Ecosystems & Business Increasing chances of a successful marriage

Eva Zabey, WBCSD

23 Feb 2012, BCSD-UK CEV Workshop

About WBCSD & Regional Network

Speaking same language – key concepts

Ecosystem tools for business

Focus on CEV

Brief overview of methodology

Next steps

Broader eco valuation landscape

Contents

2

WBCSD members

3 3

Regional Network

4

BCSD El Salvador

BCSD

Argentina

PBE

(Philippines)

United States

BCSD

EpE

(France)

BCSD

Thailand

BCSR

Malaysia

BCSD

Zimbabwe

BCSD Mexico

BCSD

Honduras

Vernadsky

Foundation

(Russia)

BCSD

Croatia

uniRSE

(Nicaragua)

BCSD

Taiwan

BCA (Australia)

BCSD Brazil

BCSD Colombia

respACT

BCSD Austria BCSD

United Kingdom

BCSD

Mongolia

New

Zealand

BCSD

APEQUE

(Algeria)

FE

BCSD Spain

FFA

(Spain)

Korea

BCSD

AEEC

(Egypt)

BCSD

Portugal

Peru

2021

BCSD

Ecuador

Excel Partnership

(Canada)

NHO

(Norway)

FEMA

BCSD Mozambique

TERI

BCSD India

BCSD

Kazakhstan

Nippon

Keidanren

(Japan)

CII

(India)

CentraRSE

Guatemala

AED

(Costa Rica) BCSD Bolivia

BCSD

Paraguay

BEC

(Hong Kong)

BCSD

Hungary

Danish

BCSD

DERES

(Uruguay)

BCSD

Pakistan

Curaçao BCSD

Business

Europe RBF (Poland)

BCSD

UAE

China

BCSD

NBI

(South Africa)

BCSD

Turkey

econsense

(Germany)

Acción RSE

(Chile)

SEV-BCSD

Greece

SumaRSE (Panama)

CGLI

(Canada/USA)

BCSD

Vietnam

Indonesia BCSD

Centre for

CSR Dev.

(Ukraine)

BCSD

Sri Lanka

Maala

Israel

Czech

BCSD

Ecosystems, ecosystem services & biodiversity

5

provides

wood

stores

carbon

cleans

water

controls

erosion

Biodiversity

Provisioning Goods or products produced

by ecosystems

Regulating Natural processes regulated by

ecosystems

Cultural Non-material benefits obtained

from ecosystems

Types of ecosystem services

6

Supporting Functions that maintain all other services

Business impacts on ecosystems and

ecosystem services

Business depends on ecosystems

and ecosystem services

Ecosystem change creates

business risks and

opportunities

Impact & dependence

7

1. Measure, manage and mitigate risks and impacts

2. Improve decision-making by undertaking corporate ecosystem

valuation to quantify business risks and opportunities

3. Innovate and help develop new markets for ecosystem

services and eco-efficient goods, services & technologies

4. Encourage suppliers & purchasers to adopt best practices

5. Enter into local partnerships to address on-the-ground issues

6. Promote “smart” ecosystem regulation that leverages market

forces and business solutions that halt degradation and “levels

the playing field” for all

How can business respond to their

ecosystem-related issues?

8

Ecosystem Services Review (ESR): helps

manage dependence and impact on ecosystems (v.2

launch 8 Feb)

Guide to Corporate Ecosystem Valuation

(CEV): framework for improving decision-making by

valuing ecosystem service related risks & oppies

Business Ecosystems Training (BET): modular capacity building program for business (launch

24 Feb)

Eco4Biz mapping / “guide”: overview of

ecosystem-related tools & approaches used by

business (to be developed in 2012)

Relevant tools of interest – examples

9

Helps identify & manage risks and

opportunities arising from dependence and

impact on ecosystems

WRI/ WBCSD/ Meridian Institute

Approx. 300 cies using tool since

March ‘08 launch

6 languages

Version 2 to be launched 8 Feb

Corporate Ecosystem Services Review (ESR)

10

What the Guide is A framework for improving corporate decision-

making by valuing ecosystem services

A set of resources to navigate through related

jargon and techniques

What the Guide is not X A price list of biodiversity & ecosystem services

X A calculator to “crunch numbers”

X A stand-alone methodology

Guide to Corporate Ecosystem Valuation (CEV)

11

Partners Road Testers

Partners and Road Testers

12

Save costs e.g. cheaper & more effective waste management options

(DuPont)

Reduce taxes e.g. gain deductions in Federal taxes (Alleghny Power)

Get new revenue streams e.g. implement a fee-to-access program for recreational

users of unused lands (Potlatch Corp)

Assess liability & compensation risks e.g. calculate oil spill natural resource damages to be used

in courts of law (ExxonMobil)

and more…

How CEV helps improve decision-making and…

13

Before using CEV, ask yourself:

Are your impacts & dependencies on

ecosystem services significant or

material (e.g. Corporate Ecosystem

Services Review)?

Do you need CEV to make a decision?

Is there a mandatory requirement?

Do you need to conduct a CEV at all?

14

5 stages to undertake a CEV exercise

15

5) 5)

Embedding

embed the

CEV

approach

within

company

processes &

procedures

Post valuation

4) 4)

Application

use &

communicate

valuation

results to

influence

internal &

external

decision-

making

Valuation

3)

Valuation

3)

Valuation

actual

valuation:

may be

qualitative,

quantitative

and/or

monetary

2)

Planning

2)

Planning

develop

suitable plan

to undertake

valuation

effectively

Preparation

1)

Scoping

1)

Scoping

define

scope for

valuation

exercise,

using

checklist of

questions

Hierarchy of valuation approaches

16

Source: P. ten Brink as cited in TEEB – an

interim report (2008)

Monetary

Quantitative

Qualitative

Monetary

values not

always

available

or required

Resources available on wbcsd.org/web/cev.htm

17

Reports & guide Additional

resource notes

•Concepts

•Selection &

application of

techniques

PPT packs

FAQ

Road tester

summaries

Business depends and impacts on biodiversity &

ecosystem services

CEV can help business manage risk and consider new

business opportunities

Valuing these impacts and dependencies helps business

make better decisions

Ecosystem valuation will increasingly be considered by

governments, finance sector and business-to-business

customers

CEV process is complementary to other business tools

(e.g. ESIAs, LCAs)

Messages

18

Promote uptake, incl. simpler communication

Help users, incl. Business Ecosystems

Training (BET) module 3 is on valuation

Focus on true value of water

Link with other tools using Eco4Biz “guide” –

valuation is not best approach in all cases

Strive to remain leading & progressive biz

voice, but give companies a chance to grasp

these new concepts!

Next steps

19

Ecosystem valuation landscape – getting busy

20

Financial Times

22 March 2011

The Economics of Ecosystems and Biodiversity

(TEEB)

WBCSD is “operationalizing” TEEB at the company

level

WBCSD was editor of chapters 2 and

4 in TEEB for Business (D3)

WBCSD will be involved in TEEB for Business

Coalition – 1st meeting 27 Feb in London, hosted

by ICAEW

Valuing Nature Network http://www.valuing-nature.net/

Other players / initiatives

21

My favorite sentence in the Guide to CEV…

22

“We see the value of

ecosystem valuation.”