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ENVIRONMENTAL SUSTAINABILITY INDEX

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.

© Euromonitor International ENVIRONMENTAL SUSTAINABILITY INDEX PASSPORT 3


INTRODUCTION

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.

© Euromonitor International ENVIRONMENTAL SUSTAINABILITY INDEX PASSPORT 4


INTRODUCTION

Why sustainability matters

▪ In a world with limited resources, a wealthier and growing


population, and increasing levels of pollution, businesses are
challenged to make meaningful changes in the way they
source, manufacture, transport and position their products,
not only to protect brand reputation or to comply with
legislation, but also to ensure long-term operations and
success.
▪ Consumers are increasingly buying products with low social
and environmental impact, and shifting to new business
models that offer “more with less”, from sharing, renting and
leasing, to repairing, recycling and reusing online platforms,
that allow them to have a free-guilt experience.
▪ Over the last five years, global attention to sustainability has
soared among both investors and corporations.
Understanding where the sustainability risks and the
opportunities come from is key for companies with strong
sustainability commitments to shape and invest in successful
sustainability strategies. For instance, businesses operating
or planning to expand into markets with water scarcity, low
energy efficiency, poor recycling infrastructure and less
environmental awareness or less stringent legislation, are
more likely to face challenges to achieve their global
sustainability targets.

© Euromonitor International ENVIRONMENTAL SUSTAINABILITY INDEX PASSPORT 5


INTRODUCTION

Key sustainability drivers for businesses

NGO pressure Brand reputation

✓ Influence on consumers ✓ Green credentials


✓ Advocacy for legislation ✓ Customer loyalty
✓ Challenging business as ✓ Talent retention
usual NGO ✓ CSR programmes
✓ Partnerships with business
Business resilience Environmental legislation
✓ Reduce vulnerabilities ✓ Green taxes and
✓ Supply chain security incentives
✓ Commodity price volatility Sustainability ✓ Government targets
✓ Adaptation and mitigation (climate, emissions, etc.)
✓ Environmental bans
✓ Sustainability reporting

Growth opportunities
Economic profit
✓ New markets ✓ Saving costs
✓ Increase ✓ Investors’ pressures
competitiveness ✓ Business value
✓ Product innovation

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INTRODUCTION

UN Sustainable development goals

▪ 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.

© Euromonitor International ENVIRONMENTAL SUSTAINABILITY INDEX PASSPORT 7


INTRODUCTION
ENVIRONMENTAL SUSTAINABILITY INDEX
COUNTRY PERFORMANCE
ENERGY
WATER
POLLUTION
ENVIRONMENTAL RESILIENCE
FOREST AND BIODIVERSITY
FOOD AND AGRICULTURE
RECOMMENDATIONS
ANNEXE
ENVIRONMENTAL SUSTAINABILITY INDEX

The environmental sustainability index

Why an index? Methodology


▪ The index can inform a sustainability strategy and ▪ Indicators are assessed and selected according to
help businesses and governments to map and their relevance to the index . Country scores are
understand sustainability issues by providing then calculated by weighting average. All six pillars
quantifiable metrics to a range of sustainability have equal weights, while the weight of each
challenges. individual indicator is based on its relevance to the
▪ Use the index to benchmark and identify category.
challenges and opportunities in different countries, ▪ Countries ranking better are more environmentally
plan a sustainability strategy, engage with the sustainable than countries ranking worst, with the
SDGs, and prioritising markets to focus top-performing country ranking number one.
sustainability goals to have the greatest impacts.

Highlight country challenges and opportunities Selection:


Pillars & indicators
Benchmark countries
Standardisation:
Plan sustainability strategy Indicators
Weighting:
Engage with the SDGs
Pillars & indicators
Prioritise markets Calculation:
Scores
Avoid sustainability pitfalls

Assess exposure to environmental challenges Ranking

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ENVIRONMENTAL SUSTAINABILITY INDEX

The six core pillars of environmental sustainability

▪ 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%

Water Pollution, 10%

Global Warming, 15%


Availability, 25%

© Euromonitor International ENVIRONMENTAL SUSTAINABILITY INDEX PASSPORT 10


ENVIRONMENTAL SUSTAINABILITY INDEX

Cross-country comparability

Indicator selection

▪ Countries with large populations, large


economies, and/or large surface areas tend to
be the biggest consumers of resources and
the largest polluters. Using indicators based
on absolute values only gives a partial
understanding of the global picture.
▪ The indicators used to build the
Environmental Sustainability Index are
calculated using either per capita, per total
land and/or per unit of economic output, as a
denominator to enable better cross-country
comparisons of data.
▪ The resulting rankings offer insights into the
risks and opportunities associated with each
country and provide organisations with a
better frame of reference for making
comparisons among countries from a
sustainability perspective.

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ENVIRONMENTAL SUSTAINABILITY INDEX

Environmental Sustainability Index: overall ranking

▪ The ranking for the Environmental


Sustainability Index gives an indication of
the country overall performance in
environmental sustainability, highlighting
regional and country-specific risks and
opportunities.
▪ Canada and Northern European countries
(Norway, Switzerland and Sweden) with
very good performance in the water,
energy, environmental resilience and forest
and biodiversity pillars, rank top among the
97 markets, while emerging and developing
countries in Asia Pacific and Middle East
and Africa show the worst overall
performance.
▪ Although the low ranking of some of the
fastest-growing major economies could be
cause for concern for businesses, it also
offers opportunities for corporate
investment in sustainability strategies.
Note: The Environmental Sustainability Index ranks the sustainability performance for 97 ▪ Understanding in which areas (energy,
markets. It is calculated using 33 indicators condensed into six pillars: energy, water, water pollution, etc.) these opportunities lie
pollution, forest & biodiversity, environmental risk, and food & agriculture will give a competitive advantage to
businesses.

