Achievement (project outcomes/outputs) 0 5 10 15 20 25 30 35 40 TNA Training Program Master Trainer Training Manuals Project Outputs Target Achieved Achievement (project outcomes/outputs) 0 10 20 30 40 50 60 CD Participants CD Events Institutes New Curricula Participants Participants Project Outcomes Target Achieved -139-
Training Needs Assessment (Demand of TVET Teachers) Training Needs Assessment (Demand of TVET Teachers) Organizations of respondents -IoT Designations of respondents-IoT Educational qualifications of respondents-IoT Aerial Flight Control (7 teachers) 25 teachers Pretrained online platform -140-
Developing Training Frameworks Myanmar and Vietnam Delegates Visited to • Korea Research Institute for Vocational Education & Training - KRIVET • Gyeonggi Mechanical Technical High School • Dong-Ah Meister High School • Sangsuh High School • Harim Co. Ltd Training Needs Assessment-IoT& Aerial Flight Control Technologies Skill Level Definitions: Level-0 Know nothing Level-1 Only know step by step (no practical skill) Know a little Level-2 Can perform practically step by step slowly Know for some extent Level-3 Can perform skillfully as an experienced teacher Know as an experienced teacher Level-4 Can perform as a professional trainer Know as a professional trainer -141-
Training of TVET Teachers in Korea Aerial Flight Control and IoT @ Gyeong-Gi Mechanical Tech School Digital Application in Beauty @ Sangsuh High School Training Manuals Certificates Developing Training Frameworks Framework and Content for Aerial control and IoT Framework and Content for IoT and Automation Technology -142-
Pre-Training / Post Training Survey – IoT Pre-Training / Post Training Survey – Aerial Flight Control Technology -143-
Future Plan for Skill Dissemination • SITE facilitated “Future Technology Lab” for hosting dissemination (November 2024) • Equipped with IoT Toolkit, PLC and Raspberry PI Devices for AI technology. • 20 participants • Training Manual • Curricula Development • Opening New Programs (Pilot) Pre-Training / Post Training Survey- Digital Application in Beauty -144-
Expected Result Indicators Means of Verification Target Remarks Mid-Term Final 1. Strategic and cooperative framework Improvement of TVET support policies reflecting the contents of the 4th IR between Mekong countries and Korea International cooperation plan for TVET in the 4th IR for participating schools Mid-term - Myanmar and Vietnam government’s policy support for nurturing manpower in the 4th IR - Modernization of TVET institutions through improvement of the 4th IR curriculum - Securing 4th IR experts and contribute to the industry growth in the Mekong region Project M & E (as per the approved project) Collaborative Activities with Mekong countries (Upcoming) Name of activity Year Partner origination – Mekong/Rok Key results Remarks if any Project Reflecting Workshop 2024 Cambodia, Laos, Myanmar, Vietnam, ROK Sharing Outcomes IR 4.0 Technology Education Curriculum Sharing 2024/2025 Vietnam, ROK IR 4.0 Initiatives and Knowledge Source Student/Teacher Knowledge Sharing 2025 Cambodia, Laos, Myanmar, Vietnam, ROK Skilled HR Provide information on joint activities with partner Mekong county (wise) and/or RoK and the results -145-
Expected Result Indicators Means of Verification Target Remarks Mid-Term Final 3. Disseminated training programs The number of multiplied TVET managers, the number of multiplied trainings The number of multiplied TVET teachers, the number of multiplied trainings Delivery training results for local school managers Curriculum improvement performance (training opening, curriculum improvement, textbook development, etc.) Delivery training results for local school teachers Development of local training materials Final - Sharing case studies between local schools - Consolidation of partnership between school managers in participating countries (exchange of teachers and students, sharing of equipment, network establishment, etc.) - Active support for training delivered by local teachers Project M & E (as per the approved project) Expected Result Indicators Means of Verification Target Remarks Mid-Term Final 2. Qualified and upskilled TVET personnel Completion Rate of School Managers in Myanmar and Vietnam The completion rate of Myanmar and Vietnam teachers Achievement of the 4th IR-related certificates for Myanmar and Vietnamese teachers - Attendance book and training management record book - Developing an improvement agenda for school manager - Attendance book and training management record book - A copy of the certificate Mid-term - Active support and continuous operation of training for participating manager - Active support and continuous operation of training for participating teachers - Teacher Motivation and Active Self-development Project M & E (as per the approved project) -146-
