Introduction
We’re in the midst of a biodiversity crisis. We’re seeing species loss at unprecedented rates and a growing recognition that biodiversity loss is bad for business with more than half the world’s GDP reliant on nature – but for many business leaders the question remains where do we start?
We’ve developed this resource to outline everything you need to know about the biodiversity crisis and how businesses can play a critical role in the response, recognising that nature positive is becoming the new net zero as biodiversity loss moves alongside climate change as one of the most critical challenges of our time.
If action against climate change has been about shaping ‘how we want to live’ then the response to addressing biodiversity loss is about ‘whether we want to live.‘
The Biodiversity Loss Crisis
Planetary Boundaries: Understanding the Limits We’re Crossing
The planetary boundaries concept outlines nine critical processes that regulate the Earth’s stability and resilience, within which humanity can safely operate. In September 2023, scientists quantified all nine boundaries for the first time and found that six have already been breached, including those related to biodiversity and climate.
The consequence of crossing these boundaries heightens the risk of large-scale, irreversible environmental changes, posing significant threats to both human societies and the ecosystems we depend on and emphasises that addressing climate change alone is insufficient; we must also urgently focus on biodiversity loss to mitigate these escalating risks.
This research added further fuel to the findings in the World Economic Forum’s Global Risks Report when biodiversity loss was ranked amongst the three biggest threats facing humanity, placing nature just behind climate change and extreme weather as the most critical challenges we will face over the next 10 years.
This report emphasised what we already know and that these challenges are, of course, inextricably linked; and as ecosystems degrade their ability to regulate the climate diminishes so this is not just an ecological issue but a critical risk that could significantly impact global economies, business operations, and cause widespread environmental, economic, and societal disaster.
Globally, over 1 million species are currently at risk of extinction, wildlife populations have declined by 68% since 1970, and 75% of Earth’s land has been altered, leading to significant habitat loss.
Whilst closer to home, The Australian government’s State of the Environment report revealed equally alarming declines in the country’s biodiversity and ecosystem stability, with over 1,900 species now threatened or endangered and 7.7 million hectares of native vegetation lost between 2000 and 2017 due to land clearing.
Despite 22% of Australia’s land being protected, many ecosystems remain at risk due to insufficient management and external pressures, underscoring the urgent need for stronger conservation efforts and sustainable practices. This report, alongside similar global findings, is compelling leaders to recognize the severe impact of environmental degradation.
Across the globe, reports like these are forcing leaders to wake up to the damage we have done to nature.
The United Nations makes a global call to action.
The UN Secretary-General António Guterres delivered this message clearly in his opening address at COP15 when he told delegates that “humanity has become a weapon of mass extinction” with more than 1 million species now threatened with extinction vanishing at a rate not seen in 10 million years and 40% of Earth’s land surfaces now considered degraded.
Guterres shared that we must fundamentally transform the systems such as food production, infrastructure, energy and mining which account for 79% of the impact on threatened species if we hope to shift from destructive human activity to a nature-positive economy.
In this address he urged global leaders to overcome their differences and reach agreement on protecting nature saying “it’s time for the world to adopt a far-reaching biodiversity framework – a true peace pact with nature – and deliver a green, healthy future for all.”
Guterres then presented the Kunming-Montreal Global Biodiversity Framework and called for its adoption. What has followed is a great sign of hope and critical for business leaders to understand as biodiversity loss becomes so much more than just an environmental responsibility but rather a necessity for long-term survival.
The Global Response to Biodiversity Loss
Introduction to the Kunming-Montreal Global Biodiversity Framework (GBF)
In December 2022, over 190 world leaders adopted the Kunming-Montreal Global Biodiversity Framework (GBF) representing a historic agreement, and made commitments aimed at halting and reversing biodiversity loss worldwide by 2030.
Key targets within the Global Biodiversity Framework include protecting 30% of the planet’s land and oceans by 2030, reducing pollution and preventing further habitat degradation, and mobilizing financial resources to support conservation efforts and achieve these goals.
Australia was among the countries who committed to ambitious targets to conserve and restore ecosystems, protect species, and promote the sustainable use of biodiversity.
The promise to protect 30% of nature by 2030 is a bold commitment that will require Australia to build on progress that has increased protected land from 7% to 22% since the 1990s, however achieving the next 8% will be a huge challenge requiring an additional 60 million hectares of protected land added to the conservation estate.
