropower dams China is looking to large-scale hydropower construction as one of the solutions to a future clean energy supply This means that hydropower devel-opment plays a central role in Chinarsquos sus-tainable transition

However utilization of hydropower is con-troversial not least in China and has met increasing resistance in recent years particu-larly from Chinese and international NGOs the media as well as the scientific commu-nity Critique is most often focused on how or if social and environmental sustainability can be ensured in such large scale projects as the social and environmental impacts of large scale hydropower development are very complex and difficult to measure More gen-erally the viability of relying on hydropow-er as a future source of energy is also being questioned One of the major concerns here is the overarching issue of climate change ie glaciers shrinking and yearly water runoff decreasing This means less stable water flow for hydropower and less water for other pur-poses such as agriculture water supply for down-stream countries etc

By Louise Lyngfeldt Gorm Hansen Asia Research Centre Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) ndash sinodanishcenterdk

M

Picture from SinoHydro promotion material 2011

Research

31CSQ

In contrast to for example the wind power sector in China in which many foreign com-panies have invested the hydropower sector is dominated by a few large state-owned en-terprises Our knowledge of Chinese state-owned enterprises is still limited and there-fore my PhD project is also part of a larger research project at the Asia Research Centre with focus on Chinese state-owned enter-prises and the reform of the public sector in China

In combining these interests my PhD exam-ines how Chinese state-owned enterprises in the hydropower sector tackle the demand to expand hydropower development to help reduce Chinarsquos CO2 emissions while be-ing under increasing pressure to deliver on sustainability principles in the planning and execution of large scale hydropower pro-jects The pressure comes mainly from NGO organizations the media and the scientific community both at home and from abroad I am conducting a case study focused on a specific river in south-western China which has ndash until now ndash not been fully developed for hydropower and the plans for addition-al hydropower dams on the river are still undergoing assessments The project has continually stalled due to disagreements between Chinese government officials at all levels NGOs the media the increasingly deregulated but still state-owned Chinese hydropower companies and the scientif-ic community However the project has very recently been reopened and so will go through another round of assessments in the near future The case is an excellent example of the complexity of hydropower develop-ment decisions in China but it also highlights some of the social and environmental conse-quences of the global push to decrease CO2 emissions

China plays and will continue to play an increasingly important role globally in the years to come However the country also fac-es enormous challenges - not least regarding the environment These challenges also affect economies in Western Europe - for better or worse My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective so

that we here in Europe and in Denmark can more knowledgably and actively engage with China to help solve some of these difficult challenges that eventually affect us all In do-ing this I contribute to gain a better under-standing of the Chinese perspective on envi-ronmental sustainability that can be of use to companies wanting to engage in the Chinese renewable energy sector

My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective rdquoldquo

Picture of the case-river taken by the author in 2012

32 CSQ

FROM BLUEPRINT TO PRACTICE

ENERGY EFFICIENT CONSTRUCTION

By postdoc researcher Satu Reijonen Department of Organization CBS

In the EU almost one third of CO2 emis-sions are attributed to energy used in the construction and use of buildings (FIEC

2007) It is therefore not surprising that the construction sector has recently been subjected to a substantial amount of policy measures to combat its negative effects on climate change In Denmark the state has posed new thresholds for the energy efficien-cy of new buildings including a plan for con-tinuous improvement in the area This far the industry has responded well to these stricter performance requirements In the future re-quirements will rise to levels that are not that easily achieved in the coming years build-ings will have to use 25 less energy than in year 2008 How can these ambitious goals become business as usual

One of the most discussed ways besides add-on technologies such as windmills and solar panels to enhance the energy efficiency of a building is through an energy efficient phys-ical design In practice this means reduction of energy used for heating cooling down and lighting of the building through an optimal orientation and dimensioning of the build-ing

Integrated energy design contrary to add-on technologies can be achieved on a rath-er modest additional budget This should be good news for the sector that today is eco-nomically pressed Indeed today many low energy building projects claim to use the in-tegrated energy design method (IED) when seeking to meet the most ambitious energy related goals In this commentary I wish to discuss some challenges related to the imple-mentation of this design tool

The integrated energy design method sug-gests that one of the main problems in not achieving energy efficiency is that energy related concerns become integrated into the design process too late The method consists of two elements the first of which addresses the need to bring in energy related knowl-edge throughout the design process It sug-gests that design teams ought to be multidis-ciplinary and that architects engineers and experts should work together either co-lo-cated or in a series of workshops Further-more it suggests systematizing energy quali-ty follow-ups into the design process This is all very relevant and inspiring

Oddly enough a closer look on the actual design practices reveals that few seem to ac-tually follow the method of integrated energy design to the point This poses an interest-ing question about the challenges related to the use of such management technologies as vehicles for increased energy efficiency in construction Maybe it is about time practi-tioners and researchers ask themselves what are the boundaries of and challenges related to the use of these tools ndash and what else is required for organizing for more energy effi-cient building design processes

A revolution of relations

Integrated energy design points to the need to bring energy related expertise into the de-sign process at an earlier point In order to achieve this cooperative practices between different professional groups are advocated for Historically energy experts have most-ly been used to respond to rather advanced architectural plans Shared workshops and co-localization suggest a change in these business as usual relations But are they pos-sible and what type of changes do they ac-tually imply in order to function as wished

Research

33CSQ

Satu Reijonen is postdoctoral scholar at the Department of Organization at CBS In her on-going research project she investigates how architects and energy engineers two different profes-sions cooperate and coordinate their work regarding energy related ques-tions in construction design The ways in which relations between and roles of these professions become consti-tuted through socio-material arrange-ments are a central topics in her work Besides studies of work Satu has con-ducted research on environmentally friendly products and markets

ABOUT SATU RAIJONEN

The initiation of this type of new working forms is certainly beneficial for energy effi-cient design However for several reasons they are more difficult to make work than one would assume While it may sound rea-sonable it is after all a tall order Integrating energy related practices into an environment where different visions professions and in-terests meet and the divide between what one profession does is clearly and historically demarcated is demanding While architects need to make room for the intervention of energy experts into the creative work energy experts have to become capable of working creatively and relate to and follow the visual and aesthetic cues from architects In order to work these kind of changes in the profes-sional roles and relations have to resonate with the skills and visions of individual work-ers not only management level design strat-egies It is not surprising that organizational change scholars remind us of the possibility of loose coupling from the strategies placed at the management level (March 1981) What integrated energy design suggests is a kind of a revolution in the ways in which both the architects and the energy engineers envision their role and space of mobility

Linear tools in an unlinear design process

Integrated energy design suggests that the energy performance of the emerging build-ing design be followed up at certain points during the design process The method de-picts a rather mechanistic and linear under-standing of a design process consisting of phases within which iteration may occur While energy related issues may be dis-cussed as quality goals during these phases the method places a lot of emphasis on the check ups performed in the transition from one phase to another Design processes how-ever can also be characterized in a different manner unlinear exploratory and whirl wind type of practices where clear cut phases hardly exist (Akrich 1992 Van de Ven et al 1999) This also applies to the architectural design processes where the object of the de-sign is emergent (Yaneva 2009) This entails that the product the building may change in unexpected ways during any day of the de-sign process If this alternative description of the design processes is viable delegating energy related issues to some predetermined check up episodes may strike a false accord and indeed be contradictory with the aim of enhancing coordination and cooperation between professional groups What happens in between the predetermined checkups may very well be where the energy efficiency of the building becomes configured and where the intervention from the energy experts

would come most needed Perhaps this is why the best performing projects do not blindly follow the steps of the IED method Check ups however and no doubt play a role in verifying and making visible the energy performance for partners outside the design team

Integrated energy design as many other sus-tainability standards and guidelines make visible systematize and legitimize the ex-istence of environmental management and sustainability issues in organizations and work processes In this such way tools create awareness and legitimacy for environmental and sustainability issues The integrated en-ergy design method also suggests a possible way of thinking about what type of design practice might help us to achieve the stricter energy requirements of the future It howev-er falls short in becoming the change agent it suggests This is hardly surprising as a meth-od or a standard of any kind should only be seen as a possibility or as an opening for an inquiry of what the practice could be about Reconfiguring a well established practice is hard work and it would be foolish to trust that a design method would achieve it by itself What the method does is to alert us of the more profound changes in the pro-fessional roles and relations that is needed in order to enable the change However the method due to its rather mechanical under-standing of the design process may come to work against its own ambition of integrating energy issues into the design work In its quest for integration the method defines at which points in time the architectural and the engineering project has to be checked for its energy performance This approach may lead to bringing in energy related concerns in some artificially created points in a design process which may additionally compart-mentalize energy related issues from where the design really happens

Integrated energy design as many other sustainability standards and guidelines make visible systematize and legitimize the existence of environmental management and sustainability issues in organizations and work pro-cessesrdquo

ldquoLiteratureAkrich M (1992) The De-Scription of Technical Objects in Shaping Technology Building Society Studies in Soci-otechnical Change eds WE Bijker and J Law The MIT Press Cambridge Massachusetts pp 205-224

FIEC 2007 The impacts of buildings on climate change httpwwwbuildingsplatformeuepbd_publicationdocFIEC_Memo_p2919pdf on 1222008

March JG (1981) Footnotes to Organizational Change Administrative Science Quarterly vol 26 No 4 pp 563-577

Van de Ven A D Polley R Garud and SVenkataraman (1999) The innovation Journey Oxford Oxford Univer-sity Press

Yaneva A (2009) The making of a building A pragmatist approach to Architecture Bern Peter Lang

More about integrated energy design(IED)

httpwwwintendesigncomosloIntendnsfAttachmentsGuideline_Version_2pdf$FILEGuideline_Version_2pdf

34 CSQ

The climate challenge in

shipping

ldquoGlobal shipping faces two major challenges both of which are caused by its reliance on fossil fuelsrdquo

By Reneacute Taudal Poulsen Department of Innovation amp Organizational Economics

RENEacute TAUDAL POULSEN

ASSOCIATE PROFESSOR DEPARTMENT

OF INNOVATION AND ORGANIZATIONAL

ECONOMICS COPENHAGEN BUSINESS

SCHOOL

orecasts show that the shipping indus-tryrsquos CO2 emissions will most likely continue to rise in the next two to

three decades as demand for world sea-borne trade will expand At present global shipping accounts for approximately 33 per cent of global CO2 emissions but this share will most probably increase in the coming years if many onshore industries succeed in their aims of reducing emission levels

At the same time rapidly rising fuel costs put heavy strain on shipping company budg-ets Historically and until very recently fuel costs were only a minor concern for ship-ping companies but now they often exceed 60 per cent of variable operational costs Fuel savings made through energy efficiency improvements thus represent a win-win sce-nario for the shipping industry and for so-ciety at large They simply make good sense for everyone

Despite the strong incentives for fuel sav-ings numerous studies have demonstrated that shipping fails to implement cost-ef-fective measures to reduce fuel consump-tion Fuel-saving technologies are readily available in the market and in many cases pay-back periods are very short (less than a year) Changes in operational habits which require few if any investments also hold a significant potential for fuel savings

Global shipping thus holds several classic examples of energy-efficiency gaps Gaps occur wherever cost-effective measures to improve energy efficiency fail to materialize The causes for energy efficiency gaps have been a favourite research topic within the field of energy economics for decades and economists sociologists and political scien-tists have been able to identify several means to bridge the gaps However within the mar-itime domain energy efficiency gaps and the climate challenge remain neglected issues Legal barriers

Shipsrsquo fuel consumption rises steeply with speed Hence slow-steaming or just minor speed reductions can lower consumption and emission levels significantly Since oil prices started to rise rapidly a few years ago shipping companies have indeed resorted to various slow-steaming practices and com-panies which succeed in this regard have been able to gain competitive advantages In other words actors in the industry are trying to bridge the energy efficiency gap However and in spite of the strong price signals from the rising fuel prices a potential for fuel sav-ing through slow steaming still remains

FNew CBS research project

A new three year research project at CBS under-

taken by Reneacute Taudal Poulsen for the Department

of Innovation and Organizational Economics will

examine the climate issues bringing insights from

energy economics and innovation management

into the field of shipping economics The project

which is financed by The Danish Maritime Fund

runs from 2012 to 2015 The project asks why en-

ergy efficiency gaps continue to occur in shipping

and how shipping companies and the maritime

industry at large can use innovative business

models and process innovation to turn the climate

challenge and the rising fuel costs into a business

opportunity Energy efficiency gaps occur both

in daily operations and when investments in new

vessels are made This article will briefly present

two examples of energy efficiency gaps from

the operational level and some of the preliminary

findings of the project

References

Jaffe AB and RN Stavins 1994 lsquoThe energy efficiency gap What does it meanrsquo Energy Policy 22 (110) 804-10IMO 2009 Second IMO GHG Study 2009 London International Maritime OrganizationMoriarty P amp D Honnery 2012 lsquoEnergy efficiency Lessons from transportrsquo Energy Policy 46 1ndash3Poulsen Reneacute Taudal 2012 lsquoEmissions and energy efficiency - the twin challenges for shippingrsquo Mercator Maritime Innovation Research and Education MarchJune 447-454

Reneacute Taudal Poulsen is Associate Professor at the Department of Innovation and Organizational Eco-nomics at CBS He is also affliated with the Centre for Shipping Economics and Innovation at CBS Reneacute Taudal Poulsen holds a PhD degree in marine environmental history from the University of Southern Denmark and he has worked within the field of maritime business studies for the last seven years He has published in such journals as Fisheries Research Business History and Scandinavian Economic History Review

His current research intersts concern the environmen-tal challenges faced by the global shipping industry and business model innovation in the maritime domain

Research

35CSQ

It is clear that shipping companies cannot fully bridge the energy efficiency gap alone In fact factors beyond the control of in-dividual shipping companies and various structural or legal barriers prevent shipping from fully realizing the slow steaming po-tential

Port congestion remains a world-wide prob-lem and causes ships to spend remarkably long periods inactive Despite the financial crisis and the large drop in shipping freight markets after 2008 many loaded vessels sit at anchor outside ports waiting for berths In some cases they wait for a few hours In other cases for days weeks or even months Instead of waiting the ships could have re-duced speeds and saved fuel And the de-livery and the loading of the cargo in port would not have been delayed in any way However in many cases shipping companies or ship operators cannot reduce speed in spite of port congestion

Educational barriers

Energy efficiency gaps in shipping are also evident when the fuel consumption levels of sister ships are compared Even though the vessels are identical and operate in the same waters studies have shown that their fuel consumption may differ by several Decisions made by the crews onboard and by managers in the onshore organizations clearly influence the level of fuel consump-tion For instance if a captain selects only very small course deviation margins when coding the autopilot of the ship the shiprsquos rudder will move frequently to keep the ship on the exact course all the time This will slow down the ship and cause higher fuel consumption than if the captain had allowed for slightly wider margins and the wider margins would not have any effect on the safety of the ship Decisions made by the commercial depart-ments eg on how to crew the vessels how to monitor vessel fuel consumption or which new equipment to install onboard may also

have a large impact on fuel efficiency and emission levels If shipping company man-agers can nurture a fuel saving culture this could potentially make a difference Since 2007 or 2008 shipping companies have in-deed started to facilitate such organizational changes but educational barriers remain a problemOnshore truck drivers are now offered fuel saving courses but fuel-saving is not a major part of the traditional curriculum in nautical schools or in the commercial education of shipping trainees For good reasons the nau-tical educations have focused on maritime safety but this has caused them to neglect the climate challenge in shipping and the is-sue of fuel saving In fact no single nauticaltext book on maritime fuel savings has yet been published and according to teachers and students in the nautical schools this serves as an educational barrier to ener-gy-efficiency improvements The technical level of education for commercial employees in shipping companies may also hinder im-provements in energy-efficiency Some com-

mercial shipping employees may not have sufficient training to fully see and acknowl-edge the consequences of their decisions on fuel consumption In short it seems that fuel awareness and the educational systems have responded more slowly to the climate chal-lenge than the rise in fuel prices may other-wise suggest

For shipping to bridge energy-efficiency gaps education ndash both nautical and com-mercial ones ndash clearly is an area to set in Here the potential for innovative solutions is both evident and pertinent Changing educational systems and awareness is no easy task bearing in mind the global nature of the shipping industry and international crewing of the world fleet It is clear howev-er that educational upgrading is necessary for shipping to effectively address the cli-mate challenge effectively

Charter parties between ship-operators and shippers state a specific time of arrival for the vessel and in order to avoid claims ships proceed to port accordingly regardless of berth availability Experiments with new more flexible charter parties which allow for slow steaming in case of port congestion have recently been made Shipping compa-nies have generally been enthusiastic about this flexibility but often shippers remain skeptical Lack of trust between shippers which need the loading of their cargoes as soon as possible and shipping companies may be a cause for this discrepancy Even in cases where the savings made from slow-steaming are split between shipping companies and shippers shippers have re-mained skeptical Port queuing systems may have a role to play here

Many ports including some of the major container iron ore coal and grain ports serve ships on ldquofirst-come first-servedrdquo ba-sis Ships only receive their ldquoticketrdquo in the

waiting line upon their arrival at the port Again lack of trust between the ship-oper-ators shippers and the port authorities may explain this phenomenon Moreover port authorities currently do not have incentives to change queuing practices because they cannot gain a share in the fuel savings made from slow-steaming

The problem is particularly strong in the major tramp shipping segments of tanker and dry cargo shipping where vessels act as ldquotaxis of the seardquo serving numerous shippers and rarely calling at the same ports If the fleet from a shipping company only calls at a particular port once a year and the compa-ny has very short-term relations to individ-ual shippers building trustful relationships between the parties remains a major chal-lenge Solving this problem and realizing the full potential of slow steaming will require systemic innovation in shipping and port systems and further studies are required to identify possible solutions

36 CSQ

The Wind turbine industry -

Emerging global innovation networks in Europe and China

The wind turbine industry has developed into a global network encompassing a large amount of diverse actors within innovation production and installation of wind turbines across the globe

By Stine Haakonsson and Julia Kirch Hollitsch Department of Business amp Politics CBS

market for wind energy Chinese actors have turned China as a location into another im-portant lsquohubrsquo in this network This has led to new forms of innovation collaborations between European and Chinese actors The result has been a complete re-configuration of the industry over the past decade In the International Business and Economic Geog-raphy literatures the development of global production networks in which lead-firms be-come orchestrators of dispersed production

enmark has traditionally played a key role as an lsquoinnovation hubrsquo and com-

panies in Denmark remain among the lead firms within the wind turbine industry Re-cently the industry has reorganized from being located predominantly in the Triad regions (mainly in Europe and the US) to becoming a globally dispersed industry This development can partly be explained by de-velopments in international and national politics Due to the growth of the Chinese

activities in globalized value chains is well established theoretically as well as empiri-cally In the globalization process lead firms relocate production activities to low cost lo-cations by off-shoring and through vertical disintegration and outsourcing to specialized suppliers Producers of wind turbines are no exception However until recently the mar-ket and innovation activities remained con-centrated in Europe and US

With the recent focus on global politics for a post-carbon society the market for wind tur-bines has experienced an immense growth and a high degree of market globalization New locations have developed into main markets One of these is China which since 2010 has been the largest market for wind turbines in the world (in capacity installed) The globalization process in the wind tur-bine can be explained by a combination of offshoring of production by European lead firms mainly through foreign direct invest-ment and establishment of domestic lead firms in emerging markets In 2010 there were four Chinese-owned companies among the top-10 producers of wind turbines as compared to 2003 where all firms on this list were from Europe and the US

D

Julia Kirch Hollitsch

Stine Haakonsson

Stine Haakonsson and Julia Kirch Hollitsch from Depart-

ment of Business and Politics CBS are engaged in the

Sino-Danish Center for Research and Education (SDC)

project on Wind Energy in China Both research on the

current restructuring of industries and firms at the glob-

al level (outsourcing off shoring global value chains)

In particular their research is on 1) the restructuring of

innovation and RampD activities into global innovation net-

works(GINs)2)thechangingroleofemergingmarkets

(ChinaIndiaBrazilSouthAfrica)intheseemergingGINs

and 3) technology transfer and capability building related

to renewable energy

Research

37CSQ

by adapting their products to the Chinese market and through cost-out development activities in the new locations primarily China

As a result the wind industry is today highly knowledge-intensive and internationalized Due to increased attention and investments in sustainable transition policies and car-bon-reducing technology China has over the past decade developed into a high prior-ity investment area for wind turbines Also Chinese companies are upgrading technol-ogy and innovation from the global firms through integration into GINs Moreover the production and innovation networks for wind energy become highly complex and consist of many different suppliers of com-ponents (blades gear boxes control systems bearings) resulting in a variety of network linkages among suppliers of different com-ponents and the wind turbine producers

From our empirical data including more than 40 in-depth interviews collected in 2011 and 2012 in the wind turbines indus-tries in China and Denmark we have identi-fied some very interesting patterns We have identified very different characteristics of the GINs established by the Chinese wind tur-bine industry and the European wind tur

Emerging Global Innovation Networks

Innovation processes are also moving be-yond the boundaries of individual compa-nies and national innovation systems Firms engage in cross-border innovation networks spanning different innovation systems which may be national regional or sectorial in or-der to stay competitive in the global econ-omy Chinese lead firms are entering this scene too The result is globally organized networks of interconnected and integrated functions and operations by firms and non-firm organizations engaged in the develop-ment and diffusion of innovations so-called Global Innovation Networks (GINs) Lead firms internationalize innovation through strategies of exploitation global generation of innovation and global techno-scientific collaborations Chinese wind turbine pro-ducers ndash acknowledging their resource and capability deficiency ndash pursue strategies of innovation network integration through strategies of global generation of innovation These firms link up with specialized Europe-an actors such as core component suppliers through partnerships and networks in or-der to tap into the technology of firms from developed countries and upgrade Mean-while European companies internationalize through exploitation strategies for example

bine industry Although Danish and Chinese actors are experiencing a re-organization of activities and establish networks and globa-linnovation strategies the result is very dif-ferent

The industry from Europe and US

The industry from Europe and the US hosts the lead firms in terms of core technology de-velopment Denmark has traditionally played a key role as lsquoinnovation hubrsquo in technology development and global lead firms such as Vestas and Siemens Windpower (previously Danish lsquoBonusrsquo) took its start already in the 1970s The core competences of the Danish wind turbine innovation system are based on large testing facilities and long track records mainly due to the long time-line of experi-ence The wind industry goes 40 years back and therefore Denmark has a good knowl-edge pool within establishing wind farms (aerodynamics minimizing power loss in energy transmission wind mapping and other installation-related technologies)

38 CSQ

that will make it possible to finance the pro-jects ldquoFrom then on our wind turbine pro-jects developed very fastrdquo(Interview Wind Engineer Chinese Academy of Sciences) Thus this law was a milestone for elevating renewables to a strategic position in China or as expressed by a European lead-firm ldquoWhat drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick offrdquo

Until the turn of the millennium Chinarsquos wind energy industry was largely built on donors acquisition of finished wind turbines and licensed technology from European companies spread on a very small scale into the local industry during the mid 1990s Chi-nese wind turbine technology has evolved from imitation reverse engineering and licensing in the 1980-90s combined with assistance from foreign consultants One example is how DANIDA funded a project in 1986 for Goldwind in Xinjiang which imported 13 units of 150 kW lsquoBonusrsquo (now Siemens Wind Power) turbines

To get beyond the stage of pure imitation several policies have been introduced with the intent to upgrade Chinese manufacturers to obtain indigenous innovative capabilities Policy programs were introduced to enhance Chinese companies to develop wind energy subsidizing wind energy RampD expenditures at varied levels over time establishing a re-newable energy fund and through the ldquo863 Wind Programrdquo under the Tenth Five-Year Plan (2001-2005) Local content require-ments were put in place in which develop-ers of wind energy projects were required to source 70 pct of the content in China These policies ndash which essentially forced foreign manufacturers wishing to sell wind turbines to the Chinese market to establish China-based manufacturing facilities ndash were only removed recently (in 2009) One result was that the foreign companies had to up-grade local suppliers of components

Due to the technological complexity many European (and hereby also the Danish) firms are vertically integrated and have most com-ponents produced in-house or with regular specialized suppliers According to these companies the different parts need to be well adjusted to each other to some extent even co-developed in order to enhance effi-ciency and the lifetime of the wind turbine Likewise the European industry has expe-rienced a concentration of actors with the result that there are only relatively few but large manufacturers in Europe (the larg-est ones are Vestas Siemens Gamesa and Enercon) Together these four companies accounted for about 35 of the global mar-ket in 2010 By seeing the wind turbine as an integrated system these lead firms aim at producing lsquothe Rolls Roycersquo model wind turbines These are strong in terms of qual-ity and standards but generally expensive These firms learn cost-out techniques from their engagement with partners in China

The Chinese Wind Turbine Industry

Today the Chinese wind turbine industry is overly competitive It entails more than 80 wind turbine manufacturers and the Chi-nese market boasts the highest growth rates internationally with an average growth rate of 968 percentages annually in the last three years Several large domestic Chinese wind turbine manufacturers have emerged within the last decade Sinovel and Goldwind take the largest share followed by United Pow-er and Ming Yang just to mention some of them As of the end of 2010 these four were A major driver for the development of the Chinese wind energy market has been the establishment of an institutional context as a comprehensive concerted policy frame-work addressing the development of renewa-ble energies This change in the institutional context was first reflected clearly in the 11th 5-year-plan (2006-2010) which explicitly linked environmental sustainability to the key goal of establishing what was called a harmonious socialist society signalling a socially environmentally and economically sustainable economy With the Renewable Energy Law from 2005 the Chinese wind energy industry really took off as it explicitly seeks to ensure that renewable energy pro-jects have an outlet for their output at prices

Technical barriers and the role of GINs for a post-carbon society

Despite high ambitions in terms of devel-oping innovative capabilities Chinese pro-ducers still produce almost exclusively for the Chinese market However Chinese wind turbine manufacturers have recently started an internationalisation process and some are approaching international markets Not least for tapping into new knowledge

Europe (and Denmark in particular) is per-ceived as a main location from which the Chinese companies can learn more A cou-ple of Chinese companies have already set up RampD centres in Denmark European firms have also initiated RampD centres in new lo-cations primarily China and India In other words GINs can be identified

Our research also points towards important barriers for GINs in the wind turbine in-dustry and for approaching a post-carbon global society Most importantly are the technological barriers intellectual property rights quality issues and issues of limited appropriability of knowledge Further the institutional framework remain relevant for displaying how the sector and the emerging GINs are embedded institutionally socially and technologically Whether actors trans-act knowledge technology and know-how through cooperative innovation activities also depends on how core the technology of a given technology is Still as the market grows in China it seems to have matured in Europe because of changing policies on re-newable energy To sustain the position as a global lsquohubrsquo and world leader in wind tech-nologies there is a strong need for support in Europe as this research really shows how fast the Chinese industry is moving One major result is how important networks are for upgrading companies and it seems that Chinese firms perform better in network strategies and manage to tap into relevant knowledge than the European firms

What drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick off rdquoldquoInterview Wind Engineer Chinese Academy of Sciences

39CSQ

Social Enterprise World

ForumNadine Koumlcher from 180Degrees recounts her experience from the

conference on

Rio de Janeiro Brazil 2012

In the numerous panel debates and parallel track discussion it became clear that Impact Investment is a hot topic among both social entrepreneurs and impact investors a diverse group consisting of corporations founda-tions and potential donors However various obstacles impede a harmonious relationship between the twoSocial enterprises face structural challenges to make themselves more appealing to im-pact investors They have to become more transparent and increase their accountability This includes improving their impact assess-ment and reporting tools However despite much discussion no consensus could be formed on how to optimally conduct im-pact assessment One of the most frequently proposed methodologies involves the use

From the 16th to the 18th of October the CBS Sustainability Platform granted me the opportunity to attend the 5th Social Enter-prise World Forum which took place in Rio de Janeiro Brazil This yearly international conference focuses on social enterprises and their effectiveness in solving social challeng-es The overall theme of the 2012 conference hosted by NESsT was ldquoSocial Enterprise Investing for Impactrdquo Thus for three days over 180 speakers and 650 delegates from 30 different countries shared their experiences regarding impact investment and discussed possibilities to attract new investment by both the public and the private sector for so-cial enterprises

of control groups Story-telling has also been men-tioned to be a powerful tool to provide investors with a proof of outcomesSocial investors are willing to accept returns just below the market rate in exchange for a social return However large profits are still expect-ed and many social enter-prises are afraid of being unable to generate them Social enterprises typically operate on a small scale and are not used to undertake large projects with huge sums of investment given to them Many are too small for social investors to be

attractive as costs are similar for small and large investments although larger invest-ments have a higher payoff

Nichole Echert the CEO of NESsT there-fore pointed out that it is necessary to align expectations between impact investors and social entrepreneurs and to be patient in establishing a relationship between the two groups The expected financial return has to be reasonable close to covering the costs of operation and social returns have to be re-ported to investors by use of clearer criteria

By Nadine Koumlcher Director of Branch Development180 Degrees Consulting Limited

ldquoSocial Enterprise Investing for Impactrdquo

Students

40 CSQ

A highlight of the con-ference was definitely the site visit to a social enterprise project in a recently pacified fave-la It brought further insights on the great variety of social enter-prises that exist in Bra-zil and their missions and struggles We visit-ed a community center at which Comitecirc para

Democratizaccedilao da Informaacutetica (CDI) uses technology to fight poverty and to stimulate entrepreneurship CDI has formed a corpo-rate partnership with Coca Cola which in the same building teaches young locals how to write a CV and find a job Talking to the young locals at the center it became apparent that an increased self-confidence and the in-spiration they get from meeting former now employed participants of the project (eg at Coca Cola) is what they valued most of being part of the class

Participating at the conference was definite-ly a unique and valuable experience I would not want to miss as I tremendously improved my knowledge in the field of social enter-prises through attending the numerous pres-entations and discussions and further met so many inspiring social entrepreneurs impact

In addition it has been stressed that the problem is not a shortage of investment capital (even though the government could promote more impact investment by for instance granting tax breaks) but how to deploy it Social entrepreneurs also have to be aware of the different advantages and dis-advantages of the various types of capital It has to fit their process of establishment and it has therefore been suggested that funds and grants are most optimal in the start-up phase to cover such costs as capacity train-ing There is generally a lack of this early stage financial support Following the initial phase strategic philanthropy money would be most appropriate before impact and final-ly equity investment is sought Furthermore new ways of investment which fit the social enterprise world have to be created replac-ing the current situation of trying to fit social enterprises into the current financial world

investors and students with a genuine inter-est in the field

Participating at the conference was definitely a unique and valuable experience rdquo

ldquo

Social Enterprise World Forum 2013 in

Calgary Canada

The TRICO Charitable Foundation in part-nership with the Social Enterprise Council of Canada and the Social Finance Forum has been selected to host the 6th Annual Social Enterprise World Forum SEWF 2013 will take place October 2-4 2013 in Calgary Al-berta The Forum will present the Canadian social enterprise movement with opportuni-ties to engage learn and share on the inter-national stage

SEWF 2013 will be a gathering of over 1000 Canadian and international delegates who are involved in the social enterprise move-ment where the blending of social and fi-nancial values is core to business Attendees will consist of practitioners (from all sec-tors) funders investors supporters elected officials and public servants from around the world

Nadine Koumlcher

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 22: CBS Sustainability Quarterly 2013 #1

22 CSQ

UPDATE FROM

CBS GOES GREENThe Green Associate Program

2012 was an exciting year for CBS Goes Green with many great achievements One of the new initiatives that was launched in 2012 was the Green Associate Program Here CBS students were able to volunteer in a program to support sustainable behavior among students and staff at CBS More precisely 25 CBS stu-dents put in 30 hours of voluntary work to help with the planning and execution of Green Week - a week consisting of a lineup of successful companies shar-ing their sustainable initiatives and thoughts The overwhelming interest in sustainability and sustain-able business among the students has made it evi-dent that the Green Associate Program should con-tinue in 2013 We at CBS Goes Green look forward to this as well as all of the other initiatives we will be conducting in 2013

The following is an extract of an article that three of the associates wrote themselves This extract shows the associatesrsquo own experience working with CBS Goes Green

What does it mean to be an

associate with CBS Goes Green

In Week 39 CBS turned into a plethora of green initia-tives and events in order to make CBS reach its sustaina-bility goals for 2020 Both students and employees at CBS were asked to become a Green Ambassador to help CBS be smarter greener and better

But many of you may wonder how it is to be one of the people behind the scene As associates we have been help-ing out before and during Green Week in order to establish an event that would reach all corners of CBS This has re-quired both time and effort in order to make things work out but in the end there are also a lot of gains from being an associate

Firstly as an associate you get to expand your network You get to work with people from different studies countries and ages and you also get to talk to many different people while promoting

A bonus about being an associate is also that you get an official certificate which can be attached to your resume This shows that you have put an effort into making Green Week happen

Furthermore by being an associate you feel like you have a larger impact on making CBS a greener place Instead of being an ambassador and only doing the things you can do you get to be the person who raises awareness about sustainability You may influence people to make the right choices and it makes you feel good

Lastly it also gives you a feeling of responsibility because you work under an official part of CBS CBS Goes Green ndash a unit with a clear agenda and a clear vision

By Michael Nguyen Christian Charity and Christian-Philip Lundahl

Updates from partner organizations at CBS

23CSQ

International conference on sustainable biofuels presents latest research

By Barbara Louise Bech Department of Business and Politics CBS

EU Renewable Energy Directive

In 2009 the EU RED set a mandatory target for member states to use a minimum of 10 renewable energy sources in the transport sector by 2020 of which biofuels is expected to be the main contributor This is part of a policy to cut greenhouse gas emissions promote the green technology sector develop rural areas and reduce dependency on fos-sil fuels Due to increasing controversies claiming lack of sustainability in first generation biofuels based on food crops recently the EU pro-posed an amendment to the Directive limiting the share of first gener-ation biofuels to 5 of the targeted 10

The debate quickly zoomed in on the sustainability criteria as outlined in the EU RED drawing attention to the lack of social safeguards The general consensus is that the concept of sustainability is too narrow-ly defined Several case studies (Mozambique Brazil and Indonesia) show that basic labor and human rights of local populations are not protected by RED and the directive is more viewed as an environmen-tal safeguard This discussion raised questions in regard to the effects of RED globally (eg sustainable production in developing countries) and in this context whether EU legislation can have a lsquotrickle downrsquo effect on national standards of nation-states outside the EU In this re-gards one could ask if enforcement at the local level falls under the re-sponsibility of the EU but since first generation biofuels are produced outside the EU it is an important issue for European consumers ndash al-though interest is currently mainly driven by NGOs

On November 19-20 2012 the Copenhagen Biofuels Research Network (COBREN) held an international conference on sustainable biofuels inviting 30 research-ers from around the world to present and discuss their latest research During the two day conference focus was the sustainability criteria of the EU Renewable Energy Directive (RED) voluntary certification schemes and their impacts on sustainability and social safeguards in producer (developing) countries in particular and governance complexity of the biofuel system which has grown considerably over the past decade

Rough guide to biofuelsThere are two types of biofuels biodiesel and ethanol First generation biofuels (1G) are based on food crops and feed stocks such as palm oil soybean and rapeseed used for the production of biodiesel and sugarcane and corn for ethanol The produc-tion of biofuels increased heavily in the 2000s questioning the sustainability of 1G A number of issues have been claimed as key impediments to sustainable biofuel production such as deforestation competition with food production and increasing food prices loss of biodiversity lack of social and environmental safeguards and indirect land use change (ILUC) These contro-versies have led to a call for the promotion of second generation biofuels (2G) which are typically based on agricultural waste (eg straw) plants and forestry residues (also called lignocellu-losic biomassmaterials) However the immediate problem is that there is yet to be developed a market for 2G as they are more costly to produce (require longer and more complex production process)

CBS Sustainability Platform co-director and organizer of the COBREN conference Stefano Ponte doing a presentation

Event

24 CSQ

Voluntary certification schemes

In relation to how standards and certifications can impact sustainable biofuel production discussions pointed to the important difference be-tween mandatory and voluntary schemes As the controversy of sus-tainable biofuels in particular first generation is rolling out special attention has been given to biofuel production competing with food production ILUC value of emissions reduction and environmental and social issues This have off sprung a proliferation in private certifi-cations and during the conference it was discussed intensely whether these schemes have an actual effect on sustainability Depending on the point of view certifications can fill out the holes in legislation and act as a tool to force companies to comply with sustainability crite-ria However the development processes of new certifications may not be inclusive of relevant stakeholders (eg representatives of local populations) Additionally the nature and governance of the networks steering these processes is not always transparent and may favor one interest over the other This intense discussion led to the question of the purpose of certifications Can we use them for anything other than as a CSR PR tool as long as consumer awareness is as low as it is and how do the different regional drivers influence sustainability as a concept The answers to these questions are not easily found and it will be interesting to observe the future development and partnership between public and private sector

Governing the biofuel industry

Within the past decade biodiesel production has risen from below 30PJ in 2000 to 572PJ in 2009 globally and fuel ethanol production has increased from 340PJ to 1540 PJ respectively As the market expands more actors eg governments international organizations civil soci-ety and NGOs private sector networks and companies and profes-sions (biofuel experts and consultants) get involved and play different roles to promote their own agendas Being an emerging industry the structure of the biofuel system shows hybrid forms of governance with many actors As controversies of biofuelsrsquo sustainability develop more issues are added to the agenda giving life to more actors and interests in the governance structure Research shows a shift in power balance as private companies and NGOs increasingly push the agenda The dis-cussions during the conference centered on the complexity of sustain-ability issues calling for mixed governance responses and governance instruments such as standards and certifications which in return need to be followed up with endorsement instruments Given these com-plexities the question is whether the biofuel industry is too difficult to govern as long as the governing systems (for instance the EU) cannot accommodate expectations of all stakeholders

Indirect land use change (ILUC)ILUC is the unintended consequence in terms of more carbon emis-sions due to land use change around the world induced by the expan-sion of croplands for biofuel production When land that could be used to grow food and feed crops is used to grow energy crops this leads to existing agricultural production moving to another area or country where land is converted When this land is cleared and converted to cropland and because natural lands (rainforests and grasslands) store and sequester carbon in their soil and biomass a net increase in GHG emissions can occur Due to this change in the carbon stock of the soil and the biomass ILUC has consequences in the GHG balance of a biofuel Adding to this complexity models for ILUC calculations are not mainstreamed and thus difficult to assess internationally

25CSQ

Mellemfolkeligt Samvirke (MS) or Action Aid Denmark is a Danish NGO founded back in 1944 The

organizations key objective is to fight poverty by ensuring greater political influence for the worldrsquos poor and margin-alized at the local national and international levels MS works to bring about long-term development in the worldrsquos poorest countries focusing especially on education co-

operation and the ability to organize MS mainly works in Africa Read more about the organizationrsquos work

at wwwactionaiddk

Action Aid

A private sector view on the future of sustainable biofuels

By Barbara Louise Bech Department of Business and Politics CBS

nergy security continues to be an eminent concern in a world of finite resources For a long time biofuels have been viewed as

one of the key solutions to replace our dependency on fossil fuels and battle climate change but in recent years controversy has contested the sustainability of first generation biofuels based on food stock Issues such as lack of environmental safeguards causing loss of biodiversi-ty and deforestation and lack of social safeguards ensuring land and labor rights in producer (developing) countries have been claimed as key impediments to sustainable biofuel production Critical observers also argue that the emission savings of biofuel use in compar-ison to fossil fuels can become much smaller (or even disappear) when indirect land use change (ILUC) is included in the calculations Furthermore bi-omass production from food stock is argued to compete with food production and in-creasing food prices

The Danish NGO Action Aid has been engaged in biofuels since 2008 and is par-ticularly involved in protecting womenrsquos rights and preventing land grabs in de-veloping countries ldquoWe are very concerned about land use when it comes to first genera-tion biofuels This relates both to the people who are dependent on the land and to food security We rarely see good combinations where the local populationrsquos needs are taken into consideration The energy crops grown on the local farmerrsquos land donrsquot benefit him and local consumption is essential for developmentrdquo explains Kirsten Hjoslashrnholm Soslashrensen political advisor Action Aid Denmark

It is therefore believed by many that second generation biofuels is the only way forward to avoid competition with food and avert ILUC Next generation biofuels is based on lignocellulosic biomass such as agricultural and household waste and forest residues The Biorefining Alliance represents a cluster of leading Danish companies within the renewable energy sector with an ambition to promote second gener-

ation biofuels and make Denmark a world leader of technology and bi-ofuel productionldquoDenmark has very strong competencies in green tech and as a society we have put a lot of money in its development This is go-ing to be a huge deal globally so we are asking whether Denmark wants to be a customer or a producer What we are working for is of course that we become a lead exporter of technology but also that Denmark produces second generation biofuels commercially Even though we are a small country we cannot settle on selling know-how Denmark also needs to have some industrial productionrdquo says Anne Grete Holmsgaard di-

rector of Biorefining Alliance In her view Denmark needs to keep a firm grip on developing innovation or it will slowly but

steadily move out of the country In this regard she views sustainability criteria for biofuels as an in-

novator and not a hindrance

The Sustainable Biofuels Network (SBN) is another cluster of private companies trying to facilitate the transition from fossil fuels to biofuels in the transport sector For the aviation industry biofuels are considered

to be the only alternative to fossil fuels and the industry firmly believes that biofuels will

survive according to Robert Arendal chairman of SBN ldquoThe aviation industry has set very clear

guidelines for the use of biofuels We are not going to use food based biofuels and we will minimize the use of fresh

water By 2050 our target is to use 50 biofuels in the global aviation so we really need to move fastrdquo he explains adding that living up to sustainability criteria includes being careful about where biofuels are produced ldquoBut it should be produced all over the world and close to the 1600 airports worldwide that account for 95 of all aviationrdquo

he technology for second generation biofuels is already here but the problem is that production costs are too high and there is no market As long as prices are not competitive with conventional fuels it will be difficult to move forward ldquoOne might ask why there is no market The customers are certainly there so if I was in the business of producing

E

As part of the COBREN international conference on sustainable biofuels private sector civil society and academia were invited to give their views on sustainable biofuels at a roundtable discussion at an open public seminar held at DIIS November 19 2012

Event

26 CSQ

SBN is a ldquobreeding groundrdquo and ldquoknowledge centerrdquo for the biofu-els industry where synergies are created between all parties within

the biofuels sector SBN focuses in promoting supporting and enabling the commercial development and use of clean and sustainable biofuels for Heavy Road Transportation Shipping and Aviation Emphasis is put on the importance of global standards for biofuels with local as well as international institutions and decision makers to encourage con-

structive guidelines and rules for the development of biofuels SBN adheres to EUrsquos sustainability criteria SBN is a non-profit asso-

ciation established in 2008 Visit their website for more info at wwwsustainablebiofulsdk

Sustainable Biofuels Network(SBN)

The Biorefining Alliance (BA) was founded December 2011 by DONG Energy Novozymes Haldor Topsoslashe and the

Danish Agriculture and Food Council and is a three-year project to politically promote Denmarkrsquos position in the entire value chain from residues to bio-based products The Alliance has set forth a number of recommendations to achieve a sustainable Danish bio-economy Among other these include (i) that all organic

waste be considered a resource (high-value recycling and storable energy) (ii) reducing the cost of manufacturing 2G

bioethanol and (iii) contemplating the establishment of a national center for sustainable materials

Biorefining Alliance

second generation biofuels I would get started right awayrdquo says Robert Arendal The Biorefining Alliance is working on lowering the costs and recommends a stronger regulatory framework with binding targets as it has been done for the wind industry ldquoThere already is a market for first generation biodiesel which is the least sustainable biofuel We need to make a market for second generation biofuels and we know that binding targets work I donrsquot think it is possible to create a market for the lsquogreen consumerrsquo as you have one for organic food products but I believe that a niche market for HRT (Heavy Road Transport red) such as public bus transport could be a supplementrdquo concludes Anne Grete Holmsgaard

How the future for sustainable biofuels will shape depends on political will to create a market for second generation and the ability of private sector to innovate and bring prices down Oil production is claimed by some to already have peaked and exploring new geographical areas for extraction could be as costly as kick-starting the market for second generation biofuels although much less sustainable As the American ecologist and environmentalist Bill McKibben wrote in his book ldquoDeep Economyrdquo back in 2007

Even before we run out of oil wersquore running out of planetrdquoldquo Bill McKibben

27CSQ

The Transparency-Sustainability NexusA workshop on the practices meanings and tensions of organiza-

tional transparency

n December 5 2012 the Department of Intercultural Communication and Management (ICM) hosted an in-

ternational workshop supported by CBS Sustainability Plat-form and ICM The workshop was organized by Oana Brindusa Albu Mikkel Flyverbom and Hans Krause Hansen respectively PhD Fellow and Associate Professors at ICM The idea of the workshop was spurred by the observation that while ideals of transparency like lsquoopennessrsquo lsquodisclosurersquo and lsquoreportingrsquo are pro-liferating these years the actual construction of transparency within and across organizations is poorly understood Most re-search on transparency is highly normative if not celebratory just as popular discourse about transparency not least in the areas of sustainability and corporate social responsibility is obsessed with ideals of accountability performance and effi-ciency and pervaded by an optimism currently pushed to its extreme with the explosion of new media technologies

But the truth is that we generally know very little about the implications of ideals of transparency when translated into practice in specific issue areas and organizational contexts Importantly each of the contributions to this workshop clear-ly suggested that the contemporary politics of transparency is much more complex contradictory and dynamic than tradi-tionally recognized All papers examined various aspects of the contemporary obsession with transparency and specifically the increasing use of disclosure techniques within and around or-ganizations the rationales or myths underpinning these meas-ures their intended and unintended consequences including implications for identity-making management and govern-ance practices

Clare Birchall initiated the workshop with a paper titled lsquoThe Cultural Politics of Disclosurersquo highlighting how transparency has been positioned as a superior form of disclosure in popular management and organizational literatures and in policy docu-ments In her account the growing preference for transparency is a consequence not only of the positive qualities seen to be intrinsic to transparency itself but also a response to the per-ceived negative characteristics of other forms of disclosure such as gossip scandal and rumor Lars Thoslashger Christensen (with co-author Joep Cornelissen) then analyzed transparency as one of the foundational myths of modernity myths understood here as descriptions of the world in a narrative form which seeks to produce meaning and direction for a community and its members Such lsquoMyths of Transparencyrsquo sustain numerous organizational practices ndash including openness information provision and auditing But as argued by the authors there are conflicting evidence regarding the capacity of such practices to create insights and understandingThat aspirations and techniques of transparency can have seri-ous repercussions was demonstrated by Peter Skaeligrbaeligk (with co-author Mark Christensen) in the paper entitled lsquoAuditing and the purification of blamersquo which analyzed how auditing auditing practices and institutional entities including the po-liticized environments surrounding them are mobilized and participate in blame games and allocation In his paper titled lsquoQuantification transparency and the costs of reassurancersquo Henrik Vollmer analyzed various dimensions of the role of nu-merical records and signaling in generating transparency trust and mistrust

By Hans Krause Hansen Department of Intercultural Communication amp Management

Event

O

28 CSQ

Some of these aspects were also touched upon in the paper lsquoDisrupted Disclosures The Politics of Visibility and Surveil-lance in the Extractive Industriesrsquo by Hans Krause Hansen (with co-author Julie Uldam) which explored the wider field of visibility and surveillance in which contemporary transpar-ency policies are unfolding with examples from the extractive industries Oana Brindusa Albu in her lsquoTransparency and the organizational self everyday politics of identification in Cooperativesrsquo examined the paradoxical effects of values and practices of transparency on collective identity formation pro-cesses drawing upon her ongoing multi-sited fieldwork in co-operatives Under the heading of lsquoThe Improbability of Secrecyrsquo Mark Fenster analyzed the intersections of secrecy and trans-parency with examples from the US government and its efforts to control information which according to the author does not necessarily stop the flow of information Finally Mikkel Fly-verbom and Christina Garsten examined lsquoThe sway of (big) data ndash calculations and advocacy in the name of transparencyrsquo focusing on the operations of data-based forms of corporate lsquotransparency evangelismrsquo and advocacy through revelation including examples from Center for Global Development and Google

In all the workshop was highly successful in investigating not only the historical and mythical foundations of transparency but also the different practices and forms of transparency that currently shape organizations and a wide variety of issue areas It also provided a reminder of the usefulness of investigating a concept of transparency in relationship to a host of other con-cepts such as secrecy myth gossip blame surveillance visi-bility identity information and knowledge The organizers of the workshop wish to thank all workshop participants for their valuable contributions and the CBS Sustainability Platform and ICM for their support

Hans Krause Hansen

Mikkel Flyverbom

Oana Brindusa Albu

ASSOCIATE PROFESSORPHD (ICM)

ASSOCIATE PROFESSORPHD (ICM)

PHD FELLOW (ICM)

29CSQ

Louise Lyngfeldt Gorm Hansen is a PhD Fellow at the Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) She has a back-ground in Chinese Studies from Copenhagen University (BA) the Asian Studies Program at CBS (BSc) and in International Business Stud-ies and Sustainable Business (MSc) from CBS

The aim of her cross-disciplinary PhD project is to explore how the Chinese hydropower sector works with environmental sustainability and more particularly how the concept is understood and performed in the planning phase of a major dam project in the southwestern Chinese province of Yunnan

The aim of the project is to gain a deeper under-standing of how Chinese firms in the renewable energy sector such as hydropower companies understand and value sustainability as well as how such firms tackle the increasing pressure to deliver socially and environmentally balanced solutions to one of Chinarsquos major challenges lowering CO2 emissions in a time with rapidly rising water and energy demands Theoretically the project draws on - and aims to contribute to ndash a combination of Asian Studies and Science and Technology Studies

PHD FocusLouise Lyngfeldt Gorm Hansen

HYDROPOWER

SUSTAINABILITY

30 CSQ

HYDROPOWER

SUSTAINABILITY IN

CHINAy PhD project combines two of my main research interests China and

environmental sustainability I have studied China for a number of years mainly because of an interest in how the Chinese view sus-tainable development So since finishing my masters I have known that I wanted to study how China plan to tackle a sustainable tran-sition in the years to come I saw my chance when CBS announced PhD scholarships in

DanishEuropean-Chinese social science research in collaboration with the newly es-tablished Sino-Danish Center for Education and Research (SDC) and started my PhD in October 2011My PhD project focuses on the Chinese energy sector more specifically the rapidly growing part of the energy sector engaged in renewable energy Here I examine Chinarsquos second largest source of electricity gene-

eration hydropower In recent years China has become increasingly focused on reduc-ing CO2 emissions While some countries such as the US and Australia are decommis-sioning hydropower dams China is looking to large-scale hydropower construction as one of the solutions to a future clean energy supply This means that hydropower devel-opment plays a central role in Chinarsquos sus-tainable transition

However utilization of hydropower is con-troversial not least in China and has met increasing resistance in recent years particu-larly from Chinese and international NGOs the media as well as the scientific commu-nity Critique is most often focused on how or if social and environmental sustainability can be ensured in such large scale projects as the social and environmental impacts of large scale hydropower development are very complex and difficult to measure More gen-erally the viability of relying on hydropow-er as a future source of energy is also being questioned One of the major concerns here is the overarching issue of climate change ie glaciers shrinking and yearly water runoff decreasing This means less stable water flow for hydropower and less water for other pur-poses such as agriculture water supply for down-stream countries etc

By Louise Lyngfeldt Gorm Hansen Asia Research Centre Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) ndash sinodanishcenterdk

M

Picture from SinoHydro promotion material 2011

Research

31CSQ

In contrast to for example the wind power sector in China in which many foreign com-panies have invested the hydropower sector is dominated by a few large state-owned en-terprises Our knowledge of Chinese state-owned enterprises is still limited and there-fore my PhD project is also part of a larger research project at the Asia Research Centre with focus on Chinese state-owned enter-prises and the reform of the public sector in China

In combining these interests my PhD exam-ines how Chinese state-owned enterprises in the hydropower sector tackle the demand to expand hydropower development to help reduce Chinarsquos CO2 emissions while be-ing under increasing pressure to deliver on sustainability principles in the planning and execution of large scale hydropower pro-jects The pressure comes mainly from NGO organizations the media and the scientific community both at home and from abroad I am conducting a case study focused on a specific river in south-western China which has ndash until now ndash not been fully developed for hydropower and the plans for addition-al hydropower dams on the river are still undergoing assessments The project has continually stalled due to disagreements between Chinese government officials at all levels NGOs the media the increasingly deregulated but still state-owned Chinese hydropower companies and the scientif-ic community However the project has very recently been reopened and so will go through another round of assessments in the near future The case is an excellent example of the complexity of hydropower develop-ment decisions in China but it also highlights some of the social and environmental conse-quences of the global push to decrease CO2 emissions

China plays and will continue to play an increasingly important role globally in the years to come However the country also fac-es enormous challenges - not least regarding the environment These challenges also affect economies in Western Europe - for better or worse My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective so

that we here in Europe and in Denmark can more knowledgably and actively engage with China to help solve some of these difficult challenges that eventually affect us all In do-ing this I contribute to gain a better under-standing of the Chinese perspective on envi-ronmental sustainability that can be of use to companies wanting to engage in the Chinese renewable energy sector

My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective rdquoldquo

Picture of the case-river taken by the author in 2012

32 CSQ

FROM BLUEPRINT TO PRACTICE

ENERGY EFFICIENT CONSTRUCTION

By postdoc researcher Satu Reijonen Department of Organization CBS

In the EU almost one third of CO2 emis-sions are attributed to energy used in the construction and use of buildings (FIEC

2007) It is therefore not surprising that the construction sector has recently been subjected to a substantial amount of policy measures to combat its negative effects on climate change In Denmark the state has posed new thresholds for the energy efficien-cy of new buildings including a plan for con-tinuous improvement in the area This far the industry has responded well to these stricter performance requirements In the future re-quirements will rise to levels that are not that easily achieved in the coming years build-ings will have to use 25 less energy than in year 2008 How can these ambitious goals become business as usual

One of the most discussed ways besides add-on technologies such as windmills and solar panels to enhance the energy efficiency of a building is through an energy efficient phys-ical design In practice this means reduction of energy used for heating cooling down and lighting of the building through an optimal orientation and dimensioning of the build-ing

Integrated energy design contrary to add-on technologies can be achieved on a rath-er modest additional budget This should be good news for the sector that today is eco-nomically pressed Indeed today many low energy building projects claim to use the in-tegrated energy design method (IED) when seeking to meet the most ambitious energy related goals In this commentary I wish to discuss some challenges related to the imple-mentation of this design tool

The integrated energy design method sug-gests that one of the main problems in not achieving energy efficiency is that energy related concerns become integrated into the design process too late The method consists of two elements the first of which addresses the need to bring in energy related knowl-edge throughout the design process It sug-gests that design teams ought to be multidis-ciplinary and that architects engineers and experts should work together either co-lo-cated or in a series of workshops Further-more it suggests systematizing energy quali-ty follow-ups into the design process This is all very relevant and inspiring

Oddly enough a closer look on the actual design practices reveals that few seem to ac-tually follow the method of integrated energy design to the point This poses an interest-ing question about the challenges related to the use of such management technologies as vehicles for increased energy efficiency in construction Maybe it is about time practi-tioners and researchers ask themselves what are the boundaries of and challenges related to the use of these tools ndash and what else is required for organizing for more energy effi-cient building design processes

A revolution of relations

Integrated energy design points to the need to bring energy related expertise into the de-sign process at an earlier point In order to achieve this cooperative practices between different professional groups are advocated for Historically energy experts have most-ly been used to respond to rather advanced architectural plans Shared workshops and co-localization suggest a change in these business as usual relations But are they pos-sible and what type of changes do they ac-tually imply in order to function as wished

Research

33CSQ

Satu Reijonen is postdoctoral scholar at the Department of Organization at CBS In her on-going research project she investigates how architects and energy engineers two different profes-sions cooperate and coordinate their work regarding energy related ques-tions in construction design The ways in which relations between and roles of these professions become consti-tuted through socio-material arrange-ments are a central topics in her work Besides studies of work Satu has con-ducted research on environmentally friendly products and markets

ABOUT SATU RAIJONEN

The initiation of this type of new working forms is certainly beneficial for energy effi-cient design However for several reasons they are more difficult to make work than one would assume While it may sound rea-sonable it is after all a tall order Integrating energy related practices into an environment where different visions professions and in-terests meet and the divide between what one profession does is clearly and historically demarcated is demanding While architects need to make room for the intervention of energy experts into the creative work energy experts have to become capable of working creatively and relate to and follow the visual and aesthetic cues from architects In order to work these kind of changes in the profes-sional roles and relations have to resonate with the skills and visions of individual work-ers not only management level design strat-egies It is not surprising that organizational change scholars remind us of the possibility of loose coupling from the strategies placed at the management level (March 1981) What integrated energy design suggests is a kind of a revolution in the ways in which both the architects and the energy engineers envision their role and space of mobility

Linear tools in an unlinear design process

Integrated energy design suggests that the energy performance of the emerging build-ing design be followed up at certain points during the design process The method de-picts a rather mechanistic and linear under-standing of a design process consisting of phases within which iteration may occur While energy related issues may be dis-cussed as quality goals during these phases the method places a lot of emphasis on the check ups performed in the transition from one phase to another Design processes how-ever can also be characterized in a different manner unlinear exploratory and whirl wind type of practices where clear cut phases hardly exist (Akrich 1992 Van de Ven et al 1999) This also applies to the architectural design processes where the object of the de-sign is emergent (Yaneva 2009) This entails that the product the building may change in unexpected ways during any day of the de-sign process If this alternative description of the design processes is viable delegating energy related issues to some predetermined check up episodes may strike a false accord and indeed be contradictory with the aim of enhancing coordination and cooperation between professional groups What happens in between the predetermined checkups may very well be where the energy efficiency of the building becomes configured and where the intervention from the energy experts

would come most needed Perhaps this is why the best performing projects do not blindly follow the steps of the IED method Check ups however and no doubt play a role in verifying and making visible the energy performance for partners outside the design team

Integrated energy design as many other sus-tainability standards and guidelines make visible systematize and legitimize the ex-istence of environmental management and sustainability issues in organizations and work processes In this such way tools create awareness and legitimacy for environmental and sustainability issues The integrated en-ergy design method also suggests a possible way of thinking about what type of design practice might help us to achieve the stricter energy requirements of the future It howev-er falls short in becoming the change agent it suggests This is hardly surprising as a meth-od or a standard of any kind should only be seen as a possibility or as an opening for an inquiry of what the practice could be about Reconfiguring a well established practice is hard work and it would be foolish to trust that a design method would achieve it by itself What the method does is to alert us of the more profound changes in the pro-fessional roles and relations that is needed in order to enable the change However the method due to its rather mechanical under-standing of the design process may come to work against its own ambition of integrating energy issues into the design work In its quest for integration the method defines at which points in time the architectural and the engineering project has to be checked for its energy performance This approach may lead to bringing in energy related concerns in some artificially created points in a design process which may additionally compart-mentalize energy related issues from where the design really happens

Integrated energy design as many other sustainability standards and guidelines make visible systematize and legitimize the existence of environmental management and sustainability issues in organizations and work pro-cessesrdquo

ldquoLiteratureAkrich M (1992) The De-Scription of Technical Objects in Shaping Technology Building Society Studies in Soci-otechnical Change eds WE Bijker and J Law The MIT Press Cambridge Massachusetts pp 205-224

FIEC 2007 The impacts of buildings on climate change httpwwwbuildingsplatformeuepbd_publicationdocFIEC_Memo_p2919pdf on 1222008

March JG (1981) Footnotes to Organizational Change Administrative Science Quarterly vol 26 No 4 pp 563-577

Van de Ven A D Polley R Garud and SVenkataraman (1999) The innovation Journey Oxford Oxford Univer-sity Press

Yaneva A (2009) The making of a building A pragmatist approach to Architecture Bern Peter Lang

More about integrated energy design(IED)

httpwwwintendesigncomosloIntendnsfAttachmentsGuideline_Version_2pdf$FILEGuideline_Version_2pdf

34 CSQ

The climate challenge in

shipping

ldquoGlobal shipping faces two major challenges both of which are caused by its reliance on fossil fuelsrdquo

By Reneacute Taudal Poulsen Department of Innovation amp Organizational Economics

RENEacute TAUDAL POULSEN

ASSOCIATE PROFESSOR DEPARTMENT

OF INNOVATION AND ORGANIZATIONAL

ECONOMICS COPENHAGEN BUSINESS

SCHOOL

orecasts show that the shipping indus-tryrsquos CO2 emissions will most likely continue to rise in the next two to

three decades as demand for world sea-borne trade will expand At present global shipping accounts for approximately 33 per cent of global CO2 emissions but this share will most probably increase in the coming years if many onshore industries succeed in their aims of reducing emission levels

At the same time rapidly rising fuel costs put heavy strain on shipping company budg-ets Historically and until very recently fuel costs were only a minor concern for ship-ping companies but now they often exceed 60 per cent of variable operational costs Fuel savings made through energy efficiency improvements thus represent a win-win sce-nario for the shipping industry and for so-ciety at large They simply make good sense for everyone

Despite the strong incentives for fuel sav-ings numerous studies have demonstrated that shipping fails to implement cost-ef-fective measures to reduce fuel consump-tion Fuel-saving technologies are readily available in the market and in many cases pay-back periods are very short (less than a year) Changes in operational habits which require few if any investments also hold a significant potential for fuel savings

Global shipping thus holds several classic examples of energy-efficiency gaps Gaps occur wherever cost-effective measures to improve energy efficiency fail to materialize The causes for energy efficiency gaps have been a favourite research topic within the field of energy economics for decades and economists sociologists and political scien-tists have been able to identify several means to bridge the gaps However within the mar-itime domain energy efficiency gaps and the climate challenge remain neglected issues Legal barriers

Shipsrsquo fuel consumption rises steeply with speed Hence slow-steaming or just minor speed reductions can lower consumption and emission levels significantly Since oil prices started to rise rapidly a few years ago shipping companies have indeed resorted to various slow-steaming practices and com-panies which succeed in this regard have been able to gain competitive advantages In other words actors in the industry are trying to bridge the energy efficiency gap However and in spite of the strong price signals from the rising fuel prices a potential for fuel sav-ing through slow steaming still remains

FNew CBS research project

A new three year research project at CBS under-

taken by Reneacute Taudal Poulsen for the Department

of Innovation and Organizational Economics will

examine the climate issues bringing insights from

energy economics and innovation management

into the field of shipping economics The project

which is financed by The Danish Maritime Fund

runs from 2012 to 2015 The project asks why en-

ergy efficiency gaps continue to occur in shipping

and how shipping companies and the maritime

industry at large can use innovative business

models and process innovation to turn the climate

challenge and the rising fuel costs into a business

opportunity Energy efficiency gaps occur both

in daily operations and when investments in new

vessels are made This article will briefly present

two examples of energy efficiency gaps from

the operational level and some of the preliminary

findings of the project

References

Jaffe AB and RN Stavins 1994 lsquoThe energy efficiency gap What does it meanrsquo Energy Policy 22 (110) 804-10IMO 2009 Second IMO GHG Study 2009 London International Maritime OrganizationMoriarty P amp D Honnery 2012 lsquoEnergy efficiency Lessons from transportrsquo Energy Policy 46 1ndash3Poulsen Reneacute Taudal 2012 lsquoEmissions and energy efficiency - the twin challenges for shippingrsquo Mercator Maritime Innovation Research and Education MarchJune 447-454

Reneacute Taudal Poulsen is Associate Professor at the Department of Innovation and Organizational Eco-nomics at CBS He is also affliated with the Centre for Shipping Economics and Innovation at CBS Reneacute Taudal Poulsen holds a PhD degree in marine environmental history from the University of Southern Denmark and he has worked within the field of maritime business studies for the last seven years He has published in such journals as Fisheries Research Business History and Scandinavian Economic History Review

His current research intersts concern the environmen-tal challenges faced by the global shipping industry and business model innovation in the maritime domain

Research

35CSQ

It is clear that shipping companies cannot fully bridge the energy efficiency gap alone In fact factors beyond the control of in-dividual shipping companies and various structural or legal barriers prevent shipping from fully realizing the slow steaming po-tential

Port congestion remains a world-wide prob-lem and causes ships to spend remarkably long periods inactive Despite the financial crisis and the large drop in shipping freight markets after 2008 many loaded vessels sit at anchor outside ports waiting for berths In some cases they wait for a few hours In other cases for days weeks or even months Instead of waiting the ships could have re-duced speeds and saved fuel And the de-livery and the loading of the cargo in port would not have been delayed in any way However in many cases shipping companies or ship operators cannot reduce speed in spite of port congestion

Educational barriers

Energy efficiency gaps in shipping are also evident when the fuel consumption levels of sister ships are compared Even though the vessels are identical and operate in the same waters studies have shown that their fuel consumption may differ by several Decisions made by the crews onboard and by managers in the onshore organizations clearly influence the level of fuel consump-tion For instance if a captain selects only very small course deviation margins when coding the autopilot of the ship the shiprsquos rudder will move frequently to keep the ship on the exact course all the time This will slow down the ship and cause higher fuel consumption than if the captain had allowed for slightly wider margins and the wider margins would not have any effect on the safety of the ship Decisions made by the commercial depart-ments eg on how to crew the vessels how to monitor vessel fuel consumption or which new equipment to install onboard may also

have a large impact on fuel efficiency and emission levels If shipping company man-agers can nurture a fuel saving culture this could potentially make a difference Since 2007 or 2008 shipping companies have in-deed started to facilitate such organizational changes but educational barriers remain a problemOnshore truck drivers are now offered fuel saving courses but fuel-saving is not a major part of the traditional curriculum in nautical schools or in the commercial education of shipping trainees For good reasons the nau-tical educations have focused on maritime safety but this has caused them to neglect the climate challenge in shipping and the is-sue of fuel saving In fact no single nauticaltext book on maritime fuel savings has yet been published and according to teachers and students in the nautical schools this serves as an educational barrier to ener-gy-efficiency improvements The technical level of education for commercial employees in shipping companies may also hinder im-provements in energy-efficiency Some com-

mercial shipping employees may not have sufficient training to fully see and acknowl-edge the consequences of their decisions on fuel consumption In short it seems that fuel awareness and the educational systems have responded more slowly to the climate chal-lenge than the rise in fuel prices may other-wise suggest

For shipping to bridge energy-efficiency gaps education ndash both nautical and com-mercial ones ndash clearly is an area to set in Here the potential for innovative solutions is both evident and pertinent Changing educational systems and awareness is no easy task bearing in mind the global nature of the shipping industry and international crewing of the world fleet It is clear howev-er that educational upgrading is necessary for shipping to effectively address the cli-mate challenge effectively

Charter parties between ship-operators and shippers state a specific time of arrival for the vessel and in order to avoid claims ships proceed to port accordingly regardless of berth availability Experiments with new more flexible charter parties which allow for slow steaming in case of port congestion have recently been made Shipping compa-nies have generally been enthusiastic about this flexibility but often shippers remain skeptical Lack of trust between shippers which need the loading of their cargoes as soon as possible and shipping companies may be a cause for this discrepancy Even in cases where the savings made from slow-steaming are split between shipping companies and shippers shippers have re-mained skeptical Port queuing systems may have a role to play here

Many ports including some of the major container iron ore coal and grain ports serve ships on ldquofirst-come first-servedrdquo ba-sis Ships only receive their ldquoticketrdquo in the

waiting line upon their arrival at the port Again lack of trust between the ship-oper-ators shippers and the port authorities may explain this phenomenon Moreover port authorities currently do not have incentives to change queuing practices because they cannot gain a share in the fuel savings made from slow-steaming

The problem is particularly strong in the major tramp shipping segments of tanker and dry cargo shipping where vessels act as ldquotaxis of the seardquo serving numerous shippers and rarely calling at the same ports If the fleet from a shipping company only calls at a particular port once a year and the compa-ny has very short-term relations to individ-ual shippers building trustful relationships between the parties remains a major chal-lenge Solving this problem and realizing the full potential of slow steaming will require systemic innovation in shipping and port systems and further studies are required to identify possible solutions

36 CSQ

The Wind turbine industry -

Emerging global innovation networks in Europe and China

The wind turbine industry has developed into a global network encompassing a large amount of diverse actors within innovation production and installation of wind turbines across the globe

By Stine Haakonsson and Julia Kirch Hollitsch Department of Business amp Politics CBS

market for wind energy Chinese actors have turned China as a location into another im-portant lsquohubrsquo in this network This has led to new forms of innovation collaborations between European and Chinese actors The result has been a complete re-configuration of the industry over the past decade In the International Business and Economic Geog-raphy literatures the development of global production networks in which lead-firms be-come orchestrators of dispersed production

enmark has traditionally played a key role as an lsquoinnovation hubrsquo and com-

panies in Denmark remain among the lead firms within the wind turbine industry Re-cently the industry has reorganized from being located predominantly in the Triad regions (mainly in Europe and the US) to becoming a globally dispersed industry This development can partly be explained by de-velopments in international and national politics Due to the growth of the Chinese

activities in globalized value chains is well established theoretically as well as empiri-cally In the globalization process lead firms relocate production activities to low cost lo-cations by off-shoring and through vertical disintegration and outsourcing to specialized suppliers Producers of wind turbines are no exception However until recently the mar-ket and innovation activities remained con-centrated in Europe and US

With the recent focus on global politics for a post-carbon society the market for wind tur-bines has experienced an immense growth and a high degree of market globalization New locations have developed into main markets One of these is China which since 2010 has been the largest market for wind turbines in the world (in capacity installed) The globalization process in the wind tur-bine can be explained by a combination of offshoring of production by European lead firms mainly through foreign direct invest-ment and establishment of domestic lead firms in emerging markets In 2010 there were four Chinese-owned companies among the top-10 producers of wind turbines as compared to 2003 where all firms on this list were from Europe and the US

D

Julia Kirch Hollitsch

Stine Haakonsson

Stine Haakonsson and Julia Kirch Hollitsch from Depart-

ment of Business and Politics CBS are engaged in the

Sino-Danish Center for Research and Education (SDC)

project on Wind Energy in China Both research on the

current restructuring of industries and firms at the glob-

al level (outsourcing off shoring global value chains)

In particular their research is on 1) the restructuring of

innovation and RampD activities into global innovation net-

works(GINs)2)thechangingroleofemergingmarkets

(ChinaIndiaBrazilSouthAfrica)intheseemergingGINs

and 3) technology transfer and capability building related

to renewable energy

Research

37CSQ

by adapting their products to the Chinese market and through cost-out development activities in the new locations primarily China

As a result the wind industry is today highly knowledge-intensive and internationalized Due to increased attention and investments in sustainable transition policies and car-bon-reducing technology China has over the past decade developed into a high prior-ity investment area for wind turbines Also Chinese companies are upgrading technol-ogy and innovation from the global firms through integration into GINs Moreover the production and innovation networks for wind energy become highly complex and consist of many different suppliers of com-ponents (blades gear boxes control systems bearings) resulting in a variety of network linkages among suppliers of different com-ponents and the wind turbine producers

