SLIDE 1
www.corp2020.com @Corp2020
Courtesy : Yann-Arthus Bertrand, GoodPlanet
The Increasing Importance of Ecosystem Services Pavan Sukhdev Study - - PowerPoint PPT Presentation
The Increasing Importance of Ecosystem Services Pavan Sukhdev Study - - PowerPoint PPT Presentation
www.corp2020.com @Corp2020 Swedbank, Stockholm 26 th September 2013 The Increasing Importance of Ecosystem Services Pavan Sukhdev Study Leader TEEB CEO GIST Advisory www.corp2020.com @Corp2020 Courtesy : Yann-Arthus Bertrand,
SLIDE 2
SLIDE 3
www.corp2020.com @Corp2020
About Rainforests and Rainfall….
- http://www.vets.ucar.edu/vg/T341/index.shtml
SLIDE 4
www.corp2020.com @Corp2020
11/29/2013
Amazonia: Economic Invisibility of Freshwater
Amazon
Rainforest “Water Pump”
Evapo-transpiration puts 20 billion tonnes
- f water into the
atmosphere daily, some of which falls as rain in the Rio Plata Basin… supporting a US$ 240 billion agricultural economy
(Global Canopy Programme & Canopy Capital Ltd, 2008)
SLIDE 5
www.corp2020.com @Corp2020
29.11.2013 5
Source: Gundimeda and Sukhdev, TEEB for National & International Policy
Indonesia India Brazil
25% 75% 47% 53% 89% 11%
99 million 352 million 20 million Ecosystem services dependency
Ecosystem services
Ecosystem services as a % of “GDP of the Poor” Ecosystem services as a % of classical GDP
21% 79% 16% 84% 10% 90%
For Poverty Reduction
SLIDE 6
www.corp2020.com @Corp2020
For Business..
Dependencies
- Climate stability
- Agri-productivity
- Materials
- Medicines
- Etc etc
Impacts
- Emissions
- Land Use Change
- Freshwater
- Etc etc
Opportunities
- Green Carbon
- Bio-mimicry
- Cradle-to-cradle
- Etc etc
Risks
- Business Disruption
- Resource Prices
- Social Licence to Operate…
- Etc etc
SLIDE 7
www.corp2020.com @Corp2020
The Risk Picture…
SLIDE 8
www.corp2020.com @Corp2020
- Negative externalities of top 3,000 companies
estimated at US$2.15 trillion per annum
The Risk Picture..
Source: Trucost for UNPRI, 2010.
SLIDE 9
www.corp2020.com @Corp2020
Source: Trucost for UNPRI, 2010.
Top 3,000 Listed Companies
Negative Corporate Externalities …..
SLIDE 10
www.corp2020.com @Corp2020
Water Abstraction Greenhouse Gases Greenhouse Gases Natural Resources Natural Resources Natural Resources
….. Pushing Planetary Boundaries
SLIDE 11
www.corp2020.com @Corp2020
What will drive change?
Excessive Demand Culture of Consumerism Fuelled by Marketing/ Advtg Ethics & Accountability in Advertising
Macro Issue Micro Driver Micro Solution
Public Capital Losses Externalized costs Measure & Disclose Externalities Underpriced Supply Unlimited leverage Limit Leverage/capital adequacy/etc. Resource Depletion Underpriced resources (Low royalties / perverse subsidies) Resource Taxes replace corporate taxes
SLIDE 12
www.corp2020.com @Corp2020
Why Stakeholder Reporting?
Business today depends on, and/or has impacts on, ALL dimensions of private & public wealth ͙ but.. EXAMPLES Physical Capital Human CapitalSocial Capital Natural Capital Private
- Factories
- Health
- Gardens
Ownership
- Buildings
- Education
- Fields
- Securities
- Job Skills
- Forests
- Cash
Community
- Community
- Traditional
- Community
- Community
Ownership * Centres knowledge Norms and Forests (club goods)
- Community
Customs
- Grazing
Schools Commons Public
- Roads
Ownership *
- Bridges
(public goods)
- Public
- Law & Order
- High Seas
databases
- Taxation
fisheries
- Non-patent
- Social Equity
- National
knowledge & Inclusion Parks/ Forests * Creating community wealth and public wealth creates “shared value”
SLIDE 13
www.corp2020.com @Corp2020
Why Stakeholder Reporting?
