From Awareness to Action
2005Annual review
Table of Contents
Chairman’s Message 2 President’s Message 3 About the WBCSD 6 Tomorrow’s Leaders - Business in tomorrow’s society 8
Focus Areas Energy & Climate 10 Development 14 Business Role 18
Council Projects Energy Efficiency in Buildings 22 Water and Sustainable Development 23
Sector Projects Sustainable Forest Products Industry 24 Cement Sustainability Initiative 25 Mining, Minerals and Sustainable Development 26 Sustainable Mobility 27 Electricity Utilities 28 Tire Sector 29 The Chemical Sector Project 30
Initiatives Sustainable Health Systems 31 Sustaining Ecosystems and Ecosystem Services 32
Learning by Sharing 33 The Regional Network 34 Advocacy & Communications 38 Partnerships and Alliances 40 Membership & Governance 42 Executive Committee 43 Member Companies and Council Members 44 WBCSD Personnel 47 2005 Publications 48
1 Chairman’s Message
Before being appointed chairman of the World Business Council for Sustainable Development, I was closely involved with its work as a co-chair of the Energy and Climate project and the Cement Sustainability Initiative. My two years as WBCSD chairman have only reinforced my long-held admiration for the extraordinary dedication of our members.
In 2005 I was fortunate to have been involved in the decision-making process that created the new WBCSD strategy. This new strategy comes at an important time for the council, and I believe that we now have a solid foundation on which to provide solutions and engage new partners so that we can better contribute to the global debate. As we move from strategy to action, we see stronger cross-fertilization between WBCSD programs and greater CEO involvement.
The WBCSD has come to exemplify the business case for sustainable development. We are a unique organization in terms of the issues we address and the broad cross-section of our membership. Being solution- driven and strong on implementation, we focus on issues where business can truly make a difference. Furthermore, we have been instrumental in showing that business is part of the solution.
I hope more companies will realize that a corporate focus on sustainable development improves corporate results and join us in our efforts. Companies must put their principles into operation, and demonstrate that they are doing this. They must also have the courage to come out of their comfort zones and provide solutions to fundamental issues such as poverty alleviation.
We need to be open to sound economic instruments for internalizing environmental or societal costs. By coming together under umbrellas like the WBCSD, business can share common dilemmas and come up with common solutions.
The main challenge faced by business is the lack of a global and efficient institutional framework to establish the rules of the sustainable development game. On climate change, for example, industry is ready to discuss worldwide actions, but the necessary framework and right set of actors have been missing. The initiative of the G8 under the British presidency and its follow-up until 2008 may provide an opportunity to create such a framework.
The keys to success will remain the same in the future. Our new chairman will need to work with members and then focus the energy of the organization in a few areas where we can make a difference. We must think harder about how we as businesses can help governments and NGOs to find solutions to global dilemmas.
2 Bertrand Collomb President’s Message
2005 was not only successful for the WBCSD, but it marked a major turning point in our operations. When the council began its work more than 10 years ago, it seemed sufficient, and difficult enough, for business to engage in the issues of sustainable development and to find ways to bring these issues into corporate decision-making.
We pursued eco-efficiency – doing more with less – and we worked to decide the nature of our companies’ responsibilities toward society and the natural environment. These were all necessary efforts.
However, as our chairman noted in his message, we find ourselves in a world that lacks the institutional frameworks needed to make sustainable development a reality. This same world is more than ever before beset by what might be called “sustainability issues”: widespread poverty, climate change, pathogens in the environment, loss of species and the degrading of ecosystems and their services.
Examining the council’s strategy, our members boldly decided that it is no longer enough to study issues, engage with other stakeholders, raise awareness and spread information. All these are important, and the council will continue these activities. But we must now work with new partners to develop and advocate solutions and to manage issues. We need to help put in place framework conditions that will allow business to play an ever- more effective role in managing natural resources and alleviating poverty.
We can advocate better if we focus better. So we have grouped the council’s efforts into three focus areas: Energy and Climate, Development, and The Role of Business. Each has a core team of dedicated corporate leaders forming and directing the area’s work.
As our members’ activities are increasingly shaped by sustainable development issues, understanding and managing these issues will be a key factor in maintaining the business license to operate, innovate and grow. Companies that understand the challenges will be able to reduce risk and define new business opportunities. Business models must be made robust enough to integrate the constraints and opportunities to come.
In 2005, GlobeScan predicted that the WBCSD would play a major role in advancing sustainable development globally. The fact that our membership is growing is evidence that increasing numbers of companies believe this and see a future in shaping strategies to help encourage sustainable human progress. The increasing media coverage we receive suggests that others also understand that business is an important provider of solutions.
General Electric, a new and important member in terms of size, hopes to grow its business in environmentally friendly technologies from 10 billion 3 12.1million employees
dollars today to 20 billion dollars by 2010. The council’s influence is becoming ever more global, and we have recently welcomed new members from Pakistan and Saudi Arabia. Overall, we estimate that our members employ 12.1 million people and reach about half of the world’s population with a product or service every day.
Looking forward, I believe we must recast the debate away from the perceived conflict between shareholder value and corporate social responsibility. The fundamental role of business will always be the creation of value for its owners, employees, customers and society as a whole. However, the boundaries that divide the role of business from those of governments and NGOs are blurring and continually shifting. As the council’s Tomorrow’s Leaders group reported, our major contribution to society will come through our core business, rather than through philanthropic programs. If action to address global issues such as poverty is to be substantial and sustainable, it must also be profitable. We need new partners to create new business models, and to build partnerships we must build trust. NGOs have public trust but lack resources; business and governments have resources but often lack public trust.
With new partners we can work together to better manage globalization. It has been a strong driver for economic growth that has lifted many people out of poverty. However, the wealth has not been evenly divided between countries or inside countries, and the gulf between the haves and have-nots is growing. A special problem for both governments and business is the shift in investments from traditional industrialized countries to fast-growing economies, putting the spotlight on unemployment and job creation issues.
We can better secure natural resources and ecosystems in the face of this rapid globalization and economic growth. Population growth and the ambitions of billions of people to improve their situation are key drivers behind the growth in resource use and increasing pressure on ecosystems. To progress, we need to integrate externalities like the value of ecosystems 4 into the pricing of the resources in our market system. we estimate that our members employ 12.1 million people
We welcome the fact that many NGOs understand the power of markets, and that many have concluded that the changes needed to create a sustainable world will not come solely from governments. We must work together to create markets that support sustainable development.
Our members and our many partners have helped us in our work throughout 2005. Our founder and Honorary Chairman Stephan Schmidheiny and founding member Erling Lorentzen together sponsored the writing of a history of the council, so we can better understand our mistakes, our successes and the foundation upon which we are building.
I would like to thank the eight WBCSD council members who accepted my challenge to help formulate a vision of business action for the future. This Tomorrow’s Leaders group has provided an important report, From Challenge to Opportunity: The role of business in tomorrow’s society. I trust that it will stimulate dialogue about the role that leading businesses will play in tomorrow’s society. (The group’s manifesto can be found on page 8.)
A special thanks also goes to WBCSD staff who have worked hard and efficiently in this crucial change of course by the council.
As we move from awareness to action, I envisage strong leadership from our members and the companies they lead. I am confident that the WBCSD and its members can and will make a major contribution to the shaping of efficient future societies. In doing so, we will also enhance the trust in business and the support for business’s main purpose: to generate wealth, jobs, innovations and investments. Business cannot succeed in a society that fails.
Björn Stigson 5 360o Sustainable Development
About the WBCSD
The council’s objectives are: The WBCSD brings together leading international companies that share a • To be a leading business advocate commitment to the principles of sustainable development via economic on sustainable development; growth, ecological balance and social progress. Our members are • To participate in policy represented in most major business sectors, come from all regions of the development to create the right framework conditions for business world, and benefit from a continuously expanding WBCSD global network to make an effective contribution of national and regional business councils and partner organizations to sustainable human progress; representing a large and diversified group of business leaders.
• To develop and promote the business case for sustainable The WBCSD and its members believe that the pursuit of sustainable development; development helps companies prosper and maintain their long-term • To demonstrate the business license to operate, innovate and grow. Business is seen as a key provider of contribution to sustainable solutions and is increasingly expected to contribute to sustainability. Thus development solutions and share leading edge practices among business has both an opportunity and responsibility to demonstrate that it members; can contribute to functioning societies.
• To contribute to a sustainable future for developing nations and In 2005 our members approved a 10-year strategy (Strategy 2015) shifting nations in transition. our focus from engagement and awareness creation to advocacy and issues management.
Work Program
The WBCSD work program originally consisted of two types of projects: those in which all members could participate and those driven by and aimed at various sectors of business. However, to advocate and manage issues, we must focus. So in 2005, the WBCSD organized much of its work into three focus areas chosen by the members. This focus area structure will help us to become more swift and agile in our responses to issues in the public debate, and to more easily form the bases for positions, messages and action.
Each focus area consists of a focus area core team (FACT), working groups 6 and workstreams. FACTs, typically consisting of about a dozen CEOs, guide the focus areas The three focus areas are: and act as policy advisory boards. They meet at least once a year face-to- • Energy & Climate, which helps businesses participate in the face and two to three times in telephone conferences. Each focus area is debate on energy and climate led by at least two co-chairs. change in a knowledgeable and responsible manner;
What we call the “working group” is the engine room of each focus area, • Development, which promotes the member company liaison delegates and outside experts who develop business solutions to encourage sustainable economic and social the intellectual capital and provide content (cases, expertise, opinions), development; create deliverables, shape and engage in advocacy, and take messages • The Business Role, which explores back to the companies. Each focus area has different workstreams what business’s roles in society can examining different issues in the area. and should be, in order to help companies respond more effectively to society’s expectations. Individual projects remain, and most are being connected to the focus areas. Council Projects, funded by the WBCSD, cover issues of broad relevance to the membership that are better positioned as separate projects rather than a focus area workstream. They are time-bound projects with defined phases and deliverables. Current Council Projects include Energy Efficiency in Buildings, and Water and Sustainable Development.
Sector Projects cover specific industry sectors under the WBCSD brand. They are managed and funded by the participating members and other The following diagram summarizes the parties. The WBCSD supports these projects with project management, WBCSD work program: experience sharing, management oversight and quality control, advocacy and administration; and it establishes connections to other WBCSD Focus areas activities. Current Sector Projects include Sustainable Forest Products • Energy & Climate • Development Industry; Mining, Minerals and Sustainable Development; Cement • The Business Role Sustainability Initiative; Sustainable Mobility; and Electricity Utilities. Two Issues Management new sector projects developed in 2005 and which will scale up their Tomorrow's society / The role of business activities in 2006 bring together companies from the chemicals and Projects Initiatives Council • Health Systems tires sectors. Business • Water • Ecosystems Agenda • Energy in Buildings • Tomorrow’s Leaders Sector Public Initiatives are shorter activities by a limited number of members. They • Forest Products Policy Agenda support faster and more flexible responses to emerging issues. Initiatives • Mining • Cement are funded in the same way as council projects. If there is a need for more • Mobility • Electricity Utilities extensive activity on a topic, initiatives will migrate into focus areas or projects. Current Initiatives include Sustaining Ecosystems and Ecosystem Business license to operate innovate & grow Services. The Tomorrow’s Leaders and Sustainable Health Systems Advocacy initiatives draw to a close at the beginning of 2006. 7 Tomorrow’s Leaders
Business in tomorrow’s society
Over 2005, eight council members, working as a group called the Tomorrow’s Leaders, reflected on the major global challenges facing both business and society, and on the role of business in helping society manage those challenges. The “manifesto” from their report follows.
