Transcript Caroline Twigg, WBCSD

Global Trends in
Responsible Business
Conduct
Caroline Twigg, WBCSD
21 April 2011, Delhi
What is the WBCSD?
•
Market capitalization: $8,000 billion, 13 million employees
Supplies products and services to half of the world’s
population every day
3
Key moments in our recent history …
1st satellite
Silent
image of
Spring
earth
published
Stockholm
Conference
Chernobyl
Famine in
Africa
1960
1970
1980
China
WSSD
WTO
becomes
Johannesburg
established
Corporate largest
scandals & GHG
Rio World
Prius to
emitter
SOX
Summit
market
WBCSD
established
1990
2000
Montreal
Protocol
Nike
child
Our
Common labour
Future
Berlin
Bhopal
Wall
collapse
Oil Crisis
FoE
established
Limits to
Growth
published
3 mile
island
Exxon
Valdez
2010
Battle of
Seattle
Financial
Inconvenient crisis
truth
Kyoto
Stern
Review
Rio
2012
shaped our world today
Business’ role in society
29
29
Increased stakeholder interest
Increased stakeholder activity
Founding dates of key NGOs
The 21st Century NGO SustainAbility
Increased investor scrutiny
Institutional investors:
increasingly factoring ‘social’ issues into investment decisions
Increased resource constraints
If the world consumes at today's rate
Estimated years of supply
160
140
If the world consumes at half US
consumption rates
120
100
80
60
40
20
n
Ti
An
th
im
Ch on
ro y
m
iu
m
Co
pp
er
Le
ad
Ni
ck
Ur el
an
iu
m
Zi
nc
Go
ld
Si
Te lve
nt r
al
um
0
Source: Earth's natural wealth: an audit, the New Scientist, 2007
Business: increased efficiencies
South Africa Energy Efficiency Accord
Cheap electricity
blackouts
2005: Minister for Energy and Minerals + CEOs of 24 major
energy users + seven industry associations
Eg Eskom: 1 billion kWh savings
Implementation:
• Tools, expertise and peer support: collaboration
• Business-govt partnership
Advantages:
• Business savings: costs, CDM revenues
• Whole economy: competitiveness
• Environmental sustainability
• Meet government targets
Business: increased opportunities
 92% of UK business leaders think green
growth represents an opportunity for their
business (Carbon Trust)
 2010: USA solar market 67% growth
 Green buildings (USA study):
– 1.8% more cost to design and construct
– 20% cost saving over lifetime
Business: increased measurement and
monitoring
www.ghgprotocol.org
Business: increased reporting and
accountability
Increasing numbers of corporate sustainability reports with GRI
Demonstrated transparency
public accountability
Business: increased global, voluntary
actions
United Nations
Global Compact
(2000): >4,000
signatories, 100
countries
Source: Annual Review (2007) United Nations Global Compact
Our future society: a growth story
World population (in Billions): 1950-2050
10
9
8
6
5
4
3
Population in less developed countries
85%
Population in more developed countries
15%
2
1
0
1950
1960
1970
1980
1990
2000
2010
2020
2030
2040
2050
Source: United Nations Population Division, World
Population Prospects: The 2006 Revision.
7
Future society: urban
70% urban in 2050: 6 billion
2010: 3 billion
16
16
Source: GFN / UNDP
Ecological Footprint (Global Hectares per Person)
Future society: key challenges
Human Development Index (HDI)
Transition to sustainability:
consequences for business
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Input into public policy-making and PPPs
Competition for resources
Environmental protection: competitive
Pressure to measure/report ecosystems impacts
Business cannot succeed in a society that fails
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Solutions provider
Growth opportunity: infrastructure, products and services
Global
Green Economy
Governance of Sustainable
Development
‘The Green Race’ is on
… to transform to low carbon economies and lead the supply
of resource efficient technologies & solutions
EU
– Market leader on green tech exports (40% mkt share)
– 300% increase in green tech R&D (2009)
– Transformation of internal market?
USA
– Mobilizing the US innovation capability?
– Transformation of home market?
Japan
– Most energy efficient economy
– Good technology platform for green solutions
‘The Green Race’ is On
China
– About to become race leader
– Key component of next 5-Year Plan (2011-2015)
– Clean energy investment: no. 1 rank
– Taking the lead on solar & wind
Korea
– 80% of economic stimulus devoted to “green” sector
– 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
Opportunities for responsible
businesses … role of business
Protect
 Reducing risk
 Strengthening the license to operate
 Increasing brand value / reputation
Manage
 Reducing costs
 Enhancing productivity
 Raising the quality of people
Grow
 Improving access to / cost of capital
 Promoting revenue growth
 Improving market access
 Stimulating innovation
WBCSD Vision 2050
Platform for
dialogue
about the
business
role in a
resource &
carbon
constrained
world
www.wbcsd.org
For more information
wbcsd.org/water
[email protected]