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Business and Sustainable Development – The Green Race is on. 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. WBCSD 2012

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slide1

Business and Sustainable Development – The Green Race is on

Björn Stigson, Former President of WBCSD

Professor at University of Gothenburg School of Business, Economics and Law,

Honorary Doctor’s Day, MalardalensHogskola, Sweden, 8 May, 2012

slide2

WBCSD 2012

Coalition of some 200 leading companies. Market capitalization: 6,000 BUSD; 13 M employees

Malardalens, May 2012

the regional network today
The Regional Network Today

61 Partner Organizations

NHO (Norway)

RBF (Poland)

Business Europe

  • 2011

respACT BCSD Austria

Danish

BCSD

Excel Partnership (Canada)

BCSD

United Kingdom

econsense (Germany)

Korea

BCSD

Vernadsky Foundation

(Russia)

EpE (France)

BCSD Mongolia

Nippon Keidanren (Japan)

United States BCSD

FFA (Spain)

CGLI (Canada/USA)

BCSD Hungary

BCSD Kazakhstan

FE

BCSD Spain

BCSD

Turkey

CII (India)

BCSD Taiwan

BCSD Portugal

BCSD Mexico

CentraRSE Guatemala

Maala Israel

BCSD UAE

China

BCSD

SEV-BCSD Greece

BCSD Croatia

BCSD Honduras

BCSD El Salvador

BEC

(Hong Kong)

AEEC (Egypt)

uniRSE (Nicaragua)

APEQUE (Algeria)

SumaRSE (Panama)

Vietnam

BCSD

Curaçao BCSD

AED

(Costa Rica)

BCSD Zimbabwe

BCSD Pakistan

TERI

BCSD India

PBE (Philippines)

BCSD Bolivia

BCSD

Sri Lanka

BCSD Colombia

BCSD Ecuador

Indonesian

BCSD

BCSD Brazil

BCSD Thailand

BCA (Australia)

Peru 2021

BCSD Paraguay

FEMA

BCSD Mozambique

New Zealand

BCSD

BCSD Malaysia

DERES (Uruguay)

Acción RSE (Chile)

NBI

(South Africa)

BCSD Argentina

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2012

2011

Malardalens, May 2012

slide4

Globescan/SustainAbility Survey Results 2011

WBCSD expected to play most significant role in advancing sustainability in next five years, after UNEP and ahead of WWF.

Malardalens, May 2012

the future society a growth story
The Future Society: A growth story

World population (in Billions): 1950-2050

2050= 9.2 billion

+33%

2010= 6.9 billion

85%

Population in less developed countries

85%

15%

Population in more developed countries

15%

Source: United Nations Population Division, World Population Prospects: The 2006 Revision.

Malardalens, May 2012

development the poverty challenge
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
Shifting Fortunes

% Share of GDP

* At purchasing-power parity

Source: Angus Maddison, OECD; IMF

From The Economist print edition.

“Wrestling for influence.” July 3rd 2008.

Emerging economies > 50% of global GDP and trend will continue

Malardalens, May 2012

urbanization
Urbanization

50% urban in 2010: 3 billion

70% urban in 2050: 6 billion

Malardalens, May 2012

shifting demographics
Shifting demographics

A largely aging world

The cost of growing old

Source: UN population prospects, 2008

Malardalens, May 2012

Source: S&P’s Global Aging 2010: An Irreversible Truth

a world with limits in transition to sustainability
A World with limits in transition to sustainability

Implementation

Governance

Environment

Economy

Society

Malardalens, May 2012

the green race is on
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:
        • Transform your home market to build domestic demand, competences and scale for exports

Malardalens, May 2012

the green race is on1
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:
        • No. 1 rank globally

Malardalens, May 2012

the green race is on2
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

slide14

The Green Race is on

Japan

  • Most energy efficient economy
  • Has a good technology platform for green solutions

Malardalens, May 2012

the green race is on3
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 on4
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 on5
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

Malardalens, May 2012

consequences for global business
Consequences for Global Business
  • Availability of resources will be more limited and more expensive
  • Pollution will carry a price
    • CO2
  • Resource efficient, low-polluting solutions will be strategic priorities for companies
    • A condition for staying in business
  • Measurement, reporting and verification of company sustainability performance will be required by governments, financial markets and consumers
  • NOx
  • Discharge to water
  • SOx

Malardalens, May 2012

wbcsd work program
WBCSD work program

Focus Areas

The Business Role

Energy and

Climate

Development

Ecosystems

Sector

Projects

Capacity Building

  • - Water
  • - Buildings
  • - Forest Products
  • - Cement
  • Electricity
  • Utilities
  • Tires
  • Mobility
  • Mining
  • SDMI
  • GHG Protocol
  • Eco Patent Commons
  • Urban Infrastructure
  • Sustainable Consumption
  • & Value Chains
  • Food, water & land-use

Systems Solutions

Malardalens, May 2012

the business role focus area
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
Tomorrow’s Leaders Group (2004 – 2005)

“From challenge to opportunity – The Role of Business in Tomorrow’s Society” 2006

Co-authors: P Polman (P&G) and J Manzoni (BP)

“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
WBCSD Vision 2050 2008 - 2010

A platform for dialogue about the role of business in a resource & carbon constrained world.

