october | 2018

Natural Capital

in partnership with:

Implemented by A natureza Coordinator não tem preço, Mario Monzoni october | 2018 Editor Amália Safatle

tem valor FGVces Researchers Natalia Lutti, Thaís Camolesi Guimarães Considerar o valor da natureza na gestão empresarial, identificar incentivos econômicos para conservação, fortalecer a Production Manager gestão territorial com informações sobre os benefícios dos Bel Brunharo ecossistemas e apoiar o desenvolvimento de contas econômicas Te x t ambientais são contribuições do Projeto TEEB Regional-Local Amália Safatle Magali Cabral para unir bons negócios e políticas públicas com a conservação Sérgio Adeodato de recursos naturais. Copy Editor Mapear os Serviços Kátia Shimabukuro Ecossistêmicos relevantes para os municípios colabora Website para a construção de Amália Safatle instrumentos de gestão 500 pessoas capacitadas dos territorial mais efetivos. setores público, empresarial, Vídeos terceiro setor e academia, sendo Oscar Freitas Neto 50% de atores empresariais. Magali Cabral

Mudança do clima e escassez Design hídrica são as principais José Roosevelt Junior motivações para a inclusão de Serviços Ecossistêmicos na Acknowledgements gestão empresarial. 80% da energia de hidrelétricas À equipe da Iniciativa conta de alguma forma com água Empresarial Tendências em preservada pelas unidades de Serviços Ecossistêmicos conservação. (TeSE)

As contas econômicas ambientais da Editorial Board água permitem comparar as riquezas Annelise Vendramini, Aron geradas e o consumo de água de Belinky, Daniela Gomes Pinto, diferentes atividades econômicas , Fernanda Carreira, Guarany uma informação importante para Ipê do Sol Osório, Livia melhorar a gestão sustentável dos Menezes Pagotto, Mariana recursos. Nicolletti, Mario Monzoni, Mauricio Jerozolimski, Paulo Durval Branco

O Projeto TEEB Regional-Local é uma realização do governo brasileiro, coordenada Cover Irina Kostenich/ pelo Ministério do Meio Ambiente (MMA), em parceria com a Confederação Nacional Unsplash da Indústria (CNI) e outros parceiros, como a FGV. O projeto é financiado pelo Ministério Federal Alemão do Meio Ambiente, Conservação da Natureza e Segurança Nuclear (BMU) através da Iniciativa Internacional para o Clima (IKI), e implementado pela Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. Irina Kostenich/ Unsplash Irina Kostenich/

Por meio da P22_ON is a product of Page22.

october 2018 videoscribe script: Magali Cabral Locuction: Cíntya Feitosa

Do you know what natural capital is? And why do businesses need to incorporate that concept into their decision making?

hat is what this video is A demonstration, through num- the importance of natural as- late to the business world? tion, effluent emissions...). and the Trends in Ecosystem going to explain. bers, that conserving wetlands sets, the same expressions Services (TeSE) business initia- T located close to the city of Kam- used in the mainstream eco- All business activities directly The challenge is to create busi- tive, supported by the Boticario pala, capital of Uganda, would nomic and political models or indirectly depend upon natu- ness practices and strategies Group Foundation. Our goal is Natural capital is a term used to be more beneficial than using worldwide were applied. ral capital. that generate value for the or- to show business best practices refer to renewable and non-re- those areas for agriculture. ganization and at the same time to inspire other companies. newable natural resource stock Combined, those natural assets As all business activities cause promote ecosystem preserva- on Earth. For example, the air, Wetlands act as a natural sew- provide services that are called impacts on the environment tion and the society well-being. Enjoy! plants, animals, water, soil, min- age treatment, saving resourc- ecosystem services. Take, for and on the society, there is a erals... es in sanitation. And they offer instance, the balance in rainfall need to know them in order to In this P22_ON edition, you will the extra benefit of acting as a regime... manage risks as well as busi- see a demonstration of how It started being called natural natural barrier in case the sea ness opportunities. some companies are managing capital when people realized level rises. Not to mention their ... natural vegetation that offers natural capital. We published 16 those elements are critical value as a nursery and source clean water, pollination per- The impacts can be positive (in- cases selected in the Natural for economic activities, just of food for the marine life – formed by animals, CO2 capture vestment in local restoration Capital Business Management like people, machines and fi- which is very valuable, even that helps regulate the climate, or improvement in the qual- call for cases. nancial resources are. It is a economically speaking, for the forests that protect the soil and ity of water, soil, surface...) way to justify conservation fishing industry. slopes against erosion... or negative (air pollutant The action was promoted by of natural capital to decision emissions, waste generation, FGVces, in partnership with the makers. Therefore, to call attention to And how does all this re- excessive water consump- TEEB Regional-Local project

P22_ON natural capital october 2018 keith bremner/ Unsplash context by amália safatle

n the economy, capital can be but rather seen as an oppor- ecosystems and biodiversity understood as a set of assets tunity to generate and distrib- is all it takes to encourage the Ithat generate production, in- ute economic and social gains. elaboration of public policies. come and wealth. By transpos- But, in other situations, policy- ing that language to nature, we Currently, an important source makers need to first demon- come to the ‘natural capital’ of knowledge on natural capital strate the economic value of a expression, used to represent is the information organization certain service to justify con- the stock of renewable and non- work conducted by The Eco- servation practices. renewable resources that are nomics of Ecosystems and Bio- combined and generate a flow diversity (TEEB), headed by the A classic example – illustrated of benefits for people – such economist Pavan Sukhdev and in Chapter 4 of the TEEB Re- as clean air, freshwater, shelter, launched in 2007 by Germany port – was the demonstration, food, climate regulation, medi- and the European Commission. through numbers, that con- cines, recreation, and so on. Their goal is to show the eco- serving wetlands located close nomic impact of losing biodiver- to the city of Kampala, capital For Herman Daly and Joshua sity and degrading ecosystems, of Uganda, would be more ben- Farley, authors of reference considering the harmful effects eficial than using those areas works, such as Ecological Eco- on human well-being. for agriculture, because wet- nomics: principle and applica- lands act as a natural sewage tions, natural capital means When Sukhdev used to work treatment, saving resources in the “(biotic or abiotic) stock or in the financial industry in the sanitation. reserve provided by nature that 1990s, he found himself aston- yields a valuable future flow of ished with the disconnection Speaking the Same Language natural resources or services”. between the notable economic Whereas ecosystems are an performance of the so-called Therefore, it would be more ef- example of “stock”, ecosystem Asian Tigers, which allowed for fective to use the same expres- services provided by nature can individuals to amass wealth, and sions used in the predominant be considered a “flow” (find out evident destruction of natural economic and political model more about Ecosystem Servi- economic bases (in the end of the worldwide. In other words, ces in this edition). 1990s, Asia would face a crisis). speak the same language of business as usual to introduce Conserving nature, by design, ‘The Yellow River has dried up new paradigms. should be an unconditional for nine months in 1997 and, practice, for which you expect in 1998, there was the Yangtse Still, some environmental and nothing in exchange. It would be River flood. Heavy smoky haze socio-environmental groups enough to understand that ev- caused by the burning of bogs in criticize the use of expressions ery form and structure sustain- Sumatra damaged the air qual- borrowed from the Economics, ing life is worth of love, respect ity in Singapore, where I used such as natural capital, stock, and protection, simply for their to live. But news headlines all flow and natural resources. existence. Ethical and moral rea- over the world would talk about However, valuing natural capi- sons would also be sufficient to the economic crisis in Asia, the tal is different from assigning justify conservation policies. collapse of the housing market it a commercial nature. It does in Thailand, demonstrations in not mean that nature is out for But, in the economic systems Indonesia, devaluation of lo- sale, but it rather has a tangible that view nature as a set of cal currency in Malaysia and value and, often, an intangible resources to be explored or its replacement with exchange value – that cannot be mon- A way to acknowledge a sink of resources discarded controls’, wrote Sukhdev in the etized, such as the affective, for the benefit of the human first TEEB Report. spiritual and cultural values species, from an anthropocen- (more about cultural ecosys- tric perspective, it is critical to And, then, he questioned: ‘Why is tem services here). the value of nature acknowledge nature as a high individual wealth desirable, and value capital that supports all why are people interested in its The problem of not acknowledg- the others – human, social, fi- loss, but not in public wealth?’ ing tangible and intangible values For the new economy to advance, natural capital needs to be incorporated into the nancial, infrastructure capital is to convey the opposite mes- business strategy etc. That acknowledgment be- According to him, sometimes, sage to newcomers; i.e.; that nat- comes a solid argument to avoid acknowledging the intrinsic, ural assets are free and totally nature from being plundered, spiritual or social value of the available to be explored by any-

P22_ON natural capital october 2018 context

one at any given time, increasing There are plenty of reasons to capital to a certain extent and, is not just about having an iso- According to him, the phenom- vironmental perspective, such be really challenging for the the risk of depleting them. seek the best business, eco- due to that, will be exposed to lated project that seeks conser- enon of reprimarization has as agrochemicals control, li- country to advance in the sus- nomic and natural resources risks, but can also benefit from vation of natural capital while been intensified in the past two censing requirements and fight tainable development agenda. Fábio Scarano, coordinator of management. As continuously opportunities. ‘Every impact the core business is driven by decades (please refer to the against deforestation. Acknowledging those who in- the Intergovernmental Panel shown by the Earth Overshoot and dependency will affect not the ‘old economy’. graph below) and is driven by corporate natural capital into on Biodiversity and Ecosystem Day, announced by WWF, every only the business, but also the industries that often times try If businesses do not incorpo- their business strategy is the Services (IPBES), alerts to the year we deplete the resources society’, states the coalition. That is a risk, as alerted by Car- to free themselves from what rate natural capital into their great drive of this edition. anthropocentric bias that the faster than the natural re- los Eduardo Frickmann Young, they see as ties from the en- management strategies, it will expression ‘natural capital’ sug- sources can regenerate within With the purpose of investigat- Associate Professor of the In- gests, and says the challenge a 12-month-period, which keeps ing the importance businesses stitute of Economics at Rio de is to really make a distinction us in an explosive overdraft – to in Brazil assign to natural capi- Janeiro Federal University and a between the ideas of price and also use a financial expression. tal and how they address that researcher at the National Insti- Evolution of quarterly GDP per activity, 1996-2018 (average in 1996 = 100). value. ‘Nature is priceless’, he topic in their management, in tute of Science and Technology emphasizes. According to him, It is the moment when human- May this year a call for Natural of Public Policies, Strategies the risk of confusing these two ity’s annual demand on nature Capital Business Management and Development. “In the agri- concepts is higher when natural exceeds what Earth ecosystems cases was launched, and the business industry, for instance, capital is incorporated into busi- can regenerate over the entire findings are published in the ar- there are really cool conserva- ness management. year. In 2018, the day we were ticles of this edition. tion initiatives, but most of the in ‘overdraft’ was August 1st. In investment goes to ‘spurious This topic is covered in the TEEB 1987, when measuring started, It is a pioneer initiative in Brazil competitiveness’, as Fernando Report, according to which the day was December 19th. that started from a partnership Fajnzylber used to call it’, he setting a value for ecosystem between the Ministry of the En- explains. services does not mean they Meanwhile, the financial capital vironment (MMA), the National should be converted into secu- increases, mostly, at the ex- Confederation of Industries The message conveyed by rities that can be exchanged in pense of use, exploration and (CNI), and the German Coop- Young is for natural capital con- the marketplace: ‘TEEB does degradation of natural and hu- eration for Sustainable Devel- servation business initiatives not propose that placing blind man capitals, according to the opment (GIZ), under the TEEB not to be isolated, but rather faith in the ability of markets to Natural Capital Coalition. That Regional-Local Project, with the systemic – particularly consid- optimize social welfare by priva- coalition, which gathers organi- Center for Sustainability Studies ering the context of once again tizing the ecological commons zations and experts on the topic at FGV Eaesp (FGVces). It was having the Brazilian economy and letting markets discover worldwide, produced a protocol, also supported by the Boticario as a whole focused in the pri- prices for them. What TEEB of- which is used by the businesses Group Foundation (learn about mary sector. That trend seeks fers is a toolkit for integrating as a guide to implement practic- the selection process here). competitiveness at low costs, good stewardship because it’s a es associated to natural capital. strongly based on commodi- good economic practice.’ Ideally, concerns with natural ties, such as fresh crops and The Natural Capital Coalition re- capital are incorporated into the crude ore, usually with low job Searching for better minds us that every business af- business strategy and regular creation and high generation of management fects and depends upon natural management. In other words, it negative externalities. Source: IBGE, Quarterly Balances

P22_ON natural capital october 2018 DROPS

The call of cases: video testimonials and a Step-by-Step methodology Guide to the Call Watch here the video testimonials of who led this initiative (in Portuguese): for Cases

Understand the initiative drives and learn about the selection criteria

o learn how the manage- themselves in that field and Widely known experiences were reference and inspiration. ment of natural capital share concrete actions and re- not a priority, because the idea Tcreates value for compa- sults, which may inspire others was to open up room for expe- - Materiality and strategic con- nies and, at the same time, for to do the same. riences that still need greater tribution for business challeng- the ecosystems they are part visibility. In order to ensure di- es: Natural capital management of. This is the great drive for the Being a reference to other busi- versity in topics, one single case contributes directly or indirect- Natural Capital Business Man- nesses and, thus, expanding that was selected per company. ly to add value and for advance- agement call for cases. innovative management model ment in business practices, Natalia Lutti - Manager of the Trends in Ecosystem Services Luciana Alves - Technical Advisor of the TEEB Regional- was one of the assumptions Out of the 33 initial cases, 21 considering integration into the (TeSE), FGVces -Local Project / GIZ The initiative, pioneer in Brazil, considered when establish- were pre-selected and then as- business strategic perspective, started from a partnership be- ing the rules for the call. Cases sessed by a committee of ex- business areas involved and the tween the Ministry of the Envi- were selected with the goal of perts formed by representatives impact in its internal processes, ronment (MMA), the National showing that the management of partner organizations. After as well as results, products or Confederation of Industries of natural capital can be applied individual analyses, there was a services. (CNI), and the German Coop- in many forms, by businesses of meeting for alignment and con- eration for Sustainable Devel- different sizes, operating in nu- sensus, considering four criteria: - Generation of benefit for nat- opment (GIZ), under the TEEB merous industries. ural capital: Business practice Regional-Local Project, with the - Potential long-term practice: provides a relevant contribu- Center for Sustainability Studies Launched in May this year, the The action is permanent and tion for maintenance, restora- at FGV Eaesp (FGVces). It was call received 33 cases altogeth- is part of the business rou- tion and/or increase of natu- also supported by the Boticario er, which were then assessed tine. By integrating your core ral capital and its ecosystem Group Foundation. according to the eligibility cri- business, rather than being a flows, as well as costs and teria. One of the requirements parallel activity, the practice benefits for the local popula- Why a call for cases? Partner was that the proponents were becomes a long-lasting expe- tion who relies on natural cap- organizations understood it for-profit organizations, and rience because it is included in ital, other related actors and would be an effective way to that the initiative addressed planning, implementation and the society as a whole. identify what companies in the business management, so as monitoring processes. Elisa Romano - Specialist in politics and industry of the Na- Luana Duarte - Environmental Analyst at the Ministry of country are addressing natural to engage the business sector. Based on these criteria, the tional Confederation of Industry (CNI) Environment (MMA) capital in their decision-making, In addition to clearly filling out - Potential for replication and committee has selected 16 fi- and find out what practices all fields in the questionnaire future perspectives: The action nal cases, which we will cover they are using. In fact, the initia- they received, businesses had can gain scale, be used by other in further detail in the articles tive made the companies see to show measurable results. organizations and be used as contained in this edition.

