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Björn Stigson, Former President of WBCSD

Business and Sustainable Development – The Green Race is on. Björn Stigson, Former President of WBCSD Professor at University of Gothenburg School of Business, Economics and Law, Honorary Doctor’s Day, Malardalens Hogskola , Sweden, 8 May, 2012. WBCSD 2012

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Björn Stigson, Former President of WBCSD

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  1. Business and Sustainable Development – The Green Race is on Björn Stigson, Former President of WBCSD Professor at University of Gothenburg School of Business, Economics and Law, Honorary Doctor’s Day, MalardalensHogskola, Sweden, 8 May, 2012

  2. WBCSD 2012 Coalition of some 200 leading companies. Market capitalization: 6,000 BUSD; 13 M employees Malardalens, May 2012

  3. The Regional Network Today 61 Partner Organizations NHO (Norway) RBF (Poland) Business Europe • 2011 respACT BCSD Austria Danish BCSD Excel Partnership (Canada) BCSD United Kingdom econsense (Germany) Korea BCSD Vernadsky Foundation (Russia) EpE (France) BCSD Mongolia Nippon Keidanren (Japan) United States BCSD FFA (Spain) CGLI (Canada/USA) BCSD Hungary BCSD Kazakhstan FE BCSD Spain BCSD Turkey CII (India) BCSD Taiwan BCSD Portugal BCSD Mexico CentraRSE Guatemala Maala Israel BCSD UAE China BCSD SEV-BCSD Greece BCSD Croatia BCSD Honduras BCSD El Salvador BEC (Hong Kong) AEEC (Egypt) uniRSE (Nicaragua) APEQUE (Algeria) SumaRSE (Panama) Vietnam BCSD Curaçao BCSD AED (Costa Rica) BCSD Zimbabwe BCSD Pakistan TERI BCSD India PBE (Philippines) BCSD Bolivia BCSD Sri Lanka BCSD Colombia BCSD Ecuador Indonesian BCSD BCSD Brazil BCSD Thailand BCA (Australia) Peru 2021 BCSD Paraguay FEMA BCSD Mozambique New Zealand BCSD BCSD Malaysia DERES (Uruguay) Acción RSE (Chile) NBI (South Africa) BCSD Argentina 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2012 2011 Malardalens, May 2012

  4. Globescan/SustainAbility Survey Results 2011 WBCSD expected to play most significant role in advancing sustainability in next five years, after UNEP and ahead of WWF. Malardalens, May 2012

  5. The Future Society: A growth story World population (in Billions): 1950-2050 2050= 9.2 billion +33% 2010= 6.9 billion 85% Population in less developed countries 85% 15% Population in more developed countries 15% Source: United Nations Population Division, World Population Prospects: The 2006 Revision. Malardalens, May 2012

  6. 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. Malardalens, May 2012

  7. Shifting Fortunes % Share of GDP * At purchasing-power parity Source: Angus Maddison, OECD; IMF From The Economist print edition. “Wrestling for influence.” July 3rd 2008. Emerging economies > 50% of global GDP and trend will continue Malardalens, May 2012

  8. Urbanization 50% urban in 2010: 3 billion 70% urban in 2050: 6 billion Malardalens, May 2012

  9. Shifting demographics A largely aging world The cost of growing old Source: UN population prospects, 2008 Malardalens, May 2012 Source: S&P’s Global Aging 2010: An Irreversible Truth

  10. A World with limits in transition to sustainability Implementation Governance Environment Economy Society Malardalens, May 2012

  11. The Green Race is on • “The Green Race is on” between countries to transform to low carbon economies and to become the leading supplier of resource efficient technologies & solutions • If you want to win: • Transform your home market to build domestic demand, competences and scale for exports Malardalens, May 2012

  12. 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: • No. 1 rank globally Malardalens, May 2012

  13. The Green Race is on Korea • “1 of 5 Green Powerhouses globally” • Largest share of economic stimulus devoted to “green” sector (80%) • GGGI – Global Green Growth Institute Malardalens, May 2012

  14. The Green Race is on Japan • Most energy efficient economy • Has a good technology platform for green solutions Malardalens, May 2012

  15. The Green Race is on India • Supplier of low cost solutions based on domestic demand from a large, poor population • 35 USD PC tablets launched Oct 2011 Malardalens, May 2012

  16. The Green Race is on EU • Market leader today on green technology exports (35% market share) • 300% increase in R&D for green technologies in 2009 • Transformation of the internal market? People’s resistance to change and facing up to realities - Greece - Spain Malardalens, May 2012

  17. The Green Race is on US • Mobilizing the US innovation capability? • Transformation of the home market? • Political deadlock – very inward looking • “The Second Sputnik Moment” – Stephen Chu Malardalens, May 2012

  18. Consequences for Global Business • Availability of resources will be more limited and more expensive • Pollution will carry a price • CO2 • Resource efficient, low-polluting solutions will be strategic priorities for companies • A condition for staying in business • Measurement, reporting and verification of company sustainability performance will be required by governments, financial markets and consumers • NOx • Discharge to water • SOx Malardalens, May 2012

  19. WBCSD work program Focus Areas The Business Role Energy and Climate Development Ecosystems Sector Projects Capacity Building • - Water • - Buildings • - Forest Products • - Cement • Electricity • Utilities • Tires • Mobility • Mining • SDMI • GHG Protocol • Eco Patent Commons • Urban Infrastructure • Sustainable Consumption • & Value Chains • Food, water & land-use Systems Solutions Malardalens, May 2012

