Corporate Ecosystem Services Review
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Corporate Ecosystem Services Review Overview. Definitions. Ecosystem. A dynamic complex of plant, animal, and micro-organism communities and the non-living environment interacting as a functional unit. The variability among living organisms Within species & populations Between species

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Corporate Ecosystem Services Review Overview

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Corporate ecosystem services review overview

Corporate Ecosystem Services Review

Overview


Definitions

Definitions

Ecosystem

  • A dynamic complex of plant, animal, and micro-organism communities and the non-living environment interacting as a functional unit

  • The variability among living organisms

    • Within species & populations

    • Between species

    • Between ecosystems

Biodiversity

Ecosystem services

  • The benefits society and business obtain from ecosystems

  • The “goods and services of nature”


Types of ecosystem services

Types of ecosystem services

Provisioning

Goods or products produced by ecosystems

Regulating

Natural processes regulated by ecosystems

Cultural

Non-material benefits obtained from ecosystems

Supporting

Functions that maintain all other services


The business case for action on ecosystems

The business case for action on ecosystems

Businesses impact on ecosystems and ecosystem services

Ecosystem change creates business risks and opportunities

Businesses rely and depend on ecosystems and ecosystem services


Corporate ecosystem services review esr

Corporate Ecosystem Services Review (ESR)

  • Structured method to develop strategies to manage risks and opportunities arising from dependence and impact on ecosystems

  • WRI/ WBCSD/ Meridian Institute

  • Approx. 300 cies using tool since March ‘08 launch

  • Available in 6 languages


Making the case the esr s value add

Making the case: the ESR’s value add

  • Impacts and dependencies

  • New considerations –regulating services

  • New perspective – unites economic & environmental

  • Framework for considering tradeoffs

  • Solutions – regulatory and markets

  • Scientific consensus


Forming an esr team key members

Forming an ESR team – key members

  • Environment and sustainability

  • Corporate strategy/research

  • Production/service team

  • Finance

  • External relations

  • Foundation (if related to core business)

  • External experts

    • Ecosystem services

    • Strategic consultants


5 steps in the esr

5 Steps in the ESR

5. Develop strategies

4. Identify business risks and opportunities

3. Analyze trends in priority services

2. Identify priority ecosystem services

1. Select the scope


Step 1 select the scope

Step 1: Select the scope

1. Select the scope


Considerations when selecting the scope

Considerations when selecting the scope

1. Which stage of the value chain?

Suppliers

Company

Customers

2. Who and where specifically?

  • Which supplier(s)?

  • In which geographic market(s)?

  • Which customer(s)?

  • In which geographic market(s)?

  • What aspect of the company?

    • Business unit

    • Product line

    • Facility

    • Project

    • Landholdings

3. Is it strategic, timely, and supported?


Step 2 identify priority ecosystem services

Step 2: Identify priority ecosystem services

2. Identify priority ecosystem services

1. Select the scope


Corporate ecosystem services review overview

Go to worksheet


Step 2 evaluating dependence

Step 2: Evaluating dependence

Low dependence

No

Yes

High dependence

No

Yes

Medium dependence

1. Does this ecosystem service serve as an input or does it enable / enhance conditions for successful company performance?

2. Does this ecosystem service have cost-effective substitutes?


Step 2 evaluating impact

Step 2: Evaluating impact

Low impact

No

Yes

Negative

Positive

Medium impact

No

Yes

High impact

Does the company affect the quantity or quality of this ecosystem service?

Is the company’s impact positive or negative?

Does the company’s impact limit or enhance the ability of others to benefit from this ecosystem service?


Step 2 select priority services

Step 2: Select priority services


Step 3 analyze trends in priority services

Step 3: Analyze trends in priority services

3. Analyze trends in priority services

2. Identify priority ecosystem services

1. Select the scope


Step 3 trends analysis framework

Step 3: Trends analysis framework

Condition and trends in ecosystem service

Activities

of others

Company activities

Direct drivers

Indirect drivers


Step 4 identify business risks and opportunities

Step 4: Identify business risks and opportunities

4. Identify business risks and opportunities

3. Analyze trends in priority services

2. Identify priority ecosystem services

1. Select the scope

Steps in the Corporate Ecosystem Services Review


Step 4 risks and opportunities

Step 4: Risks and opportunities

Not exhaustive

Type

Risk

Opportunity

  • Increased scarcity or cost of inputs

  • Reduced quality of inputs

  • Reduced output or productivity

  • Disruption to business operations

  • Increased resource use efficiency

  • Low-impact industrial/manufacturing processes

Operational

  • Extraction moratoria

  • Lower quotas

  • Fines, user fees

  • Permit or license suspension /denial

  • Lawsuits

Regulatory and legal

  • Formal license to expand operations

  • New products to meet new regulation

  • Opportunity to shape government policy

  • Damage to brand or image

  • Challenge to “license to operate”

Reputational

  • Improved or differentiated brand

  • New products or services

  • Markets for certified products

  • Markets for ecosystem services

  • Changes in customer preferences

Market and product

  • Increased investment by progressive lenders and socially responsible investment funds

Financing

  • Higher cost of capital

  • More rigorous lending requirements


Step 4 risks and opportunities1

Step 4: Risks and opportunities


Step 5 develop strategies

Step 5: Develop strategies

5. Develop strategies

4. Identify business risks and opportunities

3. Analyze trends in priority services

2. Identify priority ecosystem services

1. Select the scope


Categories of strategies

Categories of strategies

Sector or stake-holder engagement

Policy-maker engagement

Internal changes

  • Industry peer collaboration

  • Cross-sector collaboration

  • NGO collaboration

  • Transactions with stakeholders

  • Etc.

  • Operations

  • Product strategy

  • Market strategy

  • Procurement strategy

  • Land management

  • Etc.

  • Tax incentives

  • Subsidy reforms

  • Protected areas

  • Zoning

  • Etc.


Applications of the esr

Applications of the ESR

  • Frame ongoing initiatives in an ecosystem services perspective

  • Build and leverage employee knowledge

  • Use the process for other purposes

  • Carry out a gap analysis

  • Embed ecosystem services into Environmental Impact Assessments (EIA)

  • Improve plants and land management

  • Incorporate into product development

  • Analyze supply chains


Esr benefits users told us it helped them

ESR benefits – users told us it helped them…

  • Provide insights on ecosystem issues

  • Highlight (potential) risks and opportunities

  • Put ecosystems higher on corporate agenda / give added urgency to action on ecosystems

  • Shape ecosystem management plans / integrate ES into corporate planning

  • Strengthen existing approaches to environmental impact assessment

  • Demonstrate leadership in corporate sustainability

  • Communicate ecosystem issues internally and externally

  • Engage non-business stakeholders / improve relationships


Next steps ecosystem services for corporate decision making

Next steps: Ecosystem services for corporate decision-making

  • EIA

  • LCA

  • SME

  • Financial Risk

WRI main page on ESR material: http://www.wri.org/ecosystems/esr

WBCSD’s Ecosystem Valuation Initiative, see:www.wbcsd.org/web/evi.htm


Corporate ecosystem services review overview

Any suggestions, comments, questions? Write to

[email protected] or [email protected]


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