24
Industry Agenda Consumer Community Governors Meeting 2016 February 2016 Davos-Klosters, Switzerland 20–23 January

Industry Agenda Consumer Community Governors Meeting 2016 - … · 2016-03-01 · Consumer Community Governors Meeting 2016 3 2015 Accomplishments At the Consumer Community Board

  • Upload
    others

  • View
    0

  • Download
    0

Embed Size (px)

Citation preview

Page 1: Industry Agenda Consumer Community Governors Meeting 2016 - … · 2016-03-01 · Consumer Community Governors Meeting 2016 3 2015 Accomplishments At the Consumer Community Board

Industry Agenda

Consumer CommunityGovernors Meeting 2016

February 2016

Davos-Klosters, Switzerland 20–23 January

Page 2: Industry Agenda Consumer Community Governors Meeting 2016 - … · 2016-03-01 · Consumer Community Governors Meeting 2016 3 2015 Accomplishments At the Consumer Community Board

About the World Economic Forum

The World Economic Forum is an international institution committed to improving the state of the world through public-private cooperation in the spirit of global citizenship. It engages with business, political, academic and other leaders of society to shape global, regional and industry agendas. Incorporated as a not-for-profit foundation in 1971 and headquartered in Geneva, Switzerland, the Forum is independent, impartial and not tied to any interests. It cooperates closely with all leading international organizations (www.weforum.org).

About the World Economic Forum Consumer Community and Governors Programme

The Consumer Community of the World Economic Forum is comprised of a select group of global chairs, chief executive officers and senior executives within the agriculture, food, beverage, retail, fast-moving consumer goods, fashion and luxury goods sectors that is actively involved in addressing global challenges. Through deep engagement across the Forum’s multistakeholder network of experts, the Consumer Community takes the lead on shaping the industry agenda and, ultimately, addressing challenges facing the industry, like food security and sustainability. At each Annual Meeting, the Consumer Community designs a special programme of invitation-only activities for chief executives, known as the Governors Programme. The programme focuses on critical issues identified by the community and is designed to generate impact at global and regional levels.

About the Consumer Community Governors Steering Committee

The Steering Committee is comprised of a representative subset of Consumer Community Governors and acts on behalf of the community throughout the year, delivering strategic guidance and direction to shape the future of the consumer industry. The committee provides insights on the changes taking place within the consumer industry and suggests ways in which the World Economic Forum can develop multistakeholder, industry-specific interactions, identify relevant intersections with other industries, and transform business, society and the economy. The Steering Committee is co-chaired by Richard Goyder, Chief Executive Officer and Managing Director, Wesfarmers Limited; and Feike Sijbesma, Chief Executive Officer and Chairman of the Managing Board, Royal DSM NV. Committee members include Jean-Francois van Boxmeer, HEINEKEN; David W. MacLennan, Cargill Incorporated; Doug McMillon, Wal-Mart Stores Inc,; Indra Nooyi, PepsiCo Inc.; Kasper Rorsted, Henkel AG & Co. KGaA; and Irene Rosenfeld, Mondelez International.

Consumer Community of the World Economic Forum

As of 1 January 2016, the Forum’s Consumer Industry Partners are:

Bayer AG

Bill & Melinda Gates Foundation

Bunge Limited

Cargill Incorporated

Carlsberg Group

CF Industries Holdings Inc.

COFRA Holding AG

DuPont

eBay Inc.

Ecolab Inc.

FEMSA

HEINEKEN

Henkel AG & Co. KGaA

International Finance Corporation (IFC)

Jeronimo Martins, SGPS, SA

Kirin Holdings Company Limited

Lawson Inc.

LIXIL Group Corporation

Louis Dreyfus Commodities

LVMH Moët Hennessy – Louis Vuitton

Majid Al Futtaim Holding LLC

Marks & Spencer Plc

Mondelez International

Monsanto Company

Nestlé SA

Nike Inc.

Orkla ASA

PepsiCo Inc.

REMA 1000

Royal DSM NV

Royal Philips

Sime Darby Berhad

Sinar Mas Agribusiness & Food

Suntory Holdings Limited

Swarovski

Syngenta International AG

Technogym SpA

The Coca-Cola Company

Unilever

Visy Industries

Walgreens Boots Alliance

Wal-Mart Stores Inc.

Wesfarmers Limited

Wilmar International Limited

Yara International ASA

Zoneco Group Co. Ltd

World Economic Forum ®2016 - All rights reserved.

No part of this publication may be reproduced or transmitted in any form or by any means, including photocopying and recording, or by any information storage and retrieval system.

The views expressed are those of certain participants in the discussion and do not necessarily reflect the views of all participants or of the World Economic Forum.

REF 290216

Page 3: Industry Agenda Consumer Community Governors Meeting 2016 - … · 2016-03-01 · Consumer Community Governors Meeting 2016 3 2015 Accomplishments At the Consumer Community Board

1Consumer Community Governors Meeting 2014

Contents

2 Message from the Co-Chairs of the Consumer Community Steering Committee

3 Highlights from the Consumer Community Governors Programme

4 Consumer Industry Transformation: A Closer Look

7 Global Challenge Initiatives

8 Global Challenge: Food Security and Agriculture

10 Global Challenge: Environment and Natural Resource Security

10 Climate Change Solutions

11 Tropical Forest Alliance 2020

12 Global Water Initiative

13 Circular Economy Initiative

14 Global Challenge: The Future of Health

16 Regional Outlook

19 Consumer Community Governors Programme Participants

20 Consumer Industries Team and Contact Information

21 Upcoming Events

Page 4: Industry Agenda Consumer Community Governors Meeting 2016 - … · 2016-03-01 · Consumer Community Governors Meeting 2016 3 2015 Accomplishments At the Consumer Community Board

2

Message

Dear Colleagues,

On behalf of the World Economic Forum and the Consumer Community Steering Committee, we want to thank you for participating in the 46th Annual Meeting in Davos, and for your engagement in the Consumer Community Governors Programme. We hope the programme was inspiring, insightful and productive for all of you.

The Annual Meeting was an opportunity for us to reconnect as a community of purpose. In our journey to improve the daily lives of people around the world, we reflected together on our key achievements in 2015 and explored transformations that are impacting our industry.

This report highlights the key outcomes of the Consumer Community Governors Programme. We invite you to review and reflect on the key drivers of transformation shaping the consumer industry, along with the progress delivered through the Global Challenge Initiatives in which the Consumer Community is actively engaged: Food Security and Agriculture, and Environment and Natural Resource Security. We are also excited to share the outcomes from the launch of the Forum’s newest Global Challenge Initiative – The Future of Health – which presents us with another opportunity to engage on issues that matter to our community.

Davos is just one touch-point in an ongoing cycle of opportunities to connect and drive impact as a community. Your contributions to our discussions in Davos enable us to identify and advance the industry priorities, and we will be working further with you and your deputies.

Thank you again for making this year’s Annual Meeting a success. We look forward to working with you over the course of the year to shape the agenda and catalyse action in priority areas. We hope to see you at next year’s Annual Meeting in Davos, scheduled for 17–20 January 2017.

Richard GoyderChief Executive Officer and Managing Director,Wesfarmers Limited; Co-Chair of the Consumer Community Steering Committee

Feike SijbesmaChief Executive Officer and Chairman of the Managing Board, Royal DSM NV; Co-Chair of the ConsumerCommunity Steering Committee

From the Co-Chairs of the Consumer Community Steering Committee

Richard Goyder

Feike Sijbesma

Page 5: Industry Agenda Consumer Community Governors Meeting 2016 - … · 2016-03-01 · Consumer Community Governors Meeting 2016 3 2015 Accomplishments At the Consumer Community Board

3Consumer Community Governors Meeting 2016

2015 Accomplishments

At the Consumer Community Board Meeting, the Governors reviewed progress made by the community in 2015. Through the Forum’s Global Challenge Initiatives, the Consumer Community has demonstrated the pivotal role played by business in accelerating progress on the most significant global challenges. Notable achievements in 2015 include the following:

Food Security and Agriculture

• Through the New Vision for Agriculture initiative, our community has helped to catalyse partnerships in 19 countries in Africa, Asia and Latin America.

