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8/8/2019 English Ecosystem Services Review
1/19
8/8/2019 English Ecosystem Services Review
2/19
World Resources Institute
8/8/2019 English Ecosystem Services Review
3/19
World Resources Institute
8/8/2019 English Ecosystem Services Review
4/19
World Resources Institute
8/8/2019 English Ecosystem Services Review
5/19
World Resources Institute
8/8/2019 English Ecosystem Services Review
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
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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
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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.
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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
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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
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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
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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
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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?
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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
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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
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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
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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.
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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
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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