Operating in sensitive areas: reducing business risks

Unlike carbon emissions, which have a global effect, nature impacts are highly location-specific. This means that assessing and reducing impacts must account for the local context, including the particular ecosystems and biodiversity as well as the threats they face.

When considering your business interface with nature (how you affect natural systems and how they affect you) it is vital to think beyond your direct assets and operations. To get a full picture you should include your upward and downward activities (or value chain). To protect your business you need to know which of nature’s assets you need to operate, and how your activities might impact on ecosystems and biodiversity.

We have shown how to do this in previous ANIMONDIAL blogs, but here I want to focus on ecosystems. In particular, to recognise that some are more ‘sensitive’ than others, and to look at how business must apply additional safeguards to protect nature in sensitive locations.

All about ecosystems

Ecosystems are broadly classified as terrestrial (on land) or aquatic (below water). Terrestrial ecosystems include forests, deserts, grasslands, etc. Aquatic systems are divided into freshwater (lakes and rivers) and marine (seas and oceans).

Ecosystems rely on an abundance of living things, or biodiversity, which together with the physical environment, power them to sustain all life on Earth. Ecosystems may be considered “sensitive” if they are:

• vulnerable to change;
• unlikely to recover from impact; or
• there is a high biodiversity or ecological value.

Whether some or all apply, these places are rare and fragile, and their protection is essential for nature, climate stability and human well-being. Coral reefs, rainforests, alpine forests and the Arctic regions are all examples of sensitive ecosystems, which are more often than not given a high protection status by a governing authority.

Taking precautions

Businesses operating in sensitive ecosystems should always apply a “precautionary approach” – taking proactive measures to minimise impacts even if the damage is suspected but not yet proven. This requires regular monitoring of potential nature impacts, adopting sustainable and best practice measures, and adapting practices as new information becomes available.

HX Expeditions, which specialises in taking tourists to some of the world’s most sensitive ecosystems, applies a precautionary approach:

“At HX we operate in some of the most fragile ecosystems on Earth. Outside of normal operational monitoring, we investigate impacts through our industry-leading Science Program, working with researchers to identify and address risks. For example, our ships now host SOOP sensors that collect vital ocean data in these remote areas to support global climate and biodiversity research. Additionally, through the HX Foundation we fund restoration projects, helping to safeguard the environments we depend on.”

Expert knowledge

Understanding the integrity and importance of the ecosystems that interface with your business operations, and how you both depend and impact upon them, is essential to adopting effective nature safeguards.

While carbon emission reduction usually follows a standard approach, nature is different. The type and degree of nature impact, and associated material risk, will be dependent on the business, its operations and activities, and their interface with nature in the specific location(s).

Help when you need it

At ANIMONDIAL, we help tourism businesses evaluate their interface with nature, assess their dependencies and impacts, and evaluate the activities in their supply chain. We also work with clients to identify their material risks and opportunities, define their nature-related policies and priority actions, and find the best investments in nature in their location(s). Only through such a combined, nature positive approach can business truly demonstrate that their activities will not cause environmental harm.

Where to start

Start by asking these questions:

• How do the locations of your direct operations and value chain interface with sensitive areas for nature?
• What methodologies are you using to prioritise and evaluate your dependencies and impacts on nature, and over what time period?
• In which geographic locations do your material impacts and risks occur?
• What metrics are you using to measure and evaluate your impacts and dependencies?
• What measures are you taking in your key locations to reduce impacts and restore nature?

And if you need a hand with anything … you know who to call!

Daniel Turner, Director of Strategy

To find out more about how ANIMONDIAL’s services offer a complete nature positive approach see our website, download our Services Guide, or just get in touch.