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performance grow
environment change*

WBCSD Sector projects

sustainable development


The power of working together

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2 Foreword

4 What are sector projects?

5 The process

Contents 6 Forest Products

10 Mining and Minerals

14 Cement Sustainability Initiative

18 Sustainable Mobility

22 Electricity Utilities

26 Tires

27 The Future
Sector projects are a unique feature of the work of the industry measures, manages and reports on carbon
WBCSD. They are voluntary initiatives demonstrating the dioxide and other emissions, fuels and raw materials use,
power of partnership and the commitment of companies employee health and safety, and the local impacts of
to work with others to manage some of the most difficult operations. The initiation of the cement project was driven
dilemmas in their industries. They are practical initiatives, by the recognition that the cement industry did not have a
rooted in independent research, to work out how critical defined position on sustainable development. This industry
industries can meet sustainability challenges. had received little public attention; however, it would only
be a matter of time before people started taking notice of its
The aim of each of the projects is to confront the key activities. The project was an opportunity to preempt
global sustainable development issues facing the industry, criticism, and has since focused on helping the cement
adopting a participatory approach to developing solutions industry play a full role in a more sustainable future and
broadly supported by stakeholders. Several of these projects providing the industry with tools to make this happen.
have successfully tackled fundamental issues that have
divided stakeholders for years. This is essential, because The Sustainable Forest Products Industry project was the
stakeholder acceptance is fundamental to industry first sector project adopted by the WBCSD, in 1994. With
maintaining its license to operate, innovate and grow and large-scale, global operations, and heavy reliance on
achieving a stable environment for long-term investment. natural resources, the paper industry was heavily criticized
prior to the establishment of the project. Many in the
It is clear from the outset of each of the projects that the industry responded by defending standard practices.
purpose is not merely to identify issues and challenges Organized by the then CEO of Aracruz, Erling Lorentzen,
faced by a particular sector, but to change industry leading companies decided to distinguish themselves from
practices and policies to make them more sustainable. the rest of the industry by identifying and implementing
It is what business does in response to the independent best practices. The project has since moved on from its
research and stakeholder consultations that has the original focus on paper to define how commercial forests
biggest impact on trust and reputation. and forest products can continuously improve
sustainability performance, and to build partnerships that
For example, the Sustainable Cement Initiative has help protect the vast areas of forests not used for
changed the ways in which a large segment of the commercial purposes.

The driving force behind the initiation of the mining see us as the right organization for such projects,
project was the realization by a small group of CEOs from discounting sectoral organizations as being too narrow.
the largest mining companies that there was a growing
trust deficit between the companies and society. Despite The importance of openness and engagement is the main
significant efforts by individual companies and parts of the lesson we have learned from these projects. We have also
industry to cope with this, the gap was growing. They learned that business leaders are prepared to invest
realized that a more organized, collective approach was substantial amounts of resources, both financial and
needed to address perceptions, to create the right human, including their own time, when presented with a
frameworks for further contribution, and in general to business case for addressing even the toughest issues in a
strengthen the business license to operate. sector-wide approach.

Each of the projects goes well beyond the normal confines While individual businesses can do much in pursuit of
of industry initiatives in addressing the three pillars of sustainability, these groundbreaking projects demonstrate
sustainable development in an integrated way. The the power of joint endeavors and the immense
companies involved represent a broad spectrum of the commitment of businesses to work in partnership toward
value chain rather than a particular interest group. And we sustainable development. They demonstrate that
have deliberately sought external inputs to ensure that sustainable development is too big for individual
proposals developed by these projects are not seen as companies to tackle on their own.
“industry solutions” only.

For each project, the industries face difficult challenges in

meeting economic, social and environmental demands.
Our members believe that the credible platform offered by
the WBCSD can help to examine how these intractable
issues can be dealt with while maintaining viable
industries. We have a reputation for high-quality, Björn Stigson
unimpeachable work and a broad membership base for President
World Business Council for
the projects to work with and communicate to. Members Sustainable Development

What are sector projects?
Sector Projects cover specific industry sectors under the WBCSD brand. They are
managed and funded by the participating members and other parties. The
WBCSD supports them in various ways and connects the projects to other
WBCSD activities.

They are voluntary initiatives, but they can support governmental obligations in
addressing sustainable development issues. All the projects are established with
specific outcomes in a given timeframe, and with committed funds from
industry and other sources.

The sector projects harness independent research and stakeholder consultations

to see how a particular industry can better align its practices and policies with
the requirements of sustainability. The purpose is not merely to identify issues
and challenges, but to change industry practices and policies to make them
more sustainable. Stakeholder-related activities aim to enhance the legitimacy of
the respective sector’s actions to promote sustainable development.

The paper industry was the first sector to adopt this approach, in 1994. Mining
and minerals, cement and mobility followed in 1999 and 2000. Electricity
utilities launched a project in 2001 and tires followed in late 2005.

In undertaking these projects, the sectors are trying to understand what

sustainable development means for the industry all over the world and from
many different viewpoints. The process therefore includes extensive stakeholder
dialogue so that many different voices are heard. It relies on research from
respected, independent organizations and involves a group of eminent
authorities to validate the research process and conclusions.

The WBCSD’s approach to sector projects is flexible enough to be adapted to

the needs and circumstances of the members and the position of the industry

Demonstrating the business case is central to the project’s work. It is the anchor
that keeps the project focused on linking business and sustainable development.
By demonstrating their case, companies active in a sector project can gain
buy-in from the sector at large, increase public trust and enhance their license
to operate, innovate and grow.

