Peter McManners Inform Opinion


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ast year’s World Forum on Enterprise and the Environment addressed the


question, ‘Is there a model for low carbon growth?’ This set the scene and started a dialogue. This year the Forum took on the more spe- cific sub theme of ‘Low Carbon Mobility: Air, Sea and Land’. A big chunk of carbon is used for mobil- ity, so making progress in this area is vital to de-carbonizing society. The World Forum, organised annually in Oxford by the Smith School of Enterprise and the Environment, could grow to have the same significance within the green business community as the World Forum in Davos has amongst world leaders and econo- mists. The discussions over the three days showed the strength of delegate concerns that we must lead change. We discussed a range of issues and a variety of responses. Many delegates shared my approach that we must be bold and move fast. This was illustrated well by the launch at the forum of the T25, a new car from Surrey-based Gordon Murray Design. Gordon Murray, of Formula One fame, has brought the technology of race cars to the production of a small, fuel- efficient car. It is also designed to be affordable.


The body of the T25 is made using the composite techniques of the Formula One world, but with- out the carbon fibre to keep costs down. The driving position is in the centre and the controls are in the steering wheel. Two passengers sit back from the driver either side with their legs extending forward beside the driver. In the conserva- tive world of car design, this a rad- ical move. The T25 will be fol- lowed by the T27, an all-electric version. This shows what bold thinking can create. It is not hard to see how we can make land mobility much greener than it is now with the T25 as one example.


Formula One strategy: a radical move in the race to greener land mobility


selves out of the customer frame. The business-as-usual analysis, in which the views expressed by the flying customer are paramount, closes off the dialogue with this small group and shuts down the chance of thinking through real substantive change.


Race technology and fuel efficiency: the T25 When looking at future mobili-


ty, the difficult challenge is avia- tion. This issue fascinates me, so it was the Air Working Group where I spent much of my time at the World Forum. There was a mix of bold ideas tempered by real- world business and political con- straints. Underlying the discussion was the core challenge that the gen- eral population like to fly and like it to be cheap. If this assumption is used to drive thinking then we will remain in deadlock. The business case for greener aviation does not add up if we plan on a business-as- usual scenario of the future. Aviation is set for a dramatic shakeout at some point in the years


10 | Sustainable Business | August/September 2010


ahead. Taking the long view, the logic is inescapable; flying will cost more. This is hard to understand from the viewpoint of today, with cut-throat competition, wafer thin margins and many airlines on financial life support.


Airlines that have brought in voluntary carbon-offset pro- grammes have seen a take-up rate of less than 1%. The evident deduction is that people will not willingly pay more to reduce the environmental impact of flying. Why should someone choose to pay more when the person sitting beside them has not? There is also a small minority of people who choose not to fly and take them-


How then should industry respond? GM listened to its cus- tomers and stuck with making thirsty SUVs. In hindsight this was suicide. But hindsight does not help much; we need foresight. Looking through the eyes of our current customer, using today’s product, works for minor tactical change in marketing or tweaking the product features. It does not work for strategic planning. Business needs game-changing sustainable strategies waiting in the wings. It is the right thing to do, but the stronger motive is sound commercial logic. There is a revo- lution coming. Business that wants to survive in the 21st century needs to be part of it. Business that wants to thrive should lead it.


Peter McManners is a visiting executive fellow of Henley Business School of Reading University. His book, Adapt and Thrive: The Sustainable Revolution is published by Susta petermcmanners.com


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