Turning existential challenges into economic opportunity
by Volker Kuntzsch. Chief Executive Officer, Cawthron Institute
Turning existential challenges into economic opportunity
We stand at a critical crossroads. The geopolitical landscape is shifting beneath our feet, global tensions are escalating, and climate change and biodiversity loss threaten our economic foundations, if not our very existence. New Zealand has an enviable opportunity to turn existential challenges into our greatest economic gain. The question is whether we will do so before it is too late.
Having lived and worked on five continents, I was drawn to New Zealand by its natural beauty and culture over a decade ago. I was also under the assumption that distance from markets had created a unique point of difference and necessitated significant collaboration to tackle challenges and ensure prosperity.
Closer proximity revealed a work in progress. The Aotearoa Circle is certainly proving that with foresight, partnership and innovation, we can create the pathways for turning existential challenges into economic opportunity. Our unique public-private partnership picks up workstreams across economic sectors that require expert insight, scenario analysis and knowledge-based solutions to design appropriate strategies for the future. Our brilliant Rangatahi Advisory Panel provides an intergenerational lens, making it clear to more seasoned managers: business as usual is dead.
Economic growth that ignores our natural capital cannot be sustained. However, we repeatedly hear that a focus on value creation beyond the bottom line delivers limited immediate and tangible returns and fails to satisfy shareholders’ expectations. To me that sounds like an excuse to remain in our comfort zone. We now know that most of our customers around the world expect suppliers to lift their game and comply with growing international climate and sustainability trade measures. The balance sheet needs to change.
We don’t have to wait for everything to be perfect to make progress. Making a step change towards generating sustainable prosperity AND enhancing our most valuable asset, our natural environment, takes no more than the courage to:
- Drive cross-sectoral collaboration: Blue Economy initiatives globally are successful in connecting stakeholders across ocean industries to accelerate innovative solutions. Only recently have we started to reap the benefits of wider ecosystem thinking here.
- Reach out internationally: We need to keep our fingers on the pulse of international trends, ensure awareness of possibilities arising and understand customer expectations to inform our competitive edge. We often underestimate the latter, e.g. New Zealand’s shellfish aquaculture practices are a benchmark for many.
- Think holistically: Assess our environmental impact through a ‘mountain to the sea’ lens, reflecting the connection between activities on land and their effects on the ocean, the lifeblood of our planet, and
- Invest into impactful science and innovation: The level of funds invested in science in New Zealand compares poorly to most other OECD countries. While this does not deter young, world-class scientists from coming to NZ to contribute to cutting edge research and innovation, outcomes and impact could be significantly enhanced with meaningful support from business and government.
There are probably more elements to consider here, but they would only distract from doing what I believe should be second nature to Kiwis:
Trust in collaboration and innovation for sustainable prosperity and act more deliberately to provide a better future for our children and grandchildren in this beautiful country.