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Bjorn Stigson's V100 Presentation
 

Bjorn Stigson's V100 Presentation

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Bjorn Stigson's presentation to the V100 business forum.

Bjorn Stigson's presentation to the V100 business forum.

Stigson is the president of the World Business Council for Sustainable Development.

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  • The BULK OF THE POPULATION and tomorrow’s consumers are also living in developing countries
  • Development is largely associated with the concept of “poverty” – this is subjective and defined in many ways, but access to basic services remains a critical component. Investments in these basic services are believed to help countries reach their millennium development goals.
  • These CONSUMERS are increasingly URBAN, and the move from RURAL to URBAN living results in INCREASE IN RESOURCE USE (in developing countries – the reverse is true in developed countries). As we have learned in the Mobility for Development study, these growing cities are not keeping pace with their infrastructure investments creating urgent demand for solutions around transport, energy, water and communications.
  • Development is in the first case an OPPORTUNITY STORY for business as GLOBAL GDP SHIFTS to “Emerging and DEVELOPING countries”

Bjorn Stigson's V100 Presentation Bjorn Stigson's V100 Presentation Presentation Transcript

  • Business and the Sustainable Development Landscape Edmonton, Canada Björn Stigson, WBCSD President
    • Coalition of some 200 leading companies
    • Market capitalization: 8,000 BUSD
    • Total member company employees:13 million
    • Global outreach
      • Supplies products and services to half of the world’s
      • population every day
    WBCSD
  • Where are our members?
    • Representing 36 countries – based on corporate headquarters
  • Canadian Members
  • Which sectors do they represent? 21 20 15 14 14 13 12 11 11 10 10 10 7 7 4 4 4 2 2 1 1
  • The World in Transition to Sustainability . Society Economy Environment
  • The Future Society: A Growth Story 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
  • 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.
  • The Future Society: Urban Billions of inhabitants Source: United Nations, World Urbanization Prospects: The 2007 Revision Source: Citymayors statistics, 2008 Growth of mega-cities 70% urban in 2050 1900 2020 47% urban 60% urban 1970 2000 2030 36% urban urban rural 70% urban 3.2 3.3 2.9 5.0 1.3 2.4 2.8 6.4 2050
  • The Future Society: Shifting Fortunes Emerging economies > 50% of global GDP and trend will continue Source: Angus Maddison, OECD; IMF From The Economist print edition. “ Wrestling for influence.” July 3rd 2008. % Share of GDP * At purchasing-power parity
  • The World in Transition to Sustainability Society Economy Environment Efficiency Business Governments Implementation Local Regional National Global Solutions Markets Regulations Infrastructure Technology Institutions Financing Mindsets Priorities Equity Shared vision Values
  • Work Program . Focus Areas
    • - Water
    • - Energy
    • Efficiency in
    • Buildings
    • - Forest Products
    • - Cement
    • Electricity
    • Utilities
    • Tires
    • Maritime
    • Mobility
    • Mining
    • - Chemicals
    Initiatives Projects
    • - Eco Patent
    • Commons
    • Urban
    • Infrastructure
    • -Sustainable Value Chain
  • Vision 2050 30 members rethinking the roles that companies must play over the next few decades to enable the world to move towards being sustainable as well as thrive themselves Vision 2050
  • Living well, within the limits of the planet WBCSD 2009 Council & Liaison Delegate Meeting - Washington D.C. Human Development Index (HDI) Ecological Footprint (Global Hectares per Person) Source: WWF / GFN / UNDP
    • Radical change necessary
      • Speed and scale challenges
    • Hyper-innovation
      • Get more out of the planet
      • Rich: Lower impact, keep quality of life
      • Poor: Grow with low SD impact
    Vision 2050: Outcomes
  • Sustainable Consumption
    • Efficiency & technology not enough to make consumption sustainable
    • Changes will be required to lifestyles and broader demand-side management
    • Redefine GDP & Quality of life
    • “ Facts and Trends” 2008
      • Sustainable consumption issues have become core business issues
  • . Focus Areas
    • - Water
    • - Energy
    • Efficiency in
    • Buildings
    • - Forest Products
    • - Cement
    • Electricity
    • Utilities
    • Tires
    • Mobility
    • Mining
    • - Chemicals
    Initiatives Projects
    • - Eco Patent
    • Commons
    • Urban
    • Infrastructure
    • -Sustainable Value Chain
    • - Maritime
  • IEA’s World Energy Outlook 2008
    • Current energy trends are patently unsustainable – socially, environmentally, economically.
    • To avoid “abrupt and irreversible” climate change we need a major decarbonization of the world’s energy system.
  • Global emissions scenarios Source: IEA. ETP 2008
