1. Sustainable Consumption and
Production Poverty Alleviation and
Climate Change
Climate Change & the Challenge of Poverty Alleviation
26 - 28 July, 2012
Centre for Climate Change and Environment Advisory
DR. MCR HRD Institute Campus, Hyderabad
27 July ‗12
Dr. N. Sai Bhaskar Reddy,
CEO, GEO http://e-geo.org

6. Sustainable consumption and
production
 Distributed and interdependent innovation
towards sustainability: systems of provision
and consumption
 Sustainability AND growth versus
sustainability as a restriction of
consumption, localisation, etc.
 Collective and political choices – rather
than individual moral or market choice
 ―Triangular affairs‖ (state and market actors,
consumer organisations/groupings) – at
least.

7. INTERLOCKING CHALLENGES AND CRISES
―Peak petro- Global climate change
chemicals‖
Socio-economic
welfare Biodiversity
Food crises
Land use + water

8. What are we talking about?
Consuming and producing more efficiently
and differently ...
… and sharing
resources between
the rich and the poor.

9. Global UN context
of SCP and resource use
 JPoI - Chapter II: Poverty Eradication
 Resource use contributing to MDGs
 JPoI - Chapter III: Sustainable
Consumption and Production
 10 year framework on SCP/
Marrakech Process/ CSD 2010-2011

10. The State of the Planet
Issues of concern: An overview
• Climate change
• Freshwater scarcity
• Biodiversity loss
• Collapsing fisheries
• Soil erosion
• Cropland and forests loss
• Increasing population
• Growing waste
• Growing consumption

11. The State of the Planet
Resource Depletion - Freshwater
 Access to water is arguably the world‘s most urgent resource
issue
◦ Every year about 5 million people die due to lack of access to water
& sanitation
◦ Almost 30% of people live in countries suffering moderate-to-high
water stress
◦ By 2025 more than 4 billion people will be living in water stressed
countries
 Between 1900-1995 global freshwater consumption rose six-fold,
more than double the population growth rate
 More than 20% of the world's freshwater fish species have
become extinct, threatened, or endangered in recent decades
 In 60% of the European cities with more than 100,000 people,
groundwater is being used faster than it can be replenished

12. The State of the Planet
Population Growth

13. The State of the Planet
Population Growth, Consumption
and Production
 Population is not the main problem of
environmental degradation, but rather
consumption and production patterns
 There is a need to find an appropriate balance
between:
◦ The basic needs of the current population (food,
shelter, health, clothing)
◦ The needs of future generation
◦ This requires balancing inter- and intra-generation
equity

14. The State of the Planet
Unsustainable Consumption
1000 people harm the environment annually by the following factor
In Germany Developing Country
Energy consumption (TJ) 158 22
Greenhouse gases (t) 13700 1300
CFCs (Kg) 450 16
Waste (t) 400 120
Toxic waste (T) 187 2
Passenger cars 443 6
Steel consumption 655 5

15. The State of the Planet
Inequalities in Consumption
• 1.3 billion people live on less than 1 US dollar a
day
• The overall consumption of the richest fifth of the
world’s population is 16 times that of the poorest fifth
• Nearly 160 million children are malnourished
• More than 880 million people lack access to health
services
• 1.5 billion lack access to sanitation and clean water

17. The State of the Planet
Unsustainable Consumption
Global Consumer Class: Selected Nations (2002)
Consumers Share of National
Country (millions) Population (%)
United States 243 84
Japan 121 95
Germany 76 92
Russian Federation 61 43
Brazil 58 33
China 240 19
India 122 12

18. The State of the Planet
Car Growth in China
Year Private cars
1980 0
2000 5 million
2002 10 million
2003 14 million
2015 150 million (estimated)

19. The State of the Planet
Ecological Footprints

20. The State of the Planet
Consequences: Four Earths needed in 2100
1900 2003 2050 2100

21. Mixed messages from consumers…
I’d like to end poverty, stop
violence and racism,
and get rid of pollution.
Everyone should be equal.
I want to dress in the nicest clothes,
drive a great car, talk on the latest
mobile phone, and watch my brand new DVD

22. The State of the Planet
The need for increased resource efficiency
―20% of the world‘s population consumes 80% of its
resources. If everyone consumed at this level, it would take
four extra planets to provide the necessary resources. Global
marketing of this consumer lifestyle is headed for natural
disaster.‖
The Ecological Footprint
“Resource use and pollutant discharge will need to decrease to less
than 10% of current OECD levels to reach sustainable
equilibrium by 2040.”
Netherlands Council for Environment & Nature

