Transcript Slide 1
Business and Sustainable Development – The Green Race is on Goteborg, November 2010 Björn Stigson Visiting Professor in Applied Corporate Management 1 Agenda 1. 2. 3. 4. WBCSD The Sustainable Development Context The Green Race is On WBCSD Work Program 2 WBCSD Coalition of some 200 leading companies • Market capitalization: 7,000 BUSD • Total member company employees:13 million • Global outreach – Supplies products and services to half of the world’s population every day 3 WBCSD Membership 11 7 21 16 Europe (EU) 68 North America (NAFTA) 40 Japan 24 Europe (non-EU) 18 Asia (ex-Japan) 16 Latin America 11 Oceania 7 Africa 2 Middle East 1 68 18 24 40 4 Swedish Members 5 WBCSD Sectors Utilities & Power Oil & Gas 4 4 2111 4 22 Consumer Goods 21 Mining & Metals Engineering 6 Cement 7 18 8 10 14 Chemicals Services 11 Tires 11 Forest & Paper Products 10 IT & Telecoms Auto Construction 13 Food & Beverages Healthcare 11 13 11 12 12 14 13 13 12 12 Banks & Insurance 10 21 18 Maritime Logistics Media Retail Aviation Trading Water Services 10 8 7 6 4 4 4 2 2 2 1 1 1 WBCSD Regional Network Channel to globally disseminate WBCSD’s messages, to promote implementation of concrete projects on the ground and to provide input to WBCSD work program A World in Transition to Sustainability Environment Economy Society The Future Society: A growth story World population (in Billions): 1950-2050 10 2050= 9.2 billion 9 +33% 8 7 2010= 6.9 billion 6 85% 5 4 3 2 Population in less developed countries 85% Population in more developed countries 15% 15% 1 0 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050 Source: United Nations Population Division, World Population Prospects: The 2006 Revision. Development: The Poverty Challenge Income poverty: Over 2 billion people live on less than $2/day Energy poverty: 1.6 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. 10 Urbanization 50% urban in 2010: 3 billion 11 The Urbanized Future 70% urban in 2050: 6 billion 2010: 3 billion 70% urban urban rural 60% urban Billions of inhabitants 47% urban 6.4 36% urban 5.0 2.4 2.9 3.2 3.3 2.8 1.3 1970 2000 2030 2050 Source: United Nations, World Urbanization Prospects: The 2007 Revision Shifting demographics A largely aging world Source: UN population prospects, 2008 The cost of growing old Age-related spending (as % of GDP in selected countries) Source: Standard and Poor’s 2010 13 Shifting Fortunes % Share of GDP * At purchasing-power parity Emerging economies Developed economies 80 40 20 1913 1950 2005 2025 0 Source: Angus Maddison, OECD; IMF From The Economist print edition. “Wrestling for influence.” July 3rd 2008. 60 Emerging economies > 50% of global GDP and trend will continue 14 A World in Transition to Sustainability Geography Solutions Risks and Returns Mindsets Environment Economy Society Financial Sector 15 The World is Turning Green “The Green Race is on” between countries to transform to low carbon economies and to become the leading supplier of resource efficient technologies & solutions If you want to win: oTransform your home market to build domestic demand, competences and scale for exports 16 The Green Race is On EU – Market leader today on green technology exports (40% market share) – 300% increase in R&D for green technologies in 2009 – Transformation of the internal market? US – Mobilizing the US innovation capability? – Transformation of the home market? 17 The Green Race is On China – About to become the leader in the race – Key component of next 5-Year Plan (20112015) – Clean energy investment : No. 1 rank with 21% of the 162 billion USD invested globally – Taking the lead on solar & wind 18 The Green Race is On Japan – Most energy efficient economy – Has a good technology platform for green solutions Korea – Largest share of economic stimulus devoted to “green” sector (80%) – 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 19 WBCSD Work Program Focus Areas The Business Role Energy and Climate Projects - Water - Buildings - Forest Products - Cement - Electricity Utilities - Tires -Mobility - Mining -Eco Patent Commons -Maritime Joint ventures • Urban Infrastructure • Sustainable Value • Urban Infrastructure Chains • Sustainable Value Chains Systems Solutions - GHG Protocol - SDMI WBCSD Vision 2050 Vision 2050: A platform for dialogue about the role of business in a resource & carbon constrained world. 