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Sustainability: the bigger picture What is it and why do we care?
Sustainability: the bigger picture What is it and why do we care?
This session 1. NGO’s
• Forum • Roles
4. How are companies & consumers responding?
• Business benefits • Consumer awareness • Economic downturn
2. The Big Picture • Good news • Bad news • Climate change
3. Sustainability • Definitions • The 3 pillars
1. Forum for the Future & other NGOs
NGOs
The role of NGOs
• NGOs have higher credibility with consumers • Companies gain credibility and expertise • NGOs working in partnership with companies • Multi-level engagement - from Board to
implementation • Multi-stakeholder engagement – government,
consumer, industry
The role of NGOs government
industry
consumer
The role of NGOs government
industry
consumer NGO’s
2. The Big Picture
WORLD GROSS PRODUCT 1950 - 2000
Source Worldwatch, based on A. Maddison
Huge benefits for hundreds of millions of people!!
So what’s wrong with another fifty years of the same?
Predictions of crude oil price ($ per Barrel) (2000-2008)
1950 →
Global Population
2000 →
2050 →
3 billion
6 billion
9 billion
The Hedonic Treadmill _ People who’ve got it, want more of it _ People who’ve got lots of it, still want more of it _ People who haven’t yet got it, really, really want it _ People who know they’ll never get it, still dream of it…
“One fifth of humanity live in countries where
many people think nothing of
spending $2 a day on a cappuccino. Another fifth of
humanity survive on less than $1 a
day, and live in countries where children die for
want of a simple anti-mosquito bed
net.”
Inequality
Deforestation Desertification
Over fishing Build-up of toxics
Mining for raw materials
The Decline of Nature
Water stress and shortages Loss of biodiversity
Air pollution Water pollution
…
The Decline of Nature
The Greenland Ice Sheet
_ Summer melt area increased on average by 25% from 1979 – 2005
_ Ice loss by melting and sliding doubled in 10yrs
_ Currently ~0.5mm/y sea level rise _ Should the whole ice sheet melt it will
raise sea levels by 6-7m
“If everyone on the Planet were to
consume resources and generate carbon dioxide at the same
rate as we do in Europe, we would need
three planets to support us. We only
have one.” WWF
One Planet Living
Our sustainability situation:
And what are we all doing globally about climate change?
what is climate change?
what is climate change?
...global climate change is defined as changes in temperature, precipitation, wind, humidity, and frequency of extreme climatic events caused by the accumulation of greenhouse gases in the atmosphere due to anthropogenic activities. Adapted from the Intergovernmental Panel on Climate Change (2001) Third Assessment Report of Working Group, IPCC
Carbon dioxide concentration
Atmospheric concentration of CO2 over the last 1000 years and since 1958 at Mauna Loa, Hawaii.
What makes Climate Change the biggest challenge of our generation?
_ Truly global _ Every single human being involved
(both contributing and being impacted) _ Risk of non-linear, runaway change _ Fear of uncertainty _ Fear of irreversibility
INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE: CONCLUSIONS
? % → Caused by man-made factors
? ºC → To avoid “dangerous” climate change
? ppm → Stabilisation level for CO2
? % → Required reduction in CO2 emissions by 2050
? → Years left to avoid “chaos point”
? % → Required reduction in CO2 emissions by 2020
INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE: CONCLUSIONS
90% → Caused by man-made factors
2ºC → To avoid “dangerous” climate change
450ppm → Stabilisation level for CO2
80% → Required reduction in CO2 emissions by 2050
10-15 → Years left to avoid “chaos point”
34-42 % → Required reduction in CO2 emissions by 2020
90%
Cumulative emissions matter most!
Cumulative emissions matter most!
_ To reach the 80% goal, the UK’s budget is ~ 4.8 billion tonnes of carbon between 2000-2050
_ But, between 2000-2006 we have already emitted ~ 1.2 billion tonnes of carbon
_ we’ve therefore used ¼ of our permitted emissions for 50 years in around 6 years…
Cumulative emissions matter most!
The Tyndall Centre, Reframing the Climate Debate, October 2008
International action on climate change Kyoto Protocol – 1997 - 5% reduction by 2012
Washington Declaration- February 2007
_ G8+5 agreed to voluntary global cap-and-trade
Pre-Copenhagen – March, September 2009,
_ Climate scientists meeting on accelerating pace of climate change
L’Aquila G8 – July 2009
_ All G8 countries agree on 80% cut by 2050 and +2ºC max temperature
Copenhagen (COP15) - December 2009
_ Post Kyoto treaty
_ Global agreement on emissions reduction
_ Deep cuts and global carbon market expected
UN Climate Conference - Copenhagen Dec-09
• To recognise the goal to limit global greenhouse gas emissions to ensure that the increase in global temperatures is below 2 degrees Celsius; • Deep cuts in emissions in accordance with the IPCC Fourth Assessment - which would indicate a peak in emissions by 2015 and a reduction by 2050 of 50-85% vs. 1990 levels; • A funding commitment for developing nations of up $30bn to 2012 and $100bn annually by 2020 to be overseen by a Global Climate Fund; • A failure to agree reduction targets or plans by either the developed or developing nations.
