Today we face the challenge of building biodiversity business. There is a need to develop new business models and market mechanisms for biodiversity conservation, while also raising awareness and persuading the public and policy-makers that biodiversity can be conserved on a commercial basis. In this context the present paper is analyzing the arise of a new economic concept ‘business biodiversity’, focusing on the strategic importance of biodiversity for business and also presenting some business biodiversity models which have already began to have success in the global economy

Barna, Cristina

Munich Personal RePEc Archive

MPRA
Munich Personal RePEc Archive
Re-thinking on the role of business in
biodiversity conservation
Cristina Barna
Spiru Haret University, Faculty of Marketing and International
Business, Romania, Bucharest
December 2008
Online at http://mpra.ub.uni-muenchen.de/12596/
MPRA Paper No. 12596, posted 9. January 2009 10:39 UTC
 1
Ph. D. Cristina Barna 
Spiru Haret University 
Romania 
 
 
Re-thinking on the role of business in biodiversity conservation 
 
 
 Abstract 
 
 Today we face the challenge of building biodiversity business. There is a need to 
develop new business models and market mechanisms for biodiversity conservation, 
while also raising awareness and persuading the public and policy-makers that 
biodiversity can be conserved on a commercial basis. In this context the present paper 
is analyzing the arise of a new economic concept ‘business biodiversity’, focusing on 
the strategic importance of biodiversity for business and also presenting some 
business biodiversity models which have already began to have success in the global 
economy. 
 
 Key-words: sustainable development, biodiversity, business biodiversity, 
economics of biodiversity  
 
 JEL Classification: Q57 
 
 
1. The strategic importance of biodiversity for business 
 
  Biodiversity is defined as ‘the variability among living organisms from all 
sources including, inter alia, terrestrial, marine and other aquatic ecosystems and the 
ecological complexes of which they are part; this includes diversity within species, 
between species and of ecosystems.’1  
 First of all, biodiversity is of strategic importance for business sector, because is 
providing the raw materials and natural assets for many enterprises. Of course, this is 
most obvious in cases where profits depend directly on healthy ecosystems, such as 
ecotourism, which is expanding at a rate of 20-30% annually, compared with 9% for 
tourism sector as a whole2. But we also must consider positive effects as biological 
productivity in agriculture, forestry, fisheries, pharmaceuticals, food processing etc. 
At a fundamental level, all economies and all businesses depend, directly or 
indirectly, on biodiversity and its component resources. Biodiversity is similarly 
recognized in the Millenium Ecosystem Assessment as the foundation of all 
ecosystem services, which in turn support and protect economic activity and property. 
 Let’s do not forget the indirect benefits in terms of ecological, aesthetical and 
ethical value. Corporate actions on biodiversity can help companies to distinguish 
                                                 
1 Millenium Ecosystem Assessment 2005, Ecosystems and Human Well-being: Biodiversity Synthesis, 
World Resources Institute, Washington DC,  p.18 (www.maweb.org)  
2 Why does conserving biodiversity matter to Europe’s businesses? – Natura 2000, no. 24/July 2008, p.4  
 2
themselves from competitors, while also involving retailers, investors, employees, 
local communities and others. In present the problem of public image is becoming 
crucial for businesses if they are to compete successfully for customers. Many 
companies have realized the necessity of meeting their social responsibilities to 
implement sustainable practices and limit their impact on the environment. 
 
2. The concept of Business Biodiversity 
 
 We can define Business Biodiversity concept as ‘commercial enterprise that 
generates profits through production processes which conserve biodiversity, use 
biological resources sustainably and share the benefits arising out of this use 
equitably’3. 
 The business case for biodiversity is easy to make when a company depends 
directly on biodiversity to operate (the case of nature-based tourism), but examples 
can be found in other business sectors, where greater biodiversity is associated with 
lower costs, increased productivity and higher profits:  
- Biologically diverse soils are generally more productive for agriculture; 
- Marine biodiversity is associated with increased productivity of fisheries; 
- Crop genetic diversity is a key factor in maintaining disease resistance and yields; 
- Diverse tropical forests are prime locations in which to find novel genes and 
compounds for agricultural, industrial and pharmaceutical uses. 
 The concept of Business Biodiversity is related with Potsdam Initiative4 – 
Biological Diversity 2010, when it was initiated the process of analyzing the global 
economic benefit of biological diversity. 
 
