The Role of Business · ¾Total turnover = USD 5,200 billion ¾Market capitalization = USD 5,400...
Transcript of The Role of Business · ¾Total turnover = USD 5,200 billion ¾Market capitalization = USD 5,400...
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Jacqueline CotéSenior Advisor Advocacy & Partnerships
Academia Engelberg11 October 2006
DEDICATED TO MAKING A DIFFERENCE
The Role of Business
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2Academia Engelberg, 11 October 2006
AgendaAgenda
Introduction to WBCSDBusiness and Sustainable DevelopmentWBCSD Energy & Climate Focus AreaThe Global FrameworkConclusion
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WBCSDWBCSD
Coalition of 190 leading companiesTotal turnover = USD 5,200 billionMarket capitalization = USD 5,400 billionTotal member company employees = 12 millionGlobal outreach
3 billion consumers per day buy a product or service from a WBCSD member company
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Europe-EUNorth America (incl. Mexico)Asia (Japan & South Korea)Asia - OtherEurope - OtherLatin AmericaCentral & Eastern EuropeOceaniaAfricaMiddle East
EU 67
Japan & South Korea 32
North America (incl. Mexico) 49
Asia other 10
WBCSD MembershipWBCSD Membership
7 Swiss companies
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Utilities & Power Mining & Metals Oil & Gas Consumer Goods Chemicals (13)Forestry & Paper products Auto Banks & Insurance Cement Services Food & Beverages IT & TelecomsTires Construction Engineering Healthcare Water Services Media Retail Airlines
WBCSD Sectors 181515141313121212128887743221
Membership by SectorMembership by Sector
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WBCSD Regional NetworkWBCSD Regional Network
4
BCSD Gulf of Mexico
US BCSD
CentraRSE Guatemala
BCSD Argentina
BCSD VenezuelaBCSD Colombia
BCSD Croatia
BCSD Czech Republic
BCSD El SalvadorBCSD Honduras
BCSD Malaysia
PBE Philippines
NBI South Africa
BCSD Zimbabwe
BCSD Thailand
Vernadsky Foundation Russia
APEQUE Algeria
FE/BCSD SpainFFA Spain
EPE FranceBCSD Austria
BCSD UKCGLI USA/Canada
WASIGW.Australia
BCA Australia
BCSD TaiwanAEECEgypt
Perú 2021
The Excel Partnership Canada
Keidanren Japan
CII
BCSD China
NHO-Norway
BCSD Ecuador
BCSD Paraguay
BCSD Sri Lanka
BCSD KoreaBCSD Mexico
BCSD BoliviaFEMA Mozambique
BEC Hong Kong
BCSD Kazakhstan
AED Costa Rica BCSD Nigeria
TERI BCSD India
BCSD Brazil
Econsense Germany
BCSD Mongolia
IntegraRSE Panama
BCSD Portugal
BCSD New Zealand
BCSD Turkey
BCSD Hungary
Accion RSEChile
UniRSE Nicaragua
DERES Uruguay
DCSBD Denmark
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AgendaAgenda
Introduction to WBCSDBusiness and Sustainable DevelopmentWBCSD Energy & Climate Focus AreaThe Global FrameworkConclusion
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Back in 1962Back in 1962
« The business of companies is to make as much money for stockholders as possible … »
Milton Friedman
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30 years later30 years later
Earth Summit
Eco-efficiency
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10 years ago10 years ago
Social dimensionLabour practicesHealth & safetyBribery & corruptionSupply chainsPrivacyTraining & educationDiversityEtc.
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Governance
EnvironmentEconomy
Social Structure
TodayToday
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3 main topics/forces3 main topics/forces
Globalization
China and India
Energy and Climate
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Mission: Functioning Society
Reward: Sustainability
Society
SD Issues
The Space for doing Business
Mission: Efficient provision of goods and services that
society wants
Reward: Shareholder value
Business
Business societal contract
rules & constraints
Business license to operate, innovate and grow
Business and Sustainable DevelopmentBusiness and Sustainable Development
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Consequences for Companies
1. Business ModelIs your business model robust enough to cope with the SD constraints and opportunities?What do these issues mean to your long-term investments?
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2. Brand and reputationCompany SD performance is impacting the perception of a company
EmployeesCustomersInvestorsAuthorities
Consequences for Companies
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Consequences for Companies
3. Stock market valuationPerceptions about your ability to respond to the SD challenges will influence your stock market valuationHow do you communicate with investors and analysts?
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Consequences for Business
The role of business in tomorrow’s society?
What can Business do and what can Business not do?
“How do we make ourselves heard?”
