annual report 20122013 - world economic forum2013/07/01 · partnering for cyber resilience cyber...

Annual Report 2012–2013

World Economic Forum USA

www.weforum.org

Contents

3 Management Committee’s Statement

8 Governance and Leadership

10 Financial Results

3World Economic Forum USA Annual Report 2012-2013

The World Economic Forum USA is an independent non-profit organization committed to improving the state of the world by engaging industry leaders in partnerships to shape global, regional and industry agendas. We are the North American affiliate of the World Economic Forum, a non-profit foundation headquartered in Geneva, Switzerland (www.weforum.org).

Business Engagement

The World Economic Forum USA acts as a centre for global industries for our Industry Partners, select Member companies that strongly support the Forum’s mission to drive relevant and sustainable change for business and society. Together, these Partners identify, discuss and address their sector’s critical issues through industry-specific initiatives, projects and task forces, as well as actively contribute to the World Economic Forum Annual Meeting in Davos-Klosters, Switzerland, and regional events.

The Industry Partnership Programme, under which we serve companies from both the New York and Geneva offices, has reached 497 partnerships at the end of June 2013, an increase of 7.3% year on year. The New York office is directly responsible for 296 partnerships across 12 industries. The 433 companies that have engaged in these 497 partnerships participated in over 38 initiatives and projects, which address relevant issues on an industry, cross-industry and multistakeholder basis.

We take great pride knowing that each Partner company is a recognized world leader in its industry sector. Given the current global economic situation, an increase in the number of relationships is a testament to the value proposition that the World Economic Forum USA and its Industry Partnership Programme offer.

Collaboration

In addition to meeting the membership needs of our Partner companies, the World Economic Forum USA serves as a hub for shaping the intellectual agenda that influences all of our work. A number of major task forces and initiatives were led by the Forum USA in the 2012-2013 fiscal year. While covering a wide range of topics and thematic areas, most follow a similar model:

− Topics and issues are identified by Industry Partner companies belonging to a specific industry sector or multiple sectors, with each company assigning a senior executive to regularly contribute input

− The Forum assigns resources, including a dedicated project manager, to lead the research and author any reports and recommendations

− Knowledge partners (often a prominent strategy consulting firm with special expertise in the subject matter and/or leading academics from globally recognized universities) join the project to provide intellectual guidance and contribute further resources

− Advisory and steering boards comprised of public and private stakeholders are assembled to guide the research, challenge findings and provide intellectual stewardship

− A series of face-to-face and virtual meetings are held over a 12-month period under the direction of the Forum in locations around the world

− The cycle of work is completed and presented to chief executives of Industry Partners at annual Governors Meetings, which take place during the World Economic Forum Annual Meeting in Davos-Klosters

Management Committee’s Statement

4 World Economic Forum USA Annual Report 2012-2013

Projects and Initiatives

Projects and initiatives that were led by the Forum USA during the 2012-2013 fiscal year include:

− Alternative Investments 2020 − Developing Future Social Protection

Systems − Engaging Tomorrow’s Consumer − Enabling Trade: Valuing Growth

Opportunities − Financial Inclusion − Long-Term Investing and Governance − Mainstreaming Impact Investing − Manufacturing for Growth − New Models for Entrepreneurship − New Vision for Agriculture − Redefining the Emerging Market

Opportunity − Rethinking Personal Data: Towards a

Common Market − Risk and Responsibility in a

Hyperconnected World − Partnering for Cyber Resilience − Shaping Norms and Values in Digital

Media − Supply Chain and Transportation Risk − Sustainable Transportation Ecosystem − The Future of Urban Development − The Role of Finance in Society

Partnering for Cyber Resilience

Cyber resilience is a critical economic issue for countries and companies. As increasing areas of our economies and daily lives become dependent on and transformed by digital connectivity, a basic level of literacy around cyber resilience issues is a core leadership skill, regardless of industry or policy domain.

In response to this, the World Economic Forum’s Partnering for Cyber Resilience initiative asks chief executive officers, government officials and other leaders to sign a set of Principles, demonstrating their commitment to fostering a trusted, secure and resilient shared digital environment. Members of the initiative are also committed to driving leadership awareness and develop shared understanding of the issues and opportunities for collaborative action across different industries and regions. Over 100 companies and governments have signed the Principles at the chief executive officer and ministerial level, and the network has grown to include over 500 executives, experts, policy-makers and members of civil society.


Publications

Publications that were led by the Forum USA during the 2012-2013 fiscal year include:

− Achieving the New Vision for Agriculture: New Models for Action

− Building Resilience in Supply Chains − Closing the Gaps: Financial Services

Needs of Next-Generation Companies − Connected World: Transforming Travel,

Transportation and Supply Chain − Developing Future Social Protection

Systems Retirement Income − Engaging Tomorrow’s Consumer − Manufacturing for Growth – Strategies

for Driving Growth and Employment − Measurement, Governance and Long-

term Investing − Strategic Infrastructure: Steps to

Prepare and Accelerate Public-Private Partnerships

− The Global Enabling Trade Report 2012 − The Financial Development Report 2012 − Travel & Tourism Competitiveness

Report 2013 − Unlocking the Value of Personal Data:

From Collection to Usage

More information on these reports is available on the Forum’s website at www.weforum.org/reports.

