Annual Report Misum

2015 Annual report

Misum

Mistra Center for Sustainable Markets (Misum) Stockholm School of Economics P.O Box 6501 · SE-113 83 Stockholm · Sweden [email protected] The Mistra Center for Sustainable Markets (Misum) www.hhs.se/misum at the Stockholm School of Economics

Thanks to: Samir Soudah who took the cover photo in the SSE library and the group pictures, Johan Eliasson for information gathering and translations, Emilie Eliasson Hovmöller who wrote most of the texts and Helena Lundin who did the production. Contents

4 Foreword by Lars strannegård and lin lerpold 6 our research platforms 8 misum research: Cooperation can thrive in an uncertain world 10 misum research: Supply chains crucial for sustainable business 13 misum research: sustainable employments 14 Quick answers from stakeholders: What do you expect from Misum? 16 moments from our first year 20 misum research: Few large companies practice what they preach 22 education: Misum’s mission 24 the PhD students of Misum 26 aFterword by björn stigson 27 Financial statement

2 3 Collaborative research for a sustainable future

Misum’s mission is threefold. Firstly, we conduct multi-disciplinary research that is both scientifi- cally rigorous and practitioner relevant. Secondly, Misum strengthens we have the mission to educate our students and future leaders in society to equip them with the SSE’s competitiveness tools to be able to understand and act upon our time’s most pressing challenges. Finally, of priority for all that we do at Misum is on cross-sectional Thanks to Misum, the Stockholm School of able to influence and make a difference. collaboration and industry outreach. We hope Economics has been given the opportunity to con- To be able to survive and strengthen our posi- that our important stakeholders will continue to tribute to the sustainable development of our soci- tion as the leading business school in the Nordic collaborate with us, both participating in defining ety in a powerful and focused way. SSE can now, and Baltic countries, SSE needs to attract these and utilizing our research. through Misum, create long-awaited opportunities talented and ambitious students. These students 2015 was a special year: It was the hottest on for our students, research, and society at large. are attracted by an institution where knowledge record, forcefully making us consider the cli- In 2016, we will focus our efforts on developing on sustainable markets is produced and dissemi- mate change challenge. Violent conflicts, natural our research further and incorporating the newly The first full year for Misum has shown what an nated. A vibrant intellectual environment such disasters, environmental deterioration and social awarded research program, Mistra Financial important role a concentration of knowledge can as the one created at Misum also increases the inequalities continued to prevail. At the same Systems (MFS), into Misum. The program will play, both for SSE and for society. Misum focuses attractiveness to academics and staff members. time, 2015 was also a year of hope; the adop- focus on both immediate needs within current on sustainable markets and has in a short time Thereby, Misum clearly helps SSE in fulfilling our tion of the UN Sustainable Development Goals financial systems as well as rationales for alterna- proven to be a place where important knowledge mission: to contribute to strengthen Sweden’s (SDGs) and the ratification of the Paris Agreement tive financial systems, and how the systems might is created and shared in a very efficient way. competitiveness. at COP 21 marked two important sustainability be fundamentally restructured to be more condu- milestones, showing that the international commu- cive to sustainable development. Misum clearly strengthens SSE’s competitiveness. At SSE we are grateful for the outstanding support nity can come together when we need it most. On When SSE students list important features of a from Mistra that makes all this possible. Misum’s a closer level, the initiation of the Mistra Center Again, we firmly believe in the imperative of work- future job, words like meaning and purpose come inaugural year has been truly inspiring and for Sustainable Markets (Misum) was an important ing across academic disciplines and together with at the top of the list. They want to work with some- productive, and I look forward to an exciting and step for the Stockholm School of Economics and businesses, the public sector and civil society. We thing important and meaningful. They want to be interesting 2016! the sustainability field in Sweden. very much look forward to seeing you in 2016!

Today’s markets need to undergo transforma- tional change to be more conducive to sustainable development. Companies and markets acting Lars Strannegård more sustainable can serve as important catalysts Lin Lerpold President, Stockholm School of Economics in achieving the SDGs. As a cross-disciplinary and Acting professor and multi-stakeholder knowledge center dedicated to executive director of Misum sustainability and sustainable markets, Misum has a key role to play in this endeavor.

