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The Power Of Working Together
 

The Power Of Working Together

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    The Power Of Working Together The Power Of Working Together Presentation Transcript

    • practices social issues trust impact grow performance environment change* WBCSD Sector projects stakeholders global innovation sustainable development perception accountability The power of working together
    • Tel: (41 22) 839 31 00 4, chemin de Conches E-mail: info@wbcsd.org Fax: (41 22) 839 31 31 CH-1231 Conches-Geneva Web: www.wbcsd.org Switzerland
    • Foreword 2 What are sector projects? 4 5 The process Contents 6 Forest Products 10 Mining and Minerals 14 Cement Sustainability Initiative 18 Sustainable Mobility 22 Electricity Utilities 26 Tires 27 The Future
    • Foreword Sector projects are a unique feature of the work of the industry measures, manages and reports on carbon WBCSD. They are voluntary initiatives demonstrating the dioxide and other emissions, fuels and raw materials use, power of partnership and the commitment of companies employee health and safety, and the local impacts of to work with others to manage some of the most difficult operations. The initiation of the cement project was driven dilemmas in their industries. They are practical initiatives, by the recognition that the cement industry did not have a rooted in independent research, to work out how critical defined position on sustainable development. This industry industries can meet sustainability challenges. had received little public attention; however, it would only be a matter of time before people started taking notice of its The aim of each of the projects is to confront the key activities. The project was an opportunity to preempt global sustainable development issues facing the industry, criticism, and has since focused on helping the cement adopting a participatory approach to developing solutions industry play a full role in a more sustainable future and broadly supported by stakeholders. Several of these projects providing the industry with tools to make this happen. have successfully tackled fundamental issues that have divided stakeholders for years. This is essential, because The Sustainable Forest Products Industry project was the stakeholder acceptance is fundamental to industry first sector project adopted by the WBCSD, in 1994. With maintaining its license to operate, innovate and grow and large-scale, global operations, and heavy reliance on achieving a stable environment for long-term investment. natural resources, the paper industry was heavily criticized prior to the establishment of the project. Many in the It is clear from the outset of each of the projects that the industry responded by defending standard practices. purpose is not merely to identify issues and challenges Organized by the then CEO of Aracruz, Erling Lorentzen, faced by a particular sector, but to change industry leading companies decided to distinguish themselves from practices and policies to make them more sustainable. the rest of the industry by identifying and implementing It is what business does in response to the independent best practices. The project has since moved on from its research and stakeholder consultations that has the original focus on paper to define how commercial forests biggest impact on trust and reputation. and forest products can continuously improve sustainability performance, and to build partnerships that For example, the Sustainable Cement Initiative has help protect the vast areas of forests not used for changed the ways in which a large segment of the commercial purposes. 2
    • The driving force behind the initiation of the mining see us as the right organization for such projects, project was the realization by a small group of CEOs from discounting sectoral organizations as being too narrow. the largest mining companies that there was a growing trust deficit between the companies and society. Despite The importance of openness and engagement is the main significant efforts by individual companies and parts of the lesson we have learned from these projects. We have also industry to cope with this, the gap was growing. They learned that business leaders are prepared to invest realized that a more organized, collective approach was substantial amounts of resources, both financial and needed to address perceptions, to create the right human, including their own time, when presented with a frameworks for further contribution, and in general to business case for addressing even the toughest issues in a strengthen the business license to operate. sector-wide approach. Each of the projects goes well beyond the normal confines While individual businesses can do much in pursuit of of industry initiatives in addressing the three pillars of sustainability, these groundbreaking projects demonstrate sustainable development in an integrated way. The the power of joint endeavors and the immense companies involved represent a broad spectrum of the commitment of businesses to work in partnership toward value chain rather than a particular interest group. And we sustainable development. They demonstrate that have deliberately sought external inputs to ensure that sustainable development is too big for individual proposals developed by these projects are not seen as companies to tackle on their own. “industry solutions” only. For each project, the industries face difficult challenges in meeting economic, social and environmental demands. Our members believe that the credible platform offered by the WBCSD can help to examine how these intractable issues can be dealt with while maintaining viable industries. We have a reputation for high-quality, Björn Stigson unimpeachable work and a broad membership base for President World Business Council for the projects to work with and communicate to. Members Sustainable Development 3
    • What are sector projects? Sector Projects cover specific industry sectors under the WBCSD brand. They are managed and funded by the participating members and other parties. The WBCSD supports them in various ways and connects the projects to other WBCSD activities. They are voluntary initiatives, but they can support governmental obligations in addressing sustainable development issues. All the projects are established with specific outcomes in a given timeframe, and with committed funds from industry and other sources. The sector projects harness independent research and stakeholder consultations to see how a particular industry can better align its practices and policies with the requirements of sustainability. The purpose is not merely to identify issues and challenges, but to change industry practices and policies to make them more sustainable. Stakeholder-related activities aim to enhance the legitimacy of the respective sector’s actions to promote sustainable development. The paper industry was the first sector to adopt this approach, in 1994. Mining and minerals, cement and mobility followed in 1999 and 2000. Electricity utilities launched a project in 2001 and tires followed in late 2005. In