New Commitments Yield New Markets
description
Transcript of New Commitments Yield New Markets
![Page 1: New Commitments Yield New Markets](https://reader035.fdocuments.us/reader035/viewer/2022070410/5681462a550346895db337e5/html5/thumbnails/1.jpg)
New Commitments Yield New Markets
Sustainable Enterprise Summit
March 17, 2004
![Page 2: New Commitments Yield New Markets](https://reader035.fdocuments.us/reader035/viewer/2022070410/5681462a550346895db337e5/html5/thumbnails/2.jpg)
A sense of where we are
In the past 20 years:
Economic output up 75%Energy use up 40%Meat consumption up 70%Auto production up 45%Paper use up 90%Advertising up 100%
World population up 35%
Meanwhile:
75% of marine fisheries are fished to capacity or overfished; 5% in 1960
Water supplies per person dropped by a third between 1970 and 1990
A Nevada-sized area of forest is lost every year
Roughly half of the people in the world live on less than $2 a day
![Page 3: New Commitments Yield New Markets](https://reader035.fdocuments.us/reader035/viewer/2022070410/5681462a550346895db337e5/html5/thumbnails/3.jpg)
Premise of this Panel
• Unprecedented growth of demand for natural resources
• Rapidly accelerated pressure on natural systems• More people competing for their fair share
• Something has to give• Somebody has to lead
• There are real business opportunities and advantages for those who commit to lead the way
![Page 4: New Commitments Yield New Markets](https://reader035.fdocuments.us/reader035/viewer/2022070410/5681462a550346895db337e5/html5/thumbnails/4.jpg)
Panelists
• Madeleine Jacobs, Head of Sustainable Development, ABN AMRO
• Thomas Jorling, Vice President, Environmental Affairs, International Paper
• Sofie Beckham, Forestry Manager, IKEA Trading Americas
![Page 5: New Commitments Yield New Markets](https://reader035.fdocuments.us/reader035/viewer/2022070410/5681462a550346895db337e5/html5/thumbnails/5.jpg)
Questions
• What are the business motivations that persuaded your corporation to make these commitments?
• What have been the most significant challenges, obstacles, or impediments to putting these commitments into practice?
• What do you think the future of sustainability commitments will be in your industry?
![Page 6: New Commitments Yield New Markets](https://reader035.fdocuments.us/reader035/viewer/2022070410/5681462a550346895db337e5/html5/thumbnails/6.jpg)
Format
• All three will address the first two questions– Discussion
• All three will speak about the future– Discussion
![Page 7: New Commitments Yield New Markets](https://reader035.fdocuments.us/reader035/viewer/2022070410/5681462a550346895db337e5/html5/thumbnails/7.jpg)
7
Thomas JorlingVice President
Environmental Affairs
New CommitmentsYield New Markets
![Page 8: New Commitments Yield New Markets](https://reader035.fdocuments.us/reader035/viewer/2022070410/5681462a550346895db337e5/html5/thumbnails/8.jpg)
8
• mandatory / regulatory • VOC, NOX, SO2
• voluntary / external • CCX, EPA-climate leaders
• voluntary internal • endangered species banking, wetlands mitigation banking
THREE DRIVERS OF COMMITMENTS
![Page 9: New Commitments Yield New Markets](https://reader035.fdocuments.us/reader035/viewer/2022070410/5681462a550346895db337e5/html5/thumbnails/9.jpg)
9
• To learn and gain experiences with the emerging techniques that offer the promise of cost-effective pollution control beyond current standards - these include VOC, NOX, SO2 and perhaps soon - CO2
• To participate at the earliest possible stages of the development of these mechanisms to help influence the shape and content to assure practicality and feasibility
• To test the reality of ‘markets’ in natural resources (i.e. endangered species, conservation easements, wetlands mitigation)
• As a natural resource/forest land based industry these ‘markets’ not only offer environmental achievement but also ways of unlocking value from assets
WHY MOVE TO “CAP AND TRADE” AND OTHER MARKET MECHANISMS
![Page 10: New Commitments Yield New Markets](https://reader035.fdocuments.us/reader035/viewer/2022070410/5681462a550346895db337e5/html5/thumbnails/10.jpg)
10
CHALLENGES / OBSTACLES TO THESE EMERGING MECHANISMS
