business sustainability

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THE WORLD IN 2030?

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•Asia-Pacific population tops 5 billion (global 7.5 billion-plus)

•Two-thirds of global population living with “water stress”

•Global calorie demand doubles, but little scope for more cropland

•Increasingly severe climate change impacts being felt, however …

•Energy consumption up by 60 percent-plus on 2000 levels

The global sustainability equation

And the global business operating environment is increasingly complex

© Ecos Corporation 2003

0

5

10

15

20

25

30

1960 1970 1980 1990 1995 2000

Intern'l NGOs('000)

Source: The Economist. December 15. 1999.

26

32

36

34

38

40

40

47

47

45

49

48

52

69

59

62

55

57

57

57

50

Armed Forces

NGO's

Education System

UN UN

Religious Institutions

Police

Health System

Government

Press/Media

Trade Unions/Labour

Legal Systems

Global Companies

Large National Companies

Parliament/Congress

49

47

47

39

42

51 38

+43

+27

+26

+21

+19

+17

+17

+3

+2

+2

-2

-9

-10

-13

Little/no trust

A lot/some trust

100 0 100 Net Ratings *

*% trust minus % distrust = net rating

You run a big business … so why would we trust you to save us?

Source: World Economic Forum research Jan 2003

CHANGED OPERATING ENVIRONMENT FOR BUSINESS

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•Critical environmental and social issues are increasing in both severity and capacity to influence the global economy

•People, including customers, are concerned and expect companies to do better on key environmental and social issues

•Employees are increasingly concerned about the values of the companies they work for, and the social value of their work

•These shifts are creating competitive pressures in most industries to become more responsive to these issues and to improve performance in environmental and social areas.

But Sustainability can be confusing

© Ecos Corporation 2003

© Ecos Corporation 2003

PURSUING SUSTAINABLE GROWTH

Copyright Ecos Corporation © 2003

Social Purpose

+

Societal Value

+

Shareholder Value

+

Community Licence to Operate

=

Sustainable Growth

Economic losses doubling every 10 years

Costs of Global Disastersare Increasing

Source: Insurance Australia Group

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