The document discusses corporate ecosystem valuation (CEV) from a business perspective. It provides definitions of different approaches to valuing ecosystem services, such as those used by TEEB, DEFRA, WBCSD, and NGOs. It examines where businesses currently stand with respect to biodiversity and ecosystem services, noting they recognize sustainability is important but these concepts can be difficult for business leaders to understand. The document presents examples from Heineken of how they are incorporating ecosystem considerations into their business and provides recommendations on how to better communicate these issues to businesses in a way that emphasizes relevance, materiality, and simplicity.

1. Corporate Ecosystem Valuation
A Business Perspective
Richard Heathcote
Sustainable Development Manager, Heineken UK

2. Contents
• CEV?
• Where is business?
• Some examples
• How to take forwards?
2

3. CEV?
3

4. What is CEV?
• TEEB uses BES
• DEFRA uses NEA
• RCs use VNN
• WBCSD uses CEV
• NGOs use 5Cs
HELP!
• Ecosystem Services
• Five Capitals model

5. Ecosystem Services – what is an
Ecosystem?
Yesterday “Ecosystem” delivered 15,100,000 results
So that’s millions of different definitions and uses

6. Ecosystem Services – what is an
Ecosystem?

7. Ecosystem Services – what is an
Ecosystem?

8. Ecosystem Services – what is an
Ecosystem?

9. Ecosystem Services – what is an
Ecosystem?

10. Ecosystem Services – what is an
Ecosystem?

11. Ecosystem Services – what is an
Ecosystem?

12. Ecosystem Services – what is an
Ecosystem?

13. Ecosystem Services – what is an
Ecosystem?

14. Ecosystem Services
Millenium Ecosystem Assessment

15. Five Capitals

16. Five Capitals

17. WHERE IS BUSINESS?

18. Where is Business? A personal view.
• Generally recognises that this thing called Sustainability is important
• Has decided to do something about it - so we all have “Sustainability
Reports” and associated action plans
1. Carbon:
now understood: it’s easy; reducing carbon often means reducing
energy, which reduces £££. This is GOOD.
2. Water:
coming up the agenda quickly: is perhaps an even more clear and
present danger than carbon. Certainly in agri-food related companies.
3. Biodiversity and Ecosystem Services? I spoke to the CEO and he said
“er ... what is that ... bored now, move on. Now, where’s my ROI, EPS,
and EBITDA, you know, simple stuff I can understand easily!”

19. Biodiversity
19
Sourec: WWF Living Plant Index, 2010

20. So what are Business’ requirements
• Relevant MAYBE ...

21. So what are Business’ requirements
YES, BUT WHY?
CO2
• Tangible

22. So what are Business’ requirements
YES
• Material

23. So what are Business’ requirements
• Risk Understood ALWAYS

24. So what are Business’ requirements
ABSOLUTELY!
• Simplicity

25. SOME EXAMPLES?

26. Ecosystem Services Project
“What are we seeking to achieve?
The markets component of the Ecosystem Services Project will define
a range of ecosystem services that can be bought and sold through a
new currency/commodity such as a carbon, water quality, salinity or
biodiversity credit.
Once commodities for ecosystem services are defined we will actively
work with catchment communities to find buyers who are willing to
invest in environmental services. The relationship between
ecosystem services, environmental commodities and funding
mechanisms is depicted in the diagram below.”
Q. What happens when the markets begin
futures trading and the price falls?

27. Heineken
• World’s 3rd largest brewer
• > 70 countries with Heineken breweries
• > 70,000 direct employees and their families
• > 20 Olympic sized swimming pools of beer per day
• > €15,000,000,000 turnover
And we’re 1/3rd the size of the largest!

28. A new approach Positively IMPACT the role
EMPOWER IMPROVE thethe
Continuouslyour Journey of beer
Enabling our people and
in society
communities in which of operate
environmental impact we our brands
and business
We have defined 5 Key enablers that will
• In 2010, double,of markets to long-term
be fundamental to meeting20 million, a
By 2015, 100% to EUR out have the
Our journey is summarised by ambition: for the Heineken direct help
• By 2020, reduce a third party to and play
partnership with specific Africa
funding
or part in reducing alcohol 1 fossil fuels
Foundation, enabling EUR related harm
indirect CO2 emissions from million
Brewing investment per year thereafter
• in our breweries to 6.4 kg CO2/hl all
In 2010, introduce incentives for
• By 2015, include a culturally appropriate
a Better Future senior management on sustainability
• Ensure access tospecific waterbasic
• By 2020, reduce pre-defined,
responsibility message on all brands
targets
healthcare for 100% of employees 3.7
consumption in our breweries to and
• dependants
Continue 100% adherence to rules on
• hl/hl 2010, every market to have three
From
Responsible Commercial
year sustainability plan
• By 2020 achieve 60% local sourcing of
Communication
• Starting 2010, 100% of all replacement
Our long-term ambition is To be the raw materials in Africa technology
• By 2015 100% of green
fridges based on markets to produce
World’s Greenest Brewer • Continue 100% adherence(20 rules on
local sustainability reports to in 2010)
• Aim for a accident and incident-free
alcohol at work
• By 2020 aim for water neutrality of work
environment water-stressed areas
breweries in
• Renewed Supplier Code based on new
• Partner with industry to address issues
approach
• Implement reduce and self employee
• Continuallyand driving, new regulation
of drinking audit a track the CO2
and non-commercial alcohol
rights policy
• footprint oflevel brands throughout the
Executive our Governance model
Improve Empower Impact value chain
We have built our • By 2020mapindustry to ensure effective
Partner with the economic impact of our
programmes around Continuously improve Empower our Positively impact • business on developing markets CO2
self2020, develop the concept of
By regulation
the environmental people and the the role of beer neutral brewery and implement in at
three strategic least three sites
impact of our brands communities in society
imperatives
and business in which we operate
We have grouped our
23 programmes into 6
Green Green Engaging Heineken Responsible Partnerships
core initiatives Employees Cares Consumption for Progress
Brewer Commerce
Governance, Senior management incentives, Reporting & transparency,
Supplier code, Communication & engagement

29. In an Ecosystem Service context?
Fermentation: the
brewer’s ecosystem Pure water for beer
Use of by-products
By product
processing
Treatment of
effluent
Logistics
Pure water for beer
Barley, apple, hop
production Thrown away packs
Alcohol awareness
Responsible drinking

30. Of Practical Use?

31. HOW TO TAKE FOWARDS?

32. To take forwards
• Simplify the message
• Align at the top: IUCN, WBCSD and in UK across all Government
depts.
• Make it clear how the different interpretations link together
• Build consensus and capacity
• Ensure that in all communications “it” has
– Relevancy
– Materiality
– Tangibility
– Simplicity
– Risks
• And all in business language

33. TEEB: Key Action Points for BUSINESS
1. Identify the impacts and dependencies of your business on
biodiversity and ecosystem services (BES)
2. Assess the business risks and opportunities associated with these
impacts and dependencies
3. Develop BES information systems, set SMART targets, measure and
value performance, and report your results
4. Take action to avoid, minimize and mitigate BES risks, including in-
kind compensation (‘offsets’) where appropriate
5. Grasp emerging BES business opportunities, such as cost-efficiencies,
new products and new markets
6. Integrate business strategy and actions on BES with wider corporate
social responsibility initiatives
7. Engage with business peers and stakeholders in government, NGOs
and civil society to improve BES guidance and policy

34. Thank You