1 Engaging Business for Conservation Conservation Conservation Campus #142 11 September 2012 Objective • Exchange experience on developing a strategy for business engagement • Provide practical examples of how business and conservation communities are engaging to deliver conservation outcomes • Explain how to develop partnerships that are Explain how to develop partnerships that are mutually beneficial and enhance brand value of both organizations • How to communicate and train business on ecosystems Agenda 1. Welcome and introduction 2. Risk and Opportunities of engaging business 3. Business Engagement in practice 4. Create sustainable brand value for business 5. Training business on ecosystems Engaging Business for Conservation: Risks and Opportunities Gerard Bos, Head – Global Business and Biodiversity Programme, IUCN September 2012 Overview • Matching conservation and business goals • Developing a strategy for business engagement • Selecting a business partner • Formalizing the engagement Figure 1 – Steps in IUCN Operational Guidelines for Private Sector Engagement Matching goals Key factors for success: Understanding your added value • Organizational assets • Value Proposition • What you can do Understanding the business • Business impacts and dependencies • Opportunities for business in conservation • What the business can do Identify shared and added value
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1
Engaging Business for ConservationConservation
Conservation Campus #142
11 September 2012
Objective
• Exchange experience on developing a strategy for business engagement
• Provide practical examples of how business and conservation communities are engaging to deliver conservation outcomes
• Explain how to develop partnerships that areExplain how to develop partnerships that are mutually beneficial and enhance brand value of both organizations
• How to communicate and train business on ecosystems
Agenda
1. Welcome and introduction
2. Risk and Opportunities of engaging business
3. Business Engagement in practiceg g p
4. Create sustainable brand value for business
5. Training business on ecosystems
Engaging Business for Conservation: Risks and Co se at o s s a d
Opportunities
Gerard Bos, Head – Global Business and Biodiversity Programme, IUCN
September 2012
Overview
• Matching conservation and business goals
• Developing a strategy for business engagementg g
• Selecting a business partner
• Formalizing the engagement
Figure 1 – Steps in IUCN Operational Guidelines for Private Sector Engagement
Matching goals
Key factors for success:
Understanding your added value • Organizational assets
• Value Proposition
• What you can do
Understanding the business
• Business impacts and dependencies
• Opportunities for business in conservation
• What the business can do
Identify shared and added value
2
Developing a strategy
Why a Strategy?
How to develop a pStrategy?
How to use a Strategy?
Developing a strategy
Why a Strategy? To ensure that engagements are a means to a wider conservation goal. To protect your reputation. To ensure effective use of (generally scarce) resources.
How to develop a Strategy? It depends on your type of organization: If membership-based, you will need to engage in consultations with your members Even ifengage in consultations with your members. Even if not, involve those who will work with business as well as business entities. Ensure that the Strategy is in line, builds on and supports your main conservation programme.
How to use a Strategy? It should be your compassin selecting projects and partners. Not a replacement for detailed project concepts or workplans.
IUCN Strategy• IUCN’s first strategy was issued in 2004
• The IUCN Council requested a new Strategy in 2011
• A first concept was developed with members of the Council and used to request input from IUCN Members, Councillors and partners (mostly businesses)
With the input received a small design team drafted• With the input received, a small design team drafted version 1 which was subsequently revised by the Council and discussed during a workshop
• The final Strategy was approved by Council in April 2012
• The strategy builds on IUCN quadrennial programme as well as on past experiences working with business
Key elements of a strategy
Clear aims, objectivesThe IUCN Business Engagement strategy aims to encourage transformational and demonstrable changes at the company and sectoral level in how biodiversity is valued and managed by businesses in order to conserve and restore biodiversity and to ensure that biodiversity benefits are shared equitably.
Purpose:Purpose:To provide IUCN with a coherent framework for influencing the business sector, a clear reference point as to the level of ambition expected from the business engagements, and a consistent approach to the management of reputational risks and quality assurance.
