1. BET – Executive overview Understanding the Links between Ecosystem Services and Business March 2012

2. 2 BET: Executive overview –Background Rationale for this Executive Overview (1/2) This presentation summarizes some of the key concepts presented in the Business Ecosystems Training (BET) program. It aims to increase business understanding of:  The key risks and opportunities associated with ecosystems  The business case for measuring, managing and mitigating impacts on ecosystems  Possible options for action

3. 3 March 2012 BET: Executive overview - Background Rationale for this Executive Overview (2/2)  This presentation can be used to:  Convince Top Management about the business case for action on ecosystems  Give an introduction to Operations Managers about why ecosystems matter and possible actions  Raise Strategy Dept’s awareness and understanding of ecosystem-related risks and opportunities  Suggestions:  Customize the slides so that they match your presentation objectives and respond to your audience expectations (e.g. adding your company case studies)  Refer to the concise presentation notes in the slide notes – for more background information, you can also refer to the Facilitator Notes of the different BET modules.

4. 4 March 2012 BET: Executive overview - Background About Business Ecosystems Training (BET)  Aims to deepen understanding of the links between ecosystems and business  Structured in 4 modules that drill down into topics depending on the learner’s needs.  Material include: PowerPoint slide packs, Facilitator Notes, Implementation Guide, FAQs, Glossary of Terms, Facilitation Tips Videos

5. 5 March 2012 BET curriculum and structure was designed by The structure and content development of BET was governed by an Advisory Committee consisting of WBCSD member companies and Regional Network partners, NGOs, UN and academic institutions. BET: Executive overview - Background Business Ecosystems Training – Contributors

6. 6 March 2012 Executive Overview – Presentation Contents Pages Session 1: Why are ecosystems a business issue?4 Session 2: Business risks and opportunities11 Session 3: What can business do?15 Session 4: Action planning19

7. Session 1 Why are ecosystems a business issue? BET: Executive overview

8. 8 March 2012 BET: Executive overview Companies are taking action Holcim To continuously improve its environmental performance Rio Tinto To have a net positive impact on biodiversity Mondi To minimize its impact on the natural environment

9. 9 March 2012 BET: Executive overview Why take action – examples Puma  Accounting for impacts through an environmental profit and loss to understand risk exposure and remain competitive: Unilever  Continued commitment to sustainability for efficiency, innovation and consumer responses: http://www.youtube.com/watch ?v=w_Lur2FJteg http://www.youtube.com/watch ?v=HaFgOFbpVHw

10. 10 March 2012 BET: Executive overview Where Biodiversity fits As described in the Millennium Ecosystem Assessment, 2005. Provisioning Products produced by ecosystems Regulating Processes regulated by ecosystems Cultural Intangible benefits from ecosystems Supporting Functions that maintain all other services GenesEcosystemsSpecies BIODIVERSITY Ecosystem Services

11. 11 March 2012 BET: Executive overview Impacts and dependencies Company Impact on ecosystem services Dependence on ecosystem services Ecosystem

12. 12 March 2012 BET: Executive overview Case studies Energia Global  Forest clearing by local landowners lowered the power output of a hydropower facility  Worked with landowners to change behavior Allegheny Power  Use an ecosystem assessment of land boosted which boosted its total value to nearly $33 million (from $16 million)  Used the ‘bargain sale’ provisions in the federal tax code, yielding several million dollars in tax-related savings

13. 13 March 2012 BET: Executive overview S upply/value chains and ecosystems Each stage of the value chain, and every supplier involved, can have different impacts or dependencies on ecosystem services Tier 2 supplier Tier 1 supplier Company activities Downstream value chain Ecosystem Services Impacts and dependencies

14. Session 2 Business risks and opportunities BET: Executive overview

15. 15 March 2012 BET: Executive overview Risks and opportunities Business Issue OperationalLegalReputationMarketFinancing

16. 16 March 2012 BET: Executive overview Policy trends and regulatory risks Issue recognition International response National response Impact on industry Increased restrictions Opportunities to innovate Mitigation

17. 17 March 2012 BET: Executive overview Case Studies demonstrating risks and opportunities Mondi:  Analysis to determine :  Ecosystem dependency  Revenue enhancement US BCSD  Designed a collaborative process called By-Product Synergy (BPS).  Matches undervalued resources from one company with needs at another to save money and resources

18. Session 3 What can business do? BET: Executive overview

19. 19 March 2012 BET: Executive overview What can business do about ecosystems… right now?  Measure, manage and mitigate impacts and dependencies, proactively addressing risks and exploring opportunities  Improve decision-making by undertaking corporate ecosystem valuation to quantify business risks and opportunities  Innovate and help develop new:  Market for ecosystem services  Eco-efficient goods, services and technologies  Encourage suppliers and purchasers to adopt best practices  Enter into creative partnerships with municipalities and governments, NGOs, scientific community, sectors association to address on-the-ground issues  Promote “smart” ecosystem regulation that reverses degradation, leverages market forces & “level the playing field” for all

20. 20 March 2012 BET: Executive overview Identifying dependencies on ecosystems A- Consider your company’s dependencies Key questions might include: [NOTE: Company to pick 2-3 questions from the slides notes depending on need] B- Measure your impacts and dependencies using a structured approach The WBCSD have developed a range of useful tools for companies

21. 21 March 2012 BET: Executive overview Managing impacts C- Manage and mitigate your impacts  Mitigation  A simple 5 step hierarchy  Companies should aim for actions as close to the top of the hierarchy as possible The mitigation hierarchy Source: http://bbop.forest-trends.org Avoidance Offset Additional Conservation Actions Restoration Mitigation

22. 22 March 2012 BET: Executive overview Measuring and Reporting D- Measure and report Monetary  Financial and management accounting  Full (environmental) cost accounting Sustainability and non-monetary  Sustainability reports  Integrated reports of financial and non-financial information  Environmental management systems Case study: Rio Tinto  Group-wide biodiversity values assessment for land holdings Source: www.riotinto.com/ourapproach/17214_biodiversity_17324.asp Biodiversity values assessment (2010)

23. Session 4 Action planning BET: Understanding the Links between Ecosystem Services and Business

24. 24 March 2012 BET: Executive overview Action Planning Step 1: Build awareness Step 2: Use other publicly available resources Step 3: Join networks and contact experts Step 4: Piloting Step 5: Implementation [NOTE: The action planning steps presented on this slide are illustrative examples and should be tailored to have maximum impact with your own company/audience. ]

25. Violaine Berger Assistant Program Manager berger@wbcsd.org Eva Zabey Assistant Program Manager zabey@wbcsd.org James Griffiths Managing Director griffiths@wbcsd.org