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Sustainable Management Metropolia, Business Ethics IP week. 2 State of the Earth. 5 global stress factors. Energy stress (oil scarcity) Economic stress (income inequity) Population stress (growth rate) Ecological stress (damage to land, water, etc) Climate stress (changes earth atmosphere)
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Sustainable Management Metropolia, Business Ethics IP week. 2 State of the Earth
5 global stress factors Energy stress (oil scarcity) Economic stress (income inequity) Population stress (growth rate) Ecological stress (damage to land, water, etc) Climate stress (changes earth atmosphere) Can society collapse? (like in the past)
Oil price development • Brent Oil price development 2003-2013 • Agricultural Raw Materials Index 2003-2013
Oil price influences other prices • Brent Oil price development 2003-2013 • Wheat Monthly Price 2003-2013
Oil • Peak oil? • the point in time when the maximum rate of global petroleum extraction is reached, after which the rate of production enters terminal decline. • Time of cheap oil is over. The EROI (Energy Return on (Energy) Investment) goes down
Economic Stress • Inequity in states; Gini Coefficient
Income inequity • ‘the rich are getting richer, the poor are getting poorer’ • Between 1990 and 2005, approximately two thirds of the countries experienced an increase in income inequality. The incomes of richer households have increased relative to those of the middle class and poorer households. (International Labor Organization: World of Work Report 2008: Income inequalities in the age of financial globalization) • Gapminderof Hans Rosling
Pre-peak Harvest peak Post-peak Overfishing Year of Peak Fish Harvest Source: Millennium Ecosystem Assessment and Sea Around Us project
Pre-peak Harvest peak Post-peak Year of Peak Fish Harvest Source: Millennium Ecosystem Assessment and Sea Around Us project
Overexploitation; Overfishing • the disappearance of species due to overfishing, pollution, habitat loss, and climatechange. • Now: 29% of ediblefish and seafood species have declinedby 90% • In 2048oceansempty of fish
Plastic Soup? Captain Charles Moore Ted Talk
Tipping Point • Ocean Acidification • Increased absorption of CO2 in Ocean leads to change in acidity of water • Now pH 8.2 • In 2100 pH could fall with 0.5 (0.1 unit change is 30% difference)
Tipping Point • Ocean Acidification • Causing death of marine life, like Coral Reefs, coccolithophore, etc. • Stopping of Sink function of CO2 of ocean
Assignment 2 • Calculate your ecological footprint: www.myfootprint.org • Bring tomorrow your footprint in planets and hectares. Which factors are being measured? • What is the country average for Finland, compare it with other countries: • The Netherlands • USA • China • Kenya
Assignment 3 • Bring two newspaper/magazine articles to class: • one about a company being involved in a people, planet, profit issue in a positive way (best practice). How does this company align PPP? • One about a company involved in an issue in a negative way. How did this company respond to the issue?