THE ENVIRONMENT PRINCIPLES

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THE UN GLOBAL COMPACT

• THE ENVIRONMENT PRINCIPLES
• Session E1 Setting the Scene The State of the
  Global Environment

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The State of the Planet Cause for Concern?
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The State of the Planet
UNEP Global Environment Outlook (GEO-4)

• Climate change visible and unequivocal evidence
  today of its impacts
• Decline of fish stocks
• Loss of fertile land through degradation
• Unsustainable pressure on resources
• Dwindling amount of freshwater available
• Recall Brundtland 1987 one global problematique,
  risks and opportunities

Published 25 October 2007
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The State of the Planet
UNEP Global Environment Outlook (GEO-4)

• Water irrigation already takes about 70 of
  available water but meeting the MDG on hunger
  will mean doubling food production by 2050 10
  of major rivers fail to reach sea part of year
  due to irrigation demands
• Fish Consumption have more than tripled from
  1961 to 2001 catches have stagnated or slowly
  declined since 1980s
• Biodiversity Species are becoming extinct a 100
  times faster than the rate shown in the fossil
  record
• Progress with ozone (ODSs) and acid rain, but
  springtime hole in the stratospheric ozone layer
  over Antarctic today larger than ever acid rain
  problems in eg Mexico, India, China, South Africa
• Chemicals pollution More than 50,000 compounds
  used commercially global chemical production
  projected to increase by 85 over next 20 years

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The State of the Planet

• Climate Change 2007 scientists have very high
  confidence

Diagram from IPCC
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Global Climate Change

• Our climate crisis has become a planetary
  emergency Al Gore

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The State of the Planet
Climate awareness 2006 2007 risks and
opportunities

• Stern Report to UK Government by Sir Nicolas
  Stern, former WB chief economist, Oct 2006 makes
  case for economic benefits of early action, a
  pro-growth strategy cost of action to mitigate
  / stabilise GHG emissions 1 of world GDP by
  2050, cost of inaction 5 20 times higher
• In 2004 some US30 billion was invested in
  renewable energy worldwide (excluding large
  hydropower). Direct jobs worldwide from renewable
  energy manufacturing, operations, and maintenance
  exceeded 1.7 million. Wind power has the greatest
  capacity of new renewable energy sources, growing
  28 per year from 2000-2004
• Investment capital flowing into renewable energy
  climbed from 80 billion in 2005 to a record 100
  billion in 2006 - Global Trends in Sustainable
  Energy Investment 2007 Report by UNEP
• IPCC 4th Assessment Report 2007 worlds average
  surface temperature has increased by around 0.74
  C over the past 100 years (1906 - 2005). Eleven
  of the last 12 years rank among the 12 warmest
  years since modern records began around 1850
  but also highlights (in)direct economic benefits
  and opportunities

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Potential emission reductions from additional
hydro, wind, geothermal, bioenergy, solar at ltUS
50 /tCO2
IPCC Report 2007 WGIII Mitigation
The share of renewables in the total electricity
supply can rise from 18 in 2005 to 30 35 by
2030 (at carbon price lt US50/tCO2eq).
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Key mitigation technologies and practices by
sectorIPCC Fourth Assessment Report, 2007
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Non-climate policies can influence GHG emissions
as much as specific climate policies IPCC
Fourth Assessment Report, 2007
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The State of the Planet
Unsustainable Consumption Global Consumer Class
Selected Nations (2002)
Consumers
Share of National Country (millions)
Population () United States 243
84 Japan 121 95 Germany
76 92 Russian Federation 61
43 Brazil 58 33 China 240
19 India 122 12
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The State of the Planet
Sustainable production and consumption

• Understanding the interrelation between
  eco-efficiency and sustainable consumption - the
  rebound effect
• In terms of the rebound effect, the
  productivity/efficiency gains achieved through
  cleaner production and eco-efficiency measures
  are being overtaken by the overall increases in
  production associated with growing consumption
  patterns
• While problems of production process are
  understood, there is generally an important gap
  of understanding in terms of the consumption
  (use) and disposal of products
• Environmental concerns are not sufficiently
  integrated into economic and social programmes
  and vice versa

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The State of the Planet
The Challenge

• Promoting Sustainable Consumption and Production
  (SCP)
• New product-oriented strategies (life cycle
  perspective, design and manufacture)
• Understanding consumption
• Integrated approach of sustainable consumption
  and production
• De-linking environmental damage from economic
  growth

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Improvement in environmental quality
Rethink
Redesign
Incremental change
Low hanging fruit
Time
Long investment time in RD
From Arthur D Little - Sustainable Industrial
Development 1996
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Evolving Business Behaviour on Sustainability
Issues
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A Brief History of Corporate Environmentalism

• Beyond 2000 Walking the Talk?
• Key strategic trends impacting global companies
• Growing NGO and community pressure for greater
  corporate transparency and accountability
• Increasing activism of institutional investors
  and the financial community, compounded by
  post-Enron disenchantment with traditional
  analysis
• Tightening global and domestic regulatory
  pressures (eg the Kyoto protocol, European
  pension fund requirements)
• Increasing appreciation of the business case for
  sustainability and a gradually growing acceptance
  of the need to address sustainability concerns

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Corporate Environmentalism Strategic Trends
Changing regulatory pressures

• Key developments globally
• Growing number of Multilateral Environmental
  Agreements
• International corporate accountability / MNC
  liability regimes
• EU Chemicals policy (REACH)
• EU Integrated Product Policy - LCA implications
• Regulatory pressure for reporting
• Environmental tax reform requirements
• Personal / class action claims

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Discounted present value of potential carbon
liabilities within a single emissions-intensive
manufacturing firm could represent as much as 40
of its entire market capitalisation under certain
plausible scenarios CARBON DISCLOSURE PROJECT
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The Business Case for Environmental Management
Risk
Market Access - Better access to capital -
Growth in SRI initiatives - Enhanced customer
loyalty - Marketing benefits
Reward
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Corporate Environmentalism Strategic Trends
Increasing investor action
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The Business Case for Environmental Management
New Markets - Development of new products -
First mover advantage - Innovation in
addressing environmental concerns
Risk
Reward
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The Business Case for CESR UNEP/SustainAbility
Buried Treasure 02