Biodiversity/Rainforest Archives

July 23, 2009

"A Plastic Bag Is a Pain in the Butt"

[I've been delayed in posting my blogs from other sites, so i'll put up a few in a row, and they all happen to be about Wal-Mart -- lots going on with the giant retailer. This one is from Huffington Post here]

A few weeks ago in Sao Paolo, Brazil, I heard the distinct sound of "taps" being played for the simple plastic shopping bag. Wal-Mart Brazil had invited all its suppliers to come and discuss its sustainability goals -- and sign a public agreement to match them. The pact dealt with everything from saving the Amazon forest, mostly through bans on sourcing beef and soy that come from cleared lands, to reducing phosphates in detergents (see the agreements here). It was an historic meeting that covered a lot of ground (full disclosure: I was hired to speak at the event and provide context on the greening of business globally).

But aside from the much larger and thornier Amazon-related initiatives, one announcement was both fun and indicative of the green pressures coming to bear on companies and particular products. Wal-Mart Brazil is sponsoring a nationwide campaign, in conjunction with the Brazilian government, to drastically reduce plastic bag use. The minister of the environment, Carlos Minc, was on hand to co-announce the project. Wal-Mart's own internal goal is a 50% reduction by 2013 (a larger reduction than the company's global goal, which I've commented was perhaps not strong enough).

The humorous national campaign includes television ads featuring the hip "Junior" (only the coolest have one name), a leader of youth-oriented NGO AfroReggae. The slogan for the campaign, "Saco E um Saco," translates roughly into "A bag is a pain in the butt" -- or at least that's what the simultaneous translators tried to convey...they seemed at a loss on how to handle it. One Portuguese executive told me that it's closer to "A bag sucks" which plays on the double use of "saco." Either way, it's a funny, yet aggressive way to get people to stop using these things.

Brazil is hardly alone in the national effort to eliminate bags. China starting taxing all shopping bags and has cut total usage 66%.

Companies are also trying many methods to get customers on board. Charging for bags is one clear signal to consumers to use fewer. British retailer Marks & Spencer recently announced an 80% drop in use at its stores after adding a small charge (IKEA and others have witnessed 80-90% drops in usage as well after charging a nickel to any customer wanting one).

Wal-Mart Brazil has experimented with refunds instead. If you don't take the bags, you get a discount off your grocery bill (so it's revenue neutral to the company and basically charges those who DO take the bag, without raising anybody's bill).

All companies should take note of this kind of coordinated effort by governments and other companies -- imagine what happens if your product, manufacturing process, or sourcing strategy ends up on the societal bad list. I've talked about the risk to business from these kinds of market shifts on green principles before. While we might have some guesses as to what's next (did your meat come from cleared Amazon? Do you use too much water from dry regions in your production?), it's unfortunately somewhat unpredictable where the questions might come from.

Bags are not the only products facing this kind of challenge -- it's happening to bottled water as well. But nothing compares to the coordinated global attack on plastic bags. Once your product is declared a pain in the butt, where do you go from there?

July 28, 2009

Wal-Mart Asks, Where's the Beef (From)?

[Post #2 of 3 on Wal-Mart's activity in the last couple of months. This appeared at Harvard Business Online and then on BusinessWeek online]

In the last month, what event had the greatest potential for changing business as usual forever? If you said the passage of the climate change bill in the U.S. House of Representatives, it would be hard to argue with you. But I'm going to make the case for another event as the most influential (or at least a very close second): the Wal-Mart Sustainability Summit held in Sao Paolo, Brazil.

Following the model of the historic meeting Wal-Mart held for its Chinese suppliers last year, the President of Wal-Mart Brazil, Héctor Núñez, decided to hold a similar event for his suppliers. (Full disclosure: I was hired to give a keynote about the greening of business for larger context setting, but I have no consulting relationship with Wal-Mart).

Speakers at the event included the Brazilian Minister of the Environment and the director of Greenpeace Brazil, an organization that just a few weeks ago produced a damning report titled "Slaughtering the Amazon" that points the finger at the cattle industry as the primary cause of deforestation (growing soy is another leading cause). I had an interesting talk with Hector about his conversations with the aggressive NGO. He commented that "when you talk to Greenpeace, it's hard to argue with what they're saying."

