Business and the Sustainable Development Landscape

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Business and the Sustainable Development Landscape

Business and the Sustainable Development

Landscape

World Business Council for

Sustainable Development

Acer CSR Forum, Taiwan

Björn Stigson, WBCSD President

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1


WBCSD

Coalition of some 200 leading companies

• Market capitalization: 8,000 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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Where are our members

Representing 36 countries – based on corporate headquarters

Europe

(non-EU) , 18

Asia (OECD),

31

Europe (EU),

67

N. America, 46

Europe (EU)

North America

Asia (OECD)

Europe (non-EU)

Asia (non-OECD)

Latin America

Oceania

Africa

Middle East

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Taiwanese Members

Chinese

Petroleum

Corporation

Chungwa Telecom

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Which sectors do they represent

7

10

10

10

11

4 4 4 2211

7

11

12

13

21

20

15

14

14

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Utilities & Power 21

Oil & Gas

20

Chemicals

15

Forestry & Paper Products 14

Consumer Goods

14

Mining & Metals

Cement

IT & Telecoms

Tires

Auto

Services

Engineering

Banks & Insurance

Construction

Food & Beverage

Healthcare

Maritime Transport

Retail

Logistics

Media

Aviation

13

12

11

11

10

10

10

7

7

4

4

4

2

2

1

1

5


WBCSD Regional Network

Channel to globally disseminate WBCSD’s messages and to

promote implementation ti of concrete projects on the ground

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The World in Transition to Sustainability

Society

Economy

Environment

.

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7


The Future Society: A Growth Story

World population p (in Billions): 1950-2050

10

9

8

7

6

5

4

3

2

1

Population in less developed countries

Population in more developed countries

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85%

5%

15%

0

1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050

Source:

Populati

United Nations P

on Prospects: Th

Population Division

he 2006 Revision.

n, World


Development: The Poverty Challenge

• Income poverty:

Over 2 billion people live on less than $2/day

• Energy poverty:

1.5 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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The Future Society: Urban

Billions of inhabitants 70% rban

Growth of mega-cities

70% urban

urban

rural

36% urban

47% urban

60% urban

5.0

6.4

London

New York

Paris 1900

Berlin

Chicago

1.3

2.4

2.9

3.2 3.3

2.8

1970 2000 2030 2050

Source: United Nations, World Urbanization Prospects:

The 2007 Revision

70% urban in 2050

Tokyo

Mumbai

Dlhi Delhi 2020

Dhaka

Mexico City

0 5 10 15 20 25 30 35 40

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Source: Citymayors statistics, 2008

10

10


The Future Society: Shifting Fortunes

Emerging g economies > 50% of global GDP

and trend will continue

Emerging economies

Developed economies

80

60

40

20

Sourc

From

“Wres

ce: Angus Maddis

The Economist p

stling for influence

son, OECD; IMF

print edition.

e.” July 3rd 2008.

1913 1950 2005 2025

0

% Share of GDP * At purchasing-power parity

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The World in Transition to Sustainability

Geography

Solutions

Mindsets

Te echnology

Society

Economy

Environment

Regulation ns

Infrastructure

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The Surrounding World: Short term

• Economic slowdown/ recession

• Massive economic stimulus packages

• Key political concerns:

– Economic growth

– Jobs/unemployment

o 300 million jobs required from now to 2015 to

return to pre-crisis levels of unemployment

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The World is Turning “Green”

The race is on to transform to low carbon

economies and to become the leading supplier

of green technologies & solutions

•Japan:

•EU:

o Leader on energy efficient solutions

o Leader today / 40% market share

o Just announced 300% increase in R&D for green

technologies

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The World is Turning “Green”

• China

o Wants to be the leading exporter of green

technologies

o Key component of next 5-Year Plan

• US

o The new administration i ti is mobilizing i the US

innovation capacity to be world leader on green

technology

.

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The World in Transition to Sustainability

Harvard Business Review (Sept ‘09)

“There is no alternative to sustainable

development….sustainability is now the key

driver for innovation. In the future only

companies that make sustainability a goal will

achieve competitive advantage.”

