CBS Sustainability Quarterly 2013 #1

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CBS Sustainability Quarterly Volume 4, March 2013




Six New Sustainability Clusters Launched at CBS

THE WIND TURBINE INDUSTRY CBS Research in emerging global innovation networks in Europe and China









Welcome to a new spring semester and a new issue of the CBS Sustainability Quarterly! Highlights In 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 Models, (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 multidisciplinary collaboration.

What is happening at CBS on Sustainability Since the publication of our previous issue, the Platform has facilitated a number of conferences, seminars and workshops on a variety of sustainability topics – 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 application 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 25,000 kroner on an ongoing basis in order to allow some flexibility for supporting innovative ideas with a shorter time horizon. We invite you to visit our website 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 The report showcases how CBS is making great progress on responsible management and sustainability in research, education and stakeholder engagement.

What is coming up? The 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 A.P. Moller-Maersk, with an inaugural lecture 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, René Taudal Poulsen, members of the student organizations 180 Degrees Consulting and 360° Students for Sustainability, Lene Mette Sørensen, Marie Koustrup Frandsen, Michael Nguyen, Christian Charity, Christian-Philip Lundahl, Satu Reijonen, Julia Kirsch Hollitsch, Louise Lyngfeldt Gorm Hansen, Elise Lind Jacobsen, Line Pedini Rasmussen, Søren Jeppesen, Stine Haakonsson, Andreas Rasche, Jette Steen Knudsen, Anker Brink Lund, Julie Uldam, Anne Vestergaard, Christian Erik Kampmann, Jens Frøslev Christensen, Bersant Hobdari, Ole Bjerg, Bent Meier Sørensen, Christian Friis Bach, Jonas Sødergran and Kirsti Reitan Andersen. 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 Platform’s work in general.

Mette Morsing

Stefano Ponte

Elisabeth Crone Linding



In this issue CSQ updates Update 5

Events at CBS

Research clusters launched

COBREN Biofuel 23-26 Conference


Past Events 41-42 Upcoming Events 43

Transparency-Sustainability Nexus Workshop


PHD Focus Hydropower Sustainability 29-31 in China

CSQ Interviews Jenny Mead 10-11 Christian Friis Bach


Research Energy Efficient 32-33 Construction

Updates from partner organizations 180 Degrees 15

The Climate Challenge in Shipping


The Wind Turbine Industry


360 students 16 PRME 17-19 cbsCSR 20-21 CBS Goes Green


Students 4


Social Enterprise World Forum


CSQ Update

Update Next application deadline for Sustainability Platform funding is 15 May Since its launch in July 2011, the CBS Sustainability Platform has been pleased to support a number of sustainability-related initiatives across CBS departments and disciplines - 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 budgets up to 200,000 DKK. The Platform is able to support a long list of

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 (frikøb). Please remember to use the application form to be found on our website when applying. And do contact us if you have any questions beforehand.

Applications of less than 25,000 DKK can be submitted on an on-going basis It is now possible to submit applications for smaller initiatives of maximum 25,000 DKK to the Sustainability Platform on an on-going basis. This is done to increase flexibility and create space for facilitating sustainability initiatives with a more short-term perspective. When applying the Platform for support, please also use the application form to be found on our website.

Call for papers, Journal of Consumer Policy Special Issue - CBS Harvard Collaboration 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 “Behavioural Economics, Consumer Policy, and Consumer Law – An interdisciplinary Perspective”. Following on this trajectory, the present Call focuses on the increasingly discussed possibility of applying behavioural economics to “nudge” 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 “pro” and “con”) and from a variety of disciplines. Papers have to be submitted before October 1st 2013 and according to the submission and author guidelines available on the journal website, The publication of the Special Issue is scheduled for March 2014.

Call for papers, Sustainability in a Scandinavian Context Conference at CBS On 10 and 11 June, the Sustainability in a Scandinavian Context Conference 2013 will be held at CBS. The conference 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 “Sustainability in a Scandinavian Context.” This special issue will be with a respected international academic management 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 conference website,, for more information



CSQ Update

Six New Sustainability Clusters Launched at CBS The CBS Sustainability Platform is happy to announce the launch of six new Sustainability Clusters 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

Sustainability in the Post-Growth Economy

Governing Sustainability Communicative Dimensions of Sustainability


he purpose of the Sustainability Clusters 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 sustainability 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 activities over the next few years within research, education and outreach, working as ‘connecting hubs’ for researchers at CBS that are engaged or wish to become engaged in specific thematic areas within sustainability.



Clusters will develop initiatives within research, education as well as outreach in a variety of mixes. Some will focus their efforts on developing new content for Sustainability teaching and integrating it into new and/or existing courses and programs. others will focus on developing new research projects and applications for external funding involving international research colleagues and corporate partners. Some Clusters plan to facilitate the authoring of journal publications and books as well as summarizing relevant literature in the field and making it available to interested 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 international researchers and practitioners to share their thoughts on sustainability. Activities will naturally depend on the particular interest 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.

The six CBS Sustainability Clusters will be focused on the following themes: Green Innovation and New Business Models Jens Frøslev Christensen

Christian Erik Kampmann

The Cluster on Green Innovation and New Business Models focuses on discussions and challenges around the increasing problems of global warming, resource scarcity and environmental deterioration which have a substantial and comprehensive impact on future business conditions. Companies must develop 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 production and resource use will open up new opportunities for innovations in technology, products, services and business models.

This Cluster will explore and analyze theories, frameworks and empirical evidence on the conditions and tools for promoting and managing sustainable innovation and business models, with focus on environmental issues. The Cluster will seek a coordinated alignment of both technological (and product and process) development and business model innovation, including market platforms and infrastructures. Professor Jens Frøslev Christensen (jfc.ino@ and Associate Professor Christian Erik Kampmann (, the Department of Innovation and Organizational Economics.

Sustainable Transitions in Developing and Emerging Economies The focus of the Cluster on Sustainable Transitions in Developing and Emerging Economies 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 environmental 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

and transfer within clean-tech industries; (2) green innovation networks and capacity building in DEEs; (3) social entrepreneurship and social business models in DEEs; and (4) sustainability strategies of global firms that have implications in DEEs (Base-of-thePyramid markets, Sustainable Value Chains). Associate Professors Søren Jeppesen (sj.ikl@, the Department of Intercultural Communication and Management, and Stine Haakonsson (, the Department of International Business and Politics.

Søren Jeppesen

Stine Haakonsson



Governing Sustainability Andreas Rasche

Jette Steen Knudsen

The Cluster on Governing Sustainability takes it starting point in the recent flourishing of private governance of sustainability initiatives. Private actors, such as business firms and civil society groups, have created numerous initiatives addressing pressing social 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 interested in examining corporate codes of conduct, public-private partnership agreements, labeling schemes, and standard setting by multi-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 organization of sustainability management in transnational firms. Professor Andreas Rasche (, the Department of Intercultural Communication and Management, and Associate Professor Jette Steen Knudsen (, the Department of International Business and Politics.

Communicative Dimensions of Sustainability This cluster invites for exploration of the communicative construction of sustainability across a variety of interests and stakeholders. Organizations are traditionally understood as instrumental spaces for managers to produce products and processes towards a more sustainable society. However, increasingly organizations appear as social and moral spaces where the meaning and role of sustainability is communicatively negotiated and co-constructed and no definite agreement seems to be achieved across publics. This development poses new challenges for business in their continous work to appear as legitimate participants vis å vis civil society, the political system and other organizational/corporate actors. In this cluster we focus on (1) how communication of sustainability has become a strategic tool for managers working in business, ngos and policy-making, (2) how traditional and social media play



an important role in mediating issues of sustainability across publics, (3) how marketing and branding of sustainability influences consumption and public opinon, and (4) how different forms of political and corporate 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 (, the Department of International Business and Politics, and Assistant Professors Julie Uldam ( and Anne Vestergaard (, the Department of Intercultural Communication and Management.

