The big news from Montreux

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1 Montreux Highlights

2 The big news from Montreux How to make bold climate action your biggest business opportunity - Our new website for the Low Carbon Technology Partnerships Initiative (LCTPi) brings you all the information. Climate change is the most pressing challenge we face - Our updated CEO Guide to Climate Action aims to provide clarity on the different ways you can engage your company. Land is an essential asset for your business and its degradation represents a major risk - A Declaration of Intent signed on 22 April between the WBCSD, the UNCCD and the Turkish Ministry of Foreign Affairs launched the Road to Ankara formalizing business-government collaboration in sustainable land management and land restoration in the lead up to COP12 in October. A Memorandum of Understanding signed on 21 April with the WBCSD, the Sustainable Trade Initiative (IDH) and The Forests Dialogue (TFD) will develop collaborative approaches to sustainable landscape management. We joined the #futureisclean movement calling for clean technologies to be part of the global political agenda at COP21 in Paris. WBCSD members joined a Twitter #UpChat on Earth Day with Unilever, the UN, Upworthy and the WBCSD on climate change and deforestation. We released the results of our member satisfaction survey.

3 CONTENTS Mr YC Deveshwar 04 Chairman of ITC Limited Low Carbon Technology Partnerships 05 initiative Montreux outcomes Clusters and value chain projects and cross-cutting programs Other highlights from Montreux 23 Looking forward 24 Key policy highlights in 2015 You loved the new WBCSD events app! Years of the WBCSD 26 A new approach to catering 27 Souvenirs from Montreux 28 03

4 Mr YC Deveshwar, Chairman of ITC Limited and co-chair of the WBCSD Social Impact cluster, joined us for dinner on Tuesday 21 April. In a one-on-one conversation with Peter Bakker, Mr Deveshwar shared his strategy and rationale for transforming ITC into a multi-billion enterprise known for its sustainability achievements. Mr Deveshwar inspired new approaches and long term action, designed to work in an emerging market context, to make ITC the only company in the world today that is carbon positive, water positive and solid waste recycling positive: all while creating livelihoods for over 6 million people. 04

5 Low Carbon Technology Partnerships initiative Turning ambitious climate action into a major business opportunity 80 companies. 8 working groups. One shared ambition: Scale up the deployment of low carbon technologies to limit global warming to 2 C and support the adoption of a strong climate agreement at COP21. 8 active working groups are focusing on the development of advanced biofuels, carbon capture and storage, chemicals, cement, climate smart agriculture, energy efficiency in buildings, forests as carbon sinks and renewables. The statements of ambition and action plans formulated in Montreux demonstrate the importance of low-carbon technologies to future business success. Next steps Work on action plans to overcome key barriers to meeting the statements of ambition and ensure scale up at the Paris roundtable on 19 May. Develop and test the shared actions through the Action2020 Climate Dialogues in South Africa, the United States, Brazil, India, Japan and China. Conduct a final roundtable ahead of Paris 05

6 Montreux outcomes Clusters and value Chain Projects Social Impact Sustainable Lifestyles Climate and Energy Water Ecosystems and Landscape Management Safe and Sustainable Materials Redefining Value The Forest Solutions Group Food and Biomaterial Solutions Sustainable Buildings and Cities 06 Sustainable Mobility Project Reaching Full Potential Tire Industry Project Cement Sustainability Initiative Global Network

7 Social Impact Cluster Summary The new DIVA initiative (Development through Impact Venturing Acceleration) was announced. DIVA will work with companies to explore and exploit business development opportunities in emerging markets. Collaboration continued with the Social Capital Protocol work program to develop and test a standardized approach to measurement and valuation on skills, employment and safety. A Road Safety learning by sharing session indicated that there is appetite for developing a Road Safety Pledge similar in spirit to the WASH pledge. Key Objectives for 2015 Continue to catalyze business solutions and collaboration to fuel inclusive growth in alignment with the Action2020 priority areas. Deliver value to WBCSD members through the four ongoing business solutions: inclusive business; human rights; skills & employment; and rural livelihoods. Continue to leverage collaboration with the Social Capital Protocol work program. 07

