» Pricing the Priceless The business case for action on biodiversity
ALDERSGATE leaders for a GROUP sustainable economy
ALDERSGATE Leaders for a GROUP sustainable economy
Biodiversity Company 12 ALDERSGATE 10
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Pricing the Priceless» The business case for action on biodiversity 1 ALDERSGATE leaders for a GROUP sustainable economy
ALDERSGATE Leaders for a GROUP sustainable economy Contents Nov 2011
Foreword 4 Executive Summary 6 1. The economics of nature 9 2. Pricing the priceless 11 3. Don’t exceed the limits 13 4. Regulation can drive growth 14 5. Business taking the lead 17 Case studies 19 Recommendations and next steps 22 Questions for key decision makers 23
Chair Ian Dickie eftec, Director of Business Development and Aldersgate Group, Director
Lead Author Andrew Raingold Aldersgate Group, Executive Director
Special Thanks Biodiversity Company 12 David Baldock, Institute for European Environmental Policy (IEEP), Director 10 Dr Margaret Adey, University of Cambridge Programme for Sustainability Leadership, Development Director Company 10 Company 11 8 Dr Stephanie Hime, KPMG, Biodiversity and Ecosystem Service Specialist Company 9 Felicia Jackson, Cleantech Magazine, Editor at Large 6 Helen Newman, Thames Water, Head of Corporate Responsibility and Sustainability Company 7 Average Company 8 £100 Company 6 Company 5 James Whittingham, TUI Travel plc, Group Environment Manager 4
Justin Taberham, CIWEM, Policy Director N Stakeholders Company 3 Company 4 Lee Bruce, Woodland Trust, Government Affairs Officer 2 Company 2 Pamela Castle OBE, Aldersgate Group, Member £100 Company 1 Patrick Ten Brink, IEEP, Senior Fellow and Head of Brussels Office 0 2 4 6 8 10 Paul Morling, RSPB, Senior Economist Company Peter Young, Aldersgate Group, Chairman Roy Tindle, London 21 Sustainability Network, Chair Sir John Harman, Aldersgate Group, Director Steve Wallace, National Grid, Head of Environment Victoria Fleming-Williams, Aldersgate Group, Policy Officer » Aldersgate Group The Aldersgate Group (AG) is an alliance of leaders from business, politics and society that drives action for a sustainable economy.
Foreword 4 Our Members Executive Summary 6 1. The economics of nature 9 2. Pricing the priceless 11
THE ENVIRONMENTAL 3. Don’t exceed the limits 13 INDUSTRIES COMMISSION 4. Regulation can drive growth 14 5. Business taking the lead 17 Case studies 19 Recommendations and next steps 22 Questions for key decision makers 23
Chair Ian Dickie eftec, Director of Business Development and Aldersgate Group, Director
While members support this publication and provided extensive input, individual recommendations cannot be attributed to any single member and the Aldersgate Group takes full responsibility for the views expressed. Lead Author Andrew Raingold Individual Members Aldersgate Group, Executive Director Andrew George Jason McCartney Lord Larry Whitty Peter Jones OBE MP (Liberal Democrat) MP (Conservative) Former General Secretary of the Former Director, BIFFA Biodiversity Labour Party Company 12 Barry Sheerman John Edmonds Professor Paul Ekins 10 MP (Labour), Chairman of Former President, TUC Martin Horwood Director, Green Fiscal Commission Company 10 Company 11 Policy Connect MP (Liberal Democrat) 8 Jonathon Porritt CBE Roy Tindle Company 9 Caroline Lucas Founder, Forum for the Future Michael Meacher Chair, London 21 Sustainability 6 Average MP (Leader of the Green Party) MP (Labour), Former Defra Minister Network Company 7 Company 8 Lord Ronald Oxburgh £100 Company 6 Company 5 Dinah Nichols CB Former Non-Executive Chairman of Pamela Castle OBE Sir John Harman 4 N Stakeholders Former Director General, Defra Royal Dutch Shell Former Chair, Environmental Former Chair, Environment Agency Company 3 Company 4 2 Law Foundation Company 2 Dr Chris Tuppen Lord John Prescott Sir Ken Collins £100 Company 1 Director, Aldersgate Group Former Deputy Prime Minister Peter Ainsworth Former Chair, SEPA 0 Former Shadow Secretary 2 4 6 8 10 Emma Howard Boyd Lord Robin Teverson of State for Defra Tim Yeo Company Director, Jupiter Asset Management Liberal Democrat Spokesman for MP (Conservative), Chairman of Energy and Climate Change Peter Aldous the Energy and Climate Change Ian Liddell-Grainger MP (Conservative), Member of Select Committee MP (Conservative) Environmental Audit Committee
Pricing the Priceless» The business case for action on biodiversity 3 » Foreword The UK Government’s Natural Environment White Paper brings forward current ideas on the value of environment into policy making.
You can burn peat in your stove and build The global importance of understanding, In developing this publication the Aldersgate your sheds of stone. Well I grant you can cut measuring and capturing the value of nature Group (AG) aims to highlight how its » down forests out of need, but why destroy is shown by the United Nations through core message, that sound environmental them? One has to be a mindless barbarian 1 to burn such beauty in a stove, to destroy TEEB which helped to identify the economic management can enhance economic what we cannot create. Man is endowed value of nature. In particular it focuses on how performance, human welfare and the with reason and creative power in order to nature’s functions serve people and affect condition of the environment, applies to increase what he is given. their welfare. This doesn’t automatically solve biodiversity and ecosystem services Anton Chekhov, Uncle Vanya – Scenes problems, but can help put information about (BES)2. This builds on our ‘Beyond Carbon’ from Country Life in Four Acts, 1897 impacts on biodiversity and ecosystems in publication3, extending arguments front of decision makers. That information on resource efficiency and economic can be applied by communities, governments performance to biological resources. Society, as Chekhov shows, has always and private business, for whom biodiversity known the value of nature. What has risks are a horizon issue with the potential The AG convened a series of discussions changed recently is that we have better severity, but far greater complexity, than those on BES, involving a cross-section of our information about how nature affects our posed by climate change. It is illogical to think members from the private and third sectors. lives. The Millennium Ecosystem Assessment of climate change policy as separate from This enabled scoping of the key BES showed that the state of global ecosystems ecosystems and biodiversity. issues to the economy. It shaped the aims is in critical decline. To reverse this, we and contents of this publication, revealing must bring natural values into economic There are both hard economic and clear the importance to business of clear language decision-making more effectively. moral reasons for the importance of this and the need to raise the profile of BES agenda. Not least is that without careful within the carbon and environmental policy management of the carbon stocks maintained agendas. It was agreed that a key objective by natural processes in soils and forests, of this work should be to turn theory into humanity’s response to climate change will practice – raising the profile of BES as a face higher costs and greater risks. boardroom issue and seeking to integrate it into management structures.
