business and sustainable development: the global contextwbcsdcement.org/pdf/csiforum2011/02 - 20...

Björn Stigson, President WBCSD

Cement Sustainability Initiative Symposium, Bangkok

20 September, 2011

Business and Sustainable

Development:

The Global Context

CSI Bangkok, September 2011 2

A World in Transition to Sustainability

SocietyEconomy

Environment


The Future Society: A growth story

0

1

2

3

4

5

6

7

8

9

10

1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050Source: United Nations Population

Division, World Population

Prospects: The 2006 Revision.

World population (in Billions): 1950-2050

85%

15%

Population in less developed countries

Population in more developed countries

2010= 6.9 billion

2050= 9.2 billion

+33%

85%

15%


Development: The Poverty Challenge

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.


Urbanization

50% urban in 2010: 3 billion

70% urban in 2050: 6 billion


Shifting Fortunes

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

So

urc

e: A

ng

us M

ad

dis

on

, OE

CD

; IMF

Fro

m T

he

Eco

no

mis

t prin

t ed

ition

.

“Wre

stlin

g fo

r influ

en

ce

.” Ju

ly 3

rd 2

00

8.

% Share of GDP

0

20

40

60

80

1913 1950 2005 2025

Emerging economies Developed economies

* At purchasing-power parity


Shifting demographics

Source: UN population prospects, 2008

A largely aging world The cost of growing old

Age-related spending (as % of GDP in selected

countries) Source: Standard and Poors 2010



SocietyEconomy

Environment


The Search for Green Growth Solutions Globally

• OECD “Towards Green Growth”

• EU Green Plan 2020

• UNEP “ Towards a Green Economy: Pathways to

Sustainable Development and Poverty Eradication”

• Rio + 20, 2011: Key agenda items

o Green Growth

o Global Governance of sustainable development


The Green Race is on

• “The Green Race is on” between countries to

become the leading supplier of resource

efficient and low polluting technologies &

solutions

• If you want to win:

o Transform your home market to build

domestic demand, competences and scale

for exports


The Green Race is On

China

• About to become the leader in the Green Race

• Key component of 12th 5-Year Plan (2011-2015)

• Renewable energy investment:

o No. 1 rank globally

o 49 BUSD invested globally in 2010

o Taking the lead on solar & wind



Korea

• Largest share of economic stimulus devoted to “green”

sector (80%)

• “1 of 5 Green Powerhouses globally”

• GGGI – Global Green Growth Institute

Japan

• Most energy efficient economy

• Has a good technology platform for green solutions



India

• Supplier of low cost solutions based on

domestic demand from a large, poor population



EU

• Market leader today on green technology exports

(40% market share)

• 300% increase in R&D for green technologies in

2009

• Transformation of the internal market?

US

• Mobilizing the US innovation capability?

• Transformation of the home market?


Consequences for Business

• Availability of resources will be more limited and more

expensive

• Pollution will carry a price

o CO2,

o SOx

o NOx

o Discharge to water

• Resource efficient, low-polluting solutions are strategic

priorities for companies

o A condition for staying in business

• Measurement, reporting and verification of company

sustainability performance will be required by

governments, financial markets and consumers


WBCSD Vision 2050


Vision 2050: 9 Billion people, living well, within limits

of the planet

Human Development Index (HDI)

Eco

logic

al F

oo

tprin

t (G

lob

al H

ecta

res p

er

Pe

rson

)

So

urce: G

FN

/ UN

DP


The path we know


Reaching Vision 2050: Two mega changes for success, two

innovation challenges for the world

Human Development Index (HDI)

Eco

logic

al F

oo

tprin

t (G

lob

al H

ecta

res p

er

Pe

rson

)

So

urce: G

FN

/ UN

DP


Vision 2050 Pathway: 9 elements

TODAY

The pathway to Vision 2050


Business Opportunities in Vision 2050

Building & transforming…

a. Cities

b. Infrastructure

c. Livelihoods & lifestyles

Helping change happen

Improving biocapacity &

managing ecosystems


WBCSD Work Program

Focus Areas

- Water

- Buildings

- Forest Products

- Cement

- Electricity

Utilities

- Tires

-Mobility

- Mining

Sector

Projects

Energy and

Climate

The Business Role

Capacity

Building

• Urban Infrastructure• Sustainable Value Chains

• Urban Infrastructure

• Sustainable Consumption

& Value Chains

•Food, water & land-use

Systems Solutions

Johannesburg, July 2011

-SDMI

-GHG

Protocol

-Eco Patent

Commons


Energy & Climate today I

• The future energy system post Fukushima?

o Nuclear?

