4 February 2010

A presentation from Vision 2050 co-chair, Mr Idar Kreutzer (CEO, Storebrand) focused on challenges, transformation and opportunities for business. He raised concerns over the growing demand of fossil fuels, water, and so on, with high population growth, which could lead to resource insecurity and an ecosystem collapse. The need to develop pathways that can quantify market potential and exploit the available opportunities was highlighted. The business response to the challenges included providing a platform to affect a change.

After acknowledging that the biggest risk that business face today is inaction, the session proceeded towards a group discussion, facilitated by Mr Mark Spelman (Global Head of Strategy, Accenture, UK), to identify the ‘must haves’ for implementing Vision 2050.

The following broad themes were identified:

Political Need for government action to reduce negative subsidies, introduce strong legislations and offer incentives

Technological Improving efficiency by investing in R&D and emphasis on green technologies.

Economic Need for internalizing cost, reducing externalities, risk-sharing amongst various stakeholders.

Social Increasing public awareness via multimedia, making efforts to alter consumption patterns and lifestyles, empowering women and youth.

The session focused on the initiatives that companies have taken to promote development with a sustainable touch. Examples that focus on convergence of development, environment and economics were highlighted. The need for ethically, equitably and environmentally responsible banking to promote a new paradigm in development was deliberated upon.

The panel pointed out that to tackle high energy costs in India, some industries and service providers have successfully worked towards making their process among the most energy efficient worldwide. Small interventions that can reduce energy consumption in a big way, such as providing a sleep mode at telecom base stations at night, were discussed. The panel also discussed the need to promote research in the development of efficient technologies and to address the associated barriers.

The need to be creative and develop solutions in addressing the problem of high energy consumption was emphasized as well as the importance of game changers in the field of energy efficiency. The telecom industry was cited in this regard, and it was suggested that lessons learnt from policy interventions that promoted competitiveness of the telecom markets could be modified to open market for providing energy from cleaner sources in India.

Members of the floor raised the problems that arise when markets are not competitive in certain sectors of the economy which leads to firms not being efficient, as well as examples of companies adopting environmentally friendly technologies in India.

Highlighting the growing stress on water resources, the session emphasized on the fact that agriculture consumes the largest share of water followed by industry which consumes 5 % of the water resources. Given the situation of water scarcity and mounting stress, water shall soon be valued as liquid gold and the next World War would be fought on water issues.

Though the industrial water consumption is a small percentage of agricultural water use, its recycling and efficient use in the sector can have a positive impact on water resources. It was highlighted that the consumption of water in several industries being higher, the industries should move towards water-use efficiency, use of innovative technologies, and taking appropriate measures for water conservation. It was emphasized that engaging different stakeholders such as societies, NGOs, government, and industries in a dialogue for efficient water management is vital for sustainable water use. The forum stressed the need for wastewater reduction, recycle, and reuse in the industrial sector.