Natural Capital Approaches for Sustainable Development

Emily McKenzie Chief Adviser, Economics and Sustainability

© Anton Vorauer / WWF Outline

1. Natural capital and the SDGs

2. The case of

3. What tools are available?

4. Natural capital in business decisions

2 27-Jun-17 1 Natural Capital and the SDGs

© BRANDON COLE/WWW.NATUREPL.COM 2 5 27-Jun-17 © Azote Images for Stockholm Resilience Centre 6 What is natural capital?

Natural Capital is the stock of renewable and non-renewable natural resources, (e.g. plants, animals, air, water, soils, minerals) that combine to yield a flow of benefits to people Food, fuel, fiber

Climate Pollination regulation

Coastal Clean protection water

Spiritual Fulfilment 7 27-Jun-17 8

Multiple forms of capital

Financial capital

Manufactured capital Intellectual Human capital capital Social and relationship capital

Natural capital

capitals framework 9 10 11 12 13 Millennium Ecosystem Assessment

• 60% of ecosystem services are being degraded or used unsustainably

• Degradation of ecosystem services causes significant harm to human well-being

14 27-Jun-17 © Christy Williams / WWF Sustainable Securing Sustainable, Standards for Safe, Resilient Development Freshwater Livable Cities the Private Coastal Planning Sector Communities

Working together to account for nature’s values, toward shared outcomes THEORY OF CHANGE

Robust evidence of Build and tell Create user-friendly conditions for success stories, approaches & tools success engage leaders

Get information about natural capital into decisions

Make decisions with better outcomes for people and nature Build and tell success stories

Development Planning

Securing Freshwater

Sustainable, Livable Cities

Standards for Private Sector

Safe Resilient Coastal Communities 2 The Case of Myanmar

© NATUREPL.COM/EDWIN GIESBERS/WWF Myanmar

Informing a green economy in Myanmar

Development Planning

Securing Freshwater

Sustainable, Livable Cities

Standards for Private Sector

Safe Resilient Coastal Communities

Natural habitat provides clean drinking water

+ Natural habitat provides water in the dry season

+ Natural habitat helps reduce risk of flood

+ Coastal habitats protect populations

Role of habitats in reducing Distribution of Myanmar’s Where coastal habitats exposure coastal population provide the greatest benefits to the most people Climate change impacts

• Sea level rise • Coastal erosion and inundation • Increasing temperatures • Forest fires, drought, heat waves • Changing precipitation • Increasing extremes • Water availability 27-Jun-17 25 Myanmar’s future climate risk (2040s)

Low High Low High Increased sediment export to dams under future climate scenario

Current climate -> RCP 8.5

Historical RCP 8.5 scenario Percent change in Dam name climate 2031-2050 sediment to dam

Alaingni 18.5 Gyobyu 18.6 Kabo 24.7 Kinda 24.7 Kintat 28.6 Manchaung 22.3 Mobye 25.7 Natmouk 24.4 Ngamoeyeik 18.8 Salin 23.1 Sedawgyi 25.2 Sunchaung 25.1 Tabuhla 18.6 Taungnawin 22.2 Thaphanseik 28.8

GRanD global dams database

29 27-Jun-17

40° E 60° E 80° E 100° E 120° E 140° E

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Vyborg Torpynovka 60° N St. Petersburg ASIAN HIGHWAY ROUTE MAP 500 Km. 60° N RUSSIAN FEDERATION