Anker Brink Lund

Julie Uldam

Anne Vestergaard

Sustainability in the Post-Growth Economy Ole Bjerg

Bent Meier Sørensen

The Cluster on Sustainability in the PostGrowth Economy starts from the realization that the era of perpetual economic growth may be over. The Cluster explores and develops ideas and imaginaries of what a sustainable 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 approach 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 consumption? What is a market? And what is in fact economic growth? The Cluster will approach these questions theoretically, by looking into their assumptions rooted in the paradigm of growth capitalism, and empirically – by studying actual practices of alternative economic organization. Associate Professor Ole Bjerg (ob.lpf@cbs. dk) and Professor Bent Meier Sørensen (, the Department of Management, Politics and Philosophy.

Corporate Governance and Leadership for Sustainability Strategy The Cluster on Corporate Governance and Leadership for Sustainability Strategy focuses on managerial behavior and performances related to responsibility in corporations, with a particular interest in how managers and leaders in firms relate to and behave vis á 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 performances.The emphasis will be placed on bringing into the management debate to what extent responsibility brings demands

for new management competences and management 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 ownership structures; (3) shareholder activism; (4) leadership approaches; (5) ethical considerations regarding corporate governance and leadership; and (6) comparisons of corporate governance and leadership approaches in a Scandinavian context vis-à-vis other global contexts.

Bersant Hobdari

Associate Professor Bersant Hobdari (bh., the Department of International Economics and Management.




CSQ Interview

Writing a good business case,

from a Hollywood perspective Interview with Jenny Mead, Senior Researcher, Darden School of Business On November 28, 2012

Kirsti Reitan Andersen, temporary project manager at CBS Sustainability Platform, interviewed Senior Researcher 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 sustainability. Jenny Mead (left) picture from

Could you tell a little bit about yourself? “I 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 myself a writer because that is what I prefer. I write stories. I have worked in the film business in Hollywood where I worked as a Development Executive. It means that I looked for projects that could be made into movies. Again, I am not a business person at all. In the 1920s, Harvard University started casebased teaching. Darden followed through on the case tradition in 1950s. Darden has continued to focus on business ethics as key in educating students. From the 1950s onwards, 10


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 element of ethical ambiguity and decision-making that contains ethical considerations”.

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 cases”.

You are visiting CBS to host a case-writing workshop and one-on-one sessions with aspiring case-writers. What have the participants gained from the workshop?

“Instead of using textbooks in classes, teachers 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 case. Business 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-

“They 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

What is a good case and why are cases beneficial for teaching?

From the workshop at Copenhagen Business School

riences in a safe environment – 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 protagonist in the case, the protagonist presents the problem or issue on video to create a lively teaching environment”. Do businesses actually think about ethics? That 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 businesses realize the value of good treatment to all stakeholders. Businesses exist to create value for everybody.

Relevant links Darden Case Studies: http://www.corporate-ethics. org/publications/case-studies/

The Olsson Center for Applied Ethics (Jenny’s employer): http://www.darden.virginia. edu/web/Olsson-Center-forApplied-Ethics/

The Business Roundtable Institute for Corporate Ethics: http://www.corporate-ethics. org/ Jenny Mead and Jonas Hedman from Department of IT Management at Copenhagen Busimess School



CSQ Interview

SUSTAINABILITY AND DEVELOPMENT COOOPERATION Interview 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 university-level education in developing countries?

CSQ - Elisabeth Crone Linding & Stefano Ponte, sat down with the Dan-

ish Minister for Development Cooperation, Christian Friis Bach, to hear about how the developing world is moving ahead fast – and why Denmark needs to keep up in order to stay relevant.


t is not every day that we meet with ministers on the top floor of Asiatisk Plads – the official home of the Danish Ministry of Foreign Affairs and DANIDA, the international development cooperation branch of the Ministry. Nevertheless, here we are, overlooking the busy waters of the Copenhagen canal and looking forward to a long-planned rendezvous with Christian Friis Bach, Minister 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 developing 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 energy, sustainable agriculture and innovative solutions to enable continued access to scarce resources – 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 being built: “More and more developing countries see green growth and sustainability not as stum-

bling stones but as building blocks of a future strong economy. They recognize that in a world of natural resource scarcity and increasing 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 enabling environment to create more sustainable development.” 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-

terested in looking for ways to address grand societal challenges, such as ensuring sustainable development. Christian Friis Bach recognizes that CBS as a research and educational institution has a role to play here – maybe even a bigger role than we play now. Because even though CBS is known and regarded as a very internationally oriented university, the Minister encourages CBS to go even further in sharpening its global commitment and profile: “Many 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 challenges. For example, 7 out of 10 of the world’s fastest growing economies are in Africa, and here I would really urge CBS to have an even stronger engagement.”

CBS is involved in the Building Stronger Universities in Developing Countries Programme (BSU), which is a partnership between research and higher education institutions in selected developing countries and all the main Danish universities. The long-term goal of the initiative is to make the participating institutions stronger by conducting joint research projects that offer knowledge and solutions to local/domestic and global challenges, to produce better graduate programs and for universities to play an increasing role in the economic, social and political development of their own countries. However, 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 relevant in the future. Christian Friis Bach highlighted:

“It is a big world. And the world moves fast. And I think the challenges upon our educational 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 here”. For example, this means looking at the economies in the world that are the most innovative. These are in many cases in the developing 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 institutions much more broadly and working across borders and academic fields, for example on

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”.

Students, Sierra Leone (picture from, Photo: Jørgen Schytte

The Building Stronger Universities in Developing Countries initiative & CBS “Building Stronger Universities in Developing Countries” is a partnership between research and higher education institutions in developing countries and Danish universities. The long-term goal of the initiative is to make the participating institutions stronger in the sense that they: • • •

play an increasing role in the economic, social and political development of the societies in which they are located; function as nodes of innovation and knowledge production, providing solutions to local/domestic and global challenges; produce skilled and motivated graduates that can contribute to the further development of the societies and address the challenges faced.

The “Building Stronger Universities” 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 Søren 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. CSQ


health, technology and business development, in cooperation with developing country researchers. And we need to be good at a lot more than “just” development cooperation, “if we want to remain relevant for example in Africa on sustainable business, we cannot 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 do.” That is why the Minister argues for more focus 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.: “The fast-growing economies in China, Southeast Asia, Latin America, Africa do not need special 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 relevant”. One of the solutions worth repeating is that of partnerships. According to the Minister, universities need to remember that partnerships with other research institutions, as well as with private companies and organizations, can provide greater insight: “You need not only public-private partnerships, 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 increasingly be challenged to engage in these international 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 Ganløse. Present office Minister for Development Cooperation, 3 October 2011 – Education 1992-1996: Ph.D. International Economics, Royal Danish Agricultural University, Copenhagen 1986-1992: M.Sc. Agronomy, Royal Danish Agricultural University, Copenhagen Work Experience 2010-2011: 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 Economics/Development Economics, Royal Danish Agricultural University (University of Copenhagen) Other engagements 2010-2011: Member of the Board of the Danish United Nations Association 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 Development 1997-2001: Chairman, Mellemfolkeligt Samvirke (Danish Association for International Cooperation) Christian Friis Bach has published a large number of books, reports and articles in newspapers and magazines. Please see for details



Updates from partner organizations at CBS

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

In December 180 Degrees Consulting (180DC) finished its third round of probono social impact consulting projects, with even more success than in previous semesters. All consultants showed dedication and motivation by spending a large amount of their spare time to work with socially conscious organizations in order to help them to improve their social impact. An overcrowded lecture room during the 180DC information meeting at the beginning of the semester and the high number of applications to join the consulting projects were evidence of great interest in 180DC’s 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.

Another 180DC team worked with Hertha, an organization focused on the reverse integration of ordinary people into a community 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.