But, I thought, arguing with the environmentalist perspective is exactly what business leaders normally do. But the world is changing fast. In fact, Hector's speech at the summit, with its soaring rhetoric about global environmental damage, made him sound more like a Greenpeace activist than a hard-nosed manager.

At the Summit, Wal-Mart announced significant goals and mandates to tackle some of the thorniest environmental and social problems in the world. Wal-Mart Brazil will now, in essence, ensure that its supply chain uses...

— No companies that employ slave labor; "forced" labor (read, slavery) is a rampant problem in developing countries.

— No soybeans sourced from illegally deforested areas; 20% of the world's carbon emissions (and 70% of Brazil's emissions) come from burning down trees.

No beef sourced from any newly cleared Amazonian land; globally, deforestation emits more carbon than all vehicles. Brazil and Indonesia are at the heart of this enormous challenge.

[For the rest of this column, please see BusinessWeek]

February 7, 2011

Dow Asks, What's the Business Case for Protecting Nature?

The business logic for protecting nature has always been a harder sell than making the case for other green initiatives.

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Companies are increasingly seeing the obvious benefits of slashing energy use, and beginning to include in their calculations the considerable risk reduction from managing water well or limiting the use of toxic chemicals. But there are aspects of going green that are much less directly quantifiable than kilowatts or tons of carbon -- or the avoidance of regulations or a lawsuit.

For example, how should companies handle the overuse of natural resources and the reduction in the planet's "biodiversity" (that is, the abundant variation in plant and animal life)?

One large company, Dow, is now tackling this issue, working with the environmental NGO The Nature Conservancy to try and make the business logic clearer. This odd couple announced a collaboration last week to "work together to apply scientific knowledge and experience to examine how Dow's operations rely on and affect nature."

But we don't have to wait for their work to come to fruition to cite a number of possible compelling arguments for managing the intersection of business and natural resources well, including:

  • Human life support: Earth's natural systems provide "ecosystem services," such as purifying water, enriching soil, providing natural infrastructure that reduce floods and protect assets (think wetlands on the Gulf Coast), and providing clean air and a stable climate (here's a fun video on these services). The long-standing, best estimate on the value of ecosystem services has been $33 trillion annually, roughly the same order of magnitude as the global economy.
  • Climate and carbon market value: The world's forests and farms can sequester carbon that could be worth billions in a carbon markets (however, the prospect of a functioning carbon market in the U.S. is very low in the near-term).
  • Self-interest: Species provide us medicine and sources of food. We find species that result in blockbuster new drugs to fight heart disease or cancer, for example.
  • Business continuity: All companies depend on natural services, such as water, either directly or in their supply chains. For a business wanting to, say, expand a facility, integrating the value of this input into investment decisions will be critical.
  • Inspiration, best practices, and biomimicry: Over billions of years, Nature has found the most efficient way to do things. Think of spider silk as a model for strong, flexible fibers or a shark's ultra-efficient movement through water, which has inspired everything from Speedo's now-banned swimsuits to Airbus' more aerodynamic plane fuselages. (See 15 cool biomimicry stories.)
  • Innovation: By cataloging our dependencies on nature, we can identify opportunities for better products and services, such as Bayer's drought-resistant crops (Note: Bayer is a client of mine).
  • Risk reduction: Managing your nature-sourced supply chain well can help avoid headaches and possible litigation. Gibson Guitars found this out the hard way in 2009 when the Fish and Wildlife Service raided the company for allegedly using illegally harvested rosewood in its instruments (giving an ironic twist to the word "ax").


In the end, all of these arguments are really part of a much larger logic, which was laid out best in the 1999 groundbreaking -- and now classic -- book Natural Capitalism by Paul Hawken, Amory Lovins, and Hunter Lovins (more info on ongoing work by the Lovinses here and here). In total, it's about a systematic and realistic view of the world.