Partnership is also essential to the process. The challenges posed by sustainable

development are often too big for a single company to handle on its own. By
bringing together competitors and other companies in an industry, as well as
other stakeholders, such as government and other institutions, it is easier to
identify ways to move toward sustainability.

Accountability is also intrinsic to the approach, demonstrated by the presence of

independent, expert assurance groups and public access to their work on
project websites.

All these projects operate on a global scale, developing targets and indicators
that can be used to measure each sector’s progress toward sustainability. The
working groups include companies from many continents and from both
developed and developing economies. The findings are relevant to sustainable
development in all regions and all stages of economic development.

The process
The working group Assurance group

The working group, consisting of Most projects have an assurance

several WBCSD member companies, group to guarantee the neutrality and
provides core finance for the validity of the findings. The members
project, drives the process and The WBCSD of this group are eminent people
ensures objectives are achieved. It is from around the world who have
responsible for recruiting additional The WBCSD provides the process, built a reputation in the field of
corporate support, if necessary, for quality control and outreach sustainable development. They may
hiring a research organization to competency for these projects. It be academics, former politicians, or
provide external input, and for offers a credible, neutral platform heads of NGOs or other organizations.
appointing an independent for companies in an industry sector
assurance group. to jointly investigate sustainability There may be just half a dozen
challenges. It coordinates the work members or as many as 25. The
program, ensuring quality control group acts as a kind of referee and
throughout. The WBCSD also meets often, including with the CEOs
markets and disseminates the of working group companies. It may
output of these projects, generating brandish a “yellow card” if it feels the
momentum for change in policy project is heading in the wrong
Sponsor group and behavior across whole industry direction or missing important issues
sectors. or angles. The assurance group can
To widen the circle on which the ask the working group to change any
project can draw, funding and other aspect of the project, from the design
resources may be brought in from of the initial research to the framing
different sources. A sponsor group of the conclusions.
could include other companies from
the sector and its suppliers or
customers, who may or may not be
WBCSD members. Organizations
such as governments, the World WBCSD
Bank, universities, and NGOs have
also been involved.
Sponsor Assurance
group group

Stakeholder dialogues
Dialogues are common to all
projects, but each project develops
its own specific approach and
Research program. The objective is to listen
to and learn more about
The analytical work supporting the Industry stakeholder views and to share
project is contracted out to an members’ thinking in a forum
independent organization, assisted action exploring complex issues and
by substantial funds from plan addressing conflicts and priorities.
participants in the working group
and other sources. The research Stakeholders include governments,
body has full responsibility for the NGOs, business representatives,
analysis and for stakeholder local civil society organizations,
consultation. The research academics and other researchers,
organization holds the right to as well as individuals who do not
publish the results of its work in belong to or represent any formal
whatever form it wishes, although organization. Facilitated dialogues
copyright is held jointly by the have been held on all continents,
WBCSD and the researchers. involving hundreds of people.


Forest Products Industry

Forests cover 30% of the world’s total land area and are powerful symbols of sourcing, harvesting and trade of
nature and biodiversity, providing a range of goods and services that meet forest products;
everyday and essential needs. The annual global harvest stands at around 3.35
• Improve understanding between
billion cubic meters, split evenly between fuel wood for cooking and heating
industry and environment NGOs
and industrial fiber for wood and paper production. Annual production is
on key sustainable forest
worth about US$ 750 billion.
management issues and catalyze
joint action when practical;
A pulp and paper sector project began the tradition of sectoral initiatives in the
WBCSD when, in 1994, a group of forest companies commissioned a study on • Provide guidance for major
how to make the paper cycle more sustainable by assessing the role of the pulp business-to-business customers
and paper industry worldwide. on tools to assist in the
responsible procurement of forest
In 1996 the group published Towards a Sustainable Paper Cycle. Following its products;
release, an ongoing Sustainable Forest Products Industry (SFPI) working group
• Enhance the industry’s role in
was established to look at the forest industry in a more holistic way.
reducing greenhouse gas
emissions via carbon
The main goal is to earn, retain and expand the forest industry’s license to
sequestration, carbon storage in
operate, innovate, develop and market forest products by addressing critical
products and the supply of
issues associated with sustainable forest management, wood sourcing, energy,
renewable, carbon neutral
carbon emissions and sequestration.
biomass energy.

Through participation in multi-stakeholder engagement processes, this

project aims to:
• Build stakeholder consensus on the application of intensely managed
planted forests as a sustainability strategy, and on criteria and indicators of
forests for conservation;

• Encourage the credible use of multiple forest certification systems to verify

sustainability and expand the market for third party certified forest products;

• Work to improve forest law enforcement and governance to combat illegal

Vision: To lead business innovation in
sustainable forest management and
sustainable production, use and reuse of
forest products to meet the needs of
today’s world population for wood and
paper products, renewable energy,
ecosystem services and livelihoods, and
those of an expected nine billon people
in 2050.


