Revealing tales from behind the green curtain

Posted Tuesday, 6 December from #COP17

Behind-the-scenes COP17 commentary by Brazilian-born, German-reared politician and business executive Caio Koch-Weser (currently Vice Chairman of Deutsche Bank) revealed some surprising insights.

As you’ll see from the link above, Mr Koch-Weser does not like to brag about his salary or the value of his estate. But looking at his CV, one could perhaps hazard a guess…

• Chair of the Global Climate Partnership Fund (a US$200 million Public Private Partnership, run by the German Ministry with equity capital to assume part economic risk, and co-funded by Denmark and the International Monetary Fund – to help dev-nations Brazil, Chile, China, India, Indonesia, Mexico, Morocco, South Africa, the Philippines, Tunisia, Turkey, Ukraine and Vietnam reduce energy consumption and greenhouse emissions by at least 20%).
• Executive Committee Chairman of the European Climate Foundation.
• Former member of UN Secretary General Ban Ki-Moon’s High Level Advisory Group on Climate Finance.
• Former Vice-Minister in the German Federal Ministry of Finance.
• Prior to that, World Bank top dog…

I’m deviating. So let’s get back to what was discussed. The International Emissions Trading Association / IETA’s CEO and President, Henry Derwent (himself a former British Parliamentarian) pulsed Mr Koch-Weser about the potential fate of COP17 negotiations, and about the role of business in making the $100 billion Green Climate Fund a success.

His thoughts are, we were led to believe, in line with proposals from a new briefing “Durban Must Clear the Path for Low-Carbon Investment” by Deutsche Bank – the world’s most highly leveraged financial institution, which made a $3.3 billion profit last year, but was involved in a huge civil law suit this year for losing its customers money on a futures interest rate hedging scheme.

While Deutsche Bank certainly stands out for the level of commitment and amount of work it’s done to make climate finance work for the Bank’s stakeholders, “we have a very long way to go,” says Mr Koch-Weser. “Having COP as a client of the Bank’s has helped us understand the level of resource productivity we need, given the climate challenge.”

While Deutsche Bank will be carbon neutral by next year, it is not only reputation that’s at stake, he says, “but moreover, to have a business the day after tomorrow.“

“Germany has leading experience in policy for some of the largest scale projects in the world, and although South Africa is lagging behind, the country has shown great leadership in saving the COP process, which could easily have failed after Cancun, and I commend President Jacob Zuma for that. “His framework for a successful climate change regime is based on the TLC concept of transparency, longevity and certainty. “Governments and business must get over their suspicion of each other, and together get fit for implementing the Green Climate Fund,” he goes on to say.

The GCF will reflect at country level through NAMA (Nationally Appropriate Mitigation Actions that are by-country greenhouse gas emission reduction targets). “The role of business would be to contribute directly to the GCF or NAMA targets with the World Bank’s support, to ensure the world does not endure another failing of the CDM [clean development mechanism] scenario, and banks need to put in the correct instruments and guarantees,” says Koch-Weser. “It is the International Finance Corporation’s role to assess risk and the scenarios for mezzanine, private and international financing. For developing nations, where taxpayers cannot afford to foot the bill, an interim financing net is needed.”

Mr Koch-Weser, who has engaged with 16 of the world’s top Finance Ministers at COP, and the likes of vocal climate change activist Nick Stern (noted for producing films such as Bugsy Malone and The Mission), says there has been respectables outcome so far at COP17, especially now because the financial leaders of the worlds are fully engaged in the process.

“Instead of UN multilateral trade grants, we are bringing the private sector in,” says Koch-Weser. “The UN Chairman and Norwegians did not do enough. SA Minister in the Presidency Trevor Manuel (who co-chairs the Green Climate Fund) has picked up many ideas. There is a richness of proposals, but a lot of process disagreement in terms of the private sector and World Bank’s role at COP17, which has made a lot of good ideas fall through.”

Mr Koch-Weser continues: “Due to the laborious UN democratic process and bottom-up coalitions, we as business globally are not waiting for governments to agree on climate change actions. We must push ahead with action. Also, the agreement on the Fund as we envisioned it, was not fully taken on board – very disappointing.”