AH8 Yekaterinburg

AH7 AH6

Moscow AH6 AH6 AH6 Petuhovo AH6 Chelyabinsk E30 Chistoe Isilkul AH6 E30 AH60 Krasnoe Petropavlovsk Karakuga E30 AH4 AH8 Troisk AH6 Samara Cherlak E AH7 AH62 Pnirtyshskoe 11 Kaerak 9 E30 Kostanai AH64 Barnaul AH30 E1 AH60 AH30 23 E 1 AH63 2 E1 E 5 27 Tambov 1 2 1 AH64 Ulan-Ude Borysoglebsk Saratov Kurlin AH7 AH64 Chita Kursk AH61 Pogodaevo AH60 AH6 Ozinki AH64 (AH64) AH6 E38 Shiderty (AH67) AH3 AH61 Voronezh Ural'sk AH62 E127 Veseloyarskyj AH4 AH6 Astana AH7 (AH67) Belogorsk Krupets 8 AH8 Kamenka E Krasny Aul E3 Zhaisan 12 E 3 E1 Kyahta 1 AH61 2 1 Arkalyk 5 AH67 Semipalatinsk 9 AH63 Altanbulag E38 Karabutak AH60 E Aktobe Karaganda 1 Tashanta 2 (AH67) Ulaanbaishint Darkhan 1 Georgievka AH3 AH30 AH61 AH4 AH6 Volgograd E Donetsk AH70 3 AH67 8 AH32 E40 E AH60 4 (AH67) Ulaanbaatar Nalayh 0 AH8 AH7 Hovd AH32 Sumber Arshan E Zhezkazgan AH32 AH31 Tongjiang 1 (AH70) Atyrau AH63 E Taskesken Choybalsan 19 12 (AH70) 5 Uliastay Numrug Kotyaevka AH70 E1 0 05 Port of Odessa E4 Aralsk Baketu Ondorhaan AH62 3 Bakhty 12 AH33 E E AH67 Takeshkan Choir AH3 12 Ucharal AH32 E 1 AH68 9 4 Yarantai 1 0 AH30 1 Beyneu E Dostyk E AH60 014 Kyzylorda Burubaital AH4 AH8 E40 Alatawshankou Daut-ota Saynshand AH6 AH60 AH5 AH31 Pogranichny AH70 1 AH5 Port of Constantza 5 12 AH63 E Jinghe Urumqi

1 0 E AH61 25 Kuitun E AH7 Horgos 0 Aktau 4 Changchun Zhetybai 0 AH5 Zamin-Uud Erenhot E E4 Razdolnoe AH6 K 12 (AH62) 0 AH5 Kaskelen AH32 AH61 0 AH5 m Hasavjurt 3 Merke Kordai E4 Hunchun Mahachkala AH5 AH5 Quanhe . Nukus 40 Georgievka AH31 Nahodka Port of Varna Larsi AH81 AH8 E Vladivostok 1 Chaldovar Tulfan Wonjong 2 (AH61) Kara Balta Hasan 1 Shymkent Sonbong E AH5 AH70 0 Khasan H5 Kazmalyarskiy 4 AH4 Kapikule A AH5 E Bekdash Zhibek Zholy AH7 Samsun Samur Naryn AH6 AH1 Kazakh Chernyavka AH61 H5 AH5 Syrdaria (AH5) E80 Gerede A 70 Sumgayit AH63 Andijon E125 AH3 AH1 Merzifon E Buka Torougart DEMOCRATIC AH1 AH1 E80 AH85 AH86 AH7 (AH5) Bayburt ARMENIA Gazi E AH1 AH31 Amasya AH5 Turkemenbashi 40 Navoi Aybek Osh AH1 E60 Mammed E40 AH5 AH65 Turugart PEOPLE'S REPUBLIC 500 Km. AH1 AH5 40° N E80 Eraskh Alat AH5 Karamyk Sary-Tash AH5 40° N Refahiye Askale AH81 (AH70) E AH1 Sivas E80 Dogubayazit 121 (AH62) AH65 Irkeshtam Arkaxtam OF AH87 AH1 Alat E Bilasuvar E60 Turkmenabat AH63 60 E60 Kashi AH62 Tanggu AH6 Kosong AH87 AH5 Sariosiyo AH66 AH6 Eyvoghli Vakhdat AH1 AH1 Ganseong Usak Afyon Astara 21 Guzar E Tursunzade E90 AH84 E1 AH626 0 AH4 Izmir AH8 AH70 AH5 0 0 6 AH7 Gaesung 6 E Kulob Munsan AH1 Chovdan AH5 Mary E AH66 AH84 Diyarbakir Gudurolum AH65 Kulma Toprakkale 90 Pass Termez Nizhniy Panj Adana Gaziantep E Inche Boroun Bajgiram Khorugh Pass REPUBLIC OF Qucham Hairatan Honqiraf Icel AH70 Gorgan Sarahs Shirkhan

