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Environmental Sustainability Index PDF
Environmental Sustainability Index PDF
Environmental Sustainability Index PDF
June 2019
INTRODUCTION
ENVIRONMENTAL SUSTAINABILITY INDEX
COUNTRY PERFORMANCE
ENERGY
WATER
POLLUTION
ENVIRONMENTAL RESILIENCE
FOREST AND BIODIVERSITY
FOOD AND AGRICULTURE
RECOMMENDATIONS
ANNEXE
INTRODUCTION
Scope
▪ This report contains the Environmental Sustainability Index, a tool to evaluate Disclaimer
the environmental sustainability performance of 97 markets, which in 2018 Much of the information in this
briefing is of a statistical nature and,
represented 89.1% of the world’s population and 97.2% of global GDP. while every attempt has been made
Venezuela is excluded from this study due to its high market volatility. to ensure accuracy and reliability,
Euromonitor International cannot be
▪ The index aggregates indicators in six key pillars that are at the core of held responsible for omissions or
errors.
sustainable development and provides an easy-to-understand country Figures in tables and analyses are
“scoring” system to quickly identify country-specific sustainability risks and calculated from unrounded data and
may not sum. Analyses found in the
opportunities, helping businesses to become more sustainable in the markets briefings may not totally reflect the
where they operate or plan to expand into. companies’ opinions, reader
discretion is advised.
▪ To ensure as much cross-country comparability as possible, the index is based
either on per capita terms, or per total land area. Total GDP is expressed in US Environmental pressures and
consumer demand are set to
dollar terms at a fixed 2018 exchange rate.
reshape business models and
operations with a revolution of
product technologies and
services. This report introduces
Euromonitor’s Environmental
Sustainability Index, which
ranks 97 markets – which in
2018 represented 89.1% of the
world’s population and 97.2% of
global GDP – highlighting
country-specific risks and
opportunities in the
sustainability space.
Key findings
Why environmental With economies heavily dependent on natural resources for their operations and more
sustainability? stringent legislation coming into place, the protection of natural resources and the
transition towards more sustainable production and consumption models has become a
strategic imperative for corporate survival and success.
While environmental shifts and pressures pose substantial operational risks and
challenges to businesses, they also open up exciting opportunities to make significant
changes in resources’ efficiency, renewable energy and water solutions, and ultimately
grow the bottom line, contributing to accelerating the transition to achieve a more
sustainable future, making the 2030 UN agenda a reality.
Sustainability key to Although sustainability is not a new concept, global attention to this topic has soared,
corporate success especially after the launch of the UN Sustainability Development Goals in 2015, a
global framework to guide the transition towards a more sustainable future by 2030.
As investors, stakeholders and consumers are starting to demand accountability for
environmental impacts, corporations are increasingly seeing the value of putting
sustainability at the core of their business strategies with a growing number of
“purpose-driven” businesses, as opposed to traditional “profit-driven” businesses
across all industries.
An index for strategic Every industry has its own environmental challenges and opportunities depending on
sustainability the markets where they source, manufacture and sell their products. The
planning Environmental Sustainability Index provides a multi-dimensional framework that can be
used by businesses and governments to make informed decisions regarding their
sustainability strategies and programmes.
Growth opportunities
Economic profit
✓ New markets ✓ Saving costs
✓ Increase ✓ Investors’ pressures
competitiveness ✓ Business value
✓ Product innovation
▪ The environmental sustainability of a country is critical for businesses due to their reliance on natural
capital for their operations and success. However, the lack of universal definition and metrics for
sustainability makes it difficult for companies to plan their sustainability strategy, and benchmark their
performance across different markets.
▪ In 2015 the United Nations launched its Sustainable Development Goals as a global framework to achieve
sustainable development by 2030, with the proliferation of businesses’ voluntary commitments to support
the achievement of these goals. Eight goals (highlighted in grey) are related to environmental sustainability
and directly connected to Euromonitor’s Natural Resources data on energy, pollution, water, natural
disasters, climate change, forest and biodiversity, and agriculture.
