Economic value of ecosystem services by Tokio Marine & Nichido’s Mangrove Planting Project
Tokio Marine & Nichido Fire Insurance Co., Ltd. (President: Tsuyoshi Nagano, hereinafter “TMNF”) proudly announces that the economic value of ecosystem services (cumulative total from April 1999 to March 2014) generated by TMNF’s mangrove planting project in Asia-Pacific Region in collaboration with reforestation NGOs* is worth USD 338.8 million. The assessment was conducted by a third-party research entity “Mitsubishi Research Institute, Inc. (President: Kyota Omori)” by applying internationally recognized methodologies.
TMNF will continue to contribute to the creation of a safe, secure and sustainable future by promoting environmental protection activities such as planting mangroves globally in collaboration with central and local governments, NGOs and NPOs, etc.
* Action for Mangrove Reforestation (ACTMANG), The Organization for Industrial, Spiritual, and Cultural Advancement-International (OISCA), and International Society for Mangrove Ecosystems(ISME)
1.Background and Methodology
TMNF has been involved in mangrove planting activities since 1999 and has planted 8,994 ha of mangrove forests in nine countries in the Asia-Pacific region. As a result, it has achieved “carbon neutral*” in domestic operations every year since Fiscal 2009. Tokio Marine Group as a whole also achieved “carbon neutral” in Fiscal 2011, 2013 and 2014.
In recent years, valuation techniques for natural capital such as biological diversity and ecosystem services have been advanced and more attentions are paid to business entities’ initiatives to evaluate the social values/impacts generated by CSR projects.
In the light of this circumstance, TMNF evaluated the economic value of ecosystem services generated by its mangrove planting project conducted from April 1999 to March 2014, by referring to “Millennium Ecosystem Assessment” and “The Economics of Ecosystems and Biodiversity (TEEB)” developed through international initiatives on biodiversity and ecosystem services.
* A “carbon neutral”state means that CO2 emitted in the course of business activities is equivalent to the volume of CO2 removed or reduced by way of use of natural energy, the retirement of carbon credits and mangrove tree planting.
2.Economic benefits generated by TMNF’s mangrove planting project
Economic benefits generated by TMNF’s mangrove planting project are as below.
|Ecosystem Services||Cumulative Value|
|1.Mangrove product harvests||Approx. 84.2|
|2.Support to off-site fisheries productivity||Approx. 78.8|
|3.Shoreline stabilization & erosion control||Approx. 71.1|
|4.Shelter against extreme weather||Approx. 55.8|
|5.Water quality regulation||Approx. 45.6|
|6.Carbon sequestration||Approx. 3.3|
3.Other benefits generated by mangrove planting project
In addition to aforementioned quantitative values, various benefits for local communities and a global society such as an improvement of local people’s lives, disaster risk reduction, climate change mitigation are generated by the mangrove planting projects.
|Improvement of local people’s lives||Approximately 1.25 million people (approx. 320,000 households) reside in and around the planting sites and about 130,000 people depend on mangrove fish, crustaceans, molluscs, worms and other aquatic fauna as a primary source of income and/or employment. Besides, at least 35,000 people (9,000 households) depend partially or wholly on mangrove firewood as a domestic energy source.|
|Disaster risk reduction||At least half a million people are protected from storms, tidal surges, erosion, saltwater intrusion and water pollution by mangroves.|
|Climate change mitigation||People around the world benefit from the climate change mitigation offered by the storage of half a million of tons of CO2 in mangrove forests and its soils.|
Please visit websites below for our mangrove planting initiatives: