“The Transformation of 

Sustainability ”

Terry F. Yosie, President & CEO

World Environment Center

National Advisory Committee for Environmental 

Policy & Technology

November 14, 2011
New Century Drivers = Risks + Opportunities

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Power Shifts Across the Global Chess Board

• Power transition 

→ Rise of the rest

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Source: Joseph S. Nye Jr., The Future of Power

• Power diffusion 

→ From states to non-states
Why Has Sustainability Become 

Important?

• Globalization of market-driven economic activity

• Emergence of global scale problems—a changed 

agenda (e.g., biodiversity, climate change, pandemics)

• Limitations of current institutions

• Evolution of global, middle-class, consumer values

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Sustainability Continues to Evolve: Beyond 

Brundtland... 

• Wealth creation in a different way—use of 

fewer natural resources and materials

• Transition to lower carbon economies

• Innovation opportunities and value creation—

at market scale

• Redefined roles and responsibilities for 

business, government, NGOs and consumers

• Adaptability for the longer-term—disruptive 

change

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Selected Case Examples: Companies 

Respond to Different Drivers

 Siemens

 IBM

 Unilever

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© 2009 IBM Corporation

Let’s build a smarter planet: Green & Beyond

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 In 2007, for the first time in history, majority of population lived in cities – 3.3B

 60 million people moving to cities each year

 59 cities with 5 million+ citizens by 2015

 70% world population living in cities by 2050 – 6.4B people

 India’s urbanization rate at 50% by 2030

 $40+ trillion investment in urbanization in China (2005-2025)

Smarter Cities – A complex System of Systems

EDUCATION • TRANSPORTATION • SOCIAL SERVICES • SECURITY • SAFETY • UTILITIES • HEALTHCARE • COMMUNICATIONS 

EDUCATION • TRANSPORTATION • SOCIAL SERVICES • SECURITY • SAFETY • UTILITIES • HEALTHCARE • COMMUNICATIONS 
It will:

1.Fuel innovation and growth

2.Help us win with customers

3.Help us grow in D&E markets

4.Build consumer preference

5.Generate cost savings

The business case for Unilever’s 

Sustainability Plan is compelling
Sustainability and Government 

Policy: The Example of China

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12th Five Year Plan

 Sustainability is a platform for economic development 

and restructuring of the economy to improve people’s 

lives

 Policy targets for farmland reserves, water 

consumption and quality, non-fossil fuel usage, 

decreased energy consumption, carbon reductions, 

air quality, and forestry reserves

 Integrated use of policy tools: technology standards, 

emission limits, taxes, carbon markets, critical 

investments, land use, research & development, joint 

partnerships, new infrastructure, industrial policy, 

develop emerging economic sectors
Sustainability and Policy: Criteria for 

Success

 Systems approach and institutional innovation—

environment/energy/economy

Example: particulate matter controls

 From risk assessment to life cycle analysis

 Closed loop systems—net zero buildings, net zero 

water consumption in industrial facilities

 Expanded transparency to create competitive 

markets: Example—New York City green building 

markets

 New competencies

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Criteria for Policy Failure

 Failure to invest in research and development

 Ignoring economics

 Assuming that one institution acting alone can be 

successful to solve large scale problems

 Remaining primarily a regulatory agency

 Believing sustainability does not require radical 

change in leadership and behavior

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Who has the advantage?

Nations, businesses and NGOs that demonstrate:

Future Scenario 

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Resilience Adaptability

Ability to Scale