23. The State of the Planet
The implementation gap
―Fundamental changes in the way societies produce and
consume are indispensable for achieving global sustainable
development.
All countries should promote sustainable consumption and
production patterns...
Governments, relevant international organizations, the private
sector and all major groups should play an active role in
changing unsustainable consumption and production
patterns.‖
WSSD Johannesburg Plan of Implementation, Sept. 2002

24. The State of the Planet
Factor Four improvements
Business shifts for natural
capitalism
◦ Dramatically increase resource
productivity
◦ Eliminate the concept of waste:
build on biologically inspired
production models
◦ Re-investing in natural capital
◦ Re-invest in people and social

25. The State of the Planet
Sustainable consumption
Understanding the interrelation between eco-efficiency
and sustainable consumption - the ―rebound effect‖
◦ In terms of the ―rebound effect‖, the productivity/efficiency gains
achieved through cleaner production and eco-efficiency measures
are being overtaken by the overall increases in production
associated with growing consumption patterns
◦ While problems of production process are understood, there is
generally an important gap of understanding in terms of the
consumption (use) and disposal of products
◦ Environmental concerns are not sufficiently integrated into economic
and social programmes and vice versa

26. The State of the Planet
The Challenge
Promoting sustainable consumption and production
• New product-oriented strategies (life cycle perspective, design and
manufacture)
• Understanding consumption
• Integrated approach of sustainable consumption and production
• De-linking environmental damage from economic growth

27. The State of the Planet
There is no
Sustainable Consumption without
Sustainable Production
and vice versa

28. So what has been the response
of the corporate sector to the
global environmental challenges?

29. Improvement in environmental quality
Rethink
Redesign
Incremental change
“Low
hanging
fruit”
Long investment time in R&D Time
From Arthur D Little - Sustainable Industrial Development 1996

30. A Brief History of Corporate Environmentalism
Broad Phases of Corporate
Environmentalism
◦ Before the 1960s: Blissful Ignorance
◦ 1960s and 1970s: Confrontation / Reluctant
Compliance
◦ 1980s: Beyond Compliance
◦ 1990s: Changing Course
◦ Beyond 2000: Sharing Responsibility?

31. Evolving Business Behaviour
on Sustainability Issues

32. Evolving Business Behaviour
on Sustainability Issues

33. A Brief History of Corporate Environmentalism
1960s and 1970s - Reluctant Compliance
◦ Growing public consciousness about the natural
environment
 Publication in 1964 of Rachel Carson‘s ‗Silent Spring‘
 1970 Earth Day demonstrations
 Publication in 1972 of the Club of Rome‘s ‗Limits to Growth‘
and The Ecologist‘s ‗A Blueprint for Survival‘
 1972 Stockholm Conference on the Human Environment
◦ Businesses began:
 Building internal technical capacity on environmental issues
 Installing pollution control measures and initial networking
 But largely a defensive role
 Social activities focus mainly on philanthropy

34. A Brief History of Corporate Environmentalism
1980s – ―Beyond Compliance‖
◦ Increasing pressure to improve performance:
 Major industrial incidents: Bhopal accident (India, 1984) and
Sandoz chemical spill (Switzerland, 1986)
 Brundtland Report in 1987 put the concept of sustainable
development squarely into the international policy arena
◦ Business began to:
 Develop environmental policies with specific performance
commitments
 Appoint dedicated staff functions, and increase line management
integration of environmental and social responsibilities
 Implement pollution prevention and cleaner production techniques
 Undertake greater networking with other companies on
environmental and social issues (eg chemical industry‘s
Responsible Care initiative)
 Develop tools such as environmental audits

35. A Brief History of Corporate Environmentalism
1990s – ―Changing Course‖
◦ Increasing international policy action on environmental and
sustainable development issues
 Rio Earth Summit in 1992
 Growing number of Multilateral Environmental Agreements (eg
the UN Framework Convention on Climate Change)
◦ Business response signified by institutionalisation and
innovation
 Launch of the ICC Business Charter in 1991
 Formation of World Business Council on Sustainable
Development
 Development of ISO 14000 environmental standards
 Increase in environmental and social reporting practices
 Development of innovative technological solutions, as well as
tools such as life cycle assessment, design for environment &
product stewardship