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ENVIRONMENTAL SUSTAINABILITY INDEX

World’s largest and fastest-growing economies

▪ Among the six countries, Indonesia is the best


performer in pollution but is among the worst
performers in forest and biodiversity, mainly
driven by unsustainable palm oil expansion.
▪ With the highest score in environmental
resilience and energy among these countries,
the USA. which announced its exit from the
Paris climate agreement in June 2017, has
the worst performance in pollution.
▪ Geographic vulnerabilities make Asian
economies highly exposed to natural
disasters, ranking very low in the
environmental resilience pillar.
▪ Although Japan has the best ranking in forest
and biodiversity among the six countries, and
also leads the food and agriculture ranking, its
score in environmental resilience is far worse
than many other developed countries.
▪ India shows the worst performance in energy
and water among the six countries, while
Note: The Environmental Sustainability Index ranks the sustainability performance for Vietnam has the lowest score in
97 markets. It is calculated using 33 indicators condensed into six pillars: energy, environmental resilience.
water, pollution, forest & biodiversity, environmental risk & food

© Euromonitor International ENVIRONMENTAL SUSTAINABILITY INDEX PASSPORT 13


INTRODUCTION
ENVIRONMENTAL SUSTAINABILITY INDEX
COUNTRY PERFORMANCE
ENERGY
WATER
POLLUTION
ENVIRONMENTAL RESILIENCE
FOREST AND BIODIVERSITY
FOOD AND AGRICULTURE
RECOMMENDATIONS
ANNEXE
COUNTRY PERFORMANCE

Structure of this section

The following analysis has been performed for each of the six pillars:

Market performance Top and bottom performers Opportunities and risks

▪ 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.

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COUNTRY PERFORMANCE (ENERGY)

Energy pillar

▪ The Energy ranking provides a tool to assess countries' performance


on eight energy-related performance indicators across four categories.
▪ As global concern over climate change increases, there are growing
opportunities for companies to increase their portfolio of
decarbonization strategies, to invest in CSR programmes with
renewable energy investment and energy-efficient products in
countries that score low in the energy pillar.
▪ Imports of mineral fuels, oils and distillation products, and the share of
electricity output from fossil fuels are indicators that contribute
negatively to energy security and efficiency, respectively, while the
remaining indicators have a positive contribution to their corresponding
categories
Energy
Equity, Availability,
Security, 20% Sustainability/Efficiency, 40%
20% 20%
% of Population with
Renewable Energy Capacity (pp),
Access to
Electricity 33%
Electricity, Imports of
Output (pp),
50% Mineral Fuels,
70% Oils, Distillation % Electricity Output From Fossil Fuels,
% Population with Products (pp) 33%
Access to
Non-solid Fuels, Final Consumption 100% Energy Efficiency,
50% Energy (pp), 30% 33%

Note: Indicators were calculated using Euromonitor data from official sources summarised in the annexe.
The acronym (pp) means per person.

© Euromonitor International ENVIRONMENTAL SUSTAINABILITY INDEX PASSPORT 16


COUNTRY PERFORMANCE (ENERGY)

Market performance in energy

Energy Ranking, 97 Countries, 2018 ▪ Developed countries in Western Europe and


North America with higher energy availability,
equity and renewable energy, score the best in
the energy pillar.
▪ With high hydroelectrical capacity and
increasing contribution of wind energy,
Uruguay, Costa Rica and Paraguay are also
among the top 15 in the list, thanks to the small
contribution fossil fuels make to their electricity
generation.
▪ Unsurprisingly, emerging and developing
countries with less access to electricity, non-
solid fuels and clean energy sources, rank at
the bottom of the list.
▪ The low ranking of some of the fastest growing
major economies (i.e. India, ranking 92nd)
1 97 presents risk, but also offers opportunities for
corporate investment towards SDG 7
“Affordable and Clean Energy” and SDG 13
Note: The Energy pillar ranks the performance of 97 markets using eight indicators “Climate Action”, progressing towards SDG
condensed into four categories: Equity, Availability, Security and
Sustainability/Efficiency. targets on renewables (SDG 7.2) and energy
efficiency (SDG 7.3) and achieving a more
decentralised energy infrastructure.

© Euromonitor International ENVIRONMENTAL SUSTAINABILITY INDEX PASSPORT 17


COUNTRY PERFORMANCE (ENERGY)

Energy ranking: top and bottom performers


Equity Security Availability Efficiency/Sustainability ▪ The top five performers in per capita
Mineral
Country Access Fuels, Oils,
% Total renewable energy capacity (Norway,
Final Electricity Renewable
Access to to Non- Distillation Electricity Energy
Ranking
Electricity Solid Products Output
Consumption Output Energy
Efficiency
Switzerland, Sweden, Canada and Austria)
of Energy (pp) from Fossil Capacity
Fuels imports
Fuels (pp) also lead the energy ranking.
(pp)
10 top countries ▪ While Norway has the highest renewable
1. Norway 1 1 64 1 10 6 1 5
2. Switzerland 1 1 63 27 29 4 4 1 energy capacity, and per capita electricity
3. Sweden 1 1 90 6 17 5 3 13 output, both in per capita terms, Switzerland
4. Canada 1 1 67 3 3 14 2 44
5. Austria 1 1 88 20 18 16 5 8 - top global investor in energy efficiency
6. Denmark 1 1 78 37 26 17 11 3
7. New Zealand 1 1 69 16 19 9 7 25 according to the World Economic Forum - is
8. Finland 1 1 91 9 5 11 15 28 the best performer in energy efficiency.
9. France 1 1 76 18 25 8 23 16
10. Uruguay 1 46 48 46 48 7 20 19 ▪ Countries in sub-Saharan Africa and South
10 bottom countries
88. Ethiopia 96 97 6 96 88 2 80 95 East Asia, with poor energy availability and
89. Cameroon 91 89 10 93 95 35 77 60
90. Cambodia 89 93 21 86 85 34 61 83 equity are at the bottom. Rich in
91. India 84 85 29 77 83 66 67 81 renewable energy resources, Ethiopia ranks
92. Myanmar 92 95 22 92 93 36 68 70
93. Singapore 1 1 97 15 15 86 88 11 second in electricity output from non-fossil
94. Côte
d'Ivoire
90 91 23 89 94 75 81 74 fuels, with the country producing most of its
95. Nigeria 93 88 18 95 71 68 87 82 electricity from hydropower.
96. Bangladesh 88 94 12 90 97 90 92 40
97. Tanzania 97 96 9 97 87 50 89 93 ▪ Despite its good score in energy equity, the
most energy-efficient country in Asia,
1 97 Singapore, with the highest per capita
Note: The Energy pillar ranks the performance of 97 markets using eight indicators
energy imports, ranks five from last in the
condensed into four categories: Equity, Availability, Security and energy pillar.
Sustainability/Efficiency. The acronym (pp) refers to per person.

