Open Access

In this second brochure, WISIONS aims to focus on the significance of a combined approach to water and energy and to present a number of projects from around the globe that have been successfully implemented, with the intention of further promoting the particular approaches used by these projects. Using a key number of internationally accepted criteria, the main consideration for selection of the projects was energy and resource efficiency, but social aspects such as the inclusion of local population were also of relevance. The assessment of the projects also included the consideration of regional factors acknowledging different needs and potentials.

Resource flows constitute the materials basis of the economy. At the same time, they carry and induce an environmental burden associated with resource extraction and the subsequent material flows and stocks, which finally end up as waste and emissions. A reduction of this material throughput and the related impacts would require a reduction of resource inputs. And breaking the link between resource consumption and economicgrowth would require an increase in resource productivity. Material flow analysis (MFA) can be used to quantify resource flows and indicate resource productivity. In this article, we study the available empirical evidence on the actual (de-)linkage of material resource use and economic growth. We compare resource use with respect to total material requirement (TMR) and direct material input (DMI) for 11 and 26 countries, respectively, and the European Union (EU-15). The dynamics of TMR, as well as of the main components are analysed in relation to economic growth in order to show whether there is a decoupling (relative or absolute) from GDP and a change of the metabolic structure in the course of economicdevelopment. DMI/cap so far only decoupled from GDP/cap in relative terms; that is, in most countries, it reached a rather constant level but - with the exception of Czech Republic - showed no absolute decline yet. TMR/cap was reduced in two high-income countries and one low-income country due to political influence. Changes in TMR were more influenced by hidden flows (HF) than by DMI. We analyse the dynamics of the structure and composition of TMR in the course of economic development. In general, the economic development of industrial countries was accompanied by a shift from domestic to foreign resource extraction. Different relations can be discovered for the share of biomass, fossil fuel resources, construction resources and metals and industrial minerals.

The brochure focuses on the significance of the construction sector and aim to collect world-wide innovative project approaches that have already been implemented to promote the concepts. Using a key number of internationally accepted criteria, the main considerations have been the energy efficiency and in a broad sense also the resource efficiency of the projects.

This paper examines the connection between globalisation, with its growth in world trade links, and certain ecological effects especially concerning "North-South" relations. Although world trade in the mid-nineties was significantly uncoupled from growth trends in the world economy, so that since then it has increased nearly three times faster than the global GDP, certain indicators of energy use and CO2 emissions have not developed proportionately to world trade; globalisation evidently does not lead to a situation where pressures on the environment are increasing to the same extent worldwide. This de-linking may, however, result in the kind of shifts that we examine here with reference to the material trade flows of the European Union. It will be shown that, in the course of globalisation, the countries of the EU have increasingly shifted environmental burdens on to the countries of the South, especially in the form of ecological rucksacks of imported raw materials, while at the same time reducing the pressure on their own domestic environment by extracting fewer material resources. Furthermore, goods whose production places intensive pressure on the environment (industrial emissions into the atmosphere and water, heavy metal emissions, etc.) have been increasingly imported from newly industrializing or developing countries. The greater covering of material requirements from foreign resources has served not so much the EU's internal consumption as its own production of export goods; this shows that the EU has an increasing share in the resource requirement of other economies. The paper concludes that it is absolutely necessary to consider the international dimension in any strategy for more productive use of resources in industrial countries. In the long term, the EU's resource use should also be reduced in absolute terms. This will also be necessary in order to reduce the pressure on the environment due to imports and exports.

An increasing number of publications about theoretical approaches and new findings illustrate the relevance of the topic environmental risk assessment. The actual discussion about high oil prices is not incorporated under this headline; but it should be, as natural resource scarcity is a crucial economic factor. In practical experience, more and more banks, insurance companies as well as investors realize that there are certain areas with a high correlation between sustainable development and corporate success, corporate risk exposure and corporate performance. In this discussion one of the most obvious topics are risks related to climate change. According to the findings of surveys evaluated in this paper climate change starts to affect economic development and companies' performance in various ways. Over the next decade, economic losses due to climate change are estimated by US$ 150 billion per year. As result world's business leaders have described climate change as the biggest challenge of the 21st century. Hence, the incorporation of climate change as a risk factor is essential, but risks related to climate change feature a severe issue of complex structure and uncertainty; traditional risk assessment tools appear in the light of not being able to either reflect the multifaceted system nor provide sufficient outcomes. Environmental risk assessments in general so far have mainly emphasized - if at all - on actual and possible impacts of the release of materials or emissions (external effects). But an overall sustainable risk assessment has also to take into account the risks related to the inflow of materials. The main reason for neglecting the inflow risks from an environmental perspective can be seen in the fact that these risks seem to be less tangible and more uncertain. Nevertheless, in a world where economic development and the use of natural resources is not uncoupled yet, a steadily increasing economic power will result in a continually rising extraction of resources. As all resources are limited, the risk of scarcity will rise; and the example of water illustrates that it already exists. Indeed, scarcity is not tangible for all kind of resources from a present point of view. Hence, a specified analysis is needed considering different market and supply conditions. A comprehensive analysis of environmental risks needs to encompass risks affecting the output as well as the input side of a value chain. This paper enlarges the discussion on environmental risk assessments upon the input dimension using the example of carbon risks. Firstly, carbon risks are defined as risks related to climate change at the corporate level with a focus on the input as well as the output dimension. Secondly, an analysis of the current discussion on the topic of carbon risk evaluates the status quo of scientific work in this field. Thirdly, in terms of developing a practically oriented tool, the Value-at-Risk approach and it's application to measure input oriented carbon risks are scrutinized. The results discuss how future volatility and market prices can be utilized to describe the uncertainty resulting from markets acknowledging and pricing oil scarcity as a risk factor. Finally recommendations with a focus on strategic management decisions and financial performance analysis are given and further research opportunities are drawn. The conclusion is; once markets have acknowledged the depletion mid-point as a measure of oil scarcity, natural scarcity will result in a significant higher Value-at-Risk. The Value-at-Risk of one barrel of crude oil could then be as high as US$ 15.5 in the short term and even US$ 17.2 in the long term. The scope of this paper is neither intended to predict one likely development nor to demonstrate how this tool can actually work in terms of forecasting single companies' performance. But in order to point the way ahead, this paper provides scenarios for potential future developments and sets a frame for risk assessments due to oil scarcity.

