James Griffiths Evaluating Biodiversity Tokyo 170211


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  • In 2008, the World Resources Institute (WRI), World Business Council for Sustainable Development (WBCSD), and Meridian Institute developed The Corporate Ecosystem Services Review (ESR) to provide corporate managers with a proactive approach to making the connection between ecosystem change and their business goals. The ESR is a tool for corporate strategy and can augment existing environmental management systems. WBCSD member companies Akzo Nobel, Rio Tinto, Mondi, BC Hydro, and Syngenta road-tested the ESR and provided feedback during its development. The ESR has been used by an estimated 300 firms.
  • This is the NYC Catskills. It is also a water filtration plant for the residents of New York City, providing them with clean drinking water. New York City’s tap water has never passed through a filtration plant. The Catskill/Delaware watershed provides NY city and surrounding areas with 90 percent of their water supply (an average 1.3 billion gallons of drinking water per day) - filtered naturally through the ecosystem’s wetlands and waterways. In the late 1980s when the watershed was severely degraded by development, NYC considered building a filtration plant. Instead of building a US$6–8 billion plant (doesn’t include operating costs) as initially proposed, however, they decided to spend $1.5 billion to restore and conserve the Catskill Mountains watershed. This example highlights how economic and financial incentives can be aligned with goals that support both development and ecosystems. In the case of the Catskill/Delaware watershed, the payment for the natural water purification services also provides other services - carbon storage and recreational and cultural services at no additional cost.
  • U.S. federal law mandates that developers who destroy wetlands must replace them by purchasing credits or shares in wetland mitigation banks—typically located in the same watershed—to offset ecological damage. Recognizing an opportunity, ChevronTexaco received approval in 2005 to convert a tapped-out drilling site in Louisiana into a 2,800-hectare wetland to generate credits for the U.S. wetland mitigation banking market. At an expected market price of $50,000 to $62,000 per hectare, the company could earn more than $150 million selling the credits to developers. Source: Kenny, A. “Chevron Opens Mitigation Bank in Paradis(e).” Katoomba Group. Available at: http://ecosystemmarketplace.com/pages/article.news.php?component_id=4255&component_version_id=6132&language_id=12
  • Stage 1 – Scoping: This stage helps a company define the scope for the valuation exercise, using a checklist of questions. Only brief responses are required, and the process may involve numerous iterations. Stage 2 – Planning: This stage develops a suitable plan to undertake the valuation effectively. The plan should be more specific in terms of detail as compared to stage 1. Stage 3 – Valuation: This stage involves the actual valuation, which may be qualitative, quantitative and/or monetary. It begins by fully defining the company aspect to be valued, and ends up with subjecting the results to a sensitivity analysis. Stage 4 – Application: This stage involves companies using and communicating the valuation results to influence internal and external decision-making. Stage 5 – Embedding: The final stage is to embed the CEV approach within company processes and procedures.
  • Outlining the business response and actions that can be taken to better understand ones impact and dependence on ecosystems and their services, as well as reduce risks and engage new opportunities. The list also captures the main areas of work of the WBCSD Ecosystems Focus Area.
  • James Griffiths Evaluating Biodiversity Tokyo 170211

    1. 1. International Symposium 2011 Introducing the WBCSD Guide to Corporate Ecosystem Valuation James Griffiths, Tokyo, 17 th February 2011
    2. 2. <ul><li>World Business Council for Sustainable Development (WBCSD) </li></ul><ul><li>Biodiversity & Ecosystem Services – implications for business </li></ul><ul><li>Introduce the Guide to Corporate Ecosystem Valuation (CEV) </li></ul><ul><ul><li>Improving corporate decision-making through valuing ecosystem services </li></ul></ul>Agenda
    3. 3. <ul><li>Global CEO-led coalition of some 200 international companies, from 35 countries and 22 sectors, with a shared commitment to sustainable development – economic growth, ecological balance and social progress </li></ul><ul><li>Support the business license to operate, innovate and grow in a world increasingly shaped by sustainable development issues </li></ul><ul><ul><li>Business leadership </li></ul></ul><ul><ul><li>Policy development </li></ul></ul><ul><ul><li>Best Practice </li></ul></ul><ul><ul><li>Global Outreach </li></ul></ul>1. What is the World Business Council for Sustainable Development (WBCSD)?
