Biodiversity and Ethical Business

2005 - Athanas - The role of business in biodiversity and impact assessment

Julian Rode — 2010-01-05T17:46:49Z

Title

The role of business in biodiversity and impact assessment

Authors

Andrea Athanas

Date

2005

Abstract

Much has been done in recent years to generate international policy frameworks that promote the integration of biodiversity into impact assessment (Ramsar Convention, Resolution VIII.9 (2002), Convention on Biological Diversity, Decision VI- 7 (2002), and the Convention on Migratory Species Resolution 7.2 (2002)), but effective implementation of these frameworks remains a challenge. While implementation of international policy is ultimately the responsibility of the national governments who have signed up to the conventions, others also have role to play in translating policy commitments into action on the ground. This paper explores how the business community could play a role in moving towards implementing biodiversity and impact assessment policy.

Citation

Athanas, A. (2005). The role of business in biodiversity and impact assessment. Impact Assessment and Project Appraisal 23 (1), 29–35.

2009 - Bishop et al - New Business Models for Biodiversity Conservation

Julian Rode — 2010-01-05T16:38:41Z

Title

New Business Models for Biodiversity Conservation

Authors

Joshua Bishop, Sachin Kapila, Frank Hicks, Paul Mitchell, Francis Vorhies

Date

2009

Abstract

New financing mechanisms for tropical forest conservation, based on payments for ecosystem services, often involve the development of new business models. Suppliers of ecosystem services may include existing land users (e.g., farmers, foresters, tourism operators) or new business ventures (e.g., carbon accountants and traders, conservation bankers). Developing viable business models for biodiversity conservation is a major challenge, due to: the complexity of biodiversity itself (i.e., genes, species, and ecosystems, many still undocumented); the various linkages between business and biodiversity (which may be an economic input, output, competing resource use, or victim of pollution); insufficient consensus on biodiversity conservation priorities and performance indicators applicable at the enterprise level; weak or missing property rights, liability regimes, and/or incentive measures to penalize biodiversity loss and reward conservation effort; and concerns about potential adverse social impacts. This study presents a synthesis of experience across a range of sectors to develop more sustainable business models for biodiversity conservation, identifies key success factors, and outlines a new approach to building a biodiversity business that combines policy innovation, business development assistance, and financial support.

Citation

Bishop, J., Kapila, S., Hicks, F., Mitchell, P., Vorhies, F. (2009). New Business Models for Biodiversity Conservation. Journal of Sustainable Forestry 28 (3), 285-303.

2001 - Craft and Simpson - The Value of Biodiversity in Pharmaceutical Research with Differentiated Products

Julian Rode — 2010-01-05T16:17:12Z

Title

The Value of Biodiversity in Pharmaceutical Research with Differentiated Products

Authors

Amy B. Craft, R. David Simpson

Date

2001

Abstract

Biologists and conservation advocates have expressed grave concern over perceived threats to biological diversity. “Biodiversity prospecting” – the search among naturally occurring organisms for new products of agricultural, industrial, and, particularly, pharmaceutical value – has been advanced as both a mechanism and a motive for conserving biological diversity. Economists and others have attempted to estimate the value of biodiversity for use in new pharmaceutical project research. In this paper we apply a new approach to estimating values: we employ two models of competition among differentiated products. Each model confirms previous findings that the value to private researchers of the “marginal species” is likely to be small. The models can have very different implications with respect to social values, however. These findings underscore the need for a better understanding of the true meaning of diversity.

Citation

Craft, A., Simpson, R. (2001). The Value of Biodiversity in Pharmaceutical Research with Differentiated Products. Environmental and Resource Economics 18, 1–17.

1996 - Simpson et al - Valuing Biodiversity for Use in Pharmaceutical Research

Julian Rode — 2010-01-05T16:03:28Z

Title
Valuing Biodiversity for Use in Pharmaceutical Research

Authors
David R. Simpson, Roger A. Sedjo, John W. Reid

Date
1996

Abstract
'Biodiversity prospecting' has been touted as a mechanism for both discovering new pharmaceutical products and saving endangered ecosystems. It is unclear what values may arise from such activities, however. Evidence from transactions is incomplete and existing theoretical models are flawed. The authors calculate an upper bound on the value of the 'marginal species.' Even under favorable assumptions this bound is modest. Slightly modified assumptions lead to drastically lower estimates. The authors extend their findings to the value of the marginal hectare of habitat and find that the incentives for habitat conservation generated by private pharmaceutical research are also, at best, very modest.

Citation
Simpson, R., Sedjo, R., Reid, J. (1996). Valuing Biodiversity for Use in Pharmaceutical Research. The Journal of Political Economy 104 (1), 163-185.

