Business Benefits of Landscape Approaches
Business Benefits of Landscape Approaches
Why
landscape approaches
make business sense
Purpose
This briefing paper outlines the business case
for companies in taking a landscape approach
to address sustainability challenges in their
operations and/or supply chains. It thereby
explains what a landscape approach is and how a
company can use it to achieve different business
objectives. It includes practical examples
of motivations for companies to engage in
landscape-level interventions, by entry point and
by sector, illustrating the relevance of landscape
approaches to different industry sectors.
• This paper is a result of a collaborative process document and additional relevant websites are • We appreciate the comments received from
between the World Business Council for provided at the end. WBCSD member companies and several external
Sustainable Development (WBCSD), and the stakeholders, including: AWF, Commonland,
Sustainable Trade Initiative (IDH), The Forests • An earlier draft of this paper has contributed to EcoAgriculture Partners, Fauna and Flora
Dialogue (TFD), and the Sustainable Food Lab developing material for a workshop on landscape International, International Council on Mining
(SFL). The sectoral examples have been prepared approaches at the Rockefeller Foundation’s and Metals and the International Union for
in collaboration with Andrea Athanas of the African Bellagio Center in Italy, which took place May 31 - Conservation of Nature (IUCN).
Wildlife Foundation (AWF). June 2, 2016. This workshop was co-organized by
EcoAgriculture Partners, SAI Platform, Sustainable
• It is targeted at business and aims to capture Food Lab and IUCN’s SUSTAIN program. WBCSD
the main arguments for business to engage and IDH both contributed to this through an
in landscape approaches. It is not meant to advisory group.
be exhaustive. Links to useful references and
resources are footnoted throughout the
1
Reducing Risk: landscape approaches to sustainable sourcing
(Kissinger, Brasser and Gross, 2013)
Over the last 20 years, various mechanisms have To retain its long-term license to operate, manage improving water management practices and
emerged to manage operational and supply chain regulatory, reputational and operational risks and to generating positive social and environmental impact.
risks and improve business sustainability. Examples deliver greater transparency and traceability, the focus
include forest certification, commodity roundtables keeps expanding from individual operations, supply
or water stewardship standards.6 While these chains or commodity sectors to entire production
mechanisms have their benefits, they generally offer landscapes. Multi-stakeholder interventions for
segmented approaches, often concentrating on integrated land management are becoming a more
distinct supply chains. They tend not to be sufficient attractive and business-relevant approach to hedge 6
How sustainability standards can contribute to landscape ap-
to fulfil broader corporate commitments and are multiple risks and harness new opportunities, including proaches and zero deforestation commitments (Mallet, Maireles,
challenged to prove their respective impact. corporate commitments on halting deforestation, Kennedy and Devisscher, 2016)
Securing long-term Improving stakeholder Improving product Enhancing consumer Meeting buyer
productivity while relations to retain traceability and reducing confidence in product requirements and
maintaining supply license to operate costs through verified offerings helping to fulfil corporate
of ecosystem services sustainable sourcing commitments
Leading to an improvement Supporting more Mobilizing co-funding Helping to identify Building understanding
of governance, policies sustainable allocation or new investments cost saving of external risks to business,
and incentives for of resources and ensuring opportunities which may not be identified
sustainable practices, that concessions for through traditional inside-
thanks to a close different land-uses are the-fence risk management
collaboration with not over allocated for practices
governments what the landscape sustains
While there is no one-size-fits all solution, the shared understanding of the issues, challenges and how to establish a multi-stakeholder platform. It
following six elements generically describe how to opportunities, collaborative planning aims to drive provides useful suggestions on:
best implement a landscape approach:7 concerted actions towards effective implementation,
mobilizing investment in land use optimization and • What to consider to reach shared understanding?
