World Business Council for Sustainable Development

Last updated

World Business Council for Sustainable Development
Founded1995
Founder Stephan Schmidheiny
Focus Sustainable Development
Location
Area served
Global
Key people
Peter Bakker (CEO & President)
Employees
51–300
Website www.wbcsd.org OOjs UI icon edit-ltr-progressive.svg

The World Business Council for Sustainable Development (WBCSD) is a CEO-led organization of over 225 international companies. [1] The council is also connected to 60 national and regional business councils and partner organizations. [2]

Contents

Its origins date back to the Rio de Janeiro Earth Summit of 1992, [3] when Stephan Schmidheiny, a Swiss business entrepreneur, was appointed chief adviser for business and industry to the secretary general of the United Nations Conference on Environment and Development (UNCED). [4] He created a forum called "Business Council for Sustainable Development", which went on to become Changing Course, a book that coined the concept of eco-efficiency. [5]

The WBCSD was created in 1995 as a merger of the Business Council for Sustainable Development and the World Industry Council for the Environment [6] and is based at the Maison de la paix in Geneva, Switzerland, [7] with offices in New York and New Delhi.

Operations

The council works on a variety of issues related to sustainable development. It works to achieve the Sustainable Development Goals (SDGs) through the transformation of six economic systems: circular economy, [8] cities and mobility, [9] climate and energy, [10] food, land and water, [11] people [12] and redefining value. [13] Each system transformation is set up as a WBCSD Program with a number of supplementary Projects. [14]

Impact and influence

A 2003 World Bank/IFC commissioned study identified the WBCSD as one of the "most influential forums" for companies on corporate social responsibility (CSR) issues. [15] A 2004 Globescan survey found the WBCSD as the second most effective SD research organization. [16] The 2006 survey by the same company reports that 54% of all surveyed experts believe the WBCSD will play a "major role" in advancing sustainable development. Only the European Union received higher approval (69%). [17]

In the Ethisphere Institute's 2007 list of the 100 Most Influential People in Business Ethics, WBCSD President Bjoern Stigson was ranked ninth, which made him the second most influential NGO leader. [18]

The organization helped launch the Concrete Sustainability Initiative. [19]

Membership

Membership of the WBCSD is by invitation of the executive committee to companies committed to sustainable development. WBCSD has over 180 members. [20]

Forética

Forética claims to be a global network of Spanish speaking businesses and professionals whose mission is to promote an ethical management and corporate social responsibility by the establishment of a National standard in Spain known as SGE-21, (sistema de gestión ética para el Siglo 21) which is also Annex 1 to ISO 26000 and supported by CSR Europe [21] Membership is said to around 400 and includes companies of all sizes and sectors, as well as individual specialists, professionals, and academics and it was incorporated into WBCSD on 2 September 2014. [22]

Governance

The WBCSD is a member-led organization governed by a Council composed of the Council Members of its member companies. The Council elects the executive committee, including the chairman and four Vice Chairmen. Past chairmen include:

Geographic balance

Most of WBCSD's member companies are headquartered in Europe (47%). 22% member companies are headquartered in Asia, 22% in North America and 5% in Latin America. The geographically least represented regions are Africa, Australasia and the Middle East with 1% each. [20]

Controversies

According to Greenpeace the World Business Council for Sustainable Development is among the key players responsible for holding back the world societies from tackling the climate change and energy management challenges for the past 20 years. The WBCSD Executive Committee was dominated by the largest non-renewable energy and carbon-intensive companies in the world at least until 2011. According to Greenpeace the WBCSD executive committee has been a 'Who's Who' of the world's largest carbon-intensive companies. [23]

The Sierra Club has collaborated with the World Business Council on a number of initiatives, as well as inviting its representatives to speak at Sierra Club events. [24] [25] The Environmental Defense Fund recommends the World Business Council's auditing methods to companies seeking to reduce greenhouse emissions, [26] and the Natural Resources Defense Council has drawn upon WBCSD guidelines in drawing up their own guidelines for determining biofuels sustainability. [27] The WBCSD's Vision 2050 report was highlighted by The Guardian as "the largest concerted corporate sustainability action plan to date – include reversing the damage done to ecosystems, addressing rising greenhouse gas emissions and ensuring societies move to sustainable agriculture." [28]

Related Research Articles

<span class="mw-page-title-main">Greenwashing</span> Use of the aesthetic of conservationism to promote organizations

Greenwashing, also called green sheen, is a form of advertising or marketing spin that deceptively uses green PR and green marketing to persuade the public that an organization's products, goals, or policies are environmentally friendly. Companies that intentionally adopt greenwashing communication strategies often do so to distance themselves from their environmental lapses or those of their suppliers.