Challenges • Reversing the substitution of forest

Leading sustainable development challenges facing the sector and stakeholders products by non-renewable,
include: energy-intensive, non-wood
• Demand for its goods and services is expanding due to population growth, alternatives that erode the
industrial development and rising living standards; achievement of sustainable
development outcomes in the
• Global forest processes and policies are fragmented, problematic and not
forestry sector;
focused on the primary causes of deforestation, which are poverty (i.e.,
wood fuel needs), agricultural development (food needs) and urbanization; • Enhancing company marketing
and communications – as well as
• Industry sources much of its wood fiber from small private landowners or
industry positioning – based on
state-owned forests, which means it has only indirect influence on forest
third-party forest certification and
management regimes;
sustainability reporting against
• Stakeholder relations have historically been weak, and while there has been appropriate targets and standards
improvement, relationships remain variable; developed through a multi-
stakeholder dialogue processes;
• No fully functional markets exist for forest ecosystems – such as watershed
and biodiversity – which influences forest management options; • The wider adoption of sustainable
forest management approaches
• The industry faces intense competition from non-wood substitute products, resulting in more productive
which often exploit the industry’s perceived weak sustainability performance. forests, creating multiple
opportunities for a wide variety of
users and stakeholders;
The business case • Enhancing product innovation
The SFPI group believes that sustainable economic growth requires sustainable and market development, such as
forest management and eco-efficient industrial performance based on the sector’s expanding role in the
innovation and technological development. Further benefits of pursuing renewable energy sector.
sustainability in the forest products sector include:
• Giving business an opportunity to demonstrate the long-term sustainability
of a sector based on renewable natural resources;

Since its establishment in 2000, The Forests Dialogue (TFD) has provided a • Encourage the use of credible
robust platform for business and NGO stakeholders to build consensus on forest certification systems;
critical sustainability challenges. Dialogue processes have been launched on
• Help develop appropriate
illegal logging, forest certification, intensively managed planted forests, forests
sustainability report parameters
and biodiversity and commercial forestry and poverty alleviation.
and investment guidelines for the
Over the past 10 years the forest industry has become an active participant in
enhancing environmental performance. In addition companies have greatly • Proactively turn climate change
improved stakeholder engagement, energy efficiency and the creation and and carbon challenges from a
development of recycling programs. business constraint to an
Significant expansion in the independent certification of forests for sustainable
• Enhance the development
management is also evident with around 5% of the world’s forests (over 200
contribution of the industry’s
million hectares) now certified, accounting for an estimated 18% of industrial
future investments in developing
production (nearly 600 million cubic meters p.a.) – with both trends increasing
rapidly, especially in developed countries with good forest management
practices. • Develop and communicate a
vision for the Sustainable Forest
Products Industry.
Moving forward
The project continues to seek ways to sustainably manage forests to meet the
needs of consumers and communities. As individual global companies,
collectively and in partnership with other groups, we will:
• Continue to support The Forests Dialogue multi-stakeholder process;

Key publications

Towards a Sustainable Paper Following up on Towards a The Sustainable Forest

Cycle Sustainable Paper Cycle Products Industry, Carbon
1996 2004 and Climate Change – Key
Messages for Policy-Makers

1994 1996 1997 2000 2002

Forest companies led Publication of An on-going working The World Resources Sustainable Forest
by Aracruz Celulose Towards a Sustainable group was Institute, the World Products Industry
and UPM-Kymmene Paper Cycle established in the Wide Fund for Nature (SFPI) working group
initiate a study WBCSD to deal with a and the SFPI group expanded to 14
examining the paper range of global convene The Forests members, up from 5
cycle, from felling forestry issues, Dialogue (TFD) original
trees to final disposal including mutual
recognition of
certification systems
and conservation of
forest resources

More information
Project members

Project co-chairs
MeadWestvaco, Stora Enso

Working group members

Aracruz Celulose, Grupo Portucel Soporcel, International Paper, Metsäliitto,
Mondi International, Nippon Paper, Norske Skog, Oji Paper, SAPPI, Siam Pulp,
UPM, Weyerhaeuser
(SFPI members account for about 40% of total global sales in the forest and
paper industry.)

Associate members
Caterpillar, Global Forest Partners, Kimberly-Clark, Procter & Gamble, Time, Inc.

The Forests Dialogue (TFD) at Yale University, International Council of Forest &
Paper Associations (ICFPA), National Council of Air and Stream Improvement

2003 2004 2005 2006

TFD fully operation with Towards a Sustainable Paper WBCSD signs MOU with the Joint publication with the
dialogue priorities set for Cycle progress report by World Conservation Union World Resources Institute on
next 3 years and business & IIED issued (IUCN) to enhance collaboration the responsible
NGO funding mechanism in on sustainable forestry issues procurement of forest
place.The WBCSD signs a Joint statement with WWF products under
collaborative framework International on Forest Joint statement with WWF development (for December
agreement with WWF Certification released International on combating release)
International to undertake illegal logging & trade released
joints efforts to improve SFPI Membership Principles
sustainable forest Key messages for Policy- & Responsibilities
management outcomes Makers and Negotiators developed
publication with NCASI
released at COP 11 of
Mining Minerals and Sustainable Development

The mining and minerals sector is global, but has intense local impacts. It is 8. Managing the relationship
also diverse - ranging across 90 mined substances later transformed into between large companies and
millions of products - and it is vital for many developing economies. Today, small-scale mining;
over 30 million people are directly employed by the mining sector, and 34
9. Sector governance: clearly
countries rely on minerals for at least one-quarter of all their exports.
defining the roles, responsibilities,
and instruments for change
In recent years, the industry has faced a wide range of serious sustainability
expected of all stakeholders.
issues, from concerns over labor practices and human rights to the
environmental impacts of extraction, processing and waste. Due to the intense
The report recommends the creation
local impacts of mines and related operations, nine leading mining companies
of clear spheres of responsibility for
created Mining, Minerals and Sustainable Development (MMSD) as a WBCSD
companies, NGOs, indigenous
project to better understand the sustainability challenges facing their sector.
people, labor and commercial
MMSD contracted the International Institute for Environment and Development
players. It also advises firms to
(IIED) to undertake a process of independent research and consultation.
develop consistent reporting
guidelines to ensure that key aspects
of company practices and
The final MMSD report, Breaking New Ground: Mining, Minerals, and Sustainable
performance are publicly reported
Development, includes an agenda for change and outlines nine key sustainable
and verified.
development opportunities for the sector:
1. Ensuring the long-term viability of the minerals industry;

