Development Focus Area

Overview & work program 201021 January 2010

Development context & business role

WBCSD role and platforms

Engagement opportunities for WBCSD members and regional partners

Key messages & partnerships

Outline

Historic shift of economic and political power from the traditional base of

industrialized countries in the West to emerging economies

The Development context – 1

Yet: poverty and inequity remain critical challenges for sustainable development and global stability

% share of global GDP

The Economist, 3 July 2008, “Wrestling for influence”

Source: Angus Maddison, OECD; IMFFrom The Economist print edition. “Wrestling for influence.” 3 July 2008

0

20

40

60

80

1913 1950 2005 2025

Emerging economies Developed economies

Development: The Poverty Challenge

Income poverty:Over 2 billion people live on less than $2/day

Food poverty: Close to 1 billion people are undernourished

Energy poverty: 1.6 billion people today without access to electricity

Mobility poverty: 900 million people without access to transport

Water poverty: 1.8 million deaths per year due to lack of sanitation, poor hygiene and unsafe drinking water.

Sanitation poverty: 2.5 billion people without access to hygienic sanitation

The Development context – 2

Exponential increase in demand for energy and natural resources to meet needs and aspirations of growing and increasingly urbanized population in emerging economies – growing pressure on world’s ecosystems

The Development context – 3

The Economist, 19 September 2009

47% urban

60% urban

1970 2000 2030

36% urban

urban

rural

70% urban

3.2 3.32.9

5.0

1.3

2.4 2.8

6.4

2050Source: United Nations, World Urbanization Prospects: The 2007 Revision

Billions of inhabitants

The Development context – 4

The Economist, 19 September 2009

Emerging economies will be most affected by the consequences of climate change and environmental degradation

No longer a choice between growth and ecological well-being

Need to improve the living standards of the world’s population while preserving the environment

Key: transition to a more inclusive, low-carbon and resource efficient economy

Population affected by climate-related disasters

 Business: – Engine of economic growth and employment, source of

technology and innovation– Critical role in providing solutions towards a more

sustainable and equitable world

Business case: – Business cannot succeed in societies that fail– Risk management– Build positions in tomorrow’s growth markets– Transition to a more sustainable

world: major business opportunity

The role of business in Development

Create awareness among business on risks and opportunities

Define the business role in sustainably addressing key development challenges and advocate business perspectives to policy makers and other relevant stakeholders

Demonstrate leadership by promoting business-led action on the ground

WBCSD’s role in Development

Company

BPBrisaCodelcoERMGeneral ElectricGrupoNueva SC Johnson

Toyota

FACT members

Iain Conn, CEO, Refining & Marketing Vasco de Mello, Chairman & CEO José Pablo Arellano, Pres. & CEODr. Robin Bidwell CBE, Exec. ChairmanJohn Rice, Vice ChairmanRoberto Salas, CEOSteven Stanbrook, President, Developing MarketsDr. Fujio Cho, Chairman and Representative Director

Leadership: Development Focus Area Core Team (FACT)

Co-Chairs

Members of the Working Group

June-September 2009: review of future strategic direction and priorities in consultation with the FACT

Decision: broaden scope – From primarily focusing on doing

business with low-income communities….

– …towards addressing the business role in improving the living standards of the growing and increasingly urbanized populations of the developing world in a sustainable way

Broader scope for the Focus Area

Offers more flexibilityin engaging in a broader set of activities along a number of platforms

Creates greater synergies with the Regional Network and other relevant WBCSD programs

New structure

Defining and refining the business role in development through an advocacy piece on the role of business in a changing geopolitical and economic context and a series of issue briefs.

Promoting the application of the Measuring Impact Framework and feeding its findings into international measurement initiatives.

Demonstrating leadership in action by consolidating the inclusive business initiative in Latin America and promoting its replication in Africa, Asia, and the Middle East.

Implementing a new initiative on “Unlocking the Benefits of Local Content”.

Advocating business messages and solutions at relevant international processes and regional initiatives.

Profiling business contributions to development and sharing best practice through articles, case studies, videos, e-newsletter, etc.

