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Mainstreaming Ecosystem Services Corporate Consultative Group September, 2008. World Resources Institute. www.zenon.com. What is this?. Water filtration plant. www.magazine.noaa.gov. What is this?. Storm protection system. What is this?. A playground.
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Mainstreaming Ecosystem Services Corporate Consultative Group September, 2008 World Resources Institute
www.zenon.com What is this? Water filtration plant
www.magazine.noaa.gov What is this? Storm protection system
What is this? A playground
Introducing “ecosystem services” Provisioning Goods or products obtained from ecosystems Regulating Benefits obtained from an ecosystem’s control of natural processes Cultural Nonmaterial benefits obtained from ecosystems
The Millennium Ecosystem Assessment Examined links between ecosystems and human well-being 1360 experts from 95 countries, 2001-2005 Photo courtesy of USDA NRCS Photo courtesy of USDA NRCS Partnership of UN agencies, business, and NGOs VNU <www.vnu.com> Photo courtesy of USDA NRCS
Millennium Ecosystem Assessment Findings Source: Adapted from the Millennium Ecosystem Assessment. 2005. Ecosystems and Human Well-being: Synthesis. Washington, DC: Island Press.
Operational risk: Reduced productivity Photo Courtesy of Flickr: BlueOakPhotos
Regulatory risk: Lawsuits Photo Courtesy of Flickr: Hsivonen
Regulatory opportunity: New products to meet new regulations Photo Courtesy of Flickr: Powi…(ponanwi
Market opportunity: New markets for ecosystem services • Carbon • Biodiversity • Wetland mitigation • Water quality
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. Develop strategies 4. Identify business risks and opportunities 3. Analyze trends in priority services 2. Identify priority ecosystem services 1. Select the scope Steps in the Corporate Ecosystem Services Review
Operational • Increased scarcity or cost of inputs • Reduced output or productivity • Disruption to business operations • Increased efficiency • Low-impact industrial processes Regulatory and legal • Extraction moratoria • Lower quotas • Fines, user fees • Permit or license suspension • Permit denial • Lawsuits • Formal license to expand operations • New products to meet new regulations • Opportunity to shape government policy Reputational • Damage to brand or image • Challenge to social “license to operate” • Improved or differentiated brand Market and product • Changes in customer preferences (public sector, private sector) • New products or services • Markets for certified products • Markets for ecosystem services • New revenue streams from company-owned or managed ecosystems Financing • Higher cost of capital • More rigorous lending requirements • Increased investment by progressive lenders and socially responsible investment funds Step 4. Types of risks and opportunities NOT EXHAUSTIVE Type Risk Opportunity World Resources Institute
Step 5. Identify strategies Sector or stakeholder engagement Internal changes 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.
Next steps • Environmental management systems • Indicators • Economic valuation • New markets • Policy development • Business & Ecosystems Leadership Group
www.wri.org/ecosystems/esr Craig Hanson, Acting Director +1 202 729-7624 craig.hanson@wri.org John Finisdore, Researcher +1 202 729-7897 john.finisdore@wri.org