2. Land control, use and management;

3. Using minerals to assist with economic development;

4. Making a positive impact on local communities;

5. Managing the environmental impact of mines;

6. Integrating the approach to using minerals so as to reduce waste and


7. Giving stakeholders access to information to build trust and cooperation;

Vision: To understand how the mining and
minerals sector can contribute to the global
transition to sustainable development.


Challenges • Reducing local poverty increases

The key sustainability challenge is to develop the sector in ways that help overall worker morale and
emerging economies without harming their people, and contribute to global productivity;
development while minimizing environmental degradation. To address this
• Cleaner production methods
challenge, companies must consider:
often lead to cost savings;
• Embedding sustainable development in the thinking of the companies by
linking best practice to financial success; • Lower operational risks improve
access to lenders and insurers;
• Avoiding conflict with other land uses by obtaining prior informed consent
from local communities, particularly where there is conflict between the • Life-cycle planning means less by-
state, indigenous groups and the company; product and therefore lower post-
closure costs;
• Facing the expensive legacy of abandoned mines and sites that have to be
rehabilitated with no obvious way to pay the bill as prices are in continuous • A sustainable development
decline; approach increases reputation
and market advantage by giving a
• Finding better ways to manage the wealth generated from mining
company the legitimacy to
operations, including the allocation of wealth between the investor, the
operate in new and existing
host government and the local community;
• Creating and enforcing the governmental frameworks needed to reduce the
opportunities for free riders and stimulate a “race to the top”.

The Business case

Breaking New Ground, the report that culminated two years of extensive
research, argues that one of the nine key challenges faced by the mining and
minerals industry is to link sustainable development to financial success. Some
of the advantages of the sustainable development approach in the mining
sector include:
• When companies demonstrate a commitment to sustainable development,
their employees tend to have higher morale and be more productive and

Because of its extremely diverse scope and enormous size, the mining sector
has only recently begun concerted group efforts to deal with sustainability
issues. The MMSD report Breaking New Ground was one of the first efforts by
the mining industry to produce a unified view of these issues. The member
companies created the International Council on Mining and Metals (ICMM) to
implement the findings of this report.

Moving forward
The ICMM is following up on a number of recommendations and is leading
efforts to improve the global sustainable development performance of the
mining, minerals and metals industry. It now has the lead in implementing the
project recommendations for the industry, and its work plan includes a
partnership with the World Conservation Union on biodiversity issues, the
World Bank on community concerns, and ongoing research support from IIED.

In 2006 it looked at the effects of mining in four developing countries on

economic growth and poverty rates. In 2007, the WBCSD and ICMM will assess
the implementation of the project’s recommendations, five years after the

Key publications

Breaking New Ground: MMSD Regional Reports Finding the Way Forward -
Mining, Minerals & Australia How Could Voluntary Action
Sustainable Development North America Move Mining Towards
2002 South America Sustainable Development?
Southern Africa 2003


1999 2000
Mining companies approach the WBCSD to create Mining, The United Nations Environment Programme (UNEP)
minerals & sustainable development (MMSD). The Council creates the Minerals Resources Forum, an online platform
contracts the International Institute for Environment and for dialogue, research and news about sustainable mining
Development (IIED) to undertake a process of independent efforts
research and consultation
More information
Project members

Anglo American, BHP Billiton, Codelco, Newmont Mining, Noranda, Phelps

Dodge, Placer Dome, Rio Tinto, WMC

2001 2004
The International Council on Mining and Metals (ICMM) is Release of the MMSD final report Breaking New Ground:
formed to provide leadership for improving the global Mining, minerals & sustainable development
sustainable development performance of the industry

Cement Sustainability Initiative

Cement is the glue that literally holds society’s infrastructure together, whether The Cement Sustainability Initiative
it is an individual home in Mexico, or a 5th runway at Heathrow. Concrete is (CSI) was formed to help the cement
the most widely used material on earth apart from water, with nearly three industry to address the challenges of
metric tons used annually for each man, woman and child on the planet. The sustainable development. The
most rapid market growth for cement today is in developing markets. business leaders of a group of major
cement companies lead the initiative.
Making cement creates a range of sustainability issues. Dust and noise from Its purpose is to:
cement plants and quarries are specific local issues. More broadly, the fuels and • Explore what sustainable
raw materials used in the manufacturing process generate greenhouse gases development means for the
and sometimes controversy. Land used for quarries must be restored to help cement industry;
retain landscape and local biodiversity. However, cement manufacturing can
• Identify and facilitate actions that
also help recover by-products from other industries; some by-products and
companies can take as a group
renewable fuels may be used to fuel kilns, thus helping to improve the
and individually to accelerate the
environment and making the industry more eco-efficient. Finally, in well-
move towards sustainable
controlled circumstances, cement kilns provide an environmentally sound
option for co-processing some waste materials.
• Provide a framework through
The industry employs about 850,000 workers in facilities in 150 countries, which other cement companies
producing about 1.5 billion metric tons of cement a year. It has an estimated can participate;
annual turnover of US$ 87 billion and has grown by nearly 4% a year over the
past decade. • Provide a framework for working
with external stakeholders.