Key elements of a strategy
Well defined theory of changeIUCN’s BES has three interconnected entry-points, all linked to one central objective: business practices at the landscape and seascape level are transformed to generate benefits for biodiversity and natural resource-dependent livelihoods.
Entry Point 1: Triggering changes on the ground
Entry Point 2: Leveraging supply chains
Entry Point 3: Influencing public & financial policies
Key elements of a strategyClear implementation strategy• Engage with a few selected
leaders in priority sectors to develop or adapt, field test and pilot tools and approaches.
• Building on best practices, work with a group of companies within selected sectors and industry associations to develop, adopt and promote voluntary standards.
• Directly engage with public policy and the financial sector to promote a progressive and level playing field in terms of regulations and finance.
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Selecting a business partner
• Developing an engagement concept (what are the conservation challenges that can beaddressed through an engagement withbusiness?)
• Assessing potential business partnerso Is the company well placed to help deliver the
concept? Are they committed to a step change?
o Are there shared goals and opportunities to add value?
• Performing a due diligence to identify possible sources of risk & opportunities
• Preparing a risk management strategy
Which company should we work with?
Due Diligence• A step to enable “informed decisions” on how to
progress discussions with business
• Allows a better understanding of the business and its operations
• Identifies any past, present, and predictable future sources of risk to the organization arising from an engagement with the business
• Helps identify opportunities of engaging and potential areas of joint work
What should be included?
1. Scope
2. Company description
3. Company impact on biodiversity and ecosystem services
4. Social and environmental policies, standards and public commitments
5. Environmental and social performance
6. Company reputation
7. Initial assessment of the company’s commitment to corporate responsibility
8. Overview of potential risks
9. Indications of points that could be further investigated
Risk and Opportunity Matrix
The position of the red dot will move on answering the questions according to the risk and opportunities of engaging a given companyResults in the tables above are
generated by answering the risk and opportunity questions
Formalizing the engagement
• Develop a project concept which includes:• Aim and objectives
• Key areas of cooperation
• Expected outcomes and how they will contribute to your conservation goals
• Formalize the engagement through an i t h i ( M d fappropriate mechanism (e.g. Memorandum of
Understanding, Contract, Agreement, etc.)
• Ensure transparent and regular communication with your constituency during entire process
How do we formalize
our engagement?
A good contract includes…
• SMART (Specific, Measurable, Achievable, Realistic and Time-bound) results
• Roles and responsibilities for realizing results• Capacity and resource requirements on both
sides• Indicators for monitoring and measuring
performance progress and resultsperformance, progress and results• A clause that allows public communication
regarding any issues which may or may not involve the business entity
• A process for addressing breach of contract• A termination clause• A mechanism for raising grievances from third
parties• An independent final evaluation
4
Top Tips• Be transparent• Work with the business from the beginning and
throughout the project (don’t treat them like donors!)
• Conduct a situation analysis – what are the impacts and dependencies? Assess the “additionality”?additionality ?
• Assess and manage your risks• Aim at establishing true partnerships – ensure
that there are mutual benefits from working together
Auditing / certification / verification Ch i f t d Marketing support
Capacity Building
&
Technical Assistance
Certification
&
Sustainability Standards
Market development
&
Corporate engagement
Training and support for producers
verification Chain of custody -traceability
Corporate engagement
Marketing support and brand awareness
producers / processors buyers / exporters / importers distributors / brands / retailers / industry groups consumers
LAND USE PRACTICES BUSINESS PRACTICES CONSUMER BEHAVIOR
BUSINESS COLLABORATIONS
Incentivize agricultural
adaptation and
7
pmitigation
2
Promote sustainable
forest
8
forest management
Support credible carbon
9
markets
BUILDING CAPACITY TO ENABLE REDD+
Strengthen international
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REDD+ framework
WHAT CAN NGOS BRING TO
BUSINESSES COMMITTED TO
CLIMATE CHANGE ACTION WITHIN
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CLIMATE CHANGE ACTION WITHIN
THEIR SUPPLY CHAINS?
