Corporate Ecosystem Services Review Training Case Study: Mondi World Resources Institute Case study: Mondi World Resources Institute Wetland/riparian rehabilitation Zohar wetland before World Resources Institute Wetland/riparian rehabilitation Zohar wetland 1 year after World Resources Institute Steps in the Corporate Ecosystem Services Review 1. Select the scope World Resources Institute Step 1. Scope: South Africa Mondi plantations Tygerskloof SiyaQhubeka Shanduka World Resources Institute Steps in the Corporate Ecosystem Services Review 1. Select the scope 2. Identify priority ecosystem services World Resources Institute ECOSYSTEM SERVICES DEPENDENCE AND IMPACT MATRIX Key ● High ○ Medium Low + Positive impact - Negative impact ? Don't know Suppliers Ecosystem services Provisioning Crops Livestock Capture fisheries Aquaculture Wild foods Timber and other wood fibers Other fibers (e.g., cotton, hemp, silk) Biomass fuel Fresh water Genetic resources Biochemicals, natural medicines, and ' pharmaceuticals Regulating Air quality regulation Global climate regulation Regional/local climate regulation Water regulation Erosion regulation Water purification and waste treatment Disease regulation Pest regulation Pollination Natural hazard regulation Cultural Recreation and ecotourism Ethical values Dependence Company operations Impact Dependence Impact ○●- ○+ ●+ ○ ● ○ ●+ ●○? ○+ ○ ○ ● ○ ? ● ○ ● ○ ○ ? + + - ●+ ○+ Customers Dependence Impact Steps in the Corporate Ecosystem Services Review 1. Select the scope 2. Identify priority ecosystem services 3. Analyze trends in priority services World Resources Institute Step 3. Trends analysis: Freshwater Reconciliation of water requirements and availability (million m3/a) SiyaQhubeka Sub-area name Mkuze Mfolozi Mhlatuze Mkomazi Mgeni Umzimkulu Mvoti X X X Tygerskloof Shanduka X X X X X X yr. 2000 -15 -47 2 -68 -90 -34 -32 Balance yr. 2025a -14 -46 -3 -69 -263 -34 -36 yr. 2025b -14 -50 -69 -70 -606 -35 -41 National Water Resource Strategy, First Edition, September 2004. Appendix D Page D11.1 (Mvoti to Umzimkulu WMA) and Appendix D Page D6.1 (Usutu to Mhlatuze WMA). World Resources Institute Step 3. Trends analysis: Experts consulted Name Organization Subject Matter Expertise Dr. RJ (Bob) Scholes CSIR - Pretoria MA, Natural Rscs & Environment Dr. Brian van Wilgen CSIR - Stellenbosch Alien Invasive Plants Dr. Russell Wise CSIR - Pretoria Payments for Ecosystem (Catchment) Services Dr. Marius Claassen CSIR - Pretoria Water Resources Policy Ralph E H Sims International Energy Agency (Renewable Energy Unit) Biomass and renewables Dr. Timm Tennigkeit UNIQUE forestry consultants Biomass and bioenergy Dr. Anna Spenceley Private Consultant Ecotourism Prof. Roland Schulze UKZN Climate Change and Hydrology Dr. Chris Dickens Institute of Natural Resources Catchment Management Mark Gush CSIR & UKZN Water Modeling Arthur Chapman CSIR - Stellenbosch Climate Change and Hydrology Dr. Donovan Kotze UKZN Wetlands Jeremy Goodall Plant Protection Research Institute Working for Water Myles Mander Future Works! Cattle Grazing, PES Monique Salomon Centre for Environment, Agriculture, and Development Cattle Grazing Clear Pure Water Water Trading Andrew Pott World Resources Institute Step 3: Trends analysis: Freshwater 1. Condition and trends • 6 of 7 catchments over-allocated • All catchments projected deficit by 2025 3. Company activities • Eucalypt and pine increase water demands • Wetland, riparian and grassland management increases water quality 2. Direct drivers • Over-consumption • Climate change lowering rainfall and soil moisture • Water-dependent invasive species spreading beyond plantation 4. Activities of others • Major users – Irrigation: 62% – Urban: 27% • Poor management on nearby farms (irrigation, crop-soil matching) 5. Indirect drivers • Entitlements increasingly unclear • Population growth ~ 0.4% / yr • Economic growth ~ 5.0% / yr World Resources Institute Steps in the Corporate Ecosystem Services Review 1. Select the scope 2. Identify priority ecosystem services 3. Analyze trends 4. Identify business risks and in priority opportunities services World Resources Institute Step 4. Risks and opportunities Priority ecosystem service Potential risks Potential opportunities Freshwater Biomass fuel Global climate regulation Recreation & ecotourism Livestock World Resources Institute Step 4. Risks and opportunities Priority ecosystem service Freshwater Potential risks • Increased water scarcity due to: – Invasive species – Nearby farmers – Climate change Potential opportunities • Internal efficiency improvements • (Co) financing improvements of nearby farmers • Use plantation residue in Mondi generator • Sell plantation in biomass-toenergy markets Biomass fuel • Emerging markets for carbon sequestration Global climate regulation Recreation and ecotourism • Ecotourism market potential • Grazing reducing productivity Livestock • Perceived “under-utilization” of Mondi land by nearby farmers World Resources Institute Steps in the Corporate Ecosystem Services Review 1. Select the scope 2. Identify priority ecosystem services 3. Analyze trends 4. Identify business risks and in priority opportunities services 5. Develop strategies World Resources Institute Step 5. Invasive Species: Biofuel potential Before Clearing After Clearing World Resources Institute Step 5. Financing external water efficiencies World Resources Institute Step 5. Ecotourism potential World Resources Institute Step 5. Prioritizing opportunities Opportunity H High M Medium L Low Possible ROI Other benefits Ease of implementation 1. Implement additional internal water efficiency improvements H M H Year 1 2. Use invasive species for biomass fuel H M H Year 2 3. Acquire additional water entitlements by (co) financing water efficiency improvements of upstream landowners M H L Year 2 4. Promote woodlots on marginal agricultural lands M H M Year 2 5. Promote coppiced woodlots for biomass fuel M H M Year 2 6. Partner with park to capture ecotourism value L H M Year 2 7. Engage policymakers to improve fresh water resource use policies M H L Year 3 Timing World Resources Institute www.wri.org/ecosystems/esr World Resources Institute