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£100 Company 1 1 » The Economics of Ecosystems and Biodiversity 0 2 4 6 8 10 (TEEB) study is a major international initiative to Company draw attention to the global economic benefits of biodiversity, to highlight the growing costs of 2 » For a definition of biodiversity and ecosystem biodiversity loss and ecosystem degradation and to services (BES), see page 7. draw together expertise from the fields of science, economics and policy to enable practical actions 3 » Aldersgate Group (2010) Beyond Carbon: moving forward. www.teebweb.org Towards a Resource Efficient Future.
4 www.aldersgategroup.org.uk Foreword
It was immediately evident from our The value of BES also relates to our spiritual That’s why the AG welcomes the UK’s move discussions that the relationship between wellbeing. As Harvard professor Edward to include natural capital in our national the economy and the underpinning Wilson puts it in his Biophilia hypothesis4, accounts. We need to correct the false ecosystems is something that society, humans need living nature – there is an accounting whereby we count as a gain government and regulators are going to get instinctive bond between human beings and the destruction of natural assets that can more and more exercised about over the other living systems – “the connections that potentially yield perpetual benefits. Counting next generation. While businesses often human beings subconsciously seek with the costs as assets was what Enron5 did – it isn’t struggle to relate biodiversity to the bottom rest of life.” Biophilia is not just a pretty theory, good for the economy. line and experience with reporting biodiversity it is vital to major economic issues like mental impacts has been mixed, it is now an issue health and tourism markets. that forward looking companies are beginning Ian Dickie to address to be the leaders in the market. Humans are biophiles and our economic AG Director leading on BES, system relies on ecosystem services. Director of Business Development, The key role that natural environment Biodiversity is an indicator of the state of economics for the environment resources play in the global economy can the resources that support our quality of consultancy (eftec). also be seen in the origins of the present life in these ways. Instead of measuring the global economic downturn. It is often destruction of nature as an economic gain, forgotten that the financial crisis was we need to address its stewardship as an preceded by a credit crunch, which in turn economic opportunity. was triggered by a ‘resource crunch’ in which prices of materials derived from nature (in particular food) spiked, destabilising markets. Mismanagement of our natural environment makes such problems more likely in the future, but these risks can be reduced through commercial practices and government policies that aim to sustain the broad range of values we gain from BES.
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N Stakeholders 4 » The biophilia hypothesis suggests that there Company 3 Company 4 2 is an instinctive bond between human beings and Company 2
other living systems. Edward O. Wilson introduced £100 Company 1 and popularised the hypothesis in his book entitled 0 2 4 6 8 10 Biophilia. He describes “the connections that Company human beings subconsciously seek with the rest of life.” Unlike phobias, which are the aversions and fears that people have of things in the natural world, philias are the attractions and positive feelings that 5 » In 2001, false accounting practices at people have toward certain habitats, activities and Enron resulted in it becoming the largest objects in their natural surroundings. corporate bankruptcy in the world.
Pricing the Priceless» The business case for action on biodiversity 5 Executive Summary The protection of biodiversity and ecosystem services (BES), while complex to value and quantify accurately, is essential for future well-being and economic development.
The loss of biodiversity causes ecosystems The economics of nature. Our key recommendations are as follows: to stress, degrade or even collapse 1 Our economic success depends altogether. This reduces the ability of the on a healthy environment and the Government must clarify the process environment to provide the goods and sustainable use of natural resources. » by which natural capital is included in services that nature provides for free, such The AG believes that this applies the national accounts and ensure proper as clean air, water and soils, as well as the equally to BES as to other natural scrutiny by an independent body. raw materials that industry depends upon. resources. By the end of this Parliament, the Policy will inevitably have to rise to this Pricing the priceless. » Chancellor should present a draft challenge and businesses must look ahead 2 The value of BES must be reflected natural capital budget alongside the to what this might mean for them and how in prices and policy appraisal. fiscal budget. they should act responsibly. This report marks Even though BES is complex to the start of a new initiative by the Aldersgate measure, tools are available to help In light of the Natural Environment Group (AG) to enable companies to share reflect the value of BES in company » White Paper, there should be cross- learning, good practice and understanding decisions and in national accounts. departmental responsibilities to of the issues, and to use that learning to ensure the objective of zero net influence the developing policy debate. Don’t exceed the limits. biodiversity loss becomes a reality. 3 There are certain thresholds that Five key points that have emerged with cannot be passed without causing Businesses should take the lead consultation from our members and irreversible damage. As well as » by assessing their impacts and stakeholders are: critical limits, there are also critical dependency on BES and integrating trends. A more resource efficient measures to ensure the sustainable economic model will reduce costs use of natural resources. and increase resilience. The Department of Environment, Regulation can drive growth. » Food and Rural Affairs (Defra) should 4 Regulation can create new business engage with businesses on the opportunities and new markets that development of a reporting framework the UK should seek to exploit. and associated guidance and work Also, business and Government with the Natural Capital Committee must work together to engage to ensure that this helps the Natural the consumer, building trust and Capital Budget define the importance changing behaviour. of BES to the UK economy and highlight Biodiversity Company 12 material risks and opportunities to 10 Business taking the lead. specific business sectors. Company 10 Company 11 The loss of BES poses significant 8 5 Company 9 risks and opportunities for all BES cuts across a wide range of business 6 Average businesses, although to varying and political functions and it is no longer a Company 7 Company 8 £100 Company 6 Company 5 degrees. An effective BES strategy – sound economic or business strategy to 4
N Stakeholders including effective measurement discount them. In the next stage of this work Company 3 Company 4 2 and management – will ensure that programme, the AG will engage key actors in £100 Company 2 forward-looking businesses are leading the economy to demonstrate how addressing Company 1 0 the way as this issue rises up the BES is relevant to their core functions. 2 4 6 8 10 Company political and consumer agenda.
6 www.aldersgategroup.org.uk » Introduction Human societies are depleting the physical and biological resources of the earth at an alarming rate, a problem which is deepening with rising population and per capita consumption.