A Manifesto for Tomorrow’s Global Business
We believe that the fundamental purpose of business is to provide continually improving goods and services for increasing numbers of people at prices that they can afford. We believe that this statement of our purpose unites the interests of business and society at the deepest level. It makes clear that we prosper by helping society to prosper, by innovating to create new goods and services and by reaching out to new customers.
We believe that the leading global companies of 2020 will be those that provide goods and services and reach new customers in ways that address the world’s major challenges – including poverty, climate change, resource depletion, globalization, and demographic shifts.
If action to address such issues is to be substantial and sustainable, it must also be profitable. Our major contribution to society will therefore come through our core business, rather than through our philanthropic programs. We see shareholder value as a measure of how successfully we deliver value to society, rather than as an end in itself.
In aligning our interests with the needs of society, we follow a model “Business leaders need to speak out now about their role in driving based on our own experience and analysis of successful business strategies: progress in society. For too long we • We will develop an understanding of how global issues such as have allowed people to think that business is interested in nothing other poverty, the environment, demographic change and globalization than profit, when in fact we see the affect our individual companies and sectors. purpose of business much more • We will use our understanding of the significance of these signals to widely.” search for business opportunities that help to address them. Paul Polman • We will develop our core business strategies to align them with the Group President, Western Europe Procter & Gamble opportunities that we have identified. 8 • We will incorporate long-term measures into our definition of success, “Part of the bargain, the social contract targeting profitability that is sustainable, supported by a positive record which allows companies to be as large as they are, is that they become in social, environmental and employment areas. engaged in the challenges the world faces, rather than dismissing them as In each of these phases, we will engage broadly with a range of groups someone else’s problem.” and organizations, including governments, international bodies, customers, John Manzoni employees, partners, academics, NGOs, civil society institutions, and the Chief Executive, Refining & Marketing BP general public.
We will then use our experiences to move to new starting points for understanding and action. If we can deploy this model with the full creativity, focus and resources of business, we believe we will significantly contribute to resolving the major issues that society faces. • We will develop technologies and products that enable the world to address its environmental and social challenges. • We will help to create new businesses, new markets, new livelihoods, and new customers among the three billion people who live in poverty today and the three billion who will be added to the world’s population in the next 50 years. • We will help to set global benchmarks and global frameworks that create universal standards and raise the bar for all companies. • We will operate and compete successfully in a range of countries, markets, and cultures, maintaining consistent global standards while acting as part of the local community. • We will responsibly manage the challenge of moving assets and activities A model for tomorrow’s global business between regions to make the most of the benefits of global scale. • We will act responsibly in addressing the issues raised by ageing populations understand significance of societal signals for company and sector in the developed world and growing populations in the developing world. • We will attract new generations of employees, creating an inclusive
culture, advancing more women, and enabling people from any Broad e ng a g nationality, race, or background to fulfill their potential. e
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define business e turn e
n • We will set high standards of corporate governance, demonstrating success in long- t understanding
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i term context n into opportunity openness about our business activities and building trust. g n e w s i e b o u n d a r By pursuing these aspirations we believe we will move our companies into new areas, pushing the boundaries of business activity as we seek greater synergy between our goals and those of the society we serve. integrate opportunity into strategy 9 $16 trillion to be invested in the world’s energy systems
Energy & climate focus area
Energy is the world’s single most important engine for growth and prosperity. Its production and use are set to increase dramatically in the future to meet the needs of the industrialized world and developing countries.
The WBCSD is acutely aware of the challenges of living in a carbon- constrained world and has advocated that if we do not significantly change the ways by which we produce and consume energy, the adverse impacts on our climate and environment will become both unmanageable and irreversible. At the G8 meeting in Gleneagles in July, leading industrialized countries acknowledged humanity’s impact on the climate. The WBCSD’s most recent publication, Pathways to 2050 (December 2005), further illustrates the magnitude of the challenge and possible pathways for the future.
The first Meeting of the Parties (MOP) to the Kyoto Protocol and the 11th Conference of the Parties (COP 11) to the UN Framework Convention on Climate Change (UNFCCC) in Montreal in December 2005 delivered few results in terms of future international framework conditions.
On the “post-2012 framework”, as it has come to be known, the 8,000 government delegates, experts and stakeholders in Montreal came away agreeing only that talks would continue in 2006 to frame future global action on climate change.
The WBCSD believes that any new post-2012 global climate change framework needs to adopt an integrated approach. It should be both
10 The International Energy Agency estimates that over the next 25 years US$ 16 trillion will need to be invested in the world’s energy systems, especially in cleaner energy technologies and energy efficiency.
global in scale and coupled with decentralized and focused implementation, while including all the major greenhouse gas (GHG) emitting countries. It should be based on realistic and quantifiable objectives. It should encourage major technology development and deployment, and it should require new partnerships and cooperation among governments, business, the financial community and academia to finance and implement.
The International Energy Agency estimates that over the next 25 years US$ 16 trillion will need to be invested in the world’s energy systems, especially in cleaner energy technologies and energy efficiency. The WBSCD has long argued that innovation and technology development are crucial to sustainable development, and that a wide range of existing and emerging technologies can substantially reduce carbon emissions.
Fortunately, we are now beginning to see a more stringent and widespread implementation of energy efficiency, a trend toward broadening the mix of energy sources, including nuclear power, hydro power, and renewables, and stepping up research and development around carbon capture and storage.
The WBCSD’s activities on energy and climate in recent years, through both its council-wide project and sector projects, have helped businesses participate in the debate in a knowledgeable and responsible manner. These activities are now contained within the Energy and Climate Focus Area.
11 Energy and Climate Working Group
During the course of 2005, the main activities under the work program comprised:
• Follow-up to international processes such as the UNFCCC, the UN Commission on Sustainable Development and the G8. Particular attention was devoted to the Gleneagles Communiqué and Plan of Action (G8), which will culminate in 2008 in a first status report due during the Japanese presidency of the G8. • The launch of a new series of the Glion Dialogues, co-hosted with the Dutch Ministry of Housing, Spatial Planning and the Environment, and involving several country representatives participating in climate change negotiations. A first session of this new Glion Dialogue series took place over 12-14 October. • The preparation of two major publications from the Working Group, both launched in Montreal during the COP/MOP: • Energy and Climate Change: Pathways to 2050 gives a detailed overview of potential pathways to reducing CO2 emissions, building on the description of the broad energy challenge outlined in the 2004 publication Energy and Climate Change: Facts and Trends to 2050. • The GHG Protocol for Project Accounting provides requirements and guidance for quantifying GHG reductions and is the result of a thorough and extensive multi-stakeholder effort.
Moving Forward
Navigating between the research and description of key facts and challenges, the illustration of options to move forward, policy analysis and recommendations, the Focus Area seeks to provide WBCSD members with a global, integrated and action-oriented perspective on a sustainable energy future. 12 The program’s three workstreams for 2006 are: 1 Dialogues and Advocacy – Bringing information and clarity to the recent multiplication of cooperation frameworks and processes. 2 Research and Analysis - Undertaking and delivering added value research and analysis on business issues, as well as on sector or regional issues. 3 Tools and Practices - Capacity building, as well as linkages and cooperation between a variety of initiatives.
Understanding both the global issue and sector-specific concerns is key to ensuring that relevant, applicable and cost-effective options are registered and discussed. In this context, systematic coordination and linkages with other WBCSD work programs are being developed.
Focus Area Core Team Members
Company Representative Country
Areva Anne Lauvergeon France Co-Chair Norsk Hydro Eivind Reiten Norway Co-Chair BC Hydro Bob Elton Canada Chevron Rhonda Zygocki USA CLP Holdings Andrew Brandler SAR Hong Kong (China) ConocoPhilips Robert Ridge USA EDF Pierre Gadonneix France General Motors Tom Gottschalk USA Lafarge Bertrand Collomb France Royal Dutch/Shell Jeroen van der Veer Holland/UK Sinopec Wang Jiming China SUNCOR Richard George Canada TEPCO Teruaki Masumoto Japan Weyerhaeuser Ernesta Ballard USA 13 Development focus area
Sustainable development is about meeting the needs of both present and future generations. Billions of people are not meeting their basic needs today. The issue of poverty remained high on the world’s political agenda in 2005, with the G8 Summit in Gleneagles, the UN World Summit in New York and the World Trade Organization (WTO) ministerial meeting in Hong Kong. Despite some progress, it is clear that the Millennium Development Goals (MDGs) remain elusive.
3billion people who live in poverty today
A stable and sustainable society cannot be achieved when there are high levels of extreme poverty. To meet needs, markets must be accessible to and made to work for everyone.
The WBCSD was the first business organization to advocate market-based solutions to development challenges, and it continues to build awareness and acceptance of the role of business in driving development through core business activities.
With the newly created Development Focus Area, the WBCSD strengthens its advocacy activities with governments and civil society, to enable members to continue to learn by sharing, and to help members embark on real and sustainable business ventures in the developing world. This focus area builds on the work of the council’s Sustainable Livelihoods (SL) project 14 to promote business solutions to development challenges. The Development Focus Area is integrated with the wider WBCSD work program. Other focus areas, sector projects and initiatives such as water, health, energy & climate and ecosystems, among others, have much to share with and learn from the work focused on development.
The Development Dialogue
The WBCSD organized a development dialogue during the UN World Summit in September 2005 that allowed the council’s constituency to meet with representatives of the development community and government leaders. It was the first in a series of advocacy events designed to show that business is both interested in and willing to use its energy and skills to reduce poverty.
“ It is the absence of broad-based business activity, not its presence, that condemns much of humanity to suffering.”
UN Secretary General Kofi Annan
There we launched the WBSCD publication Business for Development: Business solutions in support of the Millennium Development Goals. It shows how the private sector is working toward the MDGs. Singling out framework conditions as one of the most important factors affecting business investment, the publication advocates focusing investment on an effective regulatory and legal framework, building the capabilities of local enterprises and improving core infrastructure. (You can access the publication at http://www.wbcsd.org/web/publications/biz4dev.pdf)
Year in action
In 2005, we continued our series of regional dialogues begun in 2004, holding meetings in Guatemala, Malaysia, the Philippines, Vietnam, Colombia, El Salvador and Honduras. We launched an online discussion in 15 The video library is accessible at April on the role of business in development that involved a total of over http://www.wbcsd.org/web/slexperience.htm 200 participants. Getting our members into the field, we organized a “Learning Journey” in which six business people spent a day examining and learning about an EDF Solar project in Morocco. The group participated in 15 conferences, always focusing on the role of business as a solution-provider, but also highlighting the need for improved frameworks to enhance business’s ability to deliver.
The focus area explored ways for members to work together in unconventional partnerships to design integrated solutions, an example being Vodafone's micro-finance platform through mobile telephony. The online Sustainable Livelihoods video library captures the vision of leaders from the business community and civil society, and provides lively footage of on-the-ground projects, to demonstrate how companies are pursuing pro-poor business opportunities.
Moving Forward
The focus area has proposed nine workstreams for 2006. One cross-cutting workstream will produce a “Development Facts & Trends”, a short factual publication to underpin our advocacy activities. The other eight workstreams fall under the three broad categories of “business-led action”, “business framework” and “key enablers”.