    4. 4. WBCSD members collectively account for: 15 million employees; 7 USD trillion annual revenues; 5 USD trillion market capitalization (2009)
    5. 5. WBCSD - member companies from Japan
    6. 6. <ul><li>Executive Committee (WBCSD Board) </li></ul><ul><li>Masataka Shimizu, TEPCO (Vice Chair) </li></ul><ul><li>Fujio Cho, Toyota Motor Corporation </li></ul><ul><li>Dr Shoichiro Toyoda (Honorary Committee) </li></ul><ul><li>Focus Area Core Teams (Policy Boards) </li></ul><ul><li>Development – Toyota Motor Corporation </li></ul><ul><li>Energy & Climate – TEPCO </li></ul><ul><li>Ecosystems – Hitachi (Hiroaki Nakanishi, Co-Chair) </li></ul><ul><li>Business Role – Sony Corporation </li></ul><ul><li>But also in major projects: </li></ul><ul><li>Vision 2050, Mobility, Cement Sustainability Initiative, Tire Industry Project, Eco Patents Commons, Electrical Utilities </li></ul><ul><li>And many WBCSD publications are in Japanese </li></ul>Active leadership by Japan members
    7. 7. Why ecosystems at WBCSD? <ul><li>Ecological balance is one of the three pillars of Sustainable Development </li></ul><ul><li>All businesses depend and impact on ecosystems and their services – either as part of their core operations or through their value chain </li></ul>
    8. 8. Why ecosystems at WBCSD? <ul><li>Ecosystem degradation can undermine the business license to operate by posing significant risks to companies, their suppliers, customers and investors </li></ul><ul><li>Eco-efficient goods, services & technologies and sustainable ecosystem management and service use represent new business opportunities and markets </li></ul>
    9. 9. WBCSD member company “policy board” on ecosystems Co-chairs:
    10. 10. How can business “deal” with biodiversity? Storm protection system A playground Ecosystem services <ul><li>The benefits society and business obtain from ecosystems </li></ul><ul><li>The “goods and services of nature” </li></ul>Biodiversity <ul><li>The variability among living organisms </li></ul><ul><ul><li>Within species & populations </li></ul></ul><ul><ul><li>Between species </li></ul></ul><ul><ul><li>Between ecosystems </li></ul></ul>Ecosystem <ul><li>A dynamic complex of plant, animal, and micro-organism communities and the non-living environment interacting as a functional unit </li></ul>
    11. 11. 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
    12. 12. Ecosystem change creates business risks and opportunities The business case for action on ecosystems is based on… Businesses impact on ecosystems and ecosystem services Businesses rely and depend on ecosystems and ecosystem services
    13. 13. <ul><li>The global public policy agenda on biodiversity and ecosystem services – implications for business </li></ul>Agenda item 2
    14. 14. Introducing the Millennium Ecosystem Assessment (MA) 2001-04 Photo courtesy of USDA NRCS Largest assessment of health of ecosystems ever undertaken Scientifically credible and politically legitimate source of information Photo courtesy of USDA NRCS Photo courtesy of USDA NRCS Photo courtesy of USDA NRCS 1,360 experts from 95 countries over 4 years Partnership of UN agencies, five conventions, business, and NGOs VNU <www.vnu.com> Examined links between ecosystems and human well-being World Resources Institute
    15. 15. Ecosystems balance sheet – 60 % are being degraded (MA 2005)
    16. 16. Drivers of ecosystem degradation – by 2050 <ul><ul><li>Population size (7 billion now, reaching 9-10 billion people) </li></ul></ul><ul><ul><li>Per capita income (growing 2-4 times) </li></ul></ul><ul><ul><li>Land conversion (converting 10-20% of additional grassland and forestland) </li></ul></ul><ul><ul><li>Overexploitation incl. overfishing (increasing pressure) </li></ul></ul><ul><ul><li>Invasive alien species (continuing spread) </li></ul></ul><ul><ul><li>Reactive nitrogen flow (increasing by another 66% – already doubled during the past 50 years) </li></ul></ul><ul><ul><li>Climate change (continuing global warming – expected to become the predominant global cause of ecosystem degradation and ecosystem service loss) </li></ul></ul>
