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Annual Report 2018 – 2019 www.weforum.orgWorld Economic Forum ® © 2019, All rights reserved. No part of this publication may be reproduced or transmitted in any or by any means, including photocopying and recording, or by any ination storage and retri system. Contents4 Letter from the cutive Chairman 6 Letter from the President and Managing Board 8 Our Plats 10 Accelerating Business Transation12 Enabling Industry Transation and Improving the State of the WorldShaping the Future of14 Advanced Manufacturing and Production16 Consumption18 Digital Economy and New Value Creation20 Energy22 Financial and Monetary Systems24 Media, Entertainment and Culture26 Mobility 28 Accelerating Socio-Economic ProgressShaping the Future of30 Global Public Goods34 Health and Healthcare38 The New Economy and Society42 International Trade and Investment44 Investing 46 Accelerating Agile GovernanceShaping the Future of48 Cybersecurity and Digital Trust52 Technology Governance 56 Regional and Geopolitical Activities58 Responding to a Multi-Conceptual World60 Africa62 Asia-Pacific64 China66 Eurasia68 Europe70 India and South Asia72 Japan74 Latin America76 The Middle East and North Africa78 North America80 International Organizations and Inal Gathering of Global Leaders 82 Our Foundations84 Community of Global Shapers86 Forum of Young Global Leaders88 Schwab Foundation for Social Entrepreneurship 90 Our Core Functions92 The Forum as Convenor94 Our Multistakeholder Communities100 Business Engagement102 Public Engagement104 Strategic Intelligence106 People and Culture108 Finance and Operations110 Compliance and Institutional Affairs112 Our Global Presence116 Governance and Leadership 120 Financial Statements4 Dear Stakeholders, For 50 years, the World Economic Forum has had a single guiding vision to be the plat where business, government, civil society and other stakeholders work together to address critical global issues. This ambition has held constant even as the world has changed almost beyond recognition. Today, we live in a world that has been irreversibly interconnected through communications, technology, trade, culture, markets, finance and people. The world has seen substantial progress. Yet this progress is challenged by its own outcomes. A burgeoning global population has triggered consumption patterns that push against the environmental limits of our world, while the transing nature of our economies and societies is fundamentally impacting the fabric of inclusion, equality and opportunities for all. Global risks threaten catastrophe, and technological disruption in the of the Fourth industrial Revolution is posing profound questions about what it means to be human. At the same time, the global governance architecture that was created to steward the world through an earlier age of disruption is no longer fit for purpose. As we look Klaus Schwab, Founder and cutive Chairman Committed to Improving the State of the World LETTER FROM THE CUTIVE CHAIRMAN5 I am deeply grateful to all who engage with us on our critical mission businesses, governments, international organizations, academia, young people, civil society and all stakeholders who give their time, energy and strength of purpose to drive collaborative action. It is a special privilege to lead the Forum’s team of 800 talented and dedicated colleagues, driving forward the priorities determined by our committed Board of Trustees. “ back at a unipolar world, we have entered an era defined by multiple concepts of governance. We urgently need a new collaborative approach to our shared future. The Forum was founded on my conviction that no stakeholder alone can sustainably address the technological, environmental and social challenges of an interdependent, multidisciplinary and fast-transing world. This is as true today as it has ever been. As the International Organization for Public-Private Cooperation, the Forum provides a trusted space for ined collaboration and cooperation between all stakeholders. It is a passionate, mission-driven organization. This year, it has again demonstrated its entrepreneurial, pragmatic and efficient spirit in all its activities, reinforcing its reputation as a successful catalyst for enabling and driving global cooperation. That capacity will be strengthened considerably as we enter our sixth decade. This year my colleagues and I have continued to drive the strategy that will take the organization into its next stage of evolution, designed to multiply the power of impact of the Forum’s community of communities. As the Forum enters this new phase, it will harness the energy and drive of its stakeholders by evolving into a network of plats, each independent yet interconnected. These plats will provide stakeholders with structured, efficient ways to drive leadership from within the systems that shape the issues. In a fragmented world, the Forum serves a unique role as a