8 Sustainable Lifestyles Cluster Summary This was the first meeting of the full Sustainable Lifestyles working group, launching an ambitious 2015 work program. The discussions covered the project plan, our desired outcomes as well as the future strategy for the Cluster. The work in 2015 is a collaboration between 14 members and three Global Network partners: CEBDS (Brazil), CII (India) and CBCSD (China). We have also established a partnership with The Sustainability Consortium (TSC). There is a desire to include an investigation into a developed country lifestyle challenge in this year s work. We are scoping this with one of our sector project Cluster Board representatives. Key Objectives in 2015 Use the innovative power of business to inspire and enable more sustainable lifestyles, working across sectors, exploring innovation and collaboration opportunities for products, infrastructure, technology, business models and individual behaviours and aspirations. From a systemic perspective, taking into account environmental, social and behavioral factors, identify high potential opportunities for business to address lifestyle and consumption challenges. Engage members from Food & Nutrition, Energy and Waste Management sectors. 08

9 Climate and Energy Cluster You said: the most important sustainability issue and WBCSD work program* Summary Montreux widely showcased the LCTPi and the progress made by member companies on the solution areas. Ambition, momentum and company engagement is growing stronger in the lead up to the next big event, the Paris Roundtable on 19 May. Excellent progress has been made on the three business solutions outside the LCTPi: o Building Resilience in Global Supply Chains will shortly launch a final report o Low-Carbon Electrification of Remote Areas is currently analyzing ways to scale up impact and is collaborating with MIT on a modelling tool o Utility of the Future is progressing with MIT and members are scoping the study There is increasing external recognition of the WBCSD as the centre of gravity for business engagement on climate change Key Objectives for 2015 Use the LCTPi platform to amplify the impact of our business solutions through numerous technology and business solution-specific partnerships, ensuring respective visions for success are agreed upon by COP21. Focus on new areas such as biofuels and freight transport to identify value add for members and further explore as potential business solutions for the 2016 work program. Successfully deliver the Business Climate Summit in Paris (May), the Regional Dialogues in Brazil, China, India, South Africa (June-November) and finally the WBCSD Council Meeting in conjunction with COP21 in Paris. * Source: WBCSD 2015 member Survey 09

10 Water Cluster You said: a key sustainability issue and WBCSD work program* Summary The first water re-use workshop presented case studies from five companies laying the foundations of our future work program and member engagement plans. The outline of the water stewardship program was agreed, including plans to overcome hurdles. Experiences of WASH Pledge signatories were shared within a workshop. The OECD Water Governance Principles were endorsed. Key Objectives for 2015 Increase signatories on the WASH pledge to at least 50 multi-national companies. To date, 28 companies have signed the pledge representing 1.6 million employees. Continue to improve key Water tools including the Global and India Water tools. Deliver a tool at the December Council Meeting that helps companies explore potential green infrastructure investment opportunities. Identify at least one demonstration project on scaled-up investment in natural infrastructure. 10

11 Ecosystems and Landscape Management Cluster You said: a key sustainability issue and WBCSD work program Summary A Declaration of Intent with the UNCCD and the Turkish Ministry of Foreign Affairs formally launched the Road to Ankara to advance government-business collaboration on sustainable land management. Collaborative approaches to sustainable landscape management received a boost via an MoU signed between the WBCSD, the IDH and the TFD. Members advanced the work plan of the Investing in Natural Infrastructure business solution (co-developed with the Water Cluster) with input on the development of the Business Guide to Natural Infrastructure, on capacity building and initial steps in identifying opportunities for demonstration projects. Key Objectives for 2015 Launch the Business Guide to Natural Infrastructure in December, implement the demonstration project and scope a capacity building program (in collaboration with the Water Cluster). Support business contribution to the UNCCD COP12 in October. Invite Council Members to participate in a high level segment dialogue between Ministers and CEOs in Ankara. Use the IDH-TFD-WBCSD platform to foster collaborative landscape approaches in partnership with the Forest Solutions Group. Finalize the strategy for 2016, including business engagement strategy in the IUCN s World Conservation Congress * Source: WBCSD 2015 member Survey 11

