Transcript Slide 1

Business and Sustainable Development
– The Green Race is on
Goteborg, November 2010
Björn Stigson
Visiting Professor in Applied Corporate Management
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Agenda
1.
2.
3.
4.
WBCSD
The Sustainable Development Context
The Green Race is On
WBCSD Work Program
2
WBCSD
Coalition of some 200 leading companies
• Market capitalization: 7,000 BUSD
• Total member company employees:13 million
• Global outreach
–
Supplies products and services to half of the world’s
population every day
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WBCSD Membership
11
7 21
16
Europe (EU)
68
North America (NAFTA)
40
Japan
24
Europe (non-EU)
18
Asia (ex-Japan)
16
Latin America
11
Oceania
7
Africa
2
Middle East
1
68
18
24
40
4
Swedish Members
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WBCSD Sectors
Utilities & Power
Oil & Gas
4
4
2111
4 22
Consumer Goods
21
Mining & Metals
Engineering
6
Cement
7
18
8
10
14
Chemicals
Services
11
Tires
11
Forest & Paper Products
10
IT & Telecoms
Auto
Construction
13
Food & Beverages
Healthcare
11
13
11
12
12
14
13
13
12
12
Banks & Insurance
10
21
18
Maritime
Logistics
Media
Retail
Aviation
Trading
Water Services
10
8
7
6
4
4
4
2
2
2
1
1
1
WBCSD Regional Network
Channel to globally disseminate WBCSD’s messages, to
promote implementation of concrete projects on the ground
and to provide input to WBCSD work program
A World in Transition to Sustainability
Environment
Economy
Society
The Future Society: A growth story
World population (in Billions): 1950-2050
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2050= 9.2 billion
9
+33%
8
7
2010= 6.9 billion
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85%
5
4
3
2
Population in less developed countries
85%
Population in more developed countries
15% 15%
1
0
1950
1960
1970
1980
1990
2000
2010
2020
2030
2040
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.
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Urbanization
50% urban in 2010: 3 billion
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The Urbanized Future
70% urban in 2050: 6 billion
2010: 3 billion
70% urban
urban
rural
60% urban
Billions of inhabitants
47% urban
6.4
36% urban
5.0
2.4
2.9
3.2
3.3
2.8
1.3
1970
2000
2030
2050
Source: United Nations, World Urbanization Prospects:
The 2007 Revision
Shifting demographics
A largely aging world
Source: UN population prospects, 2008
The cost of growing old
Age-related spending (as % of
GDP in selected countries)
Source: Standard and Poor’s 2010
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Shifting Fortunes
% Share of GDP
* At purchasing-power parity
Emerging economies
Developed economies
80
40
20
1913
1950
2005
2025
0
Source: Angus Maddison, OECD; IMF
From The Economist print edition.
“Wrestling for influence.” July 3rd 2008.
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Emerging economies > 50% of global GDP and trend will continue
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A World in Transition to Sustainability
Geography
Solutions
Risks and Returns
Mindsets
Environment
Economy
Society
Financial Sector
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The World is Turning Green
“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:
oTransform your home market to build domestic
demand, competences and scale for exports
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The Green Race is On
EU
– Market leader today on green technology
exports (40% market share)
– 300% increase in R&D for green technologies
in 2009
– Transformation of the internal market?
US
– Mobilizing the US innovation capability?
– Transformation of the home market?
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The Green Race is On
China
– About to become the leader in the race
– Key component of next 5-Year Plan (20112015)
– Clean energy investment : No. 1 rank with
21% of the 162 billion USD invested globally
– Taking the lead on solar & wind
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The Green Race is On
Japan
– Most energy efficient economy
– Has a good technology platform for green
solutions
Korea
– Largest share of economic stimulus devoted to
“green” sector (80%)
– Presidential Decree: Green New Job Creation
Plan 2009
– GGGI – Global Green Growth Institute
India
– Supplier of low cost solutions based on domestic
demand from a large, poor population
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WBCSD Work Program
Focus Areas
The Business Role
Energy and
Climate
Projects
- Water
- Buildings
- Forest Products
- Cement
- Electricity
Utilities
- Tires
-Mobility
- Mining
-Eco Patent
Commons
-Maritime
Joint
ventures
• Urban Infrastructure
• Sustainable Value
• Urban
Infrastructure
Chains
• Sustainable Value
Chains
Systems Solutions
- GHG
Protocol
- SDMI
WBCSD Vision 2050
Vision 2050:
A platform for dialogue
about the role of business in
a resource & carbon
constrained world.
