Sustainable Development

Sustainable Development
Sustainable Development is the process by which we move towards sustainability development that meets the needs of the present without compromising the ability of future generations to meet their own needs
(World Commission on Environment and Development, 1987)

This was endorsed in 1992 at the Earth Summit in Rio

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5 Guiding Principles
Living Within Environmental Limits Ensuring A Strong, Healthy & Just Society Achieving A Stable Economy Promoting Good Governance Using Sound Science Responsibly

Sustainable Development
Prior to the second half of the twentieth century, the idea of development as we know it today barely existed Economic growth became the original development model, asking for structural adjustment in developing countries But such policies failed to provide basic needs to all and created many problems in themselves This led to the notion of SD
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Sustainable development
Was the central term of the WCED (1987) report Our common future Sustainable development came to be formulated as a different kind of growth, one that is not harmful to the environment and brings wealth to people all over the world In this meaning sustainable development is about conservation rather than preservation
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Principle-based approaches
Non-declining natural capital or non-declining welfare (Solow) Avoiding over-exploitation of renewable resource systems, maintenance of biodiversity, atmospheric stability Distributional equity, adequate provision of social services Political accountability and participation

Agenda for Action

Zero Population growth for the world as a whole Improvement in general quality of life Conservation of natural resources of land, water, energy, minerals Recycling the waste & other material Protecting the atmosphere from pollution International cooperation on issues of global importance Environmental awareness Appropriate legislative measures for wildlife & environment protection Protection to bio-diversity & preserving the natural wild nesses Intensive research to discover ways & means to preserve the environment

Challenges for Sustainable Development

Social Challenges (Poverty, population pressure, lake of awareness, illtetrarcy) Political Challenges (Population growth+new job+new supplies) Economic Challenges (Lake of finance, inflation etc.

Human activity = impacts

Ozone Depletion

Global Warming

Water, Air, & Land Pollution

Reduction of Biodiversity

Resource Depletion

Population Increase & Economic Growth

Sustainable development covers many topics

 Demography  Wealth  Nutrition  Health  Education  Consumption  Energy  Pollution  Emissions and waste generation  Efficiency  Ecosystems  Climate change  Agriculture  Human rights  Water  Urbanization  Mobility  Communications  Labor  Democracy  Accountability  Privatization  Biodiversity

A changing global landscape

In a world of instant communications, whistle blowers, inquisitive media, and googling, citizens and communities routinely put firms under the microscope. Tapscott and Ticoll (2003)

Issues include:
Communications CNN world Changing expecations of consumers

Valuation including intangibles and knowledge Free movement of goods and services Finite nature of resources carrying capacity Changing demographics haves and have nots Changing role of business and government

Context: Demography

8 7 6 5 4 3 2 1 0 1995 2030 Developing world Industrialized countries

Today: 6 billion human beings on Earth 2030: population will reach 8 billion, of which 7 billion will live in the developing world Populations will increasingly move towards cities, creating megalopolises


Rural Urban

100% 80% 60% 40% 20% 0% 1950 2000 2030

Slide 12 spr1 Reference???

Sprungli, 4/9/2005

Context: Natural resource needs

Poverty eradication & population growth lead to a rising demand for materials and natural resources

OIL, GAS, URANIUM, MINERALS, CLEAN, WATER are finite and limited resources, and could become rare in the near future

Land pollution
Land Pollution: Agriculture + industrial activities + waste generation
- Intensive use of chemical fertilizers - Intensive land exploitation
Global Consumption of Fertilizers
160000 Ktons of NPK nutrient 120000

x 4.5 in 40 years
80000 40000

0 1960

1970

1980 Year

1990

2000

Fertilizer consumed

Air pollution
- Main environmental threat to human health - SO2 and NO2 emissions Acid rain

CITY

PARTICLES ( g/m3) [1995]

SO2 ( g/m3) [1998] < 50 14 26 90 33 18 3

NO2 ( g/m3) [1998] < 50 57 79 122 39 68 20

WHO STANDARDS PARIS NEW YORK BEIJING BOMBAY TOKYO STOCKHOLM

< 90 14 .. 377 240 49 9

The Greenhouse Effect

Biodiversity
Global biological diversity is decreasing, due to direct and indirect human activity: hunting, loss of natural habitat (deforestation, desertification), etc. The continuous decrease in animal and plant populations results in a loss of genetic diversity

Roles and responsibilities

Globalization goes together with the emergence of a growing number of stakeholders (more demanding and powerful)
PRESERVE PEACE & STABILITY SEEK GLOBAL LONG-TERM SOLUTIONS POWER TO RULE, INCITE, TAX

Institutions Investors NGOs Individuals Businesses

DEMAND MORE TRANSPARENCY, INFORMATION AND ETHICS; INCLUDE SOCIAL & ENVIRONMENTAL PERFORMANCE IN BUSINESS NOTATION POWER TO PROVIDE FUNDS

DEMAND TO BE CONSULTED AND ASSOCIATED POWER TO INFORM AND DENOUNCE (MEDIA, INTERNET, JUSTICE, )

SEEK QUALITY OF LIFE AND SECURITY DEMAND FREE CHOICE POWER TO VOTE, DENOUNCE, BOYCOTT

CONTRIBUTE SERVICES, PRODUCTS AND TECHNOLOGY TO SOCIETY BALANCE ECONOMIC PROFITS WITH THE LONG_-ERM SUSTAINABILITY OF THE BUSINESS

Increased awareness
VALDEZ

1948: 1961: 1970s: 1980s: 2002:

Declaration of human rights WWF, amnesty international Environmental movements 1984: Bhopal; 1986: Chernobyl; 1989: Exxon Valdez Enron, WorldCom

Global frameworks and initiatives

SarbOx
The search for solutions is happening on a global scale and is being led by both public institutions and as part of private initiatives. Solutions include new legislation, stakeholder partnerships, voluntary agreements, codes of conduct, multilateral agreements, interdependent actions, etc.

