Transcript Slide 1

Business and Sustainable
Development – The Green
Race is on
Björn Stigson, Former President of WBCSD
Professor at University of Gothenburg School of Business, Economics and Law,
Honorary Doctor’s Day, Malardalens Hogskola, Sweden, 8 May, 2012
WBCSD 2012
Coalition of some 200 leading companies.
Market capitalization: 6,000 BUSD; 13 M employees
Malardalens, May 2012
The Regional Network Today
61 Partner Organizations
•
NHO
(Norway)
Business
Europe
2011
Excel Partnership
(Canada)
BCSD
United Kingdom
RBF (Poland)
respACT BCSD
Austria
Danish
BCSD
econsense
(Germany)
EpE
(France)
United States
BCSD
FFA
(Spain)
CGLI
(Canada/USA)
BCSD
Hungary
FE
BCSD Spain
BCSD Mexico
CentraRSE
Guatemala
uniRSE
(Nicaragua)
SumaRSE (Panama)
Curaçao BCSD
AED
(Costa Rica)
BCSD Colombia
BCSD
Croatia
BCSD Bolivia
BCSD
Ecuador
APEQUE
(Algeria)
BCSD
Zimbabwe
BCSD
Argentina
DERES
(Uruguay)
BCSD
UAE
BCSD
Taiwan
China
BCSD
BEC
(Hong Kong)
BCSD
Pakistan
BCSD
Sri Lanka
BCSD
Paraguay
FEMA
BCSD Mozambique
NBI
(South Africa)
Nippon
Keidanren
(Japan)
CII
(India)
AEEC
(Egypt)
BCSD Brazil
Peru
2021
Acción RSE
(Chile)
Maala
Israel
SEV-BCSD
Greece
BCSD
Mongolia
BCSD
Kazakhstan
BCSD
Turkey
BCSD
Portugal
BCSD
Honduras
BCSD El Salvador
Korea
BCSD
Vernadsky
Foundation
(Russia)
Vietnam
BCSD
TERI
BCSD India
BCSD
Thailand
PBE (Philippines)
Indonesian
BCSD
BCA (Australia)
BCSD
Malaysia
New
Zealand
BCSD
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Malardalens, May 2012
Globescan/SustainAbility Survey Results 2011
WBCSD expected to play most significant role in advancing sustainability in next five years,
after UNEP and ahead of WWF.
Major (4+5)
UN Environment Programme (UNEP)
Minor (1+2)
47
World Business Council for Sustainable Development (WBCSD)
World Wildlife Fund for Nature (WWF)
World Economic Forum (WEF)
29
World Resources Institute (WRI)
29
United Nations Global Compact (UNGC)
28
Business for Social Responsibility (BSR)
40
30
39
33
18
International Business Leaders Forum (IBLF)
18
14
Malardalens, May 2012
19
24
23
29
31
39
27
35
32
35
38
33
44
30
26
47
54
4
6
5
7
26
37
21
Clinton Global Initiative (CGI)
DK/NA
30
33
International Union for Conservation of Nature (IUCN)
International Chamber of Commerce (ICC)
Neutral (3)
6
7
5
6
5
5
6
The Future Society: A growth story
World population (in Billions): 1950-2050
2050= 9.2 billion
10
9
8
+33%
7
2010= 6.9 billion
6
85%
5
4
3
2
Population in less developed countries
85%
Population in more developed countries
15%
1
0
1950
1960
1970
1980
1990
2000
2010
2020
Malardalens, May 2012
2030
2040
15%
2050
Source: United Nations Population
Division, World Population
Prospects: The 2006 Revision.
Development: The Poverty Challenge
Income poverty:
• Over 2 billion people live on less than $2/day
Energy poverty:
• 1.6 billion people today without access to electricity
Mobility poverty:
• 900 million people without access to transport
Water poverty:
• 1.8 million deaths per year due to lack of sanitation, poor hygiene
and unsafe drinking water.
Malardalens, May 2012
Shifting Fortunes
% Share of GDP
* At purchasing-power parity
Emerging economies
Developed economies
80
40
20
1913
1950
2005
2025
Emerging economies > 50% of global GDP and trend will continue
Malardalens, May 2012
0
Source: Angus Maddison, OECD; IMF
From The Economist print edition.
“Wrestling for influence.” July 3rd 2008.