undertaking these projects, the sectors are trying to understand what sustainable development means for the industry all over the world and from many different viewpoints. The process therefore includes extensive stakeholder dialogue so that many different voices are heard. It relies on research from respected, independent organizations and involves a group of eminent authorities to validate the research process and conclusions. The WBCSD’s approach to sector projects is flexible enough to be adapted to the needs and circumstances of the members and the position of the industry concerned. Demonstrating the business case is central to the project’s work. It is the anchor that keeps the project focused on linking business and sustainable development. By demonstrating their case, companies active in a sector project can gain buy-in from the sector at large, increase public trust and enhance their license to operate, innovate and grow. Partnership is also essential to the process. The challenges posed by sustainable development are often too big for a single company to handle on its own. By bringing together competitors and other companies in an industry, as well as other stakeholders, such as government and other institutions, it is easier to identify ways to move toward sustainability. Accountability is also intrinsic to the approach, demonstrated by the presence of independent, expert assurance groups and public access to their work on project websites. All these projects operate on a global scale, developing targets and indicators that can be used to measure each sector’s progress toward sustainability. The working groups include companies from many continents and from both developed and developing economies. The findings are relevant to sustainable development in all regions and all stages of economic development. 4
    • The process The working group Assurance group The working group, consisting of Most projects have an assurance several WBCSD member companies, group to guarantee the neutrality and provides core finance for the validity of the findings. The members The WBCSD project, drives the process and of this group are eminent people ensures objectives are achieved. It is from around the world who have responsible for recruiting additional built a reputation in the field of The WBCSD provides the process, corporate support, if necessary, for sustainable development. They may quality control and outreach hiring a research organization to be academics, former politicians, or competency for these projects. It provide external input, and for heads of NGOs or other organizations. offers a credible, neutral platform appointing an independent for companies in an industry sector assurance group. There may be just half a dozen to jointly investigate sustainability members or as many as 25. The challenges. It coordinates the work group acts as a kind of referee and program, ensuring quality control meets often, including with the CEOs throughout. The WBCSD also of working group companies. It may markets and disseminates the brandish a “yellow card” if it feels the output of these projects, generating project is heading in the wrong momentum for change in policy Sponsor group direction or missing important issues and behavior across whole industry or angles. The assurance group can sectors. ask the working group to change any To widen the circle on which the aspect of the project, from the design project can draw, funding and other of the initial research to the framing resources may be brought in from of the conclusions. different sources. A sponsor group could include other companies from the sector and its suppliers or customers, who may or may not be WBCSD members. Organizations such as governments, the World WBCSD Bank, universities, and NGOs have also been involved. Stakeholder dialogues Sponsor Assurance Research group group Stakeholder dialogues Report Dialogues are common to all projects, but each project develops its own specific approach and Research program. The objective is to listen to and learn more about stakeholder views and to share The analytical work supporting the Industry members’ thinking in a forum project is contracted out to an action exploring complex issues and independent organization, assisted plan addressing conflicts and priorities. by substantial funds from participants in the working group Stakeholders include governments, and other sources. The research NGOs, business representatives, body has full responsibility for the local civil society organizations, analysis and for stakeholder academics and other researchers, consultation. The research as well as individuals who do not organization holds the right to belong to or represent any formal publish the results of its work in organization. Facilitated dialogues whatever form it wishes, although have been held on all continents, copyright is held jointly by the involving hundreds of people. WBCSD and the researchers. 5
    • Sustainable Forest Products Industry Forests cover 30% of the world’s total land area and are powerful symbols of sourcing, harvesting and trade of nature and biodiversity, providing a range of goods and services that meet forest products; everyday and essential needs. The annual global harvest stands at around 3.35 • Improve understanding between billion cubic meters, split evenly between fuel wood for cooking and heating industry and environment NGOs and industrial fiber for wood and paper production. Annual production is on key sustainable forest worth about US$ 750 billion. management issues and catalyze joint action when practical; A pulp and paper sector project began the tradition of sectoral initiatives in the WBCSD when, in 1994, a group of forest companies commissioned a study on • Provide guidance for major how to make the paper cycle more sustainable by assessing the role of the pulp business-to-business customers and paper industry worldwide. on tools to assist in the responsible procurement of forest In 1996 the group published Towards a Sustainable Paper Cycle. Following its products; release, an ongoing Sustainable Forest Products Industry (SFPI) working group • Enhance the industry’s role in was established to look at the forest industry in a more holistic way. reducing greenhouse gas emissions via carbon The main goal is to earn, retain and expand the forest industry’s license to sequestration, carbon storage in operate, innovate, develop and market forest products by addressing critical products and the supply of issues associated with sustainable forest management, wood sourcing, energy, renewable, carbon neutral carbon emissions and sequestration. biomass energy. Through participation in multi-stakeholder engagement processes, this project aims to: • Build stakeholder consensus on the application of intensely managed planted forests as a sustainability strategy, and on criteria and indicators of forests for conservation; • Encourage the credible use of multiple forest certification systems to verify sustainability and expand the market for third party certified forest products; • Work to improve forest law enforcement and governance to combat illegal 6