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Source: GFN / UNDP
Ecological Footprint (Global Hectares per Person)
Vision 2050:
Living well, within limits of the planet
Human Development Index (HDI)
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Vision 2050 Pathway: 9 elements
The pathway to Vision 2050
TODAY
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Turbulent Teens
The pathway to Vision 2050
TODAY
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Opportunities in Vision 2050
Building &
transforming…
a. Cities
b. Infrastructure
c. Livelihoods & lifestyles
Improving
biocapacity &
managing
ecosystems
Helping change
happen
Size of potential additional sustainability
related business opportunities
Sector
Annual Value in 2050
(US$ trillion at constant
2008 prices)(+/- 50%)
Energy
Forestry
Agriculture
Water
Metals
TOTAL: Natural
Resources
Health and Education
TOTAL
% of projected world
GDP in 2050 (+/-50%)
2.0
0.2
1.2
0.2
0.5
4.1
1.0
0.1
0.6
0.1
0.2
2.0
2.1
6.2
1.0
3.0
PwC estimates drawing on data from IEA, OECD and World Bank
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Follow-up of Vision 2050
 Green Growth / Green Race
– Cooperation with OECD
 Consumption and Lifestyles
 People Matter
– Sustainable Management Institute
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WBCSD Work Program
Focus Areas
The Business Role
Energy and
Climate
Projects
- Water
- Buildings
- Forest Products
- Cement
- Electricity
Utilities
- Tires
-Mobility
- Mining
-Eco Patent
Commons
-Maritime
Joint
ventures
• Urban Infrastructure
• Sustainable Value
• Urban
Infrastructure
Chains
• Sustainable Value
Chains
Systems Solutions
- GHG
Protocol
- SDMI
Development Focus Area
 Focus
– To contribute to a sustainable future for emerging
economies and developing countries
Key Workstreams:
1. National Market Participation
2. Inclusive Business
3. Energy Access Partnerships
(Africa, Asia-Pacific)
Development Focus Area
 “Business & Development”
 Message:
– Business is a key source of
economic growth, employment &
technology
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UN Millennium Development Goals
Summit September 2010
 Workshop: “Accelerating progress towards the MDGs through
Inclusive Business”
 Organized by WBCSD and other leading business
organizations and networks
 UN Private Sector Forum
 UN Secretary-General Ban Ki-moon:
“Business is a primary driver of innovation,
investment and job creation. There is no
longer any doubt that business plays an
integral role in delivering economic and
social progress."
 World Bank President Robert Zoellick:
"The problem of the poor is not the
dominance of markets, but its absence."
Measurement & Reporting
 Measuring Impact Framework
– Helping companies measure
impacts to inform investment
decisions and conversations with
stakeholders
 Forthcoming: summary of impact
measurement methodologies relevant
to business
WBCSD Work Program
Focus Areas
The Business Role
Energy and
Climate
Projects
- Water
- Buildings
- Forest Products
- Cement
- Electricity
Utilities
- Tires
-Mobility
- Mining
-Eco Patent
Commons
-Maritime
Joint
ventures
• Urban Infrastructure
• Sustainable Value
• Urban
Infrastructure
Chains
• Sustainable Value
Chains
Systems Solutions
- GHG
Protocol
- SDMI
COP 15 Copenhagen
Takeaways:
 Copenhagen saw the end of old ways of
intergovernmental negotiations
 The Copenhagen Accord
– A non binding “Letter of Intent”
– But little clarity on how this will be implemented
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The Copenhagen Accord
 Main elements:
– Committed limiting global warming to 2°C
– Encouraged pledges of cuts from
developed countries and actions from
developing countries
– Agreed to transparent reporting of actions
– Proposed new mechanisms to manage
finance, technology and REDD+
• Committed $30 to 2012
• 2nd phase - 100 bln$ annually by 2020
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UNFCCC COP 16 Cancun
 Little urgency in UN negotiations postCopenhagen
 Expectations for COP16 Cancun played down
 Major obstacles:
– Lack of US domestic legislation
– Country commitments to further reductions?
– Reporting and verification principles?
– Technology transfer and funding to developing
countries?
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Climate negotiations and business
 Governments recognize necessity for business input
 WBCSD study for the EU focused on improving this
interface
– Need to build an informal track for engagement to
complement stronger links to the formal
proceedings
 Mexican Dialogues 2010
– Providing input on Finance, Carbon Markets and
Technology
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Technology
 Key issue for business
– Need for long term plans to guide
investments and funding of RD&D
 New WBCSD reports:
1. “Enabling Frameworks for Technology
Diffusion”
2. “Innovating for green growth - Drivers of
private sector RD&D”
 IEA cooperation with WBCSD:
– IEA Technology Roadmaps
– IEA “Technology Perspectives to 2050”
– IEA Technology Platform project
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WBCSD Work Program
Focus Areas
The Business Role
Energy and
Climate
Projects
- Water
- Buildings
- Forest Products
- Cement
- Electricity
Utilities
- Tires
-Mobility
- Mining
-Eco Patent
Commons
-Maritime
Joint
ventures
• Urban Infrastructure
• Sustainable Value
• Urban
Infrastructure
Chains
• Sustainable Value
Chains
Systems Solutions
- GHG
Protocol
- SDMI
Ecosystems
 Ecosystems degradation is a risk and an
opportunity for business
– Core operations
– Value chains
 Convention on Biological Diversity (CBD)
– COP 10 Nagoya, Japan
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Convention on Biological Diversity
COP 10
 Strategic Plan approved by 193 parties which
have 2 years to adjust their national biodiversity
action plans
– “Aichi” targets for biodiversity by 2020 e.g.
