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Sustainability: Managing Mindset ShiftsSignposts for the Future

Sustainability: Managing Sustainability: Managing Mindset ShiftsMindset ShiftsSignposts for the FutureSignposts for the Future

Dzulkifli Abdul RazakUniversiti Sains Malaysia

[email protected]

Dzulkifli Abdul RazakDzulkifli Abdul Razak

Universiti Sains MalaysiaUniversiti Sains Malaysia

[email protected]@usm.my

Regional CIMA Conference 2011Kuala Lumpur, Malaysia

12-13 July 2011

© DAR 2011

“Development which meets the needs of the present without compromising the ability of future generations to meet their own needs”UN World Commission on Environment and Development 1987

What is Sustainable Development?

What is Sustainable What is Sustainable

Development?Development?

© DAR 2011

Why Sustainable Development?Why Now?

Why Sustainable Development?Why Sustainable Development?

Why Now?Why Now?Sustainable development has been the

rallying cry…since 1992, when 100 presidents and prime ministers endorsed it

at the Rio de Janeiro Earth Summit.

In 1987, the World Commission on Environment and Development (known as the Brundtland Commission) challenged the world community to fulfill "the needs of the present without compromising the ability of future

generations to meet their own needs."

Ancient wisdom:You do not eat your paddy (corn) “seed”

Jangan makan benih padi sendiri

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http://www.claybennett.com/

© DAR 2011

Drawing from the research of Drawing from the research of

1,300 experts from 95 1,300 experts from 95

countries, the UN report countries, the UN report

concludes thatconcludes that 60% of the 60% of the

systems that support life on systems that support life on

Earth are being Earth are being dedegraded or graded or

used used ununsustainably.sustainably.The Wall Street Journal Europe (2005) Questions for the Future, July 13, A6

Where are we?Where are we?

Are we eating our paddy (corn) “seed”?

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Source : Ecological Footprint Report (2004)

Breached

Trend Continues

World Ecological Footprint (1961World Ecological Footprint (1961--1997)1997)

Biocapacity breached in midBiocapacity breached in mid--1970s1970s

Brundtland ‘87

Rio Summit ‘92

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Asian nationsAsian nations’’ FootprintFootprint(global hectares per capita)

Myanmar : Myanmar : 0.760.76

Vietnam : Vietnam : 0.76 0.76

Sri LankaSri Lanka: 0.88: 0.88

Indonesia : Indonesia : 0.980.98

Cambodia:Cambodia: 1.031.03

Philippines : Philippines : 1.111.11

Thailand : Thailand : 1.411.41

�� World : 2.18World : 2.18

�� Korea Republic: Korea Republic: 2.432.43

�� Malaysia : Malaysia : 2.992.99

�� Japan : Japan : 3.913.91

�� Korea DPRP : Korea DPRP : 4.074.07

�� Singapore : > Singapore : > 66

Breached

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Living Planet Report 2006…

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Ecological Footprint Report (2004)Ecological Footprint Report (2004)

�� World Average :World Average : 2.18*2.18*

�� World Biocapacity :World Biocapacity : 1.89*1.89*

Are We Living Beyond Our

Means?

* global hectares per capita

Human activities have

ecological impacts

at least 30% beyond

the planet’s capacity

to renew itself and absorb pollution*

*Sacquet (2005) World Atlas of Sustainable Development, p. 53

© DAR 2011http://earthobservatory.nasa.gov/

Image obtained: Oct 01, 2006

REUTERS & AFPJul 11, 2001

Global Ecological Footprint

Haze footprint

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Dense smog settled over the North China Plain on February 20, 2011. This photo-like image taken at 11:35 a.m. by the Moderate Resolution

Imaging Spectroradiometer (MODIS) on NASA’s Terra satellite.The featureless gray-brown haze is so thick that the ground

is not visible in parts

http://earthobservatory.nasa.gov

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The Arizona fire raging since May 29 through more than 670 square miles so far, is threatening more than homes and property.

June 12, 2011 at 6:41 pm

http://modernsurvivalblog.com/

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Ecological Footprint (1999)Ecological Footprint (1999)

-- by region and income groupby region and income group

2.18: World Ecological Footprint

1 874 4 0 87

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Quality of Life (Total pop: 6 Billion)

Sustainable

level

80%consumed by

One

Billion

Resourc

e/ E

nerg

y c

onsum

ption

Modified from Mats-Olov Hedblom, Ericsson

Dennis Pamlin (2003), Global Policy Advisor, WWF

Are some of us living Are some of us living beyondbeyond their meanstheir means??

20%by

Rest of the

World

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Human Ecological Footprint (1950Human Ecological Footprint (1950--2050)2050)

Nu

mb

er

of

pla

nets

Reality Check?

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Consider the following passage from the UN secretary general's own report: Keeping the Promise:…progress does not look very encouraging, in fact, the number of people living in extreme poverty actually went up between 1990 and 2005 by about 36 million ... The number of "$1 a day poor" went up by 92 million in sub-Saharan Africa and by eight million in west Asia during the period 1990 to 2005.

http://www.guardian.co.uk/global-development/2010/sep/21/mdgs-rose-shuman-channeled-approach

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Kofi Annan Kofi Annan UN UN SecretarySecretary--General (2001)General (2001)

Our biggest challengeOur biggest challenge

in this new century isin this new century is

to taketo take an idea that sounds an idea that sounds

abstractabstract

–– sustainable developmentsustainable development ––

andand turn it into reality turn it into reality

for the worldfor the world’’s peoples people

Can we meet the challenge?Can we meet the challenge?

