Corporate Biodiversity Management Handbook

Corporate Biodiversity Management HandbookA guide for practical implementation

IMprInt

Published by: Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) Public Relations Division · 11055 Berlin · GermanyEmail: [email protected] · Website: www.bmu.de/english

Contact: ‘Biodiversity in Good Company’ Initiative e. V. Potsdamer Platz 10 · 10785 Berlin · Germany Managing Director: Carolin Boßmeyer · Phone +49 (0)30 / 40 81 90-271 Email: [email protected] · Website: www.business-and-biodiversity.de/en

Authors: Prof. Dr. Stefan Schaltegger (Leuphana University Lüneburg) Uwe Beständig (Leuphana University Lüneburg)

Editors: Dr. Burkhard Schweppe-Kraft (BfN) Edgar Endrukaitis (GIZ) Judith Winterstein (GIZ) Elena Brandes (GIZ) Benedikt Schöneck (GIZ) Sally Ollech (GIZ)

Technical Revision: BMU Division N I 4 “International Nature Conservation”

Translation: Paul Lauer (Leuphana University Lüneburg) Nathan Droesch (GIZ)

Lector: Veit Ebermann

Design: First and Second Print: Schumacher. Visuelle Kommunikation, Darmstadt Third Print: design_idee, büro_für_gestaltung, Erfurt

Printing: Silberdruck oHG, Niestetal

Photos: Cover: Andreas Becker; P. 2: Elena Brandes; P. 4: Laurence Chaperon; P. 7: Josue Saura; P. 8: Guillermo Jones / dreamstime.com; P. 8: Chinaface / istockphoto.com; P. 20: © jean claude braun / fotolia.de; P. 20: © picsfive / fotolia.de; P. 25: LawrenceKarn / istockphoto.com; P. 25: asiseeit / istockphoto.com; P. 39: © Piray / fotolia.de; P. 39 © daniel schoenen / fotolia.de; P. 51: Ralph125 / istockphoto.com; P. 51: AVAVA / istockphoto.com

Date: January 2012

Third Print: 4.000 copies (First Print 1.200, Second Print 1.000)

1

Corporate Biodiversity Management HandbookA guide for practical implementation

prof. Dr. Stefan Schaltegger, Uwe Beständig

Centre for Sustainability Management (CSM), Leuphana University Lüneburg

2

3

ForewordbyGermany’sFederalEnvironment

MinisterDr.NorbertRöttgen 5

Preface 6

Summary 9

1 Introduction 10

2 Fieldsofaction 12

3 Businesscasesforbiodiversity 20

4 Operationalisation 26

4.1 Managementcycle 26

4.2 Screenandidentifyfieldsofaction 27

4.3 Setobjectives,planprocessesandactivities 29

4.4 Methodsandtools 38

4.4.1 Overviewofmanagementtools 38

4.4.2 Toolsforbiodiversitymanagement 44

5 Conclusion 52

6 Endnotes 53

7 Listoffigures 54

8 Listoftables 54

9 Literature 55

10 Appendix 58

10.1 ‘BiodiversityinGoodCompany’Initiative 58

10.2 Glossary 60

Contents

4

5

Ecosystemsarethebasisforalllife.Theirservicesareindispensibleformankind.

Nevertheless,biologicaldiversityinourworldisdisappearingatadisturbinglyrapid

pace.Ifwecontinuetodestroytheenvironment,wewillnotonlyeliminatethebasis

ofourfutureexistencebutalsoofourfutureeconomy.

Itisessentialthatallplayersjoinforcesandpooltheireffortsinordertocombatthe

globallossofbiodiversity.Thereisanurgentneedforinternationalandnationalcoop-

eration.Withtheconcertedeffortsofpolitics,science,citizensandeconomicsystems,

progresstowardsthisendcanbemade.Economyandecologyarenotopponents,but

rathertheyareinterdependent.Theyaretwosidesofonecoin.

DuringthisInternationalYearofBiodiversity,emphasizingtheeconomicaswellas

ecologicalrelevanceoftheconstantlossofbiologicaldiversityisatoppriority.

Therefore,Iemphaticallywelcomethe‘BiodiversityinGoodCompany’Initiative’s

handbookforcorporatebiodiversitymanagement.Forthefirsttime,businessand

biodiversityarebeingdealtwithfromapracticaleconomicperspective.Thishand-

bookgivesenterprisesconcreteimplementationtoolsforinstitutingbiodiversity

managementpractices.Atthesametimeitintroducesmethodsandtestedinstru-

mentsthroughbest-practiceexamplesfromthe‘BiodiversityinGoodCompany’

Initiativemembers.Iampleasedthat,throughacoordinatedandinnovativeprocess

betweenscienceandbusiness,thefirsthandbookofthiskindhasbeensuccessfully

created.

Dr. Norbert Röttgen

FederalEnvironmentMinister

Foreword by Germany’s Federal Environment Minister Dr. norbert röttgen

6

DearReaders,

Withtheincreasinglossofbiologicaldiversity,thereisanincreaseinriskforbothsoci-

etyandbusiness.Thespectrumofriskisbroadandextendsfromhigherprocurement

costs,torestrictions,throughgovernmentregulationtocustomerdefection.However,

reducingconcernsaboutbiodiversitytoissuesofriskwouldmeanignoringthecon-

siderablebusinessopportunitiesthatitoffers.Biodiversityisladenwithemotionsand

yetfullofinnovativepotential,therebyofferingbusinessesconcreteopportunities.

Untilrecentlythesepossibilitieshavebeenlargelyignored,yettheyhavethecapacity

togivecompaniesacompetitiveadvantage.

Thepurposeofthe‘BiodiversityinGoodCompany’Initiative,whichwasinitiatedby

theGermanMinistryfortheEnvironmentin2008,istoincreasethebusinesscommu-

nity’sawarenessoftheimportanceofbiodiversityandtosupportthemintheirefforts

tointegrateaspectsofbiodiversitymanagementintotheircorporateactivities.

Thatiswhywehavewrittenthishandbook–toshowyouthereasonsfortakingad-

vantageofandthepotentialfieldsofactionforcorporatebiodiversitymanagement.

Wewilltakeacomprehensiveviewofmanagement,onethatoffersspecificstarting

pointsinavarietyofindustriesandforbusinessesofdifferentsizes.Thisperspectiveis

illustratedwithmanybest-practiceexamplesthatimpressivelydemonstratethecur-

rentrelevanceoftheissue.

Withthehandbook,youwillseehowtodevelopspecificfieldsofactionandhow

businesssuccesscanbesustainedandstrengthenedbyimplementingaprofessional

biodiversitymanagementsystem.

preface

7

WewouldliketothankRainerKant,MartinOldelandandMeikeStreckerfrom

B.A.U.M.e.V.(GermanEnvironmentalManagementAssociation).Aspecialthanks

goesouttoElenaBrandes,JudithWinterstein,LukasRüttinger,MichikoUchiyama,

NathanDroesch,BenediktSchöneck,AlexanderLloydandSallyOllech,oftheGTZ,as

wellasJochenFlasbarth,who,asaformerdepartmentheadintheFederalMinistryfor

theEnvironmenttogetherwithNicolaBreierandotherassociates,notonlymadethis

projectpossible,butalsoactivelysupportedit.Andfinallywewouldliketoexpressour

greatestthankstoallofthepeopleatthe‘BiodiversityinGoodCompany’Initiative’s

membercompaniesaswellastherepresentativesoftheenvironmentalassociations

thatenthusiasticallyandconstructivelysupportedourwork.

Wewouldappreciateyourfeedbackandwishyoueverysuccessinyourcorporate

biodiversitymanagementefforts.

Prof. Dr. Stefan Schaltegger

CentreforSustainabilityManagement(CSM),

LeuphanaUniversityLüneburg

Edgar Endrukaitis

CoordinatoroftheBiodiversity

inGoodCompanyInitiative

Uwe Beständig

8

Industrial production methods need ecological guiding principles (left)

Conservation of regional living spaces and traditional production methods (right)

9

Thenexusbetweenbiodiversityandsustainablebusinessdevelopmentismultifacetedandcom-

plex.Thishandbookanalysesbiodiversityinbusinesssystematicallyandvisuallypresentsthefind-

ingsintablesthroughoutthefollowingchapters.

Table1Showstheimpactsvariouscorporatefieldsofactioncanhaveonbiologicaldiversitybased

onlocationdevelopment,rawmaterialprocurementorproduct(p.28).Economicmotivationsthat

justifyengagingincorporatebiodiversitymanagementarerepresentedinTable2(p.30).

Table3depictstheaffectsbiodiversityhasonthevariouscorporatedepartments.Afteridentifying

thesefields,business,functionalandarea-relatedobjectivescanthenbeformulated.Theyenable

bothsustainablebusinessdevelopmentandtheconservationofbiologicaldiversity.Table4lists

examplesofsuchobjectives(p.36).

Thehandbookthenoutlinesanumberofproventoolsforuseinbiodiversitymanagementaswellas

thosethatcanbeadaptedtohelpachievecorporatebiodiversitygoals.

Throughoutthisguidethereareillustrativebest-practiceexamplesfromthe‘BiodiversityinGood

Company’Initiative.Thehandbookalsooffersaconcrete,tangibleintroductiontocorporatebiodi-

versitymanagement.

Anonlineversionofthehandbookatwww.business-and-biodiversity.comfeatureschecklists,

extensivedescriptionsofthebest-practiceexamplesandfurtherinformationonthetopic“Business

andBiodiversity”.

Summary

10

Thepreservationofbiologicaldiversity(biodiversity)hasuntilrecentlybeenchieflylefttogovern-

mentagenciesandconservationorganisations.Inbusinessthistopichasbeenlargelyignored.Only

afewpioneercompanieshaveusedasystematicapproachtobiodiversitymanagementtoreduce

businessrisksandtotakeadvantageofbusinessopportunities.1

Biodiversity as a business opportunity

Theemotionalcharacterofbiodiversityoffersagreatopportunityforbusinesses.Forexample,in

thei-to-itripsofferedbyTUI,guestswantingtocombinetravelwithacommitmenttotheenviron-

mentorsocialissuescanparticipateinvolunteertripsandbecomeactivelyinvolvedinwildlife

conservationprojectsprotectingturtlesorelephants.

Biodiversity as a way to reduce business risk

Biologicaldiversityisalsothebasisforwholeeconomicsectorssuchasthefishingorfish-processing

industries.Thefutureavailabilityoffishandseafoodisobviouslyanessentialcomponentoflong-

termbusinesssuccess.DeutscheSeehastakenonthisresponsibility.Thecompanyiscontinually

reviewingitsproductlineforendangeredspeciesandrequiresitssupplierstousesustainablefish-

ingmethods.

Corporatebiodiversitymanagementinvolvesthemethodicaldesignofprocesses,productsand

projectstoensurebusinesssuccesswhileprotectingbiodiversity.Itsystematicallyanalysesthe

impactofbusinessactivitiesonbiodiversityaswellasitsstructuralandsocialconditionsinorderto

findstrategicmeasuresthatleadtosustainabledevelopmentforbothbusinessandsociety.2

Theimplementationiscarriedoutbycorporatedepartments–suchasprocurement,production

ormarketing–whichthendevelopmeasuresaimedatconservingbiodiversityinspecificfieldsof

action(Figure1).

FieldsofactionaredescribedinChapter2.Theyarethestartingpointsforcorporatebiodiversity

managementastheycanbeusedtoinfluencethecausesofbiodiversityloss(impactfactors).

Thepotentialdriversbehinda‘businesscaseforbiodiversity’areofteninfluencedbythewaya

businessbehavesinthevariousfieldsofaction.Thesedriversareeconomicfactorsthatincreaseor

decreasebusinesssuccess.TheyaredescribedinChapter3.Moreover,theshadedboxesillustrate

thatbeyondphilanthropicreasonsthereareactuallyeconomicreasonsforimplementingcorporate

biodiversitymanagement.

Finally,Chapter4specifiesavarietyofmethodsandtoolsforputtingcorporatebiodiversity

managementintopractice.

