Credits CEBDS - Brazilian Business Council for Sustainable Development Av. das Américas, 1.155 – grupo 208, 22631-000, Rio de Janeiro, RJ, Brazil Phone: +55 (21) 2483.2250, e-mail: [email protected], site: www.cebds.org

Content and editors PADMA Environmental Consulting Phone: +55 (21) 3437-3238, e-mail: [email protected], website: www.apadma.com

General Coordination CEBDS - Brazilian Business Council for Sustainable Development

Translation AT Tradução e Interpretação

Design I Graicci Comunicação e Design

Printed by Grafito Gráica e Editora

Circulation 1000 copies

Photography Image bank SXC The other images were provided by the companies whose cases appear in this publication.

Sponsors: 5

06 Overview 09 Message from the President 10 Introduction 13 What is CEBDS? 14 What is CTBio? 14 CTBio’s Work Plan Summary 15 Ecosystem Services and the Business Sector

15 Companies and sectors 15 Discussing and integrating the issue into business strategies 16 Ecosystem services relevant to business 16 Company likelihood of exposure to risks and opportunities 17 Assessment of the relationship between business and ES 17 Companies’ initiatives for the conservation of ES 18 Barriers to carrying out ES assessments 18 Reasons to include ES into business 19 Public policies and ES 20 Tools to assess Ecosystem Services 22 Case studies 39 Conclusion 41 Recommendations 42 References 6 CEBDS Brazilian Business Council for Sustainable Development –

Overview 77

Companies’ capacity to include biodiversity the relationship between productive practices, and ecosystem services in business strategies is dependence, and impact on ecosystems, as well increasingly important given the evolving debate as on possible risks and opportunities associ- and regulations on these topics in corporate ated with including biodiversity and ecosystem social environmental management. services (BES) in their operations. Many companies have tried to improve their Impact assessments on the dependence among performance by including new management businesses, biodiversity and ecosystem services practices and deining environmental goals due in productive processes demands the effort to the relevance of these matters in business of collecting and systemizing information and agendas. which is part of company routine. At irst sight, data and information gathering can seem to Furthermore, businesses that on a proactively demand signiicant inancial investment and an effort try to assess and include biodiversity effort to train teams, a challenge which must be and ecosystem services in their operations will overcome. become a reference for those still exploring ways to engage in the debate. This knowledge By anticipating possible rules and regulatory base will gain recognition are seen as natural markets, companies that know how to relate to their operations biodiversity and ecosystem resources become more scarce and strategic services can also be pioneers in developing assets, both for the productive sector and for new products, regulatory frameworks, moni- society as a whole. toring mechanisms and even in deining best However, companies need to further under- strategies and methodological approaches for stand the topic in order to include biodiversity the entrepreneurial sector. and ecosystem services into their environmen- The Biodiversity and Biotechnology Working tal management systems. Group (CTBIO is the acronym in Portuguese) It is dificult for companies to relate ecosys- organized a series of workshops on biodiver- tems quality and well-being to their bottom sity and ecosystems services to provide mem- line mainly due to the lack of knowledge about ber companies the opportunity to become 8 CEBDS Brazilian Business Council for Sustainable Development –

This publication is an effort made by the Brazilian Business Council for Sustainable Development (CEBDS) and associate companies to adopt strategies for biodiversity and ecosystem services management in their businesses between 2011 and 2012.

more familiar with the matter. Concepts and tools to assess and value biodiversity and ecosystem services were reviewed. CTBIO’s agenda includes concepts such as what ecosystem services are, how to quantify their contribu- tion for businesses and how to assess them as leading topics for the last two years. Thus, important debate on the applicability of each tool in companies with different proiles, as well as on assessment scales and opportunities related to the analysis took place. The need to expand business capacity to assess ecosys- tem services (ES) has been a recurrent theme, as well as the need to better disseminate information about companies that have already carried out different in-house approaches to assess and value ES. This series of workshops provided an opportunity to further progress on the issue. Nevertheless, it is now necessary to raise awareness on the importance of ES and how companies depend and impact them. These themes are still incipient in the current corporate scenario and many times re- stricted to sustainability teams and seen as peripheral themes in spite of being strategic. In order to change this dynamic and broaden the perspective of the impact ES can have on productive processes, it is necessary to strengthen companies’ technical capacities, so that they can identify not only risks, but also opportunities that may arise from adopting this new approach in their business. 9

Message from the President

The eleventh Conference of the Parties to the experiences” is a publication that translates great Convention on Biological Diversity (COP 11) is an leadership by CEBDS and partner companies in the important landmark in the implementation of mea- search of more sustainable models. Lessons learnt sures to address the concerning scenario of global and expertise in the publication provide a practical biodiversity loss. The Brazilian Business Council for dimension to recommendations in the Vision Brazil Sustainable Development (CEBDS, acronym in Por- 2050 Report launched by CEBDS at Rio+20. tuguese) believes the growing awareness in Brazilian The publications holds a special meaning for CEBDS private sectors will be essential to redress biodiver- since it expresses the creative capacity of companies sity loss while responding to society’s demand for with a vision of the future in an attempt to work in a ecosystem services. closer relationship with all sectors in society. The business sector will play an essential role in We would like to express our sincere thanks to the COP11, as was the case with COP 10 held in Na- companies that sponsored this publication. We would goya, Japan in October, 2010. The Brazilian delega- also like to thank speakers, researchers and tool tion took a pioneer position in the international developers for sharing information. And last but not scenario. CEBDS, represented by the Biodiversity and least, we would like to thank all professionals that Biotechnology Working Group (CTBIO), introduced worked in training workshops, information systemati- 27 case studies developed by 17 companies from zation, publication translation and distribution. Brazil at the meeting. It clearly shows biodiversity is Warm regards and enjoy! steadily incorporated in business operations.

We have now reached a new level in India. “Biodi- Marina Grossi versity and Ecosystem Services: Brazilian business CEBDS Executive President 10 CEBDS Brazilian Business Council for Sustainable Development –

Introduction

Over the last two decades, especially after the United as operational, regulatory, legal, reputational, market Nations Conference on the Environment and Devel- and product, as well as inancial risks. On the other opment held in Rio de Janeiro in 1992, debate about hand, business opportunities may include eficiency the impact of human activities on nature includes gains, new products and markets, certiicates, new society as a whole. revenue sources and brand gains (WRI, 2012). At the same time, global decline of biodiversity is In 2005, the United Nations General Secretariat, to- increasingly evident and accelerated, while popular gether with the major global investors, developed the awareness rises. Companies, in turn, have realized “United Nations Principles of Responsible Investment that the rapid and continuous loss of biodiversity can (UNPRI)”, a commitment to include environmental, jeopardize ecosystem services (ES) supply, as well as social and governance issues in their corporate prac- operations results. tices. The Convention on Biological Diversity (CBD) Environmental damages represents annual losses of up has intensiied the collaboration of the private sector to US$4,5 trillion for global economy (UNPRI, 2012) in their negotiations since 2006. Likewise, the G8 and at least one third of this amount could have been group of environment ministers launched the docu- avoided had governments and businesses invested ment “Kobe call for Action for Biodiversity” to foster US$45 billion annually to preserve biodiversity and international cooperation and engagement of the ecosystem services (TEEB, 2010). private sector in the preservation and sustainable use of natural resources in 2008. Estimates point to 3,000 companies around the world as responsible for negative environmental externalities The World Bank International Financial Corporation that sum up to US$2 trillion net present value in 2008 (IFC) also launched the Sustainability Framework in (UNPRI, 2011). Such externalities have threatened 2006. Its objective is to foster transparent social and their own businesses and are represented by green- environmental practices that will positively contribute house gas emissions (69% of total), water overuse and to development. With a series of environmental and contamination, particulate emissions, waste and over social sustainability policies, as well as performance exploitation of timber and isheries (UNPRI, 2011). standards, the Sustainability Framework guides main Ecosystem services (ES) can be deined as ben- bank clients to do business using sound social and eits originated by ecosystems perceived by human environmental practices, which are transparent and populations (MA, 2003). This concept emerged at the contribute with positive impacts (IFC, 2012). Perfor- end of the 70’s as a way to raise public interest on mance Standard 6 should be emphasized: biodiversity biodiversity conservation. Efforts to estimate their conservation and sustainable management of natural economic value started in the 90’s and the Millen- resources. Its main objectives are: to protect and nium Ecosystem Assessment contributed to including promote the conservation of biodiversity, to maintain this theme in public policies agenda in 2003(Gómez- the beneits originated by ecosystem services, to pro- Baghettun, 2009). mote sustainable management of natural resources by adopting practices that integrate conservation needs Currently ES have been included in economic debate, to development priorities (IFC, 2012 a). mainly due to the many international efforts to engage the private sector in the conservation of natural The G8 and ive large emerging economies (South resources. Additionally, companies that do not take ES Africa, Brazil, China, India and Mexico) started in 2008, into account in their businesses run several risks such a study called The Economics of Ecosystems and Bio- 11

