CEO Clubs Int'l in Romania has several strategic partnerships with Media, offering the opportunity to all the Members to publish articles, presenting personal opinions.
Below you may read the article from Tudor Trita, Managing Director of Archibus
Published on Business Review, February 2014 (click HERE for the online version)
The New Age of Sustainability
In the last two centuries human society went through several major shifts that generated unprecedented opportunities and brought tremendous challenges ahead.
The Industrial revolution (1750-1850) gave us the brute force to change nature. As a consequence, average income and population began to exhibit unprecedented growth. In only two centuries the world's average income per capita increased over 10X and the world's population increased 6X.
In 1960, the microprocessor was invented - another boost to our power to change nature. For over 50 years Moore’s Law – “Computer power doubled every year” proved to be true.
In 1995 – Internet became commercially available, the World is now a Global Village – information is available to anyone instantly. That amplified our power to change the environment and increase the standard of our life. Everybody is now connected to the global information stream and anyone can see how others live.
With a population of exceeding 7 Bl. people and a growth rate of 75 Mio/year the demand for goods is ever increasing and the pace of innovation is at highest peak ever. However, only 2 Bl. people live in countries with a high standard of living, the rest of 5 Bl. are dreaming for the same standard.
How to fulfill the increasing needs of growing population on long term with limited resources and without jeopardizing the environment is the next big challenge. We are to expect a significant change in the consumer behavior from what “I want” to what “I need”. My sons already decided against buying a Christmas tree for purely environmental reasons. I expect that new generations will develop environmental and social consciousness acting more in synchronism with nature rather than against it. I see this as the next necessary evolutionary step of human species.
Local communities are already less willing to accept development of new industries or mining facilities that will impact their surroundings. New legislation is enforced in order to limit pollution and preserve the local ecosystems. Those trends will spread and accelerate.
Solutions are at hand, for instance in the built environment, responsible for 40% of the energy consumption, CO2 emissions from energy use can be reduced by 29% at no net cost according to WBCSD - World Business Council for Sustainable Development – Energy Efficiency in Buildings.
The new goal of the CEOs will be to build resilient organizations able to learn, adapt and survive to unforeseen changes. The profit growth will no longer be the main parameter to measure a CEO’s success. Financial indicators have to be weighed against social and environmental impact on medium and long term. I expect that a “bad quarter” should no longer be avoided at all cost, but accepted as part of the evolution of the business toward resilience. Shareholders reign will be challenged by an increasing number of stakeholders and, in the end, maybe this will lead to avoiding mechanisms such as subprime mortgage crisis that plunged the world economy in a deep recession.
There is no theoretical model to lead a CEO on the path of the new age of sustainability, new ideas have to emerge through practice and experience sharing. This is why I am happy to be part of the CEO Clubs Romania, a perfect place to discuss and learn fresh perspectives of business.