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π Planet
Are biodiversity concerns compatible with business models?

TESSA: a tool for biodiversity-based decisions

with James Bowers, Chief editor at Polytechnique Insights
On April 12th, 2021 |
3min reading time
Kelvin Peh
Kelvin Peh
Lecturer in Conservation Science at the University of Southampton
Key takeaways
  • TESSA is a tool to help take biodiversity into account in development projects. It is specifically aimed at non-specialists who want to assess the value of a plot of land and the cost of its restoration.
  • The tool has been downloaded 2,500 times in over 69 countries. At least 12% is from the private sector, proof that companies are increasingly taking biodiversity into account in their strategies.
  • The team has partnered with AXA insurance so that the firm’s clients can assess the impact of their portfolios on biodiversity and make decisions accordingly.

Back in 2009, a col­lec­tion of research­ers and envir­on­ment­al con­ser­va­tion­ists gathered in Cam­bridge for a hori­zon scan­ning work­shop to dis­cuss biod­iversity. One of the out­comes agreed upon by the prac­ti­tion­ers that day was that, at the time, there were no tools for non-experts to col­lect and ana­lyse biod­iversity data to help them make decisions. 

Dr. Kelvin Peh, now a lec­turer in con­ser­va­tion sci­ence at the Uni­ver­sity of Southamp­ton, co-developed the tool in the years there­after. “That’s where the idea for TESSA came from,” he says. The pro­ject offi­cially began in 2010 at the Uni­ver­sity of Cam­bridge, “and it’s still alive now.”

TESSA, or Toolkit for Eco­sys­tem Ser­vice Site-based Assess­ment, was ori­gin­ally made to help con­ser­va­tion prac­ti­tion­ers under­stand how to eval­u­ate the eco­sys­tem ser­vices of a nat­ur­al site. These ser­vices can have value in the activ­it­ies they provide such as flood pro­tec­tion, car­bon stor­age and pol­lin­a­tion. But also, in the more dir­ect eco­nom­ic activ­it­ies they can attract such as tour­ism or cul­tur­al services. 

Loc­al decision-making

By 2014, TESSA had achieved its first suc­cess story – a res­tor­a­tion pro­ject in Wick­en Fen. There, the UK Nation­al Trust had used the toolkit to assess the fin­an­cial value of 5,300 hec­tares of land near Cam­bridge (UK). Con­ver­ted to farm­land in the mid-19th cen­tury, plans to restore the area to its nat­ur­al wet­land state were met with oppos­i­tion from loc­al farmers. 

The main argu­ment was the anti­cip­ated eco­nom­ic losses. In response, the UK Nation­al Trust crunched the num­bers using TESSA, com­par­ing the fin­an­cial bene­fits of Wick­en Fen in the two scen­ari­os; farm­land vs. restored wet­lands. The res­ults showed that each hec­tare of land was worth $200 more per year as the lat­ter – thus, provid­ing a tan­gible argu­ment for the res­tor­a­tion project. 

Whilst there are already many tools out there, what makes TESSA stand out is that it is spe­cific­ally designed for use by non-experts. “It’s not a math­em­at­ic­al mod­el­ling tool as with most oth­ers. Our toolkit is more like a writ­ten guid­ance doc­u­ment con­tain­ing spe­cif­ic pro­to­cols in the form of an inter­act­ive pdf, which users can print out and bind into a book.”

Most web-based tools also tend to look at eco­sys­tem ser­vices from a nation­al or even glob­al scale. But TESSA is aimed at ana­lyses on a loc­al level. It also involves a com­par­at­ive frame­work so, in terms of decisions, it can help com­pare two options. “If we are talk­ing about a res­tor­a­tion pro­ject, this could be a com­par­is­on between the fin­an­cial value of restored land and that if no action were taken,” says Kelvin.

Interest from businesses 

Even though Kelvin and his col­leagues ini­tially thought TESSA would be used by con­ser­va­tion prac­ti­tion­ers in devel­op­ing coun­tries, they are also get­ting some atten­tion from gov­ern­ments, busi­nesses and aca­dem­ics. “We don’t yet have con­crete examples of how busi­nesses have used TESSA intern­ally to make decisions. But we do know of some who have used TESSA to assess the land that they are sit­ting on.” 

