From Life Cycle Thinking to a Sustainable Value Chain A business - PowerPoint PPT Presentation

DEDICATED TO MAKING A DIFFERENCE From Life Cycle Thinking to a Sustainable Value Chain A business organisation’s perspective 3rd International Conference on Life Cycle Management From Analysis to Implementation Zurich, 27 - 29 August 2007 J ü rg Gerber, COO, WBCSD, Geneva 1 LCM Zurich WBCSD 28 Aug 07 Ge 1

Agenda � WBCSD Work Program and 2 Examples � WBCSD Eco-Efficiency � Sustainable Consumption and Production � WBCSD Sustainable Value Chain 2 LCM Zurich WBCSD 28 Aug 07 Ge 2

WBCSD Work Program – the starting point Coalition of 200 leading companies � Total turnover: USD 5,200 billion � Market capitalization = USD 6,000 billion � Total member company employees = 12 million � Global outreach 3 billion customers per day use products and services from WBCSD member companies Water EE in Buildings Forest Prod. Supply Chain Mining Cement Eco Patents Mobility Commons Electricity Utilities WBCSD objectives include: Chemicals Tires � Business Leadership � Policy Development � The Business Case � Regional Network Best Practice � Global Outreach OSCE WBCSD Prague 22 May 07 Ge 3 LCM Zurich WBCSD 28 Aug 07 Ge 3

Geographic Overview of WBCSD Members Europe-EU North America (incl. Mexico) Asia (Japan & South Korea) Asia EU 67 Asia - Other other 10 Europe - Other Latin America Japan & South Central & Eastern Europe Korea 32 Oceania Africa North America Middle East (incl. Mexico) 49 EU, NA and Japan & Korea : 77% Regional Network: a counterbalance 4 LCM Zurich WBCSD 28 Aug 07 Ge 4

Member Companies by Sector Utilities & Power 17 Mining & Metals 16 Oil & Gas 16 Cement 13 Chemicals 13 Consumer Goods 13 Forestry & Paper products 13 Banks & Insurance 12 Services 12 Auto 11 Tires 11 9 IT & Telecoms 7 Construction Engineering 7 Food & Beverages 7 4 Healthcare 3 Water Services 2 Media 2 Retail Airlines 1 No sector represents more than 17 members 5 LCM Zurich WBCSD 28 Aug 07 Ge 5

WBCSD Regional Network (60 councils) The Excel NHO-Norway Vernadsky Foundation Russia Partnership Canada Danisch CSBD BCSD Czech Republic BCSD UK CGLI USA/Canada BCSD Hungary Econsense Germany BCSD Mongolia EPE France BCSD Austria Keidanren Japan FE-BCSD Spain US BCSD BCSD Kazakhstan BCSD Turkey BCSD Portugal BCSD Korea APEQUE BCSD Gulf of Mexico AEEC BCSD China BCSD Taiwan BCSD Pakistan Algeria BCSD Mexico Egypt CII BEC Hong Kong BCSD Honduras BCSD Guatemala UNIRSE-Nicaragua BCSD India PBE Philippines BCSD BCSD El Salvador AED Costa Rica Nigeria BCSD Thailand IntegraRSE Panama BCSD BCSD Venezuela BCSD Colombia Sri Lanka BCSD Malaysia BCSD Ecuador BCSD Brazil Perú 2021 BCA BCSD Zimbabwe BCSD Bolivia Australia WASIG FEMA Mozambique BCSD Paraguay W.Australia DERES Uruguay AcciónRSE BCSD Argentina NBI South Africa BCSD New Zealand Chile 6 LCM Zurich WBCSD 28 Aug 07 Ge 6

Example WBCSD Water Project 1. Water Facts and Trends 2. Collaborative Actions for 3. Water Scenarios Sustainable water mgt 2004 2006 2025 2006-2008 Complementary Workstreams 1. Water Metrics / Footprint 2. Using Water Scenarios (and other tools) 7 LCM Zurich WBCSD 28 Aug 07 Ge 7

WBCSD Global Water Scenarios to 2025 Which legacies need to be un- What could be a governance Who should have a seat at Questions locked to enable more sustai- Structure for a more holistic the table for fair water for water management and what nable water practices and discussions allocation and why? could trigger it being set up? more appropriate solutions? 8 LCM Zurich WBCSD 28 Aug 07 Ge 8

Call to action on water - key parameters confirmed by WEF 2007 AM workshops � Footprint � Awareness on company / supply chain dimensions � Quantity and Quality � Water basin / catchment approach, IWRM � Regulation and Governance � Mobilise communities, RDB‘s etc Implementation processes for improvements 9 LCM Zurich WBCSD 28 Aug 07 Ge 9

