142 engaging business for conservation presentations

1

Engaging Business for ConservationConservation

Conservation Campus #142

11 September 2012

Objective

• Exchange experience on developing a strategy for business engagement

• Provide practical examples of how business and conservation communities are engaging to deliver conservation outcomes

• Explain how to develop partnerships that areExplain how to develop partnerships that are mutually beneficial and enhance brand value of both organizations

• How to communicate and train business on ecosystems

Agenda

1. Welcome and introduction

2. Risk and Opportunities of engaging business

3. Business Engagement in practiceg g p

4. Create sustainable brand value for business

5. Training business on ecosystems

Engaging Business for Conservation: Risks and Co se at o s s a d

Opportunities

Gerard Bos, Head – Global Business and Biodiversity Programme, IUCN

September 2012

Overview

• Matching conservation and business goals

• Developing a strategy for business engagementg g

• Selecting a business partner

• Formalizing the engagement

Figure 1 – Steps in IUCN Operational Guidelines for Private Sector Engagement

Matching goals

Key factors for success:

Understanding your added value • Organizational assets

• Value Proposition

• What you can do

Understanding the business

• Business impacts and dependencies

• Opportunities for business in conservation

• What the business can do

Identify shared and added value

2

Developing a strategy

Why a Strategy?

How to develop a pStrategy?

How to use a Strategy?

Developing a strategy

Why a Strategy? To ensure that engagements are a means to a wider conservation goal. To protect your reputation. To ensure effective use of (generally scarce) resources.

How to develop a Strategy? It depends on your type of organization: If membership-based, you will need to engage in consultations with your members Even ifengage in consultations with your members. Even if not, involve those who will work with business as well as business entities. Ensure that the Strategy is in line, builds on and supports your main conservation programme.

How to use a Strategy? It should be your compassin selecting projects and partners. Not a replacement for detailed project concepts or workplans.

IUCN Strategy• IUCN’s first strategy was issued in 2004

• The IUCN Council requested a new Strategy in 2011

• A first concept was developed with members of the Council and used to request input from IUCN Members, Councillors and partners (mostly businesses)

With the input received a small design team drafted• With the input received, a small design team drafted version 1 which was subsequently revised by the Council and discussed during a workshop

• The final Strategy was approved by Council in April 2012

• The strategy builds on IUCN quadrennial programme as well as on past experiences working with business

Key elements of a strategy

Clear aims, objectivesThe IUCN Business Engagement strategy aims to encourage transformational and demonstrable changes at the company and sectoral level in how biodiversity is valued and managed by businesses in order to conserve and restore biodiversity and to ensure that biodiversity benefits are shared equitably.

Purpose:Purpose:To provide IUCN with a coherent framework for influencing the business sector, a clear reference point as to the level of ambition expected from the business engagements, and a consistent approach to the management of reputational risks and quality assurance.

Key elements of a strategy

Well defined theory of changeIUCN’s BES has three interconnected entry-points, all linked to one central objective: business practices at the landscape and seascape level are transformed to generate benefits for biodiversity and natural resource-dependent livelihoods.

Entry Point 1: Triggering changes on the ground

Entry Point 2: Leveraging supply chains

Entry Point 3: Influencing public & financial policies

Key elements of a strategyClear implementation strategy• Engage with a few selected

leaders in priority sectors to develop or adapt, field test and pilot tools and approaches.

• Building on best practices, work with a group of companies within selected sectors and industry associations to develop, adopt and promote voluntary standards.

• Directly engage with public policy and the financial sector to promote a progressive and level playing field in terms of regulations and finance.

3

Selecting a business partner

• Developing an engagement concept (what are the conservation challenges that can beaddressed through an engagement withbusiness?)

• Assessing potential business partnerso Is the company well placed to help deliver the

concept? Are they committed to a step change?

o Are there shared goals and opportunities to add value?

• Performing a due diligence to identify possible sources of risk & opportunities

• Preparing a risk management strategy

Which company should we work with?

Due Diligence• A step to enable “informed decisions” on how to

progress discussions with business

• Allows a better understanding of the business and its operations

• Identifies any past, present, and predictable future sources of risk to the organization arising from an engagement with the business

• Helps identify opportunities of engaging and potential areas of joint work

What should be included?

1. Scope

2. Company description

3. Company impact on biodiversity and ecosystem services

4. Social and environmental policies, standards and public commitments

5. Environmental and social performance

6. Company reputation

7. Initial assessment of the company’s commitment to corporate responsibility

8. Overview of potential risks

9. Indications of points that could be further investigated

Risk and Opportunity Matrix

The position of the red dot will move on answering the questions according to the risk and opportunities of engaging a given companyResults in the tables above are

generated by answering the risk and opportunity questions

Formalizing the engagement

• Develop a project concept which includes:• Aim and objectives

• Key areas of cooperation

• Expected outcomes and how they will contribute to your conservation goals

• Formalize the engagement through an i t h i ( M d fappropriate mechanism (e.g. Memorandum of

Understanding, Contract, Agreement, etc.)

