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Advancing More, Better and Faster Financing for Biodiversity and Ecosystem Services

Private sector funding

Conservation Finance: Moving beyond donor funding toward an investor-driven approach, Credit Suisse AG, World Wildlife Fund, Inc., and McKinsey & Company, January 2014

Basis for action:
"To establish enabling conditions for private sector involvement in supporting the Convention’s three objectives, including the financial sector"...Strategy for resource mobilization, objective 2.6
"To mobilize private sector investments in biological diversity and its associated ecosystem services"...Strategy for resource mobilization, objective 3.4
"To explore opportunities presented by promising innovative financial mechanisms such as markets for green products, business-biodiversity partnerships and new forms of charity"...Strategy for resource mobilization, objective 4.4

Indicator:
Aggregated financial flows, in the amount and where relevant percentage, of biodiversity-related funding, per annum, for achieving the Convention’s three objectives, in private sector

Further decisions
”Recalling decision IX/11, paragraph 4, and taking into account decision X/3, paragraph 11, invites Parties and relevant partner organizations to examine their role in establishing enabling conditions for the public and private sectors to support the objectives of the Convention and its two protocols, and to submit information on their experiences to the Executive Secretary (see also UNEP/CBD/WG-RI/4/9)”… Decision XI/4, paragraph 16
”Recalling decision IX/11, paragraph 6, urges Parties and other Governments, where appropriate, to continue to enhance national administrative and managerial capacities, to create the enabling environment to mobilize private and public-sector investments in biological diversity and its associated ecosystem services”… Decision XI/4, paragraph 14

Burundi, Cameroon, Central African Republic, Congo, Congo DR, Equatorial Guinea, Gabon, and Sao Tome and Principe

Comoros
(2009) Integration of biodiversity in the financial sector

Djibouti, Eritrea, Ethiopia

Kenya
(2006) Growing farm timber: practices, markets and policies - The Meru timber marketing pilot programme case studies and reviews

Madagascar
(2014) Un grand nombre d’entreprises/organismes du secteur privé sont impliqués dans des actions de conservation de la biodiversité, de manière volontaire, ou dictées par leurs cahiers de charges environnementaux. A titre d’exemples, les cas de l’ESSA-Forêt, de QMM, du projet Ambatovy et de la Fondation Tany Meva, des entités qui diffèrent de par leurs actions et leurs obligations par rapport à l’environnement, sont présentés ci-dessous. Pour les grands projets miniers de QMM et le projet Ambatovy, leurs engagements vis-à-vis de l’environnement, à la fois réglementaires et volontaires, les ont conduit à la création de sites de conservation, à la mise en oeuvre du Plan de Gestion Environnementale, à la réalisation d’activités de restauration écologique et de reboisement, et à la prise en compte de l’insertion sociale du projet dans leurs zones d’influence. A cet effet, un programme de compensation sur la perte de biodiversité (BBOP : Business and Biodiversity Offset Program/ Programme de compensation de la Biodiversité) est instauré dans les zones d’influence du projet en vue de développer un cadre pour la mise en oeuvre effective des actions de compensation, axées notamment sur l’amélioration des moyens de subsistance des communautés locales.
(2014) Entreprise privée: La contribution du secteur privé n’est pas encore significative. Les deux grands projets miniers (Ambatovy et QMM) et la compagnie Air France sont les principaux donateurs. Dans le cadre de compensation de la perte de la biodiversité à Madagascar au niveau des deux grands projets miniers, QMM et Ambatovy, un Programme compensation sur la perte de biodiversité BBOP (Business and Biodiversity Offset Program / Programme de compensation de la Biodiversité) a été mis en place. Le coût opérationnel du programme BBOP du projet Ambatovy est estimé en moyenne entre 250 000 et 300 000 USD par an. Air France contribue au Programme Holistique de Conservation des Forêts au profit de AFD/Etceterra/ WWF/ à concurrence de 3,5 millions €, soit environ 4,73 USD prévu au titre des années 2013 – 2016.
Privatization, The PHCF project

Mauritius
(2014) Filming in Parks, Eco-tourism activities, Hawkers Operations (sales), Green Fund from Private Company (IBL), Corporate Social Responsibility (CSR)

Rwanda
(2006) Donations of private sources. The private sector contributes very little in the environment. Resources generated through financial instruments such as charges for use of biological diversity. Fees generated by tourism activities and in part support the conservation efforts by the Rwandan Office of Tourism and National Parks.

Seychelles
(2011) Government, NGOs and private sector partnership in ecosystem rehabilitation

Somalia, South Sudan, Sudan

Tanzania
(2003) MEMA project facilitates the transfer of user rights and ownership of natural woodlands and forest reserves to local communities, and encourages the establishment of village natural resource committees in charge of the management of the forests, based in a management plan developed by the villagers and facilitated by MEMA.

Uganda
(2002) Key roles of the private sector will be to: invest in sustainable and environmentally-sound technologies; invest in alternative income-generating activities; contribute resources to support programmes on land management and biodiversity conservation.

Angola, Botswana, Lesotho

Malawi
(2010) Public Private Partnership. African Parks (Majete) entered into a PPP arrangement with Department of National Parks and Wildlife regarding the management of Majete Wildlife Reserve in 2003. Through the partnership, Majete Wildlife Reserve has restocked species that were once locally extinct. It is evident from the case study the current PPP arrangement with African Parks Majete has contributed to conservation of such endangered species such as Black Rhinos and elephants.
(2013) The enabling environment for sustainable enterprises in Malawi

Mozambique
(2009) The role of the private sector includes: Promotion of natural resources conservation and research; Collaboration with national and international research institutions; Involvement of community intervention; Socio-economic development; Tourism development; Involvement in the policies of economic and social development and the preservation of biodiversity, with the aim of achieving sustainable development in this for future generations; Participation in the management, conservation and exploitation of forest and faunal resources, to give greater added value, and improve development for local communities.