Sir Nicholas Stern, Stern Review | April 2008
“Emissions are growing much faster than we'd thought, the absorptive capacity of the planet is less than we'd thought, the risks of greenhouse gases are potentially bigger than more cautious estimates and the speed of climate change seems to be faster.”
Sir Nicholas Stern, Stern Review | April 2008
“The world does not need to choose between averting climate change and promoting growth and development.”
Sir Nicholas Stern, Stern Review | April 2008
“Climate change is the greatest market failure the world has ever seen”.
President Barack Obama | Inaugural Speech 2009
“And to those nations like ours that enjoy relative plenty, we say we can no longer afford indifference to the suffering outside our borders, nor can we consume the world's resources without regard to effect. For the world has changed, and we must change with it.”
3. Sustainable Development
Sustainability is…
“Meeting human needs without overwhelming nature or society”
Sustainable development is…
The process by which we get there
In theory, sustainability means “The capacity for continuance into the long
term future” • Continuance of life on earth • Continuance of the human species • Continuance of Earth’s life-support
systems
Economy
Structured to meet objectives and values set
by society
Society
Decides objectives for development and
sets ethical and value framework
Environment
Sets limits, the real bottom line
The 3 Pillars
What do the three pillars mean?
Environmental Social Economic
What do you think?
Financial performance Contribution to economic growth Affect on local labour Affect on local companies, entrepreneurs and economic development Contribution to local or regional infrastructure
Human rights Labour practices & work standards Health and safety Community impacts Corruption Lobbying Product/Producer responsibility Privacy
Materials & resources used Energy Water Biodiversity Emissions & waste Climate change
What do the three pillars mean?
Environmental Social Economic
What do people really, really want?
What do people really, really want?
_ Ecological security _ Trustworthy systems of government and
justice _ Satisfying work _ Appropriate technology _ Safe, supportive (convivial) communities _ Shared sense of purpose and values
4. How are companies and consumers responding?
Who do the consumers think is responsible?
The sustainability journey: from philanthropy to sustainable value
Adapted from John Elkington
Core strategy Climate change
BOP Innovation
Sustainable product
1960s 1970s 1980s 1990s 2000
Focus on compliance Focus on standards
Focus on values
Philanthropy Narrow
environmental
Community involvement
Broad environmental
Environmental Social
Human rights Governance
Mainstreaming
2006
Focus on opportunity
Business benefits of SD engagement
Source: PwC analysis, Factiva
Consumers and Sustainability: Sustainability Media Coverage
-
5,000
10,000
15,000
20,000
25,000
1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007
Social
Food
Environment
# m
edia
men
tions
Source: PwC analysis of 2,000 UK consumers, February 2008
Poverty 22% =
Climate Change 32% =
Food & Water Shortages 9% =
16% Terrorism = How worried are you
about climate change?
_ very worried _ worried
_ not worried
Levels of public awareness
80%
9%
Price premium persists Price 48%
Lack of choice & sustainable alternatives Availability 17%
Confused consumers want clearer ‘truthful’ information
Information & Communication 20%
Source: PwC analysis of 2,000 UK consumers, February 2008 Source: PwC analysis of 2,000 UK consumers, February 2008
Barriers to sustainable consumption
©2003 The Natural Step: All rights reserved
Implications across the business _ Sustainability is wide in scope _ Impacts the whole length of the value chain _ Requires a ‘joined up’ approach _ Offers many opportunities to collaborate along
the value chain
In summary: Sustainable Development
A threat to those companies that ignore it…
An opportunity for those that embrace it!
In pairs - discuss the top two things you’ve taken away from this
presentation.
In groups please:
1) Briefly run through your chosen products and tell your group how they are made, purchased, used and disposed of
2) Where are the areas of greatest impact throughout the product lifecycle?
_ Map impacts out using post-its 3) Present back to the group for ~2min minutes per
group
Market research R&D
Manufacturing Sales & marketing
Investment decisions
Sourcing
market research
R&D investment decisions
sourcing manufacturing marketing & sales
thank you! Fiona Bennie [email protected]