• Ensure transparent and regular communication with your constituency during entire process

How do we formalize

our engagement?

A good contract includes…

• SMART (Specific, Measurable, Achievable, Realistic and Time-bound) results

• Roles and responsibilities for realizing results• Capacity and resource requirements on both

sides• Indicators for monitoring and measuring

performance progress and resultsperformance, progress and results• A clause that allows public communication

regarding any issues which may or may not involve the business entity

• A process for addressing breach of contract• A termination clause• A mechanism for raising grievances from third

parties• An independent final evaluation

4

Top Tips• Be transparent• Work with the business from the beginning and

throughout the project (don’t treat them like donors!)

• Conduct a situation analysis – what are the impacts and dependencies? Assess the “additionality”?additionality ?

• Assess and manage your risks• Aim at establishing true partnerships – ensure

that there are mutual benefits from working together

• Celebrate success• Communicate throughout

Resources for more information

IUCN Business engagement Strategy

http://data.iucn.org/dbtw-wpd/edocs/Rep-2012-001.pdf

Operational Guidelines for Private Sector EngagementEngagement

http://cmsdata.iucn.org/downloads/ps_20guidelines.pdf

Global Business and Biodiversity Programme

http://www.iucn.org/business

Thank you!Kamsa hamnida!

www.iucn.org/congress

감사합니다

1

Tuesday 11 September 2012

ECOLABORATION™Review 2012 -outlook 2013

To cover today

• Strategic rationale for Ecolaboration™

• AAA: our unique approach to sourcing

high quality coffee and cocoa

P2

high quality coffee and cocoa

• Club member engagement and

stakeholder management

• Outlook 2013 and beyond

Ecolaboration™: Strategic rationale

• Integrating Nestle CSV approach into the Nespresso model

• Securing access to and smart use of

P3

Securing access to and smart use of resources

• Adding value to the Nespresso brand

Ecolaboration™: part of the Nestle CSV

“Nespresso’s innovative program is not driven by charity but by creating value”

Michael Porter

Professor of Business Strategy

Harvard Business school

P4

Michael Porter at the Third Nespresso AAA Sustainable Quality™ Forum

“A good example of such new procurement thinking can be found at

Nespresso, one of Nestlé’s fastest growing divisions”

Ecolaboration™: securing access to and smart use of resources

-16% Vs 2013 commitment

of -20%

61% Vs 2013 commitment

of 80%

P5

74% Vs 2013 commitment

of 75%

Securing reputation

Ecolaboration™: adding value to the Nespresso brand

Using Ecolaboration™ to protect the company reputation among key opinion leaders activists

P6

Building

trust

leaders, activists and media

Using Ecolaboration™ to convince club members and prospects

2

To cover today


• AAA: our unique approach to sourcing high quality coffee and cocoa

P7

• Club member engagement and stakeholder management


1. Long term supply of quality

2. The sustainability challenge

There are 3 main challenges in the specialty coffee sector…

… facing Nespresso in particular

P8

3. Profitability of smallholders

The AAA Sustainable Quality™ Program responds to these challenges

… in a pragmatic way,

with the farmers at the center

P9

The AAA Program: a pragmatic approach to sustainable quality

P10


P11


P12

3

In ten years the program has expanded to 50’000 farmers in 7 countries

Mexico1 cluster2’176 farms

Nicaragua2 l t

50’000 farms

7 countries

20 clusters

Today(Q2 2012)

50’000 S-A

3’500 Tasq

190 agronomists

200’000 Hectares

P13

Ethiopia1 cluster (forming)2’200 farms

2 176 farms

Guatemala2 clusters1’344 farms

Costa Rica4 clusters3’361 farms

Colombia4 clusters37’994 farms

Brazil6 clusters1’798 farms

India2 clusters64 farms

2 clusters94 farms

70’000 farmsEnd 2013

70’000 S-A

7’000 Tasq

250 agronomists

On cocoa, the program started in 2009 with the objective of all clusters AAA in 2013

Indonesia by end 2012

“Grands Crus only”

Tanzania ( 2013)

“Grands Crus / Variations”

•Sensory : Round and mild cocoa

•Coops of smallholders TBD

•36 t /year

•Trade partner : TBD

P14

Brazil –Bahia since 2009“Grands Crus only”

• Sensory : Strong cocoa and bitter, with a complex dried fruit and refreshing herbal aromatics• 1 plantation 400 ha• 12t /year• Performance RA: DEFICIENT(68% TASQ incl.5 critical criteria) => certification level by 2015• Trade partner : EFICO

