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2012 Industry Vision for the Consumer Community Annual Meeting 2012 Davos-Klosters, Switzerland Industry Agenda

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Page 1: _IndustryVision 2012 Final Proof

2012 Industry Vision for the Consumer Community

Annual Meeting 2012 Davos-Klosters, Switzerland

Industry Agenda

Page 2: _IndustryVision 2012 Final Proof

The Industry Vision

This document provides an overview of the World Economic Forum Industry Partners of the Consumer Community (“Consumer Community”)’s 2011 work and serves as briefing material for the Consumer Community’s private (“Governors”) sessions at the Forum’s 2012 Annual Meeting. As such, this document previews what executives should expect to learn and experience in each of the Governors Programme sessions. We encourage executives to read the relevant sections prior to arriving at the Annual Meeting. Further background information is available from the Forum’s Consumer Community team (contact information included at the end of the document).

About the World Economic Forum

The World Economic Forum is an independent international organization committed to improving the state of the world by engaging leaders in partnerships to shape global, regional and industry agendas. Incorporated as a foundation in 1971 and based in Geneva, Switzerland, the World Economic Forum is impartial and not-for-profit; it is not tied to any political, partisan or national interests (www.weforum.org).

About the World Economic Forum Consumer Community and Governors Programme

The Consumer Community comprises select member companies of the World Economic Forum that are actively involved in pursuing the Forum’s mission at the industry level. The Community brings visibility and insight to strategic decision-making on the most important industry and cross-industry related issues, as well as the opportunity to engage in acts of global corporate citizenship. The Consumer Community includes the senior leadership teams of member companies in an ongoing process of engagement with the Forum throughout the year. At each Annual Meeting, the Consumer Community designs a special programme of invitation-only activities for CEOs, known as the Governors Programme. The programme focuses on critical issues identified by the Community and is designed to generate impact at global and regional levels.

About the Consumer Community Steering Board

The Consumer Community Steering Board serves as an advisory board for the overall Consumer Community. Composed of Partners who are highly engaged in the Forum’s work, the Steering Board provides strategic guidance and helps ensure that the Community’s meetings, reports and projects achieve high-quality standards. The Steering Board is co-chaired by Chris O’Leary, Executive Vice-President and Chief Operating Officer, General Mills International and Robert Berendes, Head of Business Development, Syngenta International AG. The Steering Board consists of the following companies: Archer Daniels Midland Co. (ADM), The Coca-Cola Company, General Mills Inc., Kraft Foods Inc., METRO Group, Monsanto Company, Nestlé SA, Nike Inc., PepsiCo Inc., Sealed Air Corp., Syngenta International AG and Unilever.

Consumer Community of the World Economic Forum

As of 1 January 2012, the Forum’s Consumer Industry Partners are:

AGCO Corporation

Archer Daniels Midland Co. (ADM)

Best Buy Co. Inc.

Bunge Limited

Carrefour

The Coca-Cola Company

Dalian Zhangzidao Fishery Group Co. Ltd

Diageo Plc

DuPont

Ecolab Inc.

Bill & Melinda Gates Foundation

General Mills Inc.

Heineken International

Henkel AG & Co. KgaA

International Finance Corporation

Kingfisher Plc

Kirin Holdings Company Limited

Kraft Foods Inc.

Lawson Inc.

Louis Dreyfus Commodities

LVMH – Moët Hennessy Louis Vuitton

Marks & Spencer Plc

METRO Group

Monsanto Company

The Mosaic Company

Nestlé SA

Nike Inc.

The Olayan Group

PepsiCo Inc.

Royal Philips Electronics

SABMiller Plc

S. C. Johnson & Son Inc.

Sealed Air Corp.

Syngenta International AG

Technogym SPA

Tesco Plc

Unilever

Wal-Mart Stores Inc.

Wesfarmers Limited

Yara International ASA

Yum! Brands Inc.

Page 3: _IndustryVision 2012 Final Proof

3

Contents

Message from the World Economic 4Forum and the Consumer Community Steering Board

Message from the Co-Chairs of the 5 Governors Meeting for the Consumer Community 2012

Consumer Community Initiatives and Related Sessions

Consumer Community Vision 6

New Vision for Agriculture 8

Scaling Sustainable Consumption 10

Water Initiative 12Water Resources Group

Green Growth Partnerships 14

Healthy Living 16

Contact Information 18

Programme Overview of Consumer 19 Community Private Sessions

2012 Industry Vision for the Consumer Community

Page 4: _IndustryVision 2012 Final Proof

4 2012 Industry Vision for the Consumer Community

Message from the World Economic Forum and the Consumer Community Steering Board

Dear Colleagues:

On behalf of the World Economic Forum, we would like to welcome you to the Annual Meeting and the Governors Meeting for the Consumer Community, which will take place in January 2012 in Davos, Switzerland.

For over forty years, the Forum’s Annual Meeting has provided a unique platform for political, business, academic and other leaders of society to shape global, regional and industry agendas in order to catalyse solutions to global challenges for the coming year. Held in parallel to the official Forum Programme, the Governors Programme includes a series of private, peer-to-peer and action-oriented meetings shaped and led by you, the Forum’s Consumer Community. The Governors Programme enables you to work with leaders from governments, international organizations, academia and civil society on global issues of relevance to the Community.

At the Annual Meeting 2012, the World Economic Forum will seek to build new models for growth and employment, leadership and innovation, sustainability and resource management, and social and technological innovation. CEOs in the Consumer Community will also come together to put the finishing touches on a new Consumer Community Vision that we, the Steering Board, and the Forum team have developed together. This vision will provide a useful framework for prioritizing action areas and inspiring consumers and businesses to practice sustainable consumption.

