Global Trends in Responsible Business

ConductCaroline 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

1960 1980 20001970 1990 2010

Rio 2012

Financial crisis

Silent Spring

published

FoE established Limits to

Growth published

Stockholm Conference

Rio World SummitWBCSD

established

WSSDJohannesburg

Corporate scandals &

SOX

China becomes largest GHG

emitter

Inconvenient truth

Our Common

Future

Exxon Valdez3 mile

island

1st satellite image of

earth

Oil Crisis

Chernobyl

WTO established

Famine in Africa

Berlin Wall

collapse

Nike child

labour

Battle of Seattle

Stern Review

Kyoto

Bhopal

Prius to market

Montreal Protocol

Key moments in our recent history …

shaped our world today

2929

Business’ role in society

Increased stakeholder interest

The 21st Century NGO SustainAbility

Founding dates of key NGOs

Increased stakeholder activity

Institutional investors: increasingly factoring ‘social’ issues into investment decisions

Increased investor scrutiny

Increased resource constraints

0

20

40

60

80

100

120

140

160

If the world consumes at today's rate

If the world consumes at half USconsumption rates

Source: Earth's natural wealth: an audit, the New Scientist, 2007

Business: increased efficiencies

South Africa Energy Efficiency AccordCheap 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

Increasing numbers of corporate sustainability reports with GRI

Demonstrated transparency public accountability

Business: increased reporting and accountability

Source: Annual Review (2007) United Nations Global Compact

United Nations Global Compact (2000): >4,000 signatories, 100 countries

Business: increased global, voluntary actions

Our future society: a growth story

0

1

2

3

4

5

6

7

8

9

10

1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050

Sou

rce: U

nite

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Divisio

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orld

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World population (in Billions): 1950-2050

85%

15%

Population in less developed countries

Population in more developed countries

Future society: urban

1616

70% urban in 2050: 6 billion 2010: 3 billion

Human Development Index (HDI)

Future society: key challengesS

ource: GF

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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

Green Economy

Global Governance of Sustainable Development

… 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

‘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

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

Opportunities for responsible businesses … role of business

WBCSD Vision 2050

Platform for dialogue

about the business role in a

resource & carbon

constrained world

For more informationwbcsd.org/watertwigg@wbcsd.org 

www.wbcsd.org