1 Introduction

11

Figure 1: Corporate biodiversity management flow diagram

Procurement

Corporate departments

Production Marketing Sales and distribution Research and development Human resources

Biodiversity conservation and sustainable corporate development

Sites and facilities

Fields of action

Supply chains, commodities and material Product

Production and manu-facturing processes

Transport and logistics Personnel

… affect …

… and achieve …

Habitat change

Biodiversity impact factors Business case drivers

Climate change

Pollution

Invasive alien species

Overexploitation

Costs

Reputation and brand value

Sales and price

Risk mitigation

Innovation

Business model

… develop activities in …

12

Throughthedevelopmentanduseofcompanysites,buildingsorthroughemissions,etc.businesses

directlyaffectbiologicaldiversity.Infishing,farmingandforestry,theshockontheenvironment

ismostlydirectaswell.Often,however,thereisanindirectchangetothehabitatcaused,inpart,by

rawmaterialsuppliersandthesupplychain.

Inadditiontolocationdevelopmentandsupplychainmanagement,corporatebiodiversitymanage-

mentencompassesfurtherfieldsofaction.Businesssuccessandimpactfactorsonbiodiversitycanbe

managedbyimplementingthenecessarystrategies.Thefollowingisalistofthemostimportant

fieldsofactionwithdescriptionsforcorporatebiodiversitymanagement:

Sites and facilitiesTheconstructionanduseofofficebuildings,productionhallsorcarparkschangetheexisting

habitatandaffectbiodiversity.Thisappliestobothmanufacturingandserviceindustries.3Thearea

usedbythefishing,farmingandforestindustriesisincludedinthelistofsites.Facilitiescandirectly

andindirectlyaffectbiodiversity,oftendamagingthesurroundingareabycarvingintoplantand

animalhabitats.Additionally,constructionanduseofcommercialfacilitiesactsasgreenhouse

gassinksorsources.Forinstance,ifawetlandistobeusedasacompanysiteandisdrainedand

dried,vitalecosystemswillbedestroyedwhilegreenhousegasesareemittedintotheenvironment.

Similarly,clearcuttingasectionofforestdestroystheanimalandplantkingdomstogetherwitha

naturalCO2sink.Intheinitialtransformationofrawmaterialstouseableconstructionmaterials,

extractingrockfromquarriesorploughinggrasslandsheavilyimpactplantandanimalhabitats.

Green corridors in the plantation of Klabin

Klabin,aBrazilianpaperandcardboardproducer,managesitsforestsinamosaicpattern.Planted

treesintermingledwithpreservedforestsstabilisethenativewoodlands’equilibrium.Thismodel

contributestodevelopingecologicalcorridors,thuscontributingtothepreservationoflocalbiodi-

versityaswellashelpingregulatewaterflowsandsoilerosion.

Mitsui Sumitomo Insurance – Green oasis on the rooftop in a megacity

MitsuiSumitomoInsuranceconstructedarooftopgardenontopofitsheadofficeincentralTokyo.

Comprisingover7000m2ofgreenspace,thegardenprovidesasafeplaceforwildbirdsandisinte-

gratedinanecologicalnetworkofgreenpublicareas.

Supply chains, commodities and materialsThetypesofcommoditiesandrawmaterialsusedalsoimpactbiodiversity.Forexampletheacquisi-

tionofminerals,energy,agriculturalproducts,fish,wood,medicinalherbsorplants–genetically

modifiedornot–impactsregionsthatoftendonotbelongtothebusinessesbenefitingfromthem.

Suchunintendedconsequencescanbereducedoravoidedaltogetherbyimplementingtheappro-

priatesupplychainmanagement.Thesupplychainmanagementisthestartingpointforregulating

•

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2 Fields of action

13

extractionmethodsaswellasthequantityandqualityofpurchasedmaterials.Similarly,thisap-

proachisapplicabletotheservicesector.Toagreatextentthisindustryalsousesrawmaterialssuch

aspaperandgoodswhoseproductioncanpositivelyornegativelyimpactbiodiversity.

Supply of sustainable raw materials at Weleda

Thisproducerofmedicinesandnaturalcosmeticproductsextractsitsherbalrawmaterialslargely

fromcontrolledorganiccultivationorfromcertifiedwildplantcollectingandintegratesnature-

orientatedelementsintoitscultivableland.Inordertoensurealong-termsupplyofwildplants,

Weledapromotestheconservationofnaturalhabitatsthroughextensivecare.

Supply chain management at the Otto Group

TheOttoGroupshowshowcommercialenterprisescanhaveapositiveimpactonrawmaterial

production.Forexample,thecompanypromotesthesustainableproductionofcottoninAfrica

bycontrollingitsproductlineandecologicallymanagingtheirsupplychain.Inaddition,forthe

productionoffurniture,theOttoGroupprocuresitswoodusingastrategythathinderstheuseof

endangeredwoodspeciesandtimberillegallyloggedfromforests.

Aleph – Supply chain management for “biodiversity-friendly rice”

TheJapaneserestaurantchainAlephintendstolauncha“biodiversity-friendlyrice”.Aspartofthis

effort,Alephhasconvincedriceproducerstocultivatericewithouttheuseofagrichemicalsand

tocreatenaturalbiotopesinricepaddies.Thiseffectontheirsupplychainhasalreadyledtoan

increaseinthenumberofspeciesinthericepaddies.

productDependingonproductorservicedesign,thefinalproductwillhaveagreaterorlesserimpacton

biodiversity.Negativeimpactscanbereducedinanumberofways,includingchangingtheservice

designorbysubstituting,reducingandrecyclingmaterialsusedintheproduction.Forexample,

substitutescanbefoundforphosphatesindetergentsororganicsolventsstillallowedinmany

countries;heavymetalscanbereducedinpaints;ortravellingandotherservicescanbesustainably

organized.Positiveeffectscanalsobecreatedbyusingrawmaterialsinproductsthatcontributeto

theconservationofbiologicaldiversity,suchastheuseofoldertypesofgrainorjuicesfromtradi-

tionalmixed-croporchards

Productdesigncanalsobemorethaneco-design,especiallywhenitisapartof“cause-related

marketing,”amethodthatenablesthemanufacturertocombineproductssaleswithdonationsfor

specificprojects.Consumerprotectionaspectscanalsobecombinedwithbiodiversityprotection.

Anexampleofthisistheinformationatravelagencygivestoitscustomersaboutillegalsouvenirs

fromtheIvoryCoast.

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14

Use of water-based varnish at Faber-Castell

Thismakerofpencilshasarawmaterialprocurementstrategythatinvolvesbuyingwoodharvested

fromcertifiedforests,wherebiodiversityisprotected.Theyarealsothefirstcompanyinthisindus-

trytoexclusivelyusewater-basedvarnishinitsGermanproduction.

Bionade Quince – New product from a forgotten fruit

Whendevelopinganeworganicbeverage,Bionadedecidedinfavourofquince.Regionalcontract

growersonceagaincultivatedthisold,nativeandtastybutalmostforgottenfruitvariety.The

introductionofthisunusualflavourthusmakesacontributiontotheconservationofagricultural

diversity.

Mori Building - Green structuring of public places

IntheToranomonandRoppongiareasofTokyo,MoriBuildingisremediatingintensivelyusedland.

Withtheconcept“lifesurroundedbynatureintheheartofthecity”theJapanesecompanycreates

publicareasandgreenspaces,revitalizingnatureinthecitybyprovidingnativespecieswithnatu-

ralvegetation.ThisprojectwasthefirstinJapantoobtainthehighestpossibleratingintheJapan

HabitatEvaluationandCertificationProgram(JHEP).

production and manufacturing processesResourceconsumptionandemissions,suchaswastewater,airbornepollutantsorgreenhousegas,

aregenerallyhazardousforbiologicaldiversity.Therefore,optimisingproductionprocessesisusu-

allyaneffectivecontributiontoprotectingbiodiversity.Additionally,animprovedprocessdesign

canreducethenecessarynetinputofrawmaterialsandenergy.Thisoftenresultsinlowerproduc-

tioncosts.

Processesthatuseanimals,plantsorbacteriacanalsobechanged.Forinstance,usingsustainably-

runfishfarmscanhaveamoregentleimpactontheenvironmentthanmarinefishing.

Lowering water use at Audi

Waterisessentialforlife–anditisascarcegood.Inordertodecreasetheuseofwater,Audirecycles

96%ofthewaterneededinitsplantinIngolstadt.Italsogathersrainwaterinundergroundcisterns

andcollectingtanks,which,overthelast20years,hasloweredtheamountofwaterrequiredper

autobyalmost70%.

Native Organics’ new production systems increase the biodiversity on their sugarcane farms

TheBrazilianproduceroforganicsugardevelopedanewproductionsystem,basedon“green”cane

harvestingincontrasttotraditionalburntcaneharvesting.Togetherwithorganiccultivationthe

newsystemleadstobiodiversitylevels23timeshigherthaninconventionalsugarcanefarms.

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New processing technique leads to better, more biodegradable products at Saraya

Saraya,aJapaneseproducerofhygieneproducts,developedanewfermentationprocesstofabri-

catesurfactantsfromsustainablepalmoil.Theprocessallowstheproductionofdetergentswhich

havebetterdegradabilitythanconventionalmarketalternatives.Thisresultsinsustainableclean-

ingagentswithlessenvironmentalcontamination.

transport and logisticsTransportingrawmaterialsandmanufacturedproductsaswellasbusinesstravelsleadstotheemis-

sionofgreenhousegasesanddust.Transportationinfrastructurecanfragmenthabitats,reducing

theirfunctionalityandimpedingnaturalgeneticexchange.Furthermore,increasinggoodstrans-

portationenablesnon-nativespeciestoinvadenewhabitats,therebydisplacingspeciesnativeto

thearea.

personnelAsustainablebiodiversitymanagementsystemwillbeallthemoresuccessfulwhentheemployees

areconvincedofitandareallowedtoactivelytakepartinachievingitsgoals.Theyaretheoneswho

aretakingthedecisionsonaday-to-daybasisandwhoareimplementingmanagementstrategies.

Inaddition,employeesvolunteeringtimehelpprotectbiologicaldiversity.Whenthenecessary

structuresarecreatedandvolunteerprogrammesarepromoted,itcanstrengthenemployeecorpo-

rateidentity.

Biodiversity training at UPM-Kymmene

Inordertoconserveandincreasebiologicaldiversityinthecompany’sownforests,thisFinnishfor-

estrycompanyhasdevelopedaglobalbiodiversityprogramme.Thisprogrammeinvolvestraining

forallwoodcuttersandforestmanagers,focusingonwhatmakesahabitatvaluable,howitcanbe

protectedandhowthiscantakeplaceaspartofasustainableforestrymanagementprogramme.

Fujitsu - tropical forest regeneration

Fujitsugroupemployeesparticipateintheregenerationandreforestationoftropicalforestsin

Thailand,MalaysianBorneoandinthemangroveforestsinVietnam.Today1.18milliontreeshave

beenplantedon670haofland.Theregenerationoftheforestsaimstosupporttherichbiodiversity

foundinthisarea.

Dependingonhowthesefieldsofactionaredeveloped,therecanbeawiderangeofeffectsonbio-

diversityandbusinesssuccess.

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Biodiversity and ecosystem services

What do biodiversity and ecosystem services (ESS) mean?Biodiversityincludesthediversityofecosystemsandspeciesaswellasthegeneticvariationwithin

thespecies.4Biologicaldiversityisthebasisforanumberofdifferentservicesforpeopleandthe

economy.Theseecosystemservicescanbeclassifiedas: 5

• Provisioning services:

Theseincludetheproductionofelementaryrawmaterialssuchasdrinkingwater,food,sources

ofenergyormedicines.

• Regulating services:

Inaddition,ecosystemsplayanelementaryroleinregulatingtheclimateorextremeflood

events,purifyingwater,actingasabufferorbreakingdownharmfulsubstances.

• Cultural services:

Culturalservicesincludeagreatvarietyofcivilisation-orientedservicefunctions,suchasgiving

aesthetic,emotionalorspiritualinspiration,providingrecreationopportunitiesorservingasa

modelforscientificdiscoveries(bionics).

• Supporting services:

Ecosystemssupportdifferentproductionactivities,bymaintainingthewatercycleandsoil

fertilityaswellastheproductionofbiomassandfoods.