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COUNTRY PERFORMANCE (ENERGY)

Opportunities in the shift towards renewable energy

▪ Investment in offshore wind and roof-top solar energy


offer opportunities in densely populated countries with
limited land surface such as Singapore – heavily
dependent on fossil fuel energy imports – and the
Risks Opportunities Netherlands, which, despite its reputation for energy
mills, still lags behind the EU in renewable energy use.
▪ As energy price volatility in fossil fuel markets increases,
prices for renewables drop, and green consumer
expectations rise, businesses operating in energy-
efficient countries with large renewable energy capacity
per capita (i.e. Norway, Switzerland) will face the risk of
being left behind competitors if not investing in clean
energy sources. In 2019, the Norwegian oil fund
announced the sell-off of USD7.5 billion-worth of its oil
and gas shares, to minimise the economy’s exposure to
oil price volatility, and to reduce the risks of a global shift
from fossil fuels to renewables.
Worst
Best
performers
performers
▪ More companies are expected to expand their renewable
energy capacity and generate their own energy. In May
2019, CEOs from more than 50 businesses, investors
Note: The Energy pillar ranks the performance of 97 markets using eight and business networks, including Unilever and IKEA,
indicators condensed into four categories: Equity, Availability, Security
and Sustainability/Efficiency. Indicators are expressed either in per called on the EU for a long-term decarbonisation strategy
capita terms, or per total land area. to achieve climate neutrality by 2050.

© Euromonitor International ENVIRONMENTAL SUSTAINABILITY INDEX PASSPORT 19


COUNTRY PERFORMANCE (ENERGY)

Case study: the future of transportation is electric

• With transport being a main source of air pollution, many


companies are making pledges to move towards electric
vehicles to tackle both climate change and pollution.
However, this transition is challenging in countries with
insufficient or non-existent electric charging infrastructure.
• In Asia Pacific, CO2 emissions from transport increased by
98% over 2000-2018. Actually, the region was responsible
Gogoro for over 50% of the global growth in CO2 emissions from
transport over the same period.
• Taiwanese company Gogoro markets electric scooters with
swappable batteries. Customers can swap their battery
when it reaches low level for a fully charged one. This
subscription model allow consumers to buy their scooters
and lease and/or rent the batteries. The company is now
operating in Germany using a similar scooter rental
programme in Berlin.

© Euromonitor International ENVIRONMENTAL SUSTAINABILITY INDEX PASSPORT 20


COUNTRY PERFORMANCE (WATER)

Water pillar

▪ The Water Ranking provides a tool to assess countries’ performance on


seven water-related performance indicators across four categories.
▪ As global concern over water scarcity increases, there are growing
opportunities for corporate investment to improve water quality and
access, and to adopt and market smart and water-efficient products and
technologies in countries that rank low in the water pillar.
▪ Water stress contributes negatively to water security, while the rest of the
indicators have a positive contribution to their corresponding categories.

Water
Efficiency
Equity 29% Availability 29% Security 29%
13%

% Population with Access


Water Stress

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.

© Euromonitor International ENVIRONMENTAL SUSTAINABILITY INDEX PASSPORT 21


COUNTRY PERFORMANCE (WATER)

Market performance in water

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.

© Euromonitor International ENVIRONMENTAL SUSTAINABILITY INDEX PASSPORT 22


COUNTRY PERFORMANCE (WATER)

Water ranking: top and bottom performers

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.

© Euromonitor International ENVIRONMENTAL SUSTAINABILITY INDEX PASSPORT 23


COUNTRY PERFORMANCE (WATER)

Opportunities for smart and water-efficient products

▪ Growing populations and higher prices for water


desalinization are putting pressure on scarce water
resources in the gulf states. With scarce per capita
renewable water resources and infrequent rainfall, the
Risks
United Arab Emirates, Qatar and Kuwait – which are
among the biggest economies in the Middle East –
Opportunities are suffering from water scarcity, posing a threat to
sustainable development. These markets offer
opportunities for innovative solutions that help to
secure future water supply such as the scaling up of
water recycling technologies.
▪ 10 markets accounting for over a third of global GDP
fall within the risks area in the graph. Companies
operating in markets with high water productivity such
as Norway or Singapore might face risks if not
reporting and investing in water efficient technologies.

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.