3. The Business Biodiversity models  
 
  The Building Biodiversity Report 2008 presents an analysis of business 
biodiversity landscape, considering sectors and activities of potential business 
opportunities as:  ‘biodiversity-friendly’ agriculture, sustainable forestry, business with 
non-timber forest products, sustainable fisheries and aquaculture, carbon sequestration in 
biomass, watershed protection, bioprospecting, eco-tourism, biodiversity offsets, 
biodiversity management services, recreational hunting and sport fishing5. In base of this 
report let’s analyze in details the next biodiversity business models which have already 
began to have success in European economy:   
 
• ‘Biodiversity – friendly’ agriculture  
 Terms such as ‘sustainable’, ‘green’ and ‘eco-agriculture’ are widely used to 
describe environmentally-friendly agricultural practices, which often also have positive 
socio-economic impacts. The promotion of biodiversity-friendly agriculture tends to 
involve some or all of the following practices: 
                                                 
3 Bishop J., Kapila S., Hicks F., Mitchell P., Vorhies F., Building Biodiversity Business, 2008, Shell Int. 
Ltd., IUCN, p.24 
4 G8 Environment Ministers Meeting, Potsdam, 15 – 17 March, 2007 
5 Bishop J., Kapila S., Hicks F., Mitchell P., Vorhies F., op.cit., selection p. 30-127 
 3
- Creating biodiversity reserves or sanctuaries on farms. 
- Developing habitat networks around and between farms; this can include the 
creation of ‘biological corridors’ that connect areas of significant biodiversity. 
- Reducing conversion of wild habitat to agriculture by increasing farm 
productivity and by protecting priority areas, such as watersheds, forest 
fragments, rivers and wetlands.  
- Taking marginal agricultural land out of production and assisting regeneration of 
natural habitats.  
- Modifying farming systems to mimic natural ecosystems as much as possible. 
-  Low-input or less environmentally damaging agriculture practices, focusing on 
reduced erosion and chemical or waste ‘run off’, through ‘zero tillage’ planting 
techniques, contour ploughing, use of vegetation and trees as windbreaks, use of 
leguminous species, etc.  
- Sustainable livestock practices that range from modified grazing and pasture 
management systems to promoting the incorporation of trees and other vegetation 
into livestock grazing areas.  
 Various labels and certification standards are used to distinguish farms that adopt 
such practices from conventional agriculture, such as ‘bird-friendly’, ‘shade-grown’, 
‘conservation’, ‘sustainable’, ‘organic’ and ‘fair trade’. These and other practices 
have the potential to be scaled-up significantly and, depending upon how they are 
implemented, to enable agribusinesses of all sizes to promote biodiversity 
conservation. 
 
• Sustainable forestry and Non-timber forest products (NTFP) 
 
 International Tropical Timber Organization defines sustainable forest 
management as ‘forest-related activities should not damage the forest to the extent that 
its capacity to deliver products and services – such as timber, water and biodiversity 
conservation – is significantly reduced. Forest management should also aim to balance 
the needs of different forest users so that its benefits and costs are shared equitably’6.  
 Sustainable forestry and related ‘low impact’ logging practices are designed to 
minimize adverse impacts on forests, rivers and streams, protect important habitats, 
maintain the various environmental services that forests provide. Broader definitions of 
sustainable forestry include a range of socio-economic objectives such as poverty 
reduction, social equity and empowerment. From a biodiversity perspective, a key 
element of sustainable forestry involves identifying environmentally sensitive areas and 
managing them under relatively strict guidelines. 
 Non-timber forest products are natural products other than wood derived from 
forests or wooded land. Examples of NTFP include edible nuts, mushrooms, fruits, herbs, 
spices, honey, gums and resins, rattan, bamboo, thatch, cork, ornamental plants and 
flowers, and an array of plant and animal products used for medicinal, cosmetic, culinary, 
cultural or other purposes. A significant category of NTFP is animal species hunted for 
                                                 
