sustainability: the bigger picturemyra/leadership_sustainability/day1.pdfthe big picture • good...

Sustainability: the bigger picture What is it and why do we care?

This session 1.  NGO’s

•  Forum •  Roles

4.  How are companies & consumers responding?

•  Business benefits •  Consumer awareness •  Economic downturn

2.  The Big Picture •  Good news •  Bad news •  Climate change

3.  Sustainability •  Definitions •  The 3 pillars

1. Forum for the Future & other NGOs

NGOs

The role of NGOs

•  NGOs have higher credibility with consumers •  Companies gain credibility and expertise •  NGOs working in partnership with companies •  Multi-level engagement - from Board to

implementation •  Multi-stakeholder engagement – government,

consumer, industry

The role of NGOs government

industry

consumer

The role of NGOs government

industry

consumer NGO’s

2. The Big Picture

WORLD GROSS PRODUCT 1950 - 2000

Source Worldwatch, based on A. Maddison

Huge benefits for hundreds of millions of people!!

So what’s wrong with another fifty years of the same?

Predictions of crude oil price ($ per Barrel) (2000-2008)

1950 →

Global Population

2000 →

2050 →

3 billion

6 billion

9 billion

The Hedonic Treadmill _ People who’ve got it, want more of it _ People who’ve got lots of it, still want more of it _ People who haven’t yet got it, really, really want it _ People who know they’ll never get it, still dream of it…

“One fifth of humanity live in countries where

many people think nothing of

spending $2 a day on a cappuccino. Another fifth of

humanity survive on less than $1 a

day, and live in countries where children die for

want of a simple anti-mosquito bed

net.”

Inequality

Deforestation Desertification

Over fishing Build-up of toxics

Mining for raw materials

The Decline of Nature

Water stress and shortages Loss of biodiversity

Air pollution Water pollution

…

The Decline of Nature

The Greenland Ice Sheet

_ Summer melt area increased on average by 25% from 1979 – 2005

_ Ice loss by melting and sliding doubled in 10yrs

_ Currently ~0.5mm/y sea level rise _ Should the whole ice sheet melt it will

raise sea levels by 6-7m

“If everyone on the Planet were to

consume resources and generate carbon dioxide at the same

rate as we do in Europe, we would need

three planets to support us. We only

have one.” WWF

One Planet Living

Our sustainability situation:

And what are we all doing globally about climate change?

what is climate change?

what is climate change?

...global climate change is defined as changes in temperature, precipitation, wind, humidity, and frequency of extreme climatic events caused by the accumulation of greenhouse gases in the atmosphere due to anthropogenic activities. Adapted from the Intergovernmental Panel on Climate Change (2001) Third Assessment Report of Working Group, IPCC

Carbon dioxide concentration

Atmospheric concentration of CO2 over the last 1000 years and since 1958 at Mauna Loa, Hawaii.

What makes Climate Change the biggest challenge of our generation?

_ Truly global _ Every single human being involved

(both contributing and being impacted) _ Risk of non-linear, runaway change _ Fear of uncertainty _ Fear of irreversibility

INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE: CONCLUSIONS

? % → Caused by man-made factors

? ºC → To avoid “dangerous” climate change

? ppm → Stabilisation level for CO2

? % → Required reduction in CO2 emissions by 2050

? → Years left to avoid “chaos point”

? % → Required reduction in CO2 emissions by 2020

INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE: CONCLUSIONS

90% → Caused by man-made factors

2ºC → To avoid “dangerous” climate change

450ppm → Stabilisation level for CO2

80% → Required reduction in CO2 emissions by 2050

10-15 → Years left to avoid “chaos point”

34-42 % → Required reduction in CO2 emissions by 2020

90%

Cumulative emissions matter most!

Cumulative emissions matter most!

_ To reach the 80% goal, the UK’s budget is ~ 4.8 billion tonnes of carbon between 2000-2050

_ But, between 2000-2006 we have already emitted ~ 1.2 billion tonnes of carbon

_ we’ve therefore used ¼ of our permitted emissions for 50 years in around 6 years…

Cumulative emissions matter most!