12 Safe and Sustainable Materials Cluster Summary Members agreed that the circular economy is the overall long-term objective for business. In this light, a Societal Must-Have for Safe and Sustainable Materials was agreed: To scale up action on closed-loop material and product systems that can lay the foundation for reaching a circular economy by New WBCSD member IFF expressed interest in joining the Cluster Board, and was warmly welcomed by existing Board members. Two new business solutions will be launched in June: o Framework to Steer Product Portfolio Sustainability aims to help companies assess the sustainability of their product portfolio; o June: U.S. Materials Marketplace in partnership with the Corporate Eco Forum and the US BCSD, aims to develop a national materials marketplace in the U.S. to identify material re-use opportunities and byproduct synergies. A potential pilot in the automotive sector will be explored in connection with the implementation of best practices on chemicals management across the value chain. Key Objectives for 2015 Attract member companies to help shape and develop the work in this new cluster. Scope, start and scale-up the business solutions. Identify and leverage links across the organization in sector/value chain projects and clusters. Identify how learnings, key success factors, and best practices in the US Materials Marketplace can be transferred to WBCSD Global Network Partners. 12

13 Redefining Value cross-cutting program Key Highlights and Way Forward Natural Capital: o The development of the Natural Capital Protocol (NCP) on behalf of the Natural Capital Coalition is in progress. o WBCSD is co-organizing the second World Forum on Natural Capital, November in Edinburgh. Social Capital: o Towards a Social Capital Protocol: A Call for Collaboration will be launched externally in May, followed by the results of the Social Capital for Decision Making project at the end of June. o Two new initiatives will advance the development of the protocol in 2015 A Social Capital Charter, and a Social Capital Protocol Deep-Dive into the subject of skills, employment and safety

14 Continued from the previous page SDG Compass: WBCSD partnered with UN Global Compact (UNGC) and the Global Reporting Initiative (GRI) to develop a guide for business to contribute to the implementation of the Sustainable Development Goals (SDGs). Following a consultation session in Montreux, the first draft of the guide will be ready for member review in early May, with the final publication following the launch of the SDGs in September GHG Management: Early in 2015 a number of GHG Protocol standards and tools were launched, most notably the Scope 2 Guidance and the Scope 3 evaluator tool. Ongoing and future work includes The Portfolio Carbon Initiative and the Product Innovation Standard (to be started in 2016). Reporting Matters 2015: Please send Anais Blasco the report you would like us to review (blasco@wbcsd.org) at the latest by 1 August. Reporting Matters will be released in Paris at the WBCSD Council Meeting. Reporting Landscape Mapping: This new project will develop a web-based tool to guide business on the reporting requirements applicable at national, regional and international levels. Next steps include the establishment of a working group. Assurance: Following a member experience survey of non-financial assurance in January 2015, the one-day workshop in Montreux helped shape the future direction of the project. 14

15 The Forest Solutions Group value chain project Summary Discussions focused on the Key Performance Indicators (KPI) project, which was developed to reflect the sustainability performance of the members. Participants joined two LCTPi sessions covering Climate Smart Agriculture and Forests and Forest Products as Carbon Sinks, and held a separate session to work on shared approaches. A decision to join the Natural Capital Coalition will be listed on the Steering Group agenda. Key Objectives for 2015 Advance discussion and communication of the policies relating to Sustainable Forest Management, certification and alternative best practices. Ensure progress with the first field dialogue in Riau, Indonesia (Understanding Deforestation Free) and hold a scoping dialogue prior to the World Forestry Congress in Durban. Enhance communications on the sustainable procurement guide in partnership with 3M and WRI. Support the development of the business guide for SDGs on sustainable forest management related topics. Host a third member meeting during the World Forestry Congress in Durban featuring member initiatives. 15

16 Food and Biomaterial Solutions value chain project Summary The Food and Biomaterial Solutions project aims to present solutions that deal with the interconnections between water, food, feed, fiber and energy. It addresses sustainability challenges in the agricultural value chain, and has two business solutions: Halving Food Loss and Waste (FLW) from Field to Fork. Climate Smart Agriculture (CSA), one of the LCTPi focus areas. Key Objectives for 2015 Continue contribution to the development of the Food Loss and Waste Protocol. On CSA, deliver the following outcomes within the context of the LCTPi in the run-up to COP21: o Develop business oriented solution roadmaps including critical milestones, o Analyze barriers and identify solutions, financial requirements, policies and PPP opportunities that facilitate scale up, o Strengthen business-government dialogue to create enabling frameworks for investment, o Continue a program of work beyond Paris to ensure enduring implementation at scale. Issue The role of Business in CSA at the LCTPi Roundtable on 19 May in Paris. Issue Public policy recommendations at the UNCCD COP12 in October. 16