Business-led action • Business solutions - Developing new business solutions for low-income communities. • Measuring Impact - Measuring business impact on development. Business Framework • Small and medium enterprise capacity building - Linking with small 16 and medium enterprises; • National business environment - Improving the investment climate in “Business is recognizing a larger role in developing countries; development but cannot achieve its full potential without more effective • Trade – Understanding the implications of the Doha Development governance. Governments that create a Round of trade liberalization. basic environment of stability and predictability will attract greater investments and stimulate more Key Enablers business-led development activity.” These workstreams are the least well defined and depend on resources from Travis Engen core team companies. A maximum of three will be worked on in 2006: President and CEO • Finance for development - Increasing access to finance for pro-poor Alcan business; • Energy for development – A joint workstream with the Energy & Climate Focus Area, looking at improving access to energy while minimizing environmental impact;
“Sustainable Livelihoods business is not about philanthropy…. The focus is on real business opportunities that generate development benefits among low- income communities.”
Graham Baxter BP
Focus Area Core Team Members
• Transportation for Company Representative Country development - Offering
transport solutions while BP John Manzoni UK Co-Chair mitigating environmental Eskom Thulani S. Gcabashe South Africa Co-Chair impact. GrupoNueva Julio Moura Chile Co-Chair ABN Amro Bank Tom de Swaan The Netherlands Finally, the issue of sustainable AES Corp. Paul Hanrahan USA consumption will be addressed Anglo American Mark Moody-Stuart UK CH2M Hill Ralph Peterson USA and related to the broader Environmental Resources Management Group Robin Bidwell UK sustainable development agenda General Electric John Rice USA through the work of the 2006 Statoil Nina Udnes Tronstad Norway Young Managers Team. The Warehouse Group Stephen Tindall New Zealand Toyota Dr. Schoichiro Toyoda Japan Unilever Antony Burgmans The Netherlands Vodafone Group Alan Harper UK 17 The Business Role focus area
Since its beginnings, much of the council’s work has focused on the many roles of business and on new and redefined roles that can support society’s search for sustainable progress. In 1992, in preparation for the Rio “Earth Summit” the then BCSD published the book Changing Course: A global business perspective on developmens and the environment, which describes various new roles for business. The “Declaration” beginning the book asserts that: “Business will play a vital role in the future health of the planet. As business leaders, we are committed to sustainable development, to meeting the needs of the present without compromising the welfare of future generations.”
The council’s reports on corporate social responsibility in 1999, 2000 and 2002 continued to examine companies’ functions in society and to help them define their responsibilities. The work on accountability and reporting, covered in the 2003 report Sustainable Development Reporting: Striking the balance, looks into what elements of the business roles “Part of the bargain, the social contract companies need to report and what the public needs to know. which allows companies to be as large as they are, is that they become engaged in the challenges the world In 2005, council founder Stephan Schmidheiny and founder member faces, rather than dismissing them as Erling Lorentzen sponsored the production of a history of the WBCSD. In someone else’s problem.” John Manzoni looking over a decade of creativity and partnerships, Catalyzing Change: A Chief Executive, Refining & Marketing short history of the WBCSD helps us plot future roles for business by BP understanding the foundation that already exists for that work.
WBCSD membership reach½ the World’s population with a product or service every day
18 Also in 2005, eight younger council members spent the year looking at some of the major issues affecting business and society now, but are expected to be much bigger challenges in the future. Their report, From Challenge to Opportunity – The role of business in tomorrow’s society, argues that businesses have the chance to become sounder and more successful by finding business approaches to coping with those issues. Societal signals such as climate change, demographic shifts, globalization and poverty are risks to business that companies can address through business solutions, in partnership with governments, international bodies and NGOs.
The Business Role Focus Area, which grows out of this long tradition, explores what business can and should do and how business can build trust around its various roles. Its action plan helps member companies respond more effectively and dynamically to society’s expectations on questions such as:
• What will be the future role of business in society? • What is the role of business in finding solutions to global challenges? • Are business models robust enough to withstand constraints on carbon, water and ecosystems? • Who will define the role of business?
19 Companies are running increasingly complex operations and creating economic value at the global level. Sustainability issues threaten their operations. Successful global business leaders of the future will:
• Take responsibility for understanding the significance of global issues for their individual companies and sectors; • Search for business opportunities that help to address them, largely by innovating to develop new products and reach new customers; • Direct their core business strategies to align with the opportunities arising from major global issues; • Make judgments that incorporate long-term measures into their definition of success.
They will engage broadly with a range of groups and organizations, including governments, international bodies, customers, employees, partners, academics, NGOs, civil society institutions and the general public.
In the first meeting of the working group, members sought additional inputs from the membership to help them chart a course of work for the group, concentrating its discussions around the following questions:
• How are companies thinking internally about their role in society? What are their best practices? • What are the most appropriate platforms/events/venues for companies (and the WBCSD) to advocate “the role of business in society” messages and debates? • What are the specific themes or activities the WBCSD should undertake to best advance company thinking on the business role?
20 The group drafted an action plan in late 2005 and will hold dialogues with interested parties and test the messages. The group will explore the following key areas:
• The objectives of business; • The role of corporate social responsibility – borders and boundaries; • Value – shareholder and stakeholder; • Audiences – internal and external; • The context of other initiatives active in this debate and the comparative advantages of the WBCSD; • Advocacy and provoking debate.
Focus Area Core Team Members
Company Representative Country
Alcan Travis Engen Canada Co-Chair PWC Sam di Piazza USA Co-Chair Allianz Michael Diekmann Germany DuPont Chad Holliday USA KPMG Hiro Yoshihara The Netherlands Pakistan State Oil Jalees Ahmed Siddiqi (tbc) Pakistan Podravka Goran Markulin Croatia SGS Rolf Jeker Switzerland Sony Ryoji Chubachi Japan Storebrand Idar Kreuzer Norway Suez Yves-Thibault de Silguy France
“We see shareholder value as a measure of how successfully we deliver value to society, rather than as an end in itself” 21
Tomorrow’s Leaders group Council Projects Energy Efficiency in Buildings
Energy Efficiency in Buildings, a new Council Project launched in mid- 2005, looks at the third largest consumer of energy after the industrial and transportation sectors. It has generated strong interest from member companies, with a number of them signing on to the working group. The group began preparing its workstreams in late 2005.
The work is timely. Buildings are one of the largest end users of primary energy, and in OECD countries the building sector accounts for 25% to 40% of final energy demand.
UTC and Lafarge co-chair the project. The co-chairs, along with the WBCSD, have outlined a vision for the project in which all buildings would be energy self-sufficient with no net carbon releases by 2050. The project will produce a roadmap for reaching self-sufficiency in ways that are economical and socially acceptable.
The project will comprise three phases, each producing reports that together will form a process for transforming the construction industry. The first report will document existing green building successes and setbacks, the second will identify the full range of present and future opportunities, and the third will present a unified industry strategy for realizing those opportunities by 2050, specifically in China, India, Brazil, the US, France, Germany and the UK.
The project has integrated an active communications component from the start, and has been constructed as a work in progress, inviting stakeholders to contribute as it moves forward. It will survey target audiences at the outset and periodically throughout the life of the project to see if the work is changing their perception of energy efficiency in buildings.
25-40% of final energy demand In OECD countries the building sector accounts for up to 40% of the 22 final energy demand Water and Sustainable Development
Growing populations, limited water resources and economic development add up to a water-constrained future.
With a more or less constant amount of renewable freshwater on the planet, population growth also means less water per person. Many areas today are experiencing periodic or chronic water stress with severe impacts on economic development and human health.
These inexorable trends are reason enough for businesses to make sure water is part of their strategic planning, whether in terms of risks, opportunities or both. They are even more compelling when compounded with uncertainties such as climate change impacts and globalization.
The WBCSD is enhancing the business community’s understanding of the key drivers of change related to water, promoting dialogue with other actors in society, and providing tools to support business action. The water working group represents a spectrum of business activity, including mining and metals, oil and gas, consumer products, food and beverage and finance, as well as infrastructure services and equipment.
2005 saw the publication of Water Facts and Trends on the key water issues of today. A second document, Collaborative Actions for Sustainable Water Management, drew on the policies and experiences of member companies to show how businesses can contribute to sustainable water management.
The water scenario planning project, Business and Water: Navigating a Sustainable Course, was launched in early 2005 to develop alternative visions of how water issues might evolve over the next 20 years.
During 2005 we communicated With support from scenario experts at Shell, the project conducted four business perspectives on water at the workshops in 2005 and planned to publish its results in 2006. Twenty-one 13th Session of the UN Commission on member companies have participated in the project, and some 100 Sustainable Development (CSD-13) and the annual Stockholm World Water individuals from business, NGOs, governments and academia have Week: contributed. • At CSD-13, we collaborated with the International Chamber of Commerce under the banner of a The scenario work has highlighted the links between energy and water as joint initiative called “Business Action for Water”. an area that businesses need to better understand. As a result, a joint task force between the Energy & Climate and the Water working groups was • In Stockholm, we co-convened with formed to undertake an initial scoping of the issues. the Stockholm International Water Institute the Founders’ Seminar on the theme of “Business, Water and While the first segment of work on water was meant to draw to a close in Development”, and a workshop on “Strategies to increase resource use early 2006, both the council and the members decided that the water and efficiency in industrial and sustainable development project would continue for the foreseeable future. agricultural sectors.” 23 Sector Projects Sustainable Forest Products Industry
This project, now in its third year, Business must lead innovation in sustainable forest management and the aims to: sustainable production, use and re-use of forest products. • Build stakeholder consensus on the application of intensely managed planted forests (IMPF) as a Key developments in 2005 sustainability strategy and criteria and indicators of forests for The Forests Dialogue (TFD) multi-stakeholder process conservation; • A multi-stakeholder dialogue on strategies to combat illegal logging was held in Hong Kong in March 2005. The WBCSD and WWF • Encourage the credible use of multiple forest certification systems; International presented a joint statement and a joint case study. • The first preparatory dialogue on the role of IMPF as a sustainable • Improve forest law enforcement and governance to combat illegal forest management strategy was held in June 2005. Follow-up sourcing, harvesting and trade of dialogues were held on forest biodiversity in October, improving forest forest products; law enforcement and governance to combat illegal logging in
• Improve understanding between November, and reducing forest conflict in Asia in December. industry and environment NGOs and catalyze joint action when practical; Forest certification A workshop on values underpinning choices for using different certification • Provide guidance for major business-to-business customers on systems was held with WWF International in June 2005. This led to the tools to assist in the responsible development of a set of core values for forest certification common to all procurement of forest products; Sustainable Forest Products Industry (SFPI) member companies.
• Enhance the forest industry’s role in reducing greenhouse gas emissions. Responsible procurement of forest products Implementation of the Legitimacy Thresholds Model concept – developed by the WBCSD and other stakeholders in 2004 – is becoming a reality in the marketplace. Major customers, including governments, are making individual decisions about which certification systems to accept. The working group commissioned a review of existing forest product procurement initiatives and established a team to determine how to respond to this increasing demand.
Forest law enforcement and governance The working group was involved in enhancing private sector input to the Europe and North Asia (ENA) Forest Law Enforcement & Governance (FLEG) process throughout the year, which cumulated in a ministerial meeting in November 2005 involving 55 countries and over 150 civil society and industry stakeholders. A WBCSD policy paper on FLEG issues stressed the responsibility of governments to address illegality, targeting those regions where much harvesting is illegal.
GHG emissions The group, with technical input from the National Council for Air and Stream Improvement (NCASI), developed and launched a key messages publication for policy-makers in December at the 11th Conference of the Parties of the UN Framework Convention on Climate Change.
24 Concrete is the most widely used material on earth after water, with Cement Sustainability Initiative nearly three metric tons used annually for each man, woman and child.
Concrete is the most widely used material on earth after water, with nearly three metric tons used annually for each man, woman and child. Making cement poses a number of sustainability issues: cement plants and quarries create dust and noise; fuels and raw materials used in the manufacturing process generate greenhouse gases; and land used for quarries must be restored to retain the landscape and local biodiversity.