From our empirical data including more than 40 in-depth interviews collected in 2011 and 2012 in the wind turbines indus-tries in China and Denmark we have identi-fied some very interesting patterns We have identified very different characteristics of the GINs established by the Chinese wind tur-bine industry and the European wind tur

Emerging Global Innovation Networks

Innovation processes are also moving be-yond the boundaries of individual compa-nies and national innovation systems Firms engage in cross-border innovation networks spanning different innovation systems which may be national regional or sectorial in or-der to stay competitive in the global econ-omy Chinese lead firms are entering this scene too The result is globally organized networks of interconnected and integrated functions and operations by firms and non-firm organizations engaged in the develop-ment and diffusion of innovations so-called Global Innovation Networks (GINs) Lead firms internationalize innovation through strategies of exploitation global generation of innovation and global techno-scientific collaborations Chinese wind turbine pro-ducers ndash acknowledging their resource and capability deficiency ndash pursue strategies of innovation network integration through strategies of global generation of innovation These firms link up with specialized Europe-an actors such as core component suppliers through partnerships and networks in or-der to tap into the technology of firms from developed countries and upgrade Mean-while European companies internationalize through exploitation strategies for example

bine industry Although Danish and Chinese actors are experiencing a re-organization of activities and establish networks and globa-linnovation strategies the result is very dif-ferent

The industry from Europe and US

The industry from Europe and the US hosts the lead firms in terms of core technology de-velopment Denmark has traditionally played a key role as lsquoinnovation hubrsquo in technology development and global lead firms such as Vestas and Siemens Windpower (previously Danish lsquoBonusrsquo) took its start already in the 1970s The core competences of the Danish wind turbine innovation system are based on large testing facilities and long track records mainly due to the long time-line of experi-ence The wind industry goes 40 years back and therefore Denmark has a good knowl-edge pool within establishing wind farms (aerodynamics minimizing power loss in energy transmission wind mapping and other installation-related technologies)

38 CSQ

that will make it possible to finance the pro-jects ldquoFrom then on our wind turbine pro-jects developed very fastrdquo(Interview Wind Engineer Chinese Academy of Sciences) Thus this law was a milestone for elevating renewables to a strategic position in China or as expressed by a European lead-firm ldquoWhat drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick offrdquo

Until the turn of the millennium Chinarsquos wind energy industry was largely built on donors acquisition of finished wind turbines and licensed technology from European companies spread on a very small scale into the local industry during the mid 1990s Chi-nese wind turbine technology has evolved from imitation reverse engineering and licensing in the 1980-90s combined with assistance from foreign consultants One example is how DANIDA funded a project in 1986 for Goldwind in Xinjiang which imported 13 units of 150 kW lsquoBonusrsquo (now Siemens Wind Power) turbines

To get beyond the stage of pure imitation several policies have been introduced with the intent to upgrade Chinese manufacturers to obtain indigenous innovative capabilities Policy programs were introduced to enhance Chinese companies to develop wind energy subsidizing wind energy RampD expenditures at varied levels over time establishing a re-newable energy fund and through the ldquo863 Wind Programrdquo under the Tenth Five-Year Plan (2001-2005) Local content require-ments were put in place in which develop-ers of wind energy projects were required to source 70 pct of the content in China These policies ndash which essentially forced foreign manufacturers wishing to sell wind turbines to the Chinese market to establish China-based manufacturing facilities ndash were only removed recently (in 2009) One result was that the foreign companies had to up-grade local suppliers of components

Due to the technological complexity many European (and hereby also the Danish) firms are vertically integrated and have most com-ponents produced in-house or with regular specialized suppliers According to these companies the different parts need to be well adjusted to each other to some extent even co-developed in order to enhance effi-ciency and the lifetime of the wind turbine Likewise the European industry has expe-rienced a concentration of actors with the result that there are only relatively few but large manufacturers in Europe (the larg-est ones are Vestas Siemens Gamesa and Enercon) Together these four companies accounted for about 35 of the global mar-ket in 2010 By seeing the wind turbine as an integrated system these lead firms aim at producing lsquothe Rolls Roycersquo model wind turbines These are strong in terms of qual-ity and standards but generally expensive These firms learn cost-out techniques from their engagement with partners in China

The Chinese Wind Turbine Industry

Today the Chinese wind turbine industry is overly competitive It entails more than 80 wind turbine manufacturers and the Chi-nese market boasts the highest growth rates internationally with an average growth rate of 968 percentages annually in the last three years Several large domestic Chinese wind turbine manufacturers have emerged within the last decade Sinovel and Goldwind take the largest share followed by United Pow-er and Ming Yang just to mention some of them As of the end of 2010 these four were A major driver for the development of the Chinese wind energy market has been the establishment of an institutional context as a comprehensive concerted policy frame-work addressing the development of renewa-ble energies This change in the institutional context was first reflected clearly in the 11th 5-year-plan (2006-2010) which explicitly linked environmental sustainability to the key goal of establishing what was called a harmonious socialist society signalling a socially environmentally and economically sustainable economy With the Renewable Energy Law from 2005 the Chinese wind energy industry really took off as it explicitly seeks to ensure that renewable energy pro-jects have an outlet for their output at prices

Technical barriers and the role of GINs for a post-carbon society

Despite high ambitions in terms of devel-oping innovative capabilities Chinese pro-ducers still produce almost exclusively for the Chinese market However Chinese wind turbine manufacturers have recently started an internationalisation process and some are approaching international markets Not least for tapping into new knowledge

Europe (and Denmark in particular) is per-ceived as a main location from which the Chinese companies can learn more A cou-ple of Chinese companies have already set up RampD centres in Denmark European firms have also initiated RampD centres in new lo-cations primarily China and India In other words GINs can be identified

Our research also points towards important barriers for GINs in the wind turbine in-dustry and for approaching a post-carbon global society Most importantly are the technological barriers intellectual property rights quality issues and issues of limited appropriability of knowledge Further the institutional framework remain relevant for displaying how the sector and the emerging GINs are embedded institutionally socially and technologically Whether actors trans-act knowledge technology and know-how through cooperative innovation activities also depends on how core the technology of a given technology is Still as the market grows in China it seems to have matured in Europe because of changing policies on re-newable energy To sustain the position as a global lsquohubrsquo and world leader in wind tech-nologies there is a strong need for support in Europe as this research really shows how fast the Chinese industry is moving One major result is how important networks are for upgrading companies and it seems that Chinese firms perform better in network strategies and manage to tap into relevant knowledge than the European firms

What drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick off rdquoldquoInterview Wind Engineer Chinese Academy of Sciences

39CSQ

Social Enterprise World

ForumNadine Koumlcher from 180Degrees recounts her experience from the

conference on

Rio de Janeiro Brazil 2012

In the numerous panel debates and parallel track discussion it became clear that Impact Investment is a hot topic among both social entrepreneurs and impact investors a diverse group consisting of corporations founda-tions and potential donors However various obstacles impede a harmonious relationship between the twoSocial enterprises face structural challenges to make themselves more appealing to im-pact investors They have to become more transparent and increase their accountability This includes improving their impact assess-ment and reporting tools However despite much discussion no consensus could be formed on how to optimally conduct im-pact assessment One of the most frequently proposed methodologies involves the use

From the 16th to the 18th of October the CBS Sustainability Platform granted me the opportunity to attend the 5th Social Enter-prise World Forum which took place in Rio de Janeiro Brazil This yearly international conference focuses on social enterprises and their effectiveness in solving social challeng-es The overall theme of the 2012 conference hosted by NESsT was ldquoSocial Enterprise Investing for Impactrdquo Thus for three days over 180 speakers and 650 delegates from 30 different countries shared their experiences regarding impact investment and discussed possibilities to attract new investment by both the public and the private sector for so-cial enterprises

of control groups Story-telling has also been men-tioned to be a powerful tool to provide investors with a proof of outcomesSocial investors are willing to accept returns just below the market rate in exchange for a social return However large profits are still expect-ed and many social enter-prises are afraid of being unable to generate them Social enterprises typically operate on a small scale and are not used to undertake large projects with huge sums of investment given to them Many are too small for social investors to be

attractive as costs are similar for small and large investments although larger invest-ments have a higher payoff

Nichole Echert the CEO of NESsT there-fore pointed out that it is necessary to align expectations between impact investors and social entrepreneurs and to be patient in establishing a relationship between the two groups The expected financial return has to be reasonable close to covering the costs of operation and social returns have to be re-ported to investors by use of clearer criteria

By Nadine Koumlcher Director of Branch Development180 Degrees Consulting Limited

ldquoSocial Enterprise Investing for Impactrdquo

Students

40 CSQ

A highlight of the con-ference was definitely the site visit to a social enterprise project in a recently pacified fave-la It brought further insights on the great variety of social enter-prises that exist in Bra-zil and their missions and struggles We visit-ed a community center at which Comitecirc para

Democratizaccedilao da Informaacutetica (CDI) uses technology to fight poverty and to stimulate entrepreneurship CDI has formed a corpo-rate partnership with Coca Cola which in the same building teaches young locals how to write a CV and find a job Talking to the young locals at the center it became apparent that an increased self-confidence and the in-spiration they get from meeting former now employed participants of the project (eg at Coca Cola) is what they valued most of being part of the class

Participating at the conference was definite-ly a unique and valuable experience I would not want to miss as I tremendously improved my knowledge in the field of social enter-prises through attending the numerous pres-entations and discussions and further met so many inspiring social entrepreneurs impact

In addition it has been stressed that the problem is not a shortage of investment capital (even though the government could promote more impact investment by for instance granting tax breaks) but how to deploy it Social entrepreneurs also have to be aware of the different advantages and dis-advantages of the various types of capital It has to fit their process of establishment and it has therefore been suggested that funds and grants are most optimal in the start-up phase to cover such costs as capacity train-ing There is generally a lack of this early stage financial support Following the initial phase strategic philanthropy money would be most appropriate before impact and final-ly equity investment is sought Furthermore new ways of investment which fit the social enterprise world have to be created replac-ing the current situation of trying to fit social enterprises into the current financial world

investors and students with a genuine inter-est in the field

Participating at the conference was definitely a unique and valuable experience rdquo

ldquo

Social Enterprise World Forum 2013 in

Calgary Canada

The TRICO Charitable Foundation in part-nership with the Social Enterprise Council of Canada and the Social Finance Forum has been selected to host the 6th Annual Social Enterprise World Forum SEWF 2013 will take place October 2-4 2013 in Calgary Al-berta The Forum will present the Canadian social enterprise movement with opportuni-ties to engage learn and share on the inter-national stage

SEWF 2013 will be a gathering of over 1000 Canadian and international delegates who are involved in the social enterprise move-ment where the blending of social and fi-nancial values is core to business Attendees will consist of practitioners (from all sec-tors) funders investors supporters elected officials and public servants from around the world

Nadine Koumlcher

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 23: CBS Sustainability Quarterly 2013 #1

23CSQ

International conference on sustainable biofuels presents latest research

By Barbara Louise Bech Department of Business and Politics CBS

EU Renewable Energy Directive

In 2009 the EU RED set a mandatory target for member states to use a minimum of 10 renewable energy sources in the transport sector by 2020 of which biofuels is expected to be the main contributor This is part of a policy to cut greenhouse gas emissions promote the green technology sector develop rural areas and reduce dependency on fos-sil fuels Due to increasing controversies claiming lack of sustainability in first generation biofuels based on food crops recently the EU pro-posed an amendment to the Directive limiting the share of first gener-ation biofuels to 5 of the targeted 10

The debate quickly zoomed in on the sustainability criteria as outlined in the EU RED drawing attention to the lack of social safeguards The general consensus is that the concept of sustainability is too narrow-ly defined Several case studies (Mozambique Brazil and Indonesia) show that basic labor and human rights of local populations are not protected by RED and the directive is more viewed as an environmen-tal safeguard This discussion raised questions in regard to the effects of RED globally (eg sustainable production in developing countries) and in this context whether EU legislation can have a lsquotrickle downrsquo effect on national standards of nation-states outside the EU In this re-gards one could ask if enforcement at the local level falls under the re-sponsibility of the EU but since first generation biofuels are produced outside the EU it is an important issue for European consumers ndash al-though interest is currently mainly driven by NGOs

On November 19-20 2012 the Copenhagen Biofuels Research Network (COBREN) held an international conference on sustainable biofuels inviting 30 research-ers from around the world to present and discuss their latest research During the two day conference focus was the sustainability criteria of the EU Renewable Energy Directive (RED) voluntary certification schemes and their impacts on sustainability and social safeguards in producer (developing) countries in particular and governance complexity of the biofuel system which has grown considerably over the past decade

Rough guide to biofuelsThere are two types of biofuels biodiesel and ethanol First generation biofuels (1G) are based on food crops and feed stocks such as palm oil soybean and rapeseed used for the production of biodiesel and sugarcane and corn for ethanol The produc-tion of biofuels increased heavily in the 2000s questioning the sustainability of 1G A number of issues have been claimed as key impediments to sustainable biofuel production such as deforestation competition with food production and increasing food prices loss of biodiversity lack of social and environmental safeguards and indirect land use change (ILUC) These contro-versies have led to a call for the promotion of second generation biofuels (2G) which are typically based on agricultural waste (eg straw) plants and forestry residues (also called lignocellu-losic biomassmaterials) However the immediate problem is that there is yet to be developed a market for 2G as they are more costly to produce (require longer and more complex production process)

CBS Sustainability Platform co-director and organizer of the COBREN conference Stefano Ponte doing a presentation

Event

24 CSQ

Voluntary certification schemes

In relation to how standards and certifications can impact sustainable biofuel production discussions pointed to the important difference be-tween mandatory and voluntary schemes As the controversy of sus-tainable biofuels in particular first generation is rolling out special attention has been given to biofuel production competing with food production ILUC value of emissions reduction and environmental and social issues This have off sprung a proliferation in private certifi-cations and during the conference it was discussed intensely whether these schemes have an actual effect on sustainability Depending on the point of view certifications can fill out the holes in legislation and act as a tool to force companies to comply with sustainability crite-ria However the development processes of new certifications may not be inclusive of relevant stakeholders (eg representatives of local populations) Additionally the nature and governance of the networks steering these processes is not always transparent and may favor one interest over the other This intense discussion led to the question of the purpose of certifications Can we use them for anything other than as a CSR PR tool as long as consumer awareness is as low as it is and how do the different regional drivers influence sustainability as a concept The answers to these questions are not easily found and it will be interesting to observe the future development and partnership between public and private sector

Governing the biofuel industry

Within the past decade biodiesel production has risen from below 30PJ in 2000 to 572PJ in 2009 globally and fuel ethanol production has increased from 340PJ to 1540 PJ respectively As the market expands more actors eg governments international organizations civil soci-ety and NGOs private sector networks and companies and profes-sions (biofuel experts and consultants) get involved and play different roles to promote their own agendas Being an emerging industry the structure of the biofuel system shows hybrid forms of governance with many actors As controversies of biofuelsrsquo sustainability develop more issues are added to the agenda giving life to more actors and interests in the governance structure Research shows a shift in power balance as private companies and NGOs increasingly push the agenda The dis-cussions during the conference centered on the complexity of sustain-ability issues calling for mixed governance responses and governance instruments such as standards and certifications which in return need to be followed up with endorsement instruments Given these com-plexities the question is whether the biofuel industry is too difficult to govern as long as the governing systems (for instance the EU) cannot accommodate expectations of all stakeholders

Indirect land use change (ILUC)ILUC is the unintended consequence in terms of more carbon emis-sions due to land use change around the world induced by the expan-sion of croplands for biofuel production When land that could be used to grow food and feed crops is used to grow energy crops this leads to existing agricultural production moving to another area or country where land is converted When this land is cleared and converted to cropland and because natural lands (rainforests and grasslands) store and sequester carbon in their soil and biomass a net increase in GHG emissions can occur Due to this change in the carbon stock of the soil and the biomass ILUC has consequences in the GHG balance of a biofuel Adding to this complexity models for ILUC calculations are not mainstreamed and thus difficult to assess internationally

25CSQ

Mellemfolkeligt Samvirke (MS) or Action Aid Denmark is a Danish NGO founded back in 1944 The

organizations key objective is to fight poverty by ensuring greater political influence for the worldrsquos poor and margin-alized at the local national and international levels MS works to bring about long-term development in the worldrsquos poorest countries focusing especially on education co-

operation and the ability to organize MS mainly works in Africa Read more about the organizationrsquos work

at wwwactionaiddk

Action Aid

A private sector view on the future of sustainable biofuels

By Barbara Louise Bech Department of Business and Politics CBS

nergy security continues to be an eminent concern in a world of finite resources For a long time biofuels have been viewed as

one of the key solutions to replace our dependency on fossil fuels and battle climate change but in recent years controversy has contested the sustainability of first generation biofuels based on food stock Issues such as lack of environmental safeguards causing loss of biodiversi-ty and deforestation and lack of social safeguards ensuring land and labor rights in producer (developing) countries have been claimed as key impediments to sustainable biofuel production Critical observers also argue that the emission savings of biofuel use in compar-ison to fossil fuels can become much smaller (or even disappear) when indirect land use change (ILUC) is included in the calculations Furthermore bi-omass production from food stock is argued to compete with food production and in-creasing food prices

The Danish NGO Action Aid has been engaged in biofuels since 2008 and is par-ticularly involved in protecting womenrsquos rights and preventing land grabs in de-veloping countries ldquoWe are very concerned about land use when it comes to first genera-tion biofuels This relates both to the people who are dependent on the land and to food security We rarely see good combinations where the local populationrsquos needs are taken into consideration The energy crops grown on the local farmerrsquos land donrsquot benefit him and local consumption is essential for developmentrdquo explains Kirsten Hjoslashrnholm Soslashrensen political advisor Action Aid Denmark

It is therefore believed by many that second generation biofuels is the only way forward to avoid competition with food and avert ILUC Next generation biofuels is based on lignocellulosic biomass such as agricultural and household waste and forest residues The Biorefining Alliance represents a cluster of leading Danish companies within the renewable energy sector with an ambition to promote second gener-

ation biofuels and make Denmark a world leader of technology and bi-ofuel productionldquoDenmark has very strong competencies in green tech and as a society we have put a lot of money in its development This is go-ing to be a huge deal globally so we are asking whether Denmark wants to be a customer or a producer What we are working for is of course that we become a lead exporter of technology but also that Denmark produces second generation biofuels commercially Even though we are a small country we cannot settle on selling know-how Denmark also needs to have some industrial productionrdquo says Anne Grete Holmsgaard di-

rector of Biorefining Alliance In her view Denmark needs to keep a firm grip on developing innovation or it will slowly but

steadily move out of the country In this regard she views sustainability criteria for biofuels as an in-

novator and not a hindrance

The Sustainable Biofuels Network (SBN) is another cluster of private companies trying to facilitate the transition from fossil fuels to biofuels in the transport sector For the aviation industry biofuels are considered

to be the only alternative to fossil fuels and the industry firmly believes that biofuels will

survive according to Robert Arendal chairman of SBN ldquoThe aviation industry has set very clear

guidelines for the use of biofuels We are not going to use food based biofuels and we will minimize the use of fresh

water By 2050 our target is to use 50 biofuels in the global aviation so we really need to move fastrdquo he explains adding that living up to sustainability criteria includes being careful about where biofuels are produced ldquoBut it should be produced all over the world and close to the 1600 airports worldwide that account for 95 of all aviationrdquo

he technology for second generation biofuels is already here but the problem is that production costs are too high and there is no market As long as prices are not competitive with conventional fuels it will be difficult to move forward ldquoOne might ask why there is no market The customers are certainly there so if I was in the business of producing

E

As part of the COBREN international conference on sustainable biofuels private sector civil society and academia were invited to give their views on sustainable biofuels at a roundtable discussion at an open public seminar held at DIIS November 19 2012

Event

26 CSQ

SBN is a ldquobreeding groundrdquo and ldquoknowledge centerrdquo for the biofu-els industry where synergies are created between all parties within

the biofuels sector SBN focuses in promoting supporting and enabling the commercial development and use of clean and sustainable biofuels for Heavy Road Transportation Shipping and Aviation Emphasis is put on the importance of global standards for biofuels with local as well as international institutions and decision makers to encourage con-

structive guidelines and rules for the development of biofuels SBN adheres to EUrsquos sustainability criteria SBN is a non-profit asso-

ciation established in 2008 Visit their website for more info at wwwsustainablebiofulsdk

Sustainable Biofuels Network(SBN)

The Biorefining Alliance (BA) was founded December 2011 by DONG Energy Novozymes Haldor Topsoslashe and the

Danish Agriculture and Food Council and is a three-year project to politically promote Denmarkrsquos position in the entire value chain from residues to bio-based products The Alliance has set forth a number of recommendations to achieve a sustainable Danish bio-economy Among other these include (i) that all organic

waste be considered a resource (high-value recycling and storable energy) (ii) reducing the cost of manufacturing 2G

bioethanol and (iii) contemplating the establishment of a national center for sustainable materials

Biorefining Alliance

second generation biofuels I would get started right awayrdquo says Robert Arendal The Biorefining Alliance is working on lowering the costs and recommends a stronger regulatory framework with binding targets as it has been done for the wind industry ldquoThere already is a market for first generation biodiesel which is the least sustainable biofuel We need to make a market for second generation biofuels and we know that binding targets work I donrsquot think it is possible to create a market for the lsquogreen consumerrsquo as you have one for organic food products but I believe that a niche market for HRT (Heavy Road Transport red) such as public bus transport could be a supplementrdquo concludes Anne Grete Holmsgaard

How the future for sustainable biofuels will shape depends on political will to create a market for second generation and the ability of private sector to innovate and bring prices down Oil production is claimed by some to already have peaked and exploring new geographical areas for extraction could be as costly as kick-starting the market for second generation biofuels although much less sustainable As the American ecologist and environmentalist Bill McKibben wrote in his book ldquoDeep Economyrdquo back in 2007

Even before we run out of oil wersquore running out of planetrdquoldquo Bill McKibben

27CSQ

The Transparency-Sustainability NexusA workshop on the practices meanings and tensions of organiza-

tional transparency

n December 5 2012 the Department of Intercultural Communication and Management (ICM) hosted an in-

ternational workshop supported by CBS Sustainability Plat-form and ICM The workshop was organized by Oana Brindusa Albu Mikkel Flyverbom and Hans Krause Hansen respectively PhD Fellow and Associate Professors at ICM The idea of the workshop was spurred by the observation that while ideals of transparency like lsquoopennessrsquo lsquodisclosurersquo and lsquoreportingrsquo are pro-liferating these years the actual construction of transparency within and across organizations is poorly understood Most re-search on transparency is highly normative if not celebratory just as popular discourse about transparency not least in the areas of sustainability and corporate social responsibility is obsessed with ideals of accountability performance and effi-ciency and pervaded by an optimism currently pushed to its extreme with the explosion of new media technologies

But the truth is that we generally know very little about the implications of ideals of transparency when translated into practice in specific issue areas and organizational contexts Importantly each of the contributions to this workshop clear-ly suggested that the contemporary politics of transparency is much more complex contradictory and dynamic than tradi-tionally recognized All papers examined various aspects of the contemporary obsession with transparency and specifically the increasing use of disclosure techniques within and around or-ganizations the rationales or myths underpinning these meas-ures their intended and unintended consequences including implications for identity-making management and govern-ance practices

Clare Birchall initiated the workshop with a paper titled lsquoThe Cultural Politics of Disclosurersquo highlighting how transparency has been positioned as a superior form of disclosure in popular management and organizational literatures and in policy docu-ments In her account the growing preference for transparency is a consequence not only of the positive qualities seen to be intrinsic to transparency itself but also a response to the per-ceived negative characteristics of other forms of disclosure such as gossip scandal and rumor Lars Thoslashger Christensen (with co-author Joep Cornelissen) then analyzed transparency as one of the foundational myths of modernity myths understood here as descriptions of the world in a narrative form which seeks to produce meaning and direction for a community and its members Such lsquoMyths of Transparencyrsquo sustain numerous organizational practices ndash including openness information provision and auditing But as argued by the authors there are conflicting evidence regarding the capacity of such practices to create insights and understandingThat aspirations and techniques of transparency can have seri-ous repercussions was demonstrated by Peter Skaeligrbaeligk (with co-author Mark Christensen) in the paper entitled lsquoAuditing and the purification of blamersquo which analyzed how auditing auditing practices and institutional entities including the po-liticized environments surrounding them are mobilized and participate in blame games and allocation In his paper titled lsquoQuantification transparency and the costs of reassurancersquo Henrik Vollmer analyzed various dimensions of the role of nu-merical records and signaling in generating transparency trust and mistrust

By Hans Krause Hansen Department of Intercultural Communication amp Management

Event

O

28 CSQ

Some of these aspects were also touched upon in the paper lsquoDisrupted Disclosures The Politics of Visibility and Surveil-lance in the Extractive Industriesrsquo by Hans Krause Hansen (with co-author Julie Uldam) which explored the wider field of visibility and surveillance in which contemporary transpar-ency policies are unfolding with examples from the extractive industries Oana Brindusa Albu in her lsquoTransparency and the organizational self everyday politics of identification in Cooperativesrsquo examined the paradoxical effects of values and practices of transparency on collective identity formation pro-cesses drawing upon her ongoing multi-sited fieldwork in co-operatives Under the heading of lsquoThe Improbability of Secrecyrsquo Mark Fenster analyzed the intersections of secrecy and trans-parency with examples from the US government and its efforts to control information which according to the author does not necessarily stop the flow of information Finally Mikkel Fly-verbom and Christina Garsten examined lsquoThe sway of (big) data ndash calculations and advocacy in the name of transparencyrsquo focusing on the operations of data-based forms of corporate lsquotransparency evangelismrsquo and advocacy through revelation including examples from Center for Global Development and Google

In all the workshop was highly successful in investigating not only the historical and mythical foundations of transparency but also the different practices and forms of transparency that currently shape organizations and a wide variety of issue areas It also provided a reminder of the usefulness of investigating a concept of transparency in relationship to a host of other con-cepts such as secrecy myth gossip blame surveillance visi-bility identity information and knowledge The organizers of the workshop wish to thank all workshop participants for their valuable contributions and the CBS Sustainability Platform and ICM for their support

Hans Krause Hansen

Mikkel Flyverbom

Oana Brindusa Albu

ASSOCIATE PROFESSORPHD (ICM)

ASSOCIATE PROFESSORPHD (ICM)

PHD FELLOW (ICM)

29CSQ

Louise Lyngfeldt Gorm Hansen is a PhD Fellow at the Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) She has a back-ground in Chinese Studies from Copenhagen University (BA) the Asian Studies Program at CBS (BSc) and in International Business Stud-ies and Sustainable Business (MSc) from CBS

The aim of her cross-disciplinary PhD project is to explore how the Chinese hydropower sector works with environmental sustainability and more particularly how the concept is understood and performed in the planning phase of a major dam project in the southwestern Chinese province of Yunnan

The aim of the project is to gain a deeper under-standing of how Chinese firms in the renewable energy sector such as hydropower companies understand and value sustainability as well as how such firms tackle the increasing pressure to deliver socially and environmentally balanced solutions to one of Chinarsquos major challenges lowering CO2 emissions in a time with rapidly rising water and energy demands Theoretically the project draws on - and aims to contribute to ndash a combination of Asian Studies and Science and Technology Studies

PHD FocusLouise Lyngfeldt Gorm Hansen

HYDROPOWER

SUSTAINABILITY

30 CSQ

HYDROPOWER

SUSTAINABILITY IN

CHINAy PhD project combines two of my main research interests China and

environmental sustainability I have studied China for a number of years mainly because of an interest in how the Chinese view sus-tainable development So since finishing my masters I have known that I wanted to study how China plan to tackle a sustainable tran-sition in the years to come I saw my chance when CBS announced PhD scholarships in

DanishEuropean-Chinese social science research in collaboration with the newly es-tablished Sino-Danish Center for Education and Research (SDC) and started my PhD in October 2011My PhD project focuses on the Chinese energy sector more specifically the rapidly growing part of the energy sector engaged in renewable energy Here I examine Chinarsquos second largest source of electricity gene-

eration hydropower In recent years China has become increasingly focused on reduc-ing CO2 emissions While some countries such as the US and Australia are decommis-sioning hydropower dams China is looking to large-scale hydropower construction as one of the solutions to a future clean energy supply This means that hydropower devel-opment plays a central role in Chinarsquos sus-tainable transition

However utilization of hydropower is con-troversial not least in China and has met increasing resistance in recent years particu-larly from Chinese and international NGOs the media as well as the scientific commu-nity Critique is most often focused on how or if social and environmental sustainability can be ensured in such large scale projects as the social and environmental impacts of large scale hydropower development are very complex and difficult to measure More gen-erally the viability of relying on hydropow-er as a future source of energy is also being questioned One of the major concerns here is the overarching issue of climate change ie glaciers shrinking and yearly water runoff decreasing This means less stable water flow for hydropower and less water for other pur-poses such as agriculture water supply for down-stream countries etc

By Louise Lyngfeldt Gorm Hansen Asia Research Centre Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) ndash sinodanishcenterdk

M

Picture from SinoHydro promotion material 2011

Research

31CSQ

In contrast to for example the wind power sector in China in which many foreign com-panies have invested the hydropower sector is dominated by a few large state-owned en-terprises Our knowledge of Chinese state-owned enterprises is still limited and there-fore my PhD project is also part of a larger research project at the Asia Research Centre with focus on Chinese state-owned enter-prises and the reform of the public sector in China

In combining these interests my PhD exam-ines how Chinese state-owned enterprises in the hydropower sector tackle the demand to expand hydropower development to help reduce Chinarsquos CO2 emissions while be-ing under increasing pressure to deliver on sustainability principles in the planning and execution of large scale hydropower pro-jects The pressure comes mainly from NGO organizations the media and the scientific community both at home and from abroad I am conducting a case study focused on a specific river in south-western China which has ndash until now ndash not been fully developed for hydropower and the plans for addition-al hydropower dams on the river are still undergoing assessments The project has continually stalled due to disagreements between Chinese government officials at all levels NGOs the media the increasingly deregulated but still state-owned Chinese hydropower companies and the scientif-ic community However the project has very recently been reopened and so will go through another round of assessments in the near future The case is an excellent example of the complexity of hydropower develop-ment decisions in China but it also highlights some of the social and environmental conse-quences of the global push to decrease CO2 emissions

China plays and will continue to play an increasingly important role globally in the years to come However the country also fac-es enormous challenges - not least regarding the environment These challenges also affect economies in Western Europe - for better or worse My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective so

that we here in Europe and in Denmark can more knowledgably and actively engage with China to help solve some of these difficult challenges that eventually affect us all In do-ing this I contribute to gain a better under-standing of the Chinese perspective on envi-ronmental sustainability that can be of use to companies wanting to engage in the Chinese renewable energy sector

My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective rdquoldquo

Picture of the case-river taken by the author in 2012

32 CSQ

FROM BLUEPRINT TO PRACTICE

ENERGY EFFICIENT CONSTRUCTION

By postdoc researcher Satu Reijonen Department of Organization CBS

In the EU almost one third of CO2 emis-sions are attributed to energy used in the construction and use of buildings (FIEC

2007) It is therefore not surprising that the construction sector has recently been subjected to a substantial amount of policy measures to combat its negative effects on climate change In Denmark the state has posed new thresholds for the energy efficien-cy of new buildings including a plan for con-tinuous improvement in the area This far the industry has responded well to these stricter performance requirements In the future re-quirements will rise to levels that are not that easily achieved in the coming years build-ings will have to use 25 less energy than in year 2008 How can these ambitious goals become business as usual

One of the most discussed ways besides add-on technologies such as windmills and solar panels to enhance the energy efficiency of a building is through an energy efficient phys-ical design In practice this means reduction of energy used for heating cooling down and lighting of the building through an optimal orientation and dimensioning of the build-ing

Integrated energy design contrary to add-on technologies can be achieved on a rath-er modest additional budget This should be good news for the sector that today is eco-nomically pressed Indeed today many low energy building projects claim to use the in-tegrated energy design method (IED) when seeking to meet the most ambitious energy related goals In this commentary I wish to discuss some challenges related to the imple-mentation of this design tool

The integrated energy design method sug-gests that one of the main problems in not achieving energy efficiency is that energy related concerns become integrated into the design process too late The method consists of two elements the first of which addresses the need to bring in energy related knowl-edge throughout the design process It sug-gests that design teams ought to be multidis-ciplinary and that architects engineers and experts should work together either co-lo-cated or in a series of workshops Further-more it suggests systematizing energy quali-ty follow-ups into the design process This is all very relevant and inspiring

Oddly enough a closer look on the actual design practices reveals that few seem to ac-tually follow the method of integrated energy design to the point This poses an interest-ing question about the challenges related to the use of such management technologies as vehicles for increased energy efficiency in construction Maybe it is about time practi-tioners and researchers ask themselves what are the boundaries of and challenges related to the use of these tools ndash and what else is required for organizing for more energy effi-cient building design processes

A revolution of relations

Integrated energy design points to the need to bring energy related expertise into the de-sign process at an earlier point In order to achieve this cooperative practices between different professional groups are advocated for Historically energy experts have most-ly been used to respond to rather advanced architectural plans Shared workshops and co-localization suggest a change in these business as usual relations But are they pos-sible and what type of changes do they ac-tually imply in order to function as wished

Research

33CSQ

Satu Reijonen is postdoctoral scholar at the Department of Organization at CBS In her on-going research project she investigates how architects and energy engineers two different profes-sions cooperate and coordinate their work regarding energy related ques-tions in construction design The ways in which relations between and roles of these professions become consti-tuted through socio-material arrange-ments are a central topics in her work Besides studies of work Satu has con-ducted research on environmentally friendly products and markets

ABOUT SATU RAIJONEN

The initiation of this type of new working forms is certainly beneficial for energy effi-cient design However for several reasons they are more difficult to make work than one would assume While it may sound rea-sonable it is after all a tall order Integrating energy related practices into an environment where different visions professions and in-terests meet and the divide between what one profession does is clearly and historically demarcated is demanding While architects need to make room for the intervention of energy experts into the creative work energy experts have to become capable of working creatively and relate to and follow the visual and aesthetic cues from architects In order to work these kind of changes in the profes-sional roles and relations have to resonate with the skills and visions of individual work-ers not only management level design strat-egies It is not surprising that organizational change scholars remind us of the possibility of loose coupling from the strategies placed at the management level (March 1981) What integrated energy design suggests is a kind of a revolution in the ways in which both the architects and the energy engineers envision their role and space of mobility

Linear tools in an unlinear design process

Integrated energy design suggests that the energy performance of the emerging build-ing design be followed up at certain points during the design process The method de-picts a rather mechanistic and linear under-standing of a design process consisting of phases within which iteration may occur While energy related issues may be dis-cussed as quality goals during these phases the method places a lot of emphasis on the check ups performed in the transition from one phase to another Design processes how-ever can also be characterized in a different manner unlinear exploratory and whirl wind type of practices where clear cut phases hardly exist (Akrich 1992 Van de Ven et al 1999) This also applies to the architectural design processes where the object of the de-sign is emergent (Yaneva 2009) This entails that the product the building may change in unexpected ways during any day of the de-sign process If this alternative description of the design processes is viable delegating energy related issues to some predetermined check up episodes may strike a false accord and indeed be contradictory with the aim of enhancing coordination and cooperation between professional groups What happens in between the predetermined checkups may very well be where the energy efficiency of the building becomes configured and where the intervention from the energy experts

would come most needed Perhaps this is why the best performing projects do not blindly follow the steps of the IED method Check ups however and no doubt play a role in verifying and making visible the energy performance for partners outside the design team

Integrated energy design as many other sus-tainability standards and guidelines make visible systematize and legitimize the ex-istence of environmental management and sustainability issues in organizations and work processes In this such way tools create awareness and legitimacy for environmental and sustainability issues The integrated en-ergy design method also suggests a possible way of thinking about what type of design practice might help us to achieve the stricter energy requirements of the future It howev-er falls short in becoming the change agent it suggests This is hardly surprising as a meth-od or a standard of any kind should only be seen as a possibility or as an opening for an inquiry of what the practice could be about Reconfiguring a well established practice is hard work and it would be foolish to trust that a design method would achieve it by itself What the method does is to alert us of the more profound changes in the pro-fessional roles and relations that is needed in order to enable the change However the method due to its rather mechanical under-standing of the design process may come to work against its own ambition of integrating energy issues into the design work In its quest for integration the method defines at which points in time the architectural and the engineering project has to be checked for its energy performance This approach may lead to bringing in energy related concerns in some artificially created points in a design process which may additionally compart-mentalize energy related issues from where the design really happens

Integrated energy design as many other sustainability standards and guidelines make visible systematize and legitimize the existence of environmental management and sustainability issues in organizations and work pro-cessesrdquo

ldquoLiteratureAkrich M (1992) The De-Scription of Technical Objects in Shaping Technology Building Society Studies in Soci-otechnical Change eds WE Bijker and J Law The MIT Press Cambridge Massachusetts pp 205-224

FIEC 2007 The impacts of buildings on climate change httpwwwbuildingsplatformeuepbd_publicationdocFIEC_Memo_p2919pdf on 1222008

March JG (1981) Footnotes to Organizational Change Administrative Science Quarterly vol 26 No 4 pp 563-577

Van de Ven A D Polley R Garud and SVenkataraman (1999) The innovation Journey Oxford Oxford Univer-sity Press

Yaneva A (2009) The making of a building A pragmatist approach to Architecture Bern Peter Lang

More about integrated energy design(IED)

httpwwwintendesigncomosloIntendnsfAttachmentsGuideline_Version_2pdf$FILEGuideline_Version_2pdf

34 CSQ

The climate challenge in

shipping

ldquoGlobal shipping faces two major challenges both of which are caused by its reliance on fossil fuelsrdquo

By Reneacute Taudal Poulsen Department of Innovation amp Organizational Economics

RENEacute TAUDAL POULSEN

ASSOCIATE PROFESSOR DEPARTMENT

OF INNOVATION AND ORGANIZATIONAL

ECONOMICS COPENHAGEN BUSINESS

SCHOOL

orecasts show that the shipping indus-tryrsquos CO2 emissions will most likely continue to rise in the next two to

three decades as demand for world sea-borne trade will expand At present global shipping accounts for approximately 33 per cent of global CO2 emissions but this share will most probably increase in the coming years if many onshore industries succeed in their aims of reducing emission levels

At the same time rapidly rising fuel costs put heavy strain on shipping company budg-ets Historically and until very recently fuel costs were only a minor concern for ship-ping companies but now they often exceed 60 per cent of variable operational costs Fuel savings made through energy efficiency improvements thus represent a win-win sce-nario for the shipping industry and for so-ciety at large They simply make good sense for everyone

Despite the strong incentives for fuel sav-ings numerous studies have demonstrated that shipping fails to implement cost-ef-fective measures to reduce fuel consump-tion Fuel-saving technologies are readily available in the market and in many cases pay-back periods are very short (less than a year) Changes in operational habits which require few if any investments also hold a significant potential for fuel savings

Global shipping thus holds several classic examples of energy-efficiency gaps Gaps occur wherever cost-effective measures to improve energy efficiency fail to materialize The causes for energy efficiency gaps have been a favourite research topic within the field of energy economics for decades and economists sociologists and political scien-tists have been able to identify several means to bridge the gaps However within the mar-itime domain energy efficiency gaps and the climate challenge remain neglected issues Legal barriers

Shipsrsquo fuel consumption rises steeply with speed Hence slow-steaming or just minor speed reductions can lower consumption and emission levels significantly Since oil prices started to rise rapidly a few years ago shipping companies have indeed resorted to various slow-steaming practices and com-panies which succeed in this regard have been able to gain competitive advantages In other words actors in the industry are trying to bridge the energy efficiency gap However and in spite of the strong price signals from the rising fuel prices a potential for fuel sav-ing through slow steaming still remains

FNew CBS research project

A new three year research project at CBS under-

taken by Reneacute Taudal Poulsen for the Department

of Innovation and Organizational Economics will

examine the climate issues bringing insights from

energy economics and innovation management

into the field of shipping economics The project

which is financed by The Danish Maritime Fund

runs from 2012 to 2015 The project asks why en-

ergy efficiency gaps continue to occur in shipping

and how shipping companies and the maritime

industry at large can use innovative business

models and process innovation to turn the climate

challenge and the rising fuel costs into a business

opportunity Energy efficiency gaps occur both

in daily operations and when investments in new

vessels are made This article will briefly present

two examples of energy efficiency gaps from

the operational level and some of the preliminary

findings of the project

References

Jaffe AB and RN Stavins 1994 lsquoThe energy efficiency gap What does it meanrsquo Energy Policy 22 (110) 804-10IMO 2009 Second IMO GHG Study 2009 London International Maritime OrganizationMoriarty P amp D Honnery 2012 lsquoEnergy efficiency Lessons from transportrsquo Energy Policy 46 1ndash3Poulsen Reneacute Taudal 2012 lsquoEmissions and energy efficiency - the twin challenges for shippingrsquo Mercator Maritime Innovation Research and Education MarchJune 447-454

Reneacute Taudal Poulsen is Associate Professor at the Department of Innovation and Organizational Eco-nomics at CBS He is also affliated with the Centre for Shipping Economics and Innovation at CBS Reneacute Taudal Poulsen holds a PhD degree in marine environmental history from the University of Southern Denmark and he has worked within the field of maritime business studies for the last seven years He has published in such journals as Fisheries Research Business History and Scandinavian Economic History Review

His current research intersts concern the environmen-tal challenges faced by the global shipping industry and business model innovation in the maritime domain

Research

35CSQ

It is clear that shipping companies cannot fully bridge the energy efficiency gap alone In fact factors beyond the control of in-dividual shipping companies and various structural or legal barriers prevent shipping from fully realizing the slow steaming po-tential

Port congestion remains a world-wide prob-lem and causes ships to spend remarkably long periods inactive Despite the financial crisis and the large drop in shipping freight markets after 2008 many loaded vessels sit at anchor outside ports waiting for berths In some cases they wait for a few hours In other cases for days weeks or even months Instead of waiting the ships could have re-duced speeds and saved fuel And the de-livery and the loading of the cargo in port would not have been delayed in any way However in many cases shipping companies or ship operators cannot reduce speed in spite of port congestion

Educational barriers

Energy efficiency gaps in shipping are also evident when the fuel consumption levels of sister ships are compared Even though the vessels are identical and operate in the same waters studies have shown that their fuel consumption may differ by several Decisions made by the crews onboard and by managers in the onshore organizations clearly influence the level of fuel consump-tion For instance if a captain selects only very small course deviation margins when coding the autopilot of the ship the shiprsquos rudder will move frequently to keep the ship on the exact course all the time This will slow down the ship and cause higher fuel consumption than if the captain had allowed for slightly wider margins and the wider margins would not have any effect on the safety of the ship Decisions made by the commercial depart-ments eg on how to crew the vessels how to monitor vessel fuel consumption or which new equipment to install onboard may also

have a large impact on fuel efficiency and emission levels If shipping company man-agers can nurture a fuel saving culture this could potentially make a difference Since 2007 or 2008 shipping companies have in-deed started to facilitate such organizational changes but educational barriers remain a problemOnshore truck drivers are now offered fuel saving courses but fuel-saving is not a major part of the traditional curriculum in nautical schools or in the commercial education of shipping trainees For good reasons the nau-tical educations have focused on maritime safety but this has caused them to neglect the climate challenge in shipping and the is-sue of fuel saving In fact no single nauticaltext book on maritime fuel savings has yet been published and according to teachers and students in the nautical schools this serves as an educational barrier to ener-gy-efficiency improvements The technical level of education for commercial employees in shipping companies may also hinder im-provements in energy-efficiency Some com-

mercial shipping employees may not have sufficient training to fully see and acknowl-edge the consequences of their decisions on fuel consumption In short it seems that fuel awareness and the educational systems have responded more slowly to the climate chal-lenge than the rise in fuel prices may other-wise suggest

For shipping to bridge energy-efficiency gaps education ndash both nautical and com-mercial ones ndash clearly is an area to set in Here the potential for innovative solutions is both evident and pertinent Changing educational systems and awareness is no easy task bearing in mind the global nature of the shipping industry and international crewing of the world fleet It is clear howev-er that educational upgrading is necessary for shipping to effectively address the cli-mate challenge effectively

Charter parties between ship-operators and shippers state a specific time of arrival for the vessel and in order to avoid claims ships proceed to port accordingly regardless of berth availability Experiments with new more flexible charter parties which allow for slow steaming in case of port congestion have recently been made Shipping compa-nies have generally been enthusiastic about this flexibility but often shippers remain skeptical Lack of trust between shippers which need the loading of their cargoes as soon as possible and shipping companies may be a cause for this discrepancy Even in cases where the savings made from slow-steaming are split between shipping companies and shippers shippers have re-mained skeptical Port queuing systems may have a role to play here

Many ports including some of the major container iron ore coal and grain ports serve ships on ldquofirst-come first-servedrdquo ba-sis Ships only receive their ldquoticketrdquo in the

waiting line upon their arrival at the port Again lack of trust between the ship-oper-ators shippers and the port authorities may explain this phenomenon Moreover port authorities currently do not have incentives to change queuing practices because they cannot gain a share in the fuel savings made from slow-steaming

The problem is particularly strong in the major tramp shipping segments of tanker and dry cargo shipping where vessels act as ldquotaxis of the seardquo serving numerous shippers and rarely calling at the same ports If the fleet from a shipping company only calls at a particular port once a year and the compa-ny has very short-term relations to individ-ual shippers building trustful relationships between the parties remains a major chal-lenge Solving this problem and realizing the full potential of slow steaming will require systemic innovation in shipping and port systems and further studies are required to identify possible solutions

36 CSQ

The Wind turbine industry -

Emerging global innovation networks in Europe and China

The wind turbine industry has developed into a global network encompassing a large amount of diverse actors within innovation production and installation of wind turbines across the globe

By Stine Haakonsson and Julia Kirch Hollitsch Department of Business amp Politics CBS

market for wind energy Chinese actors have turned China as a location into another im-portant lsquohubrsquo in this network This has led to new forms of innovation collaborations between European and Chinese actors The result has been a complete re-configuration of the industry over the past decade In the International Business and Economic Geog-raphy literatures the development of global production networks in which lead-firms be-come orchestrators of dispersed production

enmark has traditionally played a key role as an lsquoinnovation hubrsquo and com-

panies in Denmark remain among the lead firms within the wind turbine industry Re-cently the industry has reorganized from being located predominantly in the Triad regions (mainly in Europe and the US) to becoming a globally dispersed industry This development can partly be explained by de-velopments in international and national politics Due to the growth of the Chinese

activities in globalized value chains is well established theoretically as well as empiri-cally In the globalization process lead firms relocate production activities to low cost lo-cations by off-shoring and through vertical disintegration and outsourcing to specialized suppliers Producers of wind turbines are no exception However until recently the mar-ket and innovation activities remained con-centrated in Europe and US

With the recent focus on global politics for a post-carbon society the market for wind tur-bines has experienced an immense growth and a high degree of market globalization New locations have developed into main markets One of these is China which since 2010 has been the largest market for wind turbines in the world (in capacity installed) The globalization process in the wind tur-bine can be explained by a combination of offshoring of production by European lead firms mainly through foreign direct invest-ment and establishment of domestic lead firms in emerging markets In 2010 there were four Chinese-owned companies among the top-10 producers of wind turbines as compared to 2003 where all firms on this list were from Europe and the US

D

Julia Kirch Hollitsch

Stine Haakonsson

Stine Haakonsson and Julia Kirch Hollitsch from Depart-

ment of Business and Politics CBS are engaged in the

Sino-Danish Center for Research and Education (SDC)

project on Wind Energy in China Both research on the

current restructuring of industries and firms at the glob-

al level (outsourcing off shoring global value chains)

In particular their research is on 1) the restructuring of

innovation and RampD activities into global innovation net-

works(GINs)2)thechangingroleofemergingmarkets

(ChinaIndiaBrazilSouthAfrica)intheseemergingGINs

and 3) technology transfer and capability building related

to renewable energy

Research

37CSQ

by adapting their products to the Chinese market and through cost-out development activities in the new locations primarily China

As a result the wind industry is today highly knowledge-intensive and internationalized Due to increased attention and investments in sustainable transition policies and car-bon-reducing technology China has over the past decade developed into a high prior-ity investment area for wind turbines Also Chinese companies are upgrading technol-ogy and innovation from the global firms through integration into GINs Moreover the production and innovation networks for wind energy become highly complex and consist of many different suppliers of com-ponents (blades gear boxes control systems bearings) resulting in a variety of network linkages among suppliers of different com-ponents and the wind turbine producers

From our empirical data including more than 40 in-depth interviews collected in 2011 and 2012 in the wind turbines indus-tries in China and Denmark we have identi-fied some very interesting patterns We have identified very different characteristics of the GINs established by the Chinese wind tur-bine industry and the European wind tur

Emerging Global Innovation Networks

Innovation processes are also moving be-yond the boundaries of individual compa-nies and national innovation systems Firms engage in cross-border innovation networks spanning different innovation systems which may be national regional or sectorial in or-der to stay competitive in the global econ-omy Chinese lead firms are entering this scene too The result is globally organized networks of interconnected and integrated functions and operations by firms and non-firm organizations engaged in the develop-ment and diffusion of innovations so-called Global Innovation Networks (GINs) Lead firms internationalize innovation through strategies of exploitation global generation of innovation and global techno-scientific collaborations Chinese wind turbine pro-ducers ndash acknowledging their resource and capability deficiency ndash pursue strategies of innovation network integration through strategies of global generation of innovation These firms link up with specialized Europe-an actors such as core component suppliers through partnerships and networks in or-der to tap into the technology of firms from developed countries and upgrade Mean-while European companies internationalize through exploitation strategies for example

bine industry Although Danish and Chinese actors are experiencing a re-organization of activities and establish networks and globa-linnovation strategies the result is very dif-ferent

The industry from Europe and US

The industry from Europe and the US hosts the lead firms in terms of core technology de-velopment Denmark has traditionally played a key role as lsquoinnovation hubrsquo in technology development and global lead firms such as Vestas and Siemens Windpower (previously Danish lsquoBonusrsquo) took its start already in the 1970s The core competences of the Danish wind turbine innovation system are based on large testing facilities and long track records mainly due to the long time-line of experi-ence The wind industry goes 40 years back and therefore Denmark has a good knowl-edge pool within establishing wind farms (aerodynamics minimizing power loss in energy transmission wind mapping and other installation-related technologies)

38 CSQ

that will make it possible to finance the pro-jects ldquoFrom then on our wind turbine pro-jects developed very fastrdquo(Interview Wind Engineer Chinese Academy of Sciences) Thus this law was a milestone for elevating renewables to a strategic position in China or as expressed by a European lead-firm ldquoWhat drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick offrdquo

Until the turn of the millennium Chinarsquos wind energy industry was largely built on donors acquisition of finished wind turbines and licensed technology from European companies spread on a very small scale into the local industry during the mid 1990s Chi-nese wind turbine technology has evolved from imitation reverse engineering and licensing in the 1980-90s combined with assistance from foreign consultants One example is how DANIDA funded a project in 1986 for Goldwind in Xinjiang which imported 13 units of 150 kW lsquoBonusrsquo (now Siemens Wind Power) turbines

To get beyond the stage of pure imitation several policies have been introduced with the intent to upgrade Chinese manufacturers to obtain indigenous innovative capabilities Policy programs were introduced to enhance Chinese companies to develop wind energy subsidizing wind energy RampD expenditures at varied levels over time establishing a re-newable energy fund and through the ldquo863 Wind Programrdquo under the Tenth Five-Year Plan (2001-2005) Local content require-ments were put in place in which develop-ers of wind energy projects were required to source 70 pct of the content in China These policies ndash which essentially forced foreign manufacturers wishing to sell wind turbines to the Chinese market to establish China-based manufacturing facilities ndash were only removed recently (in 2009) One result was that the foreign companies had to up-grade local suppliers of components

Due to the technological complexity many European (and hereby also the Danish) firms are vertically integrated and have most com-ponents produced in-house or with regular specialized suppliers According to these companies the different parts need to be well adjusted to each other to some extent even co-developed in order to enhance effi-ciency and the lifetime of the wind turbine Likewise the European industry has expe-rienced a concentration of actors with the result that there are only relatively few but large manufacturers in Europe (the larg-est ones are Vestas Siemens Gamesa and Enercon) Together these four companies accounted for about 35 of the global mar-ket in 2010 By seeing the wind turbine as an integrated system these lead firms aim at producing lsquothe Rolls Roycersquo model wind turbines These are strong in terms of qual-ity and standards but generally expensive These firms learn cost-out techniques from their engagement with partners in China

The Chinese Wind Turbine Industry

Today the Chinese wind turbine industry is overly competitive It entails more than 80 wind turbine manufacturers and the Chi-nese market boasts the highest growth rates internationally with an average growth rate of 968 percentages annually in the last three years Several large domestic Chinese wind turbine manufacturers have emerged within the last decade Sinovel and Goldwind take the largest share followed by United Pow-er and Ming Yang just to mention some of them As of the end of 2010 these four were A major driver for the development of the Chinese wind energy market has been the establishment of an institutional context as a comprehensive concerted policy frame-work addressing the development of renewa-ble energies This change in the institutional context was first reflected clearly in the 11th 5-year-plan (2006-2010) which explicitly linked environmental sustainability to the key goal of establishing what was called a harmonious socialist society signalling a socially environmentally and economically sustainable economy With the Renewable Energy Law from 2005 the Chinese wind energy industry really took off as it explicitly seeks to ensure that renewable energy pro-jects have an outlet for their output at prices

Technical barriers and the role of GINs for a post-carbon society

Despite high ambitions in terms of devel-oping innovative capabilities Chinese pro-ducers still produce almost exclusively for the Chinese market However Chinese wind turbine manufacturers have recently started an internationalisation process and some are approaching international markets Not least for tapping into new knowledge

Europe (and Denmark in particular) is per-ceived as a main location from which the Chinese companies can learn more A cou-ple of Chinese companies have already set up RampD centres in Denmark European firms have also initiated RampD centres in new lo-cations primarily China and India In other words GINs can be identified

Our research also points towards important barriers for GINs in the wind turbine in-dustry and for approaching a post-carbon global society Most importantly are the technological barriers intellectual property rights quality issues and issues of limited appropriability of knowledge Further the institutional framework remain relevant for displaying how the sector and the emerging GINs are embedded institutionally socially and technologically Whether actors trans-act knowledge technology and know-how through cooperative innovation activities also depends on how core the technology of a given technology is Still as the market grows in China it seems to have matured in Europe because of changing policies on re-newable energy To sustain the position as a global lsquohubrsquo and world leader in wind tech-nologies there is a strong need for support in Europe as this research really shows how fast the Chinese industry is moving One major result is how important networks are for upgrading companies and it seems that Chinese firms perform better in network strategies and manage to tap into relevant knowledge than the European firms

What drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick off rdquoldquoInterview Wind Engineer Chinese Academy of Sciences

39CSQ

Social Enterprise World

ForumNadine Koumlcher from 180Degrees recounts her experience from the

conference on

Rio de Janeiro Brazil 2012

In the numerous panel debates and parallel track discussion it became clear that Impact Investment is a hot topic among both social entrepreneurs and impact investors a diverse group consisting of corporations founda-tions and potential donors However various obstacles impede a harmonious relationship between the twoSocial enterprises face structural challenges to make themselves more appealing to im-pact investors They have to become more transparent and increase their accountability This includes improving their impact assess-ment and reporting tools However despite much discussion no consensus could be formed on how to optimally conduct im-pact assessment One of the most frequently proposed methodologies involves the use

From the 16th to the 18th of October the CBS Sustainability Platform granted me the opportunity to attend the 5th Social Enter-prise World Forum which took place in Rio de Janeiro Brazil This yearly international conference focuses on social enterprises and their effectiveness in solving social challeng-es The overall theme of the 2012 conference hosted by NESsT was ldquoSocial Enterprise Investing for Impactrdquo Thus for three days over 180 speakers and 650 delegates from 30 different countries shared their experiences regarding impact investment and discussed possibilities to attract new investment by both the public and the private sector for so-cial enterprises

of control groups Story-telling has also been men-tioned to be a powerful tool to provide investors with a proof of outcomesSocial investors are willing to accept returns just below the market rate in exchange for a social return However large profits are still expect-ed and many social enter-prises are afraid of being unable to generate them Social enterprises typically operate on a small scale and are not used to undertake large projects with huge sums of investment given to them Many are too small for social investors to be

attractive as costs are similar for small and large investments although larger invest-ments have a higher payoff

Nichole Echert the CEO of NESsT there-fore pointed out that it is necessary to align expectations between impact investors and social entrepreneurs and to be patient in establishing a relationship between the two groups The expected financial return has to be reasonable close to covering the costs of operation and social returns have to be re-ported to investors by use of clearer criteria

By Nadine Koumlcher Director of Branch Development180 Degrees Consulting Limited

ldquoSocial Enterprise Investing for Impactrdquo

Students

40 CSQ

A highlight of the con-ference was definitely the site visit to a social enterprise project in a recently pacified fave-la It brought further insights on the great variety of social enter-prises that exist in Bra-zil and their missions and struggles We visit-ed a community center at which Comitecirc para

Democratizaccedilao da Informaacutetica (CDI) uses technology to fight poverty and to stimulate entrepreneurship CDI has formed a corpo-rate partnership with Coca Cola which in the same building teaches young locals how to write a CV and find a job Talking to the young locals at the center it became apparent that an increased self-confidence and the in-spiration they get from meeting former now employed participants of the project (eg at Coca Cola) is what they valued most of being part of the class

Participating at the conference was definite-ly a unique and valuable experience I would not want to miss as I tremendously improved my knowledge in the field of social enter-prises through attending the numerous pres-entations and discussions and further met so many inspiring social entrepreneurs impact

In addition it has been stressed that the problem is not a shortage of investment capital (even though the government could promote more impact investment by for instance granting tax breaks) but how to deploy it Social entrepreneurs also have to be aware of the different advantages and dis-advantages of the various types of capital It has to fit their process of establishment and it has therefore been suggested that funds and grants are most optimal in the start-up phase to cover such costs as capacity train-ing There is generally a lack of this early stage financial support Following the initial phase strategic philanthropy money would be most appropriate before impact and final-ly equity investment is sought Furthermore new ways of investment which fit the social enterprise world have to be created replac-ing the current situation of trying to fit social enterprises into the current financial world

investors and students with a genuine inter-est in the field

Participating at the conference was definitely a unique and valuable experience rdquo

ldquo

Social Enterprise World Forum 2013 in

Calgary Canada

The TRICO Charitable Foundation in part-nership with the Social Enterprise Council of Canada and the Social Finance Forum has been selected to host the 6th Annual Social Enterprise World Forum SEWF 2013 will take place October 2-4 2013 in Calgary Al-berta The Forum will present the Canadian social enterprise movement with opportuni-ties to engage learn and share on the inter-national stage

SEWF 2013 will be a gathering of over 1000 Canadian and international delegates who are involved in the social enterprise move-ment where the blending of social and fi-nancial values is core to business Attendees will consist of practitioners (from all sec-tors) funders investors supporters elected officials and public servants from around the world

Nadine Koumlcher

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 24: CBS Sustainability Quarterly 2013 #1

24 CSQ

Voluntary certification schemes

In relation to how standards and certifications can impact sustainable biofuel production discussions pointed to the important difference be-tween mandatory and voluntary schemes As the controversy of sus-tainable biofuels in particular first generation is rolling out special attention has been given to biofuel production competing with food production ILUC value of emissions reduction and environmental and social issues This have off sprung a proliferation in private certifi-cations and during the conference it was discussed intensely whether these schemes have an actual effect on sustainability Depending on the point of view certifications can fill out the holes in legislation and act as a tool to force companies to comply with sustainability crite-ria However the development processes of new certifications may not be inclusive of relevant stakeholders (eg representatives of local populations) Additionally the nature and governance of the networks steering these processes is not always transparent and may favor one interest over the other This intense discussion led to the question of the purpose of certifications Can we use them for anything other than as a CSR PR tool as long as consumer awareness is as low as it is and how do the different regional drivers influence sustainability as a concept The answers to these questions are not easily found and it will be interesting to observe the future development and partnership between public and private sector

Governing the biofuel industry

Within the past decade biodiesel production has risen from below 30PJ in 2000 to 572PJ in 2009 globally and fuel ethanol production has increased from 340PJ to 1540 PJ respectively As the market expands more actors eg governments international organizations civil soci-ety and NGOs private sector networks and companies and profes-sions (biofuel experts and consultants) get involved and play different roles to promote their own agendas Being an emerging industry the structure of the biofuel system shows hybrid forms of governance with many actors As controversies of biofuelsrsquo sustainability develop more issues are added to the agenda giving life to more actors and interests in the governance structure Research shows a shift in power balance as private companies and NGOs increasingly push the agenda The dis-cussions during the conference centered on the complexity of sustain-ability issues calling for mixed governance responses and governance instruments such as standards and certifications which in return need to be followed up with endorsement instruments Given these com-plexities the question is whether the biofuel industry is too difficult to govern as long as the governing systems (for instance the EU) cannot accommodate expectations of all stakeholders

Indirect land use change (ILUC)ILUC is the unintended consequence in terms of more carbon emis-sions due to land use change around the world induced by the expan-sion of croplands for biofuel production When land that could be used to grow food and feed crops is used to grow energy crops this leads to existing agricultural production moving to another area or country where land is converted When this land is cleared and converted to cropland and because natural lands (rainforests and grasslands) store and sequester carbon in their soil and biomass a net increase in GHG emissions can occur Due to this change in the carbon stock of the soil and the biomass ILUC has consequences in the GHG balance of a biofuel Adding to this complexity models for ILUC calculations are not mainstreamed and thus difficult to assess internationally

25CSQ

Mellemfolkeligt Samvirke (MS) or Action Aid Denmark is a Danish NGO founded back in 1944 The

organizations key objective is to fight poverty by ensuring greater political influence for the worldrsquos poor and margin-alized at the local national and international levels MS works to bring about long-term development in the worldrsquos poorest countries focusing especially on education co-

operation and the ability to organize MS mainly works in Africa Read more about the organizationrsquos work

at wwwactionaiddk

Action Aid

A private sector view on the future of sustainable biofuels

By Barbara Louise Bech Department of Business and Politics CBS

nergy security continues to be an eminent concern in a world of finite resources For a long time biofuels have been viewed as

one of the key solutions to replace our dependency on fossil fuels and battle climate change but in recent years controversy has contested the sustainability of first generation biofuels based on food stock Issues such as lack of environmental safeguards causing loss of biodiversi-ty and deforestation and lack of social safeguards ensuring land and labor rights in producer (developing) countries have been claimed as key impediments to sustainable biofuel production Critical observers also argue that the emission savings of biofuel use in compar-ison to fossil fuels can become much smaller (or even disappear) when indirect land use change (ILUC) is included in the calculations Furthermore bi-omass production from food stock is argued to compete with food production and in-creasing food prices

The Danish NGO Action Aid has been engaged in biofuels since 2008 and is par-ticularly involved in protecting womenrsquos rights and preventing land grabs in de-veloping countries ldquoWe are very concerned about land use when it comes to first genera-tion biofuels This relates both to the people who are dependent on the land and to food security We rarely see good combinations where the local populationrsquos needs are taken into consideration The energy crops grown on the local farmerrsquos land donrsquot benefit him and local consumption is essential for developmentrdquo explains Kirsten Hjoslashrnholm Soslashrensen political advisor Action Aid Denmark

It is therefore believed by many that second generation biofuels is the only way forward to avoid competition with food and avert ILUC Next generation biofuels is based on lignocellulosic biomass such as agricultural and household waste and forest residues The Biorefining Alliance represents a cluster of leading Danish companies within the renewable energy sector with an ambition to promote second gener-

ation biofuels and make Denmark a world leader of technology and bi-ofuel productionldquoDenmark has very strong competencies in green tech and as a society we have put a lot of money in its development This is go-ing to be a huge deal globally so we are asking whether Denmark wants to be a customer or a producer What we are working for is of course that we become a lead exporter of technology but also that Denmark produces second generation biofuels commercially Even though we are a small country we cannot settle on selling know-how Denmark also needs to have some industrial productionrdquo says Anne Grete Holmsgaard di-

rector of Biorefining Alliance In her view Denmark needs to keep a firm grip on developing innovation or it will slowly but

steadily move out of the country In this regard she views sustainability criteria for biofuels as an in-

novator and not a hindrance

The Sustainable Biofuels Network (SBN) is another cluster of private companies trying to facilitate the transition from fossil fuels to biofuels in the transport sector For the aviation industry biofuels are considered

to be the only alternative to fossil fuels and the industry firmly believes that biofuels will

survive according to Robert Arendal chairman of SBN ldquoThe aviation industry has set very clear

guidelines for the use of biofuels We are not going to use food based biofuels and we will minimize the use of fresh

water By 2050 our target is to use 50 biofuels in the global aviation so we really need to move fastrdquo he explains adding that living up to sustainability criteria includes being careful about where biofuels are produced ldquoBut it should be produced all over the world and close to the 1600 airports worldwide that account for 95 of all aviationrdquo

he technology for second generation biofuels is already here but the problem is that production costs are too high and there is no market As long as prices are not competitive with conventional fuels it will be difficult to move forward ldquoOne might ask why there is no market The customers are certainly there so if I was in the business of producing

E

As part of the COBREN international conference on sustainable biofuels private sector civil society and academia were invited to give their views on sustainable biofuels at a roundtable discussion at an open public seminar held at DIIS November 19 2012

Event

26 CSQ

SBN is a ldquobreeding groundrdquo and ldquoknowledge centerrdquo for the biofu-els industry where synergies are created between all parties within

the biofuels sector SBN focuses in promoting supporting and enabling the commercial development and use of clean and sustainable biofuels for Heavy Road Transportation Shipping and Aviation Emphasis is put on the importance of global standards for biofuels with local as well as international institutions and decision makers to encourage con-

structive guidelines and rules for the development of biofuels SBN adheres to EUrsquos sustainability criteria SBN is a non-profit asso-

ciation established in 2008 Visit their website for more info at wwwsustainablebiofulsdk

Sustainable Biofuels Network(SBN)

The Biorefining Alliance (BA) was founded December 2011 by DONG Energy Novozymes Haldor Topsoslashe and the

Danish Agriculture and Food Council and is a three-year project to politically promote Denmarkrsquos position in the entire value chain from residues to bio-based products The Alliance has set forth a number of recommendations to achieve a sustainable Danish bio-economy Among other these include (i) that all organic

waste be considered a resource (high-value recycling and storable energy) (ii) reducing the cost of manufacturing 2G

bioethanol and (iii) contemplating the establishment of a national center for sustainable materials

Biorefining Alliance

second generation biofuels I would get started right awayrdquo says Robert Arendal The Biorefining Alliance is working on lowering the costs and recommends a stronger regulatory framework with binding targets as it has been done for the wind industry ldquoThere already is a market for first generation biodiesel which is the least sustainable biofuel We need to make a market for second generation biofuels and we know that binding targets work I donrsquot think it is possible to create a market for the lsquogreen consumerrsquo as you have one for organic food products but I believe that a niche market for HRT (Heavy Road Transport red) such as public bus transport could be a supplementrdquo concludes Anne Grete Holmsgaard

How the future for sustainable biofuels will shape depends on political will to create a market for second generation and the ability of private sector to innovate and bring prices down Oil production is claimed by some to already have peaked and exploring new geographical areas for extraction could be as costly as kick-starting the market for second generation biofuels although much less sustainable As the American ecologist and environmentalist Bill McKibben wrote in his book ldquoDeep Economyrdquo back in 2007

Even before we run out of oil wersquore running out of planetrdquoldquo Bill McKibben

27CSQ

The Transparency-Sustainability NexusA workshop on the practices meanings and tensions of organiza-

tional transparency

n December 5 2012 the Department of Intercultural Communication and Management (ICM) hosted an in-

ternational workshop supported by CBS Sustainability Plat-form and ICM The workshop was organized by Oana Brindusa Albu Mikkel Flyverbom and Hans Krause Hansen respectively PhD Fellow and Associate Professors at ICM The idea of the workshop was spurred by the observation that while ideals of transparency like lsquoopennessrsquo lsquodisclosurersquo and lsquoreportingrsquo are pro-liferating these years the actual construction of transparency within and across organizations is poorly understood Most re-search on transparency is highly normative if not celebratory just as popular discourse about transparency not least in the areas of sustainability and corporate social responsibility is obsessed with ideals of accountability performance and effi-ciency and pervaded by an optimism currently pushed to its extreme with the explosion of new media technologies

But the truth is that we generally know very little about the implications of ideals of transparency when translated into practice in specific issue areas and organizational contexts Importantly each of the contributions to this workshop clear-ly suggested that the contemporary politics of transparency is much more complex contradictory and dynamic than tradi-tionally recognized All papers examined various aspects of the contemporary obsession with transparency and specifically the increasing use of disclosure techniques within and around or-ganizations the rationales or myths underpinning these meas-ures their intended and unintended consequences including implications for identity-making management and govern-ance practices

Clare Birchall initiated the workshop with a paper titled lsquoThe Cultural Politics of Disclosurersquo highlighting how transparency has been positioned as a superior form of disclosure in popular management and organizational literatures and in policy docu-ments In her account the growing preference for transparency is a consequence not only of the positive qualities seen to be intrinsic to transparency itself but also a response to the per-ceived negative characteristics of other forms of disclosure such as gossip scandal and rumor Lars Thoslashger Christensen (with co-author Joep Cornelissen) then analyzed transparency as one of the foundational myths of modernity myths understood here as descriptions of the world in a narrative form which seeks to produce meaning and direction for a community and its members Such lsquoMyths of Transparencyrsquo sustain numerous organizational practices ndash including openness information provision and auditing But as argued by the authors there are conflicting evidence regarding the capacity of such practices to create insights and understandingThat aspirations and techniques of transparency can have seri-ous repercussions was demonstrated by Peter Skaeligrbaeligk (with co-author Mark Christensen) in the paper entitled lsquoAuditing and the purification of blamersquo which analyzed how auditing auditing practices and institutional entities including the po-liticized environments surrounding them are mobilized and participate in blame games and allocation In his paper titled lsquoQuantification transparency and the costs of reassurancersquo Henrik Vollmer analyzed various dimensions of the role of nu-merical records and signaling in generating transparency trust and mistrust

By Hans Krause Hansen Department of Intercultural Communication amp Management

Event

O

28 CSQ

Some of these aspects were also touched upon in the paper lsquoDisrupted Disclosures The Politics of Visibility and Surveil-lance in the Extractive Industriesrsquo by Hans Krause Hansen (with co-author Julie Uldam) which explored the wider field of visibility and surveillance in which contemporary transpar-ency policies are unfolding with examples from the extractive industries Oana Brindusa Albu in her lsquoTransparency and the organizational self everyday politics of identification in Cooperativesrsquo examined the paradoxical effects of values and practices of transparency on collective identity formation pro-cesses drawing upon her ongoing multi-sited fieldwork in co-operatives Under the heading of lsquoThe Improbability of Secrecyrsquo Mark Fenster analyzed the intersections of secrecy and trans-parency with examples from the US government and its efforts to control information which according to the author does not necessarily stop the flow of information Finally Mikkel Fly-verbom and Christina Garsten examined lsquoThe sway of (big) data ndash calculations and advocacy in the name of transparencyrsquo focusing on the operations of data-based forms of corporate lsquotransparency evangelismrsquo and advocacy through revelation including examples from Center for Global Development and Google