He says a comparable concord between World Bank and G20 countries is in doubt as there is an impossible range of issues (not just climate) being tabled at G20 discussions (including agriculture and food security) but the financial crisis sweeping through Europe and the US may hamper any progress.

Mr Koch-Weser described the “power that be” thus:

Maximum legitimacy: governments and the UN with its democratic processes
versus
Maximum efficiency: financial institutions or the G20 – slated to become the G8.

“The G20 lifted to HEPS level becomes more PR than effect,” he exclaimed. “The coalition was composed to serve markets, but is now right to tackle the climate issue with force.”

How to eliminate suspicion of the private sector for funding?

Mr Koch-Weser is of the opinion that the Global Climate Fund can easily become overly bureaucratic, rendering it ineffective. He says Minister Manuel, who was on the discussion group, is not overly optimistic of the GCF’s success – hence the case for other finance instruments.

As many have said during COP17, he reiterated that a lot of good single case studies of climate mitigation and adaptation success stories were brought forward, but nothing close to scaling up solutions for a global solution, mainly because countries and legislation differ so.

“Banks want project developers to deal with this challenge,” says Koch-Weser. “A lot of other discussions on climate funding are in the $7-12bn range, so GCF’s $1bn is very conservative. Unfortunately it looks as if the Chinese are walking away due to the complication of issues among countries.”

How can we create prices and incentives to boost change?

“An agreement on carbon price and tax are central, which will then shuttle down to NAMAs (nationally appropriate mitigation actions) and feed-in tariffs at country level. People spending their time promising short-term (3-4 year) stability are wasting their time,” says Koch-Weser.

“Energy efficiency in our dirty processes seems like a low-hanging fruit – it is a negative cost if you fix your processes but that is an agent issue. Demand must be driven by policy and incentives.”

Why so suspicious of markets?

“More countries now have that internal debate. Consumer product and business is now pretty clearly broadly defined – and that is where the change should be driven. Business should be going to its regulator and demanding policy to satisfy its needs,” he says.

“Climate-smart solutions for super grids can be driven by business, with a full plan and budget self-sufficiently ready. In consumer goods, energy, transport – the same rules apply. Don’t go to report to the UN, but to launch your own solutions!”

“Haven’t you noticed that the side-show at COP is private sector and civil society? Because at COP nothing is happening. I know there are many political obstacles but where is most energy and innovation?”- Koch-Weser

“The bottom-up emphasis in science and research shows it works better, especially in the developing world. Business leaders are saying forget global frameworks: a carbon footprint of 450 CO2 ppm or 2 degrees lower will not be reached in this way,” he continues.

“Frankly, it is a much bigger discussion – migration to water and food security and governments are not on top of these issues. Procedural democracy (voting instead of debate) is done by government officials who mostly have never seen real life. I would start with the cement industry, consumer goods which are closer to consumer behavioural change, and drive business backing from there on.”

Rio+20 is like an answer looking for a question

“We as business could use the upcoming Rio+20 conference as a new message transfer for bottom-up approach to business coalitions, provincial and cross-country coalitions,” he says. “There is still very little framework on responding on climate issues in a unified way in the UN.”

Suggestion to Chinese private sector on how to make demands heard to huge government who run everything?

China has developed an excellent bottom-up solution to climate change: a social plan, involving local governments, seven Cap and Trade regimes and energy efficiency standards.

“China has a great government structure and vast experience,” says Koch-Weser. “The next generation of China will have a very different mind-set and the party has the wisdom to bring in the new highly trained modern thinkers and allow more participation by community members.”

Where will COP17 get by Friday?

“The outlook is more optimistic than I expected – it certainly was better than Cancun where the UNFCCC democratic process nearly failed completely,” he concludes.