    • Vision: To lead business innovation in sustainable forest management and sustainable production, use and reuse of forest products to meet the needs of today’s world population for wood and paper products, renewable energy, ecosystem services and livelihoods, and those of an expected nine billon people in 2050. cycle Challenges • Reversing the substitution of forest Leading sustainable development challenges facing the sector and stakeholders products by non-renewable, include: energy-intensive, non-wood • Demand for its goods and services is expanding due to population growth, alternatives that erode the industrial development and rising living standards; achievement of sustainable development outcomes in the • Global forest processes and policies are fragmented, problematic and not forestry sector; focused on the primary causes of deforestation, which are poverty (i.e., wood fuel needs), agricultural development (food needs) and urbanization; • Enhancing company marketing and communications – as well as • Industry sources much of its wood fiber from small private landowners or industry positioning – based on state-owned forests, which means it has only indirect influence on forest third-party forest certification and management regimes; sustainability reporting against appropriate targets and standards • Stakeholder relations have historically been weak, and while there has been developed through a multi- improvement, relationships remain variable; stakeholder dialogue processes; • No fully functional markets exist for forest ecosystems – such as watershed • The wider adoption of sustainable and biodiversity – which influences forest management options; forest management approaches • The industry faces intense competition from non-wood substitute products, resulting in more productive which often exploit the industry’s perceived weak sustainability performance. forests, creating multiple opportunities for a wide variety of users and stakeholders; The business case • Enhancing product innovation The SFPI group believes that sustainable economic growth requires sustainable and market development, such as forest management and eco-efficient industrial performance based on the sector’s expanding role in the innovation and technological development. Further benefits of pursuing renewable energy sector. sustainability in the forest products sector include: • Giving business an opportunity to demonstrate the long-term sustainability of a sector based on renewable natural resources; 7
    • Outcomes • Encourage the use of credible Since its establishment in 2000, The Forests Dialogue (TFD) has provided a forest certification systems; robust platform for business and NGO stakeholders to build consensus on critical sustainability challenges. Dialogue processes have been launched on • Help develop appropriate illegal logging, forest certification, intensively managed planted forests, forests sustainability report parameters and biodiversity and commercial forestry and poverty alleviation. and investment guidelines for the industry; Over the past 10 years the forest industry has become an active participant in enhancing environmental performance. In addition companies have greatly • Proactively turn climate change improved stakeholder engagement, energy efficiency and the creation and and carbon challenges from a development of recycling programs. business constraint to an opportunity; Significant expansion in the independent certification of forests for sustainable • Enhance the development management is also evident with around 5% of the world’s forests (over 200 contribution of the industry’s million hectares) now certified, accounting for an estimated 18% of industrial future investments in developing production (nearly 600 million cubic meters p.a.) – with both trends increasing countries; rapidly, especially in developed countries with good forest management practices. • Develop and communicate a vision for the Sustainable Forest Products Industry. Moving forward The project continues to seek ways to sustainably manage forests to meet the needs of consumers and communities. As individual global companies, collectively and in partnership with other groups, we will: • Continue to support The Forests Dialogue multi-stakeholder process; Key publications Towards a Sustainable Paper The Sustainable Forest Following up on Towards a Products Industry, Carbon Cycle Sustainable Paper Cycle and Climate Change – Key 1996 2004 Messages for Policy-Makers 2005 1994 1996 1997 2000 2002 Forest companies led Publication of An on-going working The World Resources Sustainable Forest Towards a Sustainable by Aracruz Celulose group was Institute, the World Products Industry Paper Cycle and UPM-Kymmene established in the Wide Fund for Nature (SFPI) working group initiate a study WBCSD to deal with a and the SFPI group expanded to 14 examining the paper range of global convene The Forests members, up from 5 cycle, from felling forestry issues, Dialogue (TFD) original trees to final disposal including mutual recognition of certification systems and conservation of forest resources 8
    • More information Project members www.wbcsd.org/web/forestry Project co-chairs MeadWestvaco, Stora Enso Working group members Aracruz Celulose, Grupo Portucel Soporcel, International Paper, Metsäliitto, Mondi International, Nippon Paper, Norske Skog, Oji Paper, SAPPI, Siam Pulp, UPM, Weyerhaeuser (SFPI members account for about 40% of total global sales in the forest and paper industry.) Associate members Caterpillar, Global Forest Partners, Kimberly-Clark, Procter & Gamble, Time, Inc. Observers The Forests Dialogue (TFD) at Yale University, International Council of Forest & Paper Associations (ICFPA), National Council of Air and Stream Improvement (NCASI) 2003 2004 2005 2006 Towards a Sustainable Paper TFD fully operation with WBCSD signs MOU with the Joint publication with the Cycle progress report by dialogue priorities set for World Conservation Union World Resources Institute on IIED issued next 3 years and business & (IUCN) to enhance collaboration the responsible NGO funding mechanism in on sustainable forestry issues procurement of forest place.The WBCSD signs a products under Joint statement with WWF collaborative framework development (for December International on Forest Joint statement with WWF agreement with WWF release) Certification released International on combating International to undertake illegal logging & trade released joints efforts to improve SFPI Membership Principles sustainable forest & Responsibilities Key messages for Policy- management outcomes developed Makers and Negotiators publication with NCASI released at COP 11 of 9 UNFCCC
