Smart resource management: good for nature, people and business

Resource scarcity has been a frequent topic at the World Economic Forum in recent years, and for good reason.

Between now and 2050, the world’s population will grow by an additional 2 billion people. Over the same period, millions of people will be lifted out of poverty. By 2030, nearly two thirds of the global population–as opposed to today’s one quarter–could be middle class.

Rising incomes, of course, are a good thing.  But a rapidly growing and more affluent population are straining the natural systems on which natural diversity, human health and prosperity depend.

The good news is that corporations and governments increasingly recognize the need to balance development with sound ecological standards and are seeking advice on how to effectively achieve these twin goals. I saw strong evidence of that trend today in Davos, where I led a panel that included CEOs of multinational beverage, food and mining companies, and senior government environmental ministers, and leaders of international aid organizations.

Despite the diverse range of perspectives, the panelists all agreed on one thing: Nature conservation isn’t just an aesthetic “luxury”–it’s an essential investment in human well-being and economic growth.

Take water, for example–a resource already in short supply.  More than 1 billion people worldwide currently lack access to clean water, with rising temperatures only further compounding the problem.

And water challenges affect more than basic human and ecological health. Water is essential to economic productivity and virtually every aspect of our quality of life, including growing the food we eat, manufacturing the products we buy and supplying electricity to our homes. As global water scarcity intensifies, multinational corporations are increasingly concerned about their water-related business risks. Companies risk running out of clean water for their operations, and their water use can impact other water users and ecosystems.

Until recently, diverse stakeholders–governments, businesses, development organizations, and conservation organizations like The Nature Conservancy–have tended to address these challenges in a one-off “siloed” manner. That doesn’t work. As one panelist noted, companies can save enormous amounts of water by using more energy, or save energy by using more water.   The key, however, is figuring out how to do both. Likewise, reducing carbon emissions can unintentionally hurt the food industry’s ability to feed hungry people, as more and more lands are converted for biofuel production.

Balancing such tradeoffs isn’t easy.  But it’s clear that we need more integrated approaches to resource management. And integration must go both up and down the supply chain. Panelists agreed that reducing resource use should continue to be a top priority for their companies — and they are making great progress — but their suppliers are also key players.  Companies must tackle resources challenges on an integrated basis with suppliers and customers.

Fortunately, tackling these challenges doesn’t always require high-tech, expensive intervention. For example, according to one panelist, better roads in developing countries — in order to reduce extraordinary traffic jams — could be an important way to address air pollution and carbon emissions in many emerging markets. Likewise, wasteful water leakage in agriculture can be addressed most quickly and effectively by better valves and pipes rather genetically-modified crop varieties that require less water.

What’s also clear is the need to move quickly.  As one CEO noted, for example, it’s time to stop debating

the future impacts of climate change. We are already seeing those impacts.  From rising sea levels to rivers running dry, rising temperatures pose urgent and serious threats to natural systems and to the people, plants and animals, and economies that they sustain.

I’ve been encouraged by the sense of urgency, coupled with cautious optimism, that I’ve seen in Davos this week. Key players in government, business, and civil society understand that integrated approaches to resource management need to be accelerated and prioritized. Positive impacts are already being achieved. If we can enhance and improve collaboration, focus on holistic approaches, scale up programs, and recruit more participants, there is reason to be encouraged.

The good programs we’re hearing about this week really do work. Now they need to be taken to scale, urgently.

Mark Tercek is president and CEO of The Nature Conservancy.

Brazil’s tropical wetland area, known as the Pantanal, is a little gem of biodiversity that is home to 35 million -alligators and inumerous types of -birds and -reptiles. The billion-dollar “hidrovia” expansion project of the Parana river aims to dig a deeper channel along 2,100 miles of South America’s second-largest river, and try to boost exports of soy beans and iron ore, bringing jobs and riches to Brazil, Uruguay, Paraguay, Argentina and Bolivia. The end result could be imminent flooding of the plains and wiping out the flora and fauna-rich wetlands