Entrepreneurial Solutions to Insoluble Problems - Tides Canada

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Growing Opportunity3679www.un.org/millenniumgoalsSurprisingly, and unlike health, energyis not mentioned explicitly in the toplevel of the UN Millennium DevelopmentGoals. 79 Yet its availability, its pricing andthe environmental sustainability of itsproduction, supply and use are absolutelyintrinsic to meeting all the other Goals.Meanwhile, even if activists see access toclean, affordable energy as increasinglyakin to a basic human right, theprospects for providing a predicted globalpopulation of 9-10 billion people bymid-century with adequate, sustainableenergy to meet their needs — let alonetheir wants and desires — seems remote.That said, there are some grounds for hopein the recent coincidence and convergenceof three megatrends: oil price rises, growingconcerns about energy security in thecontext of a political uncertainties aroundseveral major oil production regions, andthe profound longer-term threat of climatedestabilization.Taken together, these three factors couldwell aggravate the energy picture, drivingmany forms of fuel out of the reach of theworld’s disadvantaged communities andpopulations.As with the previous Deeper Dive intohealth, the purpose here is to investigatethe potential contribution of social andenvironmental entrepreneurs in relationto a critical area of need, from severaldifferent angles. The first thing to say aboutthe potential of such entrepreneurship isthat this is still very much a micro-Davidand macro-Goliath situation, with any oneof the major energy groups — among themthe world’s great petrochemical companies— doing more in a single day to meethuman energy needs than all social andenvironmental entrepreneurs do in a year,although the vast majority of these energyflows are based on carbon-intensive gasand oil that is consumed in rich markets.But the key point is that much of thepotential of social entrepreneurship flowsfrom a new mindset that these peoplemodel.Figure 5.1World marketed energy:consumption 1980–2030Quadrillion BTUsHistory Projection1000900800700600500400300200100Sources for figures 5.1–5.5History: Energy Information Administration(EIA) International Energy Annual 2003May–July 2005.Projection: EIA System for the Analysisof Global Energy Markets, 2006.www.eia.doe.gov/iea19801985199019952003201020152020202520305 Deeper Dive: Energy
Growing OpportunityDeeper Dive: Energy‘The biggest challenge?Educating potentialcustomers regarding theneed for, and advantagesof, sustainable solutions.Essentially, making thebusiness case for ourservices.’Environment Sector80The Global Reporters 2006 was an earlystepping stone in SustainAbility’s evolvingSkoll Program.As suggested in Figure 3.1, the waymainstream business frames sustainabilityissues is moving from an early focus oncompliance (involving a largely defensivebusiness positioning), through a periodof corporate citizenship (with a growingdegree of engagement and beyondcompliance,voluntary effort) to a nowemergingphase, involving a fundamentalshift to competitive strategies built aroundinnovative technologies, entrepreneurialsolutions and potentially disruptivebusiness models.Interestingly, energy is under-representedin current memberships of leading socialentrepreneurship networks. By our analysis,only eight Ashoka Fellows (out of over1,800) are operating in this sector, withtwo Schwab Foundation network membersand no Skoll Foundation entrepreneurs, todate. By contrast, the Cleantech VentureNetwork has a major focus on clean energyand 1,300 affiliate investor members.One venture capital fund told us it now hasover 2,000 cleantech firms on its database.The business case37So what is the mainstream business casefor looking at social entrepreneurship in theenergy sector? Clearly it has varied as theagenda for the energy sector has movedbeyond the basic compliance stage throughvarious forms of citizenship to a newgeneration of sustainability-focusedcompetitive strategies.But the critical mass of the energy sectoris still mired in unsustainability. Even thebest energy sector companies are largelyoperating versions 1.0 and 2.0 (see Figure3.1) of the business case. In SustainAbility’s2006 Global Reporters survey of internationalbest practice in sustainabilityreport, a number of energy companiesmade it into our Top 50, including BP, Enel,Shell, Statoil, and Suez. 80 The sort of issuessuch companies are currently focusing oninclude: environmental and social footprints(BP); provision of micro-loans to helpbusinesses develop cleaner indoor cookingstoves (Shell) and microfinance (BP);access to new forms of energy (Statoil);and the pursuit of sustainable developmentthrough better integration of differentservice offerings, including energy, wastemanagement, and water (Suez).Figure 5.2World marketed energy:OECD and non-OECD consumption1980–2030Quadrillion BTUsHistory Projection500Figure 5.3World marketed energy:consumption by fuel type1980–2030Quadrillion BTUsHistory Projection500400Non-OECD400OECD300300Oil200200CoalNatural Gas100100RenewablesNuclear19801990200020032010202020301980199020002003201020202030
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