    17. 17. The Economics of Ecosystems and Biodiversity (TEEB) has changed the “value” of nature <ul><li>Urgent strategic priorities: </li></ul><ul><li>Halt deforestation and forest degradation </li></ul><ul><li>Protect tropical coral reefs </li></ul><ul><li>Save and restore global fisheries </li></ul><ul><li>Recognize link between ecosystem degradation and the persistence of rural poverty </li></ul><ul><li>Policy solutions: </li></ul><ul><li>Rewarding benefits through payments and markets </li></ul><ul><li>Reforming environmentally harmful subsidies </li></ul><ul><li>Adding value through protected areas </li></ul><ul><li>Investing in ecological infrastructure </li></ul>
    18. 18. <ul><li>€ 1.35 trillion minimum estimate of annual natural capital loss, just from deforestation </li></ul><ul><li>US$ 3.7 trillion (NPV) avoided GHG emissions from conserving forests (by 2020) </li></ul><ul><li>US$ 190 billion p.a. contribution of insect pollination to agriculture output </li></ul><ul><li>Up to 50 % of the US$ 640 billion pharmaeucitical markets derived from genetic resources </li></ul><ul><li>Cost of ecological degradation in China in 2008 calculated at US$ 197 billion , up 75 % since 2004 </li></ul><ul><li>Markets/payments for ecosystem services - growth estimates 2008/20 </li></ul><ul><ul><li>Certified agriculture – US$ 40 billion to US$ 210 billion </li></ul></ul><ul><ul><li>Certified forest products – US$ 5 billon to US$ 15 billion </li></ul></ul><ul><ul><li>Payments for watershed management (voluntary) – US$ 5 million to US$ 2 billion </li></ul></ul><ul><ul><li>Mandatory biodiversity offsets – from US$ 3.4 billion to US$ 10 billion </li></ul></ul><ul><ul><li>Source: TEEB, Forest Trends, China Environment Academy </li></ul></ul>The value of ecosystems and ecosystem services
    19. 19. <ul><li>New Strategic Plan approved by 179 parties </li></ul><ul><ul><li>“ Aichi” targets for biodiversity by 2020 </li></ul></ul><ul><ul><ul><li>Increase land Protected Area to 17%; marine to 10 % </li></ul></ul></ul><ul><ul><ul><li>Halve rate of habitat lost including forests </li></ul></ul></ul><ul><li>Nagoya Protocol on Access & Benefit Sharing </li></ul><ul><ul><li>Governments stewardship over genetic resources and traditional knowledge in situ reconfirmed </li></ul></ul><ul><ul><li>New obligations - “Prior and informed” consultation and “Mutually Agreed Terms” for benefit sharing with resource owners, including Indigenous Peoples </li></ul></ul><ul><li>Intergovernmental Platform on Biodiversity and Ecosystems Services (IPBES) </li></ul>Convention on Biological Diversity COP 10, October 2010, Nagoya – key outcomes (1/2 )
    20. 20. <ul><li>TEEB – final reports delivered </li></ul><ul><ul><li>Valuation of biodiversity and ecosystems endorsed as an enhanced public policy tool </li></ul></ul><ul><li>Positive business decision – a solution provider </li></ul><ul><ul><li>International dialogue hosted by WBCSD, IUCN and Nippon Keidanren (October 26 th ) - formal business day at next COP 11 </li></ul></ul><ul><ul><li>Encouraged establishment of Business & Biodiversity platforms e.g. Japan Business & Biodiversity platform </li></ul></ul><ul><ul><li>Biodiversity offsets noted as an option for incorporating biodiversity and ecosystems into company operations </li></ul></ul><ul><li>Precautionary principle on GM technology cont… </li></ul><ul><li>De facto moratorium on geo-engineering adopted </li></ul>CBD COP 10, October 2010, Nagoya – key outcomes (2/2)
    21. 21. <ul><li>CBD parties will adjust National Biodiversity Strategies for new targets and commitments by COP 11, in New Delhi, Oct 2012 – requested to consult business on: </li></ul><ul><ul><li>Impacts on biodiversity, ecosystems and ecosystem services </li></ul></ul><ul><ul><li>Policy frameworks to support sustainable use </li></ul></ul><ul><ul><li>Removal harmful subsidies & introduction of positive incentives </li></ul></ul><ul><li>Ecosystem valuation as an enhanced public policy tool </li></ul><ul><ul><li>but also anticipate uptake by finance sector and major business –to-business customers to help manage biodiversity and ecosystem risks of investments and supply chains </li></ul></ul><ul><li>ABS Protocol </li></ul><ul><ul><li>new obligations and costs for pharmaceutical and parts of the food additives, personal care and chemicals industries </li></ul></ul><ul><li>IPBES – more frequent global assessments & data </li></ul>COP 10 Business implications