P22_ON natural capital october 2018 MEASURING THE VALUE by Sérgio Adeodato

VALUATE TO FIBRIA EXTERNALIDADES/ DE VALORAÇÃO CONSERVE

Businesses map, measure and try to understand their dependency and impact relationships with the ecosystems

eveloping metrics to con- as much as 50 years ago. de Caxias (Rio Grande do Sul gion, which forced water power for 2023. Additionally, metric- biggest producer of eucalyptus referred to goods produced by ly dedicated to environmental vert into dollars the (neg- state), the valuation pilot proj- rationing in some cities. About based learning will be repli- pulp, the initial plan was to map bees, accounting for 65% and conservation, the company cap- Dative or positive) impacts ‘The impact caused by water ect showed that for 12 months 40% of the businesses report- cated to the supply chain and ecosystem services under the 35% of the honey production in tures more carbon than it re- caused to ecosystem services shortage directly affects busi- of drought the total impact is ed they were affected, accord- customers, aiming at expanding influence of its operations and the states of Espirito Santo and leases in industrial operations. and to livelihoods in local com- ness; thus, it is increasingly nec- somewhere around BRL 120 ing to the State of Sao Paulo their gains. economically measure the ef- Sao Paulo, respectively. The account balance reached munities is key for companies to essary to find ways to measure million. The option to pay for Industries Federation (Fiesp) fects on two of them: food pro- BRL 2.8 billion in 2016, consid- assess risks and opportunities. and neutralize risks’, points out reclaimed water obtained from – in some cases, those losses The strategy is rather urgent, vision, and global climate regu- The calculation helps clarify ering the social cost of carbon The strategy is incorporated into Gustavo Kajiura, a member of sewage during a five-year pe- required measures to improve taking into account the World lation through carbon balance. controversial issues, such as of US$ 96 per ton, according business, in industries that span the Sustainable Development riod, including the water crisis water management. Bank projections of a 6% de- the argument that extensive to the international standard. from chemical to power genera- team at Braskem. period, is a solution that costs crease in the global Gross Do- In the first program, called eucalyptus plantations for pa- ‘Those are benefits the com- tion and are intensive in the use BRL 20 million less than taking ‘It is not just about internal se- mestic Product (GDP) growth ‘Colmeias’ (the Brazilian Portu- per production compete for pany generates without being of ecosystem services, such as After having mapped threats the risk of reducing supply and curity in the operations, but rate by 2050, as water dis- guese word for ‘Beehives’), to space that could be used to compensated for. And, some- water resources provision. in different scenarios by 2040, production. lower pressure on watersheds, putes intensify. Given that sce- foster apiculture, the analysis produce food, causing social how, they need to be aligned America’s largest thermoplas- so the society will be able to nario, the World Water Council covered honey production by problems and threats to food with the revenue’, states the Water-related conflicts arise tic resin producer decided to The technological reference for access the resource’, explains estimates the need for invest- communities amid the forests security. ‘The transparency Environment & Forest Manager, worldwide, causing environ- delve deeper into the analysis the alternative option is Aqua- André Villaça, Sustainability ments around US$ 650 billion planted to supply the industry. process requires clarity in the João Augusti. mental, social and economic and calculate the economic fea- polo, a project in which Braskem Expert at Braskem, who, in the per year, up to 2030. As the eucalyptus flourishes perception about the impacts losses. Currently, there are 1.7 sibility of solutions to access is a partner, at Great ABC, in Sao past few years, invested BRL over five years before harvest, caused by companies’, ana- The sector depends on soil, billion people living in regions water, one of its main inputs. Paulo, with capacity to produce 280 million to reduce water Measuring externalities there is a great offer of nectar lyzes Sarita Severien, from the water and climate conditions. where the demand for water The method consisted of mea- 1,000 liters per second in one consumption to levels six times and pollen to bees. In addition Forest & Environment Depart- And the same natural resourc- resources exceeds the supply. suring the financial cost of im- of Sabesp’s wastewater treat- lower than the industry average Understanding the dependency to that activity, in the Wood ment at Fibria. Those who do es the company needs for its By 2050, there will be over 2.3 pacts considering a water crisis ment plant, a volume that is worldwide. relationships between natural and Food Integrated Production not valuate externalities, costs operations are used by other billion people in this situation, scenario – in which the grant to the equivalent to the water con- resources and calculating the Project, they opened the area or benefits to society will ulti- segments to supply their own according to the Organization use rivers may be reduced in sumption in a city of 500,000 Measuring the value of risk, value of (both negative and for family farmers to plant mately ignore them. And this needs. Therefore, according to for Economic Cooperation and 30%, causing a drop in industri- inhabitants. making the perception of im- positive) impacts caused to manioc and other products be- can currently pose risks to the manager, the negative ex- Development (OECD). At the al production – and comparing pacts something more tan- them are increasingly growing tween the eucalyptus saplings competitiveness. ternalities should also be ac- same time, in order to keep it to investments in alternative Thanks to that extra volume gible, is a key step to manage- challenges faced in the busi- for the first year and a half af- counted for, and, in that case, track with the population and sources capable of avoiding the produced, the petrochemi- ment. Captured by the senior ness agenda. Especially for eco- ter the forest plantation. As a Concerning climate change, the reported as costs to customers industrial production growth, problem. cal company escaped harm- management radar, the pilot nomic sectors with broad pres- result, the value of the benefit externality was equally posi- and society as a whole, aiming volumes removed from nature less from the 2014 and 2015 experience results will support ence and interference in the reached BRL 9.9 million in 2016. tive. With 1 million hectares of at guiding choices and looking already account for three times In the company unit in Duque drought in the Southeastern re- investments and action plans territories. At Fibria, the world’s Out of the total, BRL 9.7 million forests, 374,000 of which sole- for solution strategies.

P22_ON natural capital october 2018 MEASURING THE VALUE

from alternative sources (such from helping to broaden the Development ervation of forests and soils, Initiative as reuse, desalination), reduc- view on natural capital, the pi- of Appraisal an aspect that encourages the ing the risk of watersheds from lot project, developed in 2017, Technologies for company to align its manage- X-Ray which water is collected. It can represents an important step Ecosystem Services ment strategies with the logic support other companies to ap- in any future discussions of the and Nature Capital of natural capital. The ecologi- praise the impact of their op- certification standards to which in Environmental cal corridor has restored an Economic Valuation erations water resources and the company is submitted to. Programs area equivalent to 1,200 soccer of the Water subsidize projects search that fields (1,200 ha), involving the Scarcity Scenario for alternative sources of wa- How it generates value for Proponent: CTG Brasil – large- planting of 2.4 million trees and in Brazilian ter. There is, therefore, a repli- the ecosystem and players scale private company from the providing a source of income Industrial cability factor. involved: Being restricted to hydro electrical sector for the communities involved. Plants externalities, the scope of this How it relates with other global study makes it possible to bet- Beginning date: May 2015 How it relates with other global Proponent: Braskem – large- initiatives: This is directly relat- ter distinguish the environ- initiatives: The initiative is asso- scale private company from the ed with all Sustainable Develo- mental impacts suffered by End date: December 2018 ciated with Sustainable Develop- petrochemical sector pment Goals, more specifically the company from the social ment Goals: 6 (Ensure availabili- goals 6 (Ensure access to wa- impacts caused by it. By mon- Place of realization: Pontal ty and sustainable management Development of Appraisal Technologies for Ecosystem Services and Nature Capital In Environmental Programs Beginning date: April 2017 ter and sanitation for all) and 14 etizing externalities, it allows do Paranapanema (São Paulo of water and sanitation for all), (Conserve and sustainably use impacts to be placed in a finan- State) – Ecological Corridor 13 (Take urgent action to com- ‘The numbers allow for rais- the fauna species that are living phibians, the technology quanti- End date: non applicable the oceans, seas and marine cial perspective that is aligned bat climate change and its im- ing the managers awareness again in the area after a forest fied forest biomass above the resources), as well as 17 (Re- with corporate planning and Approximated investment: R$ pacts), 15 (Protect, restore and in their decision making’, high- restoration project that planted soil and assessed the quality of Place of realization: Rio de Ja- vitalize the global partnership management practices. It is ex- 2,8 million promote sustainable use of lights Augusti. At Fibria, the 2.4 million trees to form a cor- water as a sign of successful neiro, Alagoas, Bahia for sustainable development). pected that liabilities, risks, and terrestrial ecosystems, sustain- variable started to be applied ridor of 7.4 miles (12 km) of At- recovery of the riparian forest It also relates with the Brazilian business opportunities related How it generates value for the ably manage forests, combat early during new project defini- lantic Forest. area. One of the greatest chal- Approximated investment: to Business Commitment to Water to environmental externalities company: The generation of desertification, and halt and tion, such as the recent change lenges was to design all vari- be defined Security by the Brazilian Busi- will gain visibility among execu- ecological data compatible with reverse land degradation and of the fleet used to transport Organized by IPÊ (Ecologic Re- ables in a representative way ness Council for Sustainable tives and investors who have natural capital valuation models halt biodiversity loss) and 17 timber, and now the company search Institute), the plantation for different environments in How it generates value for the Development (CEBDS), signed no technical knowledge of envi- allows for better management (Strengthen the means of im- is considering to use electrical connected strategic Conserva- a landscape scale of 40,000 company: By assessing the po- by the company. ronmental issues, thus having a of reforestation projects and, at plementation and revitalize the trucks, with zero emissions. tion Units to protect black lion hectares. tential impact of water scar- better chance of influencing the the same time, the volume and global partnership for sustain- By assessing the disposal of tamarins (Leontopithecus chry- city and subsequent compara- Externality company’s strategic planning. consistency of the data guaran- able development). sludge from the Jacarei (Sao sopygus) and other endangered The next step will be economic tive with the implementation Appraisal Pilot tee the legitimacy of the moni- Paulo state) plant in landfills, species native of the West of valuation to support future in- of a reuse project, Braskem is How it relates with other global toring process by the inspection the data collected about the im- Sao Paulo state, with impact vestments: ‘solving the financial able to assess which alterna- Proponent: Fibria – large-scale initiatives: This contributes di- agencies. The company expects pacts rose a question that had that has also been quantified in equation is critical to do more tive is most interesting under private company from the pulp rectly to the 2030 Agenda and that the ecological data col- never been asked before: what carbon capture, and the quality with less’, states Machado, economic bias. It enables the and paper sector target 6 of Sustainable Devel- lected, when applied to natural alternative will release less of soil and water. ‘It is an inno- planning to replicate the meth- knowledge of how much it opment Goal 12 (Responsible capital valuation models and greenhouse gases? vative development of reliable od to other neighboring areas would be willing to pay for an Beginning date: March 2017 Consumption and Production). ecosystem services, can indi- methodology as basis to assess to the plants operated by the alternative water source proj- Goals 2 (End hunger, achieve cate potential ecological and How to quantify the investment return on natural company in Brazil. ect to compensate for the im- End date: non applicable food security and improved nu- economic assets. Even though impact of restoration capital’, explains Aljan Mach- pact of lack of water in its op- trition and promote sustainable there are no official accounting ado, Environment Director at erations, as well as to identify Place of realization: Aracruz agriculture), 6 (Ensure availabil- methodologies for the incor- In order to manage, you must CTG Brasil, a power generation which “part” of the equation is (ES), Três Lagoas (MS) and Jac- ity and sustainable management poration of these assets in the take measurements. Biodiver- equipment provider with rev- most interesting to adopt risk areí (SP) branches. of water and sanitation for all), balance sheet and in the income sity is no exception. At Pontal enue of BRL 5.5 billion in 2017. reduction initiatives. Intangible 13 (Take urgent action to combat statement, CTG Brasil under- do Paranapanema, close to the benefits are also obtained, such Approximated investment: non climate change and its impacts) stands that with this project, a Ilha Solteira Hydroelectric Pow- ‘The result will also help legiti- as innovation through the valu- applicable and 14 (Conserve and sustain- new trend is being prepared. er Plant, the largest one in Sao mate our operations with over- ation of an ecosystem service ably use the oceans, seas and Paulo, sensitive equipment hid- seeing and control institutions’, and the approximation of the How it generates value for the marine resources for sustain- How it generates value for den in the forest do something adds the executive, according to sustainability of business deci- company: The quantification of able development). The work is the ecosystem and players unusual for an energy com- whom natural capital valuation sions. Ecosystem Services enables related with the TeSE initiative involved: CTG is closely de- pany; they capture the sound and monetization lack method- the management of natural by GVces in accordance with the pendent on water as a natural made by animals. The goal of ological standards worldwide. How it generates value for capital through actions that Paris Agreement the intended resource for power generation. the work, conducted at a dis- the ecosystem and players in- promote the improvement of Nationally Determined Contribu- Water, in turn, has its quality tance by an automated data- In addition to identifying ani- volved: The initiative will allow provision services and mitiga- tion (iNDC) and Natural Capital and availability directly related base, is to identify and quantify mals, especially birds and am- the company to obtain water tion of possible impacts. Apart ‘Protocol Application Program. to the conservation and pres-