AH77 Khunjerab KOREA Iskenderun Sari AH78 Mazar-i-Sharif AH76 Daejon AH1 AH1 AH75 Sarakhs (AH8) Polekhumri AH5 AH1 Sabzevar AH1 AH76 AH7 AH1 Damghan AH1 AH42 Saveh AH8 Serkhetabat AH1 Nagoya Semnan AH70 (AH6) Hamadan Bamiyan Djbulsarcj AH4 Jammu Osaka Tourghondi Golmud Khosravi AH2 AH77 and AH34 AH34 AH1 AH78 AH2 Salafchegan AH75 Dogharun Kashmir AH8 Hassanabdal AH1 AH2 Xi'an ISLAMIC AH1 AH42 Rawalpindi REPUBLIC OF AH1 AH8 AH1 Birjand AH51 Esfahan Dilaram (AH7) AH5 AH75 Yazd Dera Ismail AH5 AH78 AH2 AH1 (AH70) Zarang AH71 AH7 Khan AH72 Nehbandan Milak Wahgah Anar Chaman AH51 AH1 Zabol Speenboldak AH2 AH2 (AH2) AH1 andar Emam Dashtak B (AH4) AH70 AH42 AH2 Taftan Bramhadev Mandi Bushehr AH2 Mahendranagar AH3 Mirjaveh Kalat AH2 AH2 AH2 New Rampur (AH4) Kohalpur AH2 Rohri AH1 Narayanghat BHUTAN AH75 Bandar Abbas AH7 Pathlaiya AH48 Thimphu Xiangtan AH43 AH2 Kakarbhitta Phuentsholing AH3 Jaigaon Nagaon AH4 Phulbari AH1 AH42 AH1 (AH2) Jorabat AH1 AH2 Barauni AH14 AH3 Chabahar BANGLADESHTamabil AH14 AH43 (AH2) Moreh 5 Barhi Hatikamrul AH1 0

AH1 0 AH47 AH41 Katchpur Muse AH3 Tamu K

Jessore m Bongaon AH41 Lashio . Benapol Hekou AH14 AH1 AH14 Mongla A AH1 Lao Cai Youyiguan AH45 H

4 Huu Nghi 1 (AH2) Tai Trung AH46 Cox's Bazar AH1 Viet Tri Dong Dang AH1 AH (AH2) Kyaing Tong 1 AH46 Meiktila AH2 Nateuy Oudomxai 3 Ha Noi Teknaf Pakmong AH14 Hai Phong

MYANMAR AH1 20° N AH47 LAO PEOPLE'S 500 Km. 20° N Naypitaw Bhubaneshwar DEMOCRATIC

AH1 REPUBLIC AH45 AH13 AH15 AH2 AH11 Uttaradit Ban Lao Laoag AH1 Tuguegarao Hyderabad Payagyi Udon Thani Thakhek Tak AH15 AH1 Phitsanulok Dong Ha Seno AH16 AH26 AH12 AH16 Hue Myawadi AH16 Khon Kaen AH1 Hoi An PHILIPPINES 1 Nakhon Sawan AH1 AH43 (AH2) Pakse AH1 Youyiguan AH47 A Jinghong AH19Nakhon Ratchasima H Manila AH14 Huu Nghi AH12 1 RUSSIAN FEDERATION 1 AH3 AH3 Hin Kong Dong Dang AH1 Veunkham AH26 Mongla Daluo Leselidze Bang Pa-in Kabin Buri VIET NAM AH19 Aranyaprathet Tranpeangkreal Kyaing Tong VIET NAM Hasavjurt Mahachkala Mohan AH13 Viet Tri AH1 AH82 Chonburi Stung Treng Tai Trang Sukhumi Poipet AH13 Legazpi AH2 AH2 Boten Laem Chabang Matnog Nateuy Ha Noi GEORGIA Larsi AH45 Kratie Oudomxai Hai Phong AH8 AH1 Allen AH26 AH14 AH81 AH1 Poti Senaki AH5 1 Pakmong AH1 Khashuri AH43 MYANMAR Tachilek AH3 AH5 AH5 AH1 (AH82) Moc Bai AH1 E60 Mtskheta 1 Bavet Bien Hoa Ormoc Tacloban Mae Sai Akhaltsikhe AH3 AH13 AH12 Batumi Tbilisi Samur AH1 Sarpi Vale AH82 Kazmalyarskiy Ho Chi Minh Cebu Chiang Rai Chiang Kong Sarp City Liloan Louang Phrabang Sadakhlo Vung Tau

