海角视频

鈥淐onserving biodiversity requires the same commitment we must undertake to decarbonize economies鈥� we must jointly develop and call for an innovative and transformative type of economic system that is built around the cycles of nature with people 鈥� an economy that reproduces life instead of destroying it.鈥�

Mar铆a Susana Muhamad Gonz谩lez, Minister of Environment and Sustainable Development of Colombia; COP16 (Cali, Colombia) President Elect

Urgent action is needed to prevent further nature and biodiversity loss. Currently, the rich biodiversity and natural environment of our planet is in a state of crisis. Since 1970, wildlife populations have plummeted by an average of across mammals, birds, reptiles, fish and amphibians. According to IUCN鈥檚 Red List of Threatened Species, over 45,300 species (28% of all assessed species) are at risk of extinction. Habitat loss is also alarming: since 1990, an estimated Coral reefs and mangrove forests continue to decline sharply.

This is deeply alarming. While individuals and communities increasingly recognise the importance of nature (the health and wellbeing impacts nature provides us are ), large-scale change requires more than altruism. So, why should businesses do the necessary work to protect and restore nature?

What is the relationship between businesses and the natural world?

The relationship between businesses and nature is an interdependent one: business operations impact on nature, but they also depend on it.

Nature provides a host of ecosystem services to humans 鈥� and to businesses. Provisioning services are about the resources that businesses need, providing food, water and raw materials. Regulating services offer environmental control, providing clean air, flood protection, carbon storage and pollination.

Ecosystem and provisioning services are vitally important to our society as a whole, and the economy in particular. Therefore, businesses have a vested interest in protecting nature and natural systems. When nature is protected, supply chains are stabilised, and business resilience is more likely.

And it isn鈥檛 just about mitigation of risks. It鈥檚 about understanding opportunities, and about supporting growth. In the final days of the UK鈥檚 general election campaign in July 2024, the Confederation of British Industry made it clear to the incoming government that they 鈥�

When it comes to nature in particular, there are clear, practical figures that can be placed on the value of nature in the economy.

A business case

Ultimately, money is an important thread that runs through this story. Let鈥檚 look at some cold, hard facts.

• In 2020 the in economic value was at risk due to business reliance on nature.
• That figure was reported as being even higher in 2023, at . That means more than half the world鈥檚 total GDP is moderately or highly dependent on nature.
• Research from the Green Finance Institute (GFI) shows that nature degradation could cause a .
• The World Bank estimates that the collapse of some ecosystem services could result in a decline of global GDP of

As Environmental, Social and Governance (ESG)  requirements become business as usual, stakeholders and investors expect companies to reduce carbon emissions in their operations and report, then act, on climate-related impacts. Now, the same urgency applies to nature, but it needs to happen faster. It is well past time for nature to receive the same level of attention.

Given the financial implications, it is understandable that a reporting and disclosure framework that integrates nature into financial decisions has been developed. This set of recommendations and guidance is known as The TNFD (The Taskforce on Nature-related Financial Disclosures).

The nature reporting and disclosure landscape

is the succession to (Task Force on Climate-related Financial Disclosures). It gives organisations and financial institutions a risk management and disclosure framework to assess, report and act on nature related dependencies. There are many similarities to the TCFD: TNFD is based around the same four pillars (governance, strategy, risk and impact management and metrics and targets like risks and opportunities) with many similar or related disclosures. But TNFD also includes the impacts and dependencies of nature, with a specific view on the entire nature value chain.

The TNFD already plays a role in large voluntary reporting structures: in 2023, , and in 2024 after directly collaborating with TNFD. Even when there aren鈥檛 regulatory requirements, it is clear that there is still investor pressure that disclosures are made in line with best practice frameworks like TNFD.

When it comes to mandatory reporting, the EU leads the way. Mandatory disclosures are also increasingly shaped by TNFD recommendations and similar considerations of nature and biodiversity: this is primarily in the EU, from , the and of course on a wider scale due to . Other mandatory systems apply, depending on region: in England, biodiversity net gain (BNG) requires developers to ensure that new developments result in (at least) a 10% increase in biodiversity value compared to the pre-development state. And there are others coming down the track: IFRS S1 and S2 from the International Sustainability Standards Board (ISSB) are due to be adopted in the UK in 2025. While they aren鈥檛 dedicated to nature, they are highly relevant.

Ultimately, reporting initiatives that prioritise nature (especially TNFD), whether they are mandatory or voluntary, are about integrating nature into the heart of business decision making.

To ease the process of understanding operational dependencies and impacts on nature which requires time, data, and resources, businesses should get ahead of the curve by acting now.

Aaron Grainger, associate director, nature and biodiversity, 海角视频

Aaron Grainger is associate director and UK nature and biodiversity team lead at 海角视频. He said, 鈥淐onversations on nature are happening at a fast pace and the Global Biodiversity Framework and commitments made at COP15 are a key driver. Along with the overarching target to protect and restore 30% of land and sea by 2030, there are expectations for large corporates to assess and disclose their impacts on nature.

