GRI ecosystem services report cover

The table is now set for the business community to play a leading role in helping correct the largest market failure on the planet: The Global Reporting Initiative (GRI) has released guidance for companies to begin formally measuring and reporting their impact & dependence on ecosystem services. The report (called “Approach for Reporting on Ecosystem Services”) paves the way for ecosystem services metrics to be included as part of the standard package of measures used to report on an organization’s sustainability performance. The release of this report is a bellwether of sorts, it sends a clear signal that in the corporate sustainability realm, ecosystem services are here and are here to stay. This development keeps corporate sustainability approaches on pace with recent developments in global ecological science and environmental policy, in the form of the ecosystem services framework.

Ecosystem services, simply defined, are the benefits that humans (and human society & industry) receive from natural ecosystems. An ecosystem is a piece of the natural environment that functions as a self-contained system, examples include forests, wetlands, and rivers. An ecosystem service is a benefit that an ecosystem provides to a person or group of people: for example, forests sequester carbon and provide wildlife habitat, while wetlands detoxify pollutants and can reduce flood risk. Humans have long known that ecosystems provide us with benefits (Plato discusses ecosystem services in his writings), however as ecological science improves, we are increasingly able to quantify the benefits that ecosystems provide. The Millennium Ecosystem Assessment (published in 2005) brought new focus and coherence to the ecosystem services framework; this global environmental audit found that over 60% of the ecosystem services that support life on earth have been degraded.

Women drawing water from a well in Darfur

If ecosystem services continue to be degraded, the costs will increasingly be borne by society and industry.  Sometimes we can replace or substitute some of what nature provides (often at great cost: it takes 40 humans 10 hours to hand-pollinate one acre of crops, which bees will do for free), while other benefits that nature provides are irreplaceable: there is simply no substitute for water or oxygen.

Ecosystem services continue to gain prominence on the corporate sustainability radar: In 2008 the Corporate Ecosystem Services Review (ESR) brought a standardized, flexible and powerful methodology that helps companies understand and address how ecosystem services fit into the context of their business operations and strategy. ESR definitively connects the dots between CSR, EH&S and/or Sustainability functions and the C-Suite & balance sheet. 2010 saw the release of TEEB (The Economics of Ecosystems & Biodiversity) for Business, which provided the definitive corporate business case for biodiversity & ecosystem services (BES), along with a roadmap for addressing and integrating BES into the organization. In 2011, the Guide for Corporate Ecosystem Valuation (CEV) gave ecosystem-aware companies fresh guidance for connecting ecosystems to the financial top and bottom line.

The GRI report furthers this momentum, by putting ecosystem services on the radar of any company that uses the GRI sustainability reporting framework. Because all too often you only manage what you measure, the inclusion of ecosystem services reporting metrics into the GRI framework will start many companies along the path of coming to terms with their relationship to natural ecosystems, thus beginning the necessary process of integrating ecosystems and biodiversity into their environmental, operational, and financial decision-making approaches.

Cargo trucks stranded by Missouri river flooding

For many companies, ecosystems are taken for granted unless the benefits they provide suddenly disappear – some sustainability programs are exemplary at managing the environmental factors at play within the four walls of the factory, while overlooking the ecosystems that lie just outside the factory door (or the mining site or the farm gate). As a company starts reporting on how it impacts and depends on critical ecosystem services, it will begin realizing how the organization depends on ecosystems to function (which we’ve found can sometimes be so obvious that it’s invisible), and also will illuminate how the company’s impact on ecosystems has ramifications on its stakeholders.

Ecosystem services is a quickly evolving field, with many leading science and policy institutions having active ES research programs underway. The GRI report looks at emerging thinking around ecosystem services and gives organizations options for reporting.

Measuring streamflow in a river in Alaska, USA

One of the key insights of the report is that ecosystems by nature are site-specific, geographically variable, and do not easily lend themselves to the types of aggregate roll-up measurements that corporate managers and analysts are used to. The guidance in this report provides a baseline for the potential future design of generally-accepted ecosystem reporting indicators, and provides an ample starting point for formulating ecosystem service recommendations for the next version (G4) of GRI’s reporting guidelines.

