bjorn stigson's v100 presentation
DESCRIPTION
Bjorn Stigson's presentation to the V100 business forum. Stigson is the president of the World Business Council for Sustainable Development.TRANSCRIPT
Edmonton, Canada, 19 October 2009
World Business Council for
Sustainable Development
Business and the Sustainable Development Landscape
Edmonton, CanadaBjörn Stigson, WBCSD President
1
Edmonton, Canada, 19 October 2009
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
2
Edmonton, Canada, 19 October 2009
Representing 36 countries – based on corporate headquarters
Where are our members?
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Edmonton, Canada, 19 October 2009
Canadian Members
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Edmonton, Canada, 19 October 2009
Which sectors do they represent?
212015141413121111101010774442211
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Edmonton, Canada, 19 October 2009
The World in Transition to Sustainability
66.
Society
Economy Environment
Edmonton, Canada, 19 October 2009
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
Edmonton, Canada, 19 October 2009
Development: The Poverty Challenge
8
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.
Edmonton, Canada, 19 October 2009
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
Edmonton, Canada, 19 October 2009
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
Edmonton, Canada, 19 October 2009
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
Edmonton, Canada, 19 October 2009
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
Edmonton, Canada, 19 October 2009
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
Edmonton, Canada, 19 October 2009
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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Edmonton, Canada, 19 October 2009
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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Edmonton, Canada, 19 October 2009
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
- Water - Energy Efficiency in Buildings
- Forest Products
- Cement
- Electricity Utilities
- Tires
- Mobility
- Mining
- Chemicals
InitiativesProjects - Eco Patent
Commons
-Urban
Infrastructure
-Sustainable Value Chain
- Maritime
Edmonton, Canada, 19 October 2009
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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Edmonton, Canada, 19 October 2009
Global emissions scenarios
19Source: IEA. ETP 2008
Edmonton, Canada, 19 October 2009
Reductions in energy-related CO2 emissions in the climate policy scenarios
20
Source: IEA. WEO 2008. Presentation by Dr. Fatih Birol
Edmonton, Canada, 19 October 2009
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
Edmonton, Canada, 19 October 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
Edmonton, Canada, 19 October 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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Edmonton, Canada, 19 October 2009
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%
Edmonton, Canada, 19 October 2009
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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Edmonton, Canada, 19 October 2009
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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Edmonton, Canada, 19 October 2009
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
Edmonton, Canada, 19 October 2009
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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Edmonton, Canada, 19 October 2009
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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Edmonton, Canada, 19 October 2009
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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Edmonton, Canada, 19 October 2009
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?”
Edmonton, Canada, 19 October 2009
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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Edmonton, Canada, 19 October 2009
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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Edmonton, Canada, 19 October 2009
Work Program
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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
Edmonton, Canada, 19 October 2009
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:
Edmonton, Canada, 19 October 2009
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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Edmonton, Canada, 19 October 2009
“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.
Edmonton, Canada, 19 October 2009
Work Program
38. 38
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
Edmonton, Canada, 19 October 2009
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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Edmonton, Canada, 19 October 2009
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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Edmonton, Canada, 19 October 2009
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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Edmonton, Canada, 19 October 2009
WBCSD Water Working Group since 1996 More than 60 companies representing a
broad range of sectors Co-Chairs: Borealis, ITT Corporation
WBCSD water project
Edmonton, Canada, 19 October 2009
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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Edmonton, Canada, 19 October 2009
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
Edmonton, Canada, 19 October 2009
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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Edmonton, Canada, 19 October 2009
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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Edmonton, Canada, 19 October 2009
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
Edmonton, Canada, 19 October 2009
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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Edmonton, Canada, 19 October 2009
Sustainable consumption – Lifestyles/ demand-side management– Efficiency & technology alone will not be
enough
2020: Key Issue II
49.
Edmonton, Canada, 19 October 2009
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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Edmonton, Canada, 19 October 2009
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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Edmonton, Canada, 19 October 2009
www.wbcsd.org
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