These are Koch-Weser’s salient take-outs from COP17:

• For the EU to go ahead with the Kyoto Convention, amid so many countries leaving, is quite remarkable.
• I think China will achieve their own targets and is considering its own commitment targets for 2020.
• Brazil is in a renewable-friendly space with hydro, ethanol, solar, but negligent on forestry.
• India is the big puzzle: emitting only 3-4 tonnes per person per year, why should they have binding commitments? It doesn’t make sense for India to do it the wrong way, though.
• South Africa: Zuma and his Ministers play a critical role in pushing BASIC countries in the right direction, and for that I commend them!

By my conclusion and for even measure, here’s what I was just mailed – was apparently on Occupy Wall St.’s Facebook page yesterday:

SIDE-BAR:

The daily diary of #COP17 behavioural observations from FHSA Sustainability’s Lani Botha can be a accessed via http://greenberetclub.blogspot.com or via her Twitter handle @LaniBusyB, where past photos and links are available.

Vuvuzela Newsletter Edition 2

Vuvuzela Newsletter Edition 3

Vuvuzela Newsletter Edition 4

Below is a snap of the type of information being carried at the Forum compiled by Jodi Kassel, Fleishman-Hillard consultant…

Having now attended WEF for three years running one can’t help but start questioning just how much ACTION emanates from the meeting. There are so many good ideas, so many great statements made and promises we would love to see kept.

As Africans we need to get better at ACTION, at remembering and then honouring our commitments, if 10% of the promises made during the three days of WEF are ACTIONED with the passion they were made we would all see a tangible difference on our great continent.

On Day one, one of the main speakers coined the phrase ‘Impatient idealism’. Stating that we need to move past a talk shop, we are now as a ‘people’ of one continent starting to show impatience against corruption, impatience against crime, impatience against poverty etc. The spokesperson went on to say that all 53 African states need to unilaterally buy-into Vision 2025 so the billion people of Africa can take their rightful place on this planet.

My feeling is that there is a new reality, you can see it and feel it. But we need, as Africans, to stop apologizing for everything, stop looking for individual glory and rather collective glory and stop depicting every African as someone who lives in a village. Rather tell great stories to anyone who will listen of the mega-cities on our continent.

In the last two or three years I have visited over 10 African countries and I believe there is an energy and passion that is African and there is so much that we have to be proud of.

I look forward to the discussion, the review and hopefully new promises that will be made at the World Economic Forum to be hosted in Ethiopia next year.

Ke Nako

It is axiomatic that the world has changed and employers need to change with it if they want to provide an attractive work environment for skilled youth who have the drive and dedication to succeed. We live in an impatient or “quick fix” society and this is never truer than when it concerns the youth who are often impatient and ‘fickle,’ expecting quick results whether it is getting a message on Twitter or Mxit or ordering a product online.

In my opinion this impatience rather than being combated or restricted by companies needs to be embraced and channeled.

Employment Triggers

The prized criterion that a prospective employee holds vital for fulfilling employment has radically changed over the years morphing into employment ‘triggers’ that are critical to the youth of today.

For example these include the importance to young people of the quality of the technology around them and access to social media. This generation thrives online and companies needs to allow them access to online media which in turn and if harnessed correctly can lead to systemic and communication improvements within the company they work for.

The advent of cloud computing means technology exists that is conducive and in many cases drives this mental shift existing in the ‘age of impatience.’ Companies need to take the long term view and rather than censoring or restricting internet access they need to encourage people to be online.

Digital media is becoming more relevant each day and cannot be underestimated, witness how Facebook was used to organise the resistance and protest action that eventually overthrew the corrupt old regime in Egypt. Social media cannot be ignored and exists as a powerful force in modern society. At FH for example our Digital media department far from being an ‘add-on’ is now a vital and central part of any of our client’s communication strategy.

Young people of today are notoriously fickle in their buying behavior for example and ‘flit’ between different brands. This extends to employment where they can often have between more than 5 -10 jobs in their lifetimes. Consequently there is a greater onus on companies to become ‘workplaces of choice’ and create rewarding career paths.

Trends are undoubtedly changing, especially in the marketing sector for example where we have a generation of people who don’t adhere to or even care for traditional media. They prefer to extract their information from an often more immediate and responsive social media, this of course includes blogging and ‘citizen journalism.’