6 citation from Bishop J., Kapila S., Hicks F., Mitchell P., Vorhies F., op.cit., p. 41 
 4
their meat, skins, and other products, often referred to as the ‘bushmeat trade’. It is 
important to note that NTFP introduced as cash or subsistence crops in some parts of the 
world have become invasive, posing a threat to local biodiversity.  
 NTFP have attracted considerable interest in recent years due to their ability to 
support rural livelihoods while also contributing to conservation objectives. Efforts to 
promote more sustainable use of forests have led to increased interest in NTFP collection 
and marketing as an instrument for sustainable development.   
 
• Sustainable fisheries and aquaculture 
 
 The Marine Stewardship Council (MSC) asserts that sustainable fisheries should 
be based upon:  
- the maintenance and re-establishment of healthy populations of 
targeted species;  
- the maintenance of ecosystem integrity;  
- the development and maintenance of effective fisheries 
management systems, taking into account all relevant biological, 
technological, economic, social, environmental and commercial 
aspects, and  
- compliance with relevant local and national local laws, standards 
and international understandings and agreements. 
 
 The main reasons for the seafood sector to engage with the issue of biodiversity 
include:  
- Securing supplies of target fish. The health of ecosystems determines their 
productivity, hence an ecosystem approach to managing fisheries is needed to 
secure long-term supplies. 
- Reputation and access to markets. Consumers and retailers are increasingly 
concerned about the impacts of fisheries on target and non-target species and 
seabed habitats, and are demanding assurances that these are addressed by the 
industry. 
 
• Eco-tourism  
 
 In accordance with The International Ecotourism Society (TIES), eco-tourism is 
defined as ‘responsible travel to natural area that conserves the environment and 
improves the well-being of local people’7. TIES considers that those who implement and 
participate in ecotourism activities should follow the ecotourism principles as: 
- minimize impact;  
- build environmental and cultural awareness and respect;  
- provide positive experiences for both visitors and hosts;  
- provide direct financial benefits for conservation;  
- provide financial benefits and empowerment for local people;  
                                                 
7 http://www.ecotourism.org – The International Ecotourism Society definition of ecotourism from 1990 
 5
- raise sensitivity to host countries' political, environmental, and social climate. 
 The global importance of ecotourism is highlighted by several international 
agreements including: The UN Commission on Sustainable Development, 7th Session 
(1999); the UN World Tourism Organization Code of Ethics (1999); The Guidelines on 
Biodiversity and Tourism Development issued by the CBD (2003); The Quebec 
Declaration on Ecotourism (2002); and the World Summit on Sustainable Development 
(2002). Guidelines and standards relating to sustainable / responsible tourism (including 
specific reference to biodiversity) are also being developed by the Tour Operators’ 
Initiative for Sustainable Development which has created environmental guidelines for 
hotels, resorts and tourist attractions.  
 There are a lot of examples of how ecotourism is making direct, significant 
contributions to biodiversity conservation. One approach is through revenue generated to 
support protected areas. Some protected areas generate significant revenue from visitor 
fees collected at the point of entry or as user fees applied as, for example, part of an 
overall package cost (South Africa). In addition to the payment of fees, financial 
contributions may be generated through the sale of licences, concessions and leases. 
Public authorities often delegate responsibility for managing tourism operations in 
protected areas to private businesses, NGOs, individuals or local communities 
(Indonesia).  Many countries also impose indirect taxes on tourists and tourism facilities, 
with a proportion of the revenues earmarked for conservation (Belize, Caicos Islands).  
 In Building Biodiversity Report 20088 are identified the next investment 
opportunities in ecotourism: 
- Invest in ecotourism companies that can then take on the management of tourism 
concessions in national parks. These companies could also create or invest in 
private ecotourism facilities in areas of important biodiversity. Such investments 
could range from joint partnerships with existing ecotourism or hotel management 
companies to the creation of new companies. Any tourism facilities / operations 
would need to be certified according to credible standards. 
- Investment in joint ventures (public–private partnerships), particularly between 
communities and the private sector (and government), based on participatory and 
equitable negotiations.  
- A variation on this theme would be to invest in and / or create a ‘chain’ of 
ecotourism hotels and related operations – with well-designed facilities, 
professional management, centralized ‘back office’ operations, and a common 
promotional strategy – to create a brand that is synonymous with the highest 
ecotourism standards. This goal could also be achieved by buying a number of 
leading ecotourism operations. 
- Invest in existing eco-funds, and / or create new investment funds, that include 
ecotourism in their portfolios. 
- In the generation of sustainable livelihoods via businesses that value biodiversity 
there are opportunities to improve marketing (from product development to 
distribution); performance indicators to measure conservation results and poverty 
reduction; improved procedures for knowledge transfer between different 
                                                 
