World Economic Forum and International Chamber of Commerce G20 Task Force Final Report 8 September 2011 Chapter on Green Growth written in collaboration with Accenture Chapter on Infrastructure Development written in collaboration with PwC Chapter on the Role of Business in Society written in collaboration with McKinsey & Company Contents Introduction 4 List of Participating CEOs 6 Recommendations - Commodity Price Volatility 9 - Food Security 20 - Improving Transparency and Eliminating Corruption 27 - Green Growth 36 - Infrastructure Development 41 - Reform of the International Monetary System 48 - The Role of Business in Society 58 - Trade, Investment and Development 66 - Strengthening Financial Regulation and Ensuring the Availability of Trade Finance 70 Introduction The Korean government’s initiative to engage international business leaders in the G20 process last year was received positively by both government and business leaders. In their Seoul Summit declaration, G20 leaders stated that they “look forward to continuing the G20 Business Summit in upcoming summits” in recognition of “the importance of private sector-led growth and job creation”. Business leaders also expressed interest in continuing the process. In his closing remarks on behalf of business participants, SEB Chairman Marcus Wallenberg encouraged the World Economic Forum and the International Chamber of Commerce (ICC) to work together to bring this about. Following consultations earlier this year with the French government, the Forum and ICC formed a joint initiative to develop proposals for leaders on topics corresponding to the priorities President Sarkozy has identified for the G20’s work in 2011. This report contains concrete recommendations to increase economic growth and job creation, in particular in areas such as transparency and anti-corruption, infrastructure development, green growth, commodity price volatility and food security. These recommendations have been developed over the past half-year by seven working groups of the Forum’s International Business Council as well as the ICC’s G20 Advisory Group. This initiative has involved a number of positive innovations. First, as suggested by a number of G20 sherpas in a meeting with the Forum and ICC during the World Economic Forum Annual Meeting 2011 in Davos-Klosters, we are pleased to transmit these interim recommendations at a much earlier stage of the G20’s preparations than last year, in order for them to be considered while the Cannes Summit’s agenda and decisions are still being formulated. Many of the specific working groups, such as the food security working group, have been working directly with the relevant ministries to maximize their positive impact. Second, this final report is being transmitted to President Sarkozy and other G20 leaders in September, following a full-day review by CEOs and G20 troika sherpas and ministers during the International Business Council’s summer meeting in Geneva, Switzerland, on 25 August. This review helped ensured the rigour, relevance and realism of the proposals being put forward. Third, this year’s report goes beyond broad policy recommendations and focuses on specific, concrete actions. CEOs developed three types of proposals: those requiring government action, those that the private sector could implement directly, and those requiring public-private partnership. For example, the anti-corruption working group recommends G20 government action on fully implementing international anti- corruption commitments, private sector action in developing integrity assurance programmes and public- private cooperation in developing “white lists” to recognize companies that show consistent leadership in anti-corruption. Across the working group recommendations, companies make a number of specific commitments of actions, expertise and resources to support this new, more action-oriented agenda. Fourth, these recommendations have been developed in a spirit of cooperation and openness to ensure that the best recommendations are put forward, regardless of origin. Working groups have worked closely with other organizations, such as the World Food Programme on food security and the OECD and Transparency International on anti-corruption. We have coordinated our efforts with the French Business Association, MEDEF, with the view that the B20 should reflect the opinions and recommendations coming from all different business task forces and present a consistent and coherent set of conclusions to the G20. Most of the topics the joint Forum-ICC G20 Task Force has been asked to address are too fundamental and multi-faceted for governments or businesses to successfully address alone. Deeper, sustained cooperation between the public and private sectors encompassing both