▪ Euromonitor’s Environmental Sustainability Index has been built using this data. The index can help
businesses to identify countries to implement more tailored sustainability strategies and enhance
their environmental resilience.
▪ Achieving the 2030 Agenda for Sustainable Development, using the 17 Sustainable Development Goals
(SDGs), is a commitment made by countries and companies to tackle complex global challenges and
pressures.
▪ The Environmental Sustainability Index breaks down into six underlying pillars – energy, water, pollution,
forest & biodiversity, environmental resilience, and food – with equal relevance and weighting (16.7%).
▪ Each of these core pillars aggregate environmental indicators in different categories with their
corresponding weighting based on their relevance to each pillar. Further details about the data and
calculations can be found in the Appendix.
Availability,
20%
Cross-country comparability
Indicator selection
The following analysis has been performed for each of the six pillars:
▪ Map with the rankings for each ▪ Heat map containing all ▪ Pillar’s country ranking vs
of the six pillars: energy, water, indicator rankings for the top 10 country’s GDP per capita (pp).
pollution, forest & biodiversity, and bottom 10 performing ▪ Countries ranking bad in any
environmental resilience and countries. The same colour pillar offer opportunities for
food & agriculture. coding as the previous map is companies to contribute towards
▪ Countries with the best displayed. the SDGs related to that pillar.
performance are highlighted in ▪ The columns in the heat map ▪ Countries with high GDP ranking
dark blue, while countries with show all the indicators included good offer opportunities – to test
the worst performance are in the corresponding categories, sustainable solutions – but also
coloured in dark orange. that are aggregated in the risks – reputational and legal – if
specific pillar. not investing in sustainable
innovation.
Energy pillar
Note: Indicators were calculated using Euromonitor data from official sources summarised in the annexe.
The acronym (pp) means per person.
Water pillar
Water
Efficiency
Equity 29% Availability 29% Security 29%
13%
Water Productivity
to Clean Drinking Water
Renewable Water 50%
50%
Resources (pp), 70%
100%
% Population with Access
to Improved Sanitation Total Precipitation
50% Water Withdrawal (pp), 50%
30%
Note: Indicators were calculated using Euromonitor data from official sources summarised in the annexe.
The acronym (pp) means per person.
Water Ranking, 97 Countries, 2018 ▪ Despite being essential for human life and business
operations, water is an increasingly scarce resource
unequally distributed across the globe.
▪ While the richest countries in water resources per
inhabitant score high in the water pillar, emerging
and developing countries in Asia Pacific and the
Middle East and Africa with low access to water
supply and/or high levels of water stress have the
worst performance in water indicators.
▪ The low ranking of some of the biggest economies
(i.e. China) and some of the fastest growing
economies (i.e. India) presents risk, but also offers
opportunities to catalyse public and private
investment towards SDG 6 dedicated to ensuring the
availability and sustainable management of water
and sanitation.
1 97 ▪ Among these opportunities are substantially
increasing water efficiency across all sectors, and
Note: The
Note: The Water
Water pillar
pillar ranks
ranks the
the performance
performance ofof 97
97 markets
markets using
using seven
seven decreasing products’ water footprint through
indicators
indicators condensed
condensed into
into four
four categories:
categories: Equity,
Equity, Availability,
Availability, Security
Security and
and
Efficiency.
Efficiency.
sustainable innovation, along with helping
consumers to gain improved access to clean and
safe drinking water and sanitation through a
company’s Corporate Social Responsibility.