Researchshowsthatadecreaseinbiodiversityusuallylowerstheservicesandthestabilityof

ecosystems.6

17

reasons for the loss of biological diversityDeterminingtheextentofbiologicaldiversitylossisnoeasytask,assessmentsofknownthreatened

species,suchastheRedList,showthatmanyoftheseareeitherendangeredorcriticallyendan-

gered.7Thethreattobiodiversityhasincreasedoverthepastdecades.TheWorldWideFundFor

Nature(WWF)estimatesthatthenumberofspeciesdeclinedby30%between1970and2005.8

Anumberofstudiesalsoshowthatthelossofbiologicaldiversityisaccompaniedbyhighmacro-

andmicro-economiccosts.9

Thefactorswiththehighestimpactonbiodiversityare: 10

Habitat transformationBoththeextensivecultivationofnaturalhabitatsandtheirfragmentationforcechangesinexisting

ecosystems.Thisalsoinvolvesthedestructionofhabitatsincoastalandmarinesystems,forexam-

ple,throughtheuseofbottomtrawling.

Sustainable use and maintenance of landscapes by South African winegrowers:

TheOakValleyEstatecultivateswine,fruitsandgreenhouseflowersintheFynbosareaofSouth

Africa.Thesemountainsarepronetocontinuousinvasionbyalienplantspecies,whichmayuse

upto50%ofthepotentialavailablewatersupply.Bypreventingtheseplantsfromspreadingwith

anannualeradicationprogramme,OakValleyEstatecontributestobiodiversityconservationand

sustainablebusinessdevelopment.

Sustainable cultivation of cocoa by Ritter Sport

Cocoaplantsgrowbestintheshadeofnutrient-richrainforesttrees.Theyareoftenplantedtogeth-

erwithcoconut,bananaandrubbertrees.ThisiswhyRitterSportnowhasaprogrammetopromote

themixedcultivationofcocoainexistingrainforests.Togetherwithadequatelevelsofpayforsmall

farmers,thesepracticesdiscourageslash-and-burnagricultureandthedestructionoftherainforest.

Climate changeClimatechangeleadstoanalterationofexistingecosystems.Examplesincludeprogressivedeserti-

ficationorthelossofhigh-alpinezones.Butclimatechangealsomodifiesspeciesbehaviour,repro-

duction,competitivenessandfeedingrelationships,whichleadstoshiftsintheirgeographicrange.

Thisendangersthosespecieswhoseoriginalrangeshrinksordisappears.

Humanadaptationstrategiestoclimatechange–forexample,infloodandcoastaldefenceorin

agricultureandforestry–alsoaffectbiodiversity.TheIntergovernmentalPanelonClimateChange

(IPCC)estimatesthatanincreaseintemperatureof1.5–2.5°Cwouldthreatenbetween20and30%

ofplantandanimalspecies.11

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Invasive species (neobiota)Withthehelpofhumans,speciescanspreadtonewareas.Forexample,thiscanhappenonpurpose,

whenagriculturalplantsareimported,orunintentionally,whenballastwaterisdischargedfrom

ocean-goingvessels.Innewhabitatsthenon-nativespeciescandisplacenativespecies,transmit

diseaseorchangethegeneticpool.

Indigenous plants for humans and animals by Sekisui House

SekisuiHousepromotesthe“Gohonnoki”gardeningconcept,whichisdesignedtohelpmaintain

ecosystemsbyplantingindigenoustreestoattractlocalwildlife.Plantingtreesnotonlyimproves

theaestheticsoftheproperty,butitattractswildbirdsandbutterflies-creatingasmallecosystem.

Thissupportsanetworkforinteractingwiththesurroundingnaturalenvironmentandhasaposi-

tiveeffectonthequalityoflifeforthelocalresidents.

OverexploitationThegreatestthreattomarinesystemsisoverfishing.Currently50%ofthecommercially-fished

stocksarebeingfullyexploitedand25%overexploited.12

Thespecialisationandrationalisationthatgoeshandinhandwithanintensificationofagricultural

andforestryproductionleadstoalossofbiodiversity.Thisespeciallyaffectsthediversityofculti-

vatedplantsandanimalbreeding(agro-biodiversity).13

Sustainable fishing at Deutsche See

Topreserveglobalstocksoffish,DeutscheSeehasimplementedprocurementrequirementsthat

guaranteetraceabilityandtransparency.Inadditiontheproductlineisregularlyreviewedforen-

dangeredfishspeciesaswellasforthepossibilityofusingfishfromcertified,sustainablefisheries,

organicfishandfishfromaquaculture.

pollutionEverycompanyemitspollutantsintothesurroundingenvironment.Agriculturalover-fertilisation

isaprimeexampleofthedangertobiologicaldiversityfrompollution.Thisleadstothelossof

nutrient-poorsystemsandtothedisplacementofspecieslivinginthesehabitats.Theaccumulation

ofpersistenttoxicsubstancesandtoxicpollutants,caused,forexample,byshipwrecks,alsoendan-

gersbiodiversity.

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protecting biodiversityTolimittheworldwidelossofgeneticdiversity,speciesandhabitats,theUnitedNationsConference

onEnvironmentandDevelopment(UNCED)enactedtheConventiononBiologicalDiversity(CBD).14

Thisconventionpursuesthefollowinggoals(cf.Figure2):

• Theconservationofbiodiversity;

• Thesustainableuseofbiodiversity;

• Thefairandequitablesharingofthebenefitsarisingfromoftheuseofgeneticresources.

Toreachthesegoalsstrongcommitmentonthepartoftheprivatesectorisrequired.Thisrecog-

nitionledGermany,ashostoftheninthUNConferenceoftheParties(CoP9),tointroducethe

“BiodiversityinGoodCompanyInitiative”in2008.Companies,whohavebecomemembersofthe

initiative,haveallsignedaLeadershipDeclarationandcommittedtointegratingbiodiversityinto

theircorporatemanagementsystems.

•

Figure 2: Biodiversity and its conservation

Biodiversity

Genetic diversity

Species diversity

Diversity of ecosystems

Conservation Sustainable useJust

compensation for use

Ecosystem Services:• Provisioning• Regulating• Cultural• Supporting

Human well-being

20

Astartingpointforcorporatebiodiversitymanagementisoftenfoundinphilanthropicprojects,

forexample,makingdonationsorsettingupendowments.Suchactivitiesaregenerallywelcome.

However,astheyhaveanadditivecharactertothecorebusiness,theyarelargelydependenton

theeconomicsuccessofthecompany.Morepermanentmeasuresarethosethatsimultaneously

makeadirectcontributiontothecompany’ssuccess.A“businesscaseforsustainability”or,more

specifically,a“businesscaseforbiodiversity”occurswhentheconservationofbiologicaldiversityis

combinedwithstrengtheningacompany’scompetitiveadvantageandsuccess.

Thegoalofabusinesscaseforbiodiversityisbothtoconservebiodiversityandtoincreasetheeco-

nomicsuccessofthecompany.15Thisgoalcanbeachievedthroughtargeted,voluntarybiodiversity

conservationmeasuresthatgobeyondthelegalrequirements.Thisisoftenaidedbyintelligently

andefficientlycomplyingwithexistinggovernmentregulations,suchaswastewaterlimits.

Whendevelopingabusinesscaseforbiodiversityitisimportanttonotethattheprocessesimpact-

ingbusinesssuccesscancontainbothamarketandanon-marketcomponent.

Sinceabusinesscaseistheresultofastrategicmanagementprocessanddoesnotoccurautomati-

cally,itiscrucialtocarefullysetupabiodiversitymanagementprogramme.Withasystematic

analysisofthebusinesscasedrivers,therecanbeasearchforspecificopportunitiestocombinethe

conservationofbiologicaldiversitywithbusinesssuccess.Dependingonhowcorporateactivities

aredeveloped,theycanpositivelyornegativelyinfluenceabusinesscase.Driversofabusinesscase

forbiodiversityincludethefollowingvariables:

3 Business cases for biodiversity

Burdens on biodiversity: bulk goods and long distance transport (left)

Regional products: short transport routes and promoting diversity of local species (right)

21

CostsApproachestocostcuttingcanbefound,aboveall,insitemaintenanceextensification,inthe

reductionofenergyandresourceuse,andinthereductionofemissionsandwastethataresubject

tocharges.Thereareanumberofenvironmentalcostaccountingmethodsthatcanmakeavalu-

ablecontributiontoidentifyingsuchopportunities.Inaddition,costscanbereducedbypositively

changingintangibleaspects,suchasworkmorale.

Driver mix at HeidelbergCement

BiodiversitymanagementatHeidelbergCementhasacombinationofdrivers.Toensurethat

theyareabletocontinueminingrawmaterials,thecompanyiscommittedtoactivestakeholder

dialogue.Throughefficientbiodiversitymanagementandanopendialoguewithconserva-

tionagencies,NGOsandneighbouringcommunitiesaboutthestandardsthecompanyapplies,

HeidelbergCementhasbeenabletosavecosts(normallyincurredbyexpensivecultivationefforts

andlongapprovalprocesses)andenhanceitsreputation.

Environmental ground care at Axel Springer protects biodiversity and lowers maintenance costs

AxelSpringershowedthateconomicsandecologyarenotmutuallyexclusivewhentheyredesigned

thecompanygroundsattheirprintingfacilityinAhrensburg.Anaward-winningrenaturationpro-

grammeloweredthemaintenancecostswhileincreasingtheecologicalvalueofthegrounds.

Sales and priceAnincreaseinsalesispossiblewhenbuyersrecogniseanincreaseinvalueforthemselvesorfor

somethingimportanttothem.Dependingonthemarket,suchanincreaseinvaluecanbeachieved

throughecologicalorbiodiversity-relatedproductdifferentiation.Possiblemethodsincludeprod-

uctandproductioninnovationsaswellasbranddifferentiation.

The added value of ecological baby food from HiPP

HiPP,aproducerofbabyfood,iscommittedtousingrawmaterialsfromorganicfarms.Thisleadsto

aproduct-relatedincreaseinconsumervaluethatisrewardedbycustomerandbrandloyalty.

Saraya – Adding value with “Cause-related marketing”

Saraya,aJapanesedetergentproducer,showsthatdifferentiationispossiblebycreatingadditional

socialvalue.WiththesaleoftheirYashinomiwashingagents,thecompanyraisesawarenessand

consumer-drivensupportforSaraya’sactiveenvironmentalpolicyandtheirinvestmentinrainfor-

estconservationandreparationprojects.

•

•

22

risk mitigationCorporatebiodiversitymanagementcanbepartofbusinessriskmanagement.16Thisincludes

ensuringlegalcertainty,implementinganticipatorymanagementoftheinternalandexternalbusi-

nessenvironmentandusingsustainablecapitalprocurementmethods.17

Examplesincludesecuringlong-termaccesstorawmaterialsintheminingindustryandpreserving

necessaryecosystemservices,suchasdrinkingwatersuppliesortheprotectionofpharmaceutically

activeplants.Alongsidesuchobjectiverisks,therearealsosocialrisks,suchascommunityprotests.

Riskmitigationcanalsobeconsideredaneconomicdriverofbiodiversitymanagement.

Sustainable cultivation as a condition of growth at Mars

Thecocoatreeisasensitiveplantthatonlygrowsintropicalundergrowth.Itneedspollinating

insectsandtreesthatsupplyshadeandnutrientsaswellasretainwaterinthesoil.Inordertosecure

anadequate,longtermsupplyofcocoa,Marshassetitselfthegoalofsourcing100%ofitscocoafrom

sustainablecultivation.

Centroflora - botanical extracts based on biodiversity

TheBrazilianCentrofloraGroupproducesbotanicalextractsforthepharmaceutical,cosmeticand

foodindustries.Toensurelongtermproductionandproductdevelopment,thesustainableuseof

biodiversityisessential.Thus,Centrofloraencouragestheorganicproductionofherbsandthesus-

tainableextractionofBrazilianbiomassforitssupplychain,whilepromotingfairincomesforrural

societies.

reputation and brand valueNatureandnatureconservationareimportanttomostpeople.18Thiscanbeusedtopromoteacom-

pany’sreputationandbrand.Onewaytoaddressthiscommoninterestistodevelopamarketing

campaignincludingbiodiversity.Inordertoensurethattheseeffortsremaincredible,thereshould

beresponsibleecological,socialandlegalactivitiessupportingthecommunicationcampaign.

Otherwisethecampaignmayberecognisedas“greenwashing”,whichwoulddamagethecompany’s

reputation.