The need for innovative incentives to encourage private landholders to participate as well as frameworks to force businesses to help funding this activity is going to be critical.
The Global Biodiversity Framework outlines the role for business
Among the Global Biodiversity Framework objectives was Target (15) which outlined the role of businesses in the response to this crisis.
Target 15 (GBF)
Encourage and enable businesses [to] … regularly monitor, assess, and transparently disclose their risks, dependencies and impacts on biodiversity, including with requirements for all large as well as transnational companies and financial institutions along their operations, supply and value chains and portfolios.
As this article from Wedgetail calls out, this target paved the way for the launch of the Taskforce for Nature-based Financial Disclosures (TNFD) which will completely reshape the expectations of business in relation to the way they engage with nature.
Frameworks for Integrating Biodiversity in Business
Introducing The Taskforce on Nature-related Financial Disclosures (TNFD)
The Taskforce for Nature-based Financial Disclosures (TNFD) is an emerging framework designed to help businesses identify, assess, manage, and disclose their dependencies and impacts on nature.
Similar to its climate-focused predecessor, the Taskforce for Climate-related Financial Disclosures (TCFD), the TNFD aims to integrate nature-related considerations into financial decision-making. This framework was developed in response to the growing recognition that biodiversity loss poses significant risks to global economies, and it seeks to provide businesses with a structured approach to address these challenges.
At the core of the TNFD is the LEAP assessment approach, which stands for Locate, Evaluate, Assess, and Prepare. This methodology guides companies through the process of identifying where their operations intersect with nature, evaluating the seriousness of their nature-related risks, assessing both risks and opportunities, and preparing to disclose their findings. By making these connections clear, the TNFD framework enables businesses to understand the full scope of their environmental impact and to take actionable steps toward mitigating risks and leveraging opportunities.
Many businesses may also be aware of the Science-Based Targets for Nature (SBTN) which relates closely to the Taskforce on Nature-related Financial Disclosures (TNFD) and aims to integrate nature-related risks and opportunities into financial decision-making.
Similarly, the Natural Capital Protocol supports SBTN by offering a framework that businesses can use to assess their impacts and dependencies on nature, whilst the IUCN Global Standard for Nature-Based Solutions provides a rigorous and science-based approach to implementing projects that can be integrated with the frameworks and goals of the Natural Capital Protocol, TNFD, and SBTN, thereby contributing to a holistic approach to preserving and enhancing natural ecosystems in business practices.
Why Biodiversity Loss is Bad for Business
Biodiversity loss poses significant direct and indirect risks to businesses, including the depletion of essential natural resources, supply chain disruptions, and increased regulatory pressures. Biodiversity is crucial for sustaining the ecosystems that provide vital services like water filtration and climate regulation, which are essential for long-term business viability.
With an estimated 50% of the global economy reliant on nature, the degradation of natural ecosystems can lead to increased operational costs, reduced productivity, and financial losses. Conversely, companies that invest in biodiversity and nature-positive strategies tend to see higher financial returns and enhanced resilience, underscoring the economic importance of proactive biodiversity management.
Biodiversity is essential to the success of various industries, from agriculture and pharmaceuticals to tourism. Companies that depend on natural resources for raw materials, like food and medicine, face significant risks if ecosystems continue to degrade. For instance, the collapse of pollinator populations could disrupt food supply chains, while the loss of medicinal plants could limit the development of new drugs. However, businesses that proactively integrate biodiversity into their strategies can unlock new revenue streams, enhance their brand reputation, and improve resilience against environmental shocks. Companies like Unilever and Patagonia have already seen the benefits of investing in biodiversity, demonstrating that nature-positive practices can lead to financial success and a stronger market position.
Nature-Positive Plans
What Does Nature-Positive Mean?
A concept that has birthed out of this heightened focus on addressing biodiversity loss has been “nature-positive”.
Nature positive refers to actions that not only minimize harm to nature but actively contribute to the restoration and enhancement of biodiversity. The goal is to reverse current trends of biodiversity loss and put nature on a path to recovery by 2030. This approach ensures that human activities contribute more to nature than they take away, ultimately leading to net-positive outcomes for ecosystems.