Financial Development Report

The Financial Development Report 2012 ranks 62 of the world’s leading financial systems and capital markets, analysing the drivers of financial system development in advanced and emerging economies to serve as a tool for countries to benchmark themselves and establish priorities for reform. The rankings are based on over 120 variables spanning institutional and business environments, financial stability, and size and depth of capital markets, among other factors.

Based on the report’s Financial Development Index, Hong Kong SAR topped the list for a second consecutive year as a result of benefits from a large and efficient banking system, well-developed infrastructure and robust equity markets. The United States and the United Kingdom came in 2nd and 3rd, respectively; both countries have highly developed financial markets, particularly their foreign exchange and derivatives markets, but they struggle with relatively inefficient banking systems.

The report does not attempt to inform current or short-term events, but aims to serve decision-makers in developing a balanced perspective as to which aspects of their country’s financial system are most important in the long term.

Does the Manufacturing Sector Matter?

The manufacturing sector has a fundamental role to play in global economic growth and job creation for emerging economies and developed markets. According to the Forum’s report, Manufacturing for Growth – Strategies for Driving Growth and Employment, key drivers behind a successful advanced manufacturing strategy include a competitive tax system, free and fair trade, education and talent development, energy efficiency, and technology and innovation.

Based on discussions with more than 70 chief executives and other senior executives, as well as workshops with industry, academic and policy leaders held over the course of 2012, the report offers policy recommendations for six countries: Germany, Japan, the United States, Brazil, China and India.

While the recommendations vary based on industry sector and the unique circumstances of each country, several common and recurring themes have emerged regarding what constitutes effective public policy to drive growth from manufacturing industries: competitiveness, fairness, stakeholder collaboration, institutional legitimacy, credibility and market confidence, financial prudence, and consistency, stability and certainty.


Meetings and Events

The World Economic Forum USA specializes in supporting our global membership and participants at our many regional events throughout the year, and particularly at our Annual Meeting in Davos-Klosters, Switzerland. In addition, the Forum USA organizes numerous high-level meetings in New York each year to support the work of our constituents. This includes the annual Industry Partnership Strategy Meeting in the fall, which brings together select Member companies that are actively involved in the Forum’s mission at the industry level.

Other events that took place in the New York office in 2012-2013 include:

July 2012 − Reception for the Forum’s Global Leadership Fellows, following a series of workshops,

seminars and exercises on leadership at Columbia University and the Wharton School of the University of Pennsylvania

September 2012 − Roundtable discussion with Young Global Leaders and Schwab Foundation Social

Entrepreneurs, led by Klaus Schwab, Founder and Executive Chairman of the World Economic Forum

− Mining & Metals – Responsible Mineral Development Meeting − Reception for Members of the Forum’s Global Agenda Councils − Reception for the World Economic Forum Global Shapers Community − Visit of Ricardo Martinelli, President of Panama

October 2012 − Institutional Investors roundtable − Launch of the Global Gender Gap Report 2012 − Launch of the Financial Development Report 2012 − New Vision for Agriculture workshop

November 2012 − Impact Investing workshop − ICT education brainstorming workshop

January 2013 − Pre-World Economic Forum Annual Meeting press briefing

March 2013 − Project Advisory Group (PAG) meeting, convening over 100 Strategic Partners

April 2013 − Launch of the Global Information Technology Report 2013 − Young Global Leaders workshop on the Future of Capitalism

May 2013 − Launch of the Schwab Foundation’s Policy Guide to Scaling Social Innovation

June 2013 − Global Agenda Council Summit Design workshop − Forum USA Knowledge Sharing Committee’s entrepreneurship workshop


Governance and Leadership

World Economic Forum USA

The World Economic Forum USA was incorporated in December 2005 as a non-profit business league. It is impartial and tied to no political, partisan or national interests. As a legally independent affiliate of the World Economic Forum, its relationship is governed by an affiliation agreement, which is a contractual agreement under which the Forum USA coordinates with the World Economic Forum when conducting its activities. The World Economic Forum USA is a non-profit organization under section 501(c) 6 of the Internal Revenue Service Code of the United States.

The range and quality of our work is a testament to the Forum USA staff members who come from around the world, drawing from extensive experience in the private and public sectors. At the close of the fiscal year, the New York-based team consisted of 99 staff. This includes 11 secondees based in our New York office from Partner companies, which consist of management consulting firms, financial services firms and others. The Forum USA gratefully acknowledges those Partner companies that have lent their personnel to support particular projects and initiatives, providing the opportunity for even closer collaboration and engagement.