Cement production is energy-intensive, accounting for 5% of global

carbon dioxide emissions, and it touches on a wide range of sustainability
issues including:
• Climate change

• Pollution

• Resource depletion

• Worker health and safety.

vision: To help the cement industry to play a
full role in a more sustainable future and to
provide the industry with tools to
make this happen.


Challenges • Reduction in risk weighting due

1. Resource productivity - Improving eco-efficiency through improved to improved management
practices in quarrying, energy use and waste recovery; practices and reduced liability;

2. Climate protection - Understanding and managing CO2 emissions; • Faster time to market, from
improved stakeholder
3. Emissions reduction - Reducing dust from quarrying, NOx, SOx, and other communications and trust.
airborne pollutants from cement manufacture;
In short, sustainable cement
4. Ecological stewardship - Improving land use and landscape management
companies can compete effectively
by raising profits while reducing the
5. Employee well-being - Managing and improving employee health and safety; cost of capital – doing more with less.

6. Community well-being - Working more effectively with local communities; By addressing these key sustainability
issues cement companies can:
7. Regional development;
• Manage their CO2 emissions (and
8. Delivering shareholder value. their corresponding climate
impacts), which can have
significant financial impacts in a
The business case carbon-limited world;
The business case for sustainable development in the cement industry revolves • Improve employee health & safety;
around shifting its traditional business approach from a resource-intensive and
profit-maximizing business model to a more eco-efficient, socially responsible, • Understand and manage the
and value-maximizing model. impacts of quarry projects
throughout the life-cycle, from a
There are several business advantages to a sustainable approach in the cement greenfield site through startup,
industry: operation and eventual closure;
• Cost reductions due to increased operational efficiency and effectiveness; • Help society better manage waste
• Revenue increases due to product differentiation and enhanced market materials by cooperation with
acceptance; other industries on novel uses of
by-product and waste materials in
• Reduction in capital employed due to process simplification and improved use; cement production.

Outcomes Moving forward
Under the auspices of the WBCSD, the working group commissioned the The initiative has raised interest
Battelle Memorial Institute, a US-based not-for-profit consulting firm, to among different bodies, such as
conduct independent research into how the cement industry can meet these CEMBUREAU (the European Cement
sustainability challenges. Battelle’s report, Toward a Sustainable Cement Association) and the Australian
Industry, was released in April 2002. Cement Industry Federation. Talks are
also underway with several other
An industry Agenda for Action containing measurable targets and setting out cement companies, associations and
joint and individual company commitments was released in July 2002. A Task non-governmental organizations on
Force was established for each of the six issues to complete joint activities. Task how they could play an effective role
Force members include cement company participants in the Initiative as well as in the implementation phase.
other organizations that can contribute substantively to the work program.
Individual companies are committed to the individual activities laid out in the An interim public progress report was
Agenda: released in June 2005 and will be
1. Climate protection and CO2 management followed by a full update and
assessment of future actions in 2007.
2. Responsible use of fuels and raw materials An external advisory group has been
established for this phase to help the
3. Employee health and safety
companies make further progress.
4. Emissions monitoring and reporting
Members have also agreed to pursue
5. Local impacts on land and communities
external assurance of reported values,
6. Reporting and communications. beginning with CO2 emissions. A
new task force was created to look at
The project produced two other important results during the research stage: issues around sustainability of
concrete construction.
1. A guide for cement plant managers on managing and improving local
stakeholder communications;
The program is part of a long-term
2. A standard protocol for measuring and reporting CO2 emissions, which is change management effort, moving
now endorsed by the United Nations Framework Convention on Climate from research to understanding, to
Change and the World Resources Institute, among others. commitments for action to
implementation at individual
Individually, each member company is now implementing the guidelines in companies and facilities. Materials
their operating facilities and reports publicly on progress. developed are being widely distributed
via the Web and communication
partners to allow other cement
Key publications companies to learn from this experience.

The Cement Sustainability The Cement Sustainability Environmental and social Guidelines for Emissions
Initiative: Our Agenda for Initiative: Progress Report impact assessment (ESIA) Monitoring and Reporting in
Action 2005 guidelines the Cement Industry
2002 2005 2005

1999 2002
Project starts research by identifying and examining all the Publication of the Battelle report, Toward a Sustainable
sustainability issues facing the industry over the next 20 Cement Industry, along with the sub-studies
years. In parallel, 13 sub-studies, ranging from carbon
dioxide emissions to socio-economic development, are
More information
Project members

Co-chairs 2006
CEMEX, Uniland

Core Members
Cimpor, CRH, HeidelbergCement, Holcim, Italcementi, Lafarge, Taiheiyo, Titan

Participating Members
Ash Grove, Cementos Molins, Cementos Portland Valderrivas, Gujarat Ambuja,
SECIL, Shree Cement, Siam Cement, Votorantim

Project Partners include other organizations (not cement producers) that wish
to participate in the CSI Task Forces and bring special knowledge to the work
program. Project Partners are by invitation of the CSI Core Members. Past
Partners include CEMBUREAU (Belgium), Japan Cement Association (Japan),
Verein Deutscher Zementwerke E.V. (Germany), British Cement Association
(United Kingdom), Cement Industry Federation (Australia), WWF International
(Switzerland) and the Natural Step International (Sweden). Communication
Partners include many cement federations (associations) who work with the CSI
to help communicate about the Initiative with their membership.

