Read more in the November 8 edition of Invert Insights.
The State of Biodiversity and Business 2024, recently released by Trellis, highlights how large and midsize companies, particularly in North America and Europe, are increasingly aware of their impacts on biodiversity and ecosystems.
Findings from the report include:
A propensity towards recognition vs. action: While nearly all companies recognize the importance of biodiversity, only a quarter view it as a high priority. In contrast, reducing greenhouse gas (GHG) emissions is prioritized by two-thirds of respondents, indicating a gap between biodiversity awareness and dedicated action.
Regulation-driven regional differences: European