In all the workshop was highly successful in investigating not only the historical and mythical foundations of transparency but also the different practices and forms of transparency that currently shape organizations and a wide variety of issue areas It also provided a reminder of the usefulness of investigating a concept of transparency in relationship to a host of other con-cepts such as secrecy myth gossip blame surveillance visi-bility identity information and knowledge The organizers of the workshop wish to thank all workshop participants for their valuable contributions and the CBS Sustainability Platform and ICM for their support

Hans Krause Hansen

Mikkel Flyverbom

Oana Brindusa Albu

ASSOCIATE PROFESSORPHD (ICM)

ASSOCIATE PROFESSORPHD (ICM)

PHD FELLOW (ICM)

29CSQ

Louise Lyngfeldt Gorm Hansen is a PhD Fellow at the Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) She has a back-ground in Chinese Studies from Copenhagen University (BA) the Asian Studies Program at CBS (BSc) and in International Business Stud-ies and Sustainable Business (MSc) from CBS

The aim of her cross-disciplinary PhD project is to explore how the Chinese hydropower sector works with environmental sustainability and more particularly how the concept is understood and performed in the planning phase of a major dam project in the southwestern Chinese province of Yunnan

The aim of the project is to gain a deeper under-standing of how Chinese firms in the renewable energy sector such as hydropower companies understand and value sustainability as well as how such firms tackle the increasing pressure to deliver socially and environmentally balanced solutions to one of Chinarsquos major challenges lowering CO2 emissions in a time with rapidly rising water and energy demands Theoretically the project draws on - and aims to contribute to ndash a combination of Asian Studies and Science and Technology Studies

PHD FocusLouise Lyngfeldt Gorm Hansen

HYDROPOWER

SUSTAINABILITY

30 CSQ

HYDROPOWER

SUSTAINABILITY IN

CHINAy PhD project combines two of my main research interests China and

environmental sustainability I have studied China for a number of years mainly because of an interest in how the Chinese view sus-tainable development So since finishing my masters I have known that I wanted to study how China plan to tackle a sustainable tran-sition in the years to come I saw my chance when CBS announced PhD scholarships in

DanishEuropean-Chinese social science research in collaboration with the newly es-tablished Sino-Danish Center for Education and Research (SDC) and started my PhD in October 2011My PhD project focuses on the Chinese energy sector more specifically the rapidly growing part of the energy sector engaged in renewable energy Here I examine Chinarsquos second largest source of electricity gene-

eration hydropower In recent years China has become increasingly focused on reduc-ing CO2 emissions While some countries such as the US and Australia are decommis-sioning hydropower dams China is looking to large-scale hydropower construction as one of the solutions to a future clean energy supply This means that hydropower devel-opment plays a central role in Chinarsquos sus-tainable transition

However utilization of hydropower is con-troversial not least in China and has met increasing resistance in recent years particu-larly from Chinese and international NGOs the media as well as the scientific commu-nity Critique is most often focused on how or if social and environmental sustainability can be ensured in such large scale projects as the social and environmental impacts of large scale hydropower development are very complex and difficult to measure More gen-erally the viability of relying on hydropow-er as a future source of energy is also being questioned One of the major concerns here is the overarching issue of climate change ie glaciers shrinking and yearly water runoff decreasing This means less stable water flow for hydropower and less water for other pur-poses such as agriculture water supply for down-stream countries etc

By Louise Lyngfeldt Gorm Hansen Asia Research Centre Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) ndash sinodanishcenterdk

M

Picture from SinoHydro promotion material 2011

Research

31CSQ

In contrast to for example the wind power sector in China in which many foreign com-panies have invested the hydropower sector is dominated by a few large state-owned en-terprises Our knowledge of Chinese state-owned enterprises is still limited and there-fore my PhD project is also part of a larger research project at the Asia Research Centre with focus on Chinese state-owned enter-prises and the reform of the public sector in China

In combining these interests my PhD exam-ines how Chinese state-owned enterprises in the hydropower sector tackle the demand to expand hydropower development to help reduce Chinarsquos CO2 emissions while be-ing under increasing pressure to deliver on sustainability principles in the planning and execution of large scale hydropower pro-jects The pressure comes mainly from NGO organizations the media and the scientific community both at home and from abroad I am conducting a case study focused on a specific river in south-western China which has ndash until now ndash not been fully developed for hydropower and the plans for addition-al hydropower dams on the river are still undergoing assessments The project has continually stalled due to disagreements between Chinese government officials at all levels NGOs the media the increasingly deregulated but still state-owned Chinese hydropower companies and the scientif-ic community However the project has very recently been reopened and so will go through another round of assessments in the near future The case is an excellent example of the complexity of hydropower develop-ment decisions in China but it also highlights some of the social and environmental conse-quences of the global push to decrease CO2 emissions

China plays and will continue to play an increasingly important role globally in the years to come However the country also fac-es enormous challenges - not least regarding the environment These challenges also affect economies in Western Europe - for better or worse My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective so

that we here in Europe and in Denmark can more knowledgably and actively engage with China to help solve some of these difficult challenges that eventually affect us all In do-ing this I contribute to gain a better under-standing of the Chinese perspective on envi-ronmental sustainability that can be of use to companies wanting to engage in the Chinese renewable energy sector

My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective rdquoldquo

Picture of the case-river taken by the author in 2012

32 CSQ

FROM BLUEPRINT TO PRACTICE

ENERGY EFFICIENT CONSTRUCTION

By postdoc researcher Satu Reijonen Department of Organization CBS

In the EU almost one third of CO2 emis-sions are attributed to energy used in the construction and use of buildings (FIEC

2007) It is therefore not surprising that the construction sector has recently been subjected to a substantial amount of policy measures to combat its negative effects on climate change In Denmark the state has posed new thresholds for the energy efficien-cy of new buildings including a plan for con-tinuous improvement in the area This far the industry has responded well to these stricter performance requirements In the future re-quirements will rise to levels that are not that easily achieved in the coming years build-ings will have to use 25 less energy than in year 2008 How can these ambitious goals become business as usual

One of the most discussed ways besides add-on technologies such as windmills and solar panels to enhance the energy efficiency of a building is through an energy efficient phys-ical design In practice this means reduction of energy used for heating cooling down and lighting of the building through an optimal orientation and dimensioning of the build-ing

Integrated energy design contrary to add-on technologies can be achieved on a rath-er modest additional budget This should be good news for the sector that today is eco-nomically pressed Indeed today many low energy building projects claim to use the in-tegrated energy design method (IED) when seeking to meet the most ambitious energy related goals In this commentary I wish to discuss some challenges related to the imple-mentation of this design tool

The integrated energy design method sug-gests that one of the main problems in not achieving energy efficiency is that energy related concerns become integrated into the design process too late The method consists of two elements the first of which addresses the need to bring in energy related knowl-edge throughout the design process It sug-gests that design teams ought to be multidis-ciplinary and that architects engineers and experts should work together either co-lo-cated or in a series of workshops Further-more it suggests systematizing energy quali-ty follow-ups into the design process This is all very relevant and inspiring

Oddly enough a closer look on the actual design practices reveals that few seem to ac-tually follow the method of integrated energy design to the point This poses an interest-ing question about the challenges related to the use of such management technologies as vehicles for increased energy efficiency in construction Maybe it is about time practi-tioners and researchers ask themselves what are the boundaries of and challenges related to the use of these tools ndash and what else is required for organizing for more energy effi-cient building design processes

A revolution of relations

Integrated energy design points to the need to bring energy related expertise into the de-sign process at an earlier point In order to achieve this cooperative practices between different professional groups are advocated for Historically energy experts have most-ly been used to respond to rather advanced architectural plans Shared workshops and co-localization suggest a change in these business as usual relations But are they pos-sible and what type of changes do they ac-tually imply in order to function as wished

Research

33CSQ

Satu Reijonen is postdoctoral scholar at the Department of Organization at CBS In her on-going research project she investigates how architects and energy engineers two different profes-sions cooperate and coordinate their work regarding energy related ques-tions in construction design The ways in which relations between and roles of these professions become consti-tuted through socio-material arrange-ments are a central topics in her work Besides studies of work Satu has con-ducted research on environmentally friendly products and markets

ABOUT SATU RAIJONEN

The initiation of this type of new working forms is certainly beneficial for energy effi-cient design However for several reasons they are more difficult to make work than one would assume While it may sound rea-sonable it is after all a tall order Integrating energy related practices into an environment where different visions professions and in-terests meet and the divide between what one profession does is clearly and historically demarcated is demanding While architects need to make room for the intervention of energy experts into the creative work energy experts have to become capable of working creatively and relate to and follow the visual and aesthetic cues from architects In order to work these kind of changes in the profes-sional roles and relations have to resonate with the skills and visions of individual work-ers not only management level design strat-egies It is not surprising that organizational change scholars remind us of the possibility of loose coupling from the strategies placed at the management level (March 1981) What integrated energy design suggests is a kind of a revolution in the ways in which both the architects and the energy engineers envision their role and space of mobility

Linear tools in an unlinear design process

Integrated energy design suggests that the energy performance of the emerging build-ing design be followed up at certain points during the design process The method de-picts a rather mechanistic and linear under-standing of a design process consisting of phases within which iteration may occur While energy related issues may be dis-cussed as quality goals during these phases the method places a lot of emphasis on the check ups performed in the transition from one phase to another Design processes how-ever can also be characterized in a different manner unlinear exploratory and whirl wind type of practices where clear cut phases hardly exist (Akrich 1992 Van de Ven et al 1999) This also applies to the architectural design processes where the object of the de-sign is emergent (Yaneva 2009) This entails that the product the building may change in unexpected ways during any day of the de-sign process If this alternative description of the design processes is viable delegating energy related issues to some predetermined check up episodes may strike a false accord and indeed be contradictory with the aim of enhancing coordination and cooperation between professional groups What happens in between the predetermined checkups may very well be where the energy efficiency of the building becomes configured and where the intervention from the energy experts

would come most needed Perhaps this is why the best performing projects do not blindly follow the steps of the IED method Check ups however and no doubt play a role in verifying and making visible the energy performance for partners outside the design team

Integrated energy design as many other sus-tainability standards and guidelines make visible systematize and legitimize the ex-istence of environmental management and sustainability issues in organizations and work processes In this such way tools create awareness and legitimacy for environmental and sustainability issues The integrated en-ergy design method also suggests a possible way of thinking about what type of design practice might help us to achieve the stricter energy requirements of the future It howev-er falls short in becoming the change agent it suggests This is hardly surprising as a meth-od or a standard of any kind should only be seen as a possibility or as an opening for an inquiry of what the practice could be about Reconfiguring a well established practice is hard work and it would be foolish to trust that a design method would achieve it by itself What the method does is to alert us of the more profound changes in the pro-fessional roles and relations that is needed in order to enable the change However the method due to its rather mechanical under-standing of the design process may come to work against its own ambition of integrating energy issues into the design work In its quest for integration the method defines at which points in time the architectural and the engineering project has to be checked for its energy performance This approach may lead to bringing in energy related concerns in some artificially created points in a design process which may additionally compart-mentalize energy related issues from where the design really happens

Integrated energy design as many other sustainability standards and guidelines make visible systematize and legitimize the existence of environmental management and sustainability issues in organizations and work pro-cessesrdquo

ldquoLiteratureAkrich M (1992) The De-Scription of Technical Objects in Shaping Technology Building Society Studies in Soci-otechnical Change eds WE Bijker and J Law The MIT Press Cambridge Massachusetts pp 205-224

FIEC 2007 The impacts of buildings on climate change httpwwwbuildingsplatformeuepbd_publicationdocFIEC_Memo_p2919pdf on 1222008

March JG (1981) Footnotes to Organizational Change Administrative Science Quarterly vol 26 No 4 pp 563-577

Van de Ven A D Polley R Garud and SVenkataraman (1999) The innovation Journey Oxford Oxford Univer-sity Press

Yaneva A (2009) The making of a building A pragmatist approach to Architecture Bern Peter Lang

More about integrated energy design(IED)

httpwwwintendesigncomosloIntendnsfAttachmentsGuideline_Version_2pdf$FILEGuideline_Version_2pdf

34 CSQ

The climate challenge in

shipping

ldquoGlobal shipping faces two major challenges both of which are caused by its reliance on fossil fuelsrdquo

By Reneacute Taudal Poulsen Department of Innovation amp Organizational Economics

RENEacute TAUDAL POULSEN

ASSOCIATE PROFESSOR DEPARTMENT

OF INNOVATION AND ORGANIZATIONAL

ECONOMICS COPENHAGEN BUSINESS

SCHOOL

orecasts show that the shipping indus-tryrsquos CO2 emissions will most likely continue to rise in the next two to

three decades as demand for world sea-borne trade will expand At present global shipping accounts for approximately 33 per cent of global CO2 emissions but this share will most probably increase in the coming years if many onshore industries succeed in their aims of reducing emission levels

At the same time rapidly rising fuel costs put heavy strain on shipping company budg-ets Historically and until very recently fuel costs were only a minor concern for ship-ping companies but now they often exceed 60 per cent of variable operational costs Fuel savings made through energy efficiency improvements thus represent a win-win sce-nario for the shipping industry and for so-ciety at large They simply make good sense for everyone

Despite the strong incentives for fuel sav-ings numerous studies have demonstrated that shipping fails to implement cost-ef-fective measures to reduce fuel consump-tion Fuel-saving technologies are readily available in the market and in many cases pay-back periods are very short (less than a year) Changes in operational habits which require few if any investments also hold a significant potential for fuel savings

Global shipping thus holds several classic examples of energy-efficiency gaps Gaps occur wherever cost-effective measures to improve energy efficiency fail to materialize The causes for energy efficiency gaps have been a favourite research topic within the field of energy economics for decades and economists sociologists and political scien-tists have been able to identify several means to bridge the gaps However within the mar-itime domain energy efficiency gaps and the climate challenge remain neglected issues Legal barriers

Shipsrsquo fuel consumption rises steeply with speed Hence slow-steaming or just minor speed reductions can lower consumption and emission levels significantly Since oil prices started to rise rapidly a few years ago shipping companies have indeed resorted to various slow-steaming practices and com-panies which succeed in this regard have been able to gain competitive advantages In other words actors in the industry are trying to bridge the energy efficiency gap However and in spite of the strong price signals from the rising fuel prices a potential for fuel sav-ing through slow steaming still remains

FNew CBS research project

A new three year research project at CBS under-

taken by Reneacute Taudal Poulsen for the Department

of Innovation and Organizational Economics will

examine the climate issues bringing insights from

energy economics and innovation management

into the field of shipping economics The project

which is financed by The Danish Maritime Fund

runs from 2012 to 2015 The project asks why en-

ergy efficiency gaps continue to occur in shipping

and how shipping companies and the maritime

industry at large can use innovative business

models and process innovation to turn the climate

challenge and the rising fuel costs into a business

opportunity Energy efficiency gaps occur both

in daily operations and when investments in new

vessels are made This article will briefly present

two examples of energy efficiency gaps from

the operational level and some of the preliminary

findings of the project

References

Jaffe AB and RN Stavins 1994 lsquoThe energy efficiency gap What does it meanrsquo Energy Policy 22 (110) 804-10IMO 2009 Second IMO GHG Study 2009 London International Maritime OrganizationMoriarty P amp D Honnery 2012 lsquoEnergy efficiency Lessons from transportrsquo Energy Policy 46 1ndash3Poulsen Reneacute Taudal 2012 lsquoEmissions and energy efficiency - the twin challenges for shippingrsquo Mercator Maritime Innovation Research and Education MarchJune 447-454

Reneacute Taudal Poulsen is Associate Professor at the Department of Innovation and Organizational Eco-nomics at CBS He is also affliated with the Centre for Shipping Economics and Innovation at CBS Reneacute Taudal Poulsen holds a PhD degree in marine environmental history from the University of Southern Denmark and he has worked within the field of maritime business studies for the last seven years He has published in such journals as Fisheries Research Business History and Scandinavian Economic History Review

His current research intersts concern the environmen-tal challenges faced by the global shipping industry and business model innovation in the maritime domain

Research

35CSQ

It is clear that shipping companies cannot fully bridge the energy efficiency gap alone In fact factors beyond the control of in-dividual shipping companies and various structural or legal barriers prevent shipping from fully realizing the slow steaming po-tential

Port congestion remains a world-wide prob-lem and causes ships to spend remarkably long periods inactive Despite the financial crisis and the large drop in shipping freight markets after 2008 many loaded vessels sit at anchor outside ports waiting for berths In some cases they wait for a few hours In other cases for days weeks or even months Instead of waiting the ships could have re-duced speeds and saved fuel And the de-livery and the loading of the cargo in port would not have been delayed in any way However in many cases shipping companies or ship operators cannot reduce speed in spite of port congestion

Educational barriers

Energy efficiency gaps in shipping are also evident when the fuel consumption levels of sister ships are compared Even though the vessels are identical and operate in the same waters studies have shown that their fuel consumption may differ by several Decisions made by the crews onboard and by managers in the onshore organizations clearly influence the level of fuel consump-tion For instance if a captain selects only very small course deviation margins when coding the autopilot of the ship the shiprsquos rudder will move frequently to keep the ship on the exact course all the time This will slow down the ship and cause higher fuel consumption than if the captain had allowed for slightly wider margins and the wider margins would not have any effect on the safety of the ship Decisions made by the commercial depart-ments eg on how to crew the vessels how to monitor vessel fuel consumption or which new equipment to install onboard may also

have a large impact on fuel efficiency and emission levels If shipping company man-agers can nurture a fuel saving culture this could potentially make a difference Since 2007 or 2008 shipping companies have in-deed started to facilitate such organizational changes but educational barriers remain a problemOnshore truck drivers are now offered fuel saving courses but fuel-saving is not a major part of the traditional curriculum in nautical schools or in the commercial education of shipping trainees For good reasons the nau-tical educations have focused on maritime safety but this has caused them to neglect the climate challenge in shipping and the is-sue of fuel saving In fact no single nauticaltext book on maritime fuel savings has yet been published and according to teachers and students in the nautical schools this serves as an educational barrier to ener-gy-efficiency improvements The technical level of education for commercial employees in shipping companies may also hinder im-provements in energy-efficiency Some com-

mercial shipping employees may not have sufficient training to fully see and acknowl-edge the consequences of their decisions on fuel consumption In short it seems that fuel awareness and the educational systems have responded more slowly to the climate chal-lenge than the rise in fuel prices may other-wise suggest

For shipping to bridge energy-efficiency gaps education ndash both nautical and com-mercial ones ndash clearly is an area to set in Here the potential for innovative solutions is both evident and pertinent Changing educational systems and awareness is no easy task bearing in mind the global nature of the shipping industry and international crewing of the world fleet It is clear howev-er that educational upgrading is necessary for shipping to effectively address the cli-mate challenge effectively

Charter parties between ship-operators and shippers state a specific time of arrival for the vessel and in order to avoid claims ships proceed to port accordingly regardless of berth availability Experiments with new more flexible charter parties which allow for slow steaming in case of port congestion have recently been made Shipping compa-nies have generally been enthusiastic about this flexibility but often shippers remain skeptical Lack of trust between shippers which need the loading of their cargoes as soon as possible and shipping companies may be a cause for this discrepancy Even in cases where the savings made from slow-steaming are split between shipping companies and shippers shippers have re-mained skeptical Port queuing systems may have a role to play here

Many ports including some of the major container iron ore coal and grain ports serve ships on ldquofirst-come first-servedrdquo ba-sis Ships only receive their ldquoticketrdquo in the

waiting line upon their arrival at the port Again lack of trust between the ship-oper-ators shippers and the port authorities may explain this phenomenon Moreover port authorities currently do not have incentives to change queuing practices because they cannot gain a share in the fuel savings made from slow-steaming

The problem is particularly strong in the major tramp shipping segments of tanker and dry cargo shipping where vessels act as ldquotaxis of the seardquo serving numerous shippers and rarely calling at the same ports If the fleet from a shipping company only calls at a particular port once a year and the compa-ny has very short-term relations to individ-ual shippers building trustful relationships between the parties remains a major chal-lenge Solving this problem and realizing the full potential of slow steaming will require systemic innovation in shipping and port systems and further studies are required to identify possible solutions

36 CSQ

The Wind turbine industry -

Emerging global innovation networks in Europe and China

The wind turbine industry has developed into a global network encompassing a large amount of diverse actors within innovation production and installation of wind turbines across the globe

By Stine Haakonsson and Julia Kirch Hollitsch Department of Business amp Politics CBS

market for wind energy Chinese actors have turned China as a location into another im-portant lsquohubrsquo in this network This has led to new forms of innovation collaborations between European and Chinese actors The result has been a complete re-configuration of the industry over the past decade In the International Business and Economic Geog-raphy literatures the development of global production networks in which lead-firms be-come orchestrators of dispersed production

enmark has traditionally played a key role as an lsquoinnovation hubrsquo and com-

panies in Denmark remain among the lead firms within the wind turbine industry Re-cently the industry has reorganized from being located predominantly in the Triad regions (mainly in Europe and the US) to becoming a globally dispersed industry This development can partly be explained by de-velopments in international and national politics Due to the growth of the Chinese

activities in globalized value chains is well established theoretically as well as empiri-cally In the globalization process lead firms relocate production activities to low cost lo-cations by off-shoring and through vertical disintegration and outsourcing to specialized suppliers Producers of wind turbines are no exception However until recently the mar-ket and innovation activities remained con-centrated in Europe and US

With the recent focus on global politics for a post-carbon society the market for wind tur-bines has experienced an immense growth and a high degree of market globalization New locations have developed into main markets One of these is China which since 2010 has been the largest market for wind turbines in the world (in capacity installed) The globalization process in the wind tur-bine can be explained by a combination of offshoring of production by European lead firms mainly through foreign direct invest-ment and establishment of domestic lead firms in emerging markets In 2010 there were four Chinese-owned companies among the top-10 producers of wind turbines as compared to 2003 where all firms on this list were from Europe and the US

D

Julia Kirch Hollitsch

Stine Haakonsson

Stine Haakonsson and Julia Kirch Hollitsch from Depart-

ment of Business and Politics CBS are engaged in the

Sino-Danish Center for Research and Education (SDC)

project on Wind Energy in China Both research on the

current restructuring of industries and firms at the glob-

al level (outsourcing off shoring global value chains)

In particular their research is on 1) the restructuring of

innovation and RampD activities into global innovation net-

works(GINs)2)thechangingroleofemergingmarkets

(ChinaIndiaBrazilSouthAfrica)intheseemergingGINs

and 3) technology transfer and capability building related

to renewable energy

Research

37CSQ

by adapting their products to the Chinese market and through cost-out development activities in the new locations primarily China

As a result the wind industry is today highly knowledge-intensive and internationalized Due to increased attention and investments in sustainable transition policies and car-bon-reducing technology China has over the past decade developed into a high prior-ity investment area for wind turbines Also Chinese companies are upgrading technol-ogy and innovation from the global firms through integration into GINs Moreover the production and innovation networks for wind energy become highly complex and consist of many different suppliers of com-ponents (blades gear boxes control systems bearings) resulting in a variety of network linkages among suppliers of different com-ponents and the wind turbine producers

From our empirical data including more than 40 in-depth interviews collected in 2011 and 2012 in the wind turbines indus-tries in China and Denmark we have identi-fied some very interesting patterns We have identified very different characteristics of the GINs established by the Chinese wind tur-bine industry and the European wind tur

Emerging Global Innovation Networks

Innovation processes are also moving be-yond the boundaries of individual compa-nies and national innovation systems Firms engage in cross-border innovation networks spanning different innovation systems which may be national regional or sectorial in or-der to stay competitive in the global econ-omy Chinese lead firms are entering this scene too The result is globally organized networks of interconnected and integrated functions and operations by firms and non-firm organizations engaged in the develop-ment and diffusion of innovations so-called Global Innovation Networks (GINs) Lead firms internationalize innovation through strategies of exploitation global generation of innovation and global techno-scientific collaborations Chinese wind turbine pro-ducers ndash acknowledging their resource and capability deficiency ndash pursue strategies of innovation network integration through strategies of global generation of innovation These firms link up with specialized Europe-an actors such as core component suppliers through partnerships and networks in or-der to tap into the technology of firms from developed countries and upgrade Mean-while European companies internationalize through exploitation strategies for example

bine industry Although Danish and Chinese actors are experiencing a re-organization of activities and establish networks and globa-linnovation strategies the result is very dif-ferent

The industry from Europe and US

The industry from Europe and the US hosts the lead firms in terms of core technology de-velopment Denmark has traditionally played a key role as lsquoinnovation hubrsquo in technology development and global lead firms such as Vestas and Siemens Windpower (previously Danish lsquoBonusrsquo) took its start already in the 1970s The core competences of the Danish wind turbine innovation system are based on large testing facilities and long track records mainly due to the long time-line of experi-ence The wind industry goes 40 years back and therefore Denmark has a good knowl-edge pool within establishing wind farms (aerodynamics minimizing power loss in energy transmission wind mapping and other installation-related technologies)

38 CSQ

that will make it possible to finance the pro-jects ldquoFrom then on our wind turbine pro-jects developed very fastrdquo(Interview Wind Engineer Chinese Academy of Sciences) Thus this law was a milestone for elevating renewables to a strategic position in China or as expressed by a European lead-firm ldquoWhat drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick offrdquo

Until the turn of the millennium Chinarsquos wind energy industry was largely built on donors acquisition of finished wind turbines and licensed technology from European companies spread on a very small scale into the local industry during the mid 1990s Chi-nese wind turbine technology has evolved from imitation reverse engineering and licensing in the 1980-90s combined with assistance from foreign consultants One example is how DANIDA funded a project in 1986 for Goldwind in Xinjiang which imported 13 units of 150 kW lsquoBonusrsquo (now Siemens Wind Power) turbines

To get beyond the stage of pure imitation several policies have been introduced with the intent to upgrade Chinese manufacturers to obtain indigenous innovative capabilities Policy programs were introduced to enhance Chinese companies to develop wind energy subsidizing wind energy RampD expenditures at varied levels over time establishing a re-newable energy fund and through the ldquo863 Wind Programrdquo under the Tenth Five-Year Plan (2001-2005) Local content require-ments were put in place in which develop-ers of wind energy projects were required to source 70 pct of the content in China These policies ndash which essentially forced foreign manufacturers wishing to sell wind turbines to the Chinese market to establish China-based manufacturing facilities ndash were only removed recently (in 2009) One result was that the foreign companies had to up-grade local suppliers of components

Due to the technological complexity many European (and hereby also the Danish) firms are vertically integrated and have most com-ponents produced in-house or with regular specialized suppliers According to these companies the different parts need to be well adjusted to each other to some extent even co-developed in order to enhance effi-ciency and the lifetime of the wind turbine Likewise the European industry has expe-rienced a concentration of actors with the result that there are only relatively few but large manufacturers in Europe (the larg-est ones are Vestas Siemens Gamesa and Enercon) Together these four companies accounted for about 35 of the global mar-ket in 2010 By seeing the wind turbine as an integrated system these lead firms aim at producing lsquothe Rolls Roycersquo model wind turbines These are strong in terms of qual-ity and standards but generally expensive These firms learn cost-out techniques from their engagement with partners in China

The Chinese Wind Turbine Industry

Today the Chinese wind turbine industry is overly competitive It entails more than 80 wind turbine manufacturers and the Chi-nese market boasts the highest growth rates internationally with an average growth rate of 968 percentages annually in the last three years Several large domestic Chinese wind turbine manufacturers have emerged within the last decade Sinovel and Goldwind take the largest share followed by United Pow-er and Ming Yang just to mention some of them As of the end of 2010 these four were A major driver for the development of the Chinese wind energy market has been the establishment of an institutional context as a comprehensive concerted policy frame-work addressing the development of renewa-ble energies This change in the institutional context was first reflected clearly in the 11th 5-year-plan (2006-2010) which explicitly linked environmental sustainability to the key goal of establishing what was called a harmonious socialist society signalling a socially environmentally and economically sustainable economy With the Renewable Energy Law from 2005 the Chinese wind energy industry really took off as it explicitly seeks to ensure that renewable energy pro-jects have an outlet for their output at prices

Technical barriers and the role of GINs for a post-carbon society

Despite high ambitions in terms of devel-oping innovative capabilities Chinese pro-ducers still produce almost exclusively for the Chinese market However Chinese wind turbine manufacturers have recently started an internationalisation process and some are approaching international markets Not least for tapping into new knowledge

Europe (and Denmark in particular) is per-ceived as a main location from which the Chinese companies can learn more A cou-ple of Chinese companies have already set up RampD centres in Denmark European firms have also initiated RampD centres in new lo-cations primarily China and India In other words GINs can be identified

Our research also points towards important barriers for GINs in the wind turbine in-dustry and for approaching a post-carbon global society Most importantly are the technological barriers intellectual property rights quality issues and issues of limited appropriability of knowledge Further the institutional framework remain relevant for displaying how the sector and the emerging GINs are embedded institutionally socially and technologically Whether actors trans-act knowledge technology and know-how through cooperative innovation activities also depends on how core the technology of a given technology is Still as the market grows in China it seems to have matured in Europe because of changing policies on re-newable energy To sustain the position as a global lsquohubrsquo and world leader in wind tech-nologies there is a strong need for support in Europe as this research really shows how fast the Chinese industry is moving One major result is how important networks are for upgrading companies and it seems that Chinese firms perform better in network strategies and manage to tap into relevant knowledge than the European firms

What drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick off rdquoldquoInterview Wind Engineer Chinese Academy of Sciences

39CSQ

Social Enterprise World

ForumNadine Koumlcher from 180Degrees recounts her experience from the

conference on

Rio de Janeiro Brazil 2012

In the numerous panel debates and parallel track discussion it became clear that Impact Investment is a hot topic among both social entrepreneurs and impact investors a diverse group consisting of corporations founda-tions and potential donors However various obstacles impede a harmonious relationship between the twoSocial enterprises face structural challenges to make themselves more appealing to im-pact investors They have to become more transparent and increase their accountability This includes improving their impact assess-ment and reporting tools However despite much discussion no consensus could be formed on how to optimally conduct im-pact assessment One of the most frequently proposed methodologies involves the use

From the 16th to the 18th of October the CBS Sustainability Platform granted me the opportunity to attend the 5th Social Enter-prise World Forum which took place in Rio de Janeiro Brazil This yearly international conference focuses on social enterprises and their effectiveness in solving social challeng-es The overall theme of the 2012 conference hosted by NESsT was ldquoSocial Enterprise Investing for Impactrdquo Thus for three days over 180 speakers and 650 delegates from 30 different countries shared their experiences regarding impact investment and discussed possibilities to attract new investment by both the public and the private sector for so-cial enterprises

of control groups Story-telling has also been men-tioned to be a powerful tool to provide investors with a proof of outcomesSocial investors are willing to accept returns just below the market rate in exchange for a social return However large profits are still expect-ed and many social enter-prises are afraid of being unable to generate them Social enterprises typically operate on a small scale and are not used to undertake large projects with huge sums of investment given to them Many are too small for social investors to be

attractive as costs are similar for small and large investments although larger invest-ments have a higher payoff

Nichole Echert the CEO of NESsT there-fore pointed out that it is necessary to align expectations between impact investors and social entrepreneurs and to be patient in establishing a relationship between the two groups The expected financial return has to be reasonable close to covering the costs of operation and social returns have to be re-ported to investors by use of clearer criteria

By Nadine Koumlcher Director of Branch Development180 Degrees Consulting Limited

ldquoSocial Enterprise Investing for Impactrdquo

Students

40 CSQ

A highlight of the con-ference was definitely the site visit to a social enterprise project in a recently pacified fave-la It brought further insights on the great variety of social enter-prises that exist in Bra-zil and their missions and struggles We visit-ed a community center at which Comitecirc para

Democratizaccedilao da Informaacutetica (CDI) uses technology to fight poverty and to stimulate entrepreneurship CDI has formed a corpo-rate partnership with Coca Cola which in the same building teaches young locals how to write a CV and find a job Talking to the young locals at the center it became apparent that an increased self-confidence and the in-spiration they get from meeting former now employed participants of the project (eg at Coca Cola) is what they valued most of being part of the class

Participating at the conference was definite-ly a unique and valuable experience I would not want to miss as I tremendously improved my knowledge in the field of social enter-prises through attending the numerous pres-entations and discussions and further met so many inspiring social entrepreneurs impact

In addition it has been stressed that the problem is not a shortage of investment capital (even though the government could promote more impact investment by for instance granting tax breaks) but how to deploy it Social entrepreneurs also have to be aware of the different advantages and dis-advantages of the various types of capital It has to fit their process of establishment and it has therefore been suggested that funds and grants are most optimal in the start-up phase to cover such costs as capacity train-ing There is generally a lack of this early stage financial support Following the initial phase strategic philanthropy money would be most appropriate before impact and final-ly equity investment is sought Furthermore new ways of investment which fit the social enterprise world have to be created replac-ing the current situation of trying to fit social enterprises into the current financial world

investors and students with a genuine inter-est in the field

Participating at the conference was definitely a unique and valuable experience rdquo

ldquo

Social Enterprise World Forum 2013 in

Calgary Canada

The TRICO Charitable Foundation in part-nership with the Social Enterprise Council of Canada and the Social Finance Forum has been selected to host the 6th Annual Social Enterprise World Forum SEWF 2013 will take place October 2-4 2013 in Calgary Al-berta The Forum will present the Canadian social enterprise movement with opportuni-ties to engage learn and share on the inter-national stage

SEWF 2013 will be a gathering of over 1000 Canadian and international delegates who are involved in the social enterprise move-ment where the blending of social and fi-nancial values is core to business Attendees will consist of practitioners (from all sec-tors) funders investors supporters elected officials and public servants from around the world

Nadine Koumlcher

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 25: CBS Sustainability Quarterly 2013 #1

25CSQ

Mellemfolkeligt Samvirke (MS) or Action Aid Denmark is a Danish NGO founded back in 1944 The

organizations key objective is to fight poverty by ensuring greater political influence for the worldrsquos poor and margin-alized at the local national and international levels MS works to bring about long-term development in the worldrsquos poorest countries focusing especially on education co-

operation and the ability to organize MS mainly works in Africa Read more about the organizationrsquos work

at wwwactionaiddk

Action Aid

A private sector view on the future of sustainable biofuels

By Barbara Louise Bech Department of Business and Politics CBS

nergy security continues to be an eminent concern in a world of finite resources For a long time biofuels have been viewed as

one of the key solutions to replace our dependency on fossil fuels and battle climate change but in recent years controversy has contested the sustainability of first generation biofuels based on food stock Issues such as lack of environmental safeguards causing loss of biodiversi-ty and deforestation and lack of social safeguards ensuring land and labor rights in producer (developing) countries have been claimed as key impediments to sustainable biofuel production Critical observers also argue that the emission savings of biofuel use in compar-ison to fossil fuels can become much smaller (or even disappear) when indirect land use change (ILUC) is included in the calculations Furthermore bi-omass production from food stock is argued to compete with food production and in-creasing food prices

The Danish NGO Action Aid has been engaged in biofuels since 2008 and is par-ticularly involved in protecting womenrsquos rights and preventing land grabs in de-veloping countries ldquoWe are very concerned about land use when it comes to first genera-tion biofuels This relates both to the people who are dependent on the land and to food security We rarely see good combinations where the local populationrsquos needs are taken into consideration The energy crops grown on the local farmerrsquos land donrsquot benefit him and local consumption is essential for developmentrdquo explains Kirsten Hjoslashrnholm Soslashrensen political advisor Action Aid Denmark

It is therefore believed by many that second generation biofuels is the only way forward to avoid competition with food and avert ILUC Next generation biofuels is based on lignocellulosic biomass such as agricultural and household waste and forest residues The Biorefining Alliance represents a cluster of leading Danish companies within the renewable energy sector with an ambition to promote second gener-

ation biofuels and make Denmark a world leader of technology and bi-ofuel productionldquoDenmark has very strong competencies in green tech and as a society we have put a lot of money in its development This is go-ing to be a huge deal globally so we are asking whether Denmark wants to be a customer or a producer What we are working for is of course that we become a lead exporter of technology but also that Denmark produces second generation biofuels commercially Even though we are a small country we cannot settle on selling know-how Denmark also needs to have some industrial productionrdquo says Anne Grete Holmsgaard di-

rector of Biorefining Alliance In her view Denmark needs to keep a firm grip on developing innovation or it will slowly but

steadily move out of the country In this regard she views sustainability criteria for biofuels as an in-

novator and not a hindrance

The Sustainable Biofuels Network (SBN) is another cluster of private companies trying to facilitate the transition from fossil fuels to biofuels in the transport sector For the aviation industry biofuels are considered

to be the only alternative to fossil fuels and the industry firmly believes that biofuels will

survive according to Robert Arendal chairman of SBN ldquoThe aviation industry has set very clear

guidelines for the use of biofuels We are not going to use food based biofuels and we will minimize the use of fresh

water By 2050 our target is to use 50 biofuels in the global aviation so we really need to move fastrdquo he explains adding that living up to sustainability criteria includes being careful about where biofuels are produced ldquoBut it should be produced all over the world and close to the 1600 airports worldwide that account for 95 of all aviationrdquo

he technology for second generation biofuels is already here but the problem is that production costs are too high and there is no market As long as prices are not competitive with conventional fuels it will be difficult to move forward ldquoOne might ask why there is no market The customers are certainly there so if I was in the business of producing

E

As part of the COBREN international conference on sustainable biofuels private sector civil society and academia were invited to give their views on sustainable biofuels at a roundtable discussion at an open public seminar held at DIIS November 19 2012

Event

26 CSQ

SBN is a ldquobreeding groundrdquo and ldquoknowledge centerrdquo for the biofu-els industry where synergies are created between all parties within

the biofuels sector SBN focuses in promoting supporting and enabling the commercial development and use of clean and sustainable biofuels for Heavy Road Transportation Shipping and Aviation Emphasis is put on the importance of global standards for biofuels with local as well as international institutions and decision makers to encourage con-

structive guidelines and rules for the development of biofuels SBN adheres to EUrsquos sustainability criteria SBN is a non-profit asso-

ciation established in 2008 Visit their website for more info at wwwsustainablebiofulsdk

Sustainable Biofuels Network(SBN)

The Biorefining Alliance (BA) was founded December 2011 by DONG Energy Novozymes Haldor Topsoslashe and the

Danish Agriculture and Food Council and is a three-year project to politically promote Denmarkrsquos position in the entire value chain from residues to bio-based products The Alliance has set forth a number of recommendations to achieve a sustainable Danish bio-economy Among other these include (i) that all organic

waste be considered a resource (high-value recycling and storable energy) (ii) reducing the cost of manufacturing 2G

bioethanol and (iii) contemplating the establishment of a national center for sustainable materials

Biorefining Alliance

second generation biofuels I would get started right awayrdquo says Robert Arendal The Biorefining Alliance is working on lowering the costs and recommends a stronger regulatory framework with binding targets as it has been done for the wind industry ldquoThere already is a market for first generation biodiesel which is the least sustainable biofuel We need to make a market for second generation biofuels and we know that binding targets work I donrsquot think it is possible to create a market for the lsquogreen consumerrsquo as you have one for organic food products but I believe that a niche market for HRT (Heavy Road Transport red) such as public bus transport could be a supplementrdquo concludes Anne Grete Holmsgaard

How the future for sustainable biofuels will shape depends on political will to create a market for second generation and the ability of private sector to innovate and bring prices down Oil production is claimed by some to already have peaked and exploring new geographical areas for extraction could be as costly as kick-starting the market for second generation biofuels although much less sustainable As the American ecologist and environmentalist Bill McKibben wrote in his book ldquoDeep Economyrdquo back in 2007

Even before we run out of oil wersquore running out of planetrdquoldquo Bill McKibben

27CSQ

The Transparency-Sustainability NexusA workshop on the practices meanings and tensions of organiza-

tional transparency

n December 5 2012 the Department of Intercultural Communication and Management (ICM) hosted an in-

ternational workshop supported by CBS Sustainability Plat-form and ICM The workshop was organized by Oana Brindusa Albu Mikkel Flyverbom and Hans Krause Hansen respectively PhD Fellow and Associate Professors at ICM The idea of the workshop was spurred by the observation that while ideals of transparency like lsquoopennessrsquo lsquodisclosurersquo and lsquoreportingrsquo are pro-liferating these years the actual construction of transparency within and across organizations is poorly understood Most re-search on transparency is highly normative if not celebratory just as popular discourse about transparency not least in the areas of sustainability and corporate social responsibility is obsessed with ideals of accountability performance and effi-ciency and pervaded by an optimism currently pushed to its extreme with the explosion of new media technologies

But the truth is that we generally know very little about the implications of ideals of transparency when translated into practice in specific issue areas and organizational contexts Importantly each of the contributions to this workshop clear-ly suggested that the contemporary politics of transparency is much more complex contradictory and dynamic than tradi-tionally recognized All papers examined various aspects of the contemporary obsession with transparency and specifically the increasing use of disclosure techniques within and around or-ganizations the rationales or myths underpinning these meas-ures their intended and unintended consequences including implications for identity-making management and govern-ance practices

Clare Birchall initiated the workshop with a paper titled lsquoThe Cultural Politics of Disclosurersquo highlighting how transparency has been positioned as a superior form of disclosure in popular management and organizational literatures and in policy docu-ments In her account the growing preference for transparency is a consequence not only of the positive qualities seen to be intrinsic to transparency itself but also a response to the per-ceived negative characteristics of other forms of disclosure such as gossip scandal and rumor Lars Thoslashger Christensen (with co-author Joep Cornelissen) then analyzed transparency as one of the foundational myths of modernity myths understood here as descriptions of the world in a narrative form which seeks to produce meaning and direction for a community and its members Such lsquoMyths of Transparencyrsquo sustain numerous organizational practices ndash including openness information provision and auditing But as argued by the authors there are conflicting evidence regarding the capacity of such practices to create insights and understandingThat aspirations and techniques of transparency can have seri-ous repercussions was demonstrated by Peter Skaeligrbaeligk (with co-author Mark Christensen) in the paper entitled lsquoAuditing and the purification of blamersquo which analyzed how auditing auditing practices and institutional entities including the po-liticized environments surrounding them are mobilized and participate in blame games and allocation In his paper titled lsquoQuantification transparency and the costs of reassurancersquo Henrik Vollmer analyzed various dimensions of the role of nu-merical records and signaling in generating transparency trust and mistrust

By Hans Krause Hansen Department of Intercultural Communication amp Management

Event

O

28 CSQ

Some of these aspects were also touched upon in the paper lsquoDisrupted Disclosures The Politics of Visibility and Surveil-lance in the Extractive Industriesrsquo by Hans Krause Hansen (with co-author Julie Uldam) which explored the wider field of visibility and surveillance in which contemporary transpar-ency policies are unfolding with examples from the extractive industries Oana Brindusa Albu in her lsquoTransparency and the organizational self everyday politics of identification in Cooperativesrsquo examined the paradoxical effects of values and practices of transparency on collective identity formation pro-cesses drawing upon her ongoing multi-sited fieldwork in co-operatives Under the heading of lsquoThe Improbability of Secrecyrsquo Mark Fenster analyzed the intersections of secrecy and trans-parency with examples from the US government and its efforts to control information which according to the author does not necessarily stop the flow of information Finally Mikkel Fly-verbom and Christina Garsten examined lsquoThe sway of (big) data ndash calculations and advocacy in the name of transparencyrsquo focusing on the operations of data-based forms of corporate lsquotransparency evangelismrsquo and advocacy through revelation including examples from Center for Global Development and Google

In all the workshop was highly successful in investigating not only the historical and mythical foundations of transparency but also the different practices and forms of transparency that currently shape organizations and a wide variety of issue areas It also provided a reminder of the usefulness of investigating a concept of transparency in relationship to a host of other con-cepts such as secrecy myth gossip blame surveillance visi-bility identity information and knowledge The organizers of the workshop wish to thank all workshop participants for their valuable contributions and the CBS Sustainability Platform and ICM for their support

Hans Krause Hansen

Mikkel Flyverbom

Oana Brindusa Albu

ASSOCIATE PROFESSORPHD (ICM)

ASSOCIATE PROFESSORPHD (ICM)

PHD FELLOW (ICM)

29CSQ

Louise Lyngfeldt Gorm Hansen is a PhD Fellow at the Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) She has a back-ground in Chinese Studies from Copenhagen University (BA) the Asian Studies Program at CBS (BSc) and in International Business Stud-ies and Sustainable Business (MSc) from CBS

The aim of her cross-disciplinary PhD project is to explore how the Chinese hydropower sector works with environmental sustainability and more particularly how the concept is understood and performed in the planning phase of a major dam project in the southwestern Chinese province of Yunnan

The aim of the project is to gain a deeper under-standing of how Chinese firms in the renewable energy sector such as hydropower companies understand and value sustainability as well as how such firms tackle the increasing pressure to deliver socially and environmentally balanced solutions to one of Chinarsquos major challenges lowering CO2 emissions in a time with rapidly rising water and energy demands Theoretically the project draws on - and aims to contribute to ndash a combination of Asian Studies and Science and Technology Studies

PHD FocusLouise Lyngfeldt Gorm Hansen

HYDROPOWER

SUSTAINABILITY

30 CSQ

HYDROPOWER

SUSTAINABILITY IN

CHINAy PhD project combines two of my main research interests China and

environmental sustainability I have studied China for a number of years mainly because of an interest in how the Chinese view sus-tainable development So since finishing my masters I have known that I wanted to study how China plan to tackle a sustainable tran-sition in the years to come I saw my chance when CBS announced PhD scholarships in

DanishEuropean-Chinese social science research in collaboration with the newly es-tablished Sino-Danish Center for Education and Research (SDC) and started my PhD in October 2011My PhD project focuses on the Chinese energy sector more specifically the rapidly growing part of the energy sector engaged in renewable energy Here I examine Chinarsquos second largest source of electricity gene-

eration hydropower In recent years China has become increasingly focused on reduc-ing CO2 emissions While some countries such as the US and Australia are decommis-sioning hydropower dams China is looking to large-scale hydropower construction as one of the solutions to a future clean energy supply This means that hydropower devel-opment plays a central role in Chinarsquos sus-tainable transition

However utilization of hydropower is con-troversial not least in China and has met increasing resistance in recent years particu-larly from Chinese and international NGOs the media as well as the scientific commu-nity Critique is most often focused on how or if social and environmental sustainability can be ensured in such large scale projects as the social and environmental impacts of large scale hydropower development are very complex and difficult to measure More gen-erally the viability of relying on hydropow-er as a future source of energy is also being questioned One of the major concerns here is the overarching issue of climate change ie glaciers shrinking and yearly water runoff decreasing This means less stable water flow for hydropower and less water for other pur-poses such as agriculture water supply for down-stream countries etc

By Louise Lyngfeldt Gorm Hansen Asia Research Centre Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) ndash sinodanishcenterdk

M

Picture from SinoHydro promotion material 2011

Research

31CSQ

In contrast to for example the wind power sector in China in which many foreign com-panies have invested the hydropower sector is dominated by a few large state-owned en-terprises Our knowledge of Chinese state-owned enterprises is still limited and there-fore my PhD project is also part of a larger research project at the Asia Research Centre with focus on Chinese state-owned enter-prises and the reform of the public sector in China

In combining these interests my PhD exam-ines how Chinese state-owned enterprises in the hydropower sector tackle the demand to expand hydropower development to help reduce Chinarsquos CO2 emissions while be-ing under increasing pressure to deliver on sustainability principles in the planning and execution of large scale hydropower pro-jects The pressure comes mainly from NGO organizations the media and the scientific community both at home and from abroad I am conducting a case study focused on a specific river in south-western China which has ndash until now ndash not been fully developed for hydropower and the plans for addition-al hydropower dams on the river are still undergoing assessments The project has continually stalled due to disagreements between Chinese government officials at all levels NGOs the media the increasingly deregulated but still state-owned Chinese hydropower companies and the scientif-ic community However the project has very recently been reopened and so will go through another round of assessments in the near future The case is an excellent example of the complexity of hydropower develop-ment decisions in China but it also highlights some of the social and environmental conse-quences of the global push to decrease CO2 emissions

China plays and will continue to play an increasingly important role globally in the years to come However the country also fac-es enormous challenges - not least regarding the environment These challenges also affect economies in Western Europe - for better or worse My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective so

that we here in Europe and in Denmark can more knowledgably and actively engage with China to help solve some of these difficult challenges that eventually affect us all In do-ing this I contribute to gain a better under-standing of the Chinese perspective on envi-ronmental sustainability that can be of use to companies wanting to engage in the Chinese renewable energy sector

My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective rdquoldquo

Picture of the case-river taken by the author in 2012

32 CSQ

FROM BLUEPRINT TO PRACTICE

ENERGY EFFICIENT CONSTRUCTION

By postdoc researcher Satu Reijonen Department of Organization CBS

In the EU almost one third of CO2 emis-sions are attributed to energy used in the construction and use of buildings (FIEC

2007) It is therefore not surprising that the construction sector has recently been subjected to a substantial amount of policy measures to combat its negative effects on climate change In Denmark the state has posed new thresholds for the energy efficien-cy of new buildings including a plan for con-tinuous improvement in the area This far the industry has responded well to these stricter performance requirements In the future re-quirements will rise to levels that are not that easily achieved in the coming years build-ings will have to use 25 less energy than in year 2008 How can these ambitious goals become business as usual

One of the most discussed ways besides add-on technologies such as windmills and solar panels to enhance the energy efficiency of a building is through an energy efficient phys-ical design In practice this means reduction of energy used for heating cooling down and lighting of the building through an optimal orientation and dimensioning of the build-ing

Integrated energy design contrary to add-on technologies can be achieved on a rath-er modest additional budget This should be good news for the sector that today is eco-nomically pressed Indeed today many low energy building projects claim to use the in-tegrated energy design method (IED) when seeking to meet the most ambitious energy related goals In this commentary I wish to discuss some challenges related to the imple-mentation of this design tool

The integrated energy design method sug-gests that one of the main problems in not achieving energy efficiency is that energy related concerns become integrated into the design process too late The method consists of two elements the first of which addresses the need to bring in energy related knowl-edge throughout the design process It sug-gests that design teams ought to be multidis-ciplinary and that architects engineers and experts should work together either co-lo-cated or in a series of workshops Further-more it suggests systematizing energy quali-ty follow-ups into the design process This is all very relevant and inspiring

Oddly enough a closer look on the actual design practices reveals that few seem to ac-tually follow the method of integrated energy design to the point This poses an interest-ing question about the challenges related to the use of such management technologies as vehicles for increased energy efficiency in construction Maybe it is about time practi-tioners and researchers ask themselves what are the boundaries of and challenges related to the use of these tools ndash and what else is required for organizing for more energy effi-cient building design processes

A revolution of relations

Integrated energy design points to the need to bring energy related expertise into the de-sign process at an earlier point In order to achieve this cooperative practices between different professional groups are advocated for Historically energy experts have most-ly been used to respond to rather advanced architectural plans Shared workshops and co-localization suggest a change in these business as usual relations But are they pos-sible and what type of changes do they ac-tually imply in order to function as wished

Research

33CSQ

Satu Reijonen is postdoctoral scholar at the Department of Organization at CBS In her on-going research project she investigates how architects and energy engineers two different profes-sions cooperate and coordinate their work regarding energy related ques-tions in construction design The ways in which relations between and roles of these professions become consti-tuted through socio-material arrange-ments are a central topics in her work Besides studies of work Satu has con-ducted research on environmentally friendly products and markets

ABOUT SATU RAIJONEN

The initiation of this type of new working forms is certainly beneficial for energy effi-cient design However for several reasons they are more difficult to make work than one would assume While it may sound rea-sonable it is after all a tall order Integrating energy related practices into an environment where different visions professions and in-terests meet and the divide between what one profession does is clearly and historically demarcated is demanding While architects need to make room for the intervention of energy experts into the creative work energy experts have to become capable of working creatively and relate to and follow the visual and aesthetic cues from architects In order to work these kind of changes in the profes-sional roles and relations have to resonate with the skills and visions of individual work-ers not only management level design strat-egies It is not surprising that organizational change scholars remind us of the possibility of loose coupling from the strategies placed at the management level (March 1981) What integrated energy design suggests is a kind of a revolution in the ways in which both the architects and the energy engineers envision their role and space of mobility

Linear tools in an unlinear design process

Integrated energy design suggests that the energy performance of the emerging build-ing design be followed up at certain points during the design process The method de-picts a rather mechanistic and linear under-standing of a design process consisting of phases within which iteration may occur While energy related issues may be dis-cussed as quality goals during these phases the method places a lot of emphasis on the check ups performed in the transition from one phase to another Design processes how-ever can also be characterized in a different manner unlinear exploratory and whirl wind type of practices where clear cut phases hardly exist (Akrich 1992 Van de Ven et al 1999) This also applies to the architectural design processes where the object of the de-sign is emergent (Yaneva 2009) This entails that the product the building may change in unexpected ways during any day of the de-sign process If this alternative description of the design processes is viable delegating energy related issues to some predetermined check up episodes may strike a false accord and indeed be contradictory with the aim of enhancing coordination and cooperation between professional groups What happens in between the predetermined checkups may very well be where the energy efficiency of the building becomes configured and where the intervention from the energy experts

would come most needed Perhaps this is why the best performing projects do not blindly follow the steps of the IED method Check ups however and no doubt play a role in verifying and making visible the energy performance for partners outside the design team

Integrated energy design as many other sus-tainability standards and guidelines make visible systematize and legitimize the ex-istence of environmental management and sustainability issues in organizations and work processes In this such way tools create awareness and legitimacy for environmental and sustainability issues The integrated en-ergy design method also suggests a possible way of thinking about what type of design practice might help us to achieve the stricter energy requirements of the future It howev-er falls short in becoming the change agent it suggests This is hardly surprising as a meth-od or a standard of any kind should only be seen as a possibility or as an opening for an inquiry of what the practice could be about Reconfiguring a well established practice is hard work and it would be foolish to trust that a design method would achieve it by itself What the method does is to alert us of the more profound changes in the pro-fessional roles and relations that is needed in order to enable the change However the method due to its rather mechanical under-standing of the design process may come to work against its own ambition of integrating energy issues into the design work In its quest for integration the method defines at which points in time the architectural and the engineering project has to be checked for its energy performance This approach may lead to bringing in energy related concerns in some artificially created points in a design process which may additionally compart-mentalize energy related issues from where the design really happens

Integrated energy design as many other sustainability standards and guidelines make visible systematize and legitimize the existence of environmental management and sustainability issues in organizations and work pro-cessesrdquo

ldquoLiteratureAkrich M (1992) The De-Scription of Technical Objects in Shaping Technology Building Society Studies in Soci-otechnical Change eds WE Bijker and J Law The MIT Press Cambridge Massachusetts pp 205-224

FIEC 2007 The impacts of buildings on climate change httpwwwbuildingsplatformeuepbd_publicationdocFIEC_Memo_p2919pdf on 1222008

March JG (1981) Footnotes to Organizational Change Administrative Science Quarterly vol 26 No 4 pp 563-577

Van de Ven A D Polley R Garud and SVenkataraman (1999) The innovation Journey Oxford Oxford Univer-sity Press

Yaneva A (2009) The making of a building A pragmatist approach to Architecture Bern Peter Lang

More about integrated energy design(IED)

httpwwwintendesigncomosloIntendnsfAttachmentsGuideline_Version_2pdf$FILEGuideline_Version_2pdf

34 CSQ

The climate challenge in

shipping

ldquoGlobal shipping faces two major challenges both of which are caused by its reliance on fossil fuelsrdquo

By Reneacute Taudal Poulsen Department of Innovation amp Organizational Economics

RENEacute TAUDAL POULSEN

ASSOCIATE PROFESSOR DEPARTMENT

OF INNOVATION AND ORGANIZATIONAL

ECONOMICS COPENHAGEN BUSINESS

SCHOOL

orecasts show that the shipping indus-tryrsquos CO2 emissions will most likely continue to rise in the next two to

three decades as demand for world sea-borne trade will expand At present global shipping accounts for approximately 33 per cent of global CO2 emissions but this share will most probably increase in the coming years if many onshore industries succeed in their aims of reducing emission levels

At the same time rapidly rising fuel costs put heavy strain on shipping company budg-ets Historically and until very recently fuel costs were only a minor concern for ship-ping companies but now they often exceed 60 per cent of variable operational costs Fuel savings made through energy efficiency improvements thus represent a win-win sce-nario for the shipping industry and for so-ciety at large They simply make good sense for everyone

Despite the strong incentives for fuel sav-ings numerous studies have demonstrated that shipping fails to implement cost-ef-fective measures to reduce fuel consump-tion Fuel-saving technologies are readily available in the market and in many cases pay-back periods are very short (less than a year) Changes in operational habits which require few if any investments also hold a significant potential for fuel savings

Global shipping thus holds several classic examples of energy-efficiency gaps Gaps occur wherever cost-effective measures to improve energy efficiency fail to materialize The causes for energy efficiency gaps have been a favourite research topic within the field of energy economics for decades and economists sociologists and political scien-tists have been able to identify several means to bridge the gaps However within the mar-itime domain energy efficiency gaps and the climate challenge remain neglected issues Legal barriers

Shipsrsquo fuel consumption rises steeply with speed Hence slow-steaming or just minor speed reductions can lower consumption and emission levels significantly Since oil prices started to rise rapidly a few years ago shipping companies have indeed resorted to various slow-steaming practices and com-panies which succeed in this regard have been able to gain competitive advantages In other words actors in the industry are trying to bridge the energy efficiency gap However and in spite of the strong price signals from the rising fuel prices a potential for fuel sav-ing through slow steaming still remains

FNew CBS research project

A new three year research project at CBS under-

taken by Reneacute Taudal Poulsen for the Department

of Innovation and Organizational Economics will

examine the climate issues bringing insights from

energy economics and innovation management

into the field of shipping economics The project

which is financed by The Danish Maritime Fund

runs from 2012 to 2015 The project asks why en-

ergy efficiency gaps continue to occur in shipping

and how shipping companies and the maritime

industry at large can use innovative business

models and process innovation to turn the climate

challenge and the rising fuel costs into a business

opportunity Energy efficiency gaps occur both

in daily operations and when investments in new

vessels are made This article will briefly present

two examples of energy efficiency gaps from

the operational level and some of the preliminary

findings of the project

References

Jaffe AB and RN Stavins 1994 lsquoThe energy efficiency gap What does it meanrsquo Energy Policy 22 (110) 804-10IMO 2009 Second IMO GHG Study 2009 London International Maritime OrganizationMoriarty P amp D Honnery 2012 lsquoEnergy efficiency Lessons from transportrsquo Energy Policy 46 1ndash3Poulsen Reneacute Taudal 2012 lsquoEmissions and energy efficiency - the twin challenges for shippingrsquo Mercator Maritime Innovation Research and Education MarchJune 447-454

Reneacute Taudal Poulsen is Associate Professor at the Department of Innovation and Organizational Eco-nomics at CBS He is also affliated with the Centre for Shipping Economics and Innovation at CBS Reneacute Taudal Poulsen holds a PhD degree in marine environmental history from the University of Southern Denmark and he has worked within the field of maritime business studies for the last seven years He has published in such journals as Fisheries Research Business History and Scandinavian Economic History Review

His current research intersts concern the environmen-tal challenges faced by the global shipping industry and business model innovation in the maritime domain

Research

35CSQ

It is clear that shipping companies cannot fully bridge the energy efficiency gap alone In fact factors beyond the control of in-dividual shipping companies and various structural or legal barriers prevent shipping from fully realizing the slow steaming po-tential

Port congestion remains a world-wide prob-lem and causes ships to spend remarkably long periods inactive Despite the financial crisis and the large drop in shipping freight markets after 2008 many loaded vessels sit at anchor outside ports waiting for berths In some cases they wait for a few hours In other cases for days weeks or even months Instead of waiting the ships could have re-duced speeds and saved fuel And the de-livery and the loading of the cargo in port would not have been delayed in any way However in many cases shipping companies or ship operators cannot reduce speed in spite of port congestion

Educational barriers

Energy efficiency gaps in shipping are also evident when the fuel consumption levels of sister ships are compared Even though the vessels are identical and operate in the same waters studies have shown that their fuel consumption may differ by several Decisions made by the crews onboard and by managers in the onshore organizations clearly influence the level of fuel consump-tion For instance if a captain selects only very small course deviation margins when coding the autopilot of the ship the shiprsquos rudder will move frequently to keep the ship on the exact course all the time This will slow down the ship and cause higher fuel consumption than if the captain had allowed for slightly wider margins and the wider margins would not have any effect on the safety of the ship Decisions made by the commercial depart-ments eg on how to crew the vessels how to monitor vessel fuel consumption or which new equipment to install onboard may also

have a large impact on fuel efficiency and emission levels If shipping company man-agers can nurture a fuel saving culture this could potentially make a difference Since 2007 or 2008 shipping companies have in-deed started to facilitate such organizational changes but educational barriers remain a problemOnshore truck drivers are now offered fuel saving courses but fuel-saving is not a major part of the traditional curriculum in nautical schools or in the commercial education of shipping trainees For good reasons the nau-tical educations have focused on maritime safety but this has caused them to neglect the climate challenge in shipping and the is-sue of fuel saving In fact no single nauticaltext book on maritime fuel savings has yet been published and according to teachers and students in the nautical schools this serves as an educational barrier to ener-gy-efficiency improvements The technical level of education for commercial employees in shipping companies may also hinder im-provements in energy-efficiency Some com-

mercial shipping employees may not have sufficient training to fully see and acknowl-edge the consequences of their decisions on fuel consumption In short it seems that fuel awareness and the educational systems have responded more slowly to the climate chal-lenge than the rise in fuel prices may other-wise suggest

For shipping to bridge energy-efficiency gaps education ndash both nautical and com-mercial ones ndash clearly is an area to set in Here the potential for innovative solutions is both evident and pertinent Changing educational systems and awareness is no easy task bearing in mind the global nature of the shipping industry and international crewing of the world fleet It is clear howev-er that educational upgrading is necessary for shipping to effectively address the cli-mate challenge effectively

Charter parties between ship-operators and shippers state a specific time of arrival for the vessel and in order to avoid claims ships proceed to port accordingly regardless of berth availability Experiments with new more flexible charter parties which allow for slow steaming in case of port congestion have recently been made Shipping compa-nies have generally been enthusiastic about this flexibility but often shippers remain skeptical Lack of trust between shippers which need the loading of their cargoes as soon as possible and shipping companies may be a cause for this discrepancy Even in cases where the savings made from slow-steaming are split between shipping companies and shippers shippers have re-mained skeptical Port queuing systems may have a role to play here

Many ports including some of the major container iron ore coal and grain ports serve ships on ldquofirst-come first-servedrdquo ba-sis Ships only receive their ldquoticketrdquo in the

waiting line upon their arrival at the port Again lack of trust between the ship-oper-ators shippers and the port authorities may explain this phenomenon Moreover port authorities currently do not have incentives to change queuing practices because they cannot gain a share in the fuel savings made from slow-steaming

The problem is particularly strong in the major tramp shipping segments of tanker and dry cargo shipping where vessels act as ldquotaxis of the seardquo serving numerous shippers and rarely calling at the same ports If the fleet from a shipping company only calls at a particular port once a year and the compa-ny has very short-term relations to individ-ual shippers building trustful relationships between the parties remains a major chal-lenge Solving this problem and realizing the full potential of slow steaming will require systemic innovation in shipping and port systems and further studies are required to identify possible solutions

36 CSQ

The Wind turbine industry -

Emerging global innovation networks in Europe and China

The wind turbine industry has developed into a global network encompassing a large amount of diverse actors within innovation production and installation of wind turbines across the globe

By Stine Haakonsson and Julia Kirch Hollitsch Department of Business amp Politics CBS

market for wind energy Chinese actors have turned China as a location into another im-portant lsquohubrsquo in this network This has led to new forms of innovation collaborations between European and Chinese actors The result has been a complete re-configuration of the industry over the past decade In the International Business and Economic Geog-raphy literatures the development of global production networks in which lead-firms be-come orchestrators of dispersed production

enmark has traditionally played a key role as an lsquoinnovation hubrsquo and com-

panies in Denmark remain among the lead firms within the wind turbine industry Re-cently the industry has reorganized from being located predominantly in the Triad regions (mainly in Europe and the US) to becoming a globally dispersed industry This development can partly be explained by de-velopments in international and national politics Due to the growth of the Chinese

activities in globalized value chains is well established theoretically as well as empiri-cally In the globalization process lead firms relocate production activities to low cost lo-cations by off-shoring and through vertical disintegration and outsourcing to specialized suppliers Producers of wind turbines are no exception However until recently the mar-ket and innovation activities remained con-centrated in Europe and US

With the recent focus on global politics for a post-carbon society the market for wind tur-bines has experienced an immense growth and a high degree of market globalization New locations have developed into main markets One of these is China which since 2010 has been the largest market for wind turbines in the world (in capacity installed) The globalization process in the wind tur-bine can be explained by a combination of offshoring of production by European lead firms mainly through foreign direct invest-ment and establishment of domestic lead firms in emerging markets In 2010 there were four Chinese-owned companies among the top-10 producers of wind turbines as compared to 2003 where all firms on this list were from Europe and the US

D

Julia Kirch Hollitsch

Stine Haakonsson

Stine Haakonsson and Julia Kirch Hollitsch from Depart-

ment of Business and Politics CBS are engaged in the

Sino-Danish Center for Research and Education (SDC)

project on Wind Energy in China Both research on the

current restructuring of industries and firms at the glob-

al level (outsourcing off shoring global value chains)

In particular their research is on 1) the restructuring of

innovation and RampD activities into global innovation net-

works(GINs)2)thechangingroleofemergingmarkets

(ChinaIndiaBrazilSouthAfrica)intheseemergingGINs

and 3) technology transfer and capability building related

to renewable energy

Research

37CSQ

by adapting their products to the Chinese market and through cost-out development activities in the new locations primarily China

As a result the wind industry is today highly knowledge-intensive and internationalized Due to increased attention and investments in sustainable transition policies and car-bon-reducing technology China has over the past decade developed into a high prior-ity investment area for wind turbines Also Chinese companies are upgrading technol-ogy and innovation from the global firms through integration into GINs Moreover the production and innovation networks for wind energy become highly complex and consist of many different suppliers of com-ponents (blades gear boxes control systems bearings) resulting in a variety of network linkages among suppliers of different com-ponents and the wind turbine producers

From our empirical data including more than 40 in-depth interviews collected in 2011 and 2012 in the wind turbines indus-tries in China and Denmark we have identi-fied some very interesting patterns We have identified very different characteristics of the GINs established by the Chinese wind tur-bine industry and the European wind tur

Emerging Global Innovation Networks

Innovation processes are also moving be-yond the boundaries of individual compa-nies and national innovation systems Firms engage in cross-border innovation networks spanning different innovation systems which may be national regional or sectorial in or-der to stay competitive in the global econ-omy Chinese lead firms are entering this scene too The result is globally organized networks of interconnected and integrated functions and operations by firms and non-firm organizations engaged in the develop-ment and diffusion of innovations so-called Global Innovation Networks (GINs) Lead firms internationalize innovation through strategies of exploitation global generation of innovation and global techno-scientific collaborations Chinese wind turbine pro-ducers ndash acknowledging their resource and capability deficiency ndash pursue strategies of innovation network integration through strategies of global generation of innovation These firms link up with specialized Europe-an actors such as core component suppliers through partnerships and networks in or-der to tap into the technology of firms from developed countries and upgrade Mean-while European companies internationalize through exploitation strategies for example

bine industry Although Danish and Chinese actors are experiencing a re-organization of activities and establish networks and globa-linnovation strategies the result is very dif-ferent

The industry from Europe and US

The industry from Europe and the US hosts the lead firms in terms of core technology de-velopment Denmark has traditionally played a key role as lsquoinnovation hubrsquo in technology development and global lead firms such as Vestas and Siemens Windpower (previously Danish lsquoBonusrsquo) took its start already in the 1970s The core competences of the Danish wind turbine innovation system are based on large testing facilities and long track records mainly due to the long time-line of experi-ence The wind industry goes 40 years back and therefore Denmark has a good knowl-edge pool within establishing wind farms (aerodynamics minimizing power loss in energy transmission wind mapping and other installation-related technologies)

38 CSQ

that will make it possible to finance the pro-jects ldquoFrom then on our wind turbine pro-jects developed very fastrdquo(Interview Wind Engineer Chinese Academy of Sciences) Thus this law was a milestone for elevating renewables to a strategic position in China or as expressed by a European lead-firm ldquoWhat drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick offrdquo

Until the turn of the millennium Chinarsquos wind energy industry was largely built on donors acquisition of finished wind turbines and licensed technology from European companies spread on a very small scale into the local industry during the mid 1990s Chi-nese wind turbine technology has evolved from imitation reverse engineering and licensing in the 1980-90s combined with assistance from foreign consultants One example is how DANIDA funded a project in 1986 for Goldwind in Xinjiang which imported 13 units of 150 kW lsquoBonusrsquo (now Siemens Wind Power) turbines

To get beyond the stage of pure imitation several policies have been introduced with the intent to upgrade Chinese manufacturers to obtain indigenous innovative capabilities Policy programs were introduced to enhance Chinese companies to develop wind energy subsidizing wind energy RampD expenditures at varied levels over time establishing a re-newable energy fund and through the ldquo863 Wind Programrdquo under the Tenth Five-Year Plan (2001-2005) Local content require-ments were put in place in which develop-ers of wind energy projects were required to source 70 pct of the content in China These policies ndash which essentially forced foreign manufacturers wishing to sell wind turbines to the Chinese market to establish China-based manufacturing facilities ndash were only removed recently (in 2009) One result was that the foreign companies had to up-grade local suppliers of components

Due to the technological complexity many European (and hereby also the Danish) firms are vertically integrated and have most com-ponents produced in-house or with regular specialized suppliers According to these companies the different parts need to be well adjusted to each other to some extent even co-developed in order to enhance effi-ciency and the lifetime of the wind turbine Likewise the European industry has expe-rienced a concentration of actors with the result that there are only relatively few but large manufacturers in Europe (the larg-est ones are Vestas Siemens Gamesa and Enercon) Together these four companies accounted for about 35 of the global mar-ket in 2010 By seeing the wind turbine as an integrated system these lead firms aim at producing lsquothe Rolls Roycersquo model wind turbines These are strong in terms of qual-ity and standards but generally expensive These firms learn cost-out techniques from their engagement with partners in China

