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NEW TEEB FOR BUSINESS COALITION STUDY FOCUSES ON ORGANISATIONAL CHANGE FOR NATURAL CAPITAL MANAGEMENT

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London, 21 March 2013 - The TEEB for Business Coalition released a new study today which describes the business motivations and model of organisational change for natural capital management.

The Report, "Organisational Change for Natural Capital Management: Strategy and Implementation" was commissioned by the TEEB for Business Coalition to explore a model for organisational change. Its goal was to assess business practices at leading companies that were implementing behavioural and organisational change for natural capital management. The study is based on data collected from 26 pioneering companies (60% of them with $10 Billion+ revenues each) across nine industry sectors.

Businesses rely on natural capital - resources and ecosystems that provide critical provisioning services (e.g. water and food) and regulatory services (e.g. climate regulation, water purification and flood management). For businesses to be viable in the long term, the natural capital upon which they depend needs to be maintained, yet the world is currently experiencing an unprecedented depletion of natural capital. The main reason for this is the economic invisibility of most of nature’s services, and their resulting exclusion from most policy and business decision making. Natural Capital Management (NCM) is about understanding these environmental externalities and including them in business decision making.

The study headline findings are:-

  • A small group of pioneering companies, who recognise the growing business case for NCM, are moving NCM forward and expect to build it deeply into their business within the next 3 years.
  • Their rationale is that they will be much better positioned than other companies to manage and thrive in a resource-constrained world that is already here and will hit business hard in 3-5 years.
  • Delaying the measurement and management of natural capital carries a significant business risk for companies on availability of key raw materials and maintaining competitive advantage.
  • In particular availability of freshwater, renewable energy, climate regulation, fibre and food were identified as the most important natural capital risks in the next 3 -5 years.
  • Current barriers to change for business on NCM are at the macro-level (e.g. lack of government regulation and customer demand) and organisationally. In particular challenges at the organisational level include establishing the relevance of NCM to the business and a lack of harmonised methods to measure, prioritise and integrate natural capital into business decision-making.
  • NCM is a business innovation that changes business processes, practices, systems and strategies. It is therefore a major driver of organisational change.


Dr. Dorothy Maxwell, Director of the TEEB for Business Coalition states, “This study provides real life intelligence from 26 businesses that supports the growing business case for managing natural capital.”

Dr. Ram Nidumolu, CEO, Innovastat who conducted the study comments, “The study highlights the activities, barriers and challenges business face in natural capital management. The data concludes that measurement is the most clear-cut challenge company’s face as a barrier to development.”

Pavan Sukhdev, Chair of the Advisory Board of TEEB for Business Coalition says “This study identifies the absence of measurement of natural capital externalities as the most significant barrier in the road from recognition through evaluation to adoption and leadership in natural capital management. It lays the grounds for identifying the largest externalities of business as a first step towards their recognition and management.”

 
 
About the TEEB for Business Coalition – www.naturalcapitalcoalition.org
Launched in November 2012, The TEEB for Business Coalition is a global, multi stakeholder platform formed to develop and support the uptake of natural capital accounting in business decisionmaking.
The vision of the TEEB for Business Coalition is to support a transformative shift in corporate behaviour to preserve and enhance rather than deplete natural capital. Made up of global leaders from business, policy, practitioners and NGOs, The Coalition is the business application of G8 and United Nations Environment Programme supported TEEB (The Economics of Ecosystems and Biodiversity) programme. TEEB provides a compelling economic case for the conservation of natural capital and is the cornerstone of current Green Economy policy. The Coalition founding organisations and supporters include the World Business Council for Sustainable Development (WBCSD), The
Institute of Chartered Accountants in England and Wales (ICAEW), H.R.H. The Prince of Wales’s Accounting for Sustainability Project, Global Reporting Initiative, Corporate Eco Forum, Business for Social Responsibility, International Federation of Accountants, Conservation International, International Union for Conservation of Nature (IUCN), WWF and Global Initiatives. From international and government, supporters include the United Nations Environment Programme, the International Finance Corporation and the World Bank. From business supporters include Puma, Deutsche Bank, FMO Dutch Development Bank, Deloitte, Ernst & Young, International Federation of
Accountants (IFAC) and Chartered Institute of Management Accountants (CIMA).

About Innovastat - www.innovastrat.com
Innovastrat is a California-based high-end advisory and research services firm that provides sustainability strategy and innovation services to the Global 500 and other companies. It has created important frameworks and best practices for sustainable business that have been featured on the cover of the Harvard Business Review, the Stanford Social Innovation Review, and other business publications. Innovastrat’s clients have included several Fortune 100 companies that have integrated sustainability deeply into their business. Innovastrat also publishes a monthly summary of corporate sustainability research, best practices, and trends that is read by hundreds of business executives at 80+ Global 500 companies.

For more information, see www.innovastrat.com or contact ram@innovastrat.com.

Media Contact: Charlotte Masiello-Riome, Senior Communications Strategy Advisor
communications@teebforbusiness.org
 

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We have rebranded to the Natural Capital Coalition from Q1 2014