P22_ON natural capital october 2018 Good for ecosystem, good for business by Magali Cabral

Claro and Fazenda Capivari, in Coffee beans are a demanding more. ‘We are really concerned, the civil society, representa- São Paulo Metropolitan Area). crop. To produce premium qual- because the Cerrado area in tives from farmers, businesses, / divulgação sabesp ity crops, a constant volume of Minas Gerais State is included in coffee certification agencies, In the foreword, Sabesp’s CEO, water is needed, and it must be those studies and we buy a huge governmental agencies (De- Jerson Kelman, admits that the well distributed, spanning from amount of coffee from them. partment of Water and Power severe water crisis in Sao Paulo 1,200 to 1,500 millimeters per There are growing risks; there- – DAEE, and the State Forest at that time made it clear how year. Although the Cerrado cli- fore, it makes a lot of sense to Institute – IEF), as well as the important it is to efficiently and mate is great for coffee bean conduct projects to address that local university, the Cerrado sustainably manage natural re- production, it is a sensitive bi- kind of challenge’, he states. University Center (Unicerp). sources in order to prevent fu- ome, overwhelmed in high-pro- ture climate adversities. ‘More duction regions. The scenario is In 2015, after Patrocínio and the The method to monitor risks than a duty, recovering and pre- not different in Patrocínio, in the neighboring region had gone and opportunities in ecosys- serving natural resources in the Triângulo Mineiro area, where through a prolonged Summer, tem services related to coffee green belt regions is a strategic Nespresso has suppliers. ‘Heavy when there was no rain at all farms was conceived in a part- guideline to ensure water is de- and quick showers are increas- for over 30 days, severely af- nership between Nespresso livered to over 28 million con- ingly more frequent and, when fecting the quantity and quality and the International Union for sumers,’ he stated. they fall on compacted soil, they of coffee, Nespresso, still under Conservation of Nature (IUCN) leach fertilizers and agrochemi- the impact of having to interrupt and, later on, with Ipê Institute, Somehow Nespresso adopts a cals, affect the production, the the season, supported the for- in charge of assessing techni- similar strategy with the pro- productivity and the quality of malization of the Cerrado Water cal and environmental metrics. gram ‘Water Cerrado Consor- the finished product’, as Guil- Consortium. It is a multisectoral ‘In meetings with all the stake- tium’. As Guilherme Amado, herme Amado, Nespresso green collaborative platform whose holders, we came up with a the company green coffee ex- coffee expert, explains. goal is to create ‘sustainable common vision that the water pert, explains, the goal of the productive landscapes’ in a pilot is the result of the landscape program is to ensure a future According to him, in many agri- area, in the Córrego Feio water- we build,’ states Amado. for coffee. ‘In the Cerrado area cultural areas in Patrocínio there shed, in Patrocínio. The model in Minas Gerais State (a region are no trees at all. Large-scale establishes that all farmers, The major focus of the actions known as ‘Triângulo Mineiro’), if agricultural production in the upstream or downstream, have is on conservation and rational you analyze the rainfall rates in Triangulo Mineiro area started to deploy production and con- use of water, which includes the past 10 years, you will no- in the 1970s, after successive servation best practices, in or- short-term actions (quality of tice that in seven years rainfall frosts destroyed coffee produc- der to ensure sustainable use of irrigation systems, rainwater volume was below the mean tion in the State of Paraná. Many local natural capital. harvesting, and management historical rainfall. This is a great farmers migrated to the region, of vegetation cover) and long- impact in a region of high tem- where the climate was good and The project is based on three term actions (reforestation, peratures, considering coffee lands were not so expensive, pillars: sustainable landscapes, isolation, enriching and natural production heavily relies on but not all of them treated the supply chains, and qualifica- regeneration of scattered na- water (about 60% of coffee ecosystem carefully when pre- tion. Under the sustainable tive vegetation). The project, Planting water production in the cerrado biome paring their croplands. ‘This af- landscape pillar, the strategy which involves 125 estates, is makes use of irrigation).” fected the climate and now ev- is to restore natural environ- funded by Nespresso and the eryone is paying a high price for ments to ensure the provision Critical Ecosystem Partnership Businesses find solutions for the current water insecurity by conserving and In 2015, the same drought that it’, says the expert. of ecosystem services. Under Fund; and Imaflora raised the restoring the natural landscape made the water in Sabesp sup- the supply chains pillar, the funds. The fund released US$ ply systems ‘evaporate’, also Add to this scenario the data Consortium aims at increas- 200,000 to partially deploy heavily hit the producers of the published by two climate studies ing the competitiveness levels the action plan and totally run very business uses water the companies selected in the Water Springs’; and Nespresso, for a supposed lack of position- most awarded Brazilian coffee concerning agriculture: the first by strengthening the regional a diagnosis. in its processes and sup- Natural Capital Business Man- a coffee business unit within the ing on water shortage-related beans. At that time, coffee pro- one, conducted by Embrapa in identity and adopting sustain- Eply chains. Some use more, agement call for cases present- Swiss multinational Nestlé, with environmental issues. The re- ducers had to stop collecting 2004, and the other conducted able production processes. The Meanwhile, the Cerrado Water some use less. Only very care- ed actions related to this theme. the program ‘Water Cerrado sponse to all the criticism came water, otherwise their irrigation by the University of Vermont third pillar is to offer qualifica- Consortium also plans to put less managers would not be Consortium’. in 2017, in the digital book Muito equipment would be embargoed (New England, USA), in 2018. tion by sharing information and into practice a payment for aware of the risk of water scar- Namely, Sabesp – a semipublic Além da Água (Way Beyond the by the state government. ‘Inter- Scenario modelling for different knowledge, as well as training environmental services (PES) city that clearly exists in some corporation that provides ser- During the worst water crisis Water). The goal of the publica- rupting the plant life cycle (by agricultural regions around the sessions on sustainable pro- financial mechanism. Currently, regions throughout the country. vices to 368 municipalities in in São Paulo, from December tion was to publicly announce suspending irrigation) causes world estimate that, if the plan- duction practices. Nespresso is working with con- Forest conservation and recov- São Paulo in water distribution, 2014 to the beginning of 2016, the ‘Green Belt for Water a decrease in productivity and et average temperature rises 4 sultants to valuate the service. ery have proved to be such an sewage collection and treat- Sabesp was criticized by many Springs’ program, which covers lower quality’, says Amando. degrees in the next 100 years, at That concept of ‘landscape- ‘When we figure out a value, we appealing solution to reduce ment – with the case ‘Green actors, not only for the way it the regions in the supply sys- least 90% of the current crop- based approach’ is the result will look for funders. But we do business water risk that two of Belt Program for Metropolitan managed the company, but also tem (Cantareira, Alto Cotia, Rio Coffee production lands will not be feasible any- of a co-creation that includes not want to create any expecta-

P22_ON natural capital october 2018 Good for ecosystem, good for business onsortium

the Sistema Cantareira scored initiatives: Ensuring availability implement good production and 70 (in a 0-100 range) in year and sustainable management conservation practices, in order

C C errado ater 2000, which indicates ‘good Initiative of water and sanitation for all to ensure a sustainable use of W quality’. During the 2010-2017 is Sustainable Goal Objective 6 local natural capital. The focus period, with an increase in veg- X-Ray (Ensure availability and sustain- on water is multiplied in actions etation cover around the dam, able management of water and such as good irrigation system, the index went up 10 points, sanitation for all) and one of rainwater harvesting and cover representing ‘great quality’, ac- Metropolitan priorities included in the com- crop management, as well as cording to Mara Ramos. Springs Green Belt pany’s environmental policy as reforestation, isolation, enrich- Program well as actions established in ment and natural regeneration In Brazil, it is a commonplace for its strategic planning. The “Met- actions taken on fragments sustainability to gain momen- Proponent: Sabesp – large- ropolitan Springs Green Belt of native vegetation. With this tum only when risks to busi- scale private company from the Program”, an action of forest it is possible to align all con- ness have already emerged. sanitation sector restoration at the beds of urban cepts, technology, training and Although scientific research springs, is insert in this context. engagement of the actors in- and the media have been broad- Beginning date: 2017 volved on the project’s success. casting climate change effects Water Cerrado for over a decade, many people End date: 2018 Consortium How it relates with other global still think seeing is believing. In initiatives: The initiative is as- 2015, the light turned yellow Place of realization: São Paulo Proponent: Nestlé – large-scale sociated with all Sustainable (or red, according to some peo- Metropolitan Area private company from the food Development Goals, more spe- tion, because we always make it maintaining the seedling nurs- ship with The Nature Conser- ple) to the effects of climate sector cifically goals 6 (Ensure avail- clear to farmers that they must ery to support the reforesta- vancy (TNC), The Ecologic Re- adversities, and made busi- Approximated investment: Eco- ability and sustainable manage- stand on their own feet.’ tion. ‘In the first action, the plan search Institute (Ipê), and with nesses, particularly those much system value to be calculated Beginning date: 2015 ment of water and sanitation is to conserve 35,000 hectares the public company Desenvolvi- dependent on water resources, for all), 15 (Protect, restore Drinking water of forest. We must monitor and mento Rodoviário S.A. (Dersa), give a more careful thought to How it generates value for the End date: non applicable and promote sustainable use oversee the area to avoid po- from Sao Paulo. This year, the their relationships with the eco- company: The initiative’ results of terrestrial ecosystems, sus- Apart from the dams wa- tential invasion. In the second nurseries have been managed systems. It was the year nature can be measured by the Water Place of realization: Bacia do tainably manage forests, com- ter mirror, Sabesp has about action, our goal is to expand the by Associação Mata Ciliar, who ‘spoke’ to those who can listen: Quality Index (IQA) of the En- Córrego Feio – Patrocínio (MG) bat desertification, and halt 35,000 hectares in Conserva- vegetation cover from 75% to promises to bring more agil- ‘Do you need me? So, help me vironmental Company of the and reverse land degradation tion Units, thus protecting the 78% in the Sistema Cantareira ity to the restoration projects help you’. State of São Paulo (Cetesb). In Approximated investment: non and halt biodiversity loss) and water springs in its four large unit by 2020,’ she tells. and expand its reach through 2000 the waters of the Cantar- applicable 17 (Strengthen the means of supply systems. Altogether, partnerships with local admin- eira System had an index of 70, implementation and revitalize the areas account for 1.4% of From over a hundred different istrations and other local insti- indicating “good” water quality. How it generates value for the the global partnership for sus- the Atlantic Forest remnants in tree species produced in Sa- tutions. During the period from 2010 to company: The water issue is tainable development) – with the State of Sao Paulo. Those besp’s nurseries, samples of 2017, the index rose 10 points, considered to be a central as- the Nature Capital Protocol and estates were purchased in the angico-branco (Anadenanthera This is not a mere environmen- and Cantareira waters present- pect of coffee production in the commitments assumed on the 1970’s and 1980’s to build the colubrina), inga-do-brejo (Inga tal initiative. Water is the core ed “excellent” quality. Cerrado Mineiro region, both in COP 21. It is also aligned with reservoirs and, according to Vera), tamboril (Enterolobium business of the company and, present and future scenarios. the Cerrado Manifest, to which Mara Ramos, Water Resources contortisiliquum), peroba-rosa by taking care of it, Sabesp gen- How it generates value for The project, which aims to cre- Nestlé is a signatory. Manager, 75% are covered with (Aspidosperma polyneuron) erates value to itself, increasing the ecosystem and players ate productive and sustainable the Atlantic Forest native veg- and cedro-rosa (Cedrela fissilis) water security and the qual- involved: Planting and main- landscapes, consolidates the etation. The areas that are still should be among the 350,000 ity of the water to be treated. taining forests stunts irregular vision of Nestlé’s shared cre- uncovered (25%) are located seedlings to be planted in the Green belts hinder irregular occupations, prevents litter, ation through the strengthening in the system of water springs next two years. invasions; prevent waste, pesti- pesticides and pesticides from of the coffee supply chain. A protection in Sistema Cantar- cides and agrochemicals from being carried into dams, reduc- higher climatic resilience con- eira, where there was a cattle In a 30-year period, the vegeta- being dragged into the dams; es the risk of floods, protects tributes to future coffee supply ranch in the past. tion cover in Sistema Cantareira reduce flood risk; protect biodi- biodiversity and contributes both in quantity and quality. jumped from 61% to 75% – versity; and improve the quality to ensuring water security for She explains that the Green Belt over 200 hectares were refor- of water. more than 20 million people in How it generates value for for Water Springs is based on ested. The uncovered areas left the Region Metropolitan of São the ecosystem and players in- three pillars: protecting the ar- (25%) currently account for According to Sabesp’s data, the Paulo. volved: Through the Cerrado eas around the four water shed about 1,500 hectares. Between Water Quality Index (IQA) of Consortium of Waters, all par- reservoirs; increasing the Can- 2007 and 2010, 1.4 million Sao Paulo State Environmental How it relates with other global ticipating producers are able to tareira vegetation cover; and trees were planted in partner- Company (Cetesb) for waters in

P22_ON natural capital october 2018 Production chain by Magali Cabral

atural resources consist ing something nobody wants about it: ‘Every single day, the

