environmental performance a crucial option for the competitiveness of the economy - wayne visser

1

2

DR. PROF. WAYNE VISSER

TAGLIO DI PO, ROVIGO, ITALY

SEPTEMBER 30TH, 2016

ENVIRONMENTAL PERFORMANCE AS A CRUCIAL OPTION

FOR ECONOMIC COMPETITIVENESS

3 THE GLOBAL SUSTAINABLE DEVELOPMENT GAP OUR BIGGEST CHALLENGE IS ACHIEVING HIGH HUMAN DEVELOPMENT WITHIN THE EARTH’S CAPACITY

Source: UNDP, Global Footprint Network

4 THE SIXTH MASS EXTINCTION OUR HUMAN FOOTPRINT IS A THREAT TO OUR ENVIRONMENT, SOCIETY AND ECONOMY

Source: WWF, Trucost

5 UN SUSTAINABLE DEVELOPMENT GOALS A MASSIVE STIMULUS FOR INVESTMENT IN THE SUSTAINABLE, BIO-ECONOMY TO 2030

The annual SDG financing gap in

developing countries is estimated to be $2.5

trillion

This is only 3% of global gross domestic

product or 1.1% of the value of global

capital markets

We Mean Business harnesses the power of

over 550 companies and investors

They represents over $7.8 trillion in total

revenue and over $20.7 trillion in assets

under management

Italy has pledged USD 334 million (EUR

250 million) to the Green Climate Fund

Source: UN, UNCTAD, OECD

6 RESPONSIBLE COMPETITIVENESS

Three Elements & 21 Measures of the Responsible Competitiveness Index:

THE LINK BETWEEN SOCIAL & ENVIRONMENTAL RESPONSIBILITY AND ECONOMIC COMPETITIVENESS

Policy Drivers: 7 measures of the strength of

public policies and ‘soft power’ that encourage

responsible business practices;

Business Action: 7 firm-level measures of the

application of governance, social and

environmental good practice, codes and

management systems; and

Social Enablers: 7 measures of the broader social

and political environment that enable businesses,

government and civil society organisations to build

effective collaborations to reshape markets.

Source: AccountAbility, World Economic Forum

7 RESPONSIBLE INNOVATION THE LINK BETWEEN SOCIAL & ENVIRONMENTAL RESPONSIBILITY AND ECONOMIC INNOVATION

Source: Philips, AccountAbility, European Commission

RESPONSIBLE COMPETITIVENESS INDEX VS

EUROPEAN INNOVATION SCOREBOARD * As companies continue to create new products and services in the future, how important are innovations in protecting the environment to you?

** How satisfied are you with the products now available to you in protecting the environment?

PHILIPS MEANINGFUL INNOVATION INDEX

8 GROWTH OF CLEAN TECHNOLOGY MARKETS THE OPPORTUNITY TO INVEST IN THE BIGGEST MARKETS OF THE FUTURE

Source: World Bank

GROWTH IN TOTAL REGIONAL CLEAN TECHNOLOGY SALES

GROWTH IN TOTAL GLOBAL CLEAN TECHNOLOGY SALES

9 ECO-INNOVATION AS AN EU COMPETITIVENESS POLICY THE SUSTAINABILITY ELEMENTS OF THE LISBON 2020 EU ECONOMIC COMPETITIVENESS STRATEGY

Source: Adapted from European Commission

ECO-INNOVATION IS:

The development and

application of a new

business strategy

That entails a combination

of a significantly improved

or new product

(good/service), production

process, organisation and

business model

That will lead to improved

sustainability performance

10 THE BUSINESS CASE FOR ECO-INNOVATION THE LINK BETWEEN SOCIAL & ENVIRONMENTAL RESPONSIBILITY AND ECONOMIC INNOVATION

Source: European Commission, UN Environment Programme

BENEFITS FROM 100 EU SPONSORED

ECO-INNOVATION PROJECTS:

8 full time jobs per project

609,000 tonnes less waste (=city 125,000)

170 million m3 water saved

4 million tonnes material saved (200 Eiffel

Towers)

11.6 m tonnes CO2 saved (= 1.7 m homes)

€1.6 bn env. & econ. benefits

€20 revenue per €1 invested

11 FINANCIAL RETURNS FROM CARBON REDUCTION THE LINK BETWEEN CARBON MANAGEMENT STRATEGIES AND FINANCIAL RETURNS

Source: World Bank

CLIMATE INVESTMENT RETURNS EFFICIENCY IMPROVEMENT RACE

12 CHEMICAL SECTOR OPPORTUNITIES THE PRIORITIES OF STAKEHOLDERS AND POTENTIAL IMPACT REPRESENT A MARKET OPPORTUNITY

Source: BASF

HIGH PRIORITIES: Energy

consumption/efficienc

y

Resource scarcity

Sustainable production

Water pollution

Waste

Product stewardship

Life-cycle thinking in

value chain

Pollution opportunities

Agricultural practices

13 BARRIERS AND ENABLERS FOR THE BIO-ECONOMY OUR BIGGEST CHALLENGE IS TAKING OUR INNOVATION AND SCALING IT IN THE GLOBAL MARKETPLACE

Source: International Energy Agency

BARRIERS Uncertain demand /

payback (ROI)

Access to subsidies /

finance

Lack of investor

experience

Low priority on energy

Lack of authorities co-

ordination

Perception of high costs

Technology lock-in

ENABLERS Accurate energy and

material prices

Supportive government

policies (e.g. subsidies)

Skills development for

technology transfer

Consumer awareness

and choice

Investor & financial

market education

Technology innovation

14 CREATING A SUSTAINABLE FUTURE IS IN OUR HANDS OUR CHOICE IS BETWEEN FLOURISHING ABUNDANT LIFE AND THE END TO LIFE AS WE KNOW IT

Source: International Energy Agency

"Human ingenuity is the answer. We created the

science and engineering technological revolution

on which all our wellbeing is based. That same keen

intelligence can point to the solutions to the

hangover challenges and this requires nothing less

than another renaissance.”

- David King, Director, Smith School of Enterprise and the

Environment (SSEE), Oxford University, UK, and member

of the World Economic Forum’s Global Agenda Council on

Emerging Technologies 2012-2013

-

15 THANK YOU! AND GOOD LUCK

www.waynevisser.com www.sustainablefrontiers.net wayne@waynevisser.com

Wayne Visser

@WayneVisser

WayneVisser csrinternational

Wayne Visser CSR International