Equity Security Availability Efficiency ▪ The three countries with the highest score in
Country Access to Access to
Water
Renewable renewable water resources, Canada, Norway
ranking Improved improved Water Total Water Water
Drinking Sanitary Stress Precipitation
Withdrawal,
Resources, Productivity and New Zealand are at the top of the table.
pp
Water Facilities pp
▪ With one of the lowest per capita water use
10 top countries
1. Canada 31 14 14 49 12 1 34
levels, and per capita renewable resources,
2. Norway 1 30 9 29 37 2 11 Singapore, is the most water productive
3. New Zealand 1 1 18 31 11 3 41
4. Chile 44 19 36 38 1 7 84 among the 97 countries. The city state is at
5. Paraguay 41 56 7 16 53 5 66 the forefront of wastewater recycling and
6. Singapore 1 1 81 9 95 91 1
7. Uruguay 30 41 25 33 10 8 64 vertical farming technologies that require
8. Costa Rica 54 49 24 3 44 17 53 less water than traditional farming.
9. Malaysia 49 44 23 1 56 23 45
10. Colombia 76 70 3 18 65 9 48 ▪ Countries in the Middle East and Africa with
10 bottom countries poor water availability and equity are among
88. Saudi Arabia 59 1 95 91 26 94 43 the 10 worst performers in the water pillar.
89. Côte d'Ivoire 88 95 20 22 92 56 49
90. Angola 97 87 3 30 97 49 13 ▪ With low water availability and security,
91. Ghana 78 97 20 27 96 68 25
92. Nigeria 93 94 39 28 90 75 44
Kuwait and the UAE are among the bottom
93. Kenya 94 93 51 26 91 86 50 three in the table. Despite their high water
94. Ethiopia 95 92 42 40 93 80 71
95. UAE 36 34 96 92 47 96 17 productivity and relatively high water equity,
96. Tanzania 96 96 43 24 89 71 79 these countries are highly dependent on
97. Kuwait 46 1 97 93 70 97 10
increasingly expensive desalinization
1 97 technologies. In these countries, more
Note: The Water pillar ranks the performance of 97 markets using seven indicators sustainable use of water is essential to meet
condensed into four categories: Equity, Availability, Security and Efficiency. The acronym the rising water demand of a growing
(pp) means per person. Indicators are expressed either on a per capita basis, or per total
land area.
population with high level of urbanisation.
Worst
▪ The unsustainable or inefficient use of water in
Best
performers performers countries with high vulnerability to climate change
such as Australia and the USA – ranking 42nd and 53rd
in water security – poses a risk to agribusinesses
Note: The Water pillar ranks the performance of 97 markets using seven highly dependent on water for their operations.
indicators condensed into four categories: Equity, Availability, Security and
Efficiency. Indicators are expressed either on a per capita basis, or per total Investments in smart farming and agriculture have the
land area. potential to minimise these risks.
Pollution pillar
Pollution
Water
Air quality 50% Land quality 40% quality
10%
Fertilizer Consumption
CO2 Emissions from Fossil Fuels (pp) Municipal Waste Generation (pp),
50% 50%
(per km2)
100%
PM 10 Emissions
10%
CO2 Emissions per Unit of Output Municipal Waste Intensity (per Km2)
40% 50%
Note: Indicators were calculated using Euromonitor Data from official sources summarised in the annexe.
The acronym (pp) means per person.
Pollution Ranking, 97 Countries, 2018 ▪ Using pollution indicators on a per capita basis, a
number of countries rank low in the pollution pillar,
including small countries with energy-intensive
industries – such as Qatar (95th) and Bahrain (96th) –
some of the largest economies – such as the USA (91st),
Japan (81st) or Germany (82nd) – and countries with
significant fossil fuel resources – such as Canada (90th),
Russia (85th), UAE (94th), and Kuwait (93rd).
▪ Australia, the world’s fourth-largest exporter of mineral
fuels, oils, distillation products in 2018, is also among
the worst performers, ranking 93rd.
▪ While India is the third-largest emitter of CO2 emissions
from fossil fuels, in per capita terms, the country drops
to 78th position. With lower penetration of renewable
energy, developing nations such as India, that look
significantly less polluting on a per capita basis, might
1 97 face challenges to achieving national emissions targets.
