What do these stories have in common? Companies facing unexpected risks or novel opportunities  arising from their depende...
<ul><li>Regulating </li></ul><ul><li>Benefits obtained from control of natural processes by ecosystems </li></ul>Cultural ...
Trends in the world’s ecosystem services over past 50 years Source:  Adapted from the Millennium Ecosystem Assessment. 200...
The Corporate Ecosystem Services Review  Structured methodology that helps managers proactively  develop strategies to man...
Business benefits <ul><li>Strengthen existing approaches to environmental management </li></ul><ul><li>Identify business r...
Business decisions and processes the ESR can support <ul><li>Corporate, business unit, or market strategy development  </l...
Steps in a corporate ecosystem services review Key activity Step Outline and prioritize strategies for managing the risks ...
Step 1.  Considerations when selecting the scope 3. Is it strategic, timely, and supported? 1. Which stage of the value ch...
Step 2.  Identifying priority ecosystem services
Step 3.  Ecosystem service trends and drivers framework <ul><li>1. Condition and trends in the  </li></ul><ul><li>ecosyste...
Step 4.  Types of risks and opportunities arising from trends in ecosystem services Type Risk Opportunity NOT EXHAUSTIVE O...
Step 5. Categories of strategies Internal changes Sector or stakeholder engagement Policy-maker engagement Operations Prod...
What the ESR is not <ul><li>It is not dependent upon economic valuation of ecosystem services </li></ul><ul><li>It does no...
Supporting tools available in Guidelines and on website <ul><li>Methodology “cheat sheet” </li></ul><ul><li>Ecosystem serv...
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Corporate Ecosystem Services Review

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Presentation to accompany The Corporate Ecosystem Services Review report at http://www.wri.org/publication/corporate-ecosystem-services-review

Published in: Economy & Finance, Technology
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  • This presentation is designed to help business managers introduce the Corporate Ecosystem Services Review to colleagues. It is designed to complement The Corporate Ecosystem Services Review guidelines, which are available at www.wri.org/ecosystems/esr
  • Corporate Ecosystem Services Review