Madagascar since 2011“Grands Crus / Variation”• Sensory : Strong acidity, balanced between cocoa and fruity (lemony)• 4 coops => 120 s/h• 9t /year• Performance RA : Deficient (25% TASQ performance incl.7 critical criteria )Trade partner : TOUTON

Grands Crus only

•Sensory : Strong cocoa and bitter with gingerbread aromatics

•1 plantation 1’400 ha

•12t /year

• Trade partner : Armajaro

In 2012, Nespresso will source 66% of its coffee from AAA and 18% AAA RA

Brazil35%

Central America21%

Africa10%

Mexico3%

India3%

A large disparity between Colombia and other countries

P15

Colombia28%

Coffee Volume distribution

Number of AAA Farms

Results: Quality up and rejection down

P16

Results: high rate of farmer satisfaction

Colombian grower satisfaction with sustainability initiatives (% satisfied)

% of coffee sold to Nespresso,among AAA growers

P17

Percent AAA farmers who return sell their coffee to Nespresso

Nespresso Corporate web site

Results: progress on sustainable agriculture

% farms complying with specific environmental practices

P18

Environmental performance of AAA farms vs. non AAA (out of 100)

4

Results: supporting innovation pipeline

P19

Results: supporting innovation pipeline

P20

To cover today



P21

• Stakeholder management and Club member engagement


We are progressively building credibility with stakeholders

P22AAA farmers awarded at the RA gala

The Alucycle™ commitment is building Nespresso credibility on sustainability

P23

AAA commitment secured reputation during the Solidar attack

P24

5

We are progressively building club member awareness

Recycling initiative 79% +50pts

Awareness 2009 vs. 2011

29%

P25

AAA program

Ecolaboration™

+29pts

35% +26pts

42%13%

9%

CM awareness of Ecolaboration™ initiatives drive expertise perception and Net Promoter Score

Total Current

Members

Aware of the Ecolaboration

programm

Yes and I know

exactly what it is

Base 13299 4277 961

ST NPS score 54% 62% 64%

P26

7 9% 7% 8%

8 19% 17% 14%

9 22% 22% 21%

You would certainly recommend Nespresso 41% 46% 51%

TO COVER TODAY



P27

• Stakeholder management and Club member engagement


Outlook

• 2013 focus on AAA 10th anniversary to further build reputation and trust

• Achievement of Ecolaboration target

P28

• Achievement of Ecolaboration target for carbon

• Definition of next phase strategy

Media Trip field

HBRAcademic Symposium

June

NMag

July

Fifth AAA Forum

Sep

Santander

Using AAA 10th anniversary to engage stakeholders

TEN YEARS OF NESPRESSO AAA

Dec

NMagMBA challenge

Securing

reputation

P29

March

Farmers in Europe

July

Photo exhibition

Dec

Book

TEN YEARS OF NESPRESSO AAA

Social media campaign

reputation

Building

trust

Social media campaign

1

RAINFORESTALLIANCEConserving Carbon, Engaging

Businesses for Positive Climate Impacts in Forestry and Agriculture

RAINFORESTALLIANCEConserving Carbon, Engaging

Businesses for Positive Climate Impacts in Forestry and Agriculture

©2009 Rainforest Alliance

Impacts in Forestry and Agriculture

IUCN World Conservation Congress 2012 Conservation Campus 142

Jeffrey Hayward, [email protected] Program Director

September 11, 2012, Jeju, Korea

Impacts in Forestry and Agriculture

IUCN World Conservation Congress 2012 Conservation Campus 142

Jeffrey Hayward, [email protected] Program Director

September 11, 2012, Jeju, Korea©2009 Rainforest Alliance

©2009 Rainforest Alliance

VALUE CHAIN APPROACH

Auditing / certification / verification Ch i f t d Marketing support

Capacity Building

&

Technical Assistance

Certification

&

Sustainability Standards

Market development

&

Corporate engagement

Training and support for producers

verification Chain of custody -traceability

Corporate engagement

Marketing support and brand awareness

producers / processors buyers / exporters / importers distributors / brands / retailers / industry groups consumers

LAND USE PRACTICES BUSINESS PRACTICES CONSUMER BEHAVIOR

BUSINESS COLLABORATIONS

Incentivize agricultural

adaptation and

7

pmitigation

2

Promote sustainable

forest

8

forest management

Support credible carbon

9

markets

BUILDING CAPACITY TO ENABLE REDD+

Strengthen international

10

REDD+ framework

WHAT CAN NGOS BRING TO

BUSINESSES COMMITTED TO

CLIMATE CHANGE ACTION WITHIN

11

CLIMATE CHANGE ACTION WITHIN

THEIR SUPPLY CHAINS?