Business today generally measures & reports only shareholder wealth impacts: private physical capital EXAMPLES Physical Capital Human CapitalSocial Capital Natural Capital Private
- Factories
- Health
- Gardens
Ownership
- Buildings
- Education
- Fields
- Securities
- Job Skills
- Forests
- Cash
Community
- Community
- Traditional
- Community
- Community
Ownership Centres knowledge Norms and Forests (club goods)
- Community
Customs
- Grazing
Schools Commons Public
- Roads
Ownership
- Bridges
(public goods)
- Public
- Law & Order
- High Seas
databases
- Taxation
fisheries
- Non-patent
- Social Equity
- National
knowledge & Inclusion Parks/ Forests
SLIDE 14
www.corp2020.com @Corp2020
Why Stakeholder Reporting?
Business for a sustainable tomorrow - will measure & report on LL dimensions of its impacts ͙ EXAMPLES Physical Capital Human CapitalSocial Capital Natural Capital Private
- Factories
- Health
- Gardens
Ownership
- Buildings
- Education
- Fields
- Securities
- Job Skills
- Forests
- Cash
Community
- Community
- Traditional
- Community
- Community
Ownership * Centres knowledge Norms and Forests (club goods)
- Community
Customs
- Grazing
Schools Commons Public
- Roads
Ownership *
- Bridges
(public goods)
- Public
- Law & Order
- High Seas
databases
- Taxation
fisheries
- Non-patent
- Social Equity
- National
knowledge & Inclusion Parks/ Forests
SLIDE 15
www.corp2020.com @Corp2020
Financial Value Addition Human Capital Externalities Social Capital Externalities Natural Capital Externalities
Measuring “Value Addition” holistically, including all material Externalities
How Stake Holder Reporting? GIST 360o TM Assessment..
SLIDE 16
www.corp2020.com @Corp2020
Disclosing Externalities : PUMA
PUMA Press Release, November2011
SLIDE 17
www.corp2020.com @Corp2020
Accountable Advertising : PUMA
SLIDE 18
www.corp2020.com @Corp2020
Quantifying Usage, Discovering Depend-encies & Impacts Standardizing & Valuing Impacts Disclosing Impacts in “One Report” Emissions /tCOe Freshwater / CuM Forests LUC / Ha Pollution / … Waste / … Economic Costs of Emissions, Freshwater Use, Deforestatio n, Pollution, Waste … Framework for Integrated Reporting
- f All Externalities…
incl Social & Human Capital.. WBCSD… GRI… CEF… CDP, WDP… TEEB for Business Coalition & Network IIRC, SASB, & Accountancy Regulators (Value Chain Impacts “Cradle to Gate”)
TEEB for Business Coalition:
Measuring, Valuing, Disclosing Externalities
SLIDE 19
www.corp2020.com @Corp2020 ‘TEEB4BC’ Report (15th April 2013) on Measuring & Valuing Externalities by Business Sector & Region…..
www.teebforbusiness.com
TEEB for Business Coalition:
Measuring, Valuing, Disclosing Externalities
SLIDE 20
www.corp2020.com @Corp2020
Corporation as “Community” : Natura
Greater Economic Security for Women
Source: http://www.managementexchange.com/story/innovation-in-well-being http://totallybeautyaddict.fr/mon-jolieapero-chez-natura-brasil/
SLIDE 21
www.corp2020.com @Corp2020
Alessandro Carlucci Pavan Sukhdev
CEO, Natura Author, “Corporacao 2020”
SLIDE 22
www.corp2020.com @Corp2020
What will define a “Corporation 2020”?
–Social Purpose: Goals Aligned with Society –Capital Factory: Positive Externalities –Institute: Creating Human Capital –Community: Creating Social Capital
SLIDE 23
www.corp2020.com @Corp2020
In Summary : Reforms for “Corporation 2020” to become the DNA of Business
Source: Why Corporation 2020?, Island Press, 2012
Resource Taxation : Replacing Corporation Tax (profits) with Taxes on Resource Use & Extraction Accountable Advertising : Making advertising responsible & accountable via norms & standards From : www.corp2020.com Limiting Leverage : Introducing rules & limits to govern financial leverage Disclosing Externalities : Measuring & disclosing all major corporate externalities (+ve & -ve)
SLIDE 24