• Together, these efforts have mobilized over $10.5 billion in investment commitments, of which $1.9 billion has been implemented.

Environment and Natural Resource Security

• The CEO Climate Leaders worked to catalyse private sector commitments on climate change and became a major contributor to CEO-level mobilization in the lead-up to COP21.

• In June 2015, the World Economic Forum became the host of the Tropical Forest Alliance 2020 Secretariat, and has successfully built a global partnership platform of more than 40 organizations spanning governments, the private sector and civil society.

Looking Ahead

The community committed to working as a collective group, providing systems leadership to the Global Challenge Initiatives. There was a call to action for the community to drive the food security and climate change agendas by breaking down traditional siloes and identifying opportunities for scaling up, driving pre-competitive action and collaborating across industries.

Exploring Industry Transformation

The path to success in the Fourth Industrial Revolution will place a premium on innovation, the willingness of companies to “disrupt themselves” and collaboration. The Fourth Industrial Revolution is reshaping industry at an unprecedented speed and scale, and with record force. Driven by a range of disruptions – from technology and digitally enabled innovation to increasingly connected consumers – the transformation of the consumer industries is already well under way.

In 2015, the Global Agenda Council on the Future of Consumer Industries, the Strategy Officers Community and other initiatives within the Forum focused on understanding the transformation taking place within and across industries. In Davos, the Governors explored four interrelated themes of prime importance to the consumer industry:

• Personalized experience economy: the shift from mass-markets to personalization, and from products to experiences.

• Sharing economy: the preference for access over ownership, turning consumers into users.

• Retail reimagined: the future evolution of retail and how consumers shop, motivated by technology-driven disruptions.

• Digital operating models: the need to maintain agility in business systems and operations.

These four themes of transformation generated broad interest among the Consumer Governors, and a decision on which theme to explore further will be made in the spring, with guidance from the Consumer Community Steering Committee.

Highlights from the Consumer Community Governors Programme

1: Jean-François van Boxmeer, Chairman of the Executive Board and Chief Executive Officer, HEINEKEN

2: Paul Bulcke, Chief Executive Officer, Nestlé SA

3: Irene B. Rosenfeld, Chairman and Chief Executive Officer, Mondelez International

4: Devin Wenig, President and Chief Executive Officer, eBay Inc.

5: Pieter Nota, Chief Executive Officer, Philips Consumer Lifestyle, Member of the Executive Committee; Group Executive Vice-President, Royal Philips

3

1

4

5

2

Page 6: Industry Agenda Consumer Community Governors Meeting 2016 - … · 2016-03-01 · Consumer Community Governors Meeting 2016 3 2015 Accomplishments At the Consumer Community Board

4 Consumer Community Governors Meeting 2016

The Fourth Industrial Revolution is leading to the transformation of entire systems of production, distribution and consumption. Within this context, the Consumer Governors explored how the industry is transforming, and what opportunities these transformations present to move the industry forward, while also ensuring it remains socially and environmentally responsible.

Technology is a key enabler for consumers in their quest to lead happier and healthier lives with greater meaning. Maximizing the opportunities presented by technology requires a strong understanding of how the consumer is evolving, and the ability to adapt business models to respond to this evolution. In Davos, participants explored the following dimensions through a series of sessions focused on transformation:

1. What is the impact of connected ecosystems and smart technology on organizational structures and new models of collaboration?

2. How does the evolution of the digital consumer affect business, and what opportunities does it present for innovation?

Innovative Ecosystems for the Connected Consumer

During the Innovative Ecosystems for the Connected Consumer session, the Governors participated in an interactive discussion with experts, Technology Pioneers, academics and senior leaders from Hewlett Packard Enterprise, Royal Philips, Flex and Google Ventures. The disruptors shared specific examples of the latest advances in connected ecosystems – the smart fridge, augmented realities in retail and big data analytics – setting the stage for a focused discussion on their potential impacts on organizational structures and different ways to approach collaboration.

The connected consumerThe traditional consumer no longer exists. The new connected consumer is expecting seamless experiences in their home, in their office, during recreation, and in all other areas of life. New connected technologies bring a unique set of challenges and responsibilities, particularly since technology and connected ecosystems have greater possibilities to drive behavioural change among consumers. To tap into these opportunities, it will be critical to focus on the delivery of experiences that delight.

Data is the new currencyData is a significant by-product of new technologies and is changing the ways in which organizations operate. The amount of data available has increased exponentially and it has become the currency through which organizations and consumers engage. At the same time, data is as much an inhibitor as an enabler, and great opportunities lie in shifting data from proprietary ownership to the broader ecosystem.

Unprecedented speed of transformationThe unprecedented speed at which disruption and transformation are happening has been our new reality for a while. Many organizations are not designed for this and must be open to disrupting themselves significantly to keep pace. Two key enablers to operating in this new environment are agility and focus. Industry lines are blurring and, at the same time, we are once again finding that less is more.

Innovation and start-up mentalityAs technology is reducing traditional barriers for start-ups, established companies are becoming vulnerable to competition from an increasing number of players. Adopting the start-up mentality of launching before you learn, breaking through traditional profit and loss boundaries, and accessing the right talent – with the right incentives – will move beyond incremental advances to innovation that is truly disruptive.

Keeping Up with the Consumers

Increasingly, the digital consumer is changing everything: demanding speed, convenience, digital connectivity and seamless experiences. Over 50 billion interconnected devices over the next five years can help businesses address the needs of consumers, creating nearly $5 trillion of business value over the next decade. This growth will take place in such areas as personalized consumer experiences, new operating models, and retail and e-commerce. This session aimed to inspire participants about technology-driven business model innovation in the face of changing consumer demands. Several key themes and business implications emerged.

1: Genichi Tamatsuka, President and Chief Executive Officer; Representative Director, Lawson Inc. (left) and Keisuke Nishimura, Representative Director of the Board and Senior Executive Officer, Kirin Holdings Company Limited

2: Left to right: Stefano Pessina, Executive Vice-Chairman and Chief Executive, Walgreens Boots Alliance; Eric Sprunk, Chief Operating Officer, Nike Inc.; Marc Bolland, Chief Executive, Marks & Spencer Plc

2

1

Consumer Industry Transformation: A Closer Look

Page 7: Industry Agenda Consumer Community Governors Meeting 2016 - … · 2016-03-01 · Consumer Community Governors Meeting 2016 3 2015 Accomplishments At the Consumer Community Board

5Consumer Community Governors Meeting 2016

Consumer demand shifting from products to experiencesBusinesses are no longer just selling mass-products, they are marketing personalized services, solutions and experiences. Business opportunity lies in developing production cycles that are quick to respond to the needs of consumers, resulting in a deeper collaboration between businesses and consumers through “co-production”.

Importance of localizing big businessesAs consumer demand for personalization continues to drive businesses-model changes across industries – from consumer goods to hotels – localization is gaining importance. Localizing of businesses helps them to understand local needs, develop effective sourcing and tailor products so local retailers can meet the diverse needs of their consumers. For established businesses that maintain global brands and reach, along with building digital platforms, there is still value in establishing a local bricks-and-mortar presence to continue meeting the needs of personalization.

Integrating innovation in business operationsBusinesses that are experimenting have the opportunity to learn and develop the ability to prioritize their resources and focus on ideas that are workable and scalable. To meet the evolving needs of consumers, businesses will need to expand the concept of innovation, from simple research and development to actually embedding R&D into the DNA of their business. Businesses must also continue to be open to taking risks and learning from failures, and sharing these learnings transparently within and outside the organization to gain the trust of their consumers.

