Businesses worldwide now have clearer guidance on measuring their impact on nature and managing biodiversity-related risks, following the publication of a landmark international report.
The Methodological assessment Report on the impact and dependence of business on biodiversity and nature’s contributions to People (also known as the Business and Biodiversity Assessment) was published today by the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES).
The report finds that the global economy's growth from $1.18 trillion to $130.11 trillion between 1820 and 2022 came at the cost of immense biodiversity loss. This loss now poses a critical and pervasive systemic risk to the economy, financial stability and human wellbeing.
Businesses are central to halting and reversing biodiversity loss, but many lack information to address their impacts and dependencies, as well as the risks and opportunities relating to biodiversity and nature’s contributions to people. Fundamental change is possible and necessary to create a system change to align what is profitable for business with what is beneficial for biodiversity and people.
The report was prepared over three years by 79 leading experts from 35 countries and approved by over 150 governments at the IPBES-12 plenary in Manchester last week. JNCC was part of the UK's delegation team at IPBES-12, supporting Defra with scientific and technical advice throughout the negotiation of the findings.
The report identifies that $7.3 trillion in global finance flows in 2023 had directly negative impacts on nature, compared to just $220 billion directed towards conservation and restoration activities.
Even companies that seem far-removed from nature rely, directly or indirectly, on material inputs, regulation of environmental conditions – such as flood mitigation and water supply – and non-material contributions such as tourism or education. But businesses often bear little or no financial cost for their negative impacts and many cannot currently generate revenue from positive impacts on biodiversity.
A recent survey among financial institutions representing 30% of global market capitalisation value found that the three most cited barriers to greater uptake of nature-related risk assessment and management are: access to reliable data; access to reliable models; and access to scenarios.
JNCC can play a pivotal role in addressing these barriers by combining our statutory authority with scientific expertise. Beth Stoker, JNCC’s Director of International Evidence and Advice said:
"Sound scientific evidence and reliable data are essential for businesses to make informed decisions that benefit both their bottom line and the natural world. As the hosts of the UK Biodiversity Indicators, an accredited official statistics compendium, JNCC ensures ready access to sound and reliable data on biodiversity in the UK. Further, JNCC is working collaboratively with the UK Centre for Ecology & Hydrology (UKCEH), British Trust for Ornithology (BTO), and the University of Cambridge to develop a modelling framework to produce both pathways and scenarios for UK nature, which can be used to evaluate the consequences of different choices."
The report provides businesses with practical methods to assess which approaches are most appropriate based on coverage, accuracy and responsiveness. It sets out more than 100 specific actions across five areas: policy and regulatory frameworks; economic and financial systems; social values and culture; technology and data; and capacity and knowledge.
To maximise the opportunity IPBES-12 offers, the UK Government alongside partners JNCC, UKRI and NatureAlpha has been coordinating a Parallel Programme of engagement events which will continue following the publication of the Business and Biodiversity Assessment. This Programme will focus on highlighting the findings of the assessment to enhance the contribution of the private sector towards the UK’s domestic and international environmental goals whilst showcasing the UK’s science and innovation capabilities for environmental monitoring, prevention of biodiversity loss and sustainable economic growth.
Beth said: "JNCC welcomes the continued conversation with the private sector through forthcoming events; and we look forward to hosting a biodiversity and business summit with the UK Business and Biodiversity Forum ahead of the 17th Conference of the Parties to the UN Convention on Biological Diversity in Armenia."
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