Stop the Loss: CSR and Biodiversity

Protection of biodiversity should be the underlying reason for every CSR effort.Biodiversity loss is the most severe threat to human-wellbeing on the planet. It rates even higher than climate change and related problems.

In order to start talking about loss of biodiversity, it needs to be quantified in hard economic terms. But how do you quantify the loss of honey-bees? and shark species? and so many many other species under threat. The head of Deutsche Bank's Global Markets predicts that our current rate of biodiversity loss could see 6% of global GDP wiped out as early as 2050. Yet nobody puts a value on pollination; national accounts do not reflect the value of ecosystem services that stop soil erosion or provide watershed protection.

Business can do so much more to contribute CSR efforts towards the preservation of biodiversity. The recent TEEB report states very clearly the economic benefits gained by investing in biodiversity protection. A PwC report of the 100 largest companies in the world by revenuefound that only 18 mentioned biodiversity or ecosystems in their CSR policies. Companies that operate in high-impact industries like mining, agriculture, chemicals and pharmaceuticals owe it to their stakeholders to include biodiversity impact data in their CSR reports.

In this regard businesses in Latin America, Asia and Africa are doing far better than their Western counterparts. According to the TEEB report, over 50% of CEOs surveyed in Latin America and 45% in Africa see declines in biodiversity as a challenge to business growth. In contrast, less than 20% of their counterparts in Western Europe share such concerns. Over 80% of consumers surveyed by PwC said that they would not endorse a company with unethical practices.

"We are entering an era where the multi-trillion dollar losses of natural and nature-based resources are starting to shape markets and consumer concerns," said Achin Steiner, Executive Director of UNEP. TruCost, a UK-based consultancy is going to release a study of the world's top companies and their environmental impacts. The 3000 companies that they are including in the report are said to have a negative impact on biodiversity and other 'environmental externalities' of around $2.2 trillion/yr.

While many companies aim for 'ecological neutrality', the TEEB report also highlights corporations moving to embrace 'net positive impact' on biodiversity. Rio Tinto, the global mining giant has worked with conservation experts to find ways to assess the biodiversity values of its lands and then applying 'offset' methodologies. Sime Darby in Malaysia is making an effort to be a sustainable source of palm oil.

Walmart has its 'Acres for America' initiative. BC Hydro is aiming for no net incremental ecological impact. Alcoa has tied up with Conservation International to reduce biodiversity loss in Brazil. Realizingits reliance on coral reefs, Chumbe Island Coral Park Ltd in Tanzania has invested over US$ 1.2million to establish a marine park to protect the corals. Godrej India has been focusing on environmental education and has successfully oriented thousands of school, college and graduate students through their Mangrove Awareness Programs. Aircel India is now famous for its save the tiger campaign. Mitsubishi conducts outdoor classrooms to foster respect for biodiversity as part of its CSR program. Sony's CSR has included saving eagles, creating a sanctuary and other initiatives that are biodiversity focussed.

It is the responsibilityof both consumers and industry to ensure that business is not conducted at the cost of ecological loss.It does not speak well of us as a 'civilized' generation to stand idly by and condone the destruction of species for short-term economic gain. Apathy in this case may as well be akin to participation.