Examples of Ecosystem Service-related Business Risks and Opportunities

transcript

World Resources Institute

This PowerPoint presentation profiles examples of business risks and opportunities arising from a company’s dependence and/or impact on ecosystem services.

The speaker notes for each slide (click “view”, “notes page”) provide information about each example.

This presentation is designed for use by company managers, analysts, and consultants to demonstrate the business case for considering trends in ecosystem services when developing business strategy.

These case examples were implemented before the Corporate Ecosystem Service Review was created.

For more information and supporting tools, visit www.wri.org/ecosystems/esr

About this presentationAbout this presentation

TypeType RiskRisk OpportunityOpportunity

• VittelVittel• Energia GlobalEnergia Global• Anheuser-BuschAnheuser-Busch• Aboitiz (Binga hydroelectric facility) Aboitiz (Binga hydroelectric facility) • Santa Fe RailroadSanta Fe Railroad• Amoco Amoco • HubingerHubinger

• Mitsubishi Semiconductor AmericaMitsubishi Semiconductor America• DuPontDuPont

Regulatory Regulatory and legaland legal

• Chinese logging industryChinese logging industry• European Union fishing industryEuropean Union fishing industry• Barama Company Ltd. Barama Company Ltd. • Mexican companies using Mexican companies using

freshwaterfreshwater• Coca-ColaCoca-Cola• Associated British PortsAssociated British Ports• ChevronTexacoChevronTexaco

• International PaperInternational Paper• Alfa LavalAlfa Laval• Tourism industry (Australia)Tourism industry (Australia)

Case examples in this presentation Case examples in this presentation

OperationalOperational

TypeType RiskRisk OpportunityOpportunity

ReputationalReputational • Home DepotHome Depot• B&QB&Q• MacMillan BloedelMacMillan Bloedel• AlcanAlcan

• Fetzer VineyardsFetzer Vineyards

Market and Market and productproduct

• Seafood suppliers to Wal-MartSeafood suppliers to Wal-Mart• Travis PerkinsTravis Perkins

• AgraQuestAgraQuest• HalmaHalma• Wood products industryWood products industry• Fishing industryFishing industry• AES CorporationAES Corporation• ChevronTexacoChevronTexaco• Inland Empire Paper CompanyInland Empire Paper Company• PotlatchPotlatch• Allegheny PowerAllegheny Power

FinancingFinancing • Goldman SachsGoldman Sachs• CitigroupCitigroup• ABN AMROABN AMRO• JPMorgan ChaseJPMorgan Chase World Resources Institute

Case examples in this presentation (continued)Case examples in this presentation (continued)

Operational risk: Reduced quality of inputsOperational risk: Reduced quality of inputs

Photo Courtesy of Flickr: PhillipC

Operational risk: Reduced productivityOperational risk: Reduced productivity

Photo Courtesy of Flickr: BlueOakPhotos

Operational risk: Increased scarcity or cost of inputsOperational risk: Increased scarcity or cost of inputs

Photo Courtesy of Flickr: steve took it

Operational risk: Reduced outputOperational risk: Reduced output

Photo Courtesy of Flickr: hamiltonpaulp

Operational risk: Disruption to businessOperational risk: Disruption to business

Photo Courtesy of Flickr: real1960

Operational opportunity: Increased efficiencyOperational opportunity: Increased efficiency

Photo Courtesy of Flickr: StangGT

Operational opportunity: Low-impact industrial processesOperational opportunity: Low-impact industrial processes

Photo Courtesy of Flickr: gurdonark

Regulatory risk: Extraction moratoriaRegulatory risk: Extraction moratoria

Photo Courtesy of Flickr: anne logiei

Regulatory risk: Lower quotasRegulatory risk: Lower quotas

Photo Courtesy of Flickr: photosecossei

Regulatory risk: FinesRegulatory risk: Fines

Photo Courtesy of Flickr: hicham daoudi

Regulatory risk: User feesRegulatory risk: User fees

Photo Courtesy of Flickr: javierdoren

Regulatory risk: Permit or license suspensionRegulatory risk: Permit or license suspension

Photo Courtesy of Flickr:Guistaff

Regulatory risk: Permit denial Regulatory risk: Permit denial

Regulatory risk: LawsuitsRegulatory risk: Lawsuits

Photo Courtesy of Flickr: tefe

Regulatory opportunity: License to expand operationRegulatory opportunity: License to expand operation

Photo Courtesy of Flickr: David Kutilek

Regulatory opportunity: New products to meet new regulationsRegulatory opportunity: New products to meet new regulations

Photo Courtesy of Flickr: Powi…(ponanwi

Photo Courtesy of Flickr: Ian Robertson

Regulatory opportunity: Opportunity to shape government policy Regulatory opportunity: Opportunity to shape government policy

Reputational risk: Damage to brand or imageReputational risk: Damage to brand or image

Photo Courtesy of Flickr: halmorgan

Reputational risk: Damage to brand or imageReputational risk: Damage to brand or image

Photo Courtesy of Flickr: Alan Cressler

Reputational risk: Challenge to social “license to operate” Reputational risk: Challenge to social “license to operate”

Photo Courtesy of Flickr: ahisgett

Photo Courtesy of Flickr: sonic_serenityr

Reputational opportunity: Differentiated brandReputational opportunity: Differentiated brand

Market risk: Changes in customer preferencesMarket risk: Changes in customer preferences

Market opportunity: New productsMarket opportunity: New products

Photo Courtesy of Flickr: clint02554

Photo Courtesy of Flickr: amlapedalemap

Market opportunity: Markets for certified productsMarket opportunity: Markets for certified products

Photo Courtesy of Flickr: pamelarose

Market opportunity: Markets for ecosystem servicesMarket opportunity: Markets for ecosystem services

Photo Courtesy of Flickr: chris.diewald

Market opportunity: Markets for ecosystem servicesMarket opportunity: Markets for ecosystem services

Photo Courtesy of Flickr: sidewayscaver

Market opportunity: New revenue from company-owned ecosystemMarket opportunity: New revenue from company-owned ecosystem

Photo Courtesy of Flickr: Al Bell

Photo Courtesy of Flickr: Allegheny Power

Financing risk: More rigorous lending requirementsFinancing risk: More rigorous lending requirements

Photo Courtesy of Flickr: simplelogic

Financing risk: More rigorous lending requirementsFinancing risk: More rigorous lending requirements

Photo Courtesy of Flickr: katuddenham

Financing opportunity: Markets for ecosystem servicesFinancing opportunity: Markets for ecosystem services

www.wri.org/ecosystems/esr