Business Case of Ecosystem Services Economic Valuation - Eletropaulo
The Trends in Ecosystem Services (TeSE) business initiative was launched in 2013 by the Center for Sustainability Studies at Getulio Vargas Foundation (FGVces) with the purpose of developing strategies and tools targeted at business management of impacts, dependencies, risks and opportunities related to ecosystem services1. Since then, the project has elaborated guidelines for the monetary and non-monetary valuation of 10 ecosystem services and guidelines for the reporting of environmental externalities, and has also developed over 50 business cases for the valuation of eco- system services.
TeSE team supports companies to develop their cases, aiming at testing the applicability of methods, helping enhancing the Guidelines and, mainly, creating pioneer business references to use valuation of ecosystem services, contributing to future application and incorporation of that agenda into business management.
After five years supporting business cases and discussions in meetings with TeSE member companies, the next step is quite clear: explore and communicate the connections of ecosystem service valuation results with financial demonstrations and the business language, seeking to contribute to incorporate natural capital2 into business management, reducing risks and leveraging opportunities.
That is the context in which this study emerged and it seeks to delve deeper into the application of ecosystem service valuation methods to economic and financial feasibility studies in the real business challenge proposed by Eletropaulo to assess alternative uses for safety clearances under the company’s subtransmission lines. This business case is supported by Devese 3.03 and describes the experiences of the process; assumptions, calculations and results of the projects assessed; and provides a few reflections and lessons learned. The goal is to have the case as a source of inspiration, considering different contexts require specific assessments, applications, caution and reflection. The development of this pilot study counted with the efforts of Eletropaulo’s Environment department, supported by TeSE team and by a consultant specialized in economic valuation of ecosystem services, in partnership with TEEB Regional-Local Project.