• Exploring and testing the new while spending is still being driven by the old – i.e. capital spending is dominated by EPA rules, no discretion not to spend – compliance required – even though high cost – little benefit
• Maintaining existing environmental infrastructure both O&M and capital – sucks up resources – at a time when global competitiveness is keen
• Conflicting public policy and law – many EPA requirements result in more greenhouse gas emissions with no comparative assessment that such result is worth the environmental benefit from the requirement
• Rules that require incremental reductions across all systems at high cost – lock in old technology and discourage new technology
![Page 11: New Commitments Yield New Markets](https://reader035.fdocuments.us/reader035/viewer/2022070410/5681462a550346895db337e5/html5/thumbnails/11.jpg)
WRI Sustainable Enterprise SummitWashington, March 17, 2004
Madeleine JacobsHead of Sustainable Development
ABN AMRO
New Commitments Yield New Markets
for Financial Institutions
![Page 12: New Commitments Yield New Markets](https://reader035.fdocuments.us/reader035/viewer/2022070410/5681462a550346895db337e5/html5/thumbnails/12.jpg)
Our Sustainability Learning Curve
Value Creation
Loss
Avoidance
Value
Destruction
Innocence
Wake-U
p
Call
Case S
pecif ic D
efence
Proactive
External
Dialogue
Deve lop ing Inte rnal
Standards
Freeport
APP
Dialog with FOE
Forestry dialog
Mining policy
O&G policy
Equator Principles
Com
mon
Sector
Base line
SD business Strategy
Pursuing
th e B
usiness Case
![Page 13: New Commitments Yield New Markets](https://reader035.fdocuments.us/reader035/viewer/2022070410/5681462a550346895db337e5/html5/thumbnails/13.jpg)
The Equator Principles
Voluntary declaration among leading group of Project Finance Banks
Establishes a common framework for commercial Banks Will provide loans only to borrowers complying withEnvironmental & Social standards and processes Based on IFC/World Bank guidelines/policies With 20 Banks adopting, a de facto industry standard
![Page 14: New Commitments Yield New Markets](https://reader035.fdocuments.us/reader035/viewer/2022070410/5681462a550346895db337e5/html5/thumbnails/14.jpg)
The SD Business Rationale for Financial Institutions
Our LT success is linked to core competencies that underpin our role as a Bank:
Trust
Client Satisfaction
Risk Management
Employee Satisfaction & Attraction
![Page 15: New Commitments Yield New Markets](https://reader035.fdocuments.us/reader035/viewer/2022070410/5681462a550346895db337e5/html5/thumbnails/15.jpg)
Challenges in the implementation of commitments
Building the Business Case
Translating SD into a focused business strategy
Making dilemmas tangible/enabling people at the front
Compliance
Dealing with emerging markets clients with standards still lagging
![Page 16: New Commitments Yield New Markets](https://reader035.fdocuments.us/reader035/viewer/2022070410/5681462a550346895db337e5/html5/thumbnails/16.jpg)
© Inter IKEA Systems B. V. 2000
Sofie Beckham, IKEA Trading Americas March 17, 2004
Social & Environmental Responsibility in a
Competitive Marketplace
WRI SummitNew Commitments Yield New Markets
![Page 17: New Commitments Yield New Markets](https://reader035.fdocuments.us/reader035/viewer/2022070410/5681462a550346895db337e5/html5/thumbnails/17.jpg)
© Inter IKEA Systems B. V. 2000
Sofie Beckham, IKEA Trading Americas March 17, 2004
Question 1: IKEA Business Motivations
DRIVERS
•The IKEA vision- “Create a better everyday life for the many people.”
•Past challenges/milestones- IKEA must be proactive towards social and environmental issues to ensure our long-term future.
•External groups- NGO’s and other external groups have increased our awareness of important issues.
![Page 18: New Commitments Yield New Markets](https://reader035.fdocuments.us/reader035/viewer/2022070410/5681462a550346895db337e5/html5/thumbnails/18.jpg)
© Inter IKEA Systems B. V. 2000
Sofie Beckham, IKEA Trading Americas March 17, 2004
ADVANTAGES
•Raw material security- IKEA must be proactive to have supply!
•Eco-efficiencies- Efficient raw material use has a positive effect on costs.
•Marketplace differentiation- Consumer awareness of social and environmental issues is growing.