4 5 our research platforms

Sustainability in Financial Markets & Stockholm School of Economics and a research Mistra Financial System manager at Misum. Susanne is currently on the This knowledge platform explores how financial management team and conducts research in a markets can contribute more to sustainable devel- large cross-disciplinary research program on opment, and more specifically, what changes are sustainable fashion, Mistra Future Fashion, aim- needed to make the financial sector more sustain- ing to a systemic change of the Swedish fashion r ese arc h able. Relevant changes could be made both at the industry leading to sustainable development of the macro level – in the form of policy, governance, industry and wider society. She is also a member market structure – and at the micro level – in the and co-founding partner of NCCR, Nordic Centre form of practices by individual firms, technological for Corporate Responsibility, who jointly conducts Ranjula Bali Swain, visiting professor, Susanne Sweet, associate professor and platform manager, Max Jernek, PhD and researcher, tools, etc. research with a Nordic focus. Ebba Sjögren, associate professor, Lars-Gunnar Mattsson, professor emeritus Business Administration. Marijane Luistro, PhD and researcher Lin Lerpold, acting professor and executive director, Svenne Junker, PhD and researcher. In 2016 the platform will be replaced by the Missing: Örjan Sjöberg, professor and platform manager and Joakim Sandberg, visiting researcher and platform manager. newly founded Mistra Financial Systems, a research Sustainable Socio-Economic program will be hosted by Misum in collabora- Development tion with the Swedish House of Finance, KTH Royal This platform explores how sustainable practices Institute of Technology, The Royal Swedish Academy can be introduced, maintained and improved interacted with of Sciences, Stockholm Environment Institute, within a market-based society. Best practice London School of Economics, the ICMA Centre 1 189 students and insights, actions and policies will be suggested at Henley Business School along with Swesif and covered in different with the purpose of building a more sustainable 3 585 sustainability Statistics Sweden. society. To achieve this, we need to ensure that our media reaching over professionals Peter Norman, former minister of financial recommendations are aligned with current prac- 5 million people markets, will chair the programme board, Cecilia tices and the main concerns of society. Repinski will manage program operations and pro- The vision is to be a leading research unit in the fessor Bo Becker, is appointed program director. area of sustainable socio-economic practices and we have conducted policies. The platform will develop its own research We have produced Sustainability in Production focusing on markets and how they interact, as 23 seminars and Consumption well as build upon other research developed by 5 working papers and workshops This research platform aims to address how mar- industry and public sector research institutes. and published kets, market actors and natural and social systems Furthermore, a close collaboration with practitio- 10 journal articles interact in organizing, shaping and changing ners will be developed to support and induce them towards more sustainable (or unsustainable) prac- to create sustainable and competitive business Misum is a cosmopolitan tices in production and consumption. With a grow- practices. mix of 17 researchers, one ing human population and economic development, Örjan Sjöberg is a research manager at administrator and a com- we experience increased pressure on the plan- Misum and professor of economic geography munication manager. We etary and social systems that we exploit. Further, at Stockholm School of Economics. Örjan is an represent seven different countries and together we the platform explores how governments, relevant editor of Geografiska Annaler: Series B, Human speak fifteen languages: Swedish, international organizations and the private sector Geography and a member of the board of the Eleonora Lotti, Administrator Norwegian, English, German, French, can play an active role in changing unsustainable Stockholm China Economic Research Institute. Italian, Spanish, Greek, Hindi, Japanese, consumption and production patterns. Focusing on urban and regional change, and Filipino, Urdu, Punjabi, Oriya and Bengali. The vision is to be Sweden’s leading research issues of development more generally, in addi- and knowledge platform in the area of sustain- tion to also taking an active interest in locations You can follow our work on our website ability in production and consumption and to have and phenomena closer to home he has extensive and blog and on Facebook, Twitter and distinct and lasting effects on the sustainability of experience from field research and consultancies LinkedIn.

Swedish production and consumption systems. in the Baltic states, the Western Balkans, Central Tinni Ernsjöö Rappe, Communication Manager Susanne Sweet is an Associate Professor at and Southeast Asia.

6 7 Misum research: Success in Paris with critical Cooperation can thrive finance decisions in an uncertain world still to be made Cooperation increases in an environment where As a Misum representative I participated in the UN the risk of disasters and setbacks is substantial COP21 negotiations for a new climate treaty in Paris in shows the research of Marijane Luistro Jonsson. December 2015. Launched by French president Hollande and other profiled leaders of the world, mainly positive vibes and good energy characterized the meeting. The r ese arc h achievement of an agreement to keep global tempera- tures “well below” two degrees above pre-industrial Misum researcher Marijane Luistro Jonsson production and consumption that promote and times and “endeavor to limit” them even more, to 1.5C, explores different angles within the area of consider sustainability. Examples include markets was overwhelming and roused applauds and tears of joy cooperation in her dissertation “Cooperating that are based on business models to reduce among the participators. Most commentators agree that for Sustainability – Experiments on Uncertainty, waste or markets that support the marginalized the Paris treaty is strong. A particularly promising part Conditional Cooperation and Inequality”. The dis- and voiceless. of the treaty is that each country’s contribution to cutting sertation focuses on the behavioral dimension of However, Marijane emphasizes some key chal- emissions will be reviewed and revised every five years collaborations for sustainability. lenges in achieving sustainable markets. to scale up to the challenge. Moreover, the Paris treaty I conduct research in the field of cooperation as It is hard to change the mindset and behavior of assigns important roles to the financial market to develop it is a critical aspect when addressing the chal- people in general, regardless of their background. climate investment mechanisms. Nevertheless, there are lenges of sustainable development. A deeper There is little understanding on how we can trans- still crucial decisions to be made, to which both Misum understanding of human behavior is critical for form behavior in the long-term. Awareness and and other research institutes of the Stockholm School of the successful implementation of solutions for sus- willingness does not automatically lead to action. Economics can contribute by giving constructive input. tainability, says Marijane Luistro Jonsson. In this respect, effective cooperation between An issue I followed closely during COP21 was the In the dissertation, Marijane Luistro Jonsson key institutions in society can be an important financing of climate work in developing countries. The uses experiments to examine cooperation. In the driver of behavioral change. parties of the UN climate convention has already agreed experiments one pays a cost for others to receive I believe that the conclusions of my research to establish a Green Climate Fund, GFC with the aim of a benefit. The results show that contributions also apply to the world in general, that coopera- mobilizing USD 100 billion yearly from 2020 to respond are always greater under uncertain conditions. tion will indeed thrive in times of uncertainty and to climate change by investing into low-emission and cli- Cooperation tends to increase when we do not disasters. In times of climate change and migra- mate-resilient development in these countries. However, know when a disaster will occur, if we do not tion crises, cooperation between organizations there is still no united mechanism for raising the GFC capital. Together with my Misum colleague, associate know how much we will lose, and if we do not within the public, private and civil sector will be professor Joakim Sandberg, I have published a debate know what level of cooperation is needed to avoid more important than ever, says Marijane Luistro article in Göteborgs Posten (2015-03-10) advising the disaster. Contributions are also greater if some Jonsson. Swedish government to initiate the process of installing a members of the group have more to contribute Green Investment Bank in Sweden, as was done 2010 in than others. the United Kingdom. We argue that the Green Investment The results are encouraging because they show Bank shall issue Green Bonds for mobilizing private capi- that when the risk of being exposed to disasters tal in Sweden for climate investment in the most needing is high, this is a driving force for cooperation. countries. However, the experiment shows that receiving By following this approach, we believe that Sweden information on the degree of probability of a also can act as a role model for other countries. disaster is important in order for cooperation to Svenne Junker defended his thesis on decision-making increase, no matter how meagre that information in EU-agencies in April 2014. His current research is is, says Marijane Luistro Jonsson. focused on the work of aligning policies for a low-carbon Marijane Luistro Jonsson believes that sustain- economy in core executives of states and in transnational ability is a lifestyle and mindset that considers organizations such as EU and OECD. long-term sustenance and the inter-relatedness of In October 2015 Marijane Luistro Jonsson was awarded 15000 SEK He formerly worked as policy officer and EU by the The Center for Social Sustainability at Karolinska Institute for environmental, social and economic systems. her research ideas on decision-making in times of disasters. expert at Swedish Society for Nature Conservation Sustainable markets refer to systems of (Naturskyddsföreningen).