Thank You Key Challenges Measures to overcome the problem Risk (if any) Remarks Unexpected Political Condition and Change of Industry Demand Government policies and encouragement for initiatives for AIoT/ IIoT are necessary. Industry demand for IoT is still fair due to slow industry growth. Aerial flight control can be only for TVET teacher level. Target Indicators Adjust in the 2nd Year Project Activities Project indicators may impact Due to the government policy for travelling abroad Key Challenges and Measures to Overcome the Problems and Any Associated Risk -147-
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Korean Style Apprenticeship and its response to the advanced Industries Mr. Kim, Min Kyoo (Associate Research Fellow of KRIVET) -149-
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SECTION 01 Find New opporutnities in Advanced Industry Korean Style Apprenticeship and its response to the advanced Industries Dr. Kim, Min-kyoo ([email protected]) -151-
Topic 2 Increasing demand for structural changes in industries at regional and national levels Trends in Korea TVET Development 50 yearsago,Korea built "Korea-Germany Busan VocationalTraining Center(currentlyKorea Polytechnics East Busan Campus)and"ChangwonPolytechnicCollege" (currently Korea Polytechnics ChangwonCampus) with the helpof Germany. 1 2 3 Female employees are working at a ‘Hankuksemiconductor’ factory in Bucheon, GyeonggiProvince, the predecessor of Samsung Semiconductor. It was a time when semiconductors were produced withbasic and simple equipments such as microscopes. 4 5 -152-
Topic 2 Reflecting various demands such as MZ generation, foreign workers, women, middle-aged people, etc MZ generation prefers occupations that are courses linkedtouniversity or higher degrees, suchas public sector/large enterprises/quality startups. MZ generation They arebecoming a key workforce that affect long-term productivity beyondsupplementing industrial manpower according toindustrial fields Career disruption resulting from gender characteristics, such as women's childbirth & men's militaryduty Women Increasing the need of strengthen job competence in high-tech industries Foreign workers Middle-aged People Topic 1 Increasing need for skilled technicians responding to new positions in high-tech industries 1 The Rise of Robotics Technologies such as the evolution of artificial intelligence and the IoT are applied more quickly in companies & schools 2 Higher need to secure skilled technicians in digital and semiconductor fields -153-
Is new occupation development the only alternative? Any other options? The four strategic settings for responding advanced 1 Modernization of existing occupations 2 Development of new occupation & emerging occupation program 3 Development of new corporate-led TVET program (ex. Private autonomous Korea Dual program) 4 Systematization of TVET courses within clusters (ex. Region) SECTION 02 Develop New Occupations and its outcome -154-
Developing New occupation for TVET qualification KRIVET Overseas Case study Nation Case Type a b c d Germany Airbus’ innovation √ √ ABB’s modernization of dual program training √ √ Denmark Establishing a separate career development path for potential talents √ √ Establishment of knowledge sharing center for robot technology and automation √ France Running Jule Verne manufacturing academy √ √ Operating qualification campuses and transportation sector jobs √ Ireland Developing new dual program under the wave of technology changes √ Modernization of occupations in designated technician dual program √ Italy Bosch industry 4.0 human resources development program √ √ Advancement of dual program in advanced manufacturing sector √ √ √ Austraila Simens dual program advanced pilot program √ √ Varley group’s advancement of dual program √ √ USA Optimization of dual program in Oberg Industry √ √ Mechatronics dual program of Festo Didactic √ √ √ Note) a: Modernization of existing occupations, b: Development of new & emerging occupation program, c: development of new corporate-led dual programs (ex. Private autonomous dual programs, etc.), d: Systematization of dual program processes within clusters -155-