Fashion and Sustainability: Green is the New Black

The Fashion and Lifestyle industry is the world’s second-biggest polluter and second-largest user of water; it also contributes 10%

1: Kasper Rorsted, Chief Executive Officer, Henkel AG & Co. KGaA

2: José Antonio Fernández, Executive Chairman, FEMSA

3: Richard Goyder, Chief Executive Officer and Managing Director, Wesfarmers Limited (left) and Feike Sijbesma, Chief Executive Officer and Chairman of the Managing Board, Royal DSM NV

4: Flemming Besenbacher, Chairman of the Supervisory Board, Carlsberg Group

1 3

of global carbon emissions. Coupled with the recent landmark agreement reached at COP21, it is clear that this sector has the opportunity to play an instrumental role in pursuing positive climate action. The session was designed to provide a platform for business, government and civil society leaders to understand business and societal benefits for sustainability. Several key themes emerged.

Transparency and traceabilityRapid transformations are taking place in the design, development, sourcing and production of products, resulting in merchandise being made in a more environmentally responsible manner. Complete transparency and traceability of products is becoming a requirement for engaged consumers. However, this will require a change in mind-set for many organizations to allow them to understand and communicate the impact of their products on the environment.

Technology-enabled new business modelsPatterns of consumption of fashion and lifestyle products have changed dramatically over the past five to ten years. Mass-market clothing is being purchased as a disposable good, with many customers buying cheap clothing on a weekly or monthly – rather than seasonal – basis. At the same time, there is a trend towards models of collaborative consumption driven by the hyperconnected consumer, in which people rent, lend, swap and share products rather than buying them outright. Rent the Runway and eBay can be considered as pioneers regarding this new model.

Fashion as an instrument for sustainability Moving forward, there is a tremendous opportunity for the Fashion and Lifestyle sector to come together on the World Economic Forum platform to build the partnerships required for this industry to use its trendsetting power to create positive change for the environment.

4

2

5

5: Soren Schroder, Chief Executive Officer, Bunge Limited

6: Takeshi Niimani, President, Chief Executive Officer; Member of the Board; Representative Director, Suntory Holdings Limited

7: Thapana Sirivadhanabhakdi, President and Chief Executive Officer, Thai Beverage Public Company Limited

6 7

Page 8: Industry Agenda Consumer Community Governors Meeting 2016 - … · 2016-03-01 · Consumer Community Governors Meeting 2016 3 2015 Accomplishments At the Consumer Community Board

6 Consumer Community Governors Meeting 2016

Digital Transformation of Industries

The Digital Transformation of Industries (DTI) project is a multi-year engagement designed to assess the impact of digital technologies on business and society and to better understand digital transformation risks and opportunities. In Davos, chief executives from across 20 industries confirmed their ongoing support for the DTI project. They are using the emerging project findings to reframe questions about the transformation of their industries.

The digital transformation curveDifferent sectors are at different points in the digital transformation curve, with sectors such as finance and communications already using digital, while others have yet to undergo transformation. Health and education in particular have yet to realize their transformation potential. When they do, the potential impact on society, especially in developing countries, will be revolutionary.

Decreased costs will increase accessibilityThe costs associated with the hardware and software driving digital transformation will continue to fall dramatically in the near future, allowing digital to become more accessible. Sensors will become more widespread, and processing the data they generate will become cheaper and faster. This is still the tip of the iceberg, and the implications of lower costs will be significant, especially for emerging markets.

Responsive regulationDigital transformation is happening at an unprecedented pace, with traditional actors and new disruptors and start-ups vying to get ahead. In this constantly shifting environment, policy-makers need to stay in step with the rapid transformations, providing smart and responsive regulations to ensure a level playing field while protecting consumer interests. In 2016, the DTI project will widen in scope and include a closer look at the regulatory environment, engaging policy-makers along the way.

http://digital.weforum.org

Digital transformation of the consumer industry

In 2015, the DTI project conducted an extensive value-at-stake analysis for the consumer industry, identifying four themes that are expected to play an important role in its transformation: consumer data flow and value capture, experience economy, omni-channel retail, and the digital operating model. E-commerce and the sharing economy present the largest digital opportunities to drive societal impact. Internet access, last-mile delivery, innovative business models and cross-industry collaboration are necessary to realize this potential.

1: Anthony Pratt, Executive Chairman, Visy Industries

2: Doug McMillon, President and Chief Executive Officer, Wal-Mart Stores Inc.

3: Left to right: Alain Bejjani, Chief Executive Officer, Majid Al Futtaim Holding LLC; James Collins Jr, Executive Vice-President, DuPont; Yoshiaki Fujimori, President and Chief Executive Officer, LIXIL Group Corporation

4: Ole Robert Reitan, Chief Executive Officer, REMA 1000

5: Pedro Soares dos Santos, Chairman, Jeronimo Martins SGPS SA

4

2

5

3

The Future of Manufacturing

The Future of Manufacturing initiative was launched at the Annual Meeting 2016. Designed to provide a platform for government and business leaders to understand and shape the transformation of the global production system, key outcomes from preliminary discussions in Davos include the following:

Innovation and technologyIn some parts of the world, technology is democratizing innovation through tremendous cross-border flow of information. But disruptive technologies do not transform industries by themselves, they need support and investment, especially to enable adoption by smaller companies.

Location and geographyThe key question is where production will take place. Anyone from anywhere can export to a global marketplace, but being in the same time zone as your customer matters. Regional trade agreements are critical factors in the equation.

SkillsHow can we provide a safe and flexible environment worldwide? Production will gravitate to where the skills are.

Smart regulationRegulations are critical and provide the necessary framework, but need to keep pace with the speed of innovation. Can common global standards be created, using existing regulatory bodies, instead of creating new ones?

1

Page 9: Industry Agenda Consumer Community Governors Meeting 2016 - … · 2016-03-01 · Consumer Community Governors Meeting 2016 3 2015 Accomplishments At the Consumer Community Board

7Consumer Community Governors Meeting 2016

Global Challenge Initiatives

The World Economic Forum focuses its attention on the most pressing global challenges requiring public-private cooperation. Work on these challenges, led by the Forum’s Centre for the Global Agenda and fuelled by the results of all Forum activities, enables government, business and other stakeholders to engage most effectively to move each issue forward.

The Consumer Community is engaged in the following Global Challenge Initiatives:

Food Security and Agriculture

The world must feed 9.7 billion people by 2050

By 2050, a global population of 9.7 billion will demand 70% more food than is consumed today. Feeding the world nutritiouslyand sustainably will require substantial improvements in the global food system.

Environment and Natural Resource Security

The world needs to achieve inclusive economic growth while combating climate change and other natural resource challenges

The global environment and economic security are indelibly intertwined. Increasing levels of greenhouse gases, environmental degradation and natural resource depletion are some of the most significant risks we face.

The Future of Health

The world needs to deliver healthy lives and health security for 9.7 billion people

By 2050, the world’s population will have risen to 9.7 billion, with 2 billion over the age of 60. The world is ill-equipped to respond to this and the global health system will need to undergo a major transformation to ensure the environment where people live fostershealthier and longer lives as well as health security across borders.

The global challenges we are facing are so staggering that they cannot be solved by one player alone. They cannot even be solved by one sector alone. We have to work both within and across sectors.

Svein Tore HolsetherPresident and Chief Executive Officer, Yara International ASA

1: Tony Will, President and Chief Executive Officer, CF Industries Holdings Inc.

2: Daniel Zhang, Chief Executive Officer, Alibaba Group Holding Limited

4

3: Peter A. Ruzicka, President and Chief Executive Officer, Orkla ASA

4: Margarita Louis-Dreyfus, Chair, Louis Dreyfus Group

21 3

Page 10: Industry Agenda Consumer Community Governors Meeting 2016 - … · 2016-03-01 · Consumer Community Governors Meeting 2016 3 2015 Accomplishments At the Consumer Community Board

8 Consumer Community Governors Meeting 2016

Introduction

The global food system is beset by serious challenges and risks. Major demographic shifts are increasing and changing the demand for food, with a rapidly growing population – expected to reach 9.7 billion by 2050 – driving up global demand for food by 60%. These changes are causing new threats to our populations, systems and environment.

