About project work in the study of sustainable development of countries, regions, cities and companies of the Arctic zone Prof. Sergey Nikonorov Doctor of Economics, Deputy Head of the Environmental Economics Department of the Economics Faculty, Lomonosov Moscow State University; Expert in sustainable development at PORA Expert Center Minsk 2019
Academic work ● Academic work in a modern university today is undergoing significant changes. Classical lectures and seminars are becoming unclaimed by the main student body. The retelling of textbooks and teaching aids is an anachronism and demeans the main most creative part of the student body. Only project work, preferably in real, and not in virtual conditions, can inspire and ignite a modern student. 2
Arctic ● The Arctic, an object for study difficult, but very interesting. There are 11 main elements of a green economy that can be implemented in the Arctic territories. Here it is necessary to work at the juncture of interests and at diametrically opposite positions. For example, the introduction of renewable energy sources (RES) in the Arctic territories. One student finds all the examples “for” and the other “against.” It is important to involve the entire student body in the discussion of this issue with a possible vote at the end. There are very interesting discussions on ecotourism in the Arctic, waste management, water treatment, ecotransport, eco-homes and eco- architecture, etc. 3
Real Projects ● Real Projects in the field of counting and finding information on Sustainable Development Indicators. For example, human capital index (HDI), human happiness index (HPI), ecological footprint, the share of renewable energy sources, the proportion of urban pollution, life satisfaction and other indicators. ● Real Projects that provide an opportunity to calculate the Sustainable Development Index of International companies operating in the Arctic. Companies are ranked according to the “traffic light” principle according to three main blocks: economic indicators; environmental and social indicators. The principle of "traffic light" makes it possible to understand which of the indicators "sags" and is unstable. Green color - sustainability, yellow - transitional, red - unstable. Usually, in the Top Best - companies that have a balanced socio-ecological-economic system of development. 4
Real Projects ● Real Projects that enable students to calculate the Sustainable Development Index of the regions of different Arctic countries. Regions (provinces, etc.) are ranked according to the “traffic light” principle according to three main blocks: socio-economic indicators; environmental and economic; social and environmental indicators. In this work, students are given the opportunity to create a specific project goal - for example, the quality of life of the population. And from it are built up other goals and objectives. Students are also invited to include the institutional factor of development: a balance of interests between society - government - business. 5
Real Projects ● Pros and cons of introducing various elements of the green economy in the regions and cities of the Arctic zone of Russia 6
Real Projects ● Project groups of 3 – 5 people. They speak to government, virtual investors, business representatives and local residents. ● Determination of the place from the socio – ecological and economic position. ● Proof of social, environmental and economic feasibility of construction. ● Definition of all positive and negative externalities. ● Proof of the consistency of Coase's theorem. ● Pareto-efficiency deployment for the project. ● Definition Pigu tax (internalization of externalities). ● Addressing the sustainability and effectiveness of the project. 7
Economist ● All such projects, along with the assessment of environmental and economic efficiency and the solution of specific cases, make it possible to make courses for economists: "Sustainable Development Economics", "Economics and Ecology" and "Environmental Economics" more in demand and competitive, due to the selectivity of these courses. 8
Management and New Course ● For managers, within the following courses: "Environmental Management", "Natural Asset Management", "Project Analysis in Environmental Management" - this is simply vital because it allows you to acquire the competencies and skills that are necessary to be competitive in the transition to a digital economy. ● The new course “ Management of Sustainable Development", currently being developed for managers in the framework of the new curriculum, should incorporate all the best that is in modern scientific and project thinking on the main aspects of sustainable development, green and blue economy. 9
Sustainable development of the Arctic Polar Index is a joint project of the PORA Expert Center and the Environmental Economics Department, Lomonosov Moscow State University The project is aimed at promoting the sustainable development principles in the Russian Arctic Polar Index sustainable development rating 10
Two sustainable development ratings Polar Index Under the inception phase of the project, two independent, although interconnected, sustainable development ratings were designed, one for the Russian Arctic regions, and the Rating of Rating of other for the companies operating there. companies regions Polar Index sustainable development rating 11
Polar Index. Companies Polar Index. Companies Presented on 5 June 2018. First specialized sustainability rating of companies operating in the Russian Arctic. ‘Each company is an important primary contributor to the sustainability of the region it operates in.’ Polar Index sustainable development rating 12
Polar Index. Regions Polar Index. Regions The second rating designed under the project. Presented on 5 September 2018. The rating evaluates sustainability of development in the Russian Arctic at the macro-scale. The rating covers all regions that are administratively part of the Arctic Zone of the Russian Federation. Polar Index sustainable development rating 13
Polar Index of the Barents Region New stage of the Polar Index project: going international. PORA and the MSU Faculty of Economy launch a new sub-project, the Polar Index of the Barents Region. Two ratings were created: • first sustainable development rating of the Barents region provinces ; • sustainable development rating of the companies operating in the Barents region The Barents Euro- Arctic Region is the Europe’s biggest interregional association established on 11 January 1993. Polar Index sustainable development rating 14
Barents Euro-Arctic Region The region encompasses 13 Norwegian, Russian, Finnish and Swedish administrative provinces located in geographical proximity of the Barents Sea. The Barents Region is an important platform for the Euro-Arctic cooperation. It is also a ground for competition over its natural riches. The region is as an arena for innovative business solutions and introduction of cutting- edge methods of extraction and processing of natural resources. Polar Index sustainable development rating 15
Provinces rating calculation methodology The methodology for calculating the Parameters provinces sustainability rating is based on three aggregate parameters as follows: • Human Development Index (UN methodology) Human Environmental Happy Planet Index Development Index Economics Index • Happy Planet Index (updated) • Adjusted Environmental Economics Index Polar Index sustainable development rating 16
Corporate rating calculation methodology The methodology for calculating the sustainability rating of the Barents region business entities is based on three aggregate Parameters parameters as follows: • Financial performance of companies as per the International Financial Reporting International Environmental Corporate social Standards (IFRS) Financial Reporting resource responsibility Standards management • Quality indicators of corporate social responsibility (CSR) performance • Quality indicators of the environmental resource management (ERM) performance Polar Index sustainable development rating 17
Rating Outcomes for Barents Region Provinces Barents Region Provinces Rankings: • Russian provinces: Ranked 3, 4, 6, 9, and 13 • Swedish provinces : Ranked 1 and 2 • Norwegian provinces: Ranked 5, 7 and 8 • Finnish provinces : Ranked 10, 11 and 12 Sustainable development rating Polar Index. Regions 18
Rating Outcomes for Barents Region Companies Barents Region Companies Rankings: • Companies operating in Russia: Ranked 1, 2, 3, 7, 9, 10, 12, 13, and 26 • Companies operating in Norway: Ranked 1, 8, 11, 15, 16, 17, 18, 22, and 23 • Companies operating in Finland: Ranked 5, 6, 20, and 21 • Companies operating in Sweden: Ranked 14, 19, 24, and 25 Sustainable development rating Polar Index. Regions 19
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