Vision 2050: 9 Billion people, living well, within limits of the planet

Malardalens, May 2012

reaching vision 2050 two mega changes for success two innovation challenges for the world
Reaching Vision 2050: Two Mega Changes for Success, Two Innovation Challenges for the World

Human Development Index (HDI)

Malardalens, May 2012

Source: GFN / UNDP

vision 2050 pathway 9 elements
Vision 2050 Pathway: 9 elements

The pathway to Vision 2050

2050

Malardalens, May 2012

TODAY

wbcsd 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 program1
WBCSD work program

Focus Areas

The Business Role

Energy and

Climate

Development

Ecosystems

Sector

Projects

Capacity Building

  • - Water
  • - Buildings
  • - Forest Products
  • - Cement
  • Electricity
  • Utilities
  • Tires
  • Mobility
  • Mining
  • SDMI
  • GHG Protocol
  • Eco Patent Commons
  • Urban Infrastructure
  • Sustainable Consumption
  • & Value Chains
  • Food, water & land-use

Systems Solutions

Malardalens, May 2012

energy climate today
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
The Growing Importance of Energy Efficiency

SOURCE: IEA WEO 2009

Total(2030) = 13840 MT

Efficiency= 57%

Influencing consumption

Malardalens, May 2012

energy and climate today
Energy and Climate today

Many critical systems solutions/trade offs remain to be solved (“Nexus” problems)

      • - Energy
  • Urban infrastructure – Buildings – Land transport
    • Electricity generation
  • - Water

- Food

- Land use

Malardalens, May 2012

wbcsd work program2
WBCSD work program

Focus Areas

The Business Role

Energy and

Climate

Development

Ecosystems

Sector

Projects

Capacity Building

  • - Water
  • - Buildings
  • - Forest Products
  • - Cement
  • Electricity
  • Utilities
  • Tires
  • Mobility
  • Mining
  • SDMI
  • GHG Protocol
  • Eco Patent Commons
  • Urban Infrastructure
  • Sustainable Consumption
  • & Value Chains
  • Food, water & land-use

Systems Solutions

Malardalens, May 2012

slide32

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 data
    • GHG Protocols
  • Platforms for effective national implementation (NAMAs)

Malardalens, May 2012

cement sustainability initiative csi
Cement Sustainability Initiative (CSI)
  • 23 member companies - 10 years of successful collaboration
  • Achievements:
    • Global database on energy and CO2
    • Industry guidelines & company commitments (emissions, fuels, raw materials, safety management)

Malardalens, May 2012

forest solutions
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 program3
WBCSD work program

Focus Areas

The Business Role

Energy and

Climate

Development

Ecosystems

Sector

Projects

Capacity Building

  • - Water
  • - Buildings
  • - Forest Products
  • - Cement
  • Electricity
  • Utilities
  • Tires
  • Mobility
  • Mining
  • SDMI
  • GHG Protocol
  • Eco Patent Commons
  • Urban Infrastructure
  • Sustainable Consumption
  • & Value Chains
  • Food, water & land-use

Systems Solutions

Malardalens, May 2012

wbcsd work program4
WBCSD work program

Focus Areas

The Business Role

Energy and

Climate

Development

Ecosystems

Sector

Projects

Capacity Building

  • - Water
  • - Buildings
  • - Forest Products
  • - Cement
  • Electricity
  • Utilities
  • Tires
  • Mobility
  • Mining
  • SDMI
  • GHG Protocol
  • Eco Patent Commons
  • Urban Infrastructure
  • Sustainable Consumption
  • & Value Chains
  • Food, water & land-use

Systems Solutions

Malardalens, May 2012

a world with limits in transition to sustainability1
A World with limits in transition to sustainability

Implementation

Governance

Environment

Economy

Society

Malardalens, May 2012

slide38

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, 2012
    • Business: Ahead of governments in driving change and actions

Malardalens, May 2012

new public private partnerships needed
New Public Private Partnerships needed
  • Between governments and business
    • Both globally and nationally
    • Business has a major role to play as a solutions provider
  • Business to business
    • Cooperation within industry sectors across country borders will grow in importance
    • Between companies and WBCSD as a platform to jointly address green growth and sustainability
  • With civil society
    • To establish trust for difficult trade offs and transformations
  • With academia
    • To build capacity for implementation

Malardalens, May 2012

slide40

Business cannot succeed

in a society that fails!

Malardalens, May 2012