Example WBCSD Energy & Climate The efforts builds upon the storyline and messages of our previous publications as it explores policy ideas and concepts for the transition to a low-carbon economy . Its primary goal is to identify and explore policy options to sustain economic growth while transforming the ways we access, produce and consume energy. It is not meant to lay out a set of ‘must do’ policy approaches . 10 LCM Zurich WBCSD 28 Aug 07 Ge 10

Five “Megatrends” in our energy system Oil Biomass Gas Coal Nuclear Renewables Primary Energy Power Direct combustion Generation Industry and Liquids Manufacturing Energy Energy Energy Final Energy Mobility Buildings Consumer Choices 11 LCM Zurich WBCSD 28 Aug 07 Ge 11

WBCSD work on eco-efficiency � 1992: WBCSD created the concept of Eco- efficiency Eco-efficiency is achieved by the delivery of competitively-priced goods and services that satisfy human needs and bring quality of life, while progressively reducing ecological impacts and resource intensity throughout the life cycle to a level in line with the earth’s carrying capacity. 12 LCM Zurich WBCSD 28 Aug 07 Ge 12

WBCSD work on eco-efficiency � WBCSD defined the three broad objectives of eco-efficiency: � Reducing the consumption of resources, � Reducing the impact on nature, � Increasing product and service value. � WBCSD also described the four strands of eco-efficiency opportunities for business: � Re-engineer business processes, � Re-valorise by-products, � Re-design products and services, � Re-think business markets. 13 LCM Zurich WBCSD 28 Aug 07 Ge 13

WBCSD work on eco-efficiency � 1992-1997 Eco-efficiency � 1995-1997 Environmental Performance & Shareholder Value � 1997 Eco-efficiency: the business link to SD � 1997 Signals of change 14 LCM Zurich WBCSD 28 Aug 07 Ge 14

WBCSD work on eco-efficiency � 1996-2002 Sustainability through the Market � 1997-2000 Eco-efficiency Metrics & Reporting � 1998-2000 European Eco-efficiency Initiative � 2000-2002 Sustainable Development Reporting 15 LCM Zurich WBCSD 28 Aug 07 Ge 15

WBCSD work on eco-efficiency � 2001 The Business Case for Sustainable Development � 2002 Walking the Talk � 2005 Eco-efficiency – Learning Module � 2006 The role of Business inTomorrow’s society 16 LCM Zurich WBCSD 28 Aug 07 Ge 16

Principle approach � R � R educes material intensity � E � E nergy intensity is minimized � D � D ispersion of toxic substances is reduced � U � U ndertakes recycling � C � C apitalizes on use of renewables � E � E xtends product durability � S � S ervice intensity is increased 17 LCM Zurich WBCSD 28 Aug 07 Ge 17

WBCSD work on eco-efficiency � WBCSD defined a framework to measure progress towards economic and environmental sustainability. � This framework provides a common set of definitions, principles and indicators (used for the successive updates of the Global Reporting Initiative guidelines). 18 LCM Zurich WBCSD 28 Aug 07 Ge 18

Steps to measuring and reporting calculate eco- efficiency ratio communicate performance, set new targets select relevant supplemental collect data indicators understand eco-efficiency concept and core indicators 19 LCM Zurich WBCSD 28 Aug 07 Ge 19

Eco-efficiency indicators framework Category Aspects Indicators Multiply broad area of General information Specific measurement environmental related to category of aspect (the "how") influence or business (the "what") e.g. tonnes material value e.g. material consumed, tonnes CO 2 e.g. environmental consumption, waste emitted influence in creation of output product 20 LCM Zurich WBCSD 28 Aug 07 Ge 20

Eco-efficiency indicators framework Supplemental Indicators Leading Category Aspects Indicators Core Indicators Company Indicators Highly relevant and Will look different meaningful on global depending on scale to virtually all sector, region, etc. businesses e.g. VOC to air, PHM e.g. energy consumption, to surface water GHG emissions 21 LCM Zurich WBCSD 28 Aug 07 Ge www.sdportal.org 21

WBCSD work on eco-efficiency � There has been a strong commitment of WBCSD’members over 13 years on this Eco-Efficiency agenda. � More than 30 companies were engaged in the various working groups. � More than 50 cases are available on the wbcsd.org website referring to Eco- Efficiency. 22 LCM Zurich WBCSD 28 Aug 07 Ge 22

Sustainable Consumption and Production � Marrakech Process was launched in the Johannesburg Plan of Implementation for actions at all levels to: “ Encourage and promote the development of a 10-year frameworks of programmes in support of regional and national initiatives to accelerate the shift towards sustainable consumption and production to promote social and economic development within the carrying capacity of ecosystems by addressing and, where appropriate, de-linking economic growth and environmental degradation through improving efficiency and sustainability in the use of resources and production processes and reducing resource degradation, pollution and waste.” 23 LCM Zurich WBCSD 28 Aug 07 Ge 23