A new framework to help businesses assess the potential impacts and benefits of their ecosystems has been published today (8 April 2011)
Developed by the World Business Council for Sustainable Development (WBCSD), the Guide to Corporate Ecosystem Valuation aims to help organisations to put a value on ecosystems services, such as the availability of water or unpolluted land, to better inform strategic decision making.
The framework, which is available for free download, provides a step by step guide to key issues including the significance of environmental risks both to and from their operations and the level of compensation stakeholders are entitled to if the organisation harms an ecosystem.
It also examines potential revenue opportunities from emerging environmental markets such as carbon, as well as the possible impact of regulatory changes on the availability of natural resources like water.
In the guide’s foreword, WBCSD president Björn Stigson said: “Leading companies understand, for example, that pollination and pest regulation are essential for food production.
“Unfortunately, biodiversity loss and ecosystem degradation are continuing to escalate, thereby putting business at risk. These risks are real, but if managed properly, can be transformed into new opportunities.”
Jon Williams, a partner at co-developer PricewaterhouseCoopers, said: “The guide links ecosystem service opportunities and risks more directly to a business’s core operations, supply chain and financial bottom line.
"The guide will help businesses embed the value of natural capital into their decision making in much the same that we would consider physical capital or human capital. It’s not easy, but it’s something businesses are going to have to face up to because clients, shareholders and lenders are beginning to link the risks associated with ecosystem services to their decision making.”
The guide also includes the findings from 15 pilot studies completed by companies all over the world including Rio Tinto, a mining company in Madagascar, American manufacturer US BSCSD and German water company Veolia.
To download the guide visit the WBCSD website.
