Biodiversity – Our Lifeline (Green Week)

Session 3.2 – Maintaining our natural capital:

Protecting and preserving natural resources

Engaging Business

2 June 2010

Joshua Bishop

Chief Economist

IUCN

Outline1. The TEEB study

2. Engaging business

3. Discussion

Outline1. The TEEB study2. Engaging business

3. Discussion

TEEB origins & objectives

“Potsdam Initiative – Biological Diversity 2010”

In a global study we will initiate the process of analysing

the global economic benefit of biological diversity,

the costs of the loss of biodiversity and

the failure to take protective measures

versus

the costs of effective conservation.

TEEB – Reports for different audiences

TEEB for Citizens (D4)September 2010

TEEB for Business (D3)13 July 2010

TEEB for Local Policy (D2)September 2010

TEEB for Policy-Makers (D1) www.teebweb.org

TEEB Ecological and Economic Foundations (D0)www.teebweb.org

5

TEEB for Business (D3)

Ch1 The changing value of nature

Ch2 Business impacts & dependence on biodiversity and ecosystems

Ch3 Measuring, valuing & reporting on biodiversity in business

Ch4 Scaling down biodiversity risks in business

Ch5 Scaling up biodiversity business opportunities

Ch6 Business, biodiversity and sustainable development

Ch7 A recipe for biodiversity business growth

Outline1. The TEEB study

2. Engaging business3. Discussion

Type Risk Opportunity

Operational •Increased scarcity / cost of inputs•Reduced quality of inputs•Disruption to business operations

•Increased resource use efficiency

Regulatory and legal

•Stricter environmental policies•Fines for damage to ecosystems•Permit or license suspension

•License to expand operations•Ability to shape government policy

Reputational •Damage to brand or image•Challenge to “license to operate”

•Improved or differentiated brand

Market and product

•Changes in customer preferences •New products or services•Markets for certified products•Markets for ecosystem services

Financing •Higher cost of capital•More rigorous lending

requirements

•Green banking

Source: Corporate Ecosystem Service Review

Assessing risks and opportunities

Top 100 companiesAnnual reports

Top 100 companiesSustainability reports

Don't produce sustainability report

No mention of biodiversity or ecosystems

Passing mention of biodiversity or ecosystems

Discuss approach to reduce impact on biodiversity

Identify biodiversity as a key strategic issue

Don't produce sustainability report

No mention of biodiversity or ecosystems

Passing mention of biodiversity or ecosystems

Discuss approach to reduce impact on biodiversity

Identify biodiversity as a key strategic issue

82%

12%

4% 2%

42%

23%

15%

9% 11%

Source: PwC input to TEEB Report for Business

Reporting impacts and dependence

Reducing biodiversity risks:A growing toolkit for business

• Integrated Biodiversity Assessment Tool– http://www.biodiversityinfo.org/ibat/– GIS database for site-level risk assessment– Based on World Database of Protected Areas, World Biodiversity Database, IUCN

Red List of Threatened Species

• Business and Biodiversity Offsets Program– http://www.forest-trends.org/biodiversityoffsetprogram/– Guidance on designing and implementing biodiversity offsets to ensure “no net loss”– Led by Forest Trends, Wildlife Conservation Society and Conservation International

• Certification and labelling– http://www.isealalliance.org/– Global hub for social and environmental standards– Members represent fair trade, forest stewardship, organic agriculture, fisheries, etc.

Increasing biodiversity business opportunities

• Eco-agriculture• Sustainable forestry• Non-timber forest products• Sustainable fisheries & aquaculture• Bio-carbon offsets including REDD+• Payments for watershed protection• Bio-prospecting for genetic resources• Biodiversity offsets and habitat banking• Biodiversity management services• Sport hunting and fishing• Eco-tourism

Biodiversity business opportunity:(a) satisfying consumer preference

Nature-based TourismOrganic agricultureCertified forestry

Source: Willer et al. (2008)Source: FAO (2007); FSC (2008) Source: www.world-tourism.org

Plus similar initiatives in fisheries (MSC), investment products (SRI), gemstones (CRJ), biofuels (RSPO), etc

Biodiversity business opportunity:(b) securing essential inputs

Biodiversity business opportunity:(c) addressing environmental liability

Example: CDC Biodiversité (http://www.cdc-biodiversite.fr/)

• €15 M business providing habitat / ecological compensation services to help clients meet legal liabilities in France

• Developed out of CDC carbon offset business

• Several biodiversity “banks”under development

Source: Rio Tinto

Extended biodiversity responsibility: The concept of “Net Positive Impact”

Emerging enabling frameworks

• Subsidy reform (agriculture, fisheries, water, transport, etc)• Tax credits and other incentives for conservation • Certification and eco-labelling (voluntary / mandatory)• Payment for Ecosystem Services (national, international)• Environmental responsibility (EU Environmental Liability

Directive, damage assessment and compensation)• Environmental trading schemes (REDD+, USA wetland

mitigation, Australia biodiversity banking)• Public access to information (Global Reporting Initiative,

Carbon / Forest / Water footprint disclosure projects)

Outline1. The TEEB study

2. Engaging business

3. Discussion

What can business do today?

1. Assess risks and opportunities

2. Develop strategy and actions plans

3. Educate employees and owners

4. Define key performance indicators and targets

5. Disclose impacts, actions and outcomes

6. Apply B&E valuation to business investment/activity

7. Advocate business-oriented regulatory reform

8. Integrate B&E in wider corporate sustainability policy

Launch of the TEEB for Business report at:

1st Global Business of Biodiversity Symposium

Tuesday 13 July, 2010 in London, UK

www.businessofbiodiversity.co.uk

Also coming soon at: www.teebweb.org

Thank you!

(www.teebweb.org)

Main TEEB funders:

Main D3 writers:

Market price of timber in 1998 (US$/m3)

Real cost of timber, including floodingdamage and ecosystem lossexternalized by Construction andMaterials Sector 1998 (US$/m3)

+129%

Source: Trucost for TEEB