▪ The low ranking of some of the major economies and
the challenges that fast-developing countries face to
Note: The Pollution pillar ranks the performance of 97 markets using six shift towards a low-carbon economy, offer opportunities
indicators condensed into three categories: Air, Water and Land.
for corporate investment in low-carbon projects that
align with SDG 13 “Climate action”, and initiatives that
tackle plastic pollution supporting SDG 14 “life below
water”.
Environmental Resilience
Global
Environmental Risk 50%
Warming 50%
Temperature
World Risk Index Growth,
100% 2000-2017,
100%
Note: Indicators were calculated using Euromonitor data from official sources summarised in the
annexe.
Environmental Resilience Ranking, 97 ▪ Countries in the Northern Hemisphere are less prone
Countries, 2018 to natural disasters and tend to score better in the
Environmental Resilience pillar, while countries in
South-east Asia, Central America, and Africa, with
increasing frequency and intensity of natural disasters
– such as drought, floods and storms – are the worst
performers.
▪ The low ranking of Japan, one of the biggest
economies, along with the poor performance of some
of the fastest growing major economies in the world
(i.e. China and India), presents risk, but also offers
opportunities for corporate investment in some of the
SDGs such as SDG1 (no poverty), SDG10 (reduced
inequality), and SDG13 (climate action).
▪ These investments offer opportunities for businesses
to stay ahead of environmental legislation, and to
reduce their exposure and vulnerability to climate-
1 97 related extreme events, building more resilient supply
chains and infrastructure.
Note: The Environmental Resilience pillar ranks the performance of 97 ▪ Governments have the opportunity to raise
markets using two indicators condensed into two categories: Environmental awareness and support action on climate adaptation
Risk and Global Warming.
and mitigation, integrating climate change measures
into policies and regulations
Note: Indicators were calculated using Euromonitor data from official sources summarised in the annexe.
Forest & Biodiversity Ranking, 97 Countries, ▪ Although European countries score the highest in the
2018 forest and biodiversity pillar, the EU has recently been
accused of backing forest biomass as carbon neutral
renewable energy, promoting burning forest wood for
bioenergy. With forests acting as carbon sinks, the new
Renewable Energy EU Directive, has the potential to
negatively impact global warming and halt resilience and
adaptive capacities to climate-related natural disasters.
▪ Although Nigeria, followed by three Asian countries
(Pakistan, India and Indonesia) show the worst scores in
forest and biodiversity, there are a number of countries
across different regions ranking low in this pillar,
including Argentina (93rd), El Salvador (92nd), Mexico
(91st) , USA (82nd), South Africa (90th), Iraq (89th) and
Qatar (86th).
▪ The low ranking of some of the fastest-growing major
economies in the world (i.e. India) could be cause for
concern for businesses, but also offers opportunities for
1 97 corporate investment in sustainable forest management,
contributing to the global SDG 12, which aims to
promote responsible consumption and production, and
Note: The Forest & Biodiversity pillar ranks the performance of 97 the global SGD 15. Target 15.2 aims to promote the
markets using four indicators condensed into two categories: implementation of sustainable forest management, halt
Availability and Security.
deforestation, and restore degraded forests.
Note: Indicators were calculated using Euromonitor data from official sources summarized in the annexe.
Food & Agriculture Ranking, 97 Countries, 2018 ▪ Australia, Singapore, and South Korea score the
highest in the food and agriculture pillar, while
Nigeria, Ukraine and Egypt are at the bottom of
the table.
▪ The increased occurrence of natural disasters,
along with growing water scarcity, have the
potential to significantly reduce food availability
and security in countries with poor (i.e. Japan or
Indonesia) or relatively poor environmental
resilience (i.e. Australia or China), that currently
perform relatively well in the food and agricultural
pillar.
▪ There are opportunities for corporate investment
to support the achievement of the global SDG 2,
aiming to end hunger, promote sustainable
agriculture, and achieve food security and
1 97 improved nutrition.