• Increase land Protected Area by 17%; marine to
10 %
• Halve rate of habitat lost including forests
– Nagoya Protocol on Access & Benefit Sharing
(ABS)
• Consultation obligations for use of genetic
resources
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WBCSD and Ecosystems
 Ecosystem Services Review (ESR)
– method to develop strategies to manage
risks and opportunities arising from
dependence and impact on ecosystems
 “Ecosystem Valuation Initiative”
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Convention on Biological Diversity
(CBD)
 New WBCSD publications:
1. Effective Biodiversity and Ecosystem policy
and Regulation
 Business has a strong interest in ensuring
ecosystems continue to function properly to deliver
both business and societal value
 A framework for closer collaboration between
business and policy makers on biodiversity
conservation is needed
2. Responding to the Biodiversity Challenge
 30 member company case illustrations responding
to CBD core objectives
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WBCSD Work Program
Focus Areas
The Business Role
Energy and
Climate
Projects
- Water
- Buildings
- Forest Products
- Cement
- Electricity
Utilities
- Tires
-Mobility
- Mining
-Eco Patent
Commons
-Maritime
Joint
ventures
• Urban Infrastructure
• Sustainable Value
• Urban
Infrastructure
Chains
• Sustainable Value
Chains
Systems Solutions
- GHG
Protocol
- SDMI
Urban Infrastructure Initiative (UII)
Overall objective:
 Involving business early in the urban planning process will
help create a cross-cutting strategy and provide competitive
and effective solutions
45
Sustainable Value Chains Initiative
 Focus 1st Phase:
– Fast Moving Consumer Goods
End-of-life
– Co-chaired by:
• Unilever and Coca-Cola
Consumer
 Objectives:
disposal
– A practical “how to” guide
including best practice
Consumer
information, templates, case
use
studies, etc.
– Leadership on the Rio +20 (2012)
Sustainable Consumption agenda
Material
sourcing
Manufacturing
Distribution
Sales & retail
Consumer
purchasing
New potential Systems Solutions
 Food, water, land-use, energy, and
climate change
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WBCSD Work Program
Focus Areas
The Business Role
Energy and
Climate
Projects
- Water
- Buildings
- Forest Products
- Cement
- Electricity
Utilities
- Tires
-Mobility
- Mining
-Eco Patent
Commons
-Maritime
Joint
ventures
• Urban Infrastructure
• Sustainable Value
• Urban
Infrastructure
Chains
• Sustainable Value
Chains
Systems Solutions
- GHG
Protocol
- SDMI
Water
 “Water, Energy and Climate Change”
– Water & Energy linked
– Impacts from ecosystems and climate
change
 Measuring water use & assessing
impacts:
– WBCSD Global Water Tool
– Water Footprint Network
– Development of ISO standard on water
footprint
 Business input to major water events
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Cement Sustainability Initiative
 24 member companies - 10 years of successful collaboration
 Achievements:
– Cement CO2 Protocol
– Global database on energy and CO2
– Industry guidelines & company commitments
(emissions, fuels, raw materials, safety management)
 5 Chinese members
 Cooperation with
China Cement
Association
CSI/ IEA Technology Roadmap
 Outlines existing and potential
technologies, and how they may help
the industry support a halving of
global CO ₂ emissions (Dec. 2009)
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CSI – expanding scope
Impacts on biodiversity
Sustainable
use of
concrete
Sustainable
construction
Electricity Utilities
 Trilogy of policy reports
– “Power to Change: A business
contribution to a low-carbon
electricity future”
– Roadmap of sector specific policy
recommendations
 Next phase:
– Input into the IEA
– Global Energy and Water Initiative
– e8 project
Co-Chairs:
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Energy Efficiency in Buildings (EEB)
 Buildings represent 50 % of world
energy use
 Business opportunity for new buildings as
well as refurbishing of existing ones
 Report: “Transforming the Market”
Co-Chairs:
 Key Message: Cutting building emissions by 50%
globally by 2050 is possible at an average
abatement cost of 25USD/tCO2 (PIIE, 2009)
 EEB Manifesto – 95 Signatories so far
 Global Building Sector Roadmap in
collaboration with IEA (2011)
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A World in Transition to Sustainability
 WBCSD Book 1991: Changing Course
 Eco-efficiency : “Doing more with less”
Aim:
• To demonstrate that pollution is
waste and sign of bad management
• To argue that reducing pollution,
improving efficiency and profit go
hand in hand
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A World in Transition to Sustainability
 The future is going to be resource
and carbon constrained
– I.e. The Green Race
 Business has a major role to play
as a solution provider
 Business cannot succeed in a
society that fails
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www.wbcsd.org
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