English Ecosystem Services Review

8/8/2019 English Ecosystem Services Review

1/19


2/19

World Resources Institute


3/19



4/19



5/19



6/19

What do these stories have in common?What do these stories have in common?

Companies facing unexpected risks or novel

opportunities

arising from their dependence and impact on

ecosystems


7/19

CulturalNonmaterial benefits

obtained from

ecosystems

RegulatingBenefits obtained

from control of

natural processes

by ecosystems

ProvisioningGoods or products

obtained from

ecosystems

Three categories of ecosystem servicesThree categories of ecosystem services


8/19

Trends in the worlds ecosystem services over past 50 yearsTrends in the worlds ecosystem services over past 50 years

DegradedDegraded MixedMixed EnhancedEnhancedProvisioningProvisioning Capture fisheries

Wild foods

Biomass fuel

Freshwater

Genetic resources

Biochemicals, natural

medicines, and pharmaceuticals

Timber and other woodTimber and other wood

fiberfiber

Other fibers (e.g., cotton,Other fibers (e.g., cotton,

hemp, silk)hemp, silk)

Crops

Livestock

Aquaculture

RegulatingRegulating Air quality regulation Regional and local climate

regulation

Erosion regulation

Water purification and waste

treatment

Pest regulation

Pollination Natural hazard regulation

Water regulationWater regulation

Disease regulationDisease regulation Global climate regulation

(carbon sequestration)

CulturalCultural Ethical values (spiritual,religious)

Aesthetic values

Recreation andRecreation and

ecotourismecotourism

Source: Adapted from the Millennium Ecosystem Assessment. 2005.Source: Adapted from the Millennium Ecosystem Assessment. 2005. Ecosystems and Human WellEcosystems and Human Well--being: Synthesis.being: Synthesis. Washington, DC: IslandWashington, DC: IslandPress.Press.


9/19

The Corporate Ecosystem Services ReviewThe Corporate Ecosystem Services Review

Structured methodology that helps managers proactively

develop strategies to manage business risks and opportunities

arising from their companys dependence and impact on ecosystems


10/19

Business benefitsBusiness benefits

Strengthen existing approaches to environmental managementStrengthen existing approaches to environmental management

Identify business risks and opportunitiesIdentify business risks and opportunities

Anticipate new markets and government policiesAnticipate new markets and government policies

Improve stakeholder relationshipsImprove stakeholder relationships

Demonstrate leadership in corporate sustainabilityDemonstrate leadership in corporate sustainability


11/19

Business decisions and processes the ESR can supportBusiness decisions and processes the ESR can support

Corporate, business unit, or market strategy development

Planning processes 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


12/19

Outline andprioritize

strategies for

managing the

risks and

opportunities

5. Developstrategies

Steps in a corporate ecosystem services reviewSteps in a corporate ecosystem services review

Key activity Identify andevaluate

business risks

and opportunities

that might arise

due to the trends

in priority

ecosystemservices

4. Identify businessrisks and

opportunities

Evaluateconditions and

trends in

priority

ecosystem

services, as

well as drivers

of these trends

3. Analyze trendsin priority

services

Systematicallyevaluate degree of

companys

dependence and

impact on

ecosystem

services

Determine highest

priority

servicesthose

most relevant to

business

performance

2. Identify priorityecosystem

services

Chooseboundary

within which

to conduct

ESR

Business

unit

Product

Market

Landholdings

Customer

Supplier

1. Select thescope

Step


13/19

Step 1. Considerations when selecting the scopeStep 1. Considerations when selecting the scope

1. Which stage of the1. Which stage of the

value chain?value chain?CustomersCompanySuppliers

Which

customer(s)?

In which

geographic

market(s)?

What aspect of the

company? Business unit

Product line

Facility

Project

Landholdings

Which

supplier(s)?

In which

geographic

market(s)?

2. Who and where2. Who and where

specifically?specifically?

3. Is it strategic, timely,3. Is it strategic, timely,

and supported?and supported?


14/19

Step 2. Identifying priority ecosystem servicesStep 2. Identifying priority ecosystem servicesECOSYSTEM SERVICES DEPENDENCE AND IMPACT MATRIX

Dependence Dependence Dependence

Provisioning

Crops -

Livestock - Capture fisheries

Aquaculture

Wild foods +

Timber and other wood fibers +

Other fibers (e.g., cotton, hemp, silk)

Biomass fuel +

Fresh water - Genetic resources ?

Biochemicals, natural medicines, and

' pharmaceuticals +

Regulating

Air quality regulation ? ?

