björn stigson, former president of wbcsd professor at university of gothenburg school of business,...
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Björn Stigson, Former President of WBCSD Professor at University of Gothenburg School of Business, Economics and Law,
Honorary Doctor’s Day, Malardalens Hogskola, Sweden, 8 May, 2012
Business and Sustainable Development – The Green
Race is on
Malardalens, May 2012
WBCSD 2012 Coalition of some 200 leading companies. Market capitalization: 6,000 BUSD; 13 M employees
Malardalens, May 2012
The Regional Network Today
• 2011
BCSD El Salvador
BCSD Argentina
PBE (Philippines)
United States BCSD
EpE (France)
BCSD Thailand
BCSD Malaysia
BCSD Zimbabwe
BCSD Mexico
BCSD Honduras
Vernadsky Foundation
(Russia)
BCSD Croatia
uniRSE (Nicaragua)
BCSD Taiwan
BCA (Australia)BCSD Brazil
BCSD Colombia
respACT BCSD AustriaBCSD
United Kingdom
BCSD Mongolia
New ZealandBCSD
APEQUE (Algeria)
FEBCSD Spain
FFA (Spain)
KoreaBCSD
AEEC (Egypt)
BCSD Portugal
Peru 2021
BCSD Ecuador
Excel Partnership (Canada)
NHO (Norway)
FEMA BCSD Mozambique
TERIBCSD India
BCSD Kazakhstan
Nippon Keidanren
(Japan)
CII (India)
CentraRSE Guatemala
AED (Costa Rica)
BCSD Bolivia
BCSD Paraguay
BEC (Hong Kong)
BCSD Sri Lanka
BCSD Hungary
DanishBCSD
DERES (Uruguay)
BCSD Pakistan
Curaçao BCSD
Business Europe
RBF (Poland)
BCSD UAE
ChinaBCSD
NBI (South Africa)
BCSDTurkey
econsense (Germany)
Acción RSE (Chile)
SEV-BCSD Greece
SumaRSE (Panama)
CGLI (Canada/USA)
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 20082007 2009 2010
VietnamBCSD
IndonesianBCSD
Maala Israel
2011
61 Partner Organizations
2012
UN Environment Programme (UNEP)
World Business Council for Sustainable Development (WBCSD)
World Wildlife Fund for Nature (WWF)
World Economic Forum (WEF)
International Union for Conservation of Nature (IUCN)
World Resources Institute (WRI)
United Nations Global Compact (UNGC)
Business for Social Responsibility (BSR)
Clinton Global Initiative (CGI)
International Business Leaders Forum (IBLF)
International Chamber of Commerce (ICC)
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Major (4+5) Neutral (3) Minor (1+2) DK/NA
WBCSD expected to play most significant role in advancing sustainability in next five years, after UNEP and ahead of WWF.
Malardalens, May 2012
Globescan/SustainAbility Survey Results 2011
Malardalens, May 2012
The Future Society: A growth story
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1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050
Source: United Nations Population Division, World Population Prospects: The 2006 Revision.
World population (in Billions): 1950-2050
85%
15%
Population in less developed countries
Population in more developed countries
2010= 6.9 billion
2050= 9.2 billion
+33%
85%
15%
Malardalens, May 2012
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.
Malardalens, May 2012
Shifting Fortunes
Emerging economies > 50% of global GDP and trend will continue
Sou
rce: A
ng
us M
ad
dison
, OE
CD
; IMF
From
Th
e E
con
omist prin
t editio
n.
“Wre
stling
for in
flue
nce.” July 3
rd 2
00
8.
