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, Malardalens Hogskola, Sweden, 8 May, 2012
Gothenburg, Nov 2011

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

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

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
Gothenburg, Nov 2011

5. The Future Society: A growth story
World population (in Billions):
2050= 9.2 billion
+33%
2010= 6.9 billion
85%
Population in less developed countries
85%
Population in more developed countries
15%
15%
Malardalens, May 2012
Source: United Nations Population Division, World Population Prospects: The 2006 Revision.
Gothenburg, Nov 2011

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
Gothenburg, Nov 2011

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
Gothenburg, Nov 2011

9. Shifting demographics
A largely aging world
The cost of growing old
Total Age-related Spending in selected countries
% GDP
2010
2020
2030
2040
2050 US
10.8
12.5
15.1
17.1
18.5
France
24.9
26.5
29.1
31.0
31.9
Germany
20.0
22.0
25.1
27.8
29.5
Greece
18.6
21.4
26.6
32.6
36.6
Sweden
21.6
23.0
25.2
26.8
27.4
Japan
18.8
20.8
22.1
24.4
26.7
China
4.4
4.9
5.5
6.3
7.0
Indonesia
2.2
2.7
3.2
3.9
4.7
India
2.6
3.4
Brazil
13.6
14.4
17.0
21.3
25.9
Source: UN population prospects, 2008
Malardalens, May 2012
Source: S&P’s Global Aging 2010: An Irreversible Truth
Gothenburg, Nov 2011

10. A World with limits in transition to sustainability
Implementation
Governance
Environment
Economy
Society
Malardalens, May 2012
Gothenburg, Nov 2011

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
Gothenburg, Nov 2011

12. The Green Race is on China
About to become the leader in the Green Race
Key component of 12th 5-Year Plan ( )
Renewable energy investment:
No. 1 rank globally
Malardalens, May 2012
Gothenburg, Nov 2011

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
Gothenburg, Nov 2011

14. The Green Race is on Japan Most energy efficient economy
Has a good technology platform for green solutions
Malardalens, May 2012
Gothenburg, Nov 2011

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
Gothenburg, Nov 2011

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
Gothenburg, Nov 2011

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
Gothenburg, Nov 2011

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
SOx
NOx
Discharge to water
Malardalens, May 2012
Gothenburg, Nov 2011

19. Sustainable Consumption
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
Gothenburg, Nov 2011

20. The Business Role Focus Area
“Business cannot succeed in a society that fails.” But, what does that mean?
Malardalens, May 2012
Gothenburg, Nov 2011

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
Gothenburg, Nov 2011

22. WBCSD Vision
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
Gothenburg, Nov 2011

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
Gothenburg, Nov 2011

24. Vision 2050 Pathway: 9 elements
The pathway to Vision 2050
2050
Malardalens, May 2012
TODAY
Gothenburg, Nov 2011

25. Business Opportunities in Vision 2050
Building & transforming…
a. Cities
b. Infrastructure
c. Livelihoods & lifestyles
Helping change happen
Improving biocapacity & managing ecosystems
Malardalens, May 2012
Gothenburg, Nov 2011

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. Sustainable Consumption
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
Gothenburg, Nov 2011

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
Gothenburg, Nov 2011

29. The Growing Importance of Energy Efficiency
SOURCE: IEA WEO 2009
Total(2030) = MT
Efficiency= 57%
Influencing consumption
Malardalens, May 2012
Gothenburg, Nov 2011

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
Gothenburg, Nov 2011

31. Sustainable Consumption
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
Gothenburg, Nov 2011

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
Gothenburg, Nov 2011

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
Gothenburg, Nov 2011

34. Forest Solutions Forests role in climate change (REDD +)
Broadening role of the sector:
Bio-energy, biodiversity, water and smart packaging
The fifth element of the pathway is “Forests”.
Vision: Our vision for 2050 is that forests have regained much of their capacity to protect against climate change and biodiversity loss and to meet the resource needs of society. They will cover 30% of world land area and the total
stock of carbon sequestered in them will be more than 10% greater than 2010 levels. Deforestation will have significantly reduced and primary forests will no longer be used for wood, wood products, new farmland or biomass.
Turbulent Teens: In terms of must haves, this will require a deeper understanding of the role of forests in climate protection and natural resource production, and also a combined institutional and market support for improved forest protection and management. Yields of planted forests will need to be increased through best practices such as enhancement of vegetation and fertilization and better site selection and species match.
Transformation Time: The transformation time will deforestation close to zero. Carbon prices and markets for ecosystem services will support alternatives to extensive primary forest clearing and protect habitat and biodiversity. Wood will be taking a new role because of its ability to store carbon long-term.
Figure: The figure shows a growth in roundwood consumption by 50% by 2030 to meet an increased demand for building materials and other wood products driving greater production.
* REDD+: Reducing Emission from Deforestation and forest Degradation in developing countries
Malardalens, May 2012
Gothenburg, Nov 2011

35. Sustainable Consumption
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
Gothenburg, Nov 2011

36. Sustainable Consumption
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
Gothenburg, Nov 2011

37. A World with limits in transition to sustainability
Implementation
Governance
Environment
Economy
Society
Malardalens, May 2012
Gothenburg, Nov 2011

38. The Rio Decades: 1992 - 2012 Changing Roles Rio 1992: Rio + 5, 1997:
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
Gothenburg, Nov 2011

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
Gothenburg, Nov 2011

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

41. Gothenburg, Nov 2011