The Global Challenge on Food Security and Agriculture engages over 1,400 leaders in more than 500 organizations to translate global-level commitment on food security and agriculture into action on the ground. The initiatives of the Global Challenge build on the foundation created by the New Vision for Agriculture (NVA), which aims to achieve a 20% improvement each decade in food security, environmental sustainability and economic opportunity through a market-based and multistakeholder approach in the agriculture sector. Since 2010, the NVA has catalysed and supported partnerships in 19 countries in Africa, Asia and Latin America. Together, these efforts have mobilized over $10.5 billion in investment commitments, of which $1.9 billion has been implemented, reaching over 9.6 million smallholder farmers.

Key Outcomes from the Annual Meeting

A series of high-level meetings at the Annual Meeting focused on food security and sustainable agriculture. In a session on transforming global food systems, 21 Global Agenda Trustees on Food Security and Agriculture held their first in-person meeting. The Trustees act as stewards of the global agenda on food security and agriculture, building leadership at the system level among chief executives, government ministers and heads of civil society and farmers’ organizations. The Trustees reviewed trends and risks in the world’s food systems and discussed opportunities to drive greater inclusivity, sustainability, efficiency, nutrition and health in line with the United Nations Sustainable Development Goals (SDGs). Trustees affirmed that a new type of leadership – system leadership – will be needed for systemic change, as captured in a prominent new Harvard report featuring the NVA initiative (see box on next page).

The Trustees also identified high-impact and systems-level priority actions, including the need to improve soil health; reduce food loss and waste; support healthy and nutritious diets; create smallholder procurement platforms; establish digital and mobile platforms for smallholder farmers; and promote low-carbon, high-yield and high-resilience productivity strategies.

A second high-level meeting convened 80 leaders, including chief executives; heads of state and ministers; and heads of international, civil society and farmers’ organizations. The leaders reviewed recent achievements and renewed their commitment to deepening impact from path-breaking multistakeholder partnerships in agriculture, supported by the Forum’s NVA initiative in Africa, Asia and Latin America. The meeting also launched a new guide on how to build and strengthen country-led action platforms in agriculture, a proven model that is recognized for its potential to contribute to achieving the SDGs (see box on next page).

A high-energy discussion among these committed leaders generated new insights and concrete action steps to build market-based solutions for all regions, including:

• Grow Africa: advance smallholder farmer business models in Africa through the new Patient Procurement Platform and build

Food Security and Agriculture

The New Vision for Agriculture is a powerful platform: it has the potential to intensify collective support for food systems that are aligned with the Sustainable Development Goals.

David Nabarro

1: Sarita Nayyar, Managing Director, World Economic Forum USA, introduces the session: New Vision for Agriculture: Advancing the Action Agenda

2: Liam Condon, Chief Executive Officer, Bayer AG

1

Special Adviser on the 2030 Agenda for Sustainable Development and Special Representative of the United Nations Secretary-General for Food Security and Nutrition

3: Gonzalo Ramirez Martiarena, Chief Executive Officer, Louis Dreyfus Commodities

4: Wan Ling, Executive Vice-President, Asia, Oceania and Africa, Nestlé SA

5: Michel Demaré, Chairman; Non-Executive Director, Syngenta International AG

Page 11: Industry Agenda Consumer Community Governors Meeting 2016 - … · 2016-03-01 · Consumer Community Governors Meeting 2016 3 2015 Accomplishments At the Consumer Community Board

9Consumer Community Governors Meeting 2016

inclusive processes for a successful cluster development strategy in Ethiopia.

• Grow Asia: provide financial services as a key enabler of success for smallholder farmers as part of a complete market approach that includes farmer education, access to information and infrastructure, and secured demand. Create a technology-led transformation in the Association of Southeast Asian Nations (ASEAN) region through a new open source digital platform for mobile services.

• India: mobilize a new public-private partnership in Andhra Pradesh, identify high-value commodities, and share best practices for water management.

• Latin America: set a shared vision for improved farmer productivity and environmental sustainability for a strong regional agriculture sector.

Looking Ahead

To shape the global agenda, the Global Agenda Trustees will provide leadership on priority nexus opportunities for systems-level change; the Global Agenda Council on Food and Nutrition Security will share messages and develop tools to pursue

inclusive, sustainable, efficient, nutritious and healthy food systems; and the NVA Transformation Leaders Network will expand and deepen its global community for innovation and best practice exchange.

To drive the action agenda, the NVA will support regional and national partnership platforms, including Grow Africa and Grow Asia, and in India and Latin America, through leadership facilitation and exchange of knowledge and experience. The NVA will roll out the country-led partnership model to new interested countries in 2016.

Specific regional priorities include:

• Grow Africa and Grow Asia will continue to strengthen new and existing market-based and country-led partnerships through engagement with new partners, support for innovation and best practice exchange, and measuring and sharing impact.

• NVA India will continue to strengthen partnerships in Karnataka and Maharashtra, follow-up with Andhra Pradesh on mobilizing a new effort, explore interest with Madhya Pradesh, and establish a partnership coordination team.

• In Latin America, the NVA team will build on the experience of the Mexico VIDA partnership and explore the potential to engage new countries, such as Brazil, Colombia and Nicaragua.

Public-private partnerships, supported by Grow Africa and the New Vision for Agriculture, are showing results for Ethiopia.

Hailemariam DessalegnPrime Minister of Ethiopia

New publications

Building Partnerships for Sustainable Agriculture and Food Security: A Guide to Country-Led Action

A practical guide on building and strengthening multistakeholder, country-led action in agriculture.

Tackling Global Challenges: Lessons in System Leadership from the World Economic Forum’s New Vision for Agriculture Initiative

A Harvard report articulating a new type of leadership – system leadership – to tackle complex global challenges, featuring the NVA.

4 5 3 2

Page 12: Industry Agenda Consumer Community Governors Meeting 2016 - … · 2016-03-01 · Consumer Community Governors Meeting 2016 3 2015 Accomplishments At the Consumer Community Board

10 Consumer Community Governors Meeting 2016

Such action is necessary and urgent, since the global carbon footprint of food waste has reached 3.3 billion tonnes per year.

Other relevant action areas for the consumer industry include:

• Scale up the adoption of carbon pricing and roll out new financing tools that could unleash the trillions of dollars needed for a transition to a low-carbon economy.

• Develop a comprehensive strategy that brings together land-based emissions, food security, deforestation, agriculture and land restoration.

• Further mobilize support for a corporate target of 100% renewable energy.

In a separate session, the Governor of the Bank of England Mark Carney opened a discussion on mainstreaming climate risks in the financial system. The G20 Financial Stability Board’s Taskforce on Climate-related Financial Disclosures will provide recommendations in 2016 for businesses – including those from the consumer industries – to make effective disclosures that can help corporates and investors understand and compare their exposure to physical, liability and transition risks associated with climate change. Meanwhile, coalitions of multilateral development banks will scale up efforts to blend donor contributions with capital market financing to provide viable funding for climate-friendly investments, including climate-smart agriculture.

Looking Ahead

The next 12 months will bring further momentum around the implementation of the Paris outcomes and the SDGs. A series of meetings will be convened with key partners to take forward the outcomes from Davos, as listed above.

http://www.weforum.org/global-challenges/projects/climate-change-solutions/

Introduction

The adoption of the Paris Agreement in December 2015 was a major turning point in global efforts to tackle climate change. The world’s nations agreed to limit global average temperature rise to less than 2°C above pre-industrial levels and to pursue efforts to limit the temperature increase to 1.5°C above pre-industrial levels. They also agreed to provide support for adaptation to developing countries and to come together every five years to set more ambitious targets, as advised by scientific data. As the first major international event to take place after COP21, the Annual Meeting provided an ideal opportunity to set an agenda for action.

