Geneva, September 2007

1. Ecosystems Doing Business with the World - The new role of corporate leadership in global development Geneva, September 2007 World Business Council for Sustainable Development

2. Overview • The global view: Business, communities and development • Biodiversity and development

3. The global view: Business, communities & ecosystems For businesses today, ecosystems offer natural capital, an important source of raw material • Operational • Regulatory • Reputational • Access to capital Corporations not only affect ecosystem services but also rely on them Ecological economists have calculated that the Earth provides a minimum of $16-54 trillion dollars worth of 'services' to humans per year.3 • Employment • Production • Livelihoods Communities rely on ecosystem products and services, too

4. ] Biodiversity and development An overview of the development status of countries and areas with high ecological significance Many biologically rich areas are found in developing countries -- as shown when Human Development Index (HDI) values, tropical hotspots, wilderness areas are mapped together. The Human Development Index (HDI) is a composite index measuring basic dimensions (life expectancy, education and income level) of human development. Source: IUCN. 2004. “Poverty-Conservation Mapping Applications.” IUCN World Conservation Congress 17-25 November 2004.

5. Needs & Challenges • Societal needs and consequences • Climate change and food security • Biodiversity and development • Key challenges limiting progress

6. Societal needs and consequences The poor are especially vulnerable because of their high dependence on natural resources. Source: IUCN. http://www.iucn.org/themes/ssc/publications/red_list/Red_List_2004_book.pdf Leading causes of ecosystem degradation Diversion of freshwater Land use +

7. Climate change and food security “The adverse impacts of climate change will be most striking in developing nations—and particularly among the poor—both because of their high dependence on natural resources and their limited capacity to adapt to a changing climate.” -World Resources Institute. 2005. The Wealth of the Poor: Managingecosystems to fightpoverty. World Resources Institute. 2005. The Wealth of the Poor: Managingecosystems to fightpoverty.

8. Biodiversity and development More than 1.1 billion people live in the 25 biodiversity hotspots identified by Conservation International. In 19 of these areas population is growing faster than the world average.1 Biodiversity provides food, fuel, shelter, medicines and livelihoods for the poor, especially in rural areas. Source: Population Action International. 2000. Cincotta, Richard P. and Engelman, Robert. Nature’s Place: Human Population and the Future of Biodiversity. http://www.populationaction.org/Publications/Reports/Natures_Place/Natures_Place.pdf

9. Key challenges limiting progress • Weak or absent regulatory frameworks • Understanding the value of ecosystems • Promoting awareness among people, communities and business • View that ecosystems are part of the global commons • Market threats • scarcity of raw materials • higher operating costs • reduced flexibility Nutrient overloading Overexploitation of oceans Invasive species Climate change Water scarcity Biodiversity loss Habitat change

10. Opportunities • What are the opportunities? • New business and market opportunities • Key messages • WBCSD Resources

11. What are the opportunities? • Develop new technologies and products • Growing market for "non-conventional"  ecosystem products and services • New partnerships for innovative approaches • Examples include • Unilever and the Marine Stewardship Council • Lafarge and the Wildlife Habitat Council

12. New business and market opportunities Example Total value of aggregated carbon markets globally was more than US$10 billion in 2005.1 • Water quality trading • Wetland banking • Mitigation credit trading • Threatened species banking • Innovation in pollution prevention, capture, treatment and reuse New businesses • Certification of ecosystem products • Fair trade products • Organic products • Environmentally-friendly products New markets Example In North America and the Pacific Rim, total sales in fair trade goods rose 52% from 2002 to 2003.1

13. Key messages • For business, investing in sustainableecosystemscan: • Create new revenue streams by introducing innovative products and services • Reduce dependence on increasingly scarce raw materials • Mitigate rising costs caused by scarcity of raw materials • Create new markets for certified, fair trade, organically grown or environmentally-friendly products • Develop new businesses • (e.g. water quality trading, wetland banking) • Strengthen license to operate • For governments, an effective policyframework for sustainableecosystemscan: • Protect ecosystems and the associated populations and communities that depend on them for their livelihoods • Ensure long term sustainable use of ecosystems • Mitigate negative environmental and climate change impacts • Raiseawareness on the importance of sustainableecosystem management • Generateincomethrough taxation

14. WBCSD Resources • Business & Biodiversity: A Guide for the PrivateSector • Written in conjunction with the IUCN, this business primer looks at the implications of the Convention on Biological Diversity for business. • Business & Biodiversity: The Handbook for Corporate Action • The handbook provides information on the business case for biodiversity, as well as current biodiversity issues for business, corporate biodiversity strategies and key biodiversity resources. • Ecosystem Challenges and Business Implications • This publication discusses the challenges inherent in the use of ecosystem services and the implications for business.

15. www.wbcsd.org/web/development.htm