The Cement CO2 Protocol: Safety in the cement sector: Strengthening the CDM: A Guidelines for the Selection Formation and Release of
CO2 Accounting and Guidelines for measuring and Cement Industry Perspective and Use of Fuels and Raw POPs in the Cement Industry
Reporting Standard for the reporting 2005 Materials in the Cement (Second Edition)
Cement Industry 2005 Manufacturing Process 2006
2005 2006

2002 2005
Publication of the Agenda for Action, with its five-year Release of the CSI Progress Report
Completion of Task Force reports and guidelines


Mobility is an essential part of modern society, and is almost universally The SMP, limited to road
acknowledged to be one of the most important prerequisites to achieving transportation, defined “sustainable
improved standards of living. However, modern mobility has come at a price. mobility” as the ability to meet the
The way we are carrying out transportation is not sustainable if the present needs of society to move freely, gain
trend continues. Transportation is creating economic growth, and economic access, communicate, trade and
growth is creating transportation, but it is crucial that transport activities establish relationships without
become more efficient, more equitable and less disruptive – both socially and sacrificing other essential human or
environmentally. Given the amount of greenhouse gasses released by ecological values today or in the
transport, it is one of the main concerns of the work of our Energy and Climate future.
Focus Area.

Transport activities are predicted to grow rapidly, driven by many factors:

• Economic Growth and a higher standard of living

• Globalization – opening up of markets

• Population growth and increasing urbanization.

There are about 800 million vehicles on the roads today, a number that is
expected to grow to 2 billion by 2050. The transport sector accounts for a
quarter of the CO2 emissions in the world today and is growing fast. It is
anticipated that oil demand will increase by 60% over the next 25 years, and
that three-quarters of this growth will come from the transport sector. Mobility
footprints are considerable as to land use, stress on ecosystems, deaths and
injuries, air quality and noise.

Against this backdrop, a dozen of the world’s largest energy and automotive
enterprises joined with the WBCSD in 2000 to develop a vision of more
sustainable mobility in the future, and established the Sustainable Mobility
Project (SMP).

vision: To meet the needs of society
to move freely, gain access,
communicate, trade and establish
relationships without sacrificing
other essential human or ecological
values today or in the future.


The business case efforts lends insight into the

The Project provided indicators that are central to any vision of sustainable business environment of the
mobility and the route to get there. These indicators also constitute a yardstick future and so offers companies a
against which the effectiveness of various approaches can be measured. However, way to plan their business
different stakeholders have different approaches to the challenge of mobility. The strategy.
indicators reflect balance and harmony between the perspectives of the mobility
users, of society at large and of the mobility providers:
• Mobility users are concerned about how mobility meets their needs, access
and costs, as well as comfort and safety;

• Society focuses on the social costs, government revenues and fair

distribution of access to mobility;

• Mobility providers, mainly private businesses, depend on enough profit to

stay in business and the ability to provide solutions required by society.

The companies participating in the SMP believe that sustainability and their
own success will increasingly become synonymous.
• The mobility sector relies heavily on a limited source of non-renewable
energy. Newer forms of more sustainable sources will maintain the mobility
industry and ensure its long-term future.

• Innovation in sustainable technologies can help provide solutions to several

problems and reduce overall costs for the production and maintenance of

• Mobility is a high-profile topic that directly impacts many people.

Companies that take the lead in sustainability will significantly improve their

• Improvements in design and safety can mean fewer accidents and thus less
liability for manufacturers and producers.

• Measuring the progress and status of the industry’s current sustainability

Outcomes with a wide range of stakeholders
Research and stakeholder dialogues were carried out throughout 2001, and have been participating in a
culminating in Mobility 2001, a holistic study that deals with the great number of events throughout
interdependencies among transport modes, technologies, systems and the world.
institutions crucial to sustainable mobility.
Moving forward
The project launched two reports at the World Summit on Sustainable Even though the Sustainable Mobility
Development in Johannesburg in 2002: Move. Sustain, which concisely depicts Project has been completed, the
the background and evolution of the program, and Sustainable Mobility Project: WBCSD will continue to address
Progress Report, which recapped the work done from 2001-04 and the path the issues related to mobility. Transport
project took. of people and goods is crucial to all
businesses regardless of sector. If the
In July 2004, the project released a comprehensive report on the topic, Mobility current transportation trends are
2030, which proposes seven goals that, if achieved, would improve the unsustainable, as the Mobility 2030
prospects for sustainable mobility: report suggests, then business must
1. Reduce conventional emissions from transport so that they do not consider the strategic consequences.
constitute a significant public health concern anywhere in the world; Some of the topics discussed in the
report will be pursued through other
2. Limit greenhouse gas emissions from transport to sustainable levels;
WBCSD work programs, such as the
3. Reduce significantly the number of transport-related deaths and injuries transport sector’s impact on climate
worldwide; change, or access to mobility in the
developing world.
4. Reduce transport-related noise;

5. Mitigate traffic congestion;

6. Narrow “mobility divides” that exist within all countries and between the
richest and poorest countries;

7. Improve mobility opportunities for the general population in developed and

developing societies.

