The Critical Role of Business in Biodiversity
How to Implement Biodiversity in Companies
Biodiversity is the variety and richness of life on Earth, at the levels of ecosystems, species, and genes. It is essential for the health and resilience of nature, as well as for the well-being and prosperity of humanity. Biodiversity provides valuable ecosystem services, such as food production, water regulation, climate stabilization, pollination, and recreation, which are worth more than $150 trillion annually.
However, biodiversity is under severe threat from human activities, such as land-use and sea-use change, overexploitation of natural resources, climate change, pollution, and invasive species. These pressures are causing rapid and unprecedented loss of biodiversity, which in turn reduces the functionality and productivity of ecosystems. The decline in ecosystem services costs the global economy more than $5 trillion a year.
Businesses have a critical role to play in addressing the biodiversity crisis, as they depend on and impact nature across their value chains. Many business activities, especially those related to resource extraction and cultivation, contribute to the drivers of biodiversity loss. For example, four major value chains—food, energy, infrastructure, and fashion—currently account for more than 90% of man-made pressure on biodiversity.
At the same time, businesses also face significant risks from biodiversity loss, such as higher raw material costs, supply chain disruptions, regulatory uncertainty, reputational damage, and reduced consumer and investor confidence. Conversely, businesses supporting biodiversity can create new opportunities for innovation, differentiation, cost reduction, and stakeholder engagement.
Therefore, it is imperative for businesses to implement biodiversity in their strategies, operations, and reporting. Here are some steps that businesses can take to do so:
1. Understand the value chain and nature-related dependencies within it. Businesses should identify where their highest dependencies on nature lie across their supply chain, such as water use, land use, energy use, or waste generation. They should also assess how these dependencies affect their performance and resilience.
2. Consider how to influence nature-related risks and opportunities by working with peers and suppliers. Businesses should collaborate with other actors in their sector and value chain to develop common standards, metrics, and targets for biodiversity management. They should also engage with their suppliers to encourage and support them in adopting more sustainable practices.
3. Think about setting ambitious targets according to best practice frameworks. Businesses should align their biodiversity goals with global frameworks such as the Convention on Biological Diversity (CBD), the Sustainable Development Goals (SDGs), or the Science Based Targets Network (SBTN). They should also measure and report their progress using credible indicators and disclosure platforms.
4. Integrate biodiversity into core business functions and decision-making. Businesses should incorporate biodiversity considerations into their governance structures, policies, processes, and incentives. They should also incorporate biodiversity into their risk management systems, product design and development cycles, marketing and communication strategies, and stakeholder relations[.
5. Innovate and invest in nature-based solutions. Businesses should explore new ways of creating value from nature while enhancing its conservation and restoration. They should invest in nature-based solutions that deliver multiple benefits for biodiversity, climate change mitigation and adaptation, social inclusion, and economic development[
By implementing biodiversity in their companies, businesses can reduce their negative impacts on nature and enhance their positive contributions to it. This can help them secure their long-term viability and competitiveness while supporting global efforts to halt and reverse biodiversity loss.
Sources: 1. bcg.com 2. deloitte.com 3. greenbiz.com