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Outline

Outline. Development context & business role WBCSD role and platforms Engagement opportunities for WBCSD members and regional partners Key messages & partnerships. The Development context – 1 .

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Outline

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  1. Outline • Development context & business role • WBCSD role and platforms • Engagement opportunities for WBCSD members and regional partners • Key messages & partnerships

  2. TheDevelopmentcontext – 1 Historic shift of economic and political power from the traditional base of industrialized countries in the West to emerging economies % share of global GDP Source: Angus Maddison, OECD; IMF From The Economist print edition. “Wrestling for influence.” 3 July 2008 Yet: poverty and inequity remain critical challenges for sustainable development and global stability The Economist, 3 July 2008, “Wrestling for influence”

  3. Development: The Poverty Challenge TheDevelopmentcontext – 2 • Income poverty: • Over 2 billion people live on less than $2/day • Food poverty: • Close to 1 billion people are undernourished • 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. • Sanitation poverty: • 2.5 billion people without access to hygienic sanitation

  4. TheDevelopmentcontext – 3 • Exponential increase in demand for energy and natural resources to meet needs and aspirations of growing and increasingly urbanized population in emerging economies – growing pressure on world’s ecosystems 70% urban 6.4 urban 60% urban rural 5.0 47% urban Billions of inhabitants 3.2 3.3 36% urban 2.9 2.8 2.4 1.3 2050 1970 2000 2030 Source: United Nations, World Urbanization Prospects: The 2007 Revision The Economist, 19 September 2009

  5. TheDevelopmentcontext – 4 Population affected by climate-related disasters • Emerging economies will be most affected by the consequences of climate change and environmental degradation • No longer a choice between growth and ecological well-being • Need to improve the living standards of the world’s population while preserving the environment • Key: transition to a more inclusive, low-carbon and resourceefficienteconomy The Economist, 19 September 2009

  6. The role of business in Development •  Business: • Engine of economic growth and employment, source of technology and innovation • Critical role in providing solutions towards a more sustainable and equitable world • Business case: • Business cannot succeed in societies that fail • Risk management • Build positions in tomorrow’s growth markets • Transition to a more sustainableworld: major business opportunity

  7. WBCSD’s role in Development • Create awareness among business on risks and opportunities • Define the business role in sustainably addressing key development challenges and advocate business perspectives to policy makers and other relevant stakeholders • Demonstrate leadership by promoting business-ledaction on the ground

  8. Leadership: Development Focus Area Core Team (FACT) Company • BP • Brisa • Codelco • ERM • General Electric • GrupoNueva • SC Johnson • Toyota FACT members • Iain Conn, CEO, Refining & Marketing • Vasco de Mello, Chairman & CEO • José Pablo Arellano, Pres. & CEO • Dr. Robin Bidwell CBE, Exec. Chairman • John Rice, Vice Chairman • Roberto Salas, CEO • Steven Stanbrook, President, Developing • Markets • Dr. Fujio Cho, Chairman and Representative Director Co-Chairs

  9. Members of the Working Group

  10. Broader scope for the Focus Area • June-September 2009: review of future strategic direction and priorities in consultation with the FACT • Decision: broaden scope • From primarily focusing on doing business with low-income communities…. • …towards addressing the business role in improving the living standards of the growing and increasingly urbanized populations of the developing world in a sustainable way

  11. New structure • Offers more flexibilityin engaging in a broader set of activities along a number of platforms • Creates greater synergies with the Regional Network and other relevant WBCSD programs

  12. Objectives for 2010 • Defining and refining the business role in development through an advocacy piece on the role of business in a changing geopolitical and economic context and a series of issue briefs. • Promoting the application of the Measuring Impact Framework and feeding its findings into international measurement initiatives. • Demonstrating leadership in action by consolidating the inclusive business initiative in Latin America and promoting its replication in Africa, Asia, and the Middle East. • Implementing a new initiative on “Unlocking the Benefits of Local Content”. • Advocating business messages and solutions at relevant international processes and regional initiatives. • Profiling business contributions to development and sharing best practice through articles, case studies, videos, e-newsletter, etc.