60
Urbanization
50% urban in 2010: 3 billion
70% urban in 2050: 6 billion
Malardalens, May 2012
Shifting demographics
A largely aging world
The cost of growing old
Total Age-related Spending in selected countries
Source: UN population prospects, 2008
% GDP
2010
2020
2030
2040
2050
US
10.8
12.5
15.1
17.1
18.5
France
24.9
26.5
29.1
31.0
31.9
Germany
20.0
25.1
27.8
Greece
18.6
21.4
26.6
32.6
36.6
Sweden
21.6
23.0
25.2
26.8
27.4
Japan
18.8
20.8
22.1
24.4
26.7
China
4.4
4.9
5.5
6.3
7.0
Indonesia
2.2
2.7
3.2
3.9
4.7
India
2.6
3.2
3.4
3.2
2.7
Brazil
13.6
14.4
17.0
21.3
25.9
Malardalens, May 2012
22.0
Source: S&P’s Global Aging 2010: An
Irreversible Truth
29.5
A World with limits in transition to sustainability
Implementation
Governance
Environment
Economy
Society
Malardalens, May 2012
The Green Race is on
• “The Green Race is on” between countries to transform to low
carbon economies and to become the leading supplier of resource
efficient technologies & solutions
• If you want to win:
o
Transform your home market to build domestic demand,
competences and scale for exports
Malardalens, May 2012
The Green Race is on
China
• About to become the leader in the Green Race
• Key component of 12th 5-Year Plan (2011-2015)
• Renewable energy investment:
o No. 1 rank globally
Malardalens, May 2012
The Green Race is on
Korea
• “1 of 5 Green Powerhouses globally”
• Largest share of economic stimulus devoted to
“green” sector (80%)
• GGGI – Global Green Growth Institute
Malardalens, May 2012
The Green Race is on
Japan
• Most energy efficient economy
• Has a good technology platform for green
solutions
Malardalens, May 2012
The Green Race is on
India
• Supplier of low cost solutions based on domestic
demand from a large, poor population
• 35 USD PC tablets launched Oct 2011
Malardalens, May 2012
The Green Race is on
EU
• Market leader today on green technology
exports (35% market share)
• 300% increase in R&D for green technologies in
2009
• Transformation of the internal market?
People’s resistance to change and facing up to
realities
- Greece
- Spain
Malardalens, May 2012
The Green Race is on
US
•
•
•
•
Mobilizing the US innovation capability?
Transformation of the home market?
Political deadlock – very inward looking
“The Second Sputnik Moment”
– Stephen Chu
Malardalens, May 2012
Consequences for Global Business
• Availability of resources will be more limited and more expensive
• Pollution will carry a price
o CO2
o SOx
o NOx
o Discharge to water
• Resource efficient, low-polluting solutions will be strategic priorities
for companies
o A condition for staying in business
• Measurement, reporting and verification of company sustainability
performance will be required by governments, financial markets and
consumers
Malardalens, May 2012
WBCSD work program
Focus Areas
The Business Role
Energy and
Climate
Sector
Projects
- Water
- Buildings
- Forest Products
- Cement
- Electricity
Utilities
- Tires
- Mobility
- Mining
- SDMI
• Urban Infrastructure
• Sustainable Consumption
& Value Chains
• Food, water & land-use
Systems Solutions
Malardalens, May 2012
- GHG
Protocol
- Eco Patent
Commons
Capacity
Building
The Business Role Focus Area
“Business cannot succeed in a society that
fails.”
But, what does that mean?
Malardalens, May 2012
Tomorrow’s Leaders Group (2004 – 2005)
“From challenge to opportunity – The Role of Business in
Tomorrow’s Society” 2006
Co-authors: P Polman (P&G) and J Manzoni (BP)
“We believe that the leading global companies of
2020 will be those that provide goods and services
and reach new customers in ways that address
the world’s major challenges – including poverty,
climate change, resource depletion, globalisation
and demographic shifts.”
A Manifesto for Tomorrow’s Global Business
Malardalens, May 2012
WBCSD Vision 2050
2008 - 2010
A platform for dialogue about the
role of business in a resource &
carbon constrained world.
