World Business Council for Sustainable DevelopmentDedicated to making a difference World Business Council for Sustainable DevelopmentDedicated to making a difference
156 trans-national corporations Making the business case for
Sustainable Development 30 associated networks World Summit 2002 to challenge and
accelerate implementation
156 trans-national corporations Making the business case for
Sustainable Development 30 associated networks World Summit 2002 to challenge and
accelerate implementation
Leadership …using our influence Leadership …using our influence
Business Action for Sustainable Development
Initiated with ICC A shared campaign to mobilize business Broad based – all sectors, worldwide Sir Mark Moody-Stuart leads Strategy meeting – October 9-10, Paris Possible Summit Business Day Stimulate initiatives, drive for synergy and
stakeholder cooperation
Initiated with ICC A shared campaign to mobilize business Broad based – all sectors, worldwide Sir Mark Moody-Stuart leads Strategy meeting – October 9-10, Paris Possible Summit Business Day Stimulate initiatives, drive for synergy and
stakeholder cooperation
The Johannesburg Summit 2002
World Summit Sept 02-11 2002 – Johannesburg
• CEOs and Heads of State
Ministerial PrepCom 4 May 6-17 2002 - Djakarta
• High levelStakeholder dialogue
PrepCom 3 Mar. 18 – 29 2002 - NY
PrepCom 2 Jan. 28 – Feb 08 2002 - NY
• Stakeholder dialogue
5 Regional Reviews Sept-Nov 2001
Where is it going?
UNECE ministerial declaration draft
Priorities Poverty eradication
Protecting the natural resource base
Make globalization work for all
Strengthen institutions and democratic process
Finance sustainable development
Promote science for decision making
A « global deal »
Sustainability Through the Market
7 keys
Making a differenceToward the Johannesburg Summit 2002 and beyond
MarketShapers Facts and trendsthat shape our markets Mar. 2002
The Business Case A workbook Sept. 2002
LaggardFree-rider
Business strategy
Marketshaper
Efficiency and Innovationcompetitiveness at the leading edgeEfficiency and Innovationcompetitiveness at the leading edge
Innovator 2Shared Successvalues as a source of top growthShared Successvalues as a source of top growth
Complier Optimizationcompliance at lowest costOptimizationcompliance at lowest cost 1
Type
CreateSharehoder
Value!
Market capitalisationMarket capitalisation
Sustainable Asset ManagementSustainable Asset ManagementReputationBrand equity
Growth
it’s growthstupid!
it’s growthstupid!
Assets
130.00
180.00
230.00
280.00
330.00
80.00
Dez93
Jun94
Dez94
Jun95
Dez95
Jun96
Dez96
Jun97
Dez97
Jun98
Dez98
Jun99
Dez99
Jun00
Dez00
Jun01
DJSI World (in USD)
DJGI World (in USD)
Dow JonesSustainability Index
15.8%15.8%
12.5%12.5%
The corporate response is � sincere � unconvincing � ambiguous
Environmental stretched targets Life cycle stewardship Performance reports Employee empowerment and partnership Equal opportunities and continuous learning Stakeholder engagement Code of ethics Beyond compliance No double standards Philanthropy and volontarism
The corporate response is � sincere � unconvincing � ambiguous
Supply chain influence Tolerance of free riders Inertia of collective action Market framework rethoric Adverse to fiscal reform Biased trade terms Distrust of state and UN action Focused on affluent markets Promote consumption
Hookedon
growth
Rawmaterialswastes
produce consumeDesiregrowthDesiregrowth
workwork
EarnsaveEarnsave
EnvironmentalimpactEnvironmentalimpact
Qualityof lifeQualityof life
EconomicgrowthEconomicgrowth
eco-efficiencyeco-efficiency
Design an economythat works for all… Design an economythat works for all…
factor 4factor 4
88
1010
…within the limitsof the planet …within the limitsof the planet
The creative power of dilemma
ecoeco ecoecoproduct or service valueproduct or service value
environmental impactenvironmental impact
eco-efficiency
Innovate!
Buyers and users preferences-Policy changes
Type 1 2
Competitive spaceof known offering
Innovativeoffering
Move beforeyou have to!Move beforeyou have to!
Assume Possible water crisis Carbon constraint Risks are higher Consumers want it all Public knows it all Integrated Product Policy Opportunity in development Economic calculus will
change
Invest in Dematerialisation Design skills Capital replacement Water management Non carbon energy « negawatts »,
« negadrops » Dialogue Communities
Eco-InnovationEco-Innovation
Eco-efficiency
Innovate!
Provide & inform consumer choice
The right market framework
Biopolymers, Washright Hybrid cars, mobility systems Low energy lighting Many more…
Move from stakeholder dialoguesto partnerships for progress
TransparencyComplementary skillsGrass roots effectivenessShared learningShared accountability
… and now the sticky ones …… and now the sticky ones …
… and now the sticky ones …… and now the sticky ones …Provide & inform consumer choice
The right marketframework Reflecting the
Worth of the Earth
Making markets work for all
30
25
15
1970 1980 1990
20
10
2000
Gross World Product in $trillions
5
Measured by GDPthe world economytrebbled in 30 years
…withlittle benefit
for a majorityof the population
-150
-100
-50
0
50
100
East Asia &Pacific
Europe &Central Asia
Latin America &the Caribbean
Middle East &North Africa
South Asia Sub-SaharanAfrica
0 5000 10000 15000
Poorest 20 countries
Richest 20 countries
Poorest 20 countries
Richest 20 countries
1960
1995
$ GDP/capita
1987 – 1998 change in million of people living on less than 1$ per day
A general « trickle down » of wealthis hard to detect for the poorest…
Poverty gapdoubled
Weaker international institutions
Rogue and failed states
Chronic local conflicts
Urban guerillas, crime
Global international crime = $500 billion
Fundamentalism, fanatism, terrorism
Weaker international institutions
Rogue and failed states
Chronic local conflicts
Urban guerillas, crime
Global international crime = $500 billion
Fundamentalism, fanatism, terrorism
…a long way to goand too little action
Of 4.4 billion people in developing countries 3/5 lack basic sanitation 1/3 have no clean water 1/4 lack adequate housing 1/5 have no adequate health service 1/5 are hungry
New business models A sense of financial venture and humanity Self interest and broader vision Adaptive governance
Opportunities at the bottom of the pyramid…