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 3 Key moments in our recent history … 1st satellite Silent image of Spring earth published Stockholm Conference Chernobyl Famine in Africa 1960 1970 1980 China WSSD WTO becomes Johannesburg established Corporate largest scandals & GHG Rio World Prius to emitter SOX Summit market WBCSD established 1990 2000 Montreal Protocol Nike child Our Common labour Future Berlin Bhopal Wall collapse Oil Crisis FoE established Limits to Growth published 3 mile island Exxon Valdez 2010 Battle of Seattle Financial Inconvenient crisis truth Kyoto Stern Review Rio 2012 shaped our world today Business’ role in society 29 29 Increased stakeholder interest Increased stakeholder activity Founding dates of key NGOs The 21st Century NGO SustainAbility Increased investor scrutiny Institutional investors: increasingly factoring ‘social’ issues into investment decisions Increased resource constraints If the world consumes at today's rate Estimated years of supply 160 140 If the world consumes at half US consumption rates 120 100 80 60 40 20 n Ti An th im Ch on ro y m iu m Co pp er Le ad Ni ck Ur el an iu m Zi nc Go ld Si Te lve nt r al um 0 Source: Earth's natural wealth: an audit, the New Scientist, 2007 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 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 Business: increased measurement and monitoring www.ghgprotocol.org Business: increased reporting and accountability Increasing numbers of corporate sustainability reports with GRI Demonstrated transparency public accountability Business: increased global, voluntary actions United Nations Global Compact (2000): >4,000 signatories, 100 countries Source: Annual Review (2007) United Nations Global Compact Our future society: a growth story World population (in Billions): 1950-2050 10 9 8 6 5 4 3 Population in less developed countries 85% Population in more developed countries 15% 2 1 0 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050 Source: United Nations Population Division, World Population Prospects: The 2006 Revision. 7 Future society: urban 70% urban in 2050: 6 billion 2010: 3 billion 16 16 Source: GFN / UNDP Ecological Footprint (Global Hectares per Person) Future society: key challenges Human Development Index (HDI) 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 Global Green Economy Governance of Sustainable Development ‘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 ‘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 Opportunities for responsible businesses … role of business 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 WBCSD Vision 2050 Platform for dialogue about the business role in a resource & carbon constrained world www.wbcsd.org For more information wbcsd.org/water twigg@wbcsd.org