constructive and collaborative force in shaping global, regional and industry futures. We strive to fulfil our role in ways that are fit for purpose and for the times in which we live, always being agile, multistakeholder, forward-looking and solutions-oriented. The Forum was founded on my conviction that no stakeholder alone can sustainably address the technological, environmental and social challenges of an interdependent, multidisciplinary and fast-transing world. This is as true today as it has ever been.6 Back row Adrian Monck, Jeremy Jurgens, Murat Sönmez, Alois Zwinggi, Julien Gattoni, Dominic Kailash Nath Waughray, W. Lee Howell Front row Richard Samans, Sarita Nayyar, Olivier M. Schwab, Saadia Zahidi, Børge Brende, President, Anil Menon, Emma Benameur The World Economic Forum’s 49th year of operation was critical in its evolution as a new kind of international organization, one that is multistakeholder, multidisciplinary and top-level. It serves the needs of the international community by providing a plat for advancing systemic improvements in cooperation and governance through the engagement of multiple stakeholders, industries, technologies, regions and intellectual disciplines. The Forum’s vision and role are uniquely suited to these fast-moving and complex times, requiring agility, engagement and support from leading stakeholders from all walks of life, the creative application of interdisciplinary skill and a high-perance team. The Forum is working to expand the geometry of international cooperation at a time when our interdependent and multipolar world is facing important challenges that no single set of actors can resolve alone, and for which the business community has critical capabilities that need to be activated. Organizational efforts this year focused on extending our network of plats, designed to enable stakeholders to lead, engage or monitor initiatives and challenges. Because they provide greater access to Forum networks, digital tools, events and communications, these plats make it easier for community members to create their The International Organization for Public-Private Cooperation LETTER FROM THE PRESIDENT AND MANAGING BOARD7 own multistakeholder projects on a self-organized, distributed basis. They demonstrate a major step in the Forum’s journey to increase its impact and catalyse action well beyond the power of its internal resources to harness the passion and intent of the wider community. The Forum’s strategic objective is for external collaborators to lead approximately 80 of initiatives by 2020, against about 50 today. This year at the Forum was characteristically marked by notable achievements. Many are outlined in this document, with two holding particular institutional significance. First, the Forum and the United Nations signed a Partnership Agreement to accelerate the implementation of the 2030 Agenda for Sustainable Development. Signed in the presence of UN Secretary-General Antonio Guterres and World Economic Forum Founder and cutive Chairman Klaus Schwab, the Agreement identifies six areas of focus financing the 2030 Agenda, climate change, health, digital cooperation, gender equality and the empowerment of women, and education and skills to strengthen and broaden their organizations’ combined influence by building on existing and new collaboration. Second, working with the G20, the World Economic Forum will lead a new effort to establish universal norms and guidelines for the implementation of smart city technology. The Global Smart Cities Alliance will advance how technology is used in public places and promote core principles, such as transparency, privacy and security. The Forum’s was founded on the principle that, to make sustainable, positive progress on significant challenges, all stakeholders must be engaged. The two examples highlighted above demonstrate how this principle holds increasing power as the world becomes ever more complex and interconnected. This report draws attention to the breadth of the activity that has resulted from our single-minded application of this principle in action. One strategic imperative for the next phase will be to ensure that the institution’s governance structures adapt as the wider portfolio of activities grows, while maintaining the soundest best practices across all Forum activities. One of the Forum’s unique drivers is the number and quality of deep relationships it fosters with the world’s most important companies. In that regard, 2018–2019 was a strong year, during which some of the most influential businesses joined the Forum as Partners. The number of companies that engaged at the Partnership levels totalled over 670. The continuous and deep engagement with top government leaders is a critical aspect of the Forum’s capacity to make change and is increasingly important in times of accelerating disruption and geopolitical shifts. The Forum continues to strengthen its efforts to provide a neutral