We can no longer sideline biodiversity in pursuit of carbon reduction
In the wake of the COP29 summit, it’s apt to reflect on the equally important ‘Nature’ COP16 that took place a few weeks before – an event that, as usual, received much less media coverage.
This is problematic. Climate goals are of course supremely important. However specific action on biodiversity should receive comparable attention and commitment. More businesses need to start to recognise this too. While many companies have taken steps to reduce carbon emissions, far fewer have applied the same rigour to biodiversity. This situation can’t continue much longer.
Ahead of COP16, WWF’s A System in Peril report warned that 73% of global wildlife populations have been lost in the past 50 years, including huge reductions of vital insects and pollinators. The report dramatically emphasises that the world is rapidly nearing tipping points, posing grave risks to businesses, financial stability, economies and societies.
According to the World Economic Forum, about $44 trillion of global GDP, or nearly half, depends on nature. Disruption to ecosystem services threatens industries as varied as agriculture, fisheries, tourism and pharmaceuticals.
What we also know is that nature and climate are two sides of the same coin. A degraded environment – one that has lost biodiversity, forests, wetlands, and natural ecosystems – is unable to effectively regulate climate.
The evidence has become irrefutable. The time to act is now, not sometime in the future.
How businesses can push ahead on biodiversity
For businesses, that ‘action’ will mean integrating biodiversity into the way they work. Admittedly this a daunting task. This is why many businesses have stalled so far. They look into what’s ahead of them, realise it gets complicated very quickly and prioritise carbon reduction efforts instead.
This is no longer a valid excuse for putting things off. Tools are available that can help to at least start the journey. For instance, the Taskforce on Nature-related Financial Disclosures (TNFD) provides a roadmap that will help businesses understand the scale and severity of nature-related risks that confront them, plus the actions they will need to take to reduce their impacts and risks.
There was encouraging news from COP16 on this front. The Taskforce revealed that over 500 companies and investors have now committed to its voluntary framework for reporting. That’s a 57% increase since TNFD unveiled its first adopters in January this year.
Though still not enough, these numbers speak to the growing consensus on the business case for biodiversity and nature conservation as a source of both operational resilience and new opportunity – despite the complexities.
While others still procrastinate, businesses that have already adopted TNFD will be the ones best placed to ensure the sustainability of their natural resource before competitors. They will factor the insight they gain into business and risk management strategies. They will use it to understand the financial impact of nature loss – and then start to formulate business cases for future operational change. They will also be better equipped to drive the just transition in partnership with local communities and indigenous peoples.
Equally, early adopters will be more ready to explore and contribute to the emerging nature data value chain, including new developments such as the TNFD’s new roadmap for enhancing market access to decision-useful, nature-related data. Their action, ultimately, will help them to focus on long-term resilience that aligns with their strategic goals.
Governments must act too
Yet even if all businesses came on board, this is not to say that they alone will provide the solution. Scientists and environmental activists reacted with anger at the outcomes of COP16. They argued, with some justification, that the scale of political ambition did not rise to the challenge of reducing the destruction of nature. They responded so strongly because they understand that systemic change is required and must be guided by clear political directives.
A growing number of businesses agree. In the lead-up to the event, Business for Nature, a coalition of 230 companies, released a statement calling for governments’ immediate leadership to strengthen the policies, incentives and legislation that will drive the necessary business action.
They are right. Systemic change is what’s ultimately required. But again, this is not an excuse for the business community to delay action.
We have to start somewhere. We must all recognise, the private and public sector alike, that the biodiversity and climate crises are equal and related dangers. Sidelining the first for the other, even if we feel the political will is against us, could undermine both efforts. More equal coverage of the issue and future Nature COPs needs to reflect this.
Perhaps the increasing clamour for the fundamental reform of the climate COP process could ultimately help break down the climate vs. nature silos, delivering enhanced action, accountability and timeliness across both. Regardless, the time for waiting and seeing for all concerned is over – both for the sake of businesses and the planet.