How sustainable are we and does it matter

How sustainable are we and does it matter?

The February Floods 14 - 17 February 2004 Lower North Island Marlborough A number of rural communities had to be evacuated, and at the height of the emergency about 2, 300 people had to leave their homes and farms Half the roads were closed & more than 20 bridge were damaged Around 2, 600 farmers were affected with some having to abandon farming their properties Economic Loss: Cost over $112 million in insurance payouts government granted $135 million in aid to farmers Total economic impact est $400 million Pohangina River Flood Damage

Bay of Plenty Floods July 2004 Flood waters entered Te Teko and Edgecumbe, and swamped some 17, 000 hectares of farmland. Followed by 30 Earthquakes. 200 people had to leave their homes, many sheltering in evacuation centres landslides on saturated hillsides more than 450 farms were affected, with over 200 homes made uninhabitable Economic Loss: Rural bill $45 m for flood damage Damaged houses on a cliff in Ohiwa, Whakatane, on New Zealand's north island after the collapse of an escarpment during the floods. Picture: Reuters

Hurricane Katrina August 29, 2005 Most damaging storm in US history 1000 deaths 1, 000 environmental refugees Photo: NOAA $125 billion in damages

Cyclone Larry Innisfail NQ March 2006 55% of homes destroyed Banana crops wiped out $1 billion in damages Consumers paying $13 - $20 kg Photo: Cameron Laird

Photo: Fairfax Photos Sydney Hail Storm, 1999 $1. 6 bil insurred loss Total economic loss $2. 2 bil

Victorian Bush Fires February 2009 173 Deaths 500 Injured 72 Hospitalised 78 Townships 3, 500 Buildings destroyed including 2029 homes 7562 homeless/displaced 450, 000 Ha Burnt

Drought one of the biggest costs to humanity. . .

NZ Drought cost $2. 8 Billion Nationwide drought between spring 2007 and autumn 2008 cost the New Zealand economy $2. 8 billion ($1. 9 billion on-farm and $900 million off-farm) Current drought. . . • Milk production down • Failed crops Extreme weather patterns increasing Failed Turnip crop in Kerikeri

Food Security Threatened Seed poisoning Bowen NQ • More than seven million seedlings poisoned (tomato, capsicum melons, eggplant, zucchini and pumpkin) • $23 million in lost production targets • Local service providers $7 million loss • Bowen community economic impact $50 - $100 million • This is the fourth mass poisoning of seedlings in the Bowen area since 2002. The last was in 2006. No-one has been caught.

So far, how are we doing? Can we sustain this sort of loss? ? ?

The Economics of Climate Change… Currently costing us 1% of GDP If no action, could disrupt economic and social activity on a similar scale to that of the great wars and the economic depression of the first half of the 20 th century that would be difficult or impossible to reverse. If no change – cost between 5 – 20% OF THE GLOBAL GDP NOW AND FOR EVER. Source: Stern Review on the Economics of Climate Change 2006 In Aust CSIRO suggest 3 - 15% of GDP

Congratulations NZ on ETS • Not always popular but this is leadership that you will be thankful for in a few short years – this is your time to innovate and get ahead of the curve. • Debate over – even China is establishing an ETS. • Good start to building a green economy. Green Economy in Europe now bigger than Aviation and Pharmaceuticals. • We have to do more with less. • Congratulations Horticulture NZ target to double food production by 2020 (ahead of world expectations to double outputs to feed growing population by 2050). • Influx of Aussies?

How clean and green is NZ in the eyes of the world? • NZ no longer in race to be carbon neutral country. Tuvalu, Maldives and Costa Rica reaffirmed their commitment to carbon neutrality by 2019, 2020 and 2021 respectively. Tuvalu expects to reach its goal by replacing imported diesel with solar and wind power. Costa Rica is relying heavily on tree planting. Norway is aiming to be zero-carbon by 2030. Antigua & Barbuda, Ethiopia, the Marshall Islands and Samoa all committed to carbon neutrality. • Not included in UPS carbon neutral shipping program. The 35 countries and territories involved in program include: Argentina, Brazil, Dominican Republic, Mexico, Canada, Puerto Rico, Austria, Belgium, Denmark, Finland, France, Germany, Great Britain, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Spain, Sweden, Switzerland, Australia, Hong Kong, Japan, Malaysia, Singapore, Taiwan, Thailand, India, Indonesia, Philippines, South Korea, China and Macau.

