In description
This special edition of Knowledge@HEC focuses on the Earth’s planetary boundaries, highlighting the HEC Paris' efforts to address organizational, environmental, and societal challenges. Scheduled for launch in May 2024 at the HEC Climate Day, this 27-page issue showcases research and initiatives aimed at informing and empowering businesses, policymakers, and future leaders. Through a multidisciplinary approach integrating research, teaching, and action, HEC Paris strives to help foster innovation, responsibility, and collaboration toward a more sustainable future.
For a long time, addressing sustainability problems has been regarded as a technological challenge. Today, supporting the transition to a more sustainable world has transcended this technological status and emerged as a quintessential management, economic, and behavioral challenge. Within this realm, research in social sciences and management assumes a pivotal role, offering insights across various crucial dimensions of the transition.
HEC Paris undergoes a transformative shift in its curriculum. Building on its legacy of sustainability initiatives, the institution now prioritizes planetary boundaries and societal impact. The updated curriculum emphasizes sustainability integration and student empowerment for real-world impact. This reflects HEC's dedication to nurturing leaders prepared to address modern challenges.
When it comes to the renewable energy transition, all actors in the supply chain have different stakes, incentives and barriers. HEC Paris Professor Sam Aflaki aims to help organizations contribute to this renewable energy transition in the fields of supply chain management, sustainability and energy efficiency. In this interview, he discusses his ongoing research, exploring the dynamics of stakeholders' incentives, technological advancements, and the challenges shaping sustainable practices in today's world.
By Sam Aflaki
If companies anticipate that the government might impose caps on carbon emissions, they will likely invest in green technologies. This, in turn, drives down the cost of achieving reductions for all. That’s according to HEC Paris finance professors Augustin Landier and Bruno Biais. In “Emission Caps and Investment in Green Technologies,” the co-authors also show that if these firms don’t think carbon restrictions are coming, they won’t invest, and the government eventually will find it too costly to the economy to impose caps. In other words, companies’ expectations about future government action play a crucial role in reducing the carbon emissions driving rapid climate change. So, ask the researchers, how can a balance be found? 4 key findings: Anticipating future regulations spurs green technology investments, lowering emission reduction costs; Early investments in green technologies create a self-fulfilling prophecy, facilitating feasible emissions caps; Private and public actions synergize for desired outcomes through a complementary equilibrium; One large investor can have a significant influence.
By Bruno Biais , Augustin Landier
Millions of consumers, employees and investors are seeking to align their purchases, jobs and investments with their values. They want transparency and clear understanding of the brands they consume, work for, and invest in to be able to verify how they are contributing to sustainable development. Amid such a growing, unparalleled scrutiny, companies are increasingly held responsible for their business behavior, notably their environmental and social footprints. Yet there is one impact that is rarely discussed, as it remains hidden to the public eye. This is the ‘political footprint’ companies leave behind through the exercise of corporate political activities, be it lobbying or political contributions, and which often contradicts companies’ public statements.
By Alberto Alemanno
We interviewed the founders of two startups in HEC’s incubator at Station F that have come up with green innovations making a deep impact in their respective sectors. Genomines utilizes plants to selectively extract targeted metals, crucial for battery production, aiming to minimize environmental impact. Pixstart offers tailored satellite imagery analysis to monitor changes in water, forests, agricultural fields, and construction sites, optimizing environmental resource management and informing decisions.
Despite environmental, social, and governance (ESG) funds gaining popularity, their impact on reducing negative externalities, such as greenhouse gas emissions, may be limited if not approached strategically. In our study, entitled “ESG Investing: How to Optimize Impact,” forthcoming in the Review of Financial Studies, we show that investment capital could actually influence the behavior of more highly polluting companies to drive positive change for the planet.
By Stefano Lovo , Augustin Landier
The past six years have seen an exponential leap in student engagement going well beyond the classroom. Arguably, this came to public attention in 2018 when HEC Paris students joined representatives from France's most prestigious schools and universities in calling for radical change, called the "Manifeste étudiant pour un réveil écologique" (Student Manifesto for an Ecological Awakening). So far, it has been signed by over 34,000 students. Then there was Anne-Fleur Goll's June 2022 graduation speech that concluded with a plea to tackle climate change from within the system. This drew a standing ovation and created quite a media stir. Valentine Japiot (H.23) and Max Pernaton (H.25), two members of HEC Transition, the alumni club dedicated to the ecological transition, rang similar alarm bells, calling for a radical transformation of the system at HEC's Climate Day 2023. Quentin Oulie (H.25), currently interning at “Fermes d'avenir”, which coordinates sustainable farms, co-organized a three-week course on agro-ecology at HEC for students to think about the challenges facing the agricultural world. The list could go on and on. Those engaged are making their demands heard, and they are ready to take on responsibilities to make things happen. We met four students from different HEC programs, engaged or not in the transition.