How Businesses Can Help Make Half-Earth a Reality (Part 2 of 5): Alleviating Habitat Destruction

In part two of this five-part blog series (which I originally wrote for the Half-Earth Project at this link), we’ll look at the #1 issue that impacts wildlife and biodiversity today: habitat destruction.

The term “habitat destruction” can refer to the complete destruction of a habitat or, more commonly, habitat fragmentation, where a large, continuous area of a habitat is divided into two or more fragments. The primary culprit behind habitat destruction is a change in land use. The most common forms include clearing land for agricultural use, extractive industries like logging or mining, and expanding urban or residential development.

The World Wildlife Fund estimates that forests cover about 31% of the land area on Earth and, for a variety of reasons, we’re losing about 46,000 to 58,000 square miles of forest each year—roughly equivalent to losing 48 football fields every minute. In the Amazon alone, we’ve lost about 17% of the forest over the past 50 years, mostly due to forest conversion for cattle ranching.

This loss of habitat has a massive impact on biodiversity and wildlife. However, it can also hit closer to home for many of us as we shelter at home for COVID-19. A recent article “How biodiversity loss is hurting our ability to combat pandemics” published on March 9, 2020 from the World Economic Forum states that 31% of disease outbreaks, such as Ebola and Zika, are linked to deforestation. This is because deforestation forces animals to move out of their natural habitats to new areas that are in closer proximity to human populations. When wildlife moves closer to human populations, there is an increased risk of disease transmission between wildlife and humans.

What can businesses do to alleviate the issue of habitat destruction?

There are five common strategies that corporations use to combat habitat destruction, four of which we will cover here: avoidance; minimization; rehabilitation and restoration; and biodiversity offsets and voluntary compensatory actions. The fifth major strategy—supply chain management—we’ll cover later in this 5-part series.

The first—and best—strategy that companies can adopt to address habitat destruction and biodiversity loss is a simple one: avoid any development or operations in areas identified as important habitat for species that are classified as endangered, threatened or vulnerable to extinction; or areas that have been identified as critical for the conservation of biodiversity because of existing species richness.

On land that is not categorized as an avoidance zone, corporations shift their attention towards minimization strategies that reduce the duration, intensity and extent of their impacts for biodiversity and wildlife. Minimization strategies can take a wide variety of forms, including site selection strategies, operational policies and procedures, wildlife corridors and green roofs. For example (which I also shared in my Edge Effects blog post), to transport material and facilities needed for a project located near the fragile Tibetan plateau of the Sanjiangyuan National Nature Reserve, workers from the State Grid Corporation of China used an “Electricity Caravan” of horses rather than build roads or bridges in this ecologically sensitive area. In another example, companies such as Facebook, Macy’s, and Ford have installed green roofs, which not only save money, but also provide habitat for a variety of insects and birds.

This image has an empty alt attribute; its file name is habitat-destruction-640.jpg
Green Roof on the ACROS Fukuoka Prefectural International Hall in Fukuoka City, Japan

In situa­tions where avoidance and minimization are not practical or feasible, companies may turn to a third strategy: rehabilitation and restoration. With this strategy, a company attempts to rehabilitate degraded ecosystems or restore cleared ecosys­tems in areas that have previously been cleared, developed or neglected. In another example from China, The China National Petroleum Corporation (CNPC) pursued an ecological restoration effort as part of its Western Pipeline project. As soon as the new pipes were laid down and buried, CNPC planted vegetation to restore the original landscape and followed up with annual monitoring and remediation measures.

If avoidance, minimization and restoration strategies aren’t viable options, then companies may pursue a fourth strategy: biodiversity offsets and voluntary compensatory actions. A well-known example of a voluntary compensatory action is Walmart’s Acres for America Program (a topic I covered in an earlier blog post), which has a goal to conserve one acre of wildlife habitat for every acre of land developed by Walmart stores.

So where does the Half-Earth Project fit in? The Half-Earth Project is creating a global map of fine resolution species distribution that will provide companies with a unique tool for decision-making in support of biodiversity. The Half-Earth Map can be used to see where various species groups have rich or rare populations, so that companies can avoid development in these special places. The Half-Earth Map can also be used to identify the places that offer the best opportunity to offset biodiversity impacts through conservation management of land that is particularly rich in biodiversity. This tool can guide and ensure that conservation investments are happening in the optimal places for biodiversity while also showcasing the biodiversity value that these kinds of investments can bring to these places.

That wraps up our whirlwind tour of how corporations can address the biodiversity threat of habitat destruction, and how the Half-Earth Project can help corporations make sound decisions that are good for business and good for biodiversity.

In next week’s post, we’ll turn our attention to the #2 threat to biodiversity: invasive species. See you then!

Thanks for reading!

Mark

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Mark Aspelin is the Founder of Corporations for Biodiversity and author of the highly rated book “Profitable Conservation: Business Strategies That Boost Your Bottom Line, Protect Wildlife, and Conserve Biodiversity.”

Walmart and Biodiversity Conservation (Part 2 of 2): Zero Net Deforestation

“Our world is increasingly transparent and we’re out to earn trust. When people shine a light on Walmart and see our decisions – the jobs we create, the activities in our supply chain – we want them to like what they see.”
—Doug McMillon, CEO of Walmart

To continue our discussion from last week’s post about Walmart’s approach to biodiversity conservation, today we’ll focus on Walmart’s goal of Zero Net Deforestation.

