Transforming the economy for the Anthropocene: 7 fundamental lessons for today’s students and tomorrow’s leaders
How can we rethink our economic systems and the role of businesses within planetary boundaries? This is the question underlying François Gemenne’s fundamental course on global issues, which had its introductory lecture on August 29. For this 2024 academic year, the first class for the new students of the Grande École – Master in Management (L3) was a call to raise awareness about individual and collective responsibilities in the face of the most pressing climate, ecological, economic, and social challenges. François Gemenne also proposes levers to drive change.
Professor of Economics at HEC Paris and Academic Director of the Master in Sustainability and Social Innovation, HEC Paris, François Gemenne is also a lead author of the 6th IPCC report.
His course, offered to all students of the Grande École as part of the Engagement Pathway, is at the heart of societal questions regarding the transformation of our economic models and their political foundations. By addressing issues such as climate, biodiversity, migration, growth, justice, global governance, and climate change adaptation policies, this teaching aims to provide a framework for thought and action for students before they embark on their fundamental management courses, which are themselves influenced by these challenges. It offers tools to explore how the economy and businesses can adapt to these transformations.
« Not only will your generation be confronted with the consequences of climate change, but you will also bear the responsibility of addressing these challenges, as we are racing against time. This task may appear monumental and overwhelming, which understandably can lead to anxiety. We are all acutely aware of this here at HEC. The objective of this course is to equip you with the necessary tools to tackle these pressing issues. »
Here are the main topics he covered during his conference on August 29, 2024, in the honor hall of the HEC campus.
The Anthropocene as a framework for reflection
Although officially rejected in March 2024 by a committee of researchers in geology and stratigraphy as a new official epoch in the Earth's timeline, the Anthropocene is a concept that signifies a new geological era marked by the significant impact of human activities on the planet. For François Gemenne, beyond the theoretical framework, the Anthropocene is a tangible reality that alters the way we must approach the economy.
He argues that this geological era should serve as a call to collective action, encouraging international cooperation, technological innovation, and strengthened global governance. He emphasized the urgency of rethinking our economic systems to make them more resilient in the face of upcoming ecological crises. The goal is to move towards a regenerative development model, where the economy operates in harmony with nature rather than against it.
Embracing the profound transformation of the economy as an opportunity
For François Gemenne, ecological transition cannot be satisfied with mere minor adjustments. He explained that the current environmental crises—from climate change to biodiversity loss—require a complete overhaul of global economic systems. This means moving beyond superficial reforms and considering a radical transformation of the modes of production, consumption, and distribution of wealth. This transition should not be viewed as a constraint, but rather as an opportunity to rethink the economy in a way that makes it more resilient, inclusive, and regenerative.
The responsibility of businesses beyond CSR
Gemenne emphasized the central role that businesses must play in the transition to a sustainable economy, noting that the mere pursuit of profit can no longer be the sole objective. He called for a reinvention of capitalism, in which companies fully integrate environmental and social imperatives into their strategies and business models.
For François Gemenne, corporate responsibility extends beyond merely reducing carbon footprints or adopting superficial CSR (Corporate Social Responsibility) policies; it entails a profound transformation of their operations, supply chains, and relationships with stakeholders.
Migration and economic growth
For François Gemenne, migratory movements, often viewed negatively, should actually be seen as a driver of economic dynamism and innovation. In light of the impacts of ecological crises, many populations will be compelled to migrate.
He emphasized that migration is not only a consequence of climate change but can also serve as an adaptive response. He advocated for reimagined migration policies that allow economies to harness the potential of migrants, thereby supporting sustainable growth.
Climate justice
François Gemenne stressed the disproportionate impacts of climate change, which primarily affect the most vulnerable countries, often those that have contributed the least to greenhouse gas emissions. He advocated for an equitable distribution of responsibilities, calling on industrialized nations to strengthen their efforts to support developing countries through financial and technical measures.
He also highlighted that climate justice encompasses internal inequalities, where the most marginalized populations are often the most exposed to environmental risks. A systemic transformation of public policies is therefore necessary to ensure a just transition that takes into account both social and environmental dimensions.
Students and future leaders as agents of change
Addressing the students as future leaders, François Gemenne emphasized the crucial role of business leaders in the transition to a sustainable economy, urging them to adopt purposed leadership that is aware of climate and social issues. He called for leaders capable of rethinking current economic models and adopting innovative approaches that take ecological and social imperatives into account.
He encouraged HEC students to actively engage in the ecological transition today, without waiting to hold positions of power to make an impact. Joining or launching sustainability-focused entrepreneurial projects, influencing their companies during internships or early professional experiences, and participating in citizen movements: this proactive approach, he asserted, is essential to driving change.