8 9 Misum research: “It is like the game of Supply chains crucial for Domino. You can put each sustainable business individual piece in the right order and as long as it is Carbon emissions accumulate throughout the different stages of the prod- treated in isolation it seems ucts’ life-cycles. Companies are therefore working to reduce environmental fine. But in the wider context, impacts of their production. According to Serafim Agrogiannis’ on-going if not all pieces are seam- research on sustainable supply chains, sustainable sourcing is crucial in lessly assembled, the whole facilitating the transition towards a greener economy. r ese arc h structure might break down.”

Corporate sustainability has been gaining 1) Supply of raw materials and compo- momentum in the last decade and the nature of nents. Use of eco-efficient transport modes, business success is being redefined. Competition consolidation of shipments, selection of suppliers has shifted focus; sustainable supply chains are based on their sustainability profile, and co-oper- increasingly giving companies a competitive ation with suppliers to improve their sustainability government intervention being adapted to the edge. Sustainable sourcing is at the frontline and performance. Serafim Agrogiannis specificities of each industry. For heavy polluting considered business critical in attaining sustain- 2) Production. Replacement of hazardous industries, efforts need to concentrate on effi- ability objectives within firms and across their material and processes and reliance on recycling ciency improvements through cleaner production, supply chains. materials, and participation in product design for energy audits, and capacity building programs on “Sustainable sourcing” is literally the sustainabil- achieving eco-efficient production. energy saving awareness. For sectors with higher ity ‘gatekeeper’ for companies and their supply energy consumption, there needs to be an align- 3) Distribution. Choice of environmentally- chains”, says Serafim Agrogiannis. ment between greening the supply chain efforts friendly distribution channels, design of effective and the subsequent final demand. “Only complexity can deal with complexity. I feel Serafim Agrogiannis, who is in his third year of return systems, and decisions about re-using privileged that this is a value guiding research in the PhD studies at Misum, has eleven years of packaging materials. “In these cases, market-based instruments such as Misum as well, where there is strong support of working experience in auditing and sustainable sectoral financial subsidies, preferable tax rates or 4) Energy intensity. Mitigation of supply risk multidisciplinary research.” supply chain managemant in public and private low bank loans could be employed. This in order sectors in Greece, he holds a B.Sc in Supply of energy as a resource for effective and effi- to adjust energy consumption along supply chains Serafim Agrogiannis argues that sustainable Chain Managemnet, an MBA with specialization cient supply chain operations as well as ensur- according to final demand and consumption.” markets include a multitude of actors and institu- in accounting and auditing and an M.Sc in project ing renewable energy generation through green tions, subject to a variety of contextual differences managemant and operational development. He is investments and procurement of renewable power. Serafim Agrogiannis also emphasizes the need for across different business and social environments. particularly focusing his research on critical sourc- regulative bodies to rethink their role and build According to Serafim Agrogiannis, government The overarching principle of sustainability reflects ing competences and how these competences insight on how to efficiently coordinate sustain- initiatives should center on substantial fossil fuel an increased interconnection. affect the deployment of low carbon supply chain ability actions. reductions towards achieving a reduced ecologi- practices. “It is like the game of Domino. You can put each cal footprint. This in turn poses challenges and “We need to better comprehend the interactive individual piece in the right order and as long “I consider this subject of particular importance, requires actions with regard to energy usage role(s) of civil governance, business co-regulation as it is treated in isolation it seems fine. But in since business organizations and their supply throughout the supply chain (transport and logis- and private governance forms.” the wider context, if not all pieces are seamlessly chains constitute one of the cornerstones towards tics, production and the reuse of products). Serafim Agrogiannis points out that a sole dis- assembled, the whole structure might break down. achieving a more sustainable market.” “It is important to apply appropriate carbon miti- ciplinary research approach is not sufficient in For example, one cannot demand from businesses The results of Serafim Agrogiannis research show gation measures. Policy makers need to incor- sustainability science. Relevant knowledge is to make their production systems more sustain- that sourcing could facilitate a transition towards porate energy supply, demand, efficiency and multidisciplinary and involves for example the able without considering the customers’ and more sustainable business throughout the whole related emissions policies to ensure sustainable natural, engineering and management sciences. consumers’ consumption patterns or the role that product life-cycle. There are four key areas in practices throughout the entire supply chain.” And as a term, sustainability includes complexity state governments and transnational institutional driving this transition: Serafim Agrogiannis stresses the importance of and heterogeneity. bodies can play.”

