## “The Transformation of

Sustainability ” Terry F. Yosie, President & CEO World Environment Center National Advisory Committee for Environmental

Policy & Technology November 14, 2011New Century Drivers = Risks + Opportunities

2Power Shifts Across the Global Chess Board



### • Power transition → Rise of the rest

3 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

4Sustainability 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

5

## Selected Case Examples: Companies 

## Respond to Different Drivers

 

## Siemens

 

## IBM

 

## Unilever

6© 2009 IBM Corporation Let’s build a smarter planet: Green & Beyond

8  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

10 12 th 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

11

## 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

12

## Who has the advantage? Nations, businesses and NGOs that demonstrate: 

## Future Scenario

13 

### Resilience Adaptability

Ability to Scale