1、2024 Update It is no longer a question of whether a transformation towards global sustainable resource consumption and production is necessary,but one of how to make it happenGlobal Resources Outlook 2024:Implications for Business BUSINESS BRIEFWHATS INSIDE?The Global Resources Outlook 2024 Key Mess

2、ages What It Means for Business?How Business Can Act2Global Resources Outlook 2024:Implications for BusinessGlobal Resources Outlook 2024:Implications for Business2IntroductionThe GRO represents the most comprehensive assessment of global material flows,emphasizing the urgent need for transformative

3、 action.It provides valuable insights for CEOs and boards to decouple value creation from resource consumption,unlocking new profit avenues and enhancing resilience.By integrating circular economy practices into business models and value chains,companies can lead systemic change,driving demand signa

4、ls for sustainable resource management and fostering collaboration for a healthier planet.During the sixth United Nations Environment Assembly(UNEA6)on March 1st,the International Resource Panels flagship report,the Global Resources1 Outlook 2024(GRO)was revealed,highlighting the alarming rise in ma

5、terial extraction over the past 50 years,fueling the triple planetary crisis.The full report can be viewed here.As natural resource demand surges,businesses face a critical imperative to optimize resource productivity and resilience.Embracing sustainable resource management and circular economy prin

6、ciples offers a pathway to decarbonization,nature protection,and just transitions,presenting significant opportunities for businesses to shape future-proof models and alliances.1 Resources as defined by the GRO24 including land,water and materials are seen as parts of the natural world that can be u

7、sed in economic activities to produce goods and services.Material resources(see above)are biomass,fossil fuels,metals and non-metallic minerals.3Global Resources Outlook 2024:Implications for BusinessKey Messages of GRO24:Increased resource use is unequivocally linked to rising climate and nature ri

8、sk.Extraction and processing of material resources,including fossil fuels,minerals,non-metallic minerals,and biomass,contribute to at least 55%of greenhouse gas emissions2(GHG)and 40%of health-related particulate matter impacts.Fossil fuels drive the most impacts across all material value chains:cli

9、mate impacts of metal and non-metallic mineral value chains are driven by fossil-fuel-powered processes in their extraction and processing.Downstream,climate impacts are driven by fossil fuel combustion in further processing and logistics,and by combustion in households.Material-related impacts on n

10、ature3 are almost completely(90%)driven by the extraction of biomass,largely in agriculture and forestry.Natural resources underpin our modern economy,and our demand for natural resources is accelerating every year despite attempts to dematerialize and decouple.GRO24s peer-reviewed data shows that r

11、esource extraction continues to grow by nearly 400%since 1970,and still by 2.3%per year,to a level of 106.6 bn tonnes in 2024,while material productivity stagnates.If historical trends continue,resource extraction will increase by almost 60%until 2060(1.6x 2020 levels),primary energy use will increa

12、se by 50%(1.5x 2020 levels),and emissions will increase by 83%.The sustainable alternative is described in the report as the Sustainability Transition Scenario.The urgency of phasing out fossil resources is well established,and GRO24 reinforces this direction.This is likely to bring even greater dem

13、and over the next years for certain natural resources necessary for the clean transition,such as land,water,minerals,metals,or rare earth elements.2 If emissions from land use change are also included,this figure rises to 60%(See GRO24,Chapter 3).3 Land-related biodiversity loss(See GRO24,Chapter 3)

14、.Figure 1:Material extraction continues to grow while productivity stagnates(material productivity=unit GDP per tonnes extracted)(Source:Global Resources Outlook 2024)Source:International Resource Panel(2024),Global Resources Outlook 2024;IRP Global Material Flows database Example-A group of partner

15、s from industry,science and beyond recognized the opportunity forming“Battery Pass”,a consortium of leading experts to jointly advance the implementation of the battery passport based on requirements of the emerging EU Battery Regulation and beyond.The consortium is the first project that brings tog

