“Sustainability Through a Private Sector Lens”

Terry F. Yosie, President & CEO

World Environment Center

National Academies Roundtable on Science and Technology for Sustainability

May 6, 2011

New Century Drivers = Risks + Opportunities

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Power Shifts Across the Global Chess Board

• Power transition

→ Rise of the rest

3 Source: Joseph S. Nye Jr., The Future of Power

• Power diffusion → From states to non-states

Enablers of Power Shifts

• Global scale communications networks—e.g., Twitter in Iran, campaign to ban land mines

• Nonlinear relationships—power is not proportionate to resources

• Everything happens faster

• Contest of competitive credibility—power of the narrative

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Why Has Sustainability Become Important?

• Globalization of market-driven economic activity

• Emergence of global scale problems—a changed agenda (e.g., biodiversity, climate change, pandemics)

• Limitations of current institutions

• Evolution of global, middle-class, consumer values

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Sustainability Continues to Evolve: Beyond Brundtland…

• Wealth creation in a different way—use of fewer natural resources and materials

• Transition to lower carbon economies

• Innovation opportunities and value creation

• Redefined roles and responsibilities for business, government, NGOs and consumers

• Adaptability and resilience for the longer-term

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Selected Case Examples: Companies Respond to Different Drivers

Siemens

IBM

Unilever

Marks & Spencer

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© 2009 IBM Corporation

Let’s build a smarter planet: Green & Beyond

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In 2007, for the first time in history, majority of population lived in cities – 3.3B

60 million people moving to cities each year

59 cities with 5 million+ citizens by 2015

70% world population living in cities by 2050 – 6.4B people

India’s urbanization rate at 50% by 2030

$40+ trillion investment in urbanization in China (2005-2025)

Smarter Cities – A complex System of Systems

EDUCATION • TRANSPORTATION • SOCIAL SERVICES • SECURITY • SAFETY • UTILITIES • HEALTHCARE • COMMUNICATIONS

EDUCATION • TRANSPORTATION • SOCIAL SERVICES • SECURITY • SAFETY • UTILITIES • HEALTHCARE • COMMUNICATIONS

It will:

1.Fuel innovation and growth

2.Help us win with customers

3.Help us grow in D&E markets

4.Build consumer preference

5.Generate cost savings

The business case for Unilever’s Sustainability Plan is compelling

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Future Evolution of Sustainability

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Opportunities for transformational innovation based on science and technology and new institutional arrangements

Sustainability moving from the periphery towards a more central position in business strategy

Qwest for global strategies and standards

Emergence of different perspectives beyond environment & energy—economic nationalism, national security, good governance and social justice

Migration from a conversation among elites to one accessible to consumers and voters that can inform their choices

Who has the advantage?

Nations, businesses and NGOs that demonstrate:

Future Scenario

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Resilience Adaptability

Ability to Scale