diversity – TEEB. The study was published to inform Development Objectives after 2015. A working group several sectors, including entrepreneurs, about the of 30 experts was established to propose an innovat- economic beneits of biodiversity, the cost of losing ing solution to fund sustainable development. biodiversity and the deiciency in adopting protec- tion measures compared to the cost-effectiveness of conservation (TEEB, 2010). Ecosystem Services in Brazil In 2010 the Jakarta Charter on Business and Biodiver- sity was published with a number of considerations Main initiatives that approach the topic of ecosystem about the importance of including biodiversity and services in Brazil have started in the 90’s with the ecosystem services in business in 2010 (CBD, 2010). creation of ICMS Ecológico (tax on the circulation Finally, in 2011 the Global Reporting Initiative (GRI) of goods and services). Several Brazilian states have issued guidelines for companies to include ecosystem created regulations to compensate for the “lack of services in their performance management reports productivity and consequently of tax collection” of (Sustainability Reporting Guidelines). protected areas located in their territories. Approxi- The government of the United Kingdom published in mately 5% of the total ICMS (Brazilian Tax on the 2011 the National Ecosystems Assessment, with the Circulation of Goods and Services) collected by the purpose of providing an encompassing general overview states can be used in protected areas (TNC, 2012). of the status of natural environments in the United The National System of Conservation Units (SNUC – Kingdom and of showing how to value them properly. law 9.985/2000) established some tools in an attempt In an effort to estimate national natural wealth, based to generate resources for the CU’s for providing on this study, the German Department of Environment, ecosystem services for society. Public and private Food and Rural Affairs (DEFRA) showed how natural organizations responsible for water supply, power ge- resources have been overused and undervalued. The neration and distribution or that use water resources study focuses on enhancing decision making processes, and beneiciaries of a CU must contribute inancially guiding more assertive investments, pointing out new for the protection and implementation of such CU ways to generate wealth and employment and increas- (art. 48 of law 9.985/200). In the same way, to obtain ing human wellbeing (UNEP-WCMC, 2011). the environmental license for a signiicant environ- Among the many resolutions drafted at Rio+20 in mental impact project, entrepreneurs must support 2012, the launching of a process to deine sustainable the implementation and maintenance of Integral development objectives is worth mentioning. The pur- Protection CUs. SNUC also favors owners of Private pose of this set of goals is to replace the Millennium Natural Heritage Reserve (RPPNs, the acronym in 12 CEBDS Brazilian Business Council for Sustainable Development –

Portuguese) by exempting them from the Rural Terri- should be invested in environmental projects, and the tory Tax of protected areas (Brazil, 2000). Bill to create a National Policy for Environmental Ser- vices Payment (PL 792/2007). This Bill was introduced The Socio-environmental Development Program for in Brasilia in 2007 and aims at compensating initiatives Family Production (Proambiente), created in 2000 by of ecosystem services restoration and conservation. civil society and adopted by the Ministry of the Envi- 28 initiatives have been identiied for the payment of ronment (MMA, the acronym in Portuguese) in 2003, environmental services and REDD+, among pieces of certiies crop growers and cattle ranchers that use less legislations at state level, federal decrees and other impacting practices in their production, such as not us- federal bills still under discussion (Santos et al., 2012). ing pesticides or implementing agro forest systems. In addition to ethical and environmental considerations Additionally, other public policies currently under and public policies that regulate the use of natural implementation phase include ecosystem services. resources, there are also solid economic arguments to As is for example, the case of the green income tax, support companies to adopt sustainable principles and which proposes that a percentage of the tax levied practices in their business decision making. 13

What is CEBDS?

The Brazilian Business Council for Sustainable Devel- and put entrepreneurial sustainability into practice. opment is a non-proit civil organization, founded in There are 5 working groups that meet every 45 1997 with the purpose of fostering sustainable devel- days and discuss issues about the following themes: opment among companies that do business in Brazil. water, biodiversity and biotechnology, communica- CEBDS members include Brazil’s major companies. tion and education, sustainable inancing, energy and CEBDS is also the national chapter of the World climate change. Business Council for Sustainable Development (WBCSD) network, with more than 60 national and CEBDS is responsible for the Council of Sustain- regional councils in over 30 countries to disseminate ability Leaders, a Forum that meets with CEOs of a new way of doing business around the world. member companies and the minister of the Envi- ronment, Mrs. Isabella Teixeira on a regular basis. CEBDS was the irst institution in Brazil to discuss sustainability in line with the Triple Bottom Line con- CEBDS has participated in all United Nations Con- cept, which guides the actions of companies based on ference of the Parties (COP) on Climate Change three pillars: economic, social and environmental. To- and Biodiversity at side events and/or publications day CEBDS is an Avant-guard reference in sustainabil- since 1998. ity, for businesses and governments. It is recognized CEBDS also sponsors several events, as the Inter- as the main business sector representative leader in national Congress “Sustentável” every two years a revolutionary process of change: to transform the with major public and private sector experts, traditional economic model into a new paradigm. universities and NGOs for more up-to-date discus- Its mission is to integrate the principles and prac- sions about sustainability. tices of sustainable development into the business At present 74 large company groups at CEBDS context, thus conciliating the economic, social and represent about 30% of the national GDP and environmental dimensions. come from several different sectors: financial capi- CEBDS is organized in different working groups tal, power, transportation, steel industry, metallurgy, formed by technical professionals and business man- civil construction, consumer goods in general and agers to discuss solutions for common problems services. 14 CEBDS Brazilian Business Council for Sustainable Development –

What is CTBio?

The Biodiversity and Biotechnology Working Group (CTBIO) was created in 1998 and it is formed by 50 companies of the following sectors: oil and gas, steel industry, biotechnology, paper and pulp, cosmetics, beverages, chemical products and agriculture. Its main objective is to promote economic and social development and to preserve biodiversity.

CTBio’s Work Plan

In 2010, CEBDS member companies that par- In order to meet the purposes of the work plan, a ticipate in CTBio committed to inding a better survey was prepared to collect information about how relationship between businesses and biodiversity much participants knew about the theme and to select and ecosystem services by means of a work plan tools for assessing and valuing ES to be presented for 2011-2012 with the following objectives: in future workshops. The irst workshop presented general concepts about biodiversity and ecosystem 1 To identify, publicize and encourage the adoption services. The three following workshops presented of good business practices related to biodiver- the tools InVest – Integrated Valuation of Ecosystem sity and ecosystems management, in order to Services and Tradeoffs, ARIES – Artiicial Intelligence minimize and compensate for their impacts, as for Ecosystem Services and BET – Business Ecosystem well as to support their conservation, sustain- Training. Public policies and private sector approaches able use and beneit sharing linked to their use; on biodiversity and ES were discussed at the last workshop. A second survey was carried out at the end 2 To identify and test different methodologies and of the process to identify possible knowledge acquisi- approaches to value biodiversity and ecosystem tion and gaps. The results of both surveys are included services for business purposes; in the next session. 3 To share experiences of the corporate sector in Brazil regarding the biodiversity and ecosystem services agenda. 15

Ecosystem Services and the Business Sector

Relevant information was collected on the main perceptions about biodiversity and ecosystem services of business representatives based on a questionnaire prepared in 2011 and replicated at the end of the train- ing workshops of CTBio in 2012. The main goal of the survey was to identify the dificulties and needs of the companies in order to include the theme into their planning and management processes. Applying the questionnaire again in 2012 was useful to assess whether during the training process business representa- tives’ perception had changed regarding this matter.

Companies Discussing and integrating the is- and sectors sue into business strategies The following companies participated in the survey: The results of the survey show that, in general terms, GE, Alcoa, Eletrobas, Vale, SHV Gas Brasil, Cetrel S.A, all the interviewed subjects have some degree of un- Petrobras, EBX Holding, Chemtech, Monsanto do Bra- derstanding of what ecosystem services are. The sur- sil Ltda, Braskem, Plantações Michelin da Bahia Ltda., vey pointed out that in 2011 most companies (67%) Suzano Papel e Celulose, Natura Cosméticos, ETH discussed the matter of ecosystem services internally Bioenergia, Votorantim Industrial, Det Norske Veritas, and that the discussion about the topic was partially Anglo American, Cemig, Copel, Furnas and Fibria. The integrated into their business strategies. In 2012 22 assessed companies represent 10 different econ- debate in most companies is still underway (65%), but omy sectors: power, services, mining, paper and pulp, half of the responders pointed out that these discus- oil and gas, multi sector holding, agriculture, chemical sions have not been integrated to the company’s industry, equipment and cosmetics. strategies (igure 2).

