Sustainability in Practice: the View from Business

An interview with Björn Stigson, President, World Business Council for Sustainable Development.

Sustainable Development often looks like a bolt-on activity for corporations. How can they mainstream it their business strategy?

Sustainable development is about aligning the three elements -- economy, environment and social structure -- within a functioning governance system so that today's needs are met in ways that do not compromise the ability of future generations to meet their own needs.

More and more, a company's license to operate, innovate and grow is determined by "sustainability issues": climate change, social progress and balanced ecosystems. The space for doing business is increasingly shaped and defined by these issues.

Pursuing sustainable development is a prerequisite for success in this resource and carbon constrained world, but minimizing resource use and pollution makes firms also more competitive, more resilient and more likely to win and retain customers. It can also help them attract the best brains on the market. In addition, it addresses concerns of investors and insurers regarding company exposures to regulatory and other liabilities.

Business cannot succeed in societies that fail. There is no future for successful business if the societies that surround it are not working.

Most are agreed that market mechanisms have a key role to play in tackling climate change. But what about in protecting ecosystems?

Like carbon, there is a growing market for biodiversity and ecosystems. There is, at present, no uniform metric to guide what would be traded and most ecosystems and their services have characteristics of public goods.

We do see markets as part of the solution, but also clearly recognize the need for governments to provide the legal and regulatory frameworks that will give market actors the certainty and liquidity of transaction volumes that are needed for the growth of these markets and create the incentives needed for adopting sustainable practices. In countries like the US, progress has been made in establishing markets for wetlands and biodiversity.

What part do biofuels play in the future energy mix. Aren't they a mixed blessing at best?

We need fundamental changes in our energy systems. Research, development, demonstration and deployment of next generation technologies is essential. Bio-energy therefore should not be arbitrarily excluded from this effort. However, it is clear that bio-energy is not a panacea. Like any new technology, it has inherent risks that must be explored and minimized.

It can make a positive contribution to our efforts to de-carbonize. But it is not clear at what scale. As many have pointed out, we must be careful about its impacts. We must assure ourselves for any given technology and feedstock that the life cycle greenhouse gases mitigation is positive. We must also be certain that with any bio-energy pathway, the food supply to poor countries is not disrupted.

Do we have adequate structures for engaging China and India on environmental issues?

There is now absolutely no doubt that developing countries, especially China and India are firmly seated at the table when it comes to international deliberations such as the processes of the United Nations Framework Convention on Climate Change, and other international processes.

In terms of international business engagement we have various conduits to engage in China and India. I'm pleased that a number of World Business Council for Sustainable Development (WBCSD) companies are from China, for instance Sinopec, COSCO and Baosteel. Our Indian companies include Reliance industries and Infosys. Further to this, we work closely with our partner organizations the China Business Council for sustainable Development, TERI BCSD and the Confederation of Indian Industries.

Finally, I am pleased to say that I represent the WBCSD on a high level advisory body to the Chinese government.

This includes the China Council for International Cooperation and Development and within this body, I co-chair a newly created task force which is considering how to move China toward a low carbon economy.

Clearly, this is no easy task, but my impression is that the Chinese are showing enormous willingness to take these imperatives seriously.

Read full article on the WBCSD website

Source: WBCSD website