5 September 2016: The Economics of Land Degradation (ELD) Initiative has released a report titled, ‘Economics of Land Degradation Initiative: Report for the Private Sector: Sustainable land management – A business opportunity,’ which provides a detailed analysis of the economic incentives for the private sector to take action for sustainable land management (SLM) and the role of multi-stakeholder partnerships with civil society and governments to facilitate engagement of the private sector. In addition to the report, the ELD has also launched an ‘ELD Business Toolkit’ and ‘Land Materiality Screening Tool.’

The report recommends that the private sector, among other actions: develop a clear understanding of the economic risk from land degradation; assess options to reshape production, sourcing and management; apply long-term sustainability analyses of investments affecting land management; enable strong networks with public and governmental institutions; diversify business models; and develop a scaling-up process.

The first chapter outlines the business case of SLM. Estimating that land degradation causes losses of US$6.2 to 10.3 trillion annually, the report argues that businesses are increasingly affected through impacts on the supply chain. Degraded land is an under-performing asset that limits future growth and impacts current businesses relying on land-based ecosystem services. The chapter identifies opportunities and benefits of SLM to businesses and related risks and challenges, including: innovative market development for products and services that address land degradation; and improvements in existing markets.

The second chapter describes barriers to action and economic incentives. Barriers include: economic barriers, such as capital costs of SLM, periods without revenue, and project risk; technical barriers, focusing on lack of access to SLM technologies and related knowledge; cultural barriers, focusing on challenges in obtaining a social license to operate; and regulatory barriers, such as agricultural subsidies or insecure land tenure rights. Incentives include tax breaks and subsidies, intermediary support loans, public or private grants, and forest industry programs. The section notes that incentives can turn into “perverse incentives” by creating lock-in situations that prevent a complete transition towards SLM.

Chapter three describes business categories and investment options, including: farmers and individual small holders, small businesses providing goods and services; medium and large businesses; and multinational corporations. For each category, examples of private sector SLM investment examples are provided describing the rationale for investing, SLM investment options, methods and tools, risks and the respective policy context.

Chapter four discusses the role and benefits of partnerships, outlines steps in establishing partnerships and provides tools for identifying and evaluating potential NGO partners. The final chapter outlines pathways to action, makes recommendations and concludes that private businesses have an important role to play in maintaining and restoring land functions, in particular through multi-stakeholder partnerships.

The ELD has also released its Business Toolkit and Land Materiality Screening Tool. The ELD Business Toolkit is a web-based mechanism for assessing risks related to land management and identifying relevant SLM practices, while the Land Materiality Screening Tool aims to enable companies to better assess the significance of land to their business, create awareness of the importance of land degradation, and catalyze actions towards the implementation of SLM projects. The ELD Initiative highlighted that it is developing a series of related digital learning and blended learning activities under the auspices of its ‘Academy for Business and Landscapes,’ which is scheduled to be launched at the end of 2016.

The report and the Business Toolkit were launched on the sidelines of the International Union for Conservation of Nature (IUCN) World Conservation Congress (WCC), taking place from 1-10 September 2016 in Honolulu, US. [ELD Newsletter August 2016] [Economics of Land Degradation Initiative: Report for the Private Sector: Sustainable land management – A business opportunity] [ELD Business Toolkit] [The Land Materiality Screening Tool]