Power 100

Services 90 5% 30 5% 80 Mining 50 5% 23% 70 Pulp and Paper 9% 60 Oil and Gas Not Integrated 50 9% Partially Integrated 14% Multisector holding 40 60 Fully Integrated Agriculture 30 9% 44 Chemical 20 9% 14% 10 Equipments 0 6 10 Cosmetics 2012 2011

Figure 1. Sectors represented in the survey Figure 2. Integration of ES into company strategies 16 CEBDS Brazilian Business Council for Sustainable Development –

100 90 80 70 Maybe 60 50 No 40 Yes 30 20 10 0 Food Habitat Pollination Fresh water Water cycle Biomass fuel Pest mitigation Erosion control Nutrient cycling Climate regulation Disease mitigation Genetic resources Primary production Water flow regulation Biological raw-materials Natural hazard mitigation Maintenance of air quality Ethical and spiritual values Maintenance of soil quality Recreation and ecotourism Educational and inspirational values Water purification and waste treatment Biochemicals, natural medicines and pharmaceuticals and medicines natural Biochemicals, Figure 3: Ecosystem services relevant to businesses 2012.

Ecosystem services relevant Company likelihood of exposure to business to risks and opportunities Companies’ representatives who answered the When asked in 2011 how likely their companies were questionnaire in 2011 realized that several ecosystem to be exposed to a number of risks and opportunities services are relevant to their business activities. Results related to ecosystem services, most representatives show that the maintenance of air quality, biofuels and pointed out that they were very likely to be related fresh water were the ecosystem services considered to carbon credit markets and water basins protec- most relevant in these companies, 90% of the respond- tion mechanisms. Right after that, they mentioned the ers checked them. On the other hand, the following ES risk related to cost of water increase as something were pointed out as least relevant: leisure and ecotour- very likely to happen. On the other hand, respond- ism, food production and natural medicine. ers considered that risks related to customers’ loss due to certiication processes adopted by competing In 2012 the following ES were pointed out as most companies are unlikely to occur. relevant by participants: fresh water, regulation of water lows and erosion control, while biochemical, The second time the survey was used, answers ethical and spiritual values and food were the least were reclassified in agreement with the WRI relevant ( igure 3). (2012) definitions of risks and opportunities: regu- 17

latory and legal, reputational, financing, operational and market and product. Thus, responders have • To foresee negative impacts for businesses; pointed out that it is very likely that companies • To survey ES impacted by the companies; will be exposed to regulatory and legal risks, fol- lowed by reputational and financial risks. According • To monitor operations; to responders, it is highly unlikely that companies • To carry out preliminary surveys for project plan- will be exposed to market and products risks, dif- ning purposes. ferently from the previous survey, in which carbon credit markets and products had been mentioned. They also believe that opportunities are also related to regulatory and legal aspects, followed by operational and reputational opportunities. They Companies’ initiatives for the have pointed out as well that it is very unlikely that opportunities and risks related to markets conservation of ES and products will arise. In spite of the barriers mentioned, the survey revealed that most companies have adopted some kind of Assessment of the relationship positive action for the environment. Among the main actions reported, the following should be emphasized: between business and ES Restoration of degraded areas, changes in the opera- The number of companies that carried out some tional systems to reduce the use of natural resources kind of ES assessment has increased in 2012 in and measurement of the use of natural resources. comparison with the previous year’s survey (igure Other actions such as communication actions, reduc- 4); and 75% of them have carried out assessments tion of the consumption of natural resources in the over the last year. productive chain and support to NGOs’ environmen- tal projects have been mentioned. Representatives of the companies that have already car- ried out some kind of assessment and survey about ES state that the main objectives of their assessment were:

7% 12%

Yes Yes 60% 33% 47% No 41% No I don’t know I don’t know

2011 2012

Figure 4. Companies that carried out an ES assessment in 2011 (left) and 2012 (right) 18 CEBDS Brazilian Business Council for Sustainable Development –

Barriers to carrying out ES Not valued by assessments the company

The results of the survey point out that the main Lack of knowledge barriers to ES assessments were the same both about tools times the questionnaire was answered. The lack of No regulatory understanding about the value of the ES assessment requirements 2012 for the company was pointed out as the biggest 2011 barrier to including the theme, followed by the lack No trained team of knowledge about the tools or strategies to be used and the absence of regulatory requirements No knowledge (igure 5) in 2011 and in 2012. When they point out about ES that there are other barriers to the assessments, No resources responders indicate that this is not a priority theme in the high management agenda, and that tools are No barriers dificult to apply and they must still be customized, which will demand time and resources. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Figure 5. Main barriers to carrying out ES assessments in companies.

Reasons to include ES in Business opportunities business operations Business dependence When asked about what would be the possible argu- Image improvement ments to motivate companies to include the concept Risk reduction of ecosystem services into their management sys- tems, the following were mentioned in 2011: business Business excellence excellence, their business dependence on ecosystem Consumers demand services, the threat of climate change, consumers’ demands, to stay competitive ensuring the longevity Operations longevity of their operations, and cost reduction in the medium Competitiveness and long run. Respondents’ perception of the theme To integrate all changed in the 2012 assessment. First of all, they environmental issues pointed out that the most convincing argument to To contribute motivate the inclusion of the theme in business activi- to conservation ties was to emphasize business opportunities, that Climate change is, to build a business case. Secondly, business depen- 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% dence on ES, image enhancement and risk reduction

(igure 6). Figure 6. The main reasons for companies to include ES voluntarily in their operations (2012) 19

Public policies and ES The fact that public policies must support the inclu- Government must strengthen management of pub- sion of ES in businesses was mentioned several times lic institutions, as well as the implementation of during the workshops. There is a clear recognition mechanisms to protect ES (MMA, IBAMA – Brazilian that public policies must relect the need and op- Institute for the Environment and Natural Resources erational capacity of the private sector in their ES and ICMBio – Chico Mendes Institute for the Conser- maintenance agenda. vation of Biodiversity) so that the proper ES pro- Responders pointed out that initially regulations on gram can be put in place. The public sector acting as the use and impact of ES will be necessary. The ratio- regulator must deine rules, inspect and encourage the nale is that well deined and feasible regulatory frame- participation of the private sector. works would help companies to manage the theme The survey has revealed that companies could interact internally. Such regulations must be broad and include with the government to improve environmental licens- both the impacts caused by ES, as well as companies’ ing processes, especially on impact assessment and degree of dependence on them. include the dependence between businesses and ES. In addition to the regulation itself, responders believe that incentives must be created, including iscal incen- There is expectation that, in order for the theme to tives for those who provide and promote the conser- be actually included in the environment agenda, ES vation of ES. Thus, expectations point out to the fact surveys must be carried out in the states of the coun- that in addition to reducing taxes and credit fees for try, thus building a data base with information on ES. companies that invest in protecting ecosystems, public Businesses have also pointed out that a joint effort is policies must develop Payments for Ecosystem Services necessary to strengthen and disseminate a culture that programs (PES) and participate in PES markets. appreciates ES. 20 CEBDS Brazilian Business Council for Sustainable Development –

Tools to assess ES

Companies’ representatives stated that the most suitable tool to assess ES has to present the following characteristics, in order of importance (igure 7):

Consider availability of data about Brazil

Detailed ecological analyses

Results expressed in space

Time to implementation

Implementation costs

Generate different scenarios

Adaptable to different scales and places

ESs assessment

0% 20% 40% 60% 80% 100% 120%

Figure 7. Desirable characteristics of the ES assessment tools.

They have also mentioned that transparency is The tools described below were introduced during necessary to facilitate communications and decision CTBio work program workshops. making, to support management objectives and ES monitoring mechanisms and to have the capacity to integrate internal management systems. Tool main Tool Creators Target users Purpose characteristics Access at:

Invest - Integrated Natural Capital Project, Governments, Assesses stocks of Considers multiple ES; naturalcapitalproject. Valuation of a joint initiative of businesses, non- several ES, compares Spatially explicit; org/InVEST.html Ecosystem Services NGOs TNC, WWF/ governmental scenarios and offers and Tradeoffs USA and Minnesota and organizations the possibility to value Based on scenarios; Stanford Universities. and multilateral these aspects in a given Biophysical and socio- institutions. territory. Provides the economic results; possibility to compare Uses simple and different decisions and complex information; their consequences to strengthen ES and their impacts on economy and societies.

