Valuing ecosystems can it help business make better decisions? 9 September 2012 11:00 – 13:00

1. Valuing ecosystems can it help business make better decisions? 9 September 2012 11:00 – 13:00

2. Agenda Intro, Nicholas Conner (WCPA) Quiz, Tobias Hartmann / Marion Hammerl (Global Nature Fund) Ecosystem valuation 101, Nathalie Olsen (IUCN) Valuing naturein business, Eva Zabey (WBCSD) CEV Rio Tinto example, Nathalie Olsen (IUCN) Example: assessing the value of watershed management (Interactive session), Mathieu Tolian (Veolia Water) Role of different stakeholders (Mark Weick, Dow) Final reflections, Peter Bakker (WBCSD)

3. Who we are Global Nature Fund is a non-profit, private, independent international foundation for the protection of environment and nature IUCN’s Global Economics Programme aims to help people capture the economic opportunities provided by biodiversity World Business Council for Sustainable Development (wbcsd) is a CEO-led organization of 200 forward-thinking companies IUCN World Commission on Protected Areas (WCPA) is the world's premier network of protected area expertise

4. Session objectives Raise awareness about the opportunities and risks of giving monetary values to ecosystems Encourage the uptake of valuation as one of the solutions to mitigate ecosystems degradation Use interactive exercises & presentations

5. Understanding the principles of valuation Quiz /exercise Tobias Hartmann / Marion Hammerl (Global Nature Fund)

6. Ecosystem valuation 101 Nathalie Olsen (IUCN)

7. Valuing natural capital in business Eva Zabey (WBCSD)

8. Business, nature and the economy Business, Biodiversity & Ecosystem Services (BES) What business can do External drivers Risks & opportunities Guide to CEV Key messages

9. Business, Biodiversity & Ecosystem Services (BES) Business, directly and indirectly, impacts on BES Ecosystem change creates business risks and opportunities Business, directly and indirectly,depends on BES

10. What can business do… right now? Proactively address risks & opportunities: Measure / value & manage / mitigate impact & dependence Innovate & help develop new: • Markets for BES • Eco-efficient goods, services & technologies Encourage suppliers, purchasers and consumers to adopt best practices Enter into creative partnerships (municipalities, gov, NGOs, academics, etc.) to address on-the-ground issues Promote “smart” regulation that reverses degradation, leverage markets & “levels the playing field” for all

11. External drivers for business to value nature Planetary boundaries Facts Science 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”

12. Who has most weight to drive business to value nature? Government (stricter regulation) Investors / purchasers (policies include ecosystem-related risk) Consumers (increased awareness, demand for reporting)

13. Risks Will be told to / have to pay for something you were getting for free • But sooner or later, companies will be asked to pay for the benefits they get from ecosystems, or the damage they have caused – better to have a head-start Will highlight weakest parts of business, “looking for trouble” with anti-business campaigners • Increasing desire for companies to report & be transparent – can help form partnerships, finding solutions cannot be done alone

14. Opportunities Help make better decisions Save costs Reduce taxes Get new revenue streams Assess liability & compensation risks Be a leader / ahead of the curve Prepare for stricter regulation Be seen as preferred partner, taking issues seriously

15. Partners and Road Testers Partners Road Testers

16. “We see the value of ecosystem valuation”

17. When will most companies report on their natural capital, along with their financial capital? Between now and 2020 Between 2020 and 2050 Never

18. Guide to 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

19. Hierarchy of valuation approaches Monetary ($ 20,000 / yr) Monetary values not always available or required Quantitative (25% reduction) Qualitative (low, medium, high) Source: P. ten Brink as cited in TEEB – an interim report (2008)

20. Key messages Business depends and impacts on BES Valuing nature can help business manage risk and consider new business opportunities Valuing ecosystem impact and dependency helps business make better decisions Ecosystem valuation will increasingly be considered by governments, finance sector and business-to-business customers – so need to report on natural capital, social capital and financial capital CEV Guide is complementary to other business tools (e.g. ESIAs, LCAs)

21. CEV example – Rio Tinto Nathalie Olsen (IUCN)

22. Assessing the value of watershed management (Interactive session), Mathieu Tolian (Veolia Water)

23. Role of different stakeholders Moderated by Nicholas Conner, WCPA Mark Weick, Dow Marion Hammerl, Global Nature Fund

24. Final reflections Peter Bakker, President, WBCSD