The TEEB for Business Coalition is a private sector initiative established in late 2012 which aims to build a global base of organisations committed to incorporating natural capital accounting into their operations. It has published the findings of two research projects which are intended to help identify and address barriers which have prevented private-sector organisations being more engaged with environmental management questions.
- Natural Capital at Risk – Top 100 Environmental Externalities of Business – This identifies the priority business sectors and world regions with the highest environmental externality costs in order to clarify the financial risk and opportunity this presents to business and investors. The report, authored by Trucost, quantifies environmental externalities such as damages from climate change, pollution, land conversion and depletion of natural resources, across business sectors and at a regional level. It demonstrates that the profits of high impact business sectors would be wiped out if the costs of environmental damage and unsustainable natural resource use are accounted for. This report highlights the urgent need for businesses to manage natural capital assets and reduce liabilities. Businesses and investors can take account of natural capital impacts in decision making to manage risk and gain competitive advantage.
- Seachange – Organisational Change for Natural Capital Management – reports on the outcome of a study to test a model of organizational change and provide practical guidance to companies and business leaders regarding natural capital/biodiversity and ecosystems services (BES) management. Natural capital management (NCM) is about the sustainable management of a company’s demand for natural resources and
other ecosystems services, as well as the value chain’s impacts on their future supply. NCM includes managing impacts on third parties and public goods, i.e. externalities, which business have often not recognized. The aim of NCM is to provide the mechanisms for corporations to identify barriers and challenges to improving their environmental performance, providing mechanisms to account and reprot more completely, and build new models and practice for the emerging business transition. The report is based on data collected from 26 early adopter companies (60% of them with $10 Billion+ revenues each) across several industry sectors this provides real life evidence on the drivers and barriers for natural capital management. The report highlights how these pioneering companies are moving forward aggressively with NCM and expect to build it deeply into their business within the next 3 years. It argues that they will be much better positioned than other companies to prepare for and thrive in an increasingly resource-constrained world. The test model is a strategic action plan designed to overcome four key barriers to change: relevance, measurement, priority, and integration. The action plan consists of four key stages that can be sequenced or pursued simultaneously: recognition, evaluation, adoption, and leadership.