Another big skill retention factor for the youth are flexible working hours which often become key in creating an overall better quality of life by avoiding the morning ‘mass commute’ for example. Of course this trend also need to be judiciously applied and also earned as young people especially require a structured environment in order to achieve excellence.

Technology as a Differentiator

Many misconceptions exist around the mental posture and attitude of young people today for many companies. In my experience most of the young people we employ at Fleishman Hillard for example have been to university, still live with their parents and are hard workers if given the right mentoring and guidance. They usually have a far more mature and informed ‘worldview’ than they are given credit for.

Coming off the back of a global recession and with companies’ often cutting staff complements, young people have to fight for positions as never before. Technology is one of the tools they are using to ‘stand out’ from the pack and differentiate themselves when applying for positions.

As candidates find themselves fighting harder to acquire their first jobs they often send innovative video clips or visual curriculum vitae to illustrate their personalities and skill sets. I recently interviewed someone who gave me an informative and entertaining PowerPoint presentation with themselves as the subject, highlighting their talents and potential ‘value adds’ to our company.

Of course with the gap between our personal and professional personas blurring it is vital that youth realise the impact of the online image they are portraying of themselves. Prospective employers, myself included, often peruse their digital biographies online before interviewing them. This increasing transparency is indeed laudable yet at the same time discretion needs to be exercised by the youth when online, especially when dealing with or referring to confidential company information on the Web for example.

Local companies need to give back if they want to reap the long term benefits of a talented and motivated workforce to take them into the future. This could be achieved by sharing their knowledge through mentoring, training programmes and workshops.

Companies need to market themselves to the youth to create an environment that retains and nurtures talent. Of course certain qualities never go out of fashion and we are attracted to candidates who are articulate, tech literate and have a strong eye for detail.

At the end of the day our mission is to educate our youth to ‘earn’ the respect that they think they are ‘entitled to’ starting from the very first day of their employment and transforming their Age of Impatience into an Age of Heightened Productivity.

I recently attended a meeting of the global PR heads of Fleishman-Hillard which combined groups of thought from around the world regarding the future market trends and direction of global PR and I would like to share these insights with you.

Trends in the USA

There can be little argument that these are indeed tough times to be conducting business within the US.
Most of the leading PR agencies in the world are American and with a current and projected recession of upwards of ten years, it is imperative that these companies diversify and seek revenues outside the country if they want to thrive in and indeed survive the US recessionary business environment.

Any global PR firm that isn’t looking to diversify geographically and economically- if not already moving into- rapidly growing emerging markets will definitely have a bleak financial outlook moving into the future.

Global Footprint Vital

A global footprint then is vital for PR companies within developed countries, especially the US, as the emerging economies are showing an overall faster growth rate. This especially applies to the BRIC countries as they have become to be known, namely Brazil, Russia, India and of course China.

China especially is accelerating at a rapid rate and is now the biggest market in the world. Recent statistics reveal the country’s economy needs to grow by eight percent annually just to keep up with ongoing urbanisation within the country itself as China’s massive rural population increasingly migrate into the cities.

In rapidly expanding India the buying power of its emergent middle class is increasing by the incredible rate of 50 million people per annum. Looking to Brazil I predict she will be the next global darling, after South Africa of course, in light of the fact the country will be hosting the next FIFA World Cup in 2014 and the Summer Olympics in 2016.

Global PR firms need to service these emerging markets in order to grow, especially by recruiting and training local talent and of course learning from the people on the ground. Local staff have useful insights to offer into the custom communication and cultural etiquette requirements of each emerging market, which works well in tandem with the international best business practice approach of a global PR agency.

This approach is vital not only for agencies looking to operate in the BRIC countries but also for the vigorous markets of Asia, the rest of South America and of course our home ground here in Africa.

The African Boom

Africa has become a producer continent of note and PR agency’s ability to service these countries and develop talent is becoming increasingly important. The old ‘one size fits all’ approach of the past certainly does not work in Africa and the continent’s emerging markets in fifty three different countries.

The digital age has ushered in new ways of working and is helping to mobilize the continent’s vast workforce while spurring growth in African economies across the region.