<span class="mw-page-title-main">Corporate social responsibility</span> Form of corporate self-regulation aimed at contributing to social or charitable goals

Corporate social responsibility (CSR) or corporate social impact is a form of international private business self-regulation which aims to contribute to societal goals of a philanthropic, activist, or charitable nature by engaging in, with, or supporting professional service volunteering through pro bono programs, community development, administering monetary grants to non-profit organizations for the public benefit, or to conduct ethically oriented business and investment practices. While once it was possible to describe CSR as an internal organizational policy or a corporate ethic strategy similar to what is now known today as Environmental, Social, Governance (ESG); that time has passed as various companies have pledged to go beyond that or have been mandated or incentivized by governments to have a better impact on the surrounding community. In addition, national and international standards, laws, and business models have been developed to facilitate and incentivize this phenomenon. Various organizations have used their authority to push it beyond individual or industry-wide initiatives. In contrast, it has been considered a form of corporate self-regulation for some time, over the last decade or so it has moved considerably from voluntary decisions at the level of individual organizations to mandatory schemes at regional, national, and international levels. Moreover, scholars and firms are using the term "creating shared value", an extension of corporate social responsibility, to explain ways of doing business in a socially responsible way while making profits.

Eco-efficiency refers to the delivery of goods and services to meet human needs and improve quality of life while progressively reducing their environmental impacts of goods and resource intensity during their life-cycle.

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<span class="mw-page-title-main">Ecolabel</span> Labeling systems for food and consumer products

Ecolabels and Green Stickers are labeling systems for food and consumer products. The use of ecolabels is voluntary, whereas green stickers are mandated by law; for example, in North America major appliances and automobiles use Energy Star. They are a form of sustainability measurement directed at consumers, intended to make it easy to take environmental concerns into account when shopping. Some labels quantify pollution or energy consumption by way of index scores or units of measurement, while others assert compliance with a set of practices or minimum requirements for sustainability or reduction of harm to the environment. Many ecolabels are focused on minimising the negative ecological impacts of primary production or resource extraction in a given sector or commodity through a set of good practices that are captured in a sustainability standard. Through a verification process, usually referred to as "certification", a farm, forest, fishery, or mine can show that it complies with a standard and earn the right to sell its products as certified through the supply chain, often resulting in a consumer-facing ecolabel.

A sustainable business, or a green business, is an enterprise that has a minimal negative impact or potentially a positive effect on the global or local environment, community, society, or economy—a business that strives to meet the triple bottom line. They cluster under different groupings and the whole is sometimes referred to as "green capitalism". Often, sustainable businesses have progressive environmental and human rights policies. In general, a business is described as green if it matches the following four criteria:

  1. It incorporates principles of sustainability into each of its business decisions.
  2. It supplies environmentally friendly products or services that replace demand for nongreen products and/or services.
  3. It is greener than traditional competition.
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Business action on climate change includes a range of activities relating to climate change, and to influencing political decisions on climate change-related regulation, such as the Kyoto Protocol. Major multinationals have played and to some extent continue to play a significant role in the politics of climate change, especially in the United States, through lobbying of government and funding of climate change deniers. Business also plays a key role in the mitigation of climate change, through decisions to invest in researching and implementing new energy technologies and energy efficiency measures.

Sustainability reporting refers to the disclosure, whether voluntary, solicited, or required, of non-financial performance information to outsiders of the organization. Sustainability reporting deals with qualitative and quantitative information concerning environmental, social, economic and governance issues. These are the criteria often gathered under the acronym ESG.

<span class="mw-page-title-main">Global Reporting Initiative</span> International standards organization

The Global Reporting Initiative is an international independent standards organization that helps businesses, governments, and other organizations understand and communicate their impacts on issues such as climate change, human rights, and corruption.