In targeted sessions, participants will be invited to:

— Shape the Consumer Community’s desired outcomes using a new vision framework

— Renew existing sustainable consumption commitments and explore how these initiatives can gain more momentum through increased collaboration

— Share best practices for creating agricultural transformation; identify new solutions to continuing challenges in agricultural financing and technological innovation; agree on a 2012 agenda to increase the impact of public–private collaboration in agriculture

— Participate in the launch of a new, global, public–private Water Resources Group (WRG) entity and review WRG impact in current Partner countries

— Strengthen the role of business as producers and providers of goods and services in creating healthy lifestyles; identify opportunities for promoting healthy living through multistakeholder partnerships

— Discuss key elements of a sustainable workforce and engage in the Workplace Wellness Alliance

Our special thanks go to the Governors Meeting Co-Chairs, Irene B. Rosenfeld and Marc Bolland, for their support, encouragement and leadership during the preparation and delivery of this important event.

Sarita NayyarManaging Director, World Economic Forum USA

Chris O’LearyExecutive Vice-President and Chief Operating Officer, General Mills International; Co-Chair of the Consumer Community Steering Board

Robert BerendesHead of Business Development, Syngenta International AG; Co-Chair of the Consumer Community Steering Board

Page 5: _IndustryVision 2012 Final Proof

52012 Industry Vision for the Consumer Community

Dear Colleagues:

The Annual Meeting 2012 will convene under the theme “The Great Transformation: Shaping New Models.” This theme reflects the need to create new ways of thinking and acting to address the global issues that confront us in today’s world. New models, bold ideas and courage are required to ensure that this century improves the human condition. It will be up to industry leaders to define what the future should look like, to align stakeholders and to inspire their institutions to realize that vision.

In that context, we look forward to welcoming you to the Governors Meeting for the Consumer Community. The Community provides a platform to work with our peers from government, academia, civil society and business to find both business and social solutions to some of the world’s most pressing concerns.

At the 2012 Governors Meeting, we will come together to determine how to create and implement models of consumption that meet growing consumer needs, desires and expectations in sustainable ways. This work will frame the direction that our community takes over the next several years.

We look forward to “shaping new models” with you in Davos this coming January.

01: World Economic Forum on Africa 2011: plenary on “The Durban Agenda”

02: Annual Meeting 2011: visual from the session “Scenarios for an Increasingly Resource-scarce World”

03: World Economic Forum on Latin America 2011: participants in the session “Accelerating Sustainable Agricultural Growth in Latin America”

Irene B. RosenfeldChairman and Chief Executive Officer, Kraft Foods Inc.; Co-Chair of the Consumer Community Governors Meeting 2012

Marc BollandChief Executive, Marks & Spencer Plc; Co-Chair of the Consumer Community Governors Meeting 2012

Message from the Co-Chairs of the Governors Meeting for the Consumer Community 2012

Page 6: _IndustryVision 2012 Final Proof

6 2012 Industry Vision for the Consumer Community

In the summer of 2011, the Forum’s Consumer Community Team embarked on a strategic review to:

— Understand which elements of the Forum add the most value to Partners.

— Create a plan to engage emerging market voices in order to become a global community.

— Develop a vision that the Consumer Community can rally around.

The following is the executive summary of this work. The Governors Meeting on Thursday, January 26, 2012 will discuss the vision laid out below and further refine it to reflect desired outcomes from both the industry and consumer perspectives.

Consumer Community Value Proposition

The Consumer Community consists of Partner companies from the agriculture, food, beverage, retail and consumer goods industries that are committed to pursuing the World Economic Forum’s mission to improve the state of the world. This Community leverages the Forum’s multistakeholder, global and cross-industry reach to create positive impact on consumers’ lives through (Figure 1):

— Global, multistakeholder, cross-industry interaction.

— Objective insights and perspectives on consumer and industry issues.

— Actions that have positive impacts on both business and society.

The Forum is the only organization that brings together high-level peer exchange, global networks, joint action with key non-industry constituents (e.g., governments, civil society, non-profit

organizations, academia) and cross-industry access. In interviews, the Community identified access to the Forum’s multi-stakeholder network and cross-industry interaction as being of particular importance, as these elements create unique opportunities for our Partners.

Taking the Consumer Community Global

Current Partners raised the particular need to broaden the geographic and sectoral scope of the community. Ninety percent of the Forum’s Consumer Community is comprised of North American and European companies, highlighting a strong need to incorporate voices from other markets. The Community, via its Steering Board, has decided to focus on Latin America and Asia, which represent a majority of new middle class consumers and are generating significant business model innovations. Adding companies from these regions will allow the Community to gain new insights from emerging market business leaders while giving new Partners from those regions opportunities to showcase successes on the global stage.

Consumer Community Vision

As the Consumer Community grows its membership and global reach, a common, defining vision is imperative to unite Partners and provide direction as opportunities to create impact arise. Through Partner input and collaboration throughout the second half of 2011, a vision has been formulated to drive Community action in 2012 and beyond.

The vision was built top-down, driven by four key questions:

1. What is the Forum’s mission?

2. What trends will impact consumer industries in the short, medium and long term?

3. Which elements of five “mega-trends” are the Consumer Community best positioned to address?

4. How can the Consumer Community maximize its impact?

Consumer Community Vision

Figure 1: Consumer Community Value Proposition

Overall

Connect and facilitate global multi-stakeholder, cross-industry interactionGenerate objective insights and perspectives on consumer issuesActions positively impact humanityInsights and impacts benefit both business and society

Multistakeholder Build communities of Partners and constituents (governments, NGOs, consumers, academics) to drive ideation and action

Cross-industryPower players provide insight across sectors of the consumer industriesCross-industry groups provide access to a community of broad perspectives

GlobalInteraction spans borders, and drives concerted action on the global political and economic stage

Primary components

Glo

bal

Facilitate community interaction

to drive insight and impact

Engage public and private entities

Enable cross-sector,

cross-industry collaboration

Address multiregion

issues

Cro

ss-industry

Multistakeholder

Source: 2011 Partner interview findings; A.T. Kearney Analysis

Page 7: _IndustryVision 2012 Final Proof

The Consumer Community Vision was developed in conjunction with A.T. Kearney

72012 Industry Vision for the Consumer Community

Keeping the Forum’s mission to improve the state of the world in mind, five mega-trends were identified that will shape the state of the consumer industries in the coming decades. They are:

— Deteriorating health

— Threatened food supply

— Limited natural resources

— Global connectivity

— Demographic shifts

Through current initiatives, the Consumer Community is already addressing these mega-trends which is an encouraging signal that the Community is on the right track. When revieiwing the mega-trends and current initiatives, the Steering Board identified a common thread running through all of these: sustainable consumption.

While these mega-trends are worthy areas of focus, the work being done on them does not constitute a vision. As one of our Steering Board members said, “If we focus the vision on issues or trends, we will do good work on those issues. But we will not create new business models.” The Consumer Community has the capacity to create new business models and ways of approaching sustainability, but it also has the capacity to inspire companies and consumers to act more sustainably throughout the value chain. To that end, we have drafted a vision, represented by Figures 2 and 3 below, to capture the interplay between consumers, industry, sustainability and inspiration.

Consumer

RawmaterialsManufa

ctur

ing

Mar

ketingandretail

The Industry Lens (profitable growth)

The Consumer Lens (needs, desires, expectations)

Figure 3: The Vision Applied to the Value Chain (Draft for Discussion in Governors Meeting)

Vision: A world where consumers and businesses

inspire each other to act sustainably

Figure 2: Forum Mission, Community Vision (Draft for Discussion in Governors Meeting)

World Economic Forum Mission

To improve the state of the world by engaging leaders from all sectors of society to shape global, regional and industry agendas

Consumer Community Vision

A world where consumers and businesses inspire each other to act sustainably

Guiding Principles:

Collaboration Engagement Commitment Long term view

Sustainable consumption

Consumer needs, desires, expectations

Planetary limits

From Vision to Action

The first actions toward fulfilling this vision will be taken in the 2012 Governors Meeting. In this session, the Consumer Community’s CEOs will come together to:

— Determine the “desired outcomes” for each link in the value chain for industry and consumers.

— Identify ways that the Community can inspire consumers to act sustainably.

— Prioritize actions going forward.

This conversation will continue beyond Davos as Partners refine and prioritize the objectives of current and potential initiatives, and work together with the Forum to answer two key questions:

— What kinds of organizations will provide new and different perspectives, thus adding significant value to the conversations taking place?

— Through cross-industry, multi-stakeholder, global engagement, what measured success can the Community achieve over the next several years?

We look forward to discussing the vision and developing outcomes with you in Davos to shape the industry agenda for 2012 and beyond.

Taking the above vision statement and applying it to the value chain, it is important to look at the chain not just through the industry lens, but also through the consumer lens, as depicted in Figure 3.

Visible to the consumer

Out of consumer view

Page 8: _IndustryVision 2012 Final Proof

8 2012 Industry Vision for the Consumer Community

Partner Companies

New Vision for Agriculture

Background

The recent food security and economic crises have focused global attention on the urgent need to develop more sustainable agricultural systems in order to feed a growing population in an era of resource scarcity and climate change. While significant and sustainable gains in agricultural productivity can be achieved, realizing these gains will require an exceptional level of collaboration and a willingness to test new business and partnership approaches at the global, regional and national levels. The New Vision for Agriculture (NVA) initiative aims to share best practices and to demonstrate a new model for public–private collaboration that can engage and align private sector and market-based solutions with other stakeholder capacities to accelerate sustainable agricultural growth.

Key Achievements in 2011

— Launched a Roadmap for the Achievement of the New Vision for Agriculture. The Roadmap defines strategies for engaging the private sector and highlights the power of markets to drive the achievement of the NVA. It has proven to be an excellent tool for promoting collaboration among stakeholder networks.

— Initiated and developed public–private partnerships aiming to put the NVA into action at the country level. This included:

• Advancing existing agricultural partnerships in Tanzania and Vietnam.

• Launching new partnerships in Mexico and Indonesia.

• Creating a path-breaking regional partnership to assist African governments to strengthen public–private

investment and collaboration in agriculture. Over 100 leaders of all stakeholder sectors, including heads of state and international agencies, pledged their support to the Grow Africa Partnership; in its first year, Grow Africa is helping seven African countries (Tanzania, Mozambique, Ethiopia, Kenya, Rwanda, Ghana and Burkina Faso) to develop concrete investment plans and initiatives.

— Provided private-sector input to the G20 food security agenda. The group’s recommendations were incorporated into the G20 Agriculture Ministers’ Action Plan on Food Price Volatility and Agriculture, which also endorsed the Forum’s role in facilitating public–private dialogue on global food security, recommending that this become an ongoing feature of the G20 process.

— Developed a platform for sharing and scaling up new models of environmentally sustainable agriculture that reduce impacts on climate, water and biodiversity.

Goals for the 2012 Annual Meeting

— Showcase the tangible progress in sustainable agriculture that has been achieved through innovative public–private partnerships at the regional and national levels.

— Launch a report, Putting the New Vision for Agriculture into Action, explaining how to reach the goals of the NVA and describing best practices for creating transformational partnerships in agriculture.

— Strengthen the global commitment to public–private collaboration on agriculture, building momentum through the G20, Rio+20 and other platforms.

— Inspire other leaders to help put the NVA into action to feed the world sustainably.

Food security

Economic opportunity

Environmental sustainability

AGCO Corporation

Archer Daniels Midland Co. (ADM)

BASF

Bayer AG

Bunge Limited

The Coca-Cola Company

Diageo

DuPont

General Mills Inc.

Heineken International

Kraft Foods Inc.

Maersk

METRO Group

Monsanto Company

The Mosaic Company

Nestlé SA

PepsiCo Inc.

Rabobank

SABMiller Plc

Swiss Reinsurance Company

Syngenta International AG

Teck Resources Limited

Unilever

Vodaphone Group

Wal-Mart Stores Inc.

Yara International ASA

Page 9: _IndustryVision 2012 Final Proof

01: Paul Polman, Chief Executive Officer, Unilever, at the plenary “East Asian Solutions for Global Food Security”, World Economic Forum on East Asia 2011

92012 Industry Vision for the Consumer Community

Beyond Davos: Objectives for 2012

— At the global level, continue to collaborate with the G20 to make progress on global food security. Develop new opportunities around green growth for agriculture, leveraging the momentum around COP17 and Rio+20.

— At the regional level, work with the African Union, NEPAD and others to develop concrete plans and initiatives for private-sector investment in sustainable agriculture through the Grow Africa partnership.

— At the national level, continue supporting public–private collaboration in four Partner countries (Tanzania, Vietnam, Indonesia and Mexico) to realize sustainable agricultural growth.

— Share new insights, models and best practices to help stakeholders find the right collaborators and approaches to ensure shared success.

Private Sessions at Annual Meeting 2012

Session Session Description Expected Session Outcomes Key Champions

Grow Africa Partnership: Accelerating Investment in African Agriculture

Thursday 26 January18:45 – 19:45Congress Centre

In this session, Grow Africa leaders will assess progress and consider the next steps for the seven Partner countries. The group will discuss how to leverage key opportunities in 2012 for strengthening public–private investment in participating countries.

– Awareness raised of Grow Africa’s progress

– Opportunities identified for expanding public–private investment and collaboration in sustainable agricultural development in Partner countries

– Leaders of the Grow Africa Partnerships, including select African heads of state and international organizations, including the World Bank, IFAD, DFID, USAID

– CEOs of companies serving on the Grow Africa Task Force

Realizing a New Vision for Agriculture: an Action Agenda

Friday 27 January07:30 – 10:00 Congress Centre

Building on last year’s widely praised private meeting, the session will bring together over 100 global leaders, including CEOs, heads of state and leaders of international organizations, civil society and academia to share collaboration models, report on their progress and reaffirm their commitments to putting the NVA into action.

– Strengthened dedication and momentum to advance public–private collaboration for sustainable agricultural growth at global, regional and national levels

– New insights on key success factors for implementing transformative partnerships in agriculture to achieve the NVA

– Innovative solutions to address risks and challenges in the agricultural arena

– A shared commitment to accelerate progress in 2012, leveraging key global platforms such as the G20 and Rio+20 and Forum Regional Summits

– CEOs from the New Vision Project Board and the Consumer Community

– Industry leaders from IT/telecom, chemicals, finance, and logistics

– Heads of state and government and ministers from countries of strategic interest

– International organization leaders: FAO, IFAD, WFP, World Bank, IFC

– Civil society leaders: WWF, Oxfam, CARE, Technoserve, others

– Experts and academia: e.g. IFPRI, others

Agriculture as a Driver for Green Growth

Saturday 28 January08:00 – 10:00 World Food Programme Tent

The session will consider concrete actions to link agriculture-related investments, policies and measures to climate-compatible growth. This includes ensuring food security in a changing climate both through adaptation and mitigation.

– Opportunities identified for achieving environmental sustainability in agriculture through concrete investments

– Strategies for replicating and scaling up successful programmes

– Approaches for engaging ‘bottom-up’ innovation and action

– Roadmap to advance a concrete action agenda through 2012, including at Rio+20

– CEOs from the Consumer Community and other industry communities

– Key ministers from committed governments, such as South Africa, Vietnam, Tanzania, Norway

– International organization leaders: World Bank, FAO, IFAD

– Civil society leaders: WWF, Oxfam

– Experts and academia, e.g. IFPRI, others

Page 10: _IndustryVision 2012 Final Proof

10 2012 Industry Vision for the Consumer Community

Background

The benefit of shifting to a resource-efficient economy is large: experts predict that approximately US$1.9 trillion of economic output could be saved in 2030 alone. At the same time, the implications are serious: as much as 47% of company earnings could be lost due to environmental pressures by 2018 and the growing cost of key inputs could eat away company profits within a decade.

Although there are now many examples of companies that have put systems in place to ensure that the goods and services they produce can be delivered through the most efficient use of natural resources, these individual success stories do not yet add up to the level of change that is required. The need to establish sustainable models of consumption, while still ensuring business growth, is urgent and requires our immediate and full attention.

The World Economic Forum’s Scaling Sustainable Consumption initiative aims to help create the right enabling environment for businesses to use services and related products in ways that minimize the burden on natural resources and the environment. Achieving the necessary level of transformation will require collaboration along entire value chains and across multiple industries.

Key Achievements in 2011

— Identification of ten commitments such as waste reduction and sustainable sourcing of cotton, palm oil and forest supplies, where business can take the lead through concrete time-bound action in collaboration with NGOs and other companies along the value chain.

— An in-depth analysis of four key value chains – palm oil, cotton, e-waste and bio-plastics – to identify system-level barriers to scaling up leading practice solutions. The exploration of these specific systems led to a set of recommendations on immediate opportunities for public–private collaboration. These recommendations will be presented at the Annual Meeting.

— Interviews, workshops and sessions were conducted with business leaders and experts to gain insights on how to build enabling environments for businesses to achieve sustainable consumption. The chief issues explored were:

• The barriers and enablers to mainstreaming sustainable consumption, including the consumer, supply chain and policy environments.

• A quantification of the value at stake for business – and the economy as a whole – if sustainable consumption and more sustainable business practices can be achieved.

Goals for the 2012 Annual Meeting

— Present a new report, More with Less: Scaling Sustainable Consumption and Resource Efficiency, that will highlight the value at stake and make recommendations for collaboration across value chains, with governments, and most importantly, with consumers.

Scaling Sustainable Consumption

Partner Companies

Aegis Media

Agility

Alcoa

Best Buy Co. Inc.

BT Group Plc

DSM

DuPont

Edelman

Kraft Foods Inc.

Maersk

Marks & Spencer Plc

METRO Group

Nestlé SA

Nike Inc.

Novozymes A/S

Omnicom Group Inc.

PublicisLive

SABMiller Plc

SAP AG

SAS Institute Inc.

S. C. Johsnon & Son Inc.

Sealed Air Corp.

Tesco Plc

Unilever

Wal-Mart Stores Inc.

Wesfarmers Limited

WPP Plc

Page 11: _IndustryVision 2012 Final Proof

01: Takeshi Niinami, President and Chief Executive Officer, Lawson, during the meeting “Strengthening Global Supply Chains”, Annual Meeting of the New Champions 2011

02: India Economic Summit 2011: participants in the Sustainable Growth Summit’s Opening Plenary “Keeping India’s Competitive Edge for the Long Term”

112012 Industry Vision for the Consumer Community

Private Sessions at Annual Meeting 2012

Session Session Description Expected Session Outcomes Key Champions

Scaling Sustainable Consumption

Thursday 26 January08:00 – 10:00Hotel Grischa

Convene a highest-level coalition of CEOs and government representatives to develop a collaborative approach to addressing the issue of scale, business performance and sustainability outcomes.

– Awareness of the value of sustainable consumption

– Identification of joint actions needed to achieve sustainable consumption at speed and scale by business and government leaders

– Specific and targeted CEO commitments to extend existing initiatives and explore new public–private alliances to accelerate the achievement of sustainable consumption

– CEOs of project board companies

— Demonstrate the power of concerted corporate action along the value chain and across industries to create systemic change.

— Explore three approaches to achieving sustainable consumption:

• Collaboration across value chains to drive scale in the sustainable supply of key raw materials and commodities.

• CEO and government involvement in building public–private processes to unlock sustainable growth.

• Consumer engagement as citizens and Partners in helping companies achieve scale on sustainability.

Beyond Davos: Objectives for 2012

— Develop partnerships to test various pathways to sustainable consumption. The lead up to next year’s UN Conference on Sustainable Development (Rio+20) will be used to expand existing initiatives and promote new collaborations.

— Explore the role of consumer behaviour and digital technologies in achieving large-scale change across multiple industries such as the energy, mobility and consumer industries.

— Continue to engage with interested governments and international organizations (including the UN Secretary General’s High-Level Panel on Global Sustainability), companies and academia.

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12 2012 Industry Vision for the Consumer Community

Background

The water resource challenge is a serious economic issue for the governments of many developing and fast-growing countries. It also represents a risk to global economic stability. Studies suggest that, by 2030, global freshwater withdrawals will exceed the current capacity by over 40%, and close to four billion people will live in areas of extreme water stress.

The Water Resources Group (WRG) is a partnership that helps government water officials and other water sector specialists accelerate reforms that will ensure sustainable water resource management. WRG helps to change the political economy for water reform by involving new actors and analysing country needs in ways that are palatable to politicians and business leaders. WRG is an independent and non-political entity and offers no political, partisan or national nuance to its advice. It works closely with in-country water professionals and engages with its government clients promptly and only by invitation. WRG sets out clear and measurable biennial objectives. This approach has proven successful in transforming the water sector in Partner countries.

Key Achievements in 2011

— Upon request, WRG provided support to five governments – India, Jordan, Mexico, Mongolia and South Africa – for their water reform efforts. The Province of Shanxi also invited the WRG to form a partnership, which will begin early 2012. (See map on following page for details).

— Began creating a global catalogue of information on advisors, suppliers, projects and partnering arrangements, as well as technical and policy solutions for government use.

— WRG Partners took the decision to spin WRG off from its incubation phase in the Forum to create a groundbreaking global entity. This entity will be a public–private partnership hosted by the International Finance Corporation.

Water InitiativeWater Resources Group

Goals for the 2012 Annual Meeting

— Demonstrate the impact of WRG in the countries where it has been active.

— Introduce the global catalogue of good practices in water management that will support governments undertaking water reforms.

— Present the new global WRG entity as a public–private partnership hosted by the International Finance Corporation on behalf of the World Bank Group. Raise awareness of how the entity will work and of opportunities for the involvement of all stakeholders, including business, governments, international organizations, development agencies, civil society and academia.

Beyond Davos: Objectives for 2012

— Advance each country partnership and demonstrate ongoing success.

— Explore partnerships with governments who have expressed interest to collaborate with WRG.

— Develop a strong communications and outreach programme to i) build further awareness about WRG; ii) maintain momentum and international interest in the ongoing WRG process; iii) chart, record and share success stories; and iv) monitor progress at the national and global levels.

— Ensure the successful transition of the WRG to the new global entity.

Parallel to WRG activities, the Forum will embark on an exploratory workstream in 2012 to define the next frontier for the water agenda.

Cargill Inc

CH2M HILL

Cisco Systems Inc.

Diageo

Ecolab Inc.

Halcrow Group Ltd

Heineken International

Hindustan Construction Company Ltd

International Federation of Agricultural Producers

McKinsey & Company

The Mosaic Company

Nalco Company

Nestlé SA

Novozymes A/S

PepsiCo Inc.

Rio Tinto Group

SABMiller Plc

Standard Chartered Bank

Syngenta International AG

The Coca-Cola Company

The Dow Chemical Company

Unilever

Veolia Water

WorldWide Fund for Nature

Partner Companies

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132012 Industry Vision for the Consumer Community

Jordan The WRG analysed how Jordan can ensure the most economically and socially productive use of its scarce water resources. The analysis will be used to revise Jordan’s national water strategy. The Government of Jordan has invited the WRG to help set up a new National Water Council, a high-level cross-ministerial and multistakeholder planning body with a mandate to improve the planning and management of water resources in the country.