Some NZ communities, businesses and cities included in certification programs. Initially used in tourism and hospitality. Popular with wine industry. Earth. Check Assessed to measure water, waste, energy CSR costs AUS$395 Earth. Check Certification once you meet acceptable benchmark AUD $2, 800 Average savings when using Earth. Check Energy 30% Water 20%, Waste streams 30% and Lower staff turnovers.

PAS 2050, the first standard method for calculating life cycle greenhouse gas (GHG) emissions of products– integrates product life cycle assessment with GHG emission accounting. Carbon Reduction Label provides companies with a certified, consistent and comparable way to display their products’ footprints, along with a commitment to reduce those footprints over time. Fresh orange juice’s footprint of 360 g CO 2 e is compared to long-life juice with a lower footprint of 240 g CO 2 e; the Carbon Reduction Label also explains why the footprints differ, i. e. due to energy required to chill the fresh juice.

Tesco and the BSI PAS 2050 Tesco plc is the third largest grocery retailer in the world. It employs over 440, 000 people in 13 markets – 280, 000 of those in the UK. Over 30 million people shop with Tesco worldwide every week. Tesco represents the largest test of the BSI PAS 20501 draft product carbon foot printing method and the Carbon Trust Carbon Reduction Label. Set in the context of the commitment from Tesco’s CEO to find a “universally accepted and commonly understood measure of the carbon footprint of every product we sell”. It started with light blubs, potatoes, washing detergent and orange juice – now over 120 products. It identifies three strategic priorities for tackling climate change: ü Setting an example by measuring and reducing Tesco’s own direct carbon footprint. ü Using ‘resources and relationships to work with others to achieve a low carbon economy of the future’. ü ‘Empowering customers to make environmental choices…by providing the information on which to make an informed choice’.

Opportunity. . New Guidelines and Standards The future ISO 26000 standard giving guidance on social responsibility now Final Draft International Standard (FDIS) is expected to be out by the end of 2010. • Press release - http: //www. iso. org/iso/pressrelease. htm ? refid=Ref 1299 • Mini-site - http: //isotc. iso. org/livelink/fetch/2000 /2122/830949/3934883/3935096/home. html? nodeid=4451259&vernum=0 • Brochure - http: //isotc. iso. org/livelink/fetch/2000 /2122/830949/3934883/3935096/02_news/De pliant%20 A 4%20 Social%20 responsibility%20%20 E. pdf • Free Draft of ISO/DIS 26000 - http: //infostore. saiglobal. com/store/Details. aspx? Pro duct. ID=1137989

Opportunity WBCSD and WRI developing two new standards – Product Life Cycle Accounting and Reporting Standard – Scope 3 Accounting and Reporting Standards It provides the accounting framework for nearly every GHG standard and program in the world - from the International Standards Organization to The Climate Registry - as well as hundreds of GHG inventories prepared by individual companies. The GHG Protocol, a decade-long partnership between the World Resources Institute and the World Business Council for Sustainable Development, working with businesses, governments, and environmental groups around the world to build a new generation of credible and effective programs for tackling climate change. Standards due to be completed by December 2010 http: //www. ghgprotocol. org/standards/product-and-supply-chainstandard

Opportunity. . . Climate Change, GDP and Measurement • Global movement to look beyond GDP • Focus on people not just economies • Moving from production to well-being Framework / Standard 2012 http: //www. eea. europa. eu/pressroom/speec hes/2018 beyond-gdp 2019 -accounting-andclimate-change

Ecosystem accounts highlight what is really happening to our stocks of bio-carbon

But perhaps even more important, they inform us of ecosystem health – crucial for resilience and adaptation to climate change impacts

Only by communicating in the same language as national accounts can environmental and social perspectives earn the same status