Contact: phone no. +45 6061 6399 e-mail:

During the consulting period, 180DC organized several training sessions for the consultants of the organization hosted by professional consultancies and each team was assigned a mentor with expertise specific to the given project. The highlight of the semester was the Final Event, at which all of the teams presented their projects in front of a large audience comprised of all 180DC consultants, the 180DC board members as well as mentors, clients and a jury consisting of representatives from PwC, DI, CBS Sustainability Platform, BCG, and VSFA. The jury´s task was to evaluate the consulting projects based on their written report and oral presentation. Based on the creativity, feasibility 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 Without Borders! All of the 180DC board members have throughout the semester been working hard to constantly improve the organization in order to ensure a high quality of the services provided to clients and of the learning experience 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 – thanks to the support of the CBS Sustainability Platform. by Nadine Köcher

All projects involved Danish-based organizations with a strong focus on either social and/or 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.



Updates from partner organizations at CBS 360° Students for Sustainability 360° Students for Sustainability is a non-profit student organization based at CBS, working to enable and inspire students to make responsible and sustainable decisions in their future lives and professional careers Contact: Christina Ek, tlf. 42 39 99 54, mail:

UPDATE FROM 360 STUDENTS Live show at CSR Awards 2012

(Picture from

The past semester was a good one for 360° 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 – the second year in a row! You can watch the nomination video here: http://www. Although we didn’t win the award, representatives from 360° got the chance to participate in the conference’s many seminars – and not least hear Bill Clinton speak! 360° also took it to another level with 360° Academy. The project was a huge success, with over 250 people signed up for the extracurricular course. It shows that there is a clear interest in CSR and sustainability among the students and that 360° Students



for Sustainability fill an important gap in providing the students with a forum where they can discuss such issues with each other, professors, and practitioners. We have already started planning Academy 2013, which will run in the fall. In addition to 360° Academy, 360° organised several successful events and seminars the past semester. 360° 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. 360° also co-organized events on microfinance (with Danish Forum for Microfinance) and fairtrade (with Fairtrade Mærket). 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 Skove.While it is important to look back, this semester 360° is focusing on the future. By the end of the semester, 360° 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 opportunities 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 Christina Ek, Chairwoman of 360° and soon-to-be President of oikos Copenhagen

Updates from partner organizations at CBS


New approach by the Curriculum Development project The 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 programmes. As part of the adherence to PRME, CBS has launched a Curriculum Development project to integrate responsible management practices 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 customised approach will only strengthen the analyses of syllabi for each core course and increase the content of explicit responsible management.

“The current restructuring of the Service Management bachelor programme and the development of three specialised lines of education offer a great opportunity to align the curriculum development with the Principles for Responsible Management adopted by CBS. Currently, the CBS Office for Responsible Management Education and faculty members from CBS are working to identify opportunities to integrate responsible management education into the educational programme”, Assistant Professor Adriana

Budeanu, BSc in Business Administration and Service Management, CBS. In collaboration with study boards, students and faculties, the Curriculum Development project enables a targeted approach to the integration 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 Sustainability Platform the CBS Office for Responsible Management Education arranged an internal competition to identify the best team of students 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 Q&A session that took place in November 2012. The winners of this unique opportunity were the graduate students Bjørg Ilsø 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

PRME PRME Manager Lene Mette Sørensen Tel. +45 3815 2651 E-mail:


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

On behalf of CBS, the Office for Responsible Management Education invited companies and organisations 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 organisations all wanting to explore, challenge and develop CSR related activities. The selection of organisations ranged from Center for Socialt Ansvar who sought the students’ advice on how to revitalise their social concepts in corporation with the civic, public and private sector to Wonderful Copenhagen that engaged the students in their aspirations of 18


retaining Copenhagen as a leading “green” conference destination. This diversity merely 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 introduce 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 organisations’ 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.

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 sustaining Copenhagen’s position as marked leader within sustainable meetings and events – 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 practice” Ulrika Mårtensson, senior communication consultant, Wonderful Copenhagen.

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 consultant Vibeke Ankersborg rounded off the event by guiding both students and organisation 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 business cases and their challenges, this initiative underpins CBS’s Responsible Management Education profile. “Addressing societal challenges 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 future” Lene Mette Sørensen, PRME Manager CBS.

Case Companies



Updates from partner organizations at CBS

Update from CBS Centre for Corporate Social Responsibility

10 years anniversary

cbsCSR celebration

On 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.

The program had been divided into two ses-

Susanne Stormer followed and initiated her

Professor Gail Whiteman’s presentation

sions. Each session ended with a panel dis-

presentation with a brief recap of Novo Nor-

highlighted both the past and the future of

cussion that gave the audience the opportu-

disk’s history and continuous development

CSR. Her main topic was how to deal with

nity to track the developmental trajectory of

of corporate sustainability practices. She em-

planetary boundaries. She drew attention to

CSR and participate in the discussion of the

phasized how Novo Nordisk, with the help

inherent implications of teaching sustaina-

future direction of CSR.

of Professor Ed Freeman, has prioritized a

bility and CSR at a business school and ar-

close relationship with their stakeholders

gued that in order for students and business

In the first session, which focused on the

and learning with them, as a means to reach

executives to understand the implications of

history of CSR, Professor Lucia Reisch from

a higher level of corporate sustainability.

planetary boundaries and their importance,

Department of Intercultural Communica-

An additional key take-away from Susanne

classes should be taught in nature.

tion and Management CBS, Susanne Storm-

Stormer was the notion of transformational

er VP of Corporate Sustainability at Novo

partnerships. She argued that corporations,

In the second session Annette Stube, Head

Nordisk and Professor Gail Whiteman from

NGOs and other stakeholders should use

of Group Sustainability in A.P Moller –

Rotterdam School of Management present-

each other to form transformational partner-

Maersk, Simon Pickard Director General at

ed their perspectives on the development of

ships instead of just transactional partner-

ABIS and Professor Andreas Rasche from

CSR up until now.

ships. She claimed that in order to address

cbsCSR presented their views on the future

Professor Lucia Reisch set the stage with an

and solve the problems in today’s world, the

of CSR.

enlightening introduction to the history of

issues have to be addressed at the roots – in

sustainable development and emphasized

cooperation with stakeholders.

balance on the triple bottom line as key. 20


Annette Stube set forth the argument that

The topics in the second panel debate

Moller – Maersk has it as an integrated and

“the business of business has really changed”.

evolved around some of the same issues as

crucial part of their CSR policies and Simon

She gave an example of how A.P. Moller

in the first panel debate. The audience was

Pickard highlighted how instrumental the-

– Maersk should use their position in the

very interested in the educational aspect of

ories are no longer enough. The concept of

shipping industry to facilitate substantial

CSR and sustainability and a discussion fol-

shared value is inescapable and it is what the

changes. Simon Pickard supported her argu

lowed concerning the issues of ‘preaching to

‘business of business’ in the early 21st centu-

the converted.’ Research shows that 75% of

ry is really about.

CSR courses are not mandatory , thus those 1

students and executives who have a natural

A second topic, which also attracted a lot of

interest in CSR and sustainability enroll for

attention, was the importance of continuous

these courses. The speakers agreed that this

education of both ‘the converted’ but also of

posed a challenge for the future and that

opponents of CSR and people who are not

business schools might have to re-invent

aware of the importance of CSR and sustain-

themselves in this regard. They stressed

ability. In-company learning was depicted as

that it is crucial that CSR and sustainability

a crucial part of the development of CSR and

courses become mandatory. Also the prac-

sustainability; however a physical change in

titioners advocated in-company learning.

the teaching settings is also required to meet

Simon Pickard, Director General at ABIS

They set forth the argument that it may be

the approaching environmental challenges.

ment stating that it is not possible for single

sufficient impact on the corporate sector, but

Centre Director Esben Rahbek Pedersen

corporations to make a difference, but that

also because the corporate sector and the ac-

concluded the conference and the winners

clusters of corporations have to collaborate

ademic world can learn from one another.

of the prize of 25.000 DKK to participate in

a long time before current students will have

the IBECC case competition in San Diego in

to push changes. If corporations do not join forces they risk only making incremental

Sum-up of key perspectives for the future

May 2013 were announced and the celebration of cbsCSR ended with a reception.

changes. Simon Pickard further argued, paraphrasing Andrew Pettigrew’s argument

So how has ‘the business of business really

that in the course of time there has been a

changed’ and in what direction? From the

Thank you to all the speakers, moderators

conceptual change in the argument for CSR.

afternoon’s discussions there were two recur-

and guests for an inspirational afternoon.