Vision 2050: 9 Billion people, living
well, within limits of the planet
Malardalens, May 2012
Reaching Vision 2050: Two Mega Changes for
Success, Two Innovation Challenges for the World
Human Development Index (HDI)
Malardalens, May 2012
Source: GFN / UNDP
Vision 2050 Pathway: 9 elements
The pathway to Vision 2050
2050
Malardalens, May 2012
TODAY
Business Opportunities in Vision 2050
Building &
transforming…
a. Cities
b. Infrastructure
c. Livelihoods & lifestyles
Improving
biocapacity &
managing
ecosystems
Malardalens, May 2012
Helping change
happen
WBCSD 2012
• “Vision 2050”
• “Changing Pace”
– Public policies to scale and accelerate business action towards
Vision 2050
•
“Commitments to Actions”
– Actions that Business and companies are willing to commit to
Malardalens, May 2012
WBCSD work program
Focus Areas
The Business Role
Energy and
Climate
Sector
Projects
- Water
- Buildings
- Forest Products
- Cement
- Electricity
Utilities
- Tires
- Mobility
- Mining
- SDMI
• Urban Infrastructure
• Sustainable Consumption
& Value Chains
• Food, water & land-use
Systems Solutions
Malardalens, May 2012
- GHG
Protocol
- Eco Patent
Commons
Capacity
Building
Energy & Climate today
• The future energy system and energy mix post
Fukushima?
• Overriding theme:
- Electrification of the energy system
• Specific issues:
• Nuclear?
• More renewables and gas
• More distributed electricity generation
• Focus on energy efficiency
Malardalens, May 2012
The Growing Importance of Energy Efficiency
SOURCE: IEA WEO 2009
Total(2030) = 13840 MT
Efficiency= 57%
Malardalens, May 2012
Influencing
consumption
Energy and Climate today
Many critical systems solutions/trade offs remain to be
solved (“Nexus” problems)
• - Energy
- Food
- Water
• Urban infrastructure – Buildings
―Electricity generation
- Land use
– Land transport
Malardalens, May 2012
WBCSD work program
Focus Areas
The Business Role
Energy and
Climate
Sector
Projects
- Water
- Buildings
- Forest Products
- Cement
- Electricity
Utilities
- Tires
- Mobility
- Mining
- SDMI
• Urban Infrastructure
• Sustainable Consumption
& Value Chains
• Food, water & land-use
Systems Solutions
Malardalens, May 2012
- GHG
Protocol
- Eco Patent
Commons
Capacity
Building
Sector approaches fulfill a multitude of roles
• Platforms to address sector license to operate, innovate and
grow
• Engagement along the entire value chain
• Drivers of a “level playing field” via common standards and data
o GHG Protocols
• Platforms for effective national implementation (NAMAs)
Malardalens, May 2012
Cement Sustainability Initiative (CSI)
• 23 member companies - 10 years of successful collaboration
• Achievements:
o Global database on energy and CO2
o Industry guidelines & company commitments
(emissions, fuels, raw materials, safety management)
Malardalens, May 2012
Forest Solutions
• Forests role in climate change (REDD +)
• Broadening role of the sector:
Bio-energy, biodiversity, water and smart packaging
* REDD+: Reducing Emission from Deforestation and
forest Degradation in developing countries
Malardalens, May 2012
WBCSD work program
Focus Areas
The Business Role
Energy and
Climate
Sector
Projects
- Water
- Buildings
- Forest Products
- Cement
- Electricity
Utilities
- Tires
- Mobility
- Mining
- SDMI
• Urban Infrastructure
• Sustainable Consumption
& Value Chains
• Food, water & land-use
Systems Solutions
Malardalens, May 2012
- GHG
Protocol
- Eco Patent
Commons
Capacity
Building
WBCSD work program
Focus Areas
The Business Role
Energy and
Climate
Sector
Projects
- Water
- Buildings
- Forest Products
- Cement
- Electricity
Utilities
- Tires
- Mobility
- Mining
- SDMI
• Urban Infrastructure
• Sustainable Consumption
& Value Chains
• Food, water & land-use
Systems Solutions
Malardalens, May 2012
- GHG
Protocol
- Eco Patent
Commons
Capacity
Building
A World with limits in transition to sustainability
Implementation
Governance
Environment
Economy
Society
Malardalens, May 2012
The Rio Decades: 1992 - 2012
Changing Roles
Rio 1992:
• A bipolar world
“Governments and NGOs”
Rio + 5, 1997:
• A tripartite world
• Governments, Business and Civil Society
Johannesburg 2002:
Business: A provider and implementer of solutions and actions
Rio + 20, 2012
Business: Ahead of governments in driving change and actions
Malardalens, May 2012
New Public Private Partnerships needed
• Between governments and business
o Both globally and nationally
o Business has a major role to play as a solutions provider
• Business to business
o Cooperation within industry sectors across country borders will grow in
importance
o Between companies and WBCSD as a platform to jointly address green
growth and sustainability
• With civil society
o To establish trust for difficult trade offs and transformations
•
With academia
o To build capacity for implementation
Malardalens, May 2012
Business cannot succeed
in a society that fails!
Malardalens, May 2012