China is adding to this development and feeding its own growing economy by building infrastructure in Africa in exchange for raw materials, especially in East Africa and Angola.

South Africa of course is a standout within the continent here as we recently hosted a very successful World Cup and in doing so forever changed the global perceptions of Africa for the better. The success of the World Cup sent out a strong message that Africa is a continent that can ‘get things done’.

Locally agencies need to be ready to help their clients move into the continent with clear understanding of the continent’s media and appropriate messaging. FH has spent five years deeply investing time and effort to ensure we are able to help our clients move north into Africa.

Religion-Based Purchasing Power

Also key for global PR agencies is the need to communicate to consumers of different and growing religious faiths, especially regarding the spread of Islam across the world.

For example the Halaal food market is now a massive 2.3 trillion dollar industry. In addition if consultants in the financial services arena do not understand the rules of Shariah financial law they will be five steps behind in growing into and servicing rapidly expanding Islamic markets.

Digital Integration

Digital integration has become increasingly relevant for emerging markets, especially because many of these markets including Africa for example, have skipped right over old, outdated technologies like copper wire fixed line and installed wireless communication or optical fiber from the outset.

The Seacom cable locally is making a difference to our bandwidth and speed and we expect the cost of connectivity to start reducing soon as well.

To give you an indication of how markets are changing though I recall when I was in Nigeria, in mid 2009, experiencing the fastest internet connectivity I have been exposed to because YouTube videos buffered faster than they played.

The word digital integration has actually itself become outdated now as we are seeing new media and old merging at a rapid rate.

Any communications company that does not have an internet strategy to complement traditional media like print, radio and TV will also be left out in the cold because clients are now expecting an integrated, holistic communication strategy that embraces all these platforms in one.

Sustainable Development and Green Awareness

The rapid rise in global awareness of the negative effects of global warming, the need to reduce carbon footprints and generally just reduce pollution of our planet and find alternative energy solutions is undergoing a massive spread across the planet.

More and more clients are expecting green messages and awareness to permeate all of their communication content across all media platforms. Much like BEE credentials, companies locally will soon need to show their ‘green credentials’ to markets like eco strategies to reduce carbon footprints, recycling and carbon offset credits in order to operate optimally in ‘eco-aware’ markets.

Censorship of the Internet

We are seeing an increase of censorship of the internet in different countries around the world. Especially in the areas of online gaming and porn where websites are monitored and if engaged in illegal activity closed down by governments.

Closer to home in SA we are seeing a resurgence of media censorship with the possible introduction of the Protection of Information Act which though strongly opposed by media could also possibly have a powerful impact on communications and journalism in the country.

Conclusion

We are seeing a profusion of new global trends developing in the global PR business which also means we are seeing a growth of many new opportunities as we experience a definite shift away from the traditional ‘big’ markets to rapidly expanding emerging markets.

Companies that wish to do well in the current economic environment need to develop both a wider and deeper spread of global clients and staff talent across diverse geographical regions and markets and develop relevant new content opportunities and messaging in order to prosper.

The Chinese ideogram or symbol for “crisis” also has another meaning entirely, namely “opportunity” because with the correct strategy in place the one often leads into the other.

Saunders has served in leadership positions within Fleishman-Hillard for more than 20 years. In the U.K. and Africa, he replaces Kevin Bell, who stepped down from the firm in January.

“John Saunders is a key member of our global leadership team, and he is one of our most experienced and most capable managers,” Dave Senay, CEO and president, said. “His track record of excellent client service, staff career development, and successfully managing across geographies makes him the ideal choice to unite Europe, the U.K. and Africa under a single leader. John is one of the most respected individuals in our firm. I know he will serve our clients and lead our staff exceedingly well in this expanded role.”

Saunders said, “I couldn’t be more pleased with this opportunity. While Asia has been grabbing many of the headlines over the past few years, we see considerable upside for our business both in Europe and in Africa. We have enjoyed consistent growth over the past few years and we want to maintain this momentum.”

Fleishman-Hillard in South Africa wishes to welcome John Saunders to the African network.