The Chinese Wind Turbine Industry

Today the Chinese wind turbine industry is overly competitive It entails more than 80 wind turbine manufacturers and the Chi-nese market boasts the highest growth rates internationally with an average growth rate of 968 percentages annually in the last three years Several large domestic Chinese wind turbine manufacturers have emerged within the last decade Sinovel and Goldwind take the largest share followed by United Pow-er and Ming Yang just to mention some of them As of the end of 2010 these four were A major driver for the development of the Chinese wind energy market has been the establishment of an institutional context as a comprehensive concerted policy frame-work addressing the development of renewa-ble energies This change in the institutional context was first reflected clearly in the 11th 5-year-plan (2006-2010) which explicitly linked environmental sustainability to the key goal of establishing what was called a harmonious socialist society signalling a socially environmentally and economically sustainable economy With the Renewable Energy Law from 2005 the Chinese wind energy industry really took off as it explicitly seeks to ensure that renewable energy pro-jects have an outlet for their output at prices

Technical barriers and the role of GINs for a post-carbon society

Despite high ambitions in terms of devel-oping innovative capabilities Chinese pro-ducers still produce almost exclusively for the Chinese market However Chinese wind turbine manufacturers have recently started an internationalisation process and some are approaching international markets Not least for tapping into new knowledge

Europe (and Denmark in particular) is per-ceived as a main location from which the Chinese companies can learn more A cou-ple of Chinese companies have already set up RampD centres in Denmark European firms have also initiated RampD centres in new lo-cations primarily China and India In other words GINs can be identified

Our research also points towards important barriers for GINs in the wind turbine in-dustry and for approaching a post-carbon global society Most importantly are the technological barriers intellectual property rights quality issues and issues of limited appropriability of knowledge Further the institutional framework remain relevant for displaying how the sector and the emerging GINs are embedded institutionally socially and technologically Whether actors trans-act knowledge technology and know-how through cooperative innovation activities also depends on how core the technology of a given technology is Still as the market grows in China it seems to have matured in Europe because of changing policies on re-newable energy To sustain the position as a global lsquohubrsquo and world leader in wind tech-nologies there is a strong need for support in Europe as this research really shows how fast the Chinese industry is moving One major result is how important networks are for upgrading companies and it seems that Chinese firms perform better in network strategies and manage to tap into relevant knowledge than the European firms

What drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick off rdquoldquoInterview Wind Engineer Chinese Academy of Sciences

39CSQ

Social Enterprise World

ForumNadine Koumlcher from 180Degrees recounts her experience from the

conference on

Rio de Janeiro Brazil 2012

In the numerous panel debates and parallel track discussion it became clear that Impact Investment is a hot topic among both social entrepreneurs and impact investors a diverse group consisting of corporations founda-tions and potential donors However various obstacles impede a harmonious relationship between the twoSocial enterprises face structural challenges to make themselves more appealing to im-pact investors They have to become more transparent and increase their accountability This includes improving their impact assess-ment and reporting tools However despite much discussion no consensus could be formed on how to optimally conduct im-pact assessment One of the most frequently proposed methodologies involves the use

From the 16th to the 18th of October the CBS Sustainability Platform granted me the opportunity to attend the 5th Social Enter-prise World Forum which took place in Rio de Janeiro Brazil This yearly international conference focuses on social enterprises and their effectiveness in solving social challeng-es The overall theme of the 2012 conference hosted by NESsT was ldquoSocial Enterprise Investing for Impactrdquo Thus for three days over 180 speakers and 650 delegates from 30 different countries shared their experiences regarding impact investment and discussed possibilities to attract new investment by both the public and the private sector for so-cial enterprises

of control groups Story-telling has also been men-tioned to be a powerful tool to provide investors with a proof of outcomesSocial investors are willing to accept returns just below the market rate in exchange for a social return However large profits are still expect-ed and many social enter-prises are afraid of being unable to generate them Social enterprises typically operate on a small scale and are not used to undertake large projects with huge sums of investment given to them Many are too small for social investors to be

attractive as costs are similar for small and large investments although larger invest-ments have a higher payoff

Nichole Echert the CEO of NESsT there-fore pointed out that it is necessary to align expectations between impact investors and social entrepreneurs and to be patient in establishing a relationship between the two groups The expected financial return has to be reasonable close to covering the costs of operation and social returns have to be re-ported to investors by use of clearer criteria

By Nadine Koumlcher Director of Branch Development180 Degrees Consulting Limited

ldquoSocial Enterprise Investing for Impactrdquo

Students

40 CSQ

A highlight of the con-ference was definitely the site visit to a social enterprise project in a recently pacified fave-la It brought further insights on the great variety of social enter-prises that exist in Bra-zil and their missions and struggles We visit-ed a community center at which Comitecirc para

Democratizaccedilao da Informaacutetica (CDI) uses technology to fight poverty and to stimulate entrepreneurship CDI has formed a corpo-rate partnership with Coca Cola which in the same building teaches young locals how to write a CV and find a job Talking to the young locals at the center it became apparent that an increased self-confidence and the in-spiration they get from meeting former now employed participants of the project (eg at Coca Cola) is what they valued most of being part of the class

Participating at the conference was definite-ly a unique and valuable experience I would not want to miss as I tremendously improved my knowledge in the field of social enter-prises through attending the numerous pres-entations and discussions and further met so many inspiring social entrepreneurs impact

In addition it has been stressed that the problem is not a shortage of investment capital (even though the government could promote more impact investment by for instance granting tax breaks) but how to deploy it Social entrepreneurs also have to be aware of the different advantages and dis-advantages of the various types of capital It has to fit their process of establishment and it has therefore been suggested that funds and grants are most optimal in the start-up phase to cover such costs as capacity train-ing There is generally a lack of this early stage financial support Following the initial phase strategic philanthropy money would be most appropriate before impact and final-ly equity investment is sought Furthermore new ways of investment which fit the social enterprise world have to be created replac-ing the current situation of trying to fit social enterprises into the current financial world

investors and students with a genuine inter-est in the field

Participating at the conference was definitely a unique and valuable experience rdquo

ldquo

Social Enterprise World Forum 2013 in

Calgary Canada

The TRICO Charitable Foundation in part-nership with the Social Enterprise Council of Canada and the Social Finance Forum has been selected to host the 6th Annual Social Enterprise World Forum SEWF 2013 will take place October 2-4 2013 in Calgary Al-berta The Forum will present the Canadian social enterprise movement with opportuni-ties to engage learn and share on the inter-national stage

SEWF 2013 will be a gathering of over 1000 Canadian and international delegates who are involved in the social enterprise move-ment where the blending of social and fi-nancial values is core to business Attendees will consist of practitioners (from all sec-tors) funders investors supporters elected officials and public servants from around the world

Nadine Koumlcher

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 26: CBS Sustainability Quarterly 2013 #1

26 CSQ

SBN is a ldquobreeding groundrdquo and ldquoknowledge centerrdquo for the biofu-els industry where synergies are created between all parties within

the biofuels sector SBN focuses in promoting supporting and enabling the commercial development and use of clean and sustainable biofuels for Heavy Road Transportation Shipping and Aviation Emphasis is put on the importance of global standards for biofuels with local as well as international institutions and decision makers to encourage con-

structive guidelines and rules for the development of biofuels SBN adheres to EUrsquos sustainability criteria SBN is a non-profit asso-

ciation established in 2008 Visit their website for more info at wwwsustainablebiofulsdk

Sustainable Biofuels Network(SBN)

The Biorefining Alliance (BA) was founded December 2011 by DONG Energy Novozymes Haldor Topsoslashe and the

Danish Agriculture and Food Council and is a three-year project to politically promote Denmarkrsquos position in the entire value chain from residues to bio-based products The Alliance has set forth a number of recommendations to achieve a sustainable Danish bio-economy Among other these include (i) that all organic

waste be considered a resource (high-value recycling and storable energy) (ii) reducing the cost of manufacturing 2G

bioethanol and (iii) contemplating the establishment of a national center for sustainable materials

Biorefining Alliance

second generation biofuels I would get started right awayrdquo says Robert Arendal The Biorefining Alliance is working on lowering the costs and recommends a stronger regulatory framework with binding targets as it has been done for the wind industry ldquoThere already is a market for first generation biodiesel which is the least sustainable biofuel We need to make a market for second generation biofuels and we know that binding targets work I donrsquot think it is possible to create a market for the lsquogreen consumerrsquo as you have one for organic food products but I believe that a niche market for HRT (Heavy Road Transport red) such as public bus transport could be a supplementrdquo concludes Anne Grete Holmsgaard

How the future for sustainable biofuels will shape depends on political will to create a market for second generation and the ability of private sector to innovate and bring prices down Oil production is claimed by some to already have peaked and exploring new geographical areas for extraction could be as costly as kick-starting the market for second generation biofuels although much less sustainable As the American ecologist and environmentalist Bill McKibben wrote in his book ldquoDeep Economyrdquo back in 2007

Even before we run out of oil wersquore running out of planetrdquoldquo Bill McKibben

27CSQ

The Transparency-Sustainability NexusA workshop on the practices meanings and tensions of organiza-

tional transparency

n December 5 2012 the Department of Intercultural Communication and Management (ICM) hosted an in-

ternational workshop supported by CBS Sustainability Plat-form and ICM The workshop was organized by Oana Brindusa Albu Mikkel Flyverbom and Hans Krause Hansen respectively PhD Fellow and Associate Professors at ICM The idea of the workshop was spurred by the observation that while ideals of transparency like lsquoopennessrsquo lsquodisclosurersquo and lsquoreportingrsquo are pro-liferating these years the actual construction of transparency within and across organizations is poorly understood Most re-search on transparency is highly normative if not celebratory just as popular discourse about transparency not least in the areas of sustainability and corporate social responsibility is obsessed with ideals of accountability performance and effi-ciency and pervaded by an optimism currently pushed to its extreme with the explosion of new media technologies

But the truth is that we generally know very little about the implications of ideals of transparency when translated into practice in specific issue areas and organizational contexts Importantly each of the contributions to this workshop clear-ly suggested that the contemporary politics of transparency is much more complex contradictory and dynamic than tradi-tionally recognized All papers examined various aspects of the contemporary obsession with transparency and specifically the increasing use of disclosure techniques within and around or-ganizations the rationales or myths underpinning these meas-ures their intended and unintended consequences including implications for identity-making management and govern-ance practices

Clare Birchall initiated the workshop with a paper titled lsquoThe Cultural Politics of Disclosurersquo highlighting how transparency has been positioned as a superior form of disclosure in popular management and organizational literatures and in policy docu-ments In her account the growing preference for transparency is a consequence not only of the positive qualities seen to be intrinsic to transparency itself but also a response to the per-ceived negative characteristics of other forms of disclosure such as gossip scandal and rumor Lars Thoslashger Christensen (with co-author Joep Cornelissen) then analyzed transparency as one of the foundational myths of modernity myths understood here as descriptions of the world in a narrative form which seeks to produce meaning and direction for a community and its members Such lsquoMyths of Transparencyrsquo sustain numerous organizational practices ndash including openness information provision and auditing But as argued by the authors there are conflicting evidence regarding the capacity of such practices to create insights and understandingThat aspirations and techniques of transparency can have seri-ous repercussions was demonstrated by Peter Skaeligrbaeligk (with co-author Mark Christensen) in the paper entitled lsquoAuditing and the purification of blamersquo which analyzed how auditing auditing practices and institutional entities including the po-liticized environments surrounding them are mobilized and participate in blame games and allocation In his paper titled lsquoQuantification transparency and the costs of reassurancersquo Henrik Vollmer analyzed various dimensions of the role of nu-merical records and signaling in generating transparency trust and mistrust

By Hans Krause Hansen Department of Intercultural Communication amp Management

Event

O

28 CSQ

Some of these aspects were also touched upon in the paper lsquoDisrupted Disclosures The Politics of Visibility and Surveil-lance in the Extractive Industriesrsquo by Hans Krause Hansen (with co-author Julie Uldam) which explored the wider field of visibility and surveillance in which contemporary transpar-ency policies are unfolding with examples from the extractive industries Oana Brindusa Albu in her lsquoTransparency and the organizational self everyday politics of identification in Cooperativesrsquo examined the paradoxical effects of values and practices of transparency on collective identity formation pro-cesses drawing upon her ongoing multi-sited fieldwork in co-operatives Under the heading of lsquoThe Improbability of Secrecyrsquo Mark Fenster analyzed the intersections of secrecy and trans-parency with examples from the US government and its efforts to control information which according to the author does not necessarily stop the flow of information Finally Mikkel Fly-verbom and Christina Garsten examined lsquoThe sway of (big) data ndash calculations and advocacy in the name of transparencyrsquo focusing on the operations of data-based forms of corporate lsquotransparency evangelismrsquo and advocacy through revelation including examples from Center for Global Development and Google

In all the workshop was highly successful in investigating not only the historical and mythical foundations of transparency but also the different practices and forms of transparency that currently shape organizations and a wide variety of issue areas It also provided a reminder of the usefulness of investigating a concept of transparency in relationship to a host of other con-cepts such as secrecy myth gossip blame surveillance visi-bility identity information and knowledge The organizers of the workshop wish to thank all workshop participants for their valuable contributions and the CBS Sustainability Platform and ICM for their support

Hans Krause Hansen

Mikkel Flyverbom

Oana Brindusa Albu

ASSOCIATE PROFESSORPHD (ICM)

ASSOCIATE PROFESSORPHD (ICM)

PHD FELLOW (ICM)

29CSQ

Louise Lyngfeldt Gorm Hansen is a PhD Fellow at the Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) She has a back-ground in Chinese Studies from Copenhagen University (BA) the Asian Studies Program at CBS (BSc) and in International Business Stud-ies and Sustainable Business (MSc) from CBS

The aim of her cross-disciplinary PhD project is to explore how the Chinese hydropower sector works with environmental sustainability and more particularly how the concept is understood and performed in the planning phase of a major dam project in the southwestern Chinese province of Yunnan

The aim of the project is to gain a deeper under-standing of how Chinese firms in the renewable energy sector such as hydropower companies understand and value sustainability as well as how such firms tackle the increasing pressure to deliver socially and environmentally balanced solutions to one of Chinarsquos major challenges lowering CO2 emissions in a time with rapidly rising water and energy demands Theoretically the project draws on - and aims to contribute to ndash a combination of Asian Studies and Science and Technology Studies

PHD FocusLouise Lyngfeldt Gorm Hansen

HYDROPOWER

SUSTAINABILITY

30 CSQ

HYDROPOWER

SUSTAINABILITY IN

CHINAy PhD project combines two of my main research interests China and

environmental sustainability I have studied China for a number of years mainly because of an interest in how the Chinese view sus-tainable development So since finishing my masters I have known that I wanted to study how China plan to tackle a sustainable tran-sition in the years to come I saw my chance when CBS announced PhD scholarships in

DanishEuropean-Chinese social science research in collaboration with the newly es-tablished Sino-Danish Center for Education and Research (SDC) and started my PhD in October 2011My PhD project focuses on the Chinese energy sector more specifically the rapidly growing part of the energy sector engaged in renewable energy Here I examine Chinarsquos second largest source of electricity gene-

eration hydropower In recent years China has become increasingly focused on reduc-ing CO2 emissions While some countries such as the US and Australia are decommis-sioning hydropower dams China is looking to large-scale hydropower construction as one of the solutions to a future clean energy supply This means that hydropower devel-opment plays a central role in Chinarsquos sus-tainable transition

However utilization of hydropower is con-troversial not least in China and has met increasing resistance in recent years particu-larly from Chinese and international NGOs the media as well as the scientific commu-nity Critique is most often focused on how or if social and environmental sustainability can be ensured in such large scale projects as the social and environmental impacts of large scale hydropower development are very complex and difficult to measure More gen-erally the viability of relying on hydropow-er as a future source of energy is also being questioned One of the major concerns here is the overarching issue of climate change ie glaciers shrinking and yearly water runoff decreasing This means less stable water flow for hydropower and less water for other pur-poses such as agriculture water supply for down-stream countries etc

By Louise Lyngfeldt Gorm Hansen Asia Research Centre Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) ndash sinodanishcenterdk

M

Picture from SinoHydro promotion material 2011

Research

31CSQ

In contrast to for example the wind power sector in China in which many foreign com-panies have invested the hydropower sector is dominated by a few large state-owned en-terprises Our knowledge of Chinese state-owned enterprises is still limited and there-fore my PhD project is also part of a larger research project at the Asia Research Centre with focus on Chinese state-owned enter-prises and the reform of the public sector in China

In combining these interests my PhD exam-ines how Chinese state-owned enterprises in the hydropower sector tackle the demand to expand hydropower development to help reduce Chinarsquos CO2 emissions while be-ing under increasing pressure to deliver on sustainability principles in the planning and execution of large scale hydropower pro-jects The pressure comes mainly from NGO organizations the media and the scientific community both at home and from abroad I am conducting a case study focused on a specific river in south-western China which has ndash until now ndash not been fully developed for hydropower and the plans for addition-al hydropower dams on the river are still undergoing assessments The project has continually stalled due to disagreements between Chinese government officials at all levels NGOs the media the increasingly deregulated but still state-owned Chinese hydropower companies and the scientif-ic community However the project has very recently been reopened and so will go through another round of assessments in the near future The case is an excellent example of the complexity of hydropower develop-ment decisions in China but it also highlights some of the social and environmental conse-quences of the global push to decrease CO2 emissions

China plays and will continue to play an increasingly important role globally in the years to come However the country also fac-es enormous challenges - not least regarding the environment These challenges also affect economies in Western Europe - for better or worse My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective so

that we here in Europe and in Denmark can more knowledgably and actively engage with China to help solve some of these difficult challenges that eventually affect us all In do-ing this I contribute to gain a better under-standing of the Chinese perspective on envi-ronmental sustainability that can be of use to companies wanting to engage in the Chinese renewable energy sector

My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective rdquoldquo

Picture of the case-river taken by the author in 2012

32 CSQ

FROM BLUEPRINT TO PRACTICE

ENERGY EFFICIENT CONSTRUCTION

By postdoc researcher Satu Reijonen Department of Organization CBS

In the EU almost one third of CO2 emis-sions are attributed to energy used in the construction and use of buildings (FIEC

2007) It is therefore not surprising that the construction sector has recently been subjected to a substantial amount of policy measures to combat its negative effects on climate change In Denmark the state has posed new thresholds for the energy efficien-cy of new buildings including a plan for con-tinuous improvement in the area This far the industry has responded well to these stricter performance requirements In the future re-quirements will rise to levels that are not that easily achieved in the coming years build-ings will have to use 25 less energy than in year 2008 How can these ambitious goals become business as usual

One of the most discussed ways besides add-on technologies such as windmills and solar panels to enhance the energy efficiency of a building is through an energy efficient phys-ical design In practice this means reduction of energy used for heating cooling down and lighting of the building through an optimal orientation and dimensioning of the build-ing

Integrated energy design contrary to add-on technologies can be achieved on a rath-er modest additional budget This should be good news for the sector that today is eco-nomically pressed Indeed today many low energy building projects claim to use the in-tegrated energy design method (IED) when seeking to meet the most ambitious energy related goals In this commentary I wish to discuss some challenges related to the imple-mentation of this design tool

The integrated energy design method sug-gests that one of the main problems in not achieving energy efficiency is that energy related concerns become integrated into the design process too late The method consists of two elements the first of which addresses the need to bring in energy related knowl-edge throughout the design process It sug-gests that design teams ought to be multidis-ciplinary and that architects engineers and experts should work together either co-lo-cated or in a series of workshops Further-more it suggests systematizing energy quali-ty follow-ups into the design process This is all very relevant and inspiring

Oddly enough a closer look on the actual design practices reveals that few seem to ac-tually follow the method of integrated energy design to the point This poses an interest-ing question about the challenges related to the use of such management technologies as vehicles for increased energy efficiency in construction Maybe it is about time practi-tioners and researchers ask themselves what are the boundaries of and challenges related to the use of these tools ndash and what else is required for organizing for more energy effi-cient building design processes

A revolution of relations

Integrated energy design points to the need to bring energy related expertise into the de-sign process at an earlier point In order to achieve this cooperative practices between different professional groups are advocated for Historically energy experts have most-ly been used to respond to rather advanced architectural plans Shared workshops and co-localization suggest a change in these business as usual relations But are they pos-sible and what type of changes do they ac-tually imply in order to function as wished

Research

33CSQ

Satu Reijonen is postdoctoral scholar at the Department of Organization at CBS In her on-going research project she investigates how architects and energy engineers two different profes-sions cooperate and coordinate their work regarding energy related ques-tions in construction design The ways in which relations between and roles of these professions become consti-tuted through socio-material arrange-ments are a central topics in her work Besides studies of work Satu has con-ducted research on environmentally friendly products and markets

ABOUT SATU RAIJONEN

The initiation of this type of new working forms is certainly beneficial for energy effi-cient design However for several reasons they are more difficult to make work than one would assume While it may sound rea-sonable it is after all a tall order Integrating energy related practices into an environment where different visions professions and in-terests meet and the divide between what one profession does is clearly and historically demarcated is demanding While architects need to make room for the intervention of energy experts into the creative work energy experts have to become capable of working creatively and relate to and follow the visual and aesthetic cues from architects In order to work these kind of changes in the profes-sional roles and relations have to resonate with the skills and visions of individual work-ers not only management level design strat-egies It is not surprising that organizational change scholars remind us of the possibility of loose coupling from the strategies placed at the management level (March 1981) What integrated energy design suggests is a kind of a revolution in the ways in which both the architects and the energy engineers envision their role and space of mobility

Linear tools in an unlinear design process

Integrated energy design suggests that the energy performance of the emerging build-ing design be followed up at certain points during the design process The method de-picts a rather mechanistic and linear under-standing of a design process consisting of phases within which iteration may occur While energy related issues may be dis-cussed as quality goals during these phases the method places a lot of emphasis on the check ups performed in the transition from one phase to another Design processes how-ever can also be characterized in a different manner unlinear exploratory and whirl wind type of practices where clear cut phases hardly exist (Akrich 1992 Van de Ven et al 1999) This also applies to the architectural design processes where the object of the de-sign is emergent (Yaneva 2009) This entails that the product the building may change in unexpected ways during any day of the de-sign process If this alternative description of the design processes is viable delegating energy related issues to some predetermined check up episodes may strike a false accord and indeed be contradictory with the aim of enhancing coordination and cooperation between professional groups What happens in between the predetermined checkups may very well be where the energy efficiency of the building becomes configured and where the intervention from the energy experts

would come most needed Perhaps this is why the best performing projects do not blindly follow the steps of the IED method Check ups however and no doubt play a role in verifying and making visible the energy performance for partners outside the design team

Integrated energy design as many other sus-tainability standards and guidelines make visible systematize and legitimize the ex-istence of environmental management and sustainability issues in organizations and work processes In this such way tools create awareness and legitimacy for environmental and sustainability issues The integrated en-ergy design method also suggests a possible way of thinking about what type of design practice might help us to achieve the stricter energy requirements of the future It howev-er falls short in becoming the change agent it suggests This is hardly surprising as a meth-od or a standard of any kind should only be seen as a possibility or as an opening for an inquiry of what the practice could be about Reconfiguring a well established practice is hard work and it would be foolish to trust that a design method would achieve it by itself What the method does is to alert us of the more profound changes in the pro-fessional roles and relations that is needed in order to enable the change However the method due to its rather mechanical under-standing of the design process may come to work against its own ambition of integrating energy issues into the design work In its quest for integration the method defines at which points in time the architectural and the engineering project has to be checked for its energy performance This approach may lead to bringing in energy related concerns in some artificially created points in a design process which may additionally compart-mentalize energy related issues from where the design really happens

Integrated energy design as many other sustainability standards and guidelines make visible systematize and legitimize the existence of environmental management and sustainability issues in organizations and work pro-cessesrdquo

ldquoLiteratureAkrich M (1992) The De-Scription of Technical Objects in Shaping Technology Building Society Studies in Soci-otechnical Change eds WE Bijker and J Law The MIT Press Cambridge Massachusetts pp 205-224

FIEC 2007 The impacts of buildings on climate change httpwwwbuildingsplatformeuepbd_publicationdocFIEC_Memo_p2919pdf on 1222008

March JG (1981) Footnotes to Organizational Change Administrative Science Quarterly vol 26 No 4 pp 563-577

Van de Ven A D Polley R Garud and SVenkataraman (1999) The innovation Journey Oxford Oxford Univer-sity Press

Yaneva A (2009) The making of a building A pragmatist approach to Architecture Bern Peter Lang

More about integrated energy design(IED)

httpwwwintendesigncomosloIntendnsfAttachmentsGuideline_Version_2pdf$FILEGuideline_Version_2pdf

34 CSQ

The climate challenge in

shipping

ldquoGlobal shipping faces two major challenges both of which are caused by its reliance on fossil fuelsrdquo

By Reneacute Taudal Poulsen Department of Innovation amp Organizational Economics

RENEacute TAUDAL POULSEN

ASSOCIATE PROFESSOR DEPARTMENT

OF INNOVATION AND ORGANIZATIONAL

ECONOMICS COPENHAGEN BUSINESS

SCHOOL

orecasts show that the shipping indus-tryrsquos CO2 emissions will most likely continue to rise in the next two to

three decades as demand for world sea-borne trade will expand At present global shipping accounts for approximately 33 per cent of global CO2 emissions but this share will most probably increase in the coming years if many onshore industries succeed in their aims of reducing emission levels

At the same time rapidly rising fuel costs put heavy strain on shipping company budg-ets Historically and until very recently fuel costs were only a minor concern for ship-ping companies but now they often exceed 60 per cent of variable operational costs Fuel savings made through energy efficiency improvements thus represent a win-win sce-nario for the shipping industry and for so-ciety at large They simply make good sense for everyone

Despite the strong incentives for fuel sav-ings numerous studies have demonstrated that shipping fails to implement cost-ef-fective measures to reduce fuel consump-tion Fuel-saving technologies are readily available in the market and in many cases pay-back periods are very short (less than a year) Changes in operational habits which require few if any investments also hold a significant potential for fuel savings

Global shipping thus holds several classic examples of energy-efficiency gaps Gaps occur wherever cost-effective measures to improve energy efficiency fail to materialize The causes for energy efficiency gaps have been a favourite research topic within the field of energy economics for decades and economists sociologists and political scien-tists have been able to identify several means to bridge the gaps However within the mar-itime domain energy efficiency gaps and the climate challenge remain neglected issues Legal barriers

Shipsrsquo fuel consumption rises steeply with speed Hence slow-steaming or just minor speed reductions can lower consumption and emission levels significantly Since oil prices started to rise rapidly a few years ago shipping companies have indeed resorted to various slow-steaming practices and com-panies which succeed in this regard have been able to gain competitive advantages In other words actors in the industry are trying to bridge the energy efficiency gap However and in spite of the strong price signals from the rising fuel prices a potential for fuel sav-ing through slow steaming still remains

FNew CBS research project

A new three year research project at CBS under-

taken by Reneacute Taudal Poulsen for the Department

of Innovation and Organizational Economics will

examine the climate issues bringing insights from

energy economics and innovation management

into the field of shipping economics The project

which is financed by The Danish Maritime Fund

runs from 2012 to 2015 The project asks why en-

ergy efficiency gaps continue to occur in shipping

and how shipping companies and the maritime

industry at large can use innovative business

models and process innovation to turn the climate

challenge and the rising fuel costs into a business

opportunity Energy efficiency gaps occur both

in daily operations and when investments in new

vessels are made This article will briefly present

two examples of energy efficiency gaps from

the operational level and some of the preliminary

findings of the project

References

Jaffe AB and RN Stavins 1994 lsquoThe energy efficiency gap What does it meanrsquo Energy Policy 22 (110) 804-10IMO 2009 Second IMO GHG Study 2009 London International Maritime OrganizationMoriarty P amp D Honnery 2012 lsquoEnergy efficiency Lessons from transportrsquo Energy Policy 46 1ndash3Poulsen Reneacute Taudal 2012 lsquoEmissions and energy efficiency - the twin challenges for shippingrsquo Mercator Maritime Innovation Research and Education MarchJune 447-454

Reneacute Taudal Poulsen is Associate Professor at the Department of Innovation and Organizational Eco-nomics at CBS He is also affliated with the Centre for Shipping Economics and Innovation at CBS Reneacute Taudal Poulsen holds a PhD degree in marine environmental history from the University of Southern Denmark and he has worked within the field of maritime business studies for the last seven years He has published in such journals as Fisheries Research Business History and Scandinavian Economic History Review

His current research intersts concern the environmen-tal challenges faced by the global shipping industry and business model innovation in the maritime domain

Research

35CSQ

It is clear that shipping companies cannot fully bridge the energy efficiency gap alone In fact factors beyond the control of in-dividual shipping companies and various structural or legal barriers prevent shipping from fully realizing the slow steaming po-tential

Port congestion remains a world-wide prob-lem and causes ships to spend remarkably long periods inactive Despite the financial crisis and the large drop in shipping freight markets after 2008 many loaded vessels sit at anchor outside ports waiting for berths In some cases they wait for a few hours In other cases for days weeks or even months Instead of waiting the ships could have re-duced speeds and saved fuel And the de-livery and the loading of the cargo in port would not have been delayed in any way However in many cases shipping companies or ship operators cannot reduce speed in spite of port congestion

Educational barriers

Energy efficiency gaps in shipping are also evident when the fuel consumption levels of sister ships are compared Even though the vessels are identical and operate in the same waters studies have shown that their fuel consumption may differ by several Decisions made by the crews onboard and by managers in the onshore organizations clearly influence the level of fuel consump-tion For instance if a captain selects only very small course deviation margins when coding the autopilot of the ship the shiprsquos rudder will move frequently to keep the ship on the exact course all the time This will slow down the ship and cause higher fuel consumption than if the captain had allowed for slightly wider margins and the wider margins would not have any effect on the safety of the ship Decisions made by the commercial depart-ments eg on how to crew the vessels how to monitor vessel fuel consumption or which new equipment to install onboard may also

have a large impact on fuel efficiency and emission levels If shipping company man-agers can nurture a fuel saving culture this could potentially make a difference Since 2007 or 2008 shipping companies have in-deed started to facilitate such organizational changes but educational barriers remain a problemOnshore truck drivers are now offered fuel saving courses but fuel-saving is not a major part of the traditional curriculum in nautical schools or in the commercial education of shipping trainees For good reasons the nau-tical educations have focused on maritime safety but this has caused them to neglect the climate challenge in shipping and the is-sue of fuel saving In fact no single nauticaltext book on maritime fuel savings has yet been published and according to teachers and students in the nautical schools this serves as an educational barrier to ener-gy-efficiency improvements The technical level of education for commercial employees in shipping companies may also hinder im-provements in energy-efficiency Some com-

mercial shipping employees may not have sufficient training to fully see and acknowl-edge the consequences of their decisions on fuel consumption In short it seems that fuel awareness and the educational systems have responded more slowly to the climate chal-lenge than the rise in fuel prices may other-wise suggest

For shipping to bridge energy-efficiency gaps education ndash both nautical and com-mercial ones ndash clearly is an area to set in Here the potential for innovative solutions is both evident and pertinent Changing educational systems and awareness is no easy task bearing in mind the global nature of the shipping industry and international crewing of the world fleet It is clear howev-er that educational upgrading is necessary for shipping to effectively address the cli-mate challenge effectively

Charter parties between ship-operators and shippers state a specific time of arrival for the vessel and in order to avoid claims ships proceed to port accordingly regardless of berth availability Experiments with new more flexible charter parties which allow for slow steaming in case of port congestion have recently been made Shipping compa-nies have generally been enthusiastic about this flexibility but often shippers remain skeptical Lack of trust between shippers which need the loading of their cargoes as soon as possible and shipping companies may be a cause for this discrepancy Even in cases where the savings made from slow-steaming are split between shipping companies and shippers shippers have re-mained skeptical Port queuing systems may have a role to play here

Many ports including some of the major container iron ore coal and grain ports serve ships on ldquofirst-come first-servedrdquo ba-sis Ships only receive their ldquoticketrdquo in the

waiting line upon their arrival at the port Again lack of trust between the ship-oper-ators shippers and the port authorities may explain this phenomenon Moreover port authorities currently do not have incentives to change queuing practices because they cannot gain a share in the fuel savings made from slow-steaming

The problem is particularly strong in the major tramp shipping segments of tanker and dry cargo shipping where vessels act as ldquotaxis of the seardquo serving numerous shippers and rarely calling at the same ports If the fleet from a shipping company only calls at a particular port once a year and the compa-ny has very short-term relations to individ-ual shippers building trustful relationships between the parties remains a major chal-lenge Solving this problem and realizing the full potential of slow steaming will require systemic innovation in shipping and port systems and further studies are required to identify possible solutions

36 CSQ

The Wind turbine industry -

Emerging global innovation networks in Europe and China

The wind turbine industry has developed into a global network encompassing a large amount of diverse actors within innovation production and installation of wind turbines across the globe

By Stine Haakonsson and Julia Kirch Hollitsch Department of Business amp Politics CBS

market for wind energy Chinese actors have turned China as a location into another im-portant lsquohubrsquo in this network This has led to new forms of innovation collaborations between European and Chinese actors The result has been a complete re-configuration of the industry over the past decade In the International Business and Economic Geog-raphy literatures the development of global production networks in which lead-firms be-come orchestrators of dispersed production

enmark has traditionally played a key role as an lsquoinnovation hubrsquo and com-

panies in Denmark remain among the lead firms within the wind turbine industry Re-cently the industry has reorganized from being located predominantly in the Triad regions (mainly in Europe and the US) to becoming a globally dispersed industry This development can partly be explained by de-velopments in international and national politics Due to the growth of the Chinese

activities in globalized value chains is well established theoretically as well as empiri-cally In the globalization process lead firms relocate production activities to low cost lo-cations by off-shoring and through vertical disintegration and outsourcing to specialized suppliers Producers of wind turbines are no exception However until recently the mar-ket and innovation activities remained con-centrated in Europe and US

With the recent focus on global politics for a post-carbon society the market for wind tur-bines has experienced an immense growth and a high degree of market globalization New locations have developed into main markets One of these is China which since 2010 has been the largest market for wind turbines in the world (in capacity installed) The globalization process in the wind tur-bine can be explained by a combination of offshoring of production by European lead firms mainly through foreign direct invest-ment and establishment of domestic lead firms in emerging markets In 2010 there were four Chinese-owned companies among the top-10 producers of wind turbines as compared to 2003 where all firms on this list were from Europe and the US

D

Julia Kirch Hollitsch

Stine Haakonsson

Stine Haakonsson and Julia Kirch Hollitsch from Depart-

ment of Business and Politics CBS are engaged in the

Sino-Danish Center for Research and Education (SDC)

project on Wind Energy in China Both research on the

current restructuring of industries and firms at the glob-

al level (outsourcing off shoring global value chains)

In particular their research is on 1) the restructuring of

innovation and RampD activities into global innovation net-

works(GINs)2)thechangingroleofemergingmarkets

(ChinaIndiaBrazilSouthAfrica)intheseemergingGINs

and 3) technology transfer and capability building related

to renewable energy

Research

37CSQ

by adapting their products to the Chinese market and through cost-out development activities in the new locations primarily China

As a result the wind industry is today highly knowledge-intensive and internationalized Due to increased attention and investments in sustainable transition policies and car-bon-reducing technology China has over the past decade developed into a high prior-ity investment area for wind turbines Also Chinese companies are upgrading technol-ogy and innovation from the global firms through integration into GINs Moreover the production and innovation networks for wind energy become highly complex and consist of many different suppliers of com-ponents (blades gear boxes control systems bearings) resulting in a variety of network linkages among suppliers of different com-ponents and the wind turbine producers

From our empirical data including more than 40 in-depth interviews collected in 2011 and 2012 in the wind turbines indus-tries in China and Denmark we have identi-fied some very interesting patterns We have identified very different characteristics of the GINs established by the Chinese wind tur-bine industry and the European wind tur

Emerging Global Innovation Networks

Innovation processes are also moving be-yond the boundaries of individual compa-nies and national innovation systems Firms engage in cross-border innovation networks spanning different innovation systems which may be national regional or sectorial in or-der to stay competitive in the global econ-omy Chinese lead firms are entering this scene too The result is globally organized networks of interconnected and integrated functions and operations by firms and non-firm organizations engaged in the develop-ment and diffusion of innovations so-called Global Innovation Networks (GINs) Lead firms internationalize innovation through strategies of exploitation global generation of innovation and global techno-scientific collaborations Chinese wind turbine pro-ducers ndash acknowledging their resource and capability deficiency ndash pursue strategies of innovation network integration through strategies of global generation of innovation These firms link up with specialized Europe-an actors such as core component suppliers through partnerships and networks in or-der to tap into the technology of firms from developed countries and upgrade Mean-while European companies internationalize through exploitation strategies for example

bine industry Although Danish and Chinese actors are experiencing a re-organization of activities and establish networks and globa-linnovation strategies the result is very dif-ferent

The industry from Europe and US

The industry from Europe and the US hosts the lead firms in terms of core technology de-velopment Denmark has traditionally played a key role as lsquoinnovation hubrsquo in technology development and global lead firms such as Vestas and Siemens Windpower (previously Danish lsquoBonusrsquo) took its start already in the 1970s The core competences of the Danish wind turbine innovation system are based on large testing facilities and long track records mainly due to the long time-line of experi-ence The wind industry goes 40 years back and therefore Denmark has a good knowl-edge pool within establishing wind farms (aerodynamics minimizing power loss in energy transmission wind mapping and other installation-related technologies)

38 CSQ

that will make it possible to finance the pro-jects ldquoFrom then on our wind turbine pro-jects developed very fastrdquo(Interview Wind Engineer Chinese Academy of Sciences) Thus this law was a milestone for elevating renewables to a strategic position in China or as expressed by a European lead-firm ldquoWhat drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick offrdquo

Until the turn of the millennium Chinarsquos wind energy industry was largely built on donors acquisition of finished wind turbines and licensed technology from European companies spread on a very small scale into the local industry during the mid 1990s Chi-nese wind turbine technology has evolved from imitation reverse engineering and licensing in the 1980-90s combined with assistance from foreign consultants One example is how DANIDA funded a project in 1986 for Goldwind in Xinjiang which imported 13 units of 150 kW lsquoBonusrsquo (now Siemens Wind Power) turbines

To get beyond the stage of pure imitation several policies have been introduced with the intent to upgrade Chinese manufacturers to obtain indigenous innovative capabilities Policy programs were introduced to enhance Chinese companies to develop wind energy subsidizing wind energy RampD expenditures at varied levels over time establishing a re-newable energy fund and through the ldquo863 Wind Programrdquo under the Tenth Five-Year Plan (2001-2005) Local content require-ments were put in place in which develop-ers of wind energy projects were required to source 70 pct of the content in China These policies ndash which essentially forced foreign manufacturers wishing to sell wind turbines to the Chinese market to establish China-based manufacturing facilities ndash were only removed recently (in 2009) One result was that the foreign companies had to up-grade local suppliers of components

Due to the technological complexity many European (and hereby also the Danish) firms are vertically integrated and have most com-ponents produced in-house or with regular specialized suppliers According to these companies the different parts need to be well adjusted to each other to some extent even co-developed in order to enhance effi-ciency and the lifetime of the wind turbine Likewise the European industry has expe-rienced a concentration of actors with the result that there are only relatively few but large manufacturers in Europe (the larg-est ones are Vestas Siemens Gamesa and Enercon) Together these four companies accounted for about 35 of the global mar-ket in 2010 By seeing the wind turbine as an integrated system these lead firms aim at producing lsquothe Rolls Roycersquo model wind turbines These are strong in terms of qual-ity and standards but generally expensive These firms learn cost-out techniques from their engagement with partners in China

The Chinese Wind Turbine Industry

Today the Chinese wind turbine industry is overly competitive It entails more than 80 wind turbine manufacturers and the Chi-nese market boasts the highest growth rates internationally with an average growth rate of 968 percentages annually in the last three years Several large domestic Chinese wind turbine manufacturers have emerged within the last decade Sinovel and Goldwind take the largest share followed by United Pow-er and Ming Yang just to mention some of them As of the end of 2010 these four were A major driver for the development of the Chinese wind energy market has been the establishment of an institutional context as a comprehensive concerted policy frame-work addressing the development of renewa-ble energies This change in the institutional context was first reflected clearly in the 11th 5-year-plan (2006-2010) which explicitly linked environmental sustainability to the key goal of establishing what was called a harmonious socialist society signalling a socially environmentally and economically sustainable economy With the Renewable Energy Law from 2005 the Chinese wind energy industry really took off as it explicitly seeks to ensure that renewable energy pro-jects have an outlet for their output at prices

Technical barriers and the role of GINs for a post-carbon society

Despite high ambitions in terms of devel-oping innovative capabilities Chinese pro-ducers still produce almost exclusively for the Chinese market However Chinese wind turbine manufacturers have recently started an internationalisation process and some are approaching international markets Not least for tapping into new knowledge

Europe (and Denmark in particular) is per-ceived as a main location from which the Chinese companies can learn more A cou-ple of Chinese companies have already set up RampD centres in Denmark European firms have also initiated RampD centres in new lo-cations primarily China and India In other words GINs can be identified

Our research also points towards important barriers for GINs in the wind turbine in-dustry and for approaching a post-carbon global society Most importantly are the technological barriers intellectual property rights quality issues and issues of limited appropriability of knowledge Further the institutional framework remain relevant for displaying how the sector and the emerging GINs are embedded institutionally socially and technologically Whether actors trans-act knowledge technology and know-how through cooperative innovation activities also depends on how core the technology of a given technology is Still as the market grows in China it seems to have matured in Europe because of changing policies on re-newable energy To sustain the position as a global lsquohubrsquo and world leader in wind tech-nologies there is a strong need for support in Europe as this research really shows how fast the Chinese industry is moving One major result is how important networks are for upgrading companies and it seems that Chinese firms perform better in network strategies and manage to tap into relevant knowledge than the European firms

What drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick off rdquoldquoInterview Wind Engineer Chinese Academy of Sciences

39CSQ

Social Enterprise World

ForumNadine Koumlcher from 180Degrees recounts her experience from the

conference on

Rio de Janeiro Brazil 2012

In the numerous panel debates and parallel track discussion it became clear that Impact Investment is a hot topic among both social entrepreneurs and impact investors a diverse group consisting of corporations founda-tions and potential donors However various obstacles impede a harmonious relationship between the twoSocial enterprises face structural challenges to make themselves more appealing to im-pact investors They have to become more transparent and increase their accountability This includes improving their impact assess-ment and reporting tools However despite much discussion no consensus could be formed on how to optimally conduct im-pact assessment One of the most frequently proposed methodologies involves the use

From the 16th to the 18th of October the CBS Sustainability Platform granted me the opportunity to attend the 5th Social Enter-prise World Forum which took place in Rio de Janeiro Brazil This yearly international conference focuses on social enterprises and their effectiveness in solving social challeng-es The overall theme of the 2012 conference hosted by NESsT was ldquoSocial Enterprise Investing for Impactrdquo Thus for three days over 180 speakers and 650 delegates from 30 different countries shared their experiences regarding impact investment and discussed possibilities to attract new investment by both the public and the private sector for so-cial enterprises

of control groups Story-telling has also been men-tioned to be a powerful tool to provide investors with a proof of outcomesSocial investors are willing to accept returns just below the market rate in exchange for a social return However large profits are still expect-ed and many social enter-prises are afraid of being unable to generate them Social enterprises typically operate on a small scale and are not used to undertake large projects with huge sums of investment given to them Many are too small for social investors to be

attractive as costs are similar for small and large investments although larger invest-ments have a higher payoff

Nichole Echert the CEO of NESsT there-fore pointed out that it is necessary to align expectations between impact investors and social entrepreneurs and to be patient in establishing a relationship between the two groups The expected financial return has to be reasonable close to covering the costs of operation and social returns have to be re-ported to investors by use of clearer criteria

By Nadine Koumlcher Director of Branch Development180 Degrees Consulting Limited

ldquoSocial Enterprise Investing for Impactrdquo

Students

40 CSQ

A highlight of the con-ference was definitely the site visit to a social enterprise project in a recently pacified fave-la It brought further insights on the great variety of social enter-prises that exist in Bra-zil and their missions and struggles We visit-ed a community center at which Comitecirc para

Democratizaccedilao da Informaacutetica (CDI) uses technology to fight poverty and to stimulate entrepreneurship CDI has formed a corpo-rate partnership with Coca Cola which in the same building teaches young locals how to write a CV and find a job Talking to the young locals at the center it became apparent that an increased self-confidence and the in-spiration they get from meeting former now employed participants of the project (eg at Coca Cola) is what they valued most of being part of the class

Participating at the conference was definite-ly a unique and valuable experience I would not want to miss as I tremendously improved my knowledge in the field of social enter-prises through attending the numerous pres-entations and discussions and further met so many inspiring social entrepreneurs impact

In addition it has been stressed that the problem is not a shortage of investment capital (even though the government could promote more impact investment by for instance granting tax breaks) but how to deploy it Social entrepreneurs also have to be aware of the different advantages and dis-advantages of the various types of capital It has to fit their process of establishment and it has therefore been suggested that funds and grants are most optimal in the start-up phase to cover such costs as capacity train-ing There is generally a lack of this early stage financial support Following the initial phase strategic philanthropy money would be most appropriate before impact and final-ly equity investment is sought Furthermore new ways of investment which fit the social enterprise world have to be created replac-ing the current situation of trying to fit social enterprises into the current financial world

investors and students with a genuine inter-est in the field

Participating at the conference was definitely a unique and valuable experience rdquo

ldquo

Social Enterprise World Forum 2013 in

Calgary Canada

The TRICO Charitable Foundation in part-nership with the Social Enterprise Council of Canada and the Social Finance Forum has been selected to host the 6th Annual Social Enterprise World Forum SEWF 2013 will take place October 2-4 2013 in Calgary Al-berta The Forum will present the Canadian social enterprise movement with opportuni-ties to engage learn and share on the inter-national stage

SEWF 2013 will be a gathering of over 1000 Canadian and international delegates who are involved in the social enterprise move-ment where the blending of social and fi-nancial values is core to business Attendees will consist of practitioners (from all sec-tors) funders investors supporters elected officials and public servants from around the world

Nadine Koumlcher

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 27: CBS Sustainability Quarterly 2013 #1

27CSQ

The Transparency-Sustainability NexusA workshop on the practices meanings and tensions of organiza-

tional transparency

n December 5 2012 the Department of Intercultural Communication and Management (ICM) hosted an in-

ternational workshop supported by CBS Sustainability Plat-form and ICM The workshop was organized by Oana Brindusa Albu Mikkel Flyverbom and Hans Krause Hansen respectively PhD Fellow and Associate Professors at ICM The idea of the workshop was spurred by the observation that while ideals of transparency like lsquoopennessrsquo lsquodisclosurersquo and lsquoreportingrsquo are pro-liferating these years the actual construction of transparency within and across organizations is poorly understood Most re-search on transparency is highly normative if not celebratory just as popular discourse about transparency not least in the areas of sustainability and corporate social responsibility is obsessed with ideals of accountability performance and effi-ciency and pervaded by an optimism currently pushed to its extreme with the explosion of new media technologies

But the truth is that we generally know very little about the implications of ideals of transparency when translated into practice in specific issue areas and organizational contexts Importantly each of the contributions to this workshop clear-ly suggested that the contemporary politics of transparency is much more complex contradictory and dynamic than tradi-tionally recognized All papers examined various aspects of the contemporary obsession with transparency and specifically the increasing use of disclosure techniques within and around or-ganizations the rationales or myths underpinning these meas-ures their intended and unintended consequences including implications for identity-making management and govern-ance practices

Clare Birchall initiated the workshop with a paper titled lsquoThe Cultural Politics of Disclosurersquo highlighting how transparency has been positioned as a superior form of disclosure in popular management and organizational literatures and in policy docu-ments In her account the growing preference for transparency is a consequence not only of the positive qualities seen to be intrinsic to transparency itself but also a response to the per-ceived negative characteristics of other forms of disclosure such as gossip scandal and rumor Lars Thoslashger Christensen (with co-author Joep Cornelissen) then analyzed transparency as one of the foundational myths of modernity myths understood here as descriptions of the world in a narrative form which seeks to produce meaning and direction for a community and its members Such lsquoMyths of Transparencyrsquo sustain numerous organizational practices ndash including openness information provision and auditing But as argued by the authors there are conflicting evidence regarding the capacity of such practices to create insights and understandingThat aspirations and techniques of transparency can have seri-ous repercussions was demonstrated by Peter Skaeligrbaeligk (with co-author Mark Christensen) in the paper entitled lsquoAuditing and the purification of blamersquo which analyzed how auditing auditing practices and institutional entities including the po-liticized environments surrounding them are mobilized and participate in blame games and allocation In his paper titled lsquoQuantification transparency and the costs of reassurancersquo Henrik Vollmer analyzed various dimensions of the role of nu-merical records and signaling in generating transparency trust and mistrust

By Hans Krause Hansen Department of Intercultural Communication amp Management

Event

O

28 CSQ

Some of these aspects were also touched upon in the paper lsquoDisrupted Disclosures The Politics of Visibility and Surveil-lance in the Extractive Industriesrsquo by Hans Krause Hansen (with co-author Julie Uldam) which explored the wider field of visibility and surveillance in which contemporary transpar-ency policies are unfolding with examples from the extractive industries Oana Brindusa Albu in her lsquoTransparency and the organizational self everyday politics of identification in Cooperativesrsquo examined the paradoxical effects of values and practices of transparency on collective identity formation pro-cesses drawing upon her ongoing multi-sited fieldwork in co-operatives Under the heading of lsquoThe Improbability of Secrecyrsquo Mark Fenster analyzed the intersections of secrecy and trans-parency with examples from the US government and its efforts to control information which according to the author does not necessarily stop the flow of information Finally Mikkel Fly-verbom and Christina Garsten examined lsquoThe sway of (big) data ndash calculations and advocacy in the name of transparencyrsquo focusing on the operations of data-based forms of corporate lsquotransparency evangelismrsquo and advocacy through revelation including examples from Center for Global Development and Google

In all the workshop was highly successful in investigating not only the historical and mythical foundations of transparency but also the different practices and forms of transparency that currently shape organizations and a wide variety of issue areas It also provided a reminder of the usefulness of investigating a concept of transparency in relationship to a host of other con-cepts such as secrecy myth gossip blame surveillance visi-bility identity information and knowledge The organizers of the workshop wish to thank all workshop participants for their valuable contributions and the CBS Sustainability Platform and ICM for their support

Hans Krause Hansen

Mikkel Flyverbom

Oana Brindusa Albu

ASSOCIATE PROFESSORPHD (ICM)

ASSOCIATE PROFESSORPHD (ICM)

PHD FELLOW (ICM)

29CSQ

Louise Lyngfeldt Gorm Hansen is a PhD Fellow at the Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) She has a back-ground in Chinese Studies from Copenhagen University (BA) the Asian Studies Program at CBS (BSc) and in International Business Stud-ies and Sustainable Business (MSc) from CBS

The aim of her cross-disciplinary PhD project is to explore how the Chinese hydropower sector works with environmental sustainability and more particularly how the concept is understood and performed in the planning phase of a major dam project in the southwestern Chinese province of Yunnan

The aim of the project is to gain a deeper under-standing of how Chinese firms in the renewable energy sector such as hydropower companies understand and value sustainability as well as how such firms tackle the increasing pressure to deliver socially and environmentally balanced solutions to one of Chinarsquos major challenges lowering CO2 emissions in a time with rapidly rising water and energy demands Theoretically the project draws on - and aims to contribute to ndash a combination of Asian Studies and Science and Technology Studies

PHD FocusLouise Lyngfeldt Gorm Hansen

HYDROPOWER

SUSTAINABILITY

30 CSQ

HYDROPOWER

SUSTAINABILITY IN

CHINAy PhD project combines two of my main research interests China and

environmental sustainability I have studied China for a number of years mainly because of an interest in how the Chinese view sus-tainable development So since finishing my masters I have known that I wanted to study how China plan to tackle a sustainable tran-sition in the years to come I saw my chance when CBS announced PhD scholarships in

DanishEuropean-Chinese social science research in collaboration with the newly es-tablished Sino-Danish Center for Education and Research (SDC) and started my PhD in October 2011My PhD project focuses on the Chinese energy sector more specifically the rapidly growing part of the energy sector engaged in renewable energy Here I examine Chinarsquos second largest source of electricity gene-

eration hydropower In recent years China has become increasingly focused on reduc-ing CO2 emissions While some countries such as the US and Australia are decommis-sioning hydropower dams China is looking to large-scale hydropower construction as one of the solutions to a future clean energy supply This means that hydropower devel-opment plays a central role in Chinarsquos sus-tainable transition

However utilization of hydropower is con-troversial not least in China and has met increasing resistance in recent years particu-larly from Chinese and international NGOs the media as well as the scientific commu-nity Critique is most often focused on how or if social and environmental sustainability can be ensured in such large scale projects as the social and environmental impacts of large scale hydropower development are very complex and difficult to measure More gen-erally the viability of relying on hydropow-er as a future source of energy is also being questioned One of the major concerns here is the overarching issue of climate change ie glaciers shrinking and yearly water runoff decreasing This means less stable water flow for hydropower and less water for other pur-poses such as agriculture water supply for down-stream countries etc

By Louise Lyngfeldt Gorm Hansen Asia Research Centre Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) ndash sinodanishcenterdk

M

Picture from SinoHydro promotion material 2011

Research

31CSQ

In contrast to for example the wind power sector in China in which many foreign com-panies have invested the hydropower sector is dominated by a few large state-owned en-terprises Our knowledge of Chinese state-owned enterprises is still limited and there-fore my PhD project is also part of a larger research project at the Asia Research Centre with focus on Chinese state-owned enter-prises and the reform of the public sector in China

In combining these interests my PhD exam-ines how Chinese state-owned enterprises in the hydropower sector tackle the demand to expand hydropower development to help reduce Chinarsquos CO2 emissions while be-ing under increasing pressure to deliver on sustainability principles in the planning and execution of large scale hydropower pro-jects The pressure comes mainly from NGO organizations the media and the scientific community both at home and from abroad I am conducting a case study focused on a specific river in south-western China which has ndash until now ndash not been fully developed for hydropower and the plans for addition-al hydropower dams on the river are still undergoing assessments The project has continually stalled due to disagreements between Chinese government officials at all levels NGOs the media the increasingly deregulated but still state-owned Chinese hydropower companies and the scientif-ic community However the project has very recently been reopened and so will go through another round of assessments in the near future The case is an excellent example of the complexity of hydropower develop-ment decisions in China but it also highlights some of the social and environmental conse-quences of the global push to decrease CO2 emissions

China plays and will continue to play an increasingly important role globally in the years to come However the country also fac-es enormous challenges - not least regarding the environment These challenges also affect economies in Western Europe - for better or worse My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective so

that we here in Europe and in Denmark can more knowledgably and actively engage with China to help solve some of these difficult challenges that eventually affect us all In do-ing this I contribute to gain a better under-standing of the Chinese perspective on envi-ronmental sustainability that can be of use to companies wanting to engage in the Chinese renewable energy sector

My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective rdquoldquo

Picture of the case-river taken by the author in 2012

32 CSQ

FROM BLUEPRINT TO PRACTICE

ENERGY EFFICIENT CONSTRUCTION

By postdoc researcher Satu Reijonen Department of Organization CBS

In the EU almost one third of CO2 emis-sions are attributed to energy used in the construction and use of buildings (FIEC

2007) It is therefore not surprising that the construction sector has recently been subjected to a substantial amount of policy measures to combat its negative effects on climate change In Denmark the state has posed new thresholds for the energy efficien-cy of new buildings including a plan for con-tinuous improvement in the area This far the industry has responded well to these stricter performance requirements In the future re-quirements will rise to levels that are not that easily achieved in the coming years build-ings will have to use 25 less energy than in year 2008 How can these ambitious goals become business as usual

One of the most discussed ways besides add-on technologies such as windmills and solar panels to enhance the energy efficiency of a building is through an energy efficient phys-ical design In practice this means reduction of energy used for heating cooling down and lighting of the building through an optimal orientation and dimensioning of the build-ing

Integrated energy design contrary to add-on technologies can be achieved on a rath-er modest additional budget This should be good news for the sector that today is eco-nomically pressed Indeed today many low energy building projects claim to use the in-tegrated energy design method (IED) when seeking to meet the most ambitious energy related goals In this commentary I wish to discuss some challenges related to the imple-mentation of this design tool

The integrated energy design method sug-gests that one of the main problems in not achieving energy efficiency is that energy related concerns become integrated into the design process too late The method consists of two elements the first of which addresses the need to bring in energy related knowl-edge throughout the design process It sug-gests that design teams ought to be multidis-ciplinary and that architects engineers and experts should work together either co-lo-cated or in a series of workshops Further-more it suggests systematizing energy quali-ty follow-ups into the design process This is all very relevant and inspiring

Oddly enough a closer look on the actual design practices reveals that few seem to ac-tually follow the method of integrated energy design to the point This poses an interest-ing question about the challenges related to the use of such management technologies as vehicles for increased energy efficiency in construction Maybe it is about time practi-tioners and researchers ask themselves what are the boundaries of and challenges related to the use of these tools ndash and what else is required for organizing for more energy effi-cient building design processes

A revolution of relations

Integrated energy design points to the need to bring energy related expertise into the de-sign process at an earlier point In order to achieve this cooperative practices between different professional groups are advocated for Historically energy experts have most-ly been used to respond to rather advanced architectural plans Shared workshops and co-localization suggest a change in these business as usual relations But are they pos-sible and what type of changes do they ac-tually imply in order to function as wished

Research

33CSQ

Satu Reijonen is postdoctoral scholar at the Department of Organization at CBS In her on-going research project she investigates how architects and energy engineers two different profes-sions cooperate and coordinate their work regarding energy related ques-tions in construction design The ways in which relations between and roles of these professions become consti-tuted through socio-material arrange-ments are a central topics in her work Besides studies of work Satu has con-ducted research on environmentally friendly products and markets

ABOUT SATU RAIJONEN

The initiation of this type of new working forms is certainly beneficial for energy effi-cient design However for several reasons they are more difficult to make work than one would assume While it may sound rea-sonable it is after all a tall order Integrating energy related practices into an environment where different visions professions and in-terests meet and the divide between what one profession does is clearly and historically demarcated is demanding While architects need to make room for the intervention of energy experts into the creative work energy experts have to become capable of working creatively and relate to and follow the visual and aesthetic cues from architects In order to work these kind of changes in the profes-sional roles and relations have to resonate with the skills and visions of individual work-ers not only management level design strat-egies It is not surprising that organizational change scholars remind us of the possibility of loose coupling from the strategies placed at the management level (March 1981) What integrated energy design suggests is a kind of a revolution in the ways in which both the architects and the energy engineers envision their role and space of mobility

Linear tools in an unlinear design process

Integrated energy design suggests that the energy performance of the emerging build-ing design be followed up at certain points during the design process The method de-picts a rather mechanistic and linear under-standing of a design process consisting of phases within which iteration may occur While energy related issues may be dis-cussed as quality goals during these phases the method places a lot of emphasis on the check ups performed in the transition from one phase to another Design processes how-ever can also be characterized in a different manner unlinear exploratory and whirl wind type of practices where clear cut phases hardly exist (Akrich 1992 Van de Ven et al 1999) This also applies to the architectural design processes where the object of the de-sign is emergent (Yaneva 2009) This entails that the product the building may change in unexpected ways during any day of the de-sign process If this alternative description of the design processes is viable delegating energy related issues to some predetermined check up episodes may strike a false accord and indeed be contradictory with the aim of enhancing coordination and cooperation between professional groups What happens in between the predetermined checkups may very well be where the energy efficiency of the building becomes configured and where the intervention from the energy experts

would come most needed Perhaps this is why the best performing projects do not blindly follow the steps of the IED method Check ups however and no doubt play a role in verifying and making visible the energy performance for partners outside the design team

Integrated energy design as many other sus-tainability standards and guidelines make visible systematize and legitimize the ex-istence of environmental management and sustainability issues in organizations and work processes In this such way tools create awareness and legitimacy for environmental and sustainability issues The integrated en-ergy design method also suggests a possible way of thinking about what type of design practice might help us to achieve the stricter energy requirements of the future It howev-er falls short in becoming the change agent it suggests This is hardly surprising as a meth-od or a standard of any kind should only be seen as a possibility or as an opening for an inquiry of what the practice could be about Reconfiguring a well established practice is hard work and it would be foolish to trust that a design method would achieve it by itself What the method does is to alert us of the more profound changes in the pro-fessional roles and relations that is needed in order to enable the change However the method due to its rather mechanical under-standing of the design process may come to work against its own ambition of integrating energy issues into the design work In its quest for integration the method defines at which points in time the architectural and the engineering project has to be checked for its energy performance This approach may lead to bringing in energy related concerns in some artificially created points in a design process which may additionally compart-mentalize energy related issues from where the design really happens

Integrated energy design as many other sustainability standards and guidelines make visible systematize and legitimize the existence of environmental management and sustainability issues in organizations and work pro-cessesrdquo

ldquoLiteratureAkrich M (1992) The De-Scription of Technical Objects in Shaping Technology Building Society Studies in Soci-otechnical Change eds WE Bijker and J Law The MIT Press Cambridge Massachusetts pp 205-224

FIEC 2007 The impacts of buildings on climate change httpwwwbuildingsplatformeuepbd_publicationdocFIEC_Memo_p2919pdf on 1222008

March JG (1981) Footnotes to Organizational Change Administrative Science Quarterly vol 26 No 4 pp 563-577

Van de Ven A D Polley R Garud and SVenkataraman (1999) The innovation Journey Oxford Oxford Univer-sity Press

Yaneva A (2009) The making of a building A pragmatist approach to Architecture Bern Peter Lang

More about integrated energy design(IED)

httpwwwintendesigncomosloIntendnsfAttachmentsGuideline_Version_2pdf$FILEGuideline_Version_2pdf

34 CSQ

The climate challenge in

shipping

ldquoGlobal shipping faces two major challenges both of which are caused by its reliance on fossil fuelsrdquo

By Reneacute Taudal Poulsen Department of Innovation amp Organizational Economics

RENEacute TAUDAL POULSEN

ASSOCIATE PROFESSOR DEPARTMENT

OF INNOVATION AND ORGANIZATIONAL

ECONOMICS COPENHAGEN BUSINESS

SCHOOL

orecasts show that the shipping indus-tryrsquos CO2 emissions will most likely continue to rise in the next two to

three decades as demand for world sea-borne trade will expand At present global shipping accounts for approximately 33 per cent of global CO2 emissions but this share will most probably increase in the coming years if many onshore industries succeed in their aims of reducing emission levels

At the same time rapidly rising fuel costs put heavy strain on shipping company budg-ets Historically and until very recently fuel costs were only a minor concern for ship-ping companies but now they often exceed 60 per cent of variable operational costs Fuel savings made through energy efficiency improvements thus represent a win-win sce-nario for the shipping industry and for so-ciety at large They simply make good sense for everyone

Despite the strong incentives for fuel sav-ings numerous studies have demonstrated that shipping fails to implement cost-ef-fective measures to reduce fuel consump-tion Fuel-saving technologies are readily available in the market and in many cases pay-back periods are very short (less than a year) Changes in operational habits which require few if any investments also hold a significant potential for fuel savings

Global shipping thus holds several classic examples of energy-efficiency gaps Gaps occur wherever cost-effective measures to improve energy efficiency fail to materialize The causes for energy efficiency gaps have been a favourite research topic within the field of energy economics for decades and economists sociologists and political scien-tists have been able to identify several means to bridge the gaps However within the mar-itime domain energy efficiency gaps and the climate challenge remain neglected issues Legal barriers

Shipsrsquo fuel consumption rises steeply with speed Hence slow-steaming or just minor speed reductions can lower consumption and emission levels significantly Since oil prices started to rise rapidly a few years ago shipping companies have indeed resorted to various slow-steaming practices and com-panies which succeed in this regard have been able to gain competitive advantages In other words actors in the industry are trying to bridge the energy efficiency gap However and in spite of the strong price signals from the rising fuel prices a potential for fuel sav-ing through slow steaming still remains

FNew CBS research project

A new three year research project at CBS under-

taken by Reneacute Taudal Poulsen for the Department

of Innovation and Organizational Economics will

examine the climate issues bringing insights from

energy economics and innovation management

into the field of shipping economics The project

which is financed by The Danish Maritime Fund

runs from 2012 to 2015 The project asks why en-

ergy efficiency gaps continue to occur in shipping

and how shipping companies and the maritime

industry at large can use innovative business

models and process innovation to turn the climate

challenge and the rising fuel costs into a business

opportunity Energy efficiency gaps occur both

in daily operations and when investments in new

vessels are made This article will briefly present

two examples of energy efficiency gaps from

the operational level and some of the preliminary

findings of the project

References

Jaffe AB and RN Stavins 1994 lsquoThe energy efficiency gap What does it meanrsquo Energy Policy 22 (110) 804-10IMO 2009 Second IMO GHG Study 2009 London International Maritime OrganizationMoriarty P amp D Honnery 2012 lsquoEnergy efficiency Lessons from transportrsquo Energy Policy 46 1ndash3Poulsen Reneacute Taudal 2012 lsquoEmissions and energy efficiency - the twin challenges for shippingrsquo Mercator Maritime Innovation Research and Education MarchJune 447-454

Reneacute Taudal Poulsen is Associate Professor at the Department of Innovation and Organizational Eco-nomics at CBS He is also affliated with the Centre for Shipping Economics and Innovation at CBS Reneacute Taudal Poulsen holds a PhD degree in marine environmental history from the University of Southern Denmark and he has worked within the field of maritime business studies for the last seven years He has published in such journals as Fisheries Research Business History and Scandinavian Economic History Review

His current research intersts concern the environmen-tal challenges faced by the global shipping industry and business model innovation in the maritime domain

Research

35CSQ

It is clear that shipping companies cannot fully bridge the energy efficiency gap alone In fact factors beyond the control of in-dividual shipping companies and various structural or legal barriers prevent shipping from fully realizing the slow steaming po-tential

Port congestion remains a world-wide prob-lem and causes ships to spend remarkably long periods inactive Despite the financial crisis and the large drop in shipping freight markets after 2008 many loaded vessels sit at anchor outside ports waiting for berths In some cases they wait for a few hours In other cases for days weeks or even months Instead of waiting the ships could have re-duced speeds and saved fuel And the de-livery and the loading of the cargo in port would not have been delayed in any way However in many cases shipping companies or ship operators cannot reduce speed in spite of port congestion

Educational barriers

Energy efficiency gaps in shipping are also evident when the fuel consumption levels of sister ships are compared Even though the vessels are identical and operate in the same waters studies have shown that their fuel consumption may differ by several Decisions made by the crews onboard and by managers in the onshore organizations clearly influence the level of fuel consump-tion For instance if a captain selects only very small course deviation margins when coding the autopilot of the ship the shiprsquos rudder will move frequently to keep the ship on the exact course all the time This will slow down the ship and cause higher fuel consumption than if the captain had allowed for slightly wider margins and the wider margins would not have any effect on the safety of the ship Decisions made by the commercial depart-ments eg on how to crew the vessels how to monitor vessel fuel consumption or which new equipment to install onboard may also

have a large impact on fuel efficiency and emission levels If shipping company man-agers can nurture a fuel saving culture this could potentially make a difference Since 2007 or 2008 shipping companies have in-deed started to facilitate such organizational changes but educational barriers remain a problemOnshore truck drivers are now offered fuel saving courses but fuel-saving is not a major part of the traditional curriculum in nautical schools or in the commercial education of shipping trainees For good reasons the nau-tical educations have focused on maritime safety but this has caused them to neglect the climate challenge in shipping and the is-sue of fuel saving In fact no single nauticaltext book on maritime fuel savings has yet been published and according to teachers and students in the nautical schools this serves as an educational barrier to ener-gy-efficiency improvements The technical level of education for commercial employees in shipping companies may also hinder im-provements in energy-efficiency Some com-

mercial shipping employees may not have sufficient training to fully see and acknowl-edge the consequences of their decisions on fuel consumption In short it seems that fuel awareness and the educational systems have responded more slowly to the climate chal-lenge than the rise in fuel prices may other-wise suggest

For shipping to bridge energy-efficiency gaps education ndash both nautical and com-mercial ones ndash clearly is an area to set in Here the potential for innovative solutions is both evident and pertinent Changing educational systems and awareness is no easy task bearing in mind the global nature of the shipping industry and international crewing of the world fleet It is clear howev-er that educational upgrading is necessary for shipping to effectively address the cli-mate challenge effectively

Charter parties between ship-operators and shippers state a specific time of arrival for the vessel and in order to avoid claims ships proceed to port accordingly regardless of berth availability Experiments with new more flexible charter parties which allow for slow steaming in case of port congestion have recently been made Shipping compa-nies have generally been enthusiastic about this flexibility but often shippers remain skeptical Lack of trust between shippers which need the loading of their cargoes as soon as possible and shipping companies may be a cause for this discrepancy Even in cases where the savings made from slow-steaming are split between shipping companies and shippers shippers have re-mained skeptical Port queuing systems may have a role to play here

Many ports including some of the major container iron ore coal and grain ports serve ships on ldquofirst-come first-servedrdquo ba-sis Ships only receive their ldquoticketrdquo in the

waiting line upon their arrival at the port Again lack of trust between the ship-oper-ators shippers and the port authorities may explain this phenomenon Moreover port authorities currently do not have incentives to change queuing practices because they cannot gain a share in the fuel savings made from slow-steaming

The problem is particularly strong in the major tramp shipping segments of tanker and dry cargo shipping where vessels act as ldquotaxis of the seardquo serving numerous shippers and rarely calling at the same ports If the fleet from a shipping company only calls at a particular port once a year and the compa-ny has very short-term relations to individ-ual shippers building trustful relationships between the parties remains a major chal-lenge Solving this problem and realizing the full potential of slow steaming will require systemic innovation in shipping and port systems and further studies are required to identify possible solutions

36 CSQ

The Wind turbine industry -

Emerging global innovation networks in Europe and China

The wind turbine industry has developed into a global network encompassing a large amount of diverse actors within innovation production and installation of wind turbines across the globe

By Stine Haakonsson and Julia Kirch Hollitsch Department of Business amp Politics CBS

market for wind energy Chinese actors have turned China as a location into another im-portant lsquohubrsquo in this network This has led to new forms of innovation collaborations between European and Chinese actors The result has been a complete re-configuration of the industry over the past decade In the International Business and Economic Geog-raphy literatures the development of global production networks in which lead-firms be-come orchestrators of dispersed production

enmark has traditionally played a key role as an lsquoinnovation hubrsquo and com-

panies in Denmark remain among the lead firms within the wind turbine industry Re-cently the industry has reorganized from being located predominantly in the Triad regions (mainly in Europe and the US) to becoming a globally dispersed industry This development can partly be explained by de-velopments in international and national politics Due to the growth of the Chinese

activities in globalized value chains is well established theoretically as well as empiri-cally In the globalization process lead firms relocate production activities to low cost lo-cations by off-shoring and through vertical disintegration and outsourcing to specialized suppliers Producers of wind turbines are no exception However until recently the mar-ket and innovation activities remained con-centrated in Europe and US

