Bjorn Stigson's V100 Presentation

Edmonton, Canada, 19 October 2009

World Business Council for

Sustainable Development

Business and the Sustainable Development Landscape

Edmonton, CanadaBjörn Stigson, WBCSD President

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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

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Representing 36 countries – based on corporate headquarters

Where are our members?

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Canadian Members

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Which sectors do they represent?

212015141413121111101010774442211

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The World in Transition to Sustainability

66.

Society

Economy Environment


The Future Society: A Growth Story

0

1

2

3

4

5

6

7

8

9

10

1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050

Sou

rce: U

nite

d Na

tions P

opu

lation

Divisio

n, W

orld

P

opu

latio

n Pro

spe

cts: Th

e 20

06

Re

vision.

World population (in Billions): 1950-2050

85%

15%

Population in less developed countries

Population in more developed countries


Development: The Poverty Challenge

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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

9

99

9

1900

2020

Billions of inhabitants

47% urban

60% urban

1970 2000 2030

36% urban

urbanrural

70% urban

3.2 3.32.9

5.0

1.32.4 2.8

6.4

2050

Source: United Nations, World Urbanization Prospects: The 2007 Revision

Source: Citymayors statistics, 2008

Growth of mega-cities

70% urban in 2050


The Future Society: Shifting Fortunes

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Emerging economies > 50% of global GDP and trend will continue

Sou

rce: A

ng

us M

add

ison

, OE

CD

; IMF

From

Th

e E

cono

mist p

rint ed

ition.

“Wre

stling

for in

flue

nce

.” July 3rd

20

08.

% Share of GDP

0

20

40

60

80

1913 1950 2005 2025

Emerging economies Developed economies

* At purchasing-power parity


The World in Transition to Sustainability

Implementation

Local Regional

Nat

iona

l

Global

Solutions

Markets

Regulations

Infrastructure

Tec

hnol

ogy

Institutions

Financing

Mindsets

Prioriti

esEquity

Shared visio

nValues

Society

Economy Environment

Efficiency

Busin

ess

Governments


Work Program

12.

Focus Areas

- Water - Energy Efficiency in Buildings

- Forest Products

- Cement

- Electricity Utilities

- Tires- Maritime

- Mobility

- Mining

- Chemicals

InitiativesProjects - Eco Patent

Commons

-Urban

Infrastructure

-Sustainable Value Chain


Vision 2050

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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

14WBCSD 2009 Council & Liaison Delegate Meeting - Washington D.C.

Human Development Index (HDI)

Eco

log

ica

l Foo

tprin

t (G

lob

al H

ecta

res

per

Per

son)

Source: WWF / GFN / UNDP

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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

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Sustainable Consumption

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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

Edmonton, Canada, 19 October 2009 1717. 17

Focus Areas


- Forest Products

- Cement


- Tires

- Mobility

- Mining

- Chemicals


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.

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Global emissions scenarios

19Source: IEA. ETP 2008


Reductions in energy-related CO2 emissions in the climate policy scenarios

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Source: IEA. WEO 2008. Presentation by Dr. Fatih Birol


Climate Landscape

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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

Countries outside the Kyoto Protocol

Emission trend 1990-2007

USA + 16%

Mexico + 42%

Brazil + 47%

India + 78%

China + 116%

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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%

SOURCE: Allianz SE & WWF, 2009


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

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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

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Stumbling blocks in the international climate negotiations

1. Climate change is not a short term priority for all countries

2. Who’s responsible? – Whose carbon is it?

3. What type of commitments are countries willing to accept?

4. Support to developing countries?

5. Competition concerns – level playing field

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Technology in a future international climate agreement

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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?

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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

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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

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UNFCCC process

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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

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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 easyThere will be winners and losers

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Work Program

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Focus Areas


- Forest Products

- Cement


- Tires- Maritime

- Mobility

- Mining

- Chemicals


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

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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)

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“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

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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

38. 38

Focus Areas


- Forest Products

- Cement


- Tires- Maritime

- Mobility

- Mining

- Chemicals


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

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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

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Leading the way on industry sectoral approaches

Actions: – CO2 measuring and reporting

– CDM methodology– IEA/CSI Technology Roadmap

Cement Sustainability Initiative

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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)

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Water & Business Linkages

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Business Needs Areas of Risk

• Healthy and Strong Global Consumer Markets

• Access to Clean Water for Product Use

• Brand Image

• Health and Growth of Consumer Markets

Beyond the Horizon:

Beyond the Horizon: Global Consumer Markets

in Developed and Developing Countries

Beyond the Fenceline: Beyond the Fenceline:

Supply Chain Operations

Local Communities

• Healthy Communities and workforce

• Strong Supply Chains

• License to Operate

• Community andRegulatory Pressure

• Health of Employees

• Competing Industries

• Supply Chain Interruptions

Inside the Fenceline: Inside the Fenceline:

Operations and Product Design

• Water for Operations

• Ability to Discharge

• Stranded Assets

• Rising Costs

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© CH2M HILL


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

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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

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Need for Systems Solutions

2020: Key issue I

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Land Use Schedule

Social

Water

Waste water Passenger Transport

Agricultural production (External

Area)

Biomass / Biofuel production

(External Area)

Consumption (Food,

goods, etc)

Freight movement(Logistics)

Waste management

Energy

Tonnes of goods moved

Tonnes of waste moved

Energy recovery from tonnes /composition

waste incineration(?)

Employment: Recycling(??)

Employment generated (external): Agricultural

production

Employment generated (external): Biomass

production

(a) Supply of housing

Passenger Transport distance

(based on density)

Freight transport

distance (based on density)

Additional Land Area for

Food production

(a) Employment demand

(b) Social infrastructure demandReduction in

potable demand through rainwater

harvest

POPULATION

Per capita energy

demand excl. transport / logistics

Potable water demand

Non-potable water demand

(treated wastewater)

Reduction in potable

water demand through

recycling

Production of sewage effluent

Energy demand by type

Travel demand

Demand for consumables (food, etc)

Additional Land Area for

Biomass production

Energy for freight movement

Fuel source – energy supply

Fuel source – energy supply (rice husk)

Reduction in energy demand

through embedded renewables

Generation of biogas

Waste output

Wind Turbines

Energy from Wind

Land area required for

turbines


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

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Sustainable consumption – Lifestyles/ demand-side management– Efficiency & technology alone will not be

enough

2020: Key Issue II

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2020: Key Issue III

Talent – People Matter The transition to sustainability requires

more skilled human resources Competitive advantage through

knowledge and people

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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

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www.wbcsd.org

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