Richard Black BBC News 13 Jul 10;
Businesses can and should take a key role in stemming biodiversity loss around the world, a report concludes.
The latest report from The Economics of Ecosystems and Biodiversity (Teeb) project argues that many sectors have a stake in protecting nature.
A survey by Pricewaterhouse Coopers (PwC) finds that in some nations, more than half of CEOs see nature loss as a challenge to business growth.
The UN-backed Teeb project presents its latest results in London on Tuesday.
The first Global Business of Biodiversity symposium, held at the Excel Centre in London's Docklands, will hear that about half of European and US consumers say they would stop buying products from companies that disregard biodiversity concerns.
"Better accounting of business impacts on biodiversity, both positive and negative, is essential to spur change in business investment and operations," said Joshua Bishop, chief economist of the International Union for the Conservation of Nature (IUCN) and co-ordinator of the Teeb for Business report.
"Smart business leaders realise that integrating biodiversity and ecosystem services in their value chains can generate substantial cost savings and new revenues, as well as improved business reputation and license to operate."
Mining for positives
Among the "smart companies" to be discussed at the symposium is Rio Tinto, a mining conglomerate whose reputation (like others in the field) has been criticised on environmental and human rights grounds.
In 2004, the company adopted a "Net Positive Impact" (NPI) commitment on biodiversity.
This sees it working with environment organisations to protect important areas from direct mining impacts and putting funds into conservation to "offset" damage caused.
Another is the agribusiness giant Syngenta, which recently launched Operation Pollinator, a scheme to restore important bee habitat.
The scheme is seen as a potential contribution to curbing the ongoing bee decline in Europe and North America.
One recent study put the global value of insect pollinators at $189bn per year - a classical example of the kind of "ecosystem service" that nature provides for free, and that humans would have to pay to replace if the natural system broke down.
There are others. The World Atlas of Mangroves, published on Tuesday, puts the value of mangroves at up to 9,000 per hectare per year.
Items in the credit column including protection from storms, habitat for young fish, and carbon storage.
Teeb has calculated the annual value of forest loss around the world at $2-5 trillion.
Plants and machinery
Teeb, and the UN Environment Programme to which it is affiliated, argue that this kind of analysis makes nature protection a good investment for businesses.
Consumer opinion could be another factor.
A recent Ipsos survey found that in countries possessing high levels of biodiversity, awareness of biodiversity decline was correspondingly high, rising to 90% in Brazil.
Among business leaders, the PwC survey found that more than half of CEOs in Latin America see declines in biodiversity as a challenge to growth.
But the figure drops to 20% in Western Europe, and just 15% in the UK.
And only two of the world's largest 100 companies see biodiversity and ecosystem loss as a strategic issue.
"Businesses need to start thinking about ecosystems as an extension of their asset base, part of their plant and machinery, and appreciating the value they deliver," said Jon Williams, PwC's partner for sustainability and climate change.
Teeb's leader, Deutsche Bank economist Pavan Sukhdev, believes companies will find it easier to invest in biodiversity protection once a mechanism for Reducing Emissions from Deforestation and forest Degradation (Redd) becomes established through the UN climate convention.
Many countries favour a variant called Redd-Plus where issues such as biodiversity and forest peoples' rights would be protected.
"We can move to a stage where big companies and countries are able to say 'we're meeting 20% of our emissions targets' or whatever it might be through investing in green carbon," he told BBC News.
"Then we can look at other issues, such as the forest's water storage function for local people, for example.
"So it won't be a market in the classical sense but it will be a mechanism, and companies investing would be able to see whether their investments bring about things such as an improvement in water availability or an increase in the tiger population or whatever it might be."
Teeb will produce its final report for October's meeting of the UN Convention on Biological Diversity (CBD) in Japan, which will see governments examining the reasons why they have failed to live up to their 2002 pledge to curb nature loss by 2010.
Sustainable management of biodiversity key to business: TEEB
TRAFFIC 13 Jul 10;
London, UK, 13 July, 2010—More than 80 percent of consumers surveyed said they would stop buying products from companies that disregard ethical considerations in their sourcing practices, according to a recent survey highlighted in the latest study for business by The Economics of Ecosystems and Biodiversity (TEEB) project.
The report also found rising awareness among consumers about biodiversity loss, with 60 percent in America and Europe and 90 percent of those surveyed in Brazil aware of the problem.
“Sustainable sourcing is becoming the principal reason why some consumers chose one product over another and businesses should take note,” said Steven Broad, Executive Director of TRAFFIC.