36. A Brief History of Corporate Environmentalism
Beyond 2000 – ―Walking the Talk‖?
◦ Key strategic trends impacting global
companies
 Growing NGO and community pressure for greater
corporate transparency and accountability
 Increasing activism of institutional investors and the
financial community, compounded by post-Enron
disenchantment with traditional analysis
 Tightening global and domestic regulatory
pressures (eg the Kyoto protocol, European
pension fund requirements)
 Increasing appreciation of the business case for
sustainability and a gradually growing acceptance
of the need to address sustainability concerns

37. Corporate Environmentalism: Strategic Trends
Growing NGO and consumer pressure for accountability

38. Corporate Environmentalism: Strategic Trends
Changing regulatory pressures
Key developments globally
– Growing number of Multilateral Environmental Agreements
– International corporate accountability / MNC liability regimes
– EU Chemicals policy (REACH)
– EU Integrated Product Policy - LCA implications
– Regulatory pressure for reporting
– Environmental tax reform requirements
– Personal / class action claims

39. Climate Change Litigation
"What we're seeing is an emerging area of climate litigation.
As the impacts of climate change worsen, the number of
potential plaintiffs, and the range of legal actions available to
those plaintiffs will undoubtedly increase."
International Product Liability Lawyer
Australian
– July 14 launch of Climate Justice Program, alliance of 70 NGOs,
lawyers, academics and individuals in 29 countries that seeks
enforcement of existing laws to hold the perpetrators of climate damage
accountable and liable.
Australia
– Climate Action Network Australia notified directors of the top 200
listed companies of financial risks and legal obligations of climate
change. Targeted major GHG emitters, as well as property financiers.
Companies expected to respond by undertaking risk assessment of
climate change exposure.
USA
– Eight US States and New York City launched a public nuisance lawsuit
against five of the US’s largest power companies – 21 July 2004.

40. Corporate Environmentalism: Strategic Trends
Indicators of the next wave of corporate
responsibility
◦ Sustainability reports
◦ Strategic partnerships
◦ Participation of financial markets
◦ Academia and education
◦ Media

41. Corporate Environmentalism: Strategic Trends
Corporations in the next society?
“In the next society, the biggest challenge for the
large company - especially for the multinational -
may be its social legitimacy: its values, its missions,
its vision.”
Peter Drucker

42. Corporate Sustainability: An ideal company?
Corporate Sustainability: Features of an ideal
company?
◦ Integrates environmental and social issues into its core
strategy
◦ Quantifies the social and environmental costs of its
activities
◦ Displays innovation throughout the full life cycle of its
products and services
◦ Implements sound corporate governance practices
◦ Is committed to transparency and accountability
◦ Promotes meaningful change amongst its peers, within its
neighbouring communities, and throughout its supply chain

43. Resource Efficiency defined…
 Efficiency at economic level
 +
 Environmental dimension
 =
Resource Efficiency (RE)
(materials, energy, water, land & emissions)
Reducing the environmental impact
of consumption and production

of goods and services over their full life cycles
  By producing more wellbeing with less material consumption,
RE enhances the means to meet human needs while respecting the
ecological carrying capacity of the Earth.
 Resource Productivity: having more value creation per resource unit
(similar to Labour Productivity) – innovation needs to directed in that
direction

44. and global value chains
?
Disposal
Use
Recycling
Reuse
Production
Resources ?
Resource
Extraction
?
Emissions
Meeting the sustainability challenge can present businesses with tremendous
opportunities. As we look at ways to address issues of sustainability, new
business models will emerge that will help businesses achieve more success
in a resource-constrained world with more stringent stakeholder
expectations.

45. International and national
initiatives on resource use
 OECD has developed a programme on Material
Flows and Resource Productivity
 G8 countries, spearheaded by Japan
are implementing the Kobe action plan of the
‘3R’ initiative aimed at reducing, reusing and
recycling resources.
 European Commission has launched its
Thematic Strategy on the Sustainable Use of
Natural Resources.
 In addition, there are numerous national
strategies aimed at closing the loop, including
China’s circular economy approach.

46. Global scientific activities
in relation to resource use
 IPCC – Climate Change due to fossil fuels
 Impacts due to use of other resources than
fossil fuels?
 Millennium Ecosystem Assessment
 Linkages from observed impacts on
ecosystems to unsustainable resource use?

47. Focus on selected non
fossil material flows …
Decoupling
and Resource -efficiency
Consumption and productioninduced material flows
Renewable resources Flow resources Non-renewable resources
Food Non- Food Air, Soil, Sun, Water Minerals Fossil
and Metals Fuels
Biofuels Global
(vs. fossil Freshwater Metal
fuels) Flows

48. …and their environmental
impact …
Source: Adapted
from N&M

49. Achievements
 Mainstreaming of the Resource Panel:
• Identified substantive issues through scientific consultation
• Governmental and Civil Society support secured
• 26 eminent multidisciplinary scientific experts on board
• Working procedures (ToRs, peer review, member selection)
• Work plan of the Panel (Reviewed at biannual meetings)
• Four Assessment Reports underway.
 International cooperation
• OECD-UNEP Conference on Resource Efficiency
• Recognised by the G8 Environment Ministers in Kobe Action Plan.
• World Resource Form (lead up to World Economic Forum 2010)
 UNEP
• Governing Council Side Event (Marrakech Process,
Green Economy)
• Initiated Interdivisional Task Team in UNEP
 Information dissemination at various Global fora

50. Recycling as one way
forward

51. Metals required in
eco-innovation

52. Data for LCA
Three sources:
 Industry data (provided by companies and industry
associations)
 Unit process data (modeling of resource requirements
based on information on technologies used)
 Data derived from Input-Output tables
UNEP/ SETAC Database registry:
 Aiming at being a focal point for information about
international, sectoral, national, commercial and non
commercial databases worldwide
 User survey (autumn 2008) showed that the database
registry concept meets the needs of many users.
 Addressing different data sources in general,
among those the ELCD/ ILCD system, Japanese LCA
database, and many others, including I/O data.

53. Impact Assessment
indicators and methods
Resource Other Env.
Efficiency Priorities
Energy Energy Climate Carbon
Demand Change Footprint
(IEA) (WRI/ WBCSD,
ISO)
Water Water Hazardous USEtox
Footprint Substances (SETAC)
(WWF/ WFN)
Material Materials Ecosystems Biodiversity
Intensity Biodiversity Damage
(WI) (IUCN)

54. REEO: Resource Efficiency and
Economics Outlooks I
 Project ongoing for following regions:
◦ Asia Pacific
◦ Latin America and the Carribean: Mercosur and
Mexico
 Objective of reports:
◦ Give convincing evidence to decision makers that
―Resource Efficiency‖ policies and measures are
really needed to support sustainable economic
development. To do this, each report should
explain first the concept of resource efficiency, the
related policy decision making and then give an
overview of the resource efficiency challenges in
the region.

55. REEO: Resource Efficiency and
Economics Outlooks II
 Outline:
◦ Resource Efficiency and Economics—What is It?
Why is It Important? And how to assess it? (at the
macro-, meso- and micro-level)
◦ Assessment and Trends of Resource Efficiency
and Economics in the Region (materials, energy,
water, land, emissions)
◦ Fostering Resource Efficiency and Economics in
the Region (investments)
◦ Policy relevant conclusions for the implementation
of Resource Efficiency at the national level in the
Region (targets, monitoring, policy instruments)
◦ The Role of Regional and International Initiatives
◦ Perspectives (win-win solutions)

56. UNEP Resource Efficiency and
Productivity Data Scoping Workshop
 Support the science base of UNEP's
work on resource efficiency by
◦ establishing access to relevant databases,
◦ contributing to the inclusion of relevant data
in the GEO Data Portal
◦ building capacity in developing countries on
the collection of relevant data
◦ Influencing processes such as UNCEEA so
that adequate ‗raw‘ data for Resource
Efficiency and Productivity are collected

57. Towards an International virtual data
centre on Resource Intensity
 The establishment of an international virtual
data centre on the resource intensity of
products and services is urgently needed,
◦ to monitor the success of strategies and measures
to increase resource productivity, on the macro-
economic level and the level of companies and
product-service-systems including the customers
and consumers activities.
◦ to satisfy increasing demand by policy-makers,
businesses and consumers on consistent and
validated data
◦ to enable directionally-safe decision-making towards
a more sustainable development
 Compatibility and integration with other key
indicators for life-cycle wide assessments,
such as those mentioned above.

58. Perspectives for the future:
Consumption, products and resources

59. What could be possible in the
future?
 Problem analysis:
–What are priority consumption activities, products,
production processes and resource uses?
–What is the relation between consumption, production,
and resource use? What drives what?
–What are differences in labour, capital, resource
and ‗emission‘ productivity between countries?
 Monitoring : What factors caused decoupling of
impacts and economic activity in the past?
needs time series
 Foresight and scenario analysis: How will the
future look like?
needs dynamic models linked to database

60. Ref: http://.....