Seven Keys For Improving Lives Through The Market.

The World Business Council for Sustainable Development (WBCSD), along with global business leaders, released a report entitled Sustainability Through the Market: Seven Keys to Success during a luncheon at UN Headquarters in New York City. The report shows how open, transparent markets can drive sustainability and makes the business case for implementing sustainable practices. It outlines seven keys to successful implementation and illustrates the economic advantages of doing so with real-world case studies involving some of the world’s most successful companies.

“Sustainable development is about improving the quality of life for everyone, now and in the future,” said WBCSD president Björn Stigson. “In our report we examine how open, transparent markets are the best engines for driving sustainability and how pursuing sustainable development can benefit business in two basic ways – by generating top line growth through innovation and new markets, and by driving cost efficiencies.”

Sustainability Through the Market: Seven Keys to Success was co-authored by Chad Holliday, CEO and Chairman of DuPont and current Chairman of the WBCSD, and John E. Pepper, Chairman of Procter & Gamble. Pepper and Holliday outlined their companies’ commitment to and experience in sustainable development during addresses at today’s event. Other speakers
included Klaus Töpfer, Executive Director of the United Nations Environment Programme, and Yolanda Kakabadse, President, The World Conservation Union.

The report, which was developed over four years and through extensive dialogues with multiple stakeholders, is the first of its kind to view sustainability as a holistic issue involving an integrated approach to production and consumption. The WBCSD report identifies markets as the primary link to improving and revolutionizing the activities that are at the heart of this inter-relationship: “As the world society approaches a balance between economic, environmental and social sustainability, markets are transparent, stimulate innovation and are effective in their role as a catalyst for change toward a better quality of life for everyone.” Previous arguments on the subject tended to be reductionist, and focused almost exclusively on lowering waste and lessening consumption.

“There are currently 2.8 billion people around the world living on $2 a day or less,” stated Chad Holliday. “This is a staggering figure. Such poverty means that half the world’s population has little or no access to the market and little hope to improve their lives. We simply must address the needs of the developing world, or sustainability will be impossible. The market is the best way to do this.”

The report’s Seven Keys offer business a roadmap to implementing and benefiting from sustainable practices.

KEY 1 Innovate

Both technological and social innovation can do much to improve quality of life. By combining personal creativity, innovative climate, strategic depth and operational efficiency – innovation can enable companies to create growth in
ways that reflect the changing concerns and values of the world.

KEY 2 Practice eco-efficiency

By combining environmental and economic performance, this strategy enables more efficient production processes and the creation of better products and services while reducing resource use, waste and pollution along the entire value
chain.

KEY 3 Move from stakeholder dialogues to partnerships for progress

The time has come to move beyond talking to one another to acting together for the purpose of sustainable development. Partnerships for progress are built on common goals, empathy, open feedback, flexibility, ability to compromise and
shared rewards. Alliances can offer business, government and civil society new solutions to common concerns.

KEY 4 Provide and inform consumer choice

Consumer choice in transparent and competitive markets has the potential to improve quality of life. Informed consumers can better judge what products and services reflect the true value of resources and can make purchasing decisions
based on this information. This leads to improved consumption and better sustainability.

KEY 5 Improve market framework conditions

Markets face challenges in fostering sustainability where corruption, protectionism, monopoly, or perverse subsidies exist. Legislation, regulations and enforcement are needed to promote competition and effective property rights, and
to enforce fair and transparent accounting.

KEY 6 Establish the worth of Earth

Inefficient or artificial pricing weakens markets, leads to misuse and waste and hinders sustainability. By taking into account environmental, economic and social aspects of natural resource use we can establish more accurate price levels
and promote more efficient consumption.

KEY 7 Make the market work for everyone

Poverty is the single largest barrier to achieving sustainability through the market. The way to reduce poverty is to promote continuous and broad-based market expansion that creates enterprises and jobs. Unmet basic needs represent
significant market opportunities for innovative businesses.

“The market has a unique potential, when properly structured, to improve lives through new innovations, improved consumption and higher incomes,” said John Pepper. “The WBCSD report shows how business can accelerate the market’s effects and ensure responsible progress while doing so. This is not a quick fix, but rather a clear direction on how to get started.” The real-world benefits of pursuing sustainable practices, including cost savings and market growth, are outlined throughout the report in case studies from such companies as Cargill, Sony, ABB, DuPont and Procter & Gamble.

As a first step in the promotion and implementation of the report findings, the WBCSD plans to make active contributions to global policy debates. The organization intends to focus on identifying ways in which business can deliver innovative products and services to poorer communities, especially in the areas of telecommunications, information, electrification and water services.

For more information at http://www.wbcsd.org.

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