According to a recent study financed by the European Commission, biodiversity can provide a substantial business opportunity in a market that could be worth between 2 and 6 trillion USD by 2050. The report highlights the considerable recent growth in eco-certified products and services and growing consumer concerns for sustainable production, established seven recommendations for companies and calls for the elaboration of common standards to assess biodiversity impacts.

The report shows that although a majority of companies still treat biodiversity superficially in their reports, growing numbers are aware of the potential benefits. Biodiversity and ecosystem services offer opportunities for all business sectors, and their integration can bring significant added value by ensuring the sustainability of supply chains, generating new products, creating and penetrating new markets and attracting new customers.

Based on that potential, the report makes a strong case for integrating biodiversity into private sector business plans and core activities around the globe. TEEB – The Economics of Ecosystems and Biodiversity – is a project funded by the European Commission dedicated to building the economic case to assist economies make transformational policy choices and changes in order to address this crisis and bring greater intelligence to the way nature-based assets are managed.

“TEEB for Business” will form part of the TEEB synthesis report to be launched at a meeting of the Convention on Biological Diversity in Nagoya, Japan in October 2010.

The report also underlines that policies to manage biodiversity and ecosystem risks can also help to identify new business opportunities, such as reducing input costs through improved resource efficiency, developing and marketing low impact technologies, managing and designing projects to reduce ecological footprints, and providing professional services in risk assessment and management/adaptation. This report comes up short after the presentation by the Commission and the EEA of two new tools to fight against biodiversity loss, as well as the campaign also launched by the Commission to raise awareness about biodiversity among citizens.

TEEB Report recommendations to businesses

• Identify the impacts and dependencies of your business on biodiversity and ecosystem services (BES)
• Assess the business risks and opportunities associated with these impacts and dependencies
• Develop BES information systems, set SMART targets, measure and value performance, and report your results
• Take action to avoid, minimize and mitigate BES risks, including in-kind compensation (‘offsets’) where appropriate
• Grasp emerging BES business opportunities, such as cost-efficiencies, new products and new markets
• Integrate business strategy and actions on BES with wider corporate social responsibility initiatives
• Engage with business peers and stakeholders in government, NGOs and civil society to improve BES guidance and policy.

Estimates by PricewaterhouseCoopers show that the potential market related to sustainability-related global business opportunities in natural resources could range between 2 and 6 trillion USD by 2050, According to Forest Trends and the Ecosystem Marketplace, there is an important potential in markets related to certified agricultural products and payments for Ecosystem Services for water-related ecosystem services and watershed management.