    22. 22. UNFCCC - Forests & Climate <ul><li>Kyoto Protocol significantly under leveraged forests and sustainable forest management as climate change mitigation and adaptation options </li></ul><ul><li>Bali COP 13 introduced the concept of payments to developing countries for reducing emissions from deforestation and degradation (REDD) </li></ul><ul><ul><li>Fungible market for carbon sequestration services </li></ul></ul><ul><ul><li>Linked to global price of carbon and any increase in forest carbon storage </li></ul></ul><ul><ul><li>Limited to developing countries (non Annex 1) </li></ul></ul>
    23. 23. From REDD to REDD + = global payments for BES “experiment” <ul><li>Subsequent formal and informal processes further developed consensus on the scope, framework, finance and implementation </li></ul><ul><li>Expanded concept to REDD + to support forest conservation and sustainable management of forests and enhancement of forest carbon stocks </li></ul><ul><ul><li>REDD + Partnership launched May 2009 (Norway/Indonesia co-chairs) </li></ul></ul><ul><ul><li>World Bank (FIP, FCPF) & UN REDD working on early implementation </li></ul></ul><ul><ul><li>Bilateral ODA investments with a REDD + focus (e.g. UK/Ghana) </li></ul></ul><ul><ul><li>Ongoing voluntary market innovation on forest carbon offsets </li></ul></ul><ul><ul><li>The Forests Dialogue (TFD) multi-stakeholder process developed REDD + recommendations based on 10 policy & field dialogues </li></ul></ul>
    24. 24. UNFCCC, Cancun COP 16 (December 2010) <ul><li>Cancun Decision strong focus on role of forests as mitigation & adaptation strategies in developing countries </li></ul><ul><li>Section C, LCA WG decision + Annex 1 on safeguards + Annex II SBSTA work program </li></ul><ul><ul><li>Reducing emissions from deforestation & forest degradation + conservation & enhancement of forest carbon stocks + sustainable management of forests in developing countries </li></ul></ul><ul><ul><li>Preparation of National level strategy/action plans including </li></ul></ul><ul><ul><ul><li>National forests/emissions reference level </li></ul></ul></ul><ul><ul><ul><li>Safeguards and national policy change </li></ul></ul></ul><ul><ul><ul><li>Addressing external drivers , land tenure and effective involvement of Indigenous Peoples and local communities </li></ul></ul></ul><ul><ul><ul><li>SBSTA work program elements </li></ul></ul></ul><ul><ul><ul><li>Mobilization of finance to support these decisions </li></ul></ul></ul>
    25. 25. <ul><li>Anticipate significant changes in </li></ul><ul><ul><li>Government policy and regulation of business </li></ul></ul><ul><ul><ul><li>Impacts on biodiversity </li></ul></ul></ul><ul><ul><ul><li>Access to and use of ecosystem services – fresh water availability & quality are “leading edge” ecosystem provisioning and regulating service challenges </li></ul></ul></ul><ul><ul><ul><li>Measurement, valuation, accounting, verification & reporting on impacts, use & management </li></ul></ul></ul><ul><ul><li>Stakeholders expectations about impacts and use levels – from customers, investors, governance boards, communities & employees </li></ul></ul>Smart companies with material ecosystem “footprints” need to be proactive :
    26. 26. <ul><li>Introducing the WBCSD Guide to Corporate Ecosystems Valuation (CEV) </li></ul><ul><ul><li>Improving corporate decision-making through valuing ecosystem services </li></ul></ul>Agenda item 3 – the business response
