"(T)o say that the individual is culturally constituted has become a truism. . . . We assume, almost without question, that a self belongs to a specific cultural world much as it speaks a native language." James Clifford
Showing posts with label ecology. Show all posts
Showing posts with label ecology. Show all posts

Thursday, August 3, 2017

Carbon-Dioxide Emissions: A Species’ Death-Wish?

Global emissions of carbon dioxide from fossil-fuel burning rose 5.9 percent in 2010, the largest amount on record, according to an analysis released in early December, 2011 by the Global Carbon Project. According to the analysis as reported by the New York Times, “the increase, a half-billion extra tons of carbon pumped into the air, was almost certainly the largest absolute jump in any year since the Industrial Revolution, and the largest percentage increase since 2003.” 
The researchers did not expect the extraordinary growth to persist, but did "expect emissions to return to something closer to the 3 percent yearly growth of the [2000-2009] decade, still a worrisome figure that signifies little progress in limiting greenhouse gases. The growth rate in the 1990s was closer to 1 percent yearly.” In other words, the trend has been the opposite of that which one might have expected years after Al Gore’s documentary on global warmth. Increasing knowledge of global warming did not result in a reduction in contributing to global warming; rather, more carbon dioxide has ensued. To be sure, the negative correlation is not causal in nature; knowing more about global warming has not caused people to decide to pollute more. That would really be bizarre. Even so, it does appear that mankind is not sufficiently interested in protecting the specie’s own long-term viability at the expense of more immediate interests. Put another way, governments have enabled their respective businesses to produce more (or cheaper) even while knowing that the earth is warming.
According to the New York Times, “Scientists say the rapid growth of emissions is warming the Earth, threatening the ecology and putting human welfare at long-term risk. But their increasingly urgent pleas that society find a way to limit emissions have met sharp political resistance in many countries, including the United States, because doing so would entail higher energy costs.” Short-term costs are more important than long-term survival. This, in short, is why our species does not deserve to survive. We have produced this sad verdict ourselves. “Each year that emissions go up, there’s another year of negotiations, another year of indecision,” said Glen P. Peters, a researcher at the Center for International Climate and Environmental Research in Oslo and a leader of the group that produced the new analysis. “There’s no evidence that this trajectory we’ve been following the last 10 years is going to change.” This was borne out in the “deal” reached for a “New Emissions Treaty” at the U.N. climate talks ending in December 2011.
According to the New York Times, “The European Union had pushed hard for what it called a ‘road map’ to a new, legally binding treaty against fierce resistance from China and India, whose delegates argued passionately against it.” Developing countries, including China and India, had surpassed the developed countries in their overall greenhouse emissions. In 2010, for example, the combustion of fossil fuels and the production of cement sent more than nine billion tons of carbon into the atmosphere, the new analysis found, with 57 percent of that coming from developing countries. Even so, emissions per person were still sharply higher in the wealthy countries, which had been emitting greenhouse gases far longer and thus they account for the bulk of the excess gases in the atmosphere. The level of carbon dioxide, the main such gas, had increased 40 percent since the Industrial Revolution. A long-term cost was being incurred simply in debating year after year without actionable results in lower emissions. For developing countries, it would seem that having an equal opportunity to pollute was worth risking the planet, at least as far as human habitation is concerned. “Am I to write a blank check and sign away the livelihoods and sustainability of 1.2 billion Indians, without even knowing what the E.U. ‘road map’ contains?” asked India’s environment minister, Jayanthi Natarajan. “Please do not hold us hostage.” This way of thinking—or decision to use hyperbole—also qualifies mankind as not deserving to survive.
Even as carbon-dioxide emissions were “alive and well,” the “deal” reached in December 2011 would continue the Kyoto agreement, to which neither the United States nor developing countries such as China and India are parties, until  2017 or 2020. The terms of any agreement that replaces it would be negotiated at future sessions of the governing body, the United Nations Framework Convention on Climate Change. The basic mentality behind such a wan or pallid “deal” amid knowledge that global warming is indeed proceeding is transparent in this passage from the New York Times: “Scientists say the rapid growth of emissions is warming the Earth, threatening the ecology and putting human welfare at long-term risk. But their increasingly urgent pleas that society find a way to limit emissions have met sharp political resistance in many countries, including the United States, because doing so would entail higher energy costs.” That “increasingly urgent pleas” are being essentially ignored may itself point to a “hard-wired” weakness in the species that can be characterized as “self-defeating.”
Behind the increased emissions alone, moreover, is the failure of the species to self-regulate its own size. On October 31, 2011, the global population (of human beings) was estimated to have hit 7 billion. It had passed the 6 billion mark in 1999. The 10 billion mark is expected by the end of the twenty-first century. At a basic, biological level, organisms must consume resources and expel waste products: the more people, the more consumed and expelled. It is ironic that humanity places so much reliance on its technological abilities to mitigate this basic fact even as the species seems incapable of simply acting on the basis of the extant knowledge on climate change to make emissions reduction “actionable.”