Zdanov Red Bridge Surigao Muang Ngeun AH2 Trabzon Bagratashen Kazakh Huai Kon E70 Bavra Uzungala AZERBAIJAN Tallaimannar LAO PEOPLE'S Akurik Gumri AH81 Paravakar Dhanushkodi AH43 AH82 Vanadjor AH5 Samgayit Trinconmalee Cagayan de Oro AH86 AH83 Ganja E60 DEMOCRATIC Bayburt Baku ARMENIA Gazi AH44 AH26 Ashtarak Mammed AH26 REPUBLIC AH15 AH1 Yerevan AH13 Keoneau Vinh AH26 E80 Eraskh Alat AH2 Cau Treo AH1 Askale AH81 AH18 Zamboanga Davao Vientiane AH15 Gurbulak Sadarak Goradiz Sri Jayawardhanapura-Kotte AH43SRI LANKA E80 AH81 Bilasuvar Sa Dao Dogubayazit AH1 Sungai Kolok Uttaradit Thanaleng Ban Lao General Santos Nong Khai AH1 AH2 Bazargan (AH15) AH1 Julfa Matara 1 TURKEY Agarak Banda Aceh Rantau Kota Bahru Bandar Seri AH15 Aghband AH25 Panjang Thakhek Jolfa Butterworth Begawan Udon Thani Eyvoghli BRUNEI DARUSSALAM Nour Douz Nakhon AH1 AH16 Phanom Male Tak 5 Astara Phitsanulok Dong Ha 0

Myawadi AH16 0 AH84 Tabriz Kuantan AH12 Seno Densavanh

AH1 Mukdahan AH1 Medan Kuala Lumpur Mae Sot AH16 Lao Bao K AH16 m MALDIVES AH13 AH1 AH8 Savannakhet AH16 Tebingtinggi AH18 Hue . AH84 Diyarbakir ISLAMIC Khon Kaen E90 AH2 MALAYSIA AH1 Da Nang 1 REPUBLIC OF IRAN Rasht Dumai THAILAND Hoi An Senai Utara Nakhon Sawan Pekanbaru SINGAPORE 0° 500 Km. 0° AH25 Capital City Jambi Asian Highway Route INDONESIA

Potential Asian Highway Route Palembang

Ferry Link AH25

The designations employed and the presentation of material on this map Tanjung Karang PAPUA Bakauheni do not imply the expressing of any opinion whatsoever on the part of the Cikampek NEW GUINEA Merak Secretariat of the United Nations concerning the legal status of any country , AH2 territory, city or area or of its authorities, or concerning the delimitation of its AH2 frontiers or boundaries. UNITED NATIONS Port Moresby Dili Dotted line represents approximately the Line of Control in Jammu and 2014 TIMOR-LESTE Kashmir agreed upon by India and Pakistan. The final status of Jammu and Kashmir has not been agreed upon by the parties.

40° E 60° E 80° E 100° E 120° E 140° E

Legend of Height (in metres) Data Sources:

1. Digital Elevation Model: National Oceanic and Atmospheric Administration (NOAA), USA (http://www.ngdc.noaa.gov/seg/topo/globe.shtml) 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000 6500 7000 7500 8000 8500 metres

2. Inland water body: The Department of Geography, University of Maryland, USA (http://www.geog.umd.edu/landcover/1km-map.html)

Loss of sediment with increasing deforestation

Mainstreaming in policy and planning

Natural capital assessments - Stocks and ecosystem Capacity building and consultations services - Serviceshed analyses - Trainings Mainstreaming - Climate change - Consultation meetings - Green economy strategy - Climate change strategy - Infrastructure planning and design - Regional/national land use planning - Forest management plans - National spatial database (OneMap) How is information being used?