First, the issues and diversity of affected natural resource protection. Monitoring is key for • What to consider when undertaking collaborative
stakeholders must be identified. By setting up making any necessary adjustments, continued planning?
a multi-stakeholder platform different interests engagement and knowledge exchange. The Little • What to consider in landscape monitoring?
and “fracture lines” can be explored, information Sustainable Landscapes Book (see page 58 onwards)
can be shared and participants can work towards provides further detail on effective implementation. 7
The Little Sustainable Landscapes Book (2015) and IDH, TFD,
building trust among each other. Based on a It discusses the wide spectrum of cooperation and WBCSD and SFL infographic (2016)
1 Identify issues
and stakeholders 2 Set up a multi-
stakeholder platform 3 Build shared
understanding 4 Plan
collaboratively 5 Work towards
effective
implementation
6 Monitor and evaluate
outcomes
8
Interviews conducted by Sustainable Food Lab staff in
collaboration with WBCSD, IDH, and EcoAgriculture Partners.
9
WBCSD and non-WBCSD members
Water risks
Social conflict
10
These four entry points were prioritized by WBCSD members
Changing micro-climate and the authors for the purpose of this paper. Other entry
points can include: ecosystem degradation, forest fires,
climate change, reputational risks, supply chain commitments
or dependencies, legal compliance among others.
Deforestation 11
Desired outcome
No contribution to deforestation through
corporate supply chains.
Existing mechanisms Benefits of a landscape approach
Certification which is commodity-specific and • Mobilize additional stakeholders for forest
focuses on a limited number of products, e.g. soy, management, use and protection, as well
palm, beef, timber. as mobilize investment to optimize land
productivity or restore degraded land, reducing
Challenges pressure on forests.
• No universally accepted definition for deforestation
and multiple, often conflicting terms and • Identify the set of actions to implement
approaches proliferate. Most common terms used, beyond a single commodity
2
stream to ensure
include: zero-deforestation, zero-net deforestation, deforestation does not occur in an entire supply
zero-gross deforestation or deforestation-free. region.
• No clarity on how to effectively implement, measure • Ensure that any implemented actions do not
and monitor deforestation-related commitments. cause adverse effects on other land uses or
users within the same area.
• Huge gap between corporate commitments at
global level and realities on the ground. • Help to identify indirect and cumulative impacts
relating to deforestation thereby enabling
• Often no alignment of approaches between different improved avoidance and mitigation.
commodity streams, which means “deforestation-free”
may mean different things depending on commodity. Key elements for addressing challenges
• Multi-stakeholder dialogue, shared
• Actual deforestation may continue despite understanding, effective implementation and
commitments, for example: while a company may monitoring.
only source certified commodities, the region
where that commodity is sourced from may not
be “deforestation-free” because other land uses 11
The Forests Dialogue: Understanding Deforestation Free
continue to contribute to the problem. Initiative
Water risks
quality & quantity 12
Desired outcome
Secure water supply for production and operations
and mitigate risks related to floods, droughts and/
or water quality.
Existing mechanisms Benefits of a landscape approach
Water- stewardship standards, foot printing and/or • Help identify a common way forward at the
efficiency management. watershed level: smart policy and regulation, to
use and sustain a shared resource and reduce
Participatory monitoring, roundtable dialogues, shared risks over the water supply and water
public-private partnerships for water quality. 2
infrastructure development.
• Help access funding and motivate more
Challenges effective water governance.
• Water efficiency in plants, fields and other
operations are often not enough to meeting
broader objectives. Key elements for addressing challenges
• Multi-stakeholder dialogue, shared risk
• Increasing competition over water resources with management, policy development, improved
multiple users (e.g. other companies or industrial water governance.
sectors, agriculture, communities and municipalities).
Social conflict 13
Desired outcome
Retain social license to operate.
Existing mechanisms Benefits of a landscape approach
• Stakeholder engagement through social • Create shared understanding and build trust
platforms. among all key actors, incl. communities,
• Social development programs. government representatives, NGOs and
• Formal grievance mechanisms. business.
• Free, Prior and Informed Consent.14
• One on one engagements and dialogues. • Reduce conflict through participatory
engagement.
Challenges
• Lack of regulatory framework or jurisdiction. • Improved identification
2
of social risks and
For example, insecurity over land tenure and impacts (direct, indirect and cumulative) through
access rights. early engagement with all key actors and
understanding of tenure and natural resource
• Competition for shared resources (e.g. food, dependencies.
forests, water).