In An Essay on the Principle of Population, Malthus pointed to disease, famine and conflict (war) as nature’s trove of solutions to arrest a maximizing species from piercing a broader ecosystem, which is inherently at an equilibrium (i.e., homeostatic). Perhaps we could add a fourth solution—namely, a shift to a climatic equilibrium inconsistent with human habitation. Perhaps this is nature’s way of handling the arrogance of man, or perhaps it is our way of judging ourselves as a species. Perhaps unconsciously, the sordid species, which presumes itself to be “made in God’s image,” has a death wish—a humble sensibility underneath “just saying no” to the overweening superciliousness of the arrogance that seems almost hard-wired in the species. That is to say, the “result” of the global climate talks “attained” in December 2011 can perhaps be read as the expression of an unconscious collective will—a tacit verdict of a species on itself by procrastinating in the context of “urgent pleas.” In the context of a maximizing trajectory in terms of population, which seems to suggest dominance or victory on this planet, the species’ own verdict is certainty ironic. From the 2010 figures alone, my initial gut reaction was that the species had failed the “test” in a way that shows human nature to us as it is. Accordingly, I have no doubt that the verdict will be fully implemented in a few generations—our days being limited as a species.  

Sources:
John M. Broder, “U.N. Climate Talks End With Deal for New Emissions Treaty,” The New York Times, December 11, 2011. 

Justin Gillis, “Carbon Emissions Show Biggest Jump Ever Recorded,” The New York Times, December 4, 2011. 



Wednesday, June 28, 2017

E.S.G. in the Boardroom: A Recipe for Confusion

What would business do without its faddish buzzwords? Is the bottom-line really so boring? Transformational leadership was once in vague, with little actual attention to raising subordinates’ moral compasses. Decades later, everything was about drivers—a power-aggrandized version of cause. Then consultants, dreaming perhaps of their kids’ little league, turned the profession into an analogy and suddenly became coaches. One difference is of course that most actual coaches have been players in their respective sports, whereas how many leadership coaches have been business executives or sat on a board? “Leadership assistant” is better, if in-house, otherwise "leadership adviser," assuming sufficient study or experience in leadership. Then amidst global warming and activist stockholders, “E.S.G.” could suddenly be heard in boardrooms with the frequency of a trope.[1] Must business be led by a herd-mentality? Such leadership is internally inconsistent, for leaders are by definition ahead of the crowd, leading it rather than squawking like lemmings. In the case of E.S.G., which stands for “environmental, social, and governance,” the chatter eclipses recognition of the befuddled condition of the combo. With such different things in the mix, it is no wonder that a study attempting to quantify E.S.G. came up with mixed results. So the metric and purportedly related financial performance may not be very useful, after all.

E.S.G. “refers to the three main ways to measure a company’s commitments to ecological sustainability, to its community and to corporate governance.”[2] Large institutional investors, including BlackRock, the world’s largest asset manager, “have publicly declared . . . environmental, social and governance issues to be key metrics of their investment decisions.”[3] Although politically correct, this mantra has some rather severe drawbacks.