© Euromonitor International ENVIRONMENTAL SUSTAINABILITY INDEX PASSPORT 24


COUNTRY PERFORMANCE (WATER)

Case study: water scarcity is a threat to sustainable development

• Although 70% of the earth’s surface is covered by water,


only a fraction of it is fresh water, and its availability is
unevenly distributed across the globe.
• Access to water is a human right, and essential to all
business operations. With per capita water demand
growing globally by 11.9% over 2000-2018, water scarcity
presents a threat to sustainable development.
Kimberly- • The maker of trusted brands including Huggies, Cottonelle
Clark and Kotex has developed WaterLOUPE, a cutting-edge
new tool to support water stakeholders in assessing water
scarcity risks. This has the potential to generate actionable
insights to adapt and/or mitigate local water risks.
• Kimberly-Clark is using this tool to raise stakeholder
awareness of local water risks and to encourage
collaboration between government, business, communities
and NGOs to preserve freshwater resources.

© Euromonitor International ENVIRONMENTAL SUSTAINABILITY INDEX PASSPORT 25


COUNTRY PERFORMANCE (POLLUTION)

Pollution pillar

▪ The Pollution ranking provides a tool to assess countries’ performance on


six pollution-related performance indicators across three categories.
▪ With concerns over pollution and waste rising globally, and threatening
public health, there are opportunities for companies to reduce their air
emissions beyond business as usual, and to move towards organic
agriculture and service-based models that have the potential to reduce
waste generation in countries that rank low in the pollution pillar.
▪ The pollution ranking uses per capita CO2 emission and waste indicators,
with all indicators contributing negatively to their corresponding categories.

Pollution
Water
Air quality 50% Land quality 40% quality
10%

Water Pollution, 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.

© Euromonitor International ENVIRONMENTAL SUSTAINABILITY INDEX PASSPORT 26


COUNTRY PERFORMANCE (POLLUTION)

Market performance in pollution

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”.

© Euromonitor International ENVIRONMENTAL SUSTAINABILITY INDEX PASSPORT 27


COUNTRY PERFORMANCE (POLLUTION)

Pollution ranking: top and bottom performers


Air
CO2
Water Land
▪ Six African countries with low CO2 emissions
CO2 Municipal Municipal
Country
PM10
Emissions
Emissions per Fertilizer Waste Waste Stress, from fossil fuels and low municipal waste
Ranking from
Concentration
Fossil
Unit of Consumption Generation, Waste per generation in per capita terms make the best
Output pp Total Land
Fuels, pp
performers in the pollution ranking.
Top 10 countries
1. Cameroon 53 3 13 5 11 15 ▪ With the highest use of fertilizer consumption,
2. Angola 11 10 23 4 13 6
3. Ethiopia 91 1 18 6 2 13
Singapore along with four Middle Eastern
4. Côte d'Ivoire 2 4 36 22 18 32 countries, with arid climate and poor, nutrient-
5. Kenya 78 4 26 16 6 23
6. Ghana 85 7 28 10 7 35 deficient soils, are the worst performers in the
7. Sri Lanka 70 13 34 34 9 69
8. Tanzania 81 2 31 8 17 24
pollution pillar.
9. Myanmar
10. Paraguay
71
27
4
13
53
17
11
36
3
34
16
8
▪ Despite its relatively low per capita CO2
Bottom 10 countries emissions per unit of output, and its low PM10
88. Russia 20 85 91 12 66 7 emissions, Singapore, with the highest fertilizer
89. Iran 93 72 94 19 22 27
90. Ukraine 64 51 96 18 52 48 consumption and per capita municipal waste
91. Saudi Arabia 89 92 81 64 81 18
92. Kazakhstan 54 87 95 2 32 2
generation and stress, ranks last in the pollution
93. Kuwait 83 96 76 91 70 83 pillar. The country has put in place a new
94. UAE 94 94 62 88 88 79
95. Qatar 3 97 59 96 55 82 approach to waste treatment, mixing food waste
96. Bahrain 13 95 86 92 91 96 with wastewater sludge for energy production.
97. Singapore 22 76 8 97 97 97
▪ Rich in oil and with small populations producing
highly CO2-intensive export commodities, the
1 97 Gulf states of Bahrain, Qatar, United Arab
Emirates (with a target of 50% clean energy by
Note: The Pollution pillar ranks the performance of 97 markets using six 2050), and Kuwait, show low scores in per capita
indicators condensed into three categories: Air, Water and Land. The acronym
(pp) refers to per person. CO2 emissions from fossil fuels.

© Euromonitor International ENVIRONMENTAL SUSTAINABILITY INDEX PASSPORT 28


COUNTRY PERFORMANCE (POLLUTION)

Transition towards a more sustainable energy and waste future

▪ Every country has opportunities to reduce its levels of


pollution. The UN has implemented a series of Treaties on
Opportunities Sustainable Development such as the Paris Agreement or
the Basel Convention. In May 2019, 187 countries – not
including the USA – agreed to add plastics to the Basel
Convention to regulate plastic waste exports.
▪ The shift towards a circular economy is key in a resource-
constrained economy such as Singapore, whose
economic growth has led to increasing solid waste
generation.
▪ Oil-rich countries such as Qatar and the UAE – with the
highest per capita CO2 emissions and growing energy
demand – offer huge opportunities for innovations in cost-
Best
competitive clean energy technologies. With strategic
Worst
performers performers positions in the so-called Global Sunbelt, solar energy has
the potential to be used in different applications including
water desalination.
Note: The Pollution pillar ranks the performance of 97 markets using ▪ While New Zealand, ranking 70th in per capita CO2
six indicators condensed into three categories: Air, Water and Land. emissions from fossil fuels, introduced a bill for zero
Indicators are expressed either on a per capita basis, or per total land
area.
carbon emissions by 2050, the recent US exit from the
Paris Agreement is an opportunity for US companies to
lead the renewable energy transition engaging with
greener consumers. In 2018 Patagonia donated President
Trump’s corporate tax cuts to fight climate change.

