Strategic & Digital Marketing Sustainability - ET7014 - AY 2024-25

Strategic & Digital Marketing [ET7014] Macrotrend Sustainability A.Y. 2024-25 Prof. Pietro Lanzini  A correct and healthy approach to sustainability is facing opposite threats: ideology and negationism  The global risk land...

Strategic & Digital Marketing [ET7014] Macrotrend Sustainability A.Y. 2024-25 Prof. Pietro Lanzini  A correct and healthy approach to sustainability is facing opposite threats: ideology and negationism  The global risk landscape (WEF) “A global risk is an uncertain event or condition that, if it occurs, can cause significant negative impact for several countries or industries (global GDP or populations) within the next 10 years” 1,200 experts and decision- makers in the World Economic Forum’s multistakeholder communities responded to this year’s Global Risks Perception Survey. Respondents are drawn from business, finance, academia, civil society and the public sector and span different areas of expertise, geographies and age groups.  Sustainability A complex and multi-faceted concept “A global risk is an uncertain event or condition that, if it occurs, can cause significant negative impact for several countries or industries (global GDP or populations) within the next 10 years” 2019 2021 For economists, climate change is THE biggest threat for industrial sectors and Nations There is an impellent need to shift to a new paradigm, and pursue so-called Sustainable Development How would you define sustainable development? Brundtland et al. (1987) Report of the World Commission on Environment and Development: Our Common Future (AKA: The Bruntland Report)  Problems of such a broad definition: - How do we define “needs”? - Shall we consider the “needs” to be all the same regardless of time and space? - “Without compromising”: how do we know today for tomorrow?  Three pillars Social welfare Local communities Employee satisfaction …  Why did SD become mainstream? The issue of sustainability is not as recent as you might think [Suggested reading for those interested: not exam material] Recently, there is high awareness because of the intertwining effects of: - A) demographic explosion - B) post-industrialization pollution - C) green consumerism - D) environmental/social disasters - …. B) Post-industrialization pollution There is growing awareness that clean, innovative nuclear power COULD be part of the solution (different opinions, very controversial) Renewables in Italy (GWh)  - Pollution, demographic trends, affluent lifestyles… - What else happened in the ‘80s, that brought sustainability at the forefront of international attention? The Chernobyl disaster was a nuclear accident on 26 April 1986 at the No. 4 nuclear reactor Chernobyl Nuclear Power Plant (Ukraine). It is considered the worst nuclear disaster in history and is one of only two nuclear energy disasters rated at seven—the maximum severity—on the International Nuclear Event Scale, the other being the 2011 Fukushima disaster (Japan). … and then Seveso, Bhopal, etc etc etc  In modern times, awareness emerged (also) in relation with demographic dynamics Impact = Population x “Affluence” x Technology The earlier SD concept puts focus on equilibrium between use of resources, carrying capacity of the environment and social expectations / needs Carrying capacity: Ecological Footprint maximum population that can how much land and water area survive in a definite space a human population uses to given the available resources provide all it takes from nature The sustainability of growth France: 67,5 mln inhabitants footprint:: 337,5 mln ha = 3.375.000 Km2 France area: 640.679 Km2 France: 67,5 mln inhabitants footprint:: 337,5 mln ha = 3.375.000 Km2 France area: 640.679 Km2 Germany, Italy, Spain, Portugal, UK and Poland are needed to support France Footprint... and the same for Italy, Spain, UK... https://www.footprintnetwork.org  Footprint how much land and water area a given population uses to provide all it takes from nature / how fast we consume resources compared to biocapacity Sustainable companies are more likely to: - be competitive in the long run - comply with regulations/avoid lawsuits - avoid incidents (safety) - …  Evolution of business approach to sustainability Focus on costs Focus on opportunities End-of-pipe approach Proactive approach throughout the production process Environment seen as an Shared responsibility issue for technical dep.ts Confidential information Transparency and communication as a competitive tool  The importance of communication Greenwashing Certification The B Corp certification is issued by B Lab, an international non- profit organization founded in 2006. B Lab has developed the B Impact Assessment (BIA), an assessment tool that measures a company's social and environmental performance. How does the certification process work? Self-Assessment: The company compiles the BIA, self-evaluating its performance in different areas, such as governance, workers, community, environment and customers. Verification: A team of B Lab experts verifies the accuracy of the information provided by the company. Decision: If the company reaches a minimum score and demonstrates a concrete commitment to sustainability, it obtains B Corp certification. Sometimes we underestimate the relevance of our daily behaviors in shaping sustainability paradigms. Plus, we can make a difference in behavioral domains that are to some extent unexpected Farming produces more GHG than transport (…) options that create the same sensory experience as animal-based meat At institutional level, there are different initiatives aimed at hindering the impacts of human activities on the environment, ensuring a path which is socially, economically and environmentally sustainable. (UN, global level) - Agenda 2030 (UN Sustainable Development Goals) (EU, Communitarian level) - EU 20-20-20 - EU Green Deal - Next Gen EU - PNRR (Italy, national level) The 2030 Agenda is the new global sustainable development agenda. At the core of the 2030 Agenda is a list of 17 SDGs and 169 related targets to end poverty, protect the planet, and ensure prosperity and peace. The Agenda also calls for a revitalised global partnership to ensure its implementation Public authorities at local, national and international level set directives and regulations according to a so-called top-down approach The 2020 EU energy goals were to have a 20% reduction in CO2 emissions compared to 1990 levels, 20% of the energy, on the basis of consumption, coming from renewables and a 20% increase in energy efficiency.  NEXT GENERATION EU: Resources and Goals In December 2019, the President of the European Commission, Ursula von der Leyen, presented the European Green Deal which intends to make Europe the first continent with zero climate impact by 2050 (vision) The pandemic, and the resulting economic crisis, pushed the EU to formulate a coordinated response, with large economic support packages adopted by individual member states and with the launch of the Next Generation EU (NGEU) program in July 2020. The NGEU marks an epochal change for the EU. The amount of resources deployed to relaunch growth, investments and reforms amounts to 750 billion euros, of which more than half, 390 billion, is made up of grants.