Dur­ing his AXA-Research Fund post-doc fel­low­ship, Kelvin released the first ver­sion of TESSA in 2010, then the second in 2017. “Now we are look­ing at a beta ver­sion 3, that will be launched in mid-2022.” In the mean­time, Kelvin and his col­leagues have been look­ing back and study­ing how the toolkit has been used around the world. He states, “our meta-study is yet to be pub­lished, but the res­ults are very much in favour of con­ser­va­tion or restoration.” 

Their ini­tial res­ults show that, since 2010, TESSA has been down­loaded over 2,500 times from at least 69 coun­tries. Of those, ~26% were from envir­on­ment­al NGOs, ~11% were gov­ern­ment­al bod­ies and as many as 12% were from the private sec­tor – includ­ing busi­nesses. “This [lat­ter] is par­tic­u­larly import­ant as it means busi­nesses are pay­ing atten­tion to biod­iversity concerns.” 

Accord­ing to Kelvin, busi­nesses have shown a grow­ing interest in assess­ing eco­sys­tem ser­vices. “The private sec­tor is under increas­ing scru­tiny from stake­hold­ers who are expect­ing com­pan­ies to report on the envir­on­ment­al impact of their investments.”

Cor­por­ate risk 

Kelvin links the need to fin­an­cially eval­u­ate eco­sys­tem ser­vices with decision-mak­ing based on risk in the private sec­tor. “Once value is estab­lished, it is then easi­er to meas­ure risk. Com­pan­ies which are not set­ting tar­gets for them­selves are inher­ently ris­ki­er and prone to big­ger fin­an­cial premi­ums. For example, they may have to pay a high­er insur­ance premi­um if they have an unfa­vour­able eco­sys­tem ser­vices measurement.”

In line with risk assess­ment, he has teamed up with French insur­ance com­pany, AXA, who are look­ing into biod­iversity for their cli­ents. “Cor­por­ate report­ing of eco­sys­tem ser­vices and biod­iversity is quite min­im­al right now because there aren’t many tools out there. It would be nice for com­pan­ies like AXA to have tools that their cli­ents can use for report­ing biod­iversity impact of their portfolios.”

Indeed, the res­ults of a TESSA ana­lys­is do not always give a favour­able res­ult for pro­tect­ing biod­iversity. “I would say I’m not a con­ser­va­tion prac­ti­tion­er, my role is to provide evid­ence and data so that people can make their own decision.” But he says this should not pre­vent us from valu­ing nat­ur­al resources. “In my opin­ion, we should not shy away from valu­ing nature because it offers a more tan­gible argu­ment than eth­ics or moral.” 

Find out more about TESSA

http://​tessa​.tools
https://​portals​.iucn​.org/​l​i​b​r​a​r​y​/​n​o​d​e​/​47778
https://​www​.axa​-research​.org/​e​n​/​n​e​w​s​/​m​e​a​s​u​r​i​n​g​-​t​h​e​-​i​m​p​a​c​t​-​o​f​-​p​r​o​t​e​c​t​i​n​g​-​b​i​o​d​i​v​e​r​s​i​t​y​-​a​-​p​r​a​c​t​i​c​a​l​-tool
https://​thecon​ver​sa​tion​.com/​t​e​s​s​a​-​a​-​p​r​a​c​t​i​c​a​l​-​t​o​o​l​-​t​o​-​m​e​a​s​u​r​e​-​t​h​e​-​i​m​p​a​c​t​-​o​f​-​p​r​o​t​e​c​t​i​n​g​-​b​i​o​d​i​v​e​r​s​i​t​y​-​1​25254
https://​www​.the​guard​i​an​.com/​e​n​v​i​r​o​n​m​e​n​t​/​2​0​2​1​/​m​a​r​/​0​8​/​l​a​n​d​-​c​o​u​l​d​-​b​e​-​w​o​r​t​h​-​m​o​r​e​-​l​e​f​t​-​t​o​-​n​a​t​u​r​e​-​t​h​a​n​-​w​h​e​n​-​f​a​r​m​e​d​-​s​t​u​d​y​-​f​i​n​d​s-aoe

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