No 2016 2017 2018 2019 2020 2021 2022 1 Electronic productionL2 CNC millingprocessingL 3 CNCmillingprocessing L3 CNCmillingprocessingL 3 CNCmillingprocessingL 3 Electronic productionL2 sw developmentL5 2 manualwelding(CO2)L2 Electronic productionL2 ElectronicproductionL2 ElectronicproductionL2 manualwelding(CO2)L2 manualwelding(CO2)L2 Mechanical Element DesignL3 3 sw developmentL4 Quality managementL3 Medical CoordinatorL3 Quality managementL3 QualitymanagementL3 sw developmentL5 CNC millingprocessing L3 4 Cutting processing(Milling) L3 swdevelopmentL5 CNCShelf processingL3 manualwelding(CO2)L2 ElectronicproductionL2 CNC MilingL3 ElectronicproductionL2 5 Cutting processing(Shelf)L3 Medical CoordinatorL3 Quality managementL3 medical careL2 Medical CoordinatorL3 Quality managementL3 Electronicdevice Hardware Development L3 6 Automobile maintenanceL2 CNCShelf processingL3 sw developmentL5 Medical CoordinatorL3 swdevelopmentL5 medical careL2 manual welding(CO2)L2 7 Double shot moldingL3 Electric ConstructionL2 manual welding(CO2)L2 Mechanical Element DesignL3 medical careL2 MechanicalElement DesignL3 ElectronicproductionL4 8 socialworkerL3 manualwelding(CO2)L2 medicalcareL2 CNCShelf processingL3 Production managementL3 Production managementL3 HotelFoodandbeverage serviceL3 9 salesL3 e-BisinessL3 sw developmentL3 sw developmentL5 socialworkerL3 Medical CoordinatorL3 Food and beverage serviceL3 10 MechanicalElement DesignL3 medicalcareL2 Automobile maintenanceL2 swdevelopmentL3 Automobile maintenanceL2 socialworkerL3 swdevelopmentL3 11 sw developmentL3 sw developmentL3 Electronic device HardwareDevelopment L3 Electronic device HardwareDevelopment L3 MechanicalElement DesignL3 sw developmentL3 Assembly devicesHotelL3 12 Pressmold manufacturinL3 Food and beverage serviceL3 social workerL3 Automobile maintenanceL2 manualwelding(CO2)L4 MarketingStrategyL5 Tax,accounting managementL3 13 Medical CoordinatorL3 Automobile maintenanceL2 MechanicalElement DesignL3 Foodandbeverage serviceL3 CNCShelf processingL3 Electronic device Hardware Development L3 Automobile maintenanceL2 14 Project managementL3 salesL3 Production managementL3 Production managementL3 e-Business L3 Food and beverage serviceL3 Production managementL3 15 cranecontrolL2 Electronic device Hardware Development L3 Tax,accounting managementL2 Assembly devicesHotelL3 ElectricConstructionL2 Automobile maintenanceL2 Manufacturing Automatic control deviceL3 <Table> Top 15 Korea Dual program by Year (Based on participants) Trends in Korea Dual program Development Total Activated Trends in Korea Dual program Development <Table> Trends of number of Korea Dual Qualification -156-
Outcomes APPRENTICESHIP STUDENT CAREERPASS Finding and Matching with company 3rd school year OJT 2nd 3 day per week 2nd school year OJT 1st 2day per week College Apprentic eship Free of Charge Techniti on as Full-time worker Meister Expected a rise in demand within the next 5 years Expected a fall in demand within the next 5 years Levelof qualification Future Demand forecast for Korea Dual program ※ Based on results of the demand survey for the Korea Dual Program Training Center (KRIVET survey in August) SW Development_L5(18 institutions), sw development_L3(11 institutions), Quality management_L3(6 institutions), Mechanical Element Design_L3(5 institutions), Semiconductor Equipment_L5(5 institutions), Production management_L3(5 institutions), Electronic device Hardware Development _L3(5 institutions), CNC Milling Processing_L3(4 institutions), Structural analysis_L4(3 institutions), Ship equipment design _ L3 ( 3 institutions ) , Embedded SW development_L5(3 institutions), Manufacturing Automatic control device_L3(3 institutions), Electric Construction_L2(3 institutions), Electronic device Hardware Development _L5(3 institutions) Mechanical Element Design_L3(4 institutions), manual welding(CO2 welding)_L2(4institutions), Quality management_L3(4institutions), CNC Milling processing_L3(3 institutions), CNCShelf processing_L3(3 institutions), machinery assembly_L2(3 institutions), Assembly devices Hotel_L3(3 institutions), Milling processing_L2(3 institutions), Automobile maintenance_L2(3 institutions), Electronic production_L2(3 institutions) Demand is expected to rise in high-tech manufacturing industries related to 'development' such as SW Development, SemiconductorEquipment,Electronic Device, Hardware and Automatic Control Devices. Includes a large number of highly skilled courses above L4 Demand is expected to fall in 'production' manufacturing sector such as manual welding, CNC and assembly, processing or maintenance. L2 or L3 high school/college level Qualification -157-
