Bending the trend: the power of businesses
The current consumption of resources is “fueling the third planetary crisis,” according to the Global Resources Outlook report by the United Nations. A report by the WBCSD and Sistemiq examines the implications of this consumption for businesses and how they hold the key to reversing the situation.
The use of materials has more than tripled in the past fifty years. If the current trend does not change, by 2060 we will be consuming 60% more resources — biomass, fossil fuels, metals, and non-metallic minerals — and 50% more primary energy than in 2020, with emissions having increased by 83%. These are the projections of the Global Resources Outlook report from the United Nations Environment Programme (UNEP), which was made public on 1 March 2024 during the sixth United Nations Environment Assembly. As the United Nations report concludes, these figures are “fueling the third planetary crisis.” A few months after its publication, the World Business Council for Sustainable Development (WBCSD) and the company Sistemiq presented the Global Resources Outlook 2024: Implications for Business report, which summarises the key points from the United Nations report and outlines the implications for businesses and what they can do to «bend the trend».
The current trajectory of resource consumption is “unsustainable,” concludes the WBCSD and Sistemiq report. Uncontrolled consumption of materials on a planet with finite resources poses a medium-term risk for businesses, as they face climate, environmental, and pollution-related hazards, and because growing competition for certain types of natural resources is increasing pressure on volatile supply chains across all sectors and regions. The response to this issue is clear: “Decoupling resource consumption from economic activity must be at the heart of every business growth strategy,” the study asserts.
The key is to “decouple resource consumption from economic activity,” which “must be at the heart of every business growth strategy.”
The benefits of doing so, according to the authors, include growing the business while reducing environmental impact; mitigating risks associated with resource scarcity, climate change, and volatile supply chains; enhancing brand value and attracting more conscious consumers and investors; and contributing to a better future by creating a world with greater human well-being and a smaller environmental footprint.
How to decouple resource consumption from economic growth?
The WBCSD and Sistemiq argue that a company can achieve this by:
- Integrating this decoupling into its business strategy.
- Adopting circular economy models focused on reuse, repair, and material efficiency.
- Investing in renewable resources and regenerative practices.
- Improving supply chain transparency and optimising resource management.
- Conducting resource efficiency audits and implementing cost-effective improvements.
- Engaging policymakers to advocate for policies that incentivise sustainable resource use.
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