The protection of biodiversity and This is why the recent host of initiatives ecosystems must be a priority in our that provides a robust basis for business Introduction to terminology » quest to build a stronger, fairer and and political action, at both national and Biodiversity is the variety amongst cleaner world economy.6 international level, is so timely. These include living things on earth. Biologists define Angel Gurría the commitments by member states during Secretary General, OECD it at different scales, including habitats, the United Nations International Year of species and genetics. Biodiversity in 2010, the development of the valuation of ecosystem services through Ecosystem services are defined as The loss of biodiversity causes ecosystems to the TEEB initiative and the pledges made services provided by the natural 7 stress, degrade or even collapse altogether. by the UK Government in the Natural environment that benefit people This reduces the ability of the environment to Environment White Paper, such as including This includes physical processes (like provide the goods and services that nature natural capital in the national accounts. pollination by birds and insects) and provides for free, such as clean air, water, At the same time, a drive to reduce costs chemical processes (like carbon dioxide soils and waste disposal, as well as the raw across the economy is threatening to being absorbed into vegetation). materials that industry depends upon. As accelerate the deterioration of the natural Biodiversity is an integral part of these a result, it is evident that the protection of environment and strengthens the case for services and the environments that BES, while complex to value and quantify a more integrated and holistic approach. provide them, so the two are often accurately, is essential for future well-being referred to collectively as Biodiversity and economic development. This report marks the first phase of a and Ecosystem Services (BES). new initiative by the AG on how firms and economies can better understand and For the economy, BES can be thought manage their reliance and impact on BES. of as a resource supporting productive This is without doubt a coming issue. How activity. Hence BES assets are also should a company place a valuation on its described as natural capital – the BES impacts, or report on them qualitatively? ecosystems, biodiversity and natural What is it looking for? What can it expect resources that underpin economies’, to happen in future public policy? How societies’ and individual well-being. will national economies respond to the Natural capital’s many benefits are undisputed need to begin to measure and often overlooked, poorly understood control their own BES impact and what will and rarely taken fully into account this mean for pricing of resources or the through economic signals in markets impacts of economic activity? or day to day decisions taken by business and citizens and are not reflected Biodiversity adequately in the accounts of society. Company 12 10
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6 » WWF (October 2010) Living Planet Report 2010: Biodiversity, biocapacity and development. 7 » www.tinyurl.com/ceggf9e
Pricing the Priceless» The business case for action on biodiversity 7 Introduction
Biodiversity loss (is) the most critical global environmental threat alongside Biodiversity loss in the UK » climate change.8 European Commission In the UK, about 30% of ecosystems have been assessed as currently declining, while many others are in a reduced or degraded state, including marine fisheries, Addressing these questions will help business wild species diversity and some of the and government minimise the risks and services provided by soils9. maximise the benefits of the transition to a sustainable economy, emerging in a stronger position for a world in which resource prices and availability would render current patterns of production obsolete. Strategies that address our interaction with the natural resource base on which we all depend will be essential to lay the foundations for our economic success in the future.
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8 » European Commission (May 2011) 9 » UK National Ecosystem Assessment Our life insurance, our natural capital: an (June 2011) Understanding nature’s value to EU biodiversity strategy to 2020. society: Synthesis of the Key Findings.
8 www.aldersgategroup.org.uk » 1. The economics of nature Our economic success depends on a healthy environment and the sustainable use of natural resources.
Ecosystems, from forests and freshwater Carbon is often regarded by businesses to coral reefs and soils, deliver essential services and political leaders as the most immediate TEEB: Risks for business » to humankind estimated to be worth over resource issue (although it is commonly US $72 trillion a year – comparable to World “Business has much to gain from directly related to others). One of the reasons Gross National Income. Yet in 2010, nearly following the approach promoted by two-thirds of the globe’s ecosystems are for this is that the costs and benefits of TEEB. If anyone doubted that, events in considered degraded.10 action on climate change, informed by Achim Steiner, UN Under-Secretary General considerable scientific research, have the Gulf of Mexico in April 2010 should been quantified with a reasonable degree have set off alarm bells in boardrooms of certainty. In comparison, the economic all over the world. Here was an industry case for maintaining BES is less defined, with relatively little direct dependence Our economy depends on the availability as externalities are complex to calculate and on ecosystem services (compared with of natural resources to provide the basic interactions within or between ecosystems agri-business, forestry or fisheries, for inputs to create goods and services and are not fully understood. However, the two example), which nevertheless faced functioning ecosystems that regulate the agendas are strongly linked – long-term a major threat to its market value and climate, absorb pollution or reduce flooding. climate targets will not be met unless a wide But we can’t take these things for granted. range of natural resources, like water and bottom line as a direct result of the Rapid economic growth over the past half soils, are managed sustainably. environmental impacts of offshore oil century has brought the world’s economy drilling. In this case, a major energy up against global ecological constraints, company was suddenly faced with such as energy shortages, climate impacts society’s valuations of marine and coastal and threats to biodiversity. ecosystems, and forced to internalize the costs of environmental damage resulting from a large oil spill.”11 TEEB for Business
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£100 Company 1 0 2 4 6 8 10 Company 10 » Nelleman, C, Corcoran, E (eds) (2010) Dead Planet, Living Planet – Biodiversity and Ecosystem Restoration for Sustainable Development. A Rapid Response Assessment. United Nations Environment Programme, 11 » TEEB (July 2010) GRID-Arendal. www.grida.no TEEB For Business: Executive Summary.
Pricing the Priceless» The business case for action on biodiversity 9 1. The economics of nature
The TEEB research effort was set up to services. Hence it calls for “halting the Changes to the address this discrepancy by applying loss of biodiversity and the degradation nitrogen cycle economic thinking to the use of BES. It has of ecosystem services in the EU by 2020, assembled evidence that demonstrates the and restoring them in so far as feasible, Cost–benefit analysis highlights how significant but invisible value the economy while stepping up the EU contribution the overall environmental costs derives from nature’s flows and the costs to averting global biodiversity loss”14. associated with humans converting associated with biodiversity loss. It shows This will ensure that the EU reduces its nitrogen for use in industry in Europe these costs will accelerate if we continue on dependence on unsustainable use of (estimated at €70–€320 billion per year a ‘business as usual’ path and that natural natural resources outside Europe, helps at current rates, or £650 for every person assets can yield returns many times higher deliver a more climate-resilient, low carbon in Europe), far outweigh the direct than the cost of their protection. TEEB economy, becomes a leader in research conservatively estimates that policy inaction and innovation (particularly in medical economic benefits (such as increased on BES will lead to cumulative losses that and cosmetic industries) and drives new crop yields through fertilisers). The will be equivalent to around 7% of global skills and employment opportunities. highest societal costs are associated consumption by 205013. with loss of air quality and water quality, While it is clear that BES are crucially linked to impacts on ecosystems and This has helped to strengthen the adoption important to human wellbeing and economic especially on human health.12 of targets by a number of international prosperity, this has not been translated into organisations to halt the loss of biodiversity. robust policies that seek to change behaviour Nitrogen impacts can be managed For example, the EU’s 2020 Biodiversity and halt biodiversity loss at scale. The AG by more careful control of nutrient Strategy recognises that while action to halt has consistently argued for better resource cycles on farms, including targeted biodiversity loss entails costs, biodiversity use and what we need is a range of well- applications of fertiliser and by restoring loss itself is costly for society as a whole, designed environmental measures to natural processes. particularly for economic actors in sectors smooth the path towards a more sustainable that depend directly on ecosystem economy – the ‘green foundations’ needed to underpin future growth and jobs.