17 Sustainable Buildings and Cities cross-cutting program Summary The Sustainable Buildings and Cities (SBC) cross-cutting program focuses on the following projects and business solutions: Energy Efficiency in Buildings (EEB 2.0) and Zero Emissions Cities (ZEC) within Climate and Energy. Mainstreaming Life-Cycle Assessment for Buildings and Materials business solution within Safe and Sustainable Materials. Coordination of private sector input into the 3rd UN Conference on Housing and Sustainable Urban Development (Habitat III) in October 2016 in Quito, Ecuador. Management of the WBCSD s relationships with major city networks and other organizations active on urban issues, such as ICLEI, C40, Metropolis among others. Key Objectives for 2015 Hold EEB Laboratories in six markets, and implement action plans in another two. Lead the LCTPi workstream on buildings: develop a joint ambition and action plan to globally transform building stock to higher energy efficiency. Drive the ZEC pilot with engagement in Amsterdam and Birmingham. Agree on a city in a fast growing emerging market. Increase ZEC project membership to at least 10 companies, with a balanced representation of key sectors

18 Sustainable Mobility Project Summary The SMP Indicators Report has been published. With PwC, the SMP has developed a study on financial enablers for mobility solutions. A citizen survey has been carried out in Lisbon to feed into the indicators and provide feedback to the city. At the end of March, the City Summit was held with demonstrator city transport heads. Key Objectives for 2015 Complete work in each of the six cities, being mindful of external restraints Refine the indicators methodology to improve user-friendliness. Support the scale up of solutions by addressing enablers including finance, infrastructure, policy and behaviour change. 18

19 Reaching Full Potential chemical sector project Summary The overall plan for the completion of activities in the Value Chain Collaboration (packaging, automotive and construction) and Social Metrics work streams were agreed to. LCTPi provides an excellent platform to take forward the key learnings on the barriers, solutions and actions to low-carbon solutions from the sector. Options for further work after the conclusion of the program in 2015 were discussed. There is general agreement that there is value to continue to have a chemical sector group in the WBCSD. Specific program ideas for scoping and development will follow later in Key Objectives for 2015 Complete the various work elements still underway and deliver messages to key audiences on the impact of RFP work. o Complete a pathway for action for the chemical sector under the LCTPi, with RFP companies as well as other WBCSD chemical sector members. o Complete the draft of the Product Social Metrics guide; engaging with key stakeholders and working with other initiatives for alignment on indicators and approaches where possible. o Continue the engagement with the packaging; buildings and automotive value chain companies to discuss the framework conditions and step changes towards these value chains by 2050, and what that means for the chemical sector as a solution provider. o Ramp up communications and advocacy around the outcomes of the RFP program. 19

20 Tire Industry Project Summary Technical experimentations are well on track. Contacts with the China Tyre Recycling Association (CTRA) have been enhanced to acquire statistics on the fate of End of Life Tires (ELT) in China and spread best practice on ELT management. At Montreux, TIP has also established contacts with leading cement companies to expand knowledge and promote best practice on ELT management in other countries. A Chinese Tire manufacturer has indicated interest to join TIP. An external consultant has been selected to support TIP s work on the development of a minimum set of key EHS indicators for the tire sector and the realization of a pilot study. A first draft of Product Category Rules (PCR) for tires have been developed which is currently being reviewed internally. Key Objectives for 2015 Ensure successful delivery of ongoing projects. Issue progress report to be launched at the project s 10th anniversary in October Identify new subjects for the next two-year cycle to be submitted for approval in October. 20

21 Cement Sustainability Initiative Summary CSI welcomed its new member, Cimenterie Nationale of Lebanon, the first company headquartered in the Middle East to join the CSI. The need to develop sectoral KPIs and monitor performance against principles of membership criteria was emphasized. These KPIs were the subject of an audit conducted by the CSI in Montreux provided the opportunity to gather feedback on CSI-developed guidance on supply chain management. Key Objectives for 2015 Gather energy and CO 2 data for the 9th Getting the Numbers Right (GNR) reporting year with a target to extend data coverage. Implement the technology roadmap in India and develop national technology roadmaps in Brazil and Egypt. Develop ambitious CO 2 reduction targets within the framework of the LCTPi in collaboration with CSI membership and partners (International Energy Agency, International Finance Corporation, European Bank for Reconstruction and Development). Streamline outputs of CSI s Integrated Value Task Force to evaluate impacts and benefits of cement and concrete on society, on a life cycle basis including environmental, social and economic criteria. Continue the development of a Responsible Sourcing Scheme (RSS) for concrete. 21

