As the world transitions to a low-carbon economy, companies could be increasingly expected to demonstrate not just their decarbonisation strategies, but also how they are minimising negative impacts on (and ideally enhancing) biodiversity.
This is likely to include disclosing how they have adopted or plan to incorporate business practices consistent with the sustainable use and management of natural capital, including air, water, land, minerals and forests. Just as companies are striving to embed a carbon price in their decision making, they should also now create formal natural capital accounts to support innovation, conservation and planning for environmental shocks. Aggregate diverse natural resource data will soon be just as important as environmental, social and economic data.
Organisations should not wait for globally agreed frameworks or perfect tools to be available. They should act now.
To get started, companies should:
- Educate – Familiarise leaders across the business with biodiversity concepts, tools and frameworks.
- Enlist – Get involved in biodiversity think tanks and initiatives, such as the TNFD or the Science-Based Targets Network, or local organisations.
- Estimate – Bring in new skills to help map biodiversity risks up and down the value chain.
- Enforce – Set science-based targets and build internal accountability for biodiversity across the business.
- Explain – Disclose what they are doing to identify, measure and manage biodiversity risk.