10 research 11 Sustainable employments

Misums Jennie Perzon examines the challenges and motivations to cross-sector collaborations regarding skill building initiatives to create employment. r ese arc h

One of the great social issues in the world today is that of growing unemployment, with an estimated 200 million people unemployed and actively looking for work worldwide. At the same time that unemployment is increasing, there is a growing global ‘skills gap’, where the demand does not match the supply of skills and employ- ers (often multinationals) cannot find any talent with the right skills for employment. An example that will be explored in my research is cross-sector collaboration in skill building initiatives to create employment in both urban and rural context in developed and developing markets. Based on projects with and inquiries from large multinational corporations in the private sector and equally so from global nonprofits, I have seen Working as a management consultant at an increasing demand for insight and understand- Accenture for more than 15 years has given me ing about cross-sector collaboration and long the opportunity to explore many industries and term shared value initiatives. observe the different commercial challenges in There is a growing awareness from both prac- large corporations. In parallel, my engagement titioners and academics that successfully solving in corporate citizenship has led me to seek out social issues in this new global landscape will opportunities in developing countries and the require active participation from and collabora- non-profit sector. There are a number of social tion between all sectors. Despite this, there exists issues and major challenges in the world today a disconnect between sectors which drives me to – from social inequities to climate change – affect- further examine both the challenges and motiva- ing the lives and wellbeing of billions of people tions to collaborate faced by both. I hope that my globally. The world is rapidly changing affect- research will provide insights on actual efficient ing the economic, social and cultural, environ- and scalable models for cross-sector collaboration mental and political aspects of life for citizens. and value creation. Globalization has led to a shifted power balance across the world where business and civil society Jennie Perzon is a PhD student at Misum. She Lin Lerpold giving the academic speech at the Bachelor organizations are becoming more influential. holds a Master of Business Law and a Master of Corporations and non-profit organizations work Business Administration from Bond University and graduation ceremony in Blå Hallen at the City Hall of within the same environment and in the same an MSc from University of Southern California Stockholm in November 2015. A speech and a ceremony markets, often facing similar challenges. Despite and has worked as a management consultant at many potential benefits of collaboration I find that Accenture for 15 years – both in global and local characterized by all human beeings’ responsibility for the they often work in silos, and despite wanting to projects within the area of corporate citizenship Earth and for the future. work together many fail to do so. and sustainability.

12 13 Quick answers from stakeholders: What do you Bo Becker, Professor, Department expect from Misum? of Finance, Stockholm School of Economics

How can Misum support you in your work? What do you expect from Misum? This is a critical time for higher education in Europe. For the first time in modern history Johanna Giorgi, Fredrik Franke, universities are competing across borders.