© Euromonitor International ENVIRONMENTAL SUSTAINABILITY INDEX PASSPORT 29


COUNTRY PERFORMANCE (POLLUTION)

Case study: Ikea’s solution to urban air pollution

• By 2030, 60% of the global population is projected to live in


cities, with population density expected to grow by 13.6%
over 2018-2030. This will have tremendous impact on air
quality, posing one of the greatest challenges to human
health and well-being.
• Although global emissions of particulate matter declined by
27.4% over 2000-2018, peak emissions are increasing in
cities such as London and Paris, where car-free policies,
low-emission zones, bans on diesel vehicles, and the
adoption of electric vehicles are seen as potential solutions
IKEA to improve air quality.
• With 45% of millennial consumers looking for anti-pollution
benefits in skin care in 2018 (Euromonitor Lifestyles Survey),
the anti-pollution trend is spreading its tentacles, with other
sectors developing products to protect consumers from
pollution.
• Just after the launch of its most sustainable shop (in
Greenwich, London) and the use of a giant Ikea bath boat to
clean up the Thames, the company has launched a curtain
with a revolutionary anti-pollution textile technology that
cleans household air.

© Euromonitor International ENVIRONMENTAL SUSTAINABILITY INDEX PASSPORT 30


COUNTRY PERFORMANCE (ENVIRONMENTAL RESILIENCE)

Environmental resilience pillar

▪ The environmental resilience ranking provides a tool to assess countries’


performance on two environmental resilience-related performance
indicators across two categories.
▪ With environmental hazards becoming more frequent and more severe,
there are opportunities for innovation in products that help to fight climate
change and increase the resilience to natural disasters in countries that
rank low in the environmental resilience pillar. This pillar captures many
of the impacts of climate change.
▪ The world risk index contributes negatively to environmental risk, while
temperature growth can have a positive or a negative impact on global
warming.

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.

© Euromonitor International ENVIRONMENTAL SUSTAINABILITY INDEX PASSPORT 31


COUNTRY PERFORMANCE (ENVIRONMENTAL RESILIENCE)

Market performance in environmental resilience

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

© Euromonitor International ENVIRONMENTAL SUSTAINABILITY INDEX PASSPORT 32


COUNTRY PERFORMANCE (ENVIRONMENTAL RESILIENCE)

Environmental Resilience ranking: top and bottom performers


Resilience Global Warming
▪ As pressures on natural resources rise, so do
Country Rankings Mean Temperature Growth
World Risk Index
(2000-2018) environmental awareness and willingness to act, with
Top 10 countries consumers increasingly buying from brands that are
1. Bosnia-Herzegovina 48 1 more ethical and sustainable.
2. Norway 8 8
3. Estonia 8 9 ▪ In 2019, 61% of consumers are worried about climate
4. Kazakhstan 37 2
5. Latvia 21 5
change and 64% think that they can make a difference in
6. Finland 4 15 the world with their purchases (Euromonitor Lifestyles
7. Lithuania 12 13
8. Sweden 5 15 Survey), pushing demand for sustainable choices.
9. Canada 14 15
10. Spain 18 15
▪ The top 10 countries in the environmental resilience
Bottom 10 countries ranking show good performance in global warming, while
88. Turkey 48 97 also scoring relatively well in the World Risk Index.
89. Angola 85 86
90. Cameroon 90 84 Despite the increasing frequency and intensity of natural
91. Vietnam 91 69 hazards such as droughts, floods and earthquakes,
92. Costa Rica 94 7
93. El Salvador 92 37 Bosnia-Herzegovina and Kazakhstan, with the highest
94. Cambodia 93 50
95. Bangladesh 95 81
scores in global warming, are among the top five
96. Guatemala 96 40 performers, along with three European countries.
97. Philippines 97 22
▪ South-east Asian and Central American countries at the
1 97
bottom of the table show very poor scores in the
resilience category, and poor or very poor performances
in mean temperature growth. With its mean temperature
Note: The Environmental Resilience pillar ranks the performance of 97
decreasing by 0.4℃ over 2000-2018 – calculated as the
markets using two indicators condensed into two categories: sum of the annual temperature growth over this period –
Environmental Risk and Global Warming. Indicators are expressed
either on a per capita basis, or per total land area.
Costa Rica is the exception.

© Euromonitor International ENVIRONMENTAL SUSTAINABILITY INDEX PASSPORT 33


COUNTRY PERFORMANCE (ENVIRONMENTAL RESILIENCE)

A clear business case for action on climate change

▪ With natural disasters linked to climate change posing


a risk to business activities, corporations around the
globe are making pledges to decrease their carbon
footprint, protect their investments and reduce their
Risks exposure to the impacts of future disasters.
▪ Although climate change has the potential to disrupt
Opportunities
supply chains, it also offers opportunities for growth
and innovation in high-efficiency and smart products,
along with investments in renewable energy,
especially in countries with high solar energy radiation
(i.e. UAE, Kuwait, Australia), and/or favourable wind
conditions such as Netherlands, which tops the World
Risk Index for Europe due to its high vulnerability to
rising sea levels.
▪ In Japan, electronics giant Sharp has found market
opportunities, selling earthquake-proof fridges that
lock themselves from the grid, using solar energy
when tremors are detected to avoid internal damage.
Best Worst
performers performers
▪ In a globalised world, businesses operating in
countries with good environmental resilience could
face future climate-related risks. Companies
Note: The Environmental Resilience pillar ranks the performance of 97 addressing growing investor demand for climate-
markets using two indicators condensed into two categories: related financial risk disclosure would gain competitive
Environmental Risk and Global Warming. Indicators are expressed either
on a per capita basis, or per total land area. advantage.

