This document discusses sustainable consumption and the circular economy. It notes that while progress has been made, western societies still lead in consumption and developing countries seek to emulate unsustainable western growth models. Current economic growth is still linked to rising consumption, putting pressure on limited resources. A circular economy approach is needed to address these challenges and close the expected gap between global food availability and demand by 2050 through solutions like reducing food loss and waste, improving productivity, and shifting to more sustainable diets. Some signs of corporate leadership on sustainability issues are emerging but it remains a low priority for many boards. An approach beyond business as usual is required to manage risks to the environment and economy.

1. SUSTAINABLE CONSUMPTION
AND CIRCULAR ECONOMY
RISING TO THE CHALLENGE
Kitty van der Heijden,
Director Europe,
Director Africa
World Resources Institute
@KittyvdHeijden

2. 1992
We’ve come a long way…

3. 10YFP, 2012
But we did it …..

4. Source: EUObserver
Different vocabulary
for the same objective

5. CIRCULAR ?

6. Source: World Bank
WESTERN SOCIETIES STILL LEADING THE CONSUMPTION CHART

7. Source: World Commission on Environment and Development
GLOBAL ECOLOGICAL FOOTPRINT

8. THE ‘GLOBAL SOUTH’ IS FOLLOWING
DEVELOPING
COUNTRIES
Looking to emulate
unsustainable western
models of business growth

9. WHAT DO TOMORROW’S MARKETS LOOK LIKE?
Photo by Daniel Hoherd

10. ECONOMIC GROWTH
Still widely linked to
increasing consumption
CONSUMPTION DRIVEN ECONOMIES

11. TOMORROW’S MARKETS:
MANY MORE PEOPLE, LESS POVERTY
By 2030: Population +1.5 billion (8.5 total) / middle class +3 billion people,
predominantly from emerging markets

12. THE ‘MIDDLE CLASS EFFECT’

13. RESOURCE LIMITS WILL PUT THE BRAKES ON
BUSINESS GROWTH
IGNORE
resource limitations
IMPROVE
existing models
EMBRACE
new models
HIGH RISK

15. CIRCULAR
ECONOMY

16. RESOURCE PRODUCTIVITY
Food
production
will need to
rise by 70%
by 2050
Source: World Resources Report 2013-2015; Photo: GAC | AMC/Flickr

17. (Photo: Oxfam International /Flickr)
24% Greenhouse gas
emissions
37% of Earth’s
landmass
70%Water
withdrawals
REDUCING THE FOOTPRINT OF FOOD

18. STUDIES PROJECT NET ADVERSE IMPACT ON CROP YIELDS DUE TO CLIMATE
CHANGE (3° C warmer world)
Source: World Bank. 2010. World Development Report 2010: Development and Climate Change.
Washington, DC: World Bank.

19. HOW TO SUSTAINABLY CLOSE THE FOOD GAP
A Menu of Possible Solutions
Global annual crop production (kcal trillion)
Available
food
(2006)
Baseline
available food
needed (2050)
9,500
16,300
Reduce
food loss &
waste
Avoid biofuel
competition
for crops &
land
Achieve
replacement
level fertility
Increase
cropland
productivity
?
Increase
livestock &
aquaculture
productivity
Expand onto
low-
environmental-
opportunity-
cost lands
Reduce consumption
Increase production
Shift to more
sustainable
diets
Source: WRI analysis based on Bruinsma (2009) and Alexandratos and Bruinsma (2012).
Note: Includes all crops intended for direct human consumption, animal feed, industrial uses, seeds, and biofuels.

20. WHAT A WASTE…
32% of all
food is wasted
from farm to fork
Photo: Shutterstock

21. INCREASES PRESSURE ON RESOURCES
Food loss & waste
uses cropland
greater than the
size of China
Source: Kummu, M. et al, 2012; FAO, 2013; Photo: John Roberts/Flickr

22. Source: WRI analysis based on FAO. 2011. Global food losses and food waste—extent, causes and
prevention. Rome: FAO.
Note: Numbers may not sum to 100 due to rounding.
REDUCE FOOD LOSS AND WASTE FROM FARM TO FORK
(Percent of kcal lost or wasted)

23. FINANCIAL DRAIN
Loss of
$940 billion
per year
Source: FAO 2015; Photo: Alexander Edward/Flickr

24. MAJOR DRIVER OF EMISSIONS
Source: CAIT, 2015, FAO 2015 Food wastage footprint & climate change. Rome: FAO

25. < 5 YEARS TO LIMIT TEMPERATURE RISE TO 1.5°C
Intergovernmental Panel on Climate Change (2014), Carbon Brief (2016)

26. HOW TO SUSTAINABLY CLOSE THE FOOD GAP
A Menu of Possible Solutions
Global annual crop production (kcal trillion)
Available
food
(2006)
Baseline
available food
needed (2050)
9,500
16,300
Reduce
food loss &
waste
Avoid biofuel
competition
for crops &
land
Achieve
replacement
level fertility
Increase
cropland
productivity
?
Increase
livestock &
aquaculture
productivity
Expand onto
low-
environmental-
opportunity-
cost lands
Reduce consumption
Increase production
Shift to more
sustainable
diets
Source: WRI analysis based on Bruinsma (2009) and Alexandratos and Bruinsma (2012).
Note: Includes all crops intended for direct human consumption, animal feed, industrial uses, seeds, and biofuels.