• Different needs to use land (i.e. subsistence vs. Key elements for addressing challenges
industrial use vs. conservation). • Participatory engagement, shared decision
making, development of improved policies.
13
Read ‘The Business of Landscapes Blog by Duncan Pollard’,
Nestlé (2016)
14
The Forests Dialogue Initiative on Free, Prior and Informed
Consent (FPIC)
Changing
micro-climate 15
Extractives
Forestry
Tourism
Agriculture is a dominant form of human land use It also opens up new opportunities in markets
and has shaped entire landscapes.17 Landscape where consumers are willing to pay a premium for
approaches to agriculture stem largely from a need products delivering on environmental and social
to control the footprint of agricultural expansion to expectations. Certification is one way companies
leave sufficient room for other land uses, particularly are demonstrating performance against social and
forests, grasslands and wetlands, which are key to environmental standards. Beyond certification,
providing ecosystem services we all depend on. some food companies2 are directly investing in
programs that enable smallholder farmers in
The Landscape for People, Food and Nature (LPFN) their value chains to take landscape approaches
initiative’s business engagement working group found to production. The Livelihoods Fund for Family
that taking a landscape approach can help manage Farming19 is one example of how companies are
emerging risks to the sector such as climate change, combining efforts to enable smallholders to take a
ecosystem degradation and increasing competition landscape approach while deriving benefits from
over limited resources.18 LPFN research confirmed access to global value chains. In sum, a landscape
that landscape approaches can address operational, approach provides agriculture companies with:
regulatory, and reputational risks while increasing • Access to markets that are increasingly aware of
benefits to smallholder farmers in their value chain. environmental and social performance,
Some issues such as water security, climate change
risks, and community engagement are perceived to • A way of safeguarding against the negative
be best addressed through a landscape approach, as consequences of climate change and related
they implicate actors and require action beyond the impacts, and
farm gate. • A way of securing supply chains that include
a diversity of producers and thus hedging
17
Radical Cartography against risk of production losses stemming from
18
Landscapes for People Food Nature unforeseen events such as those that occur with
19
Livelihoods Fund changing weather patterns or political unrest.
For the chemical and pharmaceutical sectors the potential contamination of soil, waterways
motivations may be different from industries with or food sources. This sector is also challenged
a clear and defined footprint in a given landscape. to understand how its end products affect
This sector is mainly tied to landscapes through the ecosystem services and biodiversity, either
production (e.g. release of potential pollutants) and directly or indirectly. 2
application of its products (e.g. seeds, pesticides or
herbicides), as well as through their supply chains. As
such, landscapes are both a source of raw material
and the receiving environment for the products
produced.
Mining and oil & gas companies require access on-site water processing, the mine can further
to a finite set of raw materials that are found in help increase water availability by engaging in
predetermined locations based on geological landscape approaches and supporting restoration
formations. Companies are thus bound to invest in programs or water catchment management
specific geographies to sustain and grow operations. projects. It can also support reduction of
This location-specific nature of the extractive agricultural water use by working with farmers
industries is a key factor that drives innovative on implementation of 2more efficient irrigation
approaches to mitigating risks posed by operating systems.
in locations where there are sensitive habitats,
vulnerabilities to the supply of water, or instability An oil and gas operation near a sensitive habitat
among neighboring communities because of may find that after all efforts to avoid, minimize and
degraded environmental resources. rehabilitate negative impacts on biodiversity there
remains a residual impact that needs to be offset.
Framing and managing such risks through the The possibilities for offsetting that residual impact
landscape lens can present solutions that are may not exist within the fence-line of the project,
more effective, feasible and economically viable but only within the wider landscape. A landscape
than solutions restricted to ‘within the fence-line’ of approach may enable the company to design
operations. For example, a coal mine operating in offsets that are more strategic and cost effective
a water scarce environment would risk its license and benefits both the company and biodiversity.