21 Source: GFN / UNDP Ecological Footprint (Global Hectares per Person) Vision 2050: Living well, within limits of the planet Human Development Index (HDI) 22 Vision 2050 Pathway: 9 elements The pathway to Vision 2050 TODAY 23 Turbulent Teens The pathway to Vision 2050 TODAY 24 Opportunities in Vision 2050 Building & transforming… a. Cities b. Infrastructure c. Livelihoods & lifestyles Improving biocapacity & managing ecosystems Helping change happen Size of potential additional sustainability related business opportunities Sector Annual Value in 2050 (US$ trillion at constant 2008 prices)(+/- 50%) Energy Forestry Agriculture Water Metals TOTAL: Natural Resources Health and Education TOTAL % of projected world GDP in 2050 (+/-50%) 2.0 0.2 1.2 0.2 0.5 4.1 1.0 0.1 0.6 0.1 0.2 2.0 2.1 6.2 1.0 3.0 PwC estimates drawing on data from IEA, OECD and World Bank 26 Follow-up of Vision 2050 Green Growth / Green Race – Cooperation with OECD Consumption and Lifestyles People Matter – Sustainable Management Institute 27 WBCSD Work Program Focus Areas The Business Role Energy and Climate Projects - Water - Buildings - Forest Products - Cement - Electricity Utilities - Tires -Mobility - Mining -Eco Patent Commons -Maritime Joint ventures • Urban Infrastructure • Sustainable Value • Urban Infrastructure Chains • Sustainable Value Chains Systems Solutions - GHG Protocol - SDMI Development Focus Area Focus – To contribute to a sustainable future for emerging economies and developing countries Key Workstreams: 1. National Market Participation 2. Inclusive Business 3. Energy Access Partnerships (Africa, Asia-Pacific) Development Focus Area “Business & Development” Message: – Business is a key source of economic growth, employment & technology 30 UN Millennium Development Goals Summit September 2010 Workshop: “Accelerating progress towards the MDGs through Inclusive Business” Organized by WBCSD and other leading business organizations and networks UN Private Sector Forum UN Secretary-General Ban Ki-moon: “Business is a primary driver of innovation, investment and job creation. There is no longer any doubt that business plays an integral role in delivering economic and social progress." World Bank President Robert Zoellick: "The problem of the poor is not the dominance of markets, but its absence." Measurement & Reporting Measuring Impact Framework – Helping companies measure impacts to inform investment decisions and conversations with stakeholders Forthcoming: summary of impact measurement methodologies relevant to business WBCSD Work Program Focus Areas The Business Role Energy and Climate Projects - Water - Buildings - Forest Products - Cement - Electricity Utilities - Tires -Mobility - Mining -Eco Patent Commons -Maritime Joint ventures • Urban Infrastructure • Sustainable Value • Urban Infrastructure Chains • Sustainable Value Chains Systems Solutions - GHG Protocol - SDMI COP 15 Copenhagen Takeaways: Copenhagen saw the end of old ways of intergovernmental negotiations The Copenhagen Accord – A non binding “Letter of Intent” – But little clarity on how this will be implemented 34 The Copenhagen Accord Main elements: – Committed limiting global warming to 2°C – Encouraged pledges of cuts from developed countries and actions from developing countries – Agreed to transparent reporting of actions – Proposed new mechanisms to manage finance, technology and REDD+ • Committed $30 to 2012 • 2nd phase - 100 bln$ annually by 2020 35 UNFCCC COP 16 Cancun Little urgency in UN negotiations postCopenhagen Expectations for COP16 Cancun played down Major obstacles: – Lack of US domestic legislation – Country commitments to further reductions? – Reporting and verification principles? – Technology transfer and funding to developing countries? 36 Climate negotiations and business Governments recognize necessity for business input WBCSD study for the EU focused on improving this interface – Need to build an informal track for engagement to complement stronger links to the formal proceedings Mexican Dialogues 2010 – Providing input on Finance, Carbon Markets and Technology 37 Technology Key issue for business – Need for long term plans to guide investments and funding of RD&D New WBCSD reports: 1. “Enabling Frameworks for Technology Diffusion” 2. “Innovating for green growth - Drivers of private sector RD&D” IEA cooperation with WBCSD: – IEA Technology Roadmaps – IEA “Technology Perspectives to 2050” – IEA Technology Platform project 38 WBCSD Work Program Focus Areas The Business Role Energy and Climate Projects - Water - Buildings - Forest Products - Cement - Electricity Utilities - Tires -Mobility - Mining -Eco Patent Commons -Maritime Joint ventures • Urban Infrastructure • Sustainable Value • Urban Infrastructure Chains • Sustainable Value Chains Systems Solutions - GHG Protocol - SDMI Ecosystems Ecosystems degradation is a risk and an opportunity for business – Core operations – Value chains Convention on Biological