In some sense, asking "What's the business case for valuing nature?" is ridiculous. We live in an integrated network on a single planet with limited resources. Either we manage these resources well, or we don't survive. In our current mode, we're systematically knocking down pieces of our own support structure. Or in business terms, we're drawing down the assets on the balance sheet of the world. This is no smarter than taking out load-bearing walls in your home.

But regardless of the macro-logic, business does run on financial valuations. Since none of the benefits above are truly measured in our models, we need news tools to value the natural world in business. This is why I was excited to see the announcement about the work Dow's doing with The Nature Conservancy.

The novel alliance will look at Dow's business and its supply chain through a natural world lens. They will identify risks and opportunities at Dow's facilities and in its products and supply chain, and try to value them correctly. In short, the $10 million collaboration will "advance the incorporation of the value of nature into business." But perhaps more importantly, the project will be an open-source exercise, with the partners sharing all the tools and lessons learned. As Michelle Lapinski, TNC's Director, Corporate Practices, says, "We hope to demonstrate to other companies that incorporating nature's services into decisions is a responsible, smart and viable business strategy."

As part of the joint press conference and announcement, Dow's CEO Andrew Liveris put it all in context: "This collaboration is designed to help us innovate new approaches to critical world challenges while demonstrating that environmental conservation is not just good for nature -- it is good for business...companies that value and integrate biodiversity and ecosystem services into their strategic plans are best positioned for the future by operationalizing sustainability."

The Nature Conservancy's CEO Mark Tercek talked recently on his blog about the opportunity here for Dow and for nature. "Imagine the potential of a company with the size and reach of Dow making a commitment to incorporate nature into its global business strategies. What might that mean for green infrastructure? What might that mean for nature? What might that mean for a company’s bottom line? What might that mean for the health and prosperity of the communities around the world? Together, we’re going to find out." (For longer views on this partnership and perspectives from Dow's VP of Sustainability Neil Hawkins and the Conservancy's Mark Tercek and Glenn Prickett, see excellent pieces from GreenBiz's Joel Makower and TIME's Bryan Walsh.)

As usual with sustainability strategy, companies must strike a tough balance between pursuing competitive advantage and the kind of open-source partnership needed the tackle global-scale issues. But the companies that "get" how to value nature in their operations first will have the advantage, even if they then share that information. The leaders will win by integrating these new valuations effectively into their processes, products, and services. They will create an advantage through superior execution. It will be fun to watch how Dow navigates this tricky path -- while developing the tools for other businesses to follow in their footsteps.

December 22, 2011

Top 10 Green Business Stories of 2011

Yes, it's December again somehow: time to look back on what we've learned and oversimplify into a handy list. Here's my take on the 10 big stories in sustainability and green business this year:

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1. The usual sustainability drivers got stronger
Ok, this one is cheating a bit, but on a fundamental level, the top themes in green business haven't actually changed too much (see the 2010 list). So, rather than take up valuable list real estate with these perennial favorites and big-picture drivers, I'll quickly list them in one big bucket of mega-trends:

  • The rise of the consumer around the world, related to...
  • China, China, and China. From relentless demand for resources to bamboo-like 9% growth to vicious competition for the technologies and industries of the future, China will be the big story for a long time.
  • The greening of the supply chain. Big organizations keep asking more of their suppliers.
  • Increased demand for transparency and its close partners, (a) the quest to define and develop useful sustainability metrics and (b) the growing sustainability data explosion.
  • The military continues to lead the way on energy and climate.
  • The ongoing failure of policy at a global level (with the important exceptions of some successes/workarounds such as new mileage targets for cars and trucks and a carbon tax in Australia).

These drivers underpin a number of stories from 2011, but a few new themes came out as well. Here's the rest of my top 10 stories, with callouts for companies and examples that typify the trend.

2. Malthus strikes back: Coca-Cola takes an $800 million hit on commodity costs
Coca-Cola was not alone in facing increasing costs in 2011; one of my clients, Kimberly-Clark, took an earnings hit from record pulp prices. These companies are notable victims of a new reality: resources are constrained and input prices are fundamentally rising.

