Thinking Outside of the Organisational Box; How Private Firms Can Invest in Nature-based Solutions at the Watershed-level to Manage Agricultural Water Risks in California’s San Joaquin Valley

Sammanfattning: Nature-based solutions (NBS) can provide a range of benefits to tackle acute sustainability challenges in an enduring and cost-effective manner. Increasing recognition of the value of these solutions has led to their adoption across the globe. However, a majority of NBS projects are implemented with public funding, though the participation of the private sector is vital to achieve comprehensive operationalization. While private firms may be motivated to invest in NBS to support their philanthropic or corporate social responsibility (CSR) goals, it is imperative to demonstrate the material value of these solutions to promote significant private engagement. Through a review of relevant literature, a risk management motivation was identified as a potential driver of private investment in NBS. California’s San Joaquin Valley, with its pressing water scarcity challenges and immense, water dependent agricultural industry, served as an ideal context for a case study to explore the potential for private firms to employ NBS to address their water quantity risks. The reviewed literature also revealed the benefits of adopting a watershed-level approach for water stewardship; thus, the risk management capacity of watershed restoration was selected as a specific NBS category for analysis. Through qualitative interviews with relevant practitioners, and a review of secondary data sources, this thesis aims to demonstrate the business case for NBS by analysing the capacity of select watershed restoration measures to mitigate water risks for private firms with agricultural assets in the San Joaquin Valley. The specific water quantity risks impacting the agricultural sector in this region, and the risk management capacity of watershed restoration measures to mitigate these risks, were analysed using two theoretical frameworks to answer the posed research questions: (1) What are the water quantity risks impacting the agricultural sector in California’s San Joaquin Valley region? and (2) What is the water risk management capacity of watershed restoration when employed by private firms with agricultural assets in California's San Joaquin Valley?. In the analysis section, data findings and existing empirical knowledge were synthesized to create a framework to guide future research and practical efforts in this area. Finally, the identified drivers and barriers for private sector engagement with watershed restoration projects as risk management strategies are outlined in the concluding section of this paper.