Analyst Sustainable h o u t r e ac Head of PwC The Stockholm School of Economics now Growth, Swedish Sustainability has the opportunity to position itself as a Agency for Economic advisory services location of choice for leading scholars and and Regional Growth in Sweden top students from around the world. In order (Tillväxtverket) to succeed, we need to consistently produce Per Bolund, How can Misum support you in quality research on important topics and to Minister for How can Misum support the your work? What do you expect offer education that is career-relevant and Financial Markets Swedish Agency for Economic from Misum? attractive. These two feed each other as and Consumer and Regional Growth? What do We believe Misum can connect research better faculty attract better students and vice Affairs, Deputy you expect from Misum? and practice in a good way and we hope versa. Misum can also be a leading force Minister for Finance Misum can help us better understand the that PwC can contribute to this integra- engaging students in global challenges. transformation pressure in different mar- tion. What is a sustainable market? What do you expect from Misum? kets and what demands and opportunities What is a sustainable market? A sustainable market creates shared value I expect Misum to help shift society this pressure imposes on the companies A market that in the long term consid- for all its stakeholders. Within my field of towards a fossil free and resource effi- operating there. ers the wider range of consequences that research, financial markets, a key dimen- cient future by increasing our knowledge What is a sustainable market? the market causes. Thus, environmental sion of sustainability is the safeguarding of on sustainable development. By provid- We usually do not claim to be able to and social impacts and how these in turn small investors. This can apply to house- ing new competences in sustainability we define “sustainable growth” - and the affect the market. A market which in a holds having the right amount of risk in strengthen the competitiveness of both same applies to the “sustainable market”. better way will be able to include the their asset portfolios, paying reasonable Sweden and the Stockholm School of However, we can identify some key pieces actual costs of products and services, will management fees, and not being tempted Economics. of the puzzle in sustainable markets as ultimately be sustainable. It will in other to over-levering. Another major topic is how How do you define a sustainable resource efficiency, built on renewable words become self-financed. corporate governance and ownership struc- market? energy, free of harmful toxins and trans- tures create long-term value for society. What are the most critical To me a sustainable market provides parency. research topics within the field What are the most critical room for the economy to grow without What are the most critical of sustainability? research topics within the field infringing on the welfare of future genera- research topics within the field How this wider impact of the market of sustainability? tions. of sustainability? on society can be measured in financial Sustainability is not a single area of What are the most critical Today there is much talk about resource- terms. research in the traditional sense (such as research topics within the field efficient business models based on How UN’s new global sustainability marketing or labor economics), but an of sustainability? function and sharing as key parts in the goals will influence a future market. important dimension in different research Research focusing on new business mod- development of sustainable business. How this development will affect the areas. This makes it particularly difficult to els to make sustainability more profitable There is a need to explore how such pricing of products and services in the predict the direction of future research. A for companies. There is also a lot to be models work in different markets and long-term. sustainable model for the management of done with regard to developing systems to segments, the impact they actually have, How the development within this field insolvent governments’ large debts is a cur- compare and assess businesses’ level of and what is driving the shift and by which will affect the confidence in business and rent challenge, where I believe research will ambition within sustainability. actors. the capital markets in the long-term. provide new insights.

14 15 Moments from our first year

January April May June h o u t r e ac

Official launch Scientific Hackathon Misum is officially launched to strengthen Misum, the Global Economic Dynamics and the Sweden’s competiveness in sustainable markets. Misum in the Swedish parliament Harvard’s Robert Eccles Biosphere Programme, and the Beijer Institute for Misums Joakim Sandberg gives a presentation Robert G. Eccles, Professor of Management Ecological Economics organizes a successful scien- to the Swedish parliament in a seminar on green Practice at Harvard Business School and affili- tific Hackathon. investment banks. The seminar – hosted by the ated researcher at Misum, presents his findings on March Swedish Social Democratic Party, the Swedish integrated reporting and materiality at a number Society for Nature Conservation and KPA Pension of practitioner and research workshops at Misum. PhD – aims to discuss the possibilities to establish a Svd Näringsliv (länk: http://www.svd.se/4582942) Multi-stakeholder workshop Sofia Nilsson Altafi successfully Swedish green investment bank in order to find interviewed Eccles about the conclusions from his Our first practitioner workshop with over 80 par- defends her PhD thesis “Evaluations better solutions to unemployment and climate almost 40 years of sustainability research. ticipants focuses on the definition, nature and use as mirrors and co-constructors: An issues. of sustainable markets, and defined a new set of empirical investigation of a micro- questions to be discussed in the second workshop finance rating agency and its rating in November. Price volatility and financial markets practices from 1999–2014”. Misum co-hosts an event at Stockholm School of Economics with the Global Economic Dynamics Report on green investment strategies and the Biosphere Programme at the Royal Representatives from Misum release a report on Swedish Academy of Sciences (GEDB). investment strategies that have positive effects on environment and climate. The report advocates the installment of a green investment bank in Sweden to increase investments in green sectors. (länk)

Filosofiska rummet The Misum researchers Lin Lerpold and Joakim Sandberg participates in the famous Sveriges Almedalen Radio show “Filosofiska rummet” in a discussion Misum goes to Almedalen together with Misum meets Professor Johanna Mair on profit: Are there alternatives to profit? Hagainitiativet and Stockholm Environment Misum hosts a research seminar with Professor (Länk http://sverigesradio.se/sida/ Institute (SEI) arranging several seminars on how Johanna Mair from Hertie School of Governance. avsnitt/546700?programid=793) business and politics can work more closely and The seminar explores Ms. Mair’s research on how systematically in order to build a competitive and novel organizational and institutional arrange- sustainable Sweden. ments generate economic and social development and the role of innovation in this process.

16 17 Moments from November our first year Misum meets Keith Perks Misum hosts a seminar about sustainable food consumption with Professor Keith Perks of the Brighton Business School, UK on consumer attitudes towards the consumption of red meat products.

