Björn Stigson, Former President of WBCSD

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


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)

47

40

39

33

29

29

28

21

18

18

14

30

30

33

29

39

37

35

35

33

30

26

19

24

23

31

26

27

32

38

44

47

54

4

6

5

7

6

7

5

6

5

5

6

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.


Globescan/SustainAbility Survey Results 2011


The Future Society: A growth story

0

1

2

3

4

5

6

7

8

9

10

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%


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.


Shifting Fortunes

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

Source: A

ngus Maddison, O

EC

D; IM

FFrom

The Econom

ist print edition. “W

restling for influence.” July 3rd 2008.

% Share of GDP

0

20

40

60

80

1913 1950 2005 2025

Emerging economies Developed economies

* At purchasing-power parity


Urbanization

50% urban in 2010: 3 billion70% urban in 2050: 6 billion


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


A World with limits in transition to sustainability

SocietyEconomy

Environment

Governance

Implementation


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



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



Korea• “1 of 5 Green Powerhouses globally”

• Largest share of economic stimulus devoted to “green” sector (80%)

• GGGI – Global Green Growth Institute


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

solutions




India• Supplier of low cost solutions based on domestic

demand from a large, poor population• 35 USD PC tablets launched Oct 2011



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



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


o SOx o NOx o Discharge to water


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?


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)


“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


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


Source: GFN / UNDP


Vision 2050 Pathway: 9 elements

TODAY

The pathway to Vision 20502050

Business Opportunities in Vision 2050


Building & transforming…

a. Citiesb. Infrastructure

c. Livelihoods & lifestyles

Helping change happen

Improving biocapacity & managing ecosystems


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


WBCSD work program

Focus Areas


Sector Projects


Climate Ecosystems

The Business Role

Capacity Building

Systems Solutions

- SDMI

- GHG Protocol






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


The Growing Importance of Energy Efficiency

SOURCE: IEA WEO 2009

Total(2030) = 13840 MTEfficiency= 57%

Influencing consumption


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


WBCSD work program

Focus Areas


Sector Projects


Climate Ecosystems

The Business Role

Capacity Building

Systems Solutions

- SDMI

- GHG Protocol





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)



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)


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


WBCSD work program

Focus Areas


Sector Projects


Climate Ecosystems

The Business Role

Capacity Building

Systems Solutions

- SDMI

- GHG Protocol






WBCSD work programFocus Areas


Sector Projects


Climate Ecosystems

The Business Role

Capacity Building

Systems Solutions

- SDMI

- GHG Protocol






A World with limits in transition to sustainability

SocietyEconomy

Environment

Governance

Implementation

The Rio Decades: 1992 - 2012Changing 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



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


Business cannot succeed in a society that fails!

Björn Stigson, Former President of WBCSD

Documents

Transcript of Björn Stigson, Former President of WBCSD