Business Cases for Biodiversity
More permanent measures are those that simultaneously make a direct contribution to a company’s success while contributing to the conservation of biological diversity. In such cases a “business case for sustainability” or, more specifically, a “business case for biodiversity” is referred to.
A business case for biodiversity can be achieved through targeted, voluntary biodiversity conservation measures that go beyond the legal requirements, and work to strengthen a company’s competitive advantage. This is often aided by intelligently and efficiently complying with existing government regulations, such as wastewater treatment, which has positive effects on biodiversity.
The success of a corporate biodiversity management is linked to changes in one or more success-related variables called business case drivers. Corporate biodiversity management systems can influence the following drivers:
Costs
Approaches to cost cutting can be found, above all, in site maintenance extensification, in the reduction of energy and resource use, and in the reduction of emissions and waste that are subject to charges. There are a number of environmental cost accounting methods that can make a valuable contribution to identifying such opportunities. In addition, costs can be reduced by positively changing intangible aspects, such as work morale.
Best Practice Examples: HeidelbergCement – Driver mix
Biodiversity management at HeidelbergCement has a combination of drivers. To ensure that they are able to continue mining raw materials, the company is committed to active stakeholder dialogue. Through efficient biodiversity management and an open dialogue with conservation agencies, NGOs and neighbouring communities about the standards the company applies, HeidelbergCement has been able to save costs (normally incurred by expensive cultivation efforts and long approval processes) and enhance its reputation.
Best Practice Examples: Axel Springer – Environmental ground care protects biodiversity and lowers maintenance costs
Axel Springer showed that economics and ecology are not mutually exclusive when they redesigned the company grounds at their printing facility in Ahrensburg. An award-winning renaturation programme lowered the maintenance costs while increasing the ecological value of the grounds.
Axel Springer AG
Best Practice Examples: Der Grüne Punkt - Duales System Deutschland - Agenda for sustainable packaging
DSD is concerned about the packaging life cycle and is cooperating with many manufacturers to develop a way to keep the packaging materials even longer in the business cycle (cradle-to-cradle). With the company’s Environmental Success Report, DSD has been able to collect information on its environmental impact, as well as gather specific indicators on the further development of packaging recycling. DSD has joined forces with selected partners from the retailing, filling and package manufacturing sectors to set up the “Sustainable Packaging Agenda” pilot project.
Der Grüne Punkt – Duales System Deutschland GmbH (DSD)
Sales and Price
An increase in turnover is possible when buyers recognise an increase in value for themselves or for something important to them. Depending on the market, such an increase in value can be achieved through ecological or biodiversity-related product differentiation. Possible methods include product and production innovations as well as brand differentiation.
Best Practice Examples: Saraya Co. Ltd. - Adding value with “Cause-related marketing”
Saraya, a Japanese detergent producer, shows that differentiation is possible by creating additional social value. With the sale of their Yashinomi washing agents, the company raises awareness and consumer-driven support for Saraya's active environmental policy and their investment in rainforest conservation and reparation projects.
Best Practice Examples: travel-to-nature – Biodiversity as a magnet for new customers
An example for the integration of biodiversity into a business model is travel-to-nature. This CSR certified travel organisation is specialised in exotic nature travel programmes. Additionally, it promotes contact between tourists and the native people. Such meetings help the local population to appreciate biodiversity and its conservation.
travel-to-nature
Best Practice Examples: HiPP GmbH & Co. KG – The added value of ecological baby food
HiPP, a producer of baby food, is committed to using raw materials from organic farms. This leads to a product-related increase in consumer value that is rewarded by customer and brand loyalty.
Risk mitigation
Corporate biodiversity management can be part of business risk management. This includes ensuring legal certainty, implementing anticipatory management of the internal and external business environment and using sustainable capital procurement methods. Examples include securing long-term access to raw materials in the mining industry and preserving necessary ecosystem services, such as drinking water supplies or the protection of pharmaceutically active plants. Alongside such objective risks, there are also social risks, such as community protests. Risk mitigation can also be considered an economic driver of biodiversity management.
Best Practice Examples: Precious Woods Holding – Reputation through FSC practices and employee training
Precious Woods harvests tropical wood in Gabon and South America. To maintain its reputation, the company conducts its business in full compliance with FSC rules and reforests abandoned pastures. Precious Woods also invests in training its employees, who are mainly from the surrounding region.