© Euromonitor International ENVIRONMENTAL SUSTAINABILITY INDEX PASSPORT 34


COUNTRY PERFORMANCE (ENVIRONMENTAL RESILIENCE)

Case study: the crops of the future

• The effects of climate change are becoming more visible –


from changing weather patterns and water stress, to reduced
crop yield and biodiversity loss – posing a challenge to
sustainable development.
• Global initiatives from governments and businesses are
spreading to address concerns over water and food security.
Mitigation and adaptation strategies are key to becoming
more resilient, while at the same time translating these
AB challenges into opportunities.
InBev • With demand for beer expected to increase by 6% over the
period to 2022, droughts and extreme temperatures could
affect barley yields, impacting beer production and prices.
Barley is a key cereal, ranking fourth in both production and
area harvested for cereal crops in the world.
• With 27% of the global beer market in 2018, the world’s
largest brewer is using CropOS (a cutting-edge platform that
combines machine learning and big data with genome editing
and plant biology) to develop higher yielding and more
sustainable and climate-resilient barley varieties that require
less water and fewer natural resources.

© Euromonitor International ENVIRONMENTAL SUSTAINABILITY INDEX PASSPORT 35


COUNTRY PERFORMANCE (FOREST & BIODIVERSITY)

Forest and biodiversity pillar

▪ The forest and biodiversity ranking provides a tool to assess countries’


performance on four forest and biodiversity indicators across two
categories.
▪ Forests play a key role to conserve biodiversity, fight climate change and
provide clean air and water. As global forest and biodiversity loss
continues to accelerate, there are growing opportunities to increasingly
shift towards more sustainable supply chains, with the adoption of
sustainable sourcing practices and responsible forest management in
countries that rank low in the forest and biodiversity pillar.
▪ The number of threatened species (mammals, birds and fish) contributes
negatively to forest and biodiversity security, while forest growth
percentage of total forest can have either positive or negative
contributions to forest and biodiversity security. Both protected area and
forest land have a positive contribution to their corresponding categories.
Forest and Biodiversity
Security, 50% Availability, 50%

Marine and Terrestrial Protected Areas as % of Total Area


33%
Forest Land as % of Total
Threatened Fish, Mammals and Birds Species Area
33% 100%
Forest Area Growth as % of Forest Area,
33%

Note: Indicators were calculated using Euromonitor data from official sources summarised in the annexe.

© Euromonitor International ENVIRONMENTAL SUSTAINABILITY INDEX PASSPORT 36


COUNTRY PERFORMANCE (FOREST & BIODIVERSITY)

Market performance in forest and biodiversity

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.

© Euromonitor International ENVIRONMENTAL SUSTAINABILITY INDEX PASSPORT 37


COUNTRY PERFORMANCE (FOREST & BIODIVERSITY)

Forest and biodiversity ranking: top and bottom performers

Security Availability ▪ European countries with a small number of threatened


Country Marine and species and relatively high forest coverage, and a high
Forest Land
Ranking Terrestrial Threatened Forest Area Growth percentage of their territory protected, perform better in the
as % of
Protected Fish, Mammal (2000-2018) as %
Total Land
Areas as % of and Bird Species Total Forest Land
Area
forest and biodiversity pillar.
Total Area
Top 10 countries
▪ With 54% of its territory under protection in 2018, Slovenia
1. Slovenia 1 34 54 6
ranks first in forest and biodiversity, followed by Finland,
2. Finland 35 7 29 1 with the biggest forest coverage relative to its land area
3. Slovakia 3
39
8
14
50
32
29
2
(70%). In contrast, Bulgaria and Poland – which are
4. Sweden
5. Austria 8 15 51 21 among the top 10 performers – stand out for their poor
6. Germany 2 26 47 47 score in forest growth.
7. Bulgaria 4 32 82 37
8. Latvia 26 5 61 11 ▪ India, Indonesia and Pakistan, together home to 23% of
9. Estonia
10. Poland
21
6
3
12
31
63
14
55
Asia’s threatened mammals, fish and bird species, and
Bottom 10 countries
14% of the region’s protected areas, are among the worst
88. Kazakhstan 81 39 28 89 performers. Despite Indonesia’s relatively high forest
89. Iraq 96 36 53 87 coverage (50%), the country has the largest number of
90. South Africa 46 83 34 81
91. Mexico 67 93 24 43
threatened species due to unsustainable palm oil
92. El Salvador 88 16 5 73 expansion.
93. Argentina 69 76 10 78
94. Indonesia 67 97 12 19
▪ India’s national strategy to increase forest cover in line
95. India 82 96 74 60 with the Paris Agreement does not compensate for its
96. Pakistan 53 67 2 88
41 74 1 84
weak performance in other forest and biodiversity
97. Nigeria
indicators, with the country ranking 95th.
1 97
▪ While Nigeria and Pakistan score the highest for forest
Note: The Forest & Biodiversity pillar ranks the performance of 97
markets using four indicators condensed into two categories: area growth over 2000-2018, they are amongst the worst
Availability and Security. performers in forest land coverage

© Euromonitor International ENVIRONMENTAL SUSTAINABILITY INDEX PASSPORT 38


COUNTRY PERFORMANCE (FOREST & BIODIVERSITY)

Opportunities for sustainable sourcing

▪ With 47% of consumers trusting in sustainably produced


labels in 2019 (Euromonitor Lifestyle Survey), sustainable
sourcing is key to protecting forest and biodiversity loss,
Opportunities
while helping companies to comply with more stringent
legislation and meeting the greener expectations of
Risks
investors, stakeholders and consumers.
▪ Countries with very small forest coverage (i.e. Qatar and
the United Arab emirates), and countries with a large
number of threatened species (i.e. USA and Australia)
offer huge opportunities to combat desertification and halt
biodiversity loss, through sustainable forest management
and reforestation projects.
▪ In 2018, The European Investment Bank injected
EUR12.5 million into sustainable forestry in Ireland –
Best Worst
ranking last in forest land as a percentage of total land in
performers performers Europe – to support biodiversity and fight climate change.
▪ In countries with scarce land availability such as
Note: The Forest & Biodiversity pillar ranks the performance of 97 Singapore, vertical farming is an attractive investment
markets using four indicators condensed into two categories:
Availability and Security. Indicators are expressed either on a per
opportunity. In countries with a high number of protected
capita basis, or per total land area. areas, and environmental awareness, businesses not
taking their responsibilities of protecting biodiversity
seriously might find legal risks while also losing consumer
trust.