ARIES - Artiicial Developed jointly by Researchers, Set of applications to Customizable ariesonline.org Intelligence for the Ecology Institute non-governmental map and quantify ES Web-based; Ecosystem Services (Instituto de Ecologia organizations, lows from the source - INECOL), UNEP government agencies, to end users. Helps Offers scenario (United Nations private businesses, users in basic studies, analysis and modeling; Environment Program), land use planners and as well as on the Calculates estimates the World Conservation managers, legislators, assessment of impacts in cases of scarcity Monitoring Center), teachers and students. over different future of data; the University of scenarios. Spatially explicit. Vermont, Basic Center for Climate Change, International Conservation and Earth Economics.

BET - Business WBCSD – World Health, Safety, To develop professional It is a 4-module wbcsd.org/work- Ecosystems Training Business Council Environment and skills, to deepen training program: program/ecosystems. for Sustainable Sustainability knowledge and aspx Development in Experts, as well as understanding of 1. Relationship collaboration with professionals of decision makers and between ecosystems and business. KPMG and an advisory the inancial sector, supplement current committee. acquisitions or local training programs. 2. Impacts and business managers. dependence of businesses on ES. 3. Valuation of Ecosystem Services (ES). 4. Managing and mitigating business impacts on ecosystems.

CEV - Corporate WBCSD, Interna- Companies of all To value ecosystems It is a methodology wbcsd.org/work- Ecosystem Valuation tional Union for the sectors, mainly those and help to improve to improve decision program/ecosystems/ Conservation of that have an impact corporate performance, making processes cev.aspx Nature (IUCN), World or depend on ES in reach social and in companies using Resources Institute any link of their value environmental goals and ecosystem assessment (WRI), Environmental chain. good inancial results. techniques. It is a Resources Management 5-step process that (ERM), Pricewaterhou- includes screening, seCoopers (PWC) and planning for the tested in 14 companies. assessment processes, assessment itself, use of results and integration into business practices. 22 CEBDS Brazilian Business Council for Sustainable Development – Case Studies

Case studies of initiatives to preserve biodiversity and ecosystem services were collected from 12 CTBio member companies. We intend to disseminate this information in order to share experience and encourage other companies to adopt similar initiatives. In spite of different approaches, actions have the common goal of developing good management practices, reducing illegal deforestation, establishing partnerships with public authorities and NGO’s, restoring degraded areas and estab- lishing ecological corridors, as well as maintaining natural capital in private areas. 23

BAnCO DO BRASIl

Promoting the protection and 4. New businesses rational use of water: Programa actions to improve business models, and expand Água Brasil the product and inancial services portfolio with socio-environmental contributions to the bank. Banco do Brasil (BB) is a key player in the promotion of sustainable development in the country, both because Contributions of the Brazil of its attitude regarding socio-environmental responsi- bility that can generate new consumption patterns, and Water Program to the Financial because it is one of the main public policy agents. Sector: The Brazil Water Program (Programa Água Brasil) was launched by Banco do Brasil in partnership with Banco do Brasil Foundation, the WWF-Brazil and the National Wa- 1 BB and the WWF organized the “Biodiversity ter Agency (Agência Nacional de Águas - ANA) in 2012. for Banks Workshop”, promoted by the Ecuador Principles Association, the WWF-USA and the The purpose of this program is to foster the develop- BBOP - Business and Biodiversity Offsets Program ment and dissemination of sustainable production prac- in March, 2012. The goal of the workshop was to tices and techniques in rural areas, to promote respon- contribute to the inclusion of biodiversity and sible consumption and solid waste recycling in cities. ecosystem services in the decision making process The program has a 57 million Reais budget in nonre- of inancial institutions and participating companies fundable resources for the irst 5-year period of the involved in large projects inancing. partnership and it is divided in 4 areas: 2 Banco do Brasil published the Sustainability 1. Socio-environmental Projects: Guidelines for Credit for the agribusiness and Rural areas – actions in 14 micro watersheds power sectors with water, biodiversity, forest and representing Brazilian biomes, thus promoting the climate change as crosscutting themes in 2012. improvement of water quality and the expansion of Its goal is to enhance the deinition of credit lines the natural vegetable coverage through sustainable criteria. Such guidelines were assessed by 50 stake- agriculture and best production practices. holders’ representatives that have a business rela- tionship with Banco do Brasil (employees, clients, Urban areas – actions to change the behavior and sustainability experts, shareholders, civil society values regarding production, destination and recy- organizations, suppliers and business partners). cling of solid waste in 5 cities in different regions. 3 A preliminary discussion on the study currently 2. Communications and engagement developed by professor Jorge Madeira – UNB actions to raise awareness about the need of water (National University of Brasilia) titled “Financial resource conservation and disseminate best prac- Sector, Agriculture and Cattle Raising and Natural tices resulting from socio-environmental projects. Capital: from Rio92 to Rio+20, with a perspective 3. Risk mitigation towards Rio+50” took place at Rio+20 (Setor Financeiro, Agropecuária e Capital Natural: da actions geared towards improving socio-environ- Rio 92 à Rio+20 com uma visão prospectiva da mental criteria used in Banco do Brasil inancing Rio+50). and investment processes. 24 CEBDS Brazilian Business Council for Sustainable Development –

used in contracted construction projects as of 2009. CAIxA ECOnôMICA The purpose of the initiative is to contribute to the FEDERAl reduction of illegal deforestation by increasing the demand for products with a legal origin. legal Timber Action (Ação Ma- Under a contract provision, entrepreneurs must pres- deira legal) – Promoting the ent the licenses corresponding to the timber used by the end of the construction work - Forest Origin Conservation of Forests and the Document (Documento de Origem Florestal – DOF) Maintenance of Ecosystem Ser- or the Bill of Forest Transportation (Guia de Trans- porte Florestal) and the statement of volumes and vices destination of timber used in the construction work. Caixa Econômica Federal is a state-owned company In addition, the contractor must also be registered founded in 1861that inances construction works and with the Federal Technical Registry (Cadastro Técnico projects all over the country, in priority sectors such Federal -CTF) at IBAMA. as housing, basic sanitation, infrastructure and services. The documents required track the timber and conirm Caixa carried out a survey to collect information about if it comes from a native forest, with a forest manage- the types of uses, origin and main kinds of timber in ment plan and a deforestation permit or with licensed projects inanced by the institution in 2008.This diag- forest management plans. nosis identiied that more than 80% of the timber used In order to make this initiative a success, it is necessary in structures of coverage, lining, loors, frames, scaffolds articulate action with federal authorities and advertise it and struts of projects in which Caixa was involved as throughout the civil construction sector to clarifying the the inancing agent came from the Amazon region. procedures to register and obtain DOF from IBAMA. CAIXA is a signatory to the Federal Government So far, in these 3 years of program enforcement, the Green Protocol and is in agreement with the mea- number of companies with irm contracts with Caixa, sures to ight deforestation of the Amazon, through registered at CTF with IBAMA and authorized to the Action Plan to Protect and Control Amazon De- transport native timber with DOF or state documents forestation (Plano de Ação para Proteção e Controle has risen from 8 to 485. One of the future goals of the do Desmatamento na Amazônia -PPCDAM) and is program is to reach out and include other banks to en- committed to inancing and supporting development courage the use of legal timber in all inanced projects. with sustainability. Thus, in partnership with the Brazil- ian Environment Institute (IBAMA) and the Environ- ment Ministry (MMA), Caixa launched the Legal Timber Action in 2009. CEMIg The initiative is a set of measures articulated by Caixa, IBAMA and the MMA to monitor the origin of the Developing technologies to pro- timber used in the construction works of the housing projects inanced by Caixa. The main purpose of the mote the conservation of eco- program is to reduce illegal deforestation in the Ama- system services zon by monitoring the use of timber, from the source to the inal destination in housing projects. Caixa now Cemig is an open corporation controlled by the requires the proof of legal origin of the native timber Government of the state of Minas Gerais. It is consid- 25