Launch events for media and stakeholders for Mobility 2030 were arranged in
Brussels, Detroit and Tokyo in July and August 2004. The participating
companies and the WBCSD considered these meetings as the start of a dialogue

Key publications

Mobility 2001 Mobility 2001 Overview Move.Sustain.

2001 2001 2002

2001 2002
Launch of Mobility 2001 10 workstreams set up to address sustainability issues
created by the dominant role of road vehicles and to
develop visions of future global systems of mobility

More information
Project members

BP, DaimlerChrysler, Ford, General Motors, Honda, Michelin, Nissan, Norsk

Hydro, Renault, Shell. Toyota, Volkswagen

Mobility 2030 Mobility 2030 Overview Mobility 2030 Executive

2004 2004 Summary

2002 2004
Launch of two reports at the World Summit in Release of Mobility 2030
Johannesburg: Move. Sustain and Sustainable Mobility
Project: Progress Report

Electricity Utilities

Electricity is more than energy. It is a vital component of infrastructure and an • Building and maintaining security
essential part of modern day life. It plays a critical role in the economies of most of supply – deliver the huge
countries and in the development of all. amounts of electricity required for
development and growth, while
As a vital component of infrastructure, its use is growing more quickly than that making adequate returns to
of any other energy carrier, and it will play an even greater transformational attract the necessary investment
role in the future. Electricity-based innovation is supporting increasingly and keeping prices affordable for
sophisticated global, real-time networks for communication, finance, trade and customers;
technology development. It is driving new technologies, ranging from lasers to
• Managing and reducing
microprocessors, which will make continuous improvements in industrial
environmental impacts – curb the
productivity and efficiency possible in the century ahead.
expected growth in the power
sector’s global carbon emissions
Electricity will act as a catalyst for business development in several sectors, and
(representing almost 40% of the
is critical for social development. Yet moving forward holds significant
world’s total, and projected by
challenges for the electricity utility sector as it is confronted by a number of
some to double by 2030), while
uncertainties associated with evolving government regulations, market
keeping other impacts and costs
restructuring, customer preferences and technological innovation.
at acceptable levels;

The WBCSD’s Electricity Utilities project brings together leading utilities from • Providing access to electricity for
around the world to develop a deeper and more concrete understanding of the those that do not have it – increase
fundamental sustainability challenges faced by the sector and to explore the access to electricity that far too
business contribution to solutions. many people in developing
countries lack and thereby
remove one of the most
significant stumbling stones on
the way to making poverty
Significant challenges for the sector in implementing sustainable development
practices come at a time when the business environment is undergoing
unprecedented change because of government deregulation, market
restructuring, customer preferences and technological innovation. The
challenges include:

vision: A power sector that makes wise use of
technology, operational excellence and governance
structures to meet the multiple challenges inherent
in providing secure and affordable electricity supplies
to all, while managing environmental impacts,
including climate change.

power of nature

Gaining support from stakeholders on future generation and transmission The electrification targets that can be
options will be another challenge for the sector. While each country will have derived from the UN Millennium
its own priorities for future energy options, some of the challenges ahead are: Development Goals represent a huge
• Balancing the economies of scale of large, centralized plants against the challenge. The political will of
inherent flexibility of smaller, decentralized investments; governments will be crucial, but
business can also make its
• Resolving with government and other stakeholders the issues related to contribution. Not only can
investment in renewable energy and new technologies with lower electrification projects in developing
environmental impacts than existing generation methods; regions be an effective way of
• Continuing to invest in research into new technologies that will help to demonstrating corporate
move the sector significantly further down the sustainable development commitment to sustainable
path; development, they might also yield
new business opportunities.
• Finding ways to make economic demand-side management investments
more attractive.

The business case

Increased competition in electricity markets inevitably makes companies focus
on short-term results. But communicating with policy-makers to make sure that
investment conditions are right to attract the required capital has never been
more important. Investment barriers have been causes of brownouts and
blackouts not only in developing countries.

Contributing to more than a third of the world’s CO2 emissions, the electricity
sector will undoubtedly be confronted with future carbon constraints. Pressure
from shareholders and stakeholders to manage carbon exposure is on the rise,
as climate policies are taking hold, even in non-Kyoto countries such as the US.

Consequently, it pays to be able to evaluate stakeholder expectations and to be

involved in the early stages of policy development, including the international
framework post-2012.

Outcomes Moving forward
The first phase of the project yielded an assessment of sector-specific principles Based on a clear common view of the
and objectives. It provided concrete examples of industry practices through challenges at hand, the power
case studies and established clear strategies for the industry to meet future companies in the project are now
challenges and progress on its path to sustainability. It stressed that: engaging their stakeholders
• Electricity companies are leveraging investment in research, development worldwide to help define an agenda
and marketing of new sustainable energy technologies and consumer for concerted action. This is focused
offerings; around six key objectives:
1. Continuously improving energy
• Many companies are conducting long-term strategic planning initiatives
efficiency (including end-use);
and ensuring that sustainable development issues are integrated into their
future investment decisions; 2. Investing adequately in
infrastructure and securing a
• Many electric utilities are taking early action by implementing greenhouse
reliable grid;
gas emission strategies, in the absence of any legislative requirements.
3. Diversifying and decarbonizing
The 2002 report, Sustainability in the Electricity Utility Sector, examines major the fuel mix;
foreseeable challenges, including the liberalization of electricity markets, future
4. Bringing to market promising
generation requirements, and next-generation options.
breakthrough technologies over
the longer term;
The second phase of the project was launched at the beginning of 2005 and
takes a closer look at the challenges identified in the first phase. Project 5. Providing wider access to
members have set up a plan through 2006 in order to: electricity;
• Improve the understanding of the fundamental trade-offs that decision-
6. Developing partnerships and a
makers and society at large will have to face;
systematic dialogue with decision-
• Develop common communication tools for dialogue with stakeholders and makers and civil society.
policy-makers, defining the role of utilities and that of other players;