With the recent focus on global politics for a post-carbon society the market for wind tur-bines has experienced an immense growth and a high degree of market globalization New locations have developed into main markets One of these is China which since 2010 has been the largest market for wind turbines in the world (in capacity installed) The globalization process in the wind tur-bine can be explained by a combination of offshoring of production by European lead firms mainly through foreign direct invest-ment and establishment of domestic lead firms in emerging markets In 2010 there were four Chinese-owned companies among the top-10 producers of wind turbines as compared to 2003 where all firms on this list were from Europe and the US

D

Julia Kirch Hollitsch

Stine Haakonsson

Stine Haakonsson and Julia Kirch Hollitsch from Depart-

ment of Business and Politics CBS are engaged in the

Sino-Danish Center for Research and Education (SDC)

project on Wind Energy in China Both research on the

current restructuring of industries and firms at the glob-

al level (outsourcing off shoring global value chains)

In particular their research is on 1) the restructuring of

innovation and RampD activities into global innovation net-

works(GINs)2)thechangingroleofemergingmarkets

(ChinaIndiaBrazilSouthAfrica)intheseemergingGINs

and 3) technology transfer and capability building related

to renewable energy

Research

37CSQ

by adapting their products to the Chinese market and through cost-out development activities in the new locations primarily China

As a result the wind industry is today highly knowledge-intensive and internationalized Due to increased attention and investments in sustainable transition policies and car-bon-reducing technology China has over the past decade developed into a high prior-ity investment area for wind turbines Also Chinese companies are upgrading technol-ogy and innovation from the global firms through integration into GINs Moreover the production and innovation networks for wind energy become highly complex and consist of many different suppliers of com-ponents (blades gear boxes control systems bearings) resulting in a variety of network linkages among suppliers of different com-ponents and the wind turbine producers

From our empirical data including more than 40 in-depth interviews collected in 2011 and 2012 in the wind turbines indus-tries in China and Denmark we have identi-fied some very interesting patterns We have identified very different characteristics of the GINs established by the Chinese wind tur-bine industry and the European wind tur

Emerging Global Innovation Networks

Innovation processes are also moving be-yond the boundaries of individual compa-nies and national innovation systems Firms engage in cross-border innovation networks spanning different innovation systems which may be national regional or sectorial in or-der to stay competitive in the global econ-omy Chinese lead firms are entering this scene too The result is globally organized networks of interconnected and integrated functions and operations by firms and non-firm organizations engaged in the develop-ment and diffusion of innovations so-called Global Innovation Networks (GINs) Lead firms internationalize innovation through strategies of exploitation global generation of innovation and global techno-scientific collaborations Chinese wind turbine pro-ducers ndash acknowledging their resource and capability deficiency ndash pursue strategies of innovation network integration through strategies of global generation of innovation These firms link up with specialized Europe-an actors such as core component suppliers through partnerships and networks in or-der to tap into the technology of firms from developed countries and upgrade Mean-while European companies internationalize through exploitation strategies for example

bine industry Although Danish and Chinese actors are experiencing a re-organization of activities and establish networks and globa-linnovation strategies the result is very dif-ferent

The industry from Europe and US

The industry from Europe and the US hosts the lead firms in terms of core technology de-velopment Denmark has traditionally played a key role as lsquoinnovation hubrsquo in technology development and global lead firms such as Vestas and Siemens Windpower (previously Danish lsquoBonusrsquo) took its start already in the 1970s The core competences of the Danish wind turbine innovation system are based on large testing facilities and long track records mainly due to the long time-line of experi-ence The wind industry goes 40 years back and therefore Denmark has a good knowl-edge pool within establishing wind farms (aerodynamics minimizing power loss in energy transmission wind mapping and other installation-related technologies)

38 CSQ

that will make it possible to finance the pro-jects ldquoFrom then on our wind turbine pro-jects developed very fastrdquo(Interview Wind Engineer Chinese Academy of Sciences) Thus this law was a milestone for elevating renewables to a strategic position in China or as expressed by a European lead-firm ldquoWhat drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick offrdquo

Until the turn of the millennium Chinarsquos wind energy industry was largely built on donors acquisition of finished wind turbines and licensed technology from European companies spread on a very small scale into the local industry during the mid 1990s Chi-nese wind turbine technology has evolved from imitation reverse engineering and licensing in the 1980-90s combined with assistance from foreign consultants One example is how DANIDA funded a project in 1986 for Goldwind in Xinjiang which imported 13 units of 150 kW lsquoBonusrsquo (now Siemens Wind Power) turbines

To get beyond the stage of pure imitation several policies have been introduced with the intent to upgrade Chinese manufacturers to obtain indigenous innovative capabilities Policy programs were introduced to enhance Chinese companies to develop wind energy subsidizing wind energy RampD expenditures at varied levels over time establishing a re-newable energy fund and through the ldquo863 Wind Programrdquo under the Tenth Five-Year Plan (2001-2005) Local content require-ments were put in place in which develop-ers of wind energy projects were required to source 70 pct of the content in China These policies ndash which essentially forced foreign manufacturers wishing to sell wind turbines to the Chinese market to establish China-based manufacturing facilities ndash were only removed recently (in 2009) One result was that the foreign companies had to up-grade local suppliers of components

Due to the technological complexity many European (and hereby also the Danish) firms are vertically integrated and have most com-ponents produced in-house or with regular specialized suppliers According to these companies the different parts need to be well adjusted to each other to some extent even co-developed in order to enhance effi-ciency and the lifetime of the wind turbine Likewise the European industry has expe-rienced a concentration of actors with the result that there are only relatively few but large manufacturers in Europe (the larg-est ones are Vestas Siemens Gamesa and Enercon) Together these four companies accounted for about 35 of the global mar-ket in 2010 By seeing the wind turbine as an integrated system these lead firms aim at producing lsquothe Rolls Roycersquo model wind turbines These are strong in terms of qual-ity and standards but generally expensive These firms learn cost-out techniques from their engagement with partners in China

The Chinese Wind Turbine Industry

Today the Chinese wind turbine industry is overly competitive It entails more than 80 wind turbine manufacturers and the Chi-nese market boasts the highest growth rates internationally with an average growth rate of 968 percentages annually in the last three years Several large domestic Chinese wind turbine manufacturers have emerged within the last decade Sinovel and Goldwind take the largest share followed by United Pow-er and Ming Yang just to mention some of them As of the end of 2010 these four were A major driver for the development of the Chinese wind energy market has been the establishment of an institutional context as a comprehensive concerted policy frame-work addressing the development of renewa-ble energies This change in the institutional context was first reflected clearly in the 11th 5-year-plan (2006-2010) which explicitly linked environmental sustainability to the key goal of establishing what was called a harmonious socialist society signalling a socially environmentally and economically sustainable economy With the Renewable Energy Law from 2005 the Chinese wind energy industry really took off as it explicitly seeks to ensure that renewable energy pro-jects have an outlet for their output at prices

Technical barriers and the role of GINs for a post-carbon society

Despite high ambitions in terms of devel-oping innovative capabilities Chinese pro-ducers still produce almost exclusively for the Chinese market However Chinese wind turbine manufacturers have recently started an internationalisation process and some are approaching international markets Not least for tapping into new knowledge

Europe (and Denmark in particular) is per-ceived as a main location from which the Chinese companies can learn more A cou-ple of Chinese companies have already set up RampD centres in Denmark European firms have also initiated RampD centres in new lo-cations primarily China and India In other words GINs can be identified

Our research also points towards important barriers for GINs in the wind turbine in-dustry and for approaching a post-carbon global society Most importantly are the technological barriers intellectual property rights quality issues and issues of limited appropriability of knowledge Further the institutional framework remain relevant for displaying how the sector and the emerging GINs are embedded institutionally socially and technologically Whether actors trans-act knowledge technology and know-how through cooperative innovation activities also depends on how core the technology of a given technology is Still as the market grows in China it seems to have matured in Europe because of changing policies on re-newable energy To sustain the position as a global lsquohubrsquo and world leader in wind tech-nologies there is a strong need for support in Europe as this research really shows how fast the Chinese industry is moving One major result is how important networks are for upgrading companies and it seems that Chinese firms perform better in network strategies and manage to tap into relevant knowledge than the European firms

What drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick off rdquoldquoInterview Wind Engineer Chinese Academy of Sciences

39CSQ

Social Enterprise World

ForumNadine Koumlcher from 180Degrees recounts her experience from the

conference on

Rio de Janeiro Brazil 2012

In the numerous panel debates and parallel track discussion it became clear that Impact Investment is a hot topic among both social entrepreneurs and impact investors a diverse group consisting of corporations founda-tions and potential donors However various obstacles impede a harmonious relationship between the twoSocial enterprises face structural challenges to make themselves more appealing to im-pact investors They have to become more transparent and increase their accountability This includes improving their impact assess-ment and reporting tools However despite much discussion no consensus could be formed on how to optimally conduct im-pact assessment One of the most frequently proposed methodologies involves the use

From the 16th to the 18th of October the CBS Sustainability Platform granted me the opportunity to attend the 5th Social Enter-prise World Forum which took place in Rio de Janeiro Brazil This yearly international conference focuses on social enterprises and their effectiveness in solving social challeng-es The overall theme of the 2012 conference hosted by NESsT was ldquoSocial Enterprise Investing for Impactrdquo Thus for three days over 180 speakers and 650 delegates from 30 different countries shared their experiences regarding impact investment and discussed possibilities to attract new investment by both the public and the private sector for so-cial enterprises

of control groups Story-telling has also been men-tioned to be a powerful tool to provide investors with a proof of outcomesSocial investors are willing to accept returns just below the market rate in exchange for a social return However large profits are still expect-ed and many social enter-prises are afraid of being unable to generate them Social enterprises typically operate on a small scale and are not used to undertake large projects with huge sums of investment given to them Many are too small for social investors to be

attractive as costs are similar for small and large investments although larger invest-ments have a higher payoff

Nichole Echert the CEO of NESsT there-fore pointed out that it is necessary to align expectations between impact investors and social entrepreneurs and to be patient in establishing a relationship between the two groups The expected financial return has to be reasonable close to covering the costs of operation and social returns have to be re-ported to investors by use of clearer criteria

By Nadine Koumlcher Director of Branch Development180 Degrees Consulting Limited

ldquoSocial Enterprise Investing for Impactrdquo

Students

40 CSQ

A highlight of the con-ference was definitely the site visit to a social enterprise project in a recently pacified fave-la It brought further insights on the great variety of social enter-prises that exist in Bra-zil and their missions and struggles We visit-ed a community center at which Comitecirc para

Democratizaccedilao da Informaacutetica (CDI) uses technology to fight poverty and to stimulate entrepreneurship CDI has formed a corpo-rate partnership with Coca Cola which in the same building teaches young locals how to write a CV and find a job Talking to the young locals at the center it became apparent that an increased self-confidence and the in-spiration they get from meeting former now employed participants of the project (eg at Coca Cola) is what they valued most of being part of the class

Participating at the conference was definite-ly a unique and valuable experience I would not want to miss as I tremendously improved my knowledge in the field of social enter-prises through attending the numerous pres-entations and discussions and further met so many inspiring social entrepreneurs impact

In addition it has been stressed that the problem is not a shortage of investment capital (even though the government could promote more impact investment by for instance granting tax breaks) but how to deploy it Social entrepreneurs also have to be aware of the different advantages and dis-advantages of the various types of capital It has to fit their process of establishment and it has therefore been suggested that funds and grants are most optimal in the start-up phase to cover such costs as capacity train-ing There is generally a lack of this early stage financial support Following the initial phase strategic philanthropy money would be most appropriate before impact and final-ly equity investment is sought Furthermore new ways of investment which fit the social enterprise world have to be created replac-ing the current situation of trying to fit social enterprises into the current financial world

investors and students with a genuine inter-est in the field

Participating at the conference was definitely a unique and valuable experience rdquo

ldquo

Social Enterprise World Forum 2013 in

Calgary Canada

The TRICO Charitable Foundation in part-nership with the Social Enterprise Council of Canada and the Social Finance Forum has been selected to host the 6th Annual Social Enterprise World Forum SEWF 2013 will take place October 2-4 2013 in Calgary Al-berta The Forum will present the Canadian social enterprise movement with opportuni-ties to engage learn and share on the inter-national stage

SEWF 2013 will be a gathering of over 1000 Canadian and international delegates who are involved in the social enterprise move-ment where the blending of social and fi-nancial values is core to business Attendees will consist of practitioners (from all sec-tors) funders investors supporters elected officials and public servants from around the world

Nadine Koumlcher

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 28: CBS Sustainability Quarterly 2013 #1

28 CSQ

Some of these aspects were also touched upon in the paper lsquoDisrupted Disclosures The Politics of Visibility and Surveil-lance in the Extractive Industriesrsquo by Hans Krause Hansen (with co-author Julie Uldam) which explored the wider field of visibility and surveillance in which contemporary transpar-ency policies are unfolding with examples from the extractive industries Oana Brindusa Albu in her lsquoTransparency and the organizational self everyday politics of identification in Cooperativesrsquo examined the paradoxical effects of values and practices of transparency on collective identity formation pro-cesses drawing upon her ongoing multi-sited fieldwork in co-operatives Under the heading of lsquoThe Improbability of Secrecyrsquo Mark Fenster analyzed the intersections of secrecy and trans-parency with examples from the US government and its efforts to control information which according to the author does not necessarily stop the flow of information Finally Mikkel Fly-verbom and Christina Garsten examined lsquoThe sway of (big) data ndash calculations and advocacy in the name of transparencyrsquo focusing on the operations of data-based forms of corporate lsquotransparency evangelismrsquo and advocacy through revelation including examples from Center for Global Development and Google

In all the workshop was highly successful in investigating not only the historical and mythical foundations of transparency but also the different practices and forms of transparency that currently shape organizations and a wide variety of issue areas It also provided a reminder of the usefulness of investigating a concept of transparency in relationship to a host of other con-cepts such as secrecy myth gossip blame surveillance visi-bility identity information and knowledge The organizers of the workshop wish to thank all workshop participants for their valuable contributions and the CBS Sustainability Platform and ICM for their support

Hans Krause Hansen

Mikkel Flyverbom

Oana Brindusa Albu

ASSOCIATE PROFESSORPHD (ICM)

ASSOCIATE PROFESSORPHD (ICM)

PHD FELLOW (ICM)

29CSQ

Louise Lyngfeldt Gorm Hansen is a PhD Fellow at the Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) She has a back-ground in Chinese Studies from Copenhagen University (BA) the Asian Studies Program at CBS (BSc) and in International Business Stud-ies and Sustainable Business (MSc) from CBS

The aim of her cross-disciplinary PhD project is to explore how the Chinese hydropower sector works with environmental sustainability and more particularly how the concept is understood and performed in the planning phase of a major dam project in the southwestern Chinese province of Yunnan

The aim of the project is to gain a deeper under-standing of how Chinese firms in the renewable energy sector such as hydropower companies understand and value sustainability as well as how such firms tackle the increasing pressure to deliver socially and environmentally balanced solutions to one of Chinarsquos major challenges lowering CO2 emissions in a time with rapidly rising water and energy demands Theoretically the project draws on - and aims to contribute to ndash a combination of Asian Studies and Science and Technology Studies

PHD FocusLouise Lyngfeldt Gorm Hansen

HYDROPOWER

SUSTAINABILITY

30 CSQ

HYDROPOWER

SUSTAINABILITY IN

CHINAy PhD project combines two of my main research interests China and

environmental sustainability I have studied China for a number of years mainly because of an interest in how the Chinese view sus-tainable development So since finishing my masters I have known that I wanted to study how China plan to tackle a sustainable tran-sition in the years to come I saw my chance when CBS announced PhD scholarships in

DanishEuropean-Chinese social science research in collaboration with the newly es-tablished Sino-Danish Center for Education and Research (SDC) and started my PhD in October 2011My PhD project focuses on the Chinese energy sector more specifically the rapidly growing part of the energy sector engaged in renewable energy Here I examine Chinarsquos second largest source of electricity gene-

eration hydropower In recent years China has become increasingly focused on reduc-ing CO2 emissions While some countries such as the US and Australia are decommis-sioning hydropower dams China is looking to large-scale hydropower construction as one of the solutions to a future clean energy supply This means that hydropower devel-opment plays a central role in Chinarsquos sus-tainable transition

However utilization of hydropower is con-troversial not least in China and has met increasing resistance in recent years particu-larly from Chinese and international NGOs the media as well as the scientific commu-nity Critique is most often focused on how or if social and environmental sustainability can be ensured in such large scale projects as the social and environmental impacts of large scale hydropower development are very complex and difficult to measure More gen-erally the viability of relying on hydropow-er as a future source of energy is also being questioned One of the major concerns here is the overarching issue of climate change ie glaciers shrinking and yearly water runoff decreasing This means less stable water flow for hydropower and less water for other pur-poses such as agriculture water supply for down-stream countries etc

By Louise Lyngfeldt Gorm Hansen Asia Research Centre Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) ndash sinodanishcenterdk

M

Picture from SinoHydro promotion material 2011

Research

31CSQ

In contrast to for example the wind power sector in China in which many foreign com-panies have invested the hydropower sector is dominated by a few large state-owned en-terprises Our knowledge of Chinese state-owned enterprises is still limited and there-fore my PhD project is also part of a larger research project at the Asia Research Centre with focus on Chinese state-owned enter-prises and the reform of the public sector in China

In combining these interests my PhD exam-ines how Chinese state-owned enterprises in the hydropower sector tackle the demand to expand hydropower development to help reduce Chinarsquos CO2 emissions while be-ing under increasing pressure to deliver on sustainability principles in the planning and execution of large scale hydropower pro-jects The pressure comes mainly from NGO organizations the media and the scientific community both at home and from abroad I am conducting a case study focused on a specific river in south-western China which has ndash until now ndash not been fully developed for hydropower and the plans for addition-al hydropower dams on the river are still undergoing assessments The project has continually stalled due to disagreements between Chinese government officials at all levels NGOs the media the increasingly deregulated but still state-owned Chinese hydropower companies and the scientif-ic community However the project has very recently been reopened and so will go through another round of assessments in the near future The case is an excellent example of the complexity of hydropower develop-ment decisions in China but it also highlights some of the social and environmental conse-quences of the global push to decrease CO2 emissions

China plays and will continue to play an increasingly important role globally in the years to come However the country also fac-es enormous challenges - not least regarding the environment These challenges also affect economies in Western Europe - for better or worse My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective so

that we here in Europe and in Denmark can more knowledgably and actively engage with China to help solve some of these difficult challenges that eventually affect us all In do-ing this I contribute to gain a better under-standing of the Chinese perspective on envi-ronmental sustainability that can be of use to companies wanting to engage in the Chinese renewable energy sector

My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective rdquoldquo

Picture of the case-river taken by the author in 2012

32 CSQ

FROM BLUEPRINT TO PRACTICE

ENERGY EFFICIENT CONSTRUCTION

By postdoc researcher Satu Reijonen Department of Organization CBS

In the EU almost one third of CO2 emis-sions are attributed to energy used in the construction and use of buildings (FIEC

2007) It is therefore not surprising that the construction sector has recently been subjected to a substantial amount of policy measures to combat its negative effects on climate change In Denmark the state has posed new thresholds for the energy efficien-cy of new buildings including a plan for con-tinuous improvement in the area This far the industry has responded well to these stricter performance requirements In the future re-quirements will rise to levels that are not that easily achieved in the coming years build-ings will have to use 25 less energy than in year 2008 How can these ambitious goals become business as usual

One of the most discussed ways besides add-on technologies such as windmills and solar panels to enhance the energy efficiency of a building is through an energy efficient phys-ical design In practice this means reduction of energy used for heating cooling down and lighting of the building through an optimal orientation and dimensioning of the build-ing

Integrated energy design contrary to add-on technologies can be achieved on a rath-er modest additional budget This should be good news for the sector that today is eco-nomically pressed Indeed today many low energy building projects claim to use the in-tegrated energy design method (IED) when seeking to meet the most ambitious energy related goals In this commentary I wish to discuss some challenges related to the imple-mentation of this design tool

The integrated energy design method sug-gests that one of the main problems in not achieving energy efficiency is that energy related concerns become integrated into the design process too late The method consists of two elements the first of which addresses the need to bring in energy related knowl-edge throughout the design process It sug-gests that design teams ought to be multidis-ciplinary and that architects engineers and experts should work together either co-lo-cated or in a series of workshops Further-more it suggests systematizing energy quali-ty follow-ups into the design process This is all very relevant and inspiring

Oddly enough a closer look on the actual design practices reveals that few seem to ac-tually follow the method of integrated energy design to the point This poses an interest-ing question about the challenges related to the use of such management technologies as vehicles for increased energy efficiency in construction Maybe it is about time practi-tioners and researchers ask themselves what are the boundaries of and challenges related to the use of these tools ndash and what else is required for organizing for more energy effi-cient building design processes

A revolution of relations

Integrated energy design points to the need to bring energy related expertise into the de-sign process at an earlier point In order to achieve this cooperative practices between different professional groups are advocated for Historically energy experts have most-ly been used to respond to rather advanced architectural plans Shared workshops and co-localization suggest a change in these business as usual relations But are they pos-sible and what type of changes do they ac-tually imply in order to function as wished

Research

33CSQ

Satu Reijonen is postdoctoral scholar at the Department of Organization at CBS In her on-going research project she investigates how architects and energy engineers two different profes-sions cooperate and coordinate their work regarding energy related ques-tions in construction design The ways in which relations between and roles of these professions become consti-tuted through socio-material arrange-ments are a central topics in her work Besides studies of work Satu has con-ducted research on environmentally friendly products and markets

ABOUT SATU RAIJONEN

The initiation of this type of new working forms is certainly beneficial for energy effi-cient design However for several reasons they are more difficult to make work than one would assume While it may sound rea-sonable it is after all a tall order Integrating energy related practices into an environment where different visions professions and in-terests meet and the divide between what one profession does is clearly and historically demarcated is demanding While architects need to make room for the intervention of energy experts into the creative work energy experts have to become capable of working creatively and relate to and follow the visual and aesthetic cues from architects In order to work these kind of changes in the profes-sional roles and relations have to resonate with the skills and visions of individual work-ers not only management level design strat-egies It is not surprising that organizational change scholars remind us of the possibility of loose coupling from the strategies placed at the management level (March 1981) What integrated energy design suggests is a kind of a revolution in the ways in which both the architects and the energy engineers envision their role and space of mobility

Linear tools in an unlinear design process

Integrated energy design suggests that the energy performance of the emerging build-ing design be followed up at certain points during the design process The method de-picts a rather mechanistic and linear under-standing of a design process consisting of phases within which iteration may occur While energy related issues may be dis-cussed as quality goals during these phases the method places a lot of emphasis on the check ups performed in the transition from one phase to another Design processes how-ever can also be characterized in a different manner unlinear exploratory and whirl wind type of practices where clear cut phases hardly exist (Akrich 1992 Van de Ven et al 1999) This also applies to the architectural design processes where the object of the de-sign is emergent (Yaneva 2009) This entails that the product the building may change in unexpected ways during any day of the de-sign process If this alternative description of the design processes is viable delegating energy related issues to some predetermined check up episodes may strike a false accord and indeed be contradictory with the aim of enhancing coordination and cooperation between professional groups What happens in between the predetermined checkups may very well be where the energy efficiency of the building becomes configured and where the intervention from the energy experts

would come most needed Perhaps this is why the best performing projects do not blindly follow the steps of the IED method Check ups however and no doubt play a role in verifying and making visible the energy performance for partners outside the design team

Integrated energy design as many other sus-tainability standards and guidelines make visible systematize and legitimize the ex-istence of environmental management and sustainability issues in organizations and work processes In this such way tools create awareness and legitimacy for environmental and sustainability issues The integrated en-ergy design method also suggests a possible way of thinking about what type of design practice might help us to achieve the stricter energy requirements of the future It howev-er falls short in becoming the change agent it suggests This is hardly surprising as a meth-od or a standard of any kind should only be seen as a possibility or as an opening for an inquiry of what the practice could be about Reconfiguring a well established practice is hard work and it would be foolish to trust that a design method would achieve it by itself What the method does is to alert us of the more profound changes in the pro-fessional roles and relations that is needed in order to enable the change However the method due to its rather mechanical under-standing of the design process may come to work against its own ambition of integrating energy issues into the design work In its quest for integration the method defines at which points in time the architectural and the engineering project has to be checked for its energy performance This approach may lead to bringing in energy related concerns in some artificially created points in a design process which may additionally compart-mentalize energy related issues from where the design really happens

Integrated energy design as many other sustainability standards and guidelines make visible systematize and legitimize the existence of environmental management and sustainability issues in organizations and work pro-cessesrdquo

ldquoLiteratureAkrich M (1992) The De-Scription of Technical Objects in Shaping Technology Building Society Studies in Soci-otechnical Change eds WE Bijker and J Law The MIT Press Cambridge Massachusetts pp 205-224

FIEC 2007 The impacts of buildings on climate change httpwwwbuildingsplatformeuepbd_publicationdocFIEC_Memo_p2919pdf on 1222008

March JG (1981) Footnotes to Organizational Change Administrative Science Quarterly vol 26 No 4 pp 563-577

Van de Ven A D Polley R Garud and SVenkataraman (1999) The innovation Journey Oxford Oxford Univer-sity Press

Yaneva A (2009) The making of a building A pragmatist approach to Architecture Bern Peter Lang

More about integrated energy design(IED)

httpwwwintendesigncomosloIntendnsfAttachmentsGuideline_Version_2pdf$FILEGuideline_Version_2pdf

34 CSQ

The climate challenge in

shipping

ldquoGlobal shipping faces two major challenges both of which are caused by its reliance on fossil fuelsrdquo

By Reneacute Taudal Poulsen Department of Innovation amp Organizational Economics

RENEacute TAUDAL POULSEN

ASSOCIATE PROFESSOR DEPARTMENT

OF INNOVATION AND ORGANIZATIONAL

ECONOMICS COPENHAGEN BUSINESS

SCHOOL

orecasts show that the shipping indus-tryrsquos CO2 emissions will most likely continue to rise in the next two to

three decades as demand for world sea-borne trade will expand At present global shipping accounts for approximately 33 per cent of global CO2 emissions but this share will most probably increase in the coming years if many onshore industries succeed in their aims of reducing emission levels

At the same time rapidly rising fuel costs put heavy strain on shipping company budg-ets Historically and until very recently fuel costs were only a minor concern for ship-ping companies but now they often exceed 60 per cent of variable operational costs Fuel savings made through energy efficiency improvements thus represent a win-win sce-nario for the shipping industry and for so-ciety at large They simply make good sense for everyone

Despite the strong incentives for fuel sav-ings numerous studies have demonstrated that shipping fails to implement cost-ef-fective measures to reduce fuel consump-tion Fuel-saving technologies are readily available in the market and in many cases pay-back periods are very short (less than a year) Changes in operational habits which require few if any investments also hold a significant potential for fuel savings

Global shipping thus holds several classic examples of energy-efficiency gaps Gaps occur wherever cost-effective measures to improve energy efficiency fail to materialize The causes for energy efficiency gaps have been a favourite research topic within the field of energy economics for decades and economists sociologists and political scien-tists have been able to identify several means to bridge the gaps However within the mar-itime domain energy efficiency gaps and the climate challenge remain neglected issues Legal barriers

Shipsrsquo fuel consumption rises steeply with speed Hence slow-steaming or just minor speed reductions can lower consumption and emission levels significantly Since oil prices started to rise rapidly a few years ago shipping companies have indeed resorted to various slow-steaming practices and com-panies which succeed in this regard have been able to gain competitive advantages In other words actors in the industry are trying to bridge the energy efficiency gap However and in spite of the strong price signals from the rising fuel prices a potential for fuel sav-ing through slow steaming still remains

FNew CBS research project

A new three year research project at CBS under-

taken by Reneacute Taudal Poulsen for the Department

of Innovation and Organizational Economics will

examine the climate issues bringing insights from

energy economics and innovation management

into the field of shipping economics The project

which is financed by The Danish Maritime Fund

runs from 2012 to 2015 The project asks why en-

ergy efficiency gaps continue to occur in shipping

and how shipping companies and the maritime

industry at large can use innovative business

models and process innovation to turn the climate

challenge and the rising fuel costs into a business

opportunity Energy efficiency gaps occur both

in daily operations and when investments in new

vessels are made This article will briefly present

two examples of energy efficiency gaps from

the operational level and some of the preliminary

findings of the project

References

Jaffe AB and RN Stavins 1994 lsquoThe energy efficiency gap What does it meanrsquo Energy Policy 22 (110) 804-10IMO 2009 Second IMO GHG Study 2009 London International Maritime OrganizationMoriarty P amp D Honnery 2012 lsquoEnergy efficiency Lessons from transportrsquo Energy Policy 46 1ndash3Poulsen Reneacute Taudal 2012 lsquoEmissions and energy efficiency - the twin challenges for shippingrsquo Mercator Maritime Innovation Research and Education MarchJune 447-454

Reneacute Taudal Poulsen is Associate Professor at the Department of Innovation and Organizational Eco-nomics at CBS He is also affliated with the Centre for Shipping Economics and Innovation at CBS Reneacute Taudal Poulsen holds a PhD degree in marine environmental history from the University of Southern Denmark and he has worked within the field of maritime business studies for the last seven years He has published in such journals as Fisheries Research Business History and Scandinavian Economic History Review

His current research intersts concern the environmen-tal challenges faced by the global shipping industry and business model innovation in the maritime domain

Research

35CSQ

It is clear that shipping companies cannot fully bridge the energy efficiency gap alone In fact factors beyond the control of in-dividual shipping companies and various structural or legal barriers prevent shipping from fully realizing the slow steaming po-tential

Port congestion remains a world-wide prob-lem and causes ships to spend remarkably long periods inactive Despite the financial crisis and the large drop in shipping freight markets after 2008 many loaded vessels sit at anchor outside ports waiting for berths In some cases they wait for a few hours In other cases for days weeks or even months Instead of waiting the ships could have re-duced speeds and saved fuel And the de-livery and the loading of the cargo in port would not have been delayed in any way However in many cases shipping companies or ship operators cannot reduce speed in spite of port congestion

Educational barriers

Energy efficiency gaps in shipping are also evident when the fuel consumption levels of sister ships are compared Even though the vessels are identical and operate in the same waters studies have shown that their fuel consumption may differ by several Decisions made by the crews onboard and by managers in the onshore organizations clearly influence the level of fuel consump-tion For instance if a captain selects only very small course deviation margins when coding the autopilot of the ship the shiprsquos rudder will move frequently to keep the ship on the exact course all the time This will slow down the ship and cause higher fuel consumption than if the captain had allowed for slightly wider margins and the wider margins would not have any effect on the safety of the ship Decisions made by the commercial depart-ments eg on how to crew the vessels how to monitor vessel fuel consumption or which new equipment to install onboard may also

have a large impact on fuel efficiency and emission levels If shipping company man-agers can nurture a fuel saving culture this could potentially make a difference Since 2007 or 2008 shipping companies have in-deed started to facilitate such organizational changes but educational barriers remain a problemOnshore truck drivers are now offered fuel saving courses but fuel-saving is not a major part of the traditional curriculum in nautical schools or in the commercial education of shipping trainees For good reasons the nau-tical educations have focused on maritime safety but this has caused them to neglect the climate challenge in shipping and the is-sue of fuel saving In fact no single nauticaltext book on maritime fuel savings has yet been published and according to teachers and students in the nautical schools this serves as an educational barrier to ener-gy-efficiency improvements The technical level of education for commercial employees in shipping companies may also hinder im-provements in energy-efficiency Some com-

mercial shipping employees may not have sufficient training to fully see and acknowl-edge the consequences of their decisions on fuel consumption In short it seems that fuel awareness and the educational systems have responded more slowly to the climate chal-lenge than the rise in fuel prices may other-wise suggest

For shipping to bridge energy-efficiency gaps education ndash both nautical and com-mercial ones ndash clearly is an area to set in Here the potential for innovative solutions is both evident and pertinent Changing educational systems and awareness is no easy task bearing in mind the global nature of the shipping industry and international crewing of the world fleet It is clear howev-er that educational upgrading is necessary for shipping to effectively address the cli-mate challenge effectively

Charter parties between ship-operators and shippers state a specific time of arrival for the vessel and in order to avoid claims ships proceed to port accordingly regardless of berth availability Experiments with new more flexible charter parties which allow for slow steaming in case of port congestion have recently been made Shipping compa-nies have generally been enthusiastic about this flexibility but often shippers remain skeptical Lack of trust between shippers which need the loading of their cargoes as soon as possible and shipping companies may be a cause for this discrepancy Even in cases where the savings made from slow-steaming are split between shipping companies and shippers shippers have re-mained skeptical Port queuing systems may have a role to play here

Many ports including some of the major container iron ore coal and grain ports serve ships on ldquofirst-come first-servedrdquo ba-sis Ships only receive their ldquoticketrdquo in the

waiting line upon their arrival at the port Again lack of trust between the ship-oper-ators shippers and the port authorities may explain this phenomenon Moreover port authorities currently do not have incentives to change queuing practices because they cannot gain a share in the fuel savings made from slow-steaming

The problem is particularly strong in the major tramp shipping segments of tanker and dry cargo shipping where vessels act as ldquotaxis of the seardquo serving numerous shippers and rarely calling at the same ports If the fleet from a shipping company only calls at a particular port once a year and the compa-ny has very short-term relations to individ-ual shippers building trustful relationships between the parties remains a major chal-lenge Solving this problem and realizing the full potential of slow steaming will require systemic innovation in shipping and port systems and further studies are required to identify possible solutions

36 CSQ

The Wind turbine industry -

Emerging global innovation networks in Europe and China

The wind turbine industry has developed into a global network encompassing a large amount of diverse actors within innovation production and installation of wind turbines across the globe

By Stine Haakonsson and Julia Kirch Hollitsch Department of Business amp Politics CBS

market for wind energy Chinese actors have turned China as a location into another im-portant lsquohubrsquo in this network This has led to new forms of innovation collaborations between European and Chinese actors The result has been a complete re-configuration of the industry over the past decade In the International Business and Economic Geog-raphy literatures the development of global production networks in which lead-firms be-come orchestrators of dispersed production

enmark has traditionally played a key role as an lsquoinnovation hubrsquo and com-

panies in Denmark remain among the lead firms within the wind turbine industry Re-cently the industry has reorganized from being located predominantly in the Triad regions (mainly in Europe and the US) to becoming a globally dispersed industry This development can partly be explained by de-velopments in international and national politics Due to the growth of the Chinese

activities in globalized value chains is well established theoretically as well as empiri-cally In the globalization process lead firms relocate production activities to low cost lo-cations by off-shoring and through vertical disintegration and outsourcing to specialized suppliers Producers of wind turbines are no exception However until recently the mar-ket and innovation activities remained con-centrated in Europe and US

With the recent focus on global politics for a post-carbon society the market for wind tur-bines has experienced an immense growth and a high degree of market globalization New locations have developed into main markets One of these is China which since 2010 has been the largest market for wind turbines in the world (in capacity installed) The globalization process in the wind tur-bine can be explained by a combination of offshoring of production by European lead firms mainly through foreign direct invest-ment and establishment of domestic lead firms in emerging markets In 2010 there were four Chinese-owned companies among the top-10 producers of wind turbines as compared to 2003 where all firms on this list were from Europe and the US

D

Julia Kirch Hollitsch

Stine Haakonsson

Stine Haakonsson and Julia Kirch Hollitsch from Depart-

ment of Business and Politics CBS are engaged in the

Sino-Danish Center for Research and Education (SDC)

project on Wind Energy in China Both research on the

current restructuring of industries and firms at the glob-

al level (outsourcing off shoring global value chains)

In particular their research is on 1) the restructuring of

innovation and RampD activities into global innovation net-

works(GINs)2)thechangingroleofemergingmarkets

(ChinaIndiaBrazilSouthAfrica)intheseemergingGINs

and 3) technology transfer and capability building related

to renewable energy

Research

37CSQ

by adapting their products to the Chinese market and through cost-out development activities in the new locations primarily China

As a result the wind industry is today highly knowledge-intensive and internationalized Due to increased attention and investments in sustainable transition policies and car-bon-reducing technology China has over the past decade developed into a high prior-ity investment area for wind turbines Also Chinese companies are upgrading technol-ogy and innovation from the global firms through integration into GINs Moreover the production and innovation networks for wind energy become highly complex and consist of many different suppliers of com-ponents (blades gear boxes control systems bearings) resulting in a variety of network linkages among suppliers of different com-ponents and the wind turbine producers

From our empirical data including more than 40 in-depth interviews collected in 2011 and 2012 in the wind turbines indus-tries in China and Denmark we have identi-fied some very interesting patterns We have identified very different characteristics of the GINs established by the Chinese wind tur-bine industry and the European wind tur

Emerging Global Innovation Networks

Innovation processes are also moving be-yond the boundaries of individual compa-nies and national innovation systems Firms engage in cross-border innovation networks spanning different innovation systems which may be national regional or sectorial in or-der to stay competitive in the global econ-omy Chinese lead firms are entering this scene too The result is globally organized networks of interconnected and integrated functions and operations by firms and non-firm organizations engaged in the develop-ment and diffusion of innovations so-called Global Innovation Networks (GINs) Lead firms internationalize innovation through strategies of exploitation global generation of innovation and global techno-scientific collaborations Chinese wind turbine pro-ducers ndash acknowledging their resource and capability deficiency ndash pursue strategies of innovation network integration through strategies of global generation of innovation These firms link up with specialized Europe-an actors such as core component suppliers through partnerships and networks in or-der to tap into the technology of firms from developed countries and upgrade Mean-while European companies internationalize through exploitation strategies for example

bine industry Although Danish and Chinese actors are experiencing a re-organization of activities and establish networks and globa-linnovation strategies the result is very dif-ferent

The industry from Europe and US

The industry from Europe and the US hosts the lead firms in terms of core technology de-velopment Denmark has traditionally played a key role as lsquoinnovation hubrsquo in technology development and global lead firms such as Vestas and Siemens Windpower (previously Danish lsquoBonusrsquo) took its start already in the 1970s The core competences of the Danish wind turbine innovation system are based on large testing facilities and long track records mainly due to the long time-line of experi-ence The wind industry goes 40 years back and therefore Denmark has a good knowl-edge pool within establishing wind farms (aerodynamics minimizing power loss in energy transmission wind mapping and other installation-related technologies)

38 CSQ

that will make it possible to finance the pro-jects ldquoFrom then on our wind turbine pro-jects developed very fastrdquo(Interview Wind Engineer Chinese Academy of Sciences) Thus this law was a milestone for elevating renewables to a strategic position in China or as expressed by a European lead-firm ldquoWhat drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick offrdquo

Until the turn of the millennium Chinarsquos wind energy industry was largely built on donors acquisition of finished wind turbines and licensed technology from European companies spread on a very small scale into the local industry during the mid 1990s Chi-nese wind turbine technology has evolved from imitation reverse engineering and licensing in the 1980-90s combined with assistance from foreign consultants One example is how DANIDA funded a project in 1986 for Goldwind in Xinjiang which imported 13 units of 150 kW lsquoBonusrsquo (now Siemens Wind Power) turbines

To get beyond the stage of pure imitation several policies have been introduced with the intent to upgrade Chinese manufacturers to obtain indigenous innovative capabilities Policy programs were introduced to enhance Chinese companies to develop wind energy subsidizing wind energy RampD expenditures at varied levels over time establishing a re-newable energy fund and through the ldquo863 Wind Programrdquo under the Tenth Five-Year Plan (2001-2005) Local content require-ments were put in place in which develop-ers of wind energy projects were required to source 70 pct of the content in China These policies ndash which essentially forced foreign manufacturers wishing to sell wind turbines to the Chinese market to establish China-based manufacturing facilities ndash were only removed recently (in 2009) One result was that the foreign companies had to up-grade local suppliers of components

Due to the technological complexity many European (and hereby also the Danish) firms are vertically integrated and have most com-ponents produced in-house or with regular specialized suppliers According to these companies the different parts need to be well adjusted to each other to some extent even co-developed in order to enhance effi-ciency and the lifetime of the wind turbine Likewise the European industry has expe-rienced a concentration of actors with the result that there are only relatively few but large manufacturers in Europe (the larg-est ones are Vestas Siemens Gamesa and Enercon) Together these four companies accounted for about 35 of the global mar-ket in 2010 By seeing the wind turbine as an integrated system these lead firms aim at producing lsquothe Rolls Roycersquo model wind turbines These are strong in terms of qual-ity and standards but generally expensive These firms learn cost-out techniques from their engagement with partners in China

The Chinese Wind Turbine Industry

Today the Chinese wind turbine industry is overly competitive It entails more than 80 wind turbine manufacturers and the Chi-nese market boasts the highest growth rates internationally with an average growth rate of 968 percentages annually in the last three years Several large domestic Chinese wind turbine manufacturers have emerged within the last decade Sinovel and Goldwind take the largest share followed by United Pow-er and Ming Yang just to mention some of them As of the end of 2010 these four were A major driver for the development of the Chinese wind energy market has been the establishment of an institutional context as a comprehensive concerted policy frame-work addressing the development of renewa-ble energies This change in the institutional context was first reflected clearly in the 11th 5-year-plan (2006-2010) which explicitly linked environmental sustainability to the key goal of establishing what was called a harmonious socialist society signalling a socially environmentally and economically sustainable economy With the Renewable Energy Law from 2005 the Chinese wind energy industry really took off as it explicitly seeks to ensure that renewable energy pro-jects have an outlet for their output at prices

Technical barriers and the role of GINs for a post-carbon society

Despite high ambitions in terms of devel-oping innovative capabilities Chinese pro-ducers still produce almost exclusively for the Chinese market However Chinese wind turbine manufacturers have recently started an internationalisation process and some are approaching international markets Not least for tapping into new knowledge

Europe (and Denmark in particular) is per-ceived as a main location from which the Chinese companies can learn more A cou-ple of Chinese companies have already set up RampD centres in Denmark European firms have also initiated RampD centres in new lo-cations primarily China and India In other words GINs can be identified

Our research also points towards important barriers for GINs in the wind turbine in-dustry and for approaching a post-carbon global society Most importantly are the technological barriers intellectual property rights quality issues and issues of limited appropriability of knowledge Further the institutional framework remain relevant for displaying how the sector and the emerging GINs are embedded institutionally socially and technologically Whether actors trans-act knowledge technology and know-how through cooperative innovation activities also depends on how core the technology of a given technology is Still as the market grows in China it seems to have matured in Europe because of changing policies on re-newable energy To sustain the position as a global lsquohubrsquo and world leader in wind tech-nologies there is a strong need for support in Europe as this research really shows how fast the Chinese industry is moving One major result is how important networks are for upgrading companies and it seems that Chinese firms perform better in network strategies and manage to tap into relevant knowledge than the European firms

What drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick off rdquoldquoInterview Wind Engineer Chinese Academy of Sciences

39CSQ

Social Enterprise World

ForumNadine Koumlcher from 180Degrees recounts her experience from the

conference on

Rio de Janeiro Brazil 2012

In the numerous panel debates and parallel track discussion it became clear that Impact Investment is a hot topic among both social entrepreneurs and impact investors a diverse group consisting of corporations founda-tions and potential donors However various obstacles impede a harmonious relationship between the twoSocial enterprises face structural challenges to make themselves more appealing to im-pact investors They have to become more transparent and increase their accountability This includes improving their impact assess-ment and reporting tools However despite much discussion no consensus could be formed on how to optimally conduct im-pact assessment One of the most frequently proposed methodologies involves the use

From the 16th to the 18th of October the CBS Sustainability Platform granted me the opportunity to attend the 5th Social Enter-prise World Forum which took place in Rio de Janeiro Brazil This yearly international conference focuses on social enterprises and their effectiveness in solving social challeng-es The overall theme of the 2012 conference hosted by NESsT was ldquoSocial Enterprise Investing for Impactrdquo Thus for three days over 180 speakers and 650 delegates from 30 different countries shared their experiences regarding impact investment and discussed possibilities to attract new investment by both the public and the private sector for so-cial enterprises

of control groups Story-telling has also been men-tioned to be a powerful tool to provide investors with a proof of outcomesSocial investors are willing to accept returns just below the market rate in exchange for a social return However large profits are still expect-ed and many social enter-prises are afraid of being unable to generate them Social enterprises typically operate on a small scale and are not used to undertake large projects with huge sums of investment given to them Many are too small for social investors to be

attractive as costs are similar for small and large investments although larger invest-ments have a higher payoff

Nichole Echert the CEO of NESsT there-fore pointed out that it is necessary to align expectations between impact investors and social entrepreneurs and to be patient in establishing a relationship between the two groups The expected financial return has to be reasonable close to covering the costs of operation and social returns have to be re-ported to investors by use of clearer criteria

By Nadine Koumlcher Director of Branch Development180 Degrees Consulting Limited

ldquoSocial Enterprise Investing for Impactrdquo

Students

40 CSQ

A highlight of the con-ference was definitely the site visit to a social enterprise project in a recently pacified fave-la It brought further insights on the great variety of social enter-prises that exist in Bra-zil and their missions and struggles We visit-ed a community center at which Comitecirc para

Democratizaccedilao da Informaacutetica (CDI) uses technology to fight poverty and to stimulate entrepreneurship CDI has formed a corpo-rate partnership with Coca Cola which in the same building teaches young locals how to write a CV and find a job Talking to the young locals at the center it became apparent that an increased self-confidence and the in-spiration they get from meeting former now employed participants of the project (eg at Coca Cola) is what they valued most of being part of the class

Participating at the conference was definite-ly a unique and valuable experience I would not want to miss as I tremendously improved my knowledge in the field of social enter-prises through attending the numerous pres-entations and discussions and further met so many inspiring social entrepreneurs impact

In addition it has been stressed that the problem is not a shortage of investment capital (even though the government could promote more impact investment by for instance granting tax breaks) but how to deploy it Social entrepreneurs also have to be aware of the different advantages and dis-advantages of the various types of capital It has to fit their process of establishment and it has therefore been suggested that funds and grants are most optimal in the start-up phase to cover such costs as capacity train-ing There is generally a lack of this early stage financial support Following the initial phase strategic philanthropy money would be most appropriate before impact and final-ly equity investment is sought Furthermore new ways of investment which fit the social enterprise world have to be created replac-ing the current situation of trying to fit social enterprises into the current financial world

investors and students with a genuine inter-est in the field

Participating at the conference was definitely a unique and valuable experience rdquo

ldquo

Social Enterprise World Forum 2013 in

Calgary Canada

The TRICO Charitable Foundation in part-nership with the Social Enterprise Council of Canada and the Social Finance Forum has been selected to host the 6th Annual Social Enterprise World Forum SEWF 2013 will take place October 2-4 2013 in Calgary Al-berta The Forum will present the Canadian social enterprise movement with opportuni-ties to engage learn and share on the inter-national stage

SEWF 2013 will be a gathering of over 1000 Canadian and international delegates who are involved in the social enterprise move-ment where the blending of social and fi-nancial values is core to business Attendees will consist of practitioners (from all sec-tors) funders investors supporters elected officials and public servants from around the world

Nadine Koumlcher

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 29: CBS Sustainability Quarterly 2013 #1

29CSQ

Louise Lyngfeldt Gorm Hansen is a PhD Fellow at the Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) She has a back-ground in Chinese Studies from Copenhagen University (BA) the Asian Studies Program at CBS (BSc) and in International Business Stud-ies and Sustainable Business (MSc) from CBS

The aim of her cross-disciplinary PhD project is to explore how the Chinese hydropower sector works with environmental sustainability and more particularly how the concept is understood and performed in the planning phase of a major dam project in the southwestern Chinese province of Yunnan

The aim of the project is to gain a deeper under-standing of how Chinese firms in the renewable energy sector such as hydropower companies understand and value sustainability as well as how such firms tackle the increasing pressure to deliver socially and environmentally balanced solutions to one of Chinarsquos major challenges lowering CO2 emissions in a time with rapidly rising water and energy demands Theoretically the project draws on - and aims to contribute to ndash a combination of Asian Studies and Science and Technology Studies

PHD FocusLouise Lyngfeldt Gorm Hansen

HYDROPOWER

SUSTAINABILITY

30 CSQ

HYDROPOWER

SUSTAINABILITY IN

CHINAy PhD project combines two of my main research interests China and

environmental sustainability I have studied China for a number of years mainly because of an interest in how the Chinese view sus-tainable development So since finishing my masters I have known that I wanted to study how China plan to tackle a sustainable tran-sition in the years to come I saw my chance when CBS announced PhD scholarships in

DanishEuropean-Chinese social science research in collaboration with the newly es-tablished Sino-Danish Center for Education and Research (SDC) and started my PhD in October 2011My PhD project focuses on the Chinese energy sector more specifically the rapidly growing part of the energy sector engaged in renewable energy Here I examine Chinarsquos second largest source of electricity gene-

eration hydropower In recent years China has become increasingly focused on reduc-ing CO2 emissions While some countries such as the US and Australia are decommis-sioning hydropower dams China is looking to large-scale hydropower construction as one of the solutions to a future clean energy supply This means that hydropower devel-opment plays a central role in Chinarsquos sus-tainable transition

However utilization of hydropower is con-troversial not least in China and has met increasing resistance in recent years particu-larly from Chinese and international NGOs the media as well as the scientific commu-nity Critique is most often focused on how or if social and environmental sustainability can be ensured in such large scale projects as the social and environmental impacts of large scale hydropower development are very complex and difficult to measure More gen-erally the viability of relying on hydropow-er as a future source of energy is also being questioned One of the major concerns here is the overarching issue of climate change ie glaciers shrinking and yearly water runoff decreasing This means less stable water flow for hydropower and less water for other pur-poses such as agriculture water supply for down-stream countries etc

By Louise Lyngfeldt Gorm Hansen Asia Research Centre Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) ndash sinodanishcenterdk

M

Picture from SinoHydro promotion material 2011

Research

31CSQ

In contrast to for example the wind power sector in China in which many foreign com-panies have invested the hydropower sector is dominated by a few large state-owned en-terprises Our knowledge of Chinese state-owned enterprises is still limited and there-fore my PhD project is also part of a larger research project at the Asia Research Centre with focus on Chinese state-owned enter-prises and the reform of the public sector in China

In combining these interests my PhD exam-ines how Chinese state-owned enterprises in the hydropower sector tackle the demand to expand hydropower development to help reduce Chinarsquos CO2 emissions while be-ing under increasing pressure to deliver on sustainability principles in the planning and execution of large scale hydropower pro-jects The pressure comes mainly from NGO organizations the media and the scientific community both at home and from abroad I am conducting a case study focused on a specific river in south-western China which has ndash until now ndash not been fully developed for hydropower and the plans for addition-al hydropower dams on the river are still undergoing assessments The project has continually stalled due to disagreements between Chinese government officials at all levels NGOs the media the increasingly deregulated but still state-owned Chinese hydropower companies and the scientif-ic community However the project has very recently been reopened and so will go through another round of assessments in the near future The case is an excellent example of the complexity of hydropower develop-ment decisions in China but it also highlights some of the social and environmental conse-quences of the global push to decrease CO2 emissions

China plays and will continue to play an increasingly important role globally in the years to come However the country also fac-es enormous challenges - not least regarding the environment These challenges also affect economies in Western Europe - for better or worse My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective so

that we here in Europe and in Denmark can more knowledgably and actively engage with China to help solve some of these difficult challenges that eventually affect us all In do-ing this I contribute to gain a better under-standing of the Chinese perspective on envi-ronmental sustainability that can be of use to companies wanting to engage in the Chinese renewable energy sector

My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective rdquoldquo

Picture of the case-river taken by the author in 2012

32 CSQ

FROM BLUEPRINT TO PRACTICE

ENERGY EFFICIENT CONSTRUCTION

By postdoc researcher Satu Reijonen Department of Organization CBS

In the EU almost one third of CO2 emis-sions are attributed to energy used in the construction and use of buildings (FIEC

2007) It is therefore not surprising that the construction sector has recently been subjected to a substantial amount of policy measures to combat its negative effects on climate change In Denmark the state has posed new thresholds for the energy efficien-cy of new buildings including a plan for con-tinuous improvement in the area This far the industry has responded well to these stricter performance requirements In the future re-quirements will rise to levels that are not that easily achieved in the coming years build-ings will have to use 25 less energy than in year 2008 How can these ambitious goals become business as usual

One of the most discussed ways besides add-on technologies such as windmills and solar panels to enhance the energy efficiency of a building is through an energy efficient phys-ical design In practice this means reduction of energy used for heating cooling down and lighting of the building through an optimal orientation and dimensioning of the build-ing

Integrated energy design contrary to add-on technologies can be achieved on a rath-er modest additional budget This should be good news for the sector that today is eco-nomically pressed Indeed today many low energy building projects claim to use the in-tegrated energy design method (IED) when seeking to meet the most ambitious energy related goals In this commentary I wish to discuss some challenges related to the imple-mentation of this design tool

The integrated energy design method sug-gests that one of the main problems in not achieving energy efficiency is that energy related concerns become integrated into the design process too late The method consists of two elements the first of which addresses the need to bring in energy related knowl-edge throughout the design process It sug-gests that design teams ought to be multidis-ciplinary and that architects engineers and experts should work together either co-lo-cated or in a series of workshops Further-more it suggests systematizing energy quali-ty follow-ups into the design process This is all very relevant and inspiring

Oddly enough a closer look on the actual design practices reveals that few seem to ac-tually follow the method of integrated energy design to the point This poses an interest-ing question about the challenges related to the use of such management technologies as vehicles for increased energy efficiency in construction Maybe it is about time practi-tioners and researchers ask themselves what are the boundaries of and challenges related to the use of these tools ndash and what else is required for organizing for more energy effi-cient building design processes

A revolution of relations

Integrated energy design points to the need to bring energy related expertise into the de-sign process at an earlier point In order to achieve this cooperative practices between different professional groups are advocated for Historically energy experts have most-ly been used to respond to rather advanced architectural plans Shared workshops and co-localization suggest a change in these business as usual relations But are they pos-sible and what type of changes do they ac-tually imply in order to function as wished

Research

33CSQ

Satu Reijonen is postdoctoral scholar at the Department of Organization at CBS In her on-going research project she investigates how architects and energy engineers two different profes-sions cooperate and coordinate their work regarding energy related ques-tions in construction design The ways in which relations between and roles of these professions become consti-tuted through socio-material arrange-ments are a central topics in her work Besides studies of work Satu has con-ducted research on environmentally friendly products and markets

ABOUT SATU RAIJONEN

The initiation of this type of new working forms is certainly beneficial for energy effi-cient design However for several reasons they are more difficult to make work than one would assume While it may sound rea-sonable it is after all a tall order Integrating energy related practices into an environment where different visions professions and in-terests meet and the divide between what one profession does is clearly and historically demarcated is demanding While architects need to make room for the intervention of energy experts into the creative work energy experts have to become capable of working creatively and relate to and follow the visual and aesthetic cues from architects In order to work these kind of changes in the profes-sional roles and relations have to resonate with the skills and visions of individual work-ers not only management level design strat-egies It is not surprising that organizational change scholars remind us of the possibility of loose coupling from the strategies placed at the management level (March 1981) What integrated energy design suggests is a kind of a revolution in the ways in which both the architects and the energy engineers envision their role and space of mobility

Linear tools in an unlinear design process

Integrated energy design suggests that the energy performance of the emerging build-ing design be followed up at certain points during the design process The method de-picts a rather mechanistic and linear under-standing of a design process consisting of phases within which iteration may occur While energy related issues may be dis-cussed as quality goals during these phases the method places a lot of emphasis on the check ups performed in the transition from one phase to another Design processes how-ever can also be characterized in a different manner unlinear exploratory and whirl wind type of practices where clear cut phases hardly exist (Akrich 1992 Van de Ven et al 1999) This also applies to the architectural design processes where the object of the de-sign is emergent (Yaneva 2009) This entails that the product the building may change in unexpected ways during any day of the de-sign process If this alternative description of the design processes is viable delegating energy related issues to some predetermined check up episodes may strike a false accord and indeed be contradictory with the aim of enhancing coordination and cooperation between professional groups What happens in between the predetermined checkups may very well be where the energy efficiency of the building becomes configured and where the intervention from the energy experts

would come most needed Perhaps this is why the best performing projects do not blindly follow the steps of the IED method Check ups however and no doubt play a role in verifying and making visible the energy performance for partners outside the design team

Integrated energy design as many other sus-tainability standards and guidelines make visible systematize and legitimize the ex-istence of environmental management and sustainability issues in organizations and work processes In this such way tools create awareness and legitimacy for environmental and sustainability issues The integrated en-ergy design method also suggests a possible way of thinking about what type of design practice might help us to achieve the stricter energy requirements of the future It howev-er falls short in becoming the change agent it suggests This is hardly surprising as a meth-od or a standard of any kind should only be seen as a possibility or as an opening for an inquiry of what the practice could be about Reconfiguring a well established practice is hard work and it would be foolish to trust that a design method would achieve it by itself What the method does is to alert us of the more profound changes in the pro-fessional roles and relations that is needed in order to enable the change However the method due to its rather mechanical under-standing of the design process may come to work against its own ambition of integrating energy issues into the design work In its quest for integration the method defines at which points in time the architectural and the engineering project has to be checked for its energy performance This approach may lead to bringing in energy related concerns in some artificially created points in a design process which may additionally compart-mentalize energy related issues from where the design really happens

Integrated energy design as many other sustainability standards and guidelines make visible systematize and legitimize the existence of environmental management and sustainability issues in organizations and work pro-cessesrdquo

ldquoLiteratureAkrich M (1992) The De-Scription of Technical Objects in Shaping Technology Building Society Studies in Soci-otechnical Change eds WE Bijker and J Law The MIT Press Cambridge Massachusetts pp 205-224

FIEC 2007 The impacts of buildings on climate change httpwwwbuildingsplatformeuepbd_publicationdocFIEC_Memo_p2919pdf on 1222008

March JG (1981) Footnotes to Organizational Change Administrative Science Quarterly vol 26 No 4 pp 563-577

Van de Ven A D Polley R Garud and SVenkataraman (1999) The innovation Journey Oxford Oxford Univer-sity Press

Yaneva A (2009) The making of a building A pragmatist approach to Architecture Bern Peter Lang

More about integrated energy design(IED)

httpwwwintendesigncomosloIntendnsfAttachmentsGuideline_Version_2pdf$FILEGuideline_Version_2pdf

34 CSQ

The climate challenge in

shipping

ldquoGlobal shipping faces two major challenges both of which are caused by its reliance on fossil fuelsrdquo

By Reneacute Taudal Poulsen Department of Innovation amp Organizational Economics

RENEacute TAUDAL POULSEN

ASSOCIATE PROFESSOR DEPARTMENT

OF INNOVATION AND ORGANIZATIONAL

ECONOMICS COPENHAGEN BUSINESS

SCHOOL

orecasts show that the shipping indus-tryrsquos CO2 emissions will most likely continue to rise in the next two to

three decades as demand for world sea-borne trade will expand At present global shipping accounts for approximately 33 per cent of global CO2 emissions but this share will most probably increase in the coming years if many onshore industries succeed in their aims of reducing emission levels

At the same time rapidly rising fuel costs put heavy strain on shipping company budg-ets Historically and until very recently fuel costs were only a minor concern for ship-ping companies but now they often exceed 60 per cent of variable operational costs Fuel savings made through energy efficiency improvements thus represent a win-win sce-nario for the shipping industry and for so-ciety at large They simply make good sense for everyone

Despite the strong incentives for fuel sav-ings numerous studies have demonstrated that shipping fails to implement cost-ef-fective measures to reduce fuel consump-tion Fuel-saving technologies are readily available in the market and in many cases pay-back periods are very short (less than a year) Changes in operational habits which require few if any investments also hold a significant potential for fuel savings

Global shipping thus holds several classic examples of energy-efficiency gaps Gaps occur wherever cost-effective measures to improve energy efficiency fail to materialize The causes for energy efficiency gaps have been a favourite research topic within the field of energy economics for decades and economists sociologists and political scien-tists have been able to identify several means to bridge the gaps However within the mar-itime domain energy efficiency gaps and the climate challenge remain neglected issues Legal barriers

Shipsrsquo fuel consumption rises steeply with speed Hence slow-steaming or just minor speed reductions can lower consumption and emission levels significantly Since oil prices started to rise rapidly a few years ago shipping companies have indeed resorted to various slow-steaming practices and com-panies which succeed in this regard have been able to gain competitive advantages In other words actors in the industry are trying to bridge the energy efficiency gap However and in spite of the strong price signals from the rising fuel prices a potential for fuel sav-ing through slow steaming still remains

FNew CBS research project

A new three year research project at CBS under-

taken by Reneacute Taudal Poulsen for the Department

of Innovation and Organizational Economics will

examine the climate issues bringing insights from

energy economics and innovation management

into the field of shipping economics The project

which is financed by The Danish Maritime Fund

runs from 2012 to 2015 The project asks why en-

ergy efficiency gaps continue to occur in shipping

and how shipping companies and the maritime

industry at large can use innovative business

models and process innovation to turn the climate

challenge and the rising fuel costs into a business

opportunity Energy efficiency gaps occur both

in daily operations and when investments in new

vessels are made This article will briefly present

two examples of energy efficiency gaps from

the operational level and some of the preliminary

findings of the project

References

Jaffe AB and RN Stavins 1994 lsquoThe energy efficiency gap What does it meanrsquo Energy Policy 22 (110) 804-10IMO 2009 Second IMO GHG Study 2009 London International Maritime OrganizationMoriarty P amp D Honnery 2012 lsquoEnergy efficiency Lessons from transportrsquo Energy Policy 46 1ndash3Poulsen Reneacute Taudal 2012 lsquoEmissions and energy efficiency - the twin challenges for shippingrsquo Mercator Maritime Innovation Research and Education MarchJune 447-454

Reneacute Taudal Poulsen is Associate Professor at the Department of Innovation and Organizational Eco-nomics at CBS He is also affliated with the Centre for Shipping Economics and Innovation at CBS Reneacute Taudal Poulsen holds a PhD degree in marine environmental history from the University of Southern Denmark and he has worked within the field of maritime business studies for the last seven years He has published in such journals as Fisheries Research Business History and Scandinavian Economic History Review

His current research intersts concern the environmen-tal challenges faced by the global shipping industry and business model innovation in the maritime domain

Research

35CSQ

It is clear that shipping companies cannot fully bridge the energy efficiency gap alone In fact factors beyond the control of in-dividual shipping companies and various structural or legal barriers prevent shipping from fully realizing the slow steaming po-tential

Port congestion remains a world-wide prob-lem and causes ships to spend remarkably long periods inactive Despite the financial crisis and the large drop in shipping freight markets after 2008 many loaded vessels sit at anchor outside ports waiting for berths In some cases they wait for a few hours In other cases for days weeks or even months Instead of waiting the ships could have re-duced speeds and saved fuel And the de-livery and the loading of the cargo in port would not have been delayed in any way However in many cases shipping companies or ship operators cannot reduce speed in spite of port congestion

Educational barriers

Energy efficiency gaps in shipping are also evident when the fuel consumption levels of sister ships are compared Even though the vessels are identical and operate in the same waters studies have shown that their fuel consumption may differ by several Decisions made by the crews onboard and by managers in the onshore organizations clearly influence the level of fuel consump-tion For instance if a captain selects only very small course deviation margins when coding the autopilot of the ship the shiprsquos rudder will move frequently to keep the ship on the exact course all the time This will slow down the ship and cause higher fuel consumption than if the captain had allowed for slightly wider margins and the wider margins would not have any effect on the safety of the ship Decisions made by the commercial depart-ments eg on how to crew the vessels how to monitor vessel fuel consumption or which new equipment to install onboard may also

have a large impact on fuel efficiency and emission levels If shipping company man-agers can nurture a fuel saving culture this could potentially make a difference Since 2007 or 2008 shipping companies have in-deed started to facilitate such organizational changes but educational barriers remain a problemOnshore truck drivers are now offered fuel saving courses but fuel-saving is not a major part of the traditional curriculum in nautical schools or in the commercial education of shipping trainees For good reasons the nau-tical educations have focused on maritime safety but this has caused them to neglect the climate challenge in shipping and the is-sue of fuel saving In fact no single nauticaltext book on maritime fuel savings has yet been published and according to teachers and students in the nautical schools this serves as an educational barrier to ener-gy-efficiency improvements The technical level of education for commercial employees in shipping companies may also hinder im-provements in energy-efficiency Some com-

mercial shipping employees may not have sufficient training to fully see and acknowl-edge the consequences of their decisions on fuel consumption In short it seems that fuel awareness and the educational systems have responded more slowly to the climate chal-lenge than the rise in fuel prices may other-wise suggest

For shipping to bridge energy-efficiency gaps education ndash both nautical and com-mercial ones ndash clearly is an area to set in Here the potential for innovative solutions is both evident and pertinent Changing educational systems and awareness is no easy task bearing in mind the global nature of the shipping industry and international crewing of the world fleet It is clear howev-er that educational upgrading is necessary for shipping to effectively address the cli-mate challenge effectively

Charter parties between ship-operators and shippers state a specific time of arrival for the vessel and in order to avoid claims ships proceed to port accordingly regardless of berth availability Experiments with new more flexible charter parties which allow for slow steaming in case of port congestion have recently been made Shipping compa-nies have generally been enthusiastic about this flexibility but often shippers remain skeptical Lack of trust between shippers which need the loading of their cargoes as soon as possible and shipping companies may be a cause for this discrepancy Even in cases where the savings made from slow-steaming are split between shipping companies and shippers shippers have re-mained skeptical Port queuing systems may have a role to play here

Many ports including some of the major container iron ore coal and grain ports serve ships on ldquofirst-come first-servedrdquo ba-sis Ships only receive their ldquoticketrdquo in the

waiting line upon their arrival at the port Again lack of trust between the ship-oper-ators shippers and the port authorities may explain this phenomenon Moreover port authorities currently do not have incentives to change queuing practices because they cannot gain a share in the fuel savings made from slow-steaming

The problem is particularly strong in the major tramp shipping segments of tanker and dry cargo shipping where vessels act as ldquotaxis of the seardquo serving numerous shippers and rarely calling at the same ports If the fleet from a shipping company only calls at a particular port once a year and the compa-ny has very short-term relations to individ-ual shippers building trustful relationships between the parties remains a major chal-lenge Solving this problem and realizing the full potential of slow steaming will require systemic innovation in shipping and port systems and further studies are required to identify possible solutions

36 CSQ

The Wind turbine industry -

Emerging global innovation networks in Europe and China

The wind turbine industry has developed into a global network encompassing a large amount of diverse actors within innovation production and installation of wind turbines across the globe

By Stine Haakonsson and Julia Kirch Hollitsch Department of Business amp Politics CBS

market for wind energy Chinese actors have turned China as a location into another im-portant lsquohubrsquo in this network This has led to new forms of innovation collaborations between European and Chinese actors The result has been a complete re-configuration of the industry over the past decade In the International Business and Economic Geog-raphy literatures the development of global production networks in which lead-firms be-come orchestrators of dispersed production

enmark has traditionally played a key role as an lsquoinnovation hubrsquo and com-

panies in Denmark remain among the lead firms within the wind turbine industry Re-cently the industry has reorganized from being located predominantly in the Triad regions (mainly in Europe and the US) to becoming a globally dispersed industry This development can partly be explained by de-velopments in international and national politics Due to the growth of the Chinese

activities in globalized value chains is well established theoretically as well as empiri-cally In the globalization process lead firms relocate production activities to low cost lo-cations by off-shoring and through vertical disintegration and outsourcing to specialized suppliers Producers of wind turbines are no exception However until recently the mar-ket and innovation activities remained con-centrated in Europe and US

With the recent focus on global politics for a post-carbon society the market for wind tur-bines has experienced an immense growth and a high degree of market globalization New locations have developed into main markets One of these is China which since 2010 has been the largest market for wind turbines in the world (in capacity installed) The globalization process in the wind tur-bine can be explained by a combination of offshoring of production by European lead firms mainly through foreign direct invest-ment and establishment of domestic lead firms in emerging markets In 2010 there were four Chinese-owned companies among the top-10 producers of wind turbines as compared to 2003 where all firms on this list were from Europe and the US

D

Julia Kirch Hollitsch

Stine Haakonsson

Stine Haakonsson and Julia Kirch Hollitsch from Depart-

ment of Business and Politics CBS are engaged in the

Sino-Danish Center for Research and Education (SDC)

project on Wind Energy in China Both research on the

current restructuring of industries and firms at the glob-

al level (outsourcing off shoring global value chains)

In particular their research is on 1) the restructuring of

innovation and RampD activities into global innovation net-

works(GINs)2)thechangingroleofemergingmarkets

(ChinaIndiaBrazilSouthAfrica)intheseemergingGINs

and 3) technology transfer and capability building related

to renewable energy

Research

37CSQ

by adapting their products to the Chinese market and through cost-out development activities in the new locations primarily China

As a result the wind industry is today highly knowledge-intensive and internationalized Due to increased attention and investments in sustainable transition policies and car-bon-reducing technology China has over the past decade developed into a high prior-ity investment area for wind turbines Also Chinese companies are upgrading technol-ogy and innovation from the global firms through integration into GINs Moreover the production and innovation networks for wind energy become highly complex and consist of many different suppliers of com-ponents (blades gear boxes control systems bearings) resulting in a variety of network linkages among suppliers of different com-ponents and the wind turbine producers

From our empirical data including more than 40 in-depth interviews collected in 2011 and 2012 in the wind turbines indus-tries in China and Denmark we have identi-fied some very interesting patterns We have identified very different characteristics of the GINs established by the Chinese wind tur-bine industry and the European wind tur

Emerging Global Innovation Networks

Innovation processes are also moving be-yond the boundaries of individual compa-nies and national innovation systems Firms engage in cross-border innovation networks spanning different innovation systems which may be national regional or sectorial in or-der to stay competitive in the global econ-omy Chinese lead firms are entering this scene too The result is globally organized networks of interconnected and integrated functions and operations by firms and non-firm organizations engaged in the develop-ment and diffusion of innovations so-called Global Innovation Networks (GINs) Lead firms internationalize innovation through strategies of exploitation global generation of innovation and global techno-scientific collaborations Chinese wind turbine pro-ducers ndash acknowledging their resource and capability deficiency ndash pursue strategies of innovation network integration through strategies of global generation of innovation These firms link up with specialized Europe-an actors such as core component suppliers through partnerships and networks in or-der to tap into the technology of firms from developed countries and upgrade Mean-while European companies internationalize through exploitation strategies for example

bine industry Although Danish and Chinese actors are experiencing a re-organization of activities and establish networks and globa-linnovation strategies the result is very dif-ferent

The industry from Europe and US

The industry from Europe and the US hosts the lead firms in terms of core technology de-velopment Denmark has traditionally played a key role as lsquoinnovation hubrsquo in technology development and global lead firms such as Vestas and Siemens Windpower (previously Danish lsquoBonusrsquo) took its start already in the 1970s The core competences of the Danish wind turbine innovation system are based on large testing facilities and long track records mainly due to the long time-line of experi-ence The wind industry goes 40 years back and therefore Denmark has a good knowl-edge pool within establishing wind farms (aerodynamics minimizing power loss in energy transmission wind mapping and other installation-related technologies)

