- Affordable energy identified as the decade’s biggest business concern in sustainable development
- Concerns intensifying significantly within a decade on water scarcity, food security and climate change
- Seven out of ten would take more action on development goals if Rio+20 sets direction
Seven out of ten CEOs in a global PwC business poll say they would take more ambitious action on issues related to the Millennium Development Goals including issues of energy, water and sustainable development if progress is made at Rio+20 Conference on Sustainable Development. Just under half have made pledges so far.
With less than a month to go to the landmark Rio+20, PwC examined global threats and challenges to business in driving sustainable development including water, food security, resource scarcity, climate change, equality and social inclusion and affordable energy. The poll reflects that as issues of energy affordability, water scarcity and climate change move to become strategic business concerns, the gap between sustained and sustainable development could be closed.
CEOs identified affordable energy, equality and social inclusion, sustainable consumption and resource scarcity as the top three concerns related to sustainable development in 2012.
Significantly, across all the issues identified, CEO concerns are intensifying with climate change and food security amongst issues increasing in concern by 2022.
- 87% of CEO respondents say affordable energy is important to their business, increasing to 89% by 2022. The proportion of these for whom it is very important increases significantly, from 39% in 2012 to 60% in 2022.
- Concern is increasing about the issues of water scarcity (up 13% to 78% by 2022) and climate change (up 10% to 78% by 2022) will play in their business.
Malcolm Preston, Global Lead, Sustainability and Climate Change, PwC, said, “Global threats and challenges of sustainability are now clearly on the radar screen for multinational companies. Affordable energy, resource scarcity, water stress and climate change are all expected to become bigger, more pressing issues for corporate strategy within the next ten years, and that is a shorter window than the time frame for most major investments.”
“There’s a perception that there is a lack of understanding in the corporate sector about Sustainable Development, yet the issues of water, energy, resource scarcity are very real issues,” he added.
The business jury is out on what progress will be made at the conference. Just half of those polled expect any progress across the issues being discussed.
- Four out of five said private sector pledges such as emissions reductions targets, or national / regional regulation, or taxation would be far more effective in driving action in the private sector.
- Global goals and targets (including the MDGs) (30% not effective at all), and regulations / treaties like the Kyoto Protocol (25%) were seen as ineffective by over a quarter of CEOs.
Malcolm Preston said, “The Rio+20 Summit can shape the vision and drive the ambition. But business has more confidence in ‘bottom up’ driven actions than it has in ‘top down’. Over 90% of CEOs signaled that regional or national regulation and fiscal measures, along with private sector investment, are the most effective mechanisms for driving investment and change.”
“There is a sense that business can and will respond on sustainability and climate change. Big business gets the strategic importance of sustainable development and consumption, and many major players are already taking action in their businesses and along their supply chain. But the private sector is looking for more ambition and more leadership from governments and policymakers,” he further added.
Notes:
1. PwC polled 141 CEOs of companies with revenues between $10m-$10bn+ during April and May 2012.
2. CEO ranking of how important or unimportant the following issues are likely to be for their business now, and in ten years time.
Source: PricewaterhouseCoopers LLP.