China (Province of Shanxi)

Government officials from the Shanxi Province in northwest China invited the WRG to develop a partnership focusing on irrigation efficiency, the protection of water resources and cropping technology. The next stage will involve work in the industrial (including energy and coal mining) and municipal sectors.

Mongolia The WRG conducted a pre-diagnostic on water issues in Mongolia, which identified three major challenges: urbanization in Ulaanbaatar; mining in the South Gobi area; and irrigation and livestock policies. A workshop in June brought together more than 120 domestic and international participants from the public, private and civil society sectors, as well as from international organizations, to explore these challenges and opportunities for overcoming them. The President of Mongolia and WRG committed to forming a Mongolian Water Alliance of key government entities, civil society representatives and private sector participants to carry forward this work in 2012.

Private Sessions at Annual Meeting 2012

Session Session Description Expected Session Outcomes Key Champions

Water Resources Group – Changing the Political Economy for Integrated Water Reform

Thursday 26 January07:30 – 10:15Derby Hotel

This private session will convene key global and regional WRG Partners, including government leaders from Partner countries, to present the progress and impact of WRG actions to date, to present the new global WRG entity and offer engagement opportunities.

– Demonstration of tangible results and impact by engaged country governments

– The new public–private WRG entity is presented and awareness is raised of its governance, operating model, funding and current Partners

– Stakeholder awareness of engagement opportunities

Private sectorNestlé SA, PepsiCo Inc., SABMiller Plc, The Coca-Cola Company

GovernmentIndia, Jordan, Mexico, South Africa, Mongolia, China

International organizations and development agenciesWorld Bank Group/International Finance Corporation, Swiss Agency for Development and Cooperation, United States Agency for International Development

Summary of WRG Country Engagement in 2011

Mexico WRG worked with the national water commission, CONAGUA, to promote a sustainable water pathway for Mexico that will prove robust in the face of climate change. The WRG analysis helped shape Mexico’s 2030 Water Agenda, launched by President Felipe Calderon in 2011. Going forward, the WRG will support CONAGUA in developing financial mechanisms to promote a sustainable water economy in Mexico.

IndiaIn the State of Karnataka, WRG analysed future agricultural water demand, limitations of the supply infrastructure and the practical options available for meeting future water requirements. The team developed a set of six interventions to transform water use in the state. Next, the WRG will work with stakeholders to design pilot projects and to complement the agricultural analysis with a diagnostic of the water economics of the industry and domestic sectors in order to provide a full picture. WRG also collaborated with the National Planning Commission of India to provide a detailed analysis of the institutional, legal, regulatory and capacity deficiencies in water-related sectors in India. The output of this work will be used as input to India’s 12th Five Year Plan.

South AfricaA partnership between the South Africa Department of Water Affairs (DWA) and the WRG is helping South Africa address three priorities: i) networks; ii) increasing the reuse of effluent and desalination; and iii) developing sustainable management of groundwater resources, particularly in rural areas. WRG will assist the DWA to develop sector strategies, identify potential pilot projects and take them forward through public–private-expert collaborations. The South Africa Strategic Water Partners Network, which includes three private sector-led working groups, has been formed to oversee the work.

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14 2012 Industry Vision for the Consumer Community

Alcatel-Lucent

Bank of America Merrill Lynch

Barclays Capital

Deutsche Bank

HSBC Holdings Plc

Morgan Stanley

Standard & Poor’s

Vestas Wind Systems

Wal-Mart Stores Inc.

Yara International ASA

Zurich Financial Services

Partner Companies

Goals of the 2012 Annual Meeting

— Launch a process to develop a blueprint for green infrastructure financing that will be announced at Mexico G20 and Rio+20 events.

— Kick off the GGP initiative in partnership with at least ten major financial, energy and consumer companies, host governments and donor governments.

— Explore business cases and financing models for climate-smart agriculture.

— Gain commitment from Partners and governments to document additional case studies on green growth.

Beyond Davos: Objectives for 2012

— Form a ‘coalition of the willing’ among development finance agencies, major banks and donor governments to coordinate and target funds that can leverage substantial private investment for green growth in emerging economies.

— Shape and inform important intergovernmental processes with lessons learned, positive models and future strategies, working with the Mexican G20 Summit, Rio+20, Clean Energy Ministerial and UNFCCC Green Climate Fund.

— Use the Forum’s Regional Summits to expand in-country activities to include additional countries in Latin America, Africa and Asia.

— Document financial innovations and tools and continue to collect and publish successful case studies to inform the international debate.

Background

The Green Growth Partnerships (GGP) initiative convenes expert practitioners with representatives from the public and private sectors to attract private financing for attractive low-carbon investments in emerging economies. While innovative business opportunities and models for green growth are already being developed, a step change is needed to put economies onto a low carbon growth trajectory. The GGP initiative is developing and testing new financial and policy models to transform government efforts to implement and scale up private investment in green growth. This is particularly important in the agricultural sector, which plays a significant role in wealth generation and employment in many emerging economies, where climate change is a particular challenge.

Key Achievements in 2011

— Launched the GGP in June 2011.

— Recognized by the United Nations Framework Convention on Climate Change as one of 10 Lighthouse Projects in its Momentum for Change Initiative for work to develop innovative tools for financing solar power in India, which leveraged UK government investment and new partnerships.

— Released a Green Growth report that compiled case studies from the renewable energy, water management and agricultural sectors to illustrate and inspire private sector investment in emerging economies.

— Organization of the Durban Series with the South African government that highlighted successful public–private partnerships that are delivering results in the energy, water and agriculture sectors.

Green Growth Partnerships

Transitioning to a green economy is the only way to go in order to ensure sustained growth.