The Cement Sustainability Initiative (CSI), representing more than half the world’s cement production outside China, is one of the largest global sustainability programs ever undertaken by a single industry sector. It metric tons carries out research and stakeholder consultation, business planning and 3 action, and progress reporting in order to: • Identify key issues; • Assess the industry’s performance; • Provide vision and recommendations for action; • Help manage an actionable business agenda for industry leaders to move forward.
The first CSI Progress Report (June 2005) documented the delivery on pledges made in 2002. It discusses progress in managing CO2 emissions, the use of non-traditional fuels and raw materials, and occupational health and safety. The most significant pledge is the production of a protocol for measuring and reporting CO2 emissions from cement manufacturing. It is the first time an industry has adopted a voluntary and independently audited emissions protocol.
In June 2005, 10 CEOs met for the annual CSI CEO Forum and agreed to take a more aggressive stance on external, independent assurance for reported results from all company members. A separate, active discussion on the sustainability of concrete construction resulted in the creation of a CSI members have also undertaken new task force on this subject. This task force, led by Lafarge, will provide common projects such as: recommendations for possible future actions by the CSI at the next CSI • An emissions monitoring and CEO Forum in October 2006. reporting protocol for nitrogen oxides, sulfur oxides and particulates; In the course of 2005 a number of CSI reports were completed as good- • A set of safety metrics that enables practice guidelines move into the field for implementation, including: companies and plants to report • Guidelines for the Selection and Use of Fuels and Raw Materials in the accurately and consistently on health and safety issues; Cement Manufacturing Process;
• Guidelines for Social and Environmental Impact Assessment in the Cement • Guidelines for the use of fuels and Industry; raw materials;
• The Cement CO2 Protocol: CO2 Accounting and Reporting Standard for the • An environmental and social Cement Industry; impact process enabling companies and communities to work together • Guidelines for Emissions Monitoring and Reporting in the Cement Industry; during the development, operation • Health and Safety in the Cement Industry: Examples of Good Practice. and closure of a cement facility.
25 90 mined substances Millions of products are built or assembled using more than 90 mined substances from around the world.
Mining, Minerals and Sustainable Development
Millions of products are built or assembled using more than 90 mined substances from around the world. The central role played by the mining and minerals sector in global development challenges society to make the best use of its products while minimizing environmental and social repercussions. Improved government frameworks, resolution of community conflicts, management of risks, and embedding sustainable development into the mindset of companies are all crucial steps for the future of mining, and all issues examined by the council’s Mining, Minerals and Sustainable Development (MMSD) project.
Nine member companies from the mining sector initiated the MMSD project and now belong to the Global Mining Initiative (GMI), which is run by companies and whose principal activities consist of examining sustainability challenges, commissioning independent research, and launching consultations in partnership with the International Institute for Environment and Development (IIED).
In 2005, the WBCSD continued to advocate the messages of the Mining, Minerals and Sustainable Development project. The International Council on Mining and Metals, created by the GMI to implement the findings of the MMSD report Breaking New Ground, is in the process of following up on and leading efforts to improve the global sustainable development performance of the mining, minerals and metals industry. It now has the lead in implementing the project recommendations for the industry, and its work plan includes a partnership with the World Conservation Union on biodiversity issues, The World Bank on community concerns, and ongoing research support from IIED.
26 Sustainable Mobility
The products and services of mobility enable society to move freely, gain The sustainable mobility project was access to more goods and services, trade, communicate, and establish and established in early 2000 to: • Elaborate a clearer understanding maintain relationships. Modern life could not exist without this. But these of how developed and developing essential functions must not be allowed to overwhelm other essential societies can most effectively manage the adverse effects of human and ecological values, today or in the future. The Sustainable increasing levels of transport Mobility Project (SMP) helps create balance and harmony between the activity; perspectives of the users, of society, and of the mobility providers. • Consider how global mobility patterns might evolve in the period In 2004, the project released a comprehensive report on the topic, to 2030 and beyond;
Mobility 2030: Meeting the challenges to sustainability. • Identify strategies to influence this evolution in ways that might make transport more sustainable. The report proposed seven goals to improve the prospects for sustainable mobility: 1. Reduce conventional emissions from transport so that they do not constitute a significant public health concern anywhere in the world; 2. Limit greenhouse gas emissions from transport to sustainable levels; 3. Reduce significantly the number of transport-related deaths and injuries worldwide; 4. Reduce transport-related noise; 5. Mitigate traffic congestion; 6. Narrow “mobility divides” that exist within all countries and between the richest and poorest countries; 7. Improve mobility opportunities for the general population in developed and developing societies.
As transport represents a significant part of energy use and greenhouse gas emissions, the WBCSD continues to advocate key messages from the report and continues the dialogue with a wide range of stakeholders, particularly in mobility-related events and in fora related to the Energy & Climate Focus Area. 27 Electricity Utilities
During 2005, the working group looked at Electricity is more than mere energy. It brings crucial societal value to the sustainability performance of the national economies as a driver of development and productivity, and its different resource options for electricity generation such as coal, gas, nuclear use is growing more quickly than that of any other form of energy. Yet and renewables. This created a holistic significant sustainability challenges face the sector today: view of the facts, key technology developments and policy needs. “Issue • Building and maintaining security of supply: Delivering the huge briefs” in these areas will underpin the amounts of electricity required for development and growth, while stakeholder engagement phase, which making adequate returns to attract the necessary investment and started in December 2005 with a side event on energy efficiency during the keeping prices affordable for customers; 11th conference of the parties to the • Managing and reducing environmental impacts: Curbing the expected Kyoto Protocol in Montreal, and will be structured around six action areas: growth in the power sector’s global carbon emissions (representing • Continuously improving end-use almost 40% of the world’s total and projected by some to double by energy efficiency; 2030), while keeping other impacts and costs at acceptable levels;
• Attracting investment in supply • Providing access to electricity for all: Increasing access to electricity that infrastructure; far too many people in developing countries lack and thereby
• Diversifying and gradually removing one of the most significant stumbling blocks on the way to decarbonizing the fuel mix; making poverty history.
• Bringing to market breakthrough technologies in the long-term; 2005 saw the launch of a new phase for the project on electricity utilities, bringing together eight leading utilities from around the world to develop • Providing wider access to electricity; a deeper understanding of these challenges and to explore the business contribution to solutions. The project work plan through 2006 aims to: • Building partnerships and developing a dialogue with decision- • Improve the understanding of the fundamental trade-offs that decision- makers and civil society. makers and society at large must face; • Develop common communications tools for dialogue with stakeholders and policy-makers, defining the roles of utilities and those of other players; • Identify approaches to integrating sustainable development into long- term decision-making; • Share public reporting best practices.
The working group is in a position to add sector-specific value while also benefiting from synergies with the Energy & Climate Focus Area and the Water project. 40% of the world’s carbon emissions
28 Tire Sector
Tires are essential to road and surface mobility, providing the moving surface Bridgestone, Goodyear and Michelin of our many transport vehicles and the only contact point with the ground. serve as co-chairs of the group. Other participating companies are: Continental, Germany; Cooper Tire & Simple in appearance, tires are quite sophisticated products. Tire making Rubber Company, Japan; Hankook Tire Co., South Korea; Kumho Tire Co., involves a complex blend of materials and assembly processes to make the South Korea; Pirelli, Italy; Sumitomo thousands of different products used on equipment ranging from bicycles Rubber Industries, Japan; Toyo Tire & Rubber Co., Japan; and The Yokohama to huge earthmovers. A typical tire includes dozens of different Rubber Co., Japan. components, using more than one hundred primary raw materials, which must be precisely assembled and processed to achieve the right balance between many competing factors: grip, energy efficiency, handling, comfort, noise and cost, to name a few.
Looking toward the future, the tire industry leaders have begun to examine several sustainability issues facing this sector, to gather data, identify potential concerns, and address them. Following a global CEO meeting in March 2005, 11 companies have organized a series of initial studies.
Over the next year, the group will examine the availability and quality of Initially this project will address existing data dealing with these two issues, identify knowledge gaps, and two issues: 1 Evaluation of materials commonly develop a comprehensive plan to fill those gaps in succeeding years. used in tire making for any ChemRisk, a US-based consultancy specializing in risk analysis, has been potential health and/or environmental impacts; retained for these initial studies. They will work with DIK, the German Institute of Rubber Technology. The company CEOs will review the 2 The fate and impacts of particulate scoping work in early 2007 and consider further studies at that time. matter generated during normal tire use and wear.
By taking an early look at these issues, these industry leaders want to understand more about the sustainability challenges they face in a constantly evolving regulatory environment and formulate an approach to making the industry more sustainable by better assessing and managing impacts from its products and processes. 29 The Chemical Sector Project
One of the world’s most important sectors, the chemical industry provides significant economic growth, employment, taxes, resource efficiency, innovation and technologies, and investment, in addition to delivering improved quality of life for consumers. Its potential to contribute towards sustainable human progress in an effective and coordinated manner requires trust and partnerships with key stakeholders and society at large.
In 2005 a group of WBCSD chemical companies, led by Dow, DuPont and DSM, began exploring a WBCSD Chemical Sector Project. The project would ultimately aim to develop a vision and design a roadmap for a sustainable chemical industry driven by global industry leaders.
Developed in collaboration with key stakeholders, it would facilitate a deeper understanding of the fundamental issues facing the sector today so that energy can be effectively channeled toward creating fundamental change in the sector tomorrow. It would also demonstrate a coordinated, forward- looking approach for proactive chemical companies that are responsive to the needs and challenges of a world increasingly shaped by sustainable development issues.
The group is conducting a scoping exercise to better define the opportunities and potential for such a project. The scoping exercise will engage strategic stakeholders to understand the industry’s structural drivers of change, how existing initiatives are delivering, and ultimately where this WBCSD project could contribute in a unique but complementary manner that fundamentally shifts industry practices.
30 Initiatives Sustainable Health Systems
Health-care costs are rising rapidly, either directly through private Our Health Systems Initiative has insurance plans, or indirectly through tax-supported government explored the role of business in two publications: programs. OECD countries currently spend more than 8% of their GDP on • The first publication, Health health, excluding the cost of lost time and lost productivity. Costs are Systems Facts and Trends, illustrates 10 key issues critical to frequently higher than necessary and higher than societies can afford on a health and healthcare today. Each long-term basis. WBCSD surveys indicate that member companies and issue is characterized in a two-page other stakeholders do not think that current health systems are sustainable summary that highlights a series of facts, trends, and implications for or that they will survive unchanged over the next 15 years. business.
• The second publication, The Despite this general agreement on the present state of affairs, there is little Business of Health - The Health of agreement on what to do about it. What is the role of business in this Business, (in collaboration with the International Business Leaders area? What are the roles of the many other actors on this stage? Forum) provides a set of case studies illustrating how a number Business alone cannot make health systems more sustainable. Business is of leading companies are dealing with health issues in the workplace one actor, but the full cast is much larger: medical professionals, and/or in the communities in governments, patient groups, research scientists and the NGO/IGO which they operate. community. Business brings a unique set of skills to the table, including technology innovation, product and service development, manufacturing capacity, quality systems, financial management and an understanding of logistics. But business cannot set the rules for access, nor can it replace governments in failed or failing states where distribution of even the most basic services is limited. Business cannot do all the fundamental research that underlies much of modern technology, nor can it replace an individual’s responsibility for his or her own health.
The Health Systems Initiative was drawing to a close with the release of these latest publications. We believe business can make a difference in health systems and their performance in three ways: with their own employees through good design of benefit, medical and safety programs; within the communities in which they operate; and at a national policy level.