8 Bishop J., Kapila S., Hicks F., Mitchell P., Vorhies F., op.cit., p. 90 - 91 
 6
projects, and investment in small / community-based operators whose services 
and products can be integrated in the mainstream tourism industry. 
 
Conclusions 
 Biodiversity protection is a priority issue in EU environmental policy. A 
challenge of our times is to integrate biodiversity considerations into other important 
policy areas, such al agriculture, regional development, fisheries, energy, transport, trade, 
development aid and research, and especially to build partnerships with businesses. 
Measures include market incentives, development assistance, biodiversity-friendly trade 
and international governance processes. We can not conclude this paper without 
reminding the Countdown 2010 biodiversity target9 - ‘to achieve a significant reduction 
of the current rate of biodiversity loss’, and, at EU and pan-European level, an even more 
ambitious target - ‘halt the loss of biodiversity’. Can the 2010 biodiversity target be met?  
Yes, but only with an emerging consensus about needs to be done and with a major shift 
in re-thinking on the role of business in biodiversity conservation. 
 References 
• Bishop J., Kapila S., Hicks F., Mitchell P., Vorhies F., Building 
Biodiversity Business, 2008, Shell Int. Ltd., IUCN 
• Murphy P. - Recognising the strong business case for biodiversity 
protection, Natura 2000, no. 24/July 2008 
• Millenium Ecosystem Assessment 2005, Ecosystems and Human Well-
being: Biodiversity Synthesis, World Resources Institute, Washington 
DC (www.maweb.org) 
• Why does conserving biodiversity matter to Europe’s businesses? – 
Natura 2000, no. 24/July 2008  
• http://www.ecotourism.org – The International Ecotourism Society 
• http://www.countdown2010.net (What is the 2010 biodiversity target?) 
• http://ec.europa.eu/environment/nature/biodiversity (What is 
biodiversity?) 
• http://ec.europa.eu/environment/nature/biodiversity (The economics of 
ecosystems and biodiversity) 
• http://ec.europa.eu/environment/nature/biodiversity (Natura 2000 
network) 
• http://ec.europa.eu/environment/nature/biodiversity (EU Biodiversity 
Policy Development) 
 
 
                                                 
9 http://www.countdown2010.net (What is the 2010 biodiversity target?) 
Also, it is important to mention that since 2006, the 2010 Biodiversity Target is fully integrated into the 
Millennium Development Goals. 
 7
 


Re-thinking on the role of business in biodiversity conservation

https://mpra.ub.uni-muenchen.de/12596/1/MPRA_paper_12596.pdf

Re-thinking on the role of business in biodiversity conservation

Abstract

Similar works

Full text

Available Versions

Munich Personal RePEc Archive