He pointed to the fact that it started out as

ring topics. Susanne Stormer briefly touched

a moral or philanthropic enterprise and is

upon it when she talked about transforma-

By Elise Lind Jacobsen and Line Pedini

now perceived as a governance case. Simon

tional partnerships, Annette Stube and A.P.

Rasmussen, cbsCSR

Pickard pointed to the fact that the future of business is to create shared value, i.e. creating economic value that also creates value for society at large. Building on these remarks, 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 e.g. certification schemes in the global coffee and apparel industries, there is a need to more actively manage the co-existence 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. 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 Sustainability Professor at CBS Lucia Reisch

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



Updates from partner organizations at CBS

UPDATE FROM CBS GOES GREEN I The Green Associate Program

n Week 39 CBS turned into a plethora of green initia-

tives and events in order to make CBS reach its sustaina-

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 students 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, sharing their sustainable initiatives and thoughts. The overwhelming interest in sustainability and sustainable business among the students has made it evident that the Green Associate Program should continue 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 associates’ own experience working with CBS Goes Green:

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 helping out before and during Green Week in order to establish an event that would reach all corners of CBS. This has required 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.

What does it mean to be an associate with CBS Goes Green? By Michael Nguyen, Christian Charity and Christian-Philip Lundahl



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


International conference on sustainable biofuels presents latest research By Barbara Louise Bech, Department of Business and Politics, CBS On November 19-20, 2012, the Copenhagen Biofuels Research Network (COBREN) held an international conference on sustainable biofuels inviting 30 researchers 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. 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 fossil fuels. Due to increasing controversies claiming lack of sustainability in first generation biofuels based on food crops, recently the EU proposed an amendment to the Directive limiting the share of first generation 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 narrowly 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 environmental safeguard. This discussion raised questions in regard to the effects of RED globally (e.g. sustainable production in developing countries) and in this context, whether EU legislation can have a ‘trickle down’ effect on national standards of nation-states outside the EU. In this regards, one could ask if enforcement at the local level falls under the responsibility of the EU, but since first generation biofuels are produced outside the EU it is an important issue for European consumers – although interest is currently mainly driven by NGOs.

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

Rough guide to biofuels There 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 production 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 controversies have led to a call for the promotion of second generation biofuels (2G), which are typically based on agricultural waste (e.g. straw), plants and forestry residues (also called lignocellulosic biomass/materials). 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). CSQ


Indirect land use change (ILUC) ILUC is the unintended consequence in terms of more carbon emissions due to land use change around the world induced by the expansion 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.

Voluntary certification schemes In relation to how standards and certifications can impact sustainable biofuel production discussions pointed to the important difference between mandatory and voluntary schemes. As the controversy of sustainable 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 certifications 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 criteria. However, the development processes of new certifications may not be inclusive of relevant stakeholders (e.g. 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, e.g. governments, international organizations, civil society and NGOs, private sector networks and companies, and professions (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 biofuels’ 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 discussions during the conference centered on the complexity of sustainability 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 complexities 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.


A private sector view on the future of sustainable biofuels By Barbara Louise Bech, Department of Business and Politics, CBS 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.


ation biofuels and make Denmark a world leader of technology and binergy security continues to be an eminent concern in a world ofuel production.“Denmark has very strong competencies in green tech of finite resources. For a long time biofuels have been viewed as and as a society we have put a lot of money in its development. This is goone of the key solutions to replace our dependency on fossil fuels and ing to be a huge deal globally, so we are asking whether Denmark wants battle climate change, but in recent years controversy has contested the to be a customer or a producer. What we are working for is of course sustainability of first generation biofuels based on food stock. Issues that we become a lead exporter of technology, but also that Denmark such as lack of environmental safeguards causing loss of biodiversiproduces second generation biofuels commercially. Even though we are a ty and deforestation, and lack of social safeguards ensuring land and small country we cannot settle on selling know-how. Denmark also needs labor rights in producer (developing) countries have been claimed as to have some industrial production,” says Anne Grete Holmsgaard, dikey impediments to sustainable biofuel production. Critical observers rector of Biorefining Alliance. In her view, Denmark needs to keep also argue that the emission savings of biofuel use in compara firm grip on developing innovation or it will slowly but ison to fossil fuels can become much smaller (or even steadily move out of the country. In this regard, she disappear) when indirect land use change (ILUC) Action Aid views sustainability criteria for biofuels as an inis included in the calculations. Furthermore, binovator and not a hindrance. omass production from food stock is argued to compete with food production and inMellemfolkeligt Samvirke (MS), or Action Aid Denmark, is a Danish NGO founded back in 1944. The The Sustainable Biofuels Network (SBN) is creasing food prices. organizations key objective is to fight poverty by ensuring another cluster of private companies trying greater political influence for the world’s poor and marginto facilitate the transition from fossil fuels The Danish NGO Action Aid has been alized at the local, national and international levels. MS to biofuels in the transport sector. For the engaged in biofuels since 2008 and is parworks to bring about long-term development in the world’s aviation industry, biofuels are considered ticularly involved in protecting women’s poorest countries focusing especially on education, cooperation and the ability to organize. MS mainly works to be the only alternative to fossil fuels and rights and preventing land grabs in dein Africa. Read more about the organization’s work the industry firmly believes that biofuels will veloping countries. “We are very concerned at survive according to Robert Arendal, chairman about land use when it comes to first generaof SBN. “The aviation industry has set very clear tion biofuels. This relates both to the people who guidelines for the use of biofuels. We are not going to are dependent on the land and to food security. We use food based biofuels and we will minimize the use of fresh rarely see good combinations where the local population’s water. By 2050 our target is to use 50% biofuels in the global aviation, needs are taken into consideration. The energy crops grown on the local so we really need to move fast”, he explains adding that living up to farmer’s land don’t benefit him and local consumption is essential for sustainability criteria includes being careful about where biofuels are development,” explains Kirsten Hjørnholm Sørensen, political advisor, produced. “But it should be produced all over the world and close to Action Aid, Denmark. the 1,600 airports worldwide that account for 95% of all aviation.” It is therefore believed by many that second generation biofuels is the he technology for second generation biofuels is already here, but the only way forward to avoid competition with food and avert ILUC. problem is that production costs are too high and there is no market. Next generation biofuels is based on lignocellulosic biomass such as As long as prices are not competitive with conventional fuels it will be agricultural and household waste and forest residues. The Biorefining difficult to move forward. “One might ask why there is no market. The Alliance represents a cluster of leading Danish companies within the customers are certainly there, so if I was in the business of producing renewable energy sector with an ambition to promote second generCSQ


Sustainable Biofuels Network(SBN) SBN is a “breeding ground” and “knowledge center” for the biofuels 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 constructive guidelines and rules for the development of biofuels. SBN adheres to EU’s sustainability criteria. SBN is a non-profit association established in 2008. Visit their website for more info at

second generation biofuels I would get started right away”, 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. “There 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 don’t think it is possible to create a market for the ‘green consumer’ 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 supplement,” 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 “Deep Economy” back in 2007:

“ 26


Biorefining Alliance The Biorefining Alliance (BA) was founded December, 2011 by DONG Energy, Novozymes, Haldor Topsøe, and the Danish Agriculture and Food Council and is a three-year project to politically promote Denmark’s 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.