to operate if its operations were to negatively
impact on the availability of water for irrigation in
neighboring agricultural lands. After having optimized
Tourism is one of the world’s largest industries, and on destinations that provide great outdoor
eco-tourism is one of the fastest growing segments experiences such as kayaking, mountaineering,
in the industry. Eco-tourism is built on stunning photography, hiking, cycling, camping, horseback
destinations that often derive their attraction from riding, snorkeling and scuba diving and a range
the values of a wider landscape. This sector has a of other leisure activities. Recreation companies
vested interest in investing in the conservation and often invest in landscape
2
(and/or seascape)
management of landscapes where they operate, conservation and management programs in order
because their business model depends on well- to sustain their core product offerings.
managed and functioning landscapes. Tourism
companies ranging from small scale single-unit A landscape approach can be the basis for
operators to major multinational operators invest destination development and enhanced business
to protect the asset base provided by landscapes opportunities through a wider range of available
through revenue sharing agreements with recreational activities. For instance, companies
communities and protected areas, merchandising operating in a market known primarily for cultural
and local product sales to support destinations attractions could find opportunities to extend
and host communities, and travel philanthropy and visitor stays by introducing additional products tied
volunteer programs to enable tourists to give back to to landscape values such as hiking, birdwatching
a site they have visited. or wildlife viewing experiences.
The World Business Council for The Sustainable Food Lab is a IDH, the Sustainable Trade Initiative brings The Forests Dialogue (TFD) is a neutral,
Sustainable Development (WBCSD) is a consortium of business and nonprofit together governments, companies and international, multi-stakeholder platform
global, CEO-led organization of over 200 organizations with a mission to accelerate others in public private coalitions that established in 2000 to help address
leading businesses and partners working the shift of sustainable food from niche to have the power to design, implement conflicts and challenges about important
together to accelerate the transition mainstream. The Sustainable Food Lab and scale production and protection forest-related issues. TFD is governed
to a sustainable world. WBCSD helps supports the design and management of plans. IDH formulates and improves the by an international Steering Committee
its member companies become more pre-competitive collaborations, provides business case for companies to invest in reflecting the breadth of interests in
successful and sustainable by focusing direct consulting support to many food these plans, by bringing in funders, banks, forests, and its secretariat is hosted
on the maximum positive impact for and beverage companies, and nurtures governments and other international by Yale University. TFD has developed
shareholders, the environment and system leadership via a partnership with companies to co-fund and prototype and facilitated 15 dialogue initiatives,
societies. colleagues at the MIT Sloan School of cost-efficient and scalable production comprising more than 60 country-level
Management. Collaborative projects span and protection models. IDH organizes and international dialogues involving over
WBCSD member companies come many farming systems and geographies, international knowledge around these 3,000 individuals during its 15 years of
from all business sectors and all major from climate resilience in West Africa prototypes and uses its track record, work. Half of the dialogue initiatives have
economies, representing a combined to soil-building rotations in the US international networks and cross sectoral focused on what would now be called
revenue of more than $8.5 trillion and Corn Belt, from the Sustainable Vanilla experiences in 11 commodity programs ‘landscape’ topics.
19 million employees. The WBCSD Initiative with all Madagascar industry and 11 landscapes to accelerate
global network of almost 70 national players to the Cool Farm Alliance. Food learning and innovation. IDH works with For more information, please contact:
business councils gives members Lab staff support change initiatives with over 500 international companies, civil Gary Dunning
unparalleled reach across the globe. organizations that range from Danone society organizations and governments.
WBCSD is uniquely positioned to work to Ben and Jerrys, from PepsiCo to the IDH is funded and mandated by the Executive Director, The Forests Dialogue
with member companies along and Rockefeller Foundation. governments of The Netherlands, [Link]@[Link]
across value chains to deliver impactful Denmark, Switzerland and Norway.
business solutions to the most Find out more about the Sustainable
challenging sustainability issues. Food Lab Find out more about IDH here:
[Link] [Link]
[Link]
For more information, please contact
Follow us on Twitter and LinkedIn IDH Head of Communications
Daan de Wit
dewit@[Link]
Tel.:+31615283774
Sustainability beyond fence-lines why landscape approaches make business sense? | 22
World Business Council
for Sustainable Development
Maison de la Paix
Chemin Eugène-Rigot 2
CP 246 1211, Geneva 21
Switzerland
[Link]
Business
Learning
Hub on
Landscapes