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Tomorrow’s LeadersTomorrow’s Leaders
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A commitment…A commitment…
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Company examplesCompany examplesGE Ecomagination doubling research in cleaner technologies
BC Hydro offering consumer incentives to energy reduction
Statoil, Norsk Hydro, Suncor, etc. investing in carbon capture &storage technologies
BP, EDF, Shell, etc. developing solar electricity solutions
Cement companies adopting global standards for GHG reduction
Shell and BP using internal mechanisms for emissions trading
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AgendaAgenda
Introduction to WBCSDBusiness and Sustainable DevelopmentWBCSD Energy & Climate Focus AreaThe Global FrameworkConclusion
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Facts and
Trends,BusinessIssues,Sectors
Policy issues,
Long term goals,
Frameworkconditions
Compatibilityand
linkages Tools and practices•GHG Protocol- Project module (December 05)
•CDM capacity building and harmonization: GHG forums
•Expertise and facilitation for national programs (e.g. Mexican GHG Pilot program; evaluation of new potential SAR, India and Philippines)
Dialogues & AdvocacyG8 processIEAEU HLGUK Stern ReviewGlion II dialogueUNFCCC & « post-2012 »Energy for Development BAE (Business action for Energy) & UN CSD 15 IPCC
Research & Analysis:Trilogy of reports:• Facts and Trends to 2050• Pathways to 2050• Policy Directions to 2050Issue briefsLinks with WBCSD projects
WBCSD Energy & Climate Focus AreaWBCSD Energy & Climate Focus Area
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WBCSD, November 2004
Energy and climate change
Facts and Trends to 2050
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Pathways to 2050
1. Reduce energy intensityi.e energy efficiency
2. Decarbonization of the energy mix
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Pathways to 2050Pathways to 2050
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Major energy users
Major GHG emitters
Energy
Liquids
Direct combustion
Industry & manufacturing
Power generation
Electricity
Mobility Consumer choices
Buildings
Final energy
Oil
Bio
mas
s
Gas
Coa
l
Nuc
lear
Ren
ewab
les
Prim
ary
ener
gy
Pathways to 2050 Pathways to 2050 -- MegatrendsMegatrends
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Consumer ChoicesConsumer Choices
Consumer choices have a substantial influence on the energy balanceThe impact of these choices has to become more transparent and available: different choices, different footprints
Lifestyle A: 9.65 tons Lifestyle B: 0.85 tons
Tons of carbon per family of four per year
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Policy Directions to 2050Policy Directions to 2050
How far can Business go its own way based on the business case for action?How far can renewal and additions of the physical capital stock take us?What government policy frameworks will be needed to facilitate and enhance business actions?
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AgendaAgenda
Introduction to WBCSDBusiness and Sustainable DevelopmentWBCSD Energy & Climate Focus AreaThe Global FrameworkConclusion
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How far can Business How far can Business go on its own?go on its own?
Not far enough to mitigate climate change!
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Two SD Agendas for BusinessTwo SD Agendas for BusinessBusiness Agenda(The business case)
Operational (eco) efficiency Risk reductionRecruitment and retention of the best talentProtecting the resource base of raw materialsCreating new markets, products and services
Public Policy Agenda(Key societal themes)
Energy and climateAccess to waterSocietal infrastructure and servicesDevelopment and poverty Trade rulesHuman rights
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Who is in charge of creating a sustainable world?Do we have a governance system that is up to scale of the challenges facing us?
The Role of GovernmentsThe Role of Governments
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Global Society Going ForwardGlobal Society Going Forward
G8 Gleneagles Plan of ActionMake Markets Work for Climate ChangeWorld Energy Outlook 2006Asia Pacific Partnership on Clean DevelopmentCOP 12, NairobiEU High Level Group on Energy
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Common ThemesCommon Themes
Focus on energy efficiency: IEANecessity of clean coal solutions - carbon capture and storage Resurgence of the role of nuclear power Increased interest for biofuels Debate on the role of renewables - solar, windIndustry sector approaches to address climate change across borders
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Government Policies Supporting Government Policies Supporting Innovation & TechnologyInnovation & Technology
1. Safe and successful deployment conditions of mature and competitive technologies
2. Mature technologies that need removal of barriers to be deployed
3. Technologies that require subsidies to be deployed
4. R&D for new technologies
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37Academia Engelberg, 11 October 2006
AgendaAgenda
Introduction to WBCSDBusiness and Sustainable DevelopmentWBCSD Energy & Climate Focus AreaThe Global FrameworkConclusion
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ConclusionConclusion
Strong leadership is needed both from government and the business communityDecisions taken today and over the coming decades will largely determine which technologies are deployed by 2050Progress towards an energy-efficient, low-carbon future will only be achieved through decisive, concerted action by governments, businesses and consumers
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39Academia Engelberg, 11 October 2006
«Business cannot succeed
in a society that fails»