    • Mining Minerals and Sustainable Development The mining and minerals sector is global, but has intense local impacts. It is 8. Managing the relationship also diverse - ranging across 90 mined substances later transformed into between large companies and millions of products - and it is vital for many developing economies. Today, small-scale mining; over 30 million people are directly employed by the mining sector, and 34 9. Sector governance: clearly countries rely on minerals for at least one-quarter of all their exports. defining the roles, responsibilities, and instruments for change In recent years, the industry has faced a wide range of serious sustainability expected of all stakeholders. issues, from concerns over labor practices and human rights to the environmental impacts of extraction, processing and waste. Due to the intense The report recommends the creation local impacts of mines and related operations, nine leading mining companies of clear spheres of responsibility for created Mining, Minerals and Sustainable Development (MMSD) as a WBCSD companies, NGOs, indigenous project to better understand the sustainability challenges facing their sector. people, labor and commercial MMSD contracted the International Institute for Environment and Development players. It also advises firms to (IIED) to undertake a process of independent research and consultation. develop consistent reporting guidelines to ensure that key aspects of company practices and The final MMSD report, Breaking New Ground: Mining, Minerals, and Sustainable performance are publicly reported Development, includes an agenda for change and outlines nine key sustainable and verified. development opportunities for the sector: 1. Ensuring the long-term viability of the minerals industry; 2. Land control, use and management; 3. Using minerals to assist with economic development; 4. Making a positive impact on local communities; 5. Managing the environmental impact of mines; 6. Integrating the approach to using minerals so as to reduce waste and inefficiency; 7. Giving stakeholders access to information to build trust and cooperation; 10
    • Vision: To understand how the mining and minerals sector can contribute to the global transition to sustainable development. harmony Challenges • Reducing local poverty increases overall worker morale and The key sustainability challenge is to develop the sector in ways that help productivity; emerging economies without harming their people, and contribute to global development while minimizing environmental degradation. To address this • Cleaner production methods challenge, companies must consider: often lead to cost savings; • Embedding sustainable development in the thinking of the companies by linking best practice to financial success; • Lower operational risks improve access to lenders and insurers; • Avoiding conflict with other land uses by obtaining prior informed consent from local communities, particularly where there is conflict between the • Life-cycle planning means less by- state, indigenous groups and the company; product and therefore lower post- closure costs; • Facing the expensive legacy of abandoned mines and sites that have to be rehabilitated with no obvious way to pay the bill as prices are in continuous • A sustainable development decline; approach increases reputation and market advantage by giving a • Finding better ways to manage the wealth generated from mining company the legitimacy to operations, including the allocation of wealth between the investor, the operate in new and existing host government and the local community; markets. • Creating and enforcing the governmental frameworks needed to reduce the opportunities for free riders and stimulate a “race to the top”. The Business case Breaking New Ground, the report that culminated two years of extensive research, argues that one of the nine key challenges faced by the mining and minerals industry is to link sustainable development to financial success. Some of the advantages of the sustainable development approach in the mining sector include: • When companies demonstrate a commitment to sustainable development, their employees tend to have higher morale and be more productive and innovative; 11
    • Outcomes Because of its extremely diverse scope and enormous size, the mining sector has only recently begun concerted group efforts to deal with sustainability issues. The MMSD report Breaking New Ground was one of the first efforts by the mining industry to produce a unified view of these issues. The member companies created the International Council on Mining and Metals (ICMM) to implement the findings of this report. Moving forward The ICMM is following up on a number of recommendations and is leading efforts to improve the global sustainable development performance of the mining, minerals and metals industry. It now has the lead in implementing the project recommendations for the industry, and its work plan includes a partnership with the World Conservation Union on biodiversity issues, the World Bank on community concerns, and ongoing research support from IIED. In 2006 it looked at the effects of mining in four developing countries on economic growth and poverty rates. In 2007, the WBCSD and ICMM will assess the implementation of the project’s recommendations, five years after the launch. Key publications Breaking New Ground: MMSD Regional Reports Finding the Way Forward - Mining, Minerals & How Could Voluntary Action Australia Sustainable Development Move Mining Towards North America Sustainable Development? 2002 South America 2003 Southern Africa 2002 1999 2000 Mining companies approach the WBCSD to create Mining, The United Nations Environment Programme (UNEP) minerals & sustainable development (MMSD). The Council creates the Minerals Resources Forum, an online platform contracts the International Institute for Environment and for dialogue, research and news about sustainable mining Development (IIED) to undertake a process of independent efforts research and consultation 12
    • More information Project members www.iied.org/mmsd Anglo American, BHP Billiton, Codelco, Newmont Mining, Noranda, Phelps Dodge, Placer Dome, Rio Tinto, WMC 2001 2004 The International Council on Mining and Metals (ICMM) is Release of the MMSD final report Breaking New Ground: Mining, minerals & sustainable development formed to provide leadership for improving the global sustainable development performance of the industry 13
    • Cement Sustainability Initiative Cement is the glue that literally holds society’s infrastructure together, whether The Cement Sustainability Initiative it is an individual home in Mexico, or a 5th runway at Heathrow. Concrete is (CSI) was formed to help the cement the most widely used material on earth apart from water, with nearly three industry to address the challenges of metric tons used annually for each man, woman and child on the planet. The sustainable development. The most rapid market growth for cement today is in developing markets. business leaders of a group of major cement companies lead the initiative. Its purpose is to: Making cement creates a range of sustainability issues. Dust and noise from • Explore what sustainable cement plants and quarries are specific local issues. More broadly, the fuels and development means for the raw materials used in the manufacturing process generate greenhouse gases cement industry; and sometimes controversy. Land used for quarries must be restored to help retain landscape and local biodiversity. However, cement manufacturing can • Identify and facilitate actions that also help recover by-products from other industries; some by-products and companies can take as a group renewable fuels may be used to fuel kilns, thus helping to improve the and individually to accelerate the environment and making the industry more eco-efficient. Finally, in well- move towards sustainable controlled circumstances, cement kilns provide an environmentally sound development; option for co-processing some waste materials. • Provide a framework through The industry employs about 850,000 workers in facilities in 150 countries, which other cement companies producing about 1.5 billion metric tons of cement a year. It has an estimated can participate; annual turnover of US$ 87 billion and has grown by nearly 4% a year over the • Provide a framework for working past decade. with external stakeholders. Cement production is energy-intensive, accounting for 5% of global carbon dioxide emissions, and it touches on a wide range of sustainability issues including: • Climate change • Pollution • Resource depletion • Worker health and safety. 14
