From East to West Nudging Behaviour

Dr. Glenn Frommer 8 June 2017

ESG Matters IVS 1 Overview • Context

• Case Studies - - West and South Island Lines - The Great Sichuan Earthquake

• Innovating Change

• East Meets West - GPS2.0

• Conclusion

ESG Matters IVS 2 Context

ESG Matters IVS 3 Context

ESG Matters IVS 4 Context

Guardian 7 June 2017 Rare US floods to become the norm if emissions aren't cut, study warns ‘along all of the US coastline, the average risk of a 100-year flood will increase 40-fold by 2050’

ESG Matters IVS 5 Context

• Paris Agreement 2015 – Nationally Determined Contributions

• Sustainable Development Goals

• Sea Level will continue to rise despite any GHG reduction

• Significant environmental threats to our quality of life for centuries

ESG Matters IVS 6 Hong Kong

ESG Matters IVS 7 MTRC Route Map ESG Matters IVS 8 Aerial Ropeway - Ngong Ping 360 ESG Matters IVS 9 NOP 360 - Background • Included as part of the Hong Kong Sustainable Tourism strategy 1999 - Discover Hong Kong 2005 – 2006 - HK Disneyland - Asia World Expo

• Build-Operate-Transfer - Going concern - Evolve from stakeholders concerns - Opportunity to learn from experience

• Construction commenced in December 2003

• Opened 2006 - 1.8 million passengers / yr

ESG Matters IVS 10 Stakeholder Advisory Board

Green Government Groups Departments Designer

Local Secretariat Owner Residents Hong Kong University

Contractors Buddhist Local Community Businesses ESG Matters IVS 11 Stakeholder Advisory Board

• 30 year development plan for Lantau

• Focused on project’s environmental and social issues – co-generation of value

• Clear Terms of Reference and Reporting to Senior Management and press

• Management bonuses connected to performance

• Developed own indicators – Ladder achievement (1 – 4) • 5 Economic • 9 Environmental • 3 Social • 2 Educational • 3 Community

• Achieved 63 out of 84 possible marks

ESG Matters IVS 12 ESG Matters IVS Ngong Ping 360 13 Stakeholder Engagement Photo area Vision Workshops

ESG Matters IVS West and Extensions 14 WIL and SIL Extensions

• Solid business case for extensions - catchment

• Clear economic, social and environmental benefits

• Unique local environments – co-generation of value

• Government not supportive

• Management bonuses connected to performance

• Need to: • Educate Government • Organize and empower stakeholders

ESG Matters IVS 15 Stakeholder Engagement Photo area Vision Workshops

West and South Island Line Extensions ESG Matters IVS 16 WIL and SIL Extensions

ESG Matters IVS 17 WIL and SIL Extensions

ESG Matters IVS 18 WIL and SIL Extensions

Media Briefing Visit by Central & Western District Council Community Liaison Group Meeting

ESG Matters IVS 19 WIL and SIL Extensions

• Improved quality of life and environment

• Clarity on: • Deliverables • Process • KPIs and reporting

• Rewards connected to delivery and performance

ESG Matters IVS 20 The Great Sichuan Earthquake

12 May 2008, Magnitude 8.0

ESG Matters IVS 21 The Great Sichuan Earthquake

• 87,587 people killed. 374,643 injured

• 12.5 million animals killed

• 7,000 schoolrooms collapsed

• 5 million people without housing

ESG Matters Ltd 22 The Great Sichuan Earthquake

ESG Matters IVS 23 The Great Sichuan Earthquake

ESG Matters IVS 24 The Great Sichuan Earthquake

• Redesign public facilities to high seismic standards - Low –level housing - More secure schools - Incorporate water features into urban fabric - Improved bus transport (electric buses)

• Low water usage taps and toilets

• Low energy usage appliances (washers, dryers, air conditioners, TVs, etc.)

• Easy access to farms and animals

• MRV of all utilities (water usage, waste recycling, carbon emissions etc.)

• Feedback loops – community involvement

ESG Matters Ltd 25 The Great Sichuan Earthquake

ESG Matters IVS 26 The Great Sichuan Earthquake

ESG Matters IVS 27 The Great Sichuan Earthquake

• National pride

• Speed and efficiency with which the Chinese government was able to mobilize government agencies, the private sector and the population at large - Organization - 5 year Planning institutions - Clear KPIs - Learning (external and internal) – co-generation of value - Promotions to officials involved

• How other provincial governments and the population at large got involved - Emergency shelter, supplies and work - Regular updates - Celebrating success

ESG Matters Ltd 28 Innovating Change

Ngong Ping 360 WIL and SIL Sichuan Earthquake Higher Purpose √ √ √ Clear organization √ √ √ Active stakeholder √ √ √ involvement Rewards √ √ √ (Success and failures) Sustaining learning √ √ √ and engagement

ESG Matters Ltd 29 Innovating Change - GREAT

Deliverables Achievement Higher Purpose 70 Charging Stations No 3 Filling Stations Clear organization Installation Yes Outcomes No Active stakeholder ? involvement Rewards ? (Success and failures) Sustaining learning and ? engagement - Scalability

ESG Matters Ltd 30 East Meets West • Behavioral change - Make offerings Easy Attractive Social Timely

• Purpose: Renewables fuels too narrow? – inspire behavioral change? Quality of life?

• Organization – Sufficient? Clarity? rewards? Charter? Celebrations?

• Stakeholder involvement, learning and scalability - Customers – Online shopping at charging points – packaging, delivery - Local community involvement at charging points? - University students involvement – Design contests, shopping (VR)? - Cost of renewable fuels – taxation? New business model? - Technology – driverless cars? ESG Matters Ltd 31 GSP2.0 Template

Adaptive

Command and Control

ESG Matters IVS 32 Summary • Context

• Case Studies Hong Kong - Ngong Ping 360 - West and South Island Lines - The Great Sichuan Earthquake

• Innovating Change

• East Meets West - GPS 2.0

• Conclusion - Page 163 of L'atmosphère: météorologie populaire, by Camille Flammarion, 1888.

ESG Matters Ltd 33 From East to West Nudging Behaviour

Thank you

www.esgmatters.dk [email protected]

ESG Matters IVS 34