Corporate Ecosystem Services Review Training How to Use the ESR

World Resources Institute

Corporate Ecosystem Services Review Corporate Ecosystem Services Review TrainingTraining

How to Use the ESR



New considerations – regulating services

New perspective – unites economic & environmental

Framework for considering tradeoffs

Solutions – regulatory and markets

Scientific consensus

Impacts and dependencies

The ESR’s value addedThe ESR’s value added


Getting started

ESR methodology

Ecosystem services for corporate decision-making

AgendaAgenda


AgendaAgenda

Getting started

ESR methodology



Consider which stage of the value chain to apply the ESR

And identify: Known risk or opportunity Competitor’s experience Gap analysis

CustomersCompanySuppliers

Getting internal supportGetting internal support


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

Photo Courtesy of Flickr: ahisgett


Gap analysis: ESR & EIAGap analysis: ESR & EIA


Key members Environment and sustainability Corporate strategy/research Production/service team Finance External relations Foundation (if related to core business) External experts

· Ecosystem services · Strategic consultants

Forming an ESR teamForming an ESR team


AgendaAgenda

Getting started

ESR methodology



5. Develop strategies

4. Identify business risks and opportunities

3. Analyze trends in priority services

2. Identify priority ecosystem services

1. Select the scope

Steps in the Corporate Ecosystem Services ReviewSteps in the Corporate Ecosystem Services Review


1. Select the scope



Step 1. Considerations when selecting the scopeStep 1. Considerations when selecting the scope

1. Which stage of the 1. Which stage of the value chain? value chain?

CustomersCompanySuppliers

• Which customer(s)?

• In which geographic market(s)?

• What aspect of the company?

― Business unit― Product line― Facility― Project― Landholdings

• Which supplier(s)?

• In which geographic market(s)?

2. Who and where 2. Who and where specifically?specifically?

3. Is it strategic, timely, 3. Is it strategic, timely, and supported?and supported?



1. Select the scope



Go to worksheet Microsoft Excel

Worksheet


ECOSYSTEM SERVICES DEPENDENCE AND IMPACT MATRIX

Dependence Dependence DependenceProvisioning

Crops ○ - Livestock ● - Capture fisheries Aquaculture Wild foods ○ + Timber and other wood fibers ● + Other fibers (e.g., cotton, hemp, silk) Biomass fuel ○ ● + Fresh water ● ● - Genetic resources ○ ○ ? Biochemicals, natural medicines, and' pharmaceuticals ○ +

RegulatingAir quality regulation ? ? Global climate regulation ○ ● + Regional/local climate regulation ○ ○ + Water regulation ● ● - Erosion regulation ○ ○ - Water purification and waste treatment ○ - Disease regulation Pest regulation Pollination Natural hazard regulation

CulturalRecreation and ecotourism ● + Ethical values ○ +

Ecosystem services ImpactImpact Impact

Customers Company operationsSuppliers

Key ● High + Positive impact ○ Medium - Negative impact Low ? Don't know

Step 2. Select priority servicesStep 2. Select priority services


Step 2. Select priority servicesStep 2. Select priority services




1. Select the scope



Step 3. Trends analysis frameworkStep 3. Trends analysis framework

Condition and trends in ecosystem service

Direct driversActivities of others

Indirect drivers

Company activities


Step 3. Trends analysis frameworkStep 3. Trends analysis framework



Trends analysis – Pollination Case StudyTrends analysis – Pollination Case Study

Kodagu, Kerala





1. Select the scope



TypeType RiskRisk OpportunityOpportunity

Operational • Increased scarcity or cost of inputs• Reduced output or productivity• Disruption to business operations

• Increased efficiency• Low-impact industrial processes

Regulatory and legal

• Extraction moratoria• Lower quotas• Fines, user fees• Permit or license suspension• Permit denial• Lawsuits

• Formal license to expand operations• New products to meet new regulations• Opportunity to shape government

policy

Reputational • Damage to brand or image• Challenge to social “license to operate”

• Improved or differentiated brand

Market and product

• Changes in customer preferences (public sector, private sector)

• New products or services• Markets for certified products• Markets for ecosystem services• New revenue streams from company-

owned or managed ecosystems

Financing • Higher cost of capital• More rigorous lending requirements

• Increased investment by progressive lenders and socially responsible investment funds

NOT EXHAUSTIVENOT EXHAUSTIVE

Step 4. Risks and opportunitiesStep 4. Risks and opportunities


Step 4. Risks and opportunitiesStep 4. Risks and opportunities

Priority ecosystem service

Potential risks Potential opportunities

Freshwater

• Increased water scarcity due to:– Invasive species – Nearby farmers – Climate change

• Internal efficiency improvements\

• (Co) financing improvements of nearby farmers

Biomass fuel • Use plantation residue in Mondi generator

• Sell plantation in biomass-to-energy markets

Global climate regulation

• Emerging markets for carbon sequestration

Recreation and ecotourism

• Ecotourism market potential

Livestock• Grazing reducing productivity

• Perceived “under-utilization” of Mondi land by nearby farmers


5. Develop strategies




1. Select the scope



Step 5. Categories of strategiesStep 5. Categories of strategies

Internal Internal changeschanges

Sector or Sector or stakeholder stakeholder engagementengagement

Policy-maker Policy-maker engagementengagement

OperationsOperations

Product strategyProduct strategy

Market strategyMarket strategy

Procurement strategyProcurement strategy

Land managementLand management

Etc.Etc.

Industry peer collaborationIndustry peer collaboration

Cross-sector collaborationCross-sector collaboration

NGO collaborationNGO collaboration

Transactions with Transactions with stakeholdersstakeholders

Etc.Etc.

Tax incentivesTax incentives

Subsidy reformsSubsidy reforms

Protected areasProtected areas

ZoningZoning

Etc.Etc.


Michelin uses ecosystems to improve factory footprint Michelin uses ecosystems to improve factory footprint


BC Hydro engages stakeholdersBC Hydro engages stakeholders


Mondi leverages expertise to inform water policyMondi leverages expertise to inform water policy


The ESR supports many business decisionsThe ESR supports many business decisions

• Corporate, business unit, or market strategy development

• Planning for corporate infrastructure projects

• Identification of new markets, products, or services

• Identification of new revenue streams from corporate landholdings

• Policy-maker engagement strategies

• Environmental impact assessments

• Environmental reporting


AgendaAgenda

Getting started

ESR methodology

Ecosystem Services for Corporate Decision Making


Ecosystem services for corporate decision-makingEcosystem services for corporate decision-making

• EIAEIA• LCALCA• SMESME• Financial RiskFinancial Risk


www.wri.org/ecosystems/esr

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Corporate Ecosystem Services Review Training How to Use the ESR

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