World Business Council for Sustainable Development
Encyclopedia
The World Business Council for Sustainable Development (WBCSD) is a CEO-led, global association of some 200 international companies dealing exclusively with business and sustainable development
.
Its origins date back to the 1992 Rio Summit, 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), better known as the Rio de Janeiro Earth Summit
of 1992. He created a forum called "Business Council for Sustainable Development", which went on to Changing Course, a book that coined the concept of Eco-efficiency
.
The WBCSD was created in 1995 in a merger of the Business Council for Sustainable Development and the World Industry Council for the Environment and is based in Geneva
, Switzerland
with offices in Washington, D.C.
and Brussels
, Belgium
.
The WBCSD sees itself as a catalyst, both in the sense that it can catalyze business to buy into the concept of sustainable development and to change the way they run their operations. The organization also sees itself as a catalyst in the process of global policy development, by representing and promoting the role of business in achieving sustainable development.
It works on a variety of issues related to sustainable development. While its focus is on the overarching areas Energy & Climate, Development, Ecosystems and the Role of Business in Society, it also executes sector specific projects on cement, mobility, tires, chemicals, water, energy efficiency in buildings and forestry.
The Council’s objectives are to:
, Sony
, Nokia
, and Pitney Bowes
have all contributed patents. The patents are made available royalty
free.
GreenWash Award in June 1997.
Nevertheless, by 2002, at the Earth Summit in Johannesburg, it was able to team up with one of the most influential of corporate critics, Greenpeace, to deliver a united message demanding greater action by governments on climate change.
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. A 2004 Globescan
survey found the WBCSD as the second most effective SD research organization. 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%).
In the 2007's Ethisphere list of the 100 Most Influential People in Business Ethics, WBCSD President Bjoern Stigson has been ranked 9th, which made him the 2nd most influential NGO leader.
, 3M
, Deutsche Bank
, Coca-Cola
, Sony
, Oracle Corporation
, BP
, Wal-Mart
and Royal Dutch Shell
.
Member companies pledge their support and contribution to the WBCSD by making available their knowledge and experience, and appropriate human resources. They are asked to publicly report on their environmental performance and to aspire to widen their reporting to cover all three pillars of sustainable development - economic, social and environmental.
A key element is the personal commitment of the Chief Executive Officers (CEOs), acting as Council Members. They are influential advocates for the WBCSD’s policy positions, and they co-chair our working groups. They also organize support for the WBCSD’s work program and ensure the adoption of sustainable management practices within their companies.
The 'Pros' of this approach include:
The 'Cons' of this market-based approach include:
Sustainable development
Sustainable development is a pattern of resource use, that aims to meet human needs while preserving the environment so that these needs can be met not only in the present, but also for generations to come...
.
Its origins date back to the 1992 Rio Summit, when Stephan Schmidheiny
Stephan Schmidheiny
Stephan Schmidheiny is a Swiss business man and billionaire.-Life:Schmidheiny was born in St. Gallen, Switzerland, in 1947 and completed his Law studies with a doctorate at the University of Zurich in 1972. He started his business career at Eternit Niederurnen and in 1976 he was named CEO of the...
, 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), better known as the Rio de Janeiro Earth Summit
Earth Summit
The United Nations Conference on Environment and Development , also known as the Rio Summit, Rio Conference, Earth Summit was a major United Nations conference held in Rio de Janeiro from 3 June to 14 June 1992.-Overview:...
of 1992. He created a forum called "Business Council for Sustainable Development", which went on to Changing Course, a book that coined the concept of Eco-efficiency
Eco-efficiency
The term eco-efficiency was coined by the World Business Council for Sustainable Development in its 1992 publication "Changing Course". It is based on the concept of creating more goods and services while using fewer resources and creating less waste and pollution.The 1992 Earth Summit endorsed...
.
The WBCSD was created in 1995 in a merger of the Business Council for Sustainable Development and the World Industry Council for the Environment and is based in Geneva
Geneva
Geneva In the national languages of Switzerland the city is known as Genf , Ginevra and Genevra is the second-most-populous city in Switzerland and is the most populous city of Romandie, the French-speaking part of Switzerland...
, Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
with offices in Washington, D.C.
Washington, D.C.
Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....
and Brussels
Brussels
Brussels , officially the Brussels Region or Brussels-Capital Region , is the capital of Belgium and the de facto capital of the European Union...