For over 200 years, from Thomas Malthus to the Limits to Growth gang, many people have made the case that it won't be long before we'll run out of food, energy, materials, and on and on. It's an idea that has enthralled many, but has seemed to be wrong. But this year, something felt different as we hit 7 billion hungry, striving humans on the planet. While "running out" isn't really the right phrase, it's clear that delivering many commodities to market is getting harder and more expensive (we don't dig for oil a mile under the ocean for the heck of it). And the dangerous mix of supply crunch and rising demand is only increasing, across nearly all commodities.

In January, China "seized" its rare earth metals (meaning it wouldn't export them anymore). In June, the New York Times declared a warming world hostile to food production. The best analysis of the resource scarcity mega-trend came from asset manager Jeremy Grantham. His analysis of commodity availability on a finite planet is compelling, thorough, and absolutely fascinating. Here's the gist: after 100+ years of fundamentally declining resource prices, the data show a rising trend for nearly every input into our society. Business as usual is no more.

3. Climate Change Arrives: Texas weather triumphs over (some) ignorance
Climate change is here. The list of "once-in-a-century" storms, floods, and droughts this year is too long to list. I know, I know — no single storm or season "proves" climate change. Was a year like 2011 possible in a world without climate change? Of course. But please. Was a year like 2011 likely? Not at all. In the words of climate scientist Jim Hansen, we've loaded the dice in favor of extreme weather events.

From Thailand to Pakistan to Texas, some areas are deluged with water, while others have absolutely none. Please look at the numbers for how dry and hot Texas was this summer (I'll wait). The data speaks for itself: Texas' heat was literally off the charts this year. What was once temporary drought is looking more like permanent change. For another angle on a changing "normal," read Jeff Goodell's piece in Rolling Stone on "Climate Change and the End of Australia." Finally, if the immediacy of the "look out the window" method of gauging climate change didn't work for some, at least one major climate skeptic changed his tune based on longer-term data. Richard Muller ran the models himself and discovered that, surprise, the thousands of scientists before him had gotten it right. It's probably wishful thinking, but I believe the climate debate is actually over (and a solid majority of Americans agree).

4. High-profile "failures" shake up clean tech: Solyndra has its day in the, um, sun
What can one say about the failure of solar company Solyndra? It certainly has become a media darling for clean tech skeptics. Soon after this quasi-fiasco, a few other stories seemed to indicate that corporate America was backing off of green tech. Google stopped its high-profile pursuit of cheaper-than-fossil-fuel renewables, and California utility PG&E quietly pulled the plug on its carbon offset program. In my view, none of this is all that distressing. So one technology and company failed miserably (and perhaps the government made a bad investment choice). And some initiatives didn't work out as planned. So what. Whether it's government money, venture capital, or corporate initiatives, you gotta place lots of bets to get some winners. These were all experiments, and you always learn from what doesn't work. But the real reason I'm not too worried is that...

5. ...clean tech is rising fast: Renewable investment tops fossil fuels for first time
Markets have a remarkable way of sorting the wheat from the chaff. While the overall carbon emissions news is not good, the renewable energy market is growing very fast. The sector is larger than most people realize, with clean tech investment hovering around $200 billion globally. Total investment in new power generation is a good indication of where we're headed, and for the first time renewables beat fossil fuels globally. Right now, the U.S. and China are entering a trade battle over solar subsidies, which tells me it's a real market now. They wouldn't be arguing if the prize were not very large.

5b. Nuclear on the outs

Following the nuclear meltdown in Fukushima, Japan, the once-resurgent nuclear industry is flatlining: generation actually fell globally in 2011, with Germany alone shutting down 8 gigawatts' worth. In September, Siemens, one of the world's largest nuclear power plant suppliers, exited the business. CEO Peter Loscher declared Germany's plans to move aggressively toward renewables "the project of the century."

6. Water rising — both literally and as a serious issue for business: Honda's supply chain gets slammed, Levi's gets creative
A list of floods that devastated lives, homes, and countries this year would be tragically long. So it's no wonder that business started to wake up to the serious danger that storms and shortages present to their operations, both from direct damage to property and from massive production interruptions (i.e., "business continuity"). Think back to the January floods in Australia which covered an area larger than France and Germany combined. The extreme weather seriously disrupted coal production, one of the most important economic engines in the country. At the microeconomic level, consider what Thailand's floods have done to the market for disk drives, or to supply chains for Honda and Toyota (which are dealing with a double flood hit from the tsunami as well).