The Tyndall Centre, Reframing the Climate Debate, October 2008

International action on climate change Kyoto Protocol – 1997 - 5% reduction by 2012

Washington Declaration- February 2007

_ G8+5 agreed to voluntary global cap-and-trade

Pre-Copenhagen – March, September 2009,

_ Climate scientists meeting on accelerating pace of climate change

L’Aquila G8 – July 2009

_ All G8 countries agree on 80% cut by 2050 and +2ºC max temperature

Copenhagen (COP15) - December 2009

_ Post Kyoto treaty

_ Global agreement on emissions reduction

_ Deep cuts and global carbon market expected

UN Climate Conference - Copenhagen Dec-09

•  To recognise the goal to limit global greenhouse gas emissions to ensure that the increase in global temperatures is below 2 degrees Celsius; •  Deep cuts in emissions in accordance with the IPCC Fourth Assessment - which would indicate a peak in emissions by 2015 and a reduction by 2050 of 50-85% vs. 1990 levels; •  A funding commitment for developing nations of up $30bn to 2012 and $100bn annually by 2020 to be overseen by a Global Climate Fund; •  A failure to agree reduction targets or plans by either the developed or developing nations.

Sir Nicholas Stern, Stern Review | April 2008

“Emissions are growing much faster than we'd thought, the absorptive capacity of the planet is less than we'd thought, the risks of greenhouse gases are potentially bigger than more cautious estimates and the speed of climate change seems to be faster.”

Sir Nicholas Stern, Stern Review | April 2008

“The world does not need to choose between averting climate change and promoting growth and development.”

Sir Nicholas Stern, Stern Review | April 2008

“Climate change is the greatest market failure the world has ever seen”.

President Barack Obama | Inaugural Speech 2009

“And to those nations like ours that enjoy relative plenty, we say we can no longer afford indifference to the suffering outside our borders, nor can we consume the world's resources without regard to effect. For the world has changed, and we must change with it.”

3. Sustainable Development

Sustainability is…

“Meeting human needs without overwhelming nature or society”

Sustainable development is…

The process by which we get there

In theory, sustainability means “The capacity for continuance into the long

term future” • Continuance of life on earth • Continuance of the human species • Continuance of Earth’s life-support

systems

Economy

Structured to meet objectives and values set

by society

Society

Decides objectives for development and

sets ethical and value framework

Environment

Sets limits, the real bottom line

The 3 Pillars

What do the three pillars mean?

Environmental Social Economic

What do you think?

Financial performance Contribution to economic growth Affect on local labour Affect on local companies, entrepreneurs and economic development Contribution to local or regional infrastructure

Human rights Labour practices & work standards Health and safety Community impacts Corruption Lobbying Product/Producer responsibility Privacy

Materials & resources used Energy Water Biodiversity Emissions & waste Climate change

What do the three pillars mean?

Environmental Social Economic

What do people really, really want?

What do people really, really want?

_ Ecological security _ Trustworthy systems of government and

justice _ Satisfying work _ Appropriate technology _ Safe, supportive (convivial) communities _ Shared sense of purpose and values

4. How are companies and consumers responding?

Who do the consumers think is responsible?

The sustainability journey: from philanthropy to sustainable value

Adapted from John Elkington

Core strategy Climate change

BOP Innovation

Sustainable product

1960s 1970s 1980s 1990s 2000

Focus on compliance Focus on standards

Focus on values

Philanthropy Narrow

environmental

Community involvement

Broad environmental

Environmental Social

Human rights Governance

Mainstreaming

2006

Focus on opportunity

Business benefits of SD engagement

Source: PwC analysis, Factiva

Consumers and Sustainability: Sustainability Media Coverage

-

5,000

10,000

15,000

20,000

25,000

1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007

Social

Food

Environment

# m

edia

men

tions

Source: PwC analysis of 2,000 UK consumers, February 2008

Poverty 22% =

Climate Change 32% =

Food & Water Shortages 9% =

16% Terrorism = How worried are you

about climate change?

_ very worried _ worried

_ not worried

Levels of public awareness

80%

9%

Price premium persists Price 48%

Lack of choice & sustainable alternatives Availability 17%

Confused consumers want clearer ‘truthful’ information

Information & Communication 20%

Source: PwC analysis of 2,000 UK consumers, February 2008 Source: PwC analysis of 2,000 UK consumers, February 2008

Barriers to sustainable consumption

©2003 The Natural Step: All rights reserved

Implications across the business _  Sustainability is wide in scope _  Impacts the whole length of the value chain _  Requires a ‘joined up’ approach _  Offers many opportunities to collaborate along

the value chain

In summary: Sustainable Development

A threat to those companies that ignore it…

An opportunity for those that embrace it!

In pairs - discuss the top two things you’ve taken away from this

presentation.

In groups please:

1)  Briefly run through your chosen products and tell your group how they are made, purchased, used and disposed of

2) Where are the areas of greatest impact throughout the product lifecycle?

_ Map impacts out using post-its 3) Present back to the group for ~2min minutes per

group

Market research R&D

Manufacturing Sales & marketing

Investment decisions

Sourcing

market research

R&D investment decisions

sourcing manufacturing marketing & sales

thank you! Fiona Bennie f.bennie@forumforthefuture.org