38 CSQ

that will make it possible to finance the pro-jects ldquoFrom then on our wind turbine pro-jects developed very fastrdquo(Interview Wind Engineer Chinese Academy of Sciences) Thus this law was a milestone for elevating renewables to a strategic position in China or as expressed by a European lead-firm ldquoWhat drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick offrdquo

Until the turn of the millennium Chinarsquos wind energy industry was largely built on donors acquisition of finished wind turbines and licensed technology from European companies spread on a very small scale into the local industry during the mid 1990s Chi-nese wind turbine technology has evolved from imitation reverse engineering and licensing in the 1980-90s combined with assistance from foreign consultants One example is how DANIDA funded a project in 1986 for Goldwind in Xinjiang which imported 13 units of 150 kW lsquoBonusrsquo (now Siemens Wind Power) turbines

To get beyond the stage of pure imitation several policies have been introduced with the intent to upgrade Chinese manufacturers to obtain indigenous innovative capabilities Policy programs were introduced to enhance Chinese companies to develop wind energy subsidizing wind energy RampD expenditures at varied levels over time establishing a re-newable energy fund and through the ldquo863 Wind Programrdquo under the Tenth Five-Year Plan (2001-2005) Local content require-ments were put in place in which develop-ers of wind energy projects were required to source 70 pct of the content in China These policies ndash which essentially forced foreign manufacturers wishing to sell wind turbines to the Chinese market to establish China-based manufacturing facilities ndash were only removed recently (in 2009) One result was that the foreign companies had to up-grade local suppliers of components

Due to the technological complexity many European (and hereby also the Danish) firms are vertically integrated and have most com-ponents produced in-house or with regular specialized suppliers According to these companies the different parts need to be well adjusted to each other to some extent even co-developed in order to enhance effi-ciency and the lifetime of the wind turbine Likewise the European industry has expe-rienced a concentration of actors with the result that there are only relatively few but large manufacturers in Europe (the larg-est ones are Vestas Siemens Gamesa and Enercon) Together these four companies accounted for about 35 of the global mar-ket in 2010 By seeing the wind turbine as an integrated system these lead firms aim at producing lsquothe Rolls Roycersquo model wind turbines These are strong in terms of qual-ity and standards but generally expensive These firms learn cost-out techniques from their engagement with partners in China

The Chinese Wind Turbine Industry

Today the Chinese wind turbine industry is overly competitive It entails more than 80 wind turbine manufacturers and the Chi-nese market boasts the highest growth rates internationally with an average growth rate of 968 percentages annually in the last three years Several large domestic Chinese wind turbine manufacturers have emerged within the last decade Sinovel and Goldwind take the largest share followed by United Pow-er and Ming Yang just to mention some of them As of the end of 2010 these four were A major driver for the development of the Chinese wind energy market has been the establishment of an institutional context as a comprehensive concerted policy frame-work addressing the development of renewa-ble energies This change in the institutional context was first reflected clearly in the 11th 5-year-plan (2006-2010) which explicitly linked environmental sustainability to the key goal of establishing what was called a harmonious socialist society signalling a socially environmentally and economically sustainable economy With the Renewable Energy Law from 2005 the Chinese wind energy industry really took off as it explicitly seeks to ensure that renewable energy pro-jects have an outlet for their output at prices

Technical barriers and the role of GINs for a post-carbon society

Despite high ambitions in terms of devel-oping innovative capabilities Chinese pro-ducers still produce almost exclusively for the Chinese market However Chinese wind turbine manufacturers have recently started an internationalisation process and some are approaching international markets Not least for tapping into new knowledge

Europe (and Denmark in particular) is per-ceived as a main location from which the Chinese companies can learn more A cou-ple of Chinese companies have already set up RampD centres in Denmark European firms have also initiated RampD centres in new lo-cations primarily China and India In other words GINs can be identified

Our research also points towards important barriers for GINs in the wind turbine in-dustry and for approaching a post-carbon global society Most importantly are the technological barriers intellectual property rights quality issues and issues of limited appropriability of knowledge Further the institutional framework remain relevant for displaying how the sector and the emerging GINs are embedded institutionally socially and technologically Whether actors trans-act knowledge technology and know-how through cooperative innovation activities also depends on how core the technology of a given technology is Still as the market grows in China it seems to have matured in Europe because of changing policies on re-newable energy To sustain the position as a global lsquohubrsquo and world leader in wind tech-nologies there is a strong need for support in Europe as this research really shows how fast the Chinese industry is moving One major result is how important networks are for upgrading companies and it seems that Chinese firms perform better in network strategies and manage to tap into relevant knowledge than the European firms

What drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick off rdquoldquoInterview Wind Engineer Chinese Academy of Sciences

39CSQ

Social Enterprise World

ForumNadine Koumlcher from 180Degrees recounts her experience from the

conference on

Rio de Janeiro Brazil 2012

In the numerous panel debates and parallel track discussion it became clear that Impact Investment is a hot topic among both social entrepreneurs and impact investors a diverse group consisting of corporations founda-tions and potential donors However various obstacles impede a harmonious relationship between the twoSocial enterprises face structural challenges to make themselves more appealing to im-pact investors They have to become more transparent and increase their accountability This includes improving their impact assess-ment and reporting tools However despite much discussion no consensus could be formed on how to optimally conduct im-pact assessment One of the most frequently proposed methodologies involves the use

From the 16th to the 18th of October the CBS Sustainability Platform granted me the opportunity to attend the 5th Social Enter-prise World Forum which took place in Rio de Janeiro Brazil This yearly international conference focuses on social enterprises and their effectiveness in solving social challeng-es The overall theme of the 2012 conference hosted by NESsT was ldquoSocial Enterprise Investing for Impactrdquo Thus for three days over 180 speakers and 650 delegates from 30 different countries shared their experiences regarding impact investment and discussed possibilities to attract new investment by both the public and the private sector for so-cial enterprises

of control groups Story-telling has also been men-tioned to be a powerful tool to provide investors with a proof of outcomesSocial investors are willing to accept returns just below the market rate in exchange for a social return However large profits are still expect-ed and many social enter-prises are afraid of being unable to generate them Social enterprises typically operate on a small scale and are not used to undertake large projects with huge sums of investment given to them Many are too small for social investors to be

attractive as costs are similar for small and large investments although larger invest-ments have a higher payoff

Nichole Echert the CEO of NESsT there-fore pointed out that it is necessary to align expectations between impact investors and social entrepreneurs and to be patient in establishing a relationship between the two groups The expected financial return has to be reasonable close to covering the costs of operation and social returns have to be re-ported to investors by use of clearer criteria

By Nadine Koumlcher Director of Branch Development180 Degrees Consulting Limited

ldquoSocial Enterprise Investing for Impactrdquo

Students

40 CSQ

A highlight of the con-ference was definitely the site visit to a social enterprise project in a recently pacified fave-la It brought further insights on the great variety of social enter-prises that exist in Bra-zil and their missions and struggles We visit-ed a community center at which Comitecirc para

Democratizaccedilao da Informaacutetica (CDI) uses technology to fight poverty and to stimulate entrepreneurship CDI has formed a corpo-rate partnership with Coca Cola which in the same building teaches young locals how to write a CV and find a job Talking to the young locals at the center it became apparent that an increased self-confidence and the in-spiration they get from meeting former now employed participants of the project (eg at Coca Cola) is what they valued most of being part of the class

Participating at the conference was definite-ly a unique and valuable experience I would not want to miss as I tremendously improved my knowledge in the field of social enter-prises through attending the numerous pres-entations and discussions and further met so many inspiring social entrepreneurs impact

In addition it has been stressed that the problem is not a shortage of investment capital (even though the government could promote more impact investment by for instance granting tax breaks) but how to deploy it Social entrepreneurs also have to be aware of the different advantages and dis-advantages of the various types of capital It has to fit their process of establishment and it has therefore been suggested that funds and grants are most optimal in the start-up phase to cover such costs as capacity train-ing There is generally a lack of this early stage financial support Following the initial phase strategic philanthropy money would be most appropriate before impact and final-ly equity investment is sought Furthermore new ways of investment which fit the social enterprise world have to be created replac-ing the current situation of trying to fit social enterprises into the current financial world

investors and students with a genuine inter-est in the field

Participating at the conference was definitely a unique and valuable experience rdquo

ldquo

Social Enterprise World Forum 2013 in

Calgary Canada

The TRICO Charitable Foundation in part-nership with the Social Enterprise Council of Canada and the Social Finance Forum has been selected to host the 6th Annual Social Enterprise World Forum SEWF 2013 will take place October 2-4 2013 in Calgary Al-berta The Forum will present the Canadian social enterprise movement with opportuni-ties to engage learn and share on the inter-national stage

SEWF 2013 will be a gathering of over 1000 Canadian and international delegates who are involved in the social enterprise move-ment where the blending of social and fi-nancial values is core to business Attendees will consist of practitioners (from all sec-tors) funders investors supporters elected officials and public servants from around the world

Nadine Koumlcher

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 30: CBS Sustainability Quarterly 2013 #1

30 CSQ

HYDROPOWER

SUSTAINABILITY IN

CHINAy PhD project combines two of my main research interests China and

environmental sustainability I have studied China for a number of years mainly because of an interest in how the Chinese view sus-tainable development So since finishing my masters I have known that I wanted to study how China plan to tackle a sustainable tran-sition in the years to come I saw my chance when CBS announced PhD scholarships in

DanishEuropean-Chinese social science research in collaboration with the newly es-tablished Sino-Danish Center for Education and Research (SDC) and started my PhD in October 2011My PhD project focuses on the Chinese energy sector more specifically the rapidly growing part of the energy sector engaged in renewable energy Here I examine Chinarsquos second largest source of electricity gene-

eration hydropower In recent years China has become increasingly focused on reduc-ing CO2 emissions While some countries such as the US and Australia are decommis-sioning hydropower dams China is looking to large-scale hydropower construction as one of the solutions to a future clean energy supply This means that hydropower devel-opment plays a central role in Chinarsquos sus-tainable transition

However utilization of hydropower is con-troversial not least in China and has met increasing resistance in recent years particu-larly from Chinese and international NGOs the media as well as the scientific commu-nity Critique is most often focused on how or if social and environmental sustainability can be ensured in such large scale projects as the social and environmental impacts of large scale hydropower development are very complex and difficult to measure More gen-erally the viability of relying on hydropow-er as a future source of energy is also being questioned One of the major concerns here is the overarching issue of climate change ie glaciers shrinking and yearly water runoff decreasing This means less stable water flow for hydropower and less water for other pur-poses such as agriculture water supply for down-stream countries etc

By Louise Lyngfeldt Gorm Hansen Asia Research Centre Department of International Economics and Management and Sino-Danish Center for Education and Research (SDC) ndash sinodanishcenterdk

M

Picture from SinoHydro promotion material 2011

Research

31CSQ

In contrast to for example the wind power sector in China in which many foreign com-panies have invested the hydropower sector is dominated by a few large state-owned en-terprises Our knowledge of Chinese state-owned enterprises is still limited and there-fore my PhD project is also part of a larger research project at the Asia Research Centre with focus on Chinese state-owned enter-prises and the reform of the public sector in China

In combining these interests my PhD exam-ines how Chinese state-owned enterprises in the hydropower sector tackle the demand to expand hydropower development to help reduce Chinarsquos CO2 emissions while be-ing under increasing pressure to deliver on sustainability principles in the planning and execution of large scale hydropower pro-jects The pressure comes mainly from NGO organizations the media and the scientific community both at home and from abroad I am conducting a case study focused on a specific river in south-western China which has ndash until now ndash not been fully developed for hydropower and the plans for addition-al hydropower dams on the river are still undergoing assessments The project has continually stalled due to disagreements between Chinese government officials at all levels NGOs the media the increasingly deregulated but still state-owned Chinese hydropower companies and the scientif-ic community However the project has very recently been reopened and so will go through another round of assessments in the near future The case is an excellent example of the complexity of hydropower develop-ment decisions in China but it also highlights some of the social and environmental conse-quences of the global push to decrease CO2 emissions

China plays and will continue to play an increasingly important role globally in the years to come However the country also fac-es enormous challenges - not least regarding the environment These challenges also affect economies in Western Europe - for better or worse My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective so

that we here in Europe and in Denmark can more knowledgably and actively engage with China to help solve some of these difficult challenges that eventually affect us all In do-ing this I contribute to gain a better under-standing of the Chinese perspective on envi-ronmental sustainability that can be of use to companies wanting to engage in the Chinese renewable energy sector

My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective rdquoldquo

Picture of the case-river taken by the author in 2012

32 CSQ

FROM BLUEPRINT TO PRACTICE

ENERGY EFFICIENT CONSTRUCTION

By postdoc researcher Satu Reijonen Department of Organization CBS

In the EU almost one third of CO2 emis-sions are attributed to energy used in the construction and use of buildings (FIEC

2007) It is therefore not surprising that the construction sector has recently been subjected to a substantial amount of policy measures to combat its negative effects on climate change In Denmark the state has posed new thresholds for the energy efficien-cy of new buildings including a plan for con-tinuous improvement in the area This far the industry has responded well to these stricter performance requirements In the future re-quirements will rise to levels that are not that easily achieved in the coming years build-ings will have to use 25 less energy than in year 2008 How can these ambitious goals become business as usual

One of the most discussed ways besides add-on technologies such as windmills and solar panels to enhance the energy efficiency of a building is through an energy efficient phys-ical design In practice this means reduction of energy used for heating cooling down and lighting of the building through an optimal orientation and dimensioning of the build-ing

Integrated energy design contrary to add-on technologies can be achieved on a rath-er modest additional budget This should be good news for the sector that today is eco-nomically pressed Indeed today many low energy building projects claim to use the in-tegrated energy design method (IED) when seeking to meet the most ambitious energy related goals In this commentary I wish to discuss some challenges related to the imple-mentation of this design tool

The integrated energy design method sug-gests that one of the main problems in not achieving energy efficiency is that energy related concerns become integrated into the design process too late The method consists of two elements the first of which addresses the need to bring in energy related knowl-edge throughout the design process It sug-gests that design teams ought to be multidis-ciplinary and that architects engineers and experts should work together either co-lo-cated or in a series of workshops Further-more it suggests systematizing energy quali-ty follow-ups into the design process This is all very relevant and inspiring

Oddly enough a closer look on the actual design practices reveals that few seem to ac-tually follow the method of integrated energy design to the point This poses an interest-ing question about the challenges related to the use of such management technologies as vehicles for increased energy efficiency in construction Maybe it is about time practi-tioners and researchers ask themselves what are the boundaries of and challenges related to the use of these tools ndash and what else is required for organizing for more energy effi-cient building design processes

A revolution of relations

Integrated energy design points to the need to bring energy related expertise into the de-sign process at an earlier point In order to achieve this cooperative practices between different professional groups are advocated for Historically energy experts have most-ly been used to respond to rather advanced architectural plans Shared workshops and co-localization suggest a change in these business as usual relations But are they pos-sible and what type of changes do they ac-tually imply in order to function as wished

Research

33CSQ

Satu Reijonen is postdoctoral scholar at the Department of Organization at CBS In her on-going research project she investigates how architects and energy engineers two different profes-sions cooperate and coordinate their work regarding energy related ques-tions in construction design The ways in which relations between and roles of these professions become consti-tuted through socio-material arrange-ments are a central topics in her work Besides studies of work Satu has con-ducted research on environmentally friendly products and markets

ABOUT SATU RAIJONEN

The initiation of this type of new working forms is certainly beneficial for energy effi-cient design However for several reasons they are more difficult to make work than one would assume While it may sound rea-sonable it is after all a tall order Integrating energy related practices into an environment where different visions professions and in-terests meet and the divide between what one profession does is clearly and historically demarcated is demanding While architects need to make room for the intervention of energy experts into the creative work energy experts have to become capable of working creatively and relate to and follow the visual and aesthetic cues from architects In order to work these kind of changes in the profes-sional roles and relations have to resonate with the skills and visions of individual work-ers not only management level design strat-egies It is not surprising that organizational change scholars remind us of the possibility of loose coupling from the strategies placed at the management level (March 1981) What integrated energy design suggests is a kind of a revolution in the ways in which both the architects and the energy engineers envision their role and space of mobility

Linear tools in an unlinear design process

Integrated energy design suggests that the energy performance of the emerging build-ing design be followed up at certain points during the design process The method de-picts a rather mechanistic and linear under-standing of a design process consisting of phases within which iteration may occur While energy related issues may be dis-cussed as quality goals during these phases the method places a lot of emphasis on the check ups performed in the transition from one phase to another Design processes how-ever can also be characterized in a different manner unlinear exploratory and whirl wind type of practices where clear cut phases hardly exist (Akrich 1992 Van de Ven et al 1999) This also applies to the architectural design processes where the object of the de-sign is emergent (Yaneva 2009) This entails that the product the building may change in unexpected ways during any day of the de-sign process If this alternative description of the design processes is viable delegating energy related issues to some predetermined check up episodes may strike a false accord and indeed be contradictory with the aim of enhancing coordination and cooperation between professional groups What happens in between the predetermined checkups may very well be where the energy efficiency of the building becomes configured and where the intervention from the energy experts

would come most needed Perhaps this is why the best performing projects do not blindly follow the steps of the IED method Check ups however and no doubt play a role in verifying and making visible the energy performance for partners outside the design team

Integrated energy design as many other sus-tainability standards and guidelines make visible systematize and legitimize the ex-istence of environmental management and sustainability issues in organizations and work processes In this such way tools create awareness and legitimacy for environmental and sustainability issues The integrated en-ergy design method also suggests a possible way of thinking about what type of design practice might help us to achieve the stricter energy requirements of the future It howev-er falls short in becoming the change agent it suggests This is hardly surprising as a meth-od or a standard of any kind should only be seen as a possibility or as an opening for an inquiry of what the practice could be about Reconfiguring a well established practice is hard work and it would be foolish to trust that a design method would achieve it by itself What the method does is to alert us of the more profound changes in the pro-fessional roles and relations that is needed in order to enable the change However the method due to its rather mechanical under-standing of the design process may come to work against its own ambition of integrating energy issues into the design work In its quest for integration the method defines at which points in time the architectural and the engineering project has to be checked for its energy performance This approach may lead to bringing in energy related concerns in some artificially created points in a design process which may additionally compart-mentalize energy related issues from where the design really happens

Integrated energy design as many other sustainability standards and guidelines make visible systematize and legitimize the existence of environmental management and sustainability issues in organizations and work pro-cessesrdquo

ldquoLiteratureAkrich M (1992) The De-Scription of Technical Objects in Shaping Technology Building Society Studies in Soci-otechnical Change eds WE Bijker and J Law The MIT Press Cambridge Massachusetts pp 205-224

FIEC 2007 The impacts of buildings on climate change httpwwwbuildingsplatformeuepbd_publicationdocFIEC_Memo_p2919pdf on 1222008

March JG (1981) Footnotes to Organizational Change Administrative Science Quarterly vol 26 No 4 pp 563-577

Van de Ven A D Polley R Garud and SVenkataraman (1999) The innovation Journey Oxford Oxford Univer-sity Press

Yaneva A (2009) The making of a building A pragmatist approach to Architecture Bern Peter Lang

More about integrated energy design(IED)

httpwwwintendesigncomosloIntendnsfAttachmentsGuideline_Version_2pdf$FILEGuideline_Version_2pdf

34 CSQ

The climate challenge in

shipping

ldquoGlobal shipping faces two major challenges both of which are caused by its reliance on fossil fuelsrdquo

By Reneacute Taudal Poulsen Department of Innovation amp Organizational Economics

RENEacute TAUDAL POULSEN

ASSOCIATE PROFESSOR DEPARTMENT

OF INNOVATION AND ORGANIZATIONAL

ECONOMICS COPENHAGEN BUSINESS

SCHOOL

orecasts show that the shipping indus-tryrsquos CO2 emissions will most likely continue to rise in the next two to

three decades as demand for world sea-borne trade will expand At present global shipping accounts for approximately 33 per cent of global CO2 emissions but this share will most probably increase in the coming years if many onshore industries succeed in their aims of reducing emission levels

At the same time rapidly rising fuel costs put heavy strain on shipping company budg-ets Historically and until very recently fuel costs were only a minor concern for ship-ping companies but now they often exceed 60 per cent of variable operational costs Fuel savings made through energy efficiency improvements thus represent a win-win sce-nario for the shipping industry and for so-ciety at large They simply make good sense for everyone

Despite the strong incentives for fuel sav-ings numerous studies have demonstrated that shipping fails to implement cost-ef-fective measures to reduce fuel consump-tion Fuel-saving technologies are readily available in the market and in many cases pay-back periods are very short (less than a year) Changes in operational habits which require few if any investments also hold a significant potential for fuel savings

Global shipping thus holds several classic examples of energy-efficiency gaps Gaps occur wherever cost-effective measures to improve energy efficiency fail to materialize The causes for energy efficiency gaps have been a favourite research topic within the field of energy economics for decades and economists sociologists and political scien-tists have been able to identify several means to bridge the gaps However within the mar-itime domain energy efficiency gaps and the climate challenge remain neglected issues Legal barriers

Shipsrsquo fuel consumption rises steeply with speed Hence slow-steaming or just minor speed reductions can lower consumption and emission levels significantly Since oil prices started to rise rapidly a few years ago shipping companies have indeed resorted to various slow-steaming practices and com-panies which succeed in this regard have been able to gain competitive advantages In other words actors in the industry are trying to bridge the energy efficiency gap However and in spite of the strong price signals from the rising fuel prices a potential for fuel sav-ing through slow steaming still remains

FNew CBS research project

A new three year research project at CBS under-

taken by Reneacute Taudal Poulsen for the Department

of Innovation and Organizational Economics will

examine the climate issues bringing insights from

energy economics and innovation management

into the field of shipping economics The project

which is financed by The Danish Maritime Fund

runs from 2012 to 2015 The project asks why en-

ergy efficiency gaps continue to occur in shipping

and how shipping companies and the maritime

industry at large can use innovative business

models and process innovation to turn the climate

challenge and the rising fuel costs into a business

opportunity Energy efficiency gaps occur both

in daily operations and when investments in new

vessels are made This article will briefly present

two examples of energy efficiency gaps from

the operational level and some of the preliminary

findings of the project

References

Jaffe AB and RN Stavins 1994 lsquoThe energy efficiency gap What does it meanrsquo Energy Policy 22 (110) 804-10IMO 2009 Second IMO GHG Study 2009 London International Maritime OrganizationMoriarty P amp D Honnery 2012 lsquoEnergy efficiency Lessons from transportrsquo Energy Policy 46 1ndash3Poulsen Reneacute Taudal 2012 lsquoEmissions and energy efficiency - the twin challenges for shippingrsquo Mercator Maritime Innovation Research and Education MarchJune 447-454

Reneacute Taudal Poulsen is Associate Professor at the Department of Innovation and Organizational Eco-nomics at CBS He is also affliated with the Centre for Shipping Economics and Innovation at CBS Reneacute Taudal Poulsen holds a PhD degree in marine environmental history from the University of Southern Denmark and he has worked within the field of maritime business studies for the last seven years He has published in such journals as Fisheries Research Business History and Scandinavian Economic History Review

His current research intersts concern the environmen-tal challenges faced by the global shipping industry and business model innovation in the maritime domain

Research

35CSQ

It is clear that shipping companies cannot fully bridge the energy efficiency gap alone In fact factors beyond the control of in-dividual shipping companies and various structural or legal barriers prevent shipping from fully realizing the slow steaming po-tential

Port congestion remains a world-wide prob-lem and causes ships to spend remarkably long periods inactive Despite the financial crisis and the large drop in shipping freight markets after 2008 many loaded vessels sit at anchor outside ports waiting for berths In some cases they wait for a few hours In other cases for days weeks or even months Instead of waiting the ships could have re-duced speeds and saved fuel And the de-livery and the loading of the cargo in port would not have been delayed in any way However in many cases shipping companies or ship operators cannot reduce speed in spite of port congestion

Educational barriers

Energy efficiency gaps in shipping are also evident when the fuel consumption levels of sister ships are compared Even though the vessels are identical and operate in the same waters studies have shown that their fuel consumption may differ by several Decisions made by the crews onboard and by managers in the onshore organizations clearly influence the level of fuel consump-tion For instance if a captain selects only very small course deviation margins when coding the autopilot of the ship the shiprsquos rudder will move frequently to keep the ship on the exact course all the time This will slow down the ship and cause higher fuel consumption than if the captain had allowed for slightly wider margins and the wider margins would not have any effect on the safety of the ship Decisions made by the commercial depart-ments eg on how to crew the vessels how to monitor vessel fuel consumption or which new equipment to install onboard may also

have a large impact on fuel efficiency and emission levels If shipping company man-agers can nurture a fuel saving culture this could potentially make a difference Since 2007 or 2008 shipping companies have in-deed started to facilitate such organizational changes but educational barriers remain a problemOnshore truck drivers are now offered fuel saving courses but fuel-saving is not a major part of the traditional curriculum in nautical schools or in the commercial education of shipping trainees For good reasons the nau-tical educations have focused on maritime safety but this has caused them to neglect the climate challenge in shipping and the is-sue of fuel saving In fact no single nauticaltext book on maritime fuel savings has yet been published and according to teachers and students in the nautical schools this serves as an educational barrier to ener-gy-efficiency improvements The technical level of education for commercial employees in shipping companies may also hinder im-provements in energy-efficiency Some com-

mercial shipping employees may not have sufficient training to fully see and acknowl-edge the consequences of their decisions on fuel consumption In short it seems that fuel awareness and the educational systems have responded more slowly to the climate chal-lenge than the rise in fuel prices may other-wise suggest

For shipping to bridge energy-efficiency gaps education ndash both nautical and com-mercial ones ndash clearly is an area to set in Here the potential for innovative solutions is both evident and pertinent Changing educational systems and awareness is no easy task bearing in mind the global nature of the shipping industry and international crewing of the world fleet It is clear howev-er that educational upgrading is necessary for shipping to effectively address the cli-mate challenge effectively

Charter parties between ship-operators and shippers state a specific time of arrival for the vessel and in order to avoid claims ships proceed to port accordingly regardless of berth availability Experiments with new more flexible charter parties which allow for slow steaming in case of port congestion have recently been made Shipping compa-nies have generally been enthusiastic about this flexibility but often shippers remain skeptical Lack of trust between shippers which need the loading of their cargoes as soon as possible and shipping companies may be a cause for this discrepancy Even in cases where the savings made from slow-steaming are split between shipping companies and shippers shippers have re-mained skeptical Port queuing systems may have a role to play here

Many ports including some of the major container iron ore coal and grain ports serve ships on ldquofirst-come first-servedrdquo ba-sis Ships only receive their ldquoticketrdquo in the

waiting line upon their arrival at the port Again lack of trust between the ship-oper-ators shippers and the port authorities may explain this phenomenon Moreover port authorities currently do not have incentives to change queuing practices because they cannot gain a share in the fuel savings made from slow-steaming

The problem is particularly strong in the major tramp shipping segments of tanker and dry cargo shipping where vessels act as ldquotaxis of the seardquo serving numerous shippers and rarely calling at the same ports If the fleet from a shipping company only calls at a particular port once a year and the compa-ny has very short-term relations to individ-ual shippers building trustful relationships between the parties remains a major chal-lenge Solving this problem and realizing the full potential of slow steaming will require systemic innovation in shipping and port systems and further studies are required to identify possible solutions

36 CSQ

The Wind turbine industry -

Emerging global innovation networks in Europe and China

The wind turbine industry has developed into a global network encompassing a large amount of diverse actors within innovation production and installation of wind turbines across the globe

By Stine Haakonsson and Julia Kirch Hollitsch Department of Business amp Politics CBS

market for wind energy Chinese actors have turned China as a location into another im-portant lsquohubrsquo in this network This has led to new forms of innovation collaborations between European and Chinese actors The result has been a complete re-configuration of the industry over the past decade In the International Business and Economic Geog-raphy literatures the development of global production networks in which lead-firms be-come orchestrators of dispersed production

enmark has traditionally played a key role as an lsquoinnovation hubrsquo and com-

panies in Denmark remain among the lead firms within the wind turbine industry Re-cently the industry has reorganized from being located predominantly in the Triad regions (mainly in Europe and the US) to becoming a globally dispersed industry This development can partly be explained by de-velopments in international and national politics Due to the growth of the Chinese

activities in globalized value chains is well established theoretically as well as empiri-cally In the globalization process lead firms relocate production activities to low cost lo-cations by off-shoring and through vertical disintegration and outsourcing to specialized suppliers Producers of wind turbines are no exception However until recently the mar-ket and innovation activities remained con-centrated in Europe and US

With the recent focus on global politics for a post-carbon society the market for wind tur-bines has experienced an immense growth and a high degree of market globalization New locations have developed into main markets One of these is China which since 2010 has been the largest market for wind turbines in the world (in capacity installed) The globalization process in the wind tur-bine can be explained by a combination of offshoring of production by European lead firms mainly through foreign direct invest-ment and establishment of domestic lead firms in emerging markets In 2010 there were four Chinese-owned companies among the top-10 producers of wind turbines as compared to 2003 where all firms on this list were from Europe and the US

D

Julia Kirch Hollitsch

Stine Haakonsson

Stine Haakonsson and Julia Kirch Hollitsch from Depart-

ment of Business and Politics CBS are engaged in the

Sino-Danish Center for Research and Education (SDC)

project on Wind Energy in China Both research on the

current restructuring of industries and firms at the glob-

al level (outsourcing off shoring global value chains)

In particular their research is on 1) the restructuring of

innovation and RampD activities into global innovation net-

works(GINs)2)thechangingroleofemergingmarkets

(ChinaIndiaBrazilSouthAfrica)intheseemergingGINs

and 3) technology transfer and capability building related

to renewable energy

Research

37CSQ

by adapting their products to the Chinese market and through cost-out development activities in the new locations primarily China

As a result the wind industry is today highly knowledge-intensive and internationalized Due to increased attention and investments in sustainable transition policies and car-bon-reducing technology China has over the past decade developed into a high prior-ity investment area for wind turbines Also Chinese companies are upgrading technol-ogy and innovation from the global firms through integration into GINs Moreover the production and innovation networks for wind energy become highly complex and consist of many different suppliers of com-ponents (blades gear boxes control systems bearings) resulting in a variety of network linkages among suppliers of different com-ponents and the wind turbine producers

From our empirical data including more than 40 in-depth interviews collected in 2011 and 2012 in the wind turbines indus-tries in China and Denmark we have identi-fied some very interesting patterns We have identified very different characteristics of the GINs established by the Chinese wind tur-bine industry and the European wind tur

Emerging Global Innovation Networks

Innovation processes are also moving be-yond the boundaries of individual compa-nies and national innovation systems Firms engage in cross-border innovation networks spanning different innovation systems which may be national regional or sectorial in or-der to stay competitive in the global econ-omy Chinese lead firms are entering this scene too The result is globally organized networks of interconnected and integrated functions and operations by firms and non-firm organizations engaged in the develop-ment and diffusion of innovations so-called Global Innovation Networks (GINs) Lead firms internationalize innovation through strategies of exploitation global generation of innovation and global techno-scientific collaborations Chinese wind turbine pro-ducers ndash acknowledging their resource and capability deficiency ndash pursue strategies of innovation network integration through strategies of global generation of innovation These firms link up with specialized Europe-an actors such as core component suppliers through partnerships and networks in or-der to tap into the technology of firms from developed countries and upgrade Mean-while European companies internationalize through exploitation strategies for example

bine industry Although Danish and Chinese actors are experiencing a re-organization of activities and establish networks and globa-linnovation strategies the result is very dif-ferent

The industry from Europe and US

The industry from Europe and the US hosts the lead firms in terms of core technology de-velopment Denmark has traditionally played a key role as lsquoinnovation hubrsquo in technology development and global lead firms such as Vestas and Siemens Windpower (previously Danish lsquoBonusrsquo) took its start already in the 1970s The core competences of the Danish wind turbine innovation system are based on large testing facilities and long track records mainly due to the long time-line of experi-ence The wind industry goes 40 years back and therefore Denmark has a good knowl-edge pool within establishing wind farms (aerodynamics minimizing power loss in energy transmission wind mapping and other installation-related technologies)

38 CSQ

that will make it possible to finance the pro-jects ldquoFrom then on our wind turbine pro-jects developed very fastrdquo(Interview Wind Engineer Chinese Academy of Sciences) Thus this law was a milestone for elevating renewables to a strategic position in China or as expressed by a European lead-firm ldquoWhat drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick offrdquo

Until the turn of the millennium Chinarsquos wind energy industry was largely built on donors acquisition of finished wind turbines and licensed technology from European companies spread on a very small scale into the local industry during the mid 1990s Chi-nese wind turbine technology has evolved from imitation reverse engineering and licensing in the 1980-90s combined with assistance from foreign consultants One example is how DANIDA funded a project in 1986 for Goldwind in Xinjiang which imported 13 units of 150 kW lsquoBonusrsquo (now Siemens Wind Power) turbines

To get beyond the stage of pure imitation several policies have been introduced with the intent to upgrade Chinese manufacturers to obtain indigenous innovative capabilities Policy programs were introduced to enhance Chinese companies to develop wind energy subsidizing wind energy RampD expenditures at varied levels over time establishing a re-newable energy fund and through the ldquo863 Wind Programrdquo under the Tenth Five-Year Plan (2001-2005) Local content require-ments were put in place in which develop-ers of wind energy projects were required to source 70 pct of the content in China These policies ndash which essentially forced foreign manufacturers wishing to sell wind turbines to the Chinese market to establish China-based manufacturing facilities ndash were only removed recently (in 2009) One result was that the foreign companies had to up-grade local suppliers of components

Due to the technological complexity many European (and hereby also the Danish) firms are vertically integrated and have most com-ponents produced in-house or with regular specialized suppliers According to these companies the different parts need to be well adjusted to each other to some extent even co-developed in order to enhance effi-ciency and the lifetime of the wind turbine Likewise the European industry has expe-rienced a concentration of actors with the result that there are only relatively few but large manufacturers in Europe (the larg-est ones are Vestas Siemens Gamesa and Enercon) Together these four companies accounted for about 35 of the global mar-ket in 2010 By seeing the wind turbine as an integrated system these lead firms aim at producing lsquothe Rolls Roycersquo model wind turbines These are strong in terms of qual-ity and standards but generally expensive These firms learn cost-out techniques from their engagement with partners in China

The Chinese Wind Turbine Industry

Today the Chinese wind turbine industry is overly competitive It entails more than 80 wind turbine manufacturers and the Chi-nese market boasts the highest growth rates internationally with an average growth rate of 968 percentages annually in the last three years Several large domestic Chinese wind turbine manufacturers have emerged within the last decade Sinovel and Goldwind take the largest share followed by United Pow-er and Ming Yang just to mention some of them As of the end of 2010 these four were A major driver for the development of the Chinese wind energy market has been the establishment of an institutional context as a comprehensive concerted policy frame-work addressing the development of renewa-ble energies This change in the institutional context was first reflected clearly in the 11th 5-year-plan (2006-2010) which explicitly linked environmental sustainability to the key goal of establishing what was called a harmonious socialist society signalling a socially environmentally and economically sustainable economy With the Renewable Energy Law from 2005 the Chinese wind energy industry really took off as it explicitly seeks to ensure that renewable energy pro-jects have an outlet for their output at prices

Technical barriers and the role of GINs for a post-carbon society

Despite high ambitions in terms of devel-oping innovative capabilities Chinese pro-ducers still produce almost exclusively for the Chinese market However Chinese wind turbine manufacturers have recently started an internationalisation process and some are approaching international markets Not least for tapping into new knowledge

Europe (and Denmark in particular) is per-ceived as a main location from which the Chinese companies can learn more A cou-ple of Chinese companies have already set up RampD centres in Denmark European firms have also initiated RampD centres in new lo-cations primarily China and India In other words GINs can be identified

Our research also points towards important barriers for GINs in the wind turbine in-dustry and for approaching a post-carbon global society Most importantly are the technological barriers intellectual property rights quality issues and issues of limited appropriability of knowledge Further the institutional framework remain relevant for displaying how the sector and the emerging GINs are embedded institutionally socially and technologically Whether actors trans-act knowledge technology and know-how through cooperative innovation activities also depends on how core the technology of a given technology is Still as the market grows in China it seems to have matured in Europe because of changing policies on re-newable energy To sustain the position as a global lsquohubrsquo and world leader in wind tech-nologies there is a strong need for support in Europe as this research really shows how fast the Chinese industry is moving One major result is how important networks are for upgrading companies and it seems that Chinese firms perform better in network strategies and manage to tap into relevant knowledge than the European firms

What drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick off rdquoldquoInterview Wind Engineer Chinese Academy of Sciences

39CSQ

Social Enterprise World

ForumNadine Koumlcher from 180Degrees recounts her experience from the

conference on

Rio de Janeiro Brazil 2012

In the numerous panel debates and parallel track discussion it became clear that Impact Investment is a hot topic among both social entrepreneurs and impact investors a diverse group consisting of corporations founda-tions and potential donors However various obstacles impede a harmonious relationship between the twoSocial enterprises face structural challenges to make themselves more appealing to im-pact investors They have to become more transparent and increase their accountability This includes improving their impact assess-ment and reporting tools However despite much discussion no consensus could be formed on how to optimally conduct im-pact assessment One of the most frequently proposed methodologies involves the use

From the 16th to the 18th of October the CBS Sustainability Platform granted me the opportunity to attend the 5th Social Enter-prise World Forum which took place in Rio de Janeiro Brazil This yearly international conference focuses on social enterprises and their effectiveness in solving social challeng-es The overall theme of the 2012 conference hosted by NESsT was ldquoSocial Enterprise Investing for Impactrdquo Thus for three days over 180 speakers and 650 delegates from 30 different countries shared their experiences regarding impact investment and discussed possibilities to attract new investment by both the public and the private sector for so-cial enterprises

of control groups Story-telling has also been men-tioned to be a powerful tool to provide investors with a proof of outcomesSocial investors are willing to accept returns just below the market rate in exchange for a social return However large profits are still expect-ed and many social enter-prises are afraid of being unable to generate them Social enterprises typically operate on a small scale and are not used to undertake large projects with huge sums of investment given to them Many are too small for social investors to be

attractive as costs are similar for small and large investments although larger invest-ments have a higher payoff

Nichole Echert the CEO of NESsT there-fore pointed out that it is necessary to align expectations between impact investors and social entrepreneurs and to be patient in establishing a relationship between the two groups The expected financial return has to be reasonable close to covering the costs of operation and social returns have to be re-ported to investors by use of clearer criteria

By Nadine Koumlcher Director of Branch Development180 Degrees Consulting Limited

ldquoSocial Enterprise Investing for Impactrdquo

Students

40 CSQ

A highlight of the con-ference was definitely the site visit to a social enterprise project in a recently pacified fave-la It brought further insights on the great variety of social enter-prises that exist in Bra-zil and their missions and struggles We visit-ed a community center at which Comitecirc para

Democratizaccedilao da Informaacutetica (CDI) uses technology to fight poverty and to stimulate entrepreneurship CDI has formed a corpo-rate partnership with Coca Cola which in the same building teaches young locals how to write a CV and find a job Talking to the young locals at the center it became apparent that an increased self-confidence and the in-spiration they get from meeting former now employed participants of the project (eg at Coca Cola) is what they valued most of being part of the class

Participating at the conference was definite-ly a unique and valuable experience I would not want to miss as I tremendously improved my knowledge in the field of social enter-prises through attending the numerous pres-entations and discussions and further met so many inspiring social entrepreneurs impact

In addition it has been stressed that the problem is not a shortage of investment capital (even though the government could promote more impact investment by for instance granting tax breaks) but how to deploy it Social entrepreneurs also have to be aware of the different advantages and dis-advantages of the various types of capital It has to fit their process of establishment and it has therefore been suggested that funds and grants are most optimal in the start-up phase to cover such costs as capacity train-ing There is generally a lack of this early stage financial support Following the initial phase strategic philanthropy money would be most appropriate before impact and final-ly equity investment is sought Furthermore new ways of investment which fit the social enterprise world have to be created replac-ing the current situation of trying to fit social enterprises into the current financial world

investors and students with a genuine inter-est in the field

Participating at the conference was definitely a unique and valuable experience rdquo

ldquo

Social Enterprise World Forum 2013 in

Calgary Canada

The TRICO Charitable Foundation in part-nership with the Social Enterprise Council of Canada and the Social Finance Forum has been selected to host the 6th Annual Social Enterprise World Forum SEWF 2013 will take place October 2-4 2013 in Calgary Al-berta The Forum will present the Canadian social enterprise movement with opportuni-ties to engage learn and share on the inter-national stage

SEWF 2013 will be a gathering of over 1000 Canadian and international delegates who are involved in the social enterprise move-ment where the blending of social and fi-nancial values is core to business Attendees will consist of practitioners (from all sec-tors) funders investors supporters elected officials and public servants from around the world

Nadine Koumlcher

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 31: CBS Sustainability Quarterly 2013 #1

31CSQ

In contrast to for example the wind power sector in China in which many foreign com-panies have invested the hydropower sector is dominated by a few large state-owned en-terprises Our knowledge of Chinese state-owned enterprises is still limited and there-fore my PhD project is also part of a larger research project at the Asia Research Centre with focus on Chinese state-owned enter-prises and the reform of the public sector in China

In combining these interests my PhD exam-ines how Chinese state-owned enterprises in the hydropower sector tackle the demand to expand hydropower development to help reduce Chinarsquos CO2 emissions while be-ing under increasing pressure to deliver on sustainability principles in the planning and execution of large scale hydropower pro-jects The pressure comes mainly from NGO organizations the media and the scientific community both at home and from abroad I am conducting a case study focused on a specific river in south-western China which has ndash until now ndash not been fully developed for hydropower and the plans for addition-al hydropower dams on the river are still undergoing assessments The project has continually stalled due to disagreements between Chinese government officials at all levels NGOs the media the increasingly deregulated but still state-owned Chinese hydropower companies and the scientif-ic community However the project has very recently been reopened and so will go through another round of assessments in the near future The case is an excellent example of the complexity of hydropower develop-ment decisions in China but it also highlights some of the social and environmental conse-quences of the global push to decrease CO2 emissions

China plays and will continue to play an increasingly important role globally in the years to come However the country also fac-es enormous challenges - not least regarding the environment These challenges also affect economies in Western Europe - for better or worse My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective so

that we here in Europe and in Denmark can more knowledgably and actively engage with China to help solve some of these difficult challenges that eventually affect us all In do-ing this I contribute to gain a better under-standing of the Chinese perspective on envi-ronmental sustainability that can be of use to companies wanting to engage in the Chinese renewable energy sector

My overall aim is to help generate more knowledge about how sustainability is understood from a Chinese perspective rdquoldquo

Picture of the case-river taken by the author in 2012

32 CSQ

FROM BLUEPRINT TO PRACTICE

ENERGY EFFICIENT CONSTRUCTION

By postdoc researcher Satu Reijonen Department of Organization CBS

In the EU almost one third of CO2 emis-sions are attributed to energy used in the construction and use of buildings (FIEC

2007) It is therefore not surprising that the construction sector has recently been subjected to a substantial amount of policy measures to combat its negative effects on climate change In Denmark the state has posed new thresholds for the energy efficien-cy of new buildings including a plan for con-tinuous improvement in the area This far the industry has responded well to these stricter performance requirements In the future re-quirements will rise to levels that are not that easily achieved in the coming years build-ings will have to use 25 less energy than in year 2008 How can these ambitious goals become business as usual

One of the most discussed ways besides add-on technologies such as windmills and solar panels to enhance the energy efficiency of a building is through an energy efficient phys-ical design In practice this means reduction of energy used for heating cooling down and lighting of the building through an optimal orientation and dimensioning of the build-ing

Integrated energy design contrary to add-on technologies can be achieved on a rath-er modest additional budget This should be good news for the sector that today is eco-nomically pressed Indeed today many low energy building projects claim to use the in-tegrated energy design method (IED) when seeking to meet the most ambitious energy related goals In this commentary I wish to discuss some challenges related to the imple-mentation of this design tool

The integrated energy design method sug-gests that one of the main problems in not achieving energy efficiency is that energy related concerns become integrated into the design process too late The method consists of two elements the first of which addresses the need to bring in energy related knowl-edge throughout the design process It sug-gests that design teams ought to be multidis-ciplinary and that architects engineers and experts should work together either co-lo-cated or in a series of workshops Further-more it suggests systematizing energy quali-ty follow-ups into the design process This is all very relevant and inspiring

Oddly enough a closer look on the actual design practices reveals that few seem to ac-tually follow the method of integrated energy design to the point This poses an interest-ing question about the challenges related to the use of such management technologies as vehicles for increased energy efficiency in construction Maybe it is about time practi-tioners and researchers ask themselves what are the boundaries of and challenges related to the use of these tools ndash and what else is required for organizing for more energy effi-cient building design processes

A revolution of relations

Integrated energy design points to the need to bring energy related expertise into the de-sign process at an earlier point In order to achieve this cooperative practices between different professional groups are advocated for Historically energy experts have most-ly been used to respond to rather advanced architectural plans Shared workshops and co-localization suggest a change in these business as usual relations But are they pos-sible and what type of changes do they ac-tually imply in order to function as wished

Research

33CSQ

Satu Reijonen is postdoctoral scholar at the Department of Organization at CBS In her on-going research project she investigates how architects and energy engineers two different profes-sions cooperate and coordinate their work regarding energy related ques-tions in construction design The ways in which relations between and roles of these professions become consti-tuted through socio-material arrange-ments are a central topics in her work Besides studies of work Satu has con-ducted research on environmentally friendly products and markets

ABOUT SATU RAIJONEN

The initiation of this type of new working forms is certainly beneficial for energy effi-cient design However for several reasons they are more difficult to make work than one would assume While it may sound rea-sonable it is after all a tall order Integrating energy related practices into an environment where different visions professions and in-terests meet and the divide between what one profession does is clearly and historically demarcated is demanding While architects need to make room for the intervention of energy experts into the creative work energy experts have to become capable of working creatively and relate to and follow the visual and aesthetic cues from architects In order to work these kind of changes in the profes-sional roles and relations have to resonate with the skills and visions of individual work-ers not only management level design strat-egies It is not surprising that organizational change scholars remind us of the possibility of loose coupling from the strategies placed at the management level (March 1981) What integrated energy design suggests is a kind of a revolution in the ways in which both the architects and the energy engineers envision their role and space of mobility

Linear tools in an unlinear design process

Integrated energy design suggests that the energy performance of the emerging build-ing design be followed up at certain points during the design process The method de-picts a rather mechanistic and linear under-standing of a design process consisting of phases within which iteration may occur While energy related issues may be dis-cussed as quality goals during these phases the method places a lot of emphasis on the check ups performed in the transition from one phase to another Design processes how-ever can also be characterized in a different manner unlinear exploratory and whirl wind type of practices where clear cut phases hardly exist (Akrich 1992 Van de Ven et al 1999) This also applies to the architectural design processes where the object of the de-sign is emergent (Yaneva 2009) This entails that the product the building may change in unexpected ways during any day of the de-sign process If this alternative description of the design processes is viable delegating energy related issues to some predetermined check up episodes may strike a false accord and indeed be contradictory with the aim of enhancing coordination and cooperation between professional groups What happens in between the predetermined checkups may very well be where the energy efficiency of the building becomes configured and where the intervention from the energy experts

would come most needed Perhaps this is why the best performing projects do not blindly follow the steps of the IED method Check ups however and no doubt play a role in verifying and making visible the energy performance for partners outside the design team

Integrated energy design as many other sus-tainability standards and guidelines make visible systematize and legitimize the ex-istence of environmental management and sustainability issues in organizations and work processes In this such way tools create awareness and legitimacy for environmental and sustainability issues The integrated en-ergy design method also suggests a possible way of thinking about what type of design practice might help us to achieve the stricter energy requirements of the future It howev-er falls short in becoming the change agent it suggests This is hardly surprising as a meth-od or a standard of any kind should only be seen as a possibility or as an opening for an inquiry of what the practice could be about Reconfiguring a well established practice is hard work and it would be foolish to trust that a design method would achieve it by itself What the method does is to alert us of the more profound changes in the pro-fessional roles and relations that is needed in order to enable the change However the method due to its rather mechanical under-standing of the design process may come to work against its own ambition of integrating energy issues into the design work In its quest for integration the method defines at which points in time the architectural and the engineering project has to be checked for its energy performance This approach may lead to bringing in energy related concerns in some artificially created points in a design process which may additionally compart-mentalize energy related issues from where the design really happens

Integrated energy design as many other sustainability standards and guidelines make visible systematize and legitimize the existence of environmental management and sustainability issues in organizations and work pro-cessesrdquo

ldquoLiteratureAkrich M (1992) The De-Scription of Technical Objects in Shaping Technology Building Society Studies in Soci-otechnical Change eds WE Bijker and J Law The MIT Press Cambridge Massachusetts pp 205-224

FIEC 2007 The impacts of buildings on climate change httpwwwbuildingsplatformeuepbd_publicationdocFIEC_Memo_p2919pdf on 1222008

March JG (1981) Footnotes to Organizational Change Administrative Science Quarterly vol 26 No 4 pp 563-577

Van de Ven A D Polley R Garud and SVenkataraman (1999) The innovation Journey Oxford Oxford Univer-sity Press

Yaneva A (2009) The making of a building A pragmatist approach to Architecture Bern Peter Lang

More about integrated energy design(IED)

httpwwwintendesigncomosloIntendnsfAttachmentsGuideline_Version_2pdf$FILEGuideline_Version_2pdf

34 CSQ

The climate challenge in

shipping

ldquoGlobal shipping faces two major challenges both of which are caused by its reliance on fossil fuelsrdquo

By Reneacute Taudal Poulsen Department of Innovation amp Organizational Economics

RENEacute TAUDAL POULSEN

ASSOCIATE PROFESSOR DEPARTMENT

OF INNOVATION AND ORGANIZATIONAL

ECONOMICS COPENHAGEN BUSINESS

SCHOOL

orecasts show that the shipping indus-tryrsquos CO2 emissions will most likely continue to rise in the next two to

three decades as demand for world sea-borne trade will expand At present global shipping accounts for approximately 33 per cent of global CO2 emissions but this share will most probably increase in the coming years if many onshore industries succeed in their aims of reducing emission levels

At the same time rapidly rising fuel costs put heavy strain on shipping company budg-ets Historically and until very recently fuel costs were only a minor concern for ship-ping companies but now they often exceed 60 per cent of variable operational costs Fuel savings made through energy efficiency improvements thus represent a win-win sce-nario for the shipping industry and for so-ciety at large They simply make good sense for everyone

Despite the strong incentives for fuel sav-ings numerous studies have demonstrated that shipping fails to implement cost-ef-fective measures to reduce fuel consump-tion Fuel-saving technologies are readily available in the market and in many cases pay-back periods are very short (less than a year) Changes in operational habits which require few if any investments also hold a significant potential for fuel savings

Global shipping thus holds several classic examples of energy-efficiency gaps Gaps occur wherever cost-effective measures to improve energy efficiency fail to materialize The causes for energy efficiency gaps have been a favourite research topic within the field of energy economics for decades and economists sociologists and political scien-tists have been able to identify several means to bridge the gaps However within the mar-itime domain energy efficiency gaps and the climate challenge remain neglected issues Legal barriers

Shipsrsquo fuel consumption rises steeply with speed Hence slow-steaming or just minor speed reductions can lower consumption and emission levels significantly Since oil prices started to rise rapidly a few years ago shipping companies have indeed resorted to various slow-steaming practices and com-panies which succeed in this regard have been able to gain competitive advantages In other words actors in the industry are trying to bridge the energy efficiency gap However and in spite of the strong price signals from the rising fuel prices a potential for fuel sav-ing through slow steaming still remains

FNew CBS research project

A new three year research project at CBS under-

taken by Reneacute Taudal Poulsen for the Department

of Innovation and Organizational Economics will

examine the climate issues bringing insights from

energy economics and innovation management

into the field of shipping economics The project

which is financed by The Danish Maritime Fund

runs from 2012 to 2015 The project asks why en-

ergy efficiency gaps continue to occur in shipping

and how shipping companies and the maritime

industry at large can use innovative business

models and process innovation to turn the climate

challenge and the rising fuel costs into a business

opportunity Energy efficiency gaps occur both

in daily operations and when investments in new

vessels are made This article will briefly present

two examples of energy efficiency gaps from

the operational level and some of the preliminary

findings of the project

References

Jaffe AB and RN Stavins 1994 lsquoThe energy efficiency gap What does it meanrsquo Energy Policy 22 (110) 804-10IMO 2009 Second IMO GHG Study 2009 London International Maritime OrganizationMoriarty P amp D Honnery 2012 lsquoEnergy efficiency Lessons from transportrsquo Energy Policy 46 1ndash3Poulsen Reneacute Taudal 2012 lsquoEmissions and energy efficiency - the twin challenges for shippingrsquo Mercator Maritime Innovation Research and Education MarchJune 447-454

Reneacute Taudal Poulsen is Associate Professor at the Department of Innovation and Organizational Eco-nomics at CBS He is also affliated with the Centre for Shipping Economics and Innovation at CBS Reneacute Taudal Poulsen holds a PhD degree in marine environmental history from the University of Southern Denmark and he has worked within the field of maritime business studies for the last seven years He has published in such journals as Fisheries Research Business History and Scandinavian Economic History Review

His current research intersts concern the environmen-tal challenges faced by the global shipping industry and business model innovation in the maritime domain

Research

35CSQ

It is clear that shipping companies cannot fully bridge the energy efficiency gap alone In fact factors beyond the control of in-dividual shipping companies and various structural or legal barriers prevent shipping from fully realizing the slow steaming po-tential

Port congestion remains a world-wide prob-lem and causes ships to spend remarkably long periods inactive Despite the financial crisis and the large drop in shipping freight markets after 2008 many loaded vessels sit at anchor outside ports waiting for berths In some cases they wait for a few hours In other cases for days weeks or even months Instead of waiting the ships could have re-duced speeds and saved fuel And the de-livery and the loading of the cargo in port would not have been delayed in any way However in many cases shipping companies or ship operators cannot reduce speed in spite of port congestion

Educational barriers

Energy efficiency gaps in shipping are also evident when the fuel consumption levels of sister ships are compared Even though the vessels are identical and operate in the same waters studies have shown that their fuel consumption may differ by several Decisions made by the crews onboard and by managers in the onshore organizations clearly influence the level of fuel consump-tion For instance if a captain selects only very small course deviation margins when coding the autopilot of the ship the shiprsquos rudder will move frequently to keep the ship on the exact course all the time This will slow down the ship and cause higher fuel consumption than if the captain had allowed for slightly wider margins and the wider margins would not have any effect on the safety of the ship Decisions made by the commercial depart-ments eg on how to crew the vessels how to monitor vessel fuel consumption or which new equipment to install onboard may also

have a large impact on fuel efficiency and emission levels If shipping company man-agers can nurture a fuel saving culture this could potentially make a difference Since 2007 or 2008 shipping companies have in-deed started to facilitate such organizational changes but educational barriers remain a problemOnshore truck drivers are now offered fuel saving courses but fuel-saving is not a major part of the traditional curriculum in nautical schools or in the commercial education of shipping trainees For good reasons the nau-tical educations have focused on maritime safety but this has caused them to neglect the climate challenge in shipping and the is-sue of fuel saving In fact no single nauticaltext book on maritime fuel savings has yet been published and according to teachers and students in the nautical schools this serves as an educational barrier to ener-gy-efficiency improvements The technical level of education for commercial employees in shipping companies may also hinder im-provements in energy-efficiency Some com-

mercial shipping employees may not have sufficient training to fully see and acknowl-edge the consequences of their decisions on fuel consumption In short it seems that fuel awareness and the educational systems have responded more slowly to the climate chal-lenge than the rise in fuel prices may other-wise suggest

For shipping to bridge energy-efficiency gaps education ndash both nautical and com-mercial ones ndash clearly is an area to set in Here the potential for innovative solutions is both evident and pertinent Changing educational systems and awareness is no easy task bearing in mind the global nature of the shipping industry and international crewing of the world fleet It is clear howev-er that educational upgrading is necessary for shipping to effectively address the cli-mate challenge effectively

Charter parties between ship-operators and shippers state a specific time of arrival for the vessel and in order to avoid claims ships proceed to port accordingly regardless of berth availability Experiments with new more flexible charter parties which allow for slow steaming in case of port congestion have recently been made Shipping compa-nies have generally been enthusiastic about this flexibility but often shippers remain skeptical Lack of trust between shippers which need the loading of their cargoes as soon as possible and shipping companies may be a cause for this discrepancy Even in cases where the savings made from slow-steaming are split between shipping companies and shippers shippers have re-mained skeptical Port queuing systems may have a role to play here

Many ports including some of the major container iron ore coal and grain ports serve ships on ldquofirst-come first-servedrdquo ba-sis Ships only receive their ldquoticketrdquo in the

waiting line upon their arrival at the port Again lack of trust between the ship-oper-ators shippers and the port authorities may explain this phenomenon Moreover port authorities currently do not have incentives to change queuing practices because they cannot gain a share in the fuel savings made from slow-steaming

The problem is particularly strong in the major tramp shipping segments of tanker and dry cargo shipping where vessels act as ldquotaxis of the seardquo serving numerous shippers and rarely calling at the same ports If the fleet from a shipping company only calls at a particular port once a year and the compa-ny has very short-term relations to individ-ual shippers building trustful relationships between the parties remains a major chal-lenge Solving this problem and realizing the full potential of slow steaming will require systemic innovation in shipping and port systems and further studies are required to identify possible solutions

36 CSQ

The Wind turbine industry -

Emerging global innovation networks in Europe and China

The wind turbine industry has developed into a global network encompassing a large amount of diverse actors within innovation production and installation of wind turbines across the globe

By Stine Haakonsson and Julia Kirch Hollitsch Department of Business amp Politics CBS

market for wind energy Chinese actors have turned China as a location into another im-portant lsquohubrsquo in this network This has led to new forms of innovation collaborations between European and Chinese actors The result has been a complete re-configuration of the industry over the past decade In the International Business and Economic Geog-raphy literatures the development of global production networks in which lead-firms be-come orchestrators of dispersed production

enmark has traditionally played a key role as an lsquoinnovation hubrsquo and com-

panies in Denmark remain among the lead firms within the wind turbine industry Re-cently the industry has reorganized from being located predominantly in the Triad regions (mainly in Europe and the US) to becoming a globally dispersed industry This development can partly be explained by de-velopments in international and national politics Due to the growth of the Chinese

activities in globalized value chains is well established theoretically as well as empiri-cally In the globalization process lead firms relocate production activities to low cost lo-cations by off-shoring and through vertical disintegration and outsourcing to specialized suppliers Producers of wind turbines are no exception However until recently the mar-ket and innovation activities remained con-centrated in Europe and US

With the recent focus on global politics for a post-carbon society the market for wind tur-bines has experienced an immense growth and a high degree of market globalization New locations have developed into main markets One of these is China which since 2010 has been the largest market for wind turbines in the world (in capacity installed) The globalization process in the wind tur-bine can be explained by a combination of offshoring of production by European lead firms mainly through foreign direct invest-ment and establishment of domestic lead firms in emerging markets In 2010 there were four Chinese-owned companies among the top-10 producers of wind turbines as compared to 2003 where all firms on this list were from Europe and the US

D

Julia Kirch Hollitsch

Stine Haakonsson

Stine Haakonsson and Julia Kirch Hollitsch from Depart-

ment of Business and Politics CBS are engaged in the

Sino-Danish Center for Research and Education (SDC)

project on Wind Energy in China Both research on the

current restructuring of industries and firms at the glob-

al level (outsourcing off shoring global value chains)

In particular their research is on 1) the restructuring of

innovation and RampD activities into global innovation net-

works(GINs)2)thechangingroleofemergingmarkets

(ChinaIndiaBrazilSouthAfrica)intheseemergingGINs

and 3) technology transfer and capability building related

to renewable energy

Research

37CSQ

by adapting their products to the Chinese market and through cost-out development activities in the new locations primarily China

As a result the wind industry is today highly knowledge-intensive and internationalized Due to increased attention and investments in sustainable transition policies and car-bon-reducing technology China has over the past decade developed into a high prior-ity investment area for wind turbines Also Chinese companies are upgrading technol-ogy and innovation from the global firms through integration into GINs Moreover the production and innovation networks for wind energy become highly complex and consist of many different suppliers of com-ponents (blades gear boxes control systems bearings) resulting in a variety of network linkages among suppliers of different com-ponents and the wind turbine producers

From our empirical data including more than 40 in-depth interviews collected in 2011 and 2012 in the wind turbines indus-tries in China and Denmark we have identi-fied some very interesting patterns We have identified very different characteristics of the GINs established by the Chinese wind tur-bine industry and the European wind tur

Emerging Global Innovation Networks

Innovation processes are also moving be-yond the boundaries of individual compa-nies and national innovation systems Firms engage in cross-border innovation networks spanning different innovation systems which may be national regional or sectorial in or-der to stay competitive in the global econ-omy Chinese lead firms are entering this scene too The result is globally organized networks of interconnected and integrated functions and operations by firms and non-firm organizations engaged in the develop-ment and diffusion of innovations so-called Global Innovation Networks (GINs) Lead firms internationalize innovation through strategies of exploitation global generation of innovation and global techno-scientific collaborations Chinese wind turbine pro-ducers ndash acknowledging their resource and capability deficiency ndash pursue strategies of innovation network integration through strategies of global generation of innovation These firms link up with specialized Europe-an actors such as core component suppliers through partnerships and networks in or-der to tap into the technology of firms from developed countries and upgrade Mean-while European companies internationalize through exploitation strategies for example

bine industry Although Danish and Chinese actors are experiencing a re-organization of activities and establish networks and globa-linnovation strategies the result is very dif-ferent

The industry from Europe and US

The industry from Europe and the US hosts the lead firms in terms of core technology de-velopment Denmark has traditionally played a key role as lsquoinnovation hubrsquo in technology development and global lead firms such as Vestas and Siemens Windpower (previously Danish lsquoBonusrsquo) took its start already in the 1970s The core competences of the Danish wind turbine innovation system are based on large testing facilities and long track records mainly due to the long time-line of experi-ence The wind industry goes 40 years back and therefore Denmark has a good knowl-edge pool within establishing wind farms (aerodynamics minimizing power loss in energy transmission wind mapping and other installation-related technologies)

38 CSQ

that will make it possible to finance the pro-jects ldquoFrom then on our wind turbine pro-jects developed very fastrdquo(Interview Wind Engineer Chinese Academy of Sciences) Thus this law was a milestone for elevating renewables to a strategic position in China or as expressed by a European lead-firm ldquoWhat drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick offrdquo

Until the turn of the millennium Chinarsquos wind energy industry was largely built on donors acquisition of finished wind turbines and licensed technology from European companies spread on a very small scale into the local industry during the mid 1990s Chi-nese wind turbine technology has evolved from imitation reverse engineering and licensing in the 1980-90s combined with assistance from foreign consultants One example is how DANIDA funded a project in 1986 for Goldwind in Xinjiang which imported 13 units of 150 kW lsquoBonusrsquo (now Siemens Wind Power) turbines

To get beyond the stage of pure imitation several policies have been introduced with the intent to upgrade Chinese manufacturers to obtain indigenous innovative capabilities Policy programs were introduced to enhance Chinese companies to develop wind energy subsidizing wind energy RampD expenditures at varied levels over time establishing a re-newable energy fund and through the ldquo863 Wind Programrdquo under the Tenth Five-Year Plan (2001-2005) Local content require-ments were put in place in which develop-ers of wind energy projects were required to source 70 pct of the content in China These policies ndash which essentially forced foreign manufacturers wishing to sell wind turbines to the Chinese market to establish China-based manufacturing facilities ndash were only removed recently (in 2009) One result was that the foreign companies had to up-grade local suppliers of components

Due to the technological complexity many European (and hereby also the Danish) firms are vertically integrated and have most com-ponents produced in-house or with regular specialized suppliers According to these companies the different parts need to be well adjusted to each other to some extent even co-developed in order to enhance effi-ciency and the lifetime of the wind turbine Likewise the European industry has expe-rienced a concentration of actors with the result that there are only relatively few but large manufacturers in Europe (the larg-est ones are Vestas Siemens Gamesa and Enercon) Together these four companies accounted for about 35 of the global mar-ket in 2010 By seeing the wind turbine as an integrated system these lead firms aim at producing lsquothe Rolls Roycersquo model wind turbines These are strong in terms of qual-ity and standards but generally expensive These firms learn cost-out techniques from their engagement with partners in China

The Chinese Wind Turbine Industry

Today the Chinese wind turbine industry is overly competitive It entails more than 80 wind turbine manufacturers and the Chi-nese market boasts the highest growth rates internationally with an average growth rate of 968 percentages annually in the last three years Several large domestic Chinese wind turbine manufacturers have emerged within the last decade Sinovel and Goldwind take the largest share followed by United Pow-er and Ming Yang just to mention some of them As of the end of 2010 these four were A major driver for the development of the Chinese wind energy market has been the establishment of an institutional context as a comprehensive concerted policy frame-work addressing the development of renewa-ble energies This change in the institutional context was first reflected clearly in the 11th 5-year-plan (2006-2010) which explicitly linked environmental sustainability to the key goal of establishing what was called a harmonious socialist society signalling a socially environmentally and economically sustainable economy With the Renewable Energy Law from 2005 the Chinese wind energy industry really took off as it explicitly seeks to ensure that renewable energy pro-jects have an outlet for their output at prices

Technical barriers and the role of GINs for a post-carbon society

Despite high ambitions in terms of devel-oping innovative capabilities Chinese pro-ducers still produce almost exclusively for the Chinese market However Chinese wind turbine manufacturers have recently started an internationalisation process and some are approaching international markets Not least for tapping into new knowledge

Europe (and Denmark in particular) is per-ceived as a main location from which the Chinese companies can learn more A cou-ple of Chinese companies have already set up RampD centres in Denmark European firms have also initiated RampD centres in new lo-cations primarily China and India In other words GINs can be identified

Our research also points towards important barriers for GINs in the wind turbine in-dustry and for approaching a post-carbon global society Most importantly are the technological barriers intellectual property rights quality issues and issues of limited appropriability of knowledge Further the institutional framework remain relevant for displaying how the sector and the emerging GINs are embedded institutionally socially and technologically Whether actors trans-act knowledge technology and know-how through cooperative innovation activities also depends on how core the technology of a given technology is Still as the market grows in China it seems to have matured in Europe because of changing policies on re-newable energy To sustain the position as a global lsquohubrsquo and world leader in wind tech-nologies there is a strong need for support in Europe as this research really shows how fast the Chinese industry is moving One major result is how important networks are for upgrading companies and it seems that Chinese firms perform better in network strategies and manage to tap into relevant knowledge than the European firms

What drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick off rdquoldquoInterview Wind Engineer Chinese Academy of Sciences

39CSQ

Social Enterprise World

ForumNadine Koumlcher from 180Degrees recounts her experience from the

conference on

Rio de Janeiro Brazil 2012

In the numerous panel debates and parallel track discussion it became clear that Impact Investment is a hot topic among both social entrepreneurs and impact investors a diverse group consisting of corporations founda-tions and potential donors However various obstacles impede a harmonious relationship between the twoSocial enterprises face structural challenges to make themselves more appealing to im-pact investors They have to become more transparent and increase their accountability This includes improving their impact assess-ment and reporting tools However despite much discussion no consensus could be formed on how to optimally conduct im-pact assessment One of the most frequently proposed methodologies involves the use

From the 16th to the 18th of October the CBS Sustainability Platform granted me the opportunity to attend the 5th Social Enter-prise World Forum which took place in Rio de Janeiro Brazil This yearly international conference focuses on social enterprises and their effectiveness in solving social challeng-es The overall theme of the 2012 conference hosted by NESsT was ldquoSocial Enterprise Investing for Impactrdquo Thus for three days over 180 speakers and 650 delegates from 30 different countries shared their experiences regarding impact investment and discussed possibilities to attract new investment by both the public and the private sector for so-cial enterprises

of control groups Story-telling has also been men-tioned to be a powerful tool to provide investors with a proof of outcomesSocial investors are willing to accept returns just below the market rate in exchange for a social return However large profits are still expect-ed and many social enter-prises are afraid of being unable to generate them Social enterprises typically operate on a small scale and are not used to undertake large projects with huge sums of investment given to them Many are too small for social investors to be

attractive as costs are similar for small and large investments although larger invest-ments have a higher payoff

Nichole Echert the CEO of NESsT there-fore pointed out that it is necessary to align expectations between impact investors and social entrepreneurs and to be patient in establishing a relationship between the two groups The expected financial return has to be reasonable close to covering the costs of operation and social returns have to be re-ported to investors by use of clearer criteria

By Nadine Koumlcher Director of Branch Development180 Degrees Consulting Limited

ldquoSocial Enterprise Investing for Impactrdquo

Students

40 CSQ

A highlight of the con-ference was definitely the site visit to a social enterprise project in a recently pacified fave-la It brought further insights on the great variety of social enter-prises that exist in Bra-zil and their missions and struggles We visit-ed a community center at which Comitecirc para

Democratizaccedilao da Informaacutetica (CDI) uses technology to fight poverty and to stimulate entrepreneurship CDI has formed a corpo-rate partnership with Coca Cola which in the same building teaches young locals how to write a CV and find a job Talking to the young locals at the center it became apparent that an increased self-confidence and the in-spiration they get from meeting former now employed participants of the project (eg at Coca Cola) is what they valued most of being part of the class

Participating at the conference was definite-ly a unique and valuable experience I would not want to miss as I tremendously improved my knowledge in the field of social enter-prises through attending the numerous pres-entations and discussions and further met so many inspiring social entrepreneurs impact

In addition it has been stressed that the problem is not a shortage of investment capital (even though the government could promote more impact investment by for instance granting tax breaks) but how to deploy it Social entrepreneurs also have to be aware of the different advantages and dis-advantages of the various types of capital It has to fit their process of establishment and it has therefore been suggested that funds and grants are most optimal in the start-up phase to cover such costs as capacity train-ing There is generally a lack of this early stage financial support Following the initial phase strategic philanthropy money would be most appropriate before impact and final-ly equity investment is sought Furthermore new ways of investment which fit the social enterprise world have to be created replac-ing the current situation of trying to fit social enterprises into the current financial world

investors and students with a genuine inter-est in the field

Participating at the conference was definitely a unique and valuable experience rdquo

ldquo

Social Enterprise World Forum 2013 in

Calgary Canada

The TRICO Charitable Foundation in part-nership with the Social Enterprise Council of Canada and the Social Finance Forum has been selected to host the 6th Annual Social Enterprise World Forum SEWF 2013 will take place October 2-4 2013 in Calgary Al-berta The Forum will present the Canadian social enterprise movement with opportuni-ties to engage learn and share on the inter-national stage

SEWF 2013 will be a gathering of over 1000 Canadian and international delegates who are involved in the social enterprise move-ment where the blending of social and fi-nancial values is core to business Attendees will consist of practitioners (from all sec-tors) funders investors supporters elected officials and public servants from around the world