gallery forests have been reforested and 50 water springs have been recovered. The Program also includes new studies underway to assess gallery forests, their contribution to carbon sequestration, to succession and natural regeneration processes and to attract fauna species, thus proving the effectiveness of these areas to promote the conserva- tion of the biodiversity of the riparian environments. In order to promote the conservation of ishery resources and to favor the communities of the water basins where their power plants are located, the Live Image courtesy of CEMIG Fish Program (Programa Peixe Vivo) was launched in 2007 with the purpose of protecting ish species from the impacts of hydropower plants, focusing on ered the largest integrated company in the Brazilian three drivers: the conservation of species, support to electrical power sector, and since 2000 is listed in the research work and the engagement of communities. Dow Jones Sustainability World Index. This index is a reference to assess companies committed to sustain- Integrated actions have been developed to produce ability in the stock market. and free ish-seeds; develop transposition systems; structural and operational adjustments and monitor Among efforts made towards sustainability, it is worth ish populations. stressing Cemig actions in favor of recovering gallery forests, preserving isheries, genetic resources and Results reached so far include: the development of so- controlling invasive exotic species in their plants. lutions and technologies to reduce the direct impact of hydropower plants on ish fauna, thus reducing ish The Gallery Forest Reforestation Project (Programa de stock death in Cemig power plants by 87%; the re- Relorestamento Ciliar), started in 1990 with a contract lease of ish-seeds of native species, with the purpose signed between the Federal University of Lavras (UFLA) of preserving local biodiversity, the stocks of ishery and partner rural land owners and was triggered by resources and ensuring the genetic feasibility of ish the need to recover company’s degraded areas. The populations and the food safety of local communities. project was soon expanded to the recovery of gallery forest areas included in the Forest Code. Today, with In order to ight invasive exotic species at hydropower the environmental regulation of the projects authorized plants, mainly the golden mussel (Limnoperna fortu- before the Brazilian Environmental Law was enacted, nei), Cemig has developed research work and tested this initiative has become a requirement for Operating methodologies to control this species since 2002. This Licenses granted to the power plants. mussel is originally from Asia and its reproductive As part of the Program, Cemig supports 3 for- characteristics favored quick dissemination through- est nurseries, with a capacity to produce 600.000 out the rivers of the southern part of South America seedlings/year and a Forest Seeds Laboratory. Ap- and become a threat to native aquatic species and proximately 60 species are cultivated including native to industries that use raw water in their production species from the Atlantic Rain Forest and from the process. Cerrado, as well as species used in urban forestation. In spite of the damage caused by the invasion of this Throughout these years, one thousand hectares of species to their facilities, the company founded the 26 CEBDS Brazilian Business Council for Sustainable Development –

Bioengineering Center for Invasive Species in Hydro- in Brazil, Colombia and Chile. All companies of the power Plants (Centro de Bioengenharia de Espécies Group use natural resources directly in their produc- Invasoras de Hidrelétricas – CBEIH), with the purpose tion chain and thus recognize their dependency on of developing solutions to control the environmental, biodiversity and consider them an integral part of industrial and economic impacts caused by exotic spe- their business. cies. The Center is active in bioengineering, modeling Consequently, the biodiversity strategy of the Group and environmental education. Sustainability Plan focuses on the following themes: Conservation units, endangered, endemic and rare spe- cies, sensitive environments, water resources manage- ment, environmental services and ecological corridors. EBx Therefore, the Group preserves its Private Natural Heritage Reserve (RPPN) Engenheiro Eliezer Batista, with 20,000 ha to protect the Amolar Mountain Support for the conservation of Range. It is one of the highest concentration areas of priority areas for biodiversity in jaguar (Panthera onca) in the Pantanal area, a com- plex environment at the border between Brazil and Brazil, Chile and Colombia Bolivia, formed by mountains up to 1,600 m high in The EBX Group is formed by six companies in the the middle of the wetland plains. The RPPN is a part of areas of oil and gas, power, logistics, mining, offshore the Amolar Mountain Range Protection and Conser- ship building industry and coal mining, which operate vation Network, together with the Pantanal Mato- Haroldo Palo Jr, 2006 Palo Jr, Haroldo 27

grossense National Park and the RPPNs of Acurizal, of Environment, which has established that 10% of Penha, Dorochê and Rumo ao Oeste, in a total area the land ecosystems in the Atacama region are to of 292,000 ha. This Network, a partnership with the be protected, as well as the distribution areas of the Homem Pantaneiro Institute, Ecotrópica Foundation, endangered species. ICMBio, Acaia Institute and the Environmental Military Police, is supported by the EBX Group for manage- ment of protected areas. EBX Group in partnership with the Caatinga Associa- tion inanced the creation of 10 new RPPNs in the ETh BIOEnERgIA state of Ceará, through the Preserved Caatinga Proj- ect (Projeto Caatinga Preservada) a total area of 3,570 Restoration of degraded areas ha in the “Caatinga”, one of the most endangered and and promotion of forest frag- unprotected Brazilian ecosystems. The Group also supports the Caatinga Association in studies about ments connection economic incentive mechanisms to preserve biodiver- ETH Bioenergy is focused on the production, trading sity and environmental services generated by RPPN. and logistics of ethanol, sugar and electrical power EBX Group also helps protect the “restinga”, a much generated from sugar cane in the states of São Paulo, endangered environment, by creating and maintaining Goiás, Mato Grosso do Sul and Mato Grosso. the Curuara RPPN in Rio de Janeiro. It is the largest The company has two crop production areas in the RPPN in the country with 3,845 ha to preserve this western border of the state of São Paulo, at the environment. The Group also supports National Parks Pontal do Paranapanema region. This region is 12 at Lençóis Maranhenses and Fernando de Noronha, thousand km long and encompasses 21 municipalities in partnership with the Brazilian Biodiversity Fund and it is an extremely important area for biodiversity (FUNBIO) and ICMBio. conservation. There are two Conservation Units The Group in partnership with the NGO Conserva- (CUs) in the region: The Morro do Diabo State Park tion International (CI) fosters the development of (Teodoro Sampaio municipality – SP), one of the research work to enhance the protection of biological largest remaining areas of Atlantic Rain Forest in the diversity and ecosystem services in the Guajira region state and the Mico Leão Preto Ecological Station. in Colombia. In agreement with the development pro- posal for local communities, a network of protected areas has been implemented and a local proposal of Payment for Ecosystem Services (PES) for water and biodiversity of watersheds in the region of impact of the Group Projects is in place. The Group has created and supports the Quebrada del Morel Reserve, with 11,000 ha in the Atacama desert, Chile. The purpose of this reserve is to preserve signiicant samples of the biodiversity from the Atacama region and to support the evolution processes. Two endangered species of lora have been identiied in the reserve, Prosopis lexuosa e P. chilensis, as well as 2 vulnerable species, Copiapoa megarhiza and Geoffroea decorticans. This reserve will contribute to meet the conservation goals of the Chilean Ministry 28 CEBDS Brazilian Business Council for Sustainable Development –

and for the preservation of water resources were identiied by satellite images. These areas were highly degraded. They were previously occupied by cattle grasslands or crops that made the natural regenera- tion process dificult, thus justifying interventions including reforestation with native species. The Program has already fostered the recovery and connection of more than 700 ha of RL and APPs with 82 native lora species. Major achievements in the program:

Image courtesy of ETH • Recovery of 60% (30 ha) of APP of Laranja Azeda Creek (Teodoro Sampaio), the main source of wa- ter supply for the production process of one of the company’s units and for the community, including These areas are important for the protection of rural settlements; endangered native fauna species, mainly the black lion tamarin (Leontopithecus chrysopygus). • Recovery of an area of 21,92 ha (Teodoro Sampaio) previously used as a vinasse reservoir, a by-product ETH has implemented the Forest Fragments Connec- of one of the company’s activities; tion Program (Programa de Conectividade de Frag- mentos Florestais) as a strategy to restore degraded • Establishment of the RL of Alcídia da Gata and Santa areas, as well as to promote the integration of the Terezinha do Alcídia Settlement (Teodoro Sampaio) remaining forest fragments and to protect water bod- in partnership with the Instituto de Terras of the ies since 2007. State of São Paulo; ETH tries to stimulate the low of organisms, seeds • Implementation of a ecological corridor, in partner- and pollen to ensure the reproduction of species and ship with the Forest Institute of São Paulo, connect- the quality of the native forest areas, thus reducing the ing Morro do Diabo State Park, Mico Leão Preto local extinction with the design and implementation of Ecological Station and other small fragments, in a ecological corridors. total area of 286 ha; ETH also disseminates information among local land • Recovery of water springs at Ribeirão Bonito creek owners about the importance and need to preserve (Teodoro Sampaio), one of the main water bodies Legal Reserves (RL) and Permanent Preservation that supplies Morro do Diabo State Park. Areas (APP), as well as to comply with the envi- ronmental legislation. ETH has provided technical Permanent environmental education action was assistance to identify the most appropriate areas to implemented in local communities to inform them set-up a Legal Reserve, by prioritizing the connection about actions and results achieved to make sure that between the RL and the fragments adjacent to the recovered areas and the corridor are protected from current CUs. ires and cattle. 10 areas of utmost environmental relevance with The company is committed to keeping the environ- potential to connect to fragments of native forest mentally protected areas – both the company’s and 29

third parties’ – in agreement with legal requirements by recognizing the importance of preserving biodi- versity in areas where ETH is present. ETH acts in an integrated way, from the cultivation to the distribu- tion of products, together with social and environ- mental responsibility activities through the whole productive chain.