Eco. Systems Valuation • First attempt to value ecosystems 10 years ago ecosystems were valued at US $33 trillion almost twice as high as global gross domestic product (GDP) • Estimated the world loses natural capital worth between US$1. 9 trillion and US$4. 5 trillion each and every year. Ecosystem degradation is becoming a sustainability issues for business and society at large. • Some estimates suggest payments for ecosystem markets for products from certified forests could grow from an estimated US$15 billion in 2010 to around US$50 billion in 2050. Certified agriculture (inc hort) could grow from US$42 million in 2005 to around US$97 billion in 2012 and US$900 billion in 2050. • Organic production is now the world's fastest-growing food sector. • WBCSD suggest 10 reasons why business should employ corporate ecosystem valuation as a decision-support tool to improve operational efficiency and or develop new business opportunities whilst reducing environmental impacts or footprint and build your ecosystem assets.

Benefits of Ecosystem Valuation 1. Improves business decision making 2. Capturing and pricing new income streams 3. Saving costs and avoided expenditure 4. Reduces taxes 5. Sustain revenues 6. Revaluing assets 7. Investigating new goods and services 8. Assessing liability and compensation 9. Measuring company and share value 10. Reporting performance

WBCSD Vision 2050 – The new agenda for business.

Advantage being forced to measure your footprint. . . Consider carbon neutrality offset with your own carbon Credits… Put pressure on your suppliers…to help you achieve greater success

Lifestyles of Health & Sustainability [Acronym: LOHAS] – 100 million+ people in developed countries Worth: US$500 b+ global market

LOHAS Market Categories

Mainstream – Not fringe or marginalised Defy typical demographic & psychographic stereotypes Values driven & this is reflected in their purchasing choices

Actively seeking Valid, Transparent and Authentic Information Dislike spin & hype & untrusted opinions & sources Certification and labelling becoming the norm

Consumer Attitudes 75% consider environmental and social aspects in deciding what to buy; 1/3 are willing to pay more for those benefits “Sustainability: The Rise of Consumer Responsibility” Report, The Hartman Group, Jan 09 35% of U. S. consumers say they would pay more for environmentallyfriendly products Mintel survey, March 2010 80% of consumers are interested in some type of green product. LOHAS Consumer Trends Database® study, drawing from research conducted among 50, 000+ consumers in over 20 countries, May 2010 32% of U. S. consumers, said they still look for or often buy green products. 2009 survey of more 1, 000 U. S. consumers More shoppers "systematically" purchased green products in 2008 than in 2007. 34% of Europeans (up 2% from 2007) say they would continue to systematically seek and purchase green products. Boston Consulting Group, January 2009 survey of 9, 000 consumers in North America, Europe, China, and Japan

Consumer demands for green products 32% of U. S. consumers, said they still look for or often buy green products. 2009 survey of more 1, 000 U. S. consumers “Green” household products as a whole grew 71% in 2009 compared to 2. 5% for traditional household products. IRI 2009 data 84% “Willing to change lifestyle for the good of environment” Why? 82% “It’s good for the environment” 78% “It helps future generations” 78% “It’s healthy” 78% “It’s the right thing’ to do” 73% “It fits with my morals or beliefs” Survey of 1000 Americans by Insight Research Group, HGTV, and the NRDC, Jan 08

Green Behaviour Segments Xxx High Willingness To Pay Latent Greens Low Activism Green Consumers 40% 27% Inactive 23% Green High Activism Activists 10% Low Willingness To Pay Environics 4 th annual International Environmental Monitor Survey

What the rest of the world think "Protecting the environment should be a priority, even if it causes slower economic growth and some loss of jobs“ Canada 76% agreed U. S. A. 64% agreed China 82% agreed “People should pay higher prices to deal with climate change” Canada 54% agreed U. S. A. 41% agreed Pew Global Attitudes Survey, Aug 2009

Responsibility Capacity Index Dr. Goran Carstedt Senior Director of the Clinton Climate Initiative, C 40 Cities. He is chairman of The Natural Step International and engaged in the formation of the SOL Global Network dedicated to the "interdependent development of people and their institutions. ” He is the former head of IKEA Retail Europe (1990– 1997) and President of Volvo Svenska Bil AB. http: //stonehousesummit. com/goran-presentation Global Peace Index In 4 th year

How sustainable are you? Does it matter?

This is the opportunity of a life time. . .

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