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12 » Mark A. Sutton and Hans van Grinsven 13 » TEEB (May 2008) The Cost of 14 » European Commission (May 2011) (April 2011) European Nitrogen Assessment: Policy Inaction: The case of not meeting Our life insurance, our natural capital: an Summary for Policy Makers. the 2010 biodiversity target EU biodiversity strategy to 2020.
10 www.aldersgategroup.org.uk » 2. Pricing the priceless The value of biodiversity must be reflected in prices and policy appraisal.
Valuing them [natural resources] properly TEEB makes a distinction between will enable better decision making, more ecosystem services which are directly Tom Albanese, CEO Rio Tinto » certain investment, new avenues to wealth consumed by people (such as crops, creation and jobs, and greater human “Rio Tinto has long recognised the critical livestock, fish and water) and non- well-being in changing times ahead.15 importance of biodiversity and ecosystem consumptive goods and services (such Lord Selborne services to human well being. We also Former Chairman, as the value derived from landscapes Select Committee on Science or the existence of species). In particular, recognise the risks that biodiversity loss and Technology the latter are rarely valued in monetary and ecosystem service degradation terms. Ignoring or undervaluing natural present to our business. In response, capital in economic forecasting, modelling we have developed our biodiversity The full value of BES is rarely incorporated and assessment can lead to public policy strategy and Net Positive Impact (NPI) into economic and political decision making, and government investment decisions that commitment as Rio Tinto’s way of resulting in less efficient resource allocation. exacerbate the degradation of soils, air, balancing global demand for mineral A more accurate reflection of the true value water and biological resources and thereby resources with the need for greater of BES will enable policymakers and negatively impact a range of economic businesses to make better informed decisions and social objectives16. TEEB presents an biodiversity conservation. While these and ensure that the comprehensive approach that can help decision makers can be conflicting in nature, we believe benefits we derive from ecosystem services capture the full values of BES. that our NPI model provides one way of are taken into account. balancing these conflicts. We are making progress on our commitments, but understand we still have a long journey ahead and one which must be made through engagement with others.”17
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15 » UK National Ecosystem Assessment 16 » TEEB (October 2010) Mainstreaming the (June 2011) Understanding nature’s value to Economics of Nature: A synthesis of the approach, society: Synthesis of the Key Findings. conclusions and recommendations of TEEB. 17 » www.cbd.int/business
Pricing the Priceless» The business case for action on biodiversity 11 2. Pricing the priceless
This evidence base has been further It is particularly effective at drawing out Better valuation will have a limited impact strengthened with the publication of the UK the trade-offs between ecosystem unless it is incorporated into mainstream National Ecosystem Assessment in June services that generate market goods decisions. It is therefore welcome that the 2011, a collaboration of over 500 experts (such as food and timber) and other UK’s Natural Environment White Paper, the from around the world, to develop a tool services including supporting (eg nutrient first for twenty years, makes a commitment to by which economists can more accurately cycling), regulating (eg soil and water put natural capital at the heart of government assess the value of the natural world. It quality), and cultural (eg number of farmland accounting. This will ensure the Office for estimates the current annual value of a birds and landscape integrity)18, that also National Statistics includes natural capital number of ecosystem goods and services support human wellbeing. fully in the UK Environmental Accounts and and explores the consequences of changing that valuing the natural environment is part land use under a suite of different plausible of the policy appraisals guidance that is scenarios to 2060. published as HM Treasury’s Green Book for use by all government departments19. It is essential that valuing BES becomes standard practice within the economic and trade ministries rather than confined to the environment department. By the end of this Parliament, the Chancellor should be presenting a draft natural capital budget alongside the fiscal budget.
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18 » UK National Ecosystem Assessment (June 2011) Understanding nature’s value to 19 » Defra (June 2010) The Natural Choice: society: Synthesis of the Key Findings. Securing the value of nature.
12 www.aldersgategroup.org.uk 3. Don’t exceed the limits There are certain thresholds that cannot be passed without causing irreversible damage.