    • vision: To help the cement industry to play a full role in a more sustainable future and to provide the industry with tools to make this happen. value Challenges • Reduction in risk weighting due to improved management 1. Resource productivity - Improving eco-efficiency through improved practices and reduced liability; practices in quarrying, energy use and waste recovery; • Faster time to market, from 2. Climate protection - Understanding and managing CO2 emissions; improved stakeholder 3. Emissions reduction - Reducing dust from quarrying, NOx, SOx, and other communications and trust. airborne pollutants from cement manufacture; In short, sustainable cement 4. Ecological stewardship - Improving land use and landscape management companies can compete effectively practices; by raising profits while reducing the cost of capital – doing more with less. 5. Employee well-being - Managing and improving employee health and safety; 6. Community well-being - Working more effectively with local communities; By addressing these key sustainability issues cement companies can: 7. Regional development; • Manage their CO2 emissions (and their corresponding climate 8. Delivering shareholder value. impacts), which can have significant financial impacts in a The business case carbon-limited world; The business case for sustainable development in the cement industry revolves • Improve employee health & safety; around shifting its traditional business approach from a resource-intensive and • Understand and manage the profit-maximizing business model to a more eco-efficient, socially responsible, impacts of quarry projects and value-maximizing model. throughout the life-cycle, from a greenfield site through startup, There are several business advantages to a sustainable approach in the cement operation and eventual closure; industry: • Cost reductions due to increased operational efficiency and effectiveness; • Help society better manage waste materials by cooperation with • Revenue increases due to product differentiation and enhanced market other industries on novel uses of acceptance; by-product and waste materials in • Reduction in capital employed due to process simplification and improved use; cement production. 15
    • Moving forward Outcomes The initiative has raised interest Under the auspices of the WBCSD, the working group commissioned the among different bodies, such as Battelle Memorial Institute, a US-based not-for-profit consulting firm, to CEMBUREAU (the European Cement conduct independent research into how the cement industry can meet these Association) and the Australian sustainability challenges. Battelle’s report, Toward a Sustainable Cement Cement Industry Federation. Talks are Industry, was released in April 2002. also underway with several other cement companies, associations and An industry Agenda for Action containing measurable targets and setting out non-governmental organizations on joint and individual company commitments was released in July 2002. A Task how they could play an effective role Force was established for each of the six issues to complete joint activities. Task in the implementation phase. Force members include cement company participants in the Initiative as well as other organizations that can contribute substantively to the work program. An interim public progress report was Individual companies are committed to the individual activities laid out in the released in June 2005 and will be Agenda: followed by a full update and 1. Climate protection and CO2 management assessment of future actions in 2007. 2. Responsible use of fuels and raw materials An external advisory group has been established for this phase to help the 3. Employee health and safety companies make further progress. 4. Emissions monitoring and reporting Members have also agreed to pursue 5. Local impacts on land and communities external assurance of reported values, beginning with CO2 emissions. A 6. Reporting and communications. new task force was created to look at issues around sustainability of The project produced two other important results during the research stage: concrete construction. 1. A guide for cement plant managers on managing and improving local stakeholder communications; The program is part of a long-term 2. A standard protocol for measuring and reporting CO2 emissions, which is change management effort, moving now endorsed by the United Nations Framework Convention on Climate from research to understanding, to Change and the World Resources Institute, among others. commitments for action to implementation at individual Individually, each member company is now implementing the guidelines in companies and facilities. Materials their operating facilities and reports publicly on progress. developed are being widely distributed via the Web and communication partners to allow other cement companies to learn from this experience. Key publications The Cement Sustainability The Cement Sustainability Environmental and social Guidelines for Emissions Initiative: Our Agenda for Initiative: Progress Report impact assessment (ESIA) Monitoring and Reporting in Action guidelines the Cement Industry 2005 2002 2005 2005 1999 2002 Publication of the Battelle report, Toward a Sustainable Project starts research by identifying and examining all the Cement Industry, along with the sub-studies sustainability issues facing the industry over the next 20 years. In parallel, 13 sub-studies, ranging from carbon dioxide emissions to socio-economic development, are organized 16
