Sustainable Development in Emerging Economies

Transcription

1 Sustainable Development in Emerging Economies Prof. Dr Wayne Visser Chair in Sustainable Transformation Professor of Integrated Value Antwerp Management School 8 February 2018 #SustainableTransformation

2 Creating a Shared Future in a Fractured World LIKELIHOOD Global Risks in 2018 IMPACT Global Risks in 2018 Impact SOURCE: World Commission on Environment & Development, 1987; WEF, 2018

3 Sustainable Development: A Story of Progress Extreme poverty in developing countries dropped from 47% in 1990 to 14% in million NGOs working on sustainable development SOURCE: Hawken, 2007; GRI, UNGC & WBCSD, 2015; Sachs, 2015; UN, 2015

4 Sustainable Development: A Story of Failure Human influence on the climate system is clear, Jose caused by greenhouse gas levels unprecedented Katia Irma in the last 800,000 years Global populations of fish, birds, mammals, amphibians and reptiles declined by 58% between 1970 and million people around the world have been forced from home, among them 22.5 million refugees The top 1% captured twice as much global income growth as the bottom 50% since 1980, causing rising inequality SOURCE: IPCC, 2014; WWF, 2016; UNHCR, 2017; WIL, 2018

5 Sustainable Development: A Story of Failure EXCLUSIVE Benefiting the minority in power EXPLOITATIVE Abusing labour and human rights EXTRACTIVE Using natural resources unsustainably The top 0.7% of the world s population earns 45.9% of global wealth, while the bottom 70.1% earns only 2.7% The global economy uses 260 million underage workers (child labour) and 40 million slave workers (forced labour) Materials extracted, harvested and consumed worldwide increased 60% since 1980, an 8X increase since the 1900s INCLUSIVE Benefiting all groups in society EMPOWERING Protecting labour and human rights RESTORATIVE Using natural resources sustainably SOURCE: Wilson & Ramphele, 1989; Credit Suisse, 2017; ILO, 2013; 2016; OECD, 2015

6 Key Insight 1: Recognising Systemic Breakdown According to the Global Peace Index 2016, only 10 countries in the world can be classified as conflict free DISRUPTION According to Munich Re, natural disasters increased from around 200 per year in 1980 to around 700 per year in 2016 SOURCE: Institute for Economics and Peace, 2016; The Economist, 2017

7 Key Insight 1: Recognising Systemic Breakdown 4 billion people still lack access to the internet and nearly 6 billion people do not have high-speed internet DISCONNECTION Nearly 2 billion do not use a mobile phone, and almost half a billion live outside areas with a mobile signal SOURCE: World Bank, 2016

8 Key Insight 1: Recognising Systemic Breakdown From 1960, the absolute gap between the average incomes of people in the richest poorest countries has grown by 135% DISPARITY Average CEO to worker pay in the U.S. has gone from 20 to 1 in 1965 to around 300 to 1 today SOURCE: Bolt and van Zanden, 2014; Mishel and Davis, 2015

9 Key Insight 1: Recognising Systemic Breakdown Populations of vertebrate species will have declined 67% from 1970 to 2020 if current trends continue DESTRUCTION 2.5 ºC climate warming will devastate ecosystems, increase poverty and cost the global economy $12 trillion by 2050 SOURCE: WWF, 2016; UNDP, 2016

10 Key Insight 1: Recognising Systemic Breakdown More than 40% of deaths from noncommunicable diseases (70% of all deaths) are premature or preventable DISCONTENT Depression and anxiety disorders affect 10% of people, cost the global economy US$1 trillion each year and have increased SOURCE: WHO, 2017; WHO & World Bank, 2016

11 Systemic Problems: 5 Forces of Fragmentation SOURCE: Visser, 2017

12 Key Insight 2: Designing Systemic Solutions SECURE innovation in the RESILIENCE ECONOMY Lowering risk Aiding recovery Ensuring continuity Helps us to address problems like the $330 billion in losses ($49 billion uninsured) from world-wide natural catastrophes in 2017, up from $184 billion in 2016 SOURCE: Buheji, 2018; Munich Re, 2018

13 Key Insight 2: Designing Systemic Solutions SMART innovation in the EXPONENTIAL ECONOMY Connecting people and things Using big data Artificial intelligence The increased use of exponential technologies could add $1.36 trillion to total global economic output in 2020 SOURCE: Carlson and Wilmot, 2006; Accenture, 2015

14 Key Insight 2: Designing Systemic Solutions SHARED innovation in the ACCESS ECONOMY Equity / fairness Inclusive design Sharing platforms PwC estimates the access economy also called the sharing economy - may be worth $335 billion by 2025 SOURCE: Eckhardt and Bardhi, 2015; Botsman and Rogers, 2010; PwC, 2015

15 Key Insight 2: Designing Systemic Solutions SUSTAINABLE innovation in the CIRCULAR ECONOMY Bio/renewable products Zero waste design Being climate positive Accenture estimates that the circular economy opportunity could be worth $4.5 trillion by 2030 SOURCE: Webster, 2017; Lakha, 2017; Lacy and Rutqvist, 2015

16 Key Insight 2: Designing Systemic Solutions SATISFYING innovation in the WELLBEING ECONOMY Human health Quality of life Meaning in work According to the Global Wellness Institute, the wellbeing economy was worth $3.72 trillion in 2015 SOURCE: Fioramonti, 2017; Global Wellness Institute, 2016

17 Systemic Solutions: 5 Forces of Integration SOURCE: Visser, 2017

18 Key Insight 3: Creating Integrated Value INTEGRATED VALUE goes beyond looking at new ways to measure value. Integrated value is much more about INNOVATION SYNERGIES through solutions that are secure, smart, shared, sustainable and satisfying SOURCE: Visser, 2017

19 Key Insight 3: Creating Integrated Value BIOGEN UK Sustainable SOURCE: Closing the Loop, 2018

20 Key Insight 3: Creating Integrated Value NOVAMONT Italy Sustainable SOURCE: Closing the Loop, 2018

21 Key Insight 3: Creating Integrated Value PLANETARIANS USA Sustainable + Satisfying SOURCE: Sustainable Brands, 2017

22 Key Insight 3: Creating Integrated Value YUNGILLA, QUITO Ecuador Secure + Shared + Sustainable SOURCE: Closing the Loop, 2018

23 Key Insight 3: Creating Integrated Value PROVENANCE UK Smart + Shared + Sustainable SOURCE: Sustainable Brands, 2017

24 In Conclusion: Go Far, Together If you want to go fast, go alone. If you want to go far, go together

25 THANK YOU! Opening Minds. Touching Souls. Energizing Business. #SustainableTransformation

26 Closing the Loop: Lessons in Circularity AVAILABLE SOON 22 February 2018 Amazon on Demand SOURCE: Closing the Loop, 2018