Outcomes(Case Study) Outcomes(Case Study) -158-
Outcomes(National Statics) Seoul Busan Daegu Inchoen Gwangju Daejeon Ulsan Sejong Kyungki Kangwon Chungbook Chungnam Jeonbook Jeonnam Kyungbook Kyungnam School Total Emplo yment TOTAL Employment Rate Apprenticeship General Vocational Emp Gradu Emp Rate Emp Gradu Emp Rate Outcomes(Case Study) -159-
Restructuring NCS, and Qualfication system SECTION 03 Make TVET more attractive -160-
Expanding a global network for qualifications in new occupation category As the high need for collaboration in the development and utilization of HR by overseas branch offices as well as domestic, new occupation fields require support and attention at governmental level Restructuring NCS, and Qualfication system As Is To Be Korea Korea In many cases, NCS itself become anew qualification, so the specificity of theKorea Dual programqualification may not be reflected. ASEAN ASEAN It is necessary to strike an appropriate balance between the two systems, and the qualification system is expected to contribute to this. Restructuringand Developing standard of TVET program Secuting andDevelopingqualifedTeachers Leading the development of a national qualification system that meets the industrial reality of ASEAN Benchmark TVET systemin Advancedcountries ASEANa’s industrial -based needsforskilledworkers Minimize trial and error in the initial implementation process through benchmarking of overseas cases Development of a design for qualifications that meet the parallel reality of work and learning in Korean context -161-
Expanding a global network for qualifications in new occupation category As the high need for collaboration in the development and utilization of HR by overseas branch offices as well as domestic, new occupation fields require support and attention at governmental level As Is To Be Student & Faculty Exchange Issuing globally recognized certificatie for skills of EAS program Providing work experiece for EAS participants -162-
Innovative Program for Newly Appointed Malaysian Tvet Institution Directors Under Department of Polytecnic and Community College Education(DPCCE) Ahmad Arman Bin Nor Anuar (Director of Hulu Selangor Community College) -163-
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AHMAD ARMAN NOR ANUAR HULU SELANGOR COMMUNITY COLLEGE DEPARTMENT OF POLYTECHNIC AND COMMUNITY COLLEGE EDUCATION (DPCCE) MINISTRY OF HIGHER EDUCATION MALAYSIA -165-
As a developing country, Malaysia is actively empowering the Technical and Vocational Education and Training (TVET) system to meet the needs of various industries 01 However, Malaysia still faces challenges in establishing TVET as the main option for education in the country 02 To ensure that Malaysia implements TVET effectively, DPCCE needs to create a sustainable ecosystem in tandem with industry 03 The success of the TVET ecosystem depends on close cooperation and industry-driven initiatives, encompassing technology and knowledge sharing, practical experience, intensive training of instructors and industrial training of students 04 -166-
Based on these facts as well, DPCCE participating in collaboration with KRIVET from South Korea 05 The aims of DPCCE are to improve the quality of graduates in the technical field and to strengthen the knowledge of TVET institution instructors under DPCCE from time-to- time 06 Hulu Selangor Community College (KKHS), one of the TVET institutions under DPCCE is directly involved in this joint program with KRIVET 07 -167-
DPCCE and KKHS are looking forward to work with KRIVET and Korea Institution to further develop TVET 01 The most compelling motivation to cooperate with KRIVET is when KKHS was invited to do institution program between DPCEE and TVET institution in South Korea 02 That is the starting point to do more cooperative projects with KRIVET and TVET institution in South Korea 03 -168-
DPCCE and KKHS conducting a meeting with KRIVET to start the collaboration with them. This activity provides an outline of the TVET in South Korea which is covers its development, implementation and other issues 04 KKHS is committed to developing and enhancing the TVET education systems through the quality education and training in TVET. KKHS therefore wish to continue its efforts towards its commitment as stated above and accordingly take this opportunity to do activities with KRIVET 05 The cooperative projects started with on-line meeting as well as on-line discussion with South Korea TVET institutions. The institutions is Yeosu Information Science High School 06 -169-