2002 - Dyllick and Hockerts - Beyond the Business Case for Corporate Sustainability

Julian Rode — 2010-01-05T15:32:45Z

Title

Beyond the Business Case for Corporate Sustainability

Authors

Thomas Dyllick, Kai Hockerts

Date

2002

Abstract

The article is intended as a contribution to the ongoing conceptual development of corporate sustainability. At the business level sustainability is often equated with eco-efficiency. However, such a reduction misses several important criteria that firms have to satisfy if they want to become truly sustainable. This article discusses how the concept of sustainable development has evolved over the past three decades and particularly how it can be applied to the business level. It then goes on to describe the three types of capital relevant within the concept of corporate sustainability: economic, natural and social capital. From this basis we shall then develop the six criteria managers aiming for corporate sustainability will have to satisfy: eco-efficiency, socio-efficiency, eco-effectiveness, socio-effectiveness, sufficiency and ecological equity. The article ends with a brief outlook towards future research.

Citation

Dyllick, T., Hockerts, K. (2002). Beyond the Business Case for Corporate Sustainability. Bus. Strat. Env. 11, 130–141.

2007 - Mulder - Assessing Exposure of Financial Institutions to Biodiversity Business Risks and Identifying Options for Business Opportunities

Julian Rode — 2010-01-05T14:28:16Z

Title

Assessing Exposure of Financial Institutions to Biodiversity Business Risks and Identifying Options for Business Opportunities

Authors

Ivo Mulder

Date

2007

Abstract

Following the spur of climate change up the international business agenda, biodiversity possesses characteristics of becoming the next challenge for the financial sector. This study aimed at assessing 1) what types of biodiversity business risks (BBRs) financial institutions (FIs) can be exposed to; 2) what evidence there is on the business case for biodiversity for FIs from a risk perspective; 3) what possibilities FIs have to mitigate BBRs; and 4) what type of biodiversity business opportunities (BBOs) can be captured. Results from an interview survey among financial institutions (FIs) and other stakeholders revealed that 19 out of 26 respondents (> 70%) believed FIs are exposed to reputational risk. Additional types of risks that were identified, although to a lesser extent, include liability risk, social license to operate, credit risk and reduced shareholder value. Though it is difficult, at present, to link biodiversity business risks (BBR) to tangible financial metrics, such as default risk or shareholder value, a wide range of cases provide evidence of the business case. However, apart from a few banks, such as Rabobank, HSBC, ABN AMRO and Goldman Sachs, FIs have hardly integrated the issue in their daily operations. Also, as the interview survey revealed that a number of FIs are definitely interested in identifying how they can mitigate risks at an early stage, a general procedure is provides a systematic overview of tools that FIs can use to integrate biodiversity into their risk management procedures. Although BBRs are likely to be more financially significant, there are a number of BBOs already in use, such as growing markets for certified sustainably produced commodities, providing due diligence and advisory services to clients, and fully utilizing government-induced opportunities. Expected market sizes range widely, from US$35 million – 60 billion annually by 2010.

2009 - Houdet et al - Accounting for Changes in Biodiversity and Ecosystem Services from a Business Perspective

Julian Rode — 2009-12-11T12:21:30Z

Title

Accounting for Changes in Biodiversity and Ecosystem Services from a Business Perspective

Preliminary guidelines towards a Biodiversity Accountability Framework

Authors

Joël Houdet, Charlotte Pavageau, Michel Trommetter, Jacques Weber

Date

November 2009

Abstract

Biodiversity refers to the dynamics of interactions between organisms in hanging environments. Within the context of accelerating biodiversity loss worldwide, firms are under increasing pressures from stakeholders to develop appropriate tools to account for the nature and consequences of their actions, inclusive of their influences on ecosystem services used by other agents. This paper presents a two-pronged approach towards accounting for changes in biodiversity and ecosystem services from a business perspective. First, we seek to analyze how Environmental Management Accounting (EMA) may be used by firms to identify and account for the interactions between their activities and biodiversity and ecosystem services (BES). To that end, we use dairy farming as a case study and propose general recommendations regarding accounting for changes in biodiversity and ecosystem services from a management accounting perspective. Secondly, after discussing the corporate reporting implications of the main environmental accounting approaches, we propose the underlying principles and structural components of a Biodiversity Accountability Framework (BAF) which would combine both financial and BES data sets; hence, suggesting the need for changes in business accounting and reporting standards. Because this would imply significant changes in business information systems and corporate rating practices, we also underline the importance of making the associated technological, organizational and institutional innovations financially viable. The BAF should be designed as an information base, coconstructed with stakeholders, for setting up and managing new modes of regulation combining tools for mitigating BES loss and remunerating BES supply.