September October Misum Multistakeholder Workshop, Part 2 As a follow-up to the first multi-stakeholder work- Lin Lerpold to the students of SSE shop held in March, Misum hosts the second of Lin Lerpold holds the academic speech on the a series of multi-stakeholder workshops with the graduation ceremony in Blå Hallen in Stockholms PhD #2 h o u t r e ac purpose of taking the dialogue on relevant and stadshus. Marijane Luistro Jonsson successfully applicable sustainability research one step further. defends her PhD dissertation “Cooperating Misum meets Lennart Olsson for Sustainability. Experiments on Misum and Swedish House of Finance Misum hosts the seminar “The pitfalls and possi- Uncertainty, Conditional Cooperation and Seminar bilities of interdisciplinary research” with Professor Inequality”. The Swedish House of Finance (SHOF) and Misum Lennart Olsson from the Lund University Center arranges a panel discussion on the topic of for Sustainability Studies (LUCSUS). Dr. Olsson’s Misum meets Louise Brown “Beyond financial returns - the new world of sus- research focuses on the pitfalls and possibilities of Misum hosts a practitioner seminar with Louise tainable investing”. With Lin Lerpold, Lars Thunell, Walking the talk? organizing interdisciplinary research. Brown, Principal Consultant Sustainability Advisory Senior Advisor, Blackstone Group and Anna Ryott, Misum launches the report ¨Walking the talk?¨. Services at DNV GL on the impact of the UN CEO of Swedfund. and representatives from TeliaSonera, Stora Enso, Misum meets Yannis Dafermos Global Compact on companies and other sustain- Oriflame, ABB and PWC participate in a panel Misum hosts the research seminar ”Building ability initiatives. discussion. The report is based on a study of the a model to integrate the macro-economy, the publicly available sustainability communication financial system and the ecosystem” with Yannis Mistra Future Fashion Manifesto of all 72 Large Cap NASDAQ/OMX in Sweden. Dafermos of the New Economics Foundation who The research program Mistra Future Fashion The companies are examined and scored on how speaks about the model that he and his col- presents a manifesto for a sustainable fashion they communicate and measure their sustainability leagues are building, which integrates the macro- industry. work and the report gets great recognitions in the economy, the financial system and the ecosystem. media.

Misum meets Ted Lindblom December Misum arranges a seminar with Professor Ted Lindblom at the Gothenburg School of Business, Economics and Law focusing on how an ecologi- Misum meets Christian Felber cally sustainable society will require a shift in Misum arranges a seminar with Christian Felber, investment toward less harmful technologies and a renowned multi-disciplinary social scientist and SDG practices. political thinker at the University of Economy in On September 25 the United Nations General Vienna. He champions the idea of “The Economy Assembly adopts the 2030 Development Agenda for the Common Good” (ECG), which is an communicated by the Sustainable Development alternative economic system built on values that The Misum blog is born Goals. “The seventeen Sustainable Development promote the needs of the entire population. Goals are our shared vision of humanity and a http://misumblog.com social contract between the world’s leaders and the people,” says UN Secretary-General Ban Misum researcher awarded Misum at COP21 in paris Ki-moon. Misum researcher Marijane Luistro Jonsson is Misums Svenne Junker travels to Paris to join the awarded a sustainability prize by the The Center Paris COP21-meeting and covers it on the Misum- for Social Sustainability at Karolinska Institute. blog.

18 19 “We scored each company on what they say that “Large Swedish and German companies are often Few large Swedish they will do and what they say that they have done global, often facing the same challenges and with regards to S/CR. KPIs from the talk section opportunities. Both Germany and Sweden are in companies practice relate to corporate communications on sustain- the forefront in areas such as renewable energy ability while KPIs from the walk section assess and ICT technologies within sustainability”, says what they preach the information that is available on the follow- Uta Hönemann. up and the actual sustainability work”, says Uta In spite of the partly discouraging results of the Hönemann. A large majority of the companies listed on Nasdaq OMX com- study, the authors look to the future with great municate more on their sustainability aspirations than about imple- Uta Hönemann emphasizes that companies both confidence. in Sweden and Germany, where she is from, need mentation and practices according to the Misum report ”Walking “All companies can make a difference with regard to have a S/CR policy and clear action points to sustainability, especially large companies the Talk?” by master students Uta Hönemann and Elisabet Ålander. related to the policy in order to achieve a sustain- operating globally. We hope this report will inspire Rese arc h able market. She notes the similarities between companies to see the opportunities in making a the countries. change and contributing to a more sustainable world.”

A large majority of the companies listed on responsibility for sustainability matters in the Nasdaq OMX communicate more on their sustain- executive management team, and 11 percent ability aspirations than about implementation and have gender balanced boards of directors. practices according to the Misum report ” Walking “We were surprised and discouraged by these the Talk?” by master students Uta Hönemann and results, as we are convinced that long-term sus- Elisabet Ålander. tainability work create value for both businesses The report was published in October 2015 and society. Misleading communication can be and commissioned and supervised by Misum. devastating”, says Uta Hönemann. The main objective was to explore the sustainability communication of companies listed on the There was also a clear variation between sec- Nasdaq OMX Stockholm Large Cap Index, rep- tors. Companies classified as Basic Materials, resenting the largest companies in Sweden from scored on average double the walk points seven different sectors. More specifically, the team compared to those classified as Financial wanted to understand what information external Services. Furthermore Technology companies stakeholders can access about companies’ sus- scored three times higher on average in the walk tainability strategies and initiatives and to which section compared to companies in the Oil and extent these companies report on implementation. Gas sector. A number of indicators, based on research and “What struck us was the performance gap practitioner best practice research, were defined between sectors. Some have come very far in this and the data was collected and coded. area, while others report very little on implemen- “By comparing the corporate communication tation. We also found a considerable variation of different companies, we hope to support the among companies in the same sector”, says Uta development of clearer and more coherent S/CR* Hönemann. communication across different sectors, and to Uta Hönemann and Elisabet Ålander examined identify companies that can serve as role models corporate websites, sustainability reports, and to others”, says Elisabet Ålander. annual reports for the financial year 2014. The report concludes that the majority of listed “Publicly available information is often the only Swedish companies do not seem to practice what way stakeholders can analyze a company’s S/CR they preach. 88% of the companies talk more work. This reporting has also become a way to about sustainability in general terms (the “talk”) achieve legitimacy”, says Elisabet Ålander. rather than about completed activities, monitoring and implementation (the ”walk”). Further results The two students also operationalized S/CR of the study show that 10 percent of the compa- through 26 key performance indicators (KPIs) that nies communicate sustainability goals beyond cover the areas economic, environmental and 2016, 25 percent have representatives with formal social sustainability.