    • More information Project members www.wbcsdcement.org Co-chairs 2006 CEMEX, Uniland Core Members Cimpor, CRH, HeidelbergCement, Holcim, Italcementi, Lafarge, Taiheiyo, Titan Participating Members Ash Grove, Cementos Molins, Cementos Portland Valderrivas, Gujarat Ambuja, SECIL, Shree Cement, Siam Cement, Votorantim Partners Project Partners include other organizations (not cement producers) that wish to participate in the CSI Task Forces and bring special knowledge to the work program. Project Partners are by invitation of the CSI Core Members. Past Partners include CEMBUREAU (Belgium), Japan Cement Association (Japan), Verein Deutscher Zementwerke E.V. (Germany), British Cement Association (United Kingdom), Cement Industry Federation (Australia), WWF International (Switzerland) and the Natural Step International (Sweden). Communication Partners include many cement federations (associations) who work with the CSI to help communicate about the Initiative with their membership. The Cement CO2 Protocol: Safety in the cement sector: Strengthening the CDM: A Guidelines for the Selection Formation and Release of CO2 Accounting and Guidelines for measuring and Cement Industry Perspective and Use of Fuels and Raw POPs in the Cement Industry Reporting Standard for the reporting Materials in the Cement (Second Edition) 2005 Cement Industry Manufacturing Process 2006 2005 2005 2006 2002 2005 Publication of the Agenda for Action, with its five-year Release of the CSI Progress Report timeframe Completion of Task Force reports and guidelines 17
    • Sustainable Mobility Mobility is an essential part of modern society, and is almost universally The SMP, limited to road acknowledged to be one of the most important prerequisites to achieving transportation, defined “sustainable mobility” as the ability to meet the improved standards of living. However, modern mobility has come at a price. needs of society to move freely, gain The way we are carrying out transportation is not sustainable if the present access, communicate, trade and trend continues. Transportation is creating economic growth, and economic establish relationships without growth is creating transportation, but it is crucial that transport activities sacrificing other essential human or become more efficient, more equitable and less disruptive – both socially and ecological values today or in the environmentally. Given the amount of greenhouse gasses released by future. transport, it is one of the main concerns of the work of our Energy and Climate Focus Area. Transport activities are predicted to grow rapidly, driven by many factors: • Economic Growth and a higher standard of living • Globalization – opening up of markets • Population growth and increasing urbanization. There are about 800 million vehicles on the roads today, a number that is expected to grow to 2 billion by 2050. The transport sector accounts for a quarter of the CO2 emissions in the world today and is growing fast. It is anticipated that oil demand will increase by 60% over the next 25 years, and that three-quarters of this growth will come from the transport sector. Mobility footprints are considerable as to land use, stress on ecosystems, deaths and injuries, air quality and noise. Against this backdrop, a dozen of the world’s largest energy and automotive enterprises joined with the WBCSD in 2000 to develop a vision of more sustainable mobility in the future, and established the Sustainable Mobility Project (SMP). 18
    • vision: To meet the needs of society to move freely, gain access, communicate, trade and establish relationships without sacrificing other essential human or ecological values today or in the future. movement The business case efforts lends insight into the business environment of the The Project provided indicators that are central to any vision of sustainable future and so offers companies a mobility and the route to get there. These indicators also constitute a yardstick way to plan their business against which the effectiveness of various approaches can be measured. However, strategy. different stakeholders have different approaches to the challenge of mobility. The indicators reflect balance and harmony between the perspectives of the mobility users, of society at large and of the mobility providers: • Mobility users are concerned about how mobility meets their needs, access and costs, as well as comfort and safety; • Society focuses on the social costs, government revenues and fair distribution of access to mobility; • Mobility providers, mainly private businesses, depend on enough profit to stay in business and the ability to provide solutions required by society. The companies participating in the SMP believe that sustainability and their own success will increasingly become synonymous. • The mobility sector relies heavily on a limited source of non-renewable energy. Newer forms of more sustainable sources will maintain the mobility industry and ensure its long-term future. • Innovation in sustainable technologies can help provide solutions to several problems and reduce overall costs for the production and maintenance of vehicles. • Mobility is a high-profile topic that directly impacts many people. Companies that take the lead in sustainability will significantly improve their reputations. • Improvements in design and safety can mean fewer accidents and thus less liability for manufacturers and producers. • Measuring the progress and status of the industry’s current sustainability 19
    • Outcomes with a wide range of stakeholders and have been participating in a Research and stakeholder dialogues were carried out throughout 2001, great number of events throughout culminating in Mobility 2001, a holistic study that deals with the the world. interdependencies among transport modes, technologies, systems and institutions crucial to sustainable mobility. Moving forward The project launched two reports at the World Summit on Sustainable Even though the Sustainable Mobility Development in Johannesburg in 2002: Move. Sustain, which concisely depicts Project has been completed, the the background and evolution of the program, and Sustainable Mobility Project: WBCSD will continue to address Progress Report, which recapped the work done from 2001-04 and the path the issues related to mobility. Transport project took. of people and goods is crucial to all businesses regardless of sector. If the In July 2004, the project released a comprehensive report on the topic, Mobility current transportation trends are 2030, which proposes seven goals that, if achieved, would improve the unsustainable, as the Mobility 2030 prospects for sustainable mobility: report suggests, then business must 1. Reduce conventional emissions from transport so that they do not consider the strategic consequences. constitute a significant public health concern anywhere in the world; Some of the topics discussed in the report will be pursued through other 2. Limit greenhouse gas emissions from transport to sustainable levels; WBCSD work programs, such as the transport sector’s impact on climate 3. Reduce significantly the number of transport-related deaths and injuries change, or access to mobility in the worldwide; developing world. 4. Reduce transport-related noise; 5. Mitigate traffic congestion; 6. Narrow “mobility divides” that exist within all countries and between the richest and poorest countries; 7. Improve mobility opportunities for the general population in developed and developing societies. Launch events for media and stakeholders for Mobility 2030 were arranged in Brussels, Detroit and Tokyo in July and August 2004. The participating companies and the WBCSD considered these meetings as the start of a dialogue Key publications Mobility 2001 Move.Sustain. Mobility 2001 Overview 2001 2002 2001 2001 2002 Launch of Mobility 2001 10 workstreams set up to address sustainability issues created by the dominant role of road vehicles and to develop visions of future global systems of mobility 20