Nadine Koumlcher

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 32: CBS Sustainability Quarterly 2013 #1

32 CSQ

FROM BLUEPRINT TO PRACTICE

ENERGY EFFICIENT CONSTRUCTION

By postdoc researcher Satu Reijonen Department of Organization CBS

In the EU almost one third of CO2 emis-sions are attributed to energy used in the construction and use of buildings (FIEC

2007) It is therefore not surprising that the construction sector has recently been subjected to a substantial amount of policy measures to combat its negative effects on climate change In Denmark the state has posed new thresholds for the energy efficien-cy of new buildings including a plan for con-tinuous improvement in the area This far the industry has responded well to these stricter performance requirements In the future re-quirements will rise to levels that are not that easily achieved in the coming years build-ings will have to use 25 less energy than in year 2008 How can these ambitious goals become business as usual

One of the most discussed ways besides add-on technologies such as windmills and solar panels to enhance the energy efficiency of a building is through an energy efficient phys-ical design In practice this means reduction of energy used for heating cooling down and lighting of the building through an optimal orientation and dimensioning of the build-ing

Integrated energy design contrary to add-on technologies can be achieved on a rath-er modest additional budget This should be good news for the sector that today is eco-nomically pressed Indeed today many low energy building projects claim to use the in-tegrated energy design method (IED) when seeking to meet the most ambitious energy related goals In this commentary I wish to discuss some challenges related to the imple-mentation of this design tool

The integrated energy design method sug-gests that one of the main problems in not achieving energy efficiency is that energy related concerns become integrated into the design process too late The method consists of two elements the first of which addresses the need to bring in energy related knowl-edge throughout the design process It sug-gests that design teams ought to be multidis-ciplinary and that architects engineers and experts should work together either co-lo-cated or in a series of workshops Further-more it suggests systematizing energy quali-ty follow-ups into the design process This is all very relevant and inspiring

Oddly enough a closer look on the actual design practices reveals that few seem to ac-tually follow the method of integrated energy design to the point This poses an interest-ing question about the challenges related to the use of such management technologies as vehicles for increased energy efficiency in construction Maybe it is about time practi-tioners and researchers ask themselves what are the boundaries of and challenges related to the use of these tools ndash and what else is required for organizing for more energy effi-cient building design processes

A revolution of relations

Integrated energy design points to the need to bring energy related expertise into the de-sign process at an earlier point In order to achieve this cooperative practices between different professional groups are advocated for Historically energy experts have most-ly been used to respond to rather advanced architectural plans Shared workshops and co-localization suggest a change in these business as usual relations But are they pos-sible and what type of changes do they ac-tually imply in order to function as wished

Research

33CSQ

Satu Reijonen is postdoctoral scholar at the Department of Organization at CBS In her on-going research project she investigates how architects and energy engineers two different profes-sions cooperate and coordinate their work regarding energy related ques-tions in construction design The ways in which relations between and roles of these professions become consti-tuted through socio-material arrange-ments are a central topics in her work Besides studies of work Satu has con-ducted research on environmentally friendly products and markets

ABOUT SATU RAIJONEN

The initiation of this type of new working forms is certainly beneficial for energy effi-cient design However for several reasons they are more difficult to make work than one would assume While it may sound rea-sonable it is after all a tall order Integrating energy related practices into an environment where different visions professions and in-terests meet and the divide between what one profession does is clearly and historically demarcated is demanding While architects need to make room for the intervention of energy experts into the creative work energy experts have to become capable of working creatively and relate to and follow the visual and aesthetic cues from architects In order to work these kind of changes in the profes-sional roles and relations have to resonate with the skills and visions of individual work-ers not only management level design strat-egies It is not surprising that organizational change scholars remind us of the possibility of loose coupling from the strategies placed at the management level (March 1981) What integrated energy design suggests is a kind of a revolution in the ways in which both the architects and the energy engineers envision their role and space of mobility

Linear tools in an unlinear design process

Integrated energy design suggests that the energy performance of the emerging build-ing design be followed up at certain points during the design process The method de-picts a rather mechanistic and linear under-standing of a design process consisting of phases within which iteration may occur While energy related issues may be dis-cussed as quality goals during these phases the method places a lot of emphasis on the check ups performed in the transition from one phase to another Design processes how-ever can also be characterized in a different manner unlinear exploratory and whirl wind type of practices where clear cut phases hardly exist (Akrich 1992 Van de Ven et al 1999) This also applies to the architectural design processes where the object of the de-sign is emergent (Yaneva 2009) This entails that the product the building may change in unexpected ways during any day of the de-sign process If this alternative description of the design processes is viable delegating energy related issues to some predetermined check up episodes may strike a false accord and indeed be contradictory with the aim of enhancing coordination and cooperation between professional groups What happens in between the predetermined checkups may very well be where the energy efficiency of the building becomes configured and where the intervention from the energy experts

would come most needed Perhaps this is why the best performing projects do not blindly follow the steps of the IED method Check ups however and no doubt play a role in verifying and making visible the energy performance for partners outside the design team

Integrated energy design as many other sus-tainability standards and guidelines make visible systematize and legitimize the ex-istence of environmental management and sustainability issues in organizations and work processes In this such way tools create awareness and legitimacy for environmental and sustainability issues The integrated en-ergy design method also suggests a possible way of thinking about what type of design practice might help us to achieve the stricter energy requirements of the future It howev-er falls short in becoming the change agent it suggests This is hardly surprising as a meth-od or a standard of any kind should only be seen as a possibility or as an opening for an inquiry of what the practice could be about Reconfiguring a well established practice is hard work and it would be foolish to trust that a design method would achieve it by itself What the method does is to alert us of the more profound changes in the pro-fessional roles and relations that is needed in order to enable the change However the method due to its rather mechanical under-standing of the design process may come to work against its own ambition of integrating energy issues into the design work In its quest for integration the method defines at which points in time the architectural and the engineering project has to be checked for its energy performance This approach may lead to bringing in energy related concerns in some artificially created points in a design process which may additionally compart-mentalize energy related issues from where the design really happens

Integrated energy design as many other sustainability standards and guidelines make visible systematize and legitimize the existence of environmental management and sustainability issues in organizations and work pro-cessesrdquo

ldquoLiteratureAkrich M (1992) The De-Scription of Technical Objects in Shaping Technology Building Society Studies in Soci-otechnical Change eds WE Bijker and J Law The MIT Press Cambridge Massachusetts pp 205-224

FIEC 2007 The impacts of buildings on climate change httpwwwbuildingsplatformeuepbd_publicationdocFIEC_Memo_p2919pdf on 1222008

March JG (1981) Footnotes to Organizational Change Administrative Science Quarterly vol 26 No 4 pp 563-577

Van de Ven A D Polley R Garud and SVenkataraman (1999) The innovation Journey Oxford Oxford Univer-sity Press

Yaneva A (2009) The making of a building A pragmatist approach to Architecture Bern Peter Lang

More about integrated energy design(IED)

httpwwwintendesigncomosloIntendnsfAttachmentsGuideline_Version_2pdf$FILEGuideline_Version_2pdf

34 CSQ

The climate challenge in

shipping

ldquoGlobal shipping faces two major challenges both of which are caused by its reliance on fossil fuelsrdquo

By Reneacute Taudal Poulsen Department of Innovation amp Organizational Economics

RENEacute TAUDAL POULSEN

ASSOCIATE PROFESSOR DEPARTMENT

OF INNOVATION AND ORGANIZATIONAL

ECONOMICS COPENHAGEN BUSINESS

SCHOOL

orecasts show that the shipping indus-tryrsquos CO2 emissions will most likely continue to rise in the next two to

three decades as demand for world sea-borne trade will expand At present global shipping accounts for approximately 33 per cent of global CO2 emissions but this share will most probably increase in the coming years if many onshore industries succeed in their aims of reducing emission levels

At the same time rapidly rising fuel costs put heavy strain on shipping company budg-ets Historically and until very recently fuel costs were only a minor concern for ship-ping companies but now they often exceed 60 per cent of variable operational costs Fuel savings made through energy efficiency improvements thus represent a win-win sce-nario for the shipping industry and for so-ciety at large They simply make good sense for everyone

Despite the strong incentives for fuel sav-ings numerous studies have demonstrated that shipping fails to implement cost-ef-fective measures to reduce fuel consump-tion Fuel-saving technologies are readily available in the market and in many cases pay-back periods are very short (less than a year) Changes in operational habits which require few if any investments also hold a significant potential for fuel savings

Global shipping thus holds several classic examples of energy-efficiency gaps Gaps occur wherever cost-effective measures to improve energy efficiency fail to materialize The causes for energy efficiency gaps have been a favourite research topic within the field of energy economics for decades and economists sociologists and political scien-tists have been able to identify several means to bridge the gaps However within the mar-itime domain energy efficiency gaps and the climate challenge remain neglected issues Legal barriers

Shipsrsquo fuel consumption rises steeply with speed Hence slow-steaming or just minor speed reductions can lower consumption and emission levels significantly Since oil prices started to rise rapidly a few years ago shipping companies have indeed resorted to various slow-steaming practices and com-panies which succeed in this regard have been able to gain competitive advantages In other words actors in the industry are trying to bridge the energy efficiency gap However and in spite of the strong price signals from the rising fuel prices a potential for fuel sav-ing through slow steaming still remains

FNew CBS research project

A new three year research project at CBS under-

taken by Reneacute Taudal Poulsen for the Department

of Innovation and Organizational Economics will

examine the climate issues bringing insights from

energy economics and innovation management

into the field of shipping economics The project

which is financed by The Danish Maritime Fund

runs from 2012 to 2015 The project asks why en-

ergy efficiency gaps continue to occur in shipping

and how shipping companies and the maritime

industry at large can use innovative business

models and process innovation to turn the climate

challenge and the rising fuel costs into a business

opportunity Energy efficiency gaps occur both

in daily operations and when investments in new

vessels are made This article will briefly present

two examples of energy efficiency gaps from

the operational level and some of the preliminary

findings of the project

References

Jaffe AB and RN Stavins 1994 lsquoThe energy efficiency gap What does it meanrsquo Energy Policy 22 (110) 804-10IMO 2009 Second IMO GHG Study 2009 London International Maritime OrganizationMoriarty P amp D Honnery 2012 lsquoEnergy efficiency Lessons from transportrsquo Energy Policy 46 1ndash3Poulsen Reneacute Taudal 2012 lsquoEmissions and energy efficiency - the twin challenges for shippingrsquo Mercator Maritime Innovation Research and Education MarchJune 447-454

Reneacute Taudal Poulsen is Associate Professor at the Department of Innovation and Organizational Eco-nomics at CBS He is also affliated with the Centre for Shipping Economics and Innovation at CBS Reneacute Taudal Poulsen holds a PhD degree in marine environmental history from the University of Southern Denmark and he has worked within the field of maritime business studies for the last seven years He has published in such journals as Fisheries Research Business History and Scandinavian Economic History Review

His current research intersts concern the environmen-tal challenges faced by the global shipping industry and business model innovation in the maritime domain

Research

35CSQ

It is clear that shipping companies cannot fully bridge the energy efficiency gap alone In fact factors beyond the control of in-dividual shipping companies and various structural or legal barriers prevent shipping from fully realizing the slow steaming po-tential

Port congestion remains a world-wide prob-lem and causes ships to spend remarkably long periods inactive Despite the financial crisis and the large drop in shipping freight markets after 2008 many loaded vessels sit at anchor outside ports waiting for berths In some cases they wait for a few hours In other cases for days weeks or even months Instead of waiting the ships could have re-duced speeds and saved fuel And the de-livery and the loading of the cargo in port would not have been delayed in any way However in many cases shipping companies or ship operators cannot reduce speed in spite of port congestion

Educational barriers

Energy efficiency gaps in shipping are also evident when the fuel consumption levels of sister ships are compared Even though the vessels are identical and operate in the same waters studies have shown that their fuel consumption may differ by several Decisions made by the crews onboard and by managers in the onshore organizations clearly influence the level of fuel consump-tion For instance if a captain selects only very small course deviation margins when coding the autopilot of the ship the shiprsquos rudder will move frequently to keep the ship on the exact course all the time This will slow down the ship and cause higher fuel consumption than if the captain had allowed for slightly wider margins and the wider margins would not have any effect on the safety of the ship Decisions made by the commercial depart-ments eg on how to crew the vessels how to monitor vessel fuel consumption or which new equipment to install onboard may also

have a large impact on fuel efficiency and emission levels If shipping company man-agers can nurture a fuel saving culture this could potentially make a difference Since 2007 or 2008 shipping companies have in-deed started to facilitate such organizational changes but educational barriers remain a problemOnshore truck drivers are now offered fuel saving courses but fuel-saving is not a major part of the traditional curriculum in nautical schools or in the commercial education of shipping trainees For good reasons the nau-tical educations have focused on maritime safety but this has caused them to neglect the climate challenge in shipping and the is-sue of fuel saving In fact no single nauticaltext book on maritime fuel savings has yet been published and according to teachers and students in the nautical schools this serves as an educational barrier to ener-gy-efficiency improvements The technical level of education for commercial employees in shipping companies may also hinder im-provements in energy-efficiency Some com-

mercial shipping employees may not have sufficient training to fully see and acknowl-edge the consequences of their decisions on fuel consumption In short it seems that fuel awareness and the educational systems have responded more slowly to the climate chal-lenge than the rise in fuel prices may other-wise suggest

For shipping to bridge energy-efficiency gaps education ndash both nautical and com-mercial ones ndash clearly is an area to set in Here the potential for innovative solutions is both evident and pertinent Changing educational systems and awareness is no easy task bearing in mind the global nature of the shipping industry and international crewing of the world fleet It is clear howev-er that educational upgrading is necessary for shipping to effectively address the cli-mate challenge effectively

Charter parties between ship-operators and shippers state a specific time of arrival for the vessel and in order to avoid claims ships proceed to port accordingly regardless of berth availability Experiments with new more flexible charter parties which allow for slow steaming in case of port congestion have recently been made Shipping compa-nies have generally been enthusiastic about this flexibility but often shippers remain skeptical Lack of trust between shippers which need the loading of their cargoes as soon as possible and shipping companies may be a cause for this discrepancy Even in cases where the savings made from slow-steaming are split between shipping companies and shippers shippers have re-mained skeptical Port queuing systems may have a role to play here

Many ports including some of the major container iron ore coal and grain ports serve ships on ldquofirst-come first-servedrdquo ba-sis Ships only receive their ldquoticketrdquo in the

waiting line upon their arrival at the port Again lack of trust between the ship-oper-ators shippers and the port authorities may explain this phenomenon Moreover port authorities currently do not have incentives to change queuing practices because they cannot gain a share in the fuel savings made from slow-steaming

The problem is particularly strong in the major tramp shipping segments of tanker and dry cargo shipping where vessels act as ldquotaxis of the seardquo serving numerous shippers and rarely calling at the same ports If the fleet from a shipping company only calls at a particular port once a year and the compa-ny has very short-term relations to individ-ual shippers building trustful relationships between the parties remains a major chal-lenge Solving this problem and realizing the full potential of slow steaming will require systemic innovation in shipping and port systems and further studies are required to identify possible solutions

36 CSQ

The Wind turbine industry -

Emerging global innovation networks in Europe and China

The wind turbine industry has developed into a global network encompassing a large amount of diverse actors within innovation production and installation of wind turbines across the globe

By Stine Haakonsson and Julia Kirch Hollitsch Department of Business amp Politics CBS

market for wind energy Chinese actors have turned China as a location into another im-portant lsquohubrsquo in this network This has led to new forms of innovation collaborations between European and Chinese actors The result has been a complete re-configuration of the industry over the past decade In the International Business and Economic Geog-raphy literatures the development of global production networks in which lead-firms be-come orchestrators of dispersed production

enmark has traditionally played a key role as an lsquoinnovation hubrsquo and com-

panies in Denmark remain among the lead firms within the wind turbine industry Re-cently the industry has reorganized from being located predominantly in the Triad regions (mainly in Europe and the US) to becoming a globally dispersed industry This development can partly be explained by de-velopments in international and national politics Due to the growth of the Chinese

activities in globalized value chains is well established theoretically as well as empiri-cally In the globalization process lead firms relocate production activities to low cost lo-cations by off-shoring and through vertical disintegration and outsourcing to specialized suppliers Producers of wind turbines are no exception However until recently the mar-ket and innovation activities remained con-centrated in Europe and US

With the recent focus on global politics for a post-carbon society the market for wind tur-bines has experienced an immense growth and a high degree of market globalization New locations have developed into main markets One of these is China which since 2010 has been the largest market for wind turbines in the world (in capacity installed) The globalization process in the wind tur-bine can be explained by a combination of offshoring of production by European lead firms mainly through foreign direct invest-ment and establishment of domestic lead firms in emerging markets In 2010 there were four Chinese-owned companies among the top-10 producers of wind turbines as compared to 2003 where all firms on this list were from Europe and the US

D

Julia Kirch Hollitsch

Stine Haakonsson

Stine Haakonsson and Julia Kirch Hollitsch from Depart-

ment of Business and Politics CBS are engaged in the

Sino-Danish Center for Research and Education (SDC)

project on Wind Energy in China Both research on the

current restructuring of industries and firms at the glob-

al level (outsourcing off shoring global value chains)

In particular their research is on 1) the restructuring of

innovation and RampD activities into global innovation net-

works(GINs)2)thechangingroleofemergingmarkets

(ChinaIndiaBrazilSouthAfrica)intheseemergingGINs

and 3) technology transfer and capability building related

to renewable energy

Research

37CSQ

by adapting their products to the Chinese market and through cost-out development activities in the new locations primarily China

As a result the wind industry is today highly knowledge-intensive and internationalized Due to increased attention and investments in sustainable transition policies and car-bon-reducing technology China has over the past decade developed into a high prior-ity investment area for wind turbines Also Chinese companies are upgrading technol-ogy and innovation from the global firms through integration into GINs Moreover the production and innovation networks for wind energy become highly complex and consist of many different suppliers of com-ponents (blades gear boxes control systems bearings) resulting in a variety of network linkages among suppliers of different com-ponents and the wind turbine producers

From our empirical data including more than 40 in-depth interviews collected in 2011 and 2012 in the wind turbines indus-tries in China and Denmark we have identi-fied some very interesting patterns We have identified very different characteristics of the GINs established by the Chinese wind tur-bine industry and the European wind tur

Emerging Global Innovation Networks

Innovation processes are also moving be-yond the boundaries of individual compa-nies and national innovation systems Firms engage in cross-border innovation networks spanning different innovation systems which may be national regional or sectorial in or-der to stay competitive in the global econ-omy Chinese lead firms are entering this scene too The result is globally organized networks of interconnected and integrated functions and operations by firms and non-firm organizations engaged in the develop-ment and diffusion of innovations so-called Global Innovation Networks (GINs) Lead firms internationalize innovation through strategies of exploitation global generation of innovation and global techno-scientific collaborations Chinese wind turbine pro-ducers ndash acknowledging their resource and capability deficiency ndash pursue strategies of innovation network integration through strategies of global generation of innovation These firms link up with specialized Europe-an actors such as core component suppliers through partnerships and networks in or-der to tap into the technology of firms from developed countries and upgrade Mean-while European companies internationalize through exploitation strategies for example

bine industry Although Danish and Chinese actors are experiencing a re-organization of activities and establish networks and globa-linnovation strategies the result is very dif-ferent

The industry from Europe and US

The industry from Europe and the US hosts the lead firms in terms of core technology de-velopment Denmark has traditionally played a key role as lsquoinnovation hubrsquo in technology development and global lead firms such as Vestas and Siemens Windpower (previously Danish lsquoBonusrsquo) took its start already in the 1970s The core competences of the Danish wind turbine innovation system are based on large testing facilities and long track records mainly due to the long time-line of experi-ence The wind industry goes 40 years back and therefore Denmark has a good knowl-edge pool within establishing wind farms (aerodynamics minimizing power loss in energy transmission wind mapping and other installation-related technologies)

38 CSQ

that will make it possible to finance the pro-jects ldquoFrom then on our wind turbine pro-jects developed very fastrdquo(Interview Wind Engineer Chinese Academy of Sciences) Thus this law was a milestone for elevating renewables to a strategic position in China or as expressed by a European lead-firm ldquoWhat drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick offrdquo

Until the turn of the millennium Chinarsquos wind energy industry was largely built on donors acquisition of finished wind turbines and licensed technology from European companies spread on a very small scale into the local industry during the mid 1990s Chi-nese wind turbine technology has evolved from imitation reverse engineering and licensing in the 1980-90s combined with assistance from foreign consultants One example is how DANIDA funded a project in 1986 for Goldwind in Xinjiang which imported 13 units of 150 kW lsquoBonusrsquo (now Siemens Wind Power) turbines

To get beyond the stage of pure imitation several policies have been introduced with the intent to upgrade Chinese manufacturers to obtain indigenous innovative capabilities Policy programs were introduced to enhance Chinese companies to develop wind energy subsidizing wind energy RampD expenditures at varied levels over time establishing a re-newable energy fund and through the ldquo863 Wind Programrdquo under the Tenth Five-Year Plan (2001-2005) Local content require-ments were put in place in which develop-ers of wind energy projects were required to source 70 pct of the content in China These policies ndash which essentially forced foreign manufacturers wishing to sell wind turbines to the Chinese market to establish China-based manufacturing facilities ndash were only removed recently (in 2009) One result was that the foreign companies had to up-grade local suppliers of components

Due to the technological complexity many European (and hereby also the Danish) firms are vertically integrated and have most com-ponents produced in-house or with regular specialized suppliers According to these companies the different parts need to be well adjusted to each other to some extent even co-developed in order to enhance effi-ciency and the lifetime of the wind turbine Likewise the European industry has expe-rienced a concentration of actors with the result that there are only relatively few but large manufacturers in Europe (the larg-est ones are Vestas Siemens Gamesa and Enercon) Together these four companies accounted for about 35 of the global mar-ket in 2010 By seeing the wind turbine as an integrated system these lead firms aim at producing lsquothe Rolls Roycersquo model wind turbines These are strong in terms of qual-ity and standards but generally expensive These firms learn cost-out techniques from their engagement with partners in China

The Chinese Wind Turbine Industry

Today the Chinese wind turbine industry is overly competitive It entails more than 80 wind turbine manufacturers and the Chi-nese market boasts the highest growth rates internationally with an average growth rate of 968 percentages annually in the last three years Several large domestic Chinese wind turbine manufacturers have emerged within the last decade Sinovel and Goldwind take the largest share followed by United Pow-er and Ming Yang just to mention some of them As of the end of 2010 these four were A major driver for the development of the Chinese wind energy market has been the establishment of an institutional context as a comprehensive concerted policy frame-work addressing the development of renewa-ble energies This change in the institutional context was first reflected clearly in the 11th 5-year-plan (2006-2010) which explicitly linked environmental sustainability to the key goal of establishing what was called a harmonious socialist society signalling a socially environmentally and economically sustainable economy With the Renewable Energy Law from 2005 the Chinese wind energy industry really took off as it explicitly seeks to ensure that renewable energy pro-jects have an outlet for their output at prices

Technical barriers and the role of GINs for a post-carbon society

Despite high ambitions in terms of devel-oping innovative capabilities Chinese pro-ducers still produce almost exclusively for the Chinese market However Chinese wind turbine manufacturers have recently started an internationalisation process and some are approaching international markets Not least for tapping into new knowledge

Europe (and Denmark in particular) is per-ceived as a main location from which the Chinese companies can learn more A cou-ple of Chinese companies have already set up RampD centres in Denmark European firms have also initiated RampD centres in new lo-cations primarily China and India In other words GINs can be identified

Our research also points towards important barriers for GINs in the wind turbine in-dustry and for approaching a post-carbon global society Most importantly are the technological barriers intellectual property rights quality issues and issues of limited appropriability of knowledge Further the institutional framework remain relevant for displaying how the sector and the emerging GINs are embedded institutionally socially and technologically Whether actors trans-act knowledge technology and know-how through cooperative innovation activities also depends on how core the technology of a given technology is Still as the market grows in China it seems to have matured in Europe because of changing policies on re-newable energy To sustain the position as a global lsquohubrsquo and world leader in wind tech-nologies there is a strong need for support in Europe as this research really shows how fast the Chinese industry is moving One major result is how important networks are for upgrading companies and it seems that Chinese firms perform better in network strategies and manage to tap into relevant knowledge than the European firms

What drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick off rdquoldquoInterview Wind Engineer Chinese Academy of Sciences

39CSQ

Social Enterprise World

ForumNadine Koumlcher from 180Degrees recounts her experience from the

conference on

Rio de Janeiro Brazil 2012

In the numerous panel debates and parallel track discussion it became clear that Impact Investment is a hot topic among both social entrepreneurs and impact investors a diverse group consisting of corporations founda-tions and potential donors However various obstacles impede a harmonious relationship between the twoSocial enterprises face structural challenges to make themselves more appealing to im-pact investors They have to become more transparent and increase their accountability This includes improving their impact assess-ment and reporting tools However despite much discussion no consensus could be formed on how to optimally conduct im-pact assessment One of the most frequently proposed methodologies involves the use

From the 16th to the 18th of October the CBS Sustainability Platform granted me the opportunity to attend the 5th Social Enter-prise World Forum which took place in Rio de Janeiro Brazil This yearly international conference focuses on social enterprises and their effectiveness in solving social challeng-es The overall theme of the 2012 conference hosted by NESsT was ldquoSocial Enterprise Investing for Impactrdquo Thus for three days over 180 speakers and 650 delegates from 30 different countries shared their experiences regarding impact investment and discussed possibilities to attract new investment by both the public and the private sector for so-cial enterprises

of control groups Story-telling has also been men-tioned to be a powerful tool to provide investors with a proof of outcomesSocial investors are willing to accept returns just below the market rate in exchange for a social return However large profits are still expect-ed and many social enter-prises are afraid of being unable to generate them Social enterprises typically operate on a small scale and are not used to undertake large projects with huge sums of investment given to them Many are too small for social investors to be

attractive as costs are similar for small and large investments although larger invest-ments have a higher payoff

Nichole Echert the CEO of NESsT there-fore pointed out that it is necessary to align expectations between impact investors and social entrepreneurs and to be patient in establishing a relationship between the two groups The expected financial return has to be reasonable close to covering the costs of operation and social returns have to be re-ported to investors by use of clearer criteria

By Nadine Koumlcher Director of Branch Development180 Degrees Consulting Limited

ldquoSocial Enterprise Investing for Impactrdquo

Students

40 CSQ

A highlight of the con-ference was definitely the site visit to a social enterprise project in a recently pacified fave-la It brought further insights on the great variety of social enter-prises that exist in Bra-zil and their missions and struggles We visit-ed a community center at which Comitecirc para

Democratizaccedilao da Informaacutetica (CDI) uses technology to fight poverty and to stimulate entrepreneurship CDI has formed a corpo-rate partnership with Coca Cola which in the same building teaches young locals how to write a CV and find a job Talking to the young locals at the center it became apparent that an increased self-confidence and the in-spiration they get from meeting former now employed participants of the project (eg at Coca Cola) is what they valued most of being part of the class

Participating at the conference was definite-ly a unique and valuable experience I would not want to miss as I tremendously improved my knowledge in the field of social enter-prises through attending the numerous pres-entations and discussions and further met so many inspiring social entrepreneurs impact

In addition it has been stressed that the problem is not a shortage of investment capital (even though the government could promote more impact investment by for instance granting tax breaks) but how to deploy it Social entrepreneurs also have to be aware of the different advantages and dis-advantages of the various types of capital It has to fit their process of establishment and it has therefore been suggested that funds and grants are most optimal in the start-up phase to cover such costs as capacity train-ing There is generally a lack of this early stage financial support Following the initial phase strategic philanthropy money would be most appropriate before impact and final-ly equity investment is sought Furthermore new ways of investment which fit the social enterprise world have to be created replac-ing the current situation of trying to fit social enterprises into the current financial world

investors and students with a genuine inter-est in the field

Participating at the conference was definitely a unique and valuable experience rdquo

ldquo

Social Enterprise World Forum 2013 in

Calgary Canada

The TRICO Charitable Foundation in part-nership with the Social Enterprise Council of Canada and the Social Finance Forum has been selected to host the 6th Annual Social Enterprise World Forum SEWF 2013 will take place October 2-4 2013 in Calgary Al-berta The Forum will present the Canadian social enterprise movement with opportuni-ties to engage learn and share on the inter-national stage

SEWF 2013 will be a gathering of over 1000 Canadian and international delegates who are involved in the social enterprise move-ment where the blending of social and fi-nancial values is core to business Attendees will consist of practitioners (from all sec-tors) funders investors supporters elected officials and public servants from around the world

Nadine Koumlcher

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 33: CBS Sustainability Quarterly 2013 #1

33CSQ

Satu Reijonen is postdoctoral scholar at the Department of Organization at CBS In her on-going research project she investigates how architects and energy engineers two different profes-sions cooperate and coordinate their work regarding energy related ques-tions in construction design The ways in which relations between and roles of these professions become consti-tuted through socio-material arrange-ments are a central topics in her work Besides studies of work Satu has con-ducted research on environmentally friendly products and markets

ABOUT SATU RAIJONEN

The initiation of this type of new working forms is certainly beneficial for energy effi-cient design However for several reasons they are more difficult to make work than one would assume While it may sound rea-sonable it is after all a tall order Integrating energy related practices into an environment where different visions professions and in-terests meet and the divide between what one profession does is clearly and historically demarcated is demanding While architects need to make room for the intervention of energy experts into the creative work energy experts have to become capable of working creatively and relate to and follow the visual and aesthetic cues from architects In order to work these kind of changes in the profes-sional roles and relations have to resonate with the skills and visions of individual work-ers not only management level design strat-egies It is not surprising that organizational change scholars remind us of the possibility of loose coupling from the strategies placed at the management level (March 1981) What integrated energy design suggests is a kind of a revolution in the ways in which both the architects and the energy engineers envision their role and space of mobility

Linear tools in an unlinear design process

Integrated energy design suggests that the energy performance of the emerging build-ing design be followed up at certain points during the design process The method de-picts a rather mechanistic and linear under-standing of a design process consisting of phases within which iteration may occur While energy related issues may be dis-cussed as quality goals during these phases the method places a lot of emphasis on the check ups performed in the transition from one phase to another Design processes how-ever can also be characterized in a different manner unlinear exploratory and whirl wind type of practices where clear cut phases hardly exist (Akrich 1992 Van de Ven et al 1999) This also applies to the architectural design processes where the object of the de-sign is emergent (Yaneva 2009) This entails that the product the building may change in unexpected ways during any day of the de-sign process If this alternative description of the design processes is viable delegating energy related issues to some predetermined check up episodes may strike a false accord and indeed be contradictory with the aim of enhancing coordination and cooperation between professional groups What happens in between the predetermined checkups may very well be where the energy efficiency of the building becomes configured and where the intervention from the energy experts

would come most needed Perhaps this is why the best performing projects do not blindly follow the steps of the IED method Check ups however and no doubt play a role in verifying and making visible the energy performance for partners outside the design team

Integrated energy design as many other sus-tainability standards and guidelines make visible systematize and legitimize the ex-istence of environmental management and sustainability issues in organizations and work processes In this such way tools create awareness and legitimacy for environmental and sustainability issues The integrated en-ergy design method also suggests a possible way of thinking about what type of design practice might help us to achieve the stricter energy requirements of the future It howev-er falls short in becoming the change agent it suggests This is hardly surprising as a meth-od or a standard of any kind should only be seen as a possibility or as an opening for an inquiry of what the practice could be about Reconfiguring a well established practice is hard work and it would be foolish to trust that a design method would achieve it by itself What the method does is to alert us of the more profound changes in the pro-fessional roles and relations that is needed in order to enable the change However the method due to its rather mechanical under-standing of the design process may come to work against its own ambition of integrating energy issues into the design work In its quest for integration the method defines at which points in time the architectural and the engineering project has to be checked for its energy performance This approach may lead to bringing in energy related concerns in some artificially created points in a design process which may additionally compart-mentalize energy related issues from where the design really happens

Integrated energy design as many other sustainability standards and guidelines make visible systematize and legitimize the existence of environmental management and sustainability issues in organizations and work pro-cessesrdquo

ldquoLiteratureAkrich M (1992) The De-Scription of Technical Objects in Shaping Technology Building Society Studies in Soci-otechnical Change eds WE Bijker and J Law The MIT Press Cambridge Massachusetts pp 205-224

FIEC 2007 The impacts of buildings on climate change httpwwwbuildingsplatformeuepbd_publicationdocFIEC_Memo_p2919pdf on 1222008

March JG (1981) Footnotes to Organizational Change Administrative Science Quarterly vol 26 No 4 pp 563-577

Van de Ven A D Polley R Garud and SVenkataraman (1999) The innovation Journey Oxford Oxford Univer-sity Press

Yaneva A (2009) The making of a building A pragmatist approach to Architecture Bern Peter Lang

More about integrated energy design(IED)

httpwwwintendesigncomosloIntendnsfAttachmentsGuideline_Version_2pdf$FILEGuideline_Version_2pdf

34 CSQ

The climate challenge in

shipping

ldquoGlobal shipping faces two major challenges both of which are caused by its reliance on fossil fuelsrdquo

By Reneacute Taudal Poulsen Department of Innovation amp Organizational Economics

RENEacute TAUDAL POULSEN

ASSOCIATE PROFESSOR DEPARTMENT

OF INNOVATION AND ORGANIZATIONAL

ECONOMICS COPENHAGEN BUSINESS

SCHOOL

orecasts show that the shipping indus-tryrsquos CO2 emissions will most likely continue to rise in the next two to

three decades as demand for world sea-borne trade will expand At present global shipping accounts for approximately 33 per cent of global CO2 emissions but this share will most probably increase in the coming years if many onshore industries succeed in their aims of reducing emission levels

At the same time rapidly rising fuel costs put heavy strain on shipping company budg-ets Historically and until very recently fuel costs were only a minor concern for ship-ping companies but now they often exceed 60 per cent of variable operational costs Fuel savings made through energy efficiency improvements thus represent a win-win sce-nario for the shipping industry and for so-ciety at large They simply make good sense for everyone

Despite the strong incentives for fuel sav-ings numerous studies have demonstrated that shipping fails to implement cost-ef-fective measures to reduce fuel consump-tion Fuel-saving technologies are readily available in the market and in many cases pay-back periods are very short (less than a year) Changes in operational habits which require few if any investments also hold a significant potential for fuel savings

Global shipping thus holds several classic examples of energy-efficiency gaps Gaps occur wherever cost-effective measures to improve energy efficiency fail to materialize The causes for energy efficiency gaps have been a favourite research topic within the field of energy economics for decades and economists sociologists and political scien-tists have been able to identify several means to bridge the gaps However within the mar-itime domain energy efficiency gaps and the climate challenge remain neglected issues Legal barriers

Shipsrsquo fuel consumption rises steeply with speed Hence slow-steaming or just minor speed reductions can lower consumption and emission levels significantly Since oil prices started to rise rapidly a few years ago shipping companies have indeed resorted to various slow-steaming practices and com-panies which succeed in this regard have been able to gain competitive advantages In other words actors in the industry are trying to bridge the energy efficiency gap However and in spite of the strong price signals from the rising fuel prices a potential for fuel sav-ing through slow steaming still remains

FNew CBS research project

A new three year research project at CBS under-

taken by Reneacute Taudal Poulsen for the Department

of Innovation and Organizational Economics will

examine the climate issues bringing insights from

energy economics and innovation management

into the field of shipping economics The project

which is financed by The Danish Maritime Fund

runs from 2012 to 2015 The project asks why en-

ergy efficiency gaps continue to occur in shipping

and how shipping companies and the maritime

industry at large can use innovative business

models and process innovation to turn the climate

challenge and the rising fuel costs into a business

opportunity Energy efficiency gaps occur both

in daily operations and when investments in new

vessels are made This article will briefly present

two examples of energy efficiency gaps from

the operational level and some of the preliminary

findings of the project

References

Jaffe AB and RN Stavins 1994 lsquoThe energy efficiency gap What does it meanrsquo Energy Policy 22 (110) 804-10IMO 2009 Second IMO GHG Study 2009 London International Maritime OrganizationMoriarty P amp D Honnery 2012 lsquoEnergy efficiency Lessons from transportrsquo Energy Policy 46 1ndash3Poulsen Reneacute Taudal 2012 lsquoEmissions and energy efficiency - the twin challenges for shippingrsquo Mercator Maritime Innovation Research and Education MarchJune 447-454

Reneacute Taudal Poulsen is Associate Professor at the Department of Innovation and Organizational Eco-nomics at CBS He is also affliated with the Centre for Shipping Economics and Innovation at CBS Reneacute Taudal Poulsen holds a PhD degree in marine environmental history from the University of Southern Denmark and he has worked within the field of maritime business studies for the last seven years He has published in such journals as Fisheries Research Business History and Scandinavian Economic History Review

His current research intersts concern the environmen-tal challenges faced by the global shipping industry and business model innovation in the maritime domain

Research

35CSQ

It is clear that shipping companies cannot fully bridge the energy efficiency gap alone In fact factors beyond the control of in-dividual shipping companies and various structural or legal barriers prevent shipping from fully realizing the slow steaming po-tential

Port congestion remains a world-wide prob-lem and causes ships to spend remarkably long periods inactive Despite the financial crisis and the large drop in shipping freight markets after 2008 many loaded vessels sit at anchor outside ports waiting for berths In some cases they wait for a few hours In other cases for days weeks or even months Instead of waiting the ships could have re-duced speeds and saved fuel And the de-livery and the loading of the cargo in port would not have been delayed in any way However in many cases shipping companies or ship operators cannot reduce speed in spite of port congestion

Educational barriers

Energy efficiency gaps in shipping are also evident when the fuel consumption levels of sister ships are compared Even though the vessels are identical and operate in the same waters studies have shown that their fuel consumption may differ by several Decisions made by the crews onboard and by managers in the onshore organizations clearly influence the level of fuel consump-tion For instance if a captain selects only very small course deviation margins when coding the autopilot of the ship the shiprsquos rudder will move frequently to keep the ship on the exact course all the time This will slow down the ship and cause higher fuel consumption than if the captain had allowed for slightly wider margins and the wider margins would not have any effect on the safety of the ship Decisions made by the commercial depart-ments eg on how to crew the vessels how to monitor vessel fuel consumption or which new equipment to install onboard may also

have a large impact on fuel efficiency and emission levels If shipping company man-agers can nurture a fuel saving culture this could potentially make a difference Since 2007 or 2008 shipping companies have in-deed started to facilitate such organizational changes but educational barriers remain a problemOnshore truck drivers are now offered fuel saving courses but fuel-saving is not a major part of the traditional curriculum in nautical schools or in the commercial education of shipping trainees For good reasons the nau-tical educations have focused on maritime safety but this has caused them to neglect the climate challenge in shipping and the is-sue of fuel saving In fact no single nauticaltext book on maritime fuel savings has yet been published and according to teachers and students in the nautical schools this serves as an educational barrier to ener-gy-efficiency improvements The technical level of education for commercial employees in shipping companies may also hinder im-provements in energy-efficiency Some com-

mercial shipping employees may not have sufficient training to fully see and acknowl-edge the consequences of their decisions on fuel consumption In short it seems that fuel awareness and the educational systems have responded more slowly to the climate chal-lenge than the rise in fuel prices may other-wise suggest

For shipping to bridge energy-efficiency gaps education ndash both nautical and com-mercial ones ndash clearly is an area to set in Here the potential for innovative solutions is both evident and pertinent Changing educational systems and awareness is no easy task bearing in mind the global nature of the shipping industry and international crewing of the world fleet It is clear howev-er that educational upgrading is necessary for shipping to effectively address the cli-mate challenge effectively

Charter parties between ship-operators and shippers state a specific time of arrival for the vessel and in order to avoid claims ships proceed to port accordingly regardless of berth availability Experiments with new more flexible charter parties which allow for slow steaming in case of port congestion have recently been made Shipping compa-nies have generally been enthusiastic about this flexibility but often shippers remain skeptical Lack of trust between shippers which need the loading of their cargoes as soon as possible and shipping companies may be a cause for this discrepancy Even in cases where the savings made from slow-steaming are split between shipping companies and shippers shippers have re-mained skeptical Port queuing systems may have a role to play here

Many ports including some of the major container iron ore coal and grain ports serve ships on ldquofirst-come first-servedrdquo ba-sis Ships only receive their ldquoticketrdquo in the

waiting line upon their arrival at the port Again lack of trust between the ship-oper-ators shippers and the port authorities may explain this phenomenon Moreover port authorities currently do not have incentives to change queuing practices because they cannot gain a share in the fuel savings made from slow-steaming

The problem is particularly strong in the major tramp shipping segments of tanker and dry cargo shipping where vessels act as ldquotaxis of the seardquo serving numerous shippers and rarely calling at the same ports If the fleet from a shipping company only calls at a particular port once a year and the compa-ny has very short-term relations to individ-ual shippers building trustful relationships between the parties remains a major chal-lenge Solving this problem and realizing the full potential of slow steaming will require systemic innovation in shipping and port systems and further studies are required to identify possible solutions

36 CSQ

The Wind turbine industry -

Emerging global innovation networks in Europe and China

The wind turbine industry has developed into a global network encompassing a large amount of diverse actors within innovation production and installation of wind turbines across the globe

By Stine Haakonsson and Julia Kirch Hollitsch Department of Business amp Politics CBS

market for wind energy Chinese actors have turned China as a location into another im-portant lsquohubrsquo in this network This has led to new forms of innovation collaborations between European and Chinese actors The result has been a complete re-configuration of the industry over the past decade In the International Business and Economic Geog-raphy literatures the development of global production networks in which lead-firms be-come orchestrators of dispersed production

enmark has traditionally played a key role as an lsquoinnovation hubrsquo and com-

panies in Denmark remain among the lead firms within the wind turbine industry Re-cently the industry has reorganized from being located predominantly in the Triad regions (mainly in Europe and the US) to becoming a globally dispersed industry This development can partly be explained by de-velopments in international and national politics Due to the growth of the Chinese

activities in globalized value chains is well established theoretically as well as empiri-cally In the globalization process lead firms relocate production activities to low cost lo-cations by off-shoring and through vertical disintegration and outsourcing to specialized suppliers Producers of wind turbines are no exception However until recently the mar-ket and innovation activities remained con-centrated in Europe and US

With the recent focus on global politics for a post-carbon society the market for wind tur-bines has experienced an immense growth and a high degree of market globalization New locations have developed into main markets One of these is China which since 2010 has been the largest market for wind turbines in the world (in capacity installed) The globalization process in the wind tur-bine can be explained by a combination of offshoring of production by European lead firms mainly through foreign direct invest-ment and establishment of domestic lead firms in emerging markets In 2010 there were four Chinese-owned companies among the top-10 producers of wind turbines as compared to 2003 where all firms on this list were from Europe and the US

D

Julia Kirch Hollitsch

Stine Haakonsson

Stine Haakonsson and Julia Kirch Hollitsch from Depart-

ment of Business and Politics CBS are engaged in the

Sino-Danish Center for Research and Education (SDC)

project on Wind Energy in China Both research on the

current restructuring of industries and firms at the glob-

al level (outsourcing off shoring global value chains)

In particular their research is on 1) the restructuring of

innovation and RampD activities into global innovation net-

works(GINs)2)thechangingroleofemergingmarkets

(ChinaIndiaBrazilSouthAfrica)intheseemergingGINs

and 3) technology transfer and capability building related

to renewable energy

Research

37CSQ

by adapting their products to the Chinese market and through cost-out development activities in the new locations primarily China

As a result the wind industry is today highly knowledge-intensive and internationalized Due to increased attention and investments in sustainable transition policies and car-bon-reducing technology China has over the past decade developed into a high prior-ity investment area for wind turbines Also Chinese companies are upgrading technol-ogy and innovation from the global firms through integration into GINs Moreover the production and innovation networks for wind energy become highly complex and consist of many different suppliers of com-ponents (blades gear boxes control systems bearings) resulting in a variety of network linkages among suppliers of different com-ponents and the wind turbine producers

From our empirical data including more than 40 in-depth interviews collected in 2011 and 2012 in the wind turbines indus-tries in China and Denmark we have identi-fied some very interesting patterns We have identified very different characteristics of the GINs established by the Chinese wind tur-bine industry and the European wind tur

Emerging Global Innovation Networks

Innovation processes are also moving be-yond the boundaries of individual compa-nies and national innovation systems Firms engage in cross-border innovation networks spanning different innovation systems which may be national regional or sectorial in or-der to stay competitive in the global econ-omy Chinese lead firms are entering this scene too The result is globally organized networks of interconnected and integrated functions and operations by firms and non-firm organizations engaged in the develop-ment and diffusion of innovations so-called Global Innovation Networks (GINs) Lead firms internationalize innovation through strategies of exploitation global generation of innovation and global techno-scientific collaborations Chinese wind turbine pro-ducers ndash acknowledging their resource and capability deficiency ndash pursue strategies of innovation network integration through strategies of global generation of innovation These firms link up with specialized Europe-an actors such as core component suppliers through partnerships and networks in or-der to tap into the technology of firms from developed countries and upgrade Mean-while European companies internationalize through exploitation strategies for example

bine industry Although Danish and Chinese actors are experiencing a re-organization of activities and establish networks and globa-linnovation strategies the result is very dif-ferent

The industry from Europe and US

The industry from Europe and the US hosts the lead firms in terms of core technology de-velopment Denmark has traditionally played a key role as lsquoinnovation hubrsquo in technology development and global lead firms such as Vestas and Siemens Windpower (previously Danish lsquoBonusrsquo) took its start already in the 1970s The core competences of the Danish wind turbine innovation system are based on large testing facilities and long track records mainly due to the long time-line of experi-ence The wind industry goes 40 years back and therefore Denmark has a good knowl-edge pool within establishing wind farms (aerodynamics minimizing power loss in energy transmission wind mapping and other installation-related technologies)

38 CSQ

that will make it possible to finance the pro-jects ldquoFrom then on our wind turbine pro-jects developed very fastrdquo(Interview Wind Engineer Chinese Academy of Sciences) Thus this law was a milestone for elevating renewables to a strategic position in China or as expressed by a European lead-firm ldquoWhat drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick offrdquo

Until the turn of the millennium Chinarsquos wind energy industry was largely built on donors acquisition of finished wind turbines and licensed technology from European companies spread on a very small scale into the local industry during the mid 1990s Chi-nese wind turbine technology has evolved from imitation reverse engineering and licensing in the 1980-90s combined with assistance from foreign consultants One example is how DANIDA funded a project in 1986 for Goldwind in Xinjiang which imported 13 units of 150 kW lsquoBonusrsquo (now Siemens Wind Power) turbines

To get beyond the stage of pure imitation several policies have been introduced with the intent to upgrade Chinese manufacturers to obtain indigenous innovative capabilities Policy programs were introduced to enhance Chinese companies to develop wind energy subsidizing wind energy RampD expenditures at varied levels over time establishing a re-newable energy fund and through the ldquo863 Wind Programrdquo under the Tenth Five-Year Plan (2001-2005) Local content require-ments were put in place in which develop-ers of wind energy projects were required to source 70 pct of the content in China These policies ndash which essentially forced foreign manufacturers wishing to sell wind turbines to the Chinese market to establish China-based manufacturing facilities ndash were only removed recently (in 2009) One result was that the foreign companies had to up-grade local suppliers of components

Due to the technological complexity many European (and hereby also the Danish) firms are vertically integrated and have most com-ponents produced in-house or with regular specialized suppliers According to these companies the different parts need to be well adjusted to each other to some extent even co-developed in order to enhance effi-ciency and the lifetime of the wind turbine Likewise the European industry has expe-rienced a concentration of actors with the result that there are only relatively few but large manufacturers in Europe (the larg-est ones are Vestas Siemens Gamesa and Enercon) Together these four companies accounted for about 35 of the global mar-ket in 2010 By seeing the wind turbine as an integrated system these lead firms aim at producing lsquothe Rolls Roycersquo model wind turbines These are strong in terms of qual-ity and standards but generally expensive These firms learn cost-out techniques from their engagement with partners in China

The Chinese Wind Turbine Industry

Today the Chinese wind turbine industry is overly competitive It entails more than 80 wind turbine manufacturers and the Chi-nese market boasts the highest growth rates internationally with an average growth rate of 968 percentages annually in the last three years Several large domestic Chinese wind turbine manufacturers have emerged within the last decade Sinovel and Goldwind take the largest share followed by United Pow-er and Ming Yang just to mention some of them As of the end of 2010 these four were A major driver for the development of the Chinese wind energy market has been the establishment of an institutional context as a comprehensive concerted policy frame-work addressing the development of renewa-ble energies This change in the institutional context was first reflected clearly in the 11th 5-year-plan (2006-2010) which explicitly linked environmental sustainability to the key goal of establishing what was called a harmonious socialist society signalling a socially environmentally and economically sustainable economy With the Renewable Energy Law from 2005 the Chinese wind energy industry really took off as it explicitly seeks to ensure that renewable energy pro-jects have an outlet for their output at prices

Technical barriers and the role of GINs for a post-carbon society

Despite high ambitions in terms of devel-oping innovative capabilities Chinese pro-ducers still produce almost exclusively for the Chinese market However Chinese wind turbine manufacturers have recently started an internationalisation process and some are approaching international markets Not least for tapping into new knowledge

Europe (and Denmark in particular) is per-ceived as a main location from which the Chinese companies can learn more A cou-ple of Chinese companies have already set up RampD centres in Denmark European firms have also initiated RampD centres in new lo-cations primarily China and India In other words GINs can be identified

Our research also points towards important barriers for GINs in the wind turbine in-dustry and for approaching a post-carbon global society Most importantly are the technological barriers intellectual property rights quality issues and issues of limited appropriability of knowledge Further the institutional framework remain relevant for displaying how the sector and the emerging GINs are embedded institutionally socially and technologically Whether actors trans-act knowledge technology and know-how through cooperative innovation activities also depends on how core the technology of a given technology is Still as the market grows in China it seems to have matured in Europe because of changing policies on re-newable energy To sustain the position as a global lsquohubrsquo and world leader in wind tech-nologies there is a strong need for support in Europe as this research really shows how fast the Chinese industry is moving One major result is how important networks are for upgrading companies and it seems that Chinese firms perform better in network strategies and manage to tap into relevant knowledge than the European firms

What drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick off rdquoldquoInterview Wind Engineer Chinese Academy of Sciences

39CSQ

Social Enterprise World

ForumNadine Koumlcher from 180Degrees recounts her experience from the

conference on

Rio de Janeiro Brazil 2012

In the numerous panel debates and parallel track discussion it became clear that Impact Investment is a hot topic among both social entrepreneurs and impact investors a diverse group consisting of corporations founda-tions and potential donors However various obstacles impede a harmonious relationship between the twoSocial enterprises face structural challenges to make themselves more appealing to im-pact investors They have to become more transparent and increase their accountability This includes improving their impact assess-ment and reporting tools However despite much discussion no consensus could be formed on how to optimally conduct im-pact assessment One of the most frequently proposed methodologies involves the use

From the 16th to the 18th of October the CBS Sustainability Platform granted me the opportunity to attend the 5th Social Enter-prise World Forum which took place in Rio de Janeiro Brazil This yearly international conference focuses on social enterprises and their effectiveness in solving social challeng-es The overall theme of the 2012 conference hosted by NESsT was ldquoSocial Enterprise Investing for Impactrdquo Thus for three days over 180 speakers and 650 delegates from 30 different countries shared their experiences regarding impact investment and discussed possibilities to attract new investment by both the public and the private sector for so-cial enterprises

of control groups Story-telling has also been men-tioned to be a powerful tool to provide investors with a proof of outcomesSocial investors are willing to accept returns just below the market rate in exchange for a social return However large profits are still expect-ed and many social enter-prises are afraid of being unable to generate them Social enterprises typically operate on a small scale and are not used to undertake large projects with huge sums of investment given to them Many are too small for social investors to be

attractive as costs are similar for small and large investments although larger invest-ments have a higher payoff

Nichole Echert the CEO of NESsT there-fore pointed out that it is necessary to align expectations between impact investors and social entrepreneurs and to be patient in establishing a relationship between the two groups The expected financial return has to be reasonable close to covering the costs of operation and social returns have to be re-ported to investors by use of clearer criteria

By Nadine Koumlcher Director of Branch Development180 Degrees Consulting Limited

ldquoSocial Enterprise Investing for Impactrdquo

Students

40 CSQ

A highlight of the con-ference was definitely the site visit to a social enterprise project in a recently pacified fave-la It brought further insights on the great variety of social enter-prises that exist in Bra-zil and their missions and struggles We visit-ed a community center at which Comitecirc para

Democratizaccedilao da Informaacutetica (CDI) uses technology to fight poverty and to stimulate entrepreneurship CDI has formed a corpo-rate partnership with Coca Cola which in the same building teaches young locals how to write a CV and find a job Talking to the young locals at the center it became apparent that an increased self-confidence and the in-spiration they get from meeting former now employed participants of the project (eg at Coca Cola) is what they valued most of being part of the class

Participating at the conference was definite-ly a unique and valuable experience I would not want to miss as I tremendously improved my knowledge in the field of social enter-prises through attending the numerous pres-entations and discussions and further met so many inspiring social entrepreneurs impact

In addition it has been stressed that the problem is not a shortage of investment capital (even though the government could promote more impact investment by for instance granting tax breaks) but how to deploy it Social entrepreneurs also have to be aware of the different advantages and dis-advantages of the various types of capital It has to fit their process of establishment and it has therefore been suggested that funds and grants are most optimal in the start-up phase to cover such costs as capacity train-ing There is generally a lack of this early stage financial support Following the initial phase strategic philanthropy money would be most appropriate before impact and final-ly equity investment is sought Furthermore new ways of investment which fit the social enterprise world have to be created replac-ing the current situation of trying to fit social enterprises into the current financial world

investors and students with a genuine inter-est in the field

Participating at the conference was definitely a unique and valuable experience rdquo

ldquo

Social Enterprise World Forum 2013 in

Calgary Canada

The TRICO Charitable Foundation in part-nership with the Social Enterprise Council of Canada and the Social Finance Forum has been selected to host the 6th Annual Social Enterprise World Forum SEWF 2013 will take place October 2-4 2013 in Calgary Al-berta The Forum will present the Canadian social enterprise movement with opportuni-ties to engage learn and share on the inter-national stage

SEWF 2013 will be a gathering of over 1000 Canadian and international delegates who are involved in the social enterprise move-ment where the blending of social and fi-nancial values is core to business Attendees will consist of practitioners (from all sec-tors) funders investors supporters elected officials and public servants from around the world

Nadine Koumlcher

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 34: CBS Sustainability Quarterly 2013 #1

34 CSQ

The climate challenge in

shipping

ldquoGlobal shipping faces two major challenges both of which are caused by its reliance on fossil fuelsrdquo

By Reneacute Taudal Poulsen Department of Innovation amp Organizational Economics

RENEacute TAUDAL POULSEN

ASSOCIATE PROFESSOR DEPARTMENT

OF INNOVATION AND ORGANIZATIONAL

ECONOMICS COPENHAGEN BUSINESS

SCHOOL

orecasts show that the shipping indus-tryrsquos CO2 emissions will most likely continue to rise in the next two to

three decades as demand for world sea-borne trade will expand At present global shipping accounts for approximately 33 per cent of global CO2 emissions but this share will most probably increase in the coming years if many onshore industries succeed in their aims of reducing emission levels

At the same time rapidly rising fuel costs put heavy strain on shipping company budg-ets Historically and until very recently fuel costs were only a minor concern for ship-ping companies but now they often exceed 60 per cent of variable operational costs Fuel savings made through energy efficiency improvements thus represent a win-win sce-nario for the shipping industry and for so-ciety at large They simply make good sense for everyone

Despite the strong incentives for fuel sav-ings numerous studies have demonstrated that shipping fails to implement cost-ef-fective measures to reduce fuel consump-tion Fuel-saving technologies are readily available in the market and in many cases pay-back periods are very short (less than a year) Changes in operational habits which require few if any investments also hold a significant potential for fuel savings

Global shipping thus holds several classic examples of energy-efficiency gaps Gaps occur wherever cost-effective measures to improve energy efficiency fail to materialize The causes for energy efficiency gaps have been a favourite research topic within the field of energy economics for decades and economists sociologists and political scien-tists have been able to identify several means to bridge the gaps However within the mar-itime domain energy efficiency gaps and the climate challenge remain neglected issues Legal barriers

Shipsrsquo fuel consumption rises steeply with speed Hence slow-steaming or just minor speed reductions can lower consumption and emission levels significantly Since oil prices started to rise rapidly a few years ago shipping companies have indeed resorted to various slow-steaming practices and com-panies which succeed in this regard have been able to gain competitive advantages In other words actors in the industry are trying to bridge the energy efficiency gap However and in spite of the strong price signals from the rising fuel prices a potential for fuel sav-ing through slow steaming still remains

FNew CBS research project

A new three year research project at CBS under-

taken by Reneacute Taudal Poulsen for the Department

of Innovation and Organizational Economics will

examine the climate issues bringing insights from

energy economics and innovation management

into the field of shipping economics The project

which is financed by The Danish Maritime Fund

runs from 2012 to 2015 The project asks why en-

ergy efficiency gaps continue to occur in shipping

and how shipping companies and the maritime

industry at large can use innovative business

models and process innovation to turn the climate

challenge and the rising fuel costs into a business

opportunity Energy efficiency gaps occur both

in daily operations and when investments in new

vessels are made This article will briefly present

two examples of energy efficiency gaps from

the operational level and some of the preliminary

findings of the project

References

Jaffe AB and RN Stavins 1994 lsquoThe energy efficiency gap What does it meanrsquo Energy Policy 22 (110) 804-10IMO 2009 Second IMO GHG Study 2009 London International Maritime OrganizationMoriarty P amp D Honnery 2012 lsquoEnergy efficiency Lessons from transportrsquo Energy Policy 46 1ndash3Poulsen Reneacute Taudal 2012 lsquoEmissions and energy efficiency - the twin challenges for shippingrsquo Mercator Maritime Innovation Research and Education MarchJune 447-454

Reneacute Taudal Poulsen is Associate Professor at the Department of Innovation and Organizational Eco-nomics at CBS He is also affliated with the Centre for Shipping Economics and Innovation at CBS Reneacute Taudal Poulsen holds a PhD degree in marine environmental history from the University of Southern Denmark and he has worked within the field of maritime business studies for the last seven years He has published in such journals as Fisheries Research Business History and Scandinavian Economic History Review

His current research intersts concern the environmen-tal challenges faced by the global shipping industry and business model innovation in the maritime domain

Research

35CSQ

It is clear that shipping companies cannot fully bridge the energy efficiency gap alone In fact factors beyond the control of in-dividual shipping companies and various structural or legal barriers prevent shipping from fully realizing the slow steaming po-tential

Port congestion remains a world-wide prob-lem and causes ships to spend remarkably long periods inactive Despite the financial crisis and the large drop in shipping freight markets after 2008 many loaded vessels sit at anchor outside ports waiting for berths In some cases they wait for a few hours In other cases for days weeks or even months Instead of waiting the ships could have re-duced speeds and saved fuel And the de-livery and the loading of the cargo in port would not have been delayed in any way However in many cases shipping companies or ship operators cannot reduce speed in spite of port congestion

Educational barriers

Energy efficiency gaps in shipping are also evident when the fuel consumption levels of sister ships are compared Even though the vessels are identical and operate in the same waters studies have shown that their fuel consumption may differ by several Decisions made by the crews onboard and by managers in the onshore organizations clearly influence the level of fuel consump-tion For instance if a captain selects only very small course deviation margins when coding the autopilot of the ship the shiprsquos rudder will move frequently to keep the ship on the exact course all the time This will slow down the ship and cause higher fuel consumption than if the captain had allowed for slightly wider margins and the wider margins would not have any effect on the safety of the ship Decisions made by the commercial depart-ments eg on how to crew the vessels how to monitor vessel fuel consumption or which new equipment to install onboard may also

have a large impact on fuel efficiency and emission levels If shipping company man-agers can nurture a fuel saving culture this could potentially make a difference Since 2007 or 2008 shipping companies have in-deed started to facilitate such organizational changes but educational barriers remain a problemOnshore truck drivers are now offered fuel saving courses but fuel-saving is not a major part of the traditional curriculum in nautical schools or in the commercial education of shipping trainees For good reasons the nau-tical educations have focused on maritime safety but this has caused them to neglect the climate challenge in shipping and the is-sue of fuel saving In fact no single nauticaltext book on maritime fuel savings has yet been published and according to teachers and students in the nautical schools this serves as an educational barrier to ener-gy-efficiency improvements The technical level of education for commercial employees in shipping companies may also hinder im-provements in energy-efficiency Some com-

mercial shipping employees may not have sufficient training to fully see and acknowl-edge the consequences of their decisions on fuel consumption In short it seems that fuel awareness and the educational systems have responded more slowly to the climate chal-lenge than the rise in fuel prices may other-wise suggest

For shipping to bridge energy-efficiency gaps education ndash both nautical and com-mercial ones ndash clearly is an area to set in Here the potential for innovative solutions is both evident and pertinent Changing educational systems and awareness is no easy task bearing in mind the global nature of the shipping industry and international crewing of the world fleet It is clear howev-er that educational upgrading is necessary for shipping to effectively address the cli-mate challenge effectively

Charter parties between ship-operators and shippers state a specific time of arrival for the vessel and in order to avoid claims ships proceed to port accordingly regardless of berth availability Experiments with new more flexible charter parties which allow for slow steaming in case of port congestion have recently been made Shipping compa-nies have generally been enthusiastic about this flexibility but often shippers remain skeptical Lack of trust between shippers which need the loading of their cargoes as soon as possible and shipping companies may be a cause for this discrepancy Even in cases where the savings made from slow-steaming are split between shipping companies and shippers shippers have re-mained skeptical Port queuing systems may have a role to play here

Many ports including some of the major container iron ore coal and grain ports serve ships on ldquofirst-come first-servedrdquo ba-sis Ships only receive their ldquoticketrdquo in the

waiting line upon their arrival at the port Again lack of trust between the ship-oper-ators shippers and the port authorities may explain this phenomenon Moreover port authorities currently do not have incentives to change queuing practices because they cannot gain a share in the fuel savings made from slow-steaming

The problem is particularly strong in the major tramp shipping segments of tanker and dry cargo shipping where vessels act as ldquotaxis of the seardquo serving numerous shippers and rarely calling at the same ports If the fleet from a shipping company only calls at a particular port once a year and the compa-ny has very short-term relations to individ-ual shippers building trustful relationships between the parties remains a major chal-lenge Solving this problem and realizing the full potential of slow steaming will require systemic innovation in shipping and port systems and further studies are required to identify possible solutions

36 CSQ

The Wind turbine industry -

Emerging global innovation networks in Europe and China

The wind turbine industry has developed into a global network encompassing a large amount of diverse actors within innovation production and installation of wind turbines across the globe

By Stine Haakonsson and Julia Kirch Hollitsch Department of Business amp Politics CBS

market for wind energy Chinese actors have turned China as a location into another im-portant lsquohubrsquo in this network This has led to new forms of innovation collaborations between European and Chinese actors The result has been a complete re-configuration of the industry over the past decade In the International Business and Economic Geog-raphy literatures the development of global production networks in which lead-firms be-come orchestrators of dispersed production

enmark has traditionally played a key role as an lsquoinnovation hubrsquo and com-

panies in Denmark remain among the lead firms within the wind turbine industry Re-cently the industry has reorganized from being located predominantly in the Triad regions (mainly in Europe and the US) to becoming a globally dispersed industry This development can partly be explained by de-velopments in international and national politics Due to the growth of the Chinese

activities in globalized value chains is well established theoretically as well as empiri-cally In the globalization process lead firms relocate production activities to low cost lo-cations by off-shoring and through vertical disintegration and outsourcing to specialized suppliers Producers of wind turbines are no exception However until recently the mar-ket and innovation activities remained con-centrated in Europe and US

With the recent focus on global politics for a post-carbon society the market for wind tur-bines has experienced an immense growth and a high degree of market globalization New locations have developed into main markets One of these is China which since 2010 has been the largest market for wind turbines in the world (in capacity installed) The globalization process in the wind tur-bine can be explained by a combination of offshoring of production by European lead firms mainly through foreign direct invest-ment and establishment of domestic lead firms in emerging markets In 2010 there were four Chinese-owned companies among the top-10 producers of wind turbines as compared to 2003 where all firms on this list were from Europe and the US

D

Julia Kirch Hollitsch

Stine Haakonsson

Stine Haakonsson and Julia Kirch Hollitsch from Depart-

ment of Business and Politics CBS are engaged in the

Sino-Danish Center for Research and Education (SDC)

project on Wind Energy in China Both research on the

current restructuring of industries and firms at the glob-

al level (outsourcing off shoring global value chains)

In particular their research is on 1) the restructuring of

innovation and RampD activities into global innovation net-

works(GINs)2)thechangingroleofemergingmarkets

(ChinaIndiaBrazilSouthAfrica)intheseemergingGINs

and 3) technology transfer and capability building related

to renewable energy

Research

37CSQ

by adapting their products to the Chinese market and through cost-out development activities in the new locations primarily China

As a result the wind industry is today highly knowledge-intensive and internationalized Due to increased attention and investments in sustainable transition policies and car-bon-reducing technology China has over the past decade developed into a high prior-ity investment area for wind turbines Also Chinese companies are upgrading technol-ogy and innovation from the global firms through integration into GINs Moreover the production and innovation networks for wind energy become highly complex and consist of many different suppliers of com-ponents (blades gear boxes control systems bearings) resulting in a variety of network linkages among suppliers of different com-ponents and the wind turbine producers

From our empirical data including more than 40 in-depth interviews collected in 2011 and 2012 in the wind turbines indus-tries in China and Denmark we have identi-fied some very interesting patterns We have identified very different characteristics of the GINs established by the Chinese wind tur-bine industry and the European wind tur

Emerging Global Innovation Networks

Innovation processes are also moving be-yond the boundaries of individual compa-nies and national innovation systems Firms engage in cross-border innovation networks spanning different innovation systems which may be national regional or sectorial in or-der to stay competitive in the global econ-omy Chinese lead firms are entering this scene too The result is globally organized networks of interconnected and integrated functions and operations by firms and non-firm organizations engaged in the develop-ment and diffusion of innovations so-called Global Innovation Networks (GINs) Lead firms internationalize innovation through strategies of exploitation global generation of innovation and global techno-scientific collaborations Chinese wind turbine pro-ducers ndash acknowledging their resource and capability deficiency ndash pursue strategies of innovation network integration through strategies of global generation of innovation These firms link up with specialized Europe-an actors such as core component suppliers through partnerships and networks in or-der to tap into the technology of firms from developed countries and upgrade Mean-while European companies internationalize through exploitation strategies for example

bine industry Although Danish and Chinese actors are experiencing a re-organization of activities and establish networks and globa-linnovation strategies the result is very dif-ferent

The industry from Europe and US

The industry from Europe and the US hosts the lead firms in terms of core technology de-velopment Denmark has traditionally played a key role as lsquoinnovation hubrsquo in technology development and global lead firms such as Vestas and Siemens Windpower (previously Danish lsquoBonusrsquo) took its start already in the 1970s The core competences of the Danish wind turbine innovation system are based on large testing facilities and long track records mainly due to the long time-line of experi-ence The wind industry goes 40 years back and therefore Denmark has a good knowl-edge pool within establishing wind farms (aerodynamics minimizing power loss in energy transmission wind mapping and other installation-related technologies)

38 CSQ

that will make it possible to finance the pro-jects ldquoFrom then on our wind turbine pro-jects developed very fastrdquo(Interview Wind Engineer Chinese Academy of Sciences) Thus this law was a milestone for elevating renewables to a strategic position in China or as expressed by a European lead-firm ldquoWhat drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick offrdquo

Until the turn of the millennium Chinarsquos wind energy industry was largely built on donors acquisition of finished wind turbines and licensed technology from European companies spread on a very small scale into the local industry during the mid 1990s Chi-nese wind turbine technology has evolved from imitation reverse engineering and licensing in the 1980-90s combined with assistance from foreign consultants One example is how DANIDA funded a project in 1986 for Goldwind in Xinjiang which imported 13 units of 150 kW lsquoBonusrsquo (now Siemens Wind Power) turbines

To get beyond the stage of pure imitation several policies have been introduced with the intent to upgrade Chinese manufacturers to obtain indigenous innovative capabilities Policy programs were introduced to enhance Chinese companies to develop wind energy subsidizing wind energy RampD expenditures at varied levels over time establishing a re-newable energy fund and through the ldquo863 Wind Programrdquo under the Tenth Five-Year Plan (2001-2005) Local content require-ments were put in place in which develop-ers of wind energy projects were required to source 70 pct of the content in China These policies ndash which essentially forced foreign manufacturers wishing to sell wind turbines to the Chinese market to establish China-based manufacturing facilities ndash were only removed recently (in 2009) One result was that the foreign companies had to up-grade local suppliers of components

Due to the technological complexity many European (and hereby also the Danish) firms are vertically integrated and have most com-ponents produced in-house or with regular specialized suppliers According to these companies the different parts need to be well adjusted to each other to some extent even co-developed in order to enhance effi-ciency and the lifetime of the wind turbine Likewise the European industry has expe-rienced a concentration of actors with the result that there are only relatively few but large manufacturers in Europe (the larg-est ones are Vestas Siemens Gamesa and Enercon) Together these four companies accounted for about 35 of the global mar-ket in 2010 By seeing the wind turbine as an integrated system these lead firms aim at producing lsquothe Rolls Roycersquo model wind turbines These are strong in terms of qual-ity and standards but generally expensive These firms learn cost-out techniques from their engagement with partners in China

The Chinese Wind Turbine Industry

Today the Chinese wind turbine industry is overly competitive It entails more than 80 wind turbine manufacturers and the Chi-nese market boasts the highest growth rates internationally with an average growth rate of 968 percentages annually in the last three years Several large domestic Chinese wind turbine manufacturers have emerged within the last decade Sinovel and Goldwind take the largest share followed by United Pow-er and Ming Yang just to mention some of them As of the end of 2010 these four were A major driver for the development of the Chinese wind energy market has been the establishment of an institutional context as a comprehensive concerted policy frame-work addressing the development of renewa-ble energies This change in the institutional context was first reflected clearly in the 11th 5-year-plan (2006-2010) which explicitly linked environmental sustainability to the key goal of establishing what was called a harmonious socialist society signalling a socially environmentally and economically sustainable economy With the Renewable Energy Law from 2005 the Chinese wind energy industry really took off as it explicitly seeks to ensure that renewable energy pro-jects have an outlet for their output at prices

Technical barriers and the role of GINs for a post-carbon society

Despite high ambitions in terms of devel-oping innovative capabilities Chinese pro-ducers still produce almost exclusively for the Chinese market However Chinese wind turbine manufacturers have recently started an internationalisation process and some are approaching international markets Not least for tapping into new knowledge

