Transcript WWF Climate Savers

Scaling up product and process innovation
around climate change in SMEs
Dr. Aileen Ionescu-Somers, Director, Center for
Corporate Sustainability Management, IMD
© 2010 IMD International. Not to be used or reproduced without permission.
Population
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World GDP growth
50000
China
US
40000
$USbn
Japan
30000
Germany
UK
20000
France
10000
Italy
0
2050
2045
2040
2035
2030
2025
2020
2015
2010
2005
2000
India
EU-4
Dreaming With BRICs: The Path to 2050 (Goldman Sachs)
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The Living Planet Index
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Human Ecological Footprint
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Ecological credit and debt 1961
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Ecological credit and debt 2005
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Development constraints: We need, but don’t
have, 2.3 planets
Move to single planet consumption scenario and meet human needs within
ecological limits of the planet
 Increase agricultural output to feed increasing number of people, without increasing land or
water used
 Halt deforestation and increasing yields from planted forests
 Significant moves towards halving carbon emissions worldwide (relative to 2005)
 Shift to low-carbon energy systems
 Shift to improved demand side energy efficiency
 Increased access to low-carbon mobility
 Develop radically more eco-efficient solutions, lifestyles and behaviour everywhere
 Bring the Base of the Pyramid into the economic equation
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Business will see a radically new landscape emerge as a result
of these shifts, resulting in:
 Opportunistic business strategy: Discussions around
resource constraints will move to economic ones related to
sharing of opportunity and costs
 Seeking solutions to local and global challenges: Move to
growth and progress based on balancing renewable resources
and recycling non-renewable resources.
 Change in framework conditions: Shifts in regulation,
consumer preferences, pricing of inputs and measurement of
profit and loss
 Partnerships and coalitions: Need for multi-stakeholder
collaboration, systemic thinking and co-innovation
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Business response is changing
From Risk Management
Corporate Social Responsibility
Sustainability
Public Relations
Transparency
Doing less harm
Doing more good
Changes around the edges
NGOs as threats
Philanthropy
Internal corporate focus
Telling companies what they
can’t do
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To Value Creation
Changes to the core business
NGOs as partners
Cost of doing business
Supply/value chain focus
Helping companies figure out
what to do
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‘State’ of developmental sustainability, environmental protection and
corporate social responsibility on the corporate agenda
“Step changes” in the last three years:
RISK
OPPORTUNITY
DENIAL
RECOGNITION
SIDELINES
MAINSTREAM
SELLING THE
BUSINESS CASE
GETTING THINGS
DONE
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Businesses/NGOs aiming for “Smart Zone”
Requirements
Non-profitable area
“Smart Zone”
Maximise
Shareholder
Value
Threat to
Shareholder
Value
Illegal area
Time
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WWF: Business as agents of change
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Current Roundtables/Dialogues/Certification
Schemes supported by WWF
Aquaculture
Dialogues
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Climate Change challenges for companies
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Global CO2 concentrations are not natural
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On track to + 6°C
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Projected impacts of climate change
0°C
Food
Water
Global temperature change (relative to pre-industrial)
1°C
2°C
3°C
4°C
5°C
Falling crop yields in many areas, particularly
developing regions
Falling yields in many
Possible rising yields in
developed regions
some high latitude regions
Small mountain glaciers
disappear – water
supplies threatened in
several areas
Significant decreases in water
availability in many areas, including
Mediterranean and Southern Africa
Sea level rise
threatens major cities
Ecosystems
Extensive Damage
to Coral Reefs
Rising number of species face extinction
Extreme
Rising intensity of storms, forest fires, droughts, flooding and heat waves
Weather
Events
Risk of Abrupt and
Increasing risk of dangerous feedbacks and
Major Irreversible
abrupt, large-scale shifts in the climate system
Changes
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WWF position on context and urgency
 To stay below 2 degrees C warming over pre-industrial levels:
 Global GHG emissions (+3% per annum 2005) will have to peak and
decline in next 10 to 15 years
 Global GHG emissions have to be reduced by at least 80% below
1990 levels by 2050  By 2050, this translates into ~100% GHG reductions for
industrialised countries including the EU
 By 2050, this translates into ~60%GHG reductions for
developing countries compared to today
Record
Heat
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Record Ice
Melt
Record Coral
Bleaching
Record
Hurricane season
Record
Droughts
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What’s the solution? – a level playing field - an enabling environment?
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EFFECTIVENESS OF LOBBYING
How would you rate the effectiveness of lobbying of the following organisations?