Even before we run out of oil, we’re running out of planet.” Bill McKibben


The Transparency-Sustainability Nexus: A workshop on the practices, meanings and tensions of organizational transparency. By Hans Krause Hansen, Department of Intercultural Communication & Management


n December 5 2012 the Department of Intercultural Communication and Management (ICM) hosted an international workshop supported by CBS Sustainability Platform 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 ‘openness’, ‘disclosure’ and ‘reporting’ are proliferating these years, the actual construction of transparency within and across organizations is poorly understood. Most research 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 efficiency, 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 clearly suggested that the contemporary politics of transparency is much more complex, contradictory and dynamic than traditionally recognized. All papers examined various aspects of the contemporary obsession with transparency and specifically the increasing use of disclosure techniques within and around organizations, the rationales or myths underpinning these measures, their intended and unintended consequences, including implications for identity-making, management and governance practices. Clare Birchall initiated the workshop with a paper titled ‘The Cultural Politics of Disclosure’, highlighting how transparency has been positioned as a superior form of disclosure in popular management and organizational literatures and in policy documents. 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 perceived negative characteristics of other forms of disclosure such as gossip, scandal and rumor. Lars Thøger 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 ‘Myths of Transparency’ sustain numerous organizational practices – 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 understanding. That aspirations and techniques of transparency can have serious repercussions was demonstrated by Peter Skærbæk (with co-author Mark Christensen) in the paper entitled ‘Auditing and the purification of blame’, which analyzed how auditing, auditing practices and institutional entities, including the politicized environments surrounding them, are mobilized and participate in blame games and allocation. In his paper titled ‘Quantification, transparency, and the costs of reassurance’ Henrik Vollmer analyzed various dimensions of the role of numerical records and signaling in generating transparency, trust and mistrust.



Oana Brindusa Albu PHD FELLOW (ICM)





Some of these aspects were also touched upon in the paper ‘Disrupted Disclosures: The Politics of Visibility and Surveillance in the Extractive Industries’ by Hans Krause Hansen (with co-author Julie Uldam), which explored the wider field of visibility and surveillance in which contemporary transparency policies are unfolding, with examples from the extractive industries. Oana Brindusa Albu, in her ‘Transparency and the organizational self: everyday politics of identification in Cooperatives’, examined the paradoxical effects of values and practices of transparency on collective identity formation processes, drawing upon her ongoing, multi-sited fieldwork in cooperatives. Under the heading of ‘The Improbability of Secrecy’, Mark Fenster analyzed the intersections of secrecy and transparency, 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 Flyverbom and Christina Garsten examined ‘The sway of (big) data – calculations and advocacy in the name of transparency’, focusing on the operations of data-based forms of corporate ‘transparency evangelism’ 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 concepts such as secrecy, myth, gossip, blame, surveillance, visibility, 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.

PHD Focus Louise Lyngfeldt Gorm Hansen

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 background in Chinese Studies from Copenhagen University (BA), the Asian Studies Program at CBS (BSc) and in International Business Studies 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 understanding 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 China’s 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 – a combination of Asian Studies and Science and Technology Studies.








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

y PhD project combines two of my

Danish/European-Chinese social science

eration: hydropower. In recent years, China

main research interests: China and

research in collaboration with the newly es-

has become increasingly focused on reduc-

environmental sustainability. I have studied

tablished Sino-Danish Center for Education

ing CO2 emissions. While some countries,

China for a number of years mainly because

and Research (SDC) and started my PhD in

such as the US and Australia, are decommis-

of an interest in how the Chinese view sus-

October 2011.

sioning hydropower dams, China is looking

tainable development. So since finishing my

My PhD project focuses on the Chinese

to large-scale hydropower construction as

masters I have known that I wanted to study

energy sector, more specifically the rapidly

one of the solutions to a future clean energy

how China plan to tackle a sustainable tran-

growing part of the energy sector engaged

supply. This means that hydropower devel-

sition in the years to come. I saw my chance

in renewable energy. Here I examine China’s

opment plays a central role in China’s sus-

when CBS announced PhD scholarships in

second largest source of electricity gene-

tainable transition. However, utilization of hydropower is controversial, not least in China, and has met increasing resistance in recent years, particularly from Chinese and international NGOs, the media as well as the scientific community. 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 generally, the viability of relying on hydropower as a future source of energy is also being questioned. One of the major concerns here is the overarching issue of climate change i.e. glaciers shrinking and yearly water runoff decreasing. This means less stable water flow for hydropower and less water for other purposes, such as agriculture, water supply for down-stream countries etc.

Picture from SinoHydro promotion material, 2011



In contrast to for example the wind power sector in China, in which many foreign companies have invested, the hydropower sector is dominated by a few large state-owned enterprises. Our knowledge of Chinese stateowned enterprises is still limited and therefore my PhD project is also part of a larger research project at the Asia Research Centre with focus on Chinese state-owned enterprises and the reform of the public sector in China. In combining these interests, my PhD examines how Chinese state-owned enterprises in the hydropower sector tackle the demand to expand hydropower development to help reduce China’s CO2 emissions while being under increasing pressure to deliver on sustainability principles in the planning and execution of large scale hydropower projects. The pressure comes mainly from NGO organizations, the media and the scientific

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

community, both at home and from abroad. I am conducting a case study, focused on a specific river in south-western China, which has – until now – not been fully developed for hydropower and the plans for additional 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

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

hydropower companies and the scientific community. However, the project has

China plays, and will continue to play, an

that we here in Europe and in Denmark can

very recently been reopened and so will go

increasingly important role globally in the

more knowledgably and actively engage with

through another round of assessments in the

years to come. However, the country also fac-

China to help solve some of these difficult

near future. The case is an excellent example

es enormous challenges - not least regarding

challenges that eventually affect us all. In do-

of the complexity of hydropower develop-

the environment. These challenges also affect

ing this, I contribute to gain a better under-

ment decisions in China but it also highlights

economies in Western Europe - for better

standing of the Chinese perspective on envi-

some of the social and environmental conse-

or worse. My overall aim is to help generate

ronmental sustainability that can be of use to

quences of the global push to decrease CO2

more knowledge about how sustainability is

companies wanting to engage in the Chinese


understood from a Chinese perspective so

renewable energy sector.




ENERGY EFFICIENT CONSTRUCTION FROM BLUEPRINT TO PRACTICE By postdoc researcher Satu Reijonen, Department of Organization, CBS


n the EU, almost one third of CO2 emissions 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 efficiency of new buildings including a plan for continuous improvement in the area. This far the industry has responded well to these stricter performance requirements. In the future, requirements will rise to levels that are not that easily achieved: in the coming years, buildings 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 addon technologies such as windmills and solar panels to enhance the energy efficiency of a building is through an energy efficient physical 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 building.



Integrated energy design, contrary to addon technologies, can be achieved on a rather modest additional budget. This should be good news for the sector that today is economically pressed! Indeed, today, many low energy building projects claim to use the integrated 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 implementation of this design tool. The integrated energy design method suggests 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 knowledge throughout the design process. It suggests that design teams ought to be multidisciplinary and that architects, engineers and experts should work together, either co-located or in a series of workshops. Furthermore, it suggests systematizing energy quality 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 actually follow the method of integrated energy design to the point! This poses an interesting 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 practitioners and researchers ask themselves what are the boundaries of and challenges related to the use of these tools – and what else is required for organizing for more energy efficient building design processes? A revolution of relations Integrated energy design points to the need to bring energy related expertise into the design process at an earlier point. In order to achieve this, cooperative practices between different professional groups are advocated for. Historically, energy experts have mostly 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 possible and what type of changes do they actually imply in order to function as wished?