Maintaining and restoring our natural infrastruc- An effective response to BES challenges fasdfasdf ture can provide economic gains worth trillions will require the implementation of a mix of Don’t exceed the limits » of dollars each year. Allowing it to decline is like policy instruments and collaboration with a throwing money out of the window.20 A number of studies warn of serious broad range of actors, including business Ban Ki-Moon consequences for human societies Secretary General United Nations. and civil society. Many aspects of biodiversity as ecosystems become incapable management require innovative investments and new business relationships (eg between of providing the goods and services water companies and land managers). Policy upon which hundreds of millions of The endeavour to reflect environmental values makers will need to take an integrated and people depend. Such thresholds in prices is an essential one, but for complex holistic approach, cutting across narrow have already been passed in certain challenges such as biodiversity loss, some sectoral boundaries and individual resource coastal areas where ‘dead zones’ tipping points exist beyond which damage issues. Where tipping points are complex to now exist, for a range of coral reefs to human welfare is irreversible. Just as there capture effectively, physical impacts should and lakes that are no longer able is a limit to the greenhouse gases emissions be presented alongside monetary values, to sustain aquatic species and for that can occur without destabilising the with the adoption of minimum standards or climate, so there are limits to the extent of resource budgets. some dryland areas that have been biodiversity loss before ecosystems lose effectively transformed into deserts. resilience21. For example, overfishing can As with carbon budgets, there will need to Similarly thresholds have been cause the ecological collapse of fish stocks, be some form of physical accounting for the passed for some fish stocks24. but more careful stewardship of EU fisheries use of key resources on an economy-wide could increase UK landings by £172.3m 22. basis and economic decisions will have to balance measures of these resources As well as critical limits, there are also A policy approach that relies simply on alongside more familiar monetary measures. critical trends. A core belief of the AG is factoring external costs – to the extent they This is a key recommendation from the AG’s that resource efficiency will be one of the can currently be measured – into prices risks Beyond Carbon report which proposes that key determinants of economic success failing to avoid serious impacts on human the resource measures which appear on the and human well-being in the 21st century. A welfare. That is why valuation should not nation’s economic dashboard would have to prudent economic policy would promote low be seen as a panacea but a useful tool to be carefully chosen and warns that the single- resource consumption not only to halt the ensure that environmental costs and benefits minded pursuit of efficiency for one resource depletion of natural and biological resources have greater visibility in decision making. It is will often work to the detriment of another23. (and protect natural capital), but as a vital essential that limits are acknowledged with part of securing future competitive advantage risks and complexities addressed effectively. in advance of the market (such as greater Good resource management requires resilience to global spikes in commodity Biodiversity Company 12 a combination of price, regulation and prices). In the UK, it is estimated that 10 information to achieve the desired behavioural business could save around £23bn per year Company 10 Company 11 8 change and caution is required where there is from resource efficiency measures that are Company 9 uncertainty about nature’s thresholds. either no or low cost25. 6 Company 7 Average Company 8
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£100 Company 1 20 » www.tinyurl.com/2cg483c 0 2 4 6 8 10 21 » Worm B, et al (2006), “Impacts of Company Biodiversity Loss on Ocean Ecosystem Services”, 24 » TEEB (October 2010) Mainstreaming the Science 314: 787–790. Economics of Nature: A synthesis of the approach, conclusions and recommendations of TEEB. 22 » eftec (2008), Costs of Illegal, Unreported and Unregulated (IUU) Fishing in EU Fisheries. 23 » Aldersgate Group (February 2010) Beyond 25 » Defra (March 2011) The Further Benefits of Report to the Pew Environment Group. Carbon: Towards a resource efficient future. Business Resource Efficiency.
Pricing the Priceless» The business case for action on biodiversity 13 » 4. Regulation can drive growth Regulation can create new business opportunities and new markets.
The UN’s TEEB report is a critical contribution Biodiversity resources are potentially to the debate on how capital markets can renewable, but that potential depends New business opportunities » play a role in addressing the alarming rate of on responsible long-term management. Some of the most pertinent examples loss of biodiversity. At Bank of America Merrill Unlike mineral resources, where extraction Lynch, we believe that Rainforest Bonds include: approaches are a zero-sum game, underpinned by the emerging markets for ecosystem services could be one innovative sustainable management of BES can • Ecologically-branded products, such as 26 be a win-win for businesses reducing solution to this challenge. » An increase in organic food and drink Abyd Karmali, Managing Director current risks to the environment and by over US $5 billion a year, reaching Bank of America Merrill Lynch securing long term resource availability. US $46 billion in 2007; The resource efficiency initiatives that the AG has advocated for physical » Forest Stewardship Council timber; The AG has consistently made the case that resources27 should apply to biodiversity and effective environmental regulation stimulates and ecosystem services. » The growth in the global market for innovation and presents new business eco-labelled fish products by over opportunities, not just in the high-growth The specific opportunities include new 50% between 2008 and 200930; environment sector, but other sectors too. In technologies and products that reduce • Biodiversity offsets markets; many cases, the creation of these new jobs environmental impacts, new markets and markets is driven entirely by the policy that trade in natural goods and services • Payments for provision of ecosystem framework set by Government. and new revenue streams from maximising services; and the value of BES. According to WBCSD’s • Eco-tourism is the fastest growing There are a number of business opportunities Vision 2050 project, sustainability-related area of the tourism industry with an associated with addressing the loss of BES, global business opportunities in natural estimated increase in global just as tackling climate change is leading resources may be in the order of US$ 2–6 spending of 20% annually31. us into the low carbon industrial revolution. trillion per annum by 205028,29. However, a clear agenda for action by Government, business and the third sector is TEEB finds that BES can offer potential required to drive large-scale change. business opportunities by ensuring the sustainability of supply chains, penetrating new markets and attracting new customers. Critical market-based tools that are available or under development include the use of biodiversity offsets, biodiversity performance standards for investors, biodiversity-related Biodiversity Company 12 certification, assessment and reporting 10 schemes and voluntary incentive measures. Company 10 Company 11 8 Company 9
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£100 27 » WBCSD (February 2011) Vision 2050: Company 1 The new agenda for business. 0 2 4 6 8 10 28 » Aldersgate Group (February 2010) Beyond Company Carbon: Towards a resource efficient future. 29 » In comparison, HSBC estimates that the 30 » TEEB (July 2010) low carbon energy market will be US$ 2.2 trillion TEEB For Business: Executive Summary. by 2020 [HSBC (September 2010) Sizing the 26 » www.tinyurl.com/coynfto Climate Opportunity]. 31 » Ibid.
14 www.aldersgategroup.org.uk » 4. Regulation can drive growth
Biological diversity is fundamental to One potential growth market will be agriculture, food production and sustainable biodiversity offsets, a commitment in the Biodiversity offsets » development... A very powerful approach Natural Environment White Paper. Habitat There are targets globally (Convention to ecosystem management involves creating banking is one method of delivering new rights or liabilities for the use of natural on Biological Diversity, CBD) and biodiversity offsets; turning credits into assets resources, and then allowing these to be regionally (EU biodiversity target) to traded. But we need to get it right32 that can be traded, effectively creating a 33 halt the loss of biodiversity – to achieve Martin Taylor market system for compensation liabilities . Chairman, Sygenta No Net Loss. This can partly be done The proposed system of offsets can increase through changes to more sustainable the value of land use in the UK in two ways. production practices (eg in oil palm, It is vital that the UK is an early mover in Firstly by ensuring the biodiversity costs forestry, fisheries). However, continuing areas where it has competitive advantages of land use are taken into account it can economic development means to maximise economic opportunities. To encourage more efficient use of land and that ending damage to biodiversity identify how UK businesses can take the avoid damage to more precious natural altogether is unlikely, so achieving no lead, the AG contributes to the Ecosystem environmental features; and secondly, through Markets Task Force, set up by Defra in offsets that increase the biodiversity value of net loss requires using biodiversity Autumn 2011 and chaired by Ian Cheshire, the land used to compensate for the residual offsets – actions to compensate for chief executive of Kingfisher. This provides damage. The end result will be higher-value residual adverse biodiversity impacts an overall assessment of the economic uses of land (per ha) for development, and arising from project development. opportunities in the UK and prioritises higher value to society from remaining areas Residual means they apply only to actions to secure greater market share. of natural habitats. damage that remains after appropriate prevention and mitigation measures have been taken34. Offsets have developed into markets worth $2bn plus globally35 and a voluntary system is under development in England36.