  • Reductions in energy-related CO 2 emissions in the climate policy scenarios Source: IEA. WEO 2008. Presentation by Dr. Fatih Birol
  • Climate Landscape 6 % Russia 4 % Japan 12 % EU (15) 8 % 20 % USA 20% 51% 20 % China India 4 % Other developing countries 27 % Emissions from countries subject to reduction obligations under the Kyoto Protocol: 30% Emissions from countries without reduction obligations: 70% Other developed countries SOURCE: METI, Japan, 2009
  • Climate Scorecard SOURCE: Allianz SE & WWF, 2009 Countries outside the Kyoto Protocol Emission trend 1990-2007 USA + 16% Mexico + 42% Brazil + 47% India + 78% China + 116% Countries within the Kyoto Protocol Kyoto target Emission trend 1990-2007 Russia 0% - 33% Germany - 15% - 21% UK - 15% - 17% France - 15% - 5% Italy - 15% + 7% Japan - 6% + 8% Canada - 6% + 26%
  • Long-term targets
    • G-8 l’Aquila 2009
    • Limit global warming to 2 ° C
    • -50% emission reductions globally by 2050 versus 1990
    • Developed countries should do more >-80%
    • Country targets 2050:
    • France: - 75% (1990 level)
    • Japan: - 60-80% (of current level)
    • USA: - 83% (2005 level)
    • UK: - 80%(1990 level)
    • Germany: no long term target
  • Mid-term targets (2020) in various countries and regions Target Base year Purchases of emissions credits from other countries Comparison with emissions from 1990 2005 Japan (old) (new) -15% -25% 2005 1990 No ? -4% -25% -15% -30% EU (27) -20% 1990 Yes -20% -13% USA -14% 2005 ? +2.5% -14%
  • COP 15, Copenhagen, December 2009
    • Copenhagen is a milestone, not the finishing post
    • Unlikely to deliver framework with details
    • Will be worked out over next 2 years, internationally & nationally
  • Stumbling blocks in the international climate negotiations
    • Climate change is not a short term priority for all countries
    • Who’s responsible?
      • Whose carbon is it?
    • What type of commitments are countries willing to accept?
    • Support to developing countries?
    • Competition concerns
      • level playing field
  • Technology in a future international climate agreement
    • Technology
      • Policies to facilitate the deployment of existing low carbon technologies
      • Mechanisms for technology transfer to developing countries
      • Funding for new low-carbon technology development and demonstration
  • Existing technologies
    • Technology deployment
      • Key for energy efficiency and short/medium term emission reductions
    • Technology transfer to developing countries
      • Lack of understanding of how technology diffusion happens
      • Lack of capacity/capability to absorb technology
      • Intellectual Property Rights (IPRs) – an issue?
  • New technologies
    • Technology development
      • Need for huge increase of R&D funding to achieve technical breakthroughs for key technologies
        • CCS
        • Next generation nuclear
        • Renewables
      • This will require new public-private partnerships
    • Technology acceptance?
      • Nuclear
      • Big hydro
      • Bio-fuels
    • REDD+: Reduced Emissions from Deforestation and Degradation in Developing Countries
    • Deforestation represents 20% of global CO2 emissions
    • Outcomes uncertain at this stage because of concerns about:
      • Additionality & permanence of forest carbon sinks/stores
      • Property and tenure right issues
      • Environment NGO’s want industrial countries to focus on making deep cuts…not leveraging forest carbon offsets
    Forests & Climate
  • UNFCCC process Yvo de Boer
        • "A new framework must make business sense if it is to succeed."
        • "What policies do you, as Business, want to see in a new global framework?”
  • What does business want from an international climate agreement?
    • Clarity
    • Predictability
    • Global deal
      • level playing field
      • no carbon leakage
    • Ambitious & in line with science
  • Climate Change – A transformational challenge for society
    • A society that emits 50% less GHG emissions by 2050 will look very different
    • Major impacts on lifestyles, consumption patterns and infrastructures are likely
    • The transformation will not be easy
    • There will be winners and losers
  • Work Program Focus Areas
    • - Water
    • - Energy
    • Efficiency in
    • Buildings
    • - Forest Products
    • - Cement
    • Electricity
    • Utilities
    • Tires
    • Maritime
    • Mobility
    • Mining
    • - Chemicals
    Initiatives Projects
    • - Eco Patent
    • Commons
    • Urban
    • Infrastructure
    • -Sustainable Value Chain
    • Ecosystem degradation is a risk to companies
      • Core operations
      • Value chain
    • Ecosystem Services Review (ESR)
      • Structured method to develop strategies to manage risks and opportunities arising from dependence and impact on ecosystems
      • WRI/ WBCSD/ Meridian Institute
    FA Ecosystems Co-Chair:
    • New publication: “Corporate Ecosystem Valuation”
