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5.5<br />
REWARDING BENEFITS THROUGH PAYMENTS AND MARKETS<br />
DEVELOPING MARKETS FOR<br />
GREEN GOODS AND SERVICES<br />
Market mechanisms that reflect the values of biodiversity<br />
are well established for some goods and services<br />
and have been growing steadily over the last decade 27 .<br />
This trend reflects the increasing awareness of many<br />
consumers and producers that conventional production<br />
and consumption practices threaten the long-term viability<br />
of ecosystems. This section outlines progress on<br />
market development in key sectors (5.5.1) and identifies<br />
barriers to the success of ‘green’ products and services<br />
(5.5.2) before considering ways to expand the reach of<br />
biodiversity-friendly markets (5.5.3).<br />
5.5.1 SUPPORT FOR BIODIVERSITY-<br />
FRIENDLY PRODUCTS AND<br />
SERVICES<br />
Market niches are available for products and services<br />
that can reliably distinguish themselves<br />
from their competitors by demonstrating conservation<br />
credentials, including:<br />
• products characterised by reduced direct impacts<br />
on biodiversity, due to adoption of more efficient<br />
or low-impact production and processing methods<br />
(e.g. reduced impact forestry or fisheries);<br />
• products with reduced indirect impacts on biodiversity<br />
as a result of decreased pollution load (e.g.<br />
biodegradable detergents);<br />
• products and services based on the sustainable<br />
use of ecosystem services and biodiversity (e.g.<br />
ecotourism or biotrade).<br />
While most product markets still do not treat biodiversity<br />
as a key concern, there is growing evidence from<br />
across the world that conservation can enhance a<br />
company’s competitive position and be an opportunity<br />
in all sectors. In some cases, biodiversityfriendly<br />
products and services can:<br />
• attract market share or premiums for certain<br />
products and their suppliers;<br />
• facilitate access to previously inaccessible markets<br />
or create entirely new markets;<br />
• offer enhanced product differentiation in increasingly<br />
competitive global markets;<br />
• reinforce and validate positive community relations<br />
and improved corporate image;<br />
• improve employee morale, retention and productivity;<br />
and<br />
• support the poor where they are directly involved<br />
in production (Bishop et al. 2008).<br />
BUSINESS ACTION ON GREENING<br />
SUPPLY CHAINS<br />
For most business sectors and companies, biodiversity<br />
conservation is still seen as a liability rather than a profit<br />
centre. The main drivers of private investment in biodiversity<br />
come from legal requirements, charitable impulses<br />
and informal pressure from shareholders, local<br />
communities and NGOs. The business case for such investment<br />
is more often expressed in terms of protecting<br />
firms’ market share or minimising risk to reputation.<br />
However, there are exceptions. Some retailers committed<br />
themselves in the early 1990s to stock only timber<br />
products certified as meeting strict environmental performance<br />
standards. For example, the B&Q Do-It-<br />
Yourself chain in the UK, owned by Kingfisher, was one<br />
of the companies responsible for setting up the Forest<br />
Stewardship Council (see below) to provide a credible<br />
mechanism to demonstrate responsible purchasing of<br />
timber products.<br />
Such private voluntary actions can help make markets<br />
work better for the environment. When large companies<br />
choose to direct their purchasing power in a particular<br />
direction, they can have a large impact on trade and<br />
production practices around the world. Such initiatives<br />
require vision and commitment from the top as well as<br />
<strong>TEEB</strong> FOR NATIONAL AND INTERNATIONAL POLICY MAKERS - CHAPTER 5: PAGE 45