Transcript How sustainable are we and does it matter?

How sustainable are we
and does it matter?
The February Floods 14 - 17 February 2004
Lower North Island and Marlborough
A number of rural communities had to be evacuated, and at the height of the
emergency about 2,300 people had to leave their homes and farms
Half the roads were closed & more than 20 bridge were damaged
Around 2,600 farmers were affected with some having to abandon farming their
properties
Economic Loss: Cost over $112 million in insurance payouts
government granted $135 million in aid to farmers
Total economic impact est $400 million
Pohangina River
Flood Damage
Bay of Plenty Floods July 2004
Flood waters entered Te Teko
and Edgecumbe, and swamped
some 17,000 hectares of
farmland. Followed by 30
Earthquakes.
200 people had to leave their
homes, many sheltering in
evacuation centres
landslides on saturated hillsides
more than 450 farms were
affected, with over 200 homes
made uninhabitable
Economic Loss:
Rural bill $45m for flood damage
Damaged houses on a cliff in Ohiwa, Whakatane, on New Zealand's north island after the
collapse of an escarpment during the floods. Picture:Reuters
Hurricane Katrina
August 29, 2005
Most damaging storm in US history
1000 deaths
1,000,000 environmental refugees
Photo: NOAA
$125 billion in damages
Cyclone Larry Innisfail NQ
March 2006
55% of homes destroyed
Banana crops wiped out
$1billion in damages
Consumers paying $13 - $20 kg
Photo: Cameron Laird
Photo: Fairfax Photos
Sydney Hail Storm, 1999
$1.6 bil insurred loss
Total economic loss $2.2 bil
Victorian Bush Fires February 2009
173 Deaths
500 Injured
72 Hospitalised
78 Townships
3,500 Buildings destroyed including 2029 homes
7562 homeless/displaced
450,000 Ha Burnt
Drought one of the biggest costs to humanity...
NZ Drought cost $2.8 Billion
Nationwide drought between spring 2007 and autumn
2008 cost the New Zealand economy $2.8 billion
($1.9 billion on-farm and $900 million off-farm)
Current drought...
• Milk production down
• Failed crops
Extreme weather patterns
increasing
Failed Turnip crop in Kerikeri
Food Security Threatened
Seed poisoning Bowen NQ
• More than seven million seedlings
poisoned (tomato, capsicum
melons, eggplant, zucchini and
pumpkin)
• $23 million in lost production
targets
• Local service providers $7 million
loss
• Bowen community economic
impact $50 - $100million
• This is the fourth mass poisoning
of seedlings in the Bowen area
since 2002. The last was in 2006.
No-one has been caught.
So far, how are we doing?
Can we sustain this sort of loss???
The Economics of Climate Change…
Currently costing us 1% of GDP
If no action, could disrupt economic and social activity on a similar scale
to that of the great wars and the economic depression of the first half of
the 20th century that would be difficult or impossible to reverse.
If no change – cost between 5 – 20% OF THE GLOBAL GDP
NOW AND FOR EVER.
Source: Stern Review on the Economics of Climate Change 2006
In Aust CSIRO suggest 3- 15% of GDP
Congratulations NZ on ETS
• Not always popular but this is leadership that you will be thankful for in a
few short years – this is your time to innovate and get ahead of the curve.
• Debate over – even China is establishing an ETS.
• Good start to building a green economy. Green Economy in Europe now
bigger than Aviation and Pharmaceuticals.
• We have to do more with less.
• Congratulations Horticulture NZ target to double food production by 2020
(ahead of world expectations to double outputs to feed growing
population by 2050).
• Influx of Aussies?
How clean and green is NZ in the eyes
of the world?
• NZ no longer in race to be carbon neutral country.
Tuvalu, Maldives and Costa Rica reaffirmed their commitment to carbon
neutrality by 2019, 2020 and 2021 respectively. Tuvalu expects to reach its
goal by replacing imported diesel with solar and wind power. Costa Rica is
relying heavily on tree planting.
Norway is aiming to be zero-carbon by 2030. Antigua & Barbuda, Ethiopia,
the Marshall Islands and Samoa all committed to carbon neutrality.
