Munich Personal RePEc Archive

Contributions of the private sector to global biodiversity protection: case study of the fortune 500 companies

Bhattacharya, Tania Ray and Managi, Shunsuke (2012): Contributions of the private sector to global biodiversity protection: case study of the fortune 500 companies.

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Abstract

This paper assesses the current activities of U.S. Fortune 500 companies with respect to global biodiversity protection and the goals of the Convention of Biological Diversity (CBD). Data and information collected from five hundred companies within eight major industrial sectors was further categorized at the company level to assess each company’s involvement in global biodiversity protection. Our findings show that although companies’ business profiles highly influence their decision-making process regarding the adoption of biodiversity protection policies and measures, their revenue profiles are less influential. We show that despite generating low revenues, companies in the utility sector are more active in the adoption of biodiversity protection policy than are those in the financial sector, which generates high revenues. This study also demonstrates that companies must be convinced of the major effects of biodiversity loss on their bottom lines to be motivated to protect biological diversity. Companies’ business and business related risk profiles can also influence the adoption of biodiversity protection policies within the company. The study further demonstrates that a measurable biodiversity impact indicator is necessary for the companies to get seriously involved in the mitigation action. Finally this study proposes a three step biodiversity loss mitigation action framework which is drawn upon the assessment of the 500 companies which can contribute to develop an elaborative framework of business sector specific mitigation plan.

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