Namibia
(2010) Public Private Partnership, Changes in Ownership Rights, The Torra Conservancy. At least 20 public-private partnerships for effective biodiversity conservation underway nationwide and demonstrating positive results. Examples include 140 Private reserves covering an area of 760,000 ha, corporate social responsibility initiatives of private companies supporting conservation research and projects, and joint venture agreements between the private sector and local communities (tourism and indigenous plant products).
(2003) Appropriate Ownership Models for Natural Product-based Small and Medium Enterprises in Namibia

South Africa
(2009) Private Sector Initiatives (Biodiversity and Wine Initiative, fishing industry initiatives): participatory forest guideline series developed and being implemented, e.g. employing local communities as tour guides; initiatives being undertaken through Expanded Public Works Programmes e.g. Working for Water – use wood for coffins, Working for Wetlands etc; bioregional programmes create biodiversity-based projects to generate incomes for communities; conservation agencies, such as SANParks, promote projects for development using Community Based Natural Resource Management Programmes principles; government assisting traditional healers and communities to use biological resources sustainably (e.g. DWAF bark-harvesting programmes. CSIR agro-processing of indigenous plants used for oil extraction, medicinal plant nursery projects); ecotourism projects, for example, Wild Coast agreements with local communities to work at hotels etc.; Farmer to Pharma programme. Challenges: Public Private Partnership guidelines do not exist for all biodiversity-related sectors; No standards (certification of products, labelling, packaging standards etc) for natural products that will facilitate trade in products; Additional emphasis required on “value adding” of harvested resources, since the amount of resources harvested in most areas and species should not be increased; Limited progress in establishing a natural-based product sector, especially with focus on SMMEs; Concerns that projects may not create sustainable jobs; Support from strategic/ technical partners to communities to ensure sustainability of natural resource projects often lacking; Piecemeal and uncoordinated approach to partnerships
The South African Natural Heritage Programme (SANHP)provides the opportunity for individual and corporate landowners to participate actively in the protection of biodiversity and natural areas. The programme aims to encourage the protection of important natural sites, large or small, in private and public ownership. Not only private land, but also state land managed by different spheres of government, can be registered under the programme. By informing landowners of the special attributes of a particular site, registration as a Heritage Site reduces the possibility that significant natural features and the associated biodiversity may be unwittingly degraded or destroyed
(2002) Private Supply of Protected Land in Southern Africa: A Review of Markets, Approaches, Barriers and Issues: Private management structures are more effective in capturing the economic value of biodiversity, and thereby turning conservation into a competitive form of land use. Beside the economic benefits accruing to landowners, private reserves and game ranches provide the public good ‘biodiversity’ at zero cost to the tax-payer. The experience from southern Africa further supports the economic theory that secure property rights to land and wildlife are an essential ingredient in any strategy to conserve and encourage long-term investment in wildlife habitat. Markets for biological resources are responsible for the private supply of wildlife habitat, and any policy impairing the relative competitiveness of wildlife as a land use will have a direct impact on the private supply of biodiversity.
(2003) Transforming or Tinkering? New Forms of Engagement between Communities and the Private Sector in Tourism and Forestry in Southern Africa: There are too many unsuccessful examples to suggest that ‘making markets work for the poor’ happens easily or automatically. While some of the poor are earning or will gain cash incomes and economic opportunities, there is inequality in these opportunities, and insufficient attention paid to the participation of the poor in decision-making and to the trade-offs with other livelihood priorities. For the market to be helpful in alleviating poverty there needs to be a more level playing field; a recognition that markets are intensely politicised and easily captured by elites; and a willingness on behalf of the state to intervene in markets and address the issue of equity with redistributive mechanisms where necessary.
(2013) Standard Bank Group in South Africa: the integrated management system to implement the Equator Principles. Before granting a loan, Standard Bank evaluates the E&S risks of the project using E&S Risk Screening Tools. The bank identifies the extent of the risks, and communicates with the clients to see if they have the capabilities of risk control. During the loan-approval process, the bank’s environmental team will conduct a technical assessment of the project, and carry out internal and external due diligence based on the risk. E&S risk management is integrated throughout the five phases of the bank’s loan process: i) on-boarding, ii) re-credit committee, iii) credit, iv) legal documentation, and v) monitoring.
(2004) Integrating Mining and Biodiversity Conservation: Bushmanland Conservation Initiative. Plans announced by Anglo American in 1999 to develop a zinc mine in South Africa were met by strong protests from environmental organisations and groups concerned about the possible impact on biodiversity in the area. Yet systematic conservation planning at both regional and local scales contributes to building the basis for effective engagement between mining companies and the organisations concerned about biodiversity conservation.
(2013) In 2004, the Johannesburg Stock Exchange launched the Socially Responsible Investment Index, which assesses a company’s performance against four criteria: governance, society, environment and economy. Environmental scores are established through an assessment of environmental policies, management and reporting/disclosure practices. High environmental impact companies need to score highly to meet the requirements of the Index methodology. The Sustainable Finance Forum consists of members from the financial and industrial sectors and developed a Code of Conduct for its financing activities in line with the Equator Principles. The New Banking Initiative has been established as an umbrella process for green finance. The Development Bank of Southern Africa (DBSA)is involved in shaping and financing biodiversity conservation/sustainable use and employment-generating programmes such as the Dry Lands Fund and the Green Fund.

Swaziland
(2001) Private Reserves. Big Game Parks is a privately owned body which manages three reserves in the country (Mlilwane & Mkhaya Game Reserves, and Hlane Royal National Park, which is held in trust for the Nation by the King). Big Game Parks, thus, contributes to the management of the country’s biodiversity. A few other title deed land (TDL) owners have turned to ecotourism as a business venture. Private reserves and game ranches, however, cover only a small area of Swaziland, and thus their contribution to the conservation and management of Swaziland’s biodiversity is still limited (mainly to larger mammals). However, the area of land dedicated to ecotourism and game farming (and other conservation-oriented activities) is steadily increasing with the result that these TDL areas may play an important role in the future.
(2011) The enabling environment for sustainable enterprises: An “EESE” Assessment

Zambia
(2013) The enabling environment for sustainable enterprises in Zambia

Zimbabwe
(2003) Government departments and NGOs have gone into partnership with the private sector. In such partnership, the private sector finances specific activities. The success of such partnerships has depended on: a demonstration of accountability and transparency by the receiving institution, a commitment to corporate responsibility by the private sector partner, clarity in the deliverables and impact of the project.

