MaineNewsDirect.com

Dear Mr. John Ferland,

Thank you for the February 6th blog, “Changing the Energy Paradigm”. And thank you also for using this blog as an opportunity to share new ideas, information and knowledge.

You’re three points on how Maine’s corporations are addressing higher energy costs and energy price volatility are, in my experience, right on target John. As you note, to address rising energy prices in parallel with ensuring energy security, reliability and cleaner energy options, there is a need for:

1. Development of Professional Expertise
2. Creation of Knowledge Networks
3. New Product Innovation

I share this response particularly from the vantage point of what is happening outside the state of Maine, to “echo” the themes you’ve outlined in the blog.

First, it’s interesting to quickly note that the Maine State Treasurer is a member of the Investor Network on Climate Risk (INCR). INCR was launched at the first Institutional Investor Summit on Climate Risk at the United Nations in November 2003. INCR’s membership of 60 large institutional investors (including Maine State Treasurer) manages a whopping $4 trillion of assets. Members of INCR include asset managers, state and city treasurers and comptrollers, public and labor pension funds, foundations, and other institutional investors. INCR leverages the collective power of these investors to promote improved disclosure and corporate governance practices on the business risks and opportunities posed by climate change. As you know, climate change is no longer an emerging business and policy issue. Businesses, large and small, and across all sectors of the economy (wood products to retail, manufacturing, entertainment and tourism), are now seeking to address their carbon footprint and carbon risk with innovative products, services and partnerships. I personally believe it is great that the State of Maine is proactively looking into the risks and opportunities of a carbon constrained world through its involvement with INCR (see http://www.incr.com/NETCOMMUNITY/Page.aspx?pid=268&srcid=293).

For eighteen years the AHC Group, Inc. out of Saratoga Springs, NY has been operating a ‘Knowledge Network’ known as the ‘Corporate Affiliate Program’, see http://www.ahcgroup.com/affiliates_list.htm. The network involves some of the largest producers and users of energy and works with them on a regular basis to identify emerging risks, challenges and opportunities.

In January 2008 I facilitated, with Bruce Piasecki, a panel of energy leaders focusing on the topic of Climate Change. Firms including Sterling Planet (the large renewable energy provider), Exelon, Pacific Gas & Electric, DTE, Suncor Energy and ESS shared how they were each individually developing knowledge networks, innovating new products and services and expanding the development of their professional expertise and organizations. To see more information on the AHC Group January workshop see, http://www.ahcgroup.com/workshop_2008jan_agenda.htm.

It was impressive to learn from these giant energy producers and users, just how proactively they are at looking into new energy paradigms. The firms I list, and 80 others from DuPont and Honeywell to Intel and Louisiana Pacific, summarized how the role of the Chief Environmental and Chief Sustainability Officer (CEO and CSO) has risen within their firms. CEO and CSO’s are, depending upon the type of company and its products/services, looking at opportunities to reduce business risks, enhance operational efficiencies, gain access to new markets, identify opportunities for new products and services and create value to the firms’ bottom line. The positions are dynamic and require specialized skill sets. We see this emergence of the CSO as a tipping point in how businesses are actively engaged with all stakeholders to “Change the Energy Paradigm”.

My colleague, Bruce Piasecki, is the president and founder of AHC Group and well know energy and environmental business strategist. He is also the author of five seminal books on business strategy, valuation, and corporate change, including the Nature Society's book of the year, In Search of Environmental Excellence: Moving Beyond Blame (to be re-released in April 2008 by Sourcebooks).

Bruce Piasecki’s latest book, World Inc.: When It Comes to Solutions — Both Local and Global — Businesses Are Now More Powerful Than Government was published in April 2007 and focuses on the three themes you outline in your blog “Changing the Energy Paradigm”. In World Inc. Bruce Piasecki describes how and why firms are now reevaluating their existing business paradigms and looking toward new, more advanced forms of capitalism to compete in the 21st Century. Piasecki calls this social response capitalism, and at its heart is new knowledge, new products and new expertise centered around businesses delivering value toward social needs, like reliable and affordable energy. You can learn more about World Inc. at http://www.worldincbook.com/.

I also welcome you and your readers to take a look at my blog which provides insight and commentary on how businesses are discovering that being socially and environmentally responsible can be directly aligned with delivering value to shareholders and their bottom line. The blog is available at http://worldincbook.blogspot.com/. My blog also summarizes some key themes that you’ve identified, using case-examples. Here is an example of recent posts:

1. Tough Challenges in a Complex World: Why A Focus on New Product Development and Innovation is a Business Requirement for this New Century…

2. Green Growth in Global Markets: GE has a Formula for Success in Social Response Capitalism for Emerging Markets

3. Big Companies, Big Time Energy Agreements, and a Little Bit of Social Response Sweetener
Shell, Luminant, PG&E and Pepsi seek to transform the energy and power markets through social response energy solutions…

4. Electricity, the New Alternative Transportation Fuel: Ford & SCE team up to accelerate commercialization of plug-in hybrid-electric vehicles

5. Seek to Rediscover and Redefine Energy in this New Century

6. Energy is the Game Changer in the 21st Century: Will Businesses Lead Social Transformation More Swiftly and Effectively than Government?

Finally, let me concur with you that the economic benefits of innovation can be a challenge to quantify – and also justify for further investment to government agencies, universities, foundations and other funding sponsors. What we see, more and more with all stakeholders is a convergence of collaboration on discovering solutions toward complex and challenging issues facing business, government and society. As we seek to redefine what energy means to us in this new century and as we seek to create a new paradigm for energy security, availability and affordability – we will need to address each of your three key themes collaboratively and in partnership with one another (business, government, NGO’s, universities, consumers, etc.).

We’ve all heard the adage “there is no technology silver bullet” for solving our complex energy challenges. And it is logical that a strategic mix of energy efficiency, renewable energy, biofuels, smart “digital dashboards” and advanced energy controls, “smart appliances”, “smart transmission grids” and more efficient power lines among other technologies will all be part of this new energy paradigm we eagerly wish to create.

Thank you for the opportunity to share some information. I welcome folks to contact me at Mark@ahcgroup.com and by accessing my blog at: http://worldincbook.blogspot.com/.

Best,

Mark C. Coleman
Senior Associate & World Inc. Case Leader, AHC Group, Inc.
Mark@ahcgroup.com