20 21 Education: Misum’s mission

Misum has an important role to play in promoting sustainability at SSE. tion In addition to lecturing, teaching courses and supervising theses on sustainable business and markets, Misum provides valuable support to all educa- tional programs at SSE by integrating sustainability into existing programs along with “teaching the teachers” and capacity building programs.

Principles for Responsible Management Global Challenges Foundation Education

The Global Challenges Foundation works to raise ed uca In 2013, SSE became a member of the Principles awareness of the greatest threats facing human- for Responsible Management Education (PRME) ity. The foundation strives to identify and develop “Today, sustainability is at the top of the agenda”, initiative, the first organized relationship between possible solutions and models as to how the the United Nations and business schools, with United Nations can develop and initiate new ideas says Susanne Sweet, Associate Professor the PRME Secretariat housed in the UN Global on working global governance. and Teacher at SSE. Compact Office. The mission of PRME is to inspire and champion responsible management educa- SSE has received a grant of SEK 40 million from “A few years ago, SSE was all about business, August 2016, sustainability will be incorporated tion, research and thought leadership globally. the Global Challenges Foundation to redesign management and finance. Sustainability was a into the Bachelor Program curriculum. Misum has the flagship Bachelor program in accordance highly marginalized issue. Today, sustainability is been given specific responsibility for implementing At SSE, Misum plays a key role in the dissemi- with the global challenges. The aim is to raise at the top of the agenda as we must redefine our this important step, working in close collaboration nation of PRME by participating, sharing and awareness of these highly important issues and mission to better meet global environmental and with other SSE teachers and course. impacting best practices among SSE faculty and give our students the understanding and tools to social challenges. Misum can be an important researchers, Swedish, Nordic and international act upon these issues. Misum will work in close engine and driving force for change in this work”, “When it comes to sustainability education at SSE, business schools. collaboration with SSE to incorporate the ideas of says Susanne Sweet. Misum’s task is very much about “training the the Global Challenges into the Bachelor program trainers. That said, it is important that the concept curriculum, as well as providing ”teaching the Susanne Sweet is an Associate Professor at of sustainability is integrated and customized to teachers” support. SSE and a research manager at Misum. She the courses and that we do not just present a stan- heads the course “Corporate Sustainability and dardized toolbox”, says Susanne Sweet. Responsibility” at the CEMS and Master Programs. Susanne believes that Misum can play an impor- Her personal vision for SSE is clear. tant role in building a strong sustainability practice at SSE. “Within a few years, no student should graduate from SSE without the knowledge and tools to Sustainability courses are now integral in the understand and act upon the greatest challenges CEMS, Master, MBA and Executive Programs. By of our time.”

“Within a few years, no student should graduate from SSE without the knowledge and tools to understand and act upon the greatest challenges of our time.”

