Global Compact International Yearbook Ausgabe 2010

Agenda
Biodiversity
The decline in nature’s ability to provide ecosystem services – the
benefits humans derive from ecosystems – can present material risks
and opportunities to business. However, managers have only just
begun integrating considerations of ecosystem services into corporate
decision-making processes. One resource has been the Corporate
Ecosystem Services Review (ESR), a set of guidelines that has helped
managers improve both corporate performance and the environment.
By John Finisdore
Ecosystems provide businesses – as well as people and communities
– with a wide range of ecosystem services. For
example, agribusiness depends on the freshwater, soil quality,
and erosion control that ecosystems offer. Insurance companies
benefit from coastal protection provided by coral reefs and
wetlands, while fisheries rely on these habitats for commercial
fish species. A decline in the quality or quantity of these
services can substantially affect corporate performance.
Businesses also impact ecosystem services. For instance, when
a company pollutes waterways, dredges wetlands for shipping
channels, or overharvests fish, it reduces the ability of other
firms or communities to benefit from these ecosystems and
the services they provide. These impacts expose a company
to regulatory, reputational, or other forms of risk. Thus,
corporate dependence and impact on ecosystem services can
affect the bottom line.
The Millennium Ecosystem Assessment – a four-year global
analysis of the state of the world’s ecosystems – found that
over half of the ecosystem services evaluated significantly degraded
over the past half century. Further declines are expected
over coming decades. Left unchecked, this degradation could
jeopardize future economic well-being, creating new winners
and losers within the business community.
Unfortunately, corporate environmental management systems,
due diligence processes, certification systems, and other
corporate decision-making processes have only just started
integrating the full range of ecosystem services considerations.
They typically focus on environmental impacts, not dependence.
Decision-making processes generally exclude regulating
ecosystem services such as pollination, water purification, and
natural disaster mitigation. Should these particular services
decline, crop yields would drop, water purification costs would
rise, and supply chain disruptions would occur. Furthermore,
corporate decision-making processes do not fully incorporate
ecosystem services-related opportunities. As a result, companies
may be unnecessarily vulnerable or miss new sources of
revenue associated with the decline in the quantity or quality
of ecosystem services.
Application of the ESR
To meet this need, corporations are turning to the Corporate
Ecosystem Services Review (see Box). Since its release in
March 2008, the ESR has been translated into five languages,
15,000 copies have been printed, nearly 30,000 copies have
been downloaded, and an estimated 200 - 300 businesses
have put it to use.
Much of the ESR’s utility can be attributed to its flexible design.
It is valuable to senior executives looking at an organization’s
long-term strategy as well as to line managers responsible
for product development, risk analysis, or day-to-day plant
management. Experience to date indicates that conducting
an ESR can help business managers improve the bottom line
in at least four ways:
1. Strengthen corporate strategy
At the highest levels of a corporation, managers are using
the ESR to improve corporate strategy. For example, Mondi,
the international paper and packaging company, used the
Global Compact International Yearbook 2010 47