  13. Thought leadership • Platform for leading-edge thinking and messaging on business and development • Forthcoming: • Advocacy piece on the business role in development, outlining WBCSD vision on Development • Discussion series / Issue briefs (on- and off-line) on specific topics • Quarterly Executive Update to members and regional partners

  14. Tools • Platform to access WBCSD tools to enhance companies awareness and capacity to respond to development risks and opportunities • Examples: • Measuring Impact Framework • Helping companies measure and assess impacts to inform investment decisions and conversations with stakeholders • Currently focusing on uptake by members and partners (also in cooperation with the WBCSD’s Future Leaders Team) and on providing input to external measurement frameworks such as Business Call to Action on the Millennium Development Goals, Oxfam, and others • Forthcoming: summary of impact measurement initiatives • Relevant toolsfromother WBCSD programs: • GHG Protocol • Global Water Tool • Ecosystems Services Review

  15. Regional engagement and action • Platform for cooperation with WBCSD’s Regional Network partners in developing countries and emerging economies • Examples: • WBCSD-SNV Netherlands Development Organization Alliance in 9 Latin American countries – 40 inclusive businesses ventures currently being implemented and ambitions of expansion to Africa and Asia. Forthcoming: publication capturing lessons learned and highlighting case stories. • Latin American Network of Inclusive Business Leaders – engagement of forward-thinking CEOs in advocacy & implementation • Annual WBCSD road shows – roll-out of WBCSD’s program and engagement of business and opinion leaders in key emerging economies (Brazil, China, India, Mexico, South Africa) • Other WBCSD projects • Vision 2050 workshops – providing input and credibility to the global project • WBCSD Sector Project dialogues – adding regional perspectives and testing messages

  16. Initiatives • Platform for companies to launch development-related projects under the umbrella of the WBCSD • Examples: • Mobility for Development (concluded) • 3-year project completed mid-2009 • Outreach phase, focus on disseminating the report’s findings and messages at relevant international and regional events • Initiative on “Unlocking the Benefits of Local Content” • Main aim: produce material that supports companies’ dialogues with governments and other stakeholders to enhance the local economic benefits of investments • Drawing on experiences of different companies, countries, and organizations

  17. Advocacy • Platform to access and influence international processes and initiatives • Examples • Global Platforms • Business Call to Action on the Millennium Development Goals • UNDP Growing Inclusive Markets Initiative • Financing for Development • UN Development Cooperation Forum • Regional Initiatives • Inter-American Development Bank • Asian Development Bank Energy for All Partnership • Energy Poverty Action with WEF and WEC

  18. Communications • Platform to profile leading edge business practices and contributions to development • Examples: • Sustain magazine October 2009 • Features a dozen Development-related stories and cases • WBCSD website – news stories, case studies, speeches, project updates, key documents • Case studies accessed on average 3’000 times within 3 months of posting • Monthly Business & Development e-newsletter • 14’000 subscribers to date • Inclusive Business blog • Average of 5 new articles per month, 3’500 page viewsper month

  19. How can WBCSD members and Regional Network partners tap into these platforms? • Participate in the project on “Unlocking the Benefits of Local Content” • Help shape the WBCSD’s vision on Development by reviewing the forthcoming advocacy piece • Apply the WBCSD Measuring Impact Framework to your company’s operations • Suggest topics and / or lead discussions with members and Regional Network partners (both on- and offline) • Participate in workshops of the Latin American Inclusive Business Leaders initiative in Mexico, Central and South America • Join inclusive business initiatives in Latin America, Africa, Asia or the Middle East • Take advantage of speaking opportunities offered through WBCSD’s participation in advocacy platforms • Profile your company’s contributions to development through articles, case studies, videos, etc. via WBCSD

  20. Key messages – 1 • Business is a solution provider • As an engine of economic growth and employment and a source of technology and innovation, business can provide solutions to critical development challenges. • Business is the major source of capital for developing countries • Aid is important, but the transition towards sustainable development in developing countries will require mobilizing private sector investments, which account for 85% of global financial flows. • The sustainable development of developing countries is a business opportunity • Major technological and infrastructural investments to sustainably meet the needs of a growing population in developing countries areneeded. This represents a major business opportunity for companies that anticipate trends and respond with smart solutions.

  21. Key messages – 2 • Business cannot succeed in societies that fail • By understanding and proactively addressing socio-economic and environmental risks, companies can underpin their license to operate, innovate and grow. • Inclusive business equals a win-win for business and society • By including low-income communities in their value chains, companies can meet their aims of growth and profitability, while addressing societal needs. • What gets measured gets done • By measuring the impact of business on society companies can understand their role and contribution to development and make better operational and investment decisions to improve this contribution. • Business cannot solve poverty, but poverty will not be solved without business • For business to effectively contribute to sustainable economicgrowth, the appropriate legal, institutional and financial framework conditions need to be in place – globally, regionally and nationally.

  22. Partnerships

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