Frosch protects frogs

TheWerner&MertzbrandFrosch(frog)makesecologicalandenvironmentallyfriendlyhousehold

cleaners.Tostrengthentheirproductphilosophy,thecompanyisinvolvedintherenaturationof

rivermeadowstoactivelysupportthelocalfrogpopulationandthenaturalresettlementoffrogsin

anumberofplacesinEurope.Asfrogsareanindicatorofhighwaterquality,thecompanyiscom-

biningreputationenhancementwithpracticalconservationactivities.

•

•

23

Ecology as a part of a brand name – Biodiversity in oekom verlag

oekomverlaghasspecialisedinpublishingworksontheenvironmentandsustainability.Inamove

tostrengthenthecompany’sphilosophyonecologyitexclusivelyusesrecycledandFSCcertified

paper,purchasesgreenpowerandorganicfarmfoodcateringservicesforitsemployees,andisenvi-

ronmentallyconsciousinitsbusinesstravel.Theseeffortsareallpartofanauthenticconcernabout

preservingtheenvironment,which,inturn,improvesthecompany’sreputationcompany.

Reputation at Precious Woods Holding

PreciousWoodsharveststropicalwoodinGabonandSouthAmerica.Tomaintainitsreputation,the

companyconductsitsbusinessinfullcompliancewithFSCrulesandreforestsabandonedpastures.

PreciousWoodsalsoinvestsintrainingitsemployees,whoaremainlyfromthesurroundingregion.

Support of reforestation project through Mitsui Sumitomo Insurance

MitsuiSumitomo,aJapaneseinsurancecompany,promotesthereforestationofillegallylogged

rainforestinIndonesia.Thiscommitmentcontributestotherecoveryofdestroyedecosystemsand

createsnewincomeopportunitiesforthelocalcommunitywhileimprovingMitsuiSumitomo’s

reputation.

InnovationInnovationsarealsoimportantdriversofbusinesscasesforbiodiversity.Examplescanbefound

inthepharmaceuticalorcosmeticindustries,wherediscoveriesofmedicinalandnaturalcare

substancescreatenewpossibilitiestoincreasesalesordifferentiateproducts.Intheservicesector,

integratingbiodiversityconceptsintoexistingofferingscreatessimilaropportunities.19Naturealso

providesideasforthedevelopmentofinnovativetechnologyproducts(bionics).

Development of financial products considering biodiversity – Sumitomo Trust and Banking

SumitomoTrust&Bankinghaslaunchedaloanproductthatappliesapreferentiallendingrateto

enterpriseswithahighenvironmentalrating.Thisratingisbasedonabankanalysisthatincludes

biodiversityasacriterion.Furthermore,SumitomoisscheduledtolaunchthenewSustainable&

ResponsibleInvestment(SRI)fundofJapaneseequities,whichonlyincludessharesincompanies

takingcareofbiodiversity.

New mobility concepts made by VW

ThreeoutoffivenewvehiclesinGermanyarefleetvehicles.VWLeasing,togetherwiththeNature

andBiodiversityConservationUnion(NABU),hashelpeditsmajorcustomersdirectlycombine

costcuttingwithclimateprotectionandspeciesconservation.“FleetCompetenceeCo2”bundles

extremelyfuelefficientvehiclesandfuelefficiencytrainingwiththefinancingofselectedprojects–

suchastherenaturationofdrainedwetlands.

•

24

Kajima Corporation – Japanese honeybee as bioindicator

KajimaCorporation,aJapaneseconstructioncompany,iscontinuingtoinvestigatehowindigenous

honeybeescouldbeusedasanindicatorforhumanqualityoflife,becausetheysupportandstabi-

lisebiodiversitybymeansofpollination.Theideabehindthisinitiativeisthatnativehoneybeesare

vulnerabletoagriculturalchemicalsandthattheyneedplantsasasourceofnectar.

Business models

Afundamentaldriverofabusinesscaseforbiodiversityisthedevelopmentofnewbusinessmodels.

Bybuildingontheconservationofbiodiversity,avaluepropositionforcustomerscanbedeveloped.

Thecustomers’resultingwillingnesstopayensurestheeconomicviabilityofthecompanyaswell

astheconservationofbiologicaldiversity.Examplesincludezoosortravelagenciesspecialisingin

naturetrips.

Travel-to-nature: Biodiversity as a magnet for new customers

Anexamplefortheintegrationofbiodiversityintoabusinessmodelistravel-to-nature.ThisCSR

certifiedtravelorganisationisspecialisedinexoticnaturetravelprogrammes.Additionally,itpro-

motescontactbetweentouristsandthenativepeople.Suchmeetingshelpthelocalpopulationto

appreciatebiodiversityanditsconservation.

Raising public awareness to develop new markets – Publications and campaigns by Dentsu

Productsandservicesthatpromoteconservationorthesustainableuseofbiodiversitycanonlybe

successfuliftheyaresoughtafterbyconsumers.Throughbothitsownpublicationsandbyserving

asasecretariatofgovernmentcampaigns,Dentsu,aJapaneseadvertisingagency,contributes

toraisingthepublic’sawarenessofbiodiversity.Thisinturnleadstodevelopingnewmarketsfor

biodiversity-friendlyproducts.

Afteridentifyingthefieldsofactionthatarerelevanttoabusinessandanalysingtheopportunities

tocreateabusinesscaseforbiodiversity,practicalquestionsonhowtooperationalisecorporate

biodiversitymanagementstillremain.

25Real estate as sealed off areas poor in biodiversity (left)

Roof and façade greening promotes biodiversity (right)

26

Themanagementcyclecanhelpacompanydevelopaprocesstooperationaliseitsbiodiversity

managementstrategy.Thisorientationenablesacompanytodevelopmeasuresthatwillhavea

positiveimpactbothonbiodiversityandonsustainablecorporatedevelopmentineachcorporate

department.Itisnecessaryforeachcompanytoanalyseitsownprocessesinaparticularfieldofac-

tioninordertodeterminewhatinfluencestheremightbeonthedriversofabusinesscase.

4.1 Management cycleWerecommendusingasystematicmanagement“plan-do-check-act”cyclewhenimplementinga

corporatebiodiversitymanagementprocess,forexample,aspartoftheEco-ManagementandAudit

Scheme(EMAS)orISO14000(Fig.3)

ThemanagementcyclepicturedinFigure3isstructuredinclearstages.Thestartingpointisa

screeningofthefieldsofactionandananalysisofpossibleobjectives.Aftersettingobjectives,the

managementcycleenterstheplanningstage(P–plan),followedbythedevelopmentofmeasure-

mentandactionplansandtheselectionofindicators.Afterimplementingthemeasures(D-do)the

successismeasured(C-check)andcorrectiveactionstaken(A-act).Thesequenceofthesefoursteps

formsacontinuousprocess.Aftereverycycletherearenewpossibilitiesforimprovement.

Take corrective action

Screen and identify fields of action

Set objectives, plan processes and activities,

determine indicators

Measure success

Implement action plansA

P

D

C

Corporate biodiversity management between opportunity and risk

managementt

Figure 3: Plan-do-check-act cycle

4 Operationalisation

27

4.2 Screen and identify fields of actionThebasisofcorporatebiodiversitymanagementisthebusiness-specificrelationshipbetweenthe

companyandbiodiversity.

Findingtheserelationshipsis,however,mademoredifficultbythecomplexityandextentofthe

threelevelsofbiodiversity(ecosystem,species,andgeneticpool).Additionally,“diversity”,defined

asthe“varietiesoforwithinsomething”,needsareferentialsystemtogainmeaning.20Thiscanbea

referencetoageographicspace(local,continental,global)orthesametypeofecosystem(withina

definedgeographicspace).

Forlargerspatialunitsthecriteria“endangered”and“rare”areanorientationthatthe“RedList”21

helpstodefinemoreclearly.OtherpossibilitiesfororientationcomefromtheEuropeanUnion’s

HabitatsDirectiveandtheBirdsDirective.AfurtherpointofreferenceistheConventiononInterna-

tionalTradeinEndangeredSpeciesofWildFaunaandFlora(CITES).

Findingthebusiness-specificrelationshipsbetweenacompanyandbiodiversitycanrequiresome

scientificexpertise.Thispresentsanopportunitytoworktogetherwithenvironmentalandconser-

vationorganisations.

Table1providesanoverviewofpossiblerelationshipsbetweencorporatefieldsofactionandimpact

factorsonbiologicaldiversity.Withtheirhelp,business-relevantfieldsofactioncanbesystemati-

callyanalysedforagivencompany.

Inordertomoreclearlyillustratetheserelationships,multipleentriesofaniteminatable–for

example,heatedwastewatercanbeinterpretedasachangeinthephysicalhabitataswellasan

emission–havelargelybeenavoided.

28 Table 1: Contextual examples on how fields of action can affect biodiversity impact factors

Impact factors on biological diversity

Habitat transformation

Climate change Invasive species (neobiota)

Overexploitation pollution

Fiel

ds o

f ac

tion

Sites and facilities

Space required for buildings

Habitat fragmen-tation

Power demand and CO

2 emissions

of buildings

Ground storage of CO

2

Location of site may accommodate invasive species (for example, ragweed)

Drainage of wetlands

Erosion caused by agriculture

Release of climate gases from depletion of forests and drainage of wetlands

Dust

Building shadows

Supply chains, commodities and materials

Space required for production

Power demand and CO

2 emissions

Reduction of carbon sinks in production of raw materials

Cultivation of new, non-native resources

Overfishing

Monoculture

Homogenization of agriculture

Overfertilisation

Waste water

product Area and volume requirements of the project

Power demand and product CO

2

emissions

Ozone-depleting sub-stances in products

Product design may lead to spreading of invasive species

Service features and product attributes can have an impact on biodiversity

Product usage may cause emissions (for example, waste water, noise, air pollutants)

Product as waste

production and manufacturing processes

Land needed for production facilities

Discharge of heated waste water

Power demand and CO

2 emissions

Need for ozone-depleting substances in production

Production proces-ses may promote spreading of invasive species

Excessively sized facilities may generate increased demand for resour-ces and lead to overexploitation

Wastewater

Emissions caused by production

transport and logistics

Space required for roads and storage

Roads and pipelines cross migratory species routes

Power demand and CO

2 emissions caused

by transportation

Spreading of invasive species by transport of resources and products

Parking space management

Separation of oil

Detergent and waste water

Particulate matter

personnel Habitats constructed in an employee volunteering project

Employee behaviour impacts power demand and there-fore greenhouse gas emissions

Employee behaviour has impact on spreading of invasive species

Employee behaviour has impact on bio-diversity

Emissions caused by employee business travel

29

4.3 Set objectives, plan processes and activities Inthenextstep,theidentifiedfieldsofactionareevaluated.Suchanevaluationisanopportunity

foranintensivedialoguewithexternalstakeholders.Thisenablesacompanytotakeintoaccount

externalconcernsforthecompany,avoidriskstothecompanyanddevelopoptionstotakeaction.

Nextbusiness-specificobjectivesmustbesetandactionplansmade.Alongwithprecisedescriptions

ofactivitiesandobjectives,theseplansshouldincludedetailsonthebudgetaswellasscheduling.In

additiontheprojectmanagersneedtobeidentifiedandtheirrelationshiptotheexistingplans,for

example,researchplanningorproductplanning,described.

Inordertoconvincetopmanagement,itisimportanttoclearlyshowwhatresultswillbeachieved,

especiallythosethatrepresentbenefitstothecompany.

Tohelpacompanyevaluateitsstrategicoptions,Table2showstherelationshipsbetweenthefields

ofactionandthedriversofabusinesscaseforbiodiversity.Itisimportanttonotethattheanalysisin

thistableiscompanyandcasespecific.

Intheevaluationquestionsmayariseasto:

• thecostoftheactivity,

• thesuccessoftheactivity,

• therelationshipbetweencostandsuccessand

• theexistingrisksaswellastheexpectedchangesinrisklevel.

Thisevaluationtakesintoaccount:

• potentialmarketdevelopments,

• expectedsocialandpoliticaldevelopmentsaswellas

• availableresources.

Alongwiththese“hard”businessfactorstherearealso“softer”elementssuchasbusinessethos,

cultureandidentificationthatneedtobetakenintoconsiderationwhenmakingdecisions.

Drivers of business cases for biodiversity

Costs Sales and price risk mitigation reputation Innovation Business model

Fiel

ds o

f ac

tion

Sites and facilities Need for new space due to degra-dation or other costs from lower productivity rates

Decreasing maintenance costs through new site development

Decreasing restoration costs and/or decreasing offset costs

Appreciation or retention of real estate value (for example, by avoidance of contaminated sites, etc.)