MIT Sloan Management Review (Nov ‘09)

“Sustainability performance is a good measure

of management quality”

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Work Program

Focus Areas

The Business Role

Energy and

Climate

Projects

- Water

- Energy

Efficiency in

Buildings

- Forest Products

- Cement

- Electricity

Utilities

- Tires

-Mobility

- Mining

- Chemicals

Solutions,

Implementation

and Advocacy

- Eco Patent

commons

-Urban

Infrastructure

-Sustainable Value

Chain

- Maritime

Initiatives

Regional Network

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Vision 2050

Vision

2050

Co-Chairs:

30 members rethinking the roles

that companies must play over

the next few decades to enable

the world to move towards being

sustainable as well as thrive

themselves

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Living well, within limits of the planet

Source: WWF / GFN / UNDP

Human Development Index (HDI)

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Ecological Footprint (Global Hecta

ares per Person)


Vision 2050: Outcomes

• Radical change necessary

– Speed and scale challenges

• Hyper-innovation

– Get more out of the planet - Biocapacity

– Developed countries: Lower impact, keep

quality of life

– Developing countries: Grow with low SD

impact

• Redefine GDP & Quality of life

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Work Program

Focus Areas

The Business Role

Energy and

Climate

Projects

- Water

- Energy

Efficiency in

Buildings

- Forest Products

- Cement

- Electricity

Utilities

- Tires

-Mobility

- Mining

- Chemicals

Solutions,

Implementation

and Advocacy

- Eco Patent

Commons

-Urban

Infrastructure

-Sustainable Value

Chain

- Maritime

Initiatives

Regional Network

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IEA’s World Energy Outlook 2008

• Current energy trends are patently

unsustainable – socially,

environmentally, economically.

• To avoid “abrupt and irreversible”

climate change we need a major

decarbonization of the world’s

energy system.

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Global Emission Scenarios

Source: IEA. ETP 2008

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Reductions in energy-related CO2 emissions

in the climate policy scenarios

Source: IEA. WEO 2008. Presentation by Dr. Fatih Birol

.

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Climate Change –

A transformational challenge for society

• A society that emits 50% less GHG

emissions by 2050 will look very

different

• Major impacts on lifestyles,

consumption patterns and

infrastructures are likely

• The transformation will not be easy

There will be winners and losers

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COP 15, Copenhagen, December 2009

• Copenhagen is a milestone, not the finishing

post

• Unlikely to deliver framework with details

• Will be worked out over next 2 years,

internationally & nationally

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Forests & Climate

• REDD+: Reduced Emissions from Deforestation

and Degradation in Developing Countries

• Deforestation represents 20% of global CO2

emissions

• Outcomes uncertain at this stage because of

concerns about:

– Additionality & permanence of forest carbon

sinks/stores

– Property and tenure right issues

– Environment NGO’s want industrial countries to

focus on making deep cuts…not leveraging forest

carbon offsets

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A global carbon market

• Key objective:

Establish a price for carbon

• Carbon market doubled from 2007 to 2008

– Total value in 2008: 126 BUSD

– Allowances and derivatives under EU ETS:

92 BUS

– Continued strong growth in 2009 (+22%)

• Clean Development Mechanism (CDM)

– Re-design or complement with new, dedicated,

flexible market mechanisms

• “Docking station” for various mechanisms within

UNFCCC

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Sectoral Approaches

• WBCSD:

– Cement

– Forest Products

–Tires

– Electricity Utilities

– Buildings

– Mobility

• GeSI

• IEA Technology Roadmaps

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GHG Protocol

• 10 years work

• Platform for all major carbon markets/

registries

• MoU with ISO

• Tool for measurement, reporting and

verification of Greenhouse Gases

(GHG) for

• Additional modules being developed

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Work Program

Focus Areas

The Business Role

Energy and

Climate

Projects

- Water

- Energy

Efficiency in

Buildings

- Forest Products

- Cement

- Electricity

Utilities

- Tires

-Mobility

- Mining

- Chemicals

Solutions,

Implementation

and Advocacy

- Eco Patent

Commons

-Urban

Infrastructure

-Sustainable Value

Chain

- Maritime

Initiatives

Regional Network

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FA Ecosystems

• Ecosystem degradation is a risk to

companies

– Core operations

– Value chain

Co-Chair:

• MoU with IUCN on markets, business

& ecosytems

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Ecosystem Services Review (ESR)

• Structured method to develop strategies to

manage risks and opportunities arising from

dependence and impact on ecosystems

• WRI/ WBCSD/ Meridian Institute

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Ecosystem Valuation Initiative (EVI)

“Corporate Ecosystem Valuation”