    27. 27. <ul><li>Measure, manage and mitigate risks and impacts </li></ul><ul><li>Improve decision-making by undertaking corporate ecosystem valuation to quantify business risks and opportunities </li></ul><ul><li>Innovate and help develop new markets for ecosystem services and eco-efficient goods, services & technologies </li></ul><ul><li>Encourage suppliers & purchasers to adopt best practices </li></ul><ul><li>Enter into local partnerships to address on-the-ground issues </li></ul><ul><li>Promote “smart” ecosystem regulation that leverages market forces and business solutions that halt degradation and “levels the playing field” for all </li></ul>How can business respond to their biodiversity and ecosystems issues?
    28. 28. WBCSD develops practical decision-making tools to help business deal with the dynamic sustainable development agenda……including
    29. 29. <ul><li>Structured method to develop strategies to manage risks and opportunities arising from impact and dependence on ecosystems </li></ul><ul><li>WRI/ WBCSD/ Meridian Institute </li></ul><ul><li>Approx. 300 companies using tool since March 2008 launch </li></ul><ul><li>Available in Japanese (& more) </li></ul>Corporate Ecosystem Services Review (ESR) guidelines
    30. 30. ESR helps companies assess ecosystem impacts and dependence priorities and develop response strategies Key activity Step <ul><li>Outline strategies for minimizing risks and maximizing opportunities through: </li></ul><ul><li>Internal changes </li></ul><ul><li>Sector or stakeholder engagement </li></ul><ul><li>Policy-maker engagement </li></ul>Develop strategies Identify and evaluate business risks and opportunities that might arise due to the trends in these priority ecosystem services Identify business risks and opportunities Research and evaluate conditions and trends in the priority ecosystem services, and drivers of these trends Analyze trends in priority services Systematically evaluate the degree of a company’s dependence and impact on 20+ ecosystem services Identify priority ecosystem services Choose boundary within which to conduct ESR Select the scope
    31. 31. Helps focus on opportunities $ 4.5 billion saving
    32. 32. Can help revalue ecosystem assets and identify new revenue streams $ 150 million income from selling wetland credits
    33. 33. Introducing the WBCSD Guide to Corporate Ecosystem Valuation (CEV) CEV Partners: OUT in April incl Japanese translation
    34. 34. CEV developed based on road testing by these 15 companies
    35. 35. <ul><li>Provide a framework and step by step approach to ecosystem valuation which is relevant to companies by: </li></ul><ul><ul><li>Explicitly accounting for the full value of ecosystem impacts and inputs, including costs associated with ecosystem loss (next step after ESR) </li></ul></ul><ul><ul><li>Linking ecosystem service risks and opportunities more directly to the bottom line </li></ul></ul><ul><ul><li>Providing clarity, consistency and guidance in approaches and techniques used </li></ul></ul><ul><ul><li>Facilitating more objective decision-making to that better align financial, ecological and societal benefits </li></ul></ul>Objectives of CEV
    36. 36. Pre screening – do you even need to conduct a CEV exercise <ul><ul><li>How “material” are your impacts & dependence? </li></ul></ul><ul><ul><li>How will valuation help? </li></ul></ul>
    37. 37. 5 steps to undertake a CEV exercise 5) 5) Embedding embed the CEV approach within company processes & procedures Post valuation 4) 4) Application use & communicate valuation results to influence internal & external decision-making Valuation 3) Valuation 3) Valuation actual valuation: may be qualitative, quantitative and/or monetary 2) Planning 2) Planning develop suitable plan to undertake valuation effectively Preparation 1) Scoping 1) Scoping define scope for valuation exercise, using checklist of questions
    38. 38. <ul><li>Manage risk – operational, regulatory, reputational, market/product & financing </li></ul><ul><li>Achieve cost efficiencies – save costs, reduce taxes, sustain revenues </li></ul><ul><li>Develop new business opportunities- revalue your natural assets, identify new revenue streams, explore new products and markets </li></ul>Why conduct a CEV? To improve business decision-making around ecosystems!!