NGO INFLECTION POINTS
POLICYPOLICYCOMMUNICATECOMMUNICATE
12
ASSESSMENTASSESSMENT
IMPLEMENTIMPLEMENT
VERIFYVERIFY
BUILDING COMPANY CLIMATE POLICIES
• Map out a climate policy
• Identify climate risks in supply chain
POLICYPOLICYCOMMUNICATECOMMUNICATE
• Recommend emission reductions targets
• Advocate for quality carbon offsets
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ASSESSASSESS
IMPLEMENTIMPLEMENT
VERIFYVERIFY
3
ASSESSING BASELINE CONDITIONS
• Life Cycle Assessment
• Carbon Footprinting
ASSESSASSESSPOLICYPOLICY
• Needs for technical assistance
• Feasibility of mitigation/adaptation
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IMPLEMENTIMPLEMENT
VERIFYVERIFY
COMMUNICATECOMMUNICATE
IMPLEMENTING ACTIONS
• Technical assistance
• Promote best practice
IMPLEMENTIMPLEMENTASSESSASSESS
• Carbon project development
• Link investors to projects
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VERIFYVERIFY
COMMUNICATECOMMUNICATE
POLICYPOLICY
VERIFY, MONITOR, REPORT
• Monitor and evaluate progress
VERIFYVERIFYIMPLEMENTIMPLEMENT
• Impact and research
• Ensure conformance to verification
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COMMUNICATECOMMUNICATE
POLICYPOLICY
ASSESSASSESS
VERIFY, MONITOR, REPORT
• Press and social media
COMMUNI‐CATECOMMUNI‐CATEVERIFYVERIFY
• Publications
• International networks
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POLICYPOLICY
ASSESSASSESS
IMPLEMENTIMPLEMENT
The Rainforest Alliance works to conserve biodiversity and ensure sustainable livelihoodsby transforming land-use practices, business practices and consumer behavior.
The Rainforest Alliance works to conserve biodiversity and ensure sustainable livelihoodsby transforming land-use practices, business practices and consumer behavior.
by engaging consumers directly with the organisation and its supply chain partnerships, bringing sustainability and community to life for consumers in relevant, interesting ways (e.g. online “meet our farmers” programme)
Social Energy Plot: Dairy
…reflected in best in class dairy and one of highest environmental performances
Business Ecosystems TrainingLearn how to train business on ecosystems
Conservation Campus
11 Sept 2012, 09:00-13:00
Introducing Business Ecosystems Training (BET)
program
The business case for training
72% of CEOs see education as the global development issue most critical to address for the future success of their business
86% of CEOs think that companies should invest in enhanced training of managers to integrate
t i bilit i t t t d ti
3
However, only 60% of them are implementing this
sustainability into strategy and operations
Source: United Nations Global Compact CEO Survey 2010 (based on 766 completed responses)
Rationale for developing BET?
Business both impacts and depends on ecosystems
However, issues tend to be poorly understood
N d t fill k l d
Business
ImpactsDepends
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Need to fill knowledge gaps
Ecosystems
What is BET?
A comprehensive capacity building program that aims to equip business with the skills it needs to better understand, measure, manage and mitigateecosystem impacts and dependencies
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Leverages the wealth of existing WBCSD materials, methodologies and tools, also including other resources
Open-source
Who is it for?