鈥淚f we think about how long our industry has taken to get a grip on better managing carbon to help combat climate change, it is easy to foresee that fully understanding the interactions between business and nature will be challenging due to the innate complexity of the topic. To ease the process of understanding operational dependencies and impacts on nature which requires time, data, and resources, businesses should get ahead of the curve by acting now.鈥�

The Global Biodiversity Framework

Much of this work is specifically aligned to The Kunming-Montreal Global Biodiversity Framework (GBF), which was adopted in 2022 at COP15. Target 15 of this states that businesses should assess, disclose and reduce biodiversity-related risks and negative impacts.

Sam Holliday, head of nature and biodiversity at 海角视频, said, 鈥淭arget 15 in the GBF specifically targets large and transnational companies and financial institutions. However, all businesses should report on their impacts on nature and associated risks. Many of the companies we work with have interests in Europe, so due to regulations like CSRD and EU Green Taxonomy, they already need to demonstrate improvements to nature. Others are aware that this is coming and need to be prepared.”

We believe clients need to review their strategies now. What are their key material risks? How can they effectively minimise their impacts and provide biodiversity enhancements before it becomes mandatory?

Sam Holliday, head of nature and biodiversity,
海角视频

鈥淲e believe clients need to review their strategies now. What are their key material risks? How can they effectively minimise their impacts and provide biodiversity enhancements before it becomes mandatory? We understand the landscape can feel complex. However, although the reporting framework is relatively new, the principles are ones we have worked with for many years. The key is to work together with clients to identify and understand their dependencies and risks, enabling them to develop robust and practical plans to de-risk their portfolios and operations going forward.鈥�

Nature degradation and its risks must be understood and addressed to ensure future economic and financial resiliency. Reporting frameworks such as the TNFD are providing the impetus and understanding to begin this action.

Other key drivers

ESG reporting frameworks like TNFD are central in mobilising work on nature, as are global pressures like the GBF. But there are other, more opaque factors that businesses must consider. We should note internal policies that most companies now have in place: top-down policies on importance of protecting nature will filter down and affect operations. Stakeholder (investor, consumer and employee) pressure means that businesses have to sit up and pay attention to the necessary work.

The climate crisis is inherently intertwined with a biodiversity crisis. One does not exist without the other; nature preservation is inherently caught up with issues of climate resilience, net zero and decarbonisation, and wider industry and societal efforts to fight the climate crisis. These are issues that are not going away any time soon; fighting for a greener, sustainable and more resilient future must always consider nature and biodiversity.

It is now clear why businesses must value and protect nature. But there is a human story here, too: nature has an intrinsic value, just by existing. More directly, research shows the benefits that time in nature and green spaces brings to us all. Whether that is the physical health benefits that access to nature can bring, we all deserve to visit a park, hike up a mountain, wander around a wood and swim in a clean sea.

Putting nature into the boardroom

Compliance with the rules, getting ahead of the reporting framework landscape and stakeholder pressure are key reasons why businesses need to care about nature. And we鈥檝e seen the risk of not protecting nature when it comes to how much money might be at risk, and how reliant economies can be on the wider ecosystems services the natural world provides.

But for decision makers in the boardroom, there are other reasons that they need to consider the impact of nature in their work. Inherent within the ESG space is the idea that the work is about risk mitigation 鈥� but it is also about opportunities.

Investors and consumers look to a company behaving responsibly to decide where to put their money. As with many aspects of ESG, the protecting and prioritising nature (and reporting on data related to it) increasingly means increased access to capital and improved market opportunities 鈥� perhaps even entering into new markets and sectors. It is part of a wider brand value picture. And this means it can improve top line growth too, with consumers valuing brands who operate in this way.

It is possible to drill down and look at specific instances of the line drawn between ESG work and improving business outcomes. Take commercial real estate, for example. Kirsten Melling is an associate principal in 海角视频鈥檚 US sustainability team. She considers how understanding what key players care about is important in ESG (and in this case, elements of nature). She said, 鈥淚t is up to people like us at 海角视频 to link up companies鈥� efforts in the ESG space with specific outcomes. We can understand what their biggest issues are. For example, is it lack of tenancy and/or low occupier figures? And how does nature help with that?

鈥淲e can demonstrate that differentiating their buildings through biophilic design and natural spaces can increase attractiveness and improve their numbers. This is at individual building and wider company level. Often, nature can provide direct solutions to problems clients have鈥�.

鈥淭here are often these direct links that show how prioritising nature can link directly to business success. Clients can get very overwhelmed with all their considerations around ESG, but we can tell the story of how everything in this area intersects 鈥� and can support their existing, and future, business objectives and challenges.鈥�

There are often these direct links that show how prioritising nature can link directly to business success.

Kirsten Melling, associate principal, 海角视频

Grasping the opportunities that nature can provide 鈥� and understanding the role of reporting and disclosures in doing so 鈥� makes good business sense. Consider this: by 2030 could be unlocked when businesses embrace a nature-positive approach. Transitioning in this way directly equates to success.