Adopting a nature-positive approach offers businesses significant benefits, including enhanced reputation, increased stakeholder trust, and long-term sustainability. By aligning with nature-positive principles, companies can better meet regulatory requirements, capitalise on new market opportunities like biodiversity credits, and gain a competitive edge in a sustainability-focused market.
Successful examples from various sectors, such as sustainable farming practices and biodiversity-focused financial products, illustrate how businesses can contribute to environmental conservation while achieving their financial goals.
How Voluntary Biodiversity Credits fit into nature positive plans
What Are Voluntary Biodiversity Credits?
Voluntary biodiversity credits are certificates that represent a measured and evidence-based unit of positive biodiversity outcome that is durable and additional to what would have otherwise occurred.
These credits are generated through actions that improve biodiversity, reduce threats to it, or prevent an anticipated decline. They are a powerful tool for businesses looking to contribute to biodiversity conservation and achieve nature-positive outcomes.
Biodiversity credits play a crucial role in a nature-positive plan by providing businesses with a tangible way to invest in biodiversity restoration and represent a market expected to grow significantly in the coming years to reach $2 billion by 2030, with potential growth to $69 billion by 2050.
We’ve compiled the most comprehensive list of resources relating to biodiversity credits, exploring the global landscape of credit developers, drivers for demand and supply, and expectations on the size of the market in the years to come.
Visit our Biodiversity Credit Hub to access the latest reports and resources
An example of a Voluntary Biodiversity Credit: Wilderlands Biological Unit (BDU)
Wilderlands have developed one of the world’s first voluntary biodiversity credits and built a platform to make it simple to start protecting nature today.
The Biological Diversity Unit © is a one square metre unit that promises permanent protection and 20 years of active management of high-conservation value projects across Australia.
Wilderlands partners with leading conservation organisations to unitise the impact of their work and make biodiversity protection accessible through the development of one of the world’s first voluntary biodiversity credits.
A Biological Diversity Unit (BDU) can only be issued and assigned once. The assignment of these units comprises a claim to the protection of high strategic conservation value land and a fixed term ecosystem services payment contract which supports maintenance and/or improvement in habitat condition over that fixed term.
Unlike compliance markets, Biological Diversity Units are not designed as a direct offset for biodiversity or habitat loss. Rather, they are a mechanism to support net biodiversity gain and contribute towards the Global Biodiversity Framework’s 30 x 30 target.
Read the Wilderlands Whitepaper
Case Study: Biodiversity Credits embedded into businesses
Wilderlands have demonstrated how biodiversity credits can be embedded into different partners of a business, ranging from products, to events, and even staff gifts.
An example of a truly unique partnership has been with beauty brand Alive Body to create the al.ive body x Wilderlands Limited Edition Duo, a product inspired by the Coorong Lakes and promising to protect one square metre of the project with every pack sold.
Every detail of this product has been connected back to the Coorong, from the enchanting scent of Coastal Wildflowers that grow in the region through to the serene sky blue shade that encapsulates the essence of the untamed coastal landscape, it has been crafted with natural ingredients and proudly made in Australia.
Wilderlands has also partnered with organisations including Adelaide Festival, Elliephant, and Lendlease to provide real-world examples of how businesses can protect the planet whilst putting impact into every purchase from their customers.
FAQs About Biodiversity and Business
Integrating biodiversity into business operations enhances sustainability, reduces risks, improves brand reputation, and can lead to higher financial returns.
Businesses can measure their biodiversity impact by using frameworks like the TNFD, SBTN, and Natural Capital Protocol, which provide tools and methodologies for assessing and reporting on biodiversity outcomes.
Industries most affected by biodiversity loss include agriculture, forestry, fisheries, tourism, and any sector that relies heavily on natural resources.
Voluntary biodiversity credits are certificates representing a positive biodiversity outcome, which businesses can purchase to offset their environmental impacts and support conservation efforts.
Being nature-positive demonstrates a company’s commitment to sustainability, which can enhance its reputation, build stakeholder trust, and attract environmentally conscious customers and investors.
Key frameworks include the Kunming-Montreal Global Biodiversity Framework, Taskforce on Nature-related Financial Disclosures, Science-Based Targets for Nature, Natural Capital Protocol, and IUCN Global Standard for Nature-Based Solutions.