Algeria

Egypt
(2008) The Siwa Sustainable Development Initiative, led by the private sector, emphasizes employing local workers, applying traditional systems of building and environmental management and using local materials. In Siwa, EQI’s portfolio of enterprises includes three lodges, a female artisanship initiative, organic farming and production and community art projects. Today, 75 Siwans are employed full-time in EQI enterprises in Siwa, and there are typically 310 income-generating opportunities each month. The case highlights the challenges and opportunities from various programmes to alleviate poverty, improve living conditions and advance the Millennium Development Goals.

Egypt, Libya, Morocco, and Tunisia

Benin
(2014) Engagement du secteur privé. Malgré, l’émergence au Bénin depuis quelques années de plusieurs institutions (entreprises) dans le secteur privé, on observe une faible implication de ses acteurs dans les activités relatives à la conservation de la diversité biologique. Pour celles qui sont impliquées, l’intérêt est surtout porté vers la contribution à la formation de ressources humaines en conservation et en environnement au travers des universités privées. Il faut noter aussi que les exploitants forestiers s’investissent de plus en plus dans la mise en place de plantations d’espèces de reboisement à croissance rapide suite à leur sensibilisation et l’auto-prise de conscience de l’impact de leur activité sur la conservation de la diversité biologique. De plus, des efforts sont faits par les associations et comités villageois de gestion des réserves dans la conservation des ressources. L’état béninois n’étant pas en mesure de s’investir dans tous les domaines, des projets devraient être confiés à ces structures privées. Mais la plupart du temps, on observe que c’est la société civile notamment les organisations non gouvernementales (ONG) qui jouent le rôle du secteur privé dans les discussions relatives à la conservation de la diversité biologique. Cette importance donnée aux ONG a entrainé leur fleurissement ces dix dernières années. Leurs actions sont aussi bien diverses que variées. Certaines d’entre elles s’intéressent à l’écotourisme et à la sensibilisation (cas de l’ONG Eco-Bénin qui coordonne actuellement un réseau d’une dizaine de sites d’écotourisme communautaire autogérés à travers le Bénin et utilise l’écotourisme comme pilier économique du développement des communautés locales, soit dans des régions où les revenus traditionnellement liés à la pêche ou à l’agriculture sont en baisse, soit dans des localités disposant d’un patrimoine naturel et culturel menacé de disparition ou mal exploité). D’autres par contre oeuvrent pour la préservation de l’environnement et la création de réserve naturelle. Les structures telles que CREDI-ONG, BEES, ECO-ECOLO, Nature Tropicale, CEIBA mènent également des actions de création et d’accompagnement, notamment d’associations villageoises de gestion de l’environnement; D’autres encore s’investissent dans l’aménagement participatif de réserve communautaire et la protection d’espèces menacées (Nature tropicale, CerGET ONG, CRGB, etc.). Aussi, des associations locales de développement (AVPN, Jardin botanique de Papatia, de plantes et de la Nature de Porto Novo) existent et continuent à s’investir dans la conservation de la diversité biologique. Les ONG interviennent sur fonds nationaux mis en place par l’état ou les collectivités pour accompagner les actions de conservation au niveau national ou local.

Cote d'Ivoire

Ghana
(2008) The Integrated Tamale Fruit Company—operating in the Savelugu-Nanton District in Ghana’s Northern Region, an area of widespread poverty—cultivates certified organic mangoes for local and export markets. To boost its power in the export market with higher production volumes, the company established a scalable business model that includes local farmers. Instead of acquiring a very large piece of land—physically and financially impractical—the company produces high volumes through an outgrower scheme, which started in 2001 and today includes 1,300 outgrower farmers. Each has a farm of about an acre, with 100 mango trees that supplement the nucleus farm of 160 acres. The company provides an interest-free loan to the outgrowers through farm inputs and technical services, and farmers start paying for the loan from selling mangos only after the trees yield fruit. This arrangement allows the company to reliably source a large volume of quality organic mangoes, and the farmers can enter mango production with long-term income prospects. The nucleus farm’s profits are on track to reach $1 million a year by 2010. The case examines the key challenges of the outgrower scheme and its implications for the company’s business.

Guinea, Liberia

Nigeria
(2007) Private Land Tenure. Issues due to conflict between land tenure systems (especially between state and communal systems), and resource management practices associated with certain land use systems.
(2013) The Central Bank and CEOs of all major financial institutions signed a joint commitment statement. Two Nigerian banks have adopted the Equator Principles: Access Bank PLC (2009) and Aterios Capital (2012). The Nigerian Bankers Committee, with support from the Central Bank, introduced the voluntary Nigeria Sustainable Banking Principles in July 2012, together with Guidance Notes. Sector-specific guidelines have also been developed for three key sectors: oil and gas, renewable energy, and agriculture. The principles apply to all banks, discount houses and development finance institutions. The Central Bank has pledged to provide necessary incentives to institutions taking concrete measures to embed the provisions of these principles and guidelines into their operational, enterprise risk management and other governance frameworks. Reporting requirements with guidelines will also be made available to the industry. Going forward, Nigeria aims to develop lasting local capacity to manage emerging E&S risks and opportunities within banks’ internal operations, as well as in relevant financial-sector government agencies, learning institutions, and service providers.

Sierra Leone, and Togo

Burkina Faso, Cabo Verde
Chad
(2014) Engagement du secteur privé. Malgré, l’émergence au Tchad depuis quelques années de plusieurs institutions (entreprises) dans le secteur privé, on observe une faible implication de ses acteurs dans les activités relatives à la conservation de la diversité biologique. Pour celles qui sont impliquées, l’intérêt est surtout porté sur la contribution à la formation de ressources humaines en conservation et en environnement au travers des universités et les instituts privés. Il faut noter aussi que les associations villageoises en faveur de la protection de l’environnement s’investissent de plus en plus dans les plantations d’espèces de reboisement suite à leur sensibilisation et l’auto-prise de conscience de l’impact de leur activité sur la conservation de la diversité biologique. De plus, des efforts sont faits par les associations et comités villageois de gestion des réserves dans la conservation des ressources naturelles. C’est le cas des Instances Locales d’Orientation et Décision (ILOD) dans la région du Mayo-Kebbi, les volontaires cantonaux du Moyen-Chari, les Comités villageois de Surveillance (CVS) dans la région du Ouaddaï. Selon la Constitution de 1996, révisée en en 2001, délègue une partie de ses prérogatives aux Collectivités Territoriales Décentralisées (CTD) pour la gestion de l’environnement. Il est à remarquer que le plus souvent ce sont la société civile et les organisations non gouvernementales (ONG) qui participent à la mise en oeuvre des politiques, des stratégies, des projets et programmes en matière de conservation et d’utilisation durable de la diversité biologique.
Guinea-Bissau, Mali, Mauritania, Niger, Senegal, and The Gambia