Key Outcomes from the Annual Meeting

More than 50 global chief executives (including nearly 30 signatories to the CEO Climate Leaders statement) met in a dedicated session to discuss specific and concrete climate solutions that could be pushed forward in 2016 to follow up the Paris Agreement. The group highlighted the need to continue their strong climate-related advocacy and commitments of 2015. They also recognized the powerful role of collective commitments, such as RE100, in which major corporations have committed to purchase 100% renewable energy, in creating the scale and demand that enable transformative action.

The chief executives also explored how the Paris target will change their business models, and voiced that concrete action, including soil management, should be taken in favour of climate-smart agriculture to feed the growing population while reducing emissions. They also underscored the need to cut post-harvest losses and to influence consumption habits to reduce food waste.

We have an unprecedented opportunity to end poverty and shift to a zero-carbon economy. Inaction is unacceptable. Business must play a leading role in realising the SDGs, to secure their own growth and the prosperity of future generations.

Paul PolmanChief Executive Officer, Unilever

Environment and Natural Resource Security

Climate Change Solutions

1: Christiana Figueres, Executive Secretary, United Nations Framework Convention on Climate Change

2: Hugh Grant, Chairman and Chief Executive Officer, Monsanto Company

1 2

Page 13: Industry Agenda Consumer Community Governors Meeting 2016 - … · 2016-03-01 · Consumer Community Governors Meeting 2016 3 2015 Accomplishments At the Consumer Community Board

11Consumer Community Governors Meeting 2016

Tropical Forest Alliance 2020

Introduction

Preserving and restoring forests is a vital part of mitigating climate change. According to the latest Intergovernmental Panel on Climate Change (IPCC) report, about 10% of global greenhouse gas emissions are tied to deforestation, with up to 20% of the abatement potential identified in the land-use sector. Forests are extremely important to food and water security, and to livelihoods, and deforestation-free supply chains play a critical role in low-emissions development.

The growing demand for agricultural and forest commodities – including palm oil, paper and pulp, beef and soy – can be met while, at the same time, protecting tropical forests. Momentum has been building to commit to and support this transformation. At COP21, tropical forest countries, donor governments and the producers and buyers of forest commodities reaffirmed their commitment to sustainable sourcing and production. The focus for 2016 is to move from commitment to action at scale.

It was a strong partnership before we came to Davos, it is even stronger now.

Helen ClarkAdministrator, United Nations Development Programme

TFA 2020 is a global public-private partnership in which partners take voluntary action, individually and in combination, to reduce the tropical deforestation associated with the sourcing of commodities such as palm oil, soy, beef, and paper and pulp. TFA 2020 is in a unique position to foster cross-sector collaboration based on a common and ever-deeper understanding of the barriers and opportunities linked to deforestation-free supply chains.

Key Outcomes from the Annual Meeting

The Annual Meeting further strengthened the position of TFA 2020 as the global platform to help stakeholders achieve growth while protecting, conserving and restoring forests. Building on commitments made, companies, governments, civil society organizations and farmers’ associations supported a practical 1: Marc Bolland, Chief Executive, Marks & Spencer Plc

2: Mark Tercek, President and Chief Executive Officer, The Nature Conservancy

2

implementation agenda, anchored around place-based “protection-production” partnerships. There is now a shared understanding of the action needed to translate commitments into results, and to realize better growth with forests through place-based partnerships.

Looking Ahead

TFA 2020 is committed to helping identify and structure a select number of place-based protection-production pilot partnerships. The goal is to create a model demonstrating how jurisdictional partnerships can be scaled up and replicated, while the focus is on ensuring that tangible results are delivered and progress is made in 2016. The Secretariat will hire regional coordinators to oversee these and other region-specific activities during 2016.

www.tfa2020.org

1

Page 14: Industry Agenda Consumer Community Governors Meeting 2016 - … · 2016-03-01 · Consumer Community Governors Meeting 2016 3 2015 Accomplishments At the Consumer Community Board

12 Consumer Community Governors Meeting 2016

Key Outcomes from the Annual Meeting

United Nations Secretary-General Ban Ki-moon and World Bank President Jim Yong Kim announced a new High-Level Panel on Water to mobilize urgent action towards the SDG for water and sanitation, and other related targets. Co-chaired by the Presidents of Mauritius and Mexico, the Panel will comprise heads of state and government from both developed and developing countries, benefiting from the support of the World Economic Forum’s networks and platforms.

Looking Ahead

The Forum will assist the High-Level Panel on Water and help to mobilize and engage a wide range of stakeholders and experts to support the Panel’s objectives, which are to:

• Motivate action: focus public policy dialogue, private sector models and practices, and civil society initiatives on the water SDG.

• Advocate financing and implementation: mobilize financial resources and scale up investment for the water SDG, including through innovative financing and implementation strategies.

Press Release on High-Level Panel on Waterhttp://www.weforum.org/press/2016/01/united-nations-world-bank-group-launch-high-level-panel-on-water-in-davos1: Muhtar Kent, Chairman of the Board and Chief Executive Officer, The Coca-Cola Company

2: Douglas M. Baker Jr, Chairman and Chief Executive Officer, Ecolab Inc.

3: Peter Brabeck-Letmathe, Chairman of the Board, Nestlé SA

2

Introduction

Water plays a central role in many development issues, including poverty reduction, food, energy, cities and health. As a cross-cutting challenge, efforts towards achieving the SDG on water will create a multiplier effect, aiding the attainment of other goals. To meet SDG 6: “Ensure availability and sustainable management of water and sanitation for all”, action is needed to support public policy dialogue, private sector models and civil society initiatives, as well as to mobilize financial resources and scale up investments.

The Global Water Initiative works to transform the water security agenda by engaging an active network of partners to demonstrate the role of water in driving economic growth and how public-private cooperation can support improved planning, use and management of water resources to realize long-term growth and development strategies. The 2030 Water Resources Group, incubated by the Forum until 2012, is a good example of such a model of cooperation.

More information on the 2030 Water Resources Group: http://www.2030wrg.org/

Environment and Natural Resource Security

Global Water Initiative

The new Panel can help motivate the action we need to turn ideas into reality.

Ban Ki-moonUnited Nations Secretary-General, Speaking at the World Economic Forum Annual Meeting 2016, Davos-Klosters, Switzerland

3

1

Page 15: Industry Agenda Consumer Community Governors Meeting 2016 - … · 2016-03-01 · Consumer Community Governors Meeting 2016 3 2015 Accomplishments At the Consumer Community Board

13Consumer Community Governors Meeting 2016

Introduction

With the world population set to reach 9 billion by 2030 – including 3 billion new middle-class consumers – the challenges of expanding resource supply to meet future demand are unprecedented. The current take-make-dispose approach results in massive waste; in the fast-moving consumer goods sector alone, about 80% of the $3.2 trillion material value is lost irrecoverably each year. The circular economy represents a new vision in which industrial systems are restorative and regenerative by intention and design. The potential for innovation, job creation and economic development is huge, with estimates indicating a trillion-dollar opportunity.

Since January 2014, the World Economic Forum has hosted a series of business-led projects to scale up the circular economy under Project MainStream. An increasing number of companies are realizing the benefits of more circular practices, new partnerships are emerging and key policy developments are taking place.

Key Outcomes from the Annual Meeting

The Circular Economy: The Road Ahead workshop brought together over 80 public and private sector leaders to explore how to broaden the reach and relevance of the circular economy at the global level. Key discussion points included:

• The pairing of circular economy principles with the transformation of industries offers enhanced opportunities for value creation. The circular economy can provide immense opportunity and positive directional focus for the Fourth Industrial Revolution.

• High-growth and developing economies stand to benefit from the circular economy. For example Rwanda’s ban on plastic bags has fostered alternative packaging and recycling enterprises, creating new job opportunities and markets.

• New financing tools and approaches are needed to support circular business models, but there is no global public-private

Circular Economy Initiative

The circular economy is Europe’s chance for jobs, innovation and being leaders in the Fourth Industrial Revolution.