/ divulgação jaya casa of relevant capital to busi- and turning it into something city produces 6,300 tons of Nnesses, not only in their valuable seems like magic,’ he totally compostable organic operation, but also across the says. In fact, it is fascinating waste, which is systematically entire supply chain. To do busi- as magic to see the waste pro- discarded in landfills, account- ness as usual and just expect duced in the restaurant kitchen ing for the generation of 14% of a perfect operation of the pro- to be transformed into organic all greenhouse gases released cesses involved, from sourcing compound that will germinate in the municipality’. to disposal of products, may new food, which, very soon, will pose important risks and may be again in that same kitchen, At that point, the only possible even have a boomerang effect; where a new production jour- alternative would be to com- your company might eventually ney will start. post the organic waste at the have to pay the consequences same place it was produced. of that approach. Tuned to the When the Casa Jaya partners Either that or nothing. There challenge, many companies are launched their project, 10 years would be a loss in scale, but a incorporating into their business ago, enthusiastic about the idea gain in energy efficiency, since a careful look at other stages in of closing the loop in the organ- all activities would be concen- their product life cycle, wheth- ic input life cycle, they managed trated in the same place. The er to reduce operational and to gather a group of 12 vegetar- group transformed the small reputational risks, or to reduce ian and vegan restaurants in snack bar into a bistro. In addi- negative externalities caused the region willing to separate tion to delicious vegan dishes by their activities. and provide their waste for and a buffet with salads free composting. The composting of chemical fertilizers and ag- Three of them were selected would be produced on a ranch rochemicals, the kitchen pro- in the “Natural Capital Busi- on the outskirts of Sao Paulo, duces 46 kilos of food leftovers ness Management” call for and from there it would be (organic waste) daily, which are cases: Casa Jaya, a vegan res- sent to the vegetable gardens transported in pails to the cylin- taurant and ecocultural space, of small farmers in Sao Paulo ders lined up on a slab built on which has an unusual proposi- Metropolitan Region as part of the kitchen for that purpose. tion of composting their own the payment for organic greens organic waste associated to and vegetables provided to the The wet waste produced by the a pretty unique model of re- 12 restaurants, and so on and restaurant is weighed daily to verse logistics; AkzoNobel, a so forth. ‘Together, we would monitor the evolution of waste paints industry that has been create a consumption club of reduction, and then they add dry using reclaimed water in its la- restaurants closing that cycle plant debris (litter) provided by tex products and is gradually that I call, maybe incorrectly, Eletropaulo, through the Term eliminating solvent-based coats reverse logistics,’ he explains. of Pruning Waste Partnership. from glazes and varnishes; and ‘Composting in a controlled en- C&A, with the case of the basic Avanzo had just found his vironment, as well as in nature, cotton T-shirt designed to be dream business model. But he needs moist and dry nitrogen- recycled. was not aware it is forbidden to rich material for the perfect transport organic waste across balance’, teaches Avanzo. Every From your dish to your the city of Sao Paulo, except week, two cylinders are disas- dish through a company licensed by sembled, and the composting is the Municipal Authority of Ur- bagged and sent to small farm- The fascination felt by biolo- ban Cleaning (Amlurb). In other ers who are Casa Jaya suppli- gist Julio Avanzo Neto with the words, organic waste produced ers, keeping the organic mate- Virtuous cYcle transforming power of com- in Sao Paulo urban perimeter rial ‘reverse logistics’ model, as posting made Casa Jaya, located has necessarily to end its life initially planned. The greatest Companies show that a careful approach to natural capital during their product life at Rua Capote Valente, number cycle in landfills. Given such a project challenge is the lack of cycle also benefits business 305, in Pinheiros neighborhood, discouraging outcome, the first space, without which it is not Sao Paulo, more than just a episode of the Casa Jaya history possible to have more cylinders good restaurant and a space came to an end. and allow for longer processing for cultural events. He created time to the composting, which a new business model. ‘Tak- Julio Avanzo still feels indignant would add value to the product.

P22_ON natural capital october 2018 Production chain the reservation next to the A kzo N obel factory erial view of A

Water to paint come yellowish over time’, says Another important aspect not proper for drinking, but the from the Atlantic Forest, with ion industry produces 80 billion the corporate Sustainability co- concerns the cost of the new quality is good enough to manu- the goal to improve the qual- pieces of clothing annually, not One can understand that pro- ordinator, Flávia Yumi Takeuchi. paints. The sustainability coor- facture paint’, she describes. The ity of the water, avoid wild- to mention the informal mar- fessional painters keep using dinator explains that raw mate- plan is to produce latex paints fires (since the Atlantic Forest ket. The life cycle of most of glazes and varnishes in spite The goal of the ‘Water: Color rials for water-based products with reclaimed water. ‘So far, we is moister than eucalyptuses), that production is linear, going of the polluting volatile organic Essence’ project, by AkzoNo- are imported and are subject have a pilot project, and we are form a biological corridor, keep from cradle to grave. In other compounds released during bel, is to increasingly sell more to greater price volatility when waiting to cut through red tape a safe distance from neighbor- words, they are produced, sold, manufacturing. What if they water-based products, using compared to solvent-based to launch. But by 2020 all our ing communities and enhance used and reused until they are had access to a formula that less and less water resources. raw materials. ‘Additionally, last latex will be produced with re- the company reputation. discarded in landfills. Last year, replaces that solvent-based Despite of some resistance year, one of our suppliers was claimed water.’ C&A, one of the world’s top re- glazes and varnishes with wa- from consumers, by 2010 at heavily affected by Hurricane The three AkzoNobel projects tailers, broke that linear cycle, ter, ensuring a similar finishing least 20% of all lines of glazes Harvey, what raised their costs The initiative address is the Tan- have different drivers, but they launching in Europe, Mexico and effect and 45% less green- and varnishes will rely on this even further,’ she tells. gará Reserve, an estate of 70 converge in valuing water re- Brazil a T-shirt manufactured house gas emission? Do you feature, doubling the current hectares in the municipality of sources and are connected to with raw materials considered think they would change prod- volume. ‘Increasing the water- As the sustainability coordinator Mauá, Sao Paulo Metropolitan the strategy, since water is to be biological nutrients, cre- ucts? It is hard to know. But the based product portfolio will not explains, in order to enable the Region, where the AkzoNobel a fundamental raw material ated to be reused, recycled into Dutch multinational AkzoNobel, account for a higher consump- changes, a sewage treatment plant is located. All the water for the company. ‘We not only new products, or safely com- a leader in paints manufactur- tion of this natural resource, plant was built and it does more consumed by the company aim at reducing environmental posted. ing, is trying to convince profes- because we will be reusing than usual physical, chemical is sourced in that area, from impacts, but also rely on that sional painters and consumers the wastewater treated in our and biological treatment. ‘We springs or zones where the ar- resource to produce paints’, It is a Cradle to Cradle (C2C) using the following argument: treatment plant. By 2020, all have installed an ultrafiltration tesian wells are refilled to sup- states Takeuchi. Certified Gold T-shirt, and the ‘the new products are more the treated water will be reused membrane, with such small ply water for industrial produc- certification ensures circularity. beneficial to the environment, in the manufacturing facilities pores that virus and bacteria tion. The eucalyptuses growing Compostable t-shirt In addition to having a noble end they dry quickly, they have no and in the products,’ informs cannot go through it. Only salt in the reserve have been gradu- of life, the product is manufac- smell at all, and they do not be- Takeuchi. can go through it. The water is ally replaced with native trees Estimates say the global fash- tured with organic cotton (free

P22_ON natural capital october 2018 Production chain T-shirt to compost once it’s food, has already saved more Water: color to the treatment of effluents discarded. Composting can sig- than 10% of the monthly cost essence from the company, returns su- of fertilizers and pesticides); the cal products; alternatives for Initiative nificantly reduce the volume of of raw materials, particularly perior quality water to the en- dyes and inks used are safe to elastane fabric; antimony-free organic waste, while the pro- vegetables and vegetables. The Proponent: AkzoNobel – vironment due to the fact that, the soil and to the health of the polyester and recycled poly- X-Ray duced composite can be used produced composite returns to large-scale private company in addition to the conventional employees involved in the dying ester; more certified buttons, in agriculture. Cradle-to-Cradle the producer association, which from the chemical sector physical-chemical and biologi- process; the energy consumed zippers, rivets and finishing ma- certification, which is the only in turn significantly reduces the cal processes, it has an ultrafil- in manufacturing is renewable terials. The company also said Designed to be one performed by third parties, monthly cost of agricultural in- Beginning date: 2017 tration membrane that retains and offsets carbon emissions; that, to move towards sustain- recycled can certify circular products, puts and obtains image gain. even viruses and bacteria. One the water used in the produc- able fashion, it is promoting the attests the source of the raw End date: 2020 of AkzoNobel’s main impacts is tion process is treated before Good Fashion Guide, by Fashion Proponent: C&A – large-scale materials, chemicals, water or How it generates value for the emission of volatile organic returning to the environment; for Good, which will help sup- private company from the re- energy used in manufacturing, the ecosystem and players Place of realization: Mauá (SP) compounds, which accounts for and people involved in the pliers willing to develop Cradle- tail sector material reuse and social condi- involved: In the first phase of more than 20% of its carbon clothing manufacturing comply to-CradleTM certified products. tions in the chain value. the system’s implementation, How it generates value for footprint. Thus, the company with legal norms in their corre- Beginning date: September about 1.5 tons of composite is the company: Aiming to sell encourages the use of water sponding countries. Regarding goals to incorporate 2017 How it relates with other global produced monthly. This repre- more water-based products, based products, which generate more sustainable practices initiatives: Aligned with the ODS sents a reduction of 1.3 tons promoting reuse actions, and 90% lower emissions. In an interview by email, with- into the fashion supply chain, End date: non applicable 12 on Sustainable Production of organic kitchen waste and 3 conserving an area of the out identifying a speaker, C&A the company said it created a and Consumption, the initiative cubic meters of plant litter and Atlantic Forest, the initiative How it relates with other glob- informed that until now over 1.3 Global Sustainability Platform Place of realization: Europe, is found at the center of the pruning by Eletropaulo, vol- generates intangible values, al initiatives: The initiative is million pieces were introduced in 2015, with goals to be met Brazil and Mexico company’s global sustainabil- umes that would be destined to which, although not yet cal- aligned with Sustainable Devel- into the market and the prod- by 2020, based on three pillars: ity strategy, also including the landfill sites. By handling this culated, recognize water as opment Goal 6 (Ensure avail- uct was very welcomed. ‘The sustainable products, sustain- Approximated investment: non work on a clean environment waste in its own space, Casa an essential raw material for ability and sustainable manage- demand for a more sustainable able supply chain, and sustain- applicable in its supply chain. The com- Jaya adds value to this mate- the company. The dependence ment of water and sanitation production is a reality in this in- able lives. It also announced pany’s vision is to be part of a rial and returns it to its farm- of water resources causes for all), 9 (Build resilient infra- dustry. Consumers are increas- that soon there will be more How it generates value for the restorative circular economy ers and other urban farmers. actions to be developed for structure, promote inclusive ingly aware of the social and launches aligned with the circu- company: Through this initia- upon which nothing is wasted The initiative tightens bonds the origin, manufacture and and sustainable industrialization environmental impacts, they lar economy concepts. tive, unprecedented in the fash- while making or discarding the and promotes cocreative rela- sale of consumers products. and foster innovation), 11 (Make demand it from businesses ion sector, the company stands clothes. tionships with suppliers, espe- With the reusage of water, cities and human settlements in this industry, and they stay By looking beyond their own out for innovation. Product cially with producers of organ- the dependence of extraction inclusive, safe, resilient and tuned to our initiatives,’ they in- ‘walls’, Casa Jaya, AkzoNobel development brings together Organic Residue ic fruits and vegetables. This and generation of effluents is sustainable) and 15 (Protect, re- formed. and C&A have been promoting partners who together contrib- Composting and reduces the costs for those reduced, reducing treatment store and promote sustainable a positive impact on the eco- ute to the circular economy, Reverse Logic involved and creates ecological costs - which should be liqui- use of terrestrial ecosystems, Here in Brazil the pieces de- system and on business actors reducing negative impact of awareness and new models of dated until 2020. The com- sustainably manage forests, buted in September 2017 and that have not realized yet that the industry. Given the fact that Proponent: Casa Jaya – small- business relationships. The ini- pany’s strategy is to lead the combat desertification, and halt were available in 30 brick and without circularity there will be the item certification process scale private company from the tiative also helps to strengthen transformation movement of and reverse land degradation mortar stores, as well as via no continuity. demands changes in produc- food and sustainability sectors the urban agriculture move- consumers and painters and and halt biodiversity loss). e-commerce. Consumers were tion systems and techniques ment in São Paulo and, with the intends to establish itself as a very responsive to the initiative, improvement, the legacy is Beginning date: March 2011 separation of waste, facilitates brand of solutions that brings which encouraged the com- extended to the supplier, who the sorting and collection of more benefits to both the en- pany to repeat the launching in can empower the acquired ex- End date: non applicable recyclables by the collectors’ vironment and consumers. April this year, along with the pertise and adopt more sustain- cooperative. #WearTheChange movement, able production techniques. By Place of realization: Rua Capote How it generates value for the umbrella term for sustain- sharing their learnings across Valente, 305, São Paulo (SP) How it relates with other glob- the ecosystem and players in- ability communication in C&A. the value chain, the company al initiatives: The policy is in volved: The Tangará Reserve, understands that value genera- Approximated investment: agreement with the 2012 Solid maintained by the company The company listed its great- tion is for the entire industry. R$ 10 thousand Residues National Policy and and from which it extracts est challenges to make the C2C recommendations of the 2014 water for its productive pro- certification more comprehen- How it generates value for How it generates value for the Solid Residues Management cesses, accounts for almost sive within its production line, the ecosystem and players company: For the restaurant, Policy. Another landmark to be 10% of Mauá’s green area. In and those challenges have been involved: Cradle-to-Cradle™ the ecologically appropriate considered of great importance 2015, it was confirmed that addressed in partnership with T-shirts are made from more management of waste gener- to Casa Jaya is the “Compost- the Atlantic Forest of the re- Fashion For Good (an institu- sustainable cotton, with safe ates purpose for the project ing in the city of São Paulo” serve, which contained euca- tion that encourages compli- materials and chemicals and and value for the image. It also Seminar, held in 2014, and the lyptus, is regenerating. About ance with best practices in the are produced in a socially and incites a reflection from the Six Goals of Composting devel- 2 thousand children have fashion world). The fashion in- environmentally responsible team, suppliers and customers. oped in 2017 – being inspires by visited Reserves in environ- dustry lacks a larger offer of manner. The dyeing is 100% Various waste reduction prac- the Sustainable Development mental education programs. certified dyes, inks and chemi- non-toxic, which allows the tices, such as the full usage of Goals. The Reviver Station, dedicated

