Environmental Markets

Business for Social Responsibility has launched a major, multiyear initiative to help businesses understand and address the world of ecosystem services. Ecosystem services refers to the "free" services that nature provides to business, such as crop pollination, soil erosion protection, water filtration, air cleaning, and other things? "How much are well-functioning environmental services like flood control and climate regulation worth to your company's bottom line? the organization asks in its announcement.

The 250-company membership organization also has published a new report, Environmental Markets: Opportunities and Risks for Business, describing market mechanisms being used by companies to protect ecosystem services (emissions trading, conservation banking, philanthropic programs); lists some of the risks companies face when they engage in environmental markets (high transaction costs, increased regulatory scrutiny, lack of guarantees) as well as the opportunities associated with engagement (regulatory certainty, avoid project delays, enhancing economic development in emerging markets); and suggests questions companies should ask to get started.