Key for success in sustainable development

Maintain the balance between economic growth, environment, and social aspects by: An integrated approach for business operations; Partnerships among stakeholders; A Cross-disciplinary approach.

Natural resources & energy

Planet Health & Safety, equity People Profit

Economic growth

Depletion of natural resources

Land degradation and desertification
The use of chemical fertilizers in China is two times
higher than in other countries

Continuous expansion of desert = desertification 1950s 1970s: 1,500 km2/yr 2003: 3,000 km2/yr Sandstorms from the Gobi desert hit Northern China
every year, reaching into Korea and Japan, and sometimes even crossing the Pacific Ocean and arriving at west American shores
* Ref: UNIDO

Depletion of natural resources

Water pollution and consumption
Water availability in China is between 4 and 5 times less than world average Presently 70% of cities have water shortages Availability Pollution Inefficiency Irrigation, that accounts for 60% of use of water, suffers from leakages and losses of great magnitude 60% of rivers and 90% of urban underground water are highly polluted Industrial output needs on average about 7 times more water than more sustainable economies

Requirements 30 bln US$ required to solve urban water management in all cities (> 600.000)
* Ref: UNIDO

Depletion of natural resources

Mineral deposits
China is already the worlds largest consumer of many commodities, such as steel, copper, coal and cement. Its increased needs account for much of the 50% rise in the worlds commodity prices over the past three years. Coal Largest producer and consumer in the world, and Consumption expected to rise further from 1.2 billion metric tons (2000) to 2.2 billion (2030) US$ 120 billion would be required to modernize mines & install clean combustion systems (IEA)

Proven coal reserves

USA ex-USSR China Rest of the World

Reserves = 334.5 billion metric tons (only 3rd in the world)

Pollution of natural resources: air pollution

Caused by high SO2 emissions from coal combustion China focus acid rain as a serious problem A growing volume of traffic results in growing NOx emissions China is responsible for 36% of worldwide pollutant emissions Respiratory and heart diseases related to air pollution are the leading cause of death in China

CITY

PARTICLES ( g/m3) [1995]

SO2 ( g/m3) [1998] < 50 26 90 3

NO2 ( g/m3) [1998] < 50 79 122 20

WHO STANDARDS NEW YORK BEIJING STOCKHOLM

< 90 .. 377 9

Out of the 20 most polluted cities in the world, 16 are in China.Estimated annual health costs due to air pollution is 44 bln RMB
* Ref: The Economist, + UNIDO

Urbanization and poverty

 Rural poverty:
- while 60% of the population lives in rural areas, they contribute to only 16% of GDP - income ratio urban-rural estimated at 3 to 1

 Urbanization: rate of migrant workers approx. 8 million people each year  Cities are facing problems in delivering infrastructure and services  Slums may start to appear in cities  Increased urban unemployment and loss of social security tied to stateowned enterprise reform
Rate of Urbanisation
80% 70% 60% 50% 40% 30% 20% 10% 0% 2050 1980 1990 2000 2010 2020 2030 2040

 These trends are causing a growing

urban poor class.

Year

Environmental Regulatory Status

Legal standards similar or equal to EU legislative and policy initiatives: Restriction on Hazardous Substances (RoHS) Directive Waste in Electrical & Electronic Equipment (WEEE) Directives REACH proposal on Chemicals Eco-design of energy-using products (EuP) Prevention and Control of Environmental Pollution Caused by Solid Waste drafting work recently commenced to amend existing law and include: Control of hazardous wastes Provisions reflecting regulatory concepts such as extended producer responsibility

Business demands
Doing Business in a networked world Information, knowledge, people and goods move around the globe as never before. Beyond compliance, businesses need to meet international agreements & standards Investors & international market - increasing demand for sound SD practices Trends : accountability and transparency Companies face increasing and partly conflicting demands from stakeholders:  Shareholders - high returns  Customers - affordable and high-quality products  Public pressure groups - more environmental protection and social engagement  Trends accountability and transparency  Employees safe and healthy workplace with fair compensation

Implementing sustainable development

Assess the situation Measure success Implement Develop a strategy

Has your company taken any SD initiatives? Can you identify any gaps? What can you do as an individual, as a team, function or company, to contribute to limit use of energy, water and other resources? What resources will enable you to achieve this? Can you identify any barriers?

Assessing: General checklist

Does your company: Use energy and water Use natural resources and supplies Generate waste Discharge water, emit air containing chemical substances

Benefits to be gained from incorporating sustainable development into business management practices

Produce products that use energy and/or water, or emit pollution Need to comply with environmental legal requirements Have international business practices Provide service/goods to international markets/companies Aim to enhance its public image/reputation and increase company brand value Have concerned stakeholders (government, consumers, businesses, employees, investors, NGOs, etc.)

Developing: Your companys place in society

Your company is a stakeholder in many shared societal processes Pollutes Shared Environments Impacts Local Economies Supports Workers and Families

Provides Goods & Services

Your Company

Uses Communal Resources

Consumes Limited Resources

Influences Government

Provides Health Care & Education

Benefits of an environmentally sound business practice (e.g. EMS)

Increases productivity Reduces production costs Produces safer and better products Reduces levels of pollution and risk Improves workers safety and health Complies with Environmental Management Systems (ISO 14000) Recognition from business partners Link-up with international markets Improves company image

Implementation of EMS in all aspects of business will make a company more profitable and competitive