Antigua and Barbuda, Bahamas
Barbados
(2012) The enabling environment for sustainable enterprises in Barbados

Belize
(1998) Privately owned protected areas

Cuba, Dominica, Dominican Republic, Grenada

Guyana
Benefit Sharing Partnership

Haiti, Jamaica, St. Kitts And Nevis, St. Lucia, St. Vincent and Grenadines, Suriname, and Trinidad and Tobago

Argentina
(2003) Annual Awards to be granted by national authorities or by an ad-hoc committee, to recognize those individuals or legal entities that have made outstanding philanthropic and / or sponsorship of activities of biodiversity conservation in the country.

Bolivia
Chile
Public Private Partnership
Timberline Gestion de Recursos Naturales; limited-liability business partnership between Lonko1 and Timberline
Adaptive co-management for conservation of the Llancahue watershed in Southern Chile
privately protected areas, privatization of water utilities, corporate environmental performance

Paraguay

Peru
Law for Private Investment
Enabling Private Cofinancing through Protected Area Administration Contracts

Uruguay

Regional
(2000) Biodiversity and Business in Latin America: Real investment opportunities of all sizes exist in agriculture (including aquaculture), forestry, products sustainably harvested from the wild such as nontimber forest products (NTFPs), and ecotourism.

Brazil
(2010) Various sectors: Agriculture (Moratorium on Soybean from Amazon Deforestation; Responsible Soybean Roundtable (RTRS); Pro-sustainable Food Initiative (IPAS); Gourmet Coffee; Integrated Production in Brazil; Sustainable beef), forest sector (Brazilian Forest Stewardship Council (FSC); Forest Certification Program – IMAFLORA; Natura Certification Program; Tok Stok’s Certified Timber Program; The Pact for the Restoration of the Atlantic Forest; The Murici Pact; The Pact for Forest Valuation and for Ending Deforestation in the Amazon; Sustainable Amazonas Foundation (FAS); Greenpeace Program “Amazon Friendly Town”; Faber-Castell), recycling (Setor Reciclagem; National Institute for Processing Empty Containers (inpEV); ANAP; Corporate Commitment to Recycling (CEMPRE); Waste collectors associations), sustainable tourism (Brazilian Association of Ecotourism and Adventure Tourism Companies (ABETA); Hospitality Institute; Brazilian Network of Mutually Supportive and Community Tourism (TuriSol); Luggage Project), banking sector (Equator Principles; BNDES environmental directives); energy (Climate Protection Pact; Petrobrás), cosmetics (Natura cosmetic company; O Boticário cosmetic company), retails (Wal-Mart), industry (FIEMG – Industry’s contribution to the 2010 Target; Partnership CNI and MMA), corporate sustainability (Brazilian Ecoefficiency Network; environmental sustainability certification; Brazilian Corporate Council for Sustainable Development – CEBDS; Instituto LIFE), environmental awards (Época Climate Change Award; Exame Sustainability Guide; Brazil Environmental Award; Super-Ecology Award; Ford Motor Company Award on Environmental Conservation; Frederico Menezes Veiga Award; José Pedro de Araujo Award; Young Scientist Award; Expressão Ecology Award; Muriqui Award; Atlantic Forest Motivational Award to Municipal Initiatives; Professor Samuel Benchimol Amazon Award; José Márcio Ayres Award to Young Naturalists; FIESP Environmental Merit Award; CREA Goiás Environmental Award; ECO Award; Environmental Brazil Award; von Martius Sustainability Award; Goldman Environment Award; BRAMEX Environment Award; LIF Award (Liberty, Equality, Fraternity) of the France-Brazil Chamber of Commerce; Innovation in Sustainability Award); Private Reserves of the Natural Heritage (RPPN).
(2008) Natura, Votorantim Celulose e Papel. In 2000 Natura, a Brazilian cosmetics company, launched a strategy to use raw material extracted from nature as a platform for its products. In Pará, it contacted three communities—Campo Limpo, Boa Vista and Cotijuba—in 2003 to produce priprioca, a grass whose roots yield a rare, delicate fragrance. Business has grown so much that in 2006 Natura built a new industrial plant to produce soap in the region. Votorantim Celulose e Papel (VCP), a major pulp and paper company embarking on a large forestry expansion in Rio Grande do Sul, devised a business model that included the local community as partners in eucalyptus production. Through VCP’s Forest Savings Account programme, ABN AMRO Real provided farmers the financial resources (backed by a guarantee of purchase of timber by VCP) to plant eucalyptus. VCP provided seedlings and technical assistance, committing to buy the timber after seven years, at a fair price. (2007) Natura’s corporate responsibility matrix. Natura developed the Corporate Responsibility Matrix in 2004 as a tool for managers to help plan their actions towards different sectors of society. It breaks down investments related to corporate responsibility into three categories on the y-axis: fundamentals, which include ethics and transparency; socioeconomic, or the promotion of sustainable development; and environmental, or protection of the environment. On the x-axis, each investment is categorised based on the corresponding group of beneficiaries, such as company personnel, suppliers, consumers, government, and society. In its annual report, Natura reports the overall Corporate Responsibility Matrix for the entire company. The matrix is not just a strategy tool for managers and a way to assess performance, but also a reporting tool for the company.
(2012) National project on integrated public-private actions. LIFE institute developed a certification for biodiversity recognizing progress in business management and sustainability system and social responsibility practices. Business Movement for the Conservation and Sustainable Use of Biodiversity (MEB) has over 60 companies and institutions through a Membership agreement undertaking to fulfill the values, commitments, principles and rules set forth in the Code of Conduct. Brazilian Business Council for Sustainable Development (CEBDS) was founded in 1997 by a coalition of the largest companies that account for 40% of Brazil's GDP. National Confederation of Industry (CNI) concluded a Protocol of Intentions with the Ministry of the Environment in 2011.
(2012) Counting private sector spending in millions of US dollars: 5044.88 (2006), 4,905.14 (2007), 4,934.36 (2008), 4,674.12 (2009), 5,146.89 (2010)
(2012) TEEB for Business: Preliminary Report. Sustainable business: how and why Brazilian businesses incorporate BES in their strategic management: Agriculture and Pulp & Paper, Oil & Gas and Chemicals, Cosmetics and Pharmaceuticals, Mining and Construction, Financial institutions, Retail. Trends and risks associated with BES: Loss of quality, depletion or scarcity of ecosystem services and natural resources, Increased coverage of protected areas, Improved scientific knowledge, Technological innovation, Greater environmental regulation, Energy insecurity, Spread of diseases and exotic species, Climate Change, Pressure from consumers to internalize sustainability criteria. Main opportunities related to BES: Improved reputation, attracting new clients and reaching new niche markets, Opportunities by business sector. Including BES in the strategic management of businesses: Step 1 – Identify the impacts and dependencies of your business on biodiversity and ecosystem services (BES); Step 2 – Assess the business risks and opportunities associated with these impacts and dependencies; Step 3 – Develop BES information systems, set SMART targets, measure and value performance, and report your results; Step 4 – Take action to avoid, minimize and mitigate BES risks, including in kind compensation (“offsets”) where appropriate; Step 5 – Grasp emerging BES business opportunities, such as cost-efficiencies, new products and new markets; Step 6 – Integrate business strategy and actions on BES with wider corporate social responsibility initiatives; Step 7 – Engage with business peers and stakeholders in government, NGOs and civil society to improve BES guidance and policy.
(2002) Instruments for sustainable private sector forestry in Brazil: An analysis of needs, challenges and opportunities for natural forest management and small-scale plantation forestry: Certification; Watershed Protection and Forest Restoration; Communities and Private Companies: Partnerships or Deals?; Fiscal Incentives for Reforestation by Small Producers; Carbon Sequestration and Forests; Ecological Value Added Tax and Private Forest Reserves.
(2001) Market-Based Innovations for Environment Conservation in Brazil: Legal Reserve Tradable Right Scheme. Private Natural Heritage Reserve (Rural territory tax exemption, priority in the analysis to resources to projects at the National Environmental Fund, preferences in credit analysis for agriculture activities). Certified Forest Products Buyers Group funded in April, 2000 with 33 companies, committed: for those who buy native forest products, 50% of its total consumption has to be certified till 2005, and for those who buy reforested timber, 100% of its total consumption has to be certified till till 2005.