As ecosystem services find a place in corporate sustainability reporting, companies will increasingly understand how nature contributes to their profitability and shareholder value. As the company understands how a healthy functioning ecosystem is critical to the success of the organization, it will find a home for nature on the org chart.

Eric Landen is the founder and president of Landen Consulting, an environmental strategy consulting firm that helps organizations understand and address their strategic & financial impact and dependence on ecosystems, biodiversity, and ecosystem services. He is on the Advisory Group that contributed to the GRI report, has written a practitioner’s manual on corporate ecosystem services, and is listed in the Ecosystem Services Experts Directory. He is a member of the Advisory Group of the Water Ethics Network, which aims to include values considerations (including ecosystem service values) into public and private-sector water management policies and decisions, and he serves on the Committee that is developing a U.S. National Sustainable Agriculture Standard.

The rolling hills of Jo Daviess County, Illinois, USA

StopTheMegaDairy.org: I noticed the sign perched atop a ridge as my family wound through the twists and turns of the old Stagecoach Trail, taking in the spectacular landscape while winding our way back homeward. Dad had mentioned the mega-dairy project while we were visiting with him earlier that afternoon in Galena, a picturesque historic town nestled in one of the unique landscapes of the USA: the Driftless Region of NW Illinois and SW Wisconsin. Punctuated by rolling hills, steep outcroppings, and limestone formations which are the harbingers of the karst geology underneath, this region is a ecological, geological, and cultural gem, still retaining a distinct rural family-farming character that harkens back to America’s roots, markedly different in topography from the flatland that is the rest of the Midwest.

As we gulped in the vistas underneath a blaze-orange sunset, I made a mental note to check out the StopTheMegaDairy.org website upon returning home.

I have a history with this part of the country, having had a weekend summer house in the surrounding area where I frequently sojourned as a child. It’s quite likely that this is where my love of the natural world was birthed and the seeds of my eventual eco-career were sown, where I learned to love those wild places which my later schooling would tell me were “ecosystems” and “habitats”: catching crayfish in the shallows of the Apple River, skipping stones in a quiet stretch of the river, meandering up one of its tributaries just to see where it went, chasing minnows in a clear sun-dappled pool or watching the great blue heron stealthily fish for trout – this is where my connections to the land were first forged.

Environmental Identity is the phenomenon whereby an individual forms psychological and emotional attachments to one’s physical environment, in the process influencing the development of one’s identity. The physical environment plays a significant role in a child developing a sense of self, and this emotional connection to the natural environment carries through to adulthood, many adults use natural settings to reflect on personal matters and regulate their emotional state and self-concept.

The psychological and emotional connection to nature is a two-way street: specific places and environments can contribute to one’s sense of well-being or security, while negative environmental changes can cause feelings of personal loss. These living connections that intertwine the natural environment and the human psyche were confirmed the more I reflected on my outdoor experiences as a child.

However, upon learning about the industrial mega-dairy being planned for the area, I realized that the ecosystem where these formative experiences occurred was under threat. The project is often referred to as “the TFD CAFO” – TFD stands for Tradition Family Dairy, the name of the proposed facility, which is funded and managed by an absentee out-of-state investor. CAFO stands for Confined Animal Feeding Operation, which the US EPA defines as any operation containing more than 700 mature dairy cattle – the proposed TFD facility would have 6,850 animals – in a region where the average dairy herd size is 114 cows.

Effluent runoff from a CAFO

As I researched the CAFO phenomenon, I learned more about the CAFO-related environmental accidents that occur with alarming frequency – in Illinois, 75% of dairy livestock CAFOs surveyed between 2003-2009 have had a regulatory violation in any given year, with 72% of these violations potentially having an impact on nearby rivers, lakes, streams, and other regional water bodies. Somewhere along the way while researching this project and re-acquainting myself with the Jo Daviess County region, I realized that it wasn’t just miles of the tributaries of the Apple River and its precious (and endangered) fish and wildlife that were at risk – a certain part of myself and my childhood memories were at risk as well. I had to act, if for nothing else to give something back to the land that has given so much to me.