The initiation of this type of new working forms is certainly beneficial for energy efficient design. However, for several reasons, they are more difficult to make work than one would assume. While it may sound reasonable it is, after all, a tall order! Integrating energy related practices into an environment where different visions, professions and interests 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 professional roles and relations have to resonate with the skills and visions of individual workers, not only management level design strategies. 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 building design be followed up at certain points during the design process. The method depicts a rather mechanistic and linear understanding of a design process consisting of phases within which iteration may occur. While energy related issues may be discussed 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, however, 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 design is emergent (Yaneva 2009). This entails that the product, the building, may change in unexpected ways during any day of the design 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


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 processes�

Literature 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 sustainability standards and guidelines make visible, systematize and legitimize the existence 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 energy 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, however, falls short in becoming the change agent it suggests. This is hardly surprising, as a method 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 professional roles and relations that is needed in order to enable the change. However, the method, due to its rather mechanical understanding 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 compartmentalize energy related issues from where the design really happens. More about integrated energy design:(IED) Attachments/Guideline_Version_2.pdf/$FILE/ Guideline_Version_2.pdf

Akrich, M. (1992) The De-Scription of Technical Objects, in Shaping Technology / Building Society. Studies in Sociotechnical Change, eds. W.E. Bijker and J. Law, The MIT Press, Cambridge, Massachusetts, pp. 205-224. FIEC 2007. The impacts of buildings on climate change. FIEC_Memo_p2919.pdf on 12.2.2008. March, J.G. (1981). Footnotes to Organizational Change. Administrative Science Quarterly, vol. 26, No. 4, pp. 563-577. Van de Ven, A., D. Polley, R. Garud and S.Venkataraman (1999). The innovation Journey, Oxford: Oxford University Press. Yaneva, A. (2009). The making of a building. A pragmatist approach to Architecture. Bern: Peter Lang.


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 professions, cooperate and coordinate their work regarding energy related questions in construction design. The ways in which relations between and roles of these professions become constituted through socio-material arrangements are a central topics in her work. Besides studies of work Satu has conducted research on environmentally friendly products and markets.




The climate challenge in shipping “Global shipping faces two major challenges, both of which are caused by its reliance on fossil fuels.” By René Taudal Poulsen, Department of Innovation & Organizational Economics

New CBS research project A new, three year research project at CBS, undertaken by René 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 energy 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.



orecasts show that the shipping industry’s CO2 emissions will most likely continue to rise in the next two to three decades, as demand for world seaborne trade will expand. At present global shipping accounts for approximately 3.3 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.

Despite the strong incentives for fuel savings, numerous studies have demonstrated that shipping fails to implement cost-effective measures to reduce fuel consumption. 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.

At the same time rapidly rising fuel costs put heavy strain on shipping company budgets. Historically and until very recently, fuel costs were only a minor concern for shipping 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 scenario for the shipping industry and for society at large. They simply make good sense for everyone.

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 scientists have been able to identify several means to bridge the gaps. However within the maritime domain energy efficiency gaps and the climate challenge remain neglected issues. Legal barriers

René Taudal Poulsen is Associate Professor at the Department of Innovation and Organizational Economics at CBS. He is also affliated with the Centre for Shipping Economics and Innovation at CBS. René 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 environmental challenges faced by the global shipping industry and business model innovation in the maritime domain.



Ships’ 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 companies, 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 saving through slow steaming still remains. References: Jaffe, A.B. and R.N. Stavins, 1994, ‘The energy efficiency gap: What does it mean?’, Energy Policy, 22 (110), 804-10. IMO, 2009. Second IMO GHG Study 2009, London: International Maritime Organization. Moriarty, P. & D. Honnery, 2012, ‘Energy efficiency: Lessons from transport’, Energy Policy 46, 1–3 Poulsen, René Taudal, 2012. ‘Emissions and energy efficiency the twin challenges for shipping’, Mercator. Maritime Innovation, Research and Education, March/June: 447-454.

It is clear that shipping companies cannot fully bridge the energy efficiency gap alone. In fact, factors beyond the control of individual shipping companies and various structural or legal barriers prevent shipping from fully realizing the slow steaming potential. Port congestion remains a world-wide problem 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 reduced speeds and saved fuel. And the delivery 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 consumption. For instance if a captain selects only very small course deviation margins, when coding the autopilot of the ship, the ship’s 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 departments, e.g. on how to crew the vessels, how to monitor vessel fuel consumption or which new equipment to install onboard, may also

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 companies 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 remained 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 “first-come, first-served” basis. Ships only receive their “ticket” in the

have a large impact on fuel efficiency and emission levels. If shipping company managers can nurture a fuel saving culture, this could potentially make a difference. Since 2007 or 2008 shipping companies have indeed started to facilitate such organizational changes, but educational barriers remain a problem. Onshore, 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 nautical educations have focused on maritime safety, but this has caused them to neglect the climate challenge in shipping and the issue of fuel saving. In fact, no single nautical text 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 energy-efficiency improvements. The technical level of education for commercial employees in shipping companies may also hinder improvements in energy-efficiency. Some com-

waiting line upon their arrival at the port. Again lack of trust between the ship-operators, 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 “taxis of the sea”, 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 company has very short-term relations to individual shippers, building trustful relationships between the parties remains a major challenge. 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.

mercial shipping employees may not have sufficient training to fully see and acknowledge 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 challenge than the rise in fuel prices may otherwise suggest. For shipping to bridge energy-efficiency gaps, education – both nautical and commercial ones – 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 however, that educational upgrading is necessary for shipping to effectively address the climate challenge effectively.




The Wind turbine industry Emerging global innovation networks in Europe and China By Stine Haakonsson and Julia Kirch Hollitsch, Department of Business & Politics, CBS

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.


enmark has traditionally played a key

market for wind energy, Chinese actors have

activities in globalized value chains is well

role as an ‘innovation hub’, and com-

turned China as a location into another im-

established theoretically as well as empiri-

panies in Denmark remain among the lead

portant ‘hub’ in this network. This has led

cally. In the globalization process, lead firms

firms within the wind turbine industry. Re-

to new forms of innovation collaborations

relocate production activities to low cost lo-

cently, the industry has reorganized: from

between European and Chinese actors. The

cations by off-shoring and through vertical

being located predominantly in the Triad

result has been a complete re-configuration

disintegration and outsourcing to specialized

regions (mainly in Europe and the US) to

of the industry over the past decade. In the

suppliers. Producers of wind turbines are no

becoming a globally dispersed industry. This

International Business and Economic Geog-

exception. However, until recently, the mar-

development can partly be explained by de-

raphy literatures, the development of global

ket and innovation activities remained con-

velopments in international and national

production networks in which lead-firms be-

centrated in Europe and US.

politics. Due to the growth of the Chinese

come orchestrators of dispersed production With the recent focus on global politics for a

Julia Kirch Hollitsch

Stine Haakonsson

Stine Haakonsson and Julia Kirch Hollitsch from Department 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 global level (outsourcing, off shoring, global value chains). In particular, their research is on 1) the restructuring of innovation and R&D activities into global innovation networks (GINs); 2) the changing role of emerging markets (China, India, Brazil, South Africa) in these emerging GINs; and 3) technology transfer and capability building related to renewable energy.

post-carbon society, the market for wind turbines 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 turbine can be explained by a combination of offshoring of production by European lead firms, mainly through foreign direct investment, 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.



Emerging Global Innovation Networks

by adapting their products to the Chinese

bine industry. Although Danish and Chinese

market and through cost-out development

actors are experiencing a re-organization of

Innovation processes are also moving be-

activities in the new locations, primarily

activities and establish networks and globa-

yond the boundaries of individual compa-


linnovation strategies, the result is very dif-

nies and national innovation systems. Firms


engage in cross-border innovation networks,

As a result, the wind industry is today highly

spanning different innovation systems which

knowledge-intensive and internationalized.

may be national, regional or sectorial, in or-

Due to increased attention and investments

der to stay competitive in the global econ-

in sustainable transition policies and car-

The industry from Europe and the US hosts

omy. Chinese lead firms are entering this

bon-reducing technology, China has over

the lead firms in terms of core technology de-

scene, too. The result is globally organized

the past decade developed into a high prior-

velopment. Denmark has traditionally played

networks of interconnected and integrated

ity investment area for wind turbines. Also

a key role as ‘innovation hub’ in technology

functions and operations by firms and non-

Chinese companies are upgrading technol-

development, and global lead firms such as

firm organizations engaged in the develop-

ogy and innovation from the global firms

Vestas and Siemens Windpower (previously

ment and diffusion of innovations, so-called

through integration into GINs. Moreover,

Danish ‘Bonus’) took its start already in the

Global Innovation Networks (GINs). Lead

the production and innovation networks for

1970s. The core competences of the Danish

firms internationalize innovation through

wind energy become highly complex and

wind turbine innovation system are based on

strategies of exploitation, global generation

consist of many different suppliers of com-

large testing facilities and long track records,

of innovation and global techno-scientific

ponents (blades, gear boxes, control systems,

mainly due to the long time-line of experi-

collaborations. Chinese wind turbine pro-

bearings), resulting in a variety of network

ence. The wind industry goes 40 years back

ducers – acknowledging their resource and

linkages among suppliers of different com-

and therefore, Denmark has a good knowl-

capability deficiency – pursue strategies of

ponents and the wind turbine producers.

edge pool within establishing wind farms

innovation network integration through

The industry from Europe and US

(aerodynamics, minimizing power loss in

strategies of global generation of innovation.