Colombia
(2014) Áreas protegidas en predios privados, Alianza estratégica público-privada Naturalmente Colombia, Más de 100 acuerdos públicos – privados – comunitarios incrementando la gobernanza y gobernabilidad en el manejo de los recursos naturales
Incorporación de la biodiversidad en el sector cafetero en Colombia
Business partnership between Nativa (Colombia) and Cosmetic Valley (France)

Ecuador
(2014) La Corporación Nacional de Bosques y Reservas Privadas del Ecuador (CNBRPE)
Private Sources
Rainforest Preservation in Amazonian Ecuador
Fostering Environmentally Sustainable Tourism and Small Business Innovation and Growth in the Galapagos

Costa Rica, El Salvador, Guatemala
Honduras
Co-management
Mexico
Engaging the private sector, greenhouse gas emission trading
Nicaragua, Panama, and Venezuela

Canada
(2010) Environmental Protection Expenditures in the Business Sector: Businesses operating in Canada spent $9.5 billion in 2010 to protect the environment, up 9%from 2008, and the largest share of these expenditures was spent to deal with pollutants. The oil and gas extraction industry spent more on environmental protection than any other industry surveyed, followed by the electric power generation, transmission and distribution industry, accounting for 42% and 12% of the total for 2010 respectively. Of the $4.2 billion in capital expenditures made for environmental protection, the majority was for pollution abatement and control (35%) followed by pollution prevention (26%). Wildlife and habitat protection was $178.8 million in 2010 while $90.3 in 2008. Operating expenditures for environmental protection totaled $5.3 billion in 2010, up 8% from 2008. The majority of these expenditures were directed towards waste management and sewerage services ($1.6 billion) followed by pollution abatement and control processes ($1.2 billion). The oil and gas extraction industry had the highest operating expenditures for environmental protection in 2010, reporting over half a billion in expenditures each for site reclamation and decommissioning and for pollution prevention processes. Wildlife and habitat protection was $50 million in 2010 while $51.8 million in 2008.
(2012) Counting private sector spending in million of dollars: 1,013 (2006), 914 (2007), 810 (2008), 737 (2009), 678 (2010).
(2009) Land Trusts Easements and Covenants: the Lands and Legacies Conservation Partnership between the Nova Scotia government and the Nova Scotia Nature Trust for the acquisition of lands contributing to representation targets for the provincial protected area network; Manitoba Habitat Heritage Corporation and Ducks Unlimited Canada’s Riparian Conservation Agreement Initiative and Conservation Agreements Program facilitating long-term agreements for wetland protection; the Southern Alberta Land Trust Society that works with landowners to protect the land base and agricultural livelihoods associated with cattle ranching from development pressures and to facilitate intergenerational transfer; and, the Edmonton and Area Land Trust, which was created to support natural area conservation within the city and surrounding municipalities. It is estimated that Canadian Land Trusts have 1.3 million hectares of Canada’s natural heritage land under permanent protection across the country with 25 000 active volunteers; the number of land trusts in Canada roughly doubled from 1995 to 2005.
(2007) Suncor: commitment to issuing an annual, externally audited Report on Sustainability. The compliance costs with the Kyoto Protocol were estimated to come to between $0.20 and $0.27 per barrel of oil.
(2007) WWF and Lafarge partnership on biodiversity: the aim of which is to improve its environmental performance and contribute to raising standards in industry. In 2005, this partnership was renewed for a further three years. The first phase of the partnership included commitments and joint work in the following areas to: Reinforce the environmental policy of Lafarge, by implementing and monitoring annually performance indicators and targets (environmental audits, reduction of fossil fuel consumption, waste recovery, emissions control, etc), Combat the greenhouse effect by curtailing emissions of CO2, Develop a strategy for the ecological rehabilitation of quarries, Heighten awareness amongst the widest possible audience on the importance of environmental preservation through local partnerships such as in Kenya, Austria, France and China.
(2004) Integrating Mining and Biodiversity Conservation: Tuktusiuqvialuk National Park, Tailings to Biodiversity Initiative. The lands set aside for a proposed Tuktusiuqvialuk National Park in Canada’s western High Arctic included much of the critical habitat of the endangered Peary caribou herd. Yet a mineral and energy resource assessment found a very high mineral and hydrocarbon potential in many of the areas used by the caribou. The Canadian Nature Federation approached the Mining Association of Canada (MAC) to determine whether mining companies would waive their interest in Bathurst Island in order to protect the caribou. After some discussions with its members, MAC suggested that one part of the eastern side of the island be excluded from the proposed park but agreed to support a moratorium on exploration and development throughout the area until the Peary caribou herd was no longer considered at risk of extinction. The Tailings Management Project of Iron Ore Company of Canada (IOC) demonstrates how operational risk can be converted into opportunity. IOC identified the management of mine tailings as a chance to control risk to biodiversity; improve community relations and interactions with stakeholders; uphold company standards for environmental stewardship and responsibility; ensure compliance, particularly in the event of regulatory review; and anticipate legacy issues in the event of closure.
(2007) Creating markets for environmental goods and services from private land