Number 1 Number 2 Number 3 Number 4 Meanwhile, the visit to Yeosu Information Science High School is more focusing on practical-oriented effective learning of students, facilities of the institutions as well as the observation on quality of teaching and learning process. Besides, DPCCE and KKHS also being exposed to the technology being used in that particular institution The delegation from DPCCE and KKHS visited KRIVET Office and Yeosu Information Science High School. Visiting KRIVET Office exposed DPCCE and KKHS to the management and working environment of TVET in South Korea and the research conducted by KRIVET The relationship between South Korean TVET institutions and the institutions under DPCCE has not stopped DPCCE and KKHS receives return visits from KRIVET and TVET institutions from South Korea in the process of exchanging ideas and expertise. They are invited to visit KKHS. Korean delegation is exposed to the DCEEP system as well as facilities -170-
Number 5 Number 6 Number 7 Both institutions from KRIVET (Yeosu Information Science High School) and DPCCE (KKHS) are still continue on-line program such as teachers dialogue and on-line students’ activity Besides, they also being introduce to the management system conducted by DPCCE to manage TVET institution. Korean delegation also had a meeting and discussion with the higher management of Ministry of Higher Education Malaysia Knowledge sharing among TVET instructors can help them update their current knowledge. They will also be able access a wider range of information, skills and issues. This is the most important progress that need to be sustained, even tough, there is some difficulties and barrier such as technologies, infrastructure and language -171-
Based on visits and observations to TVET institutions in South Korea, many good practices practiced by them can be learned 01 A holistic and wide approach needs to be tackled effectively as well as in the planning process and should be put together before any strategic solution can be considered in order to produce best TVET institutions in Malaysia 02 After all, the impact of corporative project with KRIVET and South Korea TVET institution will greatly affect the long-term strategy of DPCCE and KKHS to initiate any necessary plans that will be made 03 The challenges arise can be overcome by certain manners through the innovation and enhancement of the system through this project. DPCCE and KKHS found out that certain issues can be changed and upgraded 04 -172-
Excellent link between education, training and qualification in TVET systems Excellent activities of promoting globalization of qualification institutions that contribute more responsive and relevant skill development among the teachers as well as the students Excellent industry partnerships established in order to satisfy the needs of local firms rather than to provide broader occupation-specific and transferable skills Excellent training and qualification for work among TVET teachers Korean TVET institutions often see themselves as having a largely provider job-ready recruits for industry Excellent system of curriculum development and provide the qualifications for meeting labor market needs A strong academic and pedagogical preparation among the teachers and also the practical work experience in their field Excellent co-ordination policies among TVET Institution that responsible for TVET policy in order to avoid redundancy issues -173-
Yet implementing this policies may not be so straightforward but the implications of global disruptions for the future of TVET teaching and learning are yet to be fully unpacked, understood and synthesized into an actionable framework 03 Based on the cooperative activity with KRIVET and South Korea TVET institutions, TVET Institution should have the good policies maker and implementer to ensure the relevance of TVET system to current and evolving needs in the world of work 01 KKHS recognizes the crucial role of policies in assuring TVET quality and relevance. These policies and frameworks should be developed to ensure qualified and high-quality TVET staff, including teachers, instructors, trainers, tutors, and others 02 04 A holistic and wide approach needs to be tackled effectively as well as in the planning process and should be put together before any strategic solution can be considered in order to produce best TVET institutions -174-