“Sustainable harvesting lies at the core of TRAFFIC’s mission, and has been central to the development of various conservation initiatives, such as the FairWild Standard for harvesting of wild plants.”
The TEEB study also found that business leaders in biodiversity-rich developing economies were concerned about losses of “natural capital.”
Over 50 percent of Chief Executive Officers (CEOs) surveyed in Latin America and 45 per cent in Africa regarded declines in biodiversity as a challenge to business growth. In contrast, fewer than 20 percent of their counterparts in western Europe shared such concerns.
The “TEEB for Business” report indicates that scrutiny of big business and its impacts on the world’s natural capital is likely to intensify as better evaluations and assessments come to the fore.
“Better accounting of business impacts on biodiversity—both positive and negative—is essential to spur change in business investment and operations,” said Joshua Bishop, the TEEB for Business report co-ordinator and Chief Economist of IUCN.
“Smart business leaders realize that integrating biodiversity and ecosystem services in their value chains can generate substantial cost savings and new revenues, as well as improved business reputation and licence to operate.”
The TEEB for Business report is available at www.teebweb.org.
The TEEB project is hosted by the United Nations Environment Programme and supported by the European Commission; the German Federal Environment Ministry; the UK Government’s Department for Environment, Food and Rural Affairs; UK Department for International Development; Norway’s Ministry for Foreign Affairs; The Netherlands’ Interministerial Program Biodiversity; and the Swedish International Development Cooperation Agency.
Green Goes Mainstream: Biodiversity Is Climbing the Corporate Agenda
UNEP 13 Jul 10;
Companies with 'Net Positive Impact' on Biological Diversity are Winners in Resource-Constrained World
One in four global CEOs sees biodiversity loss as a strategic issue for business growth: Latin American and African CEOs are most concerned about impacts of biodiversity loss on business growth prospects—European CEOs are least concerned
The Economics of Ecosystems and Biodiversity (TEEB) for Business Report
13 July, 2010 -
Business leaders in biodiversity-rich developing economies are concerned about losses of 'natural capital', a new report to be launched Tuesday highlights.
Over 50 per cent of Chief Executive Officers (CEOs) surveyed in Latin America and 45 per cent in Africa see declines in biodiversity as a challenge to business growth. In contrast, less than 20 per cent of their counterparts in Western Europe share such concerns.
The findings, compiled by a study of The Economics of Ecosystems and Biodiversity (TEEB), indicate that those corporate chiefs who fail to make sustainable management of biodiversity part of their business plans may find themselves increasingly out of step with the market place.
Another recent survey, also spotlighted in the TEEB report for business, shows rising interest among consumers with 60 per cent of those surveyed in America and Europe and over 90 per cent in Brazil aware of biodiversity loss.
Over 80 per cent of those consumers surveyed said they would stop buying products from companies that disregard ethical considerations in their sourcing practices.
The "TEEB for Business" report indicates that scrutiny of big business and its impacts on the world's natural capital is likely to intensify as better evaluations and assessments come to the fore.
The UK-based consultancy TruCost, on behalf of the UN's Principles for Responsible Investment, is set to publish a study on the activities of the world's top 3,000 listed companies, estimating that their negative impacts or 'environmental externalities' total around US$ 2.2 trillion annually.
Pavan Sukhdev, the TEEB Study Leader and also head of UNEP's Green Economy Initiative said: "Through the work of TEEB and others, the economic importance of biodiversity and ecosystems is emerging from the invisible into the visible spectrum. It is clear that some companies in some sectors and on some continents are hearing and acting on that message in order to build more sustainable, 21st century businesses".
The report, entitled "TEEB for Business" and part of a suite of reports being launched in the UN's International Year of Biodiversity, calls for companies to embrace concepts such as 'No Net Loss'; 'Ecological Neutrality' and ultimately 'Net Positive Impact' on the environment.
Achim Steiner, UN Under-Secretary General and Executive Director of UNEP which hosts TEEB, said: "We are entering an era where the multi-trillion dollar losses of natural and nature-based resources are starting to shape markets and consumer concerns. How companies respond to these risks, realities and opportunities will increasingly define their profitability; corporate profile in the market-place and the overall development paradigm of the coming decades on a planet of six billion, going to over nine billion people by 2050".
Julia Marton-Lefevre, TEEB advisory board member and Director General of IUCN, which coordinated the TEEB for Business report, urged companies attending the 1st Global Business for Biodiversity Symposium at the Excel Centre in London on 13 July to back new and transformational policies such as those outlined in the report.