Azerbaijan
(2014) BP has adopted an ISO 14001-compliant EMS in Azerbaijan. Some 475,9 thousand tons hydrocarbon was combusted in the BP operations in Azerbaijan in 2012 which is approximately 19% less compared with 2011. Also, 5% gas was consumed in 2012 which enabled to the combustion of relatively less overall GHG emissions together with flared gas in 2012. BP is also restoring the vegetation along the South Caucasus pipeline, with measures being implemented to restore the endangered Iris acutiloba plant. Natural habitats around the Sangachal Terminal are also actively being protected. SOCAR has similarly developed a zero waste strategy on associated gas management in the oil and gas sector.

Kazakhstan
(2014) The dynamics of private investments to development of hunting in the period from 2010 to 2013. Positive incentives for biodiversity conservation in the hunting sector are based on the active inclusion in this process of hunting users with assignment of the lands to them for a long term period from 10 to 30 years. Hunters invest their own funds to the development of hunting, including costs of payments to rangers and conducting biological activities. In total, the country has 675 hunting farms with the area of 120.0 million hectares ( 44.2 % of the country ); in 2013 hunting users contributed 1801.6 million tenge ( about $ 12,000,000 ) into the development of hunting farms. The number of hunting farms, their technical infrastructure and maintenance costs, regularly increased during 4 years.
Private Sector Investment

Kyrgyz Republic
Private Resources
(2005) Integrating Mining and Biodiversity Conservation: Community and Business Forum

Switzerland
(2012) Environmental protection expenditures in the business sector 2009
Counting private sector contributions
Best Practices in Sustainable Finance: Swiss Re

Tajikistan

Turkmenistan
Business Involvement

Uzbekistan

Afghanistan, Jordan, Iraq

Lebanon
Private sector land management

Pakistan
(2014) Corporate Social Responsibility. WWF-Pakistan engaged with corporate sector, schools, government and other stakeholders at national level. The organization was able to establish strategic partnerships with its three-fold objective of raising awareness, corporate social responsibility and fundraising. Telenor Pakistan participated in a one-day training session on wilderness living in Dara Jangla, Islamabad. Levis employees, based in Lahore, participated in an interactive talk about recycling, especially that of textile produce, and were taken to Lahore Zoo Safari where they received survival training, planted trees and had an ECO Adventure session. United Bank limited, Crescent Steel, Allied Bank Limited and JS Investment participated in plantation drives and beach cleaning activities in Karachi.
(2014) Green Office Certification. WWF's Green Office is an environmental service for offices– both large and small – in private companies, the public sector and other organizations. With its help, workplaces are able to reduce their burden on the environment, specifically carbon dioxide emissions, achieve savings and slow down climate change. The initiative commenced in Pakistan in 2009. Office premises hold a key position in energy consumption and in sustainable solutions. Green Office motivates office staff to act in an environment friendly way with regard to everyday tasks, and improves environmental awareness and brings cost savings. WWF awards the Green Office designation to offices fulfilling the criteria of the Green Office program. In December 2013, WWF-Pakistan conducted its second annual network meeting for the Green Office programme at Marriott Hotel Karachi. The theme for this year’s event was about eco-efficient buildings and alternate energy sources. The purpose of the meeting was to bring existing companies together on one platform and to give them an insight into making energy efficient buildings, to improve the functionality of the employees within the buildings, to unveil smart energy devices and to share the practical implementation and feasibility of alternate energy in offices. Unilever was honored with the gold award for the maximum reduction in percentage of its carbon footprint amongst the Green Network corporate while Engro Fertilizer and Corporation was presented with a silver award for showing consistent improvement in carbon reduction. Other companies certified include Packages Pvt Ltd, IBA Sukkur, Lotte Chemicals Pakistan, and Mobilink.

Syria, and Yemen

Israel
corporate social responsibility

Oman
(2011) The enabling environment for sustainable enterprises: An “EESE” Assessment

Saudi Arabia
Formal Recognition

Bangladesh
Greening Banks: Highlights of 2012 International Green Credit Forum - Bangladesh

