Pavan Sukhdev discusses the need to recognize the true value of nature and ecosystems in economic terms. Currently, measures like GDP do not account for natural capital like ecosystems that provide services. TEEB (The Economics of Ecosystems and Biodiversity) proposes a comprehensive valuation framework to capture the visible and invisible flows across the entire agricultural value chain from production to consumption. This would provide a more complete picture of the economic, social and environmental impacts versus just looking at per hectare productivity. Recognizing natural capital values can help make the case for conserving ecosystems instead of destroying them to address issues like poverty.

1. The Future of Food
Pavan Sukhdev
Study Leader, TEEB
Founder-CEO, GIST Advisory
& UNEP Goodwill Ambassador
The True Cost of American Food
San Francisco | 15th April 2016

2. Does nature have a price?

3. MARS
0 Biosphere

4. EARTH
1 Biosphere

5. Recognizing
value
Demonstrating
value
Capturing
value
Regional Plans
Legislations
PES
Certification
PA Evaluation
TEEB Approach to Valuation
Ch.4Ch.5 Ch.3 Ch.3

6. Norms,
Regulations
& Policies
Markets
Economic
Mechanisms
Recognizing
value
Demonstrating
value
Capturing
value
Regional Plans
Legislations
PES
Certification
PA Evaluation
TEEB Approach to Valuation
Ch.4Ch.5 Ch.3 Ch.3

7. GDP of the Poor
TEEB’s economic case for conserving, not destroying
ecosystems, to solve poverty
Source: Gundimeda and Sukhdev, TEEB for National & International Policy
Indonesia India Brazil
25%
75%
47%
89%
99 million 352 million 20 millionNature-dependent rural
poor & forest dwellers :
Ecosystem services
Ecosystem services
consumed by the poor as a
% of “GDP of the poor” :
Natural Capital Sectors’
contributions as a
% of classical GDP :
21%
79%
16%
84%
10%
90%

8. Typical large corporation impacts MANY
stakeholder classes & capital categories
* Community wealth and public wealth are elements of “shared value”
• Factories
• Buildings
• Securities
• Cash
Physical Capital
• Community
Centres
• Community
Schools
• Roads
• Bridges
• Public
Hospitals
• Health
• Education
• Job Skills
Human Capital
• Traditional
Community
Knowledge
• Public
Databases
• Non-patent
Knowledge
Social Capital
• Community
Norms &
Customs
• Law & Order
• Taxation
• Social Equity
& Inclusion
• Gardens
• Fields
• Forests
Natural Capital
• Community
Forests
• Grazing
Commons
• High Seas
Fisheries
• National
Parks/Forests
Private Owners
Community
Owners*
(Club Goods)
Public
Ownership*
(Public Goods)

9. Large corporations report ONE stakeholder
impact: Physical Capital of Shareholders
* Community wealth and public wealth are elements of “shared value”
• Factories
• Buildings
• Securities
• Cash
Physical Capital Human Capital Social Capital Natural Capital
Private Owners
Community
Owners*
(Club Goods)
Public
Ownership*
(Public Goods)

10. The visible flows of agricultural production

11. The visible and invisible flows!

12. That is why TEEBAgriFood has proposed
a Comprehensive Valuation Framework
“VALUE- ADDITION” Production
Value Chain Stages
Visible & Invisible Flows
Natural
Land-
scape
Infra
&
Mfg
Farm
Captured in SNA (Profits, Wages,
Taxes - Subsidies, etc)
The narrow field of
view of “per hectare
productivity”…

13. That is why TEEBAgriFood has proposed
a Comprehensive Valuation Framework
Social Values (food security;
gender equity; etc )
Risks & Uncertainties
(Resilience; Health; etc)
“VALUE- ADDITION” Production Processing & Distribution Consumption
Value Chain Stages
Visible & Invisible Flows
Natural
Land-
scape
Infra
&
Mfg
Farm Wholesale F & B Retail Industry/
Household/
Hospitality
Waste
Mngmt
Captured in SNA (Profits, Wages,
Taxes - Subsidies, etc)
Provisioning Services (Materials,
Energy, etc)
Regulation & Maintenance (Soil,
Water, Habitat, etc)
Cultural (lifestyle, heritage…)
Health (Nutrition, Diseases,
Antibiotic Resistance, etc)
Pollution (Nitrates, Pesticides,
Heavy metals, etc)
Emissions (CO2 ; CH4 ; etc)
The narrow field of
view of “per hectare
productivity”…

14. Thank You!
www.teebweb.org
Pavan Sukhdev
Study Leader, TEEB
Founder-CEO, GIST Advisory
& UNEP Goodwill Ambassador
/TEEB4ME @TEEB4ME