SIL SUSTAINABILITY INNOVATION LEADERSHIP
Dott.ssa Silvia Scozzafava corporate ecologist
Nature as risk management and business opportunities. Discover what it means to integrate natural capital into business decision-making, a strategic approach that, through understanding the more or less hidden connections between business and nature, allows you to identify risks and seize opportunities related to natural capital within your business.
A personalized guide. A flexible and thoughtful approach to making sensible and truly sustainable “green” choices.
‘m an atypical ecologist: I have extensive experience as a naturalist in protected areas in the central Apennines, among wolves, bears, and eagles. After leaving the public sector and founding an innovative climate tech startup, I continue to explore uncharted paths at the intersection of finance and biodiversity, working as a freelance consultant and lecturer on corporate sustainability.
Today, I call myself a “Business Ecologist” or “Corporate Ecologist” and I created SIL – Sustainability, Innovation, and Leadership, to bring together the areas in which I support businesses (from startups to multinationals).
Discovering your business’s dependencies on natural capital opens up a vision of a network of opportunities and risks that is often ignored or underestimated, or simply put aside for lack of concrete operational tools: those I can provide (I’m an accredited trainer with the Capitals Coalition on “Natural Capital in Business Decision Making”), or create together with the client.
I have never stopped expanding my connections beyond national borders, and I am proud to have a network of contacts that literally spans five continents.
What do I do as a “business ecologist”? I help entrepreneurs, founders, and managers understand how their business is connected to natural capital, both directly and indirectly, taking into account the entire production chain. I use specific analytical tools, with a systemic yet practical approach, to identify the most significant areas for action, and I support the communication of the most compelling concepts to the target audience.
I offer services that are a cross between consulting and training, because true sustainability isn’t made up of impulsive, off-the-cuff actions following the latest fad, nor is it just a marketing investment, but rather stems from strategic, far-sighted choices. Understanding what’s important and doing what’s identified as important is the cycle of strategic sustainability.
I don’t follow the latest trends (seed gadgets, plant a tree, sprouting hands, etc.), but I’ll work with you to create a compelling and distinctive business strategy that goes beyond marketing alone: we’ll identify concrete risks and opportunities, and we’ll be able to tap into the best innovations available, thanks to my strong connections in the startup world.
My goal isn’t to make you dependent on my contract renewal, but to empower you to make informed choices, with or without me, once you’ve learned what you need to move forward.
I’m a terrible salesperson, so rather than creating an identical format and selling it to 100 clients, I prefer to work on a bespoke basis: it’s the relationship with the client and the genuine curiosity and interest in their problem that motivates me to develop quality results.
Sustainability: I develop customized programs for enlightened small and medium-sized entrepreneurs, as well as working with sustainability managers for medium and large companies. I also offer customized (and affordable!) programs for startups, including work-for-equity programs (which I tried so hard to obtain from others when I was a founder, but rarely found). I organize online and in-person courses, and am preparing to launch intensive “in-nature” courses to understand natural capital from the inside, combining team building and strategic sustainability, or “greening” the corporate reward system.
Innovation: Integrating ecosystems and business thinking is not trivial and often requires adopting original and disruptive solutions. I can support companies in choosing the right innovations to solve problems in an original way, without overstepping their limits or simply stopping at the first available solution. My experience in the startup world allows me to tap into the most innovative solutions available—or not yet fully available! Innovating means staying ahead of your competitors and standing out from the crowd.
Leadership: Combining innovation and sustainability means being best in class, first in your sector. Being the one to imitate, rather than imitating others. Very often in sustainability, reaching a critical mass is important to generate significant impact: territorial districts, sector coalitions, pledges. For those who want to be the first to spot the new land to which they can lead others.
What does it mean to integrate natural capital into business decisions? I conducted a small experiment, putting myself in the shoes of a curious but skeptical entrepreneur, and asked Google AI, which is increasingly poised to become the ideal consultant for gaining an initial understanding of a new problem. What I found interesting is that asking in Italian or English changes the content of the response. This is because the AI is trained, and provides answers, based on texts available in the language used. And the difference between the responses reflects the state of the art, the level of development of this topic in our cultural context. In Italian, the response refers to generic sustainability strategies based on reducing water, energy, plastic consumption, etc. The English response, on the other hand, is much more specific, focusing on the concept of how nature is the essential prerequisite for economic activity, and therefore must be taken into account for the sake of the company’s success. The English response also includes clear and specific references to the most common methodologies and frameworks, though they are presented somewhat haphazardly. Therefore, it’s always best to carefully check your sources, as is always the case when using AI for research.
In this context, my aspiration is to offer my clients the best information and knowledge available internationally on natural capital, in Italian and using accessible language. From there, I offer support in building and implementing their strategic approach to addressing the challenges posed by the climate and biodiversity crisis.
The methodology developed by the Capitals Coalition includes four coordinated steps, summarized by the acronym ACT-D: Assess, Commit, Transform, Disclose. Disclosure, or communication, cannot be the starting point but must accompany the entire process of discovering, evaluating, and managing the dependencies and opportunities that natural capital offers businesses.