• Identify approaches to integrating sustainable development into long-term


Key publications

Sustainability in the Electricity Sustainability in the Electricity

Utilities Sector – Executive Utilities Sector
Summary 2002

2000 2002
Project begins with companies taking a critical look at their Publication of Sustainability in the Electricity Utility Sector,
operations detailing sustainability principles and strategies and a
collection of best practices

More information
This agenda is underpinned by
factual issue briefs on the
sustainability performance of all
different resource options for
electricity generation such as coal,
gas, nuclear and renewables, helping
to define a common and holistic view
on facts, key technology
developments and policy needs.
Additional themes include
transmission and distribution
systems, the role of utilities in
promoting energy efficiency, and the
access challenge.

The project’s stakeholder

engagement phase includes a global
online consultation and events in
India, China, and at major
international conferences such as the
UN climate negotiations or the UN
Commission on Sustainable
Development. The final report from
the second phase is to be published
towards the end of 2006.

In addition, the working group will

contribute to developing
sustainability indicators for a pilot
version of a Global Reporting
Initiative supplement for the energy
utilities sector.

Project members

ABB, EDF, Eskom

Working group
CLP, Entergy, Kansai, Suez, Tepco

Associate members
Caterpillar, Global Forest Partners,
Kimberly-Clark, Procter & Gamble,
Time, Inc.

2005 2006
Project moves into its second phase, exploring key Launch of the stakeholder engagement phase
challenges and looking at technology options in more


Tires are essential to road and surface mobility, providing the moving surface of By taking an early look at these
our many transport vehicles and the only contact point with the ground. issues, these industry leaders want to
understand more about the
Simple in appearance, tires are quite sophisticated products. Tire making sustainability challenges they face in
involves a complex blend of materials and assembly processes to produce the a constantly evolving regulatory
thousands of different products used on equipment ranging from bicycles to environment and formulate an
huge earthmovers. A typical tire includes dozens of different components, approach to making the industry
using more than 100 primary raw materials, which must be precisely more sustainable by better assessing
assembled and processed to achieve the right balance between many and managing impacts from its
competing factors: grip, energy efficiency, handling, comfort, noise and cost, to products and processes.
name a few.

Tire industry leaders have begun to examine several sustainability issues facing
this sector, gather data and identify potential concerns and address them.
Following a global CEO meeting in March 2005, 11 companies have organized
a series of initial studies.

Project members
Initially this project will address two issues:
1. Evaluation of materials commonly used in tire making for any potential Co-chairs
health and/or environmental impacts; Bridgestone, Goodyear and Michelin

2. The fate and impacts of particulate matter generated during normal tire use
Working group
and wear.
Continental, Cooper Tire & Rubber
Company, Hankook Tire Co., Kumho
Over the next year, the group will examine the availability and quality of Tire Co., Pirelli, Sumitomo Rubber
existing data dealing with these two issues, identify knowledge gaps, and Industries, The Yokohama Rubber
develop a comprehensive plan to fill those gaps in succeeding years. ChemRisk, Co., Toyo Tire & Rubber Co.
a US-based consultancy specializing in risk analysis, has been retained for these
initial studies. They will work with DIK, the German Institute of Rubber
Technology. The company CEOs will review the scoping work in early 2007
More information
and consider further studies at that time.

The Future

The WBCSD is in the scoping phase of other Sector Projects, including one
involving the chemicals sector.

The Council and our members have found that such projects are excellent ways
for entire sectors to manage the challenge and opportunities inherent in
sustainability issues. Our first Sector Project, on how to make the production of
paper more sustainable, began when a leader in the Latin American pulp and
paper industry asked the basic question of whether he should be replanting
trees, given society’s demands for recycled fibers. The resulting study, Towards
a Sustainable Paper Cycle (1996) found that sustainably managed plantations
would be the basis of meeting the world’s supply of paper into the future.

WBCSD Sector Projects allow business sectors to present a united front, not
against the rest of society, but with society, in that all of them work towards
their conclusions in partnership with stakeholders from civil society and

We look forward to helping other sectors organize their approaches to

tomorrow’s business and to sustaining human progress.

About the WBCSD
The World Business Council for Sustainable Development (WBCSD) brings together
some 180 international companies in a shared commitment to sustainable
development through economic growth, ecological balance and social progress. Our
members are drawn from more than 30 countries and 20 major industrial sectors. We
also benefit from a global network of 50+ national and regional business councils and
partner organizations.

Our mission is to provide business leadership as a catalyst for change toward

sustainable development, and to support the business license to operate, innovate
and grow in a world increasingly shaped by sustainable development issues.

Our objectives include:

• Business Leadership – to be a leading business advocate on sustainable

• Policy Development - to help develop policies that create framework

conditions for the business contribution to sustainable development;

• The Business Case - to develop and promote the business case for sustainable

• Best Practice - to demonstrate the business contribution to sustainable

development and share best practices among members;

• Global Outreach – to contribute to a sustainable future for developing nations

and nations in transition.

Copyright © WBCSD, August 2006

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