Why businesses should be setting science-based targets for nature

Business is highly dependent on nature. Research conducted by the World Economic Forum covering 163 sectors found that more than half the world’s GDP is either heavily or moderately dependent on nature. Construction, agriculture and the food and beverages industries most obviously rely on nature, yet few companies in these and other sectors realise that their sphere of influence goes well beyond their direct impacts (those within their direct financial or operational control). A company’s operations will have indirect impacts and reliance on the natural world through its value chain. Understanding the nature of these impacts and where they occur can help businesses put appropriate strategies and plans in place to manage their financial and reputational risks. Our reports on the FTSE 100 and Asian stock markets have revealed that more than half of the businesses we analysed have no understanding of the impacts or dependencies their operations have on nature.

While many businesses have begun to address these risks by including biodiversity as a material issue in their environment, social and governance (ESG) strategies, in many cases, the strategies, plans and targets they have put in place do not go far enough to address these risks and often the targets they set only consider direct operations.?

As with carbon, it is now possible to set science-based targets for nature. Science-based targets for nature have been designed to complement science-based carbon targets and setting both together will enable companies to take an integrated approach to managing their risks while bringing benefits to climate, nature and people. Integrating your approach to climate and nature will bring about business efficiencies, reduce financial risk and create competitive advantage.?

Setting science-based targets for nature follows a five-stage process: Assess, Prioritise, Measure, Act and Track.?

1. The first stage, Assess, involves an assessment of the commodities, activities and products associated with a business to identify its main environmental impacts. It also involves mapping the key locations associated with these impacts across the company’s value chain.?
2. The second step, Prioritise, identifies which locations and activities to focus on first, for which targets should be set.?
3. During stage three, Measure, a baseline of the company’s environmental performance is measured, a monitoring plan is developed and science-based targets for nature are set and disclosed.?
4. In stage four, Act, action plans are developed and implemented in order to reduce the company’s impacts on nature.?
5. In stage five, Track, progress against targets is monitored, verified and reported publicly.?

Our team of experts at Nature Positive can help your organisation to assess your value chain, prioritise the key locations and activities, measure your baseline and set science-based targets to bring about meaningful change and make your organisation nature positive. While some organisations will prefer to deliver stages four and five themselves, our team contains management consultants that can support you with the delivery of your action plans and your reporting and disclosure needs.?

Please contact us to find out more about how Nature Positive can help you set science-based targets for nature.?