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Global Trends in Responsible Business Conduct

Global Trends in Responsible Business Conduct. Caroline Twigg, WBCSD 21 April 2011, Delhi. What is the WBCSD?. Market capitalization: $8,000 billion, 13 million employees Supplies products and services to half of the world’s population every day. Key moments in our recent history ….

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Global Trends in Responsible Business Conduct

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  1. Global Trends in Responsible Business Conduct Caroline Twigg, WBCSD 21 April 2011, Delhi

  2. What is the WBCSD? • Market capitalization: $8,000 billion, 13 million employees • Supplies products and services to half of the world’s • population every day

  3. Key moments in our recent history … 1st satellite image of earth China becomes largest GHG emitter WSSD Johannesburg Silent Spring published WTO established Corporate scandals & SOX Rio World Summit WBCSD established Stockholm Conference Prius to market Chernobyl Famine in Africa 1960 1970 1980 1990 2000 2010 Montreal Protocol Battle of Seattle Nike child labour Our Common Future Oil Crisis FoE established Limits to Growth published Berlin Wall collapse Financial crisis Bhopal Inconvenient truth Exxon Valdez 3 mile island Kyoto Rio 2012 Stern Review

  4. shaped our world today

  5. Increased stakeholder interest

  6. Increased stakeholder activity Founding dates of key NGOs The 21st Century NGO SustainAbility

  7. Increased investor scrutiny Institutional investors: increasingly factoring ‘social’ issues into investment decisions

  8. Increased resource constraints Estimated years of supply Source: Earth's natural wealth: an audit, the New Scientist, 2007

  9. Business: increased efficiencies South Africa Energy Efficiency Accord Cheap electricity blackouts • 2005: Minister for Energy and Minerals + CEOs of 24 major energy users + seven industry associations • Eg Eskom: 1 billion kWh savings • Implementation: • Tools, expertise and peer support: collaboration • Business-govt partnership Advantages: • Business savings: costs, CDM revenues • Whole economy: competitiveness • Environmental sustainability • Meet government targets

  10. Business: increased opportunities • 92% of UK business leaders think green growth represents an opportunity for their business (Carbon Trust) • 2010: USA solar market 67% growth • Green buildings (USA study): • 1.8% more cost to design and construct • 20% cost saving over lifetime

  11. Business: increased measurement and monitoring www.ghgprotocol.org

  12. Business: increased reporting and accountability Increasing numbers of corporate sustainability reports with GRI Demonstrated transparency public accountability

  13. Business: increased global, voluntary actions United Nations Global Compact (2000): >4,000 signatories, 100 countries Source: Annual Review (2007) United Nations Global Compact

  14. Our future society: a growth story World population (in Billions): 1950-2050 Source: United Nations Population Division, World Population Prospects: The 2006 Revision. 85% Population in less developed countries 15% Population in more developed countries

  15. Future society: urban 70% urban in 2050: 6 billion 2010: 3 billion 16

  16. Future society: key challenges Ecological Footprint (Global Hectares per Person) Source: GFN / UNDP Human Development Index (HDI)

  17. Transition to sustainability: consequences for business • Input into public policy-making and PPPs • Competition for resources • Environmental protection: competitive • Pressure to measure/report ecosystems impacts • Business cannot succeed in a society that fails • Solutions provider • Growth opportunity: infrastructure, products and services Green Economy Global Governance of Sustainable Development

  18. ‘The Green Race’ is on … to transform to low carbon economies and lead the supply of resource efficient technologies & solutions EU • Market leader on green tech exports (40% mkt share) • 300% increase in green tech R&D (2009) • Transformation of internal market? USA • Mobilizing the US innovation capability? • Transformation of home market? Japan • Most energy efficient economy • Good technology platform for green solutions

  19. ‘The Green Race’ is On China • About to become race leader • Key component of next 5-Year Plan (2011-2015) • Clean energy investment: no. 1 rank • Taking the lead on solar & wind Korea • 80% of economic stimulus devoted to “green” sector • Presidential Decree: Green New Job Creation Plan 2009 • GGGI: Global Green Growth Institute India • Supplier of low cost solutions based on domestic demand from a large, poor population

  20. Protect Reducing risk Strengthening the license to operate Increasing brand value / reputation Manage Reducing costs Enhancing productivity Raising the quality of people Grow Improving access to / cost of capital Promoting revenue growth Improving market access Stimulating innovation Opportunities for responsible businesses … role of business

  21. WBCSD Vision 2050 Platform for dialogue about the business role in a resource & carbon constrained world

  22. www.wbcsd.org For more information wbcsd.org/water twigg@wbcsd.org

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