The starting point must therefore necessarily be the evaluation process, through which we become aware of how much the value generated by the business is dependent on natural capital. This is therefore a completely different, and much broader, approach than simply describing standardized impact areas (air, water, soil, etc.), often hastily compiled with quick copy-and-paste and a few adjustments. Instead, it involves specifically uncovering aspects of dependencies or opportunities that may be completely unknown and therefore constitute an unmanaged risk factor.
No business sector is completely independent of natural capital, and estimates suggest that well over 50% of global GDP has a moderate to high dependence on natural capital. Some sectors are more directly and immediately exposed (for example, agri-food, but also the production of natural textile fibers, tourism, and real estate—all highly exposed, each in its own way, to the risks deriving from biodiversity loss and ongoing climate change). It is therefore essential to initiate an assessment process, even if only qualitative, to assess the degree of exposure of your company and the potential opportunities for business development.
If it’s true that we are what we eat, as they say, it’s also true that we tend to make consumer choices aligned with our values, even in the food and agriculture sector. For some, this means buying Made in Italy, for others, zero-mile, for still others, organic or biodynamic. The fact is that consumers are showing increasing attention not only to the organoleptic quality of the product, but also to its history and its production context. Italy is a country with strong rural and agricultural traditions, and a strong identity bond with its territory of origin, even among residents of major urban centers. Consequently, consumer choices tend to be increasingly oriented toward considering provenance, context, and production methods as primary factors, and the mere availability of such information about a product can give it an unprecedented competitive advantage, thanks also to technological aids that allow rapid access to vast amounts of information simply by scanning a QR code on a mobile phone directly in the supermarket aisles (or at a market stall, why not?).
Another fascinating aspect of sustainability in agri-food supply chains is the many opportunities to combine tradition with technology, through the adoption of increasingly smart systems to make the entire supply chain transparent (blockchain, IoT, smart tags, etc.). This means that a farm seeking a competitive advantage by enhancing the sustainability of its products may find itself at a loss when choosing a solution that is neither oversized for its needs nor simply standardized. Whether a company with direct sales operations or a local, national, or even international distribution network, the choices to be made are numerous and start directly in the field, where, for example, the adoption of smart farming and regenerative agriculture solutions can help protect the environment while improving productivity. These choices then continue through the processing stages, where process optimization and accurate tracking generate additional value. Finally, the packaging and distribution phases play a key role, where the company’s ability to reap the full value generated by an approach focused on environmental protection and social responsibility comes to the fore.
It is therefore important, on the one hand, to consider the range of options and, on the other, to support companies in making the most appropriate choices for their specific context, establishing collaborations of sufficient duration and commitment to achieve significant results without further burdening the business with services geared solely towards formal compliance.
Faced with increasingly widespread extreme weather events, we can feel helpless and anxiety can take over: it seems as if Nature has turned its back on us and is demanding the price for all the damage we have done.
Nature, however, is also the source of potential solutions: Nature-based Solutions, in English, solutions to social problems and needs through careful management of natural processes. Many believe that simply planting trees, wherever, however, is enough to fix things. A forest, however, is not a simple sum of trees; it is a complex organism capable of modifying the microclimate and soil, and capable of maintaining stable conditions for its own existence. The Italian territory, especially in the hilly and mountainous areas, is characterized by extensive and expanding forest areas, proving that trees are very capable of planting themselves! What is needed, therefore, is not just planting new trees, but protecting and properly managing existing woodlands and forests to allow these environments to produce the positive effects we need, such as slope stabilization, temperature mitigation, the creation of fertile soil, the production of woody and non-woody materials, and a pleasant environment beneficial to health and well-being.
Water management can also be greatly improved through an approach that sees Nature as an integral part of the solution. We often talk about the possibility of building reservoirs to store rainwater, but the primary infrastructure in which rainwater is stored is the soil and subsoil, with aquifers extending across the entire surface of the floodplains of rivers large and small. Concrete embankments accelerate the flow of rivers and prevent water infiltration. By allowing the river to slow down, form bends and meanders, and widen during periods of flood, water is allowed to infiltrate vertically and horizontally alongside the river, replenishing the aquifers from which water is then extracted via wells by all users—citizens, farmers, and industries.
And speaking of water, let’s turn to the sea, or rather, the coast. It is the most degraded type of environment there is, especially in areas with low, sandy shores, almost entirely subservient to the needs of the beach industry. Very few stretches of Italian coastline have retained intact the system of dunes and coastal lagoons, a type that was absolutely dominant until the Second World War and has now virtually disappeared from the entire Adriatic coast, remaining only in a few areas of the Tyrrhenian coast, as well as in Sardinia and Sicily. Few people realize that it is this type of integrated system that guarantees the permanence of the beach: when the dune and lagoon system deteriorates, the beach is inexorably eroded, especially in light of increased atmospheric phenomena; annual beach nourishment interventions fail to reverse the trend, which is currently undermining not only the beach industry itself, but also strategic infrastructure such as railways and roads. Properly managing the few remaining coastal ecosystems and restoring them wherever possible is our last chance to continue enjoying the sea and the coast not only as a recreational destination, but also, and above all, for personal and collective health.
