Sustainability – Positive Responses

Awareness is changing…

…..to Science, business and lifestyle magazines!

Increasing consumer awareness and responsibility and demand for better choices

“ This is not only a political issue it is more a moral issue.

Our ability to live is what is at stake!”

Al Gore, An Inconvenient Truth

Climate Change is Driving the Agenda

Climate Change is Driving the Agenda

Key Conclusions:

#1 - Benefits of strong, early action far outweigh the costs and danger of inaction

#2 - There is still time to avoid the worst impacts, if we take strong action now.

#3 - Could have very serious impacts on growth and development.

#4 - Action is required of all countries, and need not cap aspirations for growth.

#5 – A range of options exists to cut emissions; strong, deliberate action is required to motivate their take-up.

#6 – Climate change demands an international response, based on a shared understanding of long-term goals and agreement on framework for action.

Stern Review - on the economics of climate change

Climate Change is Driving the Agenda cont…

• Key Policy Actions needed:

• #1 –Pricing of carbon, implemented through tax, trading or regulation.

• #2 – Policy to support innovation and the deployment of low-carbon technologies

• #3 – Removal of barriers to energy efficiency, and to inform and persuade individuals about what they can do to respond to climate change.

Kiwis are shifting their focus…

From a concerned citizen (remember save Manapouri)

To a concerned consumer (ethical & green purchasing)

A Perfect Storm … of Opportunities

10 Market Forces10 Market Forces

5 Mega-Issues5 Mega-Issues 5 Demanding 5 Demanding StakeholdersStakeholders

Climate ChangeClimate Change Green Green ConsumersConsumers

Pollution & Pollution & HealthHealth

Activist Activist ShareholdersShareholders

Globalization Globalization BacklashBacklash

Civil Society / Civil Society / NGOsNGOs

Energy CrunchEnergy Crunch Government Government RegulatorsRegulators

Erosion of TrustErosion of Trust Financial Financial SectorsSectors

Innovation

GrowthProductivityBrand

Image

Revenue$aving$CompetitiveAdvantage

Business Value

BusinessLAB

Customer preferences

• 42% NZBCSD members have deselected suppliers for sustainability (2007)

• Market for sustainable suppliers has grown from 6% to 32% between 2005 and 2007

• 27% of NZers (1.17m people) have purposely avoided companies on sustainability grounds (2007) (279,000 on week of survey!)

• 1.4 m NZers will pay premium for positive social / environmental benefit

• Sale of organic products growing at 10 – 20% p.a.

Problem or opportunity?