On the use side of the water issue, companies with products that depend on water in production (beverages) or in use (shampoo, apparel) are also seeing the writing on the wall and getting creative. Levi's announced a low-water jeans production method, Unilever started asking customers to shorten showers, and beverage companies are working with farmers and NGOs to drive water use down throughout the value chain (see my last blog, co-written with Andy Wales from SABMiller). In 2011, the phrase "water footprint" became a lot more common.

7. Value chain and transparency partnerships growing: The apparel industry bands together
One of my favorite new partnerships is the new Sustainable Apparel Coalition, an impressive mix of powerful retailers, apparel manufacturers, and NGOs. The group is leveraging extensive data from Nike and the Outdoor Industry Association on supplier sustainability performance (energy, water, toxicity, etc.) for "every manufacturer, component, and process in apparel production." The goal: to reduce negative environmental and social impacts of the $1.4 trillion market for clothes and shoes.

The larger trend here is the continued growth of "open" — open data and open innovation, including new value-chain business partnerships and cattle-call contests inviting in any and all ideas. The movement has been building for years, from P&G opening up its product development pipeline early in the 2000s to the launch of the GreenXchange for sharing green patents early in 2010. But the trend accelerated this year, with GE's expanded Ecomagination Challenge and other coalitions and open competitions.

8. Valuing and internalizing the externalities: Puma Calculates its Environmental P&L
A few very cutting edge companies are starting to ask some deeper questions about the value they create and destroy in the world. Puma, in a surprise leap to the front of the sustainability leadership pack, commissioned TruCost and PwC (full disclosure: I have a partnership with PwC) to assess the value of its total environmental impacts from operations and supply chain, including carbon pollution, water use, land use, and waste generated. The total: 145 million euros. In a similar vein, Dow Chemical launched a 5-year, $10 million partnership with The Nature Conservancy to "value nature" (so called "ecosystem services") as an input into their businesses. It's unclear what companies can do with these numbers since externalities are by their nature, well, external to the regular P&L. But it's the beginning of something very important — companies are starting to understand the real value and costs of their businesses, to themselves and to society. Watch this space.

9. The people speak: Keystone and OWS
Speaking of getting companies and governments to think longer term about value and costs to society: against all odds and expectation, the protests against the Keystone XL pipeline from Canada — led most prominently by uber-environmentalist Bill McKibben — were successful (for now). And what can one say about Occupy Wall Street? The movement is, in part, about this larger question of value and values. Do we value the right things (equity, fairness, justice) or just promote growth and profit above all? Currently, our businesses are driven entirely by quarterly profits. Pursuing the short-term payback can cause a firm to deviate wildly from actual, long-term, sustainable profitability. This disconnect was bound to stir some passions eventually. Whatever your politics, ignoring or dismissing this movement is a big mistake. The concerns underpinning the anger out there stem from concern about what's good for the long-term, and what's truly sustainable. None of these questions are going away.

10. A path to sustainable consumption begins to emerge: Patagonia asks us to buy only what we need
Perhaps the most heartening business story of the year came from perennial thought (and action) leader, Patagonia. Its Common Threads campaign/business model questions consumption at its core. The company announced that it would take back its clothing and refurbish, resell, reuse, re-whatever. The website proposes a grand bargain - we make clothes that last, and you don't buy what you don't need. A holiday ad got more specific and demanded we "Don't buy this jacket." Patagonia is testing new ground and it's not a gimmick — it's a sign of the future.

Looking Forward to 2012 and beyond: New business models coming
Patagonia has always been at the leading edge; it was one of first companies to buy organic cotton or to turn recycled plastic into fleece. Now it's showing the way to new business models. I've written about this kind of heresy before, but the few examples out there are generally B-to-B (Waste Management, Xerox). Patagonia's move is a warning shot over the bow that the consumer-facing consumption question is coming. The near future will hold more questions about how businesses can and should operate in a resource-constrained, hotter, drier (or wetter) world. And companies will increasingly question the wisdom of focusing on quarterly profits. It won't all come to fruition in 2012, but it's on its way.

