Corporate Ecosystem Services Review Training Case Study: Mondi

World Resources Institute

Corporate Ecosystem Services Review Corporate Ecosystem Services Review TrainingTraining

Case Study: Mondi


Case study: Case study: MondiMondi


Wetland/riparian rehabilitationWetland/riparian rehabilitation

Zohar wetland before


Zohar wetland 1 year after

Wetland/riparian rehabilitationWetland/riparian rehabilitation


1. Select the scope

Steps in the Corporate Ecosystem Services ReviewSteps in the Corporate Ecosystem Services Review


Step 1. Scope: South Africa Mondi plantationsStep 1. Scope: South Africa Mondi plantations

SiyaQhubeka

Tygerskloof

Shanduka


2. Identify priority ecosystem services

1. Select the scope


ECOSYSTEM SERVICES DEPENDENCE AND IMPACT MATRIX

Dependence Dependence DependenceProvisioning

Crops ○ - Livestock ● - Capture fisheries Aquaculture Wild foods ○ + Timber and other wood fibers ● + Other fibers (e.g., cotton, hemp, silk) Biomass fuel ○ ● + Fresh water ● ● - Genetic resources ○ ○ ? Biochemicals, natural medicines, and' pharmaceuticals ○ +

RegulatingAir quality regulation ? ? Global climate regulation ○ ● + Regional/local climate regulation ○ ○ + Water regulation ● ● - Erosion regulation ○ ○ - Water purification and waste treatment ○ - Disease regulation Pest regulation Pollination Natural hazard regulation

CulturalRecreation and ecotourism ● + Ethical values ○ +

Ecosystem services ImpactImpact Impact

Customers Company operationsSuppliers

Key ● High + Positive impact ○ Medium - Negative impact Low ? Don't know


3. Analyze trends in priority services


1. Select the scope



Reconciliation of water requirements and availability (million m3/a)

SiyaQhubeka Tygerskloof Shanduka Balance

Sub-area name yr. 2000 yr.

2025a yr.

2025b

Mkuze X X -15 -14 -14

Mfolozi X X -47 -46 -50

Mhlatuze X 2 -3 -69

Mkomazi X -68 -69 -70

Mgeni X -90 -263 -606

Umzimkulu X -34 -34 -35

Mvoti X -32 -36 -41

National Water Resource Strategy, First Edition, September 2004. Appendix D Page D11.1 (Mvoti to Umzimkulu WMA) and Appendix D Page D6.1 (Usutu to Mhlatuze WMA).

Step 3. Trends analysis: FreshwaterStep 3. Trends analysis: Freshwater


Step 3. Trends analysis: Experts consultedStep 3. Trends analysis: Experts consulted

Name Organization Subject Matter ExpertiseDr. RJ (Bob) Scholes CSIR - Pretoria MA, Natural Rscs & Environment

Dr. Brian van Wilgen CSIR - Stellenbosch Alien Invasive Plants

Dr. Russell Wise CSIR - Pretoria Payments for Ecosystem (Catchment) Services

Dr. Marius Claassen CSIR - Pretoria Water Resources Policy

Ralph E H Sims International Energy Agency (Renewable Energy Unit) Biomass and renewables

Dr. Timm Tennigkeit UNIQUE forestry consultants Biomass and bioenergy

Dr. Anna Spenceley Private Consultant Ecotourism

Prof. Roland Schulze UKZN Climate Change and Hydrology

Dr. Chris Dickens Institute of Natural Resources Catchment Management

Mark Gush CSIR & UKZN Water Modeling

Arthur Chapman CSIR - Stellenbosch Climate Change and Hydrology

Dr. Donovan Kotze UKZN Wetlands

Jeremy Goodall Plant Protection Research Institute Working for Water

Myles Mander Future Works! Cattle Grazing, PES

Monique Salomon Centre for Environment, Agriculture, and Development Cattle Grazing

Andrew Pott Clear Pure Water Water Trading


Step 3: Trends analysis: FreshwaterStep 3: Trends analysis: Freshwater

1. Condition and trends • 6 of 7 catchments over-allocated• All catchments projected deficit by 2025

2. Direct drivers • Over-consumption• Climate change lowering rainfall and

soil moisture • Water-dependent invasive species

spreading beyond plantation

4. Activities of others • Major users

– Irrigation: 62%– Urban: 27%

• Poor management on nearby farms (irrigation, crop-soil matching)

3. Company activities• Eucalypt and pine

increase water demands

• Wetland, riparian and grassland management increases water quality

5. Indirect drivers• Entitlements increasingly unclear• Population growth ~ 0.4% / yr • Economic growth ~ 5.0% / yr


4. Identify business risks and opportunities



1. Select the scope



Step 4. Risks and opportunitiesStep 4. Risks and opportunities

Priority ecosystem service

Potential risks Potential opportunities

Freshwater

Biomass fuel Global climate regulationRecreation & ecotourism

Livestock


Step 4. Risks and opportunitiesStep 4. Risks and opportunitiesPriority

ecosystem servicePotential risks Potential opportunities

Freshwater

• Increased water scarcity due to:– Invasive species – Nearby farmers – Climate change

• Internal efficiency improvements

• (Co) financing improvements of nearby farmers

Biomass fuel • Use plantation residue in Mondi

generator• Sell plantation in biomass-to-

energy markets

Global climate regulation

• Emerging markets for carbon sequestration

Recreation and ecotourism

• Ecotourism market potential

Livestock• Grazing reducing productivity

• Perceived “under-utilization” of Mondi land by nearby farmers


5. Develop strategies

4. Identify business risks and opportunities



1. Select the scope



Step 5. Step 5. Invasive Species: Biofuel potentialInvasive Species: Biofuel potential

After ClearingBefore Clearing


Step 5. Step 5. Financing external water efficienciesFinancing external water efficiencies


Step 5. Step 5. Ecotourism potentialEcotourism potential


Step 5. Prioritizing opportunitiesStep 5. Prioritizing opportunities

Opportunity Possible ROI

Other benefits

Ease of imple-

mentation

Timing

1. Implement additional internal water efficiency improvements

H M H Year 1

2. Use invasive species for biomass fuel H M H Year 2

3. Acquire additional water entitlements by (co) financing water efficiency improvements of upstream landowners

M H L Year 2

4. Promote woodlots on marginal agricultural lands

M H M Year 2

5. Promote coppiced woodlots for biomass fuel

M H M Year 2

6. Partner with park to capture eco-tourism value

L H M Year 2

7. Engage policymakers to improve fresh water resource use policies

M H L Year 3

H High

M Medium

L Low


www.wri.org/ecosystems/esr

Corporate Ecosystem Services Review Training Case Study: Mondi

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