Business audience
Different levels of management & seniority
Wide range of departments: from SD to procurement to finance
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Any professional who needs to manage its company’s risks and
opportunities
2
Program development
Governance: advisory committee made of ecosystem and education experts
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Curriculum design: by WBCSD member company KPMG
Structure (1/2)
A modular training programModules can be delivered individually or together
MODULE 1
Understanding the links between ecosystem services
and business
MODULE 2
Assessing business impacts and dependencies on
ecosystems
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MODULE 3
Valuing ecosystem services - an introduction
MODULE 4
Managing and mitigating business impacts on
ecosystems
Structure (2/2)
Customizable Different options for running BET:
As a standalone 2.5 day course
As two separate training blocks, i.e., a 1 day introduction followed by a further 1.5 day course
Business Ecosystems Training Score Card My company has been affected by the following challenges:
Water scarcity Yes No Don’t know
Climate change Yes No Don’t know
Habitat change Yes No Don’t know
Biodiversity loss Yes No Don’t know
Overexploitations of oceans Yes No Don’t know
Nutrient overloading Yes No Don’t know
Other:
12September 2012
Other: ……………………………………………………………………………………………………...
My company benefits upon or impacts on the following ecosystem services:
ProvisioningThe goods or products obtained from ecosystems such as food, freshwater, timber, and fiber
Benefits Impacts Don’t know
RegulatingThe benefits obtained from an ecosystem’s control of natural processes such as climate, disease, erosion, water flows and pollination, as well as protection from natural hazards.
Benefits Impacts Don’t know
3
Discussion questions (cont.)
Business Ecosystems Training Score Card My company has been affected by the following challenges:
CulturalThe non material benefits obtained from ecosystems such as recreation, spiritual values and aesthetic enjoyment
Benefits Impacts Don’t know
Note: we are not asking this specific question regarding supporting services as these services are underlying the above 3 categories (Supporting services: the natural processes such as nutrient cycling and primary production that maintain the other services)
My company has taken the lead on addressing ecosystems:
13September 2012
To manage risks Yes No How?…………………
To improve operational efficiencies Yes No How?…………………
Tightened public policies on natural resource management or operational permitting
Traditional risk management processes do not always capture ecosystem risks / opportunities
Different risks and opportunities – overview
Business Issue
Operational Legal Reputational Market Financing
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5 key risks / opportunities for
businesses
Company commitmentsRio Tinto:
“ Our goal is to have a net positive impact on biodiversity by minimizing the negative impacts of our activities and by making appropriate contributions to conservation in the regions in which we operate.”Source: http://www.riotinto.com/documents/ReportsPublications/RTBidoversitystrategyfinal.pdf
Sony:
“Sony strives to achieve a zero environmental footprint throughout the lifecycle of our products and business activities.”
PPR:Implement an Environmental Profit & Loss Account (E P&L) across all Luxury and Sport & Lifestyle global brands by 2015.Source: http://www.ppr.com/en/press/press-releases/ppr-commits-group-environmental-profit-loss-account-2015
4
How can business respond?
WBCSD encourages the business community to proactively address risks and explore opportunities by:
Measuring / valuing and managing / mitigating their ecosystem impact and dependence
Innovating and helping develop new markets for ecosystem services and eco-efficient goods, services & technologies
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Encouraging suppliers, purchasers and consumers to adopt best practices
Entering into creative partnerships to address on-the-ground issues
Promoting “smart” ecosystem regulation that reverses degradation, leverages market forces and “levels the playing field” for all.
Exercise - Sustaining the Ecosystem for Water, Wildlife and Community in India – Ambuja Cement (Holcim)
The issue (1/2)
Ambuja Cement:
leading supplier of cement, aggregates and ready-mixed concrete in India.
Employs approximately 4,500 people.
Operates the Ambujanagar cement plant in the Kodinar region of G j t I di
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Gujarat, India.
The facility has 3 closed and rehabilitated quarries and 6 active quarries.
To ensure the future availability of the key raw material required for cement (limestone), the plant will be aiming to enhance capacity at some of its other active mines.
Exercise - Sustaining the Ecosystem for Water, Wildlife and Community in India– Ambuja Cement (Holcim)
The issue (2/2)
The Ambujanagar facility is located between the Arabian Sea and the GirSanctuary and National Park, which together are a designated protected area. The Gir National Park provides crucial habitat for the last surviving population of the Asiatic lion.
