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Ecosystems & Business
Increasing chances of a successful marriage

                                 Eva Zabey, WBCSD
                23 Feb 2012, BCSD-UK CEV Workshop
Contents

   About WBCSD & Regional Network
   Speaking same language – key concepts
   Ecosystem tools for business
   Focus on CEV
     Brief overview of methodology
     Next steps
   Broader eco valuation landscape


                                            2
WBCSD members




                3
                3
Regional Network
                                                                                   NHO
                                                           Business                                  RBF (Poland)
                                                                                 (Norway)
                                                            Europe
                                                                                            Danish                respACT
                       Excel Partnership            BCSD              econsense             BCSD                BCSD Austria
                          (Canada)             United Kingdom         (Germany)                                                                            Korea
                                                                                                                  Vernadsky                                BCSD
                                                       EpE                               Czech
                                                                                          BCSD                    Foundation
                                                     (France)
                                                                                            Centre for             (Russia)
                                                                                                                                             BCSD                     Nippon
   United States                                         FFA                                CSR Dev.
                                    CGLI                                                                              BCSD                  Mongolia                 Keidanren
      BCSD                                             (Spain)                              (Ukraine)
                                (Canada/USA)                                                     BCSD               Kazakhstan                                        (Japan)
                                                         FE                                     Hungary                          CII
                                                      BCSD Spain                                  BCSD                         (India)
    BCSD Mexico                                        BCSD                                      Turkey                                                             BCSD
                                  CentraRSE                                                                                         China
                                                      Portugal                   SEV-BCSD      Maala                                                                Taiwan
                                  Guatemala                                                                                         BCSD
                                                    BCSD            BCSD           Greece       Israel
  BCSD El Salvador                                                  Croatia      APEQUE                                                                   BEC
                                                   Honduras                                    AEEC                                 BCSD
                                                                                 (Algeria)    (Egypt)       BCSD                                       (Hong Kong)
                  uniRSE                           SumaRSE (Panama)                                                                Vietnam
                                                                                                             UAE
                (Nicaragua)
                                                      Curaçao BCSD                                                                       Indonesia BCSD
    AED                                                                                BCSD           BCSD
 (Costa Rica)                                                                        Zimbabwe        Pakistan          TERI                                    PBE
                                                                  BCSD Bolivia                                       BCSD India             BCSR           (Philippines)
BCSD Colombia                                                                                          BCSD                                Malaysia
                         BCSD
                                                                                                      Sri Lanka
                        Ecuador                                  BCSD Brazil                                               BCSD
                                                                                                                          Thailand                        BCA (Australia)
                          Peru                                    BCSD                               FEMA
                          2021                                   Paraguay                       BCSD Mozambique                                             New
                                                                   DERES                                                                                  Zealand
                              Acción RSE                                               NBI
                                                                  (Uruguay)                                                                                BCSD
                                (Chile)         BCSD                               (South Africa)
                                               Argentina




                                                                                                                                                                                 4
Ecosystems, ecosystem services & biodiversity

                           stores
                           carbon



provides
 wood

                               controls
                               erosion
                      cleans
                      water
            Biodiversity
                                                5
Types of ecosystem services
 Provisioning                     Regulating                               Cultural
 Goods or products produced       Natural processes regulated by           Non-material benefits obtained
 by ecosystems                    ecosystems                               from ecosystems




                                      Supporting
                              Functions that maintain all other services




                                                                                                            6
Impact & dependence

         Business impacts on ecosystems and
                 ecosystem services



            Ecosystem change creates
               business risks and
                 opportunities



          Business depends on ecosystems
               and ecosystem services

                                              7
How can business respond to their
ecosystem-related issues?
  1. Measure, manage and mitigate risks and impacts
  2. Improve decision-making by undertaking corporate ecosystem
     valuation to quantify business risks and opportunities
  3. Innovate and help develop new markets for ecosystem
     services and eco-efficient goods, services & technologies
  4. Encourage suppliers & purchasers to adopt best practices
  5. Enter into local partnerships to address on-the-ground issues
  6. Promote “smart” ecosystem regulation that leverages market
     forces and business solutions that halt degradation and “levels
     the playing field” for all



