Geneva, September 2007

Ecosystems

World Business Council for

Sustainable Development

Doing Business with the World - The new role of

corporate leadership in global development

Overview

The global view: Business, communities and development

Biodiversity and development

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The global view: Business, communities & ecosystems

Operational Regulatory Reputational Access to capital

Corporations not only affect ecosystem

services but also rely on them

Communities rely on ecosystem products

and services, too

Employment Production Livelihoods

For businesses today, ecosystems offer natural capital, an

important source of raw material

Ecological economists have calculated that the Earth

provides a minimum of $16-54 trillion dollars worth of

'services' to humans per year.3

SectorEstimated number

of employedForestry1 3 millionWood industries1 7.5 millionPulp and paper1 4.3 millionFishers2 30 million

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Biodiversity and development

An overview of the development status of countries and areas with high ecological significance

Source: IUCN. 2004. “Poverty-Conservation Mapping Applications.” IUCN World Conservation Congress 17-25 November 2004.

]

Many biologically rich areas are found in developing countries -- as shown when Human Development Index (HDI) values, tropical hotspots, wilderness areas are mapped together.

The Human Development Index (HDI) is a composite index measuring basic

dimensions (life expectancy, education and income level) of human development.

Needs & Challenges

Societal needs and consequences

Climate change and food security

Biodiversity and development

Key challenges limiting progress

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Societal needs and consequences

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Land use +Leading causes of

ecosystem degradation

Diversion of freshwater

The poor are especially vulnerable because of their high

dependence on natural

resources.

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Climate change and food security

World Resources Institute. 2005. The Wealth of the Poor: Managing ecosystems to fight poverty.

“The adverse impacts of climate change will be most striking in

developing nations—and particularly among the poor—both because of their high dependence

on natural resources and their limited capacity to adapt to a

changing climate.”

-World Resources Institute. 2005. The Wealth of the Poor: Managing ecosystems to fight poverty.

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Biodiversity and development

More than 1.1 billion people live in the 25 biodiversity hotspots

identified by Conservation International. In 19 of these areas population is growing

faster than the world average.1 

Biodiversity provides food, fuel, shelter, medicines and livelihoods for the poor, especially

in rural areas.

Source: Population Action International. 2000. Cincotta, Richard P. and Engelman, Robert. Nature’s Place: Human Population and the Future of Biodiversity. http://www.populationaction.org/Publications/Reports/Natures_Place/Natures_Place.pdf

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Market threats

•scarcity of raw materials

•higher operating costs

•reduced flexibility

Key challenges limiting progress

Weak or absent regulatory frameworks Understanding the value of ecosystems Promoting awareness among people,

communities and business View that ecosystems are part of the

global commons

Water scarcity

Climate change

Habitat change

Biodiversity loss

Invasive species

Overexploitation of

oceans

Nutrient overloading

Opportunities

What are the opportunities? New business and market

opportunities Key messages WBCSD Resources

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What are the opportunities?

Develop new technologies and products Growing market for "non-conventional" 

ecosystem products and services New partnerships for innovative approaches Examples include

Unilever and the Marine Stewardship CouncilLafarge and the Wildlife Habitat Council

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New business and market opportunities

New markets

Certification of ecosystem products

Fair trade products

Organic products

Environmentally-friendly productsExample

In North America and the Pacific Rim, total sales in

fair trade goods rose 52% from 2002 to 2003.1

ExampleTotal value of

aggregated carbon markets globally was

more than US$10 billion in 2005.1

Water quality trading

Wetland banking

Mitigation credit trading

Threatened species banking

Innovation in pollution prevention, capture, treatment and reuse

New businesses

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Key messages

For business, investing in sustainable ecosystems can:

Create new revenue streams by introducing innovative products and services

Reduce dependence on increasingly scarce raw materials

Mitigate rising costs caused by scarcity of raw materials

Create new markets for certified, fair trade, organically grown or environmentally-friendly products

Develop new businesses

(e.g. water quality trading, wetland banking)

Strengthen license to operate

For governments, an effective policy framework for sustainable ecosystems can:

Protect ecosystems and the associated populations and communities that depend on them for their livelihoods

Ensure long term sustainable use of ecosystems

Mitigate negative environmental and climate change impacts

Raise awareness on the importance of sustainable ecosystem management

Generate income through taxation

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WBCSD Resources

Ecosystem Challenges and Business Implications

This publication discusses the challenges inherent in the use of ecosystem services and the implications for business.

Business & Biodiversity: The Handbook for Corporate Action

The handbook provides information on the business case for biodiversity, as well as current biodiversity issues for business, corporate biodiversity strategies and key biodiversity resources.

Business & Biodiversity: A Guide for the Private Sector

Written in conjunction with the IUCN, this business primer looks at the implications of the Convention on Biological Diversity for business.

www.wbcsd.org/web/development.htm