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Corporate Ecosystem Services Review Training How to Use the ESR

Corporate Ecosystem Services Review Training How to Use the ESR. The ESR’s value added. Impacts and dependencies. New considerations – regulating services . New perspective – unites economic & environmental . Framework for considering tradeoffs .

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Corporate Ecosystem Services Review Training How to Use the ESR

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  1. Corporate Ecosystem Services Review Training How to Use the ESR

  2. The ESR’s value added Impacts and dependencies New considerations –regulating services New perspective – unites economic & environmental Framework for considering tradeoffs Solutions – regulatory and markets Scientific consensus

  3. Agenda Getting started ESR methodology Ecosystem services for corporate decision-making

  4. Agenda Getting started ESR methodology Ecosystem services for corporate decision-making

  5. Suppliers Company Customers Getting internal support Consider which stage of the value chain to apply the ESR And identify: • Known risk or opportunity • Competitor’s experience • Gap analysis

  6. Reputational risk: Challenge to social “license to operate” Photo Courtesy of Flickr: ahisgett

  7. Gap analysis: ESR & EIA

  8. Forming an ESR team Key members • Environment and sustainability • Corporate strategy/research • Production/service team • Finance • External relations • Foundation (if related to core business) • External experts • Ecosystem services • Strategic consultants

  9. Agenda Getting started ESR methodology Ecosystem services for corporate decision-making

  10. 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

  11. 1. Select the scope Steps in the Corporate Ecosystem Services Review

  12. 1. Which stage of the value chain? Suppliers Company Customers 2. Who and where specifically? • Which supplier(s)? • In which geographic market(s)? • Which customer(s)? • In which geographic market(s)? • What aspect of the company? • Business unit • Product line • Facility • Project • Landholdings Step 1. Considerations when selecting the scope 3. Is it strategic, timely, and supported?

  13. 2. Identify priority ecosystem services 1. Select the scope Steps in the Corporate Ecosystem Services Review

  14. Go to worksheet

  15. Step 2. Select priority services

  16. Step 2. Select priority services

  17. 3. Analyze trends in priority services 2. Identify priority ecosystem services 1. Select the scope Steps in the Corporate Ecosystem Services Review

  18. Step 3. Trends analysis framework Condition and trends in ecosystem service Activities of others Company activities Direct drivers Indirect drivers

  19. Step 3. Trends analysis framework

  20. Trends analysis – Pollination Case Study Kodagu, Kerala

  21. 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

  22. 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. Risks and opportunities NOT EXHAUSTIVE Type Risk Opportunity

  23. Step 4. Risks and opportunities

  24. 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

  25. Step 5. Categories of 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.

  26. Michelin uses ecosystems to improve factory footprint

  27. BC Hydro engages stakeholders

  28. Mondi leverages expertise to inform water policy

  29. The ESR supports many business decisions • Corporate, business unit, or market strategy development • Planning for corporate infrastructure projects • Identification of new markets, products, or services • Identification of new revenue streams from corporate landholdings • Policy-maker engagement strategies • Environmental impact assessments • Environmental reporting

  30. Agenda Getting started ESR methodology Ecosystem Services for Corporate Decision Making

  31. Ecosystem services for corporate decision-making • EIA • LCA • SME • Financial Risk

  32. www.wri.org/ecosystems/esr

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