Presentation on theme: "First Annual EU Business and Biodiversity Conference Strahil Christov Policy Officer at DG Environment in charge of the EU Platform Brussels, 21/11/2014."— Presentation transcript:
First Annual EU Business and Biodiversity Conference Strahil Christov Policy Officer at DG Environment in charge of the EU B@B Platform Brussels, 21/11/2014 EU B@B Platform, Output and lessons from Year 1
Workstream 1: Natural Capital Accounting James Spurgeon Director at Sustain Value and Workstream leader Brussels, 21/11/2014 Context and objectives
EU Business and Biodiversity Platform Workstream objectives Primary: Develop a decision framework and set of principles that help companies determine what form of natural capital accounting (NCA) for business to adopt. Secondary: –Identify best practice guidance and tools available to support each form of NCA application. –Make recommendations for further work in year 2 Objectives Approach Key findings Further work
EU Business and Biodiversity Platform Approach Objectives Approach Key findings Further work Developed initial guide & decision-matrix tool with Full Member companies –Questionnaire on NCA perspectives and activities –½ day workshop in Brussels (28 th April) Full Members reviewed/piloted guide & tool –½ day workshop in Brussels (22 nd Sept) Circulated initial & final draft guide to All Members
EU Business and Biodiversity Platform Key outcomes - Overview Objectives Approach Key outcomes Further work Membership: –Full member companies: 11 –Member State members: 8 –Observers: 35 –Representatives: 46 Guide: –Definitions/coverage – ‘Taking biodiversity into account’ –11 Categories of ‘NCA for business’ approaches –*12 Principles for selecting an approach –High level method for selection (Summary table) –Decision-matrix approach (7 questions) –*List of guides and tools for each approach Decision-matrix *Not covered by the presentation
EU Business and Biodiversity Platform Key outcomes – Definitions Objectives Approach Key outcomes Further work NCA for Business: ‘Identifying, quantifying and/or valuing environmental dependencies and impacts to inform business decision- making and reporting’.
EU Business and Biodiversity Platform Key outcomes – NCA Approaches & questions No.Category NCA Approaches 1 Assessments – Decision making Dependency 2 Impacts 3 Risks/opportunities & materiality 4 Valuation (full cost accounting) 5 Both Inventory 6 Indicators 7 Set of accounts - Reporting Env P&L Account 8 Env Balance Sheet 9 Env Financial Accounting – Env components 10 Env Financial Accounting - Site manage costs 11 Integrated Financial NCA & reporting No. Potential questions 1 Business aspect (scope)? 2 Relationship to NC? 3 Proposed use? 4 Component of NC/environment? 5 Form of measurement? 6 Whose perspective? 7 Resources available? Objectives Approach Key outcomes Further work Summary table of approaches Questions for decision-matrix
EU Business and Biodiversity Platform Key outcomes – Decision-matrix tool Use screening function to narrow down approaches
EU Business and Biodiversity Platform Key outcomes – Decision-matrix tool So, if interested in: The flow of NC benefits (i.e. ecosystem services) Monetary values Shareholder/company perspective Limited resources for study Select ‘Dependency Assessment’ Objectives Approach Key outcomes Further work
EU Business and Biodiversity Platform Possible further work for years 2 and 3 Objectives Approach Key findings Further work 1.Simplify guide & tool. 2.*Review available guidelines & tools. 3.*Map business NCA applications to government/policy use. 4.Explore reporting on company expenditures for managing NC. 5.Investigate NC & valuation linkages in LCA. 6.Explore concept of balance sheet approaches to NCA. 7.Investigate investment-rating agency perspective on NCA *Most popular for FMs
Workstream 1: Natural Capital Accounting Dr. Michael Rademacher Director Biodiversity & Natural Resources HeidelbergCement Brussels, 21/11/2014 HeidelbergCement and NCA
Page 12 - May 2014 HeidelbergCement –Biodiversity at mining sites Biodiversity Management @ HeidelbergCement HeidelbergCement is one of the world’s largest building material companies with more than 52.500 employees in more than 40 countries at more than 2.500 locations Delivering a prominent positive contribution to biodiversity Slide 12 - 21.11.2014 EU B@B Conference - Dr. M. Rademacher First company of its sector with global policy, principles and targets implemented by a team of in-house ecologists Ambitions for 2020: 100% of mining sites under active exploitation have a restoration plan 50% of mining sites with “high biodiversity value” have a biodiversity.. management plan implemented Biodiversity indicators adapted for extraction sites: Number of habitats in the mining sites / Surfaces of the mining sites (ha) Number of plant species on the mining site / number of plant species in the surrounding area (500m corridor) Portion of endangered species on the mining site / Portion of endangered species in the surrounding area
Page 13 - May 2014 HeidelbergCement –Biodiversity at mining sites The NCA-Decision-Matrix is a good and simple tool Benefits of NCA-Decision Matrix: Practical first overview on NCA for inexperienced companies Helpful tool to identify knowledge gaps for experienced companies Broadens the view on environmental impacts and dependencies Easy to use and understandable for “non-experts” Gains for HeidelbergCement: Finding methods to better understand our secondary impacts Finding tools for better assessing new aspects of our impacts Feedback on NCA-Decision-Matrix Knowing your impacts on nature is key for being a successful company Slide 13 - 21.11.2014 EU B@B Conference - Dr. M. Rademacher The NCA-Decision-Matrix is a good and simple tool that should be used by all companies interested in their relationship to nature and biodiversity
Aim: –To increase our scientific expertise and expand our current biodiversity management Joint actions: –Improve knowledge on biodiversity impacts –Build better Biodiversity Management Plans –Improve reporting on sustainability indicators –Increase contacts with essential stakeholders –Improve local dialogue –Implement cooperative conservation projects Aim: Increase the scientific knowledge about biodiversity in quarries Contest categories: –Discover biodiversity in mining sites –Biodiversity and rehabilitation Biodiversity and education –Biodiversity management during extraction Overview on 2nd edition: –Timing:March - December 2014 –Proposals: Over 390 projects –Participants: Over 200 active researchers Innovative Partnerships to promote Biodiversity