To determine how to tackle this goal, Walmart first reviewed studies and learned that certain agricultural commodities, such as palm oil, soy, cattle, and timber, were driving most deforestation in the world, so that’s where the company decided to focus its attention. Walmart then sought to address the major drivers of deforestation in its operation and supply chain for each of these commodities, which we’ll highlight below.

Palm oil. In 2010, Walmart set a goal to sustainably source any palm oil that is used in its global private-brand products. The company also encourages its national-brand suppliers to source palm oil from sustainable sources. By the end of 2015, 100% of Walmart’s private-brand palm oil was sourced sustainably in accordance with the certification standards of the Roundtable on Sustainable Palm Oil (RSPO), which included the use of the following supply chain models: Mass Balance, Segregated, Identity Preserved, and Credits. In 2017, Walmart decided to adopt a more rigorous approach of only using the RSPO criteria of Mass Balance or Segregated supply chain systems, or equivalent standards, by the end of 2020.

What the heck does all of that mean? Here are the RSPO definitions that should help make things a bit clearer:

  • Identity Preserved Supply Chain Model: Sustainable palm oil from a single identifiable certified source is kept separately from ordinary palm oil throughout supply chain.
  • Segregated Supply Chain Model: Sustainable palm oil from different certified sources is kept separate from ordinary palm oil throughout supply chain.
  • Mass Balance Supply Chain Model: Sustainable palm oil from certified sources is mixed with ordinary palm oil throughout supply chain.
  • RSPO Credits / Book & Claim Supply Chain Model: The supply chain is not monitored for the presence of sustainable palm oil. Manufacturers and retailers can buy Credits from RSPO-certified growers, crushers and independent smallholders. RSPO’s traceability system for certified palm products is called PalmTrace.

As reported in its 2019 Environmental, Social & Governance Report, the breakdown of Walmart’s Palm Oil supply chain models is as follows:

  • RSPO Identity Preserved: 0.02%
  • RSPO segregated or equivalent: 12.87%
  • RSPO Mass Balance: 47.38%
  • Palmtrace Credits: 39.72%

In other words, Walmart has some work to do in order to transition away from the use of Palmtrace Credits (~40% of its supply chain methodology in calendar year 2018) in order to accomplish its revised 2017 goal. As result, Walmart is now looking for ways to move towards sources of certified, sustainable palm oil that have been physically verified. The company is also determining how it can best support an industry-wide movement as the industry transitions to 100% traceability for sources of palm oil.

Beef. In 2016, Walmart achieved its goal to only source “sustainable beef” that is not associated with deforestation of the Amazon rainforest by getting 100% of its Brazilian beef suppliers to participate in Walmart’s Beef Risk Monitoring System. To monitor its supply of beef, Walmart created a geospatial monitoring system that tracks suppliers, volumes, and over 75,000 registered farm locations, and the data are combined with maps that show where deforestation is taking place. The tool then analyzes Walmart orders to ensure that no beef comes from deforested areas. Beef suppliers are trained to manage geographical information at their slaughterhouses and input the coordinates of their suppliers’ farms into the system. The company is now working to expand the program to include cow-calf operations to address the risk that cattle might be traded from high-risk ranches to approved ranches, and the risk that ranchers who contribute to deforestation may re-register their operations under different names. As the program expands, other sensitive biomes outside of the Amazon will be included, such as the Cerrado tropical savanna ecoregion of Brazil.

Soy. Walmart is working with its supply chain and the Consumer Goods Forum to acquire soy through deforestation-free channels. Walmart supports an indefinite extension for the Soy Moratorium in the Amazon region of Brazil, which has helped reduce the amount of Brazilian soy that comes from deforested areas from 30% to 1%. The company also supports the expansion of the Soy Moratorium to other parts of Brazil where a similar approach is needed.

Pulp and paper products. To address deforestation through logging for timber, Walmart is working to reduce packaging materials and ensure that pulp and paper products are purchased from sustainable sources. The company set a goal of zero-net deforestation associated with its private brand products and is encouraging its national-brand suppliers to set similar goals. Walmart uses a Sustainability Index to measure and track supplier performance based on the percentage of virgin fiber. For the calendar year 2018, the percentage of private-brand pulp and paper volume certified by the Forest
Stewardship Council, Programme for the Endorsement of Forest
Certification, Sustainable Forestry Initiative, or is using recycled content, was reported to be 91%.

To help promote transparency and traceability across its supply chains, in 2017, Walmart joined the World Resources Institute and 20 other companies to launch Global Forest Watch Pro. Global Forest Watch Pro is an online platform that provides companies, banks and other stakeholders with data and tools for monitoring global forest loss due to the production of key commodities such as palm oil, soy and Brazilian beef. The online platform’s algorithms leverage the use of cutting-edge satellite technology and cloud computing to provide real-time information about where and how forests are changing around the world.

I hope you enjoyed this two-part overview of Walmart’s approach to biodiversity conservation. I’ll be back next week with a new topic or case study that highlights the role of corporations in protecting our planet’s biodiversity.

Thanks for reading!

Mark

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Mark Aspelin is the Founder of Corporations for Biodiversity and author of the highly rated book “Profitable Conservation: Business Strategies That Boost Your Bottom Line, Protect Wildlife, and Conserve Biodiversity.”