, Belgium
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
.
The WBCSD sees itself as a catalyst, both in the sense that it can catalyze business to buy into the concept of sustainable development and to change the way they run their operations. The organization also sees itself as a catalyst in the process of global policy development, by representing and promoting the role of business in achieving sustainable development.
Operations
The Council provides a platform for companies to explore sustainable development, share knowledge, experiences and best practices, and to advocate business positions on these issues in a variety of forums, working with governments, non-governmental and intergovernmental organizations.It works on a variety of issues related to sustainable development. While its focus is on the overarching areas Energy & Climate, Development, Ecosystems and the Role of Business in Society, it also executes sector specific projects on cement, mobility, tires, chemicals, water, energy efficiency in buildings and forestry.
The Council’s objectives are to:
- Be a leading business advocate on sustainable development;
- Participate in policy development to create the right framework conditions for business to make an effective contribution to sustainable human progress;
- Develop and promote the business case for sustainable development;
- Demonstrate the business contribution to sustainable development solutions and share leading edge practices among members;
- Contribute to a sustainable future for developing nations and nations in transition.
Eco-Patent Commons
The WBCSD sponsors an Eco-Patent Commons where companies and individuals can donate patents on sustainable technologies. IBMIBM
International Business Machines Corporation or IBM is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas...
, Sony
Sony
, commonly referred to as Sony, is a Japanese multinational conglomerate corporation headquartered in Minato, Tokyo, Japan and the world's fifth largest media conglomerate measured by revenues....
, Nokia
Nokia
Nokia Corporation is a Finnish multinational communications corporation that is headquartered in Keilaniemi, Espoo, a city neighbouring Finland's capital Helsinki...
, and Pitney Bowes
Pitney Bowes
Pitney Bowes Inc. is a Stamford, Connecticut-based manufacturer of software and hardware and a provider of services related to documents, packaging, mailing, and shipping, collectively referred to as mailstream. The company has approximately 36,000 employees worldwide. It is one of 87 existing...
have all contributed patents. The patents are made available royalty
Royalties
Royalties are usage-based payments made by one party to another for the right to ongoing use of an asset, sometimes an intellectual property...
free.
Impact & Influence
In the 1990s, some activist organizations have criticized the WBCSD for its close link to business, and the organization received the CorpWatchCorpWatch
CorpWatch is a research group based in San Francisco, California, USA. The group's mission is non-profit investigative research and journalism to expose corporate malfeasance and to advocate for multinational corporate accountability and transparency...
GreenWash Award in June 1997.
Nevertheless, by 2002, at the Earth Summit in Johannesburg, it was able to team up with one of the most influential of corporate critics, Greenpeace, to deliver a united message demanding greater action by governments on climate change.
A 2003 World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
/IFC
International Finance Corporation
The International Finance Corporation promotes sustainable private sector investment in developing countries.IFC is a member of the World Bank Group and is headquartered in Washington, D.C., United States....
commissioned study identified the WBCSD as one of the "most influential forums" for companies on corporate social responsibility (CSR) issues. A 2004 Globescan
GlobeScan
Not to be confused with the British airline company 'Globespan' or the American semiconductor company 'Globespan'.GlobeScan is a Canadian-based company that does research and polling in public opinion as well as of private groups. It used to be known as Environics International...
survey found the WBCSD as the second most effective SD research organization. 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%).
In the 2007's Ethisphere list of the 100 Most Influential People in Business Ethics, WBCSD President Bjoern Stigson has been ranked 9th, which made him the 2nd most influential NGO leader.
WBCSD's 10 messages by which to operate
- Business is good for sustainable development and sustainable development is good for business. Business is part of the sustainable development solution, while sustainable development is an effective long-term business growth strategy.
- Business cannot succeed in societies that fail. There is no future for successful business if the societies that surround it are not working. Governments and business must create partnerships to deliver essential societal services like energy, water, health care and infrastructure.
- Poverty is a key enemy to stable societies. Poverty creates political and economic instability, a big threat to business and sustainable development. By contrast, businesses can lift living standards and eradicate poverty.
- Access to markets for all supports sustainable development. Sustainable development is best achieved through open, transparent and competitive global markets.
