World Resources Institute Corporate Ecosystem Services Review Training How to Use the ESR

World Resources Institute

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

World Resources Institute Getting started ESR methodology Ecosystem services for corporate decision-making Agenda

World Resources Institute Agenda Getting started ESR methodology Ecosystem services for corporate decision-making

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

World Resources Institute Reputational risk: Challenge to social “license to operate” Photo Courtesy of Flickr: ahisgett

World Resources Institute Gap analysis: ESR & EIA

World Resources Institute 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 Forming an ESR team

World Resources Institute Agenda Getting started ESR methodology Ecosystem services for corporate decision-making

World Resources Institute 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

World Resources Institute 1. Select the scope Steps in the Corporate Ecosystem Services Review

World Resources Institute Step 1. Considerations when selecting the scope 1. Which stage of the value chain? Customers Company Suppliers 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 where specifically? 3. Is it strategic, timely, and supported?

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

World Resources Institute Go to worksheet

World Resources Institute Step 2. Select priority services

World Resources Institute Step 2. Select priority services

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

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

World Resources Institute Step 3. Trends analysis framework

World Resources Institute

Trends analysis – Pollination Case Study Kodagu, Kerala

World Resources Institute 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

World Resources Institute TypeRiskOpportunity 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 NOT EXHAUSTIVE Step 4. Risks and opportunities

World Resources Institute Step 4. Risks and opportunities Priority ecosystem service Potential risks Potential opportunities Freshwater Increased water scarcity due to: – Invasive species – Nearby farmers – Climate change Internal efficiency improvements\ (Co) financing improvements of nearby farmers Biomass fuel Use plantation residue in Mondi generator Sell plantation in biomass-to-energy markets Global climate regulation Emerging markets for carbon sequestration Recreation and ecotourism Ecotourism market potential Livestock Grazing reducing productivity Perceived “under-utilization” of Mondi land by nearby farmers

World Resources Institute 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

World Resources Institute Step 5. Categories of strategies Internal changes Sector or stakeholder engagement 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 ZoningEtc.

World Resources Institute Michelin uses ecosystems to improve factory footprint

World Resources Institute BC Hydro engages stakeholders

World Resources Institute Mondi leverages expertise to inform water policy

World Resources Institute 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

World Resources Institute Agenda Getting started ESR methodology Ecosystem Services for Corporate Decision Making

World Resources Institute Ecosystem services for corporate decision-making EIA EIA LCA LCA SME SME Financial Risk Financial Risk

World Resources Institute