NGO INFLECTION POINTS

POLICYPOLICYCOMMUNICATECOMMUNICATE

12

ASSESSMENTASSESSMENT

IMPLEMENTIMPLEMENT

VERIFYVERIFY

BUILDING COMPANY CLIMATE POLICIES

• Map out a climate policy

• Identify climate risks in supply chain

POLICYPOLICYCOMMUNICATECOMMUNICATE

• Recommend emission reductions targets

• Advocate for quality carbon offsets

13

ASSESSASSESS

IMPLEMENTIMPLEMENT

VERIFYVERIFY

3

ASSESSING BASELINE CONDITIONS

• Life Cycle Assessment

• Carbon Footprinting

ASSESSASSESSPOLICYPOLICY

• Needs for technical assistance

• Feasibility of mitigation/adaptation

14

IMPLEMENTIMPLEMENT

VERIFYVERIFY

COMMUNICATECOMMUNICATE

IMPLEMENTING ACTIONS

• Technical assistance

• Promote best practice

IMPLEMENTIMPLEMENTASSESSASSESS

• Carbon project development

• Link investors to projects

15

VERIFYVERIFY


POLICYPOLICY

VERIFY, MONITOR, REPORT

• Monitor and evaluate progress

VERIFYVERIFYIMPLEMENTIMPLEMENT

• Impact and research

• Ensure conformance to verification

16


POLICYPOLICY

ASSESSASSESS

VERIFY, MONITOR, REPORT

• Press and social media

COMMUNI‐CATECOMMUNI‐CATEVERIFYVERIFY

• Publications

• International networks

17

POLICYPOLICY

ASSESSASSESS

IMPLEMENTIMPLEMENT

The Rainforest Alliance works to conserve biodiversity and ensure sustainable livelihoodsby transforming land-use practices, business practices and consumer behavior.

The Rainforest Alliance works to conserve biodiversity and ensure sustainable livelihoodsby transforming land-use practices, business practices and consumer behavior.

[email protected]

[email protected]

1

Scientific Rigour vs. Practicality

Conservation Campus 142, WCC, Jeju

11 Sep 2012

Christoph Imboden

Grey area…

Rigour

● harsh, but just

● severe or cruel circum‐stance

● strictness in judgment or conduct

● Mathematics, Philosophy,

Practicality

● usefulness ‐ the quality of being of practical use

● functionality ‐ capable of serving a purpose well

● viability ‐ capable of being done in a practical

ChI / Slide 2WCC, Jeju, Sep 2012

, p y,Logic: logical validity; accuracy

Robustness

● the characteristic of being strong enough to withstand intellectual challenge

way

● sensibleness ‐ the quality of showing good sense or practical judgment

● realism, pragmatism ‐the attribute of accepting the facts of life

The law of the diminishing return

Scientific accuracy

100%

80%


Time invested

60%

40%

20%

Engaging with business on biodiversity

1. Convince that biodiversity has something to do with them

2. Motivate them that they should do something

– not how much harm they cause, but…

– what they can positively do for biodiversity


3. Steer them towards “quick wins”

4. Show the benefits of a systematic and integrated approach

5. Demonstrate that implementation is affordable and that simple methods can lead to meaningful outcomes

6. Team up with them to scale up: influencing industry standards and regulatory meachanisms

Biodiversity Management System ‐ BMS

Biodiversity Policy Principles

Planning cyclePlanning cycle Operational cycleOperational cycle

OpportunityImpact

Biodiversity Action:


Opportunity Study Feasibility

Study

StudyBiodiversity Action:

EMP, BAP, Rehabilitation

Biodiversity Inventories Biodiversity Monitoring

What are the biodiversity risks?

How can we avoid them?

How can we seize bio-diversity opportunities?

Biodiversity inventories

List of all vertebrates & higher plants

List of all vertebrates & higher plants throughout all seasons

Abundance of vertebrates & higher plants

Research scientists

Conservation scientists


Conservationpragmatist

Presence of threatened species

List of sp. characteristic for habitats

List of all vertebrates & higher plants

Habitat maps

Few sites All sites

scientists

Company

2

Holcim boundary conditions

● 520 sites ‐ worldwide distribution (>70 countries)

● Very different types of quarries

– from sand to rock, limestone to clay

● Size ranging from 5 1000 ha

● Longevity ranging from <10 years to >100 years


● Surrounding conditions ranging from monocultures to rainforest, industrial to urban areas

● Variety of jurisdictions and regulations

Biodiversity importance categories

1 Occurrence on site or within 5km or with relevant ecological connections to:

– globally threatened sp. (IUCN Red List)– overlapping with / adjacent to internationally recognised PA– Globally outstanding ecosystem / habitat

2 Occurrence on site or within 5km or with relevant ecological connection to:

nationally threatened rare sp


– nationally threatened, rare sp.– nationally protected (recognised) area, reserve etc– nationally important ecosystem / habitat

3 Site:– in landscape with diverse, natural ecosystems – in modified landscape with potential for biodiversity

enhancement (biodiversity island)– with significant local value of the natural environment