From our empirical data, including more

energy transmission, wind mapping, and

These firms link up with specialized Europe-

than 40 in-depth interviews collected in

other installation-related technologies).

an actors, such as core component suppliers,

2011 and 2012 in the wind turbines indus-

through partnerships and networks in or-

tries in China and Denmark, we have identi-

der to tap into the technology of firms from

fied some very interesting patterns. We have

developed countries and upgrade. Mean-

identified very different characteristics of the

while, European companies internationalize

GINs established by the Chinese wind tur-

through exploitation strategies, for example

bine industry and the European wind tur CSQ


Due to the technological complexity, many European (and hereby also the Danish) firms are vertically integrated and have most components 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 efficiency and the lifetime of the wind turbine. Likewise, the European industry has experienced a concentration of actors with the result that there are only relatively few but large manufacturers in Europe (the largest ones are Vestas, Siemens, Gamesa, and Enercon). Together, these four companies accounted for about 35% of the global market in 2010. By seeing the wind turbine as an integrated system, these lead firms aim at producing ‘the Rolls Royce’ model wind turbines. These are strong in terms of quality and standards, but generally expensive. These firms learn cost-out techniques from

jects developed very fast”(Interview, Wind Engineer, Chinese Academy of Sciences). Despite high ambitions in terms of develThus, this law was a milestone for elevating oping innovative capabilities, Chinese prorenewables to a strategic position in China ducers still produce almost exclusively for or, as expressed by a European lead-firm: the Chinese market. However, Chinese wind “What drives the growth is the Chinese policy. turbine manufacturers have recently started The passage of the renewable energy law was an internationalisation process and some are approaching international markets. Not least

kind of a kick off”.

for tapping into new knowledge.

What drives the growth is the Chinese policy. The passage of the renewable energy law was kind of a kick off ”

Interview, Wind Engineer, Chinese Academy of Sciences

Until the turn of the millennium, China’s Europe (and Denmark in particular) is perwind energy industry was largely built on ceived as a main location from which the donors, acquisition of finished wind turbines Chinese companies can learn more. A couand licensed technology from European ple of Chinese companies have already set up

their engagement with partners in China.

companies spread on a very small scale into R&D centres in Denmark. European firms

The Chinese Wind Turbine Industry

nese wind turbine technology has evolved cations, primarily China and India. In other

Today, the Chinese wind turbine industry is overly competitive. It entails more than 80 wind turbine manufacturers, and the Chinese market boasts the highest growth rates internationally, with an average growth rate of 96.8 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 Power 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 framework addressing the development of renewable 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 projects have an outlet for their output at prices 38

that will make it possible to finance the pro- Technical barriers and the role of GINs for jects: “From then on, our wind turbine pro- a post-carbon society


the local industry during the mid 1990s. Chi- have also initiated R&D centres in new lofrom imitation, reverse engineering, and words, GINs can be identified. licensing in the 1980-90s, combined with assistance from foreign consultants.

One Our research also points towards important

example is how DANIDA funded a project barriers for GINs in the wind turbine inin 1986 for Goldwind in Xinjiang, which dustry and for approaching a post-carbon imported 13 units of 150 kW ‘Bonus’ (now global society. Most importantly are the Siemens Wind Power) turbines.

technological barriers, intellectual property rights, quality issues, and issues of limited

To get beyond the stage of pure imitation, appropriability of knowledge. Further, the several policies have been introduced with institutional framework remain relevant for the intent to upgrade Chinese manufacturers displaying how the sector and the emerging to obtain indigenous innovative capabilities. GINs are embedded institutionally, socially, Policy programs were introduced to enhance and technologically. Whether actors transChinese companies to develop wind energy, act knowledge, technology, and know-how subsidizing wind energy R&D expenditures through cooperative innovation activities at varied levels over time, establishing a re- also depends on how core the technology newable energy fund, and through the “863 of a given technology is. Still, as the market Wind Program” under the Tenth Five-Year grows in China, it seems to have matured in Plan (2001-2005) Local content require- Europe because of changing policies on rements were put in place, in which develop- newable energy. To sustain the position as a ers of wind energy projects were required global ‘hub’ and world leader in wind techto source 70 pct. of the content in China. nologies, there is a strong need for support These policies – which essentially forced in Europe, as this research really shows how foreign manufacturers wishing to sell wind fast the Chinese industry is moving. One turbines to the Chinese market to establish major result is how important networks are China-based manufacturing facilities – were for upgrading companies, and it seems that only removed recently (in 2009). One result Chinese firms perform better in network was that the foreign companies had to up- strategies and manage to tap into relevant grade local suppliers of components.

knowledge than the European firms.


Social Enterprise World Forum

Rio de Janeiro, Brazil 2012

Nadine Köcher from 180Degrees recounts her experience from the conference on “Social Enterprise: Investing for Impact” of control groups. Storytelling has also been mentioned to be a powerful tool to provide investors with a proof of outcomes. Social investors are willing to accept returns just below the market rate in exchange for a social return. However, large profits are still expected, and many social enterprises 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

By Nadine Köcher, Director of Branch Development,180 Degrees Consulting Limited

In the numerous panel debates and parallel

attractive as costs are similar for small and

track discussion it became clear that Impact

large investments although larger invest-

From the 16th to the 18th of October, the

Investment is a hot topic among both social

ments have a higher payoff .

CBS Sustainability Platform granted me the

entrepreneurs and impact investors a diverse

opportunity to attend the 5th Social Enter-

group consisting of corporations, founda-

Nichole Echert, the CEO of NESsT, there-

prise World Forum, which took place in Rio

tions and potential donors. However, various

fore pointed out that it is necessary to align

de Janeiro, Brazil. This yearly international

obstacles impede a harmonious relationship

expectations between impact investors and

conference focuses on social enterprises and

between the two.

social entrepreneurs and to be patient in

their effectiveness in solving social challeng-

Social enterprises face structural challenges

establishing a relationship between the two

es. The overall theme of the 2012 conference,

to make themselves more appealing to im-

groups. The expected financial return has to

hosted by NESsT, was: “Social Enterprise:

pact investors. They have to become more

be reasonable, close to covering the costs of

Investing for Impact”. Thus for three days

transparent and increase their accountability.

operation, and social returns have to be re-

over 180 speakers and 650 delegates from 30

This includes improving their impact assess-

ported to investors by use of clearer criteria.

different countries shared their experiences

ment and reporting tools. However, despite

regarding impact investment and discussed

much discussion, no consensus could be

possibilities to attract new investment by

formed on how to optimally conduct im-

both the public and the private sector for so-

pact assessment. One of the most frequently

cial enterprises.

proposed methodologies involves the use CSQ


A highlight of the con-

investors and students with a genuine inter-

ference was definitely

est in the field.

the site visit to a social enterprise project in a recently pacified favela. It brought further insights on the great variety of social enterprises that exist in Brazil, and their missions and struggles. We visited a community center at which Comitê para

The TRICO Charitable Foundation, in partnership 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-

In addition, it has been stressed that the

Democratizaçao da Informática (CDI) uses

problem is not a shortage of investment

technology to fight poverty and to stimulate

capital (even though the government could

entrepreneurship. CDI has formed a corpo-

promote more impact investment by, for

rate partnership with Coca Cola, which in

instance, granting tax breaks), but how to

the same building teaches young locals how

deploy it. Social entrepreneurs also have to

to write a CV and find a job. Talking to the

be aware of the different advantages and dis-

young locals at the center it became apparent

advantages of the various types of capital. It

that an increased self-confidence and the in-

has to fit their process of establishment and

spiration they get from meeting former, now

it has therefore been suggested that funds

employed participants of the project (e.g. at

and grants are most optimal in the start-up

Coca Cola) is what they valued most of being

phase to cover such costs as capacity train-

part of the class.

will consist of practitioners (from all sec-

stage financial support. Following the initial

Participating at the conference was definite-

officials and public servants from around the

phase, strategic philanthropy money would

ly a unique and valuable experience I would

be most appropriate before impact and final-

not want to miss as I tremendously improved

ly equity investment is sought. Furthermore,

my knowledge in the field of social enter-

new ways of investment which fit the social

prises through attending the numerous pres-

enterprise world have to be created, replac-

entations and discussions and further met so

ing the current situation of trying to fit social

many inspiring social entrepreneurs, impact

ing. There is generally a lack of this early

enterprises into the current financial world.