As usual, I'm sure I'm missing many great stories in my list. I look forward to your suggestions. Happy holidays and Happy New Year!

(This post first appeared at Harvard Business Online.)

(Sign up for Andrew Winston's blog, via RSS feed, or by email. Follow Andrew on Twitter @GreenAdvantage)

January 9, 2014

Business Resilience Comes from Working with Nature

[Note: This post is co-authored with Michelle Lapinski, a senior advisor on valuing nature at The Nature Conservancy]

Hurricane Sandy, the superstorm that pummeled the U.S. northeast in October 2012, ranks as the second-costliest hurricane in American history, causing an estimated $68 billion in damages. One year later, the most powerful storm ever recorded to hit land devastated the Philippines.

With these once extraordinary events becoming more ordinary, it’s becoming clearer that businesses in vulnerable regions need to prepare. But how should companies go about building resilient enterprises that are ready to face extreme weather and other effects of climate change? One powerful, underleveraged option is to use nature to protect our coasts and physical assets — that is, to invest in so-called “green infrastructure” a term meant to differentiate projects from more typical “gray” or man-made infrastructure solutions (such as dams, levees, and water treatment systems) that we build to cool and purify water or defend our buildings and assets against the elements.

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Our natural world already provides immensely valuable services to make our economy and society possible. Most obviously, we get all our food, minerals, and metals from the ground, and forests provide wood and oxygen. But there are more subtle benefits: forests also clean our water and coastal wetlands and reefs provide natural defense from storms and floods. They can help us manage rainwater and wastewater. These services, which are not currently valued in the marketplace, protect both people and commercial and residential assets.

So a city or company looking to safeguard its water supply, for example, could invest in protecting or restoring lands instead of building a new water treatment plant (which is exactly what the New York City did when it bought land in the Catskill Mountains in 1997 — this initiative avoided up to $8 billion in costs for a new filtration facility and saved $200-$300 million in ongoing operation and maintenance costs).

But is this kind of green infrastructure approach generally as effective? Is it cost competitive? A recent paper by Shell, Dow, Swiss Re, Unilever and The Nature Conservancy concludes that frequently, it is.

Using standard cost-benefit analysis, the study compared some natural solutions to more traditional infrastructure investments. In all of the completed corporate projects, the green option won out toe-to-toe on capital expenditures and operational expenditures

Here’s one of the more compelling examples highlighted in the paper:

One of Shell’s joint ventures, Petroleum Development Oman LLC (PDO), uses constructed wetlands to treat produced water from oilfields. PDO’s extraction activities produce a lot of oily water as a by-product. After investigating alternative, low cost solutions to treat and dispose of the water, PDO built a natural wetland system that uses sunlight, reeds, and gravity (to flow water down in steps) in place of extensive water treatment and injection operations. The latter, gray option would have required significant electric power and produced high greenhouse gas emissions… and it would’ve cost a lot more.

On every important measure — capital expenditure, operational expenditure, and performance — the constructed wetland outperformed the traditional approach. Power consumption and CO2 emissions were reduced by 98%, which lowered operating expenses dramatically. And as a bonus, the wetland provides habitat for fish and hundreds of species of migratory birds.

In this particular case, PDO only needed the natural option, but the study concluded that hybrid solutions – combinations of green and gray infrastructure — may often provide the best mix of benefits. Together, green and gray solutions combine some of the resilience inherent in natural systems with the way an engineered solution can solve a specific challenge.

Shell isn’t the only company that discovered the savings from green infrastructure. The report includes case studies for Dow, which also utilized a constructed wetland at one of its facilities, reducing capex expense by a factor of 10. Today, Dow is exploring additional applications of green infrastructure and is engaged in a multi-year collaboration with The Nature Conservancy on valuing ecosystem services, which includes evaluating the viability of natural infrastructure at its largest production site.

Companies with common challenges can identify savvy, shared investments in green solutions for wastewater treatment, desalination, or coastal defense (using, say, wetland and reef restoration) and potentially collaborate on new green infrastructure opportunities at co-located assets.