                                                                     8
Relevant tools of interest – examples

 Ecosystem Services Review (ESR): helps
   manage dependence and impact on ecosystems (v.2
   launch 8 Feb)

 Guide to Corporate Ecosystem Valuation
  (CEV): framework for improving decision-making by
   valuing ecosystem service related risks & oppies

 Business Ecosystems Training (BET):
   modular capacity building program for business (launch
   24 Feb)

 Eco4Biz mapping / “guide”: overview of
   ecosystem-related tools & approaches used by
   business (to be developed in 2012)

                                                            9
Corporate Ecosystem Services Review (ESR)

   Helps identify & manage risks and
    opportunities arising from dependence and
    impact on ecosystems
   WRI/ WBCSD/ Meridian Institute
   Approx. 300 cies using tool since
    March ‘08 launch
   6 languages
   Version 2 to be launched 8 Feb

                                                10
Guide to Corporate Ecosystem Valuation (CEV)

  What the Guide is
   A framework for improving corporate decision-
    making by valuing ecosystem services
   A set of resources to navigate through related
    jargon and techniques

  What the Guide is not
  X A price list of biodiversity & ecosystem services
  X A calculator to “crunch numbers”
  X A stand-alone methodology
                                                        11
Partners and Road Testers

 Partners               Road Testers




                                       12
How CEV helps improve decision-making and…

   Save costs
     e.g. cheaper & more effective waste management options
      (DuPont)
   Reduce taxes
     e.g. gain deductions in Federal taxes (Alleghny Power)
   Get new revenue streams
     e.g. implement a fee-to-access program for recreational
      users of unused lands (Potlatch Corp)
   Assess liability & compensation risks
     e.g. calculate oil spill natural resource damages to be used
      in courts of law (ExxonMobil)
   and more…

                                                                 13
Do you need to conduct a CEV at all?

  Before using CEV, ask yourself:
   Are your impacts & dependencies on
    ecosystem services significant or
    material (e.g. Corporate Ecosystem
    Services Review)?
   Do you need CEV to make a decision?
   Is there a mandatory requirement?




                                          14
5 stages to undertake a CEV exercise

            Preparation           Valuation           Post valuation

       1)                 2)            3)             4)           5)
    Scoping           Planning       Valuation Application Embedding

   define         develop         actual         use &         embed the
   scope for      suitable plan   valuation:     communicate   CEV
   valuation      to undertake    may be         valuation     approach
   exercise,      valuation       qualitative,   results to    within
   using          effectively     quantitative   influence     company
   checklist of                   and/or         internal &    processes &
   questions                      monetary       external      procedures
                                                 decision-
                                                 making



                                                                             15
Hierarchy of valuation approaches

                                                         Monetary
                                                         values not
               Monetary                                    always
                                                         available
                                                        or required
              Quantitative


              Qualitative

               Source: P. ten Brink as cited in TEEB – an
                          interim report (2008)                       16
Resources available on wbcsd.org/web/cev.htm

Reports & guide   Additional
                  resource notes    PPT packs
                  •Concepts         FAQ
                  •Selection &      Road tester
                   application of   summaries
                   techniques




                                               17
Messages

   Business depends and impacts on biodiversity &
    ecosystem services
   CEV can help business manage risk and consider new
    business opportunities
   Valuing these impacts and dependencies helps business
    make better decisions
   Ecosystem valuation will increasingly be considered by
    governments, finance sector and business-to-business
    customers
   CEV process is complementary to other business tools
    (e.g. ESIAs, LCAs)


                                                         18
Next steps

   Promote uptake, incl. simpler communication
   Help users, incl. Business Ecosystems
    Training (BET) module 3 is on valuation
   Focus on true value of water
   Link with other tools using Eco4Biz “guide” –
    valuation is not best approach in all cases
   Strive to remain leading & progressive biz
    voice, but give companies a chance to grasp
    these new concepts!

