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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)
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
Global Warming
Reduction of Biodiversity
Resource Depletion
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
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
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
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
Declaration of human rights WWF, amnesty international Environmental movements 1984: Bhopal; 1986: Chernobyl; 1989: Exxon Valdez Enron, WorldCom
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.
Economic growth
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
Requirements 30 bln US$ required to solve urban water management in all cities (> 600.000)
* Ref: UNIDO
CITY
< 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: 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
Year
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
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?
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.)
Your Company
Influences Government
Implementation of EMS in all aspects of business will make a company more profitable and competitive