Firstly, what exactly is social? Good interpersonal relations inside a company?  Stable bilateral relations with key stakeholders (which sounds hardly social in nature)? Good relations with the towns and cities in which a company has a physical presence? Work on behalf of world peace? The term community is inherently such a vague notion, and it be applied to very different scales, from inside a factory to the world, that the social part of E.S.G. is problematic, especially when misplaced efforts to quantify “community” are involved. What may seem social could actually be economic, especially in stakeholder management. Also, having or being part of “community” is different than a corporate social responsibility program geared to alleviating a problem affecting employees, stakeholders, a city, or the world. This last point also applies to ecological sustainability—does this refer to a company’s own carbon footprint, or can a company get away with making financial contributions to Green Peace?

The second major problem is how different social and even ecological matters are from good corporate governance. A company’s board could improve accountability on management by severing the CEO from also chairing the board, but this does not mean that the same board has an ecological bent or wants to create a social responsibility program or give employees a sense of community (conditional, of course, given the power to fire). In short, E.S.G. combines apples with oranges. Not unexpectedly, they can relate differently with respect to financial results. Improving accountability structures and processes on management are more tightly connected to medium- and long-term financial performance than is working on a city’s problem, for instance. Improving stakeholder relations goes to the bottom line more than working for peace in the world. To be sure, the value of working on societal or global issues is real, and investors so motivated need not be thwarted by a loose relation to financial profits. The problem lies in combing E., S., and G. into a single measure and related it to financial performance.

A study by quantitative strategists at Bank of America—that bank that showed questionable smarts in buying Merrill Lynch—found mixed results in relating E.S.G. companies and profits. On the one hand, companies high in E.S.G. tend to have less volatile stocks, yet whether those companies outperform low E.S.G. companies, the answer depends on the industry. In health-care, technology, and consumer staples, the low companies actually outperformed the high ones from 2005 to 2015. In fact, the results generally were “very similar to the performance of large versus small companies.”[4] A mere look at the grab-bag of indicators demonstrates just how meaningless an overall E.S.G. number is. The study relied on a scoring system devised by Thomson Reuters, “which graded companies based on emissions and resource reductions, human rights, community engagement, work force diversity, training and development plans, board structure and compensation policy, and shareholder rights, among other things.”[5] Imagine quantifying human rights and board structure into one number!  It is as if the folks at Thomson Reuters were trying to come up with the general equation that so eluded Einstein relating the general theory of relativity to quantum mechanics! 

I submit that E.S.G. is an unstable molecule that would better serve business and society by being broken up into its component parts—its elements, each of which could be assessed, whether qualitatively or quantitatively. Some investors may want to invest in companies with a strong human rights record, while other investors may put a lot of emphasis on qualitative strength in corporate governance. Even within the social category, institutional investors could have very different things in mind—from workforce diversity to global warming. To be sure, investors could look for companies with diverse workplaces, no corporate social programs, and good corporate governance, or good relations with cities and good governance but no CSR programs to speak of—or all three. In short, the supposed positive correlations in E.S.G. do not hold in actuality even if it can be said that environment, social, and governance all have ideals. This is perhaps the underlying problem: the fallacy that says that just because x, y, and z have top values, the three variables are positively correlated. The other fallacy involved insists that everything in or affecting business can be readily or accurately quantified as if life itself were a spreadsheet. If investors really want companies to come out of their shells, it is vital to think beyond well-hooved business metrics and fads.





1. Andrew Sorkin, “Can Good Corporate Citizenship Be Measured,” The New York Times, June 26, 2017.
2. Ibid.
3. Ibid.
4. Ibid.
5. Ibid.

Saturday, August 22, 2015

Humans As the Intense Predator: Unbalancing the Food-Chain Unsustainably

By 2015, humans—the homo sapiens species in particular—had become “the dominant predator across many systems”; that is to say, the species had become an unsustainable "super predator."[1] We have had a huge impact on food webs and ecosystems around the globe.[2] Moreover, we have been using more of the planet's resources than we should. By August 2015, for example, humans had already consumed the year's worth of the world's resources.[3] In terms of fossil fuels, the consumption has had an impact on the warming of the Earth’s atmosphere and oceans. Behind human consumption are human beings, so the astonishing increase in human population is a major factor. As a virus-like species incredibly successful genetically over the previous five-hundred years, the self-maximizing feature both in terms of population ecology and profit-maximization may be the seed of the species destruction, and thus long-term genetic failure.