This book presents important new research on applied eco-efficiency concepts throughout Europe. The aim of eco-efficiency is to achieve market-based measures of environmental protection, in order to enhance the prospects for sustainable development and achieve positive economic and ecological benefits. The distinguished authors discuss a number of themes surrounding eco-efficiency including the necessary conditions for technological dissemination and ecological modernization, and the role of government in enabling businesses and society to participate actively in this process. In particular, they highlight the application of existing European-based policies concerning material flows and energy. The authors also investigate some new concepts of sustainable development and provide a useful introduction to material flows analysis. In further chapters they study the emerging regulatory policies for eco-efficiency, and examine the issues of sustainable business and consumption strategies.

This article proposes a policy framework for analysing corporate governance toward sustainable development. The aim is to set up a framework for analysing market evolution toward sustainability. In the first section, the paper briefly refers to recent theories about both market and government failures that express scepticism about the way that framework conditions for market actors are set. For this reason, multi-layered governance structures seem advantageous if new solutions are to be developed in policy areas concerned with long-term change and stepwise internalisation of externalities. The paper introduces the principle of regulated self-regulation. With regard to corporate actors| interests, it presents recent insights from theories about the knowledge-based firm, where the creation of new knowledge is based on the absorption of societal views. The result is greater scope for the endogenous internalisation of externalities, which leads to a variety of new and different corporate strategies. Because governance has to set incentives for quite a diverse set of actors in their daily operations, the paper finally discusses innovation-inducing regulation. In both areas, regulated self-regulation and innovation-inducing regulation, corporate and political governance co-evolve. The paper concludes that these co-evolutionary mechanisms may assume some of the stabilising and orientating functions previously exercised by framing activities of the state. In such a view, the government's main function is to facilitate learning processes, thus departing from the state's function as known from welfare economics.

From 10 to 14 September 2003, the Ministerial Conference of the World Trade Organization (WTO) negotiated over a further liberalization of world trade. A lot was at stake there for the environment. It is true that in the current round of negotiations the Doha Declaration has agreed certain points relating to the environment. But this should not conceal the fact that the WTO is still a long way from taking due account of ecological aspects in its policies. The present paper begins by analyzing the discussion on environmental issues within the WTO, which for more than ten years has been conducted mainly in its Committee on Trade and Environment. It is shown that many environmental effects of trade liberalization have not been discussed at all, that conflicts of interest among WTO member-states prevent any deep discussion, and that an ecological reform of the WTO has up to now stood no chance. This analysis then forms the background for a twofold strategy. First, arguments are presented as to why the WTO, given its environmental policy deficits, should afford sufficient scope to institutions actively concerned with environmental policy. The conflictual relationship between Multilateral Environmental Agreements and the WTO is examined at this point. A distinction is drawn between minor and potentially critical conflicts, and it is shown how a limitation of the competence of the WTO's Dispute Settlement Body, together with cooperative political-legal processes to resolve conflicts between affected institutions, might offer a solution and lead to greater institutional equity in the global political arena. Second, the paper discusses how ecological aspects might be integrated step by step into the WTO. After a detailed examination of the potential and limits of instruments like impact assessments, it makes a number of recommendations for their further development. Finally, it considers how impact assessments might be integrated into the WTO's institutional structures, so that ecological aspects can be systematically input into policy-making processes and better public participation in WTO policy be ensured. In this connection, the paper discusses both the integration of impact assessments into the WTO's Trade Policy Review Mechanism and the creation of a new Strategic Impact Assessment Body within the WTO.

Transnational corporations' (TNCs) economic operations cover numerous countries and can be diverted between several continents. These units have reached a level of significance, having not only economic, but also social and environmental implications. This justifies that they shall be treated separately as a social phenomenon, when considering strategies for the development towards sustainability. This paper presents the concept of Responsible Corporate Governance (RCG), as a strategy to "govern" TNCs. RCG is suggested as a stakeholder based policy instrument, which aims at allocating responsibilities to societal actors aiming at corporate accountability. RCG recognises that the process of societal change is strongly based on what can be called as bottom up-processes. Learning processes take place through the interaction of the different societal members, which eventually leads to macro changes. Therefore, governing TNCs towards sustainability improvements is considered to be a collective process including all stakeholders. Firstly, the paper places the concept of RCG in the ongoing debate of political modernization based on the fact that society develops overtime and the political system must correspondingly modernize. In this context, political overload developed as a consequence of increased resource interdependencies is explained and as a resolution, network approach is discussed. Secondly, demands on the orientation of the TNCs in terms of accountability and innovative action are brought forward. Here, the paper also lists down corporate elements (stakeholder empowered corporate governance, management and performance evaluation systems, transparency enhancement and accountability verification), which need to be in place to attain an accountable orientation in the society. Following, using an analytical framework, the orientation and capabilities of each societal actor (environmental non-governmental organisations, financial institutions, intergovernmental organisations) to affect improvements in the corporate responsibility elements are investigated and recommendations for their effective orientation are listed.