Global Trends in Responsible Business Conduct Caroline 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

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Rio 2012 Financial crisis Silent Spring published FoE established Limits to Growth published Stockholm Conference Rio World Summit WBCSD established WSSD Johannesburg Corporate scandals & SOX China becomes largest GHG emitter Inconvenient truth Our Common Future Exxon Valdez 3 mile island 1 st 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

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 Source: Earth's natural wealth: an audit, the New Scientist, 2007 Estimated years of supply

Business: increased efficiencies South Africa Energy Efficiency Accord Cheap 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

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 Source: United Nations Population Division, World Population Prospects: The 2006 Revision. World population (in Billions): % 15 % Population in less developed countries Population in more developed countries

Future society: urban 16 70% urban in 2050: 6 billion 2010: 3 billion

Human Development Index (HDI) Future society: key challenges Source: GFN / UNDP Ecological Footprint (Global Hectares per Person)

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 ( ) –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 information wbcsd.org/water