22 Global Network Summary The Global Network discussions focused on seizing opportunities: Externally: on developing and scaling-up business solutions led by the Global Network (GN), engaging key financial actors and multilateral organizations in this process, and strengthening the GN brand on global platforms. Internally: within WBCSD work streams, projects and focus areas in 2015, with a view to develop innovative solutions that deepen GN engagement in WBCSD-led initiatives. Key Objectives for 2015 Implement mechanisms that enhance global-local feedback loops between Montreux and Paris. Continue to strengthen GN role in WBCSD focus areas such as the Road to Paris, the Road to Ankara, the SDGs, and Redefining Value. Continue to actively engage in WBCSD projects and business solutions. Continue developing and scaling up business solutions led by the GN. 22

23 Other highlights from Montreux What does the new Indian CSR Act mean for companies? The Indian Companies Act of 2013 requires all companies with profits of $1million or more in India to spend 2% of profit before tax on CSR. More than 140 WBCSD members have operations in India meeting this threshold. In Montreux, Sachin Joshi of the Confederation of Indian Industry briefed WBCSD members on the key aspects of the Indian Companies Act 2013 illustrating company examples. An issue brief with examples of implementation will be produced for members. To find out more about our work in India, To find out more about our work on Social Impact, US-INDIA dinner: National Exceptionalism in the year of Climate Convergence On 20 April, 20 members from companies headquartered in the US or India joined WBCSD staff to share national perspectives on climate change, their company solutions, and how businesses in each market are gearing up to meet the climate challenge. Discussions were led by Charlotte Blommestjin, Sustainability Specialist at NRG, the USA s second largest power provider, and Dr. Ajit Ranade, Group Chief Economist, Aditya Birla Group, India s 3rd largest MNC. To find out more about WBCSD s work with members in the USA or India please contact Chris Walker (North America) at walker@wbcsd.org or Joe Phelan (India) at phelan@wbcsd.org 23

24 Looking forward Key policy highlights in 2015 In addition to the pivotal UNFCCC COP21 in December in Paris, 2015 will see a series of other important events that will shape the climate and sustainable development agendas going forward. High-level climate change event (convened by the UN General Assembly), 29 June, New York - aims helping countries reach a climate change agreement at COP21. Ministers and business leaders will meet to assess progress ahead of Paris. Contact: Carina Larsfalten, larsfalten@wbcsd.org The Third International Conference on Financing for Development (FfD), July, Addis Ababa - on 14 July, the International Business Forum will convene the private sector to align private finance initiatives with sustainability objectives. Contact: Lara Birkes, birkes@wbcsd.org The UN Summit to adopt the Post-2015 Development Agenda, September, New York - on 25 September (tbc), a Business Forum will be held to outline business contributions toward implementation of the SDGs, followed by the UNGC Private Sector lunch (tbc). Contact: Lara Birkes, birkes@wbcsd.org The United Nations Convention to Combat Desertification COP12, October, Ankara - aims to advance issues related to land degradation, desertification, and restoration of ecosystems. The Sustainable Land Management Business Forum, October, will put-forth private sector recommendations to solve land degradation issues. Contact: Violaine Berger, berger@wbcsd.org 24

25 You loved the new WBCSD events app! Statistics from our Montreux app show that many of you used it during the event. 25

26 26 The 20 years of the WBCSD animation

27 A new approach to lunchtime and coffee-break catering This year, in an effort to limit food waste and support local businesses with a focus on sustainability, we brought in a local company, Takinoa, to provide daytime catering at Montreux. Takinoa served organic fairtrade coffee (Bio Max Havelaar) and primary local and organic food. You asked: are shrimps really local to Switzerland? We went back to Takinoa, and they told us the shrimp were sourced from one of the partner companies of the WWF Seafood Group, which uses aquaculture in the mangroves, which are a natural shrimp habitat. Key Facts: Plates: 100% biodegradable and made from sugarcane pulp Food waste: less than 10 kg for the entire event Quinoa: a lot! 27

28 MONTREUX PHOTOS Click here for souvenirs from Montreux Password:

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