Risk of increasing operational costs (for example, due to higher energy prices)

Reputation improvement by constructing buildings that preserve biodiversity

Working environment can enhance employee creativity

Site development as business model (for example, “green roofs”)


Cost reduction by long-term supplier relationships (biodiver sity-oriented supply chain management)

Cost reduction by taking advantage of new sources of income (for ex-ample, subsidies for using resour-ces from traditional cultivation)

Increasing sales by passing on lower costs

Risk of rising costs or the loss of non-renewable production factors such as fertile ground or fresh water

Reputation gain due to the usage of biodegradable materials

Chance for usage of new (and cheaper or better) materials

New financial models in the finance sector through differentiation or region

product Reduced product cost by altering product design

Increasing sales by improving differentiation (new product lines with value added biodiversity protection)

Risk of company-damaging NGO campaigns against the product

The ecological performance of the product may cause a gain in reputation

Development of new innovative products

New product-service combinations as basis for new business model


Decreasing production costs (for example, by means of energy efficiency, processes enabling the substitution of rare resources)

Sales from new by-products Risk of rising energy costs

Production breakdown caused by NGO blockade

Reputation gain by reconfiguration/optimizing of production

Innovative production processes (for example, through the use of micro-organisms instead of chemical processes)


Decreasing costs for transport and storage (for example, by increasing energy efficiency)


Risk of rising fuel costs Reputation gain through climate friendly local production with short transport routes

Development of new packaging systems or product distribution channels

personnel Decreasing personnel costs by en-couraging long-term commitment and higher levels of employee motivation

Increasing sales brought on by sales activities of confident employees

Reduction of accident risks through higher employee motivation and less dangerous production

Reputation gain due to higher employee loyalty

Interesting work content as employee motivation

Employee volunteering as part of business model

30 Table 2: Possible effects from the fields of action on corporate biodiversity management drivers

31

Drivers of business cases for biodiversity

Costs Sales and price risk mitigation reputation Innovation Business model

Fiel

ds o

f ac

tion

Sites and facilities Need for new space due to degra-dation or other costs from lower productivity rates

Decreasing maintenance costs through new site development

Decreasing restoration costs and/or decreasing offset costs

Appreciation or retention of real estate value (for example, by avoidance of contaminated sites, etc.)

Risk of increasing operational costs (for example, due to higher energy prices)

Reputation improvement by constructing buildings that preserve biodiversity

Working environment can enhance employee creativity

Site development as business model (for example, “green roofs”)


Cost reduction by long-term supplier relationships (biodiver sity-oriented supply chain management)

Cost reduction by taking advantage of new sources of income (for ex-ample, subsidies for using resour-ces from traditional cultivation)


Risk of rising costs or the loss of non-renewable production factors such as fertile ground or fresh water

Reputation gain due to the usage of biodegradable materials

Chance for usage of new (and cheaper or better) materials

New financial models in the finance sector through differentiation or region

product Reduced product cost by altering product design

Increasing sales by improving differentiation (new product lines with value added biodiversity protection)

Risk of company-damaging NGO campaigns against the product

The ecological performance of the product may cause a gain in reputation

Development of new innovative products

New product-service combinations as basis for new business model


Decreasing production costs (for example, by means of energy efficiency, processes enabling the substitution of rare resources)

Sales from new by-products Risk of rising energy costs

Production breakdown caused by NGO blockade

Reputation gain by reconfiguration/optimizing of production

Innovative production processes (for example, through the use of micro-organisms instead of chemical processes)


Decreasing costs for transport and storage (for example, by increasing energy efficiency)


Risk of rising fuel costs Reputation gain through climate friendly local production with short transport routes

Development of new packaging systems or product distribution channels

personnel Decreasing personnel costs by en-couraging long-term commitment and higher levels of employee motivation

Increasing sales brought on by sales activities of confident employees

Reduction of accident risks through higher employee motivation and less dangerous production

Reputation gain due to higher employee loyalty

Interesting work content as employee motivation

Employee volunteering as part of business model

32

Acompanymustdeterminewhetheritispossibleandnecessarytotakestepsinthevariousfieldsof

action.Additionally,itmustconsiderwhichcorporatedepartmentstoinvolveandselectsuitablein-

dividualsfortheoperativeimplementation.Table3showspossiblerelationshipsbetweenthefields

ofactionandthefollowingcorporatedepartments:

procurementThisdepartmentincludesallbusinessactivitiesthatinvolvethecost-effectiveprocurementofthe

neededquantityofmaterials,machinesorservicesinthenecessaryqualityforproductionandsales.

Procurementhasacloserelationshiptotheactionfieldofcommoditiesandrawmaterialsprocure-

ment.

productionThisdepartmentisresponsiblefortheproductionofalltheproductsandservicesofacompany.A

productionprogrammedeterminestheproductionquantities,thecapacities,theoutputaswellas

theproductionprocesses.Thus,thereisalargevarietyofmethodsavailableforuseinthisfunctional

areaofcorporatebiodiversitymanagement.Theyrangefromthedesignoftheproductionsiteand

theoptimisationoftheproductandproductionprocessestothetransportbetweentheindividual

productionlocations.

MarketingAsacorporatedepartmentandmanagementphilosophy,marketresearchandpositioninginclude

theplanning,coordination,implementationandmonitoringofallcompanyactivitiesorientated

towardsthemarket.Thegoalofmarketingistheorientationofacompany’sactivitiestosatisfythe

needsanddesiresofmarketparticipants.Thisgivesmarketingakeyroleinthedevelopmentofnew

products,theirpositioninginthemarketandthecompany’spublicimage.

Sales and distributionThisdepartmentinvolvestheplanningforandorganisationoftheprovisionofgoodsandservices

forthebusinessandthefinalbuyer.Thegoalistobeabletoofferproductsandservicesintheright

amountattherighttimeandintherightplace.Inthisdepartmentthereductionofemissionsand

actionstohelppreventtheintroductionofinvasivespeciestonewhabitatscouldbepartofacorpo-

ratebiodiversitymanagementstrategy.

research and development (r&D)Throughinnovationanddevelopment,thisdepartmentbothgeneratesandusesnewknowledge

aboutintroducingnewproductstothemarket.Thisgivesitakeyroleinthedevelopmentandin-

novationofproductsandproductionprocesses.Aspartofariskassessment,researchanddevelop-

menthasaspecialresponsibilitytowardsproducts,productionprocessesandresearch.Anexample

wouldbefieldtestingnewplanttypes.

•

•

•

•

•

33

Human resourcesAlongsideorganisationalandadministrativetasks,thisdepartmentisinvolvedinstrategicactivi-

tiesincreasingindividualemployee’sworksatisfactionandperformance.Afurtherconnectionto

corporatebiodiversitymanagementcanbefoundinhealthandworksafetyissues.Forexample,

byreducingtheamountofhazardousmaterialsinaworkplace,thedangeroftheirreleaseisalso

minimised.

Thisanalysisshowsthepossibilitiesforcooperationacrossdepartmentsandillustratesthecharac-

teristicinterdisciplinarynatureofcorporatebiodiversitymanagement.Afterevaluatingitsoptions,

acompanyisabletosetitselfbusiness-orientatedbiodiversitygoals.Anumberofexamplesare

giveninTable4.

•


procurement production Marketing Sales and distribution research and development Human resources

Fiel

ds o

f ac

tion

Sites and facilities Building construction, purchase and management

Production site Use of buildings for representational purposes

Storage facilities Research buildings

Outdoor research areas

Employee identification with location


Supply of materials and services Location of material use Marketing of used materials or services of product

Delivery of materials Material optimisation Avoidance of allergy-causing materials

product Effect of design on procurement decisions

Product as result of productionDevelopment of services

Product and service marketing Delivery of products Product optimization through research

Employee identification with product


Energy supply Production Marketing of production methods Transport between different production sites

Storage of intermediate products

Production optimization through research

Health and safety in the workplace


Product storage Transport between different production sites

Storage of (intermediate) products

Transport as service product

Short and climate friendly transport routes as competitive differentiation (“From the region for the region”)

Transport und logistical processes Development of new transport and packaging systems


personnel Further training for employees in procurement

Employee behaviour in production Human resource marketing Employee behaviour in sales and distribution

Code of ethics for R & D workers Development of employee incentive systems

34 Table 3: Approaches for developing fields of action through corporate departments

35



Fiel

ds o

f ac

tion

Sites and facilities Building construction, purchase and management

Production site Use of buildings for representational purposes

Storage facilities Research buildings

Outdoor research areas

Employee identification with location


Supply of materials and services Location of material use Marketing of used materials or services of product

Delivery of materials Material optimisation Avoidance of allergy-causing materials

product Effect of design on procurement decisions

Product as result of productionDevelopment of services

Product and service marketing Delivery of products Product optimization through research

Employee identification with product


Energy supply Production Marketing of production methods Transport between different production sites

Storage of intermediate products

Production optimization through research



Product storage Transport between different production sites

Storage of (intermediate) products

Transport as service product

Short and climate friendly transport routes as competitive differentiation (“From the region for the region”)

Transport und logistical processes Development of new transport and packaging systems


personnel Further training for employees in procurement

Employee behaviour in production Human resource marketing Employee behaviour in sales and distribution

Code of ethics for R & D workers Development of employee incentive systems



Fiel

ds o

f ac

tion

Sites and facilities Cost reduction through reduced building maintenance

Reduction of remediation costs through avoidance of contaminated sites

Better public relations through design of the company buildings and premises

Reduction of energy-related storage costs

Avoidance of protests in outdoor research areas

Increase employee motivation through design of buildings and premises

Elimination of allergy causing alien species (for example ragweed)

Supply chain, commodities and materials

Long-term security of raw materials supply

Reduction of procurement costs through new materials

Long-term relationships with suppliers

Substitution of previous raw materials with ecologically sustainable materials

Lowering of raw material costs through dematerialisation

Reduction of juvenile fish catch so that enough fish reach maturity

Reputation und product design as arguments in procurement marketing

Combat the dispersal of alien species in order not to preserve company’s own agricultural, forestry and fishing production

Substitution of previous raw materials through ecologically sustainable materials in order to acquire new customers

New fishing methods to reduce bycatch so that catch quota are not exhausted

Reduction of accident risks through the minimisation of hazardous materials

product Increase in the number of possible suppliers through the substitution of scarce resources

Gain in reputation through co-operation with company-external stakeholders

Reach new target groups by marketing ecological products

Simplification of logistics through sustainable design

Development of raw material / product lifecycle to reduce procurement costs

Greater employee motivation through employee identification with production


Reduction in production costs through the subsidies for ecological production methods

Lowering costs for greenhouse certificates through lowering CO2 emissions

Decrease of waste water or other emissions

Gain in reputation through cooperation with external company stakeholders

Gain in reputation through energy saving transport systems

Develop new production methods through research cooperation partnerships with external stake-holders such as NGOs

Sensitising employees for reducing material use


Reducing storage costs through just-in-time procurement

Reducing transport costs Gain in reputation through energy-saving transportation systems

Lowering transportation costs through driver training

More efficient cooling systems Lowering personnel costs and brain drain through better employee involvement

personnel Prevention of public protests over biodiversity damaging procurement policy by more cautious employee actions

Reducing health hazards and costs through training

Development of biodiversity relevant events and communication messages

Reduction of wildlife accidents in transport

Liability reduction in research activities

Enhanced reputation and motivation through employee volunteering

36 Table 4: Exemplary goals of corporate biodiversity management

37



Fiel

ds o

f ac

tion

Sites and facilities Cost reduction through reduced building maintenance

Reduction of remediation costs through avoidance of contaminated sites

Better public relations through design of the company buildings and premises

Reduction of energy-related storage costs

Avoidance of protests in outdoor research areas

Increase employee motivation through design of buildings and premises

Elimination of allergy causing alien species (for example ragweed)

Supply chain, commodities and materials

Long-term security of raw materials supply

Reduction of procurement costs through new materials

Long-term relationships with suppliers

Substitution of previous raw materials with ecologically sustainable materials

Lowering of raw material costs through dematerialisation

Reduction of juvenile fish catch so that enough fish reach maturity

Reputation und product design as arguments in procurement marketing

Combat the dispersal of alien species in order not to preserve company’s own agricultural, forestry and fishing production

Substitution of previous raw materials through ecologically sustainable materials in order to acquire new customers

New fishing methods to reduce bycatch so that catch quota are not exhausted

Reduction of accident risks through the minimisation of hazardous materials

product Increase in the number of possible suppliers through the substitution of scarce resources

Gain in reputation through co-operation with company-external stakeholders

Reach new target groups by marketing ecological products

Simplification of logistics through sustainable design

Development of raw material / product lifecycle to reduce procurement costs

Greater employee motivation through employee identification with production


Reduction in production costs through the subsidies for ecological production methods

Lowering costs for greenhouse certificates through lowering CO2 emissions

Decrease of waste water or other emissions

Gain in reputation through cooperation with external company stakeholders

Gain in reputation through energy saving transport systems

Develop new production methods through research cooperation partnerships with external stake-holders such as NGOs

Sensitising employees for reducing material use


Reducing storage costs through just-in-time procurement

Reducing transport costs Gain in reputation through energy-saving transportation systems

Lowering transportation costs through driver training

More efficient cooling systems Lowering personnel costs and brain drain through better employee involvement

personnel Prevention of public protests over biodiversity damaging procurement policy by more cautious employee actions

Reducing health hazards and costs through training

Development of biodiversity relevant events and communication messages

Reduction of wildlife accidents in transport

Liability reduction in research activities

Enhanced reputation and motivation through employee volunteering

38

4.4 Methods and tools

4.4.1 Overview of management toolsCorporatebiodiversitymanagementnotonlyrequiresscientificandplannedapproaches,butalso

environmentalmanagementbusinessmethods.22Forinstance,thebiologicaldiversityofanarea

canbemodelledwiththehelpofregionalsurveysandfieldmapping.Theseevaluationscanthen

becomepartofabusiness’decision-makingandmanagementprocesses.