Diversity (CBD) – COP 10 Nagoya, Japan 40 Convention on Biological Diversity COP 10 Strategic Plan approved by 193 parties which have 2 years to adjust their national biodiversity action plans – “Aichi” targets for biodiversity by 2020 e.g. • Increase land Protected Area by 17%; marine to 10 % • Halve rate of habitat lost including forests – Nagoya Protocol on Access & Benefit Sharing (ABS) • Consultation obligations for use of genetic resources 41 WBCSD and Ecosystems Ecosystem Services Review (ESR) – method to develop strategies to manage risks and opportunities arising from dependence and impact on ecosystems “Ecosystem Valuation Initiative” 42 Convention on Biological Diversity (CBD) New WBCSD publications: 1. Effective Biodiversity and Ecosystem policy and Regulation Business has a strong interest in ensuring ecosystems continue to function properly to deliver both business and societal value A framework for closer collaboration between business and policy makers on biodiversity conservation is needed 2. Responding to the Biodiversity Challenge 30 member company case illustrations responding to CBD core objectives 43 WBCSD Work Program Focus Areas The Business Role Energy and Climate Projects - Water - Buildings - Forest Products - Cement - Electricity Utilities - Tires -Mobility - Mining -Eco Patent Commons -Maritime Joint ventures • Urban Infrastructure • Sustainable Value • Urban Infrastructure Chains • Sustainable Value Chains Systems Solutions - GHG Protocol - SDMI Urban Infrastructure Initiative (UII) Overall objective: Involving business early in the urban planning process will help create a cross-cutting strategy and provide competitive and effective solutions 45 Sustainable Value Chains Initiative Focus 1st Phase: – Fast Moving Consumer Goods End-of-life – Co-chaired by: • Unilever and Coca-Cola Consumer Objectives: disposal – A practical “how to” guide including best practice Consumer information, templates, case use studies, etc. – Leadership on the Rio +20 (2012) Sustainable Consumption agenda Material sourcing Manufacturing Distribution Sales & retail Consumer purchasing New potential Systems Solutions Food, water, land-use, energy, and climate change 47 WBCSD Work Program Focus Areas The Business Role Energy and Climate Projects - Water - Buildings - Forest Products - Cement - Electricity Utilities - Tires -Mobility - Mining -Eco Patent Commons -Maritime Joint ventures • Urban Infrastructure • Sustainable Value • Urban Infrastructure Chains • Sustainable Value Chains Systems Solutions - GHG Protocol - SDMI Water “Water, Energy and Climate Change” – Water & Energy linked – Impacts from ecosystems and climate change Measuring water use & assessing impacts: – WBCSD Global Water Tool – Water Footprint Network – Development of ISO standard on water footprint Business input to major water events 49 Cement Sustainability Initiative 24 member companies - 10 years of successful collaboration Achievements: – Cement CO2 Protocol – Global database on energy and CO2 – Industry guidelines & company commitments (emissions, fuels, raw materials, safety management) 5 Chinese members Cooperation with China Cement Association CSI/ IEA Technology Roadmap Outlines existing and potential technologies, and how they may help the industry support a halving of global CO ₂ emissions (Dec. 2009) 51 CSI – expanding scope Impacts on biodiversity Sustainable use of concrete Sustainable construction Electricity Utilities Trilogy of policy reports – “Power to Change: A business contribution to a low-carbon electricity future” – Roadmap of sector specific policy recommendations Next phase: – Input into the IEA – Global Energy and Water Initiative – e8 project Co-Chairs: 53 Energy Efficiency in Buildings (EEB) Buildings represent 50 % of world energy use Business opportunity for new buildings as well as refurbishing of existing ones Report: “Transforming the Market” Co-Chairs: Key Message: Cutting building emissions by 50% globally by 2050 is possible at an average abatement cost of 25USD/tCO2 (PIIE, 2009) EEB Manifesto – 95 Signatories so far Global Building Sector Roadmap in collaboration with IEA (2011) 54 A World in Transition to Sustainability WBCSD Book 1991: Changing Course Eco-efficiency : “Doing more with less” Aim: • To demonstrate that pollution is waste and sign of bad management • To argue that reducing pollution, improving efficiency and profit go hand in hand 55 A World in Transition to Sustainability The future is going to be resource and carbon constrained – I.e. The Green Race Business has a major role to play as a solution provider Business cannot succeed in a society that fails 56 www.wbcsd.org 57