It owned the biggest point sources of the nation's growing carbon dioxide emissions. Due to incredible economic development, the greenhouse gases emissions of Ireland were consistently climbing. The scenario was clearly untenable. In March 2008, ESB's chief executive Padraig McManus made the startling announcement the company would become a net-zero carbon emitter by 2035, and would stay competitive. Under his leadership, ESB was going to lead the way in slowing the increase of Ireland's GHG emissions.
His target would make ESB the world's first carbon neutral electric utility. This strategy presented several significant dangers: 1) Financial risk - the €22 billion capital investment had to succeed. 2) Technological and environmental hazards - the strategic framework relied on clean coal technology, still being developed. 3) Credibility threat - What if ESB wasn't able to attain its aim? 4) Stakeholder threat - Landowners, concerned over well-being, environment and property costs, were prepared to oppose the wind farms. McManus was not unconscious of the risks, and he also understood that high performing leaders consistently take risks even while confronting dilemmas including: Could an electric utility attain a zero carbon footprint and stay competitive? Can an answerable leader risk putting in danger the recent and future well-being of his corporation, the environment, and his nation? By affecting Irish, and perhaps European, climate policy could he use his leadership? The case provides a chance for a discussion on responsible direction. It was written for use in senior executive and MBA programs. 2) What types of hazards can responsible leaders undertake? 3) How can responsible leaders create value for their investors and stakeholders? 4) Can the leader of small European electric utility influence the entire European electric utility sector?
PLAYING TO WIN LEADERSHIP AND SUSTAINABILITY AT ESB ELECTRIC UTILITY a case study solution
PUBLICATION DATE: July 05, 2010 PRODUCT #: IMD532-HCB-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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