environment for inal diplomatic dialogues. For instance, the talks between the leaders of Greece and the then er Yugoslav Republic of Macedonia at the Annual Meeting 2018 set the foundations for a historical agreement. The meeting resulted in a resolution between the countries that entered into force earlier this year. The Forum’s Public Engagement activities support its positioning as a distinctive partner of business, government and civil society. The Annual Meeting in Davos-Klosters generates more coverage than any global event outside sports. During the year, the Forum was mentioned in the media 564,000 times. Its digital presence continued to grow in 2018, more than a billion minutes of Forum content were consumed across the internet, a 79 increase on 2017. Strategic insight capabilities continued to support Forum activities this year, during which 28 reports and 49 White Papers were published. To lead in the Fourth Industrial Revolution, the Forum continues its pioneering work to curate plats and rcise systems leadership by developing proprietary knowledge and interaction tools, such as TopLink and Transation Maps. Achieving everything outlined in this Annual Report, and so much more, relies on the talent, commitment and drive of our team of colleagues. The Managing Board is committed to driving best practices for its people to ensure that the Forum’s values are lived in the culture that binds our 800 colleagues. These values are strong intellectual curiosity and integrity, independence, passionate yet impartial engagement, and a positive mindset. We are extremely grateful to these collaborators, and to the Members, Partners and constituents who engage with all our activities and work to deliver such great success.8 Our Plats910 Accelerating Business Transation11 Enabling Industry Transation and Improving the State of the World Shaping the future of.Advanced Manufacturing and ProductionConsumptionDigital Economy and New Value CreationEnergyFinancial and Monetary SystemsMedia, Entertainment and CultureMobility12 Enabling Industry Transation and Improving the State of the World Our effectiveness in creating impactful public-private cooperation is reflected in our al recognition by the Swiss government as an international institution, in the major strategic cooperation agreement with the United Nations, and in the continuous and active engagement of over 1,000 of the world’s top companies. As the Forum’s capacity to encourage trust and open collaboration between business and stakeholder groups has deepened over the decades, so has the Forum’s technical capability, its understanding of how multiple systems can be led to achieve positive change, and its span across global, regional and industry issues. In this complex and fast-moving world, there are too many challenges that demand industry’s attention, too many complexities to take a single approach, too much to do to rely solely on the Forum’s internal resources. To meet this opportunity, the Forum has become a network of plats, each one bringing together the most relevant stakeholders, expertise, insights and activities to shape the future of an industry, a region or a technology. Frictionless collaboration between plats gives stakeholders the power to engage across global, regional and industry issues, and exponentially multiply their impact. The plats are designed to augment that impact, not by growing the Forum in size or complexity, but by enabling our business and other stakeholders to drive change themselves building their own impact by using the power of the Forum’s networks, its technology, its insights. Our industries plat model is designed to balance stakeholder equity, and our Partners engage with us precisely because this principle enables the rich and unique activities Forum plats curate. For over half a century, the World Economic Forum has been a neutral, independent and trusted partner for leaders in business, government and civil society. Anil Menon Managing Director, Head of the Centre for Global Industries13 Our industry engagement is organized into the following cross-industry and interdependent plats that work to shape the future of – Advanced Manufacturing and Production – Cities, Urban Development and Urban Services – Consumption – Digital Economy and New Value Creation – Energy – Financial and Monetary Systems – Health and Healthcare – Investing – Media, Entertainment and Culture – Mobility These plats are designed to engage business leaders at the highest level in initiatives that bring together public and private stakeholders committed to making a difference in issues as diverse as advanced manufacturing models, multimodal mobility systems, epidemic preparedness, financial inclusion, climate change, and dozens more. One example of the Forum’s nimble approach to public-private collaboration was the aggregation in the second quarter of 2019 of all o
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