o More renewables and gas

o Focus on energy efficiency


The Growing Importance of Energy Efficiency

SOURCE: IEA WEO 2009

Total(2030) = 13840 MT

Efficiency= 57%


Energy and Climate today II

• Many critical systems solutions/trade offs remain to be

solved

• Energy access for all/ reduced energy poverty

1.6 billion people lack access to electricity

o Energy & Partnership

Energy

Food

Land use

Water


Work since 12 years

• New standards for Value Chains and Product

Life Cycles launched 2011

• Future Focus

Sector-specific protocols

o Chemicals

o Aluminum

WBCSD/WRI Green House Gases Protocol

* GHG: Green House Gas


WBCSD work program

Focus Areas

- Water

- Buildings

- Forest Products

- Cement

- Electricity

Utilities

- Tires

- Mobility

- Mining

Sector

Projects

Energy and

Climate

The Business Role

Capacity

Building


Systems Solutions

- SDMI

- GHG

Protocol

- Eco Patent

Commons



& Value Chains

• Food, water & land-use


Convention on Biological Diversity

COP 10, Nagoya, Japan, Oct 2010

Strategic Plan approved by 193 countries

1. National biodiversity action plans

2. “Aichi” targets for biodiversity by 2020 e.g.

• Increase land Protected Area by 17%;

marine to 10%

• Halve rate of habitat lost including forests

3. Nagoya Protocol on Access & Benefit Sharing

* COP: Conference of the Parties


WBCSD and Ecosystems

• Ecosystem Services Review (ESR)

o Method to develop strategies to manage risks and

opportunities arising from dependence and impact

on ecosystems


• Corporate Ecosystem Valuation (CEV)

o Value impacts and dependencies

o Complementary to other business tools

WBCSD and Ecosystems


WBCSD work program

Focus Areas

- Water

- Buildings

- Forest Products

- Cement

- Electricity

Utilities

- Tires

- Mobility

- Mining

Sector

Projects

Energy and

Climate

The Business Role

Capacity

Building


Systems Solutions

- SDMI

- GHG

Protocol

- Eco Patent

Commons



& Value Chains



Sector approaches

• Focus on sectors as platforms for effective

national implementation of actions (NAMAs)

• Engagement along the entire value chain in

sectors

• Technology Roadmaps

o IEA technology road map work

• GHG Protocols

o Consistent measurement and reporting for

the sector


Cement Sustainability Initiative (CSI) • 23 member companies - 10 years of successful collaboration

• Achievements:

oGlobal database on energy and CO2

o Industry guidelines & company commitments (emissions, fuels, raw materials, safety management)


CSI/ IEA Technology Roadmap

• Outlines existing and potential technologies,

and how they may help the industry support a

halving of global CO₂ emissions (Dec. 2009)


Energy Efficiency in Buildings (EEB)

• Buildings represent 40 - 50 % of world energy

use

• Report: “Transforming the Market”

• Key Message: Cutting building emissions by

50% globally by 2050 is possible at an average

abatement cost of 25USD/tCO2 (PIIE, 2009)

• A new Global Building Sector Project in

collaboration with IEA (International Energy Agency)

* PIIE: Peterson Institute of International Economics

* IEA: International Energy Agency


WBCSD work program

Focus Areas

- Water

- Buildings

- Forest Products

- Cement

- Electricity

Utilities

- Tires

- Mobility

- Mining

Sector

Projects

Energy and

Climate

The Business Role

Capacity

Building


Systems Solutions

- SDMI

- GHG

Protocol

- Eco Patent

Commons



& Value Chains



Urban Infrastructure InitiativeI (UII)

Overall objective:

Involving business early in the urban planning process will help

create a cross-cutting strategy and provide competitive and

effective solutions


Water limits

33% of the

world’s population

could be affected

by water scarcity

by 2025

Source: OECD Towards Green Growth


Water stewardship

Measuring water use and assessing impacts

• WBCSD Global Water Tool

o Sector customizations

– Electricity Utilities

– Oil & Gas

o Country tools

– Indian Water Tool

• Water Footprint Network

• Development of ISO standard

on water footprint


Short term Global Context I

• Fukushima nuclear disaster

• Political unrest in the Arab world

• Continued economic and financial

challenges in OECD countries

• Political ramifications from US mid-term

election


Short Term Global Context II

• More political tensions in intergovernmental

processes and negotiations

o Climate Change

o Trade (WTO)

• Stronger national regulations and enforcement

of company performance



SocietyEconomy

Environment


New partnerships needed

• Between governments and business

o Both globally and nationally

o Business has a major role to play as a solutions

provider

• Business to business

o Cooperation within industry sectors across country

borders will grow in importance

– Eg. Cement Sustainability Initiative

business and sustainable development: the global contextwbcsdcement.org/pdf/csiforum2011/02 - 20...

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