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Updates in the Valuation of Ecosystem Services
Moderator: Michelle Lapinski, Director of Corporate Practices, The Nature Conservancy
Panelists: Mark Weick, Director of Sustainability, The Dow Chemical Company
Diane O'Connor, VP Environment, Health, Safety and Sustainability, Xerox
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Ecosystem Services
The benefits people and businesses derive from ecosystems
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Natural Capital
Coastal natural hazard protection
Air pollution mitigation via re/forestation
Freshwater supply
Photos: Jennifer Molnar
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Value of nature
Company
Jennifer Molnar
Public
Biodiversity & Ecosystems
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Business Message…and Action
• Nature has value to business – degradation is risk and business opportunity
• Natural capital is a productive asset alongside financial and human capital
• Leading from the “bottom up” –progressive private sector action – beyond one size fits all
• Not waiting for government to act, but ready to collaborate: $500B in commitments
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http://corporateecoforum.com/valuingnaturalcapital
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The New Metrics of Sustainable Business Valuation of Ecosystem Services: Xerox/TNC Partnership
Xerox Environment, Health, Safety and SustainabilitySeptember 27, 2012
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With sales approaching $23 billion, we are the world’s largest enterprise for business process and document management.• Employees: 140,000 worldwide• Headquarters: Norwalk, CT• Chairman and CEO: Ursula M. Burns
Document Technology and Managed Print Services
Technology
Business ProcessOutsourcing
IT Outsourcing
Services
Xerox Today
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Quantitative Approach
Value Chain Focus
Communicate “Wins”
Sustainability ProgramFundamentals for Success
Leverage Partnerships
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Responsible Sourcing Responsible Use Responsible Disposal
Environmentally-sound papers:
• Forestry Practices
• Supplier Requirements for Paper Mills
• Environmentally Sound Paper Offerings
– (FSC, PEFC, SFI)
– Recycled Paper
Xerox equipment is designed for efficient use of paper:
• Print management features
• Recycled paper runs reliably
• On-ramp to digital document management
• Workflow SW tools
• Xerox paper, packaging, and prints are recyclable
Enabling beneficial management:
Steps Toward a Sustainable Paper Cycle
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Responsible Sourcing Responsible Use Responsible Disposal
• % paper offerings FSC, SFI, PEFC, recycled
• % Suppliers responding to Xerox annual paper survey
• % certified fibers in Xerox papers
• De- inkability rating• Duplex rate (Managed Print accounts)
TNC Provides the Upstream SME for Xerox Goal of a Sustainable Paper Cycle
Sustainable Paper Cycle Metrics
Environmentally-sound papers:
Xerox equipment is designed for efficient use of paper:
Enabling beneficial management:
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• High Conservation Value (HCV) Resource Network- promote, train, steer– Global Network– Indonesia Learning Network
• Support Implementation of the Canadian Boreal Forest Agreement • Certification- work with Xerox Suppliers and other Land Managers in select
regions of North America• Forest Carbon- develop & test broadly applicable methods (domestic & int’l) for
quantifying carbon from improved forest management– Serve as a platform for suppliers receiving potential carbon benefits
• 20% of tropical forests are slated to be logged
• 30-50% of logging impacts can be avoided while maintaining timber production
• Reduced impact logging rarely achieved
• Much work needed • Methodology – critical piece
The Nature Conservancy & Xerox Partnership Progress Report (2006 – 2012 YTD)
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A Breakthrough Collaboration:The Economics of Ecosystems
Mark WeickDirector, Sustainability ProgramsThe Dow Chemical Company
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17May 1, 2023
Driving the Next Generation of ChangeDow’s 2015 Sustainability Goals
Achieve at least three breakthroughs that will significantly
help solve world challenges
Publish product safety assessments
for all products
Achieve on average a 75% improvement of key
indicators for EH&S operating excellence from 2005 baseline
Achieve individual community acceptance ratings for 100% of Dow sites where we have a
major presence
Reduce our energy intensity 25%
Increase the percentage of sales to 10% for products that are highly advantaged by sustainable chemistry
Maintain absolute greenhouse gas emissions below
2006 levels
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Valuing Nature – A Strategic Fit for Dow
•Access to ecosystem services •Product alignment to fit growing need•Project planning and stakeholder buy-in•Expansion/Permitting Process•Green Infrastructure•Remediation•Conservation Activities•Recognition of offsets or payments from ecosystem services on lands Dow owns
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Pilot #1: Dow Texas Operations, Freeport
• Freshwater
• Coastal natural hazard protection
• Air pollution mitigation via reforestation
Freeport
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2 4 6 8 10 1240
5060
7080
90Month
Tem
pera
ture
(F)
= potential range in 2050
= current average
Future Scenarios: Freshwater
More demand Less supplyhttp://www.nysun.com/opinion/houston-new-york-has-a-problem/81989/
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Freshwater Analysis
Water Availability Model (W
AM)
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Freshwater: Planning for Future Water
• Future value of water• On-site / off-site responses with greatest net benefit
Jennifer Molnar
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Freeport Coastal Area
Plant BOyster Creek
Stratton Ridge
Plant A
Brazoria National Wildlife Refuge
San BernardWildlife Refuge
Outside of levee system
Largest Undeveloped
ParcelLake Jackson
Freeport Seaside
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Coastal: Hypothetical Output from Cost-Benefit Analysis
Biodiv
ersity
/ESInd
icator
NetP
resen
tValu
e
PublicRecreation orFisheriesPublic Natural HazardMitigationDow Natural HazardMitigation
Do Nothing BuildMini-levees Restore/protect marshRestore/protect marsh
BuildMini-levees+
0
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Air Quality
AIR QUALITY
Evaluating large-scale tree planting for air quality improvement
Expected output: •Cost-benefit and feasibility
analysis of “green infrastructure” project
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Air Quality at Freeport: The Issues
• Freeport located in Houston-Galveston-Brazoria (HGB) non-attainment area for ground-level ozone (8-hr NAAQS)
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Air Quality: Drivers of ozone levels
• Precursor emissions (NOx, VOC)
• Rising temperatures: – urban expansion/built-up– regional climate change
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Air Quality: Reforestation
• Trees remove ambient pollutants (ozone, PM, NO2, SO2, CO)
• We can quantify this removal
• Tree planting is an EPA-approved measure for inclusion in SIPs for ozone
7bigspoons.com
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Air Quality: Identify best sites for reforestation
• Biggest ozone and precursor removal
• Credit/offset generation for Dow
• Open land available for reforestation
• Suitability for reforestation • Conservation gains • Costs
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Pilot #2: Brazil“Project Cabana”Dow-Mitsui JV: Santa Vitória Açúcar e Álcool (SVAA)
Polyethylene production from sugarcane Cultivation area: 200,000 hectares • Properties leased from local land owners.
Average property size: 200 hectares
Commitment to Brazil Forest Code • Designation of permanent preservation areas
(~20% land) • Tree replanting (10 for each tree removed) • Current regulation: Parcel-by-parcel basis
(inefficient)
Collaboration High-level Goals: • Develop an optimum selection of land for
sugarcane and conservation and implement with government approval.
• Optimize generation and value of ecosystem services to Dow and external beneficiaries, minimize farming cost
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Questions?
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Jennifer Molnar