Edna Molewa

—Minister of Water and Environmental Affairs, South Africa

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152012 Industry Vision for the Consumer Community

Private Sessions at Annual Meeting 2012

Session Session Description Expected Session Outcomes Key Champions

Emerging Economy Investment Opportunities: Directing Private Capital into Green Growth

27 January08.00 – 10.15Hotel Sunstar Park

This private session will look at the significant shifts in the global economic and financial landscapes and discuss practical mechanisms to catalyse a step change in private investment for green growth and ways in which the 2012 financial and economic agenda can help shape a sustainable recovery, capitalising on green jobs and growth. The session will involve CEOs and executives members of the Board of the World Economic Forum’s new Green Growth Partnerships Initiative, together with other financial, energy and agriculture companies in a dialogue with international organisations and government leaders involved in G20, green growth, climate change domestic and international processes.

– Exploration of new partnership models that can catalyse greater private investment in clean energy and agriculture

– Understanding of the roles of international public finance and private investment in green growth

– Awareness of the ‘game-changers that may arise over the next 12 months

– GGP board members from finance, energy and agriculture sectors

– High-level government representatives from India, Mexico, UK, South Africa, Kenya

– International development finance agencies

Agriculture as a Driver for Green Growth

28 January08:00 – 10:00 World Food Programme Tent

The session will consider concreteactions to link agriculture-relatedinvestments, policies and measures to climate-compatible growth. This includes ensuring food security in a changing climate both through adaptation and mitigation.

– Understanding of the policies, financial mechanisms and technologies required to make agriculture a driver for green growth

– Exploration of new collaborative models for implementing climate-smart agriculture in selected New Vision for Agriculture (NVA) countries

– Agreement on strategy to deliver climate-smart agriculture

– NVA Partners engaged in GGP: Wal-Mart Stores Inc. and Yara International ASA

– NVA country Partners with a strong interest in developing a climate-smart agriculture development strategy: Indonesia, Mexico, South Africa, Vietnam

01: Peter Brabeck-Letmathe, Chairman of the Board, Nestlé SA, during the session “Africa and the G20: An Update”, World Economic Forum on Africa 2011

02: Joergen Ole Haslestad, President and Chief Executive Officer, Yara International Asa, during the private session “Catalysing Sustainable Land Use and the Role of the Private Sector”, Annual Meeting 2011

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16 2012 Industry Vision for the Consumer Community

Healthy Living

Background

In 2008, a survey of business leaders from around the world – carried out by the World Economic Forum – identified non-communicable diseases (NCDs) as one of the leading threats to global economic growth. These diseases, which include cardiovascular diseases, diabetes, chronic respiratory diseases and cancer, cause 63% of deaths worldwide. Recognizing the significant impact of NCDs on the workforce and on industry competitiveness across borders, business leaders have been increasingly engaged in trying to prevent these diseases and in facilitating the adoption of healthier lifestyles by undertaking important wellness initiatives targeting employees as well as consumers.

In September 2011, the United Nations held a High-Level Meeting on NCDs, only the second summit on a health topic since the HIV/AIDS Summit in 2001. The Political Declaration adopted by Heads of State at the 2011 meeting is a historic milestone that calls for a new “whole-of-society” approach to the prevention and control of NCDs, with a particular emphasis on workplace wellness programmes to promote better health. Meeting this challenge will require new workplace models for addressing NCDs.

Key Achievements in 2011

— The impact of NCDs on society was quantified for the first time in a breakthrough study led by the Forum in collaboration with the Harvard School of Public Health. The estimates predicted a cumulative output loss of US$ 47 trillion over the next two decades due to cardiovascular disease, chronic respiratory disease, cancer, diabetes and mental health disease.

— The Forum convened a series of multistakeholder dialogues to coordinate private sector input into the UN High-Level Meeting on NCDs.

— In conjunction with the Pan American Health Organization (PAHO), the Forum launched Wellness Week in New York City. The event laid the foundation for multistake holder partnership throughout the Americas. Mayor Bloomberg committed to celebrating Wellness Week every year.

— Created the Pan-American Forum for Action Against Non-Communicable Diseases with PAHO. This multistakeholder platform aims to prevent three million deaths over then next ten years.

— The Forum emerged as a key strategic player in the international NCD arena, creating impactful and credible platforms for Partners and constituents across sectors.

Annual Meeting 2012 Objectives

— Identify new solutions and business models to empower healthy living.

— Enable sustainable business operations in an environment shaped by NCDs.

— Highlight the key role that the private sector will play in preventing NCDs and the public–private sector convergence needed to implement actions following the UN High-Level Meeting on NCDs.

— Present a vision for the future of the Workplace Wellness Alliance, including greater visibility and a long-term plan for optimal sustainability and impact.

Partners on Leadership Board

Accretive Health Aetna Inc. BT Group PlcDiscovery HoldingsGE HealthcareHumana Inc. Johnson & JohnsonKraft Foods Inc.Merck & Co. Inc. Nestlé SANike Inc.Novartis AGNovo NordiskPepsiCo Inc.SAS InstituteSealed Air Corp.Technogym SPATata Consultancy ServicesThe Boston Consulting

GroupThe Coca-Cola CompanyTupperware BrandsUnilever

AstraZeneca PlcAura Biosciences Inc.BPCargill IncorporatedCleveland ClinicDiageo PlcGeneral Mills Inc.Heineken InternationalMaterials Distribution

Agency (MDA)Medtronic Inc.MidMark CorporationPfizer Inc.Qiagen NVRight ManagementSABMiller PlcSingapore Health

Promotion BoardUnitedHealth Group Inc.US Preventive Medicine

Inc.Wellness Corporate

Solutions

Core Members

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172012 Industry Vision for the Consumer Community

Beyond Davos: Objectives for 2012

— Catalyse high-level dialogues in the NCD arena and scope a potential cross-industry action/partnership pilot project to test healthy living concepts.

— Work with Partners to develop and implement a long-term strategy to deliver additional value through the Workplace Wellness Alliance.

— Increase stakeholder knowledge via thought pieces on multi-stakeholder partnerships, data on consumer trends and the economics of NCDs and healthy living.

