Business case
The food, beverage and tobacco (FBT) sectors' reliance on ecosystem services or 'bio-dependency' exposes them to risks that impact investment return and cause unforeseen liabilities. Greater scrutiny by investors and consumers of companies' responses to environmental issues, coupled with high profile NGO campaigns related to charismatic species or habitats, create unforeseen reputational and brand risks.
A strong business case for understanding and controlling impacts on biodiversity is emerging for the FBT sector. However the complex web of supply makes managing this issue particularly challenging. Companies exposed to these risks are often many levels up from where the impact actually occurs. The ability of even the largest brands to trace the sources of their products and to influence what happens at primary producer level may be limited.
Companies that understand and respond effectively to these issues can gain first mover advantage. Equally brand value can be built and increased market share secured through product differentiation, based on compelling evidence of sound management practices.
For more on the business case for managing biodiversity and ecosystem service impacts and dependencies access the links above or see our case study section and the report Dependency and impact on ecosystem services – unmanaged risk, unrealised opportunity: A briefing document for the food, beverage and tobacco sectors (Fauna & Flora International 2008).
