With the increasing global challenge of ecosystem degradation, it has become clear that governments alone have been unable to prevent the loss of biodiversity on which functioning ecosystems and local communities rely. At the same time, private businesses with grassroot connections to the regions in which they operate are becoming increasingly aware of the opportunities associated with the fostering of biodiversity beyond the requirements of government regulation. Responsible enterprises play an especially crucial role in places where large scale informal activity, such as deforestation, is difficult to control from central government offices.
Common agendas Within this context, New Ventures – an enterprise development programme of the World Resources Institute (WRI) – was pleased to participate in COP-8 as the event brought together leaders from government, civil society and business who understand the importance of developing common agendas to address this complex problem. We witnessed this engagement firsthand as co-organizers of a two day event exploring the role of the business in biodiversity conservation hosted by the Fundação Brasileira para o Desenvolvimento Sustentável (FBDS). The workshop presented a range of business endeavours that are beneficial for biodiversity (1). Linax Extração de óleos essenciais Ltda, has developed a process for extracting essential oils used for perfumed products from the basil plant, a sustainable alternative to the harvesting of the endangered Pau Rosa (Rosewood) from the Amazon Forest. Linax is one of over 100 ‘green’ Small and Medium-sized Enterprises (SMEs) supported by New Ventures in Brazil, China, India, Indonesia and Mexico. The programme provides professional mentoring and investor contacts. In Brazil in particular, New Ventures has observed the steadily rising pressure on the country’s exceptional biodiversity resources, on one hand, but also the creativity and innovative thinking of the country’s small business entrepreneurs, on the other.
Entrepreneurial talent Having witnessed the potential of this entrepreneurial talent, New Ventures believes that the SME sector can be a driving force for business that operates in harmony with the environment and local communities. While there is much to be learned about small enterprises and their environmental impacts, we know that in emerging economies, they are heavily involved in the ecological future of their countries. The pervasiveness of SMEs means they can be a powerful force in damaging or protecting the environment. The small size of these companies means that they often bypass environmental standards created with larger companies in mind. At the same time, SMEs lack the support to tackle environmental issues at a scale appropriate to their business. Decision VIII/17 agreed in Curitiba reflects the importance of engaging local entrepreneurs to conserve biodiversity, noting that SMEs need assistance to ensure that their processes and operations are designed with an element of sustainability. New Ventures has worked with a number of small companies that are driving a local conservation agenda and would greatly benefit from additional support. Primar, an organic shrimp company from Brazil, is establishing a network of local farmers who adopt sustainable aquaculture practices. Jiangyou Xun Pai Organic Agriculture Co., a Chinese producer of organic roses, has independently trained hundreds of farmers in organic agricultural methods. Many ‘biodiversity based’ businesses are relatively small enterprises, often in the start-up phase and are not yet fully self-sufficient. Efforts to promote these businesses have yet to achieve scale. They tend to focus on assisting individual businesses rather than nurturing entire supply chains or markets.
Achieving scale We therefore commend Parties for inviting organizations to develop and promote business models focused on biodiversity. The need for more of these scalable models has led WRI to consider complementing its enterprise development services with a biodiversity business incubator that would provide support specifically to start-ups in biodiversity based sectors. There is a plethora of anecdotal evidence available showing that small companies can be important drivers of innovation in finding ways to profitably practice biodiversity conservation. As a supporter of sustainable SMEs, New Ventures houses dozens of such examples. For us, one of the highlights of attending COP-8 was seeing that so many other public and private sector representatives, as well as the development and not for profit communities, agree that a real solution to the biodiversity challenge as a global issue must include contributions by all stakeholders, from big government agencies to small businesses. Such a multi-pronged approach helps build sustainable markets and ensure the conservation of the species we all depend upon, whether as potential medical cures or local food sources.
Mareike Hussels is Associate and
Derek Newberry is Researcher, Markets and Enterprise Program, World Resources Institute (WRI).
(1) The agenda is available
here.
See also:
New Ventures.org