© Euromonitor International ENVIRONMENTAL SUSTAINABILITY INDEX PASSPORT 39


COUNTRY PERFORMANCE (FOREST & BIODIVERSITY)

Case study: designing products for the planet

• Concerns about plastic waste and marine pollution have


inspired governments and corporations to cut the use of
single-use fossil fuel-based plastics and invest in more
sustainable alternatives (recyclable, reusable, compostable
and biodegradable).
• This has brought opportunities and challenges for all players,
from plastic manufacturers, fast-moving consumer goods
companies, retailers, and the recycling industry. There is no
L'Oréal
L'Oréal perfect solution or miraculous material with zero
environmental impact, so businesses are a taking a different
approach.
• L'Oréal just launched its paper packaging shampoo bottle
with an external shell made of recycled corrugated paper,
that is also recyclable and compostable. The bottle has an
internal plastic material made of recyclable plastic. It is still
plastic but the pouch dramatically reduces the amount of
plastic used compared to a rigid plastic bottle. The label is
also made of paper, and each bottle comes with a packet of
seeds, which is a way of encouraging consumers to start
their own gardens.

© Euromonitor International ENVIRONMENTAL SUSTAINABILITY INDEX PASSPORT 40


COUNTRY PERFORMANCE: FOOD AND AGRICULTURE

Food and agriculture pillar

▪ The food ranking provides a tool to assess countries’ performance on


six forest and biodiversity performance indicators across three
categories.
▪ As the global population grows and climate pressures and the
occurrence of natural disasters rises, there will be a shift towards more
sustainable diets, with opportunities for businesses sourcing more
responsible and healthier food ingredients in countries that rank low in
the food pillar.
▪ Food expenditure as percentage of consumer expenditure, foodstuff
imports, % of population overweight and obese, and diabetes’
prevalence contribute negatively to their corresponding categories, while
agricultural land (pp) and % of organic farms have a positive
contribution to their corresponding categories.
Food
Availability, 40% Security, 40% Health 20%
% of population
Agricultural Land (pp), overweight and obese,
50% 25%
Food Expenditure as Percentage of
Consumer Expenditure Diabetes Prevalence
100% 25%
Foodstuff imports (pp), % Organic Farms in
50% Agricultural land 50%

Note: Indicators were calculated using Euromonitor data from official sources summarized in the annexe.

© Euromonitor International ENVIRONMENTAL SUSTAINABILITY INDEX PASSPORT 41


COUNTRY PERFORMANCE: FOOD AND AGRICULTURE

Market performance in food and agriculture

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.

© Euromonitor International ENVIRONMENTAL SUSTAINABILITY INDEX PASSPORT 42


COUNTRY PERFORMANCE: FOOD AND AGRICULTURE

Food ranking: top and bottom performers

Availability Security Health


▪ Australia, with the highest per capita agricultural land,
is the best performer in food and agriculture, despite
Country Food % Organic
Ranking expenditure/ Foodstuff
% of
Farms per
its low scoring in per capita foodstuff imports and
Agricultural Population Diabetes
Total
land, pp
Imports,
Overweight Prevalence
total overweight/ obese population. However, its leading
expenditure pp Agricultural
and Obese position is at risk due the high vulnerability of its
pp land
Top 10 countries
1. Australia 6 1 88 88 17 192.
agricultural production to climate change impacts,
2. Singapore 2 97 20 20 85 97 with the country ranking 45th in the world risk index.
3. South Korea 22 94 19 19 40 20
4. Japan 30 93 16 16 29 21 ▪ With the least per capita agricultural land and organic
5. Ireland 4 19 73 73 4 5
6. Switzerland 7 79 37 37 23 6
farms as percentage of total agricultural land,
7. Slovakia 37 56 47 47 45 1 Singapore ranks second in this pillar. While Canada
8. Austria 8 62 39 39 36 10
9. Canada 5 10 91 91 51 34
stands out for its high percentage of
10. Denmark 10 46 42 42 36 46 overweight/obese population and foodstuff imports,
Bottom 10 countries
88. Morocco 79 25 45 45 43 69 Japan and South Korea do so due their low per capita
89. Belarus 76 21 70 70 19 47 agricultural land.
90. Guatemala 83 72 25 25 81 26
91. Azerbaijan 84 44 30 30 54 55 ▪ Countries with poor food availability are at the bottom
92. Algeria 81 18 55 55 36 90
93. Bangladesh 95 89 3 3 66 53 of the table. Among the worst performers are Nigeria
94. Myanmar 96 71 7 7 14 58 Ukraine and Egypt. While Nigeria ranks last in food
95. Egypt 77 91 62 62 95 27
96. Ukraine 89 17 59 59 45 28 availability and has bad performance in organic
97. Nigeria 97 53 12 12 1 95
farms, the country ranks first in diabetes’ prevalence.
1 97 ▪ Algeria stands out for its low percentage of organic
Note: The Food and Agriculture pillar ranks the performance of 97 markets land, and Egypt is second-to-last in diabetes’
using six indicators condensed into three categories: Availability, Security prevalence.,, an illness whose prevalence in the
and Health. The acronym (pp) refers to per person. Indicators are
expressed either on a per capita basis, or per total land area. country rose by 89% over 2000-2018