16、ether experts from leading organizations along the entire battery value chain to develop timely and holistic guidance on all relevant aspects of a Digital Battery Passport.Battery Pass Content Guidance 4Global Resources Outlook 2024:Implications for BusinessOur current resource use patterns are caus

17、ing severe environmental impacts,while many citizens of the world do not have their basic needs met.We can only capitalize on opportunities and avoid risks if we decouple resource use from rising human well-being,economic activity,and climate and nature impacts.In high-income contexts,where human ne

18、eds are largely met,the ultimate aim should be reducing resource use altogether.However,increasing resource use(while avoiding the worst impacts)is necessary and just in low-and some middle-income contexts where additional resources are needed to meet human needs.The systemic answer is clear:Bend th

19、e trend!Markets will have to shift towards more effective ways of using resources,smartly and responsibly.Shifting the market can also deliver better value and quality well-being,which means focusing on human needs and the respective provisioning systems that deliver them.Scenario modeling by GRO24

20、suggests that adopting the decoupling strategy could lead to a world by 2060 with a global GDP of approximately 3%higher and a global Human Development Index of 7%higher compared to continuing our current trajectory.Implementing such measures could also lead to a 30%reduction in material use compare

21、d to continued historical trends.Additionally,greenhouse gas emissions could be reduced by over 80%from current levels by 2060,aligning with the goals of the Paris Agreement,alongside absolute reductions in energy use,agricultural land area,and other environmental pressures.Figure 2:IRPs decoupling

22、frameworkSource:Revised from IRP(2019b)Arkema has partnered with Swiss sportswear brand On to develop the first fully recyclable bio-based shoe called the Cyclon shoe.This shoe is crafted from Rilsan polyamide 11,a bio-based plastic derived from sustainable castor beans through Arkemas Pragati Susta

23、inable Castor Initiative.By using the same material for all components of the shoe,recycling becomes straightforward,as the entire shoe can be recycled in one piece.Arkema implements a circular business model for the Cyclon shoe,offering a subscription with a take-back scheme.Worn-out shoes are coll

24、ected and sent to Agiplast,an Arkema subsidiary specializing in high-performance plastic recycling,where they undergo recycling through the Virtucycle program.5Global Resources Outlook 2024:Implications for BusinessWhat does this Mean for BusinessUnmitigated material consumption on a planet with fin

25、ite resources is a medium-term business risk.Resource availability,resource use and extraction are directly linked to climate,nature and pollution hazards.Climate risk and nature risk is a business risk and investment risk.GROs analysis shows that many actors cause climate impacts throughout a value

26、 chain,and globally exposed value chains are directly affected by physical risks(e.g.extreme weather events)and transition risks(e.g.decline in consumer demand or ability to meet regulatory requirements).Investors increasingly scrutinize businesses for their exposure to risks,and customers are incre

27、asingly embracing sustainability as a buying factor.Competition for certain types of natural resources is growing,fuelling increasing pressure on already volatile supply chains across sectors and geographies.This means global supply chains are becoming less reliable and more volatile,exacerbated by

28、climate change,geopolitical disruptions and other factors.Resource decoupling needs to become the front and center of business growth strategies for the forward-oriented business community.It promises businesses to grow while minimizing their environmental footprint.By decoupling economic growth fro

29、m resource consumption,these businesses can enhance their competitiveness,reduce risks associated with resource scarcity and environmental degradation,and contribute to a more sustainable future.Compared to historical trends,it is possible to reduce resource use while growing the economy,reduce ineq

30、uality,improve well-being and reduce environmental impacts.GRO24s Sustainability Transition Scenario shows a path towards sustainable resource use and high-performing provisioning systems.Important to note that we would still be increasing global resource use from todays levels(albeit in a way that

31、minimizes environmental impact),as some regions need to consume more resources to meet human needs.Unilevers Home Care division,responsible for brands like Cif and Sunlight,has launched the Clean Future innovation program to revolutionize the development,manufacturing,and packaging of cleaning produ

