The world has heralded the birth of the seven billionth person. By 2050, we predict a world of nine billion people, vying for the planet’s limited resources. In a stable and peaceful country of 4.5 million, is this really relevant to us?

New Zealanders are in a very privileged position. We have an abundance of natural resources. Our agricultural base is strong. As a place to invest, our sovereign risk is low. But how robust is our economy longer term? What will our place in a world of nine billion be? How do we balance our desire for short term gains against our longer term existence, profitability and growth?

To succeed and seize future opportunities, business as usual will not be an option. We will be forced to adapt our standards to align with the global response to our changing planet. We are an island nation reliant on exports and imports. We can’t, and don’t, live in a bubble: we will be answerable to global stakeholders.

In 2010 the World Business Council for Sustainable Development (WBCSD) worked with 29 leading companies to develop a vision for what the world could look like in 2050. This culminated in the report Vision 2050: The new agenda for business. As Samuel DiPiazza, the former CEO and chairman of PricewaterhouseCoopers (PwC) said, “The radical changes highlighted in Vision 2050 demand a different perspective from business leaders, requiring them to rethink how they operate to stay on track for a sustainable future. This includes a radical transformation of global markets, governance and infrastructure and a rethinking of our ideas of growth and progress.”

Key pathways of particular relevance to New Zealand include doubling agricultural output without increasing the amount of land or water used, increasing yields from forests, incorporating the cost of carbon and water, halving carbon emissions worldwide and delivering a four to tenfold improvement in the use of resources and materials.
Many of us see these pathways as a cost rather than an opportunity.

The answers are not black and white. It’s not just a choice between the status quo or an outright jump to a clean economy, it’s about balance and positioning. Our access to low carbon energy and water, our agricultural base and our people give us an outstanding platform to meet these future global needs.

I am fascinated to track how savvy businesses in New Zealand and globally are positioning themselves for sustainable success, balancing their short and long term objectives and accurately pricing the cost of longer term investment.

Kiwi companies have been successful in doing this: Lanzatech has created a new source fuel for producing ethanol and chemicals, using waste gas from steel manufacturing. New Zealand Merino has transformed the wool industry through value added products. Air New Zealand has focused on a sustainable tourist industry,
trialling biofuels which have been shown to save 1.4 tonnes of fuel on a 12 hour long haul journey. Others lead by example by improving use of resources and there are those such as Ziptrek that serve the outdoor pursuits industry while leaving little environmental footprint.

Unfortunately, many New Zealand businesses have yet to recognise the benefits of the longer term pathways to sustainable success identified by the WBCSD.

The 2011 Global 500 Carbon Disclosure Project report found 68% of the leading global companies have climate change at the heart of their business strategies, compared to 48% in 2010, and there is a direct correlation with these companies having higher stock market performance over time. Globally, the report found that 59% of emission reduction activities delivered a payback in three years or fewer. Despite these examples the New Zealand participation in the project remains low. Sadly, parts of our media are also still hung up on the debate on whether climate change is real rather than truly informing our markets of the opportunities which can come from responding to global stakeholders.

Businesses will lead the transformational changes required for the world to function in 2050. They will create cost-effective solutions the planet needs.

These businesses will reap the rewards. The question for us is whether New Zealand businesses will take advantage of our abundant natural resources and people to sustain their existence, increase profitability and take our place in the 2050 global economy.

The Sustainable 60 entrants get it. They recognise that to be in business for the long haul they need a sustainable business model.

Julia Hoare is a partner at PwC