P22_ON natural capital october 2018 INNOVATION IN AGRICULTURE by Amália Safatle / divulgação cargil

Chain reaction Agribusiness companies bet on programs to strengthen rural farmers sustainability attributes

griculture relies on the practices and inspiring other cal manufacturer, and Cargill, According to Renata Nogueira, 57 are multinational companies, Counting with an approximate zoning rural properties – agri- planted 1.12 million tree seed- right balance of water, players in the industry and ac- known for selling soybeans, Cargill Sustainability Manager, 16 are groups representing in- investment of BRL 7 million up cultural areas, Areas of Perma- lings along the shorelines of wa- Afertile soil, climate, bio- tors in their corresponding sup- whose cultivation may be seen the company is interested in soy digenous communities, and 58 to the moment, the Mata Viva nent Preservation (APP), and ter springs and bodies of water. diversity and pollination; it is ply chains. as a threat to biomes such as supply chain providers adopting are non-governmental organiza- (Living Forest) project was Legal Reserves – with specific closely linked to goods and the Cerrado and the Amazon best practices, to meet the de- tions. Learn about its 10 goals. launched 32 years ago, with the norms for land use and occupa- But how does it benefit Basf? As services provided by nature. Whereas Basf shares forest Forest. Is there any contradic- mand of European consumers, purpose of recovering riparian tion. It also establishes financial a great portion of the crop pro- Therefore, it is quite obvious restoration knowledge and tion between the selected prop- who demand certified products. ‘It is not just about selling forests in Basf manufacturing mechanisms that go beyond duction in the country depends that farmers must conserve techniques with its customers, ositions and the core activity of Additionally, by signing the New the product’ plant area, in Guaratinguetá command and control, such as on funding, and compliance with the natural capital basis if they and provides environmental the companies? York Declaration on Forests, (Sao Paulo), on a piece of land credit restriction to farmers environmental laws is a manda- are willing to keep their activi- education services in the re- in 2014, the company made a Through a program called Mata overlooking the Paraíba do Sul who do not comply with the tory step to get certifications ties profitable over time. gions where it operates, Cargill ‘If farmers do not properly commitment to prevent defor- Viva (Living Forest) Restoration River that used to be pasture- Code. ‘In the beginning, there that will allow for competitive encourages farmers to adopt in manage the ecology in their es- estation across its entire agri- and Environmental Education, land at that time. In 2008, after was a boom of adherence to differentiators to trade agricul- Although this mindset is not their estates a certification pro- tate, taking care of fauna and cultural supply chain by 2030 Basf’s selected case, custom- the successful initiative, which the program, aiming at Code tural products, the company predominant in the entire rural gram that is more accessible flora, conserving the riparian worldwide. ers who reach a certain volume recovered local biodiversity, compliance, but we still have considers rural property envi- sector, where production prac- to all farmers, aiming at de- forest areas, and applying prod- in purchase may use services protected the soil and the water customers who are interested ronmental regularization a criti- tices that harm the natural cap- forestation control, employee ucts exactly as they must be New York Declaration on For- such as guidelines to restore body in that area, the company in it’, says Graziano. cal step to ensure agricultural ital still persist, some innovative welfare, and carbon emission applied, they lose productivity’, ests is a voluntary international Areas of Permanent Preserva- decided to provide this service production – which directly af- initiatives, with sustainability at- management. answers Emiliano Graziano da declaration to prevent global tion (APP) in their rural prop- to its customers, who need to Up to the moment, the program fects its business associated tributes, are noteworthy. Car- Silva, Sustainability Manager at deforestation. It was firstly en- erties. (Among other services adjust to the New Forest Code. has supported 27 customers, with the sale of products. gill and Basf, for instance, were Readers may ask themselves Basf for South America. ‘And, dorsed during the U.N. Climate provided to the company’s among cooperatives and agri- selected in the Natural Capital how consistent those projects without using crop protection Summit, in September 2014. It most loyal customers, are: The New Forest Code, approved cultural companies, in 153 mu- Additionally, Basf says the ag- Business Management call for are, since they come from two correctly, the agricultural pro- has 191 signatory nations, out of estate management, soil and in 2012 by Law # 12,561, up- nicipalities located in 9 different ricultural activity is inherently cases to present projects ca- agribusiness multinationals duction is not efficient and com- which 40 are governments, 20 leaching analysis etc.) dated the legislation, which Brazilian states, and restored associated with agricultural pable of disseminating those – namely, Basf, an agrochemi- petitive’. are subnational governments, dated back to 1965. It proposes about 702 hectares, having best practices and to natural

P22_ON natural capital october 2018 INNOVATION IN AGRICULTURE of good agricultural practices. velopment in the agribusiness gram relates with some of So far more than 152 thousand chain by providing the clients’ the Sustainable Development Initiative hectares of soybean produc- (rural producers) adequacy to Goals, particularly 13 (Take ur- tion are distributed amongst the Forest Code, gaining repu- gent action to combat climate P rogram V iva M ata X-Ray 165 properties. With the proj- tation and image, spontaneous change and its impacts) and 15 ect, there was an increase in publications in the media, good (Protect, restore and promote the program’s indexes for three business relationships and part- sustainable use of terrestrial Solutions for general themes of sustainability nerships. Through the initiative, ecosystems, sustainably man- Sustainable (environmental, social and pro- the company improves its re- age forests, combat deserti- Supplies – ductive), going from 43.60% to lationship with public agencies, fication, and halt and reverse Program 3S 51.37% in the environmental, obtains recognition from the land degradation and halt biodi- 47.48% to 52.56% in the social general public –which allows versity loss). Proponent: Cargill – large-scale and 49.48% to 54.81% non- social license to operate –, dis- private company from the agri- productive. The environmental seminates the concept of sus- cultural sector improvement of the properties tainable development for differ- includes correct management of ent audiences. Beginning date: 2010 soil and water, less usage of toxic pesticides, and care with waste How it generates value for End date: non applicable disposal, waste generation and the ecosystem and players in- environmental pollution. volved: Up until now, the Mata Place of realization: Brazil Viva Program has restored resource conservation. Accord- want to be on the farmers’ side, have their carbon emissions According to the company, even How it relates with other global 702 hectares with the planting ing to the company, water and so they are competitive and managed. A product carrying though farmers realize 3S label Approximated investment: initiatives: The company took of more than 1.12 million na- soil are vital ‘inputs’ to ensure sustainable. By achieving opti- the 3S label – Liza Origens soy- contributes to better manage R$ 250 million/year on the commitment of put- tive tree seedlings. As a result, sustainability and longevity for mum levels, farmers will make bean oil – has been available for the property and make it stron- ting an end to deforestation on it promoted improvements in agricultural activities; thus, pro- better use of the technology I end consumers in some Brazil- ger by adopting sustainability How it generates value for the all agricultural supply chains ecosystem services by act- tecting water springs and other offer. It is not just about selling ian supermarkets since March attributes, customers need to company: The initiative serves worldwide until 2030 by signing ing on the protection of water bodies of water is key to main- the product and end of story’, this year. acknowledge the value of the the goal of promoting a style of the New York Declaration for bodies, soil and biodiversity. In tain and recover that natural he argues. initiative, so as to allow a return production that respects people, Forest in 2014. The program is the forest restoration actions, capital. A critical element of the initia- of those investments to farm- the environment and ensures also aligned with the European the greatest number of native A more accessible gateway tive, which has a structuring ers. Otherwise, the program healthy food around the world Feed Manufactor’s Federation species is used, aiming the re- When questioned if, by con- nature – i.e.; it is not isolated will not be financially feasible. - as Cargill wants to be recog- (Fefac) sustainability guideline establishment of biodiversity. tributing to recover native for- The search for continuous im- – is its high potential for rep- nized as a trustworthy source as well as the RED European Surveys were conducted to ests – which naturally help in provement in rural properties is lication, even to other crops, Cargill has been investing in 3S for products and services with Normative for biofuels. know the diversity of bird and biological control –, this would also one of the goals of Cargill, such as corn, vegetables, fruit. label for 7 years, and up to now sustainable attributes. The 3S bee species in areas restored decrease the company chemi- who launched the Solutions for But, as Renata Nogueira ex- it got adhesion of 200 produc- Program aims to generate ben- Mata Viva by the program, and an expres- cal products sale, Graziano Sustainable Supplies program plains, there are still signifi- ers from the states of Goiás, efits to all those involved in the (Living Forest) sive number of both groups replied there is no contradic- – 3S Program. It is a program cant challenges. The major one Paraná, Mato Grosso and Pará, soybean production chain. For Environmental was noted. tion between one thing and the that is more accessible to ru- is engaging rural producers, summing up 152,000 hectares the consumer, it ensures that Education and other: ‘Our moto is, ‘we create ral producers, who often find who do not immediately real- - out of a total of 6,000 produc- the product being purchased Restoration The company requires coun- chemicals for a sustainable it challenging to comply with ize the benefits of having the ers in its supply chain. For that is free from deforestation and Program terparts from rural producers future’. We are investing to re- more sophisticated systems label. ‘This happens because, purpose, it relied on partner- meets requirements of good ag- that participate in the program, duce the use of crop protection used for soy certification. By although international buyers ships: BioSistemico Institute (IBS) ricultural practices, well-being Proponent: Basf – large-scale such as supporting and carry- as much as possible, because offering a more simplified sys- are interested in products with offers technical assistance, and of the rural worker, is traceable private company from the ing out small interventions in it is not the reason why Basf tem, Cargill hopes the program sustainability attributes, they the property carbon emissions and its greenhouse gas emis- chemical sector seedlings as directed by the is in the industry’, he declares. will be able to change the soy are not willing to pay more for are calculated by Espaço Eco sions are managed, meeting the Espaço Eco Foundation team. As an example, he refers to the supply chain, making it more them’, states the manager. Foundation, owned by Basf. main demands of the market for Beginning date: 1984 This brings forth he commit- investments made in the past and more sustainable. certified products. ment of the participant so that few years in start-up programs, Thus, the costs to implement To expand the program – in the End date: non applicable the restoration actions can be highlighting applications that According to the company, the the label have been totally cov- 2018/2019 crop, the goal is to How it generates value for the successful. In addition, for a cli- use drones. According to Gra- plan is to generate benefits to ered by Cargill, who invests extend it to Mato Grosso do Sul ecosystem and players involved: Place of realization: Brazil ent to join the program, meet- ziano, that technology offers all people involved in soy sup- BRL 250,000 per year on the state – the company bets on Through the program, the com- ings are held to raise aware- higher precision, demanding a ply chain, assuring consumers program. There are four stages new partners, such as financial pany understands that it will Approximated investment: R$ 7 ness of the importance of the reduced amount of crop pro- the products purchased are involved in 3S implementation: institutions and companies that be able to transform the soy million commitment of all stakehold- tection at specific spots, so it is deforestation-free and comply sensitization of farmers, prop- sell agricultural inputs. Trans- production chain and make it in- ers involved. only applied to sick plants. with agricultural best practices, erty diagnosis, elaboration of an forming the soy chain in Brazil is creasingly less impacting, with How it generates value for respect the well-being of rural individual action plan, and con- a task that will demand engage- deforestation control, worker the company: The program How it relates with other global ‘I want longevity, not quantity. I employees, are traceable, and tinuous improvement actions. ment of a variety of actors. well-being and encouragement contributes to sustainable de- initiatives: The Mata Viva Pro-

P22_ON natural capital october 2018 Fruits of the forest by Sérgio Adeodato / divulgação inocas Money that grows on trees

