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GLOBAL ENVIRONMENTAL TRENDSENVIRONMENTAL TRENDSIMPACTING BUSINESS

NAEM 2012 Samantha Putt del PinoCorporate Sustainability

Management ConferenceMarch 7-8 Atlanta, GA

Samantha Putt del PinoCo-director, Business Engagement

in Climate & Technology, WRI www.wri.org/nextpractice

World Resources Institute

Move human society to live in ways that protect Earth's y penvironment and its capacity to provide for the needs and aspirations of current and futureaspirations of current and future generations.

WRI’s approach to working with business

WRI’s engagement

with business

Private climate finance

Risk Innovation

Private climate finance

Projects shown are illustrative of WRI’s work with business

Environmental Trends Impacting Business

1. WRI overview

2. Global environmental trends

3. Capitalizing on trends

4 Making sense of trends4. Making sense of trends

5. Business response to trends p

A dizzying array of trends

Water scarcity: 1975

Extreme Scarcity<500

Scarcity500-1,000

Stress1,000-1,700

Adequate1,700-4,000

Abundant4,000-10,000

Surplus>10,000

Ocean/Inland Water

No Datam3/person/year

Data and maps by



Scarcity500-1,000

Stress1,000-1,700

Adequate1,700-4,000


Surplus>10,000

Ocean/Inland Water


Data and maps by

Water scarcity at the river basin level, 2000


Scarcity500-1,000

Stress1,000-1,700

Adequate1,700-4,000


Surplus>10,000

Ocean/Inland Water


Data and maps by

Who will do what differently?

Companies Investors Governments

• StrategizeDistribution of plants,

• Differentiatebetween companies

• Planhydro-sensible land useDistribution of plants,

suppliers & product markets

• Target investments Efficiency efforts,

between companies based on potential exposure to water risk & opportunity

hydro-sensible land use policies

• Target infrastructure investment & water policies

engagement

A growing world population…

Source: Graph by WRI, data from United Nations, 2011 and McKinsey & Company, 2011

New pressures on land

Higher prices create winners and losers

Washington Post, April 27, 2008

Volatile food prices driving unrest


1. WRI overview




5. Business response to trendsp

Scenario of confluence of trends

Water Scarcity Demography Crop Decline Hunger Coastal Risks Recent Conflicts

Many companies not acting on global trends

77

65

percent of executives who expect trend will impact profits

percent of executives who say they have taken steps to address trend

65 6357 56

53

4441

36

44

31 29

2121

Faster pace of technology innovation

Growth in emerging economies; changing

More tech to empower communities, consumers

Increasing natural resource constraints

Aging population in developed economies

More consumer demand for corporate contributions to

consumer tastes

public good

Source: McKinsey “How companies act on global trends” 2008

Many companies not acting on sustainability, climate change risk and opportunity

percent of executives who say they have taken action

climate change risk and opportunity

63

51

4338

31

22

Reducing energy use i

Managing corporate

t ti

Reducing emissions f

Managing portfolio to

t

Committing R&D

Mitigating operational i k l ti

Source: McKinsey “Business of Sustainability: Survey Results” 2011

in operations

reputation from operations

capture trends in sustainability

resources to sustainable products

risks relating to climate change

Are you positioned for the future?transformative transformative transformative Sustainable future

next practicesnext practicesnext practices

market leadershipmarket leadershipmarket leadership

next practicesnext practicesnext practices

business innovations

incremental product

improvements

long-term successshort-term planning

no action

existingbusiness models

business-as-usual

http://www.wri.org/publication/sharpening-the-cutting-edge


1. WRI overview





What is the path for your company?

A toolkit for sustainability SWOT teamsUNMET NEEDS COLLABORATIVE EDGEUNMET NEEDS COLLABORATIVE EDGE

OPPORTUNITIESas big trends create new needs, possibilities

STRENGTHSto apply, build or find among partners

THREATS CONSEQUENCES WEAKNESSES RISKSTHREATS, CONSEQUENCESas big trends impact customers, communities

WEAKNESSES, RISKSto address together with partners

making a case to innovate beyond best practices


1. WRI overview





Moving from defense to “long-term offense”?

HBR shows sustainable companies have produced higher long term returnsproduced higher long-term returns

Source: Harvard Business Review, 2011

Sustainability driving growth

By the end of 2012, sustainable products will equal more than 10% of total sales,

i t l € 38 billiapproximately € 38 billion.

A hi d l f 30% f t t l fAchieved goal of 30% of total revenues from green products. By the end of 2015, R&D in green product innovation will reach €2 billion.

By the end of 2011, sales of independently verified green products increased to €1 1 billion 10 5% ofgreen products increased to €1.1 billion, 10.5% of total retail sales.

Mergers and Acquisitions

http://www.cartoonstock.com/directory/m/mergers_and_acquisitions.asp

New partnerships

http://gigaom.com/cleantech/the-details-behind-ges-wattstation-electric-car-charger/http://www.autoblog.com/2011/12/01/bmw-and-toyota-agree-to-collaborate-on-future-green-technology/

The final word

How will the markets you serve be transformed?

Where are the opportunities to provide new products and services and adapt your business model?

How will you need to re-think your investments to align your company with a sustainable future?align your company with a sustainable future?

What kinds of collaboration are needed to reduce What kinds of collaboration are needed to reduce risks and pursue opportunities?

Contact

Samantha Putt del PinoWorld Resources Institute

202 729 [email protected]

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