Therefore, the understanding and implementation of policies are the crucial issues among new directors especially in TVET institutions under DPCCE. Lack of knowledge and training causes this to happen 05 After all, the impact of cooperative project with KRIVET and South Korea TVET institution will greatly affect the long-term strategy of DPCCE to initiate any necessary plans that will be made 06 Therefore, expert policymakers and implementers are needed in TEVT institutions under DPCCE in line with the long-term strategy 07 The challenges arise can be overcome by certain manners through the innovation and enhancement of the system through this project with KRIVET and South Korea TVET institution 08 -175-
DPCCE and KKHS plan to have more new innovative program with KRIVET and TVET institutions in South Korea in order to exposed the new director from DPCCE TVET Institution to the policies and management process 01 Since KRIVET and TVET institutions in South Korea are very good in this matter, DPCCE and KKHS propose to have a new program that focuses to the management of TVET institution rather than a students or teacher oriented program 02 -176-
DPCCE and KKHS plan to have more new innovative program with KRIVET and TVET institutions in South Korea in order to exposed the new director from DPCCE TVET Institution to the policies and management process Since KRIVET and TVET institutions in South Korea are very good in this matter, DPCCE and KKHS propose to have a new program that focuses to the management of TVET institution rather than a students or teachers oriented program Online Training Seminar For TVET Management among the principles and directors both in Malaysia and Korea. This will help a lot in the way to exchange knowledge, skill and new technology Workshop Training for new director under DPCCE by KRIVET to have new skills and perspective of TVET Management as well as TVET Institution Operation Management -177-
Policymakers can attempt to minimize disruptive errors which can result in the failure of policy outcomes to match policy expectations 05 Having more new innovative program with KRIVET and TVET institutions in South Korea will help DPCCE a lot in creating and managing policies and management process 06 As a conclusion, the activities that have been carried out so far between DPCCE and KRIVET is a decent opportunity in the new perspective of TVET education system, which is opening to a new world of TVET education system exchange and development, especially the informative activities that being held 07 It is necessary for DPCCE to review these achievements and share the results in order for the network to further development and also necessary to establish plans for the future based on the achievements activities of the past period 08 The strategy on the future of TVET teaching and learning may be can be focuses on identifying and evaluating the impact of emerging trends on teaching and learning and its implications on preparing TVET teaching staff for the future 01 Besides, assessing the future role of TVET teachers and trainers to develop a framework of essential skills and competencies is also essential 02 Another crucial factor is identifying and disseminating innovative practices in teacher and trainer development. This will help a lot in designing innovation in TVET education system. Education across all levels has been no exception to this requirement 03 Hence, a management policy and its implementation is seen as a crucial agenda in TVET Institution as well in order to achieve all the TVET strategies 04 -178-
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Corporate Transformation & Green Skills towards the Decarbonization of Capitalism Mr. Cho, Sung Ik (Associate Research Fellow of KRIVET) -181-
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I. The Global State We are In, and Heading Towards ⓒ Unsplash License Corporate Transformation & Green Skills towards the Decarbonization of Capitalism SungIk Cho Korean Research Institute for Vocational Education & Training 2024. 2. 7 -183-
