IMD-4-0302 © 2009
Kohlrieser, George; Szekely, Francisco ; Coughlan, Sophie
In 2007, the Irish electric utility, Electricity Supply Board (ESB) – 95% freely owned-, contributed 15% of Ireland’s greenhouse gas emissions. It possessed the largest point sources of the nation’s increasing carbon dioxide emissions. As a result of economic development that is outstanding, Ireland’s greenhouse gases emissions were constantly increasing. The scenario was certainly unsound. In the month of March 2008, ESB’s chief executive Padraig McManus would stay competitive, and made the startling announcement the firm would become a netzero carbon emitter by 2035. Under his leadership, ESB was going to direct the way in slowing the increase of Ireland’s GHG emissions.
His objective would make ESB the world’s first carbon-neutral electric utility. This strategy presented several significant hazards: 1) Financial risk - the €22 billion capital investment had to succeed. 2) Technological and environmental dangers - the tactical framework relied on clean coal technology, still being developed. 3) Credibility risk - What if ESB was not capable to attain its aim? 4) Stakeholder hazard - Landowners, concerned over well-being, environment and property costs, were prepared to fight the wind farms. McManus was not unconscious of the risks, and he also understood that high performing leaders always take threats even while confronting dilemmas for example: Could an electric utility reach a zero carbon footprint and stay competitive? Can a leader that is responsible risk endangering the present and future well being of the environment, his company, and his nation? Could he use his leadership by determining Irish, and maybe European, climate policy? The case provides the opportunity for a debate on direction that is responsible. It was written for use in MBA programs and senior executive. 2) What types of threats can be accountable for leaders undertaking? 3) How can liable leaders generate value for their shareholders and stakeholders? 4) Can the principal of little European electric utility affect the whole European electric utility sector? Won the 2011 ecch Case Award in the inaugural case writing competition “Hot Topic” category “ Renewable and Sustainable Energy, Technology and Development.”
Playing To Win Leadership And Sustainability At ESB Electric Utility case study solution
Subjects: Energy Sector; High Performance Leadership; Social Responsibility; Sustainability; Leadership
Settings: Ireland ; Energy; Electric energy ; 7,870 employees; Profit after taxes 273 million Euro (2008) ; 2007-2010
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