The Future of Food

Pavan SukhdevStudy Leader, TEEB

Founder-CEO, GIST Advisory& UNEP Goodwill Ambassador

The True Cost of American FoodSan Francisco | 15th April 2016

Does nature have a price?

MARS0 Biosphere

EARTH1 Biosphere

Recognizing value

Demonstratingvalue

Capturingvalue

Regional Plans

Legislations

PES

Certification

PA Evaluation

TEEB Approach to Valuation

Ch.4Ch.5 Ch.3 Ch.3

Norms, Regulations& Policies

Markets

EconomicMechanisms

Recognizing value

Demonstratingvalue

Capturingvalue

Regional Plans

Legislations

PES

Certification

PA Evaluation

TEEB Approach to Valuation

Ch.4Ch.5 Ch.3 Ch.3

GDP of the PoorTEEB’s economic case for conserving, not destroying

ecosystems, to solve poverty

Source: Gundimeda and Sukhdev, TEEB for National & International Policy

Indonesia India Brazil

25%

75%

47%

89%

99 million 352 million 20 millionNature-dependent rural poor & forest dwellers :

Ecosystem services

Ecosystem services consumed by the poor as a % of “GDP of the poor” :

Natural Capital Sectors’ contributions as a % of classical GDP :

21%

79%

16%

84%

10%

90%

Typical large corporation impacts MANY stakeholder classes & capital categories

* Community wealth and public wealth are elements of “shared value”

• Factories• Buildings• Securities• Cash

Physical Capital

• Community Centres

• Community Schools

• Roads• Bridges• Public

Hospitals

• Health• Education• Job Skills

Human Capital

• Traditional Community Knowledge

• Public Databases

• Non-patent Knowledge

Social Capital

• Community Norms & Customs

• Law & Order• Taxation• Social Equity

& Inclusion

• Gardens• Fields• Forests

Natural Capital

• Community Forests

• Grazing Commons

• High Seas Fisheries

• National Parks/Forests

Private Owners

Community Owners*(Club Goods)

Public Ownership* (Public Goods)

Large corporations report ONE stakeholder impact: Physical Capital of Shareholders

* Community wealth and public wealth are elements of “shared value”

• Factories• Buildings• Securities• Cash

Physical Capital Human Capital Social Capital Natural Capital

Private Owners

Community Owners*(Club Goods)

Public Ownership* (Public Goods)

The visible flows of agricultural production

The visible and invisible flows!

That is why TEEBAgriFood has proposed a Comprehensive Valuation Framework

“VALUE- ADDITION” Production

Value Chain Stages

Visible & Invisible Flows

Natural Land-scape

Infra & Mfg

Farm

Captured in SNA (Profits, Wages, Taxes - Subsidies, etc)

The narrow field of view of “per hectareproductivity”…

That is why TEEBAgriFood has proposed a Comprehensive Valuation Framework

Social Values (food security; gender equity; etc )

Risks & Uncertainties (Resilience; Health; etc)

“VALUE- ADDITION” Production Processing & Distribution Consumption

Value Chain Stages

Visible & Invisible Flows

Natural Land-scape

Infra & Mfg

Farm Wholesale F & B Retail Industry/ Household/ Hospitality

Waste Mngmt

Captured in SNA (Profits, Wages, Taxes - Subsidies, etc)

Provisioning Services (Materials, Energy, etc)

Regulation & Maintenance (Soil, Water, Habitat, etc)

Cultural (lifestyle, heritage…)

Health (Nutrition, Diseases, Antibiotic Resistance, etc)

Pollution (Nitrates, Pesticides, Heavy metals, etc)

Emissions (CO2 ; CH4 ; etc)

The narrow field of view of “per hectareproductivity”…

Thank You!www.teebweb.org

Pavan Sukhdev

Study Leader, TEEB Founder-CEO, GIST Advisory

& UNEP Goodwill Ambassador

/TEEB4ME @TEEB4ME