Photo: 123rf.com
Include climate change topics in business, economics courses
Recently, I attended a carbon footprint training session where the activities included calculating our annual carbon footprints.
This entailed determining the total amount of greenhouse gases (GHG) emitted through our actions.
My score was 16.1 tonnes, which is 174% more than the United Kingdom average for an individual this year.
I learnt that countries have varying carbon dioxide emissions per capita – for example, China emits 8.2 metric tonnes, India 1.74, Malaysia 7.98 and the United States 14.43.
The training was a personal wake-up call for me. Am I doing enough at an individual level to play a role in addressing climate concerns? Can individuals make an impact and why should we? On a broader scale, what role can institutions of higher education play in addressing climate concerns?
Our carbon footprints are a measure of how much we add to the total GHG emissions, such as carbon dioxide and methane, through our daily activities.
GHG absorb and emit thermal radiation, or heat, causing what is known as the “greenhouse effect”. The higher the greenhouse effect, the more heat is captured close to the earth’s surface, causing her to warm up.
GHG emissions are caused by different human activities, such as the burning of fossil fuels to produce energy, power engines and generate electricity, and the expansion of farming and industrial activities. Air travel, for example, adds significantly to the footprint count.
Scientists at Nasa’s Goddard Institute for Space Studies (GISS) report that, on average, the global temperature on the earth has risen by at least 1.1 degrees Celcius over the last 143 years.
CNN, in a recent report, stated that 1.5 degrees Celcius of global warming could lead to catastrophic consequences such as extreme flooding, drought and wildfires – which, in turn, could impact food production and alter the wildlife food chain.
It is imperative that in addition to focusing on carbon emissions, we collectively discuss and plan for climate adaptation initiatives.
Climate adaptation stresses how social and economic systems adjust to, and are better prepared for, expected climate change consequences.
Addressing climate concerns require cohesive efforts, from global political will, industrial agreements, and national level policy intervention, to social lifestyle changes.
Naturally, this will require a multilevel stakeholder engagement approach with a role for education institutions to play.
Rethinking economics
In 1954, German economist August Losch published his theory of profit maximisation, which states that profit maximisation is the single most important objective of entrepreneurial intervention at the state, firm and individual levels. Profit is thus maximised when marginal revenue is equal to or higher than the marginal cost of production. The higher the gap between total revenue and total cost, the better the profits.
Although issues such as externalities are mentioned in the economics curriculum, profit maximisation tends to focus more on demand and supply, which in turn relates to production and consumerism.
Business curricula, on the other hand, typically look at issues such as strategy, marketing, people management and the financial aspects of running businesses, placing an emphasis on profitability.
A recent nationwide study published by the University College of London’s Centre for Climate Change and Sustainability in the UK states that incorporating climate change and sustainability across the curriculum, from primary levels, will help the younger generation to take more proactive actions in adapting to climate change in addition to being more aware of it. Higher education institutions, meanwhile, can expose students to these issues on several fronts. Comprehensive climate change and adaptation content can be embedded into existing economics and business curricula.
The Economics Network, in a 2023 publication for instance, recommends that in addition to the traditional curriculum, students could be taught a “contending perspective” module – introducing them to issues such as alternative views of economics, laws of thermodynamics, sustainable ecosystems, climate change and climate adaptation, focusing on carbon capture and storage, climate risk mitigation, food security and other related topics.
These researchers go on to say that courses such as Sustainable Economics – where topics such as circular economy, valuation of natural resources, determining total cost of ownership to tech investments in an economy, and emphasis on the triple bottom line, are addressed – can further raise awareness of climate issues.
A new business perspective
Despite significant evidence on the consequences of climate change, business schools have not responded well in addressing this issue, a 2022 Harvard Business Review article found.
This, the article read, is due to political concerns, a need for an interdisciplinary outlook, and management academics who simply feel that they lack the qualification to address climate issues. The authors went on to suggest that business students be taught to:
> Incorporate emissions and climate adaptation issues into asset pricing strategies to look at underperformance measures.
> Look at how supply chain and funding systems are managed and impacted by climate concerns in determining performance and managing business value chains.
> Consider how consumerism can be shifted towards a low-carbon lifestyle and purchase decisions in marketing and consumer behaviour curricula.
> Focus on how people are trained to lead companies and improve resiliency during climate crises such as responding to floods and other forms of natural disasters due to climate change.
Indeed, there is ample room for modification within the business curriculum, in preparing future talent to manage and adapt to climate change concerns.
Research funding
Research plays an integral part in higher education. Yearly, billions are spent by governments and private sector organisations in funding research.
Moving forward, it would be advisable for funding agencies to ensure that research money is spent on issues that matter to our long-term sustainability as citizens of this planet.
Research output must map to any one or more of the United Nations Sustainable Development Goals (SDGs).
In the case of Malaysia, research that focuses on enhancing our food security, and addressing climate risk mitigation and adaptation, should be prioritised.
Carbon warriors
Education and knowledge alone are not enough. Collective efforts to address climate change and adaptation must start at the individual level.
How we enhance our own awareness and take proactive steps in changing our lifestyle and daily activities will have an impact in the long run. The man in the mirror must change his ways, and when he does, others are likely to follow. Collectivism often begins with an individual’s transformation.
Prof Dr Murali Raman is the deputy vice-chancellor (Academic Development & Strategy) overseeing postgraduate and continuous education at Asia Pacific University of Technology & Innovation (APU). Focused on executive training and consultancy, his niche training areas include design thinking, coloured brain communication and emotional drivers, digital economy, crafting digital strategies, and mindset change. The views expressed here are the writer’s own.