  20. The Business Role Focus Area “Business cannot succeed in a society that fails.” But, what does that mean? Malardalens, May 2012

  21. Tomorrow’s Leaders Group (2004 – 2005) “From challenge to opportunity – The Role of Business in Tomorrow’s Society” 2006 Co-authors: P Polman (P&G) and J Manzoni (BP) “We believe that the leading global companies of 2020 will be those that provide goods and services and reach new customers in ways that address the world’s major challenges – including poverty, climate change, resource depletion, globalisation and demographic shifts.” A Manifesto for Tomorrow’s Global Business Malardalens, May 2012

  22. WBCSD Vision 2050 2008 - 2010 A platform for dialogue about the role of business in a resource & carbon constrained world. Vision 2050: 9 Billion people, living well, within limits of the planet Malardalens, May 2012

  23. Reaching Vision 2050: Two Mega Changes for Success, Two Innovation Challenges for the World Human Development Index (HDI) Malardalens, May 2012 Source: GFN / UNDP

  24. Vision 2050 Pathway: 9 elements The pathway to Vision 2050 2050 Malardalens, May 2012 TODAY

  25. Business Opportunities in Vision 2050 Malardalens, May 2012

  26. WBCSD 2012 • “Vision 2050” • “Changing Pace” • Public policies to scale and accelerate business action towards Vision 2050 • “Commitments to Actions” • Actions that Business and companies are willing to commit to Malardalens, May 2012

  27. WBCSD work program Focus Areas The Business Role Energy and Climate Development Ecosystems Sector Projects Capacity Building • - Water • - Buildings • - Forest Products • - Cement • Electricity • Utilities • Tires • Mobility • Mining • SDMI • GHG Protocol • Eco Patent Commons • Urban Infrastructure • Sustainable Consumption • & Value Chains • Food, water & land-use Systems Solutions Malardalens, May 2012

  28. Energy & Climate today • The future energy system and energy mix post Fukushima? • Overriding theme: - Electrification of the energy system • Specific issues: • Nuclear? • More renewables and gas • More distributed electricity generation • Focus on energy efficiency Malardalens, May 2012

  29. The Growing Importance of Energy Efficiency SOURCE: IEA WEO 2009 Total(2030) = 13840 MT Efficiency= 57% Influencing consumption Malardalens, May 2012

  30. Energy and Climate today Many critical systems solutions/trade offs remain to be solved (“Nexus” problems) • - Energy • Urban infrastructure – Buildings – Land transport • Electricity generation • - Water - Food - Land use Malardalens, May 2012

  31. WBCSD work program Focus Areas The Business Role Energy and Climate Development Ecosystems Sector Projects Capacity Building • - Water • - Buildings • - Forest Products • - Cement • Electricity • Utilities • Tires • Mobility • Mining • SDMI • GHG Protocol • Eco Patent Commons • Urban Infrastructure • Sustainable Consumption • & Value Chains • Food, water & land-use Systems Solutions Malardalens, May 2012

  32. Sector approaches fulfill a multitude of roles • Platforms to address sector license to operate, innovate and grow • Engagement along the entire value chain • Drivers of a “level playing field” via common standards and data • GHG Protocols • Platforms for effective national implementation (NAMAs) Malardalens, May 2012

  33. Cement Sustainability Initiative (CSI) • 23 member companies - 10 years of successful collaboration • Achievements: • Global database on energy and CO2 • Industry guidelines & company commitments (emissions, fuels, raw materials, safety management) Malardalens, May 2012

  34. Forest Solutions • Forests role in climate change (REDD +) • Broadening role of the sector: Bio-energy, biodiversity, water and smart packaging * REDD+: Reducing Emission from Deforestation and forest Degradation in developing countries Malardalens, May 2012

  35. WBCSD work program Focus Areas The Business Role Energy and Climate Development Ecosystems Sector Projects Capacity Building • - Water • - Buildings • - Forest Products • - Cement • Electricity • Utilities • Tires • Mobility • Mining • SDMI • GHG Protocol • Eco Patent Commons • Urban Infrastructure • Sustainable Consumption • & Value Chains • Food, water & land-use Systems Solutions Malardalens, May 2012

  36. WBCSD work program Focus Areas The Business Role Energy and Climate Development Ecosystems Sector Projects Capacity Building • - Water • - Buildings • - Forest Products • - Cement • Electricity • Utilities • Tires • Mobility • Mining • SDMI • GHG Protocol • Eco Patent Commons • Urban Infrastructure • Sustainable Consumption • & Value Chains • Food, water & land-use Systems Solutions Malardalens, May 2012

  37. A World with limits in transition to sustainability Implementation Governance Environment Economy Society Malardalens, May 2012

  38. The Rio Decades: 1992 - 2012 • Changing Roles • Rio 1992: • A bipolar world • “Governments and NGOs” • Rio + 5, 1997: • A tripartite world • Governments, Business and Civil Society • Johannesburg 2002: • Business: A provider and implementer of solutions and actions • Rio + 20, 2012 • Business: Ahead of governments in driving change and actions Malardalens, May 2012

  39. New Public Private Partnerships needed • Between governments and business • Both globally and nationally • Business has a major role to play as a solutions provider • Business to business • Cooperation within industry sectors across country borders will grow in importance • Between companies and WBCSD as a platform to jointly address green growth and sustainability • With civil society • To establish trust for difficult trade offs and transformations • With academia • To build capacity for implementation Malardalens, May 2012

  40. Business cannot succeed in a society that fails! Malardalens, May 2012

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