22 23 We are the PhD students of Misum

1. Summarize your phd research. 2. What drives you? 3. What do you hope to achieve with your research? Rese arc h

2. The possibility to inspire economic and societal Serafim Agrogiannis, Tina Sendlhofer, Jennie Perzon, Clara My Lernborg Tina Sendlhofer has a BA from value creation in a very controversial industry, Ingrid Stigzelius, Emilia Cederberg, Enrico Fontana Vienna University of Economics and Business namely, the RMG industry. Administration and a master from University of Brighton. 3. I mainly hope it to glean an empirical impact among MNC fashion companies and suppliers in 1. Sustainability in supply chains in the fashion developing country contexts and beyond the schol- industry. arly saliency. Bond University, an MSc from University of Southern engagement with both environmental and social 2. My naivety, the inexhaustible thirst for knowl- California and has 15 years of working experience issues within the wider supply chain context. edge and infinite passion for new ideas. Ingrid Stigzelius has a Licentiate degree from being a management consultant at Accenture. 3. My intention is to produce topical research from Department of Economics at SLU in Uppsala 3. Contribute to scientific knowledge and find 1. The intelligibility of both contextual and orga- results through a prescient scholarship approach and a background within civil society organiza- ways that drive sustainability. nizational impacts on value generating potential towards anticipating and influencing the type of tions, such as Fair Trade Center. designates organizations level of motivation to managerial knowledge needed for enlightening Clara My Lernborg has a master in 1. My Phd-thesis deals with the construction collaborate across sectors. This will be explored academic and practitioner spheres of low-carbon Business Administration from Stockholm School of of green consumption in various forms of food through both a private sector and nonprofit sector transition issues. Economics. practices related to production, market exchange focal point. and consumption. The research brings together Emilia Cederberg holds a B.Sc. in Business 1. My research relates to how competitors can 2. New experiences, meeting new people, change consumer and market studies, which highlights & Economics and a M.Sc. in Accounting and collaborate on solving sustainability challenges. and the potential to facilitate impact. the inter-dependency of socio-material actors in Financial Management, both from the Stockholm 2. To know more in order to be able to contribute the shaping of consumers’ capacity to act and ‘do 3. The long term ambition is to inform the way School of Economics. theoretically and practically to the sustainability green’. the corporate, and nonprofit sector work together I study how how institutional investors with puzzle. and to make a contribution towards all actors 1. There is a need to challenge persisting per- sustainability strategies use ESG (Environmental 2. engaged in addressing unemployment and the 3. To contribute to insights on how especially spectives on sustainable markets and consumption Social and Governance) information to inform global skills gap towards creating sustainable small companies can learn from one another, and as relying on individual demand by making visible their investment decisions. employment and enterprise. shorten the step from unsustainable to sustainable the various connections between our (un)sustain- 2. A conviction that allocation of financial practices. able way of consuming and how markets and Serafim Agrogiannis has a MBA with resources to the most sustainable alternatives is a food practices are constructed. specialization in Accounting and Auditing and a key component of transition to a more sustainable Enrico Fontana has a BA from Bocconi To bring new perspectives to green con- M.Sc. in Project Management and Operational economy. University in Milan, an MBA from McGill University 3. sumption and how it can be seen as a result of Development and six years full time working for MaxMara 3. To provide a more detailed understanding of both socio-material actors’ efforts to capab- Fashion Group. 1. It focuses on critical organizational compe- the enabling and hindering structures and analyti- alize consumers, as well as the consumers’ own tences affecting the deployment of low-carbon cal processes in the everyday work of institutional 1. I am investigating the strategic approach of adjustments of these initiatives to the practices of supply chain management practices. investors, in considering sustainability. companies along RMG (Ready Made Garment) everyday life. supply chains to meet the expectations of their 2. Personally imbued values in tandem with a networks of stakeholders from a CSR perspective Jennie Perzon has a Master of Business desire to contribute towards a greener and more in different geographical contexts. Law and a Master of Business Administration from sustainable society as well as previous practical

24 25 Misum can strengthen Sweden’s competitiveness Financial statement 2015 in the Green Race

These challenging questions form the founda- Income and expenditure tion on which Misum was established as a center of excellence for sustainable markets. Misum’s Opening balance 0 mission is to conduct demand-driven research and education in collaboration with other stake- Income expenditure holders to contribute to a sustainable world and to strengthen Sweden’s competitiveness in the Acquired funds in 2015 7 098 528 3% Green Race. Misum has a highly important role in 19% Other income 10 000 this matter, which sets high demands on efficient 25% cooperation with companies, politicians, opinion Expenditure makers, consumers and investors. On behalf of Misum’s board, I would like to Center 1 210 951 ur resource-constrained world is facing thank all those who have contributed to making Research 2 674 752 unprecedented challenges. A growing Misum’s first year in operation a fantastic one. population and urbanization are indis- Let me also express my deepest gratitude to the Education 630 971 O 10% putable trends that are putting pressure on our founding organizations Mistra and SSE and to Outreach 1 569 393 natural resources. We must find ways to sustain Misum’s management and staff for their remark- 43% economic growth and reduce poverty while at the able work in building the foundation for Misum’s External partnerships 212 930 same time improve efficiency in use of resources future work. and refuce greenhouse gasemissions. I feel confident that Misum will give a substan- Ending balance 809 531 In 2015, these challenges have been defined by tial contribution to the achievement of sustainable Center Outreach the UN and its member states through the global development. Nonetheless, significant work still Research External Partnership goals for sustainable development (the Sustainable remains to be done. The futura agenda to create Development Goals) and the COP21 climate competitive and sustainable markets will require a Education agreement. These goals and this agreement is great commitment from all parties involved. now being translated to national goals, plans for implementation and supporting legislation. The global markets will under these circum- Björn Stigson stances demand more resource efficient and less Chairman of the Misum board Remaining funds from MistrA polluting products, services and systems. This has spurred a Green Race between countries and Mistra has granted Misum SEK 55 million for the period companies aiming to be the leading suppliers of 2015–2019. these solutions. Countries striving to win this race will need to transform their economies towards 2015 resource efficiency and reduced pollution, as well Acquired funds in 2015 7 098 528 as build knowledge, skills and volume to support strong exports. The current frontrunner in the race To ensure international and business relevancy, Misum features an international board with members drawn from both academia and Remaining funds from Mistra 47 901 472 is China, investing far more than any other country the business community. in this critical transformation. The board consists of: Björn Stigson, Senior Advisor and The markets’ role and ability to influence former President of the World Business Council for Sustainable Development, Lisa Emelia Svensson, Sweden’s Ambassador consumer patterns, investments and financing of for Ocean, Seas & Fresh Water, Lars Strannegård, Dean and sustainable development will be of central impor- Professor at the Stockholm School of Economics, Lucia A. Reisch, Professor for intercultural consumer behaviour at Copenhagen tance. In this respect, our main questions concern Business School, Alexandra Mörner, Chairman of Axfoundation, what a market can do and what a market can’t do Egil Myklebust, Former Chairman of the SAS Group and the and what legislation is needed to support the mar- Confederation of Norwegian Enterprise, Helen Mountford, Programme Director of the New Climate Economy and Director of kets’ function to drive decision-making and action Economics at World Resources Institute. by business, consumers and investors.

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