Friday, September 03, 2010
Corporate Social Responsibility News
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KNOWLEDGE MANAGEMENT TAGS
"Corporate Social Responsibility"
Procurement professionals urged to focus on biodiversity
Biodiversity issues are rapidly moving up the agenda for senior procurement professionals, a new report has warned.
According to PwC, unpredictable pricing and supply chain scenarios made business action on environmental conservation "the economically rational thing to do."
The UK's unconscious dependence on environmental resources will mean no sector or business will escape unaffected by changes to the availability of environmental goods and services PwC argues.
The two year study, The Economics of Ecosystems and Biodiversity study (TEEB), led by the UN Environment Programme, examines the economics of biodiversity and ecosystem loss for business, with a global economic impact of biodiversity loss estimated at between $2-4.5 trillion annually, up to 7.5% of global GDP.
The report indicates that scrutiny of big business and its impacts on the world's 'natural capital' will intensify. Emerging valuation, pricing models and market mechanisms based on ecosystems, similar to carbon market mechanisms, will make businesses' strategic planning around the conservation of environmental resources "unavoidable" said PwC.
Jon Williams, partner, sustainability and climate change, PricewaterhouseCoopers LLP said: "The UK's access to, and use of environmental resources in locations from local farms in Suffolk to rainforests in south America, is like an international warehouse of assets that no-one has priced or got an inventory on. Businesses need to start thinking about ecosystems as an extension of their asset base, part of their plant and machinery, and appreciating the value they deliver. "
However, PwC research for the TEEB study, found that of the world's largest 100 companies - including many UK household names - only two see biodiversity loss as a strategic business risk. Only 18 companies made any mention of biodiversity or ecosystems in their annual report. In high - dependency or impact sectors including food producers and primary industrial sectors, nine identified it as a key sustainability issue.
Malcolm Preston, CEO, sustainability and climate change, PricewaterhouseCoopers LLP said: "Current business strategies and plans in the UK are biting the hand that feeds stable consumer prices, business prospects and long term investor security and returns.
"When estimates in the study put economic impact of biodiversity loss at between $2-4.5 trillion annually, you realise that this is not just about environmentalists and scientists, but economically rational conservation that protects the long term prospects for business.
"That means putting more value on the resources that supply and sustain UK business, including companies and projects the financial services sector is investing in."
Procurement Tag - Corporate Social Responsibilty
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