MOnSAnTO A partnership to preserve endan- gered ecosystems Monsanto is an agriculture technology company and works in Brazil since 1963. The company’s 36 units focus on research work, processing seeds, herbicide Suape Industrial Complex (state of Pernambuco) to production, sales, distribution and management facili- implement a forest restoration center; participation ties in 12 Brazilian states. of communities in key areas for biodiversity conser- vation; capacity building in business opportunities in Monsanto and Conservation International NGO conservation; the analyses and ield experiences to (CI-Brazil) are partners in the Produce and Preserve develop environmental service projects linked to the Program (Programa Produzir e Conservar) since protection/recovery of water courses; the creation 2008. The purpose of this program is to ight illegal of education centers geared for the preservation deforestation and the extinction of species, in addi- of the Atlantic Rain Forest in the municipalities of tion to encouraging enforcement of environmental Murici (state of Alagoas) and Serra do Urubu (state legislation. Both parties will invest US$ 13 million to of Pernambuco); the implementation of green ovens enhance the sustainability of productive landscapes in poor communities, as well as training programs for through incentives offered to good practices of soil 600 people on agroforestry systems, regional biodi- use and conservation of legal reserves (LR) and per- versity and forest restoration. manent protected areas (PPA) by 2013. In the Jalapão-West of Bahia Corridor mapping of The Program focuses on the Northeastern Biodiversity agriculture and cattle raising areas has inished, as well Corridor (Atlantic Rain Forest) and on the Jalapão- as the development of the 2020 scenario in three West of Bahia Corridor (Cerrado). These regions are sub-watersheds of Grande River, the environmental considered biodiversity hotspots, because they are diagnosis of 14 rural land properties, the mapping and among the 34 richest areas in biodiversity and, at the socio-environmental survey of three communities in same time, among the most endangered in the world, the city of Barreiras, partnerships were developed having lost 75% or more of its original vegetation. with the Federal University of Bahia and the Univer- Among other activities, the Northeastern Biodiver- sity of the State of Bahia, the Municipal Environment sity Corridor engages in the cooperation with the Secretariat of Luís Eduardo Magalhães, (LMA) the 30 CEBDS Brazilian Business Council for Sustainable Development –

Prosecution Service of the State, the Farmers and Irrigators Association of Bahia (Aiba, the acronym in nATuRA Portuguese), the Caliandra Institute and the Lina Gal- vani Institute, the 100% legal LEM PPA campaign, with Sustainable use of Socio-biodi- the Environment Secretariat of the municipality of versity products and services Luís Eduardo Magalhães, which provides technical and scientiic support to rural producers and traditional Natura is a Brazilian cosmetics company that for communities to restore degraded areas and establish more than a decade has used Brazilian biodiversity a network of seed pickers that will meet the demand assets in its products and values traditional knowl- for seeds to restore permanent preservation areas edge for business practices. (PPA) in the Jalapão-West of Bahia Corridor. The company created a production model that The 1st Workshop on the Restoration Ecology of includes direct contact with supplier communities Degraded Areas of the West of Bahia was carried organized in cooperatives and associations in sev- out, with the participation of 50 professionals from eral municipalities of Brazil. Productive chains were different organizations, including the Forest Institute established based on fair price, payment for the use of of São Paulo and the Socio-environmental Institute genetic heritage and value of traditional knowledge. (Instituto Socioambiental – ISA). This productive model serves hundreds of families Also in partnership with CI, Monsanto is one of TEEB with a value and income generation proposition and sponsor companies for the Brazilian Business Sector. fosters regional development, as well as the pres- This initiative assesses the economic value of bio- ervation of ecosystems. Thus the company encour- diversity and identiies opportunities associated to ages debate on sustainable use of socio-biodiversity sustainable use. It also intends to provide access to products, services and the valuation of ecosystem risk management tools and information, identiication services and is a role model champion of a new legal of opportunities, impacts assessment, in an attempt framework of access to biodiversity that supports to foster corporate culture change of biodiversity sustainable use of national genetic heritage and tradi- practices. tional expressions related. 31

Most of its input, as well as most of supplier commu- participation, public policies, preservation, valuation nities are located in the Amazon. Natura has chosen and sustainable use of biodiversity and culture. the region as one of its priority territories for future Natura believes that the Program will foster a num- expansion and has launched the Amazon Program ber of opportunities, based on the high innovation (Programa Amazônia) in 2011 due to its importance potential of the region by stimulating a local entre- in the ecosystem, as well as due to the services it preneurial environment to be revealed and translated provides to their business, to the country and to the into beneits for the ecosystem, the local populations world, as well as due to the potential to develop a and to society as a whole. sustainable business platform. The company intends to foster a sustainable develop- ment proposal for the region, as well as to drive new sustainable business with this program. The focus of the program is socio-biodiversity and standing forest SOuzA CRuz preservation, valuation of traditional knowledge and regional culture, based on three interconnected fronts: Biodiversity Conservation Science, Technology and Innovation; Sustainable Pro- ductive Chains and; Institutional Strengthening. Projects in partnership with non- The ST&I front sponsors and fosters a research governmental organizations and and innovation network coordinated by the NINA universities (Natura Amazonia Innovation Center – Núcleo de Inovação Natura Amazônia) center, located in Souza Cruz, a leading company in the national Manaus, in the state of Amazonas. The goal is to market, owns six of the top ten best seller cigarette involve one thousand researchers by 2020, including brands in Brazil. Souza Cruz is one of the largest Bra- Natura collaborators as well as members of science zilian business groups and participates in the whole and technology institutions. tobacco cycle, from production and processing to manufacturing and distribution of the product and is The socio-biodiversity productive chains front has a part of the British American Tobacco (BAT) group the purpose to create a network of local produc- present in 180 countries. ers and agroextractivist communities. The program wants to encourage social entrepreneurship based Souza Cruz has replicated the British American To- on investments in technology to increase production bacco Biodiversity Partnership, BAT-BP in Brazil since and the use of good practices. The goal is to increase 2007. The mission of BAT-BP is to be the catalyst Natura’s purchases of inputs from the Amazon from of knowledge, skills and resources and to promote 10% to 30%, in Brazilian Reais and to include be- the preservation and management of biodiversity in tween 10 and 12 thousand agroextractivist families in agribusiness landscapes and in the ecosystems they the productive chain by 2020. depend on. The institutional strengthening front must develop In a joint effort with non-governmental organiza- favorable business environments for program activi- tions Fauna and Flora International (FFI) and Society ties, establish partnerships to raise funding, support for Wildlife Research and Environmental Education local institutions and invest in regional development. (Sociedade de Pesquisa em Vida Selvagem e Educa- The priority themes of this front are the following: ção Ambiental -SPVS), through BAT-BP, Souza Cruz education, entrepreneurship, social justice and civil promotes alternatives to sustainable management of 32 CEBDS Brazilian Business Council for Sustainable Development –

tobacco producing lands. Efforts have been geared areas in the remaining native Rain Forest with Ar- towards raising awareness among producers about the aucaria. Santa Cruz do Sul Environmental Park was importance and need of biodiversity conservation for created inside company property under the same their crops in the municipality of Paula Freitas (State name under José Lutzemberger mentorship in 2003.In of Paraná). a partnership with the University of Santa Cruz do Sul (UNISC) Succession of Vegetable and Animal Species The main objective of BAT-BP in that municipality is in the Area of the Industrial Landill research project to create a corridor of protected areas in their real (Sucessão de Espécies Vegetais e Animais em Área de estate property, so that in addition to meeting legal Aterro Industrial) was developed and has already iden- environmental requirements, they can increase posi- tiied a new species of fungus in 2006. tive impacts on biodiversity. The region is composed of fragments of Atlantic Rain Forest with Araucarias, The company donated more than 600 ha in Private one of the most endangered ecosystems in Brazil: Natural Heritage Reserve for research and training less than 1% of its original surface area is left. projects with the community the municipality of Sin- imbu (state of Rio Grande do Sul) in 2007. Efforts made by BAT-BP have focused on broadening the scope of biodiversity preservation practices and results, including an economic approach for producers, in addition to inspiring other companies to adopt the same environmental care since August, 2012. Souza Cruz and partner NGO’s are also planning to use the SuzAnO tool Biodiversity Risk and Opportunity Assessment. The tool was developed to identify the impacts of Sustainable Extractivism and business dependence on biodiversity in agricultural maintenance of natural habitats landscapes and produce action and monitoring plans. Suzano Group is a forest-based company with more In order to reinforce the preservation of native than 88 years in the market that operates in four busi- forests, Souza Cruz is also encouraging more than 30 ness segments: paper, pulp, biotechnology and renew- thousand partner producers to eliminate the use of able energy. The group owns more than 800 thousand timber obtained from native species. Timber rep- hectares of forest areas in the states of Bahia, Espirito resents the most economical power source to dry Santo, São Paulo, Minas Gerais, Maranhão, Tocantins tobacco in the region and, through both Programs - and Piauí, including the following biomass: Atlantic Rain Friends of the Native Forest (Amigos da Mata Nativa) Forest, Cerrado, Caatinga and Legal Amazon. Out of and Reforest (Relorestar) - land owners receive the total surface area, 310 thousand hectares, that is, educational material, technical guidance and funding 39%are nature preservation areas, in the form of Legal to produce their stocks of timber from seedlings of Reserves, Permanent Conservation Areas and Private species from commercial forests grown by certiied Natural Heritage Reserve (Reservas Particulares do nursery workers. Experts on the environment and Patrimônio Natural – RPPN). biodiversity in Program “Amigos da Mata Nativa” show best productive practices and the importance of Suzano has recently started new activities in the preservation to land owners, while Program “Relore- states of Maranhão and Piauí and based on a socio- star” has the purpose of providing seedlings for new environmental diagnosis that included more than 3 reforestation areas, in addition to providing technical thousand families of the surrounding areas, has identi- management information about commercial forests. ied a challenge related to the living conditions of local Souza Cruz also supports the creation of protected populations. Many communities carried out extractiv- 33

