Biodiversity and COP16: 5 Reasons to Prioritize It on the Corporate Agenda

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From 21 October to 1 November, the international community will meet in Cali, Colombia, for COP16, the 16th Conference of the Parties to the Convention on Biological Diversity (CBD). Some 14,000 participants are accredited for the Blue Zone, the main negotiating space. About 10% of these participants are expected to come from the corporate sector, while corporate participation in the Green Zone is open to all. There are five emerging global trends with a growing corporate interest in nature and biodiversity.

The World Economic Forum estimated that at least half of the global GDP depends on nature, with 40 per cent of global natural resources in decline. The loss of biodiversity and the collapse of ecosystems are among the three most serious risks of the next decade, according to the WEF Global Risks Report. Added to this are uncertainties related to climate change and geopolitical tensions. SEI researchers analysed international interdependencies in food, energy and mining to understand the associated risks. According to the researchers, the goal is to chart the course for transforming society's relationship with biodiversity and living in harmony with nature by 2050.

COP16 focuses on the implementation of the Global Biodiversity Framework adopted at COP15. All countries are expected to submit updated national strategies (NBSAPs) to achieve the framework's targets, the most relevant ones are:
1. Target 7 -"Reduce pollution to levels that are not harmful to biodiversity", plans to reduce pollution risks and negative impacts of pollution from all sources by 2030;
2. Target 15 - "Companies assess, disclose and reduce biodiversity-related risks and negative impacts" plans to take legal, administrative or policy measures to enable large companies to monitor, assess and disclose their risks.
3. Target 16 - "Enabling sustainable consumption choices to reduce waste and overconsumption", envisages ensuring that people are encouraged and empowered to make sustainable consumption choices.

The 2022 survey by the Nature Benchmark of the World Benchmarking Alliance (WBA) found that only 5% of companies rated their impact on nature, but expectations are changing. In fact, a multi-instrument pilot study, revealed that a list of the top 250 high-impact companies based on the MSCI World index is potentially responsible for 73% of the impact on biodiversity. Investors are increasingly demanding information on these issues. With 177 financial institutions having signed the Finance for Biodiversity Pledge, progress is expected to accelerate. There is a range of tools to support nature-related monitoring and reporting that companies can utilise, such as the Taskforce on Nature-related Financial Disclosures and the Global Reporting Initiative. The MSCI Metrics on nature and biodiversity, the Corporate Guidance Lines of the Science Based Targets Network.

More and more companies are expanding their vision beyond simple risk management, to embrace business models that benefit the environment and create value for nature. The Stockholm Synthesis Report, published in 2022 by the World Business Council for Sustainable Development and the SEI, illustrates how these models can manifest themselves, using six global value chains. According to the World Economic Forum, adopting a nature-centred approach could generate economic opportunities and create new jobs. If biodiversity is placed at the centre of the production process with the aim of developing a bio-based economy, it represents a significant opportunity for both low- and high-income countries. The SEI is organising two side events at COP16 to discuss how to realise this vision.

Sectors such as food, energy and fashion exert significant pressure on biodiversity. Consumer attitudes are therefore crucial. The discussions at COP16 will address issues including overconsumption and trade under Target 16, in which both companies and governments have a role to play. SEI has developed Global Indicators for Consumption (GEIC) and will organise an event to discuss how to reduce overconsumption fairly. In addition, for the first time, the COP on biodiversity will include a Trade Day, with events dedicated to trade and value chains.

All of these trends combined could facilitate negotiations at COP16, addressing the most important challenge, which is to mobilise funding needed to realise the Global Biodiversity Framework. It is essential that the private sector sees this as a strategic investment in the future of biodiversity and the global economy. In this context, the XNatura Platform, by 3Bee Ecosystem enables companies, municipalities and nature parks to monitor their impacts and dependencies on nature, climate and biodiversity and to define a tailor-made climate and biodiversity strategy. Starting with the monitoring of key risk indices, the platform assigns a risk score that highlights which of its sites need priority action, guiding strategic planning in accordance with the CSRD and major international standards, including GRI101 and ESRS E4.