▪ Among these opportunities are the development
of smart farming and agricultural technologies that
Note: The Food and Agriculture pillar ranks the performance of 97
markets using six indicators condensed into three categories: increase crop yields, along with innovation in
Availability, Security and Health. climate-resilient seed varieties that can help
farmers to better adapt to climate change to
ensure future global sustainable food supply.
To achieve the SDGs, businesses needs to rethink the way they do things. However,
translating this global framework into action can be challenging, especially for
multinational companies operating in different markets.
Using the Environmental Sustainability Index to evaluate potential risks and opportunities
across several markets can help companies to grow revenue, increase consumer trust,
understand, anticipate and react to regulatory changes and consumer attitudes, while
also gaining competitive advantage.
Understanding where the greatest needs and most impactful investment opportunities lie
across the six core pillars is vital to prioritising sustainability investments. While countries with
poor performance in any of the pillars offer opportunities for business to contribute towards
certain SDGs, companies operating in countries with good performance are at risk of losing
consumer confidence and lagging behind competitors if not investing in sustainability
strategies.
Metrics Metrics
Population with Access to Electricity: Euromonitor International from World Bank Fertilizer Consumption: Euromonitor International from UN Food and Agriculture
Organisation (FAOSTAT)
Population with Access to Non-solid fuel: Euromonitor International from World Bank
Municipal Waste: World Bank group
Imports (cif) of Mineral Fuels, Oils, Distillation Products: Euromonitor International
from United Nations (UN), International Merchandise Trade Statistics World Risk Index: Euromonitor International from UNU-EHS
Electricity Output: Euromonitor International from International Energy Association Mean Temperature: Euromonitor International from NOAA NCEI
(IEA)
Marine and Terrestrial Protected Areas: Euromonitor International from Millennium
Final Consumption of Energy: Euromonitor International from International Energy Development Goals Indicators Database at UN
Association (IEA)
Threatened Fish, Mammal and Bird Species: Euromonitor International from World
Total Renewable energy capacity: World Energy Council Resources Institute (WRI)
Electricity output from fossil fuels: Euromonitor International from International Forest Area: Euromonitor International from UN Food and Agriculture Organisation
Energy Association (IEA) (FAOSTAT)
Energy efficiency: Euromonitor International from International Energy Association Consumers Expenditure on Food: Euromonitor International from national
(IEA) statistics/Eurostat/UN/OECD
Water Stress: Euromonitor International from UN AQUASTAT Agricultural Land: Euromonitor International from UN Food and Agriculture
Total Precipitation: Euromonitor International from NOAA NCEI Organisation (FAOSTAT)
Population with Access to Improved Drinking Water Source: Euromonitor Imports (cif) of Foodstuffs, HS Classification 16-24: Euromonitor International from
International from World Bank United Nations (UN), International Merchandise Trade Statistics
Population with Access to Improved Sanitary Facilities: Euromonitor International % of Population Obese: Euromonitor International from WHO/OECD
from World Bank % of Population Overweight: Euromonitor International from WHO/OECD
Renewable water Resources: Euromonitor International from UN AQUASTAT Diabetes Prevalence: Euromonitor International from International Diabetes
Water withdrawal: Euromonitor International from UN AQUASTAT Federation
Water productivity: Euromonitor International from UN AQUASTAT % Organic Farms: Euromonitor International from International Federation of Organic
Agriculture Movements (IFOAM)/Research Institute of Organic Agriculture FiBL
PM10 Concentration: Euromonitor International from EEA, Eurostat, OECD
Total Population: Euromonitor International from national statistics/UN
CO2 Emissions from the Consumption and Flaring of Fossil Fuels: Euromonitor
International from Energy Information Administration of the US Government, IEA GDP: Euromonitor International from national statistics/Eurostat/OECD/UN/ IMF /IFS
CO2 emissions per unit output: Euromonitor International from Energy Information Land Area: Euromonitor International from UN Food and Agriculture Organisation
Administration of the US Government, IEA (FAOSTAT)