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http://www.kennuncorked.com/sustainable_defined.html

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Is the ACCOUNTING WORLD sustainable?

http://energy.i2i.org/category/cdphe/

USTAINABLE?

The notion of the triple bottom line pervades practice in the business, public, and not for profit sectors and provides the best known area of social and environmental accounting research - Prof Roger Burritt

http://www.unisa.edu.au/news/2008/031208.asp

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Accounting Forum, June 2001

Vol. 25(2): 128-157

This paper has been written in response to the perception that ‘sustainable development’ (hereafter SD) and its derivatives are being used in, amongst others, the accounting literature in a way which equates…with ‘good environmental management’. Further, the paper assumes that such usage of SD arises, at least in part, from a lack of awareness of the origins of the concept and of the debates which surrounded its origin.

The paper, therefore, seeks to remedy this perceived problem…focused on…the international development literature because it was from this that the Brundtland Report originated.

The main conclusion of this paper, therefore, is that one shouldbe careful about following the business literature and using SD to mean ‘good environmental management’. While ‘good environmental management’ is part of the answer to such a question, this paper argues that it is not the core issue at stake.

Jan Bebbington, Sustainable development: a review of the international development, business and accounting literature

© DAR 2011

Princeton, 2011, 216 pp.

ethical fading -- the removal of ethics from the decision-making process (eg Challenger space shuttle disaster, steroid use in Major League Baseball, the crash in the financial markets)

ethical standards shift --neglecting to notice and act on the unethical behavior of othersethical sinkholes -- creating questionable actions

© DAR 2011http://www.smilepk.info/

should self

the person who

knows what is correct

want self

the person who ends

up making decisions

motivatedblindness

indirect

blindness

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“I should behave ethically

… therefore I will”

“I should havebehaved ethically… therefore I did”

PredictionForecasting errors

RecollectionMemory revision

Shifting standards

Decision TimeEthical fading

Visceral responses

“I don’t see the ethical implications of this decision…so I do what I want to do”

Should-self

Want-self Blind Spots p. 67

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http://www.globecartoon.com/

© DAR 2011

Trying to run a complex society on a single indicator like the Gross National Product (GNP) is like trying to fly a 747 with only one gauge on the instrument panel ...

H Henderson (1991) Paradigms of Progress: Life Beyond Economics

or

Use this gauge only

What Indicator(s) ?What Indicator(s) ?What Indicator(s) ?

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We have a fourth brother, DO NO EVIL, but he left

the group for an accounting firm.

Time Time for a for a behaviour changebehaviour change

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4 Action Areas

� UNESCO is the lead UN agency

2005-2014:

The Decade of Education

for Sustainable Development

�Approved by UN General Assembly (2002)

1. Promotion and improvement of basic education;2. Reorienting existing education at all levels to

address sustainable development;3. Developing public understanding and awareness

of sustainability;4. Training the workforce with knowledge and skills

to perform their work in a sustainable manner

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The Sustainability “Stool”

Environmental Ethics S

cope of measures

Transformative Education

Community Consciousness

““turn it into realityturn it into reality””

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ConclusionConclusion

““Achieving sustainable development Achieving sustainable development is perhaps one of the most difficult and is perhaps one of the most difficult and most pressing goals we face. It requires most pressing goals we face. It requires

on the part of all of us on the part of all of us commitmentcommitment, , action, partnerships and sometimes, action, partnerships and sometimes,

sacrifices of our traditional life patterns sacrifices of our traditional life patterns and personal interests.and personal interests.””

-- Mostafa Tolba, ChairpersonMostafa Tolba, Chairperson

Commission Commission on Sustainable Developmenton Sustainable Development

© DAR 2011

This presentation and the opinions expressed are those of the author as of the

date of writing and are subject to change. It has been prepared solely for purposes

of education, information and discussion by the recipients. Any reference to past

data/indicators are not necessarily a guide to the present and future.

The information and analysis contained in this publication have been compiled or

arrived at from sources believed to be reliable, and are duly acknowledged.

The author does not make any representation as to their accuracy or

completeness and does not accept liability for any loss arising from the use hereof.

Neither this document nor any copy thereof may be sent to or

taken into territories/places where the use and the distribution

may be restricted by local law and/or regulation.

This document may not be reproduced either in whole,

or in part, without the written permission of the author © DAR 2007-2011

Acknowledgement

& Disclaimer

© DAR 2011

�� Nearly 10 years later, sustainable development has Nearly 10 years later, sustainable development has largely failed as an organizing principle.largely failed as an organizing principle.

�� The lack of progress in confronting climate change, The lack of progress in confronting climate change, biodiversity loss, and other pressing global environmental biodiversity loss, and other pressing global environmental challenges is glaring, as is the lack of improvement in the challenges is glaring, as is the lack of improvement in the developing world's air and water quality. developing world's air and water quality.

�� As tempting as it may be to put the blame solely on a As tempting as it may be to put the blame solely on a lack of international will, lack of international will, the seeds of sustainable the seeds of sustainable development's failure were in fact sown at its development's failure were in fact sown at its inceptioninception. .

�� Under the rubric of sustainable development, the [1987 Under the rubric of sustainable development, the [1987 UN] commission UN] commission sought to accommodate the sought to accommodate the competing desirescompeting desires of developed countries to combat of developed countries to combat worldwide environmental threats and of developing worldwide environmental threats and of developing countries to put poverty at the top of the global agenda. countries to put poverty at the top of the global agenda.

Daniel C. Esty, A Term's Limits, Sep 1, 2001

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