Photograph: Spencer Watson/Unsplash
UN negotiators have recently concluded two weeks of intense discussions between countries to progress a global agreement to protect nature for the next decade.
Due to be agreed at the UN’s 15th Biodiversity Conference (CBD COP15) in Kunming, China, the Post-2020 Global Biodiversity Framework is the nature equivalent to the Paris Climate Agreement. It has the potential to scale and speed up action and investment from the private sector, unlock trillions in economic opportunities, and guide global society to achieve the CBD (Convention on Biological Diversity) 2050 vision of “Living in Harmony with Nature”.
The latest draft of the agreement has been produced by a CBD working group chaired by Canada and Uganda. Over the coming months, the draft will get refined to a point where all parties are expected to agree to the text at the COP15 conference next year.
Resilient economies and thriving businesses rely on nature for a stable operating environment, healthy customers and workforces, and natural resources necessary for production. But we are pushing nature to the brink.
There are many improvements in this latest draft, in particular the recognition of the role of business in co-leading the transformation needed. However, many elements still need to be strengthened and refined to ensure the adoption of a transformative framework.
Inextricably linked
While most businesses might not be aware of the COP15 negotiation process, the devastating effects of nature loss and climate change are visible.
Resilient economies and thriving businesses rely on nature for a stable operating environment, healthy customers and workforces, and natural resources necessary for production. But we are pushing nature to the brink. More than one million species are threatened by extinction, and WWF estimates that the cost to business of continued biodiversity depletion could be as much as £8 trillion over the next 30 years.
All companies not only impact but also depend on nature and the resources it provides. Nature provides ecosystem services worth at least $125 trillion a year globally, from which businesses benefit at no cost. From the food we eat to the clothes we wear, businesses depend on freshwater and climate regulation; agribusinesses depend on pollination and pest control; hydropower companies rely on erosion control. Simply put, there is no business on a dead planet.
Those who transform their business models will gain competitive advantage, and forward-thinking companies are committing, acting and advocating for nature.
Taking decisive action to advocate for nature
Businesses must act now to protect, restore and sustainably use natural resources. The World Economic Forum has highlighted that by transforming the three sectors responsible for almost 80% of nature loss (food, infrastructure and energy), a nature-positive economy can unlock $10 trillion of business opportunities.
Those who transform their business models will gain a competitive advantage, and forward-thinking companies are committing, acting and advocating for nature.
Unilever has announced a $1 billion climate and nature fund and committed to protect and regenerate 1.5 million hectares of land, forests and oceans by 2030.
Walmart has committed to protect, manage or restore at least 50 million acres of land and one million square miles of ocean by 2030.
Brazilian pulp and paper company Suzano uses only sustainably-grown wood and has put in place a strict zero deforestation policy.
HSBC has partnered with Pollination to launch the first large-scale investment fund aiming to raise $1 billion to finance a diverse range of activities that preserve, protect and enhance nature over the long term and address climate change.
What businesses can do to take the lead
On a practical level, companies can do the following to make sure they take a leadership position:
Assess their material impacts and dependencies on nature across their value chain and strengthen their accountability systems, incorporating social and environmental contributions.
Commit to setting science-based targets for nature. These targets should be ambitious, measurable, time-bound and public. Companies must also monitor, report and improve on progress.
Act to avoid or reduce the impact on nature and regenerate and restore natural ecosystems. This means transforming business models and giving back more than they take. Firms could redirect assets that over-exploit nature to invest in circular business models and products.
Advocate for more ambitious nature policies. This includes making nature core to the economic recovery from the pandemic, redirecting harmful subsidies towards protecting nature, requiring mandatory nature-related disclosures, implementing green taxes, and creating integrated climate-nature policies.
Incentives for long-term thinking
With all this said, businesses cannot address this global crisis on their own. To accelerate action, governments must set ambitious nature policies that provide a level playing field and stable operating environment. We need a fundamental rewiring of our economic system to recognise and reward long-term performance, not short-term profitability.
While businesses have been part of the problem, they must be part of the solution. Now is the time for us to work together and deliver an equitable, nature-positive and net-zero future where everyone can thrive.
Through the ‘Nature is everyone’s business’ Call to Action, more than 900 companies are urging governments to adopt policies now to reverse nature loss this decade, and I’d encourage all companies to add their support.
The Post-2020 Global Biodiversity Framework, due to be agreed at the CBD COP15 in China next year, is a critical moment when the international community will hopefully consent to a new Paris style agreement, but for nature.
Businesses can and should engage in the discussion to ensure a meaningful outcome. Working with companies, we’re calling on governments to:
Deliver a clear, simple and rallying mission to halt and reverse biodiversity loss by 2030;
Strengthen the targets in the framework to support and require businesses and financial institutions to measure, disclose and report on their dependencies and impacts on nature;
Eliminate or redirect all subsidies and incentives harmful to biodiversity.
Businesses and CEOs should also raise their voices to ensure the right level of ambition is achieved at the UN Climate Change Conference (COP26) in Glasgow later this year, which is an opportunity to urge for greater integration of climate and nature policy.
While businesses have been part of the problem, they must be part of the solution. Now is the time for us to work together and deliver an equitable, nature-positive and net-zero future where everyone can thrive.