    1. 6. What do these stories have in common? Companies facing unexpected risks or novel opportunities arising from their dependence and impact on ecosystems
    2. 7. <ul><li>Regulating </li></ul><ul><li>Benefits obtained from control of natural processes by ecosystems </li></ul>Cultural Nonmaterial benefits obtained from ecosystems Provisioning Goods or products obtained from ecosystems Three categories of ecosystem services
    3. 8. Trends in the world’s ecosystem services over past 50 years Source: Adapted from the Millennium Ecosystem Assessment. 2005. Ecosystems and Human Well-being: Synthesis. Washington, DC: Island Press. <ul><li>Recreation and ecotourism </li></ul><ul><li>Ethical values (spiritual, religious) </li></ul><ul><li>Aesthetic values </li></ul>Cultural <ul><li>Global climate regulation (carbon sequestration) </li></ul><ul><li>Water regulation </li></ul><ul><li>Disease regulation </li></ul><ul><li>Air quality regulation </li></ul><ul><li>Regional and local climate regulation </li></ul><ul><li>Erosion regulation </li></ul><ul><li>Water purification and waste treatment </li></ul><ul><li>Pest regulation </li></ul><ul><li>Pollination </li></ul><ul><li>Natural hazard regulation </li></ul>Regulating <ul><li>Crops </li></ul><ul><li>Livestock </li></ul><ul><li>Aquaculture </li></ul><ul><li>Timber and other wood fiber </li></ul><ul><li>Other fibers (e.g., cotton, hemp, silk) </li></ul><ul><li>Capture fisheries </li></ul><ul><li>Wild foods </li></ul><ul><li>Biomass fuel </li></ul><ul><li>Freshwater </li></ul><ul><li>Genetic resources </li></ul><ul><li>Biochemicals, natural medicines, and pharmaceuticals </li></ul>Provisioning Enhanced Mixed Degraded
    4. 9. The Corporate Ecosystem Services Review Structured methodology that helps managers proactively develop strategies to manage business risks and opportunities arising from their company’s dependence and impact on ecosystems
    5. 10. Business benefits <ul><li>Strengthen existing approaches to environmental management </li></ul><ul><li>Identify business risks and opportunities </li></ul><ul><li>Anticipate new markets and government policies </li></ul><ul><li>Improve stakeholder relationships </li></ul><ul><li>Demonstrate leadership in corporate sustainability </li></ul>
    6. 11. Business decisions and processes the ESR can support <ul><li>Corporate, business unit, or market strategy development </li></ul><ul><li>Planning processes for corporate infrastructure projects </li></ul><ul><li>Identification of new markets, products, or services </li></ul><ul><li>Identification of new revenue streams from corporate landholdings </li></ul><ul><li>Policy-maker engagement strategies </li></ul><ul><li>Environmental impact assessments </li></ul><ul><li>Environmental reporting </li></ul>
    7. 12. Steps in a corporate ecosystem services review Key activity Step Outline and prioritize strategies for managing the risks and opportunities 5. Develop strategies Identify and evaluate business risks and opportunities that might arise due to the trends in priority ecosystem services 4. Identify business risks and opportunities Evaluate conditions and trends in priority ecosystem services, as well as drivers of these trends 3. Analyze trends in priority services Systematically evaluate degree of company’s dependence and impact on ecosystem services Determine highest “priority” services—those most relevant to business performance 2. Identify priority ecosystem services <ul><li>Choose boundary within which to conduct ESR </li></ul><ul><li>Business unit </li></ul><ul><li>Product </li></ul><ul><li>Market </li></ul><ul><li>Landholdings </li></ul><ul><li>Customer </li></ul><ul><li>Supplier </li></ul>1. Select the scope
    8. 13. Step 1. Considerations when selecting the scope 3. Is it strategic, timely, and supported? 1. Which stage of the value chain? Customers Company Suppliers <ul><li>Which customer(s)? </li></ul><ul><li>In which geographic market(s)? </li></ul><ul><li>What aspect of the company? </li></ul><ul><ul><li>Business unit </li></ul></ul><ul><ul><li>Product line </li></ul></ul><ul><ul><li>Facility </li></ul></ul><ul><ul><li>Project </li></ul></ul><ul><ul><li>Landholdings </li></ul></ul><ul><li>Which supplier(s)? </li></ul><ul><li>In which geographic market(s)? </li></ul>2. Who and where specifically?
    9. 14. Step 2. Identifying priority ecosystem services
    10. 15. Step 3. Ecosystem service trends and drivers framework <ul><li>1. Condition and trends in the </li></ul><ul><li>ecosystem service </li></ul><ul><ul><li>Supply and demand </li></ul></ul><ul><ul><li>Quantity and quality </li></ul></ul><ul><ul><li>Present and future </li></ul></ul><ul><li>2. Direct drivers </li></ul><ul><ul><li>Changes in land use and land cover </li></ul></ul><ul><ul><li>Overconsumption </li></ul></ul><ul><ul><li>Climate change </li></ul></ul><ul><ul><li>Pollution </li></ul></ul><ul><ul><li>Invasive, non-native species </li></ul></ul><ul><ul><li>Other </li></ul></ul><ul><li>4. Activities of others </li></ul><ul><li>Who </li></ul><ul><li>How </li></ul><ul><li>Where </li></ul><ul><li>To what degree </li></ul><ul><li>5. Indirect drivers </li></ul><ul><ul><li>Governmental </li></ul></ul><ul><ul><li>Demographic </li></ul></ul><ul><ul><li>Economic </li></ul></ul><ul><ul><li>Technological </li></ul></ul><ul><ul><li>Cultural and religious </li></ul></ul><ul><li>3. Company activities </li></ul><ul><ul><li>How </li></ul></ul><ul><ul><li>Where </li></ul></ul><ul><ul><li>To what degree </li></ul></ul>
    11. 16. Step 4. Types of risks and opportunities arising from trends in ecosystem services Type Risk Opportunity NOT EXHAUSTIVE Operational <ul><li>Increased scarcity or cost of inputs </li></ul><ul><li>Reduced output or productivity </li></ul><ul><li>Disruption to business operations </li></ul><ul><li>Increased efficiency </li></ul><ul><li>Low-impact industrial processes </li></ul>Regulatory and legal <ul><li>Extraction moratoria </li></ul><ul><li>Lower quotas </li></ul><ul><li>Fines </li></ul><ul><li>User fees </li></ul><ul><li>Permit or license suspension </li></ul><ul><li>Permit denial </li></ul><ul><li>Lawsuits </li></ul><ul><li>Formal license to expand operations </li></ul><ul><li>New products to meet new regulations </li></ul><ul><li>Opportunity to shape government policy </li></ul>Reputational <ul><li>Damage to brand or image </li></ul><ul><li>Challenge to social “license to operate” </li></ul><ul><li>Improved or differentiated brand </li></ul>Market and product <ul><li>Changes in customer preferences (public sector, private sector) </li></ul><ul><li>New products or services </li></ul><ul><li>Markets for certified products </li></ul><ul><li>Markets for ecosystem services </li></ul><ul><li>New revenue streams from company-owned or managed ecosystems </li></ul>Financing <ul><li>Higher cost of capital </li></ul><ul><li>More rigorous lending requirements </li></ul><ul><li>Increased investment by progressive lenders and socially responsible investment funds </li></ul>
    12. 17. Step 5. Categories of strategies Internal changes Sector or stakeholder engagement Policy-maker engagement Operations Product strategy Market strategy Procurement strategy Land management Etc. Industry peer collaboration Cross-sector collaboration NGO collaboration Transactions with stakeholders Etc. Tax incentives Subsidy reforms Protected areas Zoning Etc.
    13. 18. What the ESR is not <ul><li>It is not dependent upon economic valuation of ecosystem services </li></ul><ul><li>It does not identify or address every environmental issue </li></ul><ul><li>It is not strictly quantitative </li></ul><ul><li>It does not require a long, multiyear analysis </li></ul>
    14. 19. Supporting tools available in Guidelines and on website <ul><li>Methodology “cheat sheet” </li></ul><ul><li>Ecosystem service list, definitions, and examples </li></ul><ul><li>Spreadsheet questionnaire and tool or assessing dependence and impact </li></ul><ul><li>Frameworks for analyzing trends and identifying risks and opportunities </li></ul><ul><li>Case examples </li></ul><ul><li>Other resources </li></ul>www.wri.org/ecosystems/esr
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