One of the key tools in my company’s sustainability arsenal is the ability to put a price on nature. In our work with business & government leaders and trendsetters that are leading the charge for global sustainability, we perform this ecosystem economic valuation in a proactive manner, so that potential ecological and social sustainability issues can be assessed and mitigated at the outset of a project, and measures put in place to ensure that the project delivers positive benefits to all stakeholders.

However, all too often, development decisions are made with a narrow frame of reference that only considers short-term economic returns/revenues, often overlooking the economic costs of the ecological and social degradation that unsustainable development inflicts. When I reviewed the proceedings of the TFD CAFO saga, it was evident that the only story being pitched in the public dialogue, were the potential economic/employment benefits. Not yet being told were other considerations that bring real economic and social costs to the community: What’s the cost of a CAFO-caused fishkill? What’s the cost to the community of public health impacts? What’s the aggregate cost of property value decline? What’s the related community cost due to lost tax revenue? What’s the cost to the regional economy due to the changes a CAFO often brings to the local dairy industry?

My consulting work places an emphasis on helping corporations ensure their social license to operate by actively promoting ecosystem-focused stakeholder engagement, the TFD story seemed to be a case of stakeholder dis-engagement writ large.

Purple leachate discharged from TFD CAFO to nearby stream on October 1, 2010

The land and people of Jo Daviess County have sounded an alarm about what could happen to the surrounding communities due to the economic, ecological, and social impacts of a project that is magnitudes larger than the scale of farming activities currently practiced in the region. The project has already generated toxic (high-BOD) purple effluent discharges to local tributaries and streams even before the facility is officially completed, and I’ve responded: I’ve called my team of modelers and economists into action, we are giving our talents to put together a full-cost-accounting review of the project that puts all of the costs, along with the potential benefits, onto the same balance sheet, so that a balanced assessment of the project’s impact on the community can be made.

The numbers are currently being crunched, so stay tuned for Nature’s full accounting of the TFD CAFO’s triple bottom line…

Eric Landen is the founder and president of Landen Consulting, an environmental strategy consulting firm that helps organizations quantify and integrate the ecological and social values of natural ecosystems into business and public-sector decision-making. He serves on the Committee that is creating a National Sustainable Agriculture Standard, and is a chair of the project’s Sustainability Economics subcommittee, which is determining guidelines for how farmers can account for the economic costs of ecological and social un-sustainability, along with the economic, environmental, and social benefits of running a sustainable operation.

Woman delivering an offering of water into the sacred Ganges at Varanasi

“If there is magic on this planet, it is contained in water”
– Loren Eisley

Water: the source of life, and the lifeblood of Earth’s ecosystems. Water is also the fountainhead of human spirituality & culture – from antiquity to the present, water is a core element of humanity’s shared traditions, festivals and rituals. Some of humanity’s earliest religious practices were based on the veneration of water: early nomadic tribes would mark the locations of wells and springs with stone cairns. Those locations became the sites of early shrines, as pure life-giving water was a valuable resource to be honored and revered.

As global development continues its inexorable advance and water stewardship efforts increase for this ever more precious resource, the cultural and spiritual value of water, in addition to the fundamental value of its inherent life-giving properties, must also be taken into account when planning water management policies that balance ecological, economic, and social well-being.

Ignoring a community’s cultural dependence on water can have tragic consequences for local traditions – for example, the Black Mesa coal project in Arizona, USA, which degraded the sacred springs and sole water supply of thousands of Hopi and Navajo Native Americans in order to fuel energy projects in the American Southwest. The project was started by Peabody Energy Corporation in the 1960s and the controversy about unsustainable water use continues to this day.

This tragedy could have been easily avoided had the company performed an Ecosystem Services Review prior to designing their project. The Ecosystem Services approach provides a decision-making framework that analyzes the tradeoffs associated with resource-use issues that involve multiple stakeholders, identifying a path forward that accounts for the value of both the Provisioning and the Cultural services provided by water resources. As the private sector steps up its efforts to engage stakeholders and reduce its impacts on ecosystems, the relationships between water and cultural values need to always remain in focus.