27. IF COWS WERE A COUNTRY
Source: Council of Foreign Relations

28. SHIFTING DIETS
Source:GlobAgri model. Note: Data are for United States and Canada. Calculations assume global average efficiencies (calories produced per hectare or per
ton of CO2e emitted) for all food types.

29. IMPACT BY FOOD TYPE
Land use (ha)
Pasture
Cropland
Freshwater consumption
(1,000 m3)
Rainfall
Irrigation
GHG emissions (t CO2e)
Land-use change
Agricultural production
Per ton
protein consumed
Sources: GlobAgri model (land use and greenhouse gas emissions), authors’ calculations from Mekonnen and Hoekstra (2011, 2012) (freshwater consumption) and Waite
et al. (2014) (farmed fish freshwater consumption, which is shown as rainfall and irrigation combined). Notes: Data presented are global means. Protein amounts refer to
human consumption. Based on the approach taken by the European Union for estimating emissions from land use change for biofuels, land use change impacts are
distributed evenly over an amortization period of 20 years.

30. Baseline Water Stress in areas with Irrigated Agriculture
39% of irrigated cropland in this region is
located in areas of water stress concern

31. Change in Water Stress by 2025 in areas with Irrigated Agriculture
(IPCC Scenario A1B)
75% of current irrigated cropland in this region would
see water stress grow 2 to 8 times worse by 2025

32. Baseline Water Stress and Power Plants
19% of power plant design capacity in this region
is located in areas of water stress concern

33. Change in Water Stress by 2025 and Power Plants
(IPCC Scenario A1B)
55% of current power plant design capacity would
see water stress grow 2 to 8 times worse by 2025

34. In times of scarcity,
the poor get squeezed

35. WATER: GIFT OF NATURE OR PLANNING CHALLENGE?

36. WHAT WORRIES YOU?
Source: “ The Global Risks Report 2016.” Figure 1.2. World Economic Forum
http://www3.weforum.org/docs/Media/TheGlobalRisksReport2016.pdf
Global Risks of Highest Concern: For the Next 18 Months

37. WHAT WORRIES YOU?
Source: “ The Global Risks Report 2016.” Figure 1.2. World Economic Forum
http://www3.weforum.org/docs/Media/TheGlobalRisksReport2016.pdf
Note: Percent of participants mentioning the respective risk to be of high concern for the time frame of 18 months or 10 years, respectively. Participants could
name up to five risks in each time frame. In each category, the risks are sorted by the total sum of mentions.
Global Risks of Highest Concern: For the Next 10 Years

38. Water faucet photo by James Moran
170+ Companies Commit to
Science Based Targets
Consumer Goods Forum
Resolves to Halve Food Waste
by 2025 (400 Companies)
103+ Companies Joined the
UN Global Compact CEO
Water Mandate
50 Companies Commit to Zero
Deforestation in Supply Chain
SIGNS OF HOPE:
AMBITIOUS
CORPORATE
SUSTAINABILITY
ACTION

39. PRIVATE SECTOR LEADERSHIP ON FOOD WASTE
Images: Wikimedia Commons
Consumer Goods
Forum:
400 members
Goal to cut food
waste in half by 2025

40. SCIENCE BASED TARGETS
FROM
‘DOING BETTER’
TO
‘DOING ENOUGH’

41. SUSTAINABLE LIVING BRANDS
UNILEVER
18 SUSTAINABLE
LIVING BRANDS
IN TOP 40
UNILEVER BRANDS
DELIVERED
OVER 60% OF
THE GROWTH
IN 2016
GREW
50% FASTER
THAN THE
REST OF THE
BUSINESS

42. INVESTORS ARE ALREADY BEGINNING TO REWARD COMPANIES FOR
SUSTAINABLE GROWTH STRATEGIES
Source: Business and Sustainable Development Commission. Carbon Disclosure Project; Global Insights World
Industry Service (Capex data); McKinsey analysis
S&P 500 companies rated as climate change leadersperformed better
18%
50%
21%
Higher RoE than low scoring peers
Lower volatility of earnings over the past
decade than low-scoring peers
Stronger dividend growth than low scoring
peers

43. (MOST)
COUNTRIES
MAINTAIN
MOMENTUM
SINCE PARIS

44. IN
CONCLUSION

45. RISKS ARE BECOMING ‘GREENER’

46. BAU SIMPLY
ISN’T
A SMART
STRATEGY

47. SUSTAINABLE CONSUMPTION NOT A PRIORITY FOR BOARDS
55%
Say their boards meet only
once per year or never on
sustainability issues
Source: Results from a 2016 survey of members of The Conference Board Sustainability
Councils and Chief EH&S Officers Council
69%
Say their boards spend 4
hours or less per year on
sustainability issues
According to The Conference Board
council members:

48. THE ELEPHANT IN THE BOARD ROOM

49. LEAD
BY EXAMPLE