Bhutan
India
(2014) Private and market biodiversity expenditure (2006-2010)
(2014) The watershed programme of India Tobacco Company Limited (ITC) promotes development and local management of water resources by facilitating village-based participation in the planning and execution of watershed projects in eight States across India-Andhra Pradesh, Bihar, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Tamil Nadu and Uttar Pradesh. Adopting a bottom-up participatory approach, with disadvantaged sections as the primary target, ITC works with NGOs as implementation partners to mobilize them to form Water User Groups. ITC's integrated watershed development programme conserves soil and moisture in over 90,000 hectares of land in water-stressed areas. Tata Power's hydroelectric plants are located in the biodiversity-rich Western Ghats of Maharashtra and are almost 100 years old. Tata Power has been actively involved in conservation efforts and in the protection of biodiversity in these catchment areas of six lakes in the Western Ghats of Maval and Mulshi Taluka in Pune District. Tata Power has also been working towards conservation of endangered Mahseer (Tor putitora; http://www.tatapower.com/mediacorner/presslease/press-release-12-july-2011.aspx). Tata Power's Trombay power station has preserved marshes near its facility for flamingos, which migrate in winter to this natural habitat to feed on algae that grow there. The area has been declared as an IBA by the BNHS and Bird Life International. This area has been identified as an important nesting site for many migratory birds such as sandpipers, plovers, gulls and terns apart from having a large population of flamingos. Several other corporates are also getting engaged in promoting biodiversity conservation activities. Widely regarded as the backbone of the Indian economy, the Micro, Small and Medium Enterprises (MSME) sector is highly diverse and heterogeneous in its structure. A major part of the Indian MSME sector is 'local' in its operations and outlook. Yet it impacts the environment and society in its own way. One of the critical aspects of responsible business practices, regulated by National Voluntary Guidelines, is that businesses should not only be responsible but also be seen as being socially, economically and environmentally responsible. While the guidelines, encompassing nine Principles and related Core Elements, identify the areas where responsible practices need to be adopted, the Reporting Framework provides a standard disclosure template that is used by businesses to report on their performance in these areas. The objective of incorporating this framework in the Guidelines is to help businesses reach out to their stakeholders with necessary information and data demonstrating the adoption of the Guidelines (National Voluntary Guidelines-2011-2012 of the Ministry of Corporate Affairs (MoCA), (http://www.mca.gov.in/Ministry/latestnews/National_Voluntary_Guidelines_2011_12jul2011.pdf). Corporate social responsibility (CSR) is way of conducting business, by which corporate entities visibly contribute to the social good. Socially responsible companies do not limit themselves to using resources to engage in activities that increase only their profits. They use CSR to integrate economic, environmental and social objectives with the company's operations and growth. In this context, the GoI has enacted the Companies Act 2013 which makes CSR spend mandatory for every company with a net worth of ` 500 crore or more or turnover of `1000 crore or more or a net profit of ` 5 crore or more during any financial year. Two percent of the average net profits made by the company during every block of 3 years are to be used for CSR activities. Ensuring environmental sustainability has been identified as one of the nine activities to be covered under CSR activities.
Tata Power Ltd, Indian Institute of Management Bangalore (IIMB); Tata Steel and greenhouse gas accounting and reporting
Conserving wetlands through microfinance programs
(2005) Implementing Rio Conventions and Montreal Protocol through partnership initiatives in India
Do Stock Markets Penalise Environment-Unfriendly Behaviour? Evidence from India

Maldives

Nepal
A cooperative’s restoration measures

Sri Lanka
Role of Private Sector
Holcim – IUCN Agreement on artificial reefs used to improve marine environment
Human-elephant conflict mitigation through insurance scheme

Armenia
Incentives for private sector
Belarus, Russian Federation

Albania

Bulgaria
(2014) Private/market funding (euro): 29,250 (2012), 26,956 (2013)

Bosnia-Herzegovina

Croatia
(2000) Forestry Advisory Service (FAS)

Georgia
Bank of Georgia

Macedonia, Moldova, Montenegro

Poland
Private Sector Engagement

Romania, Serbia, Ukraine

France
(2014) Corporate Social Responsibility. Decree No. 2012-557 of 24 April 2012 on transparency requirements for corporate social and environmental issues. This decree introduced new mandatory requirements of annual non-financial reporting, including biodiversity ("e. Protection of biodiversity - measures to preserve or enhance biodiversity")· The evaluation report by Orée on the implementation of the decree shows that 95% of companies have filled this indicator (57% qualitatively). Corrective actions are also proposed.
(2014) Private and market biodiversity expenditure (2007-2011)
(2012) Counting private sector financing
(2007) Lafarge’s Sustainability Report, Driving Quarry Restoration
(2005) public private partnerships

European Union
(2014) Launch of the second phase of the EU Business and Biodiversity Platform, and the setting up — with the European Investment Bank — of a Natural Capital Financing Facility to provide loans and equity instruments for projects, including climate adaptation projects, that promote the preservation of natural capital and which are revenue generating or cost-saving.
(2014) Natural Capital Financing Facility to support private investments in biodiversity-related projects, the EU B@B platform
(2011) Roadmap to a Resource Efficient Europe

Australia
(2014) National Landscapes – Conservation partnerships with the tourism industry. Bush Blitz partnership between the Australian Government, BHP Billiton Limited Sustainable Communities and the Earthwatch Institute (Australia) to discover and document biodiversity across Australia’s national system of conservation reserves. Bush Blitz commenced in 2009 with a total budget of AU$22 million over eight years. It has already undertaken snapshot biodiversity surveys on more than 70 conservation reserves covering over three million hectares, and discovered over 700 new and undescribed species and added more than 24 000 new species records, covering almost 9 900 species.
(2014) Australian Business and Biodiversity Initiative (ABBI) and Integration of environmental considerations by the private sector. A recent survey by KPMG (2013) found that over three quarters of the top 100 Australian companies by revenue now report on corporate responsibility (82 per cent) compared to 57 per cent in 2011. The report suggests that these high rates are indicative of a shift in the private sector to view corporate responsibility reporting as standard business practice.
Role of Private Sector and Case Studies
Enabling the Market: Incentives for Biodiversity in the Rangelands
(2001) Constraints on Private Conservation of Biodiversity (2001)
(2001) Harnessing Private Sector Conservation of Biodiversity (2001)
Integrating Mining and Biodiversity Conservation: Arid Recovery
Best Practices in Sustainable Finance - Westpac Banking Corporation

