Using an organic mulch such as wood chips around trees and in shrub beds will provide several benefits. A four inch layer of mulch under trees and around shrubs and perennials goes a long way to keep plants alive and healthy.
Mulch helps to regulate soil temperature resulting in less stress on plants between hot,
dry summer days and freezing winter nights. Mulch allows for less and easier weeding of beds. Organic mulches, as they gradually break down, add nutrients to the soil. Mulching around the base of trees also keeps the lawn mower and weed eater from damaging the bark of trees.
Most importantly, mulching reduces water usage. A mulched area under low-water-use trees with dryland shrubs or perennials can reduce water usage by as much as 50 percent from the water needed to maintain a bluegrass lawn.
Mulching mature trees to their drip line is beneficial as well. For a larger-sized tree this may extend a mulch circle outward from the trunk 20 feet or more, greatly reducing the amount of lawn. Having mulch to that point helps retain moisture in the root area.