Participating at the conference was definitely a unique and valuable experience... ”

Nadine Köcher


Social Enterprise World Forum 2013 in Calgary, Canada


berta. The Forum will present the Canadian social enterprise movement with opportunities to engage, learn and share on the international stage. SEWF 2013 will be a gathering of over 1,000 Canadian and international delegates who are involved in the social enterprise movement, where the blending of social and financial values is core to business. Attendees tors), funders, investors, supporters, elected world.

Past Events Sustainability Platform seminar on Greening Supply Chains with guest researchers from University of Padova, 28 February On 28 February, the Platform hosted a Sustainability Seminar for interested CBS faculty and students on Greening Supply Chains: Exploring the Relationship Between Internationalization and Greening Strategies. Here guest researchers Valentina De Marchi and Eleonora Di Maria, University of Padova, presented their ongoing work in this field focusing on the relationships between internationalization and firms’ 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 compliant 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 geography of firms activities – as far as their presence in international markets, development of FDIs and engagement in relationships with global suppliers – and their environmental practices, considering both multinational and small firms. Also the guests elaborated on how their studies have shown that firms’ innovativeness and marketing strategies are related to the firms’ 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.

Debate at Information with Climate Minister Martin Lidegaard, 6 March

With the daily newspaper Information, the

There is a need to dissociate the idea of hap-

CBS Sustainability Platform co-hosted a de-

piness from money”. Associate professor Ole

bate session with Danish Climate Minister,

Bjerg also talked about money, as he intrud-

Martin Lidegaard, on 6 March. With the

ed the making of money and the concept

Minister, CBS Professor Ole Thyssen and

of Full Reserve Banking as the way forward

CBS Associate Professor Ole Bjerg debated

towards sustainable societies. In brief this

the way forward towards a greening of soci-

means that banks will not be able to give

ety. The Minister’s basic statement was that

credit and produce debts. This should be the

we have to show an attractive route for con-

role of the National Bank. This will hinder

sumers - including politicians – for which

the development of unlimited debt and inter-

they can themselves take ownership of green

est rates payments in a never-ending spiral

initiatives, or they will not change behavior

of untamed demands for growth. Ole Bjerg

towards more sustainable consumption and

predicted that “within 3-5 years the current

lifestyles. Professor Ole Thyssen pointed at

international banking system will break

the inherent imbalance in modern Western

apart, so we need to start thinking now”. The

society between the here-and-now economic

Climate Minister concluded by stating that

necessity and the future-oriented ecological

we cannot continue to think happiness and

necessity, “society needs a new and ecolog-

richness as we have done over the last 40

ical definition of what it means to be “rich”

years. Within the next 25 years we will have 3

that is different from the current under-

billion middle class people with middle class

standing of rich being equal with money and

expectations to consumption. It is serious,


and “we need to act now”.



Sustainability Platform seminar on CSR and Corporate Governance with guest professor Gregory Jackson, 28 February On 28 February, the Sustainability Platform

the corporation, particularly using the cases

co-hosted a seminar with the CBS Center for

of Germany, Japan, the UK and USA. Pro-

Corporate Governance with the title ‘Corpo-

fessor Jackson presented his empirical find-

rate Social Responsibility and Irresponsibili-

ings, which have been on the relationship of

ty: A Configurational Analysis of U.S. Firms

corporate governance and human resource

Using Fuzzy Set / Qualitative Comparative

management, and issues around corporate

Analysis (fs/QCA)’. During the seminar,

social responsibility and labor standards.

Guest Professor Dr. Gregory Jackson, Freie

His current projects, which he elaborated on,

Universität Berlin, presented his latest re-

apply methods of fuzzy set and qualitative

search, which examines how corporate gov-

comparative analysis (QCA). The seminar

ernance is influenced by diverse organiza-

was also part of the initiative of the recently

tional and institutional contexts. Professor

launched CBS Sustainability Cluster on ‘The

Jackson has engaged in several cross-nation-

Context of Corporate Governance and Lead-

al comparison studies to shed light upon the

ership for Sustainability Strategy’, which you

regulatory and other societal influences on

can also read about in this issue of CSQ.

Sustainability Platform seminar on Sustainability in the Post-Growth Economy, 29 January 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 sustainability in a post-growth economy. The starting point was very much the notion of what a post-growth economy means. The effort to create sustainable growth typically circumvents the fundamental 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 economic growth is compatible with sustainability but also for society 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 seminar on energy efficiency in the shipping industry, 11 December 2012

Sustainability Platform seminar on Boundary Objects and Coordination of work in the construction industry, 30 January

Satu Reijonen elaborated on the extensive

Associate Professor René Taudal Poulsen

On 30 January, Post.Doc Research Fellow

tion project. At the seminar, Satu Reijonen

from the Department of Innovation and Or-

Satu Reijonen, Department of Organization,

demonstrated how her empirical analysis

ganizational Economics presented his latest

presented her recent work-in-progress paper

show how boundary objects not only me-

research project funded by the Danish Mar-

entitled ‘Boundary Objects, Power Effects

diate between communities of practice, but

itime Fund on ‘Emissions and Energy Ef-

and Coordination in the Work of Archi-

also influence power structures, roles and

fiency - The Twin Challenges for Shipping’

tects and Energy Engineers’.

relations within them.


and interesting fieldwork that she has done in the construction industry among architects and energy engineers, which have needed to collaborate through the means of an energy performance calculation program in order measure and implement sustainability elements into a school building construc-

Upcoming Events March 22, CBS Sustainability Seminar with Professor Jeremy Moon, Nottingham University Business School on ‘Institutionalising Sustainable Business: a citizenship approach’

April 2, Inaugural lecture for new Adjunct Professor of Sustainability, Annette Stube, Head of Group Sustainability in A.P.Moller – Maersk 8, Inaugural lecture for new Adjunct Professor Susanne Stormer, Vice President, Corporate Sustainability, Novo Nordisk 22 - 25, Green Lounge - Hosted by CBS Goes Green “Where sustainability means business” (Solbjerg Plads) 29 - 2 May, Green Lounge - Hosted by CBS Goes Green “Where sustainability means business”

May 30, International researcher workshop on sustainable fashion at CBS

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 shortly. 10-11, “Sustainability in a Scandinavian Context” Conference. Call for paper deadline 10 April 2013. Website: CSQ


CBSSustainability Sustainability Platform Leadership CBS Platform and Staff Staff Academic Co-Director, Mette Morsing (Ph.D., MSc.) Mail: Tel.: 3815 3205

Academic Co-Director, Stefano Ponte (Ph.D., M.A.) Mail: Tel.: 3815 4265

Project Manager, Barbara Louise Bech (MSc.) Mail: Tel.: 3815 3286

PhD Fellow, Kirsti Reitan Andersen (MSc.) Mail: Tel.: 3815 3286

Research Assistant and CSQ Editor, Jonas Sødergran (BSc.) Mail: Tel.: 3815 3231

Research Assistant, Line Pedini Rasmussen (MSc.) Mail: Tel.: 3815 3286 44


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