8% OECD countries GDP on health currently spend more than 8% of their GDP on health, excluding the cost of lost time and lost productivity. 31 Sustaining Ecosystems and Ecosystem Services
In March 2005 the international Millennium Ecosystem Assessment (MA) released the first global evaluation of the health of the planet’s ecosystems and the consequences of ecosystem change to human well- being. It found that two-thirds of the world’s ecosystem services are being degraded or used unsustainably.
As ecosystems come under greater development pressure, the role of business – and its impacts on and stewardship of ecosystems – will come under increasing scrutiny by governments, customers, competitors, NGOs and the finance sector. Companies that pioneer strategies and technologies that anticipate or respond to ecosystem changes will clearly gain competitive advantage.
In April a memorandum of understanding was signed between the WBCSD and the IUCN to intensify collaboration between business and NGOs. The two agreed to work on a new Ecosystems & Business Facts, Trends and Tools publication with the participation of the World Resources Institute and EarthWatch Institute, as well as to cooperate on ecosystems measurement, assessment and indicator projects involving WBCSD and IUCN members.
Ecosystems were a significant focus at the WBCSD’s Nagoya meeting in June, including a CEO panel discussion on ecosystems and business and a keynote presentation by Dr. Robert Watson, the World Bank’s senior scientist and co-chair of the Millennium Ecosystems Assessment process.
The council re-launched the Ecosystems Champion Group to lead the business sector response to the assessment. Conceived as a multi-sector leadership network of member companies, the group has been behind the development of the new Sustaining Ecosystems Initiative (SEI).
In July 2005 the MA released its synthesis report targeting business and industry. The WBCSD included a short summary of business-relevant assessment findings in its issue brief, Sustaining Ecosystems and Ecosystem Services, released that same month, outlining the links between ecosystems Four priority workstreams: and business and the WBCSD’s proposed actions. • Business and market innovation;
• Policy frameworks and advice; By September, 23 member companies had joined the Ecosystems
• Standardized approaches to Champions Group. Drawn from 11 sectors with varying levels of ecosystems measurement and assessment; dependency and impact, Rio Tinto, BC Hydro, Shell, Syngenta and DNV
• Best Practice Mitigation and make up the leadership group. In November a workshop confirmed the role, Stewardship. scope and mission of the SEI.
32 Learning by Sharing
Learning by Sharing (formerly Capacity Building) helps our members manage With a focus on making sustainability change toward sustainable development. The program fosters sustainability connections, the YMT 2005 spent their year looking within their own understanding across business operations, sectors and countries, with a specific companies and exploring new ways to focus on today’s and tomorrow’s managers. Chronos and the Young communicate sustainable development to wider audiences. The first group Managers Team, our flagship projects, are growing ever stronger, and we have created a toolkit to educate future extended our offerings to include individual member services. professionals from engineering and business schools on sustainable development. The second team The Learning by Sharing (LbS) sessions, offered at our bi-yearly liaison developed an interactive, Web-based delegates meetings, have become a valuable forum for exploring business tool to raise awareness through new communications channels. The third and sustainability issues. In Nagoya, Japan and Montreux, Switzerland, the group worked with investor relations well-attended sessions provided members with opportunities to exchange professionals, building on the work of the 2004 team and linking information and practical experience informally. sustainability to business value.
The WBCSD continues to provide a range of educational products and services. Chronos, our e-learning tool developed with the Cambridge Program for Industry (CPI), helps employees understand the business case for sustainable development. WBCSD members ABN AMRO, EDP, UOP, Rio Tinto and Repsol customized the tutorial in 2005. Chronos reaches beyond the membership as non-member companies, academics and NGOs customize and use it. There are now some 200 organizations and 80,000 individuals around the world using Chronos.
Case studies remained an important feature of the LbS program in 2005. Used in a variety of ways, including in publications and presentations, our online library of nearly 200 examples illustrates how companies are “walking the talk.”
Our scope of resources has grown with the publication of our Eco-Efficiency Learning Module. Developed with Five Winds International, the module helps companies adopt, implement and integrate eco-efficiency practices.
Two functional briefs, explaining how human resources and marketing professionals can better integrate sustainability principles into their daily work, were released in 2005. Developed in partnership with the CPI and the Business and Environment Programme, these innovative briefs are being tested inside the membership.
Our Young Managers Team (YMT) demonstrates its value by showing how young managers think about tomorrow’s companies. The 28 members of YMT 2004, which finished its work in 2005, separated into three workstreams. The first investigated how young analysts are integrating environmental and social issues in their decision-making. The second worked with the Chinese BCSD to develop a presentation pack on corporate responsibility and business success in China. And the third surveyed social and environmental issues in forestry projects in Brazil, notably through a stakeholder event with the country’s BCSD. 33 55 Regional Partners
The Regional Network
AFRICA As of the end of 2005, the Regional Network (RN) was composed of 55 independent Business Councils for Sustainable Development (BCSDs) and Association of Enterprises for Environmental Conservation (AEEC), Egypt partner organizations around the world. These like-minded organizations Mohammad Kamal [email protected] are united by a shared commitment to provide business leadership for www.aeec.com.eg sustainable development in their respective countries and regions. Association pour la Promotion de l'Eco-Efficacité et la Qualité en Entreprise (APEQUE), Algeria They are typically CEO-led organizations consisting of leading local Mohamed Bentir [email protected] enterprises and subsidiaries of foreign companies, many of them members of the WBCSD itself. They are usually the most influential business BCSD Nigeria Prince Lekan Fadina organizations on sustainable development issues in their regions, and [email protected] substantially enrich the WBCSD’s programs and initiatives. In 2005, the BCSD Zimbabwe network organized several CEO forums in regions or nations, gatherings Nikki Foot [email protected] involving leaders from business, governments and civil society. They have www.bcsdz.co.zw proved useful as platforms to bring out WBCSD messages and get input Forum Empresarial para o Meio Ambiente (FEMA), Mozambique for WBCSD programs and an expanded number of such forums are Jorge Soeiro planned for 2006. [email protected] www.fema.org.mz
National Business Initiative (NBI), South By adding perspectives from around the world, the RN enhances the Africa André Fourie legitimacy of the WBCSD as a global council. It helps validate the [email protected] WBCSD’s results and messages and spread them around the globe. It www.nbi.org.za also helps translate global initiatives into action at the local level by acting as a platform to connect with local authorities and opinion leaders, ASIA implement pilot projects, and engage with small- and medium-sized BCSD Kazakhstan Gulsara Yedilbayeva enterprises (SMEs). Additionally, network partners develop local capacity [email protected] by adapting WBCSD education and learning tools. www.kap.kz
BCSD Malaysia Dato’ Ghazali Yusoff In 2005, the RN welcomed a new council in Hungary, and others were [email protected] www.bcsdm.com.my planned in Pakistan, Romania, Nicaragua and Vietnam. Contacts have been established with the African Business Roundtable in view of BCSD Mongolia Sambuu Demberel strengthening the WBCSD’s outreach to sub-Saharan Africa. [email protected] 34 www.mongolchamber.mn Snapshots from the Regions BCSD Sri Lanka Chandra Embuldeniya Because of the great range of initiatives undertaken by RN partners, it is [email protected] not possible to present them comprehensively. Following are some BCSD Taiwan examples that illustrate how they complement the WBCSD’s work. Niven Huang [email protected] Partners are taking the lead in raising awareness on the value of www.bcsd.org.tw integrating sustainability into everyday business practice: BCSD Thailand Chaiyod Bunyagidj • For more than a decade, organizations in Argentina and Colombia [email protected] have been promoting the concept of eco-efficiency, creating awareness www.tei.or.th/tbcsd and action to capitalize on opportunities to reduce the environmental Business Environment Council (BEC), Hong Kong impact of companies, while saving money and gaining Andrew Thomson competitiveness. Their pioneering work has spread around the globe, [email protected] www.bec.org.hk all the way from the Great Lakes District (US/Canada), Portugal, China BCSD Croatia, Zimbabwe, Russia, New Zealand and Taiwan to Mongolia. Zhai Qi [email protected] • Other RN partners, such as TERI BCSD India, PBE in the Philippines, www.cbcsd.org.cn BCSD Malaysia, NBI in South Africa, Peru 2021 and councils in Brazil, Confederation of Indian Industry (CII) Bolivia, Colombia, Ecuador, El Salvador, Honduras, Guatemala and K.P. Nyati [email protected] Mexico, are teaming up with the WBCSD to identify new business www.ciionline.org
models that can help alleviate poverty. Korea BCSD Byung-Woog Lee [email protected] Several partners are involved in efforts to strengthen SMEs’ capacity to www.kbcsd.or.kr improve their environmental and social standards: Nippon Keidanren (Japan Business • FE – BCSD Spain has created a simple six-step approach for SMEs to Federation) Yasukiyo Horiuchi gain environmental certification, and BCSD Thailand developed a [email protected] www.keidanren.or.jp model to enhance the environmental performance of SMEs within the Philippine Business for the Environment supply chain of its member companies. (PBE) Lisa Antonio [email protected] Partners are adapting WBCSD education and learning tools to strengthen the www.pbe.org.ph capacities of their local collaborators in addressing sustainability challenges. TERI - BCSD India Annapurna Vancheswaran • BCSD Brazil launched a Portuguese version of Chronos, the [email protected] WBCSD’s e-learning tutorial on sustainable development. BCSD www.teri.res.in/core Turkey has also introduced WBCSD capacity-building tools to the Turkish business community. BCSD Portugal launched a Young EUROPE
Managers Team this year and BCSD Kazakhstan created a training Austrian BCSD Roman Mesicek center. [email protected] www.abcsd.at
Most partners have a strong practical focus, ensuring that sustainable BCSD Croatia development is implemented at the local level: Mirjana Matesic [email protected] • econsense in Germany produced a 400-example collection of best www.hrpsor.hr 35 practices on sustainable development from 23 of its members. BCSD Czech Republic Jiri Student [email protected] www.cemc.cz
BCSD Hungary Màté Kriza [email protected] www.bcsdh.hu
BCSD Poland Stefan Taigner [email protected] á www.csir.pl/bcsd.html
BCSD Portugal Luis Rochartre [email protected] www.bcsdportugal.org
BCSD Turkey Engin Guvenc [email protected] www.tbcsd.org
BCSD UK David Middleton [email protected] www.bcsd.uk.co.uk • The US BCSD promotes by-product synergy - a financially viable and
Confederation of Norwegian Enterprises (NHO) ecologically beneficial waste-exchange mechanism that has been Erik Lundeby exported to other parts of the network, including to the UK BCSD and [email protected] www.nho.no WASIG in Western Australia.
econsense, Germany • Hong Kong’s BEC successfully started the environmental sustainability Carolin Bossmeyer [email protected] assessment of its 100th green building project in May 2005. www.econsense.de
Entreprises pour l'Environnement (EpE), France RN partners provide an effective platform for partnerships to advance Claire Tutenuit [email protected] sustainable development: www.epe-asso.org • BCSD Mexico, in cooperation with the Mexican Ministry for Fundacio Fórum Ambiental, Spain Environment, the WBCSD and WRI, implemented a voluntary Pepe Tarifa Calvet [email protected] greenhouse gas accounting and reporting program. The preliminary www.forumambiental.com results of this program were presented at the 11th Kyoto Protocol Fundación Entorno - BCSD Spain conference in Montreal. There are plans to expand this example of Cristina García-Orcoyen [email protected] effective collaborative action between government and industry to www.fundacionentorno.org India, South Africa, the Philippines and South Korea. Vernadsky Foundation, Russia • PBE Philippines partnered with the UNDP to conduct a countrywide Kirill Stepanov [email protected] study to assess the situation for environmental infrastructure financing www.vernadsky.ru in the areas of water supply, sewage and sanitation, as well as LATIN AMERICA agriculture waster water management.