From Burden to “Best Buys”: Reducing the Economic Impact of Non-Communicable Diseases in Low- and Middle-Income Countries

The Global Economic Burden of Non-communicable Diseases

A report by the World Economic Forum and the Harvard School of Public Health

September 2011

The Workplace Wellness Alliance Delivering on Health and Productivity

In collaboration with The Boston Consulting Group

Reports and Resources

The Workplace Wellness Alliance – Delivering on Health and Productivity

http://www.weforum.org/issues/workplace-wellness-alliance

Economic Study on the Global Burden of NCDs and Mental Health to Business and Society

http://www.weforum.org/issues/chronic-diseases-and-well-being

From Burden to “Best Buys”: Reducing the Economic Impact of Non-Communicable Diseases in Low- and Middle-Income Countries

http://www.weforum.org/issues/chronic-diseases-and-well-being

Online Economic Model to Calculate the Return on Investment of Workplace Wellness Model

http://wellness.weforum.org

Workplace Wellness Alliance Web Portal

http://alliance.weforum.org

For additional resources, visit the Forum Health Website: www.weforum.org/health

Private Sessions at Annual Meeting 2012

Session Session Description Expected Session Outcomes Key Champions

The Company of the Future: the Sustainable Workforce

Friday 27 January 12.30 – 14.00 Waldhuus Hotel

This session will discuss the concept of a sustainable workforce and take the conversation about workplace wellness to the next level to include topics such as talent management and ageing, considering the steps that can be taken to achieve such a model and the likely outcomes for companies.

– Understanding of what is needed to achieve workplace wellness and a sustainable workforce

– High-level agreement on next steps to make the Wellness Alliance an on-going initiative

– CEOs of food and beverage companies

– CEOs of healthcare companies

NCD Challenge: Transformative Action for Greater Impact

Saturday 28 January 08.00 – 10.00 Hotel Post

This session will discuss how to capitalize on the upcoming milestones to make greater progress on prevention and control of NCDs.

In-depth dialogue between cross-industry governors and UN leaders will identify opportunities and successful mechanisms for multistakeholder collaboration on NCDs.

– Cross-sector bridges and multistakeholder collaborations for impactful action on NCDs

– Clarity around the role of business as employers and providers of goods and services that contribute to creating healthy lifestyles

– Understanding of how to create successful, multistakeholder, country-based actions

– Heads of UN Agencies (WHO/UNDP)

– European Commission– CEOs of food and beverage

companies– CEOs of healthcare companies

01: World Economic Forum on Latin America 2011: Otaliba Libano Morais, representative of the Ministry of Health of Brazil, and Enrique Gil, representative of the Pan American Health Organization at the session “Creating Healthier Environments and Lifestyles: Catalysing Concrete Actions toward the UN Summit on Non-Communicable Diseases”

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18 2012 Industry Vision for the Consumer Community

Contact Information

Sarita NayyarManaging Director, Head of Consumer IndustriesWorld Economic Forum USATel.: +1 212 703 2317E-mail: [email protected]

Tiffany WestDirector, Head of Agriculture, Food and Beverage IndustriesTel.: +1 212 703 2389E-mail: [email protected]

Belinda BonazziAssociate Director, Head of Retail and Consumer Goods IndustriesTel.: +1 212 703 2348E-mail: [email protected]

Lisa SweetCommunity Manager, Consumer IndustriesTel.: +41 22 869 3624E-mail: [email protected]

Sarah ShellabyCommunity Associate, Consumer IndustriesTel.: +1 212 703 2365E-mail: [email protected]

Cristina Ferrer Team Coordinator, Consumer IndustriesTel.: +41 22 869 3748E-mail: [email protected]

Eva FowlerTeam Coordinator, Consumer Industries Community Associate, Consumer IndustriesTel.: +1 212 703 6619E-mail: [email protected]

World Economic Forum

91-93 route de la Capite

CH-1223 Cologny/Geneva

Switzerland

Tel.: +41 (0)22 869 1212

Fax: +41 (0)22 786 2744

E-mail: [email protected]

www.weforum.org

© 2012 World Economic Forum. All rights reserved.

No part of this publication may be reproduced or

transmitted in any form or by any means, including

photocopying and recording, or by any information

storage and retrieval system.

Initiative Leads

Lisa DreierDirector, Food Security and Development InitiativesTel.: +1 212 703 2349E-mail: [email protected]

Arne CartridgeSpecial Advisor, Global Partnerships for Food SecurityTel.: +41 22 869 3601E-mail: [email protected]

Caroline de La MaisonneuveProject Manager, New Vision for AgricultureTel.: +41 22 869 13653E-mail: [email protected]

Tania TanvirProject Manager, New Vision for AgricultureTel.: +1 212 703 2380E-mail: [email protected]

Dominic WaughrayHead of Environmental InitiativesTel.: +41 22 869 1200E-mail: [email protected]

Randall KrantzDirector, Head of Sustainability InitiativeTel.: +41 22 869 1214E-mail: [email protected]

Marie Lam-FrendoProject Manager, Sustainability InitiativeTel.: +41 22 869 3693E-mail: [email protected]

Alex MungAssociate Director, Head of Water InitiativeTel.: +41 22 869 3705E-mail: [email protected]

Thomas KerrDirector, Head of Climate Change InitiativesTel.: +41 22 869 3792E-mail: [email protected]

Eva Jané-LlopisHead, Chronic Disease and Well-Being InitiativesTel.: +41 22 869 3702E-mail: [email protected]

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World Economic Forum91-93 route de la CapiteCH-1223 Cologny/GenevaSwitzerland

Tel +41 (0) 22 869 1212Fax +41 (0) 22 786 2744

[email protected]

The World Economic Forum is an independent international organization committed to improving the state of the world by engaging business, political, academic and other leaders of society to shape global, regional and industry agendas.

Incorporated as a not-for-profit foundation in 1971 and headquartered in Geneva, Switzerland, the Forum is tied to no political, partisan or national interests