                                                    19
Ecosystem valuation landscape – getting busy
                Financial Times
                22 March 2011




                                               20
Other players / initiatives

  The Economics of Ecosystems and Biodiversity
   (TEEB)
      WBCSD is “operationalizing” TEEB at the company
       level
      WBCSD was editor of chapters 2 and
       4 in TEEB for Business (D3)
      WBCSD will be involved in TEEB for Business
       Coalition – 1st meeting 27 Feb in London, hosted
       by ICAEW
  Valuing Nature Network
 http://www.valuing-nature.net/

                                                          21
My favorite sentence in the Guide to CEV…

    “We see the value of
   ecosystem valuation.”




                                            22

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Cev workshop jan 12 wbcsd slides

  • 1. Ecosystems & Business Increasing chances of a successful marriage Eva Zabey, WBCSD 23 Feb 2012, BCSD-UK CEV Workshop
  • 2. Contents  About WBCSD & Regional Network  Speaking same language – key concepts  Ecosystem tools for business  Focus on CEV  Brief overview of methodology  Next steps  Broader eco valuation landscape 2
  • 4. Regional Network NHO Business RBF (Poland) (Norway) Europe Danish respACT Excel Partnership BCSD econsense BCSD BCSD Austria (Canada) United Kingdom (Germany) Korea Vernadsky BCSD EpE Czech BCSD Foundation (France) Centre for (Russia) BCSD Nippon United States FFA CSR Dev. CGLI BCSD Mongolia Keidanren BCSD (Spain) (Ukraine) (Canada/USA) BCSD Kazakhstan (Japan) FE Hungary CII BCSD Spain BCSD (India) BCSD Mexico BCSD Turkey BCSD CentraRSE China Portugal SEV-BCSD Maala Taiwan Guatemala BCSD BCSD BCSD Greece Israel BCSD El Salvador Croatia APEQUE BEC Honduras AEEC BCSD (Algeria) (Egypt) BCSD (Hong Kong) uniRSE SumaRSE (Panama) Vietnam UAE (Nicaragua) Curaçao BCSD Indonesia BCSD AED BCSD BCSD (Costa Rica) Zimbabwe Pakistan TERI PBE BCSD Bolivia BCSD India BCSR (Philippines) BCSD Colombia BCSD Malaysia BCSD Sri Lanka Ecuador BCSD Brazil BCSD Thailand BCA (Australia) Peru BCSD FEMA 2021 Paraguay BCSD Mozambique New DERES Zealand Acción RSE NBI (Uruguay) BCSD (Chile) BCSD (South Africa) Argentina 4
  • 5. Ecosystems, ecosystem services & biodiversity stores carbon provides wood controls erosion cleans water Biodiversity 5
  • 6. Types of ecosystem services Provisioning Regulating Cultural Goods or products produced Natural processes regulated by Non-material benefits obtained by ecosystems ecosystems from ecosystems Supporting Functions that maintain all other services 6
  • 7. Impact & dependence Business impacts on ecosystems and ecosystem services Ecosystem change creates business risks and opportunities Business depends on ecosystems and ecosystem services 7
  • 8. How can business respond to their ecosystem-related issues? 1. Measure, manage and mitigate risks and impacts 2. Improve decision-making by undertaking corporate ecosystem valuation to quantify business risks and opportunities 3. Innovate and help develop new markets for ecosystem services and eco-efficient goods, services & technologies 4. Encourage suppliers & purchasers to adopt best practices 5. Enter into local partnerships to address on-the-ground issues 6. Promote “smart” ecosystem regulation that leverages market forces and business solutions that halt degradation and “levels the playing field” for all 8
  • 9. Relevant tools of interest – examples  Ecosystem Services Review (ESR): helps manage dependence and impact on ecosystems (v.2 launch 8 Feb)  Guide to Corporate Ecosystem Valuation (CEV): framework for improving decision-making by valuing ecosystem service related risks & oppies  Business Ecosystems Training (BET): modular capacity building program for business (launch 24 Feb)  Eco4Biz mapping / “guide”: overview of ecosystem-related tools & approaches used by business (to be developed in 2012) 9
