BETTER BUSINESS BETTER WORLD

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2.2 Opportunities by economic system The opportunities identified in each system arise from tackling the biggest social and environmental challenges confronting the systems in line with the Global Goals. Food and agriculture. The global food system faces unprecedented challenges. There are 800 million undernourished people and 2 billion suffering from micronutrient deficiencies 41 ; crop yields are growing much more slowly than world population, which means that up to 220 million additional hectares of cropland could be needed by 2030 to meet expected demand for food, feed and fuel 42 ; and major environmental stresses, including water scarcity, loss of biodiversity, unsustainable fertiliser use and climate-driven extreme weather, all threaten supply. The 14 largest opportunities in 2030 identified for companies that develop business models addressing these and further challenges facing food and agriculture have an estimated potential value of over US$2.3 trillion at current prices. These opportunities include: • Reducing food waste in the value chain (worth US$155-405 billion a year by 2030). Today, 20-30 percent of food is wasted, much of it in post-harvest losses that are easy to prevent with technologies like small metal silos or plastic crates. 43 In India and Rwanda, such technologies have reduced losses by over 60 percent – and increased smallholder farmers’ incomes by more than 30 percent. 44 Photo credit: Flickr / LYSCDE 30
• Forest ecosystem services (US$140-365 billion a year by 2030). Deforestation and forest degradation accounts for 17 percent of global emissions, more than transport. 45 Just four commodities – beef, soy, palm oil and paper/pulp – are responsible for driving half of all deforestation. 46 Assuming a carbon price of US$50 per tonne by 2030 (roughly consistent with the planning assumption many leading companies make today) opens up major new opportunities in sustainable forest services, such as climate change mitigation, watershed services and biodiversity conservation, if mechanisms to pay for them develop too. • Low-income food markets (US$155-265 billion). The world’s-poorest people spend as much as 60 percent of their household income on food – yet undernutrition and malnutrition remain widespread. 47 Business can address this challenge by investing in supply chains and food innovation to give those on very low incomes access to food products that are more nutritious. As poverty decreases in line with Global Goal 2, so the 800 million people now undernourished will have more to spend on food. Cities. By 2030, 60 percent of the world’s population will live in cities, up from about 50 percent today. 48 But modern cities face a long list of problems. Up to 440 million urban households could be living in sub-standard housing by 2025. 49 Already, over 5.5 million premature deaths a year are attributable to household and outdoor air pollution. 50 Obesity is three to four times more common in cities than in rural areas in emerging markets . 51 Congestion is a costly urban trial. In cities, 10-15 percent of building material is wasted during construction 52 , and cities account for 70 percent of global energy use and energy-related GHG emissions. 53 For businesses addressing these challenges, the 16 largest opportunities have a potential value of US$3.7 trillion. They include: • Affordable housing (US$650-1,080 billion). Replacing today’s inadequate housing and building the additional units needed by 2025 would take US$9 trillion to US$11 trillion in construction spending alone. 54 With land, the total cost could be US$16 trillion. 55 But the gap between income available for housing and the annualised market price of a standard house is US$650 billion. 56 Filling this gap requires innovations that will unlock new land and better use of space for development, for instance, through offering “density bonuses” to developers, as well as more efficient techniques and resource use. • Energy efficiency – buildings (US$555-770 billion). The building sector accounts for around one-third of the total final energy consumption across the world and more than half of electricity demand. 57 Its energy demand could be shrunk by, for instance, retrofitting existing buildings with more efficient 31
Page 1 and 2: BETTER BUSINESS BETTER WORLD The re
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Page 13 and 14: towards achieving the Global Goals
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Page 17 and 18: Leading for sustainable development
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Page 39 and 40: EXHIBIT 6: Pricing externalities in
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governments making the repayments a
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More than half of the Global Goals
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percent, or 200 million people worl
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to the centre of business practice,
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any other (see Section 2.3). Yet 26
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electorates are angry and fearful.
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Unilever promotes health and well-b
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The Commission believes it would be
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6. CONCLUSION This report has prese
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through putting less tax on labour
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such catalytic ideas, which could c
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Photo credit: Hailey Tucker and Gis
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18 United Nations World Commission
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57 International Energy Agency (IEA
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95 Data-Pop Alliance, 2015. Reflect
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139 World Cocao Foundation, 2014. C
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184 IFC, 2009. In a Historic Step,
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227 UN Women, 2016. UN Women Annual
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Lagos Deep Offshore Logistics Base
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Business and Sustainable Developmen
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