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Robert "Rob" Watson is an international leader and expert in business and market transformation, circular economy, and green buildings. Working globally to solve large infrastructure and systems problems at scale, he founded the LEED Green Building Rating System of the United States Green Building Council (USGBC) in 1993 and was the LEED Steering Committee’s founding chairman and led its activity until 2006. In 2015, he founded the SWEEP Standard for sustainable materials management.

<span class="mw-page-title-main">Fossil fuel phase-out</span> Gradual reduction of the use and production of fossil fuels

Fossil fuel phase-out is the gradual reduction of the use and production of fossil fuels to zero, to reduce deaths and illness from air pollution, limit climate change, and strengthen energy independence. It is part of the ongoing renewable energy transition, but is being hindered by fossil fuel subsidies.

The chief sustainability officer, sometimes known by other titles, is the corporate title of an executive position within a corporation that is in charge of the corporation's "environmental" programs. Several companies have created such environmental manager positions in the 21st century to formalize their commitment to the environment. The rise of the investor ESG movement and stakeholder capitalism, has increased the need for corporations to address sustainability and social issues across their value chain, and address growing needs of external stakeholders. Normally these responsibilities rest with the facility manager, who has provided cost effective resource and environmental control as part of the basic services necessary for the company to function. However, as sustainability initiatives have expanded beyond the facility — so has the importance of the position to what is now a C-level executive role. The position of CSO has not been standardized across industries and individual companies which leads it to take on differing roles depending on the organization. The position has also been challenged as symbolic, in that it does not actually have the effect of increasing sustainable practices.

<span class="mw-page-title-main">Corporate sustainability</span> Business strategy that focuses on sustainability as a core aspect of the business

Corporate sustainability is an approach aiming to create long-term stakeholder value through the implementation of a business strategy that focuses on the ethical, social, environmental, cultural, and economic dimensions of doing business. The strategies created are intended to foster longevity, transparency, and proper employee development within business organizations. Firms will often express their commitment to corporate sustainability through a statement of Corporate Sustainability Standards (CSS), which are usually policies and measures that aim to meet, or exceed, minimum regulatory requirements.

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<span class="mw-page-title-main">Phil Radford</span> American environmentalist

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A sustainability organization is (1) an organized group of people that aims to advance sustainability and/or (2) those actions of organizing something sustainably. Unlike many business organizations, sustainability organizations are not limited to implementing sustainability strategies which provide them with economic and cultural benefits attained through environmental responsibility. For sustainability organizations, sustainability can also be an end in itself without further justifications.

<span class="mw-page-title-main">Circular economy</span> Production model to minimise wastage and emissions

A circular economy is a model of resource production and consumption in any economy that involves sharing, leasing, reusing, repairing, refurbishing, and recycling existing materials and products for as long as possible. The concept aims to tackle global challenges such as climate change, biodiversity loss, waste, and pollution by emphasizing the design-based implementation of the three base principles of the model. The three principles required for the transformation to a circular economy are: designing out waste and pollution; keeping products and materials in use, and regenerating natural systems. CE is defined in contradistinction to the traditional linear economy. The idea and concepts of a circular economy have been studied extensively in academia, business, and government over the past ten years. It has been gaining popularity because it can help to minimize carbon emissions and the consumption of raw materials, open up new market prospects, and, principally, increase the sustainability of consumption.

<span class="mw-page-title-main">Philippe Joubert</span> French-Brazilian business executive

Philippe Joubert, is a French Brazilian business executive.

A circular economy is an alternative way countries manage their resources, where instead of using products in the traditional linear make, use, dispose method, resources are used for their maximum utility throughout their life cycle and regenerated in a cyclical pattern minimizing waste. They strive to create economic development through environmental and resource protection. The ideas of a circular economy were officially adopted by China in 2002, when the 16th National Congress of the Chinese Communist Party legislated it as a national endeavour, though various sustainability initiatives were implemented in the previous decades starting in 1973. China adopted the circular economy due to the environmental damage and resource depletion that was occurring from going through its industrialization process. China is currently a world leader in the production of resources, where it produces 46% of the world's aluminum, 50% of steel and 60% of cement, while it has consumed more raw materials than all the countries a part of the Organisation for Economic Co-operation and Development (OECD) combined. In 2014, China created 3.2 billion tonnes of industrial solid waste, where 2 billion tonnes were recovered using recycling, incineration, reusing and composting. By 2025, China is anticipated to produce up to one quarter of the world's municipal solid waste.

References

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