© Euromonitor International ENVIRONMENTAL SUSTAINABILITY INDEX PASSPORT 43


COUNTRY PERFORMANCE: FOOD AND AGRICULTURE

Opportunities for climate resilience and sustainable food

▪ Food security is related to all of the United


Risks
Nations’ Sustainable Development Goals (SDGs).
▪ Countries such as Qatar and the UAE, scoring very
Opportunities
low in food security and health indicators, and very
dependent on international food trade, offer
opportunities to improve the production of healthy and
affordable food. Such opportunities include enhancing
crop productivity, developing drought-, heat-, and salt-
tolerant crops, and establishing hydroponics systems
along with improving water efficiency and land use.
▪ Switzerland and Ireland along with Singapore, Japan
and Australia, with good performance in the food and
agriculture pillar, fall in the risks zone.
▪ With Agritech having a moment in Singapore,
companies not investing in vertical, indoor and urban
farming will face risks as investors pour more cash
into this sector.
Best Worst ▪ Organic agriculture is booming in North America and
performers performers
Western Europe, with respective growth of 38.2% and
24.7% in organic farm land over 2013-2018. As
consumers increasingly demand and trust organic
Note: The Food and Agriculture pillar ranks the performance of 97 markets labels, companies not switching to organic production
using six indicators condensed into three categories: Availability, Security
and Health. Indicators are expressed either on a per capita basis, or per might risk losing market share in these regions.
total land area.

© Euromonitor International ENVIRONMENTAL SUSTAINABILITY INDEX PASSPORT 44


COUNTRY PERFORMANCE: FOOD AND AGRICULTURE

Case study: Making snacks from coffee waste

• The growing global concern over food waste is creating new


business opportunities. With total consumption of coffee
expected to reach 10.3 billion kilos in 2023, Danish start-up
Kaffe Bueno has found some smart ways to recycle coffee
waste into healthy products.
• Only 1% of the beneficial compounds in the coffee beans are
consumed when drinking coffee; the rest remains in the
Kaffe coffee waste, which unusually ends up in landfill; this is a
tremendous waste of resources.
Bueno • In May 2019, Kaffe Bueno won the Mondelez International
“Future of Snaking” competition, with a breakthrough
innovation: a coffee flour low in fats and rich in protein and
fibre, to be used in the manufacturing of snacks.
• This innovative solution to fight food waste follows a global
wave of interest in applying circular economy principles to
reduce food waste, save resources, reduce pollution, and
increase food security.

© Euromonitor International ENVIRONMENTAL SUSTAINABILITY INDEX PASSPORT 45


INTRODUCTION
ENVIRONMENTAL SUSTAINABILITY INDEX
COUNTRY PERFORMANCE
ENERGY
WATER
POLLUTION
ENVIRONMENTAL RESILIENCE
FOREST AND BIODIVERSITY
FOOD AND AGRICULTURE
RECOMMENDATIONS
ANNEXE
RECOMMENDATIONS

Recommendations for businesses

Sustainability needs to be seen as a source of innovation and competitive advantage for


corporations. Aligning business strategy with the UN Sustainability Development Goals (SDGs)
is essential for businesses’ long-term operations and success.

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.

Mapping and prioritising sustainability-related risks and opportunities across different


markets is key to succeeding, attracting investors, ensuring good financial
performance, and protecting both brand reputation and company operations, while also
complying with or even being ahead of legislation.

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.

© Euromonitor International ENVIRONMENTAL SUSTAINABILITY INDEX PASSPORT 47


INTRODUCTION
ENVIRONMENTAL SUSTAINABILITY INDEX
COUNTRY PERFORMANCE
ENERGY
WATER
POLLUTION
ENVIRONMENTAL RESILIENCE
FOREST AND BIODIVERSITY
FOOD AND AGRICULTURE
RECOMMENDATIONS
ANNEXE
ANNEXE

Environmental sustainability index: indicators


Pillar Category Indicators
% of Population with Access to Electricity
Equity
% Population with Access to Non-solid Fuels
Electricity Output (pp)
Availability
Final Consumption Energy (pp)
ENERGY
Security Imports of Mineral Fuels, Oils, Distillation Products (pp)
Renewable Energy Capacity (pp)
Sustainability/efficiency % Electricity Output From Fossil Fuels
Energy Efficiency
% Population with Access to Clean Drinking Water
Equity
% Population with Access to Improved Sanitation
Renewable Water Resources (pp)
Availability
WATER Water Withdrawal (pp)
Water Stress
Security
Total Precipitation
Efficiency Water Productivity
PM10 Emissions
Air CO2 Emissions from Fossil Fuels (pp)
CO2 Emissions per Unit of Output
POLLUTION
Water Fertilizer Consumption
Municipal Waste Generation (pp)
Waste
Municipal Waste Intensity (per Km2)
Risk Index World Risk Index
ENVIRONMENTAL RESILIENCE
Global warming Temperature Growth, 2000-2018
Availability Forest Land as % of Total Area
Marine and Terrestrial Protected Areas as % of Total Area
FOREST AND BIODIVERSITY
Security Threatened Fish, Mammals and Birds Species
Forest Area Growth as % of Forest Area, 2000-2018
Availability Food Expenditure as Percentage of Consumer Expenditure
Agricultural Land (pp)
Security
Foodstuff Imports (pp)
FOOD & AGRICULTURE
% of Population Overweight and Obese,
Health Diabetes’ Prevalence
% Organic Farms as Percentage of Agricultural Land

© Euromonitor International ENVIRONMENTAL SUSTAINABILITY INDEX PASSPORT 49


ANNEXE

Metrics used to calculate the indicators

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)​

© Euromonitor International ENVIRONMENTAL SUSTAINABILITY INDEX PASSPORT 50


FOR FURTHER INSIGHT PLEASE CONTACT
Maria Coronado Robles
Senior Consultant - Sustainability
Maria.coronadorobles@euromonitor.com
https://www.linkedin.com/in/maria-coronado/
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