4 Site in heavily modified, intensely managed landscape

Biodiversity Risk Matrix

Expected Impact

A B C D

Biodiversity importance

Likely impact; mitigation not possible

Likely impact; mitigation possible

Possible imp.; mitigation recommended

Unlikely impact

Risk to biodiversity value of site and/or surrounding area


1 Critical Significant Medium Low

2 Critical Significant Medium Low

3 Significant Medium Low Low

4 Low Low Low Low

Monitoring and reporting system

Key requirements

● Meaningful, but straightforward to measure

● Sensitive to changes in management and/or protection

● Measurable by means of a simple methodology

● Largely assessable by non experts (Holcim staff)


● Largely assessable by non‐experts (Holcim staff)

● To be expressed by standardised value

● Must fit into existing environmental reporting

● Allowing aggregation on national and global levels

Dilemmas and trade‐offs

Sound science (cause/effect)

rigo

ur

Minimum standard

DesirableMonitoring &

Indicator

Practicality, simplicity Scientific rigour

Affordable Expensive


Limited meaning

Sci

entif

ic r

PracticalityVery involved, requiring expertise knowledge

Simple methods, to be done by

non-experts

Min

imum

sta

ndar

d

Expectationslocal communities

Expectationsconservation community

Needs/wishes of the company

Legal requirements

BIRS – principal idea

INVENTORY

Habitat extent

ESIA

10‐year repeats

Annual

Local experts

Holcim staffALLSITES


Habitat condition

Habitat uniqueness

Species/habitats of special concern

BIODIVERSITY CONDITION INDEX

5‐10 yrs

Annual

Annual

Local experts

Local expert

Holcim staff

Sites with special

biodiversity management

3

Habitat condition

● Condition assessment

– Two persons (non‐experts) to walk independently for 30‐60 minutes through each of the habitats.

– Same season and time of day, similar weather condition

– 10‐15 questions about each habitat type to be answered on a scale of 1‐4 (implying poor to good condition) on the


a scale of 1‐4 (implying poor to good condition) on the basis of visual guidance notes.

– 2‐3 fixed point photo for reference

● Condition of each habitat: mean of all values

Pictorial guides for assessing habitat condition

Are there other non‐woody flowering species consisting of…

only one species? two species? three species? more than 3 species?

2 out of 10‐15 questions

42 31

Score

ChI / Slide 14WCC, Jeju, Sep 2012WCC, Jeju, Sep 2012

Are the shrubs and/or trees growing above the height of the grasslayer …

virtually across the whole site?

abundantly found across the site?

sparsely spread across the site?

occurring as a very few isolated individuals?

42 31

Indicative wetlands questions

1 2 3 4

How many different wetland zones can you distinguish?

1 2 3 > 3

What is the water colour? Intense Distinct Light No colour

What is the turbidity of the water?

Very cloudy Cloudy Slightly cloudy

Clear


How do the floating plants appear?

Dead & decaying

More than half brown & dying

Less than half brown & dying

All healthy

Do you see any invasive wetland plants?

Dense Many A few None

Do you see any dragonflies? None A few; one species

Some; > 1 species

Many; several sp.

Are waterbirds present? None Some; 1 sp. Many; 1 sp.

Some; >1sp

Many; se‐veral sp.

Aggregation of KPIs

Global Biodiversity KPI

Country ANational Biodiversity KPI

Country BKPI

Adjustments / weightings for:

• Relative biodiversity importance of region

• Relative biodiversity importance of country


National Biodiversity KPI

Site 1 Biodiversity IndexKPI

Habitat value A

Habitat value B

Habitat value C

Site 3KPI

Site 2KPI

KPI

• Site heterogeneity, diversity of habitats

• Relative biodiversity value of habitat

within a country

Lessons…

1. Better to have some basic standard information on all sites than to have detailed information on a few sites only and none at all from all others.

2. Keep engaged with partner for continuing reality / practicality check.


3. Involve partner as much as possible in development of ideas.

1

Creating sustainable brand value for companies

Conservation Campus 142Engaging Business for Conservation

IUCN World Conservation Congress

Jeju, South Korea, Sept 11, 2012

EROSEIEconomic Return on Social

EROSEIEconomic Return on Social

© 2012 by GoodBrand and SEMPORA

Economic Return on Social and Environmental

Investment

Economic Return on Social and Environmental

Investment


Critical issue for business:The smart and wise management of reputation

Era > Crisis > Era > Crisis > Era

Context Post-war austerity

70s/80s battleground

Age of Opulence

Financial/ values crisis

Age of Meaning

Consumer Paradigm

“I need” “I want” “I belong”

Citizen-consumers entering a new phase with new expectations from companies and brands


