The Private Sector and Renewable Natural Capital in the Gaborone Declaration for Sustainability in Africa: Opportunities to bring the value of nature to business decision-making and planning

Executive Summary This desktop study aimed to inform the development of a roadmap for incorporating renewable natural capital in the private sector across the Gaborone Declaration for Sustainability in Africa (GDSA) member countries, and for fostering more sustainable consumption and production patterns in target sectors. After explaining key concepts underlying the relationships between business and natural capital, in a context where human communities have high levels of direct dependence on ecosystem services, this report then explains the main approaches for integrating renewable natural capital in various business applications. Notably, traditional corporate environmental approaches, such as corporate social responsibility, environmental management systems and corporate sustainability reporting, are briefly discussed, as are best practices for biodiversity, carbon and water stewardship. A more in-depth comparative analysis of GDSA countries and target sectors, namely agriculture, fisheries, extractive industries, consumer goods and banking/insurance, is then undertaken. For different sectors, the analysis focuses on their social-economic importance, as well as the associated sustainability challenges and opportunities towards more sustainable practices. While most sectors have significant growth potential in the coming years, as people progressively transitions to higher income levels, one needs to emphasise the importance of the small-scale, artisanal producer base (e.g., agriculture, fisheries, mining) and the challenges that it presents for renewable natural capital mainstreaming (e.g., lack of skills, lack of access to capital, health, safety and environmental challenges). For GDSA countries, the comparative analyses aim to highlight national-level differences in three sets of features: 1) the relative importance of each country’s renewable natural capital assets; 2) the pressures on natural capital of each country, and the 3) relative maturity of each national economy. This report highlights areas where the support of the GDSA Secretariat and its partners can positively influence natural capital mainstreaming in the private sector across the GDSA. While it is clear that there must be a strategic approach to the engagement with the private sector, and dependent on available resources, there are several overarching focus areas that could be of interest: 1. Develop a cross-sectoral enabling policy environment; 2. Promote consumer awareness and sustainable consumption practices; 3. Support the uptake of natural capital measurement, valuation and accounting for improved decision-making and management; 4. Stimulate cross-sectoral uptake of the impact mitigation hierarchy and no-netloss/ no-net-impact approaches for natural capital impacts and dependencies; 5. Encourage the development of an environmentally responsible, socially inclusive financial sector; 6. Push for integrated reporting and disclosures on natural capital impacts and dependencies. Sharing different perspectives and experiences regarding these suggestions is essential for the GDSA community to come up with a shared vision on how to mainstream renewable natural capital in the private sector. As such, a selection of best practices from GDSA countries are also highlighted in the report, including, but not limited to, the Nairobi Water Fund (Kenya), community-based natural resource management initiatives in communal conservancies (Namibia) and sustainable agriculture initiatives (e.g., wine, flowers, seafood) of the Green Choice Partnership (South Africa).