FROM CHALLENGE TO OPPORTUNITY Idar Kreutzer CEO, Finance Norway

A changing global marketplace 2

Ecological estimates: Getting to one planet by the end of the 2050s Vision 2050 ecological footprint against business-as-usual How many Earths do we use? Source: Global Footprint Network and WBCSD Vision 2050,

The pathway to

Business models need to be adjusted ”Those companies that wait to be forced into action or who see it solely in terms of reputation management or CSR, will do too little too late and may not even survive.” Paul Polman, CEO Unilever Increasing complexity of risk Changing consumer behavior Business Evolving framework conditions Rising cost of capital Fluctuating prices and availability of raw materials Source: World Business Council for Sustainable Development, Vision

Environment Economy Society Sustainable value creation A sustainable business model 6

The strategic business perspective Goals 1. Reverse the trends 2. Manage the consequences Key drivers Consumer behaviour Competitor behaviour Risk management Innovation Cost of capital – investors Reputation 7

Driver no. 1:Consumer behaviour September 2013: Tesla model S at the top of sales statistics. 616 new cars sold in Norway. 8

Driver no. 2:Competitor behaviour Unilever Sustainable Living Plan: “We are taking responsibility not just for our own direct operations but for our suppliers, distributors and - crucially - for how our consumers use our brands.” 9

Driver no. 3: Risk management 10

Driver no. 4:Innovation Technology partnership Siemens - Statoil Wind power Subsea technology Electrical engineering technology and energy efficiency measures 11

The Southern Coast of Norway NODE’s VISION: ”To help the oil and gas industry on the southern coast of Norway remain world-leading irrespective of competition”. “The cluster has redefined itself, moving from a volume-based cluster to a knowledge-based cluster.” Four learning areas are given priority: Mechatronics Robotics Logistics Management 12

Driver no. 5:Cost of capital – investor perspective The TIP-factors Technologial change Impacts Policy ”These risk factors will be priced by the capital market on the same terms as more traditional risk factors” (Mercer/Norges Bank) 13

Driver no. 6:Reputation Make it or break it 14

Building & transforming… a. Cities b. Infrastructure c. Livelihoods & lifestyles Helping change happen Improving biocapacity & managing ecosystems Business domains for the next decade – Opportunities and overlaps 15

“There are risks and costs to action. But they are far less than the long range costs of comfortable inaction”. John F. Kennedy 16 The fundamental risk