Nature physical or intangible assets provide good money, showing that every seedling may be worth it and make a difference

ew models of sustainable since they are associated with cess 110 lb (50 kilos) per hour in centers, aiming at overcoming and economic use of biodi- deforestation and excessive use order to encourage production scientific barriers, convincing Nversity may generate rev- of agrochemicals. Then, after a and demonstrate the capacity about the plant potential, and enue in larger scale and become lot of research, the European of the natural input as raw ma- replicating the results in the competitive when compared to team found in Brazil a promis- terial for different industries. field. Take, for instance, a tech- activities that cause deforesta- ing native palm: macaúba (Ac- nical challenge that was over- tion, enabling conservation of rocomia aculeata). ‘If half of the current pasture- come in the last decade, solv- natural resources and bringing lands in the Cerrado had macaú- ing the difficulty to break the benefits to the planet. In many ‘But the attention was drawn ba planted there, the volume of seeds strong dormancy, which cases, practices adopt the agro- to the potential of nobler ap- oil would probably be higher hindered the feasibility of com- forestry concept, through a con- plications, of greater value than the volume obtained from mercial plantation. According sortium between native forest and scale, such as the food palm to use in most industrial- to Zimpel, they are currently and commercial species that and cosmetics industry’, tells ized food worldwide’, estimates looking for efficiency in fruit the oil to propel aircraft, which economic use’, explains the en- farm tested different types of volves 17,000 small farmers, diversify production. Johannes Zimpel, Director at Zimpel, thinking of the positive processing, to obtain raw mate- was the possibility that first trepreneur Edwin Montenegro, macadamia gardens; one con- each one with the possibility to Inovas, a company based in social impact. Combining palm rial compliant with the require- boosted the research, became who bet on the flavor and start- taining only plants of that spe- achieve an annual revenue of In Patos de Minas (state of Pato de Minas (state of Minas with pastureland to get differ- ments of the cosmetics indus- a low priority. Maybe one day ed growing it in his family cen- cies, another one integrated to BRL 40,000-50,000 per hect- Minas Gerais), a seed was plant- Gerais), member of the early ent sources of revenue, the try, which is the one that pays the plan will gain momentum tenary sugarcane estate in the a coffee plantation, and a third are after 12 years, when the ed, seven years ago, driven by prospection efforts. Among revenue of beef cattle or dairy higher prices for the product. again, considering the goal of municipality of Bocaina (State one associated with the native gardens are considered mature. the demand of the German other advantages, the plant was cattle farming could double to the aerospace industry to zero of São Paulo) as an economic forest. ‘The goal is to help pro- Subtracting production costs, aviation industry for biofuel largely available in the national BRL 1,000 (the current average Once explored to produce oil its emissions by 2027. ‘A plant alternative to reduce the risks duction planning in 16 munici- half of that amount goes to research in order to propel air- territory, presented high yields is BRL 500.00 per hectare in for street lighting at a time that was forgotten is now be- of the sugar and alcohol crisis palities throughout the region, families as profit. Unlike tim- craft as an alternative option of vegetable oil, and could grow the region). In addition to adding there was no electric power, ing rediscovered as a source of in 2005. identifying areas in the proper- ber species, cut down for com- for conventional petroleum- in harmony with pasturelands. biodiversity, the trees help to macaúba (Acrocomia aculeate), raw material, target of compe- ties with steep slopes and large mercial purposes, macadamia based fuel. The strategy was provide shade to the pasture- also known as bocaiuva, feeds tition between huge industries’, Successful, he founded Arroba environmental liabilities that yields all year long because the a response to the pressure to After studies of financial feasi- land, improving cattle thermal native fauna species, such as states the businessman. Sustentabilidade, a business could receive the almond trees’, trees are standing. According to reduce carbon emissions. Chal- bility were conducted for har- comfort, which provides for macaws, cotias (Daisyproctas), that does more than process- reveals Montenegro, who pre- data provided by the company, lenged, scientists coordinated vesting 300 tons of the fruit in productivity gains. Also, they capybaras, tapirs and rheas Almonds combine profit ing and selling the nut in the pared seedling nurseries to profitability of the species per by Leuphana University, Lower pasturelands and planting the avoid erosion on the hills, at- americanas. Featuring lots of and conservation market. The idea is to build a supply to neighbors. Out of the hectare is higher than soy, corn Saxony, Germany, travelled palm in areas of family farming, tract wild fauna and capture thorns, the tree has been elimi- relationship between entrepre- 650,000 hectares mapped for and coffee, and twice as much around the world looking for the goal was to achieve 2,000 carbon from the atmosphere. nated from the landscape over In São Paulo, a novelty that neurs and rural farmers who the project, 94,000 are avail- as sugarcane. vegetable oils capable of fea- hectares, and 100 small farm- the years, as it was not useful diversifies production on the desire to be in line with the envi- able for the new crop, and sibly and safely supplying the ers to process 8.5 tons per Twenty rural properties, sum- to the population anymore. farms is an Australian nut, ronment, adopting a productive 24,000 correspond to areas re- The business proposition is new market. Palm (dendê) and hour. As a pilot project, a small ming up 150 hectares, joined much appreciated in gastron- strategy for land use, using the quired by law to have their na- mainly to value and empower soy were considered as poten- plant installed in the rural com- the project in 2018, in partner- Currently, a new perspective omy: macadamia. ‘The species agroforestry concept. tive vegetation restored. environmental-driven rural la- tial fuel sources, but lost points munity of Carmo do Paranaíba ship with Campinas Agronomic emerges, based on the demand can grow in the native forest bor, which includes the creation in the sustainability criterion, (Minas Gerais) started to pro- Institute and other research for food and cosmetics. Using for restoration purposes with As a lab for innovation, the old That potential demand in- of agroforestry mosaic models

P22_ON natural capital october 2018 frutos da terra the supply of raw materials for Beginning date: 2017 Guided Tour of Dona vironmental preservation of the the pharmaceutical, chemical, Nena’s chocolate area and also provides custom- to recompose the Legal Reser- Nena’, made her living harvest- including a 20-minute shuttle Initiative energy and cosmetic industries; End date: 2045 factory ers with a class of sustainability ve, in which macadamia, an exot- ing native cocoa, rudimentarily on board of a traditional boat food for native wildlife, cattle and and valuation of the businesses ic plant, is combined with native processed for sale to middlemen from Belem to the island, at the X-Ray humans; water and local climate Place of realization: Bocaina Proponent: Filha do Combu – made by the Amazonians and for species, also in the perspective at very low prices. As in most of Guajará Bay, and a trail amid regulation; seizure of 600 thou- (SP) small-scale private company the benefit of this population. of gains with carbon stock. ‘We the Amazon, life as a hostage of the cocoa trees in the lowland sand tons of CO²; prevention of from the artisanal food sector adopt the new process agri- merchants who buy forest prod- forest. The activity shows the Macaúba Project: erosion and maintenance of soil Approximated investment: R$ 3 How it relates with other glob- culture approach, rather than ucts would be doomed to never potential of a business model extractivism fertility; indirect reduction of de- million Beginning date: July 2017 al initiatives: The initiative is the inputs approach, using less change, if it were not for an idea based on the cocoa production and planting of forestation of tropical forests; aligned with the idea of sustain- manure and crop protection’, ex- that came up when local women environment – in other words, macaúba trees in among others. The project sup- How it generates value for the End date: non applicable able growth, combining envi- plains the entrepreneur. tried, not very successfully, to based both on provision and on the silvipastoril ports the extractivists, through company: The value is generat- ronmental, social and economic make money selling biojewelry cultural ecosystem services. On system the training in good practices and ed by the business model with Place of realization: Combu Is- dimensions, and can inspire new On the farms, macadamia goes made of seeds at a street fair in the way, they show the biome access to public policies, such as consortium of exotic and native land, Belém (PA) initiatives on the Island of Com- through machines to have the the capital. where cocoa grows, and dozens Proponent: Inocas – small- the Minimum Price Guarantee species that promote sustain- bu itself, in terms of the devel- fibrous outer husk bark re- of other tree species respon- scale private company from Policy and the Social Fuel Seal, ability and fulfill a positive so- Approximated investment: not opment of businesses based on moved, then it is dried and cold- As there were many stands sible for keeping balance in this the agricultural sector in addition to guaranteeing the cial and environmental function, estimated the maintenance of the standing stored, targeted at buyers of selling the same products, they environmental protection area. purchase of the fruits collected. regularizing rural properties forest. different profiles. In addition needed to think of something Beginning date: July 2015 For the small farmers of the according to the Forest Code How it generates value for the to being consumed as a snack, different, and the group thought Attractions include visitation to planting, the payment of a com- and offering an agroforestry company: The client becomes almonds are the base of many that family recipes might be the chocolate production area, End date: non applicable pensatory fee is guaranteed by alternative of healthy and nutri- more willing to pay for the prod- types of food, such as granola, the solution. That is when Dona degustation of ‘brigadeiro’ (a the temporary suspension of the tious food. The main return to ucts and tourist experience as he flour and olive oil. In the cos- Nena remembered when her traditional Brazilian dessert Place of realization: Patos de pastoral activities, as well as the the companies involved is the becomes more informed about metics industry, it can fight free mother made homemade choc- made of condensed milk, cocoa Minas (MG) purchase of the fruits. local supply of raw material for the origin, peculiarities and chal- radicals and rejuvenate the skin, olate, manually ground and powder and butter) and, finally, the processing industry. From lenges involved in the production so it is used in soaps, shampoos wrapped in the cocoa leaf, like a shopping in the store. With 300 Approximated investment: How it relates with other global a single native species, such as of organic chocolate in the mid- and exfoliating products. mini ‘pamonha’ (a Brazilian rec- tourists per month on average, R$ 6 million (R$ 24 million initiatives: The project is aligned macaúba, can be extracted oil, dle of the Amazon rainforest. In ipe made of grated sweet corn from January to June 2018, the exchange of the end of Sep- with the UN 2030 Agenda, spe- pulp, food, cosmetics, aviation addition, word of mouth is lever- In Montenegro’s opinion, ‘it is a wrapped in corn husk). They soon revenue was BRL 36,000 from tember) cially with Sustainable Deve- fuel, noble oils, biomass, organ- aged. About 55% From obtained promising market, considering found a way to remove sugar guided tour activities. Out of lopment Goal 2, through the ic matter. The initiative also gen- profit is immediately returned to the country’s production is still and make the product go into the that sum, about 55% are im- How it generates value for promotion of sustainable agri- erates jobs in the production Dona Nena for the payment of small’. With ten nut processing organic trend and healthy diet. mediately set apart for Dona the company: Given the fact culture linked to the rural de- chain, leads to the acquisition of food services and visitation fee. plants in operation, Brazil pro- Thus, it became famous at the Nena, to pay for food services that the project is the com- velopment of the less favored new machines and equipment The remaining 45% compensate duces 1,100 tons per year, where- street fair. There was media cov- and tour tickets. The remaining pany’s own business, it gen- of the countryside; 7, through and to the increase in activities other partners such as guides, as in South Africa and Australia erage and, consequently, more 45% are used to compensate erates value by itself. In ad- the allocation of macaúba oil related to the food, export and boatmen and the management the volume is almost 12 times popularity, until the entrepreneur other partners: tour guides, dition to being economically for the production of biofu- services trade. structure and tour planning. In greater. Worldwide, the macada- decided, in 2011, to formalize the boatmen, and the tour manage- attractive to investors, the els; 9, through the creation of addition to these values that mia market doubled in the past business, named ‘Filha do Com- ment and planning team. Macaúba Project aligns Ino- pioneering and sustainable in- How it generates value for the only enter through payment of 10 years, with 52,000 tons in bu’ (Daughter of Combu). cas and its commercial part- dustry of macaúba and its by- ecosystem and players involved: visits, the average ticket related 2017, but the product accounted As a consequence, a creative ners with fundamental values products; 12, due to sustain- The change of the local land- to consumption in the Casa do for only 1% of total nut and al- ‘The model was expanded and economy group was created, of human rights (increased able management and efficient scape with the introduction of Chocolate store increased con- mond consumption, according to added more value to the for- focused on recovering the cul- income and access to public use of natural resources; 13 productive fruit forests, instead siderably with the activity of data from the International Nut est’, explains Mario Cesar Carv- ture of ‘caboclos’ (people of policies by family farmers), through actions to combat cli- occupied by the monoculture of guided tours. and Dried Fruit Council Founda- alho, then the brand consultant. mixed Indigenous Brazilian and sustainable agriculture (in- mate change and its impacts; sugar cane, allows the creation tion. The United States and China After designing the packages, European ancestry). ‘The plan tensification and diversifica- and 15 through sustainable for- of natural barriers of wind, the How it generates value for the are the main importers. which conveyed an identity to is to expand learning with cocoa tion of production, microcli- est management. reduction of pests and the de- ecosystem and players involved: the project, she started coordi- for gains in other activities, such mate of pasture, prevention crease in the use of agrochemi- The growth of organic cacao is Guided tours to the choco- nating a well-organized struc- as the harvest of açaí berries of erosion) and environment Restoration of cals, besides improving the cli- only possible in a balanced biome. late factory ture that now provides different and the production of basketry (carbon hijacking, habitat Legal Reserve mate and the temperature of the The preservation of the Environ- revenue sources to the locality. and flour, creating a kind of out- guarantee for native species, and adequacy region. mental Protection Area in which When it comes to food produced door museum to exhibit the riv- reduction of deforestation). to Forest Code the plantation takes place is vital keeping the forest standing, na- With the income earned at the erine life’, reveals Carvalho. Ac- and commercial How it relates with other global so that Dona Nena, protagonist tural capital is converted into street fair, the riparian business- cording to him, it is necessary How it generates value for exploitation of the initiatives: The model can be of the initiative, can obtain quality different activities, like tourism. woman built a new house to ‘to roll up our sleeves and get the ecosystem and players in- macadâmia replicated, contributing to the fruits to produce her chocolate In Combu Island, close to Belém, expand her activities, previously to work, so as not to depend on volved: The Macaúba Project expansion of reforestation in and so that the businesses in the state of Pará, the riparian in- conducted in an informal man- the government, because de- preserves natural capital and Proponent: Arroba Sustainabil- the state of São Paulo where area of creative tourism present habitant Izete dos Santos Costa, ner in her own house. She also stroying the forest is like shoot- contributes to the provision of ity – small-scale private com- more than 300 thousand hect- increasing revenues. As a result, most commonly known as ‘Dona launched a popular visiting tour, ing yourself in the foot’. ecosystem services through pany from the food sector ares should be restored. the activity contributes to the en-