Collectively, the companies in the report concluded that green infrastructure solutions should become a major part of the modern engineer’s standard toolkit: “Incorporating nature into man-made infrastructure can improve business resilience —and bring additional economic, environmental and socio-political benefits.” The report also provides an emerging set of performance metrics that managers can use to assess and compare green and grey infrastructure options.

As the damages from (and costs of) extreme weather and other disruptions soar, investing in resilience becomes a better deal. And nature can provide many of the solutions we need to both save money and protect our assets. So run the numbers on green infrastructure solutions. The calculations are likely to show that green options are the best investments.

(This post first appeared on the Harvard Business Review blog network.)

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February 27, 2014

It Just Got Easier for Companies to Invest in Nature

Nature is valuable. But figuring out how valuable has been challenging. By some measures, the services that nature provides business and society — clean water, food and metals, natural defense from storms and floods, and much more — are worth many trillions of dollars. But that number is not helpful to companies trying to assess how dependent they are on natural resources, or how to value them as business inputs.

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In recent years, many large companies have realized that they need to get a handle on these issues, and that doing it well creates business resilience. But figuring out what steps to take has been challenging. Into that void steps a new, very helpful tool, the Natural Capital Business Hub. The Hub is a project run by the Corporate EcoForum, The Nature Conservancy, and The Natural Capital Coalition (and built by Tata Consultancy Services). It builds off a partnership launched at the Rio+20 summit in 2012 with companies such as Alcoa, Coca-Cola, Disney, Dow, GM, Kimberly-Clark, Nike, Unilever, and Xerox. At the time, they produced a report with case studies showing how companies have managed natural capital issues. The Hub expands that effort, making much more information available and searchable.

The Hub basically does four things:

  • Provides case studies of corporate action for benchmarking and learning, which you can search by industry, region, ecosystem, or value-creation focus (cost reduction, brand building, etc.).
  • Offers perspective on how to make the business case internally by laying out how valuing natural capital helps business.
  • Gives us a framework for implementation and a thorough description of (or links to) the best tools for valuing and managing natural capital.
  • Opens up collaboration opportunities by listing programs that need more partners and builds a network of professionals (with 2Degrees Network) who are working on these issues.

The case studies are ostensibly the core of the site. Project managers, facility heads, executives who make capital decisions, sustainability managers, and many others can learn from the work that leading companies have done already. Managing natural capital is a young field, but Dow, for example, is now three years into its six-year partnership with The Nature Conservancy to “recognize, value, and incorporate the value of nature into business decisions, strategies and goals.” (The company just released the latest update on the partnership.) The Hub is a place to start your research and learn from Dow and many others.

On the site, you can find stories of completed projects or prospective collaborations that need more partners to get off the ground. In the first category, you’ll find stories like the one about Grupo Bimbo, the Mexican food company that owns Sara Lee, Hostess, and Pepperidge Farms. Bimbo needed to manage stormwater around a site in Pennsylvania. Using natural or “green” infrastructure such as rain gardens and forest buffers — versus “gray”, manmade systems like retention ponds and pipes — the company reduced ongoing operating costs and avoided the complications of burying pipes in sensitive ecosystems.

On a somewhat larger scale, consider Darden restaurants (owner of Olive Garden, Red Lobster, and many more) and its efforts to save fisheries. As companies like Unilever and McDonald’s have long recognized, ensuring healthy fish stocks isn’t a philanthropic nice-to-have, but core to business survival: no fish, no fish sticks, lobster plates, or Filet-O-Fish sandwiches. Darden is working with the National Fish & Wildlife Foundation and others to target valuable fisheries and manage them closely.

What’s interesting about the Darden case study, and the Hub in general, is that this project is just getting started — essentially, it’s an open call for collaboration. The Hub is innovative and helpful because of the partnership tools. Natural capital issues are not easy and cross many lines – every company, city, and home in a region, for example, depends on water and flood protection. No organization or region can act alone, and it shouldn’t. By listing the major collaborations that are actively searching for new partners, the Hub has done a great service.

(This post first appeared on the Harvard Business Review blog network.)

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