Global climate regulation + Regional/local cl imate regulation +

Water regulation -

Erosion regulation -

Water purification and waste treatment - Disease regulation

Pest regulation Pollination

Natural hazard regulation

Cultural

Recreation and ecotourism + Ethical values +

Ecosystem services ImpactImpact Impact

CustomersCompany operationsSuppliers

Key

High + Positive impact

Medium - Negative impact

Low ? Don't know


15/19

Step 3. Ecosystem service trends and drivers frameworkStep 3. Ecosystem service trends and drivers framework

1. Condition and trends in theecosystem service

Supply and demand Quantity and quality

Present and future

2. Direct drivers

Changes in land use and land cover Overconsumption

Climate change

Pollution

Invasive, non-native species

Other

4. Activities of others

Who How

Where

To what degree

5. Indirect drivers

Governmental

Demographic

Economic

Technological

Cultural and religious

3. Company activities

How

Where

To what degree


16/19

Step 4. Types of risks and opportunities arising from trends in ecosystem servicesStep 4. Types of risks and opportunities arising from trends in ecosystem services

TypeType Risk Risk Opportunity Opportunity

OperationalOperational Increased scarcity or cost of inputsIncreased scarcity or cost of inputs

Reduced output or productivityReduced output or productivity Disruption to business operationsDisruption to business operations

Increased efficiencyIncreased efficiency

LowLow--impact industrial processesimpact industrial processes

Regulatory andRegulatory and

legallegal

Extraction moratoriaExtraction moratoria

Lower quotasLower quotas

FinesFines

User feesUser fees

Permit or license suspensionPermit or license suspension

Permit denialPermit denial

LawsuitsLawsuits

Formal license to expand operationsFormal license to expand operations

New products to meet newNew products to meet new

regulationsregulations

Opportunity to shape governmentOpportunity to shape government

policypolicy

ReputationalReputational Damage to brand or imageDamage to brand or image

Challenge to social license toChallenge to social license to

operateoperate

Improved or differentiated brandImproved or differentiated brand

Market andMarket andproductproduct

Changes in customer preferencesChanges in customer preferences(public sector, private sector)(public sector, private sector)

New products or servicesNew products or services Markets for certified productsMarkets for certified products

Markets for ecosystem servicesMarkets for ecosystem services

New revenue streams fromNew revenue streams from

companycompany--owned or managedowned or managed

ecosystemsecosystemsFinancingFinancing Higher cost of capitalHigher cost of capital

More rigorous lendingMore rigorous lendingrequirementsrequirements

Increased investment byIncreased investment by

progressive lenders and sociallyprogressive lenders and sociallyresponsible investment fundsresponsible investment funds

NOT EXHAUSTIVENOT EXHAUSTIVE


17/19

Step 5. Categories of strategiesStep 5. Categories of strategies

InternalInternal

changeschanges

Sector orSector or

stakeholderstakeholder

engagementengagement

PolicyPolicy--makermaker

engagementengagement

OperationsOperations

Product strategyProduct strategy

Market strategyMarket strategy

Procurement strategyProcurement strategy

Land managementLand management

Etc.Etc.

Industry peerIndustry peer

collaborationcollaboration

CrossCross--sectorsector

collaborationcollaboration

NGO collaborationNGO collaboration

Transactions withTransactions with

stakeholdersstakeholders

Etc.Etc.

Tax incentivesTax incentives

Subsidy reformsSubsidy reforms

Protected areasProtected areas

ZoningZoning

Etc.Etc.


18/19

What the ESR is notWhat the ESR is not

It is not dependent upon economic valuation of ecosystem servicesIt is not dependent upon economic valuation of ecosystem services

It does not identify or address every environmental issueIt does not identify or address every environmental issue

It is not strictly quantitativeIt is not strictly quantitative

It does not require a long, multiyear analysisIt does not require a long, multiyear analysis


19/19

Supporting tools available in Guidelines and on websiteSupporting tools available in Guidelines and on website

Methodology cheat sheetMethodology cheat sheet

Ecosystem service list, definitions, and examplesEcosystem service list, definitions, and examples

Spreadsheet questionnaire and tool or assessing dependence andSpreadsheet questionnaire and tool or assessing dependence andimpactimpact

Frameworks for analyzing trends and identifying risks andFrameworks for analyzing trends and identifying risks and

opportunitiesopportunities

Case examplesCase examples

Other resourcesOther resources

www.wri.org/ecosystems/esr

English Ecosystem Services Review

Documents

Transcript of English Ecosystem Services Review