Specificmethodsforcorporateenvironmentalmanagementhavenotbeenreadilyavailableinthe

past.Furthermore,thesetoolscanonlyberoughlyassignedtophasesofthemanagementcycle

(cf.Chapter4.1),becausesomeofthemcanbeusedinmorethanoneofthephases.Forexample,“in-

dicatorsandkeyratios”arebothanimportantpartofdeterminingthecurrentstateofbiodiversity

(forscreeningandsuccessmeasurement)butarealsothebasisforplanningfutureprogrammes.

Theselectionandusabilityofatooldependsonthefunctionofthedepartmentsinvolved,thebusi-

nesscasedriverandtheintendedeffectontheimpactfactorsthat,inturn,affectbiodiversity.

Tables5and6exhibitaselectionofmanagementtoolsthatcanbemodifiedforuseincorporate

biodiversitymanagement.Thetoolsareroughlyassignedtothephasesofthemanagementcycle.

Town houses designed with little regard for biodiversity (left), Innovative biodiversity and climate friendly concept for residential estates (right)

39

Fields of action

Site and facilities Supply chains, commodities and materials

product production and manufacturing processes


personnel

tool

s

ABC analysis P P P P P P

Incentive systems and budgeting D / A D / A — D / A D / A D / A

Biodiversity audit S / C S / C S / C S / C S / C S / C

Biodiversity benchmarking P / C P / C P / C P / C P / C —

Brochures and leaflets D / A D / A D / A D / A D / A D / A

Checklists S / C S / C — S / C S / C S / C

Corporate volunteering — — — — — D / A

Efficiency analysis — — S / C S / C

Indicators and key ratios S / C S / C S / C S / C S / C S / C

Internal trade in building sites and/or emissions D / A D / A — D / A — —

Corporate policies, codes of conduct, guidelines and instructions

D / A D / A — D / A D / A D / A

Supplier evaluation — S / C — — — —

Supplier agreements — D / A — — — —

Material and energy flow accounting — S / C S / C S / C S / C —

Offsets, compensation measures D / A D / A — — — —

Ecolabelling — — D / A — — —

Environmental accounting S / C S / C S / C S / C S / C —

Chainofcustody certificates — D / A D / A — — —

training — — — — — D / A

Sponsoring — — D / A — — —

External stakeholder dialogue S / P / D /C S / P / D /C S / P / D /C S / P / D /C — —

Scenario analysis P P P P P —

Green supply chain management — D / A D / A — — —

SWOt analysis P P P P P P

Environmental impact assessment (EIA) S S — S — —

Suggestion programme — — — — — S

40 Table 5: Possible tools for corporate biodiversity management related to fields of action and assigned to management cycle phases

S: Screen (identification fields of action); p: Plan (set objectives, plan processes and activities, determine indicators);

D: Do (implementation of action plans); C: Check (success measurement); A: Act (corrective action)

41

Fields of action

Site and facilities Supply chains, commodities and materials

product production and manufacturing processes


personnel

tool

s

ABC analysis P P P P P P

Incentive systems and budgeting D / A D / A — D / A D / A D / A

Biodiversity audit S / C S / C S / C S / C S / C S / C

Biodiversity benchmarking P / C P / C P / C P / C P / C —

Brochures and leaflets D / A D / A D / A D / A D / A D / A

Checklists S / C S / C — S / C S / C S / C

Corporate volunteering — — — — — D / A

Efficiency analysis — — S / C S / C

Indicators and key ratios S / C S / C S / C S / C S / C S / C

Internal trade in building sites and/or emissions D / A D / A — D / A — —

Corporate policies, codes of conduct, guidelines and instructions

D / A D / A — D / A D / A D / A

Supplier evaluation — S / C — — — —

Supplier agreements — D / A — — — —

Material and energy flow accounting — S / C S / C S / C S / C —

Offsets, compensation measures D / A D / A — — — —

Ecolabelling — — D / A — — —

Environmental accounting S / C S / C S / C S / C S / C —

Chainofcustody certificates — D / A D / A — — —

training — — — — — D / A

Sponsoring — — D / A — — —

External stakeholder dialogue S / P / D /C S / P / D /C S / P / D /C S / P / D /C — —

Scenario analysis P P P P P —

Green supply chain management — D / A D / A — — —

SWOt analysis P P P P P P

Environmental impact assessment (EIA) S S — S — —

Suggestion programme — — — — — S

phases of the management cycle

Screen (identification of fields of action)

plan (set objectives, plan processes and activities, determine indicators)

Do (implementation of action plans)

Check (success measurement)

Act (corrective actions)

Fiel

ds o

f ac

tion

Sites and facilities Indicators and key ratios

Checklists and biodiversity audit

Environmental impact assessment

Biodiversity benchmarking

ABC analysis

Stakeholder dialogue

Scenario analysis

Incentive systems and budgeting for raw material use

Internal trade in building sites and / or emissions

Offsets

Indicators and key ratios


Environmental accounting


Internal trade in building sites and /or emissions



Supplier evaluation



ABC analysis


Scenario analysis

Supplier agreements

Procurement guidelines

Offsets

Indicators and key ratios Checklists and biodiversity audit

Supplier agreements


product Indicators and key ratios


Efficiency analysis

Product line analysis


ABC analysis


Material and energy flow accounting

Sponsoring

Eco-labelling





Sponsoring

Eco-labelling




Efficiency analysis


ABC analysis



Internal trade in emissions Indicators and key ratios


Efficiency analysis

Internal trade in emissions




Efficiency analysis

ABC analysis


Scenario analysis




Efficiency analysis


personnel Suggestion programme Dialogue Management letter

Code of ethics

Guidelines

Brochures and leaflets Incentive systems and budgeting for raw material use

Corporate volunteering

Training

Management letter

Guidelines

Work instructions


Training

42 Table 6: Tools of corporate biodiversity management related to key activity phases of the management cycle

43

phases of the management cycle

Screen (identification of fields of action)

plan (set objectives, plan processes and activities, determine indicators)

Do (implementation of action plans)

Check (success measurement)

Act (corrective actions)

Fiel

ds o

f ac

tion

Sites and facilities Indicators and key ratios




ABC analysis


Scenario analysis


Internal trade in building sites and / or emissions

Offsets



Environmental accounting


Internal trade in building sites and /or emissions



Supplier evaluation



ABC analysis


Scenario analysis

Supplier agreements


Offsets

Indicators and key ratios Checklists and biodiversity audit

Supplier agreements


product Indicators and key ratios


Efficiency analysis



ABC analysis



Sponsoring

Eco-labelling





Sponsoring

Eco-labelling




Efficiency analysis


ABC analysis



Internal trade in emissions Indicators and key ratios


Efficiency analysis

Internal trade in emissions




Efficiency analysis

ABC analysis


Scenario analysis




Efficiency analysis


personnel Suggestion programme Dialogue Management letter

Code of ethics

Guidelines

Brochures and leaflets Incentive systems and budgeting for raw material use

Corporate volunteering

Training

Management letter

Guidelines

Work instructions


Training

44

4.4.2 tools for biodiversity management

Thefollowingspecifiesanumberofexamplesofhowtoolscanbeadaptedforuseinbiodiversity

management.

AuditAnauditis,strictlyspeaking,achecklist-basedmonitoringtoolintheformofagapanalysis.There

areseveralfunctionaltypes:

• Legal-complianceaudit:determinesthelegalframeworkandcompliance.

• Performanceaudit:examinesthesuccessofperformanceobjectivesandwhethercompanygoals

havebeenreached.

• Systemaudit:teststhefunctionalityofamanagementsystem.

A“biodiversityaudit”forinstancecouldcombinethefirsttwofunctions.

Brochures and leaflets Informationcanbetargetedatinternalandexternalstakeholders,suchascompanyemployees,

suppliers,distributorsorcustomers.

TUI’s Guide to souvenirs and endangered species

TUI’s“LittleGuidetoProtectingSpecies”,producedtogetherwiththeGermanFederalAgencyfor

NatureConservation,givesinformationaboutillegalsouvenirsthataremadefromprotectedplants

andanimals.Itgivestipsforbuyingfairsouvenirsthatwillalsostrengthenthelocaleconomy.This

brochureadditionallyhelpstoprotecttheconsumer,asbuyersofillegalsouvenirsareoftensubject

tofinesorevenimprisonment.

ChecklistsChecklistsservetoevaluatetheactualsituationwhileofferingthepossibilitytoexaminetheeffects

acompanyhasonbiodiversity.Theycanthusformthebasisforcorporatebiodiversitymanage-

ment.Anexampleisthelistoffieldsofactiondescribedinthishandbook,whichmustthenbe

adaptedtoaparticularindustry,companyorproduct.Amoredetailedadaptationtospecificde-

partmentsofacompanycanalsobeundertaken.

Corporate volunteering Corporatevolunteering,alsoknownasemployeevolunteering,isanon-profitengagementin

whichemployeesofacompanydonatetheirworkingtimetocertainactivities.Theseactionscan

supportdiverseprojectssuchasenvironmentalandnatureconservation.Suchacommitmentcan

enhancethereputationofacompany,improvethesocialcompetenceofemployees,helpdevelopa

positiveatmosphereatworkandstrengthenemployeeidentificationwiththecompany.

•

•

•

•

45

Indicators and key ratiosTheanalysisoftheeffectsofbusinessactivitiesonbiologicaldiversitycanbecarriedoutusingindi-

catorsorkeyratios.Withtheirhelp,situationscanbedefinedinadvance,systematicallytrackedand

thenpresentedinaggregateform.Biodiversity-relatedindicatorsusuallyhavearelativecharacter.

Thatmeansthattheyplacetwovaluesinrelationtoeachother.

Therearetwokindsofindicators:thosethatshowaparticularstateofbiologicaldiversityandthose

thatshowtheimpactofaparticularbusinessactivityonbiodiversity.

Figure 4: Classification of indicators

•

Indicators

Absolute indicators

Relative indicators

Impact-orientated indicators e.g.• Use of fertilizer and herbicide per unit of area• Biomass of bycatch per net haul• Water consumption per product unit• CO

2 emissions per product unit

• …

State-orientated indicators e.g.• Indicative species of plants per unit of area• Bats per unit of area• …

46

Indicators at HiPP and HeidelbergCement

Anexampleofasustainabilityindicatorisacompany’sCO2footprint,whichHiPPhasintroduced

foritsbabyfoodproduct,“PureEarlyCarrots”.Theyusedthefollowingindicatorsintheircalcula-

tion:rawmaterialproduction,theavailabilityofadjuvantsandpackaging,energyconsumptionin

production,transport,theusebythecustomersaswellasdisposalorrecyclingofwaste.Thisforms

thebasisforcarryingoutaCO2accountinganalysisofthewholeproductcycle.