ist activities and had free access to the areas that now These plans follow the Conservation Action Plan- belong to the company to collected products for their ning (CAP) methodology, developed by TNC, which livelihood. In order to preserve this model, Suzano identiies conservation targets and prioritizes actions developed the Sustainable Extractivism Project, with and investments. These targets, species or habitats, for the main purpose of ensuring communities access to example, are assessed as to their feasibility and threats high conservation value areas for the company, thus run. Strategies are then deined to mitigate such respecting the local culture, promoting the conser- threats and improve native areas in company owned vation of vegetable species and the maintenance of land. environmental services, mainly food provisioning. The Together with the elaboration of conservation plans, project is also meant to contribute to food safety and approximately 1,414 hectares of natural areas in the to generate income for these communities by build- states of Bahia, Espírito Santo, Minas Gerais and São ing and strengthening production chains based on Paulo are being recovered with more than 180 species vegetable extractivism. of native trees. In order to make the project feasible, after having identiied the communities that use the company area to collect fruit, extractivists were registered and trained in safety techniques and fruit collection and preservation methodologies as well as sustainable SyngEnTA management practices. The project served in 2011 1,400 people whose in- Research and technology for come derived from extractivism in 2011 ranged from food safety and ecosystems R$100 to R$1,200 per family, depending on the col- lected species: babassu coconut, pequi, bacuri, buriti and services conservation fava de bolotas, the latter is used in handcraft activities. Syngenta is a company that develops crop protection Suzano in partnership with ICMBio supports two products, biotechnology and it is one of the largest extractivist reserves: Resex Extremo Norte, in the seed businesses of the global market. municipality of Carrasco Bonito, State of Tocantins and Resex Ciríaco, in the municipality of Cidelândia, State of Maranhão. More than 3 thousand families proited from this project by purchasing equipment for babassu (Orbignya phalerata) processing and by participating in training programs on sustainable management tech- niques for extractivists in 2012. Suzano in partnership with the NGO The Nature Conservancy (TNC) also develops biodiversity con- servation plans in all states covered by their forest areas in the Atlantic Rain Forest, Cerrado, Caatinga biomes and Legal Amazon. The purpose of this effort is to ensure recognition of the importance of native areas through appropriate management and biodiver- sity monitoring. 34 CEBDS Brazilian Business Council for Sustainable Development –

Syngenta created the Center-South Project for Beans perimental Station (São Paulo State). The composition and Corn (Projeto Centro-Sul de Feijão e Milho) to and relative abundance of species are used as potential promote the inclusion of small producers in a highly environmental impact indicators for Syngenta activi- competitive market, thus offering them access to ties in the area. Since the irst studies were carried technology and training in good agriculture practices out in 2002, strategies have been adopted to recover in 1990. the original biodiversity, such as connecting forest In the project small crop growers are trained in the fragments, managing water bodies and invasive aquatic right and safe use of crop protection products and vegetation, controlling wild animals that disperse techniques to reduce soil wear and erosive processes. seeds and pollinators. Today the reserve is a sanctuary Thus the productivity of traditional beans and corn for rare species. The 2010 inventory found 157 bird crops is increased, as well as the proit, while water species and 13 mammal species, a 24% higher diver- and biodiversity resources are preserved. sity content compared to the previous study in 2005. There was a signiicant increase of the rate of species In 2010/11, 7,957 crop growers participated in small associated to forest habitats and of aquatic species. meetings, ield days, ield tours, large meetings and training programs in 46 municipalities in the state of Paraná until 2010. The company implemented 64 demo units for beans and 63 for corn where sustain- able agriculture techniques were developed. VAlE The company created the School in the Field Project Investments in protected areas (Escola no Campo) to train the new generation of crop growers twenty years ago. Children and adoles- to preserve and maintain natural cents from 150 municipalities in 11 Brazilian states- Capital more than 400 thousand public schools students have gained awareness of critical issues for food safety, qual- Vale is the second largest mining company in the ity of life and natural resources preservation. world and the largest private company in Latin America. Vale issues sustainability reports in confor- Syngenta in partnership with The Nature Conservancy mity with the GRI protocol since 2006 and in 2009 it (TNC) NGO, municipal governments and the Environ- implemented the Sustainable Development Policy and ment Secretariat of the State (SEMA) of Mato Grosso a number of internal requirements integrated into its has promoted the conservation of legal reserves and Environmental Management System (2012) to include permanent protection areas in 2006. Legal Lucas do Rio biodiversity management to their operations. The Verde Project (Projeto Lucas do Rio Verde Legal) and Greener Soy (Soja Mais Verde) program in rural estate next step is the Biodiversity Standard currently under properties in this and in 13 other municipalities of the validation by business units in the different countries Alto Teles Pires region in the state of Mato Grosso where they are located. map rural properties to identify environmental assets Vale helps protect more than 12,4 thousand km2 of and liabilities, in conformity with the current legislation. natural areas in Brazil, including the company’s rural This is the largest soybean producing center in Brazil, properties and protected areas in partnership with responsible for about 10% of national production. local governments as a part of its commitment to The company created the Fauna 2010 project, thus sustainability. making inventories and periodically monitoring the Vale started projects to value its own protected vertebrate fauna of a reserve area of Holambra Ex- areas with the purpose of showing that costs of 35 Image courtesy of Vale Image courtesy of

maintaining protected areas are actually investments creek located in Vale’s RPPN, provides about 70% of in the conservation and maintenance of natural capi- the city’s water supply from the water spring to the tal and human well-being in 2011. water station. Vale owns 17 private natural conservation areas, Results estimate a value of R$11,8 million for carbon of which 12 are RPPNs (Private Natural Heritage stock; R$23,3 thousand and R$6,7 million for the Reserve) and ive are currently underway, in a total preservation of soil fertility and erosion prevention, area of more than 120 km2 of protected areas in respectively. Finally, the water supply service pro- the state of Minas Gerais. Vale and Conservation vided by RPPN Córrego Seco to Itabirito City was International NGO are working on an Integrated estimated around R$3.7 million/year at market price, Management Plan for Vale’s protected areas located that is, the value RPPN Córrego Seco offers for free in the region known as “Quadrilátero Ferrífero”. A for Itabirito City. These are only some of the beneits valuation project has estimated the carbon stock and natural resources that Vale’s RPPNs in Minas in vegetation, the preservation of fertility and the Gerais provide to the company and to the surround- prevention of soil erosion, water resources and ing communities at no any additional cost. environmental assets with potential for direct use. In the case of water resources, the value of water sup- Vale is also involved in a valuation exercise for Vale ply provided by RPPN Córrego Seco to the city of Natural Reserve (Linhares / Espirito Santo) in part- Itabirito (state of Minas Gerais) was calculated. Seco nership with the University of California and other 36 CEBDS Brazilian Business Council for Sustainable Development –

national and international research institutions. In addition to valuate ecosystem services, this study includes the estimated value of the Reserve itself, which represents one of the main of Atlantic Rain Forest protected areas in the country (approximately 230 km2) with endangered species of the biome, such as the red-billed curassow (Crax blumenbachii), the “harpy eagle” (Harpia harpyja) and the jaguar (Panthera onça).

