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Page 2: Fussler@wbcsd.org. Toward the Johannesburg Summit 2002 Commitments for the next decades

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Toward the Johannesburg Summit 2002

Commitmentsfor the next decades

Page 3: Fussler@wbcsd.org. Toward the Johannesburg Summit 2002 Commitments for the next decades

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World Business Council for Sustainable DevelopmentDedicated to making a difference World Business Council for Sustainable DevelopmentDedicated to making a difference

156 trans-national corporations Making the business case for

Sustainable Development 30 associated networks World Summit 2002 to challenge and

accelerate implementation

156 trans-national corporations Making the business case for

Sustainable Development 30 associated networks World Summit 2002 to challenge and

accelerate implementation

Leadership …using our influence Leadership …using our influence

Page 4: Fussler@wbcsd.org. Toward the Johannesburg Summit 2002 Commitments for the next decades

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Business Action for Sustainable Development

Initiated with ICC A shared campaign to mobilize business Broad based – all sectors, worldwide Sir Mark Moody-Stuart leads Strategy meeting – October 9-10, Paris Possible Summit Business Day Stimulate initiatives, drive for synergy and

stakeholder cooperation

Initiated with ICC A shared campaign to mobilize business Broad based – all sectors, worldwide Sir Mark Moody-Stuart leads Strategy meeting – October 9-10, Paris Possible Summit Business Day Stimulate initiatives, drive for synergy and

stakeholder cooperation

Page 5: Fussler@wbcsd.org. Toward the Johannesburg Summit 2002 Commitments for the next decades

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The Johannesburg Summit 2002

World Summit Sept 02-11 2002 – Johannesburg

• CEOs and Heads of State

Ministerial PrepCom 4 May 6-17 2002 - Djakarta

• High levelStakeholder dialogue

PrepCom 3 Mar. 18 – 29 2002 - NY

PrepCom 2 Jan. 28 – Feb 08 2002 - NY

• Stakeholder dialogue

5 Regional Reviews Sept-Nov 2001

Page 6: Fussler@wbcsd.org. Toward the Johannesburg Summit 2002 Commitments for the next decades

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Where is it going?

UNECE ministerial declaration draft

Priorities Poverty eradication

Protecting the natural resource base

Make globalization work for all

Strengthen institutions and democratic process

Finance sustainable development

Promote science for decision making

A « global deal »

Page 7: Fussler@wbcsd.org. Toward the Johannesburg Summit 2002 Commitments for the next decades

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Sustainability Through the Market

7 keys

Making a differenceToward the Johannesburg Summit 2002 and beyond

MarketShapers Facts and trendsthat shape our markets Mar. 2002

The Business Case A workbook Sept. 2002

Page 8: Fussler@wbcsd.org. Toward the Johannesburg Summit 2002 Commitments for the next decades

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LaggardFree-rider

Business strategy

Marketshaper

Efficiency and Innovationcompetitiveness at the leading edgeEfficiency and Innovationcompetitiveness at the leading edge

Innovator 2Shared Successvalues as a source of top growthShared Successvalues as a source of top growth

Complier Optimizationcompliance at lowest costOptimizationcompliance at lowest cost 1

Type

Page 9: Fussler@wbcsd.org. Toward the Johannesburg Summit 2002 Commitments for the next decades

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CreateSharehoder

Value!

Market capitalisationMarket capitalisation

Sustainable Asset ManagementSustainable Asset ManagementReputationBrand equity

Growth

it’s growthstupid!

it’s growthstupid!

Assets

130.00

180.00

230.00

280.00

330.00

80.00

Dez93

Jun94

Dez94

Jun95

Dez95

Jun96

Dez96

Jun97

Dez97

Jun98

Dez98

Jun99

Dez99

Jun00

Dez00

Jun01

DJSI World (in USD)

DJGI World (in USD)

Dow JonesSustainability Index

15.8%15.8%

12.5%12.5%

Page 10: Fussler@wbcsd.org. Toward the Johannesburg Summit 2002 Commitments for the next decades

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The corporate response is � sincere � unconvincing � ambiguous

Environmental stretched targets Life cycle stewardship Performance reports Employee empowerment and partnership Equal opportunities and continuous learning Stakeholder engagement Code of ethics Beyond compliance No double standards Philanthropy and volontarism

Page 11: Fussler@wbcsd.org. Toward the Johannesburg Summit 2002 Commitments for the next decades

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The corporate response is � sincere � unconvincing � ambiguous

Supply chain influence Tolerance of free riders Inertia of collective action Market framework rethoric Adverse to fiscal reform Biased trade terms Distrust of state and UN action Focused on affluent markets Promote consumption

Page 12: Fussler@wbcsd.org. Toward the Johannesburg Summit 2002 Commitments for the next decades