    39. 39. Applications of CEV within a business What business decision is needed? How can CEV help? What is the best option from a range of alternatives? Trade-off analysis What is the true total value of a landholding or natural asset? Total valuation Which stakeholders are affected by different company impacts, and by how much? Distributional analysis Which stakeholders deserve compensation and how much? Sustainable financing and compensation analysis
    40. 40. <ul><li>Main focus = ecosystem services </li></ul><ul><ul><li>Includes underpinning biodiversity </li></ul></ul><ul><li>Some coverage of wider ‘environmental externalities’ </li></ul><ul><ul><li>E.g. non-traded carbon and NOx impacts </li></ul></ul><ul><li>Broader socio-economic impacts excluded </li></ul><ul><ul><li>E.g. jobs, taxes, expenditures etc </li></ul></ul>CEV guide - what is covered?
    41. 41. Hierarchy of valuation approaches Source: P. ten Brink as cited in TEEB – an interim report (2008)
    42. 42. <ul><li>Selected Ecosystem Valuation Concepts and Issues </li></ul><ul><li>Ecosystem Services and Total Economic Valuation </li></ul><ul><li>Other related CEV concepts and issues </li></ul><ul><ul><li>E.g. Cumulative effects, discounting, environmental thresholds, intrinsic values… </li></ul></ul><ul><li>Business approaches that CEV can be linked to </li></ul><ul><ul><li>E.g. Financial accounting, full (environ-mental) cost accounting , economic cost-benefit analysis, company reporting, environmental management systems, environmental and Social Impact Assessment, Ecosystem Services Review, Life Cycle Analysis </li></ul></ul>Additional notes A (will be available on web from April)
    43. 43. <ul><li>Selection & Application of Ecosystem Valuation Techniques for CEV </li></ul><ul><li>The main categories of ecosystem valuation techniques available </li></ul><ul><ul><li>E.g. Revealed preference techniques, market prices, substitute prices, travel cost method, Willingness To Pay, benefit (value) transfer </li></ul></ul><ul><li>Selecting the most suitable techniques </li></ul><ul><ul><li>Incl. table comparing techniques incl. data required, time / budget, skills required, (dis)advantages </li></ul></ul><ul><li>Applying the techniques </li></ul><ul><ul><li>Incl. steps for how to use: Effect on production, replacement costs, stated preference surveys and benefit (value) transfer </li></ul></ul><ul><li>Approaches for valuing other environmental externalities </li></ul><ul><ul><li>E.g. Carbon related greenhouse gas (GHG) externalities, water quality related environmental externality impacts </li></ul></ul><ul><li>References (incl. databases) </li></ul>Additional notes B (will be available on web from April)
    44. 44. <ul><li>Compare the societal costs of atmospheric emissions for three alternative chemicals used in paper production – AkzoNobel </li></ul><ul><li>Assess community costs and benefits of maintaining higher water levels in the canals and reservoirs associated with several hydropower facilities – EDP </li></ul><ul><li>Evaluate the ecosystem services impacts and dependencies relating to an existing oil operation and to a new development in a sensitive area near a national park – Eni </li></ul><ul><li>Evaluate the cultural services associated with tourism at a conservation area associated with a pumped storage scheme – Eskom </li></ul><ul><li>Assess the value of ecosystem services provided under several catchment management options – GHD / SA Water </li></ul><ul><li>Evaluate the costs associated with carbon emissions for alternative manufacturing processes for multi-layer CCL (Copper-Clad Laminates) used in electronic products – Hitachi Chemical </li></ul><ul><li>Inform a rehabilitation plan for proposed extensions to a sand and gravel pit, and examine the net value of ecosystem services under several alternative scenarios – Holcim </li></ul>CEV road test examples (1/2)