Forum USA Management Committee

Jean-Pierre Rosso, Chairman, World Economic Forum USA

Sarita Nayyar, Managing Director

Giancarlo Bruno, Senior Director, Head of Financial Services Industries

Michael Drexler, Senior Director, Head of Investors Industries

Alan Marcus, Senior Director, Head of IT and Telecommunications Industries

John Moavenzadeh, Senior Director, Head of Mobility Industries


Members of the Board

ChairmanJean-Pierre RossoChairman, World Economic Forum USA

DirectorsAlfred R. BerkeleyVice-Chairman, Gentag, USA

Samuel A. Di Piazza JrVice-Chairman, Institutional Clients Groups, Citi, USA

William W. GeorgeProfessor of Management Practice, Harvard Business School, USA

Robert GreenhillManaging Director and Chief Business Officer, World Economic Forum, Switzerland

Shirley Ann JacksonPresident, Rensselaer Polytechnic Institute (RPI), USA

Klaus KleinfeldChairman and Chief Executive Officer, Alcoa, USA

Joseph P. SchoendorfPartner, Accel Partners, USA

Board SecretarySarita NayyarManaging Director, World Economic Forum USA

Senior Directors

Marisol Argueta, Senior Director, Head of Latin America

Giancarlo Bruno, Senior Director, Head of Financial Services Industries

Lisa Dreier*, Senior Director, Consumer Industries, Head of Food Security and Development Initiatives

Michael Drexler, Senior Director, Head of Investors Industries

Alan Marcus, Senior Director, Head of Information Technology and Telecommunications Industries

John Moavenzadeh, Senior Director, Head of Mobility Industries

Paul Smyke, Senior Director, Head of North America

* nominated as of 1 July 2013

Directors

Matthew Blake*, Director, Financial Services Industries, Head of Banking and Capital Markets Industry

Maha Eltobgy*, Director, Investors Industries, Head of Private Investors

Abel Lee*, Director, Financial Services Industries, Head of Insurance and Asset Management Industries

Annie Luo*, Director, Media Entertainment and Information Industries

Richard McGlone*, Director, Deputy Head of Partnership

Viraj Mehta, Director, Head of India and South Asia

Silvia Von Gunten, Director, Technology Pioneers, Head of Technology Pioneers Program and North America Membership

Tiffany West, Director, Consumer Industries, Head of Agriculture, Food and Beverage Industry

* nominated as of 1 July 2013


Financial Results

The World Economic Forum USA’s financial results for the 2012-2013 fiscal year exceeded the budget, resulting in a net contribution of US$ 6.17 million from US$ 48.32 million in revenues, giving the organization an even greater opportunity to invest in work providing impact for our Partners and Members and in support of our mission.

We are pleased to note that accumulated reserves have increased to US$ 25.8 million, and therefore we have much greater flexibility to invest in projects and efforts intended to benefit our core constituents and contribute to public discourse.

The Forum USA’s primary source of financial support remains its membership and partnership dues paid by the Forum’s Industry Partners and Industry Associates, which rose from US$ 39.3 million in 2011-2012 to US$ 41.7 million in 2012-2013. This growth was fuelled by the continued increase in Partners.

All Forum USA financials are reported in US dollars consistent with US GAAP and audited annually by PricewaterhouseCoopers. The figures below are derived from the Forum USA’s audited financial reports.

Year 2012-2013 2011-2012 2010-2011 2009-2010 2008-2009

Total income 48,324,380 46,044,199 40,461,716 34,534,470 31,789,455

out of which

Partnership revenue 41,682,536 39,308,034 33,899,613 29,540,892 27,797,748

Other income 6,641,844 6,736,165 6,562,103 4,993,578 3,991,707

Total expenditure 42,157,955 39,603,672 33,798,757 28,951,742 28,290,486

out of which

Personnel costs 15,216,355 14,301,118 11,846,017 9,694,030 8,562,176

Office costs 3,884,523 3,866,488 3,222,714 3,342,583 2,471,454

Activity-related costs 23,057,077* 21,436,066 18,730,026 15,915,129 17,256,856

Net contribution 6,166,425 6,440,527 6,662,959 5,582,728 3,498,969

Accumulated reserves 25,830,450 19,664,025 13,223,498 6,560,539 977,812

All key figures are in US$

*Includes a US$ 1.9 million one-time grant as contribution to the Forum’s investment in a new ICT platform.

The World Economic Forum is an independent international organization committed to improving the state of the world by engaging business, political, academic and other leaders of society to shape global, regional and industry agendas.

Incorporated as a not-for-profit foundation in 1971 and headquartered in Geneva, Switzerland, the Forum is tied to no political, partisan or national interests.

World Economic Forum USA3 East 54th Street, 18th Floor,New York, NY 10022, USA

Tel.: +1 212 703 2300Fax: +1 212 703 2399

annual report 20122013 - world economic forum2013/07/01 · partnering for cyber resilience cyber...

Documents