There have been critical problems of freshwater availability in the state of Gujarat since 1970.
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The area where the cement plant is located is in a Coastal Regulation Zone.
Owing to over-withdrawal of freshwater and intensive land-use in the Kodinar region, there has been marked depletion of the water table and an associated serious increase in water salinity from the ingression of seawater into the water table.
Business risks and opportunities - Exercise
Type Risk Opportunity
Operational
Legal and political
R t ti l
22September 2012
Reputational
Market and product
Financing
Exercise - Sustaining the Ecosystem for Water, Wildlife and Community in India– Ambuja Cement (Holcim)
The response (1/2)
Ambuja worked with local communities, natural resource management experts, non-governmental organizations and local authorities.
Adopted a landscape approach in addressing impacts of the quarrying activities.
Capturing and preserving freshwater – e.g. rainwater harvesting, converting the mined-out pits into artificial lakes and wetlands,
23September 2012
g p ,constructing 165 dams and small barriers to reduce the loss of water through shallow rivers and streams, etc
Quarry rehabilitation through tree planting: different tree species have been planted. Small patches of land are earmarked to grow medicinal plants and fodder-yielding plants. The company is also planning Jatropha plantations, which will serve as a source of bio-fuel in coming years.
Conserving the flora and fauna of Gir: a large number of tree species native to the Gir Forest are being planted in the reclaimed mines.
Exercise - Sustaining the Ecosystem for Water, Wildlife and Community in India– Ambuja Cement (Holcim)
The response (2/2)
Adopted a landscape approach in addressing impacts of the quarrying activities.
Protecting coastal zones through mangrove development: State authorities have given 150 hectares of land to the company for the development of mangrove along the Gujarat Coast through the planting of three native tree species.
24September 2012
Sustaining local livelihoods: Local people are employed in rehabilitation activities such as pit preparation, watering, tree planting, nursery development and construction of water harvesting structures.
5
Exercise - Sustaining the Ecosystem for Water, Wildlife and Community in India– Ambuja Cement (Holcim)
The results
The water management program has raised the water table by eight meters, controlled the water salinity problem (fig. 1) and made quality freshwater easily available to the communities
In 2011, Ambuja Cement achieved its target of becoming water positive. This approach has helped the company strengthen relationships with all local stakeholders, which has guaranteed its li t t i th f t
25September 2012
license to operate in the future.
How to implement BET ?
Implementing BET
Delivering BET to business
To deepen knowledge and understanding of ecosystem services for key decision makers.
T d l i li t
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To develop specialist professional skills.
The more targeted the audience is, the better
Implementing BET
Possible audience within a company:
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Executive overview presentation
BET Roll Out 2012Status Update (August)
July ‘12
Spring ’12 BET delivered to 25 FLTs, who
became BET specialists within their companies BET sessions targeted at members
companies:- Montreux Members’ Meeting- Webinars x 2
2013Pl t t i
Aug. ‘12 CEV/BET Session
delivered to NMC (Swedish network of 270 cies) by NGO Gaia
USA
Switzerland
India
JapanKorea
Netherlands
Spring ‘12 BET part of the IUCN NL’s Leaders
for Nature Initiative (3 training sessions delivered so far)
Sweden
Portugal
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Module 1 translated in Japanese Delivered to
Hitachi’s employees
July ‘12Module 3 delivered in
Brazil (30 participants from 21 companies) Discussions about BET
customization to Brazil
October ‘12 (COP11) Launch of Leaders for Nature India
– BET at the heart of the initiativeSept-Nov ‘12
BET customization to IndiaDec‘12
Train the trainer in Delhi
Plan to customize and deliver BET in the US, in partnership with a US University
Sept ‘12 BET Conservation Campus – 4
hour session during the World Conservation Congress (30 participants from NGOs, Govt and business)