Paradigm

TypicalBrandMessages

- Availability- Consistency- Functionalperformance

? - More- Bigger- Faster- Cheaper

? - Smarter- Fitter- Wiser- Closer- Fairer

These changes will redefine how consumer-facing companies will compete in the future

Brands will need to connect with the most fundamental human values

© 2012 by GoodBrand and SEMPORASource: Roper Data

- to help citizens lead “better” lives:

- more meaningful- more responsible- more future-proofed

BY

We call this “brand social energy”

The opportunity for brands…


- looking after my family- enhancing my/our potential- helping me/us flourish- investing in my future- helping create a positive legacy

HOW- through its products and services, and how they are produced and consumed- through the wider changes it helps create and influence

2

[social equity]

Consumer or public fid i th l

Companies need brands with social equity


confidence in the values and capability of a brand

Companies want to measure their social equity performance


• An online survey representative of all adults including ethical consumer segmentation (25,000 adult ‘consumers’, 12 countries)

• 2000 brands

• Questions on social and environmental performance..


performance..

• …as well as brand energy, preference, loyalty

• Calculation of an index to give a single figure and relative score

The opportunity /chance – building credibility and trustThe 6 factors of social equity


Future shapersTrustedleaders

High integrity

but lacking dynamism

The social energy grid


Brand energy

Social equity

FollowersDynamic but

with questionable

integrity

High integrity but

lacking dynamism

Trusted leaders

l Equity

The Social Energy Grid

Perception of company/brand as ‘force for good’

Social Equity

Measuring brands as a force for good and a force for change


Followers

Dynamic but with

questionable integrity

Brand Energy

Social

Trusted leaders are perceived as a force for good and a force for change

They enjoy people’s goodwill

Perception of company/brand as ‘force for positive change’

Brand Energy

3

Social Energy Plot - UK

NGOs dominate the social energy field



Leveraging relationships with trusted NGOs will help brands be seen as a force for good


- Organic own label range for Hofer, Austria (part of Aldi)

-Builds its brand values by engaging consumers

Zuruck zum Ursprung shows how brands can build positive reputations through sustainability actions


by engaging consumers directly with the organisation and its supply chain partnerships, bringing sustainability and community to life for consumers in relevant, interesting ways (e.g. online “meet our farmers” programme)

Social Energy Plot: Dairy

…reflected in best in class dairy and one of highest environmental performances


Sometimes companies reach a point of realisationits time to change


Companies undergo a period of significant reinvention


4

Social Energy Plot - McDonald's 2008 vs 2010

…leading to transformed brand perception


Coffee companies are boosting their social equity performance by showing their work with partners



This transfers social equity from the partner NGO to the commercial brand


Social Equity Factors: Rainforest Alliance vs Kenco Social Equity Factors: Kenco vs Coffee Average

Kenco coffee UK is getting an environmental transfer effect from its NGO partner


Ensure the correct strategic fit operationally not based on communications

Plan for long term gradual brand evolution

Engage the senior people in the company on planning for brand value creation

F t lit

Thoughts on brand leverage to engage business in partnerships for conservation


Focus on tonality

Important principle 1: Balance

Securing reputation


reputation

Building

trust

5

"If you tell the truth you don't

Important principle 2: Transparency


truth you don t have to remember anything.”- Mark Twain

Important principle 3: Consistency

“It’s the most ambitious commitment ever to help smallholder coffee farmers achieve Rainforest Alliancecertification and improve coffee quality”


Chris Wille, Head of Sustainable Agriculture

The Rainforest Alliance

Nespresso AAA farmers

Meeting Club members in New York

quality

Important principle 4: Humility


1

Business Ecosystems TrainingLearn how to train business on ecosystems

Conservation Campus

11 Sept 2012, 09:00-13:00

Introducing Business Ecosystems Training (BET)

program

The business case for training

72% of CEOs see education as the global development issue most critical to address for the future success of their business

86% of CEOs think that companies should invest in enhanced training of managers to integrate

t i bilit i t t t d ti

3

However, only 60% of them are implementing this

sustainability into strategy and operations

Source: United Nations Global Compact CEO Survey 2010 (based on 766 completed responses)

Rationale for developing BET?

Business both impacts and depends on ecosystems

However, issues tend to be poorly understood

N d t fill k l d

Business

ImpactsDepends

4

Need to fill knowledge gaps

Ecosystems

What is BET?

A comprehensive capacity building program that aims to equip business with the skills it needs to better understand, measure, manage and mitigateecosystem impacts and dependencies

5

Leverages the wealth of existing WBCSD materials, methodologies and tools, also including other resources

Open-source

Who is it for?

