Biodiversity: 5 reasons to prioritize it on the corporate agenda

Biodiversity is rapidly becoming a strategic priority for companies worldwide . The impact of biodiversity loss on business operations is profound, from raw material sourcing to risk management. At COP16 in Cali, one of the key topics was the need for robust tools and metrics to better assess biodiversity impacts and dependencies across sectors. An eye-opening data point emerged: less than 10% of companies currently assess their dependencies on biodiversity, despite the fact that nature is in decline, costing the global economy between $4 trillion and $20 trillion annually.

In this edition of Biodiversity Talks, 3Bee's weekly newsletter, we look at the five most relevant trends from COP16 and explore why biodiversity is essential for the future of corporate strategy.

1. Biodiversity and the global economy

The World Economic Forum estimates that at least half of the world’s GDP relies on nature, with 40% of global natural resources in decline. Biodiversity loss and ecosystem collapse are among the top three most serious risks for the coming decade, according to the WEF Global Risks Report. This urgency is underscored by the compounded pressures of climate change and geopolitical tensions. SEI researchers have analyzed international interdependencies in sectors such as food, energy, and mining to highlight associated risks. They suggest that the goal should be to transform society's relationship with biodiversity and aim to live in harmony with nature by 2050.

2. Developing National Biodiversity Programs

COP16 emphasizes the implementation of the Global Biodiversity Framework adopted at COP15. Countries are expected to submit updated National Biodiversity Strategies and Action Plans (NBS APs) to meet framework targets. Key objectives include:

• Target 7 : “Reduce pollution to levels that are not harmful to biodiversity,” aiming to cut pollution risks and impacts from all sources by 2030.
• Target 15 : “Companies assess, disclose, and reduce biodiversity-related risks and negative impacts,” with the expectation that large companies implement legal, administrative, or policy measures to monitor, assess, and disclose their risks.
• Target 16 : “Enabling sustainable consumption choices to reduce waste and overconsumption,” aimed at encouraging and empowering people to make sustainable consumption choices.

3. Reporting nature-related risks

A 2022 survey by the World Benchmarking Alliance’s Nature Benchmark found that only 5% of companies assess their impact on nature, but expectations are changing. A multi-instrument pilot study found that the top 250 high-impact companies listed on the MSCI World Index could account for 73% of biodiversity impacts. Investors are increasingly demanding more information on these issues. With 177 financial institutions having signed the Finance for Biodiversity Pledge, progress is expected to accelerate. Companies can now use tools such as the Taskforce on Nature-related Financial Disclosures (TNFD) and the Global Reporting Initiative (GRI) to better monitor and report on nature-related impacts.

4. Bioeconomy brings new opportunities

More and more companies are expanding their vision beyond mere risk management to embrace business models that benefit the environment and create value for nature. The Stockholm Synthesis Report , published in 2022 by the World Business Council for Sustainable Development and SEI, illustrates how these models can manifest across six global value chains.? The World Economic Forum suggests that a nature-centered approach could create economic opportunities and jobs. Integrating biodiversity into the production process, with the aim of developing a bio-based economy, offers significant opportunities for both low- and high-income countries.

5. The role of trade and consumer choices

Industries such as food, energy and fashion exert significant pressure on biodiversity, so consumer attitudes are crucial. Discussions at COP16 focused on overconsumption and trade under Goal 16, where both businesses and governments have a critical role to play.

These combined trends highlighted at COP16 underscore the significant challenge of mobilizing the finance needed to implement the Global Biodiversity Framework and drive meaningful action on biodiversity. For the private sector, this represents a strategic investment in the future of biodiversity and the global economy. In this context, the 3Bee Environmental Platform enables companies, municipalities and nature parks to monitor their impacts and dependencies on nature, climate and biodiversity and to develop tailored climate and biodiversity strategies . Starting with the monitoring of key risk indices, the platform assigns risk scores to prioritize areas for action, supporting strategic planning in line with the CSRD and key international standards such as GRI101 and ESRS E4.

Interested in learning more about CSDDD, the supply chain act?

On 21 November at 12 pm, the Oasis of CSR, the network for sustainability professionals, will host a new episode of the webinar 'CSDD, what does the Supply Chain Act consist of? ' on LinkedIn. The webinar will be held in Italian.

Together with Professor Rosanna Pennazio from the University of Eastern Piedmont, we will analyze this new Directive, which focuses on the supply chain of large companies. During this webinar, you will learn:

?? detailed information on the new Directive, including the specific rules and requirements imposed on large companies in relation to their supply chain management;

?? the types of obligations that will affect suppliers' procurement and management practices;

?? how the Directive will affect SMEs along the value chain and what measures they will need to take to meet the standards required by the large companies they work with.

Not yet part of the network but want to join? Register for the webinar now ?? https://streamyard.com/watch/6TDUVP9EfeQ8

The webinar will be available for later viewing on YouTube with automatically generated English subtitles.