business as usual is not an option idar kreutzer ceo, finance norway bi, 16.10.2012 1
TRANSCRIPT
Business as usual is not an option
Idar KreutzerCEO, Finance Norway
BI, 16.10.2012
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A global market in transition
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1950 1975 2000 2025 2050
World
Less Developed Countries
Population growth will occur mainly in developing countriesGlobal population (billion)
The global middle class is rapidly expandingPopulation in low- and middle-income countries earning $4,000- $17,000 per capita (purchasing power parity)
Greenhouse gas emissions keep risingGHG emissions by regions
Environmental degradation jeopardizes people’s quality of lifePeople living in areas of water stress by level of stress
Sources: UNPD, World Bank, OECD
Business as usual is not an option
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Today and BAU: The world is on an unsustainable track
Vision 2050: Around nine billion people live well, and within the limits of the planet
Source: World Business Council for Sustainable Development, Vision 2050
2050
TODAY
The pathway to Vision 2050
Source: World Business Council for Sustainable Development, Vision 2050
Redefining strategic framework for business
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Increasing complexity
of risk
Changing consumer behavior
Business
Evolving framework conditions
Rising cost of capital
Fluctuating prices and
availability of raw materials
”Those companies that
wait to be forced into
action or who see it solely
in terms of reputation
management or CSR, will
do too little too late and
may not even survive.”
Paul Polman, CEO Unilever
Hydro takes a leading position in redesigning production
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1990 1995 2000 2005 2010
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Kg CO2e / Kg aluminum
Source: Hydro. Average specific emissions from Hydro’s Norwegian smelters
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1993 1998 2003 2010 Qatalum HAL4e
KWh / Kg aluminumLower emissions
-70%
Lower energy use
Change we believe in
- Norway’s first plushouse is being built in Trondheim
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Design for the future
• Energy efficiency
• Use of materials
• Recycling – closed loop design
• Weight/volume/transportation
• Sustainable living
• Sustainable consumption
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Making a sustainable
lifestyle attractive
FutureFutureTodayToday
New decentralised businessmodels
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We are committed to creating economic value, but
we are not indifferent to how we do it
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SUSTAINABLE ASSET OWNER OF THE YEAR 2011
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Future business champions are those who develop products and services in a way that unites the global social and environmental
challenges with their own profitable growth