• Not included in UPS carbon neutral shipping program. The 35 countries
and territories involved in program include: Argentina, Brazil, Dominican
Republic, Mexico, Canada, Puerto Rico, Austria, Belgium, Denmark,
Finland, France, Germany, Great Britain, Ireland, Italy, Netherlands,
Norway, Poland, Portugal, Spain, Sweden, Switzerland, Australia, Hong
Kong, Japan, Malaysia, Singapore, Taiwan, Thailand, India, Indonesia,
Philippines, South Korea, China and Macau.
Some NZ communities, businesses and cities
included in certification programs
.
Initially used in tourism and hospitality.
Popular with wine industry.
EarthCheck Assessed to measure water,
waste, energy CSR costs
AUS$395
EarthCheck Certification once you meet
acceptable benchmark
AUD $2,800
Average savings when using EarthCheck
Energy 30%
Water 20%,
Waste streams 30% and
Lower staff turnovers.
PAS 2050, the first standard
method for calculating life
cycle greenhouse gas (GHG)
emissions of products–
integrates product life cycle
assessment with GHG
emission accounting . Carbon
Reduction Label provides
companies with a certified,
consistent and comparable
way to display their products’
footprints, along with a
commitment to reduce those
footprints over time.
Fresh orange juice’s footprint of 360g CO2e is
compared to long-life juice with
a lower footprint of 240g CO2e; the Carbon
Reduction Label also explains why the
footprints differ, i.e. due to energy required to
chill the fresh juice.
Tesco and the BSI PAS 2050
Tesco plc is the third largest grocery retailer in the world. It employs over
440,000 people in 13 markets – 280,000 of those in the UK. Over 30 million
people shop with Tesco worldwide every week.
Tesco represents the largest test of the BSI PAS 20501 draft product carbon
foot printing method and the Carbon Trust Carbon Reduction Label. Set in
the context of the commitment from Tesco’s CEO to find a “universally
accepted and commonly understood measure of the carbon footprint of
every product we sell”. It started with light blubs, potatoes, washing
detergent and orange juice – now over 120 products. It identifies three
strategic priorities for tackling climate change:
 Setting an example by measuring and reducing Tesco’s own direct carbon footprint.
 Using ‘resources and relationships to work with others to achieve a low carbon
economy of the future’.
 ‘Empowering customers to make environmental choices…by providing the
information on which to make an informed choice’.
Opportunity....New Guidelines and
Standards
The future ISO 26000 standard
giving guidance on social
responsibility now Final Draft
International Standard (FDIS) is
expected to be out by the end
of 2010.
• Press release -
http://www.iso.org/iso/pressrelease.htm
?refid=Ref1299
• Mini-site -
http://isotc.iso.org/livelink/livelink/fetch/2000
/2122/830949/3934883/3935096/home.html?
nodeid=4451259&vernum=0
• Brochure -
http://isotc.iso.org/livelink/livelink/fetch/2000
/2122/830949/3934883/3935096/02_news/D
epliant%20A4%20Social%20responsibility%20%20E.pdf
• Free Draft of ISO/DIS 26000 -
http://infostore.saiglobal.com/store/Details.aspx?Pro
ductID=1137989
Opportunity
WBCSD and WRI developing two new standards
– Product Life Cycle Accounting and Reporting Standard
– Scope 3 Accounting and Reporting Standards
It provides the accounting framework for nearly every GHG standard and
program in the world - from the International Standards Organization to
The Climate Registry - as well as hundreds of GHG inventories prepared by
individual companies.
The GHG Protocol, a decade-long partnership between the World
Resources Institute and the World Business Council for Sustainable
Development, working with businesses, governments, and environmental
groups around the world to build a new generation of credible and
effective programs for tackling climate change.
Standards due to be completed by December 2010
http://www.ghgprotocol.org/standards/product-and-supply-chainstandard
Opportunity...
Climate Change, GDP and
Measurement
• Global movement to look beyond GDP
• Focus on people not just economies
• Moving from production to well-being
Framework / Standard 2012
http://www.eea.europa.eu/pressroom/speec
hes/2018beyond-gdp2019-accounting-andclimate-change
Ecosystem accounts highlight what is really happening to our stocks of bio-carbon
But perhaps even more important, they inform us of ecosystem health –
crucial for resilience and adaptation to climate change impacts
Only by communicating in the same language as national accounts can environmental
and social perspectives earn the same status
EcoSystems Valuation
•
First attempt to value ecosystems 10 years ago ecosystems were valued at US
$33 trillion almost twice as high as global gross domestic product (GDP)
•
Estimated the world loses natural capital worth between US$1.9 trillion and
US$4.5 trillion each and every year. Ecosystem degradation is becoming a
sustainability issues for business and society at large.