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33 » Climate Change Capital and eftec 34 » www.tinyurl.com/bo2tmx8 (February 2011) Habitat banking: scaling 35 » www.tinyurl.com/ctdoye3 up private investment in the protection and 32 » www.tinyurl.com/bo8d3u7 restoration of our natural world. 36 » www.tinyurl.com/cmvdqny
Pricing the Priceless» The business case for action on biodiversity 15 4. Regulation can drive growth
Regulation is a key driver to support new Pension funds investing in new Cambridge University’s ‘Natural Capital markets which would otherwise not exist ecosystem markets Programme’, illustrates the major barriers or develop too slowly. It is also vital that VicSuper, a leading pension fund in to integrating natural capital into investment Government and business work together Australia with more than $8 billion in funds decision making at all levels in the economic to engage the consumer, harnessing green under management, has been investing in and social system. It finds that clear policy buying power to help halt the loss of BES. landscape change in Victoria since 2006. and mandatory regulation is required to Consumer information, choice and product create scalable and widespread change labelling will be essential to raise awareness, Its ‘Future Farming Landscapes’ (FFL) project in natural capital management. Policy build trust and change consumer behaviour. is helping to accelerate the shift towards measures must redirect the market (short- more sustainable agriculture and to develop term investors) in a more positive and new markets in ecosystem services. FFL sustainable direction whilst continuing is in the early stages of a 25 year project to encourage financial prosperity. In the to reconfigure land to its most suitable and absence of mandatory regulation, a voluntary sustainable purpose. stewardship code coupled with increased fiduciary duty could promote the development An example of these sustainable agriculture of new natural capital markets37. activities is the preparation for a drier future climate, being undertaken by reconfiguring existing dairy operations to use significantly less water. Other initiatives include low rainfall forestry trials and improving understanding of new irrigation technologies and high value industries.
FFL includes extensive monitoring and evaluation and, over the last year, has established an innovative soil and vegetation health benchmarking programme with the University of Melbourne.
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37 » The Cambridge Natural Capital Programme (2011) Increasing Mainstream Investor Understanding of Natural Capital.
16 www.aldersgategroup.org.uk » 5. Business taking the lead An effective corporate BES strategy can lead to tangible economic benefits and competitive advantage.
The business implications of failing to only six companies reported actions address nature in decision making is clear – to reduce impacts on biodiversity and just Determining the materiality of » since ecosystem services are vital to two companies identified biodiversity as biodiversity the performance of most companies, a key strategic issue41. Furthermore, the integrating the true cost for these services Independent research by AG Director in the future could have significant impacts public is more familiar with concepts of Chris Tuppen43 on materiality on corporate bottom lines.38 nature, place and landscape rather than the Jochen Zeitz, Chief Executive, Puma more technical terminology of biodiversity determination shows that of the fifty and ecosystem services42. most referenced issues in 31 leading company reports, the impact of the Given that biodiversity is not generally viewed recession showed the highest level of Many businesses are assessing their by stakeholders as a major strategic issue, coherence while biodiversity was the dependency on BES and integrating how can a strong case be made for the lowest (i.e. biodiversity led to the widest measures for the sustainable use of natural implementation of comprehensive corporate disparity of views in terms of whether it resource into their corporate strategies. BES strategy? was a material issue). The graph below This is vital as all businesses, directly or indirectly, depend upon BES for their ongoing This must be justified on the grounds that the shows how companies have estimated commercial success and should therefore loss of BES poses significant (and growing) the materiality of biodiversity (with the address the significant risks and opportunities risks and opportunities for all businesses, most material issues appearing at the relating to their impact on nature. although to varying degrees. top right hand corner). The company axis represents the corporate view and the In the first instance, an organisation needs stakeholder axis represents the degree to an efficient method for determining the which the wider stakeholder community materiality of BES to its operations and deems it to be an important issue. The stakeholders. While a number of reports claim that there is an increased awareness from chart demonstrates that biodiversity is a communities, NGOs, customers, consumers complex issue which stimulates a wide and shareholders on biodiversity issues39, spread of opinions. Only 12 companies the evidence is mixed. are shown because the remainder did not even include biodiversity in their A survey by McKinsey shows that biodiversity materiality matrix. ranked tenth out of a list of the twelve most important environmental issues40, while a review by PwC of the annual reports of the Biodiversity Company 12 100 largest companies in the world finds that 10
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N Stakeholders Company 3 Company 4 41 » However, new initiatives such as the Business 2 £100 and Ecosystems Training (BET) course currently Company 2 under development by the WBCSD with help from Company 1 38 » Richard Anderson (16th May 2011) KPMG and a number of multinational member 0 2 4 6 8 10 BBC News: Puma first to publish environmental companies, academic and UN institutions, Company impact costs. show that there is an appetite for increasing the 39 » For example, see WBCSD (April 2011) Guide awareness of biodiversity related issues. to Corporate Ecosystem Valuation. 42 » UK National Ecosystem Assessment 40 » McKinsey & Company (July 2010) The next (June 2011) Understanding nature’s value to 43 » Fronesys (October 2011) Materiality environmental issue for business. society: Synthesis of the Key Findings. Determination: Analysing who, what and how.
