Last year alone, 10 climate-related disasters displaced millions of people with damages exceeding $3B. The time to act is now. Goizueta’s Wes Longhofer and Danni Dong join to discuss the role of business and innovation in a climate-smart world.  

The past eight years have been the warmest on record, with sea levels are rising twice as fast as they were three decades ago. Often, when we think of innovation we think too narrowly - new technologies, products, or services. However, in tackling a problem as pervasive and complex as climate change, our approach in the business world needs to be broader, more holistic. We’ll talk today about the three pillars of business innovation in a climate-smart world:

1. technology,
2. business models, and
3. education. 

Wesley Longhofer is an associate professor of organization and management and the Executive Academic Director of Goizueta’s Business & Society Institute. His work on climate change has been funded by the National Science Foundation and featured in the Washington Post and Nature. His most recent co-authored book, Super Polluters: Targeting the World’s Largest Sites of Climate Disrupting Emissions, was published by Columbia University Press in 2020. Wes is also a member of the recently launched Emory Climate Research Initiative. 

Danni Dong is a dual degree graduate student at Emory pursuing her MBA and MSPH at Goizueta Business School and Rollins School of Public Health. Danni is a passionate activist working to tackle climate challenge through public private partnerships. She has worked with several governmental agencies including the Atlanta Housing Authority, Environmental Protection Agency, and Centers for Disease Control and Prevention. Danni recently attended the United Nations Climate Conference in Egypt as a student ambassador with Emory Climate Talks. 

This episode of the Goizueta Effect podcast was co-created in partnership with Goizueta MBA students and ClimateCAP delegates including Danni Dong, Nikhil Mathur, Jimmy John, and Peter Danis.  A delegation of 11 MBA students from Goizueta Business School recently attended the ClimateCAP Global Summit. Along with hundreds of leading students and professionals from across the nation, they explored the enormous influence and responsibility business leaders hold in driving toward a climate-smart world. Want more insights? Check out #GoizuetaClimateSmart.   

What is the Circular Economy? 

The concept of a circular economy came about as an alternative to the traditional “take-make-waste” model. The circular economy involves designing products and systems that are efficient, durable, and easy to repair, refurbish, or recycle.  

Companies like Patagonia and FairPhone have successfully implemented circular strategies, incorporating buyback programs, refurbished goods, and modular products that can be partially upgraded to lengthen their useful life. These strategies not only benefit the planet, but also create customer loyalty and competitive advantage.  

First It Was Shareholder vs. Stakeholder Capitalism. Now There Are “Multi-Stakeholders”? 

A newer way of thinking has come about recently, focusing on the importance of the multi-stakeholder approach in business. Central to this concept is considering the interests of all parties affected by a company's actions, including employees, customers, suppliers, communities, and the environment. Communities are demanding that companies create more value for society than they extract, and the environment is also considered a stakeholder due to the impact of climate change on businesses.  

By considering multi-stakeholders, the true cost of climate change is clearer. From recent flooding in Pakistan to the longest recorded drought in Eastern Africa, it is apparent that the environment is a key stakeholder that needs to be considered. Natural disasters triggered by climate change have resulted in $3 trillion worth of economic losses between 2010 and 2020. Companies must take a multi-stakeholder approach to mitigate these risks and account for the impact of their operations.  

How Can Innovation Combat Climate Change? 

Green hydrogen is a promising alternative fuel option for companies looking to reduce their carbon footprint. Companies like Siemens Energy and NextEra Energy are investing heavily in green hydrogen technologies to reach zero emissions without offsets. Widespread adoption of green hydrogen is seen as necessary to compete with natural gas. 

Likewise, how we move goods around the planet is an area that can be reconsidered to benefit the planet. Following the pandemic and the realization of fragile supply chains, there is now a shift in the US to reign in supply chains and bring them nearshore or even back onshore. This prompted the passage of the CHIPS Act which focuses on semiconductor manufacturing, but also spurred other industries to consider bringing operations closer to home. Such a shift from offshoring to onshoring could significantly decrease emissions from maritime and aviation shipping, which together currently accounts for more than 20% of global emissions. 

What Role Does the Government Play? 

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