According to one study, humans are "particularly intense" when it comes to hunting, and have used powerful killing technology (trawl nets, guns and mechanized slaughterhouses, for example) to dominate other predators. [4] 

Large-scale fishing does not distinguish between fertile adults, weak fish, and the young. (James Watt: Getty Images)

With the efficiency (i.e., profitability) of large-scale fishing businesses, we remove fish at 14 times the rate of marine predators.[5] The research confirms what many scientists had warned for years: If we don't stop overfishing, we may soon run out of animals to catch. The study reports that many fish populations had already been hunted to the brink of collapse, shark populations decimated, and less than 8 percent of southern bluefin tuna left. [6] On land, humans had been killing top carnivores, such as bears, wolves and lions, at nine times their own self-predation rate.[7] By 2015, the food chain as a whole had become terribly unbalanced that thus unsustainable as a whole.

Applying business-efficiency principles to hunting, we can capture adult prey at minimal cost, and so gain maximum, short-term reward. The cost being minimized is both in terms of business and the species. Of the latter, Chris Darimont of the study points out that "advanced killing technology mostly excuses humans from the formerly dangerous act of predation." [8] Because hunters “’capture’ mammals with bullets, and fishes with hooks and nets. . . [Humans] assume minimal risk compared with non-human predators, especially terrestrial carnivores, which are often injured while living what amounts to a dangerous lifestyle."[9] To be sure, working on the deck of a commercial fishing boat in the north Pacific is one of the most hazardous jobs around, but the fishing businesses can externalize at least some of the cost (e.g., insurance).

Even so, by not applying principles from population ecology, the businesses engaged in hunting, fishing, and farming animals have been undermining efficiency, and thus profitability. The study claims that besides the sheer number of animals that humans kill for food being problematic—56 billion farmed animals were at the time being slaughtered annually, “(h)umans focus on adult prey, unlike other predators. A full-grown lion, for example, often opts for the smaller, weaker juvenile zebra rather than an adult. This distinction makes it harder for animal populations to recover as breeding members are removed.”[10] Presumably recovering populations are in line with sustainable profitability.

Tom Reimchen, a co-author on the study, “uses a financial analogy to explain the damaging consequences of hitting adult populations hardest. He calls the adults the system's ‘reproductive capital’—the equivalent of the capital held in a bank account or a pension fund. And he says we are eating into this capital when we should really be living off the interest—the juveniles, which many species will produce in colossal numbers, expecting a good fraction to be doomed from the moment they are born via predation, starvation, disease, accidents and more.”[11] “We are dialing back the reproductive capacity of populations," Darimont said. [12]

The doubtlessly unintentional self-defeating strategies of the businesses mirrors that of the species itself, in that the failure to be prudent in terms of population growth is also self-defeating because the ecosystems, including the Earth’s atmosphere and oceans, get breached beyond repair in terms of being able to sustain our species when it is essentially a maximizing variable rather than tending toward an equilibrium. In short, the wise human species—homo sapiens—is not so wise, after all.




1 Chris Darimont et al, “The Unique Ecology of Human Predators,” Science, Vol. 349, no. 6250, pp. 858-860.
2 Ibid.
3 Jonathan Amos, “Humans Are ‘Unique Super-Predator’,” BBC News, August 20, 2005.
4 Nick Visser, “Thanks Humanity. Now We’re Unsustainable ‘Super Preditors,” The Huffington Post, August 21, 2015.
5 Amos, “Unique Super-Preditor.”
6 Visser, “Thanks Humanity.”
7 Amos, “Unique Super-Preditor.”
8 Ibid.
9 Ibid.
10 Visser, “Thanks Humanity.”
11 Amos, “Unique Super-Preditor.”
12 Visser, “Thanks Humanity.”

Tuesday, August 4, 2015

The Natural Wealth Model of the Modern Corporation: A Basis for Sustainable Organization

Going to the Humanities to construct a sustainable organization based on ecological theory, this essay presents a theory of the firm that is at odds with the profit-maximization premise. I draw on the notion of the natural wealth of the Golden Age as depicted by such ancient Western poets as Ovid and Hesiod—who assumed such wealth to be devoid of greed—as a basis for sustainable organization from ecological theory to produce an alternative theory of the firm.