Pricing the Priceless» The business case for action on biodiversity 17 5. Business taking the lead
The loss of natural capital (including frameworks exist to incorporate BES Puma’s Environmental Profit ecosystems, biodiversity and natural into decision making, such as WBCSD’s and Loss Account » resources) has direct and widespread Corporate Ecosystem Services Review Puma, a sport and lifestyle company, has negative effects on financial performance… (CESR) and Corporate Ecosystem Valuation worked with a consultancy firm (PwC) and The financial markets do not yet understand that many companies face specific risks (CEV). These can be applied to any aspect environmental research group (Trucost) to from disruptions of vital ecosystems through relating to a business, such as a product, calculate the impact of its business on nature. their supply chains and that they need to a service, a project, an asset or an incident This has been published as the first results 44 plan for the impact of new regulation. and help enhance sustainable development of Puma’s ‘environmental profit and loss Colin Melvin, CEO, Hermes Equity strategies and outcomes. The underlying account’, which shows the monetary value of Ownership Services Ltda business case is that they enable companies Puma’s impact on the environment in terms to improve decision making and thereby of greenhouse gas emissions and water increase revenue, save costs and boost consumption along the entire supply chain. The risks include higher input costs, new the value of their assets and potentially share Puma calculates that in 2010 the combined government regulations, reputational damage, prices. It also helps to inform mindsets, environmental cost of the carbon emitted changing consumer preferences and behaviour and actions among stakeholders and the water used – from raw materials investors tightening lending policies, while and employees, such as accounting for production to the shop floor – was £80.9m. the potential opportunities include demand ecosystem values to justify price premiums The company has a target to reduce its for new products, services and technology, on products. Crucially, ecosystem valuation carbon emissions, energy and water use by better access to capital, quicker project should be “fit for purpose” – it does not 25% by 2015. The next phase of this work approval and new revenue streams from need to be meticulously accurate or will examine the impacts of acid rain, waste managing and selling natural assets45. As expensive to undertake46. and land use change, among others. addressing BES is undoubtedly a horizon issue, businesses that take the lead will have Despite improvements, the measurement The company believes that calculating these a competitive advantage as pressures on the of BES remains challenging and identifying impacts will help it reduce costs and develop natural environment increase. the implications for decision making can be a more sustainable and resilient business complex. This is perhaps why BES is often model by safeguarding the resources and To do this effectively, businesses require treated superficially in company reports and ecosystems services on which it relies for suitable tools to identify and measure their very few FTSE companies have a “good” long term success49. material interactions with BES and integrate biodiversity policy assessment, according them into decision making. Furthermore, to EIRIS47. Indirect biodiversity impacts suitable frameworks for reporting and are particularly difficult to address, moving disclosure are needed. A number of different beyond primary impacts, such as site level Biodiversity activities that are more straightforward to Company 12 10 mitigate directly. Such issues need to be addressed when the Government publishes Company 10 Company 11 8 Company 9 new guidance for businesses by 2012 on how to measure and report their corporate 6 Average Company 7 Company 8 environmental impacts48. £100 Company 6 Company 5 4
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£100 Company 1 0 2 4 6 8 10 46 » WBCSD (April 2011) Company 44 » UNEP Finance Initiative (October 2010) Guide to Corporate Ecosystem Valuation. Demystifying Materiality: Hardwiring biodiversity and ecosystem services into finance. 47 » EIRIS (2011) ‘COP’ Out? Biodiversity loss and the risk to investors. 45 » WBCSD (October 2010) The Interdependence Story: Business, 48 » Defra (June 2010) The Natural Choice: 49 » Defra (June 2010) The Natural Choice: biodiversity and ecosystem services. Securing the value of nature. Securing the value of nature.
18 www.aldersgategroup.org.uk » Case Studies
CEMEX: Wessex Water: Developing a biodiversity strategy Lowering treatment costs by protecting the environment CEMEX is one of the largest cement manufacturing corporations in the Wessex Water supplies drinking water world, operating 70 quarries in the to 1.3 million people in the south west UK. In 2009, CEMEX UK engaged in of England, mostly from groundwater a strategic partnership with the RSPB sources in Wiltshire and Dorset. The to provide a focus to their work in company has undertaken a catchment operating and restoring quarries and management initiative, to push for a to realise opportunities for biodiversity cheaper, more sustainable way of treating enhancement. for nitrates and pesticides, delivering broader benefits for the environment The partnership’s outputs include a and generating greater community Biodiversity Strategy, launched in involvement. 2010, which commits the company to creating 1,000 ha of priority The initiative involves employing a small biodiversity habitat (defined in the team, operating over 15 catchments, UK Biodiversity Action Plan (BAP)) which researches and monitors the by 2020. This is being delivered impacts of agricultural inputs on water through a combination of restoration quality, delivering advice and financing opportunities on active quarries and to farmers related to the adoption of less by ensuring that biodiversity is a prime damaging practices. driver of future restoration plans. The monitoring involved in these The Strategy also challenges the processes is extensive, involving company to build biodiversity into the approximately 7,000 water samples core of its business ethos and to adopt and almost 1,500 soil samples in a a net positive impact approach. Part typical year for analysis and feedback to Biodiversity of the business rationale is that this farmers. Farm records are also used to Company 12 10 helps give CEMEX a ‘USP’ with its key monitor nitrate inputs.
Company 10 Company 11 customers and helps stakeholders to 8 The initiative represents a low cost Company 9 identify the biodiversity impact of their 6 solution to dealing with the problem Company 7 Average Company 8 developments of nitrates and pesticides. The actual £100 Company 6 Company 5 alongside other 4 cost benefit ratio varies from site to site N Stakeholders Company 3 Company 4 indicators 2 but on average when using catchment Company 2 of sustainability. £100 Company 1 management, water quality problems are 0 2 4 6 8 10 addressed at approximately one sixth of Company the cost of the treatment alternative.
Pricing the Priceless» The business case for action on biodiversity 19 » Case Studies
M&S: PepsiCo: Willmott Dixon: Addressing biodiversity to mitigate Protecting ecosystem services Enhancing biodiversity on risks and support best practice to drive competitiveness construction sites
Biodiversity is an important part of the As one of the world’s largest food Construction projects can impact sustainable sourcing of raw materials and and beverage companies, PepsiCo significantly on biodiversity, most overall operational thinking for M&S, who relies on the earth’s natural resources notably on habitats and through the have around 21 million customers a week to run its businesses. consumption of natural resources shopping in 670 stores across the nation. such as water and timber. It is committed to minimising the Wherever significant impacts of raw impact its business has on the Willmott Dixon aims to ensure that it material sourcing are identified (by environment as it expands across minimises ecological damage as far undertaking a risk assessment allied to many developed and developing as possible, protecting plants and consultation with key stakeholders), the markets. Its global Sustainable wildlife. This helps to comply with company aims to support best practice, Agriculture Policy is grounded upon regulations (there are legal implications avoid bad practice and encourage the a set of principles that encourages of not carrying out thorough ecological bulk of its supply chain operations to its growers to operate in a way that surveys), avoid costly programme improve their performance. protects their land and communities. delays (for example, failure to identify or protect endangered species such M&S has carried out a comprehensive This includes an objective to preserve as bats) and engage clients (who score analysis of its biodiversity impacts and improve soil fertility and nutrients, the company on biodiversity as part of resulting in the introduction of Biodiversity minimize soil loss through erosion and a monthly client survey). Actions Plans (BAPs) for all major avoid soil damage due to disease and store construction programmes where contamination. For example, PepsiCo Working with clients and stakeholders ecological impacts can be influenced, encourages its famers in Canada to to identify opportunities for biodiversity as well as targets across key raw plant oats that provide excellent soil improvements can include building green materials used in its food, clothing erosion control, leading to supplies which roofs, cleaning up ponds and creating and home products. Standards and are planted with zero tillage – a way of new wildflower meadows. Sometimes interventions are developed through growing crops from year to year without it may be as simple as protecting Biodiversity work with a range of organisations, disturbing the soil through excessive use trees from construction activities or Company 12 10 such as the Marine Stewardship Council of cultivation practices. programming site activities to minimise
Company 10 Company 11 and Rainforest Alliance. disturbance to breeding birds. 8 Company 9 PepsiCo also seeks to optimise the
6 The main benefit of managing the applied water footprint to crops and to The next step is to convert this on-site Company 7 Average Company 8 biodiversity impacts of raw materials is reduce water waste during irrigation, as understanding into beneficial action, £100 Company 6 Company 5 4 mitigating risk, both reputationally and well as responsibly manage runoff risks continually improving the planning N Stakeholders Company 3 Company 4 2 in helping to secure adequate volumes of pollution or contamination of ground or and design process to enhance the Company 2
£100 Company 1 of high quality raw materials that are surface water with pesticides, nutrients biodiversity of its projects. 0 2 4 6 8 10 needed for products. These sorts of or soil. For example, the direct seeding of Company issues increasingly feature in the media rice in India saved 7 billion litres of water in and customers expect a brand like M&S 2010 and helped reduce the company’s to be taking action on their behalf. risks associated with water availability.