% Share of GDP
0
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40
60
80
1913 1950 2005 2025
Emerging economies Developed economies
* At purchasing-power parity
Malardalens, May 2012
Shifting demographics
Source: UN population prospects, 2008
A largely aging world The cost of growing old
Total Age-related Spending in selected countries
% GDP 2010 2020 2030 2040 2050
US 10.8 12.5 15.1 17.1 18.5
France 24.9 26.5 29.1 31.0 31.9
Germany 20.0 22.0 25.1 27.8 29.5
Greece 18.6 21.4 26.6 32.6 36.6
Sweden 21.6 23.0 25.2 26.8 27.4
Japan 18.8 20.8 22.1 24.4 26.7
China 4.4 4.9 5.5 6.3 7.0
Indonesia 2.2 2.7 3.2 3.9 4.7
India 2.6 3.2 3.4 3.2 2.7
Brazil 13.6 14.4 17.0 21.3 25.9
Source: S&P’s Global Aging 2010: An Irreversible Truth
Malardalens, May 2012
A World with limits in transition to sustainability
SocietyEconomy
Environment
Governance
Implementation
Malardalens, May 2012
The Green Race is on
• “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:o Transform your home market to build domestic demand,
competences and scale for exports
Malardalens, May 2012
The Green Race is on
China • About to become the leader in the Green Race• Key component of 12th 5-Year Plan (2011-2015)• Renewable energy investment:
oNo. 1 rank globally
Malardalens, May 2012
The Green Race is on
Korea• “1 of 5 Green Powerhouses globally”
• Largest share of economic stimulus devoted to “green” sector (80%)
• GGGI – Global Green Growth Institute
Malardalens, May 2012
Japan• Most energy efficient economy• Has a good technology platform for green
solutions
The Green Race is on
Malardalens, May 2012
The Green Race is on
India• Supplier of low cost solutions based on domestic
demand from a large, poor population• 35 USD PC tablets launched Oct 2011
Malardalens, May 2012
The Green Race is on
EU • Market leader today on green technology exports
(35% market share)• 300% increase in R&D for green technologies in
2009• Transformation of the internal market?
People’s resistance to change and facing up to realities- Greece- Spain
Malardalens, May 2012
The Green Race is on
US • Mobilizing the US innovation capability?• Transformation of the home market?• Political deadlock – very inward looking• “The Second Sputnik Moment”
– Stephen Chu
Consequences for Global Business
• Availability of resources will be more limited and more expensive• Pollution will carry a priceo CO2
• Resource efficient, low-polluting solutions will be strategic priorities for companieso A condition for staying in business
• Measurement, reporting and verification of company sustainability performance will be required by governments, financial markets and consumers
Malardalens, May 2012
o SOx o NOx o Discharge to water
Malardalens, May 2012
WBCSD work program
Focus Areas
- Water - Buildings - Forest Products - Cement- Electricity Utilities- Tires- Mobility- Mining
Sector Projects
DevelopmentEnergy and
Climate Ecosystems
The Business Role
Capacity Building
Systems Solutions
- SDMI
- GHG Protocol
- Eco Patent Commons
• Urban Infrastructure
• Sustainable Consumption & Value Chains
• Food, water & land-use
The Business Role Focus Area
“Business cannot succeed in a society that fails.”
But, what does that mean?
Malardalens, May 2012
Tomorrow’s Leaders Group (2004 – 2005)
“From challenge to opportunity – The Role of Business in Tomorrow’s Society” 2006Co-authors: P Polman (P&G) and J Manzoni (BP)
Malardalens, May 2012
“We believe that the leading global companies of 2020 will be those that provide goods and services and reach new customers in ways that address the world’s major challenges – including poverty, climate change, resource depletion, globalisation and demographic shifts.” A Manifesto for Tomorrow’s Global Business
Malardalens, May 2012
WBCSD Vision 2050 2008 - 2010
Vision 2050: 9 Billion people, living well, within limits of the planet
A platform for dialogue about the role of business in a resource & carbon constrained world.
Human Development Index (HDI)
Reaching Vision 2050: Two Mega Changes for Success, Two Innovation Challenges for the World
Malardalens, May 2012
Source: GFN / UNDP
Business Opportunities in Vision 2050
Malardalens, May 2012
Building & transforming…
a. Cities
b. Infrastructure
c. Livelihoods & lifestyles
Helping change happen
Improving biocapacity &
managing ecosystems
Malardalens, May 2012
WBCSD 2012
• “Vision 2050”
• “Changing Pace”– Public policies to scale and accelerate business action towards
Vision 2050
• “Commitments to Actions”– Actions that Business and companies are willing to commit to
Malardalens, May 2012
WBCSD work program
Focus Areas
- Water - Buildings - Forest Products - Cement- Electricity Utilities- Tires- Mobility- Mining
Sector Projects
DevelopmentEnergy and
Climate Ecosystems
The Business Role
Capacity Building
Systems Solutions
- SDMI
- GHG Protocol
- Eco Patent Commons
• Urban Infrastructure
• Sustainable Consumption & Value Chains
• Food, water & land-use
Malardalens, May 2012
Energy & Climate today
• The future energy system and energy mix post Fukushima?