Europe (and Denmark in particular) is per-ceived as a main location from which the Chinese companies can learn more A cou-ple of Chinese companies have already set up RampD centres in Denmark European firms have also initiated RampD centres in new lo-cations primarily China and India In other words GINs can be identified

Our research also points towards important barriers for GINs in the wind turbine in-dustry and for approaching a post-carbon global society Most importantly are the technological barriers intellectual property rights quality issues and issues of limited appropriability of knowledge Further the institutional framework remain relevant for displaying how the sector and the emerging GINs are embedded institutionally socially and technologically Whether actors trans-act knowledge technology and know-how through cooperative innovation activities also depends on how core the technology of a given technology is Still as the market grows in China it seems to have matured in Europe because of changing policies on re-newable energy To sustain the position as a global lsquohubrsquo and world leader in wind tech-nologies there is a strong need for support in Europe as this research really shows how fast the Chinese industry is moving One major result is how important networks are for upgrading companies and it seems that Chinese firms perform better in network strategies and manage to tap into relevant knowledge than the European firms

What drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick off rdquoldquoInterview Wind Engineer Chinese Academy of Sciences

39CSQ

Social Enterprise World

ForumNadine Koumlcher from 180Degrees recounts her experience from the

conference on

Rio de Janeiro Brazil 2012

In the numerous panel debates and parallel track discussion it became clear that Impact Investment is a hot topic among both social entrepreneurs and impact investors a diverse group consisting of corporations founda-tions and potential donors However various obstacles impede a harmonious relationship between the twoSocial enterprises face structural challenges to make themselves more appealing to im-pact investors They have to become more transparent and increase their accountability This includes improving their impact assess-ment and reporting tools However despite much discussion no consensus could be formed on how to optimally conduct im-pact assessment One of the most frequently proposed methodologies involves the use

From the 16th to the 18th of October the CBS Sustainability Platform granted me the opportunity to attend the 5th Social Enter-prise World Forum which took place in Rio de Janeiro Brazil This yearly international conference focuses on social enterprises and their effectiveness in solving social challeng-es The overall theme of the 2012 conference hosted by NESsT was ldquoSocial Enterprise Investing for Impactrdquo Thus for three days over 180 speakers and 650 delegates from 30 different countries shared their experiences regarding impact investment and discussed possibilities to attract new investment by both the public and the private sector for so-cial enterprises

of control groups Story-telling has also been men-tioned to be a powerful tool to provide investors with a proof of outcomesSocial investors are willing to accept returns just below the market rate in exchange for a social return However large profits are still expect-ed and many social enter-prises are afraid of being unable to generate them Social enterprises typically operate on a small scale and are not used to undertake large projects with huge sums of investment given to them Many are too small for social investors to be

attractive as costs are similar for small and large investments although larger invest-ments have a higher payoff

Nichole Echert the CEO of NESsT there-fore pointed out that it is necessary to align expectations between impact investors and social entrepreneurs and to be patient in establishing a relationship between the two groups The expected financial return has to be reasonable close to covering the costs of operation and social returns have to be re-ported to investors by use of clearer criteria

By Nadine Koumlcher Director of Branch Development180 Degrees Consulting Limited

ldquoSocial Enterprise Investing for Impactrdquo

Students

40 CSQ

A highlight of the con-ference was definitely the site visit to a social enterprise project in a recently pacified fave-la It brought further insights on the great variety of social enter-prises that exist in Bra-zil and their missions and struggles We visit-ed a community center at which Comitecirc para

Democratizaccedilao da Informaacutetica (CDI) uses technology to fight poverty and to stimulate entrepreneurship CDI has formed a corpo-rate partnership with Coca Cola which in the same building teaches young locals how to write a CV and find a job Talking to the young locals at the center it became apparent that an increased self-confidence and the in-spiration they get from meeting former now employed participants of the project (eg at Coca Cola) is what they valued most of being part of the class

Participating at the conference was definite-ly a unique and valuable experience I would not want to miss as I tremendously improved my knowledge in the field of social enter-prises through attending the numerous pres-entations and discussions and further met so many inspiring social entrepreneurs impact

In addition it has been stressed that the problem is not a shortage of investment capital (even though the government could promote more impact investment by for instance granting tax breaks) but how to deploy it Social entrepreneurs also have to be aware of the different advantages and dis-advantages of the various types of capital It has to fit their process of establishment and it has therefore been suggested that funds and grants are most optimal in the start-up phase to cover such costs as capacity train-ing There is generally a lack of this early stage financial support Following the initial phase strategic philanthropy money would be most appropriate before impact and final-ly equity investment is sought Furthermore new ways of investment which fit the social enterprise world have to be created replac-ing the current situation of trying to fit social enterprises into the current financial world

investors and students with a genuine inter-est in the field

Participating at the conference was definitely a unique and valuable experience rdquo

ldquo

Social Enterprise World Forum 2013 in

Calgary Canada

The TRICO Charitable Foundation in part-nership with the Social Enterprise Council of Canada and the Social Finance Forum has been selected to host the 6th Annual Social Enterprise World Forum SEWF 2013 will take place October 2-4 2013 in Calgary Al-berta The Forum will present the Canadian social enterprise movement with opportuni-ties to engage learn and share on the inter-national stage

SEWF 2013 will be a gathering of over 1000 Canadian and international delegates who are involved in the social enterprise move-ment where the blending of social and fi-nancial values is core to business Attendees will consist of practitioners (from all sec-tors) funders investors supporters elected officials and public servants from around the world

Nadine Koumlcher

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 35: CBS Sustainability Quarterly 2013 #1

35CSQ

It is clear that shipping companies cannot fully bridge the energy efficiency gap alone In fact factors beyond the control of in-dividual shipping companies and various structural or legal barriers prevent shipping from fully realizing the slow steaming po-tential

Port congestion remains a world-wide prob-lem and causes ships to spend remarkably long periods inactive Despite the financial crisis and the large drop in shipping freight markets after 2008 many loaded vessels sit at anchor outside ports waiting for berths In some cases they wait for a few hours In other cases for days weeks or even months Instead of waiting the ships could have re-duced speeds and saved fuel And the de-livery and the loading of the cargo in port would not have been delayed in any way However in many cases shipping companies or ship operators cannot reduce speed in spite of port congestion

Educational barriers

Energy efficiency gaps in shipping are also evident when the fuel consumption levels of sister ships are compared Even though the vessels are identical and operate in the same waters studies have shown that their fuel consumption may differ by several Decisions made by the crews onboard and by managers in the onshore organizations clearly influence the level of fuel consump-tion For instance if a captain selects only very small course deviation margins when coding the autopilot of the ship the shiprsquos rudder will move frequently to keep the ship on the exact course all the time This will slow down the ship and cause higher fuel consumption than if the captain had allowed for slightly wider margins and the wider margins would not have any effect on the safety of the ship Decisions made by the commercial depart-ments eg on how to crew the vessels how to monitor vessel fuel consumption or which new equipment to install onboard may also

have a large impact on fuel efficiency and emission levels If shipping company man-agers can nurture a fuel saving culture this could potentially make a difference Since 2007 or 2008 shipping companies have in-deed started to facilitate such organizational changes but educational barriers remain a problemOnshore truck drivers are now offered fuel saving courses but fuel-saving is not a major part of the traditional curriculum in nautical schools or in the commercial education of shipping trainees For good reasons the nau-tical educations have focused on maritime safety but this has caused them to neglect the climate challenge in shipping and the is-sue of fuel saving In fact no single nauticaltext book on maritime fuel savings has yet been published and according to teachers and students in the nautical schools this serves as an educational barrier to ener-gy-efficiency improvements The technical level of education for commercial employees in shipping companies may also hinder im-provements in energy-efficiency Some com-

mercial shipping employees may not have sufficient training to fully see and acknowl-edge the consequences of their decisions on fuel consumption In short it seems that fuel awareness and the educational systems have responded more slowly to the climate chal-lenge than the rise in fuel prices may other-wise suggest

For shipping to bridge energy-efficiency gaps education ndash both nautical and com-mercial ones ndash clearly is an area to set in Here the potential for innovative solutions is both evident and pertinent Changing educational systems and awareness is no easy task bearing in mind the global nature of the shipping industry and international crewing of the world fleet It is clear howev-er that educational upgrading is necessary for shipping to effectively address the cli-mate challenge effectively

Charter parties between ship-operators and shippers state a specific time of arrival for the vessel and in order to avoid claims ships proceed to port accordingly regardless of berth availability Experiments with new more flexible charter parties which allow for slow steaming in case of port congestion have recently been made Shipping compa-nies have generally been enthusiastic about this flexibility but often shippers remain skeptical Lack of trust between shippers which need the loading of their cargoes as soon as possible and shipping companies may be a cause for this discrepancy Even in cases where the savings made from slow-steaming are split between shipping companies and shippers shippers have re-mained skeptical Port queuing systems may have a role to play here

Many ports including some of the major container iron ore coal and grain ports serve ships on ldquofirst-come first-servedrdquo ba-sis Ships only receive their ldquoticketrdquo in the

waiting line upon their arrival at the port Again lack of trust between the ship-oper-ators shippers and the port authorities may explain this phenomenon Moreover port authorities currently do not have incentives to change queuing practices because they cannot gain a share in the fuel savings made from slow-steaming

The problem is particularly strong in the major tramp shipping segments of tanker and dry cargo shipping where vessels act as ldquotaxis of the seardquo serving numerous shippers and rarely calling at the same ports If the fleet from a shipping company only calls at a particular port once a year and the compa-ny has very short-term relations to individ-ual shippers building trustful relationships between the parties remains a major chal-lenge Solving this problem and realizing the full potential of slow steaming will require systemic innovation in shipping and port systems and further studies are required to identify possible solutions

36 CSQ

The Wind turbine industry -

Emerging global innovation networks in Europe and China

The wind turbine industry has developed into a global network encompassing a large amount of diverse actors within innovation production and installation of wind turbines across the globe

By Stine Haakonsson and Julia Kirch Hollitsch Department of Business amp Politics CBS

market for wind energy Chinese actors have turned China as a location into another im-portant lsquohubrsquo in this network This has led to new forms of innovation collaborations between European and Chinese actors The result has been a complete re-configuration of the industry over the past decade In the International Business and Economic Geog-raphy literatures the development of global production networks in which lead-firms be-come orchestrators of dispersed production

enmark has traditionally played a key role as an lsquoinnovation hubrsquo and com-

panies in Denmark remain among the lead firms within the wind turbine industry Re-cently the industry has reorganized from being located predominantly in the Triad regions (mainly in Europe and the US) to becoming a globally dispersed industry This development can partly be explained by de-velopments in international and national politics Due to the growth of the Chinese

activities in globalized value chains is well established theoretically as well as empiri-cally In the globalization process lead firms relocate production activities to low cost lo-cations by off-shoring and through vertical disintegration and outsourcing to specialized suppliers Producers of wind turbines are no exception However until recently the mar-ket and innovation activities remained con-centrated in Europe and US

With the recent focus on global politics for a post-carbon society the market for wind tur-bines has experienced an immense growth and a high degree of market globalization New locations have developed into main markets One of these is China which since 2010 has been the largest market for wind turbines in the world (in capacity installed) The globalization process in the wind tur-bine can be explained by a combination of offshoring of production by European lead firms mainly through foreign direct invest-ment and establishment of domestic lead firms in emerging markets In 2010 there were four Chinese-owned companies among the top-10 producers of wind turbines as compared to 2003 where all firms on this list were from Europe and the US

D

Julia Kirch Hollitsch

Stine Haakonsson

Stine Haakonsson and Julia Kirch Hollitsch from Depart-

ment of Business and Politics CBS are engaged in the

Sino-Danish Center for Research and Education (SDC)

project on Wind Energy in China Both research on the

current restructuring of industries and firms at the glob-

al level (outsourcing off shoring global value chains)

In particular their research is on 1) the restructuring of

innovation and RampD activities into global innovation net-

works(GINs)2)thechangingroleofemergingmarkets

(ChinaIndiaBrazilSouthAfrica)intheseemergingGINs

and 3) technology transfer and capability building related

to renewable energy

Research

37CSQ

by adapting their products to the Chinese market and through cost-out development activities in the new locations primarily China

As a result the wind industry is today highly knowledge-intensive and internationalized Due to increased attention and investments in sustainable transition policies and car-bon-reducing technology China has over the past decade developed into a high prior-ity investment area for wind turbines Also Chinese companies are upgrading technol-ogy and innovation from the global firms through integration into GINs Moreover the production and innovation networks for wind energy become highly complex and consist of many different suppliers of com-ponents (blades gear boxes control systems bearings) resulting in a variety of network linkages among suppliers of different com-ponents and the wind turbine producers

From our empirical data including more than 40 in-depth interviews collected in 2011 and 2012 in the wind turbines indus-tries in China and Denmark we have identi-fied some very interesting patterns We have identified very different characteristics of the GINs established by the Chinese wind tur-bine industry and the European wind tur

Emerging Global Innovation Networks

Innovation processes are also moving be-yond the boundaries of individual compa-nies and national innovation systems Firms engage in cross-border innovation networks spanning different innovation systems which may be national regional or sectorial in or-der to stay competitive in the global econ-omy Chinese lead firms are entering this scene too The result is globally organized networks of interconnected and integrated functions and operations by firms and non-firm organizations engaged in the develop-ment and diffusion of innovations so-called Global Innovation Networks (GINs) Lead firms internationalize innovation through strategies of exploitation global generation of innovation and global techno-scientific collaborations Chinese wind turbine pro-ducers ndash acknowledging their resource and capability deficiency ndash pursue strategies of innovation network integration through strategies of global generation of innovation These firms link up with specialized Europe-an actors such as core component suppliers through partnerships and networks in or-der to tap into the technology of firms from developed countries and upgrade Mean-while European companies internationalize through exploitation strategies for example

bine industry Although Danish and Chinese actors are experiencing a re-organization of activities and establish networks and globa-linnovation strategies the result is very dif-ferent

The industry from Europe and US

The industry from Europe and the US hosts the lead firms in terms of core technology de-velopment Denmark has traditionally played a key role as lsquoinnovation hubrsquo in technology development and global lead firms such as Vestas and Siemens Windpower (previously Danish lsquoBonusrsquo) took its start already in the 1970s The core competences of the Danish wind turbine innovation system are based on large testing facilities and long track records mainly due to the long time-line of experi-ence The wind industry goes 40 years back and therefore Denmark has a good knowl-edge pool within establishing wind farms (aerodynamics minimizing power loss in energy transmission wind mapping and other installation-related technologies)

38 CSQ

that will make it possible to finance the pro-jects ldquoFrom then on our wind turbine pro-jects developed very fastrdquo(Interview Wind Engineer Chinese Academy of Sciences) Thus this law was a milestone for elevating renewables to a strategic position in China or as expressed by a European lead-firm ldquoWhat drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick offrdquo

Until the turn of the millennium Chinarsquos wind energy industry was largely built on donors acquisition of finished wind turbines and licensed technology from European companies spread on a very small scale into the local industry during the mid 1990s Chi-nese wind turbine technology has evolved from imitation reverse engineering and licensing in the 1980-90s combined with assistance from foreign consultants One example is how DANIDA funded a project in 1986 for Goldwind in Xinjiang which imported 13 units of 150 kW lsquoBonusrsquo (now Siemens Wind Power) turbines

To get beyond the stage of pure imitation several policies have been introduced with the intent to upgrade Chinese manufacturers to obtain indigenous innovative capabilities Policy programs were introduced to enhance Chinese companies to develop wind energy subsidizing wind energy RampD expenditures at varied levels over time establishing a re-newable energy fund and through the ldquo863 Wind Programrdquo under the Tenth Five-Year Plan (2001-2005) Local content require-ments were put in place in which develop-ers of wind energy projects were required to source 70 pct of the content in China These policies ndash which essentially forced foreign manufacturers wishing to sell wind turbines to the Chinese market to establish China-based manufacturing facilities ndash were only removed recently (in 2009) One result was that the foreign companies had to up-grade local suppliers of components

Due to the technological complexity many European (and hereby also the Danish) firms are vertically integrated and have most com-ponents produced in-house or with regular specialized suppliers According to these companies the different parts need to be well adjusted to each other to some extent even co-developed in order to enhance effi-ciency and the lifetime of the wind turbine Likewise the European industry has expe-rienced a concentration of actors with the result that there are only relatively few but large manufacturers in Europe (the larg-est ones are Vestas Siemens Gamesa and Enercon) Together these four companies accounted for about 35 of the global mar-ket in 2010 By seeing the wind turbine as an integrated system these lead firms aim at producing lsquothe Rolls Roycersquo model wind turbines These are strong in terms of qual-ity and standards but generally expensive These firms learn cost-out techniques from their engagement with partners in China

The Chinese Wind Turbine Industry

Today the Chinese wind turbine industry is overly competitive It entails more than 80 wind turbine manufacturers and the Chi-nese market boasts the highest growth rates internationally with an average growth rate of 968 percentages annually in the last three years Several large domestic Chinese wind turbine manufacturers have emerged within the last decade Sinovel and Goldwind take the largest share followed by United Pow-er and Ming Yang just to mention some of them As of the end of 2010 these four were A major driver for the development of the Chinese wind energy market has been the establishment of an institutional context as a comprehensive concerted policy frame-work addressing the development of renewa-ble energies This change in the institutional context was first reflected clearly in the 11th 5-year-plan (2006-2010) which explicitly linked environmental sustainability to the key goal of establishing what was called a harmonious socialist society signalling a socially environmentally and economically sustainable economy With the Renewable Energy Law from 2005 the Chinese wind energy industry really took off as it explicitly seeks to ensure that renewable energy pro-jects have an outlet for their output at prices

Technical barriers and the role of GINs for a post-carbon society

Despite high ambitions in terms of devel-oping innovative capabilities Chinese pro-ducers still produce almost exclusively for the Chinese market However Chinese wind turbine manufacturers have recently started an internationalisation process and some are approaching international markets Not least for tapping into new knowledge

Europe (and Denmark in particular) is per-ceived as a main location from which the Chinese companies can learn more A cou-ple of Chinese companies have already set up RampD centres in Denmark European firms have also initiated RampD centres in new lo-cations primarily China and India In other words GINs can be identified

Our research also points towards important barriers for GINs in the wind turbine in-dustry and for approaching a post-carbon global society Most importantly are the technological barriers intellectual property rights quality issues and issues of limited appropriability of knowledge Further the institutional framework remain relevant for displaying how the sector and the emerging GINs are embedded institutionally socially and technologically Whether actors trans-act knowledge technology and know-how through cooperative innovation activities also depends on how core the technology of a given technology is Still as the market grows in China it seems to have matured in Europe because of changing policies on re-newable energy To sustain the position as a global lsquohubrsquo and world leader in wind tech-nologies there is a strong need for support in Europe as this research really shows how fast the Chinese industry is moving One major result is how important networks are for upgrading companies and it seems that Chinese firms perform better in network strategies and manage to tap into relevant knowledge than the European firms

What drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick off rdquoldquoInterview Wind Engineer Chinese Academy of Sciences

39CSQ

Social Enterprise World

ForumNadine Koumlcher from 180Degrees recounts her experience from the

conference on

Rio de Janeiro Brazil 2012

In the numerous panel debates and parallel track discussion it became clear that Impact Investment is a hot topic among both social entrepreneurs and impact investors a diverse group consisting of corporations founda-tions and potential donors However various obstacles impede a harmonious relationship between the twoSocial enterprises face structural challenges to make themselves more appealing to im-pact investors They have to become more transparent and increase their accountability This includes improving their impact assess-ment and reporting tools However despite much discussion no consensus could be formed on how to optimally conduct im-pact assessment One of the most frequently proposed methodologies involves the use

From the 16th to the 18th of October the CBS Sustainability Platform granted me the opportunity to attend the 5th Social Enter-prise World Forum which took place in Rio de Janeiro Brazil This yearly international conference focuses on social enterprises and their effectiveness in solving social challeng-es The overall theme of the 2012 conference hosted by NESsT was ldquoSocial Enterprise Investing for Impactrdquo Thus for three days over 180 speakers and 650 delegates from 30 different countries shared their experiences regarding impact investment and discussed possibilities to attract new investment by both the public and the private sector for so-cial enterprises

of control groups Story-telling has also been men-tioned to be a powerful tool to provide investors with a proof of outcomesSocial investors are willing to accept returns just below the market rate in exchange for a social return However large profits are still expect-ed and many social enter-prises are afraid of being unable to generate them Social enterprises typically operate on a small scale and are not used to undertake large projects with huge sums of investment given to them Many are too small for social investors to be

attractive as costs are similar for small and large investments although larger invest-ments have a higher payoff

Nichole Echert the CEO of NESsT there-fore pointed out that it is necessary to align expectations between impact investors and social entrepreneurs and to be patient in establishing a relationship between the two groups The expected financial return has to be reasonable close to covering the costs of operation and social returns have to be re-ported to investors by use of clearer criteria

By Nadine Koumlcher Director of Branch Development180 Degrees Consulting Limited

ldquoSocial Enterprise Investing for Impactrdquo

Students

40 CSQ

A highlight of the con-ference was definitely the site visit to a social enterprise project in a recently pacified fave-la It brought further insights on the great variety of social enter-prises that exist in Bra-zil and their missions and struggles We visit-ed a community center at which Comitecirc para

Democratizaccedilao da Informaacutetica (CDI) uses technology to fight poverty and to stimulate entrepreneurship CDI has formed a corpo-rate partnership with Coca Cola which in the same building teaches young locals how to write a CV and find a job Talking to the young locals at the center it became apparent that an increased self-confidence and the in-spiration they get from meeting former now employed participants of the project (eg at Coca Cola) is what they valued most of being part of the class

Participating at the conference was definite-ly a unique and valuable experience I would not want to miss as I tremendously improved my knowledge in the field of social enter-prises through attending the numerous pres-entations and discussions and further met so many inspiring social entrepreneurs impact

In addition it has been stressed that the problem is not a shortage of investment capital (even though the government could promote more impact investment by for instance granting tax breaks) but how to deploy it Social entrepreneurs also have to be aware of the different advantages and dis-advantages of the various types of capital It has to fit their process of establishment and it has therefore been suggested that funds and grants are most optimal in the start-up phase to cover such costs as capacity train-ing There is generally a lack of this early stage financial support Following the initial phase strategic philanthropy money would be most appropriate before impact and final-ly equity investment is sought Furthermore new ways of investment which fit the social enterprise world have to be created replac-ing the current situation of trying to fit social enterprises into the current financial world

investors and students with a genuine inter-est in the field

Participating at the conference was definitely a unique and valuable experience rdquo

ldquo

Social Enterprise World Forum 2013 in

Calgary Canada

The TRICO Charitable Foundation in part-nership with the Social Enterprise Council of Canada and the Social Finance Forum has been selected to host the 6th Annual Social Enterprise World Forum SEWF 2013 will take place October 2-4 2013 in Calgary Al-berta The Forum will present the Canadian social enterprise movement with opportuni-ties to engage learn and share on the inter-national stage

SEWF 2013 will be a gathering of over 1000 Canadian and international delegates who are involved in the social enterprise move-ment where the blending of social and fi-nancial values is core to business Attendees will consist of practitioners (from all sec-tors) funders investors supporters elected officials and public servants from around the world

Nadine Koumlcher

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 36: CBS Sustainability Quarterly 2013 #1

36 CSQ

The Wind turbine industry -

Emerging global innovation networks in Europe and China

The wind turbine industry has developed into a global network encompassing a large amount of diverse actors within innovation production and installation of wind turbines across the globe

By Stine Haakonsson and Julia Kirch Hollitsch Department of Business amp Politics CBS

market for wind energy Chinese actors have turned China as a location into another im-portant lsquohubrsquo in this network This has led to new forms of innovation collaborations between European and Chinese actors The result has been a complete re-configuration of the industry over the past decade In the International Business and Economic Geog-raphy literatures the development of global production networks in which lead-firms be-come orchestrators of dispersed production

enmark has traditionally played a key role as an lsquoinnovation hubrsquo and com-

panies in Denmark remain among the lead firms within the wind turbine industry Re-cently the industry has reorganized from being located predominantly in the Triad regions (mainly in Europe and the US) to becoming a globally dispersed industry This development can partly be explained by de-velopments in international and national politics Due to the growth of the Chinese

activities in globalized value chains is well established theoretically as well as empiri-cally In the globalization process lead firms relocate production activities to low cost lo-cations by off-shoring and through vertical disintegration and outsourcing to specialized suppliers Producers of wind turbines are no exception However until recently the mar-ket and innovation activities remained con-centrated in Europe and US

With the recent focus on global politics for a post-carbon society the market for wind tur-bines has experienced an immense growth and a high degree of market globalization New locations have developed into main markets One of these is China which since 2010 has been the largest market for wind turbines in the world (in capacity installed) The globalization process in the wind tur-bine can be explained by a combination of offshoring of production by European lead firms mainly through foreign direct invest-ment and establishment of domestic lead firms in emerging markets In 2010 there were four Chinese-owned companies among the top-10 producers of wind turbines as compared to 2003 where all firms on this list were from Europe and the US

D

Julia Kirch Hollitsch

Stine Haakonsson

Stine Haakonsson and Julia Kirch Hollitsch from Depart-

ment of Business and Politics CBS are engaged in the

Sino-Danish Center for Research and Education (SDC)

project on Wind Energy in China Both research on the

current restructuring of industries and firms at the glob-

al level (outsourcing off shoring global value chains)

In particular their research is on 1) the restructuring of

innovation and RampD activities into global innovation net-

works(GINs)2)thechangingroleofemergingmarkets

(ChinaIndiaBrazilSouthAfrica)intheseemergingGINs

and 3) technology transfer and capability building related

to renewable energy

Research

37CSQ

by adapting their products to the Chinese market and through cost-out development activities in the new locations primarily China

As a result the wind industry is today highly knowledge-intensive and internationalized Due to increased attention and investments in sustainable transition policies and car-bon-reducing technology China has over the past decade developed into a high prior-ity investment area for wind turbines Also Chinese companies are upgrading technol-ogy and innovation from the global firms through integration into GINs Moreover the production and innovation networks for wind energy become highly complex and consist of many different suppliers of com-ponents (blades gear boxes control systems bearings) resulting in a variety of network linkages among suppliers of different com-ponents and the wind turbine producers

From our empirical data including more than 40 in-depth interviews collected in 2011 and 2012 in the wind turbines indus-tries in China and Denmark we have identi-fied some very interesting patterns We have identified very different characteristics of the GINs established by the Chinese wind tur-bine industry and the European wind tur

Emerging Global Innovation Networks

Innovation processes are also moving be-yond the boundaries of individual compa-nies and national innovation systems Firms engage in cross-border innovation networks spanning different innovation systems which may be national regional or sectorial in or-der to stay competitive in the global econ-omy Chinese lead firms are entering this scene too The result is globally organized networks of interconnected and integrated functions and operations by firms and non-firm organizations engaged in the develop-ment and diffusion of innovations so-called Global Innovation Networks (GINs) Lead firms internationalize innovation through strategies of exploitation global generation of innovation and global techno-scientific collaborations Chinese wind turbine pro-ducers ndash acknowledging their resource and capability deficiency ndash pursue strategies of innovation network integration through strategies of global generation of innovation These firms link up with specialized Europe-an actors such as core component suppliers through partnerships and networks in or-der to tap into the technology of firms from developed countries and upgrade Mean-while European companies internationalize through exploitation strategies for example

bine industry Although Danish and Chinese actors are experiencing a re-organization of activities and establish networks and globa-linnovation strategies the result is very dif-ferent

The industry from Europe and US

The industry from Europe and the US hosts the lead firms in terms of core technology de-velopment Denmark has traditionally played a key role as lsquoinnovation hubrsquo in technology development and global lead firms such as Vestas and Siemens Windpower (previously Danish lsquoBonusrsquo) took its start already in the 1970s The core competences of the Danish wind turbine innovation system are based on large testing facilities and long track records mainly due to the long time-line of experi-ence The wind industry goes 40 years back and therefore Denmark has a good knowl-edge pool within establishing wind farms (aerodynamics minimizing power loss in energy transmission wind mapping and other installation-related technologies)

38 CSQ

that will make it possible to finance the pro-jects ldquoFrom then on our wind turbine pro-jects developed very fastrdquo(Interview Wind Engineer Chinese Academy of Sciences) Thus this law was a milestone for elevating renewables to a strategic position in China or as expressed by a European lead-firm ldquoWhat drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick offrdquo

Until the turn of the millennium Chinarsquos wind energy industry was largely built on donors acquisition of finished wind turbines and licensed technology from European companies spread on a very small scale into the local industry during the mid 1990s Chi-nese wind turbine technology has evolved from imitation reverse engineering and licensing in the 1980-90s combined with assistance from foreign consultants One example is how DANIDA funded a project in 1986 for Goldwind in Xinjiang which imported 13 units of 150 kW lsquoBonusrsquo (now Siemens Wind Power) turbines

To get beyond the stage of pure imitation several policies have been introduced with the intent to upgrade Chinese manufacturers to obtain indigenous innovative capabilities Policy programs were introduced to enhance Chinese companies to develop wind energy subsidizing wind energy RampD expenditures at varied levels over time establishing a re-newable energy fund and through the ldquo863 Wind Programrdquo under the Tenth Five-Year Plan (2001-2005) Local content require-ments were put in place in which develop-ers of wind energy projects were required to source 70 pct of the content in China These policies ndash which essentially forced foreign manufacturers wishing to sell wind turbines to the Chinese market to establish China-based manufacturing facilities ndash were only removed recently (in 2009) One result was that the foreign companies had to up-grade local suppliers of components

Due to the technological complexity many European (and hereby also the Danish) firms are vertically integrated and have most com-ponents produced in-house or with regular specialized suppliers According to these companies the different parts need to be well adjusted to each other to some extent even co-developed in order to enhance effi-ciency and the lifetime of the wind turbine Likewise the European industry has expe-rienced a concentration of actors with the result that there are only relatively few but large manufacturers in Europe (the larg-est ones are Vestas Siemens Gamesa and Enercon) Together these four companies accounted for about 35 of the global mar-ket in 2010 By seeing the wind turbine as an integrated system these lead firms aim at producing lsquothe Rolls Roycersquo model wind turbines These are strong in terms of qual-ity and standards but generally expensive These firms learn cost-out techniques from their engagement with partners in China

The Chinese Wind Turbine Industry

Today the Chinese wind turbine industry is overly competitive It entails more than 80 wind turbine manufacturers and the Chi-nese market boasts the highest growth rates internationally with an average growth rate of 968 percentages annually in the last three years Several large domestic Chinese wind turbine manufacturers have emerged within the last decade Sinovel and Goldwind take the largest share followed by United Pow-er and Ming Yang just to mention some of them As of the end of 2010 these four were A major driver for the development of the Chinese wind energy market has been the establishment of an institutional context as a comprehensive concerted policy frame-work addressing the development of renewa-ble energies This change in the institutional context was first reflected clearly in the 11th 5-year-plan (2006-2010) which explicitly linked environmental sustainability to the key goal of establishing what was called a harmonious socialist society signalling a socially environmentally and economically sustainable economy With the Renewable Energy Law from 2005 the Chinese wind energy industry really took off as it explicitly seeks to ensure that renewable energy pro-jects have an outlet for their output at prices

Technical barriers and the role of GINs for a post-carbon society

Despite high ambitions in terms of devel-oping innovative capabilities Chinese pro-ducers still produce almost exclusively for the Chinese market However Chinese wind turbine manufacturers have recently started an internationalisation process and some are approaching international markets Not least for tapping into new knowledge

Europe (and Denmark in particular) is per-ceived as a main location from which the Chinese companies can learn more A cou-ple of Chinese companies have already set up RampD centres in Denmark European firms have also initiated RampD centres in new lo-cations primarily China and India In other words GINs can be identified

Our research also points towards important barriers for GINs in the wind turbine in-dustry and for approaching a post-carbon global society Most importantly are the technological barriers intellectual property rights quality issues and issues of limited appropriability of knowledge Further the institutional framework remain relevant for displaying how the sector and the emerging GINs are embedded institutionally socially and technologically Whether actors trans-act knowledge technology and know-how through cooperative innovation activities also depends on how core the technology of a given technology is Still as the market grows in China it seems to have matured in Europe because of changing policies on re-newable energy To sustain the position as a global lsquohubrsquo and world leader in wind tech-nologies there is a strong need for support in Europe as this research really shows how fast the Chinese industry is moving One major result is how important networks are for upgrading companies and it seems that Chinese firms perform better in network strategies and manage to tap into relevant knowledge than the European firms

What drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick off rdquoldquoInterview Wind Engineer Chinese Academy of Sciences

39CSQ

Social Enterprise World

ForumNadine Koumlcher from 180Degrees recounts her experience from the

conference on

Rio de Janeiro Brazil 2012

In the numerous panel debates and parallel track discussion it became clear that Impact Investment is a hot topic among both social entrepreneurs and impact investors a diverse group consisting of corporations founda-tions and potential donors However various obstacles impede a harmonious relationship between the twoSocial enterprises face structural challenges to make themselves more appealing to im-pact investors They have to become more transparent and increase their accountability This includes improving their impact assess-ment and reporting tools However despite much discussion no consensus could be formed on how to optimally conduct im-pact assessment One of the most frequently proposed methodologies involves the use

From the 16th to the 18th of October the CBS Sustainability Platform granted me the opportunity to attend the 5th Social Enter-prise World Forum which took place in Rio de Janeiro Brazil This yearly international conference focuses on social enterprises and their effectiveness in solving social challeng-es The overall theme of the 2012 conference hosted by NESsT was ldquoSocial Enterprise Investing for Impactrdquo Thus for three days over 180 speakers and 650 delegates from 30 different countries shared their experiences regarding impact investment and discussed possibilities to attract new investment by both the public and the private sector for so-cial enterprises

of control groups Story-telling has also been men-tioned to be a powerful tool to provide investors with a proof of outcomesSocial investors are willing to accept returns just below the market rate in exchange for a social return However large profits are still expect-ed and many social enter-prises are afraid of being unable to generate them Social enterprises typically operate on a small scale and are not used to undertake large projects with huge sums of investment given to them Many are too small for social investors to be

attractive as costs are similar for small and large investments although larger invest-ments have a higher payoff

Nichole Echert the CEO of NESsT there-fore pointed out that it is necessary to align expectations between impact investors and social entrepreneurs and to be patient in establishing a relationship between the two groups The expected financial return has to be reasonable close to covering the costs of operation and social returns have to be re-ported to investors by use of clearer criteria

By Nadine Koumlcher Director of Branch Development180 Degrees Consulting Limited

ldquoSocial Enterprise Investing for Impactrdquo

Students

40 CSQ

A highlight of the con-ference was definitely the site visit to a social enterprise project in a recently pacified fave-la It brought further insights on the great variety of social enter-prises that exist in Bra-zil and their missions and struggles We visit-ed a community center at which Comitecirc para

Democratizaccedilao da Informaacutetica (CDI) uses technology to fight poverty and to stimulate entrepreneurship CDI has formed a corpo-rate partnership with Coca Cola which in the same building teaches young locals how to write a CV and find a job Talking to the young locals at the center it became apparent that an increased self-confidence and the in-spiration they get from meeting former now employed participants of the project (eg at Coca Cola) is what they valued most of being part of the class

Participating at the conference was definite-ly a unique and valuable experience I would not want to miss as I tremendously improved my knowledge in the field of social enter-prises through attending the numerous pres-entations and discussions and further met so many inspiring social entrepreneurs impact

In addition it has been stressed that the problem is not a shortage of investment capital (even though the government could promote more impact investment by for instance granting tax breaks) but how to deploy it Social entrepreneurs also have to be aware of the different advantages and dis-advantages of the various types of capital It has to fit their process of establishment and it has therefore been suggested that funds and grants are most optimal in the start-up phase to cover such costs as capacity train-ing There is generally a lack of this early stage financial support Following the initial phase strategic philanthropy money would be most appropriate before impact and final-ly equity investment is sought Furthermore new ways of investment which fit the social enterprise world have to be created replac-ing the current situation of trying to fit social enterprises into the current financial world

investors and students with a genuine inter-est in the field

Participating at the conference was definitely a unique and valuable experience rdquo

ldquo

Social Enterprise World Forum 2013 in

Calgary Canada

The TRICO Charitable Foundation in part-nership with the Social Enterprise Council of Canada and the Social Finance Forum has been selected to host the 6th Annual Social Enterprise World Forum SEWF 2013 will take place October 2-4 2013 in Calgary Al-berta The Forum will present the Canadian social enterprise movement with opportuni-ties to engage learn and share on the inter-national stage

SEWF 2013 will be a gathering of over 1000 Canadian and international delegates who are involved in the social enterprise move-ment where the blending of social and fi-nancial values is core to business Attendees will consist of practitioners (from all sec-tors) funders investors supporters elected officials and public servants from around the world

Nadine Koumlcher

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 37: CBS Sustainability Quarterly 2013 #1

37CSQ

by adapting their products to the Chinese market and through cost-out development activities in the new locations primarily China

As a result the wind industry is today highly knowledge-intensive and internationalized Due to increased attention and investments in sustainable transition policies and car-bon-reducing technology China has over the past decade developed into a high prior-ity investment area for wind turbines Also Chinese companies are upgrading technol-ogy and innovation from the global firms through integration into GINs Moreover the production and innovation networks for wind energy become highly complex and consist of many different suppliers of com-ponents (blades gear boxes control systems bearings) resulting in a variety of network linkages among suppliers of different com-ponents and the wind turbine producers

From our empirical data including more than 40 in-depth interviews collected in 2011 and 2012 in the wind turbines indus-tries in China and Denmark we have identi-fied some very interesting patterns We have identified very different characteristics of the GINs established by the Chinese wind tur-bine industry and the European wind tur

Emerging Global Innovation Networks

Innovation processes are also moving be-yond the boundaries of individual compa-nies and national innovation systems Firms engage in cross-border innovation networks spanning different innovation systems which may be national regional or sectorial in or-der to stay competitive in the global econ-omy Chinese lead firms are entering this scene too The result is globally organized networks of interconnected and integrated functions and operations by firms and non-firm organizations engaged in the develop-ment and diffusion of innovations so-called Global Innovation Networks (GINs) Lead firms internationalize innovation through strategies of exploitation global generation of innovation and global techno-scientific collaborations Chinese wind turbine pro-ducers ndash acknowledging their resource and capability deficiency ndash pursue strategies of innovation network integration through strategies of global generation of innovation These firms link up with specialized Europe-an actors such as core component suppliers through partnerships and networks in or-der to tap into the technology of firms from developed countries and upgrade Mean-while European companies internationalize through exploitation strategies for example

bine industry Although Danish and Chinese actors are experiencing a re-organization of activities and establish networks and globa-linnovation strategies the result is very dif-ferent

The industry from Europe and US

The industry from Europe and the US hosts the lead firms in terms of core technology de-velopment Denmark has traditionally played a key role as lsquoinnovation hubrsquo in technology development and global lead firms such as Vestas and Siemens Windpower (previously Danish lsquoBonusrsquo) took its start already in the 1970s The core competences of the Danish wind turbine innovation system are based on large testing facilities and long track records mainly due to the long time-line of experi-ence The wind industry goes 40 years back and therefore Denmark has a good knowl-edge pool within establishing wind farms (aerodynamics minimizing power loss in energy transmission wind mapping and other installation-related technologies)

38 CSQ

that will make it possible to finance the pro-jects ldquoFrom then on our wind turbine pro-jects developed very fastrdquo(Interview Wind Engineer Chinese Academy of Sciences) Thus this law was a milestone for elevating renewables to a strategic position in China or as expressed by a European lead-firm ldquoWhat drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick offrdquo

Until the turn of the millennium Chinarsquos wind energy industry was largely built on donors acquisition of finished wind turbines and licensed technology from European companies spread on a very small scale into the local industry during the mid 1990s Chi-nese wind turbine technology has evolved from imitation reverse engineering and licensing in the 1980-90s combined with assistance from foreign consultants One example is how DANIDA funded a project in 1986 for Goldwind in Xinjiang which imported 13 units of 150 kW lsquoBonusrsquo (now Siemens Wind Power) turbines

To get beyond the stage of pure imitation several policies have been introduced with the intent to upgrade Chinese manufacturers to obtain indigenous innovative capabilities Policy programs were introduced to enhance Chinese companies to develop wind energy subsidizing wind energy RampD expenditures at varied levels over time establishing a re-newable energy fund and through the ldquo863 Wind Programrdquo under the Tenth Five-Year Plan (2001-2005) Local content require-ments were put in place in which develop-ers of wind energy projects were required to source 70 pct of the content in China These policies ndash which essentially forced foreign manufacturers wishing to sell wind turbines to the Chinese market to establish China-based manufacturing facilities ndash were only removed recently (in 2009) One result was that the foreign companies had to up-grade local suppliers of components

Due to the technological complexity many European (and hereby also the Danish) firms are vertically integrated and have most com-ponents produced in-house or with regular specialized suppliers According to these companies the different parts need to be well adjusted to each other to some extent even co-developed in order to enhance effi-ciency and the lifetime of the wind turbine Likewise the European industry has expe-rienced a concentration of actors with the result that there are only relatively few but large manufacturers in Europe (the larg-est ones are Vestas Siemens Gamesa and Enercon) Together these four companies accounted for about 35 of the global mar-ket in 2010 By seeing the wind turbine as an integrated system these lead firms aim at producing lsquothe Rolls Roycersquo model wind turbines These are strong in terms of qual-ity and standards but generally expensive These firms learn cost-out techniques from their engagement with partners in China

The Chinese Wind Turbine Industry

Today the Chinese wind turbine industry is overly competitive It entails more than 80 wind turbine manufacturers and the Chi-nese market boasts the highest growth rates internationally with an average growth rate of 968 percentages annually in the last three years Several large domestic Chinese wind turbine manufacturers have emerged within the last decade Sinovel and Goldwind take the largest share followed by United Pow-er and Ming Yang just to mention some of them As of the end of 2010 these four were A major driver for the development of the Chinese wind energy market has been the establishment of an institutional context as a comprehensive concerted policy frame-work addressing the development of renewa-ble energies This change in the institutional context was first reflected clearly in the 11th 5-year-plan (2006-2010) which explicitly linked environmental sustainability to the key goal of establishing what was called a harmonious socialist society signalling a socially environmentally and economically sustainable economy With the Renewable Energy Law from 2005 the Chinese wind energy industry really took off as it explicitly seeks to ensure that renewable energy pro-jects have an outlet for their output at prices

Technical barriers and the role of GINs for a post-carbon society

Despite high ambitions in terms of devel-oping innovative capabilities Chinese pro-ducers still produce almost exclusively for the Chinese market However Chinese wind turbine manufacturers have recently started an internationalisation process and some are approaching international markets Not least for tapping into new knowledge

Europe (and Denmark in particular) is per-ceived as a main location from which the Chinese companies can learn more A cou-ple of Chinese companies have already set up RampD centres in Denmark European firms have also initiated RampD centres in new lo-cations primarily China and India In other words GINs can be identified

Our research also points towards important barriers for GINs in the wind turbine in-dustry and for approaching a post-carbon global society Most importantly are the technological barriers intellectual property rights quality issues and issues of limited appropriability of knowledge Further the institutional framework remain relevant for displaying how the sector and the emerging GINs are embedded institutionally socially and technologically Whether actors trans-act knowledge technology and know-how through cooperative innovation activities also depends on how core the technology of a given technology is Still as the market grows in China it seems to have matured in Europe because of changing policies on re-newable energy To sustain the position as a global lsquohubrsquo and world leader in wind tech-nologies there is a strong need for support in Europe as this research really shows how fast the Chinese industry is moving One major result is how important networks are for upgrading companies and it seems that Chinese firms perform better in network strategies and manage to tap into relevant knowledge than the European firms

What drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick off rdquoldquoInterview Wind Engineer Chinese Academy of Sciences

39CSQ

Social Enterprise World

ForumNadine Koumlcher from 180Degrees recounts her experience from the

conference on

Rio de Janeiro Brazil 2012

In the numerous panel debates and parallel track discussion it became clear that Impact Investment is a hot topic among both social entrepreneurs and impact investors a diverse group consisting of corporations founda-tions and potential donors However various obstacles impede a harmonious relationship between the twoSocial enterprises face structural challenges to make themselves more appealing to im-pact investors They have to become more transparent and increase their accountability This includes improving their impact assess-ment and reporting tools However despite much discussion no consensus could be formed on how to optimally conduct im-pact assessment One of the most frequently proposed methodologies involves the use

From the 16th to the 18th of October the CBS Sustainability Platform granted me the opportunity to attend the 5th Social Enter-prise World Forum which took place in Rio de Janeiro Brazil This yearly international conference focuses on social enterprises and their effectiveness in solving social challeng-es The overall theme of the 2012 conference hosted by NESsT was ldquoSocial Enterprise Investing for Impactrdquo Thus for three days over 180 speakers and 650 delegates from 30 different countries shared their experiences regarding impact investment and discussed possibilities to attract new investment by both the public and the private sector for so-cial enterprises

of control groups Story-telling has also been men-tioned to be a powerful tool to provide investors with a proof of outcomesSocial investors are willing to accept returns just below the market rate in exchange for a social return However large profits are still expect-ed and many social enter-prises are afraid of being unable to generate them Social enterprises typically operate on a small scale and are not used to undertake large projects with huge sums of investment given to them Many are too small for social investors to be

attractive as costs are similar for small and large investments although larger invest-ments have a higher payoff

Nichole Echert the CEO of NESsT there-fore pointed out that it is necessary to align expectations between impact investors and social entrepreneurs and to be patient in establishing a relationship between the two groups The expected financial return has to be reasonable close to covering the costs of operation and social returns have to be re-ported to investors by use of clearer criteria

By Nadine Koumlcher Director of Branch Development180 Degrees Consulting Limited

ldquoSocial Enterprise Investing for Impactrdquo

Students

40 CSQ

A highlight of the con-ference was definitely the site visit to a social enterprise project in a recently pacified fave-la It brought further insights on the great variety of social enter-prises that exist in Bra-zil and their missions and struggles We visit-ed a community center at which Comitecirc para

Democratizaccedilao da Informaacutetica (CDI) uses technology to fight poverty and to stimulate entrepreneurship CDI has formed a corpo-rate partnership with Coca Cola which in the same building teaches young locals how to write a CV and find a job Talking to the young locals at the center it became apparent that an increased self-confidence and the in-spiration they get from meeting former now employed participants of the project (eg at Coca Cola) is what they valued most of being part of the class

Participating at the conference was definite-ly a unique and valuable experience I would not want to miss as I tremendously improved my knowledge in the field of social enter-prises through attending the numerous pres-entations and discussions and further met so many inspiring social entrepreneurs impact

In addition it has been stressed that the problem is not a shortage of investment capital (even though the government could promote more impact investment by for instance granting tax breaks) but how to deploy it Social entrepreneurs also have to be aware of the different advantages and dis-advantages of the various types of capital It has to fit their process of establishment and it has therefore been suggested that funds and grants are most optimal in the start-up phase to cover such costs as capacity train-ing There is generally a lack of this early stage financial support Following the initial phase strategic philanthropy money would be most appropriate before impact and final-ly equity investment is sought Furthermore new ways of investment which fit the social enterprise world have to be created replac-ing the current situation of trying to fit social enterprises into the current financial world

investors and students with a genuine inter-est in the field

Participating at the conference was definitely a unique and valuable experience rdquo

ldquo

Social Enterprise World Forum 2013 in

Calgary Canada

The TRICO Charitable Foundation in part-nership with the Social Enterprise Council of Canada and the Social Finance Forum has been selected to host the 6th Annual Social Enterprise World Forum SEWF 2013 will take place October 2-4 2013 in Calgary Al-berta The Forum will present the Canadian social enterprise movement with opportuni-ties to engage learn and share on the inter-national stage

SEWF 2013 will be a gathering of over 1000 Canadian and international delegates who are involved in the social enterprise move-ment where the blending of social and fi-nancial values is core to business Attendees will consist of practitioners (from all sec-tors) funders investors supporters elected officials and public servants from around the world

Nadine Koumlcher

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 38: CBS Sustainability Quarterly 2013 #1

38 CSQ

that will make it possible to finance the pro-jects ldquoFrom then on our wind turbine pro-jects developed very fastrdquo(Interview Wind Engineer Chinese Academy of Sciences) Thus this law was a milestone for elevating renewables to a strategic position in China or as expressed by a European lead-firm ldquoWhat drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick offrdquo

Until the turn of the millennium Chinarsquos wind energy industry was largely built on donors acquisition of finished wind turbines and licensed technology from European companies spread on a very small scale into the local industry during the mid 1990s Chi-nese wind turbine technology has evolved from imitation reverse engineering and licensing in the 1980-90s combined with assistance from foreign consultants One example is how DANIDA funded a project in 1986 for Goldwind in Xinjiang which imported 13 units of 150 kW lsquoBonusrsquo (now Siemens Wind Power) turbines

To get beyond the stage of pure imitation several policies have been introduced with the intent to upgrade Chinese manufacturers to obtain indigenous innovative capabilities Policy programs were introduced to enhance Chinese companies to develop wind energy subsidizing wind energy RampD expenditures at varied levels over time establishing a re-newable energy fund and through the ldquo863 Wind Programrdquo under the Tenth Five-Year Plan (2001-2005) Local content require-ments were put in place in which develop-ers of wind energy projects were required to source 70 pct of the content in China These policies ndash which essentially forced foreign manufacturers wishing to sell wind turbines to the Chinese market to establish China-based manufacturing facilities ndash were only removed recently (in 2009) One result was that the foreign companies had to up-grade local suppliers of components

Due to the technological complexity many European (and hereby also the Danish) firms are vertically integrated and have most com-ponents produced in-house or with regular specialized suppliers According to these companies the different parts need to be well adjusted to each other to some extent even co-developed in order to enhance effi-ciency and the lifetime of the wind turbine Likewise the European industry has expe-rienced a concentration of actors with the result that there are only relatively few but large manufacturers in Europe (the larg-est ones are Vestas Siemens Gamesa and Enercon) Together these four companies accounted for about 35 of the global mar-ket in 2010 By seeing the wind turbine as an integrated system these lead firms aim at producing lsquothe Rolls Roycersquo model wind turbines These are strong in terms of qual-ity and standards but generally expensive These firms learn cost-out techniques from their engagement with partners in China

The Chinese Wind Turbine Industry

Today the Chinese wind turbine industry is overly competitive It entails more than 80 wind turbine manufacturers and the Chi-nese market boasts the highest growth rates internationally with an average growth rate of 968 percentages annually in the last three years Several large domestic Chinese wind turbine manufacturers have emerged within the last decade Sinovel and Goldwind take the largest share followed by United Pow-er and Ming Yang just to mention some of them As of the end of 2010 these four were A major driver for the development of the Chinese wind energy market has been the establishment of an institutional context as a comprehensive concerted policy frame-work addressing the development of renewa-ble energies This change in the institutional context was first reflected clearly in the 11th 5-year-plan (2006-2010) which explicitly linked environmental sustainability to the key goal of establishing what was called a harmonious socialist society signalling a socially environmentally and economically sustainable economy With the Renewable Energy Law from 2005 the Chinese wind energy industry really took off as it explicitly seeks to ensure that renewable energy pro-jects have an outlet for their output at prices

Technical barriers and the role of GINs for a post-carbon society

Despite high ambitions in terms of devel-oping innovative capabilities Chinese pro-ducers still produce almost exclusively for the Chinese market However Chinese wind turbine manufacturers have recently started an internationalisation process and some are approaching international markets Not least for tapping into new knowledge

Europe (and Denmark in particular) is per-ceived as a main location from which the Chinese companies can learn more A cou-ple of Chinese companies have already set up RampD centres in Denmark European firms have also initiated RampD centres in new lo-cations primarily China and India In other words GINs can be identified

Our research also points towards important barriers for GINs in the wind turbine in-dustry and for approaching a post-carbon global society Most importantly are the technological barriers intellectual property rights quality issues and issues of limited appropriability of knowledge Further the institutional framework remain relevant for displaying how the sector and the emerging GINs are embedded institutionally socially and technologically Whether actors trans-act knowledge technology and know-how through cooperative innovation activities also depends on how core the technology of a given technology is Still as the market grows in China it seems to have matured in Europe because of changing policies on re-newable energy To sustain the position as a global lsquohubrsquo and world leader in wind tech-nologies there is a strong need for support in Europe as this research really shows how fast the Chinese industry is moving One major result is how important networks are for upgrading companies and it seems that Chinese firms perform better in network strategies and manage to tap into relevant knowledge than the European firms

What drives the growth is the Chinese policy The passage of the renewable energy law was kind of a kick off rdquoldquoInterview Wind Engineer Chinese Academy of Sciences

39CSQ

Social Enterprise World

ForumNadine Koumlcher from 180Degrees recounts her experience from the

conference on

Rio de Janeiro Brazil 2012

In the numerous panel debates and parallel track discussion it became clear that Impact Investment is a hot topic among both social entrepreneurs and impact investors a diverse group consisting of corporations founda-tions and potential donors However various obstacles impede a harmonious relationship between the twoSocial enterprises face structural challenges to make themselves more appealing to im-pact investors They have to become more transparent and increase their accountability This includes improving their impact assess-ment and reporting tools However despite much discussion no consensus could be formed on how to optimally conduct im-pact assessment One of the most frequently proposed methodologies involves the use

From the 16th to the 18th of October the CBS Sustainability Platform granted me the opportunity to attend the 5th Social Enter-prise World Forum which took place in Rio de Janeiro Brazil This yearly international conference focuses on social enterprises and their effectiveness in solving social challeng-es The overall theme of the 2012 conference hosted by NESsT was ldquoSocial Enterprise Investing for Impactrdquo Thus for three days over 180 speakers and 650 delegates from 30 different countries shared their experiences regarding impact investment and discussed possibilities to attract new investment by both the public and the private sector for so-cial enterprises

of control groups Story-telling has also been men-tioned to be a powerful tool to provide investors with a proof of outcomesSocial investors are willing to accept returns just below the market rate in exchange for a social return However large profits are still expect-ed and many social enter-prises are afraid of being unable to generate them Social enterprises typically operate on a small scale and are not used to undertake large projects with huge sums of investment given to them Many are too small for social investors to be

attractive as costs are similar for small and large investments although larger invest-ments have a higher payoff

Nichole Echert the CEO of NESsT there-fore pointed out that it is necessary to align expectations between impact investors and social entrepreneurs and to be patient in establishing a relationship between the two groups The expected financial return has to be reasonable close to covering the costs of operation and social returns have to be re-ported to investors by use of clearer criteria

By Nadine Koumlcher Director of Branch Development180 Degrees Consulting Limited

ldquoSocial Enterprise Investing for Impactrdquo

Students

40 CSQ

A highlight of the con-ference was definitely the site visit to a social enterprise project in a recently pacified fave-la It brought further insights on the great variety of social enter-prises that exist in Bra-zil and their missions and struggles We visit-ed a community center at which Comitecirc para

Democratizaccedilao da Informaacutetica (CDI) uses technology to fight poverty and to stimulate entrepreneurship CDI has formed a corpo-rate partnership with Coca Cola which in the same building teaches young locals how to write a CV and find a job Talking to the young locals at the center it became apparent that an increased self-confidence and the in-spiration they get from meeting former now employed participants of the project (eg at Coca Cola) is what they valued most of being part of the class

Participating at the conference was definite-ly a unique and valuable experience I would not want to miss as I tremendously improved my knowledge in the field of social enter-prises through attending the numerous pres-entations and discussions and further met so many inspiring social entrepreneurs impact

In addition it has been stressed that the problem is not a shortage of investment capital (even though the government could promote more impact investment by for instance granting tax breaks) but how to deploy it Social entrepreneurs also have to be aware of the different advantages and dis-advantages of the various types of capital It has to fit their process of establishment and it has therefore been suggested that funds and grants are most optimal in the start-up phase to cover such costs as capacity train-ing There is generally a lack of this early stage financial support Following the initial phase strategic philanthropy money would be most appropriate before impact and final-ly equity investment is sought Furthermore new ways of investment which fit the social enterprise world have to be created replac-ing the current situation of trying to fit social enterprises into the current financial world

investors and students with a genuine inter-est in the field

Participating at the conference was definitely a unique and valuable experience rdquo

ldquo

Social Enterprise World Forum 2013 in

Calgary Canada

The TRICO Charitable Foundation in part-nership with the Social Enterprise Council of Canada and the Social Finance Forum has been selected to host the 6th Annual Social Enterprise World Forum SEWF 2013 will take place October 2-4 2013 in Calgary Al-berta The Forum will present the Canadian social enterprise movement with opportuni-ties to engage learn and share on the inter-national stage

SEWF 2013 will be a gathering of over 1000 Canadian and international delegates who are involved in the social enterprise move-ment where the blending of social and fi-nancial values is core to business Attendees will consist of practitioners (from all sec-tors) funders investors supporters elected officials and public servants from around the world

Nadine Koumlcher

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 39: CBS Sustainability Quarterly 2013 #1

39CSQ

Social Enterprise World

ForumNadine Koumlcher from 180Degrees recounts her experience from the

conference on

Rio de Janeiro Brazil 2012

In the numerous panel debates and parallel track discussion it became clear that Impact Investment is a hot topic among both social entrepreneurs and impact investors a diverse group consisting of corporations founda-tions and potential donors However various obstacles impede a harmonious relationship between the twoSocial enterprises face structural challenges to make themselves more appealing to im-pact investors They have to become more transparent and increase their accountability This includes improving their impact assess-ment and reporting tools However despite much discussion no consensus could be formed on how to optimally conduct im-pact assessment One of the most frequently proposed methodologies involves the use

From the 16th to the 18th of October the CBS Sustainability Platform granted me the opportunity to attend the 5th Social Enter-prise World Forum which took place in Rio de Janeiro Brazil This yearly international conference focuses on social enterprises and their effectiveness in solving social challeng-es The overall theme of the 2012 conference hosted by NESsT was ldquoSocial Enterprise Investing for Impactrdquo Thus for three days over 180 speakers and 650 delegates from 30 different countries shared their experiences regarding impact investment and discussed possibilities to attract new investment by both the public and the private sector for so-cial enterprises

of control groups Story-telling has also been men-tioned to be a powerful tool to provide investors with a proof of outcomesSocial investors are willing to accept returns just below the market rate in exchange for a social return However large profits are still expect-ed and many social enter-prises are afraid of being unable to generate them Social enterprises typically operate on a small scale and are not used to undertake large projects with huge sums of investment given to them Many are too small for social investors to be

attractive as costs are similar for small and large investments although larger invest-ments have a higher payoff

Nichole Echert the CEO of NESsT there-fore pointed out that it is necessary to align expectations between impact investors and social entrepreneurs and to be patient in establishing a relationship between the two groups The expected financial return has to be reasonable close to covering the costs of operation and social returns have to be re-ported to investors by use of clearer criteria

By Nadine Koumlcher Director of Branch Development180 Degrees Consulting Limited

ldquoSocial Enterprise Investing for Impactrdquo

Students

40 CSQ

A highlight of the con-ference was definitely the site visit to a social enterprise project in a recently pacified fave-la It brought further insights on the great variety of social enter-prises that exist in Bra-zil and their missions and struggles We visit-ed a community center at which Comitecirc para

Democratizaccedilao da Informaacutetica (CDI) uses technology to fight poverty and to stimulate entrepreneurship CDI has formed a corpo-rate partnership with Coca Cola which in the same building teaches young locals how to write a CV and find a job Talking to the young locals at the center it became apparent that an increased self-confidence and the in-spiration they get from meeting former now employed participants of the project (eg at Coca Cola) is what they valued most of being part of the class

Participating at the conference was definite-ly a unique and valuable experience I would not want to miss as I tremendously improved my knowledge in the field of social enter-prises through attending the numerous pres-entations and discussions and further met so many inspiring social entrepreneurs impact

In addition it has been stressed that the problem is not a shortage of investment capital (even though the government could promote more impact investment by for instance granting tax breaks) but how to deploy it Social entrepreneurs also have to be aware of the different advantages and dis-advantages of the various types of capital It has to fit their process of establishment and it has therefore been suggested that funds and grants are most optimal in the start-up phase to cover such costs as capacity train-ing There is generally a lack of this early stage financial support Following the initial phase strategic philanthropy money would be most appropriate before impact and final-ly equity investment is sought Furthermore new ways of investment which fit the social enterprise world have to be created replac-ing the current situation of trying to fit social enterprises into the current financial world

investors and students with a genuine inter-est in the field

Participating at the conference was definitely a unique and valuable experience rdquo

ldquo

Social Enterprise World Forum 2013 in

Calgary Canada

The TRICO Charitable Foundation in part-nership with the Social Enterprise Council of Canada and the Social Finance Forum has been selected to host the 6th Annual Social Enterprise World Forum SEWF 2013 will take place October 2-4 2013 in Calgary Al-berta The Forum will present the Canadian social enterprise movement with opportuni-ties to engage learn and share on the inter-national stage

SEWF 2013 will be a gathering of over 1000 Canadian and international delegates who are involved in the social enterprise move-ment where the blending of social and fi-nancial values is core to business Attendees will consist of practitioners (from all sec-tors) funders investors supporters elected officials and public servants from around the world

Nadine Koumlcher

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 40: CBS Sustainability Quarterly 2013 #1

40 CSQ

A highlight of the con-ference was definitely the site visit to a social enterprise project in a recently pacified fave-la It brought further insights on the great variety of social enter-prises that exist in Bra-zil and their missions and struggles We visit-ed a community center at which Comitecirc para

Democratizaccedilao da Informaacutetica (CDI) uses technology to fight poverty and to stimulate entrepreneurship CDI has formed a corpo-rate partnership with Coca Cola which in the same building teaches young locals how to write a CV and find a job Talking to the young locals at the center it became apparent that an increased self-confidence and the in-spiration they get from meeting former now employed participants of the project (eg at Coca Cola) is what they valued most of being part of the class

Participating at the conference was definite-ly a unique and valuable experience I would not want to miss as I tremendously improved my knowledge in the field of social enter-prises through attending the numerous pres-entations and discussions and further met so many inspiring social entrepreneurs impact

In addition it has been stressed that the problem is not a shortage of investment capital (even though the government could promote more impact investment by for instance granting tax breaks) but how to deploy it Social entrepreneurs also have to be aware of the different advantages and dis-advantages of the various types of capital It has to fit their process of establishment and it has therefore been suggested that funds and grants are most optimal in the start-up phase to cover such costs as capacity train-ing There is generally a lack of this early stage financial support Following the initial phase strategic philanthropy money would be most appropriate before impact and final-ly equity investment is sought Furthermore new ways of investment which fit the social enterprise world have to be created replac-ing the current situation of trying to fit social enterprises into the current financial world

investors and students with a genuine inter-est in the field

Participating at the conference was definitely a unique and valuable experience rdquo

ldquo

Social Enterprise World Forum 2013 in

Calgary Canada

The TRICO Charitable Foundation in part-nership with the Social Enterprise Council of Canada and the Social Finance Forum has been selected to host the 6th Annual Social Enterprise World Forum SEWF 2013 will take place October 2-4 2013 in Calgary Al-berta The Forum will present the Canadian social enterprise movement with opportuni-ties to engage learn and share on the inter-national stage

SEWF 2013 will be a gathering of over 1000 Canadian and international delegates who are involved in the social enterprise move-ment where the blending of social and fi-nancial values is core to business Attendees will consist of practitioners (from all sec-tors) funders investors supporters elected officials and public servants from around the world

Nadine Koumlcher

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 41: CBS Sustainability Quarterly 2013 #1

41CSQ

Past Events

With the daily newspaper Information the CBS Sustainability Platform co-hosted a de-bate session with Danish Climate Minister Martin Lidegaard on 6 March With the Minister CBS Professor Ole Thyssen and CBS Associate Professor Ole Bjerg debated the way forward towards a greening of soci-ety The Ministerrsquos basic statement was that we have to show an attractive route for con-sumers - including politicians ndash for which they can themselves take ownership of green initiatives or they will not change behavior towards more sustainable consumption and lifestyles Professor Ole Thyssen pointed at the inherent imbalance in modern Western society between the here-and-now economic necessity and the future-oriented ecological necessity ldquosociety needs a new and ecolog-ical definition of what it means to be ldquorichrdquo that is different from the current under-standing of rich being equal with money and consumption

On 28 February the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains Exploring the Re-lationship Between Internationalization and Greening Strategies Here guest researchers Valentina De Marchi and Eleonora Di Maria Univer-sity of Padova presented their ongoing work in this field focusing on the relationships between internationalization and firmsrsquo greening activities considering both for upstream and downstream internationalization The presenters started by pointing out that while the existence of a positive link between internationalization and the diffusion of environmental compli-ant behaviors and the development of environmental innovation seem to be well-established in developing countries they have found that evidence on the developed country context on the contrary is rather scarce Based on original data on Italian firms specializing in traditional industries De Marchi and Di Maria have investigated the relationship between the geog-raphy of firms activities ndash as far as their presence in international markets development of FDIs and engagement in relationships with global suppli-ers ndash and their environmental practices considering both multinational and small firms Also the guests elaborated on how their studies have shown that firmsrsquo innovativeness and marketing strategies are related to the firmsrsquo environmental orientation The authors concluded that preliminary evidence from their research suggests that when it comes to green firms activities and their supply chains geography matters

There is a need to dissociate the idea of hap-piness from moneyrdquo Associate professor Ole Bjerg also talked about money as he intrud-ed the making of money and the concept of Full Reserve Banking as the way forward towards sustainable societies In brief this means that banks will not be able to give credit and produce debts This should be the role of the National Bank This will hinder the development of unlimited debt and inter-est rates payments in a never-ending spiral of untamed demands for growth Ole Bjerg predicted that ldquowithin 3-5 years the current international banking system will break apart so we need to start thinking nowrdquo The Climate Minister concluded by stating that we cannot continue to think happiness and richness as we have done over the last 40 years Within the next 25 years we will have 3 billion middle class people with middle class expectations to consumption It is serious and ldquowe need to act nowrdquo

Debate at Information with

Climate Minister Martin

Lidegaard 6 March

Sustainability Platform seminar on Greening Supply Chains with guest researchers from

University of Padova 28 February

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 42: CBS Sustainability Quarterly 2013 #1

42 CSQ

Sustainability Platform seminar on CSR and Corporate Governance with guest

professor Gregory Jackson 28 February

Sustainability Platform seminar on Sustainability in the Post-Growth Economy

29 January

On 28 February the Sustainability Platform co-hosted a seminar with the CBS Center for Corporate Governance with the title lsquoCorpo-rate Social Responsibility and Irresponsibili-ty A Configurational Analysis of US Firms Using Fuzzy Set Qualitative Comparative Analysis (fsQCA)rsquo During the seminar Guest Professor Dr Gregory Jackson Freie Universitaumlt Berlin presented his latest re-search which examines how corporate gov-ernance is influenced by diverse organiza-tional and institutional contexts Professor Jackson has engaged in several cross-nation-al comparison studies to shed light upon the regulatory and other societal influences on

the corporation particularly using the cases of Germany Japan the UK and USA Pro-fessor Jackson presented his empirical find-ings which have been on the relationship of corporate governance and human resource management and issues around corporate social responsibility and labor standards His current projects which he elaborated on apply methods of fuzzy set and qualitative comparative analysis (QCA) The seminar was also part of the initiative of the recently launched CBS Sustainability Cluster on lsquoThe Context of Corporate Governance and Lead-ership for Sustainability Strategyrsquo which you can also read about in this issue of CSQ

On 29 January the Sustainability Platform hosted one of its most well-attended seminars to date when Associate Professors Ole Bjerg Department of Management Politics and Philosophy and Hubert Buch-Hansen Department of Business and Politics shared their views on the challenges of talking about sustain-ability in a post-growth economy The starting point was very much the notion of what a post-growth economy means The ef-fort to create sustainable growth typically circumvents the fun-damental question of whether continued economic growth is compatible with sustainability at all but Ole and Hubert pushed the agenda by stating that the question is not only whether eco-nomic growth is compatible with sustainability but also for so-ciety to start envisioning what a post-growth economy could look like taking into account traditional notions in business and economy such as free market forces competition and the concept of money The seminar also served to launch the new Post-Growth Economy Cluster within the Sustainability Platform

Sustainability Platform sem-

inar on Boundary Objects

and Coordination of work in

the construction industry 30

January

Sustainability Platform sem-

inar on energy efficiency

in the shipping industry 11

December 2012

On 30 January PostDoc Research Fellow Satu Reijonen Department of Organization presented her recent work-in-progress paper entitled lsquoBoundary Objects Power Effects and Coordination in the Work of Archi-tects and Energy Engineersrsquo

Satu Reijonen elaborated on the extensive and interesting fieldwork that she has done in the construction industry among ar-chitects and energy engineers which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainabil-ity elements into a school building construc-tion project At the seminar Satu Reijonen demonstrated how her empirical analysis show how boundary objects not only me-diate between communities of practice but also influence power structures roles and relations within them

Associate Professor Reneacute Taudal Poulsen from the Department of Innovation and Or-ganizational Economics presented his latest research project funded by the Danish Mar-itime Fund on lsquoEmissions and Energy Ef-fiency - The Twin Challenges for Shippingrsquo

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 43: CBS Sustainability Quarterly 2013 #1

43CSQ

Upcoming EventsMarch

22 CBS Sustainability Seminar with Professor Jeremy Moon Nottingham University Business School on lsquoInstitutionalising Sustainable Business a citizenship approachrsquo

April

2 Inaugural lecture for new Adjunct Professor of Sustainability Annette Stube Head of Group Sustainability in APMoller ndash Maersk8 Inaugural lecture for new Adjunct Professor Susanne Stormer Vice President Corporate Sustainability Novo Nordisk22 - 25 Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo (Solbjerg Plads)29 - 2 May Green Lounge - Hosted by CBS Goes Green ldquoWhere sustainability means businessrdquo

June

5-6 Professor Cass R Sunstein Professor of Law at Harvard Law School and former advisor to US President Obama will visit CBS Co-organized with the CBS Public-Private Platform Date for lecture will be announced at our website shortly10-11 ldquoSustainability in a Scandinavian Contextrdquo Conference Call for paper deadline 10 April 2013 Website httpwwwconferencemanagerdkssc2013conferencehtml

May

30 International researcher workshop on sustainable fashion at CBS

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205

Page 44: CBS Sustainability Quarterly 2013 #1

44 CSQ

CBS Sustainability Platform

Staff

CBS Sustainability Platform Leadership

and StaffAcademic Co-Director Mette Morsing (PhD MSc)

Academic Co-Director Stefano Ponte (PhD MA)

Project Manager Barbara Louise Bech (MSc)

PhD Fellow Kirsti Reitan Andersen (MSc)

Research Assistant and CSQ Editor Jonas Soslashdergran (BSc)

Research Assistant Line Pedini Rasmussen (MSc)

Mail bbiklcbsdk

Tel 3815 3286

Mail kraiklcbsdk

Tel 3815 3286

Mail jesiklcbsdk

Tel 3815 3231

Mail lpriklcbsdk

Tel 3815 3286

Mail spdbpcbsdk

Tel 3815 4265

Mail mmiklcbsdk

Tel 3815 3205