The quality of the sessions and the participants clearly showed that the organisers did their homework and are serious about helping African countries and their economies take their rightful place amongst the community of nations.

It is without doubt that Africa has for a long time played second if not third fiddle to developed nations when it comes to global trade and in entrenching its voice on issues such as climate change.

Events such as the WEF have created an opportunity for African countries, their leaders, civil servants  and the business community to put Africa’s agenda on the global stage through influencing international investors and financiers to give the continent another look.

This was clearly demonstrated when the three protagonists in the Zimbabwe narrative,  President Robert Mugabe, Prime Minister Morgan Tsvangirai and Deputy Prime Minister Arthur Mutambara shared a platform to put the case for Zimbabwe.

The united front presented by the three leaders is a symbol that Zimbabwe is on a healing path and is ripe for business. Now is the time to get into Zimbabwe.

The Tanzanian hosts put their best foot forward in organising a successful WEF. This was captured in the words of the host president when he said “This truly is Africa’s time”.

Kwaheri (Goodbye in Swahili)

While it would be naive for anyone to expect an election, especially held under the circumstances that the Sudan elections were held, to correct the wrongs of the recent past in that vast country, it can be hoped that a new dialogue will emerge out of the ruins to be led by the newly elected leaders of Sudan.

The people of Darfur, Southern Sudan and other troubled regions of the Sudan deserve a new beginning.

Democracy is not perfect, especially when it comes to elections. We have seen instances where polls have been rigged and elections stolen. This scourge, however, does not only hold true in Africa but is prevalent even in established democracies.

What cannot be denied though is the capacity of democratic institutions to bring the marginalised into the fold to participate in deciding the future of their country.

It was heartening to see ordinary people in Darfur standing in long queues waiting to cast their vote.

To imagine that not so long ago, most the same people were under siege from government backed Arab militias who engaged in genocide.

The elections present an opportunity for the international community to declare a new partnership with the people of Sudan.

We cannot allow the chaos that prevailed in the past few years and the killings that visited the poor under the noses of the UN and the African Union, to once again become the feature of Sudanese life.

While it is expected that President Omar al-Bashir and his goons will return to power, the only encouraging factor is the enthusiasm at which the People of Sudan embraced their chance to bring change. This augurs well for Sudan and for Africa.

This issue has been further aggravated by the recent killing of AWB leader Eugene Terre’Blanche, who was found bludgeoned to death at his farm in the North West Province.

Early investigations indicate that a labour dispute between Terre’Blanche and two of his workers over unpaid wages may have led to the right wing leaders slaying.

Some analysts and rightwing commentators have tried to link Malema’s singing of the song to Terre’Blanche slaying, an argument I find a bit farfetched.

Whilst the chanting of the song in today’s South Africa is a bit misplaced, it is inconceivable that any person will be motivated to take up arms and attack farmers based on the singing of the song.

Also, anyone who knows the lyrics will know that at no stage does the song instigate as a call to action the “killing of Boers”.  Most of the struggle songs that carry this phrase have a central theme such as conferring a condolence to a departed comrade as in “Hamba Kahle Mkhonto” (Farewell Comrade).

It is without doubt that crime levels in our country are high and farm killings are unacceptable.  These have over time been proven to be motivated be criminal intentions. The police need to be empowered to deal with these and provide farmers with the necessary security.

However, banning the singing of a struggle song, as has been mooted, contributes to further polarise our nation.

You cannot ban a part of South African history in the guise of promoting racial reconciliation. This in my view further fuels racial tensions and makes it difficult for people to come together and agree on what is an agreed common heritage.

The real issue here should be the violence that South Africans employ to resolve their differences. We are truly a violent nation and the sooner we admit to this the sooner will we find healing. Not long ago we attacked and killed foreigners in squatter camps because they were “stealing our jobs”.

Xenophobia is still prevalent in our society with increased attacks on businesses owned by Somalians and other immigrants. We still refer to Africans from across the Limpopo using derogatory terms such as Makwerekwere. This is unacceptable. We need a social agreement where violence will be removed from our national discourse and perhaps this begins with the ending violent rhetoric.