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GLOBAL ENVIRONMENTAL TRENDSENVIRONMENTAL TRENDSIMPACTING BUSINESS
NAEM 2012 Samantha Putt del PinoCorporate Sustainability
Management ConferenceMarch 7-8 Atlanta, GA
Samantha Putt del PinoCo-director, Business Engagement
in Climate & Technology, WRI www.wri.org/nextpractice
World Resources Institute
Move human society to live in ways that protect Earth's y penvironment and its capacity to provide for the needs and aspirations of current and futureaspirations of current and future generations.
WRI’s approach to working with business
WRI’s engagement
with business
Private climate finance
Risk Innovation
Private climate finance
Projects shown are illustrative of WRI’s work with business
Environmental Trends Impacting Business
1. WRI overview
2. Global environmental trends
3. Capitalizing on trends
4 Making sense of trends4. Making sense of trends
5. Business response to trends p
Water scarcity: 1975
Extreme Scarcity<500
Scarcity500-1,000
Stress1,000-1,700
Adequate1,700-4,000
Abundant4,000-10,000
Surplus>10,000
Ocean/Inland Water
No Datam3/person/year
Data and maps by
Water scarcity: 2000
Extreme Scarcity<500
Scarcity500-1,000
Stress1,000-1,700
Adequate1,700-4,000
Abundant4,000-10,000
Surplus>10,000
Ocean/Inland Water
No Datam3/person/year
Data and maps by
Water scarcity: 2025
Extreme Scarcity<500
Scarcity500-1,000
Stress1,000-1,700
Adequate1,700-4,000
Abundant4,000-10,000
Surplus>10,000
Ocean/Inland Water
No Datam3/person/year
Data and maps by
Water scarcity at the river basin level, 2000
Extreme Scarcity<500
Scarcity500-1,000
Stress1,000-1,700
Adequate1,700-4,000
Abundant4,000-10,000
Surplus>10,000
Ocean/Inland Water
No Datam3/person/year
Data and maps by
Who will do what differently?
Companies Investors Governments
• StrategizeDistribution of plants,
• Differentiatebetween companies
• Planhydro-sensible land useDistribution of plants,
suppliers & product markets
• Target investments Efficiency efforts,
between companies based on potential exposure to water risk & opportunity
hydro-sensible land use policies
• Target infrastructure investment & water policies
engagement
A growing world population…
Source: Graph by WRI, data from United Nations, 2011 and McKinsey & Company, 2011
Environmental Trends Impacting Business
1. WRI overview
2. Global environmental trends
3. Capitalizing on trends
4 Making sense of trends4. Making sense of trends
5. Business response to trendsp
Scenario of confluence of trends
Water Scarcity Demography Crop Decline Hunger Coastal Risks Recent Conflicts
Many companies not acting on global trends
77
65
percent of executives who expect trend will impact profits
percent of executives who say they have taken steps to address trend
65 6357 56
53
4441
36
44
31 29
2121
Faster pace of technology innovation
Growth in emerging economies; changing
More tech to empower communities, consumers
Increasing natural resource constraints
Aging population in developed economies
More consumer demand for corporate contributions to
consumer tastes
public good
Source: McKinsey “How companies act on global trends” 2008
Many companies not acting on sustainability, climate change risk and opportunity
percent of executives who say they have taken action
climate change risk and opportunity
63
51
4338
31
22
Reducing energy use i
Managing corporate
t ti
Reducing emissions f
Managing portfolio to
t
Committing R&D
Mitigating operational i k l ti
Source: McKinsey “Business of Sustainability: Survey Results” 2011
in operations
reputation from operations
capture trends in sustainability
resources to sustainable products
risks relating to climate change
Are you positioned for the future?transformative transformative transformative Sustainable future
next practicesnext practicesnext practices
market leadershipmarket leadershipmarket leadership
next practicesnext practicesnext practices
business innovations
incremental product
improvements
long-term successshort-term planning
no action
existingbusiness models
business-as-usual
http://www.wri.org/publication/sharpening-the-cutting-edge
Environmental Trends Impacting Business
1. WRI overview
2. Global environmental trends
3. Capitalizing on trends
4 Making sense of trends4. Making sense of trends
5. Business response to trendsp
A toolkit for sustainability SWOT teamsUNMET NEEDS COLLABORATIVE EDGEUNMET NEEDS COLLABORATIVE EDGE
OPPORTUNITIESas big trends create new needs, possibilities
STRENGTHSto apply, build or find among partners
THREATS CONSEQUENCES WEAKNESSES RISKSTHREATS, CONSEQUENCESas big trends impact customers, communities
WEAKNESSES, RISKSto address together with partners
making a case to innovate beyond best practices
Environmental Trends Impacting Business
1. WRI overview
2. Global environmental trends
3. Capitalizing on trends
4 Making sense of trends4. Making sense of trends
5. Business response to trendsp
HBR shows sustainable companies have produced higher long term returnsproduced higher long-term returns
Source: Harvard Business Review, 2011
Sustainability driving growth
By the end of 2012, sustainable products will equal more than 10% of total sales,
i t l € 38 billiapproximately € 38 billion.
A hi d l f 30% f t t l fAchieved goal of 30% of total revenues from green products. By the end of 2015, R&D in green product innovation will reach €2 billion.
By the end of 2011, sales of independently verified green products increased to €1 1 billion 10 5% ofgreen products increased to €1.1 billion, 10.5% of total retail sales.
New partnerships
http://gigaom.com/cleantech/the-details-behind-ges-wattstation-electric-car-charger/http://www.autoblog.com/2011/12/01/bmw-and-toyota-agree-to-collaborate-on-future-green-technology/
The final word
How will the markets you serve be transformed?
Where are the opportunities to provide new products and services and adapt your business model?
How will you need to re-think your investments to align your company with a sustainable future?align your company with a sustainable future?
What kinds of collaboration are needed to reduce What kinds of collaboration are needed to reduce risks and pursue opportunities?
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