BUSINESS AND ENVIRONMENT

The Environmental Context
Environment in Nepal faces acute challenges as a result of human and commercial activities. Degradation and depletion of forests, freshwater ecosystems, rivers, and mountain environment and pollution are visible changes we have personally witnessed over the past two decades. Excessive and unsustainable use of natural resources, lack of proper waste management and consciousness about environment are the primary reasons for the state of our environment today.

Continued trend will not only affect people and societies but also change the way businesses operate and their relations with consumers and the public.  Indifference to the degradation of the environment will have a direct impact on our lives, the growth of businesses and consumers. For example, degradation of rivers and mountain environment due to inconsiderate human behaviours, directly affect the dollar earnings of the tourism industry and ripple effects can be felt by transportation and other related industries.

Even though Nepal’s natural capital is being eroded at a rapid rate, there is still time for us to address the impact of environmental degradation by exploring options and practices applicable in Nepal through partnerships and collaborations.

Nepal Business and Environment Strategy
The Millennium Ecosystem Assessment, conducted by the United Nations from 2001-2005, has revealed that humans were responsible for the extensive degradation of the world’s ecosystem.  The positive side of the assessment states that conserving or enhancing ecosystem services including the provision of water and food, control of pests could reduce negative trade-offs and reverse the degradation process and create opportunities for businesses and consumers. Likewise, on 2 February  2007, a UN panel comprising of 2,500 climate scientists said conclusively that global warming was man-made and called for urgent action to prevent severe and irreversible damage to our environment.

Recognizing the private sector’s enormous influence on the sustainable economic progress and healthy environment of Nepal, Tara Management Private Limited, World Wildlife Fund (WWF) Nepal and The World Conservation Union (IUCN) Nepal have joined hands in partnership to bring the private sector on board to make real achievements in protecting the environment. The partnership’s objective is to facilitate the development of a national level Business and Environment Strategy (BES) that will serve as a practical guide for private and public sector leaders to formulate their organizational strategies to address the threats and opportunities that will shape Nepal’s economy. Once developed, the BES shall remain in the public domain. The dialogue leading to the process of strategy development will also open up avenues for long-term partnerships between interested business and conservation organizations to contribute back to nature in ways that will enhance business profitability and visibility through the implementation of shared programmes.

Synergy in Collaborative Approach
There are good reasons for the environment sector to collaborate with civil society, public and private sectors to address threats and explore opportunities to shape the Business and Environment Strategy that fits into the Nepalese context. Capitalizing on businesses that are major building blocks for development, the role of IUCNN,  WWFN and TMPL as facilitators will be to ensure the participation and contribution of rightful stakeholders. Synergy between many stakeholders responsible for, interested in and affected by environmental threats and challenges, is the only way to respond to achieving greater efficiency in environment protection and Nepal’s sustainable economic growth.

The Partnerships
The partnerships between the public and private sector in environment protection will yield a win-win situation. The partnership will ensure mutual understanding on how ecosystem services that are freely available today could cease to be available in future or become costlier in near future. Likewise, collaboration could be used to influence government policies towards the business sector, customer preference, availability of finance and insurance. Exploring new business opportunities through innovation
and new technologies could also be the start of a creative partnership to protect the environment and
reap benefits.

Environment and Opportunity
Examples of how addressing environment issues can positively impact profitability of businesses:
1.     Increased revenues and competitive advantage through product differentiation using eco-labels
2.     Potential for profitability through the introduction of innovative environmentally friendly products and services
3.     Cost savings in operations through increased efficiency (recycling, reusing, energy conservation, waste
        reduction, etc.)
4.     Capital gain through higher ratings in financial markets
5.     Supply chain risk management by ensuring that raw material cost is not increased as a result of increasing         demand and diminishing supplies
6.     Controversy risk management by avoiding being labeled as “polluters” or “eco-unfriendly”
7.     Risk management by compliance to secure legal license to operate

Opportunities for Engagement
The Nepalese private and NGO sectors can engage in the process of developing a vision for a biodiversity-rich Nepal and formulating strategies to protect the environment for a prosperous society through participation in interviews, surveys, meetings, workshops, etc. Interested organizations can also collaborate as partners in programme and implementation through joint initiatives.

Facilitating Organizations

IUCN Nepal
Founded in 1948 (working in Nepal since late 1960s) with the mission to influence, encourage and assist societies throughout the world to conserve the integrity and diversity of nature and to ensure that any use of natural resources is equitable and ecologically sustainable.

WWF Nepal
Established in 1961 (working in Nepal since late1960s) with the mission to stop degradation of  planet’s natural environment and to build a future in which humans live in harmony with nature.

Tara Management (P) Limited
TMPL is an investment and management company that manages diversified business portfolios in Nepal. TMPL also has a development arm, the Private Public Partnership Program, which serves as an interface of the corporate with the development sector.

For Further Details, Contact:

IUCN Nepal
P.O.Box 3923
Bakhundole, Lalitpur, Nepal
Tel: 5528781, 5528761, Fax: 5536786.
email: prakash@iucn.org.np