VOTORAnTIM • Biodiversity: to identify and assess priority areas. Environmental assets • Ecosystem Services, to analyze impact relations and maintenance and management dependency in priority areas. for biodiversity and ecosystem conservation Biodiversity Votorantim Industrial (VID) is a 100% Brazilian Votorantim started in 2011 a series of georeferenced company with operations in more than 15 countries. surveys to identify the overlapping of company areas VID holds a diversiied business portfolio in cement, with conservation priority areas as stated by the Envi- mining, steel and metal industry, pulp, concentrated ronment Ministry (MMA). Fauna and lora inventories orange juice and power self-generation. are currently underway to identify species in these The company believes business growth is only possible areas. through sustainable development. Consequently, it By means of bibliographic surveys and future ield re- fosters ongoing social environmental impact mitigation search Votorantim intends to identify the conservation of operations. status of the areas and complementarily of endange- Votorantim industrial operations in Brazil basically red fauna and lora species. take place in the Atlantic Rain Forest and in the Cerra- do Region, two endangered biomass areas of major importance for the conservation of biodiversity and ecosystem services. Ecosystem Services Votorantim has deined two lines of work in order Votorantim and CEBDS, represented by the Bio- to promote appropriate management practices in the diversity and Biotechnology Working Group are understanding of the importance of supporting envi- assessing available tools to identify and rate ecosys- ronmental assets for the conservation of biodiversity tem services value. At the same time Votorantim is and ecosystem services as follows: currently implementing a pilot project to apply the 37

Ecosystem Services Review tool in four areas, two in the Atlantic Rain forest and two in the Legal Amazon region. The later is being developed through the Bra- zilian Business and Ecosystem Services Partnership (Parceria Empresarial pelos Serviços Ecossistêmicos

- PESE), an initiative developed by CEBDS, World Votorantim Image courtesy of Resources Institute and GVces (Sustainability studies centre) (http://insights.wri.org/pese_en/about). The initiative will identify main ecosystem services and company impact and dependency relations with the services. Information from these studies and initiatives (re- Votorantim announced the creation of a private reserve, Votorantim Reserve in southeast São Paulo lated to targets from 2013 to 2020) is the starting State in June, 2012. The reserve totals 35 thousand point to design a long term speciic strategy on bio- hectares of Rain Forest supported by the company diversity and ecosystem services at Votorantim. for 50 years now and is the largest protected private Apart from these initiatives, Votorantim supports 16 area in the state. The reserve is located by the Environmental Protection Areas and seven Private Jurupará National Park and other conservation units Natural Heritage Reserve in Minas Gerais and Es- creating a conservation corridor that contributes to pírito Santo in a total area of around 64.7 thousand the effective conservation of ecosystem services and hectares of protected area. biodiversity. 38 CEBDS Brazilian Business Council for Sustainable Development – 39

Conclusion

In spite of all the visibility that ecosystem services have There are no regulatory requirements to encourage gained recently, the theme is still complex and there companies to include these issues and to guide them still is a large knowledge gap. In addition to knowledge on how to manage ES. about the existence of ES in business operational areas, There is no consensus about ES deinitions. This situ- it is important to understand what other ES users ation creates a certain degree of uncertainty on the exist in the territory and the impact and dependence part of the public, as tools have different architectures, relationship between ES and operations. may be incompatible and are not used in a compre- In spite of an increasing concern by companies and hensive manner. of initial discussions on the issue, ecosystem services There are also discrepancies in the concept of risk and have not been yet integrated into business strategies, opportunities for the different sectors about the issues mainly because: presented. For example, companies that work directly It is not a valued issue in companies’ agenda. The with biofuels or in the paper and pulp sector - where business case discussion for each sector and company there are already consolidated markets or where is still at an initial stage. Few efforts have been made consolidation is underway for certiied products - have in this regard, mainly because they demand full time identiied the risk of the certiication process more dedication of a trained team, time and additional re- clearly than in other sectors. On the other hand, the sources. Most sustainability teams are small and deeply momentum and importance of the debate in Brazil and involved with more urgent and pressing processes, around the world regarding climate change and/or the such as licensing. Additionally, the theme is many times scarcity of water resources has possibly contributed to restricted to sustainability teams, because it is a difi- the fact that a great number of companies have realized cult topic for corporate units that are not familiarized the potential risks and opportunities in carbon seques- with the technical concepts. tration markets and mechanisms to protect watersheds in their responses to the 2011 survey. Knowledge about the tools used to assess ES is scarce and tool choices must be supported by experts. There We have also concluded that most companies have are many options, and it is dificult to compare tools not clearly understood the risk/opportunity relation- and many are generic, making it hard to assess spe- ship represented by ecosystem services in the short ciic topics inside companies and integrate them with term. Companies have expressed that these problems existing environment management systems. In spite of might affect their businesses only in the medium the possibility of customizing tools, this requires time to long run. That is, as their impacts will not be felt and additional resources, which is often not a feasible immediately, most companies have not perceived option for companies. Another point to be observed the issue as a priority. In addition, companies have is that since tools have been developed outside of expressed little concern with inancial risks. On top the country, often times they are not adapted to the of the issue of time, we can infer that the lack of data national context. In addition to the lack of tools devel- about the inancial impact of biodiversity management oped for the Brazilian reality, there are no databases in and ecosystem services can hinder the companies’ the country about ES that can be easily used. Despite understanding of the materiality of the issue to their these dificulties, existing tools can contribute with new operations. At the end of the day, companies depend knowledge and with the exchange of experience and on inancial mechanisms to make their operations fea- information among users that share the same ES. sible. It is evident that credit institutions have increas- 40 CEBDS Brazilian Business Council for Sustainable Development –

ingly adopted restrictive measures for sustainability assessments, such as Socio-environmental Impacts that do not meet minimum requirements. Studies, Life-Cycle Analysis and Environmental Man- agement Systems. Survey results demonstrate that there is still a large gap regarding the applicability of ES in the business Case study results make it clear that regardless of the management systems. Most companies ind it dificult level of understanding and commitment to ES, compa- to link ecosystems well-being to their bottom line. The nies adopt actions to preserve natural resources. Most main reason presented is the lack of understanding of the time, partnerships with the public sector and about their dependence, the impact on ecosystems NGOs are paramount to developing these initiatives, and the possible risks associated with their opera- to provide access to qualiied information and to rep- tions. Assessing how productive processes depend licate experiences. Evolution of such activities is key to on ecosystem services requires information and data evolve and disseminate results and encourage other that often times are not available and obtaining them companies to inform their consumers. would require signiicant inancial investments, in ad- These ideas stress the importance of CEBDS as a dition to the efforts to train teams, a challenge which space for corporate training and development in still needs to be overscome. There is currently no combination with their business strategies related to available methodology for integrating ES into impact biodiversity and ecosystem services. 41

Recommendations

Information collected on the interviews and throughout ecosystem services experts, tool developers and com- the training process revealed the key role played by panies, because many times these players do no interact. discussion and training spaces. Companies need these That is why it is necessary to critically assess and test initiatives to exchange experience in a democratic and tools according to their cost and beneit per sector, as constructive way, thus learning from peer experiences. well as under speciic situations. Training programs on this topic must continue – since Those companies that have experience in assessing the theme is complex and little is known about it - in ecosystem services are strongly recommended to dis- order to strengthen businesses’ technical capacity and seminate their experience. In this way they will encour- develop ES management strategies. This topic must be age peers to do so and show leadership on the topic, disseminated throughout several areas inside companies which will bring all players to a level playing ield on this and should not be exclusively restricted to the environ- matter. It is necessary to show how companies can be ment and sustainability areas. recognized by their efforts to preserve the environ- Lack of reliable information and data presupposes that ment and biodiversity, since there is still lack of recogni- there is still a need to carry out more research work tion to encourage conservation initiatives. Hence, one on biodiversity and ecosystem services. Thus it is es- recommendation would be that benchmarking studies sential to create up-to-date databases about BES. Such should be carried out among companies, so that the research work must be carried out regardless of the general public could learn about their initiatives and valuation exercise. Valuating BES can be an interesting more companies would be inluenced to undertake ES strategy, but before this effort is done, it is necessary assessments. to have information on ES stocks and lows, and the Finally, it is recommended further dialogue to align interaction between ES and companies, mainly impacts expectations of different sectors and companies. It is and dependences. critical that the private sector be aware of its power to The best tools to assess ES are those that can be have an impact on public policies and develops coher- tailor made to the company’s speciic needs. Therefore, ent proposals to encourage ES conservation. The level it is recommended that different tools developers of commitment with the conservation of biodiversity join efforts to agree upon common concepts, thus and ecosystem services must go beyond strictly legal strengthening and scale up the application of such tools. obligations and include effective actions to improve the Moreover, it is interesting to encourage dialogue among quality of life of communities and businesses. 42 CEBDS Brazilian Business Council for Sustainable Development –

References

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