To give back to nature more than we have taken Slide 15 - 21.11.2014 EU B@B Conference - Dr. M. Rademacher
Workstream 1: Natural Capital Accounting Pere Escolar Operations Director Codorníu Raventós Brussels, 21/11/2014 Feedback on the developed NCA decision-matrix
17 The question we want to answer B@B Workstream 1: Natural Capital Accounting for Business So our question is What is the economic impact on biodiversity in the Penedès region due to our “sexual confusion” project? Codorníu Raventós is a family-owned company, owner of 8 wineries and almost 3000 hectares of vineyards in Spain. Raimat is our biggest vineyard, highlighted in the EU Environment Agency’s Environmental Atlas for its sustainability practices: http://discomap.eea.europa.eu/map/environmentalatlas/ http://discomap.eea.europa.eu/map/environmentalatlas/ Since 2001, we fight in Raimat against Lobesia botrana biologically, it means, we use pheromones to generate sexual confusion and avoid its reproduction without using chemical pesticides. Since 2009, we have included into our sustainable supply chain programme the training of our grapes suppliers, to use the same technique in the Penedès region (Currently +50%).
18 The pilot test with the Guide B@B Workstream 1: Natural Capital Accounting for Business So our conclusion is Take the “Valuation (full cost accounting)” approach and use the “WBCSD* Guide to Corporate Ecosystem Valuation (CEV)” *WBCSD: World Business Council for Sustainable Development
19 Learnings and next steps B@B Workstream 1: Natural Capital Accounting for Business Learnings The “question to be answered” needs to be defined very specifically, and it is subject of an iterative process. Team focus: Agriculturalists will focus on biological impacts, accountants will focus on financial impacts. It is somehow difficult to answer the question without an expert view Next steps Use of “Screening” part of the WBCSD CEV Guide Confirm possible risks & opportunities: Operational: a way of gaining a quality supply maintaining the ecosystems Reputational: a project to be communicated as sustainable purchasing Financing: a possible way to access to green funds, both for us and our supply chain Decide the type of assessment: Qualitative Quantitative Monetary Implement the Methodology of the WBCSD CEV Guide…
Workstream 1: Natural Capital Accounting Helen Dunn Senior Economic Adviser UK Defra Brussels, 21/11/2014 NCA, experience from the UK
Natural capital helping to reframe debate on importance of natural environment to economy and society Recognising the value of natural capital to country’s long-term economic growth and prosperity Decline in natural capital is not good for the economy Investing in natural capital can deliver substantial economic benefits and can often provide more cost effective and resilient ‘natural’ solutions than grey infrastructure alone Why account for natural capital - the economic case
UK policy initiatives – accounting for natural capital Tracking natural capital at national level: to make more visible on nation’s balance sheet Policy appraisal ‘micro’ level The Natural Capital Committee (NCC) has been working to produce and trial an innovative corporate natural capital accounting methodology. The framework produced will enable users to account better for their natural capital and inform management decisions about its use. It has trialled this methodology with pilots from the extractive and utility sectors as well as traditional large landholding stewards such as the UK’s National Trust. The NCC will report on this work in January 2015, alongside its third State of Natural Capital report. Trialling corporate natural capital accounting
Natural capital: a new lens for business Ecosystem Markets Task Force Report (March 2013) set out a high level narrative of the importance for business to integrate the real value of nature into its thinking. Benefits for companies include greater resilience and managing risk more effectively. EMTF highlighted the very first step is to be aware of how a business depends directly or indirectly on natural ecosystems. It also identified need for support including new measures and standards to support awareness. “We need better tools and metrics to understand the role nature plays in our businesses: tools and metrics that will integrate financial, environmental, social and governance information in a concise, consistent and comparable format”
Workstream 1: Natural Capital Accounting Stefan Hörmann Head of Business and Biodiversity Global Nature Fund Brussels, 21/11/2014 How Business Values Natural Capital?
WHO‘S ACTIVE - APPROACHES GNF Study „How Business Values Natural Capital“: Few examples so far, but two main approaches Assessment of technology, site or project: Dow Chemical, WBCSD Detailed but more local, comparison of alternatives Assessment of Supply Chains: PUMA, Otto Group, Kering… Based on economic modelling, wide coverage, certain level of abstraction
CHALLENGES More companies need to test the tools Business case for companies has be clear Consumer awareness to justify the extra effort Data and reliability of results Sources of raw materials are not always known Information on local impacts Harmonisation/Standardization Using different methods makes comparison difficult
OUTLOOK Natural Capital Accounting has great potential: One metric to compare different environmental impacts Integration in commonly used decision making tools Make better-informed consumption choices Observe the safeguards: Valuing does not mean that you can pay to destroy Harmonisation should not lead to the lowest common denominator What is still needed: Assessment and harmonization of approaches and tools Set the framework e.g. in reporting
Workstream 1: Natural Capital Accounting Brussels, 21/11/2014 Panel discussion
Workstream 1: Natural Capital Accounting Brussels, 21/11/2014 Lunch Break
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