"Together governments and business, in both developed and developing economies, can show leadership by establishing networks of committed corporations across all sectors dedicated to achieving a 'Net Positive Impact' on biodiversity and ecosystem services".
The TEEB report cites the case of the multinational mining giant Rio Tinto as one company that has committed itself to achieving Net Positive Impact on biodiversity. In association with leading conservation experts the company has developed new ways of assessing the biodiversity values of its land holdings, and has begun to apply biodiversity compensation or 'offset' methodologies in Madagascar, Australia and North America.
Other companies with similar commitments on biodiversity include Walmart (Acres for America initiative), Coca Cola (water neutral by 2020) and BC Hydro (no net incremental ecological impact).
In addition to minimizing and mitigating adverse impacts, business can also generate revenue from conserving biodiversity and delivering ecosystem services. Agriculture, forestry and fisheries all depend on healthy ecosystems to ensure healthy profits.
The tourism sector has a major stake and role to play in conserving biodiversity. Realising its reliance on the biodiversity rich but fragile coral reefs, Chumbe Island Coral Park Ltd in Tanzania has invested over US$ 1.2million to establish a marine park to protect the corals surrounding Chumbe Island. The company actively supports park management as well as its own resort facilities.
The "TEEB for Business" report, which will form part of a final TEEB synthesis report to be launched at a meeting of the Convention on Biological Diversity in Nagoya, Japan in October 2010, calls on professional associations to develop new accounting and reporting tools for business.
The measurement and valuation of biodiversity and ecosystem services in business is improving. The report recommends that accounting professions, financial reporting bodies and others should accelerate efforts to develop common standards and metrics to enable business to assess and disclose their biodiversity impacts and responses in annual reports.
Joshua Bishop, the TEEB for Business report coordinator and Chief Economist of IUCN, said:
"Better accounting of business impacts on biodiversity – both positive and negative - is essential to spur change in business investment and operations. Smart business leaders realise that integrating biodiversity and ecosystem services in their value chains can generate substantial cost savings and new revenues, as well as improved business reputation and license to operate."
In another recent report by the World Business Council for Sustainable Development, business leaders expressed their vision of a sustainable future, which include "prices that reflect all externalities: costs and benefits" (WBCSD Vision 2050).
Steps in this direction are already being taken, as evidenced by the growth of markets for biodiversity and ecosystem services. Market data compiled by Forest Trends and the Ecosystem Marketplace showed:
• The certified agricultural products market was valued at over US$ 40bn in 2008 and may reach up to US$ 210bn by 2020.
• Biodiversity offsets, such as wetland mitigation banking in the United States or 'bio-banking' in Australia, are predicted to rise from US$3 billion in 2008 to US$ 10 billion in 2020.
• Bio carbon/forest offsets including REDD are expected to rise from just US$21m in 2006 to over $10bn in 2020.
Starting today, businesses can show leadership on biodiversity and ecosystem services by:
1. Identifying their impacts and dependencies on biodiversity and ecosystem services
2. Assessing the business risks and opportunities associated with these impacts and dependencies
3. Developing BES information systems, set targets and report results
4. Taking action to avoid, minimize and mitigate BES risks
5. Integrating BES actions with wider Corporate Social Responsibility initiatives
6. Engaging with business peers and stakeholders to improve guidance and policy
7. Grasping emerging BES business opportunities
The TEEB for Business report will be launched at the first Global Business of Biodiversity Symposium on 13 July at the Excel Centre, London. http://www.businessofbiodiversity.co.uk/
Notes to editors:
The TEEB for Business report is available at www.teebweb.org
The lead authors and editors of the TEEB for Business report include staff from Business for Social Responsibility (BSR), Earthmind, the Global Reporting Initiative (GRI), PricewaterhouseCoopers (PwC), the International Union for Conservation of Nature (IUCN), the United Nations Environment Programme (UNEP), and the World Business Council for Sustainable Development (WBCSD).
The survey of CEOs and their attitudes to biodiversity loss was carried out by Price Waterhouse Coopers.
The survey of consumer attitudes to biodiversity and business was carried out by global market survey company IPSOS.
The TEEB project is hosted by the United Nations Environment Programme and supported by the European Commission; the German Federal Environment Ministry; the UK Government's Department for Environment, Food and Rural Affairs; UK Department for International Development; Norway's Ministry for Foreign Affairs; The Netherlands' Interministerial Program Biodiversity; and the Swedish International Development Cooperation Agency.
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