For a long time, biodiversity was considered secondary to climate change, due to a lack of impact measurement tools, knowledge and regulations.
Today, it is estimated that 55% of global GDP depends directly on biodiversity. Businesses therefore need to make biodiversity a priority.
This white paper aims to help understand the impacts and dependencies of business on biodiversity, outlines the many reasons for taking action and provides a guide to implementing a ESG strategy that incorporates biodiversity.
Many companies today are highly dependent on nature, recognising that their business operations and long-term viability hinge on the health of ecosystems. The value of biodiversity extends beyond mere ecological considerations; it is integral to sustainable business practices. As businesses engage in corporate sustainability, they are increasingly aware of the biodiversity risks and opportunities affecting their supply chain and overall value chain. The impact on biodiversity from industrial activities can lead to biodiversity loss, which poses significant business risks and threatens their biodiversity goals. As outlined in the Kunming-Montreal Global Biodiversity Framework, companies are expected to align their strategies with global initiatives aimed at reversing biodiversity loss by 2030, particularly in relation to target 15 of the Convention on Biological Diversity.
Organisations such as the World Economic Forum highlight that business leaders need to address biodiversity challenges systematically. The nature-positive approach encourages firms to protect biodiversity while considering their impact on nature. Companies adopting biodiversity strategies that mitigate negative impacts can unlock business opportunities contributing to a nature-positive future. The Ramboll Group emphasises the importance of integrating biodiversity regulations and conservation into everyday business practices, enhancing business transformation efforts. This alignment with the global biodiversity frameworkprotects natural capital and ensures future operations' resilience and sustainability, particularly in light of increasing greenhouse gas emissions and the overarching need for a sustainable growth model.
The relationship between business and biodiversity is critical, as economic activities significantly affect biodiversity. Businesses rely on various natural resources, which means their operations can impact the health of ecosystems. As such, understanding how to protect biodiversity is essential for companies aiming to operate sustainably. Acknowledging this relationship allows businesses to identify risks and opportunities, ultimately guiding them towards a more sustainable approach that aligns their objectives with biodiversity conservation efforts.
Biodiversity regulations are designed to protect ecosystems and species from degradation and extinction. These regulations can impact business operations by restricting resource extraction, land use, and pollution. Companies must navigate these legal frameworks to ensure compliance, which may require adapting their practices, investing in cleaner technologies, and embracing more sustainable business models. By proactively addressing biodiversity risks and aligning with regulations, businesses can avoid legal penalties and enhance their reputation among stakeholders.