Ida AukenMember of Parliament, Denmark

New publications

The New Plastics Economy: Rethinking the future of plastics

Intelligent Assets: Unlocking Circular Economy Potential

Design and Management for Circularity: The Case of Paper

dialogue on this – a gap that can be addressed by the World Economic Forum.

• The European Commission’s circular economy package released in December 2015 was shared as an illustrative example of a public body taking the lead after gathering input from private stakeholders, and was highlighted for its potential to be replicated.

Looking Ahead

The Forum will establish a wider action platform across the finance, technology and public policy spheres. This new platform will be known as “Accelerating the Circular Economy” and will focus on the following areas:

• Advancing finance and technology solutions as key enablers to scale up circular economy activities.

• Advancing circular economy concepts in key emerging markets within Africa, Asia and Latin America.

• Developing a stronger interaction with policy-makers and those already engaged in circular economy activities, including the G7 Resource Efficiency Alliance and the European Commission Circular Economy Package.

1: Mike Barry, Director, Sustainable Business, Marks & Spencer Plc

2: Maurice Brenninkmeijer, Chairman of the Supervisory Board, COFRA Holding AG

1 2

Page 16: Industry Agenda Consumer Community Governors Meeting 2016 - … · 2016-03-01 · Consumer Community Governors Meeting 2016 3 2015 Accomplishments At the Consumer Community Board

14 Consumer Community Governors Meeting 2016

Introduction

By 2050, the world’s population will have risen to 9.7 billion, with 2 billion over the age of 60 years. The global health system will need to undergo major transformations to ensure our living and working environments support long and healthy lives. A strategic, long-term focus, coupled with a collaborative mind-set across industries, policy-makers, civil society and innovators to keep populations healthy, will be the key to addressing current health challenges.

Launch of the Global Challenge on The Future of Health

The Annual Meeting hosted a high-level strategic dialogue to mark the official launch of the Global Challenge on The Future of Health. The Global Challenge provides a unifying framework for health promotion and disease prevention, along with broad networks and unique opportunities for public-private collaboration. It seeks to identify areas of action that will complement the ongoing work of formal institutions and existing initiatives by employing the Forum’s communities and its capacity to catalyse multistakeholder partnerships. The Global Challenge provides an additional platform for public and private stakeholders within and outside the traditional healthcare space to work on keeping populations healthy. It will encourage industries such as retail, food and

The Future of Health

Public sector, private sector and civil society have critical roles and responsibilities to play in creating the environments where being healthy is easy, accessible and affordable to all individuals and families.

Margaret ChanDirector General, World Health Organization

The most basic health system is good nutrition. Good nutrition and healthy diets drive healthy lives, especially at the start of life. Bridges linking agriculture, nutrition and health must be built, as these will bring substantial health gains to populations around the world.

Paul BulckeChief Executive Officer, Nestlé, SA

beverage, sports and wellness, infrastructure and telecommunications to come together to work towards global health goals.

Looking at long-term priorities, the SDGs provide a suitable framework for the next 15 years, with SDG 3 (good health and wellbeing) being the primary focus. Also at the top of the agenda is the target to reduce premature mortality from non-communicable diseases by one-third by 2030. The Ebola outbreak in West Africa highlighted the need for a coordinated global response to outbreaks and epidemics with greater emphasis on building trust and preparedness.

Looking Ahead

Examples of potential areas for collaborative action were presented and discussed with the group, who provided strategic guidance regarding themes to include in the portfolio of activities of the Global Challenge on the Future of Health. The strategic direction and the first goals and projects for the Global Challenge will be defined by the Global Agenda Trustees in 2016, as this group of stewards is established and comes together for the first time.

Key areas for action highlighted at the Annual Meeting include:

• Establishing a coordination mechanism to optimize public-private cooperation in response to outbreaks.

• Building bridges across agriculture, nutrition and health.

• Raising awareness of the return on investment achieved when moving from treating sickness to promoting healthy populations.

The participants agreed that the 10th Global Challenge Initiative on the Future of Health provides a vehicle to fast-track international progress on the health security and health promotion agendas. The Global Challenge provides a unique platform where public and private sector stakeholders can come together and work towards a common goal: 9.7 billion healthy people by 2050. 1: Dick Boer, President and Chief Executive Officer, Royal Ahold NV

2: Nerio Alessandri, Founder and Chairman, Technogym SpA

1 2

Page 17: Industry Agenda Consumer Community Governors Meeting 2016 - … · 2016-03-01 · Consumer Community Governors Meeting 2016 3 2015 Accomplishments At the Consumer Community Board

15Consumer Community Governors Meeting 2016

1: Margaret Chan, Director General, World Health Organization; William H. Gates, Co-Chair, Bill & Melinda Gates Foundation

2: Left to right: Nicholas Stern, President, The British Academy; Mogens Lykketoft, President of the United Nations General Assembly; Steve Howard, Chief Sustainability Officer, IKEA Group; Andrew Steer, President and Chief Executive Officer, World Resources Institute

3: Left to right (far side of table): Paul Polman, Chief Executive Officer, Unilever; Sukanto Tanoto, Chairman RGE; Hugh Grant, Chairman and Chief Executive Officer, Monsanto Company; Paul Bulcke, Chief Executive Officer, Nestlé SA;, Christiana Figueres, Executive Secretary, United Nations Framework Convention on Climate Change

1 2

3

4 5

4: Left to right: Christiana Figueres, Executive Secretary, United Nations Framework Convention on Climate Change; Stuart T. Gulliver, Group Chief Executive, HSBC Holdings; Feike Sijbesma, Chief Executive Officer and Chairman of the Managing Board, Royal DSM NV;, Steve Sedgwick, Presenter, CNBC

5: Left to right: Liam Condon, Chief Executive Officer, Bayer AG; Ishmael Sunga, Chief Executive Officer, Southern African Confederation of Agricultural Unions; Judith Rodin, President, Rockefeller Foundation

Page 18: Industry Agenda Consumer Community Governors Meeting 2016 - … · 2016-03-01 · Consumer Community Governors Meeting 2016 3 2015 Accomplishments At the Consumer Community Board

16 Consumer Community Governors Meeting 2016

Regional Outlook

Africa

• Two new workstreams have been launched: the New Deal on Energy for Africa, and the Future of Epidemics.

• The Africa Regional Business Council identified four key areas for advancement: a) efficient use of existing infrastructure; b) technology; c) regional collaboration; and d) currency risk management.

• The “Internet for All” private session, chaired by Paul Kagame, President of Rwanda, and Hans Vestburg, CEO of Ericsson, convened government, business, civil society and academic leaders for an update on progress and to discuss the next steps. They recognized the internet as one of the biggest breakthroughs in human history, making an analogy to the invention of writing as a tool to share ideas and long-distance shipping as an impetus to global trade. Using these comparisons can be helpful since they highlight the potential for risk: global transport and trade also brought colonialism and slavery. The lesson is to celebrate advances, while being aware of possible risks.

• The World Economic Forum’s call to action for practical initiatives on the ground, and the need for new public-private collaboration models that can be scaled and replicated resonated well with the group. The context of the project for 2016 (phase 2) was agreed. The next step is to launch the first country programme in the “Northern Corridor” of eastern Africa in partnership with the Governments of Ethiopia, Kenya, Rwanda, South Sudan and Uganda, and to continue efforts in partnership with the global multilateral, bilateral, private sector, and civil society communities to share and coordinate efforts. The Forum confirmed their commitment to report on progress every year at the Annual Meeting.

Association of Southeast Asian Nations (ASEAN)

• The need for ASEAN to master the new digital economy was a common theme. Participants agreed that technology can play a transformative role for almost every challenge facing the ASEAN region, from falling growth and social exclusion to transparency and governance. However, for technology to fulfil its potential in driving the region forward, much needs to be done.

