2 hours ago
3
Nature-positive business operations can contribute to both business success and the environment, according to IPBES’ Business Biodiversity Assessment. Credit: iStock/IPBESBULAWAYO, Zimbabwe & MANCHESTER, United Kingdom, February 9 (IPS) - Business can still remain profitable while protecting the environment but invest in nature-positive operations, says a landmark report by the Intergovernmental Platform on Biodiversity and Ecosystem Services (IPBES), which finds that global companies have contributed to the escalating loss of biodiversity.
The IPBES Methodological Assessment Report on the Impact and Dependence of Business on Biodiversity and Nature’s Contributions to People, known as the Business and Biodiversity Report, says global business has benefited from nature but has immensely contributed to the decline in biodiversity. It is time it changes how it does business because biodiversity decline is a “critical systemic risk threatening the economy, financial stability, and human well-being.”
The global economy, driven by business, is dependent on healthy biodiversity and nature for materials, climate regulation, clean water, and pollination. However, the current economic system treats nature as free and infinite, creating perverse incentives for its exploitation. Businesses are largely rewarded for short-term profit, even when their activities degrade the natural systems they rely on, creating a huge risk to the economy and society, the report said.
The cover of the Business and Biodiversity Report. Credit: IPBESIt Must Be Business Unusual Now
Approved at the recent 12th session of the IPBES Plenary, held in Manchester, United Kingdom, the report calls for the end of business as usual. Global businesses, heavily dependent on nature and impacted by nature, must quickly change their operations or face collapse.
“Businesses and other key actors can either lead the way towards a more sustainable global economy or ultimately risk extinction… both of species in nature but potentially also their own,” noted the report.
Based on thousands of sources and prepared over three years by 79 leading experts from 35 countries from all regions of the world, the report is the first assessment of the impacts and dependencies of business on biodiversity and nature’s contributions to people.
Current conditions perpetuate business as usual and do not support the transformative change necessary to halt and reverse biodiversity loss, said the report, pointing out that large subsidies that drive biodiversity losses are directed to business activities with the support of businesses and trade associations.
For example, in 2023, global public and private finance flows with directly negative impacts on nature were estimated at USD 7.3 trillion. Of this amount, private finance accounted for USD 4.9 trillion, with public spending on environmentally harmful subsidies at about USD 2.4 trillion, the report said.
In contrast, USD 220 billion in public and private finance flows were directed to activities contributing to the conservation and restoration of biodiversity, representing just 3 percent of the public funds and incentives that encourage harmful business behaviour or prevent behaviour beneficial to biodiversity.
The new report shows that business as usual is not inevitable – with the right policies, as well as financial and cultural shifts, what is good for nature is also what is best for profitability, said Prof. Stephen Polasky, co-chair of the assessment, who highlighted that the loss of biodiversity was among the most serious threats to business.
“Business as usual may once have seemed profitable in the short term, but impacts across multiple businesses can have cumulative effects, aggregating to global impacts, which can cross ecological tipping points,” Polasky said in a statement.
A 2019 Global Assessment Report on Biodiversity and Ecosystem Services by IPBES warned that one million species face extinction in the next few years as a result of overexploitation of resources, development, and other human activities, posing serious consequences for people and the planet.
Global business, which turns profits from nature, has contributed to the loss of biodiversity as a result of poor production practices that have poisoned river systems, emitted dangerous high greenhouse gases and led to land degradation. This is despite business being affected by natural disasters, from extreme weather floods and droughts to climate change.
The report is the latest assessment by IPBES, an independent intergovernmental body comprising more than 150 member governments. IPBES, often described as the Intergovernmental Panel for Climate Change (IPCC) for biodiversity, provides policymakers with objective scientific assessments about the state of knowledge regarding the planet’s biodiversity, ecosystems and the contributions they make to people.
The IPBES methodological assessment report warned that the current system was broken because what is profitable for businesses often results in loss of biodiversity.
A Peruvian indigenous Quechua woman weaving a textile with the traditional techniques in Cusco, Peru. The IPBES Business and Biodiversity Report suggests business should integrate Indigenous knowledge into their operations. Credit: iStock/IPBESAn Enabling Environment Is Good for Biodiversity
The report offers a key solution of creating a new “enabling environment” where what is profitable for business aligns with what is good for biodiversity and society. Current conditions — laws, financial systems, corporate reporting rules, and cultural norms — do not reward businesses for protecting nature.
There are many barriers to protecting nature, such as the focus on short-term profits versus long-term ecological cycles. In addition, there is a lack of mandatory disclosure and accountability for environmental impacts, inadequate data, metrics, and capacity within the business community, as well as the failure to integrate Indigenous and local knowledge in biodiversity protection.
The creation of an enabling environment needs coordinated action policy and legal frameworks where governments should integrate biodiversity into all trade and sectoral policies. Besides, there is a need to redirect the USD 7.3 trillion in harmful flows using taxes, green bonds, and sustainability-linked loans to reward positive action.
Businesses must engage with Indigenous Peoples and local communities with Free, Prior, and Informed Consent (FPIC), while access to and sharing of location-specific data on business activities and biodiversity should be improved. Leverage technology such as remote sensing and artificial intelligence for better monitoring and traceability across business supply chains.
Measure It to Manage It
Another key finding of the report is that business could improve the measurement and management of its impacts and dependencies on nature through appropriate engagement with science and Indigenous and local knowledge.
Assessment co-chair Prof. Ximena Rueda noted that data and knowledge are often siloed, as scientific literature was not written for businesses. Besides, a lack of translation and attention to the needs of business has slowed uptake of scientific findings.
“Among business there is also often limited understanding and recognition of Indigenous Peoples and local communities as stewards of biodiversity and, therefore, holders of knowledge on its conservation, restoration and sustainable use,” said Rueda in a statement.
Industrial development threatens 60 percent of Indigenous lands around the world, and a quarter of all Indigenous territories are under high pressure from resource exploitation. However, Indigenous Peoples and local communities often find themselves inadequately represented in business research and decision-making, said the report.
Commenting on the report, Astrid Schomaker, Executive Secretary of the Convention on Biological Diversity (CBD), noted that while all businesses depend on nature, some were more exposed to risks stemming from resource depletion and environmental degradation. She said companies need a deeper understanding of the breadth of their dependencies and impacts on biodiversity to act better.
“In too many boardrooms and offices around the world, there is still a dearth of awareness of biodiversity protection as a business investment,” said Schomaker in a statement. “Too often, public policy still incentivises behaviour that drives biodiversity loss.”
While Alexander De Croo, Administrator, United Nations Development Programme (UNDP), said too often biodiversity is an invisible and expendable asset on a balance sheet of global companies, but that was changing.
“Awareness is now accelerating of the risks to development if biodiversity fails—and of the economic opportunities and future prosperity that emerge where it thrives,” De Croo said.
The report underscored that we cannot business-as-usual our way out of the biodiversity crisis. Governments need to stop incentivising the destruction of biodiversity and start rewarding environmental stewardship. Besides, business leaders should now integrate natural capital accounting into their business strategy to disclose their environmental footprint while contributing to a positive global economy.
The evidence is clear: our economic prosperity is inextricably linked to nature’s health, and we are severing that vital link at our peril.
IPS UN Bureau Report
© Inter Press Service (20260209132525) — All Rights Reserved. Original source: Inter Press Service