Business audience

Different levels of management & seniority

Wide range of departments: from SD to procurement to finance

6

Any professional who needs to manage its company’s risks and

opportunities

2

Program development

Governance: advisory committee made of ecosystem and education experts

7

Curriculum design: by WBCSD member company KPMG

Structure (1/2)

A modular training programModules can be delivered individually or together

MODULE 1

Understanding the links between ecosystem services

and business

MODULE 2

Assessing business impacts and dependencies on

ecosystems

8

MODULE 3

Valuing ecosystem services - an introduction

MODULE 4

Managing and mitigating business impacts on

ecosystems

Structure (2/2)

Customizable Different options for running BET:

As a standalone 2.5 day course

As two separate training blocks, i.e., a 1 day introduction followed by a further 1.5 day course

A t d l

9

As separate modules

Customizable…

…to different sectors

…to different languages

…to different regions

…to your specific audience

What’s in the BET package?

Presentation material• PowerPoint slide packs

approx. 100 slides per module to choose from!

Guidance• Implementation Guide• Facilitator Notes• Glossary of Terms• FAQs• “Facilitation tips” videos

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• Shorter Executive Overview presentation

ac a o ps deos

BET extractsExamples of BET exercises that help

companies relate to ecosystems

Discussion questions

Business Ecosystems Training Score Card My company has been affected by the following challenges:

Water scarcity Yes No Don’t know

Climate change Yes No Don’t know

Habitat change Yes No Don’t know

Biodiversity loss Yes No Don’t know

Overexploitations of oceans Yes No Don’t know

Nutrient overloading Yes No Don’t know

Other:

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Other: ……………………………………………………………………………………………………...

My company benefits upon or impacts on the following ecosystem services:

ProvisioningThe goods or products obtained from ecosystems such as food, freshwater, timber, and fiber

Benefits Impacts Don’t know

RegulatingThe benefits obtained from an ecosystem’s control of natural processes such as climate, disease, erosion, water flows and pollination, as well as protection from natural hazards.


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Discussion questions (cont.)

Business Ecosystems Training Score Card My company has been affected by the following challenges:

CulturalThe non material benefits obtained from ecosystems such as recreation, spiritual values and aesthetic enjoyment


Note: we are not asking this specific question regarding supporting services as these services are underlying the above 3 categories (Supporting services: the natural processes such as nutrient cycling and primary production that maintain the other services)

My company has taken the lead on addressing ecosystems:

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To manage risks Yes No How?…………………

To improve operational efficiencies Yes No How?…………………

To gain business opportunities Yes No How?…………………

Additional actions:………………………………………………………………………………………………………………

My company has considered the long term consequences of ecosystem degradation in its strategy:

Yes No How?……………………………

• Feedback...

14September 2012

Businesses impact on ecosystems and ecosystem services

Ecosystem change creates business risks and opportunities

Business case for action

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Businesses rely and depend on ecosystems and ecosystem

services

business risks and opportunities

Introduction

Issues business can face in daily operations and supply chains:

Water scarcity and declining water quality

Disruption of food, fiber or other natural industrial inputs

Increasing incidents of extreme flooding, storms or drought

Increasing stakeholder expectations (NGOs, customers, investors etc.)

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Tightened public policies on natural resource management or operational permitting

Traditional risk management processes do not always capture ecosystem risks / opportunities

Different risks and opportunities – overview

Business Issue

Operational Legal Reputational Market Financing

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5 key risks / opportunities for

businesses

Company commitmentsRio Tinto:

“ Our goal is to have a net positive impact on biodiversity by minimizing the negative impacts of our activities and by making appropriate contributions to conservation in the regions in which we operate.”Source: http://www.riotinto.com/documents/ReportsPublications/RTBidoversitystrategyfinal.pdf

Sony:

“Sony strives to achieve a zero environmental footprint throughout the lifecycle of our products and business activities.”

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Source: http://www.sony.net/SonyInfo/csr/environment/management/gm2015/index.html

Kimberly-Clark:

“100% of the virgin wood fiber to be sourced from certified supplier by 2015 (FSC Certification)”Source:

http://www.cms.kimberly-clark.com/UmbracoImages/UmbracoFileMedia/2010SustainabilityReport_umbracoFile.pdf

PPR:Implement an Environmental Profit & Loss Account (E P&L) across all Luxury and Sport & Lifestyle global brands by 2015.Source: http://www.ppr.com/en/press/press-releases/ppr-commits-group-environmental-profit-loss-account-2015

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How can business respond?

WBCSD encourages the business community to proactively address risks and explore opportunities by:

Measuring / valuing and managing / mitigating their ecosystem impact and dependence

Innovating and helping develop new markets for ecosystem services and eco-efficient goods, services & technologies

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Encouraging suppliers, purchasers and consumers to adopt best practices

Entering into creative partnerships to address on-the-ground issues

Promoting “smart” ecosystem regulation that reverses degradation, leverages market forces and “levels the playing field” for all.

Exercise - Sustaining the Ecosystem for Water, Wildlife and Community in India – Ambuja Cement (Holcim)

The issue (1/2)

Ambuja Cement:

leading supplier of cement, aggregates and ready-mixed concrete in India.