AfurtherexampleisthenatureconservationindicatorsthatHeidelbergCementhasdevelopedfor

theirquarryingsites.Withtheirhelpitispossibletodetermineandforecasttheconservationvalue

ofthequarriesaswellastheeffectoftheconservationactivitiesbothduringandafterthemining.23

Kajima Corporation – Innovative evaluation methods in the building industry

KajimaCorporation,aJapaneseconstructioncompany,usesinnovativeplanningandevaluation

methodstoanalysewhetherasufficientqualityandquantityofgreenspaceisavailableforkey

(indicator)species.Inadditiontousingageographicinformationsystem(GIS),Kajimaemployshigh

resolutionsatellitedataanddigitalsurfacemodels.Thisshowsthatwiththeproperplanningthese

species’habitatscanbesaved.

Cooperation with environmental and conservation organisationsProtectingbiodiversityisanimportantpartoftheworkofmanyenvironmentalandconservation

organisations.Thus,theyoftenhavelargenetworksofbiodiversityexperts.Injointprojects,these

organisationscanmakeuseoftheirnetworkstocontributenewinformation,linesofargumenta-

tionorevenideasfornewproducts.Inaddition,theexcellentreputationoftheseorganisationscan

beusedtoinformcustomersandusersaboutbiodiversity-friendlyproducts.

Sekisui House – Cooperation on the development of the “Fairwood” procurement directive

TheJapaneseconstructioncompanySekisuiHousedeveloped,inclosecooperationwithdifferent

non-governmentalorganisations,guidelinesfortheprocurementof“Fairwood”.Withthisguide-

lineSekisuiHouseavoidsusingillegallyloggedwood,integratesbiodiversityaspectsintoitssupply

chainmanagementsystemandsupportssustainableregionaldevelopment.

•

47

LabelsIngeneral,eco-labelsareamarketingtool.Theyaremeanttohelpthecustomerseethatacompany

hastakenonaresponsibilityforadheringtospecificproductionprocessesorstandards.Alongwith

thisexternaleffect,themanagerialdecisiontointroduce,acquireormakegreateruseofthelabel

alsoaffectsinternalcompanyprocessesandstructures.Examplesincludeprocurementguidelines

orcompanydecisionstoproduceitsownrawmaterials.

Eco-labels and biodiversity labels

Labelsthatsignalanecologicallysustainableandresourcefriendlymanagementinclude:

Developingalabelspecifictobiodiversityhasproventobedifficult.Thisis,however,possiblewhen

managementpoliciesservetoconserveculturallandscapesorotherwiseprotectbiodiversity.For

example:

•

48

Corporate policies, codes of conduct, guidelines and instructionsPolicies,codes,guidelinesandinstructionsallattempttoinfluencethebehaviourandactionsof

employees.Theycanbedistinguishedaccordingtohowbindingtheyareandhowpreciselytheyare

formulated.However,theoverallcategoricaldifferencesoftenremainblurred.

Figure 5: Positioning of policy, code, guideline and instructions

Ontheotherhand,guidelinesandinstructionscanalsorelatetoareasexternaltoacompany,the

bestknownexamplebeingsupplieragreementsandinstructionmanuals.

Biodiversity as business targets at Ricoh

Businessesdependonecosystemservices,andecosystemsdependonbiodiversity.Toconserve

biodiversityRicoh,aJapanesecompany,adoptedaninternalbiodiversitypolicy.Atthesametime

theproduceroftechnicalofficesystemssetambitiousmedium(2020)andlong-term(2050)targets

accompaniedbyconcreteactionsforreducingenergyandresourceconsumptionandpollution

prevention.

Access and Benefit Sharing (ABS) policy at Centroflora Group

CentrofloraGroup,aBrazilianproducerofbotanicalextracts,establishedaninternalpolicyon

accessandbenefitsharingfornewproductsbasedonBrazilianbiodiversity.Thepolicyreflectsthe

principlesoftheConventiononBiologicalDiversity.

•

Guideline

Instructions

Binding

Non-binding

General formulation Specific formulation

Policy

Code

49

Supplier evaluationSupplierevaluationsuseselectioncriteriatohelpthecompanychoosethebestsuppliers.Suchselec-

tioncriteriaallowforecologicalstandardstobeintegratedintothesupplierselectionprocess.

Green supply chain management at Axel Springer

Aspartofitssupplychainmanagementprogramme,AxelSpringer,aGermanpublisher,useseco-

logicalcriteriatoselectitssuppliers.Forpapermanufacturers,thecriteriaspecifythatthey:

• mustnotharvestmorewoodthancanbegrownagain,

• mustusetheforestinawaythatdoesnotendangeranimalandplantspecies,

• should,asatimberbuyer,conducteco-monitoring,

• shouldprovidethenecessaryecologicalexpertiseforexample,forforestryworkers,

• respectthenativepopulationforexample,theSami,

• shouldinstructthepublicaboutecologicalprogressandproblems.

Sustainable supply chain managementSupplychainmanagementismoreaconceptthanatool.Itdescribesthesystematiccooperationofa

companywithitssuppliersateverylevelofthevaluechain.Thegoalistooptimisebusinessproc-

essesbothwithinthecompanyandwiththeotherpartnercompanies.Thecooperation’sstarting

pointisconsumer-drivendemandforecologicalproductsortheproductionofproductsthatcreates

thenecessarycustomerdemand.

From the forest to printing products

Anexampleofsuchasustainablesupplychainmanagementpolicyisthecooperationbetweenthe

OttoGroup,AxelSpringer,andUPM,aforestrycompany.Thisallowswoodtobetracedbackfrom

thefinishedprintingproducttotheforestthewoodcamefrom.

Sustainability management systemsThepurposeofsustainabilitymanagementsystemsistocoordinateandsystematisebusinessactivi-

ties.Withtheaidofpredefinedanddocumentedmanagementandcontrolmechanisms,manage-

mentsystemsaimatoptimisingbusinessprocessesandorganisationstructures.Furthermore,they

strivetoensurethatthecompany’sdevelopmentissustainableandthatitsactivitiescomplywith

thelaw.StandardssuchasISO26000(standardforcorporateresponsibility)ortheEUnormEMAS

(Eco-ManagementandAuditScheme)showthataspectsofbiodiversityconservationcanbeaninte-

gralpartofacompany’smanagementsystem.

•

•

•

50

Offset measures and programmesBiodiversityoffsetsareprogrammesintendedtocompensateforresidual,unavoidabledamageto

biodiversity.Suchprogrammesstrivetoavoidanoverallnetlossofbiodiversity.24

Forsomecountriescompensatoryprogrammesforparticularlywearingactivities,suchasbuilding

productionhalls,arelegallyregulated.OneexampleisGermany,whereoffsetmeasuresaresup-

portedthroughnatureconservationlaws,buildingcodesgoverningmitigation,andcompensation

regulations.Incountrieswithoutobligatoryregulations,companiescanvoluntarilyparticipatein

suchprogramsinordertogainthesupportoflocalauthoritiesandNGOs.

Innovations in the finance sector - Investment fund for offsets at Caixa

Caixa,aBrazilianbank,setupaninvestmentfundforecologicaloffsetsforcompaniesthatare

requiredtoinvestinthemaintenanceorcreationofconservationunitsascompensationfortheir

business’negativeenvironmentalimpacts.

product chainofcustody certificationProductchain-of-custodycertificationsallowrawmaterialstobetrackedfromthefinalproductto

theoriginalrawmaterials,ensuringtransparency.Suchcertificatescanbeapartofsustainablesup-

plychainmanagement.

Biodiversity SWOtASWOTanalysiscanhelpidentifypossiblecoursesofactionthatcorrespondwithabusiness’

strengthsandweaknesses,opportunitiesthatbiodiversitypresents,andthethreatsresultingfroma

lossofbiodiversity.25

Environmental impact assessment Environmentalimpactassessments(EIA)servetosystematicallyidentify,predictandevaluate

theenvironmentalimpactsofproposedprojectsinatimelymanner.TheEUhasestablishedEIA

guidelines,whichmustbeimplementedintomemberstates’nationallaws.ProjectssubjecttoEIA

standardshavebeencataloguedandmadeavailabletothepublictocheckifplannedventuresfall

intoacompliancecategory.Accordingly,forplannedactionsnotsubjecttoEIAguidelines,compa-

nieshavetheopportunitytovoluntarilysubmittosuchanassessment.The“voluntaryguidelineson

biodiversity-inclusiveenvironmentalimpactassessments”,26publishedbytheExecutiveSecretary

oftheUnitedNationsConventiononBiologicalDiversity,containsrecommendationsonhowthe

effectsofaprojectonbiodiversitycanbeintegratedintosuchanimpactassessment.

•

•

•

•

51

Consumer informationThetopicofbiodiversityisanopportunitytoaddressaveryemotionalissueforcustomers.Because

manypeoplefindnatureandconservationimportantissues 27,thereisanopportunitytocontribute

totheconservationofbiodiversitywhileenhancingthecompany’sownbrandorproductvalue.

Businessesshouldkeepthepublicinformedabouttheiractionsandpublicisetheirattemptsto

contributetobiodiversitypreservation.Forinstance,abusinesscouldwriteonitsproduct,“These

applesoriginatefromnaturalorchards.Bypurchasingthisjuice,youarehelpingtopreservenatural

growingandharvestingmethods.”Otherexamplesincludecompaniespointingoutthattheyre-

frainfromparticularlydamagingactivitiesoraretailerinformingcustomersaboutachangeinthe

productlinetoprotectthreatenedfishspecies.

•

Day-to-day work without any relation to nature (left)

Eco-volunteering and biodiversity training: progressive employee motivation (right)

52

Corporatebiodiversitymanagementcombinesbusinesssuccesswiththeconservationofbiological

diversity.Toreachthisgoal,businessesmustorganisetheirbiodiversitymanagementsysteminsuch

awaythatitaffectsboththeimpactfactorsandthedriversforabusinesscaseforbiodiversity.

Thiscantakeplacebydevelopingmeasuresinthedifferentcompanydepartmentsdescribedinthis

handbook.Toidentifysuchmeasures,thehandbookshowstheconnectionsbetweenthefieldsofac-

tions,businesssuccess,andbiologicaldiversity.Theseassociationsareillustratedwithbest-practice

examplesfromcompaniesinthe‘BiodiversityinGoodCompany’Initiative.

Thehandbookthenpresentsthefundamentalprocessofcorporatebiodiversitymanagementand

givesadviceonhowtooperationaliseitbyrelatingittothestagesofthemanagementcycleandby

identifyingpotentialtoolsforitsimplementation.

Inordertoachievebroad-basedapplication,thehandbookhastakenonacross-companyandcross-

industryperspective.Asaresulteachcompanymustfinditsownindividualactivitiestosupportbio-

diversity.Thedigitalversionofthehandbookcanbefoundatwww.business-and-biodiversity.com.

Fortheconservationofourbiologicaldiversityitisimportanttohaveabroad-basedintegration

ofbiodiversitymanagementinbusinessdecision-making.Thishandbookaimstooffercompanies

supportinthatprocess.