    45. 45. <ul><li>Inform land management planning for reclamation of a quarry – Lafarge </li></ul><ul><li>Map and value water dependencies among major water users in a South African watershed – Mondi </li></ul><ul><li>Highlight differences in the processes used to estimate compensation values for past projects – Repsol </li></ul><ul><li>Assess the financial and social costs and benefits of conserving areas of rainforest as part of a policy of Net Positive Impact (NPI) on biodiversity – Rio Tinto </li></ul><ul><li>Assess the value of natural pollination, and the value of providing habitat buffer strips for native bees – Syngenta </li></ul><ul><li>Quantify physical ecosystem benefits realized through the process of matching undervalued or waste materials from one company with the needs of another – US BCSD / Houston By-Product Synergy </li></ul><ul><li>Assess the financial and ecological benefits associated with replacing a storm-water management system with a constructed wetland – US BCSD / CCP </li></ul><ul><li>Prioritize water use and land management options relating to biofuel production in an ecologically and culturally important location – Veolia Environment </li></ul><ul><li>Assess the economic value of ecosystem services produced under different management scenarios for forested land – Weyerhaeuser </li></ul>CEV road test examples (2/2)
    46. 46. <ul><li>Highlights financial & societal values of ecosystems and ecosystem services </li></ul><ul><li>Makes decision making around ecosystems more tangible, practical, compelling and impactful </li></ul><ul><li>Has internal and external applications </li></ul><ul><li>Conforms to best international practice </li></ul><ul><li>Based on extensive applied experience </li></ul><ul><li>Monetary values not always required </li></ul><ul><li>Is just one input to decision-making that can be linked to other business tools and planning processes </li></ul>Concluding remarks on CEV
    47. 47. <ul><li>CBD parties to adjust National Biodiversity Strategies for new targets and commitments by 2012 – will consult business on: </li></ul><ul><ul><li>Impacts on biodiversity </li></ul></ul><ul><ul><li>Policy frameworks to support sustainable use </li></ul></ul><ul><ul><li>Removal harmful subsidies & intro positive incentives </li></ul></ul><ul><li>WBCSD Guide “operationalizing” the TEEB framework at the corporate level </li></ul>CBD, TEEB and CEV
    48. 48. <ul><li>Measure, manage and mitigate impacts and dependence; proactively address risks and explore opportunities </li></ul><ul><li>Improve decision-making by undertaking corporate ecosystem valuation to quantify business risks and opportunities </li></ul><ul><li>Innovate and help develop new: </li></ul><ul><ul><li>Markets for ecosystem services </li></ul></ul><ul><ul><li>Eco-efficient goods, services & technologies </li></ul></ul><ul><li>Encourage suppliers & purchasers to adopt best practices </li></ul><ul><li>Enter into creative partnerships with municipalities and governments, NGOs, scientific community, sectors associations to address on-the-ground issues </li></ul><ul><li>Promote “smart” ecosystem regulation that reverses degradation, leverages markets/business solutions & “levels the playing field” </li></ul>CEV can enhance the business response to biodiversity and ecosystem service challenges
    49. 49. Thank you for your attention www.wbcsd.org [email_address]