Employs approximately 4,500 people.

Operates the Ambujanagar cement plant in the Kodinar region of G j t I di

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Gujarat, India.

The facility has 3 closed and rehabilitated quarries and 6 active quarries.

To ensure the future availability of the key raw material required for cement (limestone), the plant will be aiming to enhance capacity at some of its other active mines.

Exercise - Sustaining the Ecosystem for Water, Wildlife and Community in India– Ambuja Cement (Holcim)

The issue (2/2)

The Ambujanagar facility is located between the Arabian Sea and the GirSanctuary and National Park, which together are a designated protected area. The Gir National Park provides crucial habitat for the last surviving population of the Asiatic lion.

There have been critical problems of freshwater availability in the state of Gujarat since 1970.

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The area where the cement plant is located is in a Coastal Regulation Zone.

Owing to over-withdrawal of freshwater and intensive land-use in the Kodinar region, there has been marked depletion of the water table and an associated serious increase in water salinity from the ingression of seawater into the water table.

Business risks and opportunities - Exercise

Type Risk Opportunity

Operational

Legal and political

R t ti l

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Reputational

Market and product

Financing


The response (1/2)

Ambuja worked with local communities, natural resource management experts, non-governmental organizations and local authorities.

Adopted a landscape approach in addressing impacts of the quarrying activities.

Capturing and preserving freshwater – e.g. rainwater harvesting, converting the mined-out pits into artificial lakes and wetlands,

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g p ,constructing 165 dams and small barriers to reduce the loss of water through shallow rivers and streams, etc

Quarry rehabilitation through tree planting: different tree species have been planted. Small patches of land are earmarked to grow medicinal plants and fodder-yielding plants. The company is also planning Jatropha plantations, which will serve as a source of bio-fuel in coming years.

Conserving the flora and fauna of Gir: a large number of tree species native to the Gir Forest are being planted in the reclaimed mines.


The response (2/2)

Adopted a landscape approach in addressing impacts of the quarrying activities.

Protecting coastal zones through mangrove development: State authorities have given 150 hectares of land to the company for the development of mangrove along the Gujarat Coast through the planting of three native tree species.

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Sustaining local livelihoods: Local people are employed in rehabilitation activities such as pit preparation, watering, tree planting, nursery development and construction of water harvesting structures.

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The results

The water management program has raised the water table by eight meters, controlled the water salinity problem (fig. 1) and made quality freshwater easily available to the communities

In 2011, Ambuja Cement achieved its target of becoming water positive. This approach has helped the company strengthen relationships with all local stakeholders, which has guaranteed its li t t i th f t

25September 2012

license to operate in the future.

How to implement BET ?

Implementing BET

Delivering BET to business

To deepen knowledge and understanding of ecosystem services for key decision makers.

T d l i li t

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To develop specialist professional skills.

The more targeted the audience is, the better

Implementing BET

Possible audience within a company:

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Executive overview presentation

BET Roll Out 2012Status Update (August)

July ‘12

Spring ’12 BET delivered to 25 FLTs, who

became BET specialists within their companies BET sessions targeted at members

companies:- Montreux Members’ Meeting- Webinars x 2

2013Pl t t i

Aug. ‘12 CEV/BET Session

delivered to NMC (Swedish network of 270 cies) by NGO Gaia

USA

Switzerland

India

JapanKorea

Netherlands

Spring ‘12 BET part of the IUCN NL’s Leaders

for Nature Initiative (3 training sessions delivered so far)

Sweden

Portugal

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Module 1 translated in Japanese Delivered to

Hitachi’s employees

July ‘12Module 3 delivered in

Brazil (30 participants from 21 companies) Discussions about BET

customization to Brazil

October ‘12 (COP11) Launch of Leaders for Nature India

– BET at the heart of the initiativeSept-Nov ‘12

BET customization to IndiaDec‘12

Train the trainer in Delhi

Plan to customize and deliver BET in the US, in partnership with a US University

Sept ‘12 BET Conservation Campus – 4

hour session during the World Conservation Congress (30 participants from NGOs, Govt and business)

Aug-Sept ‘12 Discussions with BCSD Korea on

BET customization and translation

2nd Half ‘12 Accion RSE planning to

translate the material in Spanish

Brazil

Chile

2012 BET currently being translated in

Portuguese Training sessions by BCSD

Portugal by end ‘12

Next steps?

Get to know BET material

Customize the material (new case studies

Assess your audience needs

30September 2012

(available on the WBCSD website)

Keep in touch! [email protected]

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Violaine BergerEcosystems & Water, WBCSD

[email protected]

142 engaging business for conservation presentations

Documents

business practices

business approach

business goalsunderstanding

training business

potential business partners

business partnerdue

strategy iucns

wellas business entities