Getting worse towards Global Climate Crisis Dismal projections “Global warming will continue to increase in the near term(2021-2040) mainly due to increased cumulative CO2 emissions in nearly all considered scenarios and modelled pathways. In the near term, global warming is more likely than not to reach 1.5℃ even under the very low GHG emission scenario and likely or very likely to exceed 1.5℃ under higher emissions scenarios. … the best estimate of the time when the level of global warming of 1.5℃ is reached lie in the near term” - IPCC(2023), 6th Synthesis Report - Serious warnings “Every year, the negative impacts of climate change become more intense. Every year, they bring more misery and pain to hundreds of millions of people across the globe. Every year, they become more a problem of the here and now, as well as a warning of tougher consequences to come. We are in a climate emergency” - UNEP(2022), Emission Gap Report 2022 - “The window to a credible pathway towards limiting warming to 1.5℃ in 2100 is therefore rapidly closing” - IEA(2023), Credible Pathways to 1.5 ℃ - Climate Change, as we know Global Warming, 1850 to 2025 Global CO2 Emissions (kiloton) Source: The World Meterological Organization(2022) Source: The World Bank data(2023). CO2 emissions(KT) 1990 1995 2000 2005 2010 2015 36 34 32 30 28 26 24 22 35,512,860 (2019) Million -184-
Energy & Industrial Transition for Net-Zero Global GHG emissions by sector in 2019 Source: World Resources Instititute(2022), recited p. 4. ▪ Energy transition from fossil fuel to renewable energy - e.g. GHG emission from ‘Energy’ = 20% ▪ Industrial transition from the fossil fuel-based to the clean energy-based - e.g. GHG emission from ‘Industry’ = 11.6% Is this ‘energy & industrial transition’ sufficient to achieve the Net-Zero economy? II. Why Do Firms Matter for Green Transition? -185-
The Roles Firms Play in Green Transformation Pathways towards a decarbonized economy by Corporate transformation & Energy-Industrial transition ▪ Firms play a role as an Accelerator or a Bottleneck in transition towards a decarbonized economy ▪ Corporate Green Transformation is a necessary condition for green transition, but not the only factor. The Sustainability Dilemma Firms Face ▪ Internalizing ‘environmental costs’ rather than Externalizing E-costs ▪ Exploring a new opportunity for growth in newly created green markets Two challenges for Firms in transition towards a low carbon economy Anti-Green firms Green washers Passive green conformists Green entrepreneurs Four types of firms to tackle Sustainability Dilemma -186-
What Drives Green Corporate Transformation • International, foreign & domestic regulations on carbon reduction • Customers’ demands in supply chains • Financial institutions’& investors’ demands • Firms’ participation in private selfregulation: e.g. RE100 • Entrepreneurial motives to explore a new market opportunity • CEO’s leadership • NGOs’ and social pressures Primary drivers of Firms’ green transformation Source: Cho, et al.(2023) Finance & Investors’ demands (10%) Customers’ demands in supply chain (38%) CEOs’ leadership (14%) Adaptation to foreign regulations (20%) Domestic regulations (10%) Participation in private selfregulation (2%) Entrepreneurial motives to find a new growth opportunity (4%) NOGs & social pressures (2%) III. How Do Firms Improve Environmental Sustainability Capability? -187-
What Firms Do for E-Sustainability ▪ Most firms focus on Energy-related activities ▪ Many firms try to change the ‘business-as-usual’ model into green business practices: e.g., marketing, R&D, & SCM. ▪ E-sustainability activities NOT limited in only energy-related sectors(i.e., reducing carbon emissions, improving energy efficiency, etc.) Source: Cho, et al.(2023) 6 10 8 6 8 12 12 10 4 6 20 10 26 28 24 30 40 24 40 36 44 46 32 36 46 32 30 46 52 42 16 26 24 26 20 20 14 14 4 16 14 8 10 4 2 6 4 6 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100% IMPROVING ENERGY EFFICIENCY REDUCING WASTE AND RECYCLING - PROMOTING TRANSITION TO RENEWABLE ENERGIES MANAGING SUPPLY -CHAIN SUSTAINABILITY SUSTAINABILITY MARKETING GREEN GOODS/SERVICE DEVELOPMENT IMPROVING GREEN ORGANIZATIONAL CULTURE RESPONDING TO CARBON MARKETS DEVELOPING THE NETWORKS OF SOCIETAL STAKEHOLDERS PARTICIPATION IN GREEN POLICY -MAKING Never pratice Rarely practice more or less Usually practice Very actively practice How Firms See E-Sustainability Challenges ▪ Most firms in the rechargeable industry recognize E-sustainability issues (e.g., carbon emission reduction, regulations on carbon emission, customers’ & stakeholders’ demands on E-sustainability, etc.) as No Less Than ‘important’; i.e., 90% of the firms. ▪ No firms see E-sustainability issues as ‘not important’. Firms’ Awareness of E-sustainability 32% 58% 8% 2% Source: Cho, et al.(2023) Very important Important More or less Less important -188-