P22_ON natural capital october 2018 Currency for ALEXANDRE NOGUEIRA_CARRANCA FILMES. PROJETO CARBONO RECA exchange by Sérgio Adeodato ayment to extractivist of biodiversity assets to the in- been historically fragmented by modities to the companies, is key workers and rural farmers dustry, each family started to pastures and other impacts to to the business. Thus, to gener- Pwho adopt low environ- earn BRL 1,600 per year for the the natural landscape, devel- ate benefits keeping in mind win- mental impact practices, as well support offered to preservation oped a new PES methodology win situations and conciliate the as advances in mechanisms that and use of good practices, after that is applicable in non-adjacent market rationale to traditional offset the deficit of mandatory having been trained on com- areas. ‘This represents innova- knowledge, the company has natural reserve areas in rural mitments, rules and criteria to tion, as generally the mecha- encouraged social organization properties, prove to be efficient fight deforestation. As a differ- nism has been used in Brazil in and mobilized new practices in conservation tools with eco- entiator, the method provides longer extensions of contiguous the Aryamuru Project – a tupi nomic value. In the first model, for additional revenue accord- forests’, explains Macedo. word that means “the strength adopted as a strategy to fight de- ing to the collective result: in that comes from the mothers of forestation, the examples show other words, there is a financial The long-term objective is to mothers”, in other words, from results that can be replicated in incentive for each individual to make deforestation in the project the grandmothers. different regions in the Amazon. do their own part and a com- areas smaller than in the vicinity, pensation for the performance zeroing it after 25 years. Since Together with the Fruit Grow- Ponta do Abunã, located at the of the whole, which is intended 2013, avoided deforestation in ers Cooperative of Abaetetuba triple frontier between Acre, Ron- to the Reca Association – a way the region is equivalent to 190 (Para State), the current effort donia and Amazonas, entered to encourage farmers to en- soccer fields per year, or 74,000 is on the development of meth- Brazil’s History at the beginning of gage their neighbors. tons of carbon which is not re- ods to trace products from their the 20th century as a rubber out- leased into the atmosphere. De- point of extraction in the forest, post and as extractivist workforce At the first stage, from 2013 spite these results, adherence proving that the products come of the legendary railway Madeira- to 2015, the project handed to sustainable practices, which from one of the areas regular- Mamoré, at the ‘white gold’ saga, out a total of BRL 2 million in reached 77% of the families ized by the Rural Environmental in the middle of the Amazon For- payments that, from now on, in Abunã, remains a challenge Record (CAR). After having run a est. Today, the ancient El Dorado, at the second stage, will be against the expansion of pas- social and productive diagnosis, under heavy pressure due to live- handed on an annual basis. As turelands. Macedo warns: ‘The the project advised the com- stock expansion, is territory to a a result, the revenue of the co-benefit of revenue through munities to adopt commercial new dream: the construction of a families doubled when com- delivery of nature commodities relationship protocols with the model capable of making sustain- pared to the sale of extractivist to the industry is essential to the companies, with prior consent able use feasible, with financial products, benefitting 125 rural feasibility of PES projects’. and plans to use the resources: offset for those who keep the properties and reducing their açaí berry, cupuacu and caja, trees standing, help preserving deforestation rates. Bridges between the among other processed fruits biodiversity and contribute to the forest and the market within their industrial units. planet climate control. Among the results, the initia- tive helped land tenure regu- Creating fair and transparent The model follows Convention The region today is the main de- larization, which is essential to commercial relationship models 169 of the International Labor Or- forestation frontier of the Ama- the security of farmers and to is key to the task of connecting ganization on indigenous people zon. In the Reca Carbon Project, the project itself. In joint efforts the endpoins of the market, get- and traditions. ‘In addition to qual- developed by Natura, small local promoted with the German In- ting extractivist suppliers and ity, the market demands regulari- agroforesters, suppliers of andi- ternational Cooperation Agency industries closer, for the promo- ty, standardization and knowledge roba (Carapa guianensis Aubl.) oil (GIZ), 49 land tenure titles were tion of sustainable use as a bio- about the whole supply chain’, for cosmetics production, were issued and 205 applications diversity conservation strategy. says Faro. In the community of the protagonists of a pilot Pay- were submitted to the Rural En- ‘Consumers have been increas- Monte Herman, in Portel, Marajó ment for Environmental Services vironmental Record (CAR), ben- ingly more interested in knowing Island (State of Para), copaiba (PES) initiative – in this case, for efitting both Reca’s associates the origin of their forest products, (Copaifera langsdorffii Desf) is the contribution to the world cli- and collaborators. and how they are processed’, extracted through traceable mate balance through productive says Mariana Faro, Director at processes that identify the trees Natural transactions practices that do not deforest. ‘Since 2007, we have a neutral 100% Amazon, an international through GPS, which allows any- ‘We were looking for a safe for- carbon program in the company commerce company that cur- one to know from which tree the mula to be replicated in the Ama- and, after a while, we identified rently receives the production of oil purchased came from. As the zon in order to increase revenues the need to enhance our calcula- non-timber forest products from species is more valued, farmers without cutting down more trees’, tions to boost revenue and maxi- eight communities to export. handle it for commercial purpos- Ecosystem contributions to society are more evident each day and are beginning to said Keyvan Macedo, Sustainabil- mize the social impact, raising es, which in turn favors preserva- show their value, including for trade ity Manager at the company. farmers’ awareness regarding Focusing on territory valuation, tion of the forest, under constant the benefits’, explains the execu- consequently keeping the for- threat from illegal loggers. In addition to subsistence farm- tive. The communities of Ponta ests used by the local people as ing and earnings from the sale do Abunã, where the forest has a source of revenue and com- The deal closed by the communi-

P22_ON natural capital october 2018 Currency for exchange standing forest exempts the derstands that everyone grows. Natura reinforces its insetting rectly related with the Paris property from the pressures strategy, a vision shared by a Agreement and contributes to Initiative that typically fall on rural prop- How it generates value for growing number of organiza- Sustainable Development Goal erties so that they are produc- the ecosystem and players tions on how companies can 2 (End hunger, achieve food se- X-Ray tive, contributing to their pres- involved: In bringing forth the balance their relationship with curity and improved nutrition ty to manage their own resourc- offset the lack of environmental and realized it was a trend that ervation. Add to this the fact debate about the use of forest the environment on which they and promote sustainable agri- es links the local production plan reserves in rural properties that came to stay and could become that the initiative represents an seeds and their respective oils all depend. The company fully culture), 13 (Take urgent action and the companies demand. ‘At have already been deforested, a new niche when he worked at Compensation of alternative source of income to agroextractivist communi- understands that, in this way, it to combat climate change and the same time, we noticed a new so as to ensure compliance with the licensing area of Sao Paulo environmental for owners of properties with ties, the Aryiamuru project makes its actions have greater its impacts), 15 (Protect, re- culture related to waste, hunting the legislation. The New Forest environmental agency, Cetesb. liabilities though forest cover that exceeds the values products that can gen- synergy with supplier commu- store and promote sustainable and predatory fishing, as well as Code establishes that, under At that time, he had a pen at Forest Servitudes minimum limits required by law. erate income for the families, nities, as well as promoting the use of terrestrial ecosystems, the recovery of decayed areas certain conditions, those who hand to decide whether to au- maintaining the balance of the integration of programs and sustainably manage forests, and even positive changes on the do not have enough forest to thorize new projects. Proponent: Florestec – small- How it relates with other global local ecosystem. The 100% institutions; expand presence combat desertification, and halt dietary habit’, completes Carlos comply can offset their deficit scale private company from the initiatives: The project is direct- Amazon Aryiamuru Project has with cooperatives and associa- and reverse land degradation Augusto Ramos, the project for- by paying to another farm with With 16 transactions completed service sector (environmental ly aligned with Sustainable De- discussed methods of multiple tions; lead the carbon offsetting and halt biodiversity loss), be- est engineer. more preserved areas to do by the end of the first half of consulting and reforestation) velopment Goal 15: Protect, re- forest use and encouraged the agenda and strengthen the re- sides being in accordance with that, in the same biome. 2018, covering areas that vary store and promote sustainable use of tools that can ensure lationship with the supplier. In the Aichi Goals of 2011 – 2020. In Almeirim (State of Pará) the from 6,781 to 118,403 square Beginning date: 2014 use of terrestrial ecosystems, the basic protection of natural addition, the project assists in work supports the paperwork ‘The standing native vegetation feet (630 to 11,000 square me- sustainably manage forests, resources such as Community managing the environmental that proves the sustainable must have an economic value’, ters), the company goal was to End date: non applicable combat desertification, and halt Use Plans. regularity of cooperative / as- management of Brazil nut, fo- emphasizes the entrepreneur negotiate the available quotas at and reverse land degradation sociated properties and in the cused on foreign markets. The Leandro Viecili, Director at Flo- the plot and acquire another es- Place of realization: Piedade (SP) and halt biodiversity loss. How it relates with other glob- traceability of its products. partnership helps women in the restec, a company that entered tate in a different region, but then al initiatives: The Aryiamuru production of handicraft using a new business frontier with a an economic crisis occurred. The Approximated investment: Aryiamuru Project engages with the 160 How it generates value for the husk of the fruit after the project called Offset of Envi- business is expected to grow as R$ 70 thousand Project Convention of the International the ecosystem and players in- nuts are removed, which diver- ronmental Liabilities through soon as new investments come Labour Organization (ILO), with volved: The project is long-term sifies their revenue options. Part Servitude of Forest. in, because they will need to off- How it generates value for the Proponent: 100% Amazonia – the Forest Stewardship Council and aims to zero deforestation of the revenue goes to a fund set the lack of forest reserves to company: The environmental small-scale private company (FSC) certification for Forest in the participating properties. created by the community as At first, in 2012, with the pur- comply with the legislation. The compensation brought forth a from the forest products sector Handling and Global Pact, of By 2020, 427 hectares of na- working capital, to invest in local pose of solving the issue of traditional alternative of cultivat- competitive advantage to the which 100% Amazonia is a sig- tive forest are expected to be improvements. ‘From an eco- landowners with insufficienting saplings to solve the liability consultancy given the fact that, Beginning date: 2016 natory. preserved. The participant of nomical point of view, it is impor- land to turn into forest reserve, doesn’t always work, not only in addition to the production of the project is remunerated in tant not to rely only on a single the forest engineer acquired a due to the high costs, but also reports and technical studies End date: non applicable Carbono Reca the proportion of the conserva- product and to use the forest in farm of 785,765 square feet because there is need for moni- to subsidize the environmen- Project – Valuing tion that obtained and 50% of multiple ways’, suggests Ramos. (73,000 square meters), in the toring and caring for the plants. tal licensing, clients still had a Place of realization: Pará e local Amazonia the amount collected is destined municipality of Piedade (State solution to obtain environmen- Amapá) producers through to a common fund, that will fi- The objective, he says, is not lim- of Sao Paulo). The remnant for- ‘It is a long-term perspective and tal licenses at their disposal. an Payment Project nance structuring activities for ited to trading traceable prod- est area, which resisted to real care must be taken to overcome Generating win-win solutions is Approximated investment: not for Environmental the cooperative. The company ucts from fruits and seeds, but estate pressure for decades, is times of uncertainty in the envi- aligned with the business model informed Services (PSA) understands as additional op- rather developing the leading currently used to offset environ- ronmental and economic areas, of the two companies of which portunities: boost the viability role of local communities, based mental liabilities of third parties, like the period we have been the partners are part: Florestec How it generates value for Proponent: Natura – large- of PSA projects in the Amazon on community forestry man- perpetually, under the concept of through now, without losses due Engenharia e Soluções Ambien- the company: The initiative scale private company from the for small producers as well as agement and access to markets, servitude - in this case, the ser- to the cost of maintenance of tais, which is an advisory engi- strengthens long-term rela- cosmetic sector contribute to the creation of a asserting their economic auton- vice provided by a property to permanently preserved areas, as neering company, and Florestec tionships with suppliers, which benchmark for forest projects omy and their role as guardians another. Thus far, 21,527 square established by the agreements’, Reforestation, which manages contributes to the bringing Beginning date: 2013 focused on the future “Brazilian of biodiversity, knowledge and feet (2,000 square meters) of analyzes Viecili, who invested forest assets. in of new partners for forest Market of Reduction of Emis- culture in the Amazon. the reserve have been negotiated BRL 70,000 and, since the be- management. Applying a socio- End date: non applicable sions”, set on the National Policy for environmental offsets. ginning of the business, in 2014, How it generates value for economic and environmental for Weather Change (PNMC). Solutions to the trees got a profit of BRL 458,000. the ecosystem and players in- diagnostic method, entitled Ra- Place of realization: Small The project is also aligned with deficit ‘I came up with the idea when a Average customers, he says, are volved: In most cases, a rural dar, establishes trust between Agroforesters Association Non-Monetary Projects included carrier, which became our first landowners who have an urban property with a forest surplus the parties and increases the of the Reca Project. Ponta do in the new Access to Genetic Whereas in the Amazon sales customer, needed a property property with forests and need is devalued and seen as a bur- understanding of how the com- Abunã (RO, AC, AM) Heritage Law, in order to finance thrive at the pace of the com- to adapt to the environmental to cut down part of the vegeta- den, which puts even more mercialization of a particular the implementation of biodiver- munity social organization and norms, but it did not want to tion to build a house. But there pressure on the remaining veg- forest product can contribute Approximated investment: sity conservation actions in sup- access to markets, in the At- take care of the estate because are different demands, such as etation, given the pressure for positively to the improvement R$ 11,25 million plying communities. lantic Forest, in Sao Paulo, new their core business was trucks, ceramic industries that want to the conversion of forest areas of the living conditions of the businesses emerge following not forests’, tells Viecili. He expand their production and re- into agropastoral uses. The families. With this exchange of How it generates value for the How it relates with other global the path of mechanisms that gained experience on the field quire a mining license. aggregation of value with the knowledge, the company un- company: Through the initiative, initiatives: The project is di-