Associacion de Empresarios para el Desarollo (AED), Costa Rica Ximena Araneda While the WBCSD promotes sustainable development policies in the global [email protected] arena, its RN partners advocate appropriate framework conditions to www.aedcr.com support business contributions at the local level. Examples include: BCSD Argentina Sebastian Bigorito • BCSD New Zealand published an energy scenario study and released a [email protected] report calling for cash incentives to enable private motorists and www.ceads.org.ar businesses to purchase more fuel-efficient/low-emissions passenger BCSD Bolivia Beatriz García vehicles. [email protected] www.cedesbolivia.org • NBI South Africa brought together a group of industry players to sign up to a voluntary Energy Efficiency Accord, which commits industry to BCSD Brazil Fernando Almeida reduce its final energy demand by 15% by 2015. [email protected] www.cebds.org • The WBCSD organized a water scenario exercise in Beijing in
BCSD Colombia cooperation with the China BCSD to develop multi-stakeholder visions Santiago Madriñán of how water issues might evolve over the next 20-25 years and to [email protected] 36 www.cecodes.org.co explore the roles business can play in shaping a sustainable water future. BCSD Ecuador Lourdes Luque [email protected]
BCSD El Salvador Luis López Lindo [email protected] www.cedes.org.sv
BCSD Gulf of Mexico Eduardo Prieto Sanchez [email protected] www.cedes-gm.org.mx
BCSD Honduras Roberto Leiva [email protected] www.cehdes.org
BCSD Mexico Alejandro Lorea [email protected] www.cce.org.mx/cespedes
BCSD Paraguay Diana de Bareiro [email protected] www.redes.org.py • At the World Expo 2005 in Aichi, the Japan Business Federation BCSD Venezuela (Nippon Keidanren) and the WBCSD explored the role of business in Gerardo Talamo the 21st Century. The event was honored by the presence of Crown [email protected] Prince Naruhito. CentraRSE, Guatemala Guillermo Monroy [email protected] RN partners also benefit from cooperating among themselves. Gatherings www.centrarse.org that took place in the course of 2005 included: IntegraRSE, Panama Marcela de Pardini • The 3rd Central American Corporate Social Responsibility conference in [email protected] www.cedis.org.pa Honduras, which was attended by more than 400 people, including RN partners from the other Central American BCSDs and Spain. Peru 2021 Henri Le Bienvenu •A Latin American Summit in Buenos Aires, co-hosted by BCSD [email protected] www.peru2021.org Argentina and the WBCSD, which brought together 14 BCSDs from UniRSE, Nicaragua the region with civil society organizations. Matthias Dietrich • In Rio, the Brazilian BCSD, in cooperation with UNESCO, organized dr. [email protected] www.unirse.org the first Ibero-American sustainable development congress, which was attended by more than 2,000 participants, including RN partners in NORTH AMERICA Bolivia, Peru and Paraguay. During the event, the UN Decade of Council of Great Lake Industries (CGLI), USA/Canada Education for Sustainable Development was launched. George Kuper • BCSD Zimbabwe’s annual conference attracted more than 60 [email protected] www.cgli.org delegates, including the CEO of the NBI South Africa. The Minister of The EXCEL Partnership, Canada Environment and Tourism took this opportunity to announce the Christopher Henderson [email protected] ratification of three important multilateral environmental agreements www.excelpartnership.ca by the government including the Kyoto Protocol. US BCSD Andrew Mangan [email protected] In addition, some concrete cooperation projects have been initiated: www.usbcsd.org • CentraRSE Guatemala created a self-assessment tool for companies to OCEANIA measure their sustainability performance and develop benchmarks, BCSD New Zealand which AED Costa Rica and the BCSDs in El Salvador and Honduras Peter Neilson intend to replicate. [email protected] www.nzbcsd.org.nz • BCSDs in China and the USA entered a partnership to establish a joint Business Council of Australia sustainable development communications center in Beijing. The center Maria Tarrant [email protected] will focus on promoting the exchange of information and technology www.bca.com.au cooperation between companies of both countries. WASIG Australia Rene van Berkel [email protected] www.wasig.curtin.edu.au 37 Advocacy & Communications
During the council’s first 10 years, our communications work mainly focused on conveying facts, figures and trends. As we move toward advocacy, we are realigning our advocacy and communications work to reflect that change. We are working with a wider range of partners. We are working even more closely with our members and their own communications departments, to help us all manage issues and speak with something close to one voice.
As usual, much of the year’s communications work is reflected in the publications list toward the end of this report. However, we also organized many outreach and communications events, which you will find described in the accounts of the focal areas and projects. These included side meetings or presentations at global events such as the World Economic Forum’s annual meeting, the Delhi Summit on Sustainable Development, the 13th session of the UN Commission on Sustainable Development, the UN Millennium Summit, the UN Commission on Sustainable Development, and the Montreal Climate Change Conference (COP 11 and COP/MOP 1).
WBCSD online In 2005 the WBCSD website (http://www.wbcsd.org) was again rated the “best source of information on sustainable development” by a GlobeScan Survey of Sustainability Experts. The number of visitors to the site grew some 33% in 2005 from 600,000 to 961,300. The number of pages accessed grew from 2.5 million to 2.8 million (+13%).
In 2005 a total of some 35,000 people subscribed to our eight e-newsletters, more than doubling the number of subscribers in 2004 (17,000). These newsletters feature the latest news on sustainable development and WBCSD activities: • WBCSD update • Business & SD news • Energy & Climate news 38 News & Content partnerships Agence France Presse Paris, France
CSRwire / Socialfunds Brattleboro, VT, United States
E&E Publishing Washington, DC, United States
ENDS Environmental Data Service • Sustainable Livelihoods news London, United Kingdom
• Sustainable Mobility news Environmental Finance • Water & SD news London, United Kingdom • Regional Network news Ethical Corporation London, United Kingdom • WBCSD Press update EurActiv.com Brussels, Belgium To subscribe to any of the above newsletters, please go to GreenBiz.com http://www.wbcsd.org/plugins/mywbcsd/default.asp Washington, DC, United States
GreenFacts Brussels, Belgium In 2006 we plan to restructure and re-launch our website, bringing its content and design into line with the WBCSD’s new strategy and making Science and Development Network London, United Kingdom it an even more useful information source on business and sustainable Sustainable Development International development. In addition, we will develop and maintain online dialogues London, United Kingdom and discussions based on current events and breaking issues.
The Com+ Partnership Founded in 2003, Com+ is a partnership of 13 international members, including multilateral agencies, NGOs and the media, committed to using communications to advance sustainable development. It offers a platform to share expertise, develop best practice and create synergies to support creative communications.
In 2005, the WBCSD participated in the Reuters Foundation workshop for African Journalists on how business can create market-based opportunities to reduce poverty. The council also contributed to a training exercise for North American and Developing Country Journalists on Climate Change, held in connection with the UN Climate Change Conference in Montreal in December. The objective was to give journalists access to the key players in the climate change debate.
39 Partnerships and Alliances
Working in partnership with other organizations is integral to the WBCSD’s work. In addition to the Regional Network, the WBCSD builds alliances with a variety of players to make sustainable development happen.
Business organizations/networks Asia Pacific Roundtable for Cleaner Production (APRCP) Manila, Philippines Business and Industry Advisory Committee (BIAC) Paris, France Business for Social Responsibility (BSR) San Francisco, USA Chatham House The Royal Institute of International Affairs London, UK The Conference Board New York, USA CSR Europe Brussels, Belgium Dow Jones Sustainability Index (DJSI) Zurich, Switzerland European Chemical Industry Council (CEFIC) Brussels, Belgium European Partners for the Environment (EPE) Brussels, Belgium The Forests Dialogue (TFD) New Haven, USA International Business Leaders Forum (IBLF) London, UK International Chamber of Commerce (ICC) Paris, France International Council of Forest and Paper Associations (ICFPA) Ottawa, Canada International Emissions Trading Association (IETA) Geneva, Switzerland International Risk Governance Council (IRGC) Geneva, Switzerland The Sustainability Forum Zürich, Switzerland World Economic Forum (WEF) Geneva, Switzerland World Energy Council (WEC) London, UK
Governmental and intergovernmental organizations Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) Eschborn, Germany Intergovernmental Panel on Climate Change (IPCC) Geneva, Switzerland International Energy Agency (IEA) Paris, France Organisation for Economic Cooperation and Development (OECD) Paris, France United Nations Commission on Sustainable Development (UNCSD) New York, USA United Nations Commission on Trade and Development (UNCTAD) Geneva, Switzerland United Nations Development Programme (UNDP) New York, USA United Nations Environment Programme (UNEP) Paris, France United Nations Food and Agriculture Organization (UNFAO) Rome, Italy UN Foundation New York, USA United Nations Forum on Forests (UNFF) New York, USA United Nations Framework Convention on Climate Change (UNFCCC) Bonn, Germany United Nations Industrial Development Organization (UNIDO) Vienna, Austria The World Bank Group Washington, DC, USA World Health Organization (WHO) Geneva, Switzerland World Trade Organization (WTO) Geneva, Switzerland
40 Institutes Universities and Initiatives AccountAbility London, UK Alliance for Global Sustainability (AGS) Cambridge (USA), Gothenburg, Zurich, Tokyo California Climate Action Registry Los Angeles, USA Centre for Applied Studies in International Negotiations (CASIN) Geneva, Switzerland Geneva University Geneva, Switzerland Global Business Coalition for HIV/AIDS New York, USA Global Reporting Initiative Amsterdam, The Netherlands Institute for Management Development (IMD) Lausanne, Switzerland International Institute for Environment & Development (IIED) London, UK International Institute for Sustainable Development (IISD) Winnipeg, Canada Schulich School of Business, York University Toronto, Canada Stockholm Environment Institute (SEI) Stockholm, Sweden Stockholm International Water Institute (SIWI) Stockholm, Sweden The Energy Research Institute (TERI) New Delhi, India United Nations Global Compact New York, USA University of Cambridge University Programme for Industry (CPI) Cambridge, UK University of North Carolina Chapel Hill, USA Yale University New Haven, USA
NGOs Bellagio Forum for Sustainable Development Osnarbrück, Germany Conservation International (CI) Washington, DC, USA Consumers International London, UK Earthwatch Institute (Europe) Oxford, UK Foundation for Business and Society Hovik, Norway The Natural Step International London, UK The Nature Conservancy (TNC) Arlington, USA The World Conservation Union (IUCN) Gland, Switzerland World Resources Institute (WRI) Washington, DC, USA WWF International Gland, Switzerland
41 Membership and Governance
Value to members The WBCSD is a unique, CEO-led, global association of companies dealing The foundation of the WBCSD’s work is to support the business license to operate, exclusively with business and sustainable development. The WBCSD acts as innovate and grow. It does so by helping an ambassador for its members in a variety of forums, working with companies better understand and manage the sustainable development challenges in governments, the NGO community and intergovernmental organizations. a number of ways. The WBCSD helps companies by:
• Providing a business vision on The council provides a platform for companies to explore sustainable sustainable development and acting as development, share knowledge, experiences and best practices, and to an antennae for emerging issues and trends; advocate business positions on these issues.