• It is a truism that basic infrastructure, from power to roads to sanitation, is a foundation of economic development. Even the digital economy needs good basic infrastructure to succeed; for example, by having both efficient urban road networks and decent rural roads in order to deliver goods and services bought over the internet. But, as participants pointed out, ASEAN continues to under-invest in these necessities, and this investment deficit is holding back growth.

• The technologies of the Fourth Industrial Revolution are reaping widespread creative destruction as jobs in old industries disappear and are replaced by opportunities in new companies in new sectors. These changes apply just as much to low-income countries as they do to mature economies.

• The ASEAN region faces many opportunities to accelerate growth by boosting integration and breaking down barriers to trade and investment. The creation of the ASEAN Economic Community (AEC), the launch of the Trans-Pacific Partnership (TPP), and the development of the Regional Comprehensive Economic Partnership (RCEP) all offer strong potential to accelerate economic growth. Of these, the AEC took centre stage among participants.

China

• Chinese Vice-President Li Yuanchao injected a note of confidence into the mood of global leaders, saying China will maintain medium- and high-speed growth in the coming five years to further contribute to the global economy after achieving 6.9% GDP growth in 2015. He also shared China’s G20 vision, saying that China’s G20 Presidency will call on member countries to improve economic policy coordination and global economic governance in a bid to boost global growth and make it fairer and more inclusive.

• China’s G20 Business Agenda was the first international consultation event co-hosted by the Forum and the China Council for the Promotion of International Trade, the Chinese B20 organizer. It brought together more than 40 leaders to exchange ideas and provide input to the business agenda during China’s G20 Presidency in 2016. Participants focused on the following priority action areas: a) creating better quality jobs as a key to achieving strong, sustainable and balanced growth; b) ensuring the global financial system is conducive to financing small- and medium-sized enterprises and high-growth start-ups; c) improving the global financial system to better support sustainable economic growth; d) creating an enabling environment to spur infrastructure financing; and e) ensuring support for the multilateral global trading and investment system.

• The Asian Infrastructure Investment Bank had its international debut. Jin Liqun, AIIB President, spoke at the Asia’s Era of Infrastructure session. His active engagement and insightful remarks were well received and helped the participants to enhance their understanding of the Bank’s development strategy and potential cooperation opportunities.

Eurasia

• While sanctions on Russia remain in place, the international community recognizes the need to cooperate closely with Moscow to respond to today’s global challenges. The height of tensions seems to be past its peak, and the tone has dramatically improved over the past several months.

• Russia’s legacy of achievements in engineering and education provided its economy with a solid foundation of human capital, but the coming wave of digitization has exposed the importance of surpassing this foundation to progress on the transition to an advanced economy. Business leaders will need to focus on leveraging new opportunities arising from digitization and mitigating its potential risks and negative effects.

• The falling price of oil and China’s slowdown have reverberated through the economies of Eurasia, with currency devaluations putting increasing pressure on citizens’ ability to cope through rising prices of food staples and disappearing savings. Reorienting economic models towards new sources of growth is now an urgent priority.

• China’s One Belt, One Road initiative has opened up new opportunities for closer cooperation between Europe, Eurasia and Asia, but barriers and challenges still have to be addressed through shared approaches and joint initiatives.

• The Ukrainian Government’s efforts over the past year have led to overall microeconomic stabilization in the country. With its well-educated workforce and rapidly developing IT sector, Ukraine has the chance to continue its growth.

Page 19: Industry Agenda Consumer Community Governors Meeting 2016 - … · 2016-03-01 · Consumer Community Governors Meeting 2016 3 2015 Accomplishments At the Consumer Community Board

17Consumer Community Governors Meeting 2016

Europe

• Europe continues to struggle with serious challenges: the migration crisis, terror attacks, growing populism, Brexit, the geopolitical situation on the borders of Europe and a prolonged near zero growth rate. However, the region is still home to 500 million people, and the majority of the population enjoys the highest living standards in the world, and in the history of the world, with highly competitive economies and high standards of education and health.

• The Fourth Industrial Revolution offers opportunities to innovate and use big data to address societal issues, increase Europe’s competitiveness and find new delivery methods to provide public goods. Greater policy coordination will be needed for Europe to harness these opportunities.

• David Cameron addressed the UK’s reform strategy for the EU and the upcoming referendum.

• The European Commission is open for business: 12 Commissioners met with business leaders to discuss issues on the European agenda, from the single digital market to security and migration.

India and South Asia

• Leaders from business, government and academia were optimistic about India and believe it is a bright spot in the world economy. The Government has initiated several initiatives, such as the recent Start-Up India mission, that will further boost the economy. As Masayoshi Son, CEO of SoftBank, said at the launch of Start-Up India: “This is the beginning of a Big Bang for India”.

• With the government’s forward-looking initiatives and critical legislations, India could be a shining star, even if the world economy slows down. Experts believe that it is important for India to pass key reforms such as the Goods and Services Tax (GST) and further reduce barriers to doing business.

• The Government’s agenda of cooperative federalism has shown positive results with States competing on many areas, including attracting foreign direct investment, promoting entrepreneurship and striving to establish smart cities. The World Economic Forum has deepened its engagement with several Indian States, including Andhra Pradesh, Karnataka and Maharashtra.

• With its reconstruction programme underway and good governance, Sri Lanka attracted a lot of interest from the business community on potential investments. Economic growth in Sri Lanka has been among the fastest in South Asia in recent years, averaging 6.3% between 2002 and 2013. In the Global Competitiveness Index 2015–2016, Sri Lanka ranked 68 among 140 countries (up from 73 in 2014–2015), placing it ahead of many other emerging economies.

Japan

• Japan leads the final demographic challenge of most developed economies; the population is both ageing (40% will be 65 or older by 2060) and shrinking (40% of today by 2060). In this context, the nation is seeking a new economic growth model promoting all citizens to work, tackling gender parity and considering migration more seriously, while overcoming the lost decade and deflationary mood of its economy.

• As Japan assumes the G7 Presidency in 2016, senior leaders emphasized a strong intention to lead the global agenda along with other leading economies.

• Governor Kuroda shared his continuous optimism on the world economy, while the economic revitalization minister urged companies to raise basic wages and to move out of a deflationary mind-set.

• The Minister of Health shared opportunities that could be offered by the Fourth Industrial Revolution, such as robot aid and tax incentives for three-generation households to ensure the necessary care for Japan’s ageing population.

• Global thought leaders urged Japan to use its G7 Presidency to take an active role in shaping the agendas on climate change, global health and other SDGs, as well as regional cooperation efforts.

Latin America

• The new President of Argentina, Mauricio Macri, stated clearly that Argentina is open to investment and international collaboration.

• The meeting of the Regional Business Council on Latin America, which includes the most influential business leaders in the region, was very successful. The participants defined the scope of a potential project, reviewed the 2016 programme and had a frank and open conversation with the new Governor of the Central Bank of Argentina.

• Government representatives from Latin America were very interested in boosting infrastructure to improve competitiveness in their countries.

• Representatives from Latin America also expressed their interest in preparing their economies to take advantage of the Fourth Industrial Revolution.

• Latin American economies are looking to move from a consumption- to an investment-driven model.

Middle East and North Africa

• The Middle East and North Africa region has been able to achieve the objective set under the New Vision for Arab Employment Initiative to invest in the continuous learning, re-skilling, up-skilling and job readiness of 100,000 of the region’s youth.

• Commitment to contribute to improving the policy and regulatory framework for businesses has taken a major step forward with the Actionable Policy Reforms Initiative.

• At the Annual Meeting, participants highlighted the opportunity provided by low oil prices to accelerate private sector investment in infrastructure as an alternative to pressured government resources. The next step is to collect case studies on successful projects.