32、cts.The program prioritizes applying circular economy principles to packaging and product formulations to significantly reduce carbon emissions.Traditionally,cleaning products contain surfactants,which are often made from non-renewable petrochemicals.However,Unilever has partnered with Evonik to int

33、roduce rhamnolipids,innovative biosurfactants produced through biotech methods like fermentation.These rhamnolipids are fully biodegradable and offer excellent foaming properties and cleaning performance.Collaborative efforts from researchers across divisions have led to the development of an indust

34、rial manufacturing process for these environmentally friendly biosurfactants.6Global Resources Outlook 2024:Implications for BusinessGlobal Resources Outlook 2024:Implications for Business6How Business Can ActBusinesses can harness the benefits of resource decoupling and circular economy practices t

35、o tackle climate and nature risks within their supply chains.By promoting resource efficiency among suppliers,companies can enhance resilience,mitigate risks,and boost brand value.Additionally,embracing circular business models unlocks new revenue streams and cost-saving opportunities,strengthening

36、competitive positioning and fostering foward-oriented partnerships.Businesses can operationalize decoupling regardless of their sector or ambition level by implementing the following long-term objectives:123Flattening the Curve of Future Demand:Adopt circular economy approaches to reduce unnecessary

37、 consumption,promote material reuse,and redesign products for maximum material value retention.Transitioning Towards Renewable Resources:Shift away from destructive extraction systems and non-renewable resources towards renewable and regenerative sources.Strengthen global trade and supply chains to

38、minimize supply risks and incentivize responsible resource use.Optimizing Resource-Intensive Systems:Target well-being and improve quality of life by optimizing resource-intensive systems that serve essential human needs,ensuring smart resource utilization.7Global Resources Outlook 2024:Implications

39、 for BusinessGlobal Resources Outlook 2024:Implications for Business7How Business Can Actadvocate for circular design incentives,and promote responsible resource practices.As regulations tighten,companies must enhance resource productivity and prepare for further policy interventions to manage trans

40、ition risks effectively.By co-shaping policy and creating the right enabling environment,businesses can incentivize finance towards sustainable resource use,signaling the necessity of redirecting capital towards sustainable practices.Once implemented,the Global Circularity Protocol for Business(GCP)

41、by WBCSD and UNEPs One Planet Network(OPN)will assist the business community in scaling circular business models.This should help address key points from the GRO24,including resource decoupling.Key Actions for Businesses:The short-term actions listed below are directly related to the above longer-te

42、rm objectives.The business community should consider implementing these actions as a first step to reducing their environmental impact,contributing to a healthier environment and improving well-being and quality of life for everyone.1.Incorporate decoupling into business strategy:Integrate resource-

43、related risks into business strategies to identify alternative sources,prioritize resource-efficient practices,and innovate sustainable solutions,securing long-term viability.2.Adopt circular and resource-efficient business models:Capture new value pools through product lifetime extensions,service o

44、fferings,and circular recommerce opportunities.Embrace producer ownership and industrial symbiosis to further advance customer experience and loyalty.3.Increase investment in renewable energy and regenerative agricultural practices.This can include installing solar panels or wind turbines at facilit

45、ies,sourcing raw materials from sustainable suppliers,and partnering with local farmers to implement regenerative farming techniques.4.Enhance supply chain transparency:Optimize strategic resource management by enhancing supply chain transparency and circular operations,capitalizing on material prod

46、uctivity gains and mitigating supply chain disruptions.5.Resource efficiency audits and retrofits:Businesses can assess their resource consumption(water,energy,materials)across their operations,and identify areas for improvement,focusing on processes with high resource usage.Based on the audit findi

47、ngs,businesses can invest in low-cost or moderate-cost retrofits to optimize resource use.Engaging with Policymakers:Businesses should actively engage with policymakers to shape the right enabling environment for sustainable resource use,Apple has set a very ambitious set of goals regarding its reso

