TEEB report helps businesses value nature
Published on: Jul 14, 2010
A significant step towards understanding the value of biodiversity was taken at the first Global Business of Biodiversity conference in London on 13 July 2010.
The event saw the launch of a significant component of The Economics of Ecosystems and Biodiversity (TEEB), a global study initiated by the G8 and five major developing economies. It seeks to examine three key issues:
- the economic benefit of biological diversity
- the costs of the loss of biodiversity
- the costs of the failure to take protective measures versus the costs of effective conservation.
The document launched in London is an executive summary of the TEEB for Business report. It describes a major component of TEEB aimed at the business community. The full report, which follows shortly, will set out the business case for biodiversity and ecosystems services (BES).
The document describes the extent to which business and society relies upon BES, without necessarily recognising their value. Examples are cited at three levels: ecosystem (e.g. carbon storage), species (e.g. insect pollination) and gene (e.g. medicinal discovery).
The estimates of the economic values involved are huge. For example, one estimate of the value of greenhouse gas emissions avoided by conserving forests is US$3.7 trillion (NPV), while insect pollination is estimated to contribute US$190 billion/year.
In conclusion, the report asserts that businesses can show leadership on biodiversity and ecosystems by:
- identifying their impacts and dependencies on BES
- assessing the associated risks and opportunities
- developing BES information systems, setting SMART targets, measuring and valueing performance and reporting results
- taking action to avoid, minimise and mitigate BES risks, including in-kind compensation (‘offsets’) where feasible
- grasping emerging BES business opportunities, such as cost efficiencies, new products and new markets
- integrating business strategy and actions on BES with wider CSR initiatives
- engaging with business peers and stakeholders in government, NGOs and civil society to improve BES guidance and policy.
Biodiversity and business – briefing paper by Two Tomorrows and Biocensus (PDF, 1MB)