    • More information Project members www.wbcsd.org/web/mobility BP, DaimlerChrysler, Ford, General Motors, Honda, Michelin, Nissan, Norsk Hydro, Renault, Shell. Toyota, Volkswagen Mobility 2030 Mobility 2030 Overview Mobility 2030 Executive Summary 2004 2004 2004 2002 2004 Launch of two reports at the World Summit in Release of Mobility 2030 Johannesburg: Move. Sustain and Sustainable Mobility Project: Progress Report 21
    • Electricity Utilities Electricity is more than energy. It is a vital component of infrastructure and an • Building and maintaining security essential part of modern day life. It plays a critical role in the economies of most of supply – deliver the huge countries and in the development of all. amounts of electricity required for development and growth, while making adequate returns to As a vital component of infrastructure, its use is growing more quickly than that attract the necessary investment of any other energy carrier, and it will play an even greater transformational and keeping prices affordable for role in the future. Electricity-based innovation is supporting increasingly customers; sophisticated global, real-time networks for communication, finance, trade and technology development. It is driving new technologies, ranging from lasers to • Managing and reducing microprocessors, which will make continuous improvements in industrial environmental impacts – curb the productivity and efficiency possible in the century ahead. expected growth in the power sector’s global carbon emissions Electricity will act as a catalyst for business development in several sectors, and (representing almost 40% of the is critical for social development. Yet moving forward holds significant world’s total, and projected by challenges for the electricity utility sector as it is confronted by a number of some to double by 2030), while uncertainties associated with evolving government regulations, market keeping other impacts and costs restructuring, customer preferences and technological innovation. at acceptable levels; • Providing access to electricity for The WBCSD’s Electricity Utilities project brings together leading utilities from those that do not have it – increase around the world to develop a deeper and more concrete understanding of the access to electricity that far too fundamental sustainability challenges faced by the sector and to explore the many people in developing business contribution to solutions. countries lack and thereby remove one of the most significant stumbling stones on Challenges the way to making poverty Significant challenges for the sector in implementing sustainable development history. practices come at a time when the business environment is undergoing unprecedented change because of government deregulation, market restructuring, customer preferences and technological innovation. The challenges include: 22
    • vision: A power sector that makes wise use of technology, operational excellence and governance structures to meet the multiple challenges inherent in providing secure and affordable electricity supplies to all, while managing environmental impacts, including climate change. power of nature Gaining support from stakeholders on future generation and transmission The electrification targets that can be options will be another challenge for the sector. While each country will have derived from the UN Millennium its own priorities for future energy options, some of the challenges ahead are: Development Goals represent a huge challenge. The political will of • Balancing the economies of scale of large, centralized plants against the governments will be crucial, but inherent flexibility of smaller, decentralized investments; business can also make its • Resolving with government and other stakeholders the issues related to contribution. Not only can investment in renewable energy and new technologies with lower electrification projects in developing environmental impacts than existing generation methods; regions be an effective way of demonstrating corporate • Continuing to invest in research into new technologies that will help to commitment to sustainable move the sector significantly further down the sustainable development development, they might also yield path; new business opportunities. • Finding ways to make economic demand-side management investments more attractive. The business case Increased competition in electricity markets inevitably makes companies focus on short-term results. But communicating with policy-makers to make sure that investment conditions are right to attract the required capital has never been more important. Investment barriers have been causes of brownouts and blackouts not only in developing countries. Contributing to more than a third of the world’s CO2 emissions, the electricity sector will undoubtedly be confronted with future carbon constraints. Pressure from shareholders and stakeholders to manage carbon exposure is on the rise, as climate policies are taking hold, even in non-Kyoto countries such as the US. Consequently, it pays to be able to evaluate stakeholder expectations and to be involved in the early stages of policy development, including the international framework post-2012. 23
    • Outcomes Moving forward The first phase of the project yielded an assessment of sector-specific principles Based on a clear common view of the and objectives. It provided concrete examples of industry practices through challenges at hand, the power case studies and established clear strategies for the industry to meet future companies in the project are now challenges and progress on its path to sustainability. It stressed that: engaging their stakeholders worldwide to help define an agenda • Electricity companies are leveraging investment in research, development for concerted action. This is focused and marketing of new sustainable energy technologies and consumer around six key objectives: offerings; 1. Continuously improving energy • Many companies are conducting long-term strategic planning initiatives efficiency (including end-use); and ensuring that sustainable development issues are integrated into their future investment decisions; 2. Investing adequately in infrastructure and securing a • Many electric utilities are taking early action by implementing greenhouse reliable grid; gas emission strategies, in the absence of any legislative requirements. 3. Diversifying and decarbonizing the fuel mix; The 2002 report, Sustainability in the Electricity Utility Sector, examines major foreseeable challenges, including the liberalization of electricity markets, future 4. Bringing to market promising generation requirements, and next-generation options. breakthrough technologies over the longer term; The second phase of the project was launched at the beginning of 2005 and takes a closer look at the challenges identified in the first phase. Project 5. Providing wider access to members have set up a plan through 2006 in order to: electricity; • Improve the understanding of the fundamental trade-offs that decision- 6. Developing partnerships and a makers and society at large will have to face; systematic dialogue with decision- makers and civil society. • Develop common communication tools for dialogue with stakeholders and policy-makers, defining the role of utilities and that of other players; • Identify approaches to integrating sustainable development into long-term decision-making. Key publications Sustainability in the Electricity Sustainability in the Electricity Utilities Sector – Executive Utilities Sector Summary 2002 2002 2000 2002 Project begins with companies taking a critical look at their Publication of Sustainability in the Electricity Utility Sector, operations detailing sustainability principles and strategies and a collection of best practices 24