policy formulation and implementation – advice and action – is required if the G20’s ambition of stronger, more sustainable and more balanced global economic growth is to be fully realized. It is in this spirit that chief executive officers and chairmen of 80 of the world’s leading corporations offer the following agenda of smart policy and practical action on some of the most pressing challenges of our time for consideration by leaders of G20 countries. These recommendations of World Economic Forum working groups reflect the views of working group members alone and do not represent an institutional position of the World Economic Forum, nor do they necessarily represent the institutional position of the companies of participating CEOs. 4 We applaud President Sarkozy and the French government for carrying the G20’s engagement with the business community forward from Seoul. We commend these recommendations to the attention of leaders and look forward to having the business community play a constructive role before and during the Cannes Summit. Professor Klaus Schwab Executive Chairman World Economic Forum Maurice Lévy Chairman, G20 Working Groups, World Economic Forum Chairman and Chief Executive Officer Publicis Groupe, France Gérard Worms Chairman International Chamber of Commerce (ICC), France 5 List of Participating CEOs World Economic Forum G20 Working Group Commodity Price Volatility Chair Gérard Mestrallet, Chairman and Chief Executive Officer, GDF SUEZ, France Members Joshua Fink, Chief Executive Officer, Enso Capital Management, USA Kenneth A. Hersh, Founder and Chief Executive Officer, NGP Energy Capital Management, USA Gail Kelly, Chief Executive Officer and Managing Director, Westpac Banking Corporation, Australia Paolo Scaroni, Chief Executive Officer, Eni, Italy Marwan Shakarchi, Chairman and Chief Executive Officer, MKS Finance, Switzerland Peter Voser, Chief Executive Officer, Royal Dutch Shell, Netherlands World Economic Forum G20 Working Group Food Security Chair Paul Polman, Chief Executive Officer, Unilever, United Kingdom Members Paul Bulcke, Chief Executive Officer, Nestlé, Switzerland Emmanuel Faber, Co-Chief Executive Officer, Danone, France Joergen Haslestad, President and Chief Executive Officer, Yara International, Norway Ellen Kullman, Chair of the Board and Chief Executive Officer, DuPont, USA Stefan Lippe, Chief Executive Officer, Swiss Re, Switzerland Mike Mack, Chief Executive Officer, Syngenta, Switzerland Indra Nooyi, Chairman and Chief Executive Officer, PepsiCo, USA; Member of the Foundation Board of the World Economic Forum Lubna S. Olayan, Deputy Chairperson and Chief Executive Officer, Olayan Financing Company, Saudi Arabia Irene B. Rosenfeld, Chairman and Chief Executive Officer, Kraft Foods, USA Daniel Servitje, Chief Executive Officer, Grupo Bimbo, Mexico Patricia A. Woertz, Chairman, President and Chief Executive Officer, Archer Daniels Midland (ADM), USA World Economic Forum G20 Working Group Improving Transparency and Eliminating Corruption Chair David T. Seaton, Chief Executive Officer, Fluor Corporation, USA Members Tom Albanese, Chief Executive Officer, Rio Tinto, United Kingdom Rahul Bajaj, Chairman, Bajaj Auto, India Mark Cutifani, Chief Executive Officer, AngloGold Ashanti, South Africa Douglas Frye, Global President and Chief Executive Officer, Colliers International, USA Kris Gopalakrishnan, Chief Executive Officer and Managing Director, Infosys Technologies, India Marie-Christine Lombard, Chief Executive Officer, TNT Express, Netherlands Peter Loscher, President and Chief Executive Officer, Siemens, Germany Harold McGraw, Chairman, President and Chief Executive Officer, McGraw Hill Companies, USA James H. Quigley, Senior Partner, Deloitte, USA Ben J. Verwaayen, Chief Executive Officer, Alcatel-Lucent, France; Member of the Foundation Board of the World Economic Forum 6 World Economic Forum G20 Working Group Green Growth Chair Shi Zhengrong, Chairman and Chief Executive Officer, Suntech Power, People’s Republic of China Members Brian Dames, Chief Executive Officer, Eskom Holdings, South Africa Ditlev Engel, President and Chief Executive Officer, Vestas, Denmark Daniel Feffer, Vice-President, Suzano Holding, Brazil Jose Antonio Fernandez Carbajal, Chairman and Chief Executive Officer, FEMSA, Mexico Gao Jifan, Chairman and Chief Executive Officer, Trina Solar, People’s Republic of China Andrew N. Liveris, Chairman and Chief Executive Officer, The Dow Chemical Company, USA James E. Rogers, Chairman, President and Chief Executive Officer, Duke Energy, USA Feike Sijbesma, Chairman and Chief Executive Officer, Royal DSM, Netherlands Tulsi R. Tanti, Chairman and Managing Director, Suzlon Energy, India Peter Voser, Chief Executive Officer, Royal Dutch Shell, Netherlands