100 CEOs Offer Climate Recommendations to G8 Leaders: Most Comprehensive Guidance Yet on Post-Kyoto Architecture

Mark Adams, Managing Director, Tel.: +41 (0)22 869 1212 – mark.adams@weforum.org

• Professor Klaus Schwab, Executive Chairman and Founder of the World Economic Forum, today delivers CEO recommendations on climate to Prime Minister Fukuda of Japan ahead of G8 summit
• 100 international CEOs now endorse climate statement urging action
• Endorsing companies represent at least 10% of global equities market
• For full details: www.weforum.org/climate. Download: CEO Statement, List of Endorsements

Tokyo, Japan, 20 June 2008 - Professor Klaus Schwab, Executive Chairman and Founder of the World Economic Forum, presented a detailed statement to Prime Minister Yasuo Fukuda of Japan on how best to manage climate change after the Kyoto Protocol expires in 2012 (pictured).

Professor Schwab made the presentation on behalf of the 100 international CEOs who have endorsed the “CEO Climate Policy Recommendations to G8 Leaders”, which is a groundbreaking statement that has taken 16 months and an international effort to prepare. In collaboration with the World Business Council for Sustainable Development (WBCSD) and the Pew Centre on Global Climate Change as a resource partner, the Forum convened discussions with over 500 business executives and climate experts from around the world during 2006 and 2007 to help the business community develop its ideas.

What is different?
• This is the most detailed, global and high-level set of business guidance yet on post-2012 architecture.
• The work has been produced through a specific process of public-private dialogue in cooperation with G8/G20 countries. It has created an unprecedented degree of consensus among developed and developing country business leaders.
 
What are they recommending?
• Governments to agree on a long-term goal and support to G8 leaders, both domestically and internationally, if they take the first step toward deep cuts.
  - “We urge governments to seek consensus on a long-term goal of at least halving global emissions against current levels by 2050.”
  - “We seek leadership from the G8 to agree to deep cuts by 2050.”
• A new geometry of international cooperation for the post-2012 architecture. Instead of just government-to-government, top-down emission reduction commitments (as in Kyoto), the CEO statement recommends a combination of top-down and bottom-up elements consisting of not only Annex 1 country emission reduction commitments but also:
  - Bottom-up carbon abatement strategy development with the private sector to inform medium targets and strategies
  - Explicit public-private financing instruments to spur new technology demonstration projects and uptake of low-carbon energy in developing countries
  - Sector arrangements
  - Policy and other commitments by major emerging markets that are enabled by each of the three preceding pieces

In short, this is a new, public-private vision of how to proceed on the future policy framework that for the first time places the private sector at the heart of its design and implementation. Although the Bali Road Map contains the seeds of these concepts, this is the most practical vision yet presented by any group (government, business or civil society) of how the Bali vision can be translated into reality.

Who are the 100 CEOs?
• They are a diverse and powerful group
• Combined, their companies represent over 10% of the total global equities market
• 80:20 ratio headquartered companies of developed to developing countries
• All regions of the world have companies that have endorsed the statement, including Australia, Hong Kong, Europe, India, Latin America, Japan, South-East Asia, Sub-Saharan Africa and the US.
• Represent leading brands from all sectors of the global economy: aviation, travel and tourism; automotives, chemicals; engineering and construction; energy; food and beverage; retail and consumer goods; financial services; IT and telecoms; logistics and transport; media; mining and metals; paper and pulp; and professional services.

CEO quotes

“We all believe that these recommendations, prepared and signed by CEOs from many of the world's largest companies, will serve as guidelines for G8 leaders and help them build a new model to tackle effectively the world's environmental and energy issues.”
Oleg V. Deripaska, Chairman, Supervisory Board, Basic Element Company, Russian Federation

“The Gleneagles CEO statement provides an essential framework for a market-based climate policy.”
Josef Ackermann, Chairman of the Management Board and the Group Executive Committee, Deutsche Bank, Germany

“I fully endorse the Gleneagles CEO statement and look forward to its role in informing an effective global strategy to combat climate change.”
Phirwa Jacob Maroga, Chief Executive, Eskom Holdings, South Africa

“I am very happy to see the recommendations. These are eminently sensible solutions. The document aptly summarizes the issues and at the same time lays down a workable policy prescription.”
Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries, India

“It’s good to see that so many companies have come together to deliver a solid statement to the G-8 leaders and are ready to step up to their responsibilities.”
Peter Bakker, Chief Executive Officer, TNT, Netherlands

“The Gleneagles CEO statement clearly shows how such a framework can send the right signals and allow business and competition to transform the global economy.”
Lars G. Josefsson, President and Chief Executive Officer, Vattenfall, Sweden

“We know we must address climate change. We may not have sorted out every detail, but we are willing to take a leadership position and embrace open dialogue ... that will get us all to our common goals of protecting our world for future generations.”
Alain J.P. Belda, Chairman of the Board, Alcoa, USA

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