48、urce strategy.They include using only recycled and renewable materials in products and packaging,enhancing material recovery,eliminating plastics in their packaging by 2025,reducing the water impacts in the manufacturing of products,and finally eliminating waste sent to landfills from corporate faci

49、lities and suppliers.Their 2022 Environmental Progress Report states that 20 percent of the material in their products came from recycled or renewable sources.The company is working hard to transition to 100 percent recycled cobalt,tin,gold,and rare earth elements in select components by 2025.Furthe

50、rmore,their product packaging contains only 4%plastic down from 21%in 2015.Apples Prineville,Reno,and Mesa data centers and 17 supplier facilities have been certified to the Alliance for Water Stewardship standard for leading water management practices.Finally,Apples corporate facilities waste diver

51、sion rate increased to 71%,mainly due to progress achieved at data centers.Launched In 2023 by WBCSD in collaboration with the One Planet Network,the GCP aims to become the go-to framework for companies to assess,measure,set science-based targets,report,and disclose progress on resource efficiency a

52、nd circularity information consistently and comparably.The initiative is a multi-year and multistakeholder process and is structured to address accountability and policy gaps currently impeding the scaling of circularity.It will result in a comprehensive Corporate Performance and Accountability syst

53、em(CPAS)for Circularity and lay the basis for a policy framework for circularity.8Global Resources Outlook 2024:Implications for BusinessThe Global Circularity Protocol for Business offers a framework to help you implement these actions.If you want to engage,reach out to Filipe Camao Garcia at WBCSD

54、.Be a leader in the transition to a sustainable future.Embrace resource decoupling today!Integrate decoupling into your business strategy.Adopt circular economy models:Focus on reuse,repair,and material efficiency.Invest in renewable resources and regenerative practices.Improve supply chain transpar

55、ency and optimize resource management.Conduct resource efficiency audits and implement cost-effective retrofits.Engage with policymakers:Advocate for policies that incentivize sustainable resource use.12 The current trajectory of resource consumption is unsustainable.Businesses face a medium-term ri

56、sk from resource scarcity and environmental degradation.The answer is clear:decouple economic growth from resource use.Resource decoupling is a win-win:Grow your business:Reduce environmental impact while maintaining or even increasing profitability.Reduce risks:Mitigate risks associated with resour

57、ce scarcity,climate change,and volatile supply chains.Enhance brand value:Appeal to sustainability-conscious consumers and investors.Contribute to a better future:Help create a world with a higher GDP,improved human well-being,and a significantly reduced environmental footprint.Call to ActionTake ac

58、tion now!9Global Resources Outlook 2024:Implications for BusinessGlobal Resources Outlook 2024:Implications for Business9About WBCSDThe World Business Council for Sustainable Development(WBCSD)is a global community of over 220 of the worlds leading businesses,representing a combined revenue of more

59、than USD$8.5 trillion and 19 million employees.Together,we transform the systems we work in to limit the impact of the climate crisis,restore nature and tackle inequality.We accelerate value chain transformation across key sectors and reshape the financial system to reward sustainable leadership and

60、 action through a lower cost of capital.Through the exchange of best practices,improving performance,accessing education,forming partnerships and shaping the policy agenda,we drive progress in businesses and sharpen the accountability of their performance.Follow us on X and LinkedInwww.wbcsd.orgCopy

61、right WBCSD,July 2024About SystemiqSystemiq,the system-change company,was founded in 2016 to drive the achievement of the Sustainable Development Goals and the Paris Agreement,by transforming markets and business models in five key systems:nature and food,materials and circularity,energy,urban areas

62、,and sustainable finance.A certified B Corp,Systemiq combines strategic advisory with high-impact,on-the-ground work,and partners with business,finance,policy-makers and civil society to deliver system change.Systemiq has offices in Brazil,France,Germany,Indonesia,the Netherlands,and the UK.Find out more at www.systemiq.earth9Geneva|Amsterdam|Chicago|London|New York City|Singapore|Wuhan City