5 Conclusion

53

1 Cf.WBCSDet.al.2008:iv

2 Schaltegger2008a:2

3 IUCN2008a.

4 Art.2CBD

5 Cf.MillenniumEcosystemAssessment2005:30ff;EASAC2009

6 Worm2008;Hector&Bagchi2007;MillenniumEcosystemAssessment2005:18ff;Tilman1997

7 Cf.IUCN2008b

8 WWF2008:8

9 Sukhdev2008

10 CBD2006a:33;MillenniumEcosystemAssessment2005:8

11 IPCC2008:64;Cf.Thomasetal.2004

12 MillenniumEcosystemAssessment2005:8

13 Cf.Scherf2000

14 Cf.www.cbd.int

15 Cf.Schaltegger2008b:22;Schaltegger&Hasenmüller2006

16 Cf.WBCSDet.al.2008;Eurosif&OekomResearch2009;UNEPFI2008

17 Mulder2007

18 Wippermannetal.2008:35

19 Cf.UNEPFI2007

20 Prieß2004

21 www.iucnredlist.org

22 Anoverviewofinstrumentsandmethodsofbusinesssustainabilitymanagementcf.Schalteg-

geretal.2007

23 Tränkleetal.2008

24 Cf.tenKateetal.2004:13;Darbietal.2009

25 Cf.Bishopetal.2008:119

26 CBD2006b

27 Wippermannetal.2008:35

6 Endnotes

54

8 List of tables

7 List of figures

1 Corporatebiodiversitymanagementflowdiagram 1 1

2 Biodiversityanditsconservation 19

3 Plan-do-check-actcycle 26

4 Classificationofindicators 45

5 Positioningofpolicy,code,guidelineandinstructions 48

1 Contextualexamplesonhowfieldsofactioncanaffect

biodiversityimpactfactors 28

2 Possibleeffectsfromthefieldsofactiononcorporatebiodiversity

managementdrivers 30

3 Approachesfordevelopingfieldsofactionthroughcorporatedepartments 34

4 Exemplarygoalsofcorporatebiodiversitymanagement 36

5 Possibletoolsforcorporatebiodiversitymanagementrelatedtofields

ofactionandassignedtomanagementcyclephases 40

6 Toolsofcorporatebiodiversitymanagementrelatedtokeyactivityphases

ofthemanagementcycle 42

55

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10.1 ‘Biodiversity in Good Company’ Initiative

BackgroundApproximately60percentofalltheecosystemsintheworldareindangerwhileevermorespecies

arethreatenedbyextinction.Theworldcommunityhasrecognizedtheever-increasinglossofbiodi-

versityasaproblem.In1992,attheUnitedNationsConferenceonEnvironmentandDevelopment,

theConventiononBiologicalDiversity(CBD)wasagreedupon.ThethreemaingoalsoftheCBDare:

• Conservationofbiodiversity

• Sustainableuseofbiodiversity

• Fairandequitablesharingofthebenefitsarisingfromoftheuseofgeneticresources.

InMay2008,GermanyhostedtheninthConferenceofthePartiestotheCBD.Thisconferencesenta

clearmessagetothebusinesssectorthatthesethreegoalsandtheconservationofnatureforfuture

generationscanonlybeachievedwithcoordinatedeffortsandbusinesssectorsupportbecause

boththelossofbiologicaldiversityanditsprotectionsis,inmanyways,connectedwithacompany’s

economicactivities.

the InitiativeBusinessesbothdependonecosystemsandecosystemservicesandaffectthem.

Committingtotheconservationofbiologicaldiversitythusleadstoseveraleconomicbenefits:

improvedcorporatemanagementsystems,ecologically-orientatedprocessoptimisationand

efficiencygains,sustainableproductionmethods,andfarsightedproductdevelopmentcoupled

togetherwithproactiveanticipationoffuturelegalrequirements.Togethertheseresultsincrease

thecompetitivenessofabusinessandimproveitsoverallimage.

InBonn,in2008,withintheframeworkoftheGermanCBD-Presidency,the‘BiodiversityinGood

Company’Initiativewasfoundedasthefirstinternationalprogrammededicatedtobiodiversityin

theprivatesector.Sinceitscreationover40companiesfromGermany,Japan,Brazil,Switzerland

andSouthAfricahavesignedtheLeadershipDeclaration.Theyhavecommittedthemselvestointe-

gratingbiodiversityprotectionandconservationintotheircorporatepoliciesandmanagementsys-

tems.Additionally,theyhavetakenonthetaskofraisingtheirsuppliers’awarenessofbiodiversity

andpublishingbest-practiceexamplesthatdemonstratetheircommitmenttobiologicaldiversity.

Corporate connection and supportTheinitiativesupportsthemembercompanieswiththeimplementationoftheLeadershipDeclaration

inamultifariousmanner.Itrepresentsaninternationalnetworkingplatformaroundthetopicof

biodiversity,advancesthediscussionandhandlingofvariousproblemsthroughregularworkshops

andencouragestheexchangeofexperiences.Toaccomplishthistheinitiativeinvitesexpertsfrom

scienceandnon-governmentalorganisations.

TheCentreforSustainabilityManagement(CSM)attheLeuphanaUniversityofLüneburgdeveloped

thishandbookoncorporatebiodiversitymanagementtogetherwiththeinitiativemembercom-

panies.Companiesadeptinbiodiversitypreservationhavebeenabletocontributetheirknow-how

tothishandbook,therebymakingtheirvaluableinputavailabletootherbusinessesjuststartingto

implementcorporatebiodiversitymanagementsystems.

10 Appendix

Annotation for 3rd edition (2012) of this handbook: re launch of the Initiative in 2011Whenpublicfundingwasphasedout,themembercompanies,payingtributetotheimportanceof

biologicaldiversity,decidedtocontinueandsustaintheInitiativeontheirown,intentupon

ensuringthecontinuedandactivepursuitofitsaims.Forthispurpose,theyfoundedanew,

non-profitregisteredassociationinthesummerof2011.TheInitiativestillactivelycooperateswith

theEnvironmentMinistry.Formoreinformationonmembershipandactivitiespleasesee

www.business-and-biodiversity.de

59

Creating public awarenessAlongsidethepracticalworkofimplementingtheLeadershipDeclaration,the‘BiodiversityinGood

Company’Initiativeactivelyengageswiththepublicandthebusinessworldtopromoteunder-

standingforthetopicofbiodiversity.Itexplainstobusinessestheopportunitiesandriskssurround-

ingenvironmentalprotection.Toachieveitsambitiousgoals,theinitiativehasanumberofcom-

municationtoolsatitsdisposal:fromappearancesatinternationalconferences,througharegularly

updatedwebsiteandnewsletter,toatouringexhibition“WithoutBiologicalDiversity,NoEconomic

Diversity”,whichistouringthroughoutGermanyandJapan.

Aftertwoyearsofsuccessfulworkandanumberofcomingeventsforthe2010InternationalYear

ofBiodiversity,the‘BiodiversityinGoodCompany’Initiativewillbepresentingtheresultsfromits

endeavoursattheCBDConferenceofthePartiestenthmeetinginNagoya,JapanthisOctober2010.

Members (as of 2010)

60

10.2 Glossary Alien speciesThesearespeciesthat,whetherdirectlyorindirectlyasaresultofhumanintervention,occurina

geographicspaceinwhichtheywerenotnativepreviously(formoreinformationsee:www.europe-

aliens.org).

Birds Directive (directive on the conservation of wild bird species)TheEuropeandirective79/ 409 /EECisaprotectionschemeforallwildbirdspeciesnativetothe

Europeanareaofthememberstates.Theconventionalsolistsinanappendixthespeciesneeding

specialprotectionregardingtheirhabitats.

Biodiversity / biological diversityArticle2oftheƒCDBdescribesbiodiversityas“thevariabilityamonglivingorganismsfromall

sources,includingterrestrial,marineandotheraquaticecosystemsandtheecologicalcomplexesof

whichtheyarepart;thisincludesdiversitywithinspecies,betweenspeciesandofecosystems.”

BionicsBionicstriestogeneratenewandinnovativeapproachestotechnologythroughthedecryptionof

naturalprocessesand/orstructures.

BiotopesThelivingspaceofaƒbiologicalcommunity (biocoenosis).Abiotopecancontainanumber

ofƒhabitats(livingspaceofaspecies).

BiocoenosisCommunityofspecieslivingtogetheratthesametimeandinthesamespace.

Business casesAbusinesscasedescribesthepredictedoractualeconomicvalueforacompanyresultingfroma

particularcourseofaction.Thereisabusinesscaseforbiodiversitywhenthroughtheconservation

ofbiodiversity,orthebusinessactivitiespromotingbiodiversity,theƒdriversofabusinesscaseare

influencedsothatboththelong-termsuccessofthecompanyandtheconservationofbiodiversity

areensured.

61

Convention on Biological Diversity (CBD)TheConventiononBiologicalDiversityisanenvironmentalregimethatwassignedinRiodeJaneiro

in1992.Ithasthreegoalsofequalimportance:theconservationofbiologicaldiversity,thesustain-

ableuseofitscomponents,andthefairandequitablesharingofbenefitsarisingfromtheuseof

geneticresources(www.cbt.int).

Convention on International trade in Endangered Species of Wild Fauna and Flora (CItES)TheWashingtonConventiononInternationalTradeinEndangeredSpeciesisaregimewiththegoal

ofregulatinginternationaltradesothatthesurvivalofwildanimalandplantspeciesisnotendan-

gered.TheConventionhasthreeappendiceswithspecieslistedaccordingtothedegreeofprotec-

tiontheyneed.Dependingontheircategory,tradeinthesespeciesissubjecttodifferentlevelsof

restriction.ThismakestheConventionaguidetoimportingrawmaterialsofplantoranimalorigin.

Howeverbecausethelistofendangeredspeciesisnotcomplete,furtherresearchmaybenecessary.

Driver (of a business case)Variablesthat,dependingonthekindofbusinessactivities,haveapositiveornegativeeffecton

businesssuccess,ormaycreateaƒbusiness case.

EcosystemArticle2oftheCBDdefinesecosystemsas“adynamiccomplexofplant,animalandmicro-organism

communitiesandtheirnon-livingenvironmentinteractingasafunctionalunit.”Anecosystemis

madeupofƒbiotopeandƒ biocoenosis.

Ecosystem services Theconceptofecosystemservicesreferstotheinterfacebetweenecosystemsandhumanwell-

being.Servicesthatareprovidedforhumansbyecosystemsrangefrombasicservicestosupply

servicestoregulationservicesandeventoculturalones.

EMAS (Eco Management and Audit Scheme)AsystemdevelopedbytheEuropeanUnionwithcomponentsofenvironmentalmanagementand

environmentalauditing.Thegoalofthesystemistocontinuouslyimprovetheenvironmentalper-

formanceoforganisations.

62

Employee volunteeringAformofbusinessinvolvementinthecommunityinwhichemployeesarereleasedfromworkfora

periodoftimeinordertodocommunityservice.

Genetic resourcesGeneticresourcesaregeneticmaterialofactualorpotentialvalue(Art.2CBD).

(Green) genetic engineering / green gene technologyGreengenetechnologysubjectsgeneticmaterialandsothebiochemicalcontrolprocessesinplants

tospecificchanges.Whentheseorganismsarereleasedavarietyofrisksforbiodiversitycouldarise.

Therearenowanumberofnationalandsupranationalguidelinesinordertominimisetheserisks.

Habitat Placewhereamicroorganism,aplantorananimallives.

Habitats Directive AdirectiveoftheEuropeanUnion(92/43EEC)withthegoalofcontributing“towardsensuringbio-

diversitythroughtheconservationofnaturalhabitatsandofwildfaunaandfloraintheEuropean

territoryoftheMemberStates”(Art.2Para.1 92/43EEC).

Impact factorsInthiscontext,conditionsthataffectƒ biodiversitysuchashabitattransformation,climate

change,invasivespecies,overexploitationandpollution.

MonocultureOnemeaningofthetermisalargeareacoveredbyasinglespeciesofplant.Fromanexperimental

perspectivehowevermonoculturemeanshumancultivationofasinglespeciesofplant.

OffsetsOffsetsareprogrammesintendedtocompensatetheresidual,unavoidableharmtobiodiversity.

Theirobjectiveistoensurenonetlossofbiodiversity.

primary productionTheprimaryeconomicsectorsuppliesmostrawmaterialsforaproduct.Industriesbelongingtothe

primarysectorincludeagricultureandforestry,fishingandmining.

63

pollutionAharmfulfactorthataffectstheenvironment(people,animals,plants,soil,water,atmosphere).

Examplesforpollutionareairorwaterpollution,noise,light,heatoroverfertilisation.

red listThislistispublishedbytheInternationalUnionforConservationofNatureandNaturalResources

(IUCN)andindividualcountriesofanimalandplantspeciesthatarefacingglobalextinction

(www.iucnredlist.org)

Supply chain managementSystemofsuppliersofgoodsand/orservicesatseverallevelsthathaveagreedtoworktogetherto

servecustomerneedsalongthevaluechain.

Sustainable use ThetermsustainableuseisdefinedbytheCBDas“theuseofcomponentsofbiologicaldiversityin

awayandataratethatdoesnotleadtothelong-termdeclineofbiologicaldiversity,therebymain-

tainingitspotentialtomeettheneedsandaspirationsofpresentandfuturegenerations

(Art.2CBD).

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notes

pUBLICAtIOn OrDEr:

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Corporate Biodiversity Management Handbook