– Building the case for integrating

corporate ecosystem valuation

as a key component in business

strategies

t – Road testing “Guide to Corporate NEW

Ecosystem Valuation” with around

20 WBCSD member companies

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TEEB – The Economics of Ecosystems

and Biodiversity

• “Stern Report” on ecosystems

• G8 process

Analysis:

global economic

benefit of biological

diversity and costs of

conservation

vs.

costs of the loss of

biodiversity and the

failure to take

protective measures

• Phase 1 result:

– 1.4 - 3.1 trillion EUR annual loss of natural capital just

based on deforestation

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Convention on Biological Diversity (CBD)

• CBD COP 10: Nagoya,

October 2010

• “International Business and Ecosystems

Day” jointly with IUCN and Nippon

Keidanren

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Work Program

Focus Areas

The Business Role

Energy and

Climate

Projects

- Water

- Energy

Efficiency in

Buildings

- Forest Products

- Cement

- Electricity

Utilities

- Tires

-Mobility

- Mining

- Chemicals

Solutions,

Implementation

and Advocacy

- Eco Patent

Commons

-Urban

Infrastructure

-Sustainable Value

Chain

- Maritime

Initiatives

Regional Network

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Water

• Report: “Water, Energy and

Climate Change”

– Water & Energy linked

– Impacts from ecosystems and

climate change

• Measuring water use &

assessing impacts:

– WBCSD Global Water Tool

• CH2MHill

– Founding partner of Water Footprint

Network

Development of ISO standard on

Co-Chairs:

water footprint

38

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Energy Efficiency in Buildings (EEB)

• Buildings represent 50 % of world

energy use

• Report: “Transforming the Market”

• Cutting building emissions by 50% globally

by 2050 is possible at an average

abatement cost of 25USD/tCO2

• Next Step

– Manifesto for member companies to

improve energy efficiency in their

buildings

Co-Chairs:

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Electricity Utilities

• Trilogy of policy reports

• “Power to Change: A business

contribution to a low-carbon

electricity future”

• Roadmap of sector specific

recommendations and policy

roundtable dialogues in South

Africa, China and Japan and US

• Scoping new phase

Co-Chairs:

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Cement Sustainability Initiative

• Leading the way on industry

sectoral approaches

• Actions:

–CO 2 measuring and reporting

– CDM methodology

– Technology Roadmap together with IEA

Co-Chairs:

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• 2020

Strategy 2020

– Milestone on the pathway to a sustainable world in

2050

• A lot of actions/changes must be initiated

2010-2020 for the world to be on a

sustainable trajectory

• Focus 2010-2020

– Solutions

– Policy frameworks that can support efficient

implementation

– Public-private partnerships/ coalitions

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Strategy 2020: Key Issue I

• Need for Systems Solutions

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System Solutions

• Water, Energy, Climate & Food

• Urban Infrastructure

– Buildings, transport, energy, water, waste

• “Smart Solutions” based on ICT

– Electricity grids, mobility, logistics,

appliances, buildings

Sustainable Value Chains

– Shipping

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Urban Infrastructure Initiative

• Need for systems solutions

– Buildings, mobility, energy, water

• Scoping phase completed

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• Issues

Sustainable Value Chains

– Logistics

– Measurement tools

– GHG Protocol module

• Currently WBCSD scoping for Fast

Moving Consumer Goods Companies:

– Carbon footprint

– Partnership with the Consumer Goods

Forum

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Strategy 2020: Key Issue II

Sustainable Consumption

• Efficiency & technology not enough to make

consumption sustainable

• Changes will be required to lifestyles and

broader demand-side d management

• “Facts and Trends” 2008

Sustainable consumption issues

have become core business issues

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Strategy 2020: Key Issue III

Talent: People matter

• The transition to sustainability requires

more skilled human resources

• Competitive advantage through

knowledge and people

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1.0%

0.5%

Changing demographics

Working age population p growth rates (% pa: 2006 – 50)

annum

India

Turkey

Brazil

Mexico

US

Indonesia

Australia

Canada

UK

France

China

Germany

Spain

Italy

Japan

Korea

Russia

0.0%

-0.5% 05%

-1.0%

-1.5%

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% change per


A World in Transition to Sustainability

• The world cannot succeed without

Business as a committed solution

provider to sustainable societies and

ecosystems

Business cannot succeed in a society

that fails

• Need to create better functioning

cooperation between governments and

business

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www.wbcsd.org

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