Ecosystem valuation in the news

2. Ecosystem valuation in the news Financial Times 22 March 2011

3. Value of ecosystems • € 1.35 trillion / year: minimum estimate of natural capital loss, just from deforestation • Approx. total GDP of UK or France in 2010 • US$ 190 billion / year: contribution of insect pollination to agriculture output • Approx. 8 times Walmart’s 2010 total operating income Source: The Economics of Ecosystems and Biodiversity TEEB for Business 2010

4. Ecosystem business impacts & dependence Business impacts on ecosystems and ecosystem services Ecosystem change creates business risks and opportunities Business depends on ecosystems and ecosystem services

5. Drivers for Corporate Ecosystem Valuation Investors / buyer’s policies e.g. Risk assessment in supply chains, B2B customers Awareness of nature’s value e.g. impact of TEEB Regulation e.g. stricter national policies Business Demand for reportinge.g. “footprint”

6. 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 • A price list of biodiversity & ecosystem services • A calculator to “crunch numbers” • A stand-alone methodology

7. Partners and Road Testers Partners Road Testers

8. Hierarchy of valuation approaches Monetary Monetary values not always available or required Quantitative Qualitative Source: P. ten Brink as cited in TEEB – an interim report (2008)

9. 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?

10. 5 stages to undertake a CEV exercise Preparation Valuation Post valuation 1) 1) 2) 2) 3) 3) 4) 4) 5) 5) Embedding Scoping Scoping Planning Planning Valuation Valuation Application define scope for valuation exercise, using checklist of questions develop suitable plan to undertake valuation effectively actual valuation: may be qualitative, quantitative and/or monetary use & communicate valuation results to influence internal & external decision-making embed the CEV approach within company processes & procedures

11. In summary • 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)

12. “We see the value of ecosystem valuation”

13. Panel reactions Moderator • James Griffiths, WBCSD Panelists • Gerard Bos, Holcim • Peter Gardiner, Mondi • Josh Bishop, IUCN • Christophe Bouvier, UNEP • Sibylle Vermont, Swiss Federal Office for the Environment

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

16. Resources available on wbcsd.org/web/cev.htm Reports & guide • Additional resource notes • Concepts • Selection & application of techniques Road tester summaries PPT packs