'Companies recognize the importance of biodiversity, but take little action'

"The expectations for COP16 are high," says Barwanitz, who is part of the Biodiversity & Nature team at PwC. "During the previous conference, COP15, four ambitious goals for 2050 were established, along with an additional 23 objectives that need to be achieved by 2030. The intention is to halt biodiversity loss by 2030 and achieve a 'life in harmony with nature' by 2050."

Some key points of the established goals and objectives are:

• Protect 30% of the world’s land and water by 2030; 
• Address the causes of biodiversity loss, such as deforestation, pollution and climate change;
• Restore damaged ecosystems;
• Businesses assess, disclose and reduce biodiversity-related risks and negative Impacts. 

Barwanitz: ‘COP 16 is expected to be the implementation summit; participating countries are expected to evaluate, progress and discuss strategies for the effective implementation of the Biodiversity Plan’ and take appropriate measures. Nations will report their findings in the form of National Biodiversity Strategies and Action Plans (NBSAPs).  This also includes financing and monitoring these ambitions.’ 

Economic risks due to loss of biodiversity

Barwanitz notes that the economic risks of biodiversity loss are gaining recognition. Already during COP15 the presence of the private sector was significant. Given companies' reliance on ecosystem services for provisioning, regulating, and cultural needs, and the financial risks of their decline, preserving biodiversity and stabilizing ecosystems is crucial for all stakeholders. For example, a report by PwC shows that 55 percent of global GDP, or 55 trillion euros, is generated by sectors such as agriculture, construction and packaged foods, which are highly or moderately dependent on nature.

Barwanitz: ‘It is important to note that almost all sectors depend on ecosystem services while also contributing to its decline. This decline is the result of impact drivers such as land-use changes from agricultural practices or the increase of invasive species from marine shipping practices. As a result, businesses play an essential role in halting and reversing biodiversity loss.’

Pro-active approach against biodiversity loss

COP15 called on the private sector to assess and disclose their dependencies, impacts, risks and opportunities on biodiversity. Since then, several regulations, frameworks and initiatives targeting biodiversity have emerged:  

• Within the Corporate Sustainability Reporting Directive (CSRD) the environmental topical standard E4 focuses specifically on biodiversity and ecosystems. In-scope companies that identify biodiversity as a material topic are expected to be transparent about how their business activities affect the environment. Barwanitz states: ‘Within the CSRD, companies are required to map their operational sites, particularly in relation to biodiversity-sensitive areas.’
• The Science-Based Targets Network (SBTN) has published guidance for companies to assess their impacts on nature and set science-based targets for nature such as freshwater targets, land targets or ocean targets (about to be published). 
• Within the Task Force for Nature-related Financial Disclosures over 400 companies worldwide have indicated their ambition to adopt the TNFD. 

Most European and Dutch companies are still at the beginning of their journey in managing risks arising from biodiversity loss, says Barwanitz. ‘While many of our clients recognize biodiversity as an important issue, only a small number have made substantial progress. While companies have made high-level commitments to addressing nature and biodiversity loss, few have developed a strategic approach to addressing the issue e.g. biodiversity transition plans.’

Therefore, Barwanitz argues, a proactive approach, including regulatory frameworks that motivate companies to reduce negative impacts and implement actions to protect and restore biodiversity, is essential.

Biodiversity high on the agenda

The importance of protecting biodiversity will increase significantly in the coming years and PwC has therefore placed this topic high on the agenda (globally), which has led to the establishment of the Centre for Nature Positive Business (with more than 500 experts in the field of nature worldwide). Through this Centre, PwC engages in the Taskforce on Nature-related Financial Disclosures (TNFD) by leading the Data & Analytics Working Group and contributing to relevant publications. Additionally, PwC is part of the SBTn Corporate Engagement Program and is listed among the expert advisers. 

The urgency to address biodiversity loss has never been greater, as Barwanitz is aware. ‘It's crucial for companies to begin tackling this issue as early as possible. Additionally, I am convinced the topic of biodiversity will continue to grow, incorporating more resources and a broader range of topics. The good news is that more and more companies are taking action, not only because regulations prescribe it, but because they see the risks but also opportunities to biodiversity.’