P22_ON natural capital october 2018 chest ommons Guides and Tools – Paths that to native fauna and flora. The representing indigenous com- • Goal 9. Build resilient infra- help incorporate natural capital percentage property area that munities, and 58 are non-gov- structure, promote inclusive into business management. shall be set aside as Legal Re- ernmental organizations. Get to and sustainable industrializa- serve varies according to the know its 10 goals. tion and foster innovation Insetting –The term refers to corresponding biome and re- business initiatives to balance gion. That percentage is: Payment for Environmental • Goal 10. Reduce inequality their relationships with the en- Services (PES): A remunera- within and among countries vironment they depend upon. • 80% in rural properties locat- tion system in which the agent The idea consists of internally ed at the Legal Amazon forest that promotes the environmen- • Goal 11. Make cities and human C / F lickr C reative G reg S imenoff making up for negative social area tal benefit is rewarded, and the settlements inclusive, safe, re- and environmental impacts as- beneficiary shall pay the corre- silient and sustainable sociated with the business (cli- • 35% in properties located in sponding economic value. mate, water, biodiversity, soil, cerrado (savanna) areas at the • Goal 12. Ensure sustainable social issues…). The core of the Legal Amazon, out of which SDG –The Sustainable Develop- consumption and production program is to incorporate social at least 20% shall be in the ment Goals are a global agenda patterns and environmental themes into property itself and 15% in the adopted during the United Na- Dictionary, the business strategy and, for form of environmental offset tions Conference on Sustainable • Goal 13. Take urgent action to that purpose, it is necessary to: in another area, although in Development, held in Septem- combat climate change and its suggested reading the same microbasin ber 2015, consisting of 17 goals impacts – Ensure participation of supply and 169 targets to be achieved and videos chains • 20% in properties located at by 2030. • Goal 14. Conserve and sustain- forest areas, other forms of ably use the oceans, seas and – Control the environmental native vegetation in other re- The 17 SDGs are as follows: marine resources footprint gions of the country • Goal 1. End poverty in all its • Goal 15. Protect, recover and > Dictionary risks by managing finite stocks functional unit. Examples of – Preserve resources and the • 20% in properties located in forms, everywhere promote sustainable use of and renewable flows. It aims to non-living environments are: core business areas of fields in general, any- terrestrial ecosystems, sus- Area of Permanent Preserva- keep products, components and the mineral part of the soil, re- where throughout the country • Goal 2. Zero hunger, achieve tainably manage forests, com- tion (APP) – As defined in Law materials at their highest utility lief, rains, temperature, rivers – Reinforce the group values food security, improve nutri- bat desertification, halt and # 12,651/2012, APP is a protect- and value at all times. and lakes – regardless of the and employee empowerment Natural Capital – It can be de- tion, and foster sustainable reverse land degradation, and ed area, whether covered or not species living there. fined as ‘stock or reserve pro- farming halt biodiversity loss by native vegetation, having the Cradle to Cradle – One of the – Add value to the product vided by (biotic or abiotic) nature, environmental function of pre- approaches of the Circular Ecosystem Services: Direct or which yields a valuable flow of • Goal 3. Ensure healthy lives • Goal 16. Promote just, peace- serving water resources, the Economy, developed by the Ger- indirect ecosystem contribu- – Engage consumers and part- natural goods or services into and promote well-being for all ful and inclusive societies for landscape, geological stability man Chemist Michael Braungart, tions for human well-being. ners the future’, according to an arti- at all ages sustainable development, pro- and biodiversity, facilitate the along with the American archi- cle published by Daly and Farley. vide access to justice for all, gene flow of fauna and flora, tect Bill McDonough. That con- Externalities – Negative or posi- Leaching – When natural veg- Ecosystems are an example of • Goal 4. Ensure inclusive and and build effective, account- protect the soil, and ensure the cept, which resulted in the Cradle tive impacts of certain activities etation is removed, the soil is ‘stock’, whereas ecosystem ser- equitable quality education, able and inclusive institutions well-being of human popula- to Cradle certification, removes that affect those who little con- exposed to the sun, wind and vices are an example of ‘flow’. and promote lifelong learning at all levels tions. the concept of waste (‘waste tributed to generate them, or rain. Leaching is the process opportunities for all equals food’), maximizes the use did not contribute at all. In case of washing out superficial soil Natural Capital Coalition – The • Goal 17. Strengthen implemen- Business as usual: The way of renewable energies, manages of negative externalities, the minerals caused by rains, which organization created the Natu- • Goal 5. Achieve gender equal- tation methods and revitalize business usually is done, with- the use of water, and adopts so- losses caused to society are leads to erosions, loss of fertil- ral Capital Protocol, a guide to ity and empower all women the global partnership for sus- out innovation or changes. cial responsibility practices. not paid by those who triggered ity and silting of bodies of water help the business sector assess and girls tainable development them, but rather by everybody. (accrual of sediments on the natural capital. Circular Economy – A regenera- Earth Overshoot Day – It is the river bed). • Goal 6. Ensure access to and Soy Certification – The most tive and restorative economy moment when humanity’s an- Global Platform on Business New York Declaration on For- sustainable management of popular systems are Round Ta- by design, according to the El- nual demand on nature exceeds and Biodiversity – In the Global Legal Reserve – According to ests – A voluntary international water and sanitation for all ble on Responsible Soy (RTRS), len MacArthur Foundation. It is what Earth ecosystems can re- Platform on Business and Bio- the New Forest Code, it is an declaration aimed at deterring Biomass Biofuel, Sustainability an alternative to the ‘take, make generate over the entire year. In diversity there is a variety of area located inside a rural prop- global deforestation. It was • Goal 7. Ensure access to af- Voluntary Scheme (2BS) and and dispose’ economic model, 2018, the day we were in ‘over- data on business engagement erty or possession, apart from firstly endorsed during the U.N. fordable, reliable, sustainable International Sustainability & which is reaching its physical draft’ was August 1st. activities, as well as informa- permanent preservation areas, Climate Summit, in September and modern energy for all Carbon Certification I( SCC). limits. It is a continuous, posi- tion and tools for companies needed for sustainable use of 2014. It has 191 signatory na- tive development cycle that Ecosystem – A dynamic com- that want to better understand natural resources, conserva- tions, out of which 40 are gov- • Goal 8. Promote inclusive and Spurious Competitiveness – A preserves and enhances natu- plex of plants, animals, micro- their impacts and dependencies tion and recovery of ecologic ernments, 20 are subnational sustainable economic growth, concept created by the Chilean ral capital, optimizes resource organisms and their non-living in biodiversity and the functions processes, biodiversity conser- governments, 57 are multina- full and productive employ- economist Fernando Fajnzylber, yields and minimizes systemic environment interacting as a of ecosystem services. vation, refuge and protection tional companies, 16 are groups ment and decent work for all from the Economic Commis-

P22_ON natural capital october 2018 chest

sion for Latin America and the brasileiras (‘How much are eter, showing the viewpoints • T rends in Ecosystem Services • The report Towards a glo- and Case Study of the Project • Oasis Project Caribbean (ECLAC). Spurious green areas worth: the eco- of consumers from different (TeSE) business initiative (here bal map of natural capital: to Produce Water in Camboriu competitiveness relies on low nomic importance of Brazilian countries about biodiversity. you will find all TeSE publica- key ecosystem assets (UNEP, River, Santa Catarina, Brazil) • Produtores de Água e Flores- wages, subsidies and devalued conservation units’), by Carlos With subtitles in Brazilian Por- tions) 2014) maps natural capital ta na Região Hidrográfica do exchange rates, as opposed to Eduardo Frickmann Young and tuguese: https://youtu.be/ distribution globally: Guandu (Producers of Water authentic competitiveness. Rodrigo Medeiros. The publica- lHQv-PLjWig • An edition on Ecosystem Ser- and Forest in Guandu River Ba- tion seeks to show that direct vices containing articles with a • FGVces and Febraban studies Academic Literature sin District) Project TEEB – The Economics of Eco- and indirect economic gains • Documentary videos entitled very accessible language and – analyses of paths to lever- systems and Biodiversity, an ini- obtained from conservation ‘Negócios e uso sustentável a PDF version. age Brazil’s transition towards • TEEB (2010). ). The Economics • Cultivando Água Boa (Cultivat- tiative headed by economist Pa- units in the country largely da biodiversidade no Brasil’ a low-carbon economy. of Ecosystems and Biodiversi- ing Good Water) Program van Sukhdev, who published the exceed expenditures and in- (Business and Sustainable Use • N atural Capital Protocol, a ty: Mainstreaming the Econo- document entitled The Econom- vestments required by the Na- of Biodiversity in Brazil) cov- standardized and comprehen- • Financial risk management. mics of Nature. A summary of • Evian Case ics of Ecosystems and Biodiver- tional System of Conservation er the relationship between sive framework for companies Source: UNEP FI CEO Briefing TEEB approach, conclusions sity, in 2011. The work emphasiz- Units (SNUC – Sistema Nacio- companies and biodiversity, to measure and assess their (2010): Demystifying Materi- and recommendations. Sukh- es the potential nature benefits nal de Unidades de Conserva- showing best practices in bio- dependencies and impacts on ality – Hardwiring biodiversity dev, P. (Coord.). 49 p. can provide to ensure and im- ção). You can access the book diversity, innovation and rela- natural capital. and ecosystem services into prove human well-being. You can here. tionship with suppliers in five finance. • TEEB (2010). The Economics access the version in English. companies: Beraca (cupuaçu • N atural Capital Coalition web- of Ecosystems and Biodiver- – Theobroma grandiflorum), site • Operationalising natural capi- sity: TEEB for Business. Exe- TeSE – FGVces Trends in Eco- Centroflora (jaborandi – Pi- tal: managing opportunities cutive Summary. Bishop, J. system Services (TeSE) busi- Videos locarpus microphyllus), Pele • N atural Capital Hub website, and risks from natural re- (Coord.). 23 p. ness initiative, jointly built with Nova (rubber tree – Hevea containing case studies, news sources (University of Cam- a group of member compa- • Cultural Services – The video brasiliensis), Tobasa (babassu articles and tools on the topic. bridge, 2016) explores how • TEEB (2012). TEEB para o nies guidelines for monetary ‘The Value of Conservation – Orbignya phalerata) and Nat- businesses are seeking ways Setor de Negócios Brasilei- and non-monetary valuation Units to the Brazilian Society’ ural Wax (carnauba – Coperni- • ValuES Platform – Methods to to incorporate concerns with ro (TEEB for Business Brazil). of 10 material ecosystems to illustrates the contributions cia prunifera). The videos were incorporate ecosystem ser- natural resources into their Preliminary report. Pavese, H. the companies. You can see offered by the conservation produced under the TEEB R-L vices into politics, planning and decision making. (Coord.). 36 p. the guidelines and the tool units to the Brazilian society. project. practice. in the following link: http:// It is about the value of nature • A study entitled Quantificação • COSTANZA, R.; DE GROOT, R.; www.tendenciasemse.com.br/ and ecosystem services (wa- http://www.portaldain- • Website of the Iniciativa Bra- da Exposição ao Risco relacio- SUTTON, P.; VAN DER PLOEG, metodos?locale=pt-br ter, climate balance, research, dustria.com.br/cni/interna- sileira de Negócios e Biodiver- nado ao Capital Natural das S.; ANDERSON, S.; KUBISZE- medicinal products, scenic video/?v=Mm0f5CtOOGw sidade (Brazilian Initiative of Instituições Financeiras no WSKI, I.; FARBER, S.; TURNER, Waves – It is a global partner- beauty, etc.) for the well-be- Business and Biodiversity, co- Brasil (Quantifying Exposure K. Changes in the global values ship led by the World Bank to ing, the productive sector, the http://www.portaldain- ordinated by CNI, CEBDS and to Risk related to Natural Cap- of ecosystem services. Global incorporate natural capital into economy (a seven-fold return dustria.com.br/cni/interna- Instituto Life) ital in Financial Institutions in Environmental Change, v. 26, public accounts. You can read when compared to the value video/?v=p0mhrrS8MsU Brazil), developed by TruCost pp. 152-158, 2014. about the role of the private invested), defense of tradi- • Website of the World Forum in partnership with Brazilian sector in acknowledging the tional populations, etc. The http://www.portaldain- on Natural Capital, held on financial institutions, commis- • HARDIN, G. Tragedy of Com- value of natural capital to the video was produced by ICMbio dustria.com.br/cni/interna- November 23 and 24, 2015, sioned by GIZ and CEBDS. mons. Science, n. 162, pp. business here: https://www. (Chico Mendes Institute for video/?v=UwlnaWKHKR8 in Scotland, where you can 1243-1248, 1968: https:// wavespartnership.org/en/pri- Biodiversity Conservation), the find information on the topic • Weaving ecosystem services www.sciencemag.org/site/ vate-sector-role-recognizing- Ministry of the Environment http://www.portaldain- and read about the relation- into impact assessment, a feature/misc/webfeat/sotp/ -value-natural-capital-focus (MMA), the German Technical dustria.com.br/cni/interna- ship with the business sec- WRI guide (2016) on how to in- pdfs/162-3859-1243.pdf Cooperation Agency (GIZ), and video/?v=eiX12X_nJZM tor. corporate ecosystem services > Hints on Videos, Re- TEEB Regional-Local and Snuc into Environmental Impact As- • HANSON, C.; RANGANATHAN, search and Readings Consolidation projects. Please http://www.portaldain- • Biodiversity and Ecosystem sessments (EIA). J.; ICELAND, C.; FINISDORE, visit: https://youtu.be/KZkz- dustria.com.br/cni/interna- Services J. The corporate ecosystem Book p4uJKJY video/?v=02IBz_5rAac • Report Análise do Retorno do services review: guidelines • ISO 14001/2015 Investimento na Conservação for identifying business risks • Would you like to know the • Ecosystem services – a new Websites e plataformas: de Bacias Hidrográficas: Re- & opportunity arising from most effective way to protect frontier for business competi- • Union for Ethical BioTrade ferencial Teórico e Estudo de ecosystem change. Version natural capital? It is through tiveness and resilience https:// • Valuation of Ecosystem Servi- showing the importance of Caso do Projeto Produtor de 2.0. Washington, DC: World Conservation Units, accord- youtu.be/hUfU92cYu7I ces – To get to know different biodiversity for business. Água do Rio Camboriú, Santa Resources Institute, 2012. ing to the organizers of the use cases of economic valua- Catarina, Brasil (Analysis of book Quanto vale o verde: a • A video prepared by the UEBT tion as an instrument to make the Return on Investment in importância econômica das (Union for Ethical BioTrade) ecosystem services tangible for the Conservation of Water- unidades de conservação on the Biodiversity Barom- business activities. Reports sheds: Theoretical Framework Projects/Cases

P22_ON natural capital october 2018 If you are interested in associating your organization with high quality content on strategic sustainability issues, support this and coming editions of P22_ON.

For more information, contact [email protected]. october 2018