What does ESG mean in finance? Given the proliferation of various acronyms in the sustainability world, especially in Europe, I’m not surprised there’s still some confusion.
ESG is an acronym for “Environmental, Social, and Governance.” It was introduced in 2004 in a United Nations report titled “Who Cares, Wins.” This report highlighted how the most successful companies were often significantly committed to pursuing goals of general benefit, such as improving their social or environmental performance. This was a dramatic revelation compared to previous theories, such as that of Milton Friedman, which viewed philanthropy as a negative factor for corporate profitability and pushed businesses to maximize financial profit alone. Today, however, the financial world is paying close attention to ESG factors as criteria for assessing a company’s solidity, as several studies have highlighted a positive correlation between social and environmental awareness, a sense of responsibility toward communities, and corporate profitability, especially over the long term. This could be due to several factors, the most obvious being a better public image that confers a competitive advantage. However, the potential return on intangible investments such as human capital (lower staff turnover and therefore greater efficiency) should not be underestimated, as well as the fact that more mature management, capable of strategically navigating the complexities of the relevant social and environmental context, will be able to creatively address unforeseen circumstances and changes.
Lately, there has been a growing need to consider climate and environmental issues as business risk factors, not secondary ones. Climate change has long been identified as a crucial risk factor for various industrial sectors, and the same reasoning can be applied to the global crisis of biodiversity and ecosystem services, which in turn are fueled and worsened by the climate crisis. In many industrial sectors, understanding the various risks (reputational, regulatory, physical, etc.) associated with the environmental crisis is becoming essential. Especially for multinational companies with global supply chains, it can be extremely complex to understand how to conduct these analyses and obtain useful results for strategic and managerial decisions. These are issues that require not only expertise in using appropriate tools, such as the WWF’s Risk Filter Suite, but above all, the ability to interpret the results and design ad hoc solutions (no off-the-shelf solutions currently exist).
As the financial world increasingly scrutinizes ESG ratings, even affecting credit access criteria (as is already the case with green bonds and funds specializing in sustainable investments), continuing to view the environment as a series of restrictive regulations to be circumvented as much as possible risks dragging companies into a spiral of risk and competitiveness. Rather than delegating the issue to a sustainability manager affiliated with the marketing department and tasked solely with drafting glossy and inconsistent reports, it’s better to be proactive, understand your exposure to risks and the opportunities that may exist, and transform complexity into an opportunity to develop strategic development tools.
This is precisely where I believe the most interesting professional challenges lie. If you’d like to turn your ESG challenge into an opportunity, contact me for a no-obligation interview.
The Italian protected area system is comprised of very different entities, yet all share principles established way back in 1991 by the Framework Law on Protected Areas. This law, while highly advanced on paper, stems from a then-innovative approach to conservation, the fruit of profound cultural and scientific reflection, summarized in the wonderful book “Men and Parks,” a reading I recommend to anyone wishing to delve deeper into the topic, even if only out of personal interest. It’s a shame that this laudable law is, in reality, largely disregarded.
Having worked in this field for more than fifteen years, and then voluntarily left it, I’ve developed my own somewhat unconventional perspective on the meaning of conservation, its ongoing challenges, and even its lost battles. It’s certainly not my intention to exhaust this vast topic in these few lines, but rather to shed some light on the various types of areas, their purposes, and the current state of play.
First, a distinction must be made between National Parks and Regional Parks (or reserves). The former are autonomous bodies that report to the Ministry of the Environment. The latter are divided into Parks (generally larger) and Reserves (generally smaller and limited in protected areas). There are also a series of protected areas deriving from EU legislation, the Natura 2000 Areas, which sometimes coincide with National Parks or Reserves, but sometimes are entirely external to them. They are subject to specific legislation, directly derived from two specialized Directives, the Habitats Directive and the Birds Directive.
One of the distinctive features of Italian law, common to all protected areas, is the combination of nature conservation with the socioeconomic development of the affected communities. And here’s where things get complicated: because we need to reconcile two concepts that are both rather vaguely defined. What does it mean to protect nature? And what does it mean to promote development? In a country like ours, where scientific culture in general, and nature science in particular, is considered a hobby, the game becomes truly difficult. And since protected areas are almost all managed by public bodies, the rules are those of the public administration…
If a company deals with protected areas, whether to start a business or to request authorizations and permits, it may not be immediately clear what is required, or what the best way to conduct a fruitful dialogue without any unexpected consequences. Added to this is the fact that some Italian regions are chronically non-compliant with EU regulations and may issue permits for activities that violate EU law. Consequently, even with seemingly in order, the risk is being blocked by an appeal before the EU, which could prove to be entirely legitimate. This is a regulatory risk that tends to be considered only in developing countries, but unfortunately, in this context, it also affects our country. And when these issues come to a head, the finger is pointed at “environmentalists who hold back development,” rather than acknowledging the superficiality with which some planners and administrators deal with European regulations: adequate expertise in conservation and biodiversity would have been sufficient to ensure planning complies with current regulations, avoiding obstacles along the way.