• Overriding theme:- Electrification of the energy system
• Specific issues:• Nuclear?• More renewables and gas• More distributed electricity generation• Focus on energy efficiency
Malardalens, May 2012
The Growing Importance of Energy Efficiency
SOURCE: IEA WEO 2009
Total(2030) = 13840 MTEfficiency= 57%
Influencing consumption
Malardalens, May 2012
Energy and Climate today
Many critical systems solutions/trade offs remain to be solved (“Nexus” problems)• - Energy
• Urban infrastructure – Buildings – Land transport―Electricity generation
- Land use- Water - Food
Malardalens, May 2012
WBCSD work program
Focus Areas
- Water - Buildings - Forest Products - Cement- Electricity Utilities- Tires- Mobility- Mining
Sector Projects
DevelopmentEnergy and
Climate Ecosystems
The Business Role
Capacity Building
Systems Solutions
- SDMI
- GHG Protocol
- Eco Patent Commons
• Urban Infrastructure
• Sustainable Consumption & Value Chains
• Food, water & land-use
Sector approaches fulfill a multitude of roles
• Platforms to address sector license to operate, innovate and grow
• Engagement along the entire value chain
• Drivers of a “level playing field” via common standards and datao GHG Protocols
• Platforms for effective national implementation (NAMAs)
Malardalens, May 2012
Malardalens, May 2012
Cement Sustainability Initiative (CSI) • 23 member companies - 10 years of successful collaboration• Achievements:
oGlobal database on energy and CO2
o Industry guidelines & company commitments (emissions, fuels, raw materials, safety management)
Malardalens, May 2012
Forest Solutions
• Forests role in climate change (REDD +)• Broadening role of the sector:
Bio-energy, biodiversity, water and smart packaging
* REDD+: Reducing Emission from Deforestation and
forest Degradation in developing countries
Malardalens, May 2012
WBCSD work program
Focus Areas
- Water - Buildings - Forest Products - Cement- Electricity Utilities- Tires- Mobility- Mining
Sector Projects
DevelopmentEnergy and
Climate Ecosystems
The Business Role
Capacity Building
Systems Solutions
- SDMI
- GHG Protocol
- Eco Patent Commons
• Urban Infrastructure
• Sustainable Consumption & Value Chains
• Food, water & land-use
Malardalens, May 2012
WBCSD work programFocus Areas
- Water - Buildings - Forest Products - Cement- Electricity Utilities- Tires- Mobility- Mining
Sector Projects
DevelopmentEnergy and
Climate Ecosystems
The Business Role
Capacity Building
Systems Solutions
- SDMI
- GHG Protocol
- Eco Patent Commons
• Urban Infrastructure
• Sustainable Consumption & Value Chains
• Food, water & land-use
Malardalens, May 2012
A World with limits in transition to sustainability
SocietyEconomy
Environment
Governance
Implementation
The Rio Decades: 1992 - 2012
Changing Roles
Rio 1992:• A bipolar world
“Governments and NGOs”
Rio + 5, 1997:• A tripartite world• Governments, Business and Civil Society
Johannesburg 2002:Business: A provider and implementer of solutions and actions
Rio + 20, 2012Business: Ahead of governments in driving change and actions
Malardalens, May 2012
Malardalens, May 2012
New Public Private Partnerships needed• Between governments and business
o Both globally and nationallyo Business has a major role to play as a solutions provider
• Business to businesso Cooperation within industry sectors across country borders will grow in
importanceo Between companies and WBCSD as a platform to jointly address green
growth and sustainability
• With civil societyo To establish trust for difficult trade offs and transformations
• With academiao To build capacity for implementation