Question 1: IKEA Business Motivations
![Page 19: New Commitments Yield New Markets](https://reader035.fdocuments.us/reader035/viewer/2022070410/5681462a550346895db337e5/html5/thumbnails/19.jpg)
© Inter IKEA Systems B. V. 2000
Sofie Beckham, IKEA Trading Americas March 17, 2004
Question 2: Challenges, obstacles and impediments
Communication-Internal/external
Resources-New competencies and tools needed
Varying global conditions-Different countries, different conditions
![Page 20: New Commitments Yield New Markets](https://reader035.fdocuments.us/reader035/viewer/2022070410/5681462a550346895db337e5/html5/thumbnails/20.jpg)
Questions and Answers
![Page 21: New Commitments Yield New Markets](https://reader035.fdocuments.us/reader035/viewer/2022070410/5681462a550346895db337e5/html5/thumbnails/21.jpg)
Final Question
What do you think the future of sustainability commitments will be in your industry?
![Page 22: New Commitments Yield New Markets](https://reader035.fdocuments.us/reader035/viewer/2022070410/5681462a550346895db337e5/html5/thumbnails/22.jpg)
© Inter IKEA Systems B. V. 2000
Sofie Beckham, IKEA Trading Americas March 17, 2004
Question 3: Future of Sustainability Commitments
Stores
Products & Materials
Transport & Warehousing
Suppliers
ForestryGood Housekeeping
Deepening commitmentsPartnerships will increaseSystems thinking/New tools
![Page 23: New Commitments Yield New Markets](https://reader035.fdocuments.us/reader035/viewer/2022070410/5681462a550346895db337e5/html5/thumbnails/23.jpg)
© Inter IKEA Systems B. V. 2000
Sofie Beckham, IKEA Trading Americas March 17, 2004
Question 3: Future of Sustainability Commitments
Product recovery
Product tracing
Consumption
![Page 24: New Commitments Yield New Markets](https://reader035.fdocuments.us/reader035/viewer/2022070410/5681462a550346895db337e5/html5/thumbnails/24.jpg)
© Inter IKEA Systems B. V. 2000
Sofie Beckham, IKEA Trading Americas March 17, 2004
We have only just begun, we still have a long way to go!!!
![Page 25: New Commitments Yield New Markets](https://reader035.fdocuments.us/reader035/viewer/2022070410/5681462a550346895db337e5/html5/thumbnails/25.jpg)
25
THE FUTURE
• Likely to be an extended period of policy gridlock and impasse until inefficiencies build to an inescapable need to change
That need will result from (or produce) a convergence between:
– Development of systems and processes (including those based on markets) that are coherent, cost-effective and efficient
– Examples of results from innovation pilot demonstrations involving governments and NGOs
– Rapid development of transforming technology, especially in climate / environment friendly energy production, water cleaning, etc.
– Growing spirit of partnership rather than adversarial relations among stakeholders
![Page 26: New Commitments Yield New Markets](https://reader035.fdocuments.us/reader035/viewer/2022070410/5681462a550346895db337e5/html5/thumbnails/26.jpg)
26
Some of this will be driven by what appears to be a unifying concept – sustainability.
Sustainability recognizes that environmental, economic and social welfare conditions all have to be addressed if 9 billion people can satisfy their basic aspirations for a decent quality of life without degrading the life supporting biosphere.
![Page 27: New Commitments Yield New Markets](https://reader035.fdocuments.us/reader035/viewer/2022070410/5681462a550346895db337e5/html5/thumbnails/27.jpg)
New Roles and Opportunities for the Financial Sector
We are entering an era where we rebalance priorities of the 90s- toward governance and people/planet
A more active role for Banks as part of society, working towards balanced solutions jointly with public sector and industry clients
SD will become a critical internal success factor for Banks
New markets and products: SRI funds, sell and buy side research (focus on governance & people/planet)
Brownfield lending, Renewable Energy funding, Emissions trading
Corporate Finance and Project Finance Advisory
![Page 28: New Commitments Yield New Markets](https://reader035.fdocuments.us/reader035/viewer/2022070410/5681462a550346895db337e5/html5/thumbnails/28.jpg)
Questions and Answers
![Page 29: New Commitments Yield New Markets](https://reader035.fdocuments.us/reader035/viewer/2022070410/5681462a550346895db337e5/html5/thumbnails/29.jpg)
Thank You