• Advocating the business case for sustainable development and Membership influencing the debate and public policy, thereby strengthening their Membership in the WBCSD is by invitation from the Executive Committee license to operate, innovate and grow; to companies committed to sustainable development and to promoting • Bringing a collective business voice, thus allowing individual companies to the role of eco-efficiency, innovation and corporate social responsibility. punch above their weight;
• Providing a platform for leading Member companies pledge their support and contribution to the WBCSD companies and senior-level decision- makers to debate key sustainable by sharing their knowledge, experience and human resources. They are development issues affecting business. asked to report publicly on their environmental performance and to aspire to widen their reporting to cover all three pillars of sustainable development: economic, social and environmental.
The personal commitment of the chief executive officers (CEOs) or equivalent, acting as council members, drives the council’s actions. They are influential advocates for the WBCSD’s policy positions, and they co- chair the focus areas and working groups. They also organize support for the WBCSD’s work program and ensure the adoption of sustainable management practices within their companies. A vital contribution is also made by Liaison Delegates, senior managers who provide feedback to their companies as well as back up their CEOs in fulfilling WBCSD responsibilities. They are encouraged to participate in the program areas that focus on issues of interest and importance to their company.
Governance The WBCSD is a member-led organization governed by the council members, who elect the Executive Committee, including the chairman and four vice chairmen. The council meets annually to define the organization’s priorities and to discuss strategic issues connected to sustainable development. These meetings also provide a forum in which business leaders can analyze and debate views and experiences of sustainable development.
The Executive Committee, which normally meets three times a year, oversees the management of the organization. Responsibility for the management of WBCSD affairs lies with the president, assisted by secretariat staff: 49 people from various international backgrounds, including four secondees from member companies and one from the 42 Dutch government. Executive Committee
Honorary Chairman Member benefits WBCSD membership enables companies to: Stephan Schmidheiny Switzerland • Make the business case for sustainable development; Chairman • Access state-of-the-art thinking on Travis Engen business and sustainable development President and Chief Executive Officer, Alcan Canada in order to anticipate emerging trends; • Participate in policy development and influence the framework conditions Vice Chairmen under which companies operate;
Samuel A. DiPiazza, Jr., • Engage in broad or sector-specific Global Chief Executive Officer, PricewaterhouseCoopers USA sustainable development initiatives through a credible business platform; Dr. Shoichiro Toyoda • Share best practices through Honorary Chairman exchanging information in a “safe” environment with peers from a cross Member of the Board, Toyota Motor Corporation Japan section of industries and countries;
• Access learning tools, specifically Members developed with the needs of WBCSD member companies in mind; Antony Burgmans • Collaborate with all sectors of society Chairman, Unilever The Netherlands/UK and engage stakeholders in this Bertrand Collomb process; Chairman, Lafarge France • Network with a select group of business leaders from around the Thulani S. Gcabashe world and benchmark sustainability Chief Executive, Eskom Holdings South Africa best practice; Michael Golden • Engage in results-oriented partnerships with NGOs and international Vice Chairman, The New York Times Company USA organizations that enhance the business license to operate, innovate Publisher, IHT and grow. Charles O. Holliday, Jr. Chairman and Chief Executive Officer, DuPont USA Anne Lauvergeon Chairman of the Executive Board, AREVA France Teruaki Masumoto Director, Tokyo Electric Power Company Japan Julio Moura Chairman and Chief Executive Officer, GrupoNueva Chile Chumpol NaLamlieng President, The Siam Cement Public Company Thailand Jeroen van der Veer Chief Executive, Royal Dutch Shell The Netherlands/UK
Ex-officio members Markus Wallenberg Vice Chairman, International Chamber of Commerce France Dr Steve J. Lennon Chairman of the Commission on Environment & Energy, International Chamber of Commerce France
43 Member companies & Council Members (by region & country) beginning 2006
Africa The Yokohama Rubber Co., Ltd. Tadanobu Nagumo South Africa Toyo Tire & Rubber Co., Ltd Yoshio Kataoka Eskom Holdings Limited Thulani S. Gcabashe Toyota Motor Corporation Dr. Shoichiro Toyoda Sappi Limited Dr. Rudolf Thummer Korea Asia GS-Caltex Corporation Dr. Dong-Soo Hur China Hankook Tire Co., Ltd. Choong Hwan Cho Baosteel Group Corporation Ms. Xie Qihua Kumho Tire Co., Inc. Sae-Chul Oh China Ocean Shipping (Group) Capt. Wei Jiafu POSCO Ku-Taek Lee Company (COSCO) Samsung Electronics Co. Kun-Hee Lee China Petrochemical Wang Jiming Asia Corporation (SINOPEC) Pakistan Pakistan International Tariq Kirmani Hong Kong, China Airlines CLP Holdings Limited Andrew Brandler Pakistan State Oil Company Jalees Ahmed Siddiqi Limited Chinese Taipei Chinese Petroleum Bao-Lang Chen Thailand Corporation PTT Public Company Limited Prasert Bunsumpun Chunghwa Telecom Tan Ho-Chen The Siam Cement Public Chumpol NaLamlieng Company Limited Japan Asahi Glass Co., Ltd Hiromichi Seya Central and Eastern Europe Bridgestone Corporation Shigeo Watanabe Croatia Chubu Electric Power Co., Inc Hiroshi Ochi Podravka d.d. Goran Markulin DENSO Corporation Hiromu Okabe Hitachi Chemical Co., Ltd. Yasuji Nagase Romania Honda Motor Co., Ltd Takeo Fukui Energy Holding SRL Enrique Ferrer Kajima Corporation Dr. Rokuro Ishikawa Kikkoman Corporation Yuzaburo Mogi Russia Mitsubishi Corporation Hidetoshi Kamezaki Basic Element Oleg V. Deripaska Mitsui & Co., Ltd. Yasunori Yokote JSC Gazprom Ms. Vlada V. Rusakova Nippon Paper Group, Inc Takahiko Miyoshi Sistema JSFC Vladimir Evtushenkov Nippon Telegraph & Ryuji Yamada Telephone Corporation Europe Nissan Motor Co., Ltd Nobuo Okubo Belgium Oji Paper Co. Ltd. Masahiko Ohkuni Umicore Thomas Leysen Osaka Gas Co., Ltd. Hirofumi Shibano Sanyo Electric Co., Ltd. Yukinori Kuwano Denmark Seiko Group Saburo Kusama Borealis A/S John Taylor Sompo Japan Insurance Inc. Hiroshi Hirano Brødrene Hartmann A/S Asger Domino Sony Corporation Teruo Masaki Novo Nordisk A/S Lars Rebien Sørensen Sumitomo Rubber Tetsuji Mino Novozymes A/S Steen Riisgaard Industries, Ltd. Taiheiyo Cement Corporation Michio Kimura Finland Teijin Limited Toru Nagashima Fortum Corporation Mikael Lilius The Kansai Electric Yoshihisa Akiyama Metsäliitto Group Kari Jordan Power Co., Inc Nokia Veli Sundbäck The Tokyo Electric Power Teruaki Masumoto Stora Enso Oyj Ms. Elisabet Salander Björklund Company Inc. UPM-Kymmene Corporation Jussi H. Pesonen
44 France EDP - Energias de Portugal, S.A. Francisco de la Fuente Sánchez AREVA Ms. Anne Lauvergeon Portucel Soporcel Group To be announced EDF Group Pierre Gadonneix Sonae SGPS, SA Nuno Azevedo Gaz de France Ms. Françoise Guichard Lafarge SA Bertrand Collomb Spain L'Oréal Ms. Béatrice Dautresme ACCIONA S.A. José Manuel Entrecanales Michelin Edouard Michelin Cementos Portland Valderrivas José Ignacio Martinez-Ynzenga Renault SA Louis Schweitzer Corporación Uniland S.A Francisco Reynés Suez Yves-Thibault de Silguy Repsol YPF Antonio Brufau Niubó Veolia Environnement Henri Proglio Sweden Germany AB SKF Tom Johnstone adidas-Salomon AG Frank A. Dassler Skanska AB Stuart E. Graham Allianz AG Michael Diekmann BASF AG Eggert Voscherau Switzerland Bayer A.G Werner Wenning ABB Ltd. Gary Steel Continental AG Manfred Wennemer F. Hoffmann-La Roche AG Dr. Franz B. Humer Degussa AG Dr. Thomas Schoeneberg Holcim Ltd. Markus Akermann Deutsche Bank AG Dr. Josef Ackermann Novartis Dr. Urs Bärlocher E.ON AG To be announced SGS S.A Dan Kerpelman HeidelbergCement Dr. Bernd Scheifele Swiss Re Christian Mumenthaler Henkel KGaA Dr. Wolfgang Gawrisch Syngenta International AG Martin Taylor Volkswagen AG Matthias Rabe The Netherlands Greece ABN AMRO Bank N.V. Tom de Swaan Titan Cement Company S.A Dimitri Papalexopoulos Akzo Nobel N.V. G.J.(Hans) Wijers DSM N.V. Peter A.F.W. Elverding Ireland Heineken N.V. To be announced CRH plc Liam O' Mahony ING Group N.V. Michel Tilmant Rabobank Group Drs. H. (Bert) Heemskerk Italy Royal Dutch Shell plc. Jeroen van der Veer Banca Monte dei Paschi di To be announced Royal Philips Electronics N.V. Ms. Barbara Kux Siena S.p.A. STMicroelectronics To be announced FALCK Group Dr.Eng. Achille A. Colombo TNT N.V. Peter Bakker Italcementi Group Ing. Carlo Pesenti Unilever N.V. Antony Burgmans Pirelli & Co Francesco Gori United Kingdom Norway Anglo American plc Sir Mark Moody-Stuart Det Norske Veritas Miklos Konkoly-Thege BG Group plc. Frank Chapman Leif Höegh & Co. AS Westye Höegh BP p.l.c. John A. Manzoni Norsk Hydro ASA Eivind Reiten Environmental Resources Dr. Robin Bidwell, CBE Norske Skogindustrier ASA Jan A. Oksum Management Group Statkraft AS Bard Mikkelsen KPMG Michael P. Wareing Statoil Ms. Nina Udnes Tronstad Rio Tinto plc R. Leigh Clifford Storebrand ASA Idar Kreutzer Severn Trent Plc Colin Matthews Vodafone Group Plc Alan Harper Portugal Banco Comercial Paulo Teixeira Pinto Latin America Português,S.A. Argentina CIMPOR Prof. Dr. Ricardo Bayão Horta Acindar S.A. Arturo Acevedo
45 Member companies & Council Members (by region & country) beginning 2006
Brazil IBM Corporation Nicholas M. Donofrio Aracruz Celulose S.A Carlos Alberto Vieira Interface Inc. Ray C. Anderson Companhia Vale do Rio Doce Eliezer Batista da Silva International Paper Company John V. Faraci Votorantim Group Fabio Ermírio de Moraes ITT Industries, Inc. Steven R. Loranger Johnson & Johnson Robert J. Darretta Chile Johnson Controls, Inc Jerome D. Okarma Codelco Juan Villarzú-Rohde Kimberly-Clark Corporation Ms. Cheryl A. Perkins GrupoNueva S.A. Julio Moura MeadWestvaco Corporation John A. Luke, Jr. Newmont Mining Corporation Wayne W. Murdy Mexico Oracle Corporation Sergio Giacoletto CEMEX Lorenzo H. Zambrano PepsiCo, Inc Steven S. Reinemund Grupo IMSA, S.A. de C.V. Lic. Eugenio Clariond Reyes PricewaterhouseCoopers LLP Samuel A. DiPiazza, Jr. Rohm and Haas Company Raj L. Gupta Republic of Panama S.C. Johnson & Son, Inc. Dr. H. Fisk Johnson Panamá Canal Authority Alberto Alemán Zubieta The Boston Consulting Group Dr. Dieter Heuskel The Coca-Cola Company Danny Strickland Middle East The Dow Chemical Company Andrew N. Liveris Saudi Arabia The Goodyear Tire & Rubber Robert J. Keegan ALJ Co., Ltd. Mohammed Abdul Latif Jameel Company The New York Times Company Michael Golden North America The Procter & Gamble Werner Geissler Canada Company Alcan Inc. Travis Engen Time Warner Inc. Don Logan BC Hydro Bob Elton United Technologies George David Petro-Canada Ron A. Brenneman Corporation Suncor Energy Inc Richard L. George Visteon Corporation Michael F. Johnston TransAlta Corporation Steve G. Snyder Weyerhaeuser Company Ms. Ernesta Ballard
USA Oceania 3M Dr. Frederik (Fred) J. Palensky Australia AES Corporation Paul T. Hanrahan BHP Billiton Limited Charles (Chip) Goodyear Air Products and John P. Jones, III Insurance Australia Group Michael Hawker Chemicals, Inc. Lend Lease Corporation Ross Taylor Alcoa Alain J.P. Belda Westpac Banking Corporation Dr. David Morgan Caterpillar, Inc. James W. Owens Woodside Energy Ltd. Donald R. Voelte CH2M HILL Ralph R. Peterson Chevron Corporation Ms. Rhonda Zygocki New Zealand ConocoPhillips Robert A. Ridge The Warehouse Ltd. Stephen Tindall Cooper Tire & Rubber Thomas A. Dattilo Company Dell Inc. John Medica Deloitte Touche Tohmatsu Jerry P. Leamon DuPont Charles O. Holliday, Jr. Entergy Corporation J. Wayne Leonard Exelon Corporation John W. Rowe Ford Motor Company To be announced General Electric Company John G. Rice General Motors Corporation Thomas A. Gottschalk Hewlett-Packard Company To be announced