    • More information This agenda is underpinned by www.wbcsd.org/web/electricity factual issue briefs on the sustainability performance of all different resource options for electricity generation such as coal, gas, nuclear and renewables, helping to define a common and holistic view on facts, key technology developments and policy needs. Additional themes include transmission and distribution systems, the role of utilities in promoting energy efficiency, and the access challenge. The project’s stakeholder engagement phase includes a global online consultation and events in India, China, and at major international conferences such as the UN climate negotiations or the UN Commission on Sustainable Development. The final report from the second phase is to be published towards the end of 2006. In addition, the working group will contribute to developing sustainability indicators for a pilot version of a Global Reporting Initiative supplement for the energy utilities sector. Project members Co-chairs ABB, EDF, Eskom Working group CLP, Entergy, Kansai, Suez, Tepco Associate members Caterpillar, Global Forest Partners, Kimberly-Clark, Procter & Gamble, Time, Inc. 2005 2006 Project moves into its second phase, exploring key Launch of the stakeholder engagement phase challenges and looking at technology options in more detail 25
    • technology Tires Tires are essential to road and surface mobility, providing the moving surface of By taking an early look at these our many transport vehicles and the only contact point with the ground. issues, these industry leaders want to understand more about the sustainability challenges they face in Simple in appearance, tires are quite sophisticated products. Tire making a constantly evolving regulatory involves a complex blend of materials and assembly processes to produce the environment and formulate an thousands of different products used on equipment ranging from bicycles to approach to making the industry huge earthmovers. A typical tire includes dozens of different components, more sustainable by better assessing using more than 100 primary raw materials, which must be precisely and managing impacts from its assembled and processed to achieve the right balance between many products and processes. competing factors: grip, energy efficiency, handling, comfort, noise and cost, to name a few. Tire industry leaders have begun to examine several sustainability issues facing this sector, gather data and identify potential concerns and address them. Following a global CEO meeting in March 2005, 11 companies have organized a series of initial studies. Project members Initially this project will address two issues: 1. Evaluation of materials commonly used in tire making for any potential Co-chairs health and/or environmental impacts; Bridgestone, Goodyear and Michelin 2. The fate and impacts of particulate matter generated during normal tire use Working group and wear. Continental, Cooper Tire & Rubber Company, Hankook Tire Co., Kumho Over the next year, the group will examine the availability and quality of Tire Co., Pirelli, Sumitomo Rubber existing data dealing with these two issues, identify knowledge gaps, and Industries, The Yokohama Rubber develop a comprehensive plan to fill those gaps in succeeding years. ChemRisk, Co., Toyo Tire & Rubber Co. a US-based consultancy specializing in risk analysis, has been retained for these initial studies. They will work with DIK, the German Institute of Rubber Technology. The company CEOs will review the scoping work in early 2007 More information and consider further studies at that time. www.wbcsd.org/web/tires 26
    • The Future The WBCSD is in the scoping phase of other Sector Projects, including one involving the chemicals sector. The Council and our members have found that such projects are excellent ways for entire sectors to manage the challenge and opportunities inherent in sustainability issues. Our first Sector Project, on how to make the production of paper more sustainable, began when a leader in the Latin American pulp and paper industry asked the basic question of whether he should be replanting trees, given society’s demands for recycled fibers. The resulting study, Towards a Sustainable Paper Cycle (1996) found that sustainably managed plantations would be the basis of meeting the world’s supply of paper into the future. WBCSD Sector Projects allow business sectors to present a united front, not against the rest of society, but with society, in that all of them work towards their conclusions in partnership with stakeholders from civil society and governments. We look forward to helping other sectors organize their approaches to tomorrow’s business and to sustaining human progress. 27
    • About the WBCSD The World Business Council for Sustainable Development (WBCSD) brings together some 180 international companies in a shared commitment to sustainable development through economic growth, ecological balance and social progress. Our members are drawn from more than 30 countries and 20 major industrial sectors. We also benefit from a global network of 50+ national and regional business councils and partner organizations. Our mission is to provide business leadership as a catalyst for change toward sustainable development, and to support the business license to operate, innovate and grow in a world increasingly shaped by sustainable development issues. Our objectives include: • Business Leadership – to be a leading business advocate on sustainable development; • Policy Development - to help develop policies that create framework conditions for the business contribution to sustainable development; • The Business Case - to develop and promote the business case for sustainable development; • Best Practice - to demonstrate the business contribution to sustainable development and share best practices among members; • Global Outreach – to contribute to a sustainable future for developing nations and nations in transition. Copyright © WBCSD, August 2006 ISBN 2-940240-94-9 Printer Atar Roto Presse SA, Switzerland Paper Containing 50% recycled content and 50% from mainly certified forests (FSC and PEFC). 100% chlorine-free. ISO 14001 certified mill. 28