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Case Studies
InterfaceFlor: The Co-operative: Working with the MCS in 2009, The Integrating nature into Safeguarding marine biodiversity Co-operative launched the Marine product design to protect economic performance Reserves Now! – a campaign calling InterfaceFlor has an underlying Responsible retailing has been central for an ecologically coherent network of philosophy of mimicking nature in to The Co-operative since it was Marine Protected Areas and no-take its approach to solving problems. created in 1844 to provide quality zones. The campaign asked political Hence, it has consistently applied produce at a fair price to all. parties to adopt a policy manifesto biomimicry – studying the efficiency Resourceful management of natural commitment for 30% of UK waters of natural systems – in product capital is fundamental to this vision. to be Highly Protected Marine Reserves development which has produced by 2020 – which, following support of Effective management of fisheries is several successful innovations. over 500,000 Co-operative customers, necessary to ensure productive marine was successfully implemented in the For example, its Entropy carpet reflects ecosystems – providing habitats in Marine Act in late 2009. an adherence to the randomness in which wildlife can thrive and providing nature. By mimicking the colours and food, employment and income for Ultimately, by supporting effective patterns found on the forest floor, human society. For this reason, in 1998, management of fisheries, The InterfaceFlor was able to create a The Co-operative was one of the first Co-operative can protect economic design ideally suited to the needs of organisations to support the Marine performance and the societal and creating a modular carpet system. Stewardship Council (MSC). environmental well-being that is The Entropy line does not try to create fundamental to its business. Since this date it has worked to promote uniform colours across a carpet, environmentally appropriate, socially making it very easy to change pieces beneficial and economically viable fishing of the carpet without noticing a practices. The Co-operative difference – reducing waste and Food has avoided all species on the maintenance costs. Its TacTiles Marine Conservation Society’s (MCS) range, also inspired by nature, uses Fish to Avoid list since 2008, and small adhesive squares to connect committed £200,000 to help improve carpet without the need for glue. the sustainability of the UK fishing Biomimicry is a part of InterfaceFlor’s sector by supporting fisheries through wider sustainability strategy which has their MSC assessment. saved the company an estimated $433 billion over the last 15 years.
Pricing the Priceless» The business case for action on biodiversity 21 Biodiversity Company 12 10
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Recommendations and Next Steps The AG’s key recommendations are as follows:
Business needs to begin to draw the dots Government must clarify the process Defra should engage with businesses between natural resources, their supply 1 by which natural capital is included in 5 on the development of a reporting » chain, consumer demand and the future the national accounts and ensure proper framework and associated guidance value of their business. Like the impact of scrutiny by an independent body. and work with the Natural Capital the recession, there is simply no sector that will be immune to biodiversity and Committee to ensure that this helps ecosystem loss. The level of financial, By the end of this Parliament, the the Natural Capital Budget define the reputational and business risk it poses is of 2 Chancellor should present a draft importance of BES to the UK economy a scale that would not be ignored in any natural capital budget alongside the and highlight material risks and other area of business and the economy.50 fiscal budget. opportunities to specific business Malcolm Preston, Global Head of Sustainability Services, PwC sectors. In light of the Natural Environment 3 White Paper, there should be cross- departmental responsibilities to ensure the objective of zero net biodiversity loss becomes a reality.
Businesses should take the lead 4 by assessing their impacts and dependency on BES and integrating measures to ensure the sustainable use of natural resources.
50 » www.tinyurl.com/37hypc4
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» Questions for Key Decision Makers This report provides background to key themes relating to BES and makes the business case for action.
Biodiversity cuts across a wide range of business and political functions and Business Political it is no longer a sound economic or business strategy to ignore them. Chief Executive Prime Minister The AG will develop this work programme “Who is dealing with BES risks and “Is the UK’s natural capital asset base by using the following questions as a starting point to engage key actors in opportunities in your business?” being managed sustainably?” the economy on biodiversity issues.
Financial Director Chancellor “What are the risks and costs to “What costs (eg flood defence spending) your balance sheet of BES?” could BES help mitigate?”
HR Director BIS Secretary “Are potential new graduate employees “Are UK businesses making the put off by your business’ lack of awareness most of BES opportunities?” on BES?”
Sustainability Directors or Managers DECC Secretary “Are BES issues adequately captured “Are BES contributing optimally to climate in your company’s sustainability strategy?” change adaptation and mitigation?”
Purchasing Managers Environment Secretary “What risks in your supply chains are “Is environmental management there in relation to BES (eg unsustainable making the most of BES opportunities palm oil)?” (eg subsidy regimes)?”
Marketing Managers Land managers “What BES risks (eg consumer “Are you receiving all potential income boycotts) or opportunities (premiums from BES from your land?” for labelled products) are there in your
product portfolio?”
Small to Medium Enterprises (SMEs) Local authorities “Are the corporate customers you “Could enhancing BES values of your supply starting to think about BES? If area make it a more attractive place for they do will you be able to meet new businesses and/or their employees? requirements they might have?”
Pricing the Priceless» The business case for action on biodiversity 23 Biodiversity Company 12 10
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