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But companies can also be more ambitious
Emission reduction
A further shift
to natural gas
Nuclear power
Renewables
Bio-products
Carbon capture
and storage
Low energy
appliances
Doing things
differently
Energy conservation and efficiency
Mass
transportation
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Road transport
Buildings
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WWF Climate Savers
http://cleaneconomy.panda.org/csvideo/index.html
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2009: CSM case studies on climate change product and
process innovation by WWF Climate Savers
Johnson & Johnson
Tetra Pak
Novo Nordisk
Xanterra Parks & Resorts
Fairmount Hotels
Elopak
Nokia Siemens Networks
Sony
Hewlett Packard
Sagawa Transportation
Consult them at: www.letthecleaneconomybegin.org
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The universe of climate change partnerships
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WWF Climate Savers: Potential strategic options
Bottom left-hand quadrant (outlined) = current area of influence
New markets
Emerging markets
Supply Chain
Markets
sectors
Zero C02
Existing markets
CS (US/Europe)
Existing products
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Products
New products
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Thank you: Any questions?
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Brief descriptions of some Climate Savers cases
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CSM’s case series on WWF Climate Savers Innovations
IMD-2-0146: WHAT DOES IT TAKE TO GET PROJECTS OFF THE
GROUND? JOHNSON & JOHNSON’S CAPITAL RELIEF FUNDING
FOR CO2 REDUCTION PROJECTS
Johnson & Johnson’s capital relief funding for CO2 reduction projects
have attracted the interest of managers in many companies in different
industries, eager to learn how the corporation have eliminated
budgeting barriers and allowed 61 climate friendly energy projects to
take off in less than 4 years.
IMD-2-0147: BREAKING DOWN ALIGNMENT BARRIERS: TETRA
PAK PULLS TOGETHER ALLIES TO REACH CLIMATE GOALS
Tetra Pak efforts to align market companies, manufacturing sites and
suppliers with its climate goals required significant organizational
change. By empowering shop floor teams to initiate and explore new
approaches to energy efficiency along the supply chain, the company
created a structure that allows organic innovation to take place.
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CSM’s case series on WWF Climate Savers Innovations
IMD-2-0148: DEVELOPING AN INNOVATIVE BUSINESS MODEL:
NOVO NORDISK AND DONG ENERGY DRIVING THE MARKET FOR
RENEWABLE ENERGY IN DENMARK
Novo Nordisk’s search for cost-effective solutions to reduce CO2
emissions drove the development of a new business model which
expanded the commercial basis of renewable energy in Denmark.
IMD-2-0149: REMOVING BARRIERS TO INNOVATION: XANTERRA
PARKS AND RESORTS GAINING SCALE IN ON-SITE SOLAR POWER
GENERATION
Xanterra Parks & Resorts’ focused strategy of bringing on-site renewable
energy generation to the next level required not only significant dedicated
resources, but also singular efforts to break down skeptical mindsets and
risk-related barriers to innovation. By active learning from an almost
terminated project, the company was able to build one of the largest
privately-owned solar photovoltaic systems in the US.
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CSM’s case series on WWF’s Climate Savers innovations
IMD-2-0150: FAIRMONT HOTELS & RESORTS STRETCHING THE
TARGETS FOR CLIMATE ACTION AT LANDMARK HOTELS
The Fairmont Hotels & Resorts case focuses on actions taken by Fairmont
during the full restoration of The Savoy in London and the building of the
new Fairmont Pittsburgh in the United States. It shows the feasibility of
stretching targets for lowering CO2 emissions from hotel operations.
IMD-2-0151: REACHING A TURNING POINT WITH NO TURNING BACK:
HOW ELOPAK ROLLS OUT CO2 REDUCTION INITIATIVES
Elopak committed to reduce its CO2 emissions by 15% within a tight time
frame of 3 years. This ambitious target pushed the company to adopt an
innovative roll out approach, including active participation of Elopak’s CEO
in efforts to build internal buy in, incorporation of a carbon strategy as part
of the marketing mix and integration of climate targets into normal
management cycle and reporting systems.
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CSM’s case series on WWF Climate Savers Innovations
IMD-2-0152: DEVELOPING IT SOLUTIONS FOR REDUCING TRAVELRELATED CO2 EMISSIONS: THE HEWLETT-PACKARD’S HALO
HP’s search for IT solutions to reduce travel-related CO2 emissions has driven
the development of innovative telepresence collaboration solutions. By
developing solutions that create a lifelike virtual meeting experience the
company is contributing to the removal of technological and mindset barriers to
the substitution of business travelling by virtual collaboration.
IMD-2-0153: LAFARGE’S C-C-TOOL: SUPPORTING CO2 MITIGATION
DECISION MAKING THROUGH IMPROVEMENT MONITORING, ANALYSIS
AND SIMULATION
By improving internal CO2 data management and putting in place a userfriendly tool for monitoring, analysis and simulation of mitigation alternatives,
Lafarge facilitated decision-making processes and strengthened the autonomy
of operational managers in implementing CO2 reduction projects.
And others……..
IMD-2-0154 – Sony
IMD-2-0155 –Nokia Siemens Networks
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