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Hookedon

growth

Rawmaterialswastes

produce consumeDesiregrowthDesiregrowth

workwork

EarnsaveEarnsave

Page 13: Fussler@wbcsd.org. Toward the Johannesburg Summit 2002 Commitments for the next decades

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EnvironmentalimpactEnvironmentalimpact

Qualityof lifeQualityof life

EconomicgrowthEconomicgrowth

eco-efficiencyeco-efficiency

Design an economythat works for all… Design an economythat works for all…

factor 4factor 4

88

1010

…within the limitsof the planet …within the limitsof the planet

Page 14: Fussler@wbcsd.org. Toward the Johannesburg Summit 2002 Commitments for the next decades

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The creative power of dilemma

ecoeco ecoecoproduct or service valueproduct or service value

environmental impactenvironmental impact

eco-efficiency

Page 15: Fussler@wbcsd.org. Toward the Johannesburg Summit 2002 Commitments for the next decades

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Innovate!

Page 16: Fussler@wbcsd.org. Toward the Johannesburg Summit 2002 Commitments for the next decades

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Buyers and users preferences-Policy changes

Type 1 2

Competitive spaceof known offering

Innovativeoffering

Move beforeyou have to!Move beforeyou have to!

Assume Possible water crisis Carbon constraint Risks are higher Consumers want it all Public knows it all Integrated Product Policy Opportunity in development Economic calculus will

change

Invest in Dematerialisation Design skills Capital replacement Water management Non carbon energy « negawatts »,

« negadrops » Dialogue Communities

Eco-InnovationEco-Innovation

Page 17: Fussler@wbcsd.org. Toward the Johannesburg Summit 2002 Commitments for the next decades

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Eco-efficiency

Innovate!

Provide & inform consumer choice

The right market framework

Biopolymers, Washright Hybrid cars, mobility systems Low energy lighting Many more…

Page 18: Fussler@wbcsd.org. Toward the Johannesburg Summit 2002 Commitments for the next decades

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Move from stakeholder dialoguesto partnerships for progress

TransparencyComplementary skillsGrass roots effectivenessShared learningShared accountability

Page 19: Fussler@wbcsd.org. Toward the Johannesburg Summit 2002 Commitments for the next decades

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… and now the sticky ones …… and now the sticky ones …

Page 20: Fussler@wbcsd.org. Toward the Johannesburg Summit 2002 Commitments for the next decades

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… and now the sticky ones …… and now the sticky ones …Provide & inform consumer choice

The right marketframework Reflecting the

Worth of the Earth

Making markets work for all

Page 21: Fussler@wbcsd.org. Toward the Johannesburg Summit 2002 Commitments for the next decades

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30

25

15

1970 1980 1990

20

10

2000

Gross World Product in $trillions

5

Measured by GDPthe world economytrebbled in 30 years

…withlittle benefit

for a majorityof the population

Page 22: Fussler@wbcsd.org. Toward the Johannesburg Summit 2002 Commitments for the next decades

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-150

-100

-50

0

50

100

East Asia &Pacific

Europe &Central Asia

Latin America &the Caribbean

Middle East &North Africa

South Asia Sub-SaharanAfrica

0 5000 10000 15000

Poorest 20 countries

Richest 20 countries

Poorest 20 countries

Richest 20 countries

1960

1995

$ GDP/capita

1987 – 1998 change in million of people living on less than 1$ per day

A general « trickle down » of wealthis hard to detect for the poorest…

Poverty gapdoubled

Page 23: Fussler@wbcsd.org. Toward the Johannesburg Summit 2002 Commitments for the next decades

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the long boom

liberal globalisation

the end of an utopia

Page 24: Fussler@wbcsd.org. Toward the Johannesburg Summit 2002 Commitments for the next decades

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Weaker international institutions

Rogue and failed states

Chronic local conflicts

Urban guerillas, crime

Global international crime = $500 billion

Fundamentalism, fanatism, terrorism

Weaker international institutions

Rogue and failed states

Chronic local conflicts

Urban guerillas, crime

Global international crime = $500 billion

Fundamentalism, fanatism, terrorism

Page 25: Fussler@wbcsd.org. Toward the Johannesburg Summit 2002 Commitments for the next decades

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…a long way to goand too little action

Of 4.4 billion people in developing countries 3/5 lack basic sanitation 1/3 have no clean water 1/4 lack adequate housing 1/5 have no adequate health service 1/5 are hungry

New business models A sense of financial venture and humanity Self interest and broader vision Adaptive governance

Opportunities at the bottom of the pyramid…

Page 26: Fussler@wbcsd.org. Toward the Johannesburg Summit 2002 Commitments for the next decades

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Making markets work for all

Move before you have too!

Managingglobalization