As business leaders committed to a sustainable future, understanding your company’s biodiversity impact is crucial. A recent report by PwC Netherlands and the Association of Investors for Sustainable Development highlights the urgency of addressing biodiversity loss.
The Data
Biodiversity loss, defined as the decline in the number and variety of living organisms, is driven by factors like climate change, pollution, unsustainable land use, and overexploitation. Biodiversity is vital for the resilience of natural ecosystems, which in turn are essential for business. According to PwC, 55% of global GDP is moderately or highly dependent on these ecosystems. The pressure from stakeholders and regulators to take environmental action makes biodiversity loss an issue that business leaders cannot ignore.
Yet, many do. PwC’s 27th Annual Global CEO Survey found that nature-based solutions, key to combating biodiversity loss, ranked lowest among critical climate actions taken by 4,702 surveyed CEOs.
The report cites the World Wildlife Fund, noting that 1 million species are currently threatened with extinction. To help business leaders address this challenge, the report suggests the following principles:
Start with Vision at the Top
Board members and senior management must grasp the complex nature of biodiversity and integrate it into a coherent strategy. Clear messaging from the top can transform biodiversity into a business-critical issue, encouraging finance teams to allocate more resources to biodiversity initiatives.
Set SMART Targets and Incentivize Action
Biodiversity loss stems from multiple factors, making it harder to measure than carbon emissions. By analyzing activities such as land use and pollutant discharge across the supply chain, leaders can set specific, measurable, achievable, relevant, and time-bound (SMART) targets. These targets can drive company-wide action and be tied to rewards and compensation.
Capture Biodiversity and Climate Synergies
Climate change and biodiversity are interconnected, but actions to mitigate one do not always benefit the other. For example, electric vehicles reduce emissions, but mining for EV batteries can harm species diversity. Focus on nature-based climate solutions, like reforestation, alongside decarbonization efforts, and be aware of potential trade-offs.
Business leaders may currently under-prioritize nature and biodiversity, but the potential for progress is significant. Starting with manageable steps—like regreening office campuses—can set a powerful example and promote recovery and restoration.
Take Action Now
Understanding and mitigating your company’s biodiversity impact is not just an environmental imperative but a business one. By embedding these principles into your strategy, you can lead the way toward a sustainable and resilient future.
Orignal Sorce: PwC. (n.d.). What is your company’s biodiversity impact?. Retrieved from https://www.pwc.com/gx/en/issues/c-suite-insights/the-leadership-agenda/business-and-biodiversity-assessing-your-impact.html