Investment Trainings on rules EIA

National accounting Road design reform 27-Jun-17 40

www.myanmarnaturalcapital.org Explore ecosystem services Explore – flood risk reduction

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 5th Qtr

27-Jun-17 45 Science Meets Art

27-Jun-17 46

Building local capacity Working with many partners Myanmar transport corridors

KBA shapefiles provided by WCS, Birdlife and Partners

There are many different approaches to natural capital and a lot of work has been carried out already. The Natural Capital Protocol standardizes this into a single3 global framework What tools are available?

54 27-Jun-17 © NATUREPL/TONY HEALD/WWF 55 Harmonization

There are many different approaches to natural capital and a lot of work has been carried out already. Natural Capital Project Toolbox

Download at www.naturalcapitalproject.org 44 Natural Capital in Business Decisions Business for Social Responsibility. 2012 Timeline

2005 2008 – 2010 2012 2013 2016

Ecosystem Services The B Team Natural Partnership Capital Protocol US National Natural Ecosystem Capital Services Business Natural Partnership Hub Capital Finance Alliance A Conference Natural Capital Natural on Ecosystem Coalition Capital Services (ACES) Leaders index The Economics GLOBE Natural of Ecosystem Capital initiative and Biodiversity World (TEEB) Natural Capital Forum on Declaration Natural Wealth Accounting Capital and Valuation of Natural Capital Ecosystem Services Leadership Compact (WAVES) UK Natural ProEcoServ Capital Committee

Private Sector projects 60 The Coalition

The Coalition is a collaboration representing all parts of society. Represent c.250 organizations, all working on natural capital.

Purpose To mainstream the inclusion of natural capital in business decision making, harmonizing approaches and getting them to scale, quickly.

Our Vision A world where business conserves and enhances natural capital 61 Introducing the Protocol

The Natural Capital Protocol is a standardized framework for business to identify, measure and value its direct and indirect impacts and dependencies on natural capital 62 A unique collaborative process

Developed the Protocol Developed the sector guides, and managed the business engagement and pilot testing

The Coalition is hosted by ICAEW. 63 Leading companies tested the draft Protocol

Over 50 businesses contributed to the Protocol piloting program

Deep Dives

Piloted the entire Protocol

Piloting companies

Piloted different steps of the Protocol 64 Sector Guides and Supplements

Protocol

Built Food & Apparel Forest Environmen Finance Beverage products Oceans Biodiversity t

Sector Guides Supplements

The Coalition will develop new guides in partnership with sector initiatives and associations Natural Capital Protocol Toolkit

Acknowledgements

WWF Columbia University • Hanna Helsingen • Radley Horton • Nirmal Bhagabati • Manishka De Mel • Michele Dailey • Jill Schwartz Natural Capital Project • Sai Nay Won Myint • Lisa Mandle • Nasser Olwero • Stacie Wolny • Ryan Bartlett • Perrine Hamel • Kate Newman • Mary Ruckelshaus • Henry Borrebach Natural Capital Coalition • Anne Guerry • Mark Gough • Hannah Pitts Any many many more…. Sources:

“Racing to a new prosperity.” China Daily USA 06/04/2014 (http://usa.chinadaily.com.cn/epaper/2014- 06/04/content_17562090.htm) Sources One Belt One Road (http://www.oboreurope.com/en/beltandroad/one-belt/)

Forests protect bridges by reducing soil erosion Decision Making

The Protocol is a framework designed to help business generate trusted, credible, and actionable information for business managers to inform decisions

What are the risks and opportunities to your business?

• Operational • Reputational and marketing • Legal and • Societal regulatory • Financing What the Protocol does and does not do

The Protocol… The Protocol does not…

 Builds on existing tools, guides,  Seek to create new tools and methods and techniques methods

 Focuses on improving internal  Provide a framework for external management decision making financial reporting

 Provides a standardized process  Explicitly promote specific tools, that is also flexible methodologies or approaches

 Provides a process to internally  Necessarily produce results that standardize the approach that are comparable within or you take between different businesses or applications The Natural Capital Protocol Framework