Bjorn Stigson's V100 Presentation

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
- Eco Patent
Commons
Urban
Infrastructure
- 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
- Eco Patent
Commons
Urban
Infrastructure

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
- Eco Patent
Commons
Urban
Infrastructure

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

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Bjorn Stigson's V100 Presentation

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