      • Building the case for integrating corporate ecosystem valuation as a key component in business strategies
      • Road testing “Guide to Corporate Ecosystem Valuation” with around 20 WBCSD member companies
    Ecosystem Valuation Initiative (EVI)
    • “ Stern Report” on ecosystems
    • WBCSD providing business input to this G8 process
    • Analysis :
    • Phase 1 result:
      • 1.4 - 3.1 trillion EUR annual loss of natural capital just based on deforestation
    TEEB – The Economics of Ecosystems and Biodiversity global economic benefit of biological diversity and costs of conservation costs of the loss of biodiversity and the failure to take protective measures vs .
  • Work Program . Focus Areas
    • - Water
    • - Energy
    • Efficiency in
    • Buildings
    • - Forest Products
    • - Cement
    • Electricity
    • Utilities
    • Tires
    • Maritime
    • Mobility
    • Mining
    • - Chemicals
    Initiatives Projects
    • - Eco Patent
    • Commons
    • Urban
    • Infrastructure
    • -Sustainable Value Chain
  • Energy Efficiency in Buildings (EEB)
    • Buildings represent 50 % of world energy use
    • Report: “Transforming the Market” (April 2009)
    • Cutting building emissions by 50% globally by 2050 is possible at an average abatement cost of 25USD/tCO2 (PIIE, 2009)
    • Next Step
      • Proposal for member company manifesto to improve energy efficiency in their buildings
    • Trilogy of policy papers
    • “ Power to Change: A business contribution to a low-carbon electricity future”
    • Roadmap of sector specific recommendations and policy roundtable dialogues in South Africa, China and Japan and US
    • Scoping new phase
    Electric Utilities
    • Leading the way on industry sectoral approaches
    • Actions:
      • CO 2 measuring and reporting
      • CDM methodology
      • IEA/CSI Technology Roadmap
    Cement Sustainability Initiative
    • WBCSD Water Working Group since 1996
    • More than 60 companies representing a broad range of sectors
    • Co-Chairs: Borealis, ITT Corporation
    WBCSD water project
  • WBCSD water project – 10 years
    • Industry, Freshwater and Sustainable Development (March 1998)
    • Partnerships in Practice (April 2000)
    • Water for the Poor (July 2002)
      • Water Facts and Trends (Aug 2005)
      • Collaborative Actions for Sustainable Water Management (Aug 2005)
      • Water Scenarios to 2025
      • (Aug 2006)
      • Global Water Tool
      • (Aug 2007)
      • Sustain magazine (Jan 2008)
        • Water & Sanitation
        • (May 2008)
        • Water, energy and climate change
        • (March 2009)
  • Water & Business Linkages Business Needs Areas of Risk © CH2M HILL • Healthy and Strong Global Consumer Markets • Access to Clean Water for Product Use • Brand Image • Health and Growth of Consumer Markets B eyond the H orizon: B eyond the H orizon: Global Consumer Markets in Developed and Developing Countries B eyond the F enceline: B eyond the F enceline: Supply Chain Operations Local Communities • Healthy Communities and workforce • Strong Supply Chains • License to Operate • Community and Regulatory Pressure • Health of Employees • Competing Industries • Supply Chain Interruptions I nside the F enceline: I nside the F enceline: Operations and Product Design • Water for Operations • Ability to Discharge • Stranded Assets • Rising Costs
    • Report: “Water, Energy and Climate Change”
      • Water & Energy linked
      • Impacts from ecosystems and climate change
    • Measuring water use & assessing impacts:
      • WBCSD Global Water Tool
      • Founding partner of Water Footprint Network
      • Development of ISO standard on water footprint
    Water
    • 2020
      • Milestone on the pathway to a sustainable world in 2050
    • A lot of actions/changes must be initiated 2010-2020 for the world to be on a sustainable trajectory
    • Focus 2010-2020
      • Solutions
      • Policy frameworks that can support efficient implementation
      • Public-private partnerships/ coalitions
    Going Forward to 2020
    • Need for Systems Solutions
    2020: Key issue I
    • Water, Energy, Climate & Food
    • Urban Infrastructure
      • Buildings, transport, energy, water, waste
    • “ Smart Solutions” based on ICT
      • Electricity grids, mobility, logistics, appliances, buildings
    • Sustainable Value Chains
      • Shipping
    Systems Solutions
    • Sustainable consumption
      • Lifestyles/ demand-side management
      • Efficiency & technology alone will not be enough
    2020: Key Issue II .
  • 2020: Key Issue III
    • Talent – People Matter
    • The transition to sustainability requires more skilled human resources
    • Competitive advantage through knowledge and people
  • A World in Transition to Sustainability
    • The world cannot succeed without Business as a committed solution provider to sustainable societies and ecosystems
    • Business cannot succeed in a society that fails
    • Need to create better functioning cooperation between governments and business
  • www.wbcsd.org