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Sept .2010/BOG/NO
IUCN-Holcim EVI.ppt
1
IUCN - Holcim partnership
Ecosystem Valuation Case study
Ripon Quarry in UK
Nathalie Olsen (IUCN)
Gerard Bos (Holcim)
Sept .2010/BOG/NO
IUCN-Holcim EVI.ppt
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Outline
1. Relevance of Biodiversity to our sector
2. Why Ecosystem Services Evaluation?
• Introduction to WBCSD tools • ESR - Ecosystem Services review
• CEV – Corporate Ecosystem Valuation
3. Results of the Ripon case study (UK)
• Background
• Methodology
• Study
• Results
4. What next at sector level?
5. Questions and Answers
1. Ecological balance is one of the three pillars of SD and
without this, business cannot function
2. All businesses depend and impact on ecosystems and
their services – either as part of their core operations or
through their supply chain
3. Ecosystem degradation can undermine the business
license to operate by posing significant risks to
companies, their suppliers, customers and investors
4. Sustainable ecosystem management can create new
business opportunities and markets
Why are ecosystems and ecosystem
services important to companies?
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© Holcim Group Support Limited 2010
Ecosystem services – an overview
ProvisioningGoods or products produced by
ecosystems
RegulatingNatural processes regulated by
ecosystems
CulturalNon-material benefits obtained
from ecosystems
SupportingFunctions that maintain all other services
A few definitions
Ecosystem
services• The benefits people obtain from
ecosystems
• The “goods and services of nature”
Biodiversity • The variability among living organisms
–Within species & populations
–Between species
–Between ecosystems
Ecosystem • A dynamic complex of plant, animal,
and micro-organism communities and
the non-living environment interacting
as a functional unit
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Businesses impact on ecosystems and
ecosystem services
Businesses rely and depend on
ecosystems and ecosystem services
Consequence of ecosystem change for
business
Ecosystem change creates
business risks and
opportunities
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© Holcim Group Support Limited 2010
The Ecosystem Landscape
Our sector has a visible impact on almost
ALL ecosystems
Quarrying and raw
material preparation
Clinker
production
Cement grinding and
distribution
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Biodiversity CMS MT mtg.ppt
© Holcim Group Support Ltd 2009
Biodiversity Management to be considered throughout the
complete lifecycle
Biodiversity and
Social Risk
Assessment
Permits
Environmental
& Social Impact
Assessment
Go / No-Go
Decision
Quarry / Site
Lifecycle
Rehabilitation
& Biodiversity
Management
Plan
Steps in a
corporate ecosystem services
review
Corporate Ecosystem Service Review
Tool (ESR)
12
5. Develop
strategies
4. Identify
business risks
and
opportunities
3. Analyze
trends in
priority
services
2. Identify
priority
ecosystem
services
1. Determine
scope
World Resources Institute
Step 3:
Evaluate trends
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1. Trends in ecosystem services
• Supply and demand
• Quantity, quality and/or timing
2. Direct drivers
• Land-use change
• Over-consumption
• Climate change
• Pollution
• Invasive, non-native species
• Other
4. Activities of
others
• Who
• How
• Where
• To what degree
5. Indirect drivers
• Demographic
• Economic
• Governmental
• Technological
• Cultural and religious
3. Company
activities
• How
• Where
• To what degree
World Resources Institute
Measuring, managing and mitigating one’s ecosystem
impacts and dependencies requires incorporating
environmental externalities into core management
decisions
WBCSD tools that help do that include:
The Global Water Tool
The GHG Protocol
Measuring Impact Framework and…
CEV….Corporate Ecosystem Valuatation
Measure, manage and mitigate
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16
Direct values Outputs that can be
consumed directly, such
as fish, medicines, wild
foods, recreation, etc.
Option valuesThe premium placed on
maintaining resources and
landscapes for future possible
direct and indirect uses, some of
which may not be known now.
Existence valuesThe intrinsic value of
resources and land-scapes,
irrespective of its use such
as cultural, aesthetic,
bequest significance, etc.
Indirect values Ecological services,
such as catchment
protection, flood control,
carbon sequestration,
climatic control, aesthetics,
etc.