New Zealand
(2015) The Sustainable Business Council is a CEO-led group of companies that play a leading role in creating a sustainable future for business, society, and the environment. Through the activities of groups such as the Sustainable Business Council, businesses become more aware of opportunities associated with ‘greening’ the economy. There has been growth in effort in the business, tourism, and research sectors at mainstreaming biodiversity and ecosystem services, and balancing values across environmental, socio-cultural, and economic drivers to improve social wellbeing and ensure sustainable practices. An example of business balancing these values is the Sustainable Dairying: Water Accord. New Zealand’s largest dairy company, Fonterra, has developed this Accord, under which the dairy cooperative members are required to protect riparian margins from stock and reduce effluent flow into waterways. Compliance under the previous accord (Dairying and Clean Streams Accord) was found to be variable in 2010/11. Through a partnership agreement, the Department of Conservation and Fonterra are working together with the local community to improve the natural habitats of five key waterways in significant dairying regions around New Zealand to make a difference to the water quality in five sensitive catchments: Kaipara Harbour, Firth of Thames, Waikato Peat Lakes, Lake Ellesmere (Te Waihora), and Awarua-Waituna (www.doc.govt.nz/getting-involved/partnerships-anddonations/partnerships/fonterra-partnership/).
Conservation on Private Lands
Protection of Natural Heritage on Private Land
grant funds to encourage biodiversity protection on private land, private environmental expenditure

Republic of Korea
(2014) Samsung Electronics announced the establishment of a course of action for the business plan, undertook aquatic ecosystem conservation activity and biodiversity conservation activity by minimizing the resource consumption. Eco-friendly products by Amore Pacific and the issuance of biodiversity conservation company certificate. Restoration project of Triton marine forest by POSCO. Protection of endangered species by S-OIL. Conservation of freshwater ecosystem by K-water.
Private Sector Efforts
(2013) Greening Banks: Highlights of 2012 International Green Credit Forum - Korea
Corporate environmental management

Cook Islands

Fiji
Locally Managed Marine Areas Network

Indonesia
Companies
(2013) Greening Banks: Highlights of 2012 International Green Credit Forum - Indonesia

Kiribati, Marshall Islands

Micronesia
Ecological Sustainable Industry

Nauru, Niue, Palau, Papua New Guinea

Philippines
A reforestation and community livelihood private sector initiative

Samoa

Solomon Islands
Private Sources

Timor Leste, Tonga, Tuvalu, and Vanuatu

General
Bullitt Foundation Ecosystem Service Market Development: The Role and Opportunity for Finance, March 2010
Business for Social Responsibility (BSR) Environmental Markets: Opportunities and Risks for Business (2006)
CCIF A New Approach to Financing Protected Areas - Third Party
EarthWatch Institute 1. The Handbook for Corporate Action: Biodiversity Resources, August 2002 edition
2. Business & Biodiversity: The Handbook for Corporate Action
Forest Trends Why Invest in Ecosystem Services? A Business Brief from Forest Trends
EBI Integrating Biodiversity Conservation into Oil & Gas Development
GRI Sustainability Reporting Guidelines 2002
ICMM Good Practice Guidance for Mining and Biodiversity
IIED Conservation Enterprise: What Works, Where and for Whom? (2011)
Insight Investment Management Limited Protecting shareholder and natural value - Biodiversity risk management: towards best practice for extractive and utility companies
IUCN 1. Aligning biodiversity compensation and REDD+: a primer on integrating private sector conservation financing schemes in the tropics and sub-tropics, November 2013
2. Business and Biodiversity: A Guide for the Private Sector (1997)
3. Markets for Ecosystem Services – New Challenges and Opportunities for Business and the Environment: A Perspective
4. Integrating Mining and Biodiversity Conservation: Case studies from around the world
Milken Institute Financing Global Environmental Futures: Using Financial Markets and Instruments to Advance Environmental Goals
ODI 1. The business side of sustainable forest management: Small and medium forest enterprise development for poverty reduction (2006)
2. Mapping support to social enterprises in emerging markets (2013)
OECD 1. The Insurance Industry and the Conversation of Biodiversity: An Analysis of the Perspects for Market Creation (2002)
2. Background paper for the OECD workshop on multilateral environmental agreements and private investments: Promoting business contribution to addressing global environmental problems (2005)
3. Economic incentives and increasing business involvement in the conservation of fauna and flora (2005)
4. The mutual benefits of NGO-business partnerships
5. What are the gains - for business and others - from private investment that contributes to MEA implementation?
6. Corporate social responsibility – a step towards stronger involvement of business in MEA implementation?
7. Foreign Direct Investment and the Environment: Lessons from the Mining Sector
8. Environmental Benefits of Foreign Direct Investment: a Literature Review (2002)
9. Corporate social responsibility – a step towards stronger involvement of business in MEA implementation?
10. Corporate Responsibility: Results of a fact-finding mission on private initiatives, February 2001
11. Multilateral Environmental Agreements and Private Investment: Workshop Proceedings and Key Messages (2005)
12. Private sector involvement in implementing multilateral environmental agreements (MEAs): A closer look at the natural products industry
13. MEA-based Markets for Ecosystem Services
14. Business Contribution to Addressing Global Environmental Problems
15. How can private sector help to implement an international convention to conserve wetlands?
16. How can intergovernmental organisations promote private investment that supports MEA implementation? The example of the United Nations Environment Programme (UNEP)
RSPB Handbook for developing and implementing pro-biodiversity business projects
UNDP 1. Local Business for Global Biodiversity Conservation: Improving the Design of Small Business Development Strategies in Biodiversity Projects
2. Privatization and Renationalization: What Went Wrong in Bolivia's Water Sector? (2009)
3. Can Privatization and Commercialization of Public Services Help Achieve the MDGs? An Assessment (2006)
UNEP 1. Fiduciary responsibility - institutional investment, July 2009
2. Finance, Environment and Sustainable Development: An Expert Seminar on Corporate Responsibility and Capital Markets Managing Qualitative Risk Issues (2003)
3. CEO Briefing: Finance for Carbon Solutions (2005)
4. Climate Change & The Financial Services Industry: Module 1 – Threats and Opportunities, Module 2 – A Blueprint For Action (2002)
5. Opportunities and Challenges for Business and Industry: A Report of the Millennium Ecosystem Assessment
WBCSD Sustainability Pays Off: An analysis about the stock exchange performance of members of the World Business Council for Sustainable Development (WBCSD) (2004)
World Bank How Public-Private Partnerships Can Aid Conservation
WWF Conservation Finance: Moving beyond donor funding toward an investor-driven approach

  • United Nations
  • United Nations Environment Programme