Puja offering at the River Ganges, Varanasi

Water is also considered to be the primordial element in many of humanity’s earliest creation myths and stories. Water creation myths are a distinct branch of the creation-myth family tree, two of the five main types of creation stories encountered in global cultures involve primordial waters as the primal substance that gave birth to the rest of creation. In Assyro-Babylonian mythology, the gods and then all beings arose from the fusion of sweet water and salt water. Hindus believe that the Ganges River is not just the dwelling place of a deity. Rather, Hindus believe that the deity is the river itself. African traditional religious beliefs are centered on the idea that water is the supreme life-giving element, such as the Yoruba river goddess Oshun and the Igbo lake goddess Ogbuide.

In Native American creation myths, water plays a primary role as well, such as in the creation story of California’s Maidu Indians, which tells the story, “In the beginning there was no sun, no moon, no stars. All was dark and everywhere there was only water.”

Native American traditions honor numerous holy water sources including Panther meadows on Mount Shasta (Shasta tribe) and Montezuma’s Well in Arizona (Hohokam and Pima tribes). Today, both of these sacred water sources are under threat due to water quality degradation and supply-replenishment constraints caused by upstream development. Within the Ecosystem Services framework, it is recommended that the upstream developers proactively examine their project’s potential impact on a broad spectrum of ecosystem services before finalizing the design of their development plans. In these situations, special emphasis should be placed on engaging regional stakeholders to identify and consciously respond to complex issues such as the religious & cultural heritage status of water sources relied upon by indigenous peoples.

The sacred aspects of water are well-evidenced in present-day spiritual traditions around the world. For example, many of today’s major religions incorporate ritual washing. In Christianity, full immersion water baptism is a central sacramental act, representing an individual’s commitment to the faith. In Islamic faith practices the five daily prayers are performed after washing certain parts of the body (face, arms, head and feet) using clean running water.

Water sites around the world are revered as sacred places of worship for various believers. Bodies of water such as the fountain at Lourdes (France), Lake Titicaca (Peru), Black Mesa (Arizona, USA), and the Zam Zam well (Mecca, Saudia Arabia), are venerated by pilgrims and devout religious lay people around the world.

Brigid's Well in Kildare, Ireland

Holy wells (a well or spring where there is a tradition of veneration or association with religious or magical experience) are some of the oldest sacred sites known on the planet. In the British Isles alone, hundreds of sacred wells are active shrines still in existence today. Pilgrims from around the world regularly visit these locations to pray and leave offerings of devotion, for example at the well-known Saint Brigid’s Well in Ireland.

In England there are local grassroots efforts focused on restoring highly-revered holy wells by organizations such as the Machynlleth Civic Society and the Bishop of Salisbury. Local conservation projects such as well-dressing and blessing ceremonies celebrating the restoration of local holy wells, act to simultaneously restore the ecological and spiritual values held by the local community.

An example of proactively including cultural and ecological values in corporate decision making occurred when the Canadian energy company BC Hydro completed a recent ecosystem services review, during which it engaged local stakeholders and accounted for the spiritual and cultural values of water held by the nearby Pacific Northwest First Nations tribes. BC Hydro addressed these concerns about water management and spiritual traditions of neighboring communities when implementing a new water use planning process for its Campbell River hydropower facility on Vancouver Island.

In today’s water-conscious world, companies, governments and conservation leaders are expanding their water and ecosystem stewardship activities. Now, as organizations are assessing the immediate effects of their policies on local stakeholders and the ecosystem services that stakeholders depend on, the cultural and spiritual values of water need also to be accounted for.

Water is more than just the clear liquid that flows out of the tap. It is also the sustenance of human cultural and spiritual well-being, and needs to be valued as such.

Eric Landen is the founder and president of Landen Consulting, an environmental strategy consulting firm that helps organizations quantify and integrate the ecological and social values of natural ecosystems into business and public-sector decision-making. We provide specialized expertise in helping organizations address their strategic dependence and impact upon ecosystem services and biodiversity, including guidance on how water resources interconnect with stakeholder social and cultural values.

This post is an expanded version of an article originally requested by the Water Wide Web, who asked for an exploration of the cultural and spiritual issues associated with water management policies.

We will also explore emerging developments within and across disciplines, systems and scales, contributing to the dialogue that is evolving and extending our shared human and ecological knowledge, potential, and experience.