NON-USEUSE
Value ecosystem services
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Ecosystem valuation is ONLY a means to
an end
Placing monetary values on
ecosystem services is not an end
in itself
The aim is to provide information
to make better and more informed
decisions:
- Better meeting targets and goals
- Avoiding costs and losses
- Maintaining/Increasing revenues
- Finding cost-effective means of
complying with obligations and
managing environmental footprints
Sept .2010/BOG/NO
IUCN-Holcim EVI.ppt
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Outline
1. Relevance of Biodiversity to our sector
2. Why Ecosystem Services Evaluation?
• Introduction to WBCSD tools • ESR - Ecosystem Services review
• CEV – Corporate Ecosystem Valuation
3. Results of the Ripon case study (UK)
• Background
• Methodology
• Study
• Results
4. What next at sector level?
5. Questions and Answers
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IUCN-Holcim EVI.ppt
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WBCSD Ecosystem Valuation Initiative
• Recognise and manage
dependencies and
impacts
• Guide provides step by
step guidance:– why
• Saving costs
• Assessing liability
– how to identify ecosystem
impacts
– how to value
dependencies/impacts
– how to incorporate results into
business decisions
www.wbcsd.org/web/evi.htm
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EVI Road Test - Background
• Legally required to restore after quarrying
• Business concern– Access to minerals in sensitive areas
– Perceived costs of restoration and aftercare on extraction sites
– Public opinion and corporate reputation
• Valuation to assess benefits of quarry extension and restoration in North Yorkshire– Wetland restoration
– Establishment of artificial lake
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Objectives of study
• To investigate the value of restoration to wet meadows vs.
reedbed and the distribution of benefits between stakeholders
• To quantify and value significant change in biodiversity and
ecosystem services following mineral extraction on the site
• To be able to negotiate appropriate levels of restoration and
level and duration of aftercare/management costs
• To value the contribution of the site to additional flood control
in the landscape and region
• To understand the practice of ecosystem valuation in order to
anticipate future planning requirements
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Methodology – valuing ecosystem benefits
• Biodiversity – Willingness to Pay of local
population for conversion of agricultural land to
wetlands for wildlife habitat (£/household)
• Recreation- use WTP of individuals for additional
boating opportunities (£/household)
• Flood control – average value of avoided damage
estimates (£/hectare)
• Carbon storage – estimates of carbon
sequestered in newly established wetlands (tons
CO2e/hectare) * £/ton CO2e
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Methodology – estimating costs
• Restoration costs– Labour, material, survival rates
• Aftercare costs– Based on annual returns from £200,000 fund provided up-
front
• Opportunity costs– Value of foregone agricultural and livestock production
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Value of ecosystem service - benefits and
costs of supply
£224,079
£58,819£4,702
£117,598
£1,415,917
£721,761
£356,330
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
Pre
sen
t va
lue
£
Value of ecosystem service benefits and costs
Carbon sequestration
Flood storag
Biodiversit Recreation Restoration Aftercare costs
Value of lost food production
BENEFIT COST
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Present value of ecosystem service benefits
and costs of supply
Flood controlRestoration costs
Carbon sequestration
Aftercare costs
Biodiversity
Foregone food production
Recreation
£0
£500,000
£1,000,000
£1,500,000
£2,000,000
£2,500,000P
rese
nt
valu
e £
Types of ecosystem service benefits and costs
BENEFIT COST
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Aggregate Industries UK
Key findings
• Significant benefits due to wetland restoration and creation of lake (£1.1m)
– habitat (£1.4 million)
– recreational (£350,000)
– flood control (£224,000)
– carbon (£4,700)
• Costs of restoration and aftercare relatively small and do not affect financial bottom line
• Compensation for environmental damage can deliver improvements in ES at modest expense
• Economic gains much greater on marginal land due to opportunity cost
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Aggregate Industries UK
How to use results?
• Internal audience:– To improve decision-making
– To assess costs of legal liabilities
• External audience– To develop restoration and aftercare plans in
application process
– To ensure future access to minerals by demonstrating net benefits to society and net biodiversity gain
– for planning restoration based on uses with greatest benefits
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IUCN-Holcim EVI.ppt
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Outline
1. Relevance of Biodiversity to our sector
2. Why Ecosystem Services Evaluation?
• Introduction to WBCSD tools • ESR - Ecosystem Services review
• CEV – Corporate Ecosystem Valuation
3. Results of the Ripon case study (UK)
• Background
• Methodology
• Study
• Results
4. What next at sector level?
5. Questions and Answers
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IUCN-Holcim EVI.ppt
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Next steps
• Broaden access to ESR/EVI:– UEPG workshop, Paris (Sept)
– CBCSD - ESR training, Shanghai (Sept)
• CDB COP 10 in Nagoya – EVI guide will be published
– Business and Biodiversity Day - Oct 26, 2010
– Release of the IUCN-Holcim Biodiversity Management
System
• Share these tools and good practices with CSI
biodiversity task force
• Q&A
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