Precious Woods
Best Practice Examples: Oak Valley Estate – Sustainable use and maintenance of landscapes
The Oak Valley Estate cultivates wine, fruits and greenhouse flowers in the Fynbos area of South Africa. These mountains are prone to continuous invasion by alien plant species, which may use up to 50% of the potential available water supply. By preventing these plants from spreading with an annual eradication programme, Oak Valley Estate contributes to biodiversity conservation and sustainable business development.
Oak Valley Wines
Best Practice Examples: Mars Inc. – Sustainable cultivation as a condition of growth
The cocoa tree is a sensitive plant that only grows in tropical undergrowth. It needs pollinating insects and trees that supply shade and nutrients as well as retain water in the soil. In order to secure an adequate, long term supply of cocoa, Mars has set itself the goal of sourcing 100% of its cocoa from sustainable cultivation.
Reputation and Brand Value
Nature and nature conservation are important to most people. This can be used to promote a company’s reputation and brand. One way to address this common interest is to develop a marketing campaign including biodiversity. In order to ensure that these efforts remain credible, there should be responsible ecological, social and legal activities supporting the communication campaign. Otherwise the campaign may be recognised as “greenwashing”, which would damage the company’s reputation.
Best Practice Examples: Werner & Mertz GmbH – Reputation through "Frosch protects frogs"
The Werner & Mertz brand Frosch (frog) makes ecological and environmentally friendly household cleaners. To strengthen their product philosophy, the company is involved in the renaturation of river meadows to actively support the local frog population and the natural resettlement of frogs in a number of places in Europe. As frogs are an indicator of high water quality, the company is com-bining reputation enhancement with practical conservation activities.
Best Practice Examples: Precious Woods Holding – Reputation through FSC practices and employee training
Precious Woods harvests tropical wood in Gabon and South America. To maintain its reputation, the company conducts its business in full compliance with FSC rules and reforests abandoned pastures. Precious Woods also invests in training its employees, who are mainly from the surrounding region.
Precious Woods
Best Practice Examples: oekom verlag – Ecology as a part of a brand name
Oekom has specialised in publishing works on the environment and sustainability. In a move to strengthen the company’s philosophy on ecology it exclusively uses recycled and FSC certified paper, purchases green power and organic farm food catering services for its employees, and is environmentally conscious in its business travel. These efforts are all part of an authentic concern about preserving the environment, which, in turn, improves the company's reputation company.
Innovation
Innovations are also important drivers of business cases for biodiversity. Examples can be found in the pharmaceutical or cosmetic industries, where discoveries of medicinal and natural care substances create new possibilities to increase sales or differentiate products. In the service sector, integrating biodiversity concepts into existing offerings creates similar opportunities. Nature also provides ideas for the development of innovative technology products (bionics).
Best Practice Examples: VW Leasing GmbH – New mobility concepts made
Three out of five new vehicles in Germany are fleet vehicles. VW Leasing GmbH, together with the Nature and Biodiversity Conservation Union (NABU), has helped its major customers directly combine cost cutting with climate protection and species conservation. “Fleet Competence eCo2” bundles extremely fuel efficient vehicles and fuel efficiency training with the financing of selected projects – such as the renaturation of drained wetlands.
Business models
A fundamental driver of a business case for biodiversity is the development of new business models. By building on the conservation of biodiversity, a value proposition for customers can be developed. The customers’ resulting willingness to pay ensures the economic viability of the company as well as the conservation of biological diversity. Examples include zoos or travel agencies specialising in nature trips.
Best Practice Examples: TUI – Environmentally conscientious travellers participate in volunteer vacations
The emotional character of biodiversity offers a great opportunity for businesses. For example, in the i-to-i trips offered by TUI, guests wanting to combine travel with a commitment to the environment or social issues can participate in volunteer trips and become actively involved in wildlife conservation projects protecting turtles or elephants.
Best Practice Examples: travel-to-nature – Biodiversity as a magnet for new customers
An example for the integration of biodiversity into a business model is travel-to-nature. This CSR certified travel organisation is specialised in exotic nature travel programmes. Additionally, it promotes contact between tourists and the native people. Such meetings help the local population to appreciate biodiversity and its conservation.
travel-to-nature
Best Practice Examples: Der Grüne Punkt - Duales System Deutschland - Environmental certificate for every Customer
DSD provides its customers with an Environmental Success Report, in which the results and savings based on packaging recycling are calculated and laid out. The calculations contained in these reports are verified and confirmed by an independent institute. Since 2007, DSD has been the first system operator to certify for its 500 biggest customers how much CO2 they have saved by having their packages recycled. Starting in 2008, DSD began specifying this amount for all its customers.
Der Grüne Punkt – Duales System Deutschland GmbH (DSD)