Objectives for 2010

Platform for leading-edge

thinking and messaging on

business and development Forthcoming:

– Advocacy piece on the business role in development, outlining WBCSD vision on Development

– Discussion series / Issue briefs (on- and off-line) on specific topics

– Quarterly Executive Update to members and regional partners

Thought leadership

Tools

Platform to access WBCSD tools to enhance companies awareness and capacity to respond to development risks and opportunities

Examples: – Measuring Impact Framework

• Helping companies measure and assess impacts to inform investment decisions and conversations with stakeholders

• Currently focusing on uptake by members and partners (also in cooperation with the WBCSD’s Future Leaders Team) and on providing input to external measurement frameworks such as Business Call to Action on the Millennium Development Goals, Oxfam, and others

• Forthcoming: summary of impact measurement initiatives– Relevant tools from other WBCSD programs:

• GHG Protocol• Global Water Tool• Ecosystems Services Review

Regional engagement and action

Platform for cooperation with WBCSD’s Regional Network partners in developing countries and emerging economies

Examples: • WBCSD-SNV Netherlands Development Organization Alliance in 9 Latin American countries – 40

inclusive businesses ventures currently being implemented and ambitions of expansion to Africa and Asia. Forthcoming: publication capturing lessons learned and highlighting case stories.

• Latin American Network of Inclusive Business Leaders – engagement of forward-thinking CEOs in advocacy & implementation

• Annual WBCSD road shows – roll-out of WBCSD’s program and engagement of business and opinion leaders in key emerging economies (Brazil, China, India, Mexico, South Africa)

• Other WBCSD projects– Vision 2050 workshops – providing input and credibility

to the global project– WBCSD Sector Project dialogues – adding regional perspectives

and testing messages

Platform for companies to launch development-related projects under the umbrella of the WBCSD

Examples:– Mobility for Development (concluded)

• 3-year project completed mid-2009• Outreach phase, focus on disseminating the report’s

findings and messages at relevant international and regional events

– Initiative on “Unlocking the Benefits of Local Content”• Main aim: produce material that supports companies’ dialogues with

governments and other stakeholders to enhance the local economic benefits of investments

• Drawing on experiences of different companies,

countries, and organizations

Initiatives

Advocacy

Platform to access and influence international processes and initiatives

Examples– Global Platforms

• Business Call to Action on the Millennium Development Goals

• UNDP Growing Inclusive Markets Initiative

• Financing for Development

• UN Development Cooperation Forum

– Regional Initiatives

• Inter-American Development Bank

• Asian Development Bank Energy for All Partnership

• Energy Poverty Action with WEF and WEC

Platform to profile leading edge business practices

and contributions to development Examples:

– Sustain magazine October 2009 • Features a dozen Development-related stories and cases

– WBCSD website – news stories, case studies, speeches,

project updates, key documents • Case studies accessed on average 3’000 times

within 3 months of posting

– Monthly Business & Development e-newsletter • 14’000 subscribers to date

– Inclusive Business blog • Average of 5 new articles per month, 3’500 page views

per month

Communications

Participate in the project on “Unlocking the Benefits of Local Content” Help shape the WBCSD’s vision on Development by reviewing the

forthcoming advocacy piece Apply the WBCSD Measuring Impact Framework to your company’s

operations Suggest topics and / or lead discussions with members and Regional

Network partners (both on- and offline) Participate in workshops of the Latin American Inclusive Business Leaders

initiative in Mexico, Central and South America Join inclusive business initiatives in Latin America, Africa, Asia or the

Middle East Take advantage of speaking opportunities offered through WBCSD’s

participation in advocacy platforms Profile your company’s contributions to development through

articles, case studies, videos, etc. via WBCSD

How can WBCSD members and Regional Network partners tap into these platforms?

Business is a solution provider– As an engine of economic growth and employment and a source of technology

and innovation, business can provide solutions to critical development challenges.

Business is the major source of capital for developing countries– Aid is important, but the transition towards sustainable development in developing

countries will require mobilizing private sector investments, which account for 85% of global financial flows.

The sustainable development of developing countries is a business opportunity

– Major technological and infrastructural investments to sustainably meet the needs of a growing population in developing countries areneeded. This represents a major business opportunity for companies that anticipate trends and respond with smart solutions.

Key messages – 1

Business cannot succeed in societies that fail – By understanding and proactively addressing socio-economic and environmental risks, companies

can underpin their license to operate, innovate and grow.

Inclusive business equals a win-win for business and society– By including low-income communities in their value chains, companies can meet their aims of growth

and profitability, while addressing societal needs.

What gets measured gets done– By measuring the impact of business on society companies can understand their role and

contribution to development and make better operational and investment decisions to improve this contribution.

Business cannot solve poverty, but poverty will not be solved without business

– For business to effectively contribute to sustainable economicgrowth, the appropriate legal, institutional and financial framework conditions need to be in place – globally, regionally and nationally.

Key messages – 2

Partnerships

www.wbcsd.org/web/development.htm