Page 20: Industry Agenda Consumer Community Governors Meeting 2016 - … · 2016-03-01 · Consumer Community Governors Meeting 2016 3 2015 Accomplishments At the Consumer Community Board

18 Consumer Community Governors Meeting 2016

1: Christine Lagarde, Managing Director, International Monetary Fund (IMF)

2: Paul Kagame, President of Rwanda

3: Mauricio Macri, President of Argentina

4: David Cameron, Prime Minister of the United Kingdom

5: Tammam Saeb Salam, President of the Council of Ministers of Lebanon; Haidar Al Abadi, Prime Minister of Iraq

6: Joseph R. Biden Jr, Vice-President of the United States of America

7: Justin Trudeau, Prime Minister of Canada

8: Li Yuanchao, Vice-President of the People’s Republic of China

1 2 3

4 5

6 7 8

Page 21: Industry Agenda Consumer Community Governors Meeting 2016 - … · 2016-03-01 · Consumer Community Governors Meeting 2016 3 2015 Accomplishments At the Consumer Community Board

19Consumer Community Governors Meeting 2016

Co-Chaired byRichard Goyder, Chief Executive Officer and Managing Director, Wesfarmers Limited, Australia

Feike Sijbesma, Chief Executive Officer and Chairman of the Managing Board, Royal DSM NV, Netherlands

GovernorsNerio Alessandri, Founder and Chairman, Technogym SpA, Italy

Douglas M. Baker Jr, Chairman and Chief Executive Officer, Ecolab Inc., USA

Alain Bejjani, Chief Executive Officer, Majid Al Futtaim Holding LLC, United Arab Emirates

Flemming Besenbacher, Chairman of the Supervisory Board, Carlsberg Group, Denmark

Marc Bolland, Chief Executive, Marks & Spencer Plc, United Kingdom

Jean-François van Boxmeer, Chairman of the Executive Board and Chief Executive Officer, HEINEKEN, Netherlands

Maurice Brenninkmeijer, Chairman of the Supervisory Board, COFRA Holding AG, Switzerland

Paul Bulcke, Chief Executive Officer, Nestlé SA, Switzerland

James Collins Jr*, Executive Vice-President, DuPont, USA

Liam Condon, Chief Executive Officer, Bayer AG, Germany

Michel Demaré, Chairman; Non-Executive Director, Syngenta International AG, Switzerland

José Antonio Fernández, Executive Chairman, FEMSA, Mexico

Yoshiaki Fujimori, President and Chief Executive Officer, LIXIL Group Corporation, Japan

William H. Gates, Co-Chair, Bill & Melinda Gates Foundation, USA

Hugh Grant, Chairman and Chief Executive Officer, Monsanto Company, USA

Svein Tore Holsether, President and Chief Executive Officer, Yara International ASA, Norway

Muhtar A. Kent, Chairman of the Board and Chief Executive Officer, The Coca-Cola Company, USA

Margarita Louis-Dreyfus, Chair, Louis Dreyfus Group, Switzerland

Doug McMillon, President and Chief Executive Officer, Wal-Mart Stores Inc., USA

Takeshi Niimani, President, Chief Executive Officer; Member of the Board; Representative Director, Suntory Holdings Limited, Japan

Keisuke Nishimura*, Representative Director of the Board and Senior Executive Officer, Kirin Holdings Company Limited, Japan

Pieter Nota, Chief Executive Officer, Philips Consumer Lifestyle, Member of the Executive Committee; Group Executive Vice-President, Royal Philips, Netherlands

Stefano Pessina, Executive Vice-Chairman and Chief Executive, Walgreens Boots Alliance, United Kingdom

Paul Polman, Chief Executive Officer, Unilever, United Kingdom

Anthony Pratt, Executive Chairman, Visy Industries, Australia

Ole Robert Reitan, Chief Executive Officer, REMA 1000, Norway

Kasper Rorsted, Chief Executive Officer, Henkel AG & Co. KGaA, Germany

Irene B. Rosenfeld, Chairman and Chief Executive Officer, Mondelez International, USA

Peter A. Ruzicka, President and Chief Executive Officer, Orkla ASA, Norway

Pedro Soares dos Santos, Chairman, Jerónimo Martins SGPS SA, Portugal

Soren Schroder, Chief Executive Officer, Bunge Limited, USA

Eric Sprunk*, Chief Operating Officer, Nike Inc., USA

Genichi Tamatsuka, President and Chief Executive Officer; Representative Director, Lawson Inc., Japan

Devin Wenig, President and Chief Executive Officer, eBay Inc., USA

Tony Will, President and Chief Executive Officer, CF Industries Holdings Inc., USA

*Alternate to CEO/Chair

GuestsDick Boer, President and Chief Executive Officer, Royal Ahold NV, Netherlands

Thapana Sirivadhanabhakdi, President and Chief Executive Officer, Thai Beverage Public Company Limited, Thailand

Hans Van Bylen, Executive Vice-President, Beauty Care, Henkel AG & Co. KGaA, Germany

Daniel Zhang, Chief Executive Officer, Alibaba Group Holding Limited, People’s Republic of China

Consumer Community Governors Programme Participants

Page 22: Industry Agenda Consumer Community Governors Meeting 2016 - … · 2016-03-01 · Consumer Community Governors Meeting 2016 3 2015 Accomplishments At the Consumer Community Board

20 Consumer Community Governors Meeting 2016

Consumer Industries Team and Contact Information

Mayuri GhoshProject Lead, Consumer IndustriesTel.: +1 212 703 6631E-mail: [email protected]

Sarah ShellabyCommunity Lead, Retail and Consumer GoodsTel.: +41 22 869 1362E-mail: [email protected]

Michele PetruzzielloCommunity Lead, Lifestyle Tel.: +1 212 703 6607E-mail: [email protected]

Avery KlurfieldCommunity Specialist, Retail, Consumer Goods and LifestyleTel.: +1 212 703 6641E-mail: [email protected]

Lisa SweetHead of Agriculture, Food and Beverage IndustriesTel.: +41 22 869 3624E-mail: [email protected]

Christian KaufholzCommunity Lead, Agriculture, Food and BeverageTel.: +1 212 703 2323E-mail: [email protected]

Petra TanosCommunity Lead, Agriculture, Food and BeverageTel.: +41 22 869 3549E-mail: [email protected]

Katy Maurice-SprakeCommunity Specialist, Agriculture, Food and BeverageTel.: +41 22 869 3721E-mail: [email protected]

Zara IngilizianHead of Consumer IndustriesTel.: +1 212 703 2377E-mail: [email protected]

Page 23: Industry Agenda Consumer Community Governors Meeting 2016 - … · 2016-03-01 · Consumer Community Governors Meeting 2016 3 2015 Accomplishments At the Consumer Community Board

21Consumer Community Governors Meeting 2016

Upcoming Events

2016

10 May Grow Africa Investment Forum Kigali, Rwanda

11–13 May World Economic Forum on Africa Kigali, Rwanda

31 May Grow Asia Forum Kuala Lumpur, Malaysia

1–2 June World Economic Forum on ASEAN Kuala Lumpur, Malaysia

16–17 June World Economic Forum on Latin America Medellín, Colombia

26–28 June Annual Meeting of the New Champions and Industry Strategy Meeting 2016 Tianjin, People’s Republic of China

5–6 October National Strategy Day on India New Delhi, India

2017

17–20 January World Economic Forum Annual Meeting 2017 Davos-Klosters, Switzerland

Page 24: Industry Agenda Consumer Community Governors Meeting 2016 - … · 2016-03-01 · Consumer Community Governors Meeting 2016 3 2015 Accomplishments At the Consumer Community Board

World Economic Forum91–93 route de la CapiteCH-1223 Cologny/GenevaSwitzerland

Tel.: +41 (0) 22 869 1212Fax: +41 (0) 22 786 2744

[email protected]

The World Economic Forum, committed to improving the state of the world, is the International Organization for Public-Private Cooperation.The Forum engages the foremost political, business and other leaders of society to shape global, regional and industry agendas. Incorporated as a not-for-profit foundation in 1971 and headquartered in Geneva, Switzerland, the Forum is independent, impartial and not tied to any interests. It cooperates closely with all leading international organizations.