  • 10. Corporate Ecosystem Services Review (ESR)  Helps identify & manage risks and opportunities arising from dependence and impact on ecosystems  WRI/ WBCSD/ Meridian Institute  Approx. 300 cies using tool since March ‘08 launch  6 languages  Version 2 to be launched 8 Feb 10
  • 11. Guide to Corporate Ecosystem Valuation (CEV) What the Guide is  A framework for improving corporate decision- making by valuing ecosystem services  A set of resources to navigate through related jargon and techniques What the Guide is not X A price list of biodiversity & ecosystem services X A calculator to “crunch numbers” X A stand-alone methodology 11
  • 12. Partners and Road Testers Partners Road Testers 12
  • 13. How CEV helps improve decision-making and…  Save costs  e.g. cheaper & more effective waste management options (DuPont)  Reduce taxes  e.g. gain deductions in Federal taxes (Alleghny Power)  Get new revenue streams  e.g. implement a fee-to-access program for recreational users of unused lands (Potlatch Corp)  Assess liability & compensation risks  e.g. calculate oil spill natural resource damages to be used in courts of law (ExxonMobil)  and more… 13
  • 14. Do you need to conduct a CEV at all? Before using CEV, ask yourself:  Are your impacts & dependencies on ecosystem services significant or material (e.g. Corporate Ecosystem Services Review)?  Do you need CEV to make a decision?  Is there a mandatory requirement? 14
  • 15. 5 stages to undertake a CEV exercise Preparation Valuation Post valuation 1) 2) 3) 4) 5) Scoping Planning Valuation Application Embedding define develop actual use & embed the scope for suitable plan valuation: communicate CEV valuation to undertake may be valuation approach exercise, valuation qualitative, results to within using effectively quantitative influence company checklist of and/or internal & processes & questions monetary external procedures decision- making 15
  • 16. Hierarchy of valuation approaches Monetary values not Monetary always available or required Quantitative Qualitative Source: P. ten Brink as cited in TEEB – an interim report (2008) 16
  • 17. Resources available on wbcsd.org/web/cev.htm Reports & guide Additional resource notes PPT packs •Concepts FAQ •Selection & Road tester application of summaries techniques 17
  • 18. Messages  Business depends and impacts on biodiversity & ecosystem services  CEV can help business manage risk and consider new business opportunities  Valuing these impacts and dependencies helps business make better decisions  Ecosystem valuation will increasingly be considered by governments, finance sector and business-to-business customers  CEV process is complementary to other business tools (e.g. ESIAs, LCAs) 18
  • 19. Next steps  Promote uptake, incl. simpler communication  Help users, incl. Business Ecosystems Training (BET) module 3 is on valuation  Focus on true value of water  Link with other tools using Eco4Biz “guide” – valuation is not best approach in all cases  Strive to remain leading & progressive biz voice, but give companies a chance to grasp these new concepts! 19
  • 20. Ecosystem valuation landscape – getting busy Financial Times 22 March 2011 20
  • 21. Other players / initiatives  The Economics of Ecosystems and Biodiversity (TEEB)  WBCSD is “operationalizing” TEEB at the company level  WBCSD was editor of chapters 2 and 4 in TEEB for Business (D3)  WBCSD will be involved in TEEB for Business Coalition – 1st meeting 27 Feb in London, hosted by ICAEW  Valuing Nature Network http://www.valuing-nature.net/ 21
  • 22. My favorite sentence in the Guide to CEV… “We see the value of ecosystem valuation.” 22