46 WBCSD Personnel
President’s office Administration, Finance & HR Council Projects Björn Stigson Eric Dérobert Christian Kornevall Odd Gullberg Fabienne Lenders Olivier Borie Béatrice Paccard Energy Efficiency in Buildings David Harris Christian Kornevall Anne-Catherine Werner IT Management Nadja Crettol Water Business Development Georgette Roch Robert Martin Rebekah Young Eva-Jane Haden Reception Claudia Schweizer-Liégeard Christa Kaenzig Regional Network Marie Umdenstock Marcel Engel Sector projects Anne-Léonore Boffi Work Program Forest Products Odd Gullberg James Griffiths Estelle Geisinger Member Relations Margaret Flaherty Focus Areas Cement Sustainability Initiative Giuliana Ammirati Energy and Climate Howard Klee Cheryl Hicks Laurent Corbier Estelle Geisinger Catherine Morel (on secondment from AREVA) Béatrice Otto Adam Kirkman Mining and Minerals Dominique Rose Lorenz Koch Odd Gullberg Simon Schmitz Learning by Sharing Marieke van Gurp Sustainable Mobility Katherine Madden (on secondment from Dutch Ministry Odd Gullberg Hilary McMahon on Environment) Electricity Utilities Development Simon Schmitz Advocacy & Communications Shona Grant Lloyd Timberlake (on secondment from BP) Tire Sector Thorsten Arndt Cécile Churet Howard Klee Danielle Carpenter Sprüngli Shelley Hayes Estelle Geisinger Joséphine Chennell-Schibig Jeff Magongoa Jacqueline Coté (on secondment from Eskom) Chemicals Christa Kaenzig Mihoko Kimura Rebekah Young Kija Kummer (on secondment from Toyota) Michael Martin Anouk Pasquier-Di Dio The Business Role Initiatives Filippo Veglio Odd Gullberg (ad interim) Sustainable Health Systems Kija Kummer Howard Klee Rebekah Young Eva-Jane Haden
Sustaining Ecosystems Initiative James Griffiths Eva-Jane Haden
47 2005 Publications
General Energy & Climate Montreux Chronicle Energy & Climate Change: The Montreux Chronicle is the WBCSD's Sharpening the focus for action - official documentation of the WBCSD a business perspective Liaison Delegates meeting in Montreux, This paper, published in conjunction Switzerland (24-27 October 2005). with UNFCCC COP 11, highlights the WBCSD's business perspective on energy and climate change and outlines WBCSD Annual Review 2004 - key areas of short, medium and long- A decade of action and learning term actions. It welcomes the call for a The Annual Review 2004 highlights the "long, loud and legal structure" and milestones and achievements of the recommends elements to be included in past decade, a decade during which the a long-term policy framework.North WBCSD has broadened its focus from eco-efficiency to include social issues including poverty alleviation, and The GHG Protocol for Project corporate responsibility generally. Accounting Published in collaboration with the World Resources Institute, the GHG Development Protocol for Project Accounting aims to Business for Development - Business be a guidance manual as well as a tool solutions in support of the for quantifying and reporting reductions Millennium Development Goals from GHG projects. The uniqueness of This new WBCSD report makes the the protocol lies in its ability to business case for sustainable development by distinguish between policy decisions illustrating how the private sector is taking an and technical accounting aspects. active role in the achievement of the MDGs. Singling out framework conditions as the most important factor affecting business investment, Pathways to 2050 - Energy and the publication strongly advocates focusing Climate Change investment on a strong regulatory and legal Pathways to 2050 - Energy & climate framework, building the capabilities of local change builds on the WBCSD’s 2004 enterprises, and improving core infrastructure Facts and Trends to 2050: Energy and Climate Change and provides a more detailed overview of potential pathways Regional perspectives on to reducing CO2 emissions. “Sustainable Livelihoods & Business” This publication presents the features and findings obtained in a series of regional The Business Role dialogues on sustainable livelihoods. Beyond Reporting: Creating business Organized in cooperation with the value and accountability WBCSD's Regional Network and member Companies can turn regulatory compliance companies based in Latin America, Africa, and heightened corporate governance and Asia, the dialogues put special efforts into opportunities that create value emphasis on taking into account different for their businesses, according to a new cultural and socio-economic contexts report from the World Business Council for 48 when doing business with the poor. Sustainable Development (WBCSD). Ordering publications Sector Projects WBCSD, c/o Earthprint Limited, UK Forest Products Tel: +44 (0) 1438 748 111 The Sustainable Forest Products Industry, Carbon and Climate Change Fax: +44 (0) 1438 748 844 – Key Messages for Policy-Makers [email protected] The forest products industry can or via www.wbcsd.org contribute significantly toward reducing greenhouse gas emissions if certain policy recommendations are effectively implemented, says this report
Council Projects Cement Cement companies follow up on Water Agenda for Action Collaborative actions for sustainable Ensuring healthy and safe working water management conditions for employees and The sustainable management of water contractors is a fundamental key to makes an important contribution to the corporate social responsibility, and is achievement of social and economic one of the most important issues for the development. This can only be done cement industry. CSI members through all sectors working closely recognize that more attention should be together. The "Collaborative Actions" paid to this area across the whole presented in this document identify industry and are committed to playing a steps that business can take, in full part in that process. interaction with other stakeholders, to ensure sustainable water management. The Cement CO2 Protocol: CO2 Accounting and Reporting Standard for the Cement Industry Water and sustainable development: The protocol is intended as a tool for A business perspective cement companies worldwide. It provides "Scarce, cheap, and wasted. In too a harmonized methodology for calculating many places water is a triple paradox," CO2 emissions, with a view to reporting says this updated WBCSD paper on these emissions for various purposes. It water, which was originally prepared for addresses all direct and the main indirect the UN Commission on Sustainable sources of CO2 emissions related to the Development (CSD) in April 2004. Its cement manufacturing process in absolute message is straightforward: with no as well as specific or unit-based terms. water there can be no business.
The Cement Sustainability Initiative: Progress report Water Facts and Trends One of the largest global sustainability This working document provides an programs ever undertaken by a single overview of some basic facts and industry sector, the Cement Sustainability societal challenges related to water. The Initiative (CSI), released its first progress emphasis is on water availability and report today, three years after making its people’s use of water for agricultural, Agenda for Action public. industrial and domestic purposes.
Cement Employee safety in the cement sector: A Young Managers Team guidebook for measuring and reporting Perspectives - Corporate responsibility Ensuring healthy and safe working and business success in China conditions for employees and contractors To raise sustainability awareness in the is one of the most important issues for business community in China, the the cement industry. The purpose of Young Managers Team 2004 developed this document is to ensure the accurate a presentation pack on sustainable register of all occupational injuries of development. The information in the CSI member companies in order to have background briefing, together with the same basis on which to produce a specific briefings provided throughout consolidated report of safety indicators. the pack, should enable any individual to deliver an introduction to the topic for non-expert audiences. Guidelines for the Selection and Use of Fuels and Raw Materials in the Cement Manufacturing Process (Draft) Perspectives - Forestry and These guidelines provide a practical biodiversity issues in Brazil reference for cement companies and Biodiversity is the life support system of their stakeholders to help them to the planet and nowhere is it more understand and identify responsible and important than Brazil. The forestry sector sustainable approaches to the selection in Brazil accounts for five per cent of and use of fuels and raw materials. GDP and 10 per cent of the nation’s exports, a central part of both local and national economies. Yet how can forests Learning by Sharing be managed in an economically, Driving success: Human resources environmentally and socially viable way? and sustainable development Driving success describes three critical
challenges facing human resource Perspectives - Generation lost: young professionals today — recruiting and financial analysts and environmental, retaining top talent, creating incentives social and governance issues for exceptional performance and Integration of environmental, social, enhancing critical competencies. Rather and governance issues in financial than claim easy routes for HR managers analysis would spur progress toward to benefit from the challenge of more sustainable business practices. To sustainable development, it asks them to date, however, efforts to convince test the role and relevance of sustainable financial analysts to incorporate these development to their everyday work. issues have met with little success.
Driving success: Marketing and YMT 2004 - Making sustainability sustainable development connections This briefing has been designed for Despite a growing awareness of the marketing managers and people with impact the global population is having responsibilities for communications, on finite resources, global warming and brand management and new product health pandemics, a profound shift is development. It focuses on the issue of needed to move toward sustainable sustainable development, a term which business practices. To overcome these many marketers have become hurdles, the third year of the WBCSD's accustomed to hearing alongside jargon Young Managers Program (YMT) decided such as stakeholder engagement and to make sustainability connections 50 Corporate Social Responsibility (CSR). (available in various languages). Writer Mark Bloch Photo credits Pages 14-15 ©UNICEF94-1393 Shehzad Noorani Copyright © World Business Council for Sustainable Development ISBN 2-940240-90-6 Printer Atar Roto Presse SA, Switzerland Paper Containing 50% recycled content and 50% from mainly certified forests (FSC and PEFC). 100% chlorine-free. ISO 14001 certified mill. 51 Energy and climate change Energy and Climate Facts and Trends provides an overview of key facts and societal challenges related to economic development. Pathways to 2050: Energy and Climate Change provides a more detailed overview of potential
pathways to reducing CO2 emissions.
Development Sustainable Livelihoods project (video library) In 2001, the WBCSD’s Sustainable Livelihoods project and its member companies embarked on a learning journey to understand the role of business in creating wealth, opportunities and thriving markets in developing countries.
Business role WBCSD - Tomorrow’s Leaders Video From challenge to opportunity The role of business in tomorrow’s society
52 4, chemin de Conches Tel: (41 22) 839 31 00 E-mail: [email protected] CH-1231 Conches-Geneva Fax: (41 22) 839 31 31 Web: www.wbcsd.org Switzerland