•
Some estimates suggest payments for ecosystem markets for products from
certified forests could grow from an estimated US$15 billion in 2010 to around
US$50 billion in 2050. Certified agriculture (inc hort) could grow from US$42
million in 2005 to around US$97 billion in 2012 and US$900 billion in 2050.
•
Organic production is now the world's fastest-growing food sector.
•
WBCSD suggest 10 reasons why business should employ corporate ecosystem
valuation as a decision-support tool to improve operational efficiency and or
develop new business opportunities whilst reducing environmental impacts or
footprint and build your ecosystem assets.
Benefits of Ecosystem Valuation
1.
Improves business decision making
2.
Capturing and pricing new income streams
3.
Saving costs and avoided expenditure
4.
Reduces taxes
5.
Sustain revenues
6.
Revaluing assets
7.
Investigating new goods and services
8.
Assessing liability and compensation
9.
Measuring company and share value
10.
Reporting performance
WBCSD Vision 2050 – The new agenda for business.
Advantage being forced to measure
your footprint...
Consider carbon
neutrality offset with
your own carbon
Credits…
Put pressure on your
suppliers…to help you
achieve greater success
Lifestyles of Health & Sustainability [Acronym: LOHAS]
– 100 million+ people in developed countries
Worth: US$500b+ global market
LOHAS Market Categories
Mainstream – Not fringe or marginalised
Defy typical demographic & psychographic stereotypes
Values driven & this is reflected in their purchasing choices
Actively seeking Valid, Transparent and Authentic Information
Dislike spin & hype & untrusted opinions & sources
Certification and labelling becoming the norm
Consumer Attitudes
75% consider environmental and social aspects in deciding what to
buy; 1/3 are willing to pay more for those benefits
“Sustainability: The Rise of Consumer Responsibility” Report, The Hartman Group, Jan 09
35% of U.S. consumers say they would pay more for environmentallyfriendly products
Mintel survey, March 2010
80% of consumers are interested in some type of green product.
LOHAS Consumer Trends Database® study, drawing from research conducted among 50,000+ consumers
in over 20 countries, May 2010
32% of U.S. consumers, said they still look for or often buy green
products.
2009 survey of more 1,000 U.S. consumers
More shoppers "systematically" purchased green products in 2008
than in 2007. 34% of Europeans (up 2% from 2007) say they would
continue to systematically seek and purchase green products.
Boston Consulting Group, January 2009 survey of 9,000 consumers
in North America, Europe, China, and Japan
Consumer demands for green products
32% of U.S. consumers, said they still look for or often buy green
products.
2009 survey of more 1,000 U.S. consumers
“Green” household products as a whole grew 71% in 2009 compared to 2.5% for
traditional household products.
IRI 2009 data
84% “Willing to change lifestyle for the good of environment”
Why?
82% “It’s good for the environment”
78% “It helps future generations”
78% “It’s healthy”
78% “It’s the right thing’ to do”
73% “It fits with my morals or beliefs”
Survey of 1000 Americans by Insight Research Group, HGTV, and the NRDC, Jan 08
Green Behaviour Segments
Xxx
High Willingness
To Pay
Low
Latent
Green
Greens
Consumers
40%
27%
High
Activism
Inactive
23%
Green
Activism
Activists
10%
Low Willingness
To Pay
Environics 4th annual International Environmental Monitor Survey
What the rest of the world think
"Protecting the environment should be a priority,
even if it causes slower economic growth and
some loss of jobs“
Canada 76% agreed
U.S.A. 64% agreed
China 82% agreed
“People should pay higher prices to deal with
climate change”
Canada 54% agreed
U.S.A. 41% agreed
Pew Global Attitudes Survey, Aug 2009
Responsibility Capacity Index
Dr. Goran Carstedt
Senior Director of the Clinton Climate Initiative,
C40 Cities. He is chairman of The Natural Step
International and engaged in the formation of the
SOL Global Network dedicated to the
"interdependent development of people and their
institutions.” He is the former head of IKEA Retail
Europe (1990–1997) and President of Volvo
Svenska Bil AB.
http://stonehousesummit.com/goran-presentation
Global Peace Index
In 4th year
How sustainable are you?
Does it matter?
This is the opportunity of a life
time...
Questions?
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