- Good governanceGood governanceGood governance is an indeterminate term used in development literature to describe how public institutions conduct public affairs and manage public resources in order to guarantee the realization of human rights. Governance describes "the process of decision-making and the process by which...
is needed to make business a part of the solution. Supportive frameworks and regulations are needed for business to contribute fully to sustainable development. - Business has to earn its licence to operate, innovate and grow. The way business acts and is perceived is crucial to its success. Accountability, ethics, transparency, social and environmental responsibility and trust are basic prerequisites for successful business and sustainable development.
- Innovation and technology development are crucial to sustainable development. They provide key solutions to many of the problems that threaten sustainable development. Business has always been, and will continue to be, the main contributor to technological development.
- Eco-efficiency – doing more with less - is at the core of the business case for sustainable development. Combining environmental and economic operational excellence to deliver goods and services with lower external impacts and higher quality-of-life benefits is a key sustainable development strategy for business.
- Ecosystems in balance – a prerequisite for business. Business cannot function if ecosystems and the services they deliver, such as water, biodiversity, food, fiber and climate, are degraded.
- Cooperation beats confrontation. Sustainable development challenges are huge and require contributions from all parties — governments, business, civil societies and international bodies. Confrontation puts the solutions at risk. Cooperation and creative partnerships foster sustainable development.
Membership
Membership of the WBCSD is by invitation of the Executive Committee to companies committed to sustainable development. Among its members are well-known companies such as General Motors, DuPontDuPont
E. I. du Pont de Nemours and Company , commonly referred to as DuPont, is an American chemical company that was founded in July 1802 as a gunpowder mill by Eleuthère Irénée du Pont. DuPont was the world's third largest chemical company based on market capitalization and ninth based on revenue in 2009...
, 3M
3M
3M Company , formerly known as the Minnesota Mining and Manufacturing Company, is an American multinational conglomerate corporation based in Maplewood, Minnesota, United States....
, Deutsche Bank
Deutsche Bank
Deutsche Bank AG is a global financial service company with its headquarters in Frankfurt, Germany. It employs more than 100,000 people in over 70 countries, and has a large presence in Europe, the Americas, Asia Pacific and the emerging markets...
, Coca-Cola
The Coca-Cola Company
The Coca-Cola Company is an American multinational beverage corporation and manufacturer, retailer and marketer of non-alcoholic beverage concentrates and syrups. The company is best known for its flagship product Coca-Cola, invented in 1886 by pharmacist John Stith Pemberton in Columbus, Georgia...
, Sony
Sony
, commonly referred to as Sony, is a Japanese multinational conglomerate corporation headquartered in Minato, Tokyo, Japan and the world's fifth largest media conglomerate measured by revenues....
, Oracle Corporation
Oracle Corporation
Oracle Corporation is an American multinational computer technology corporation that specializes in developing and marketing hardware systems and enterprise software products – particularly database management systems...
, BP
BP
BP p.l.c. is a global oil and gas company headquartered in London, United Kingdom. It is the third-largest energy company and fourth-largest company in the world measured by revenues and one of the six oil and gas "supermajors"...
, Wal-Mart
Wal-Mart
Wal-Mart Stores, Inc. , branded as Walmart since 2008 and Wal-Mart before then, is an American public multinational corporation that runs chains of large discount department stores and warehouse stores. The company is the world's 18th largest public corporation, according to the Forbes Global 2000...
and Royal Dutch Shell
Royal Dutch Shell
Royal Dutch Shell plc , commonly known as Shell, is a global oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the fifth-largest company in the world according to a composite measure by Forbes magazine and one of the six...
.
Member companies pledge their support and contribution to the WBCSD by making available their knowledge and experience, and appropriate human resources. They are asked to publicly report on their environmental performance and to aspire to widen their reporting to cover all three pillars of sustainable development - economic, social and environmental.
A key element is the personal commitment of the Chief Executive Officers (CEOs), acting as Council Members. They are influential advocates for the WBCSD’s policy positions, and they co-chair our working groups. They also organize support for the WBCSD’s work program and ensure the adoption of sustainable management practices within their companies.
Governance
The WBCSD is a member-led organization governed by a Council composed of the Council Members of our member companies. The Council elects the Executive Committee, including the Chairman and four Vice Chairmen. Past chairmen include:- Rodney F. Chase - BPBPBP p.l.c. is a global oil and gas company headquartered in London, United Kingdom. It is the third-largest energy company and fourth-largest company in the world measured by revenues and one of the six oil and gas "supermajors"...
(1995) - Livio D. DeSimone - 3M3M3M Company , formerly known as the Minnesota Mining and Manufacturing Company, is an American multinational conglomerate corporation based in Maplewood, Minnesota, United States....
(1996/97) - Egil Myklebust - Norsk HydroNorsk HydroNorsk Hydro ASA is a Norwegian aluminium and renewable energy company, headquartered in Oslo. Hydro is the fourth largest integrated aluminium company worldwide. It has operations in some 40 countries around the world and is active on all continents. The Norwegian state holds a 43.8 percent...
(1998/99) - Charles O. Holliday, Jr. - DuPontDuPontE. I. du Pont de Nemours and Company , commonly referred to as DuPont, is an American chemical company that was founded in July 1802 as a gunpowder mill by Eleuthère Irénée du Pont. DuPont was the world's third largest chemical company based on market capitalization and ninth based on revenue in 2009...
(2000/01) - Sir Philip WattsPhilip WattsSir Philip Watts, KCMG is the former chairman of the multinational energy company Shell.Watts was born on June 25, 1945, in Leicester, England and grew up in the Midlands where his father worked in the textile industry. Watts attended Wyggeston Boys' and Dixie Grammar schools in Leicestershire and...
KCMG - Royal Dutch ShellRoyal Dutch ShellRoyal Dutch Shell plc , commonly known as Shell, is a global oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the fifth-largest company in the world according to a composite measure by Forbes magazine and one of the six...
(2002/03) - Betrand Collomb - LafargeLafargeLafarge is a French industrial company specialising in four major products: cement, construction aggregates, concrete and gypsum wallboard. In 2010 the company was the world's second-largest cement manufacturer by mass shipped behind Holcim.-History:...
(2004/05) - Travis Engen - AlcanAlcanRio Tinto Alcan Inc. is a Canadian company based in Montreal. It was created on November 15, 2007 as the result of the merger between Rio Tinto PLC's Canadian subsidiary, Rio Tinto Canada Holding Inc., and Canadian company Alcan Inc. On the same date, Alcan Inc. was renamed Rio Tinto Alcan Inc..Rio...
(2006/07) - Sam DiPiazza - PwCPwCPricewaterhouseCoopers is a global professional services firm headquartered in London, United Kingdom. It is the world's largest professional services firm measured by revenues and one of the "Big Four" accountancy firms....
(2008/09)
Geographic balance
While the majority of member companies are headquartered in developed countries, the WBCSD has a strong regional representation in developing countries through its Regional Network, a global network of almost 60 national and regional business councils (BCSDs) and partner organizations.Pros and Cons of the WBCSD
The WBCSD is significant in its advocacy of largely market-oriented solutions to challenges of sustainable development.The 'Pros' of this approach include:
- Alerting business to the need for change to become sustainable
- Promotion of sustainability, sharing best practiceBest practiceA best practice is a method or technique that has consistently shown results superior to those achieved with other means, and that is used as a benchmark...
- Taking 'initiative' by making sustainability a global concern, backed by large and influential multinationals, corporations and organizations
The 'Cons' of this market-based approach include:
- The potential 'deradicalization' of Corporate Social ResponsibilityCorporate social responsibilityCorporate social responsibility is a form of corporate self-regulation integrated into a business model...
(CSR) - The depiction of sustainability agendas and business agendas as mutually compatible. This is described as a 'win-win' scenario; thus, the existence of 'win-lose' scenarios is neglected.
- The potential for conflation of internal contradictions within business and 'muddying of the waters' through such means as 'greenwashGreenwashGreenwashing , or "green sheen", is a form of spin in which green PR or green marketing is deceptively used to promote the perception that a company's policies or products are environmentally friendly.-Usage:...
', 'bluewashBluewashBluewash is a disparaging term used to describe a partnership between the United Nations and a corporation which has agreed to abide by the United Nations Global Compact. The compact outlines ten principles which promote environmentally sustainable practices, fair labor practices , human rights...
', 'astroturfingAstroturfingAstroturfing is a form of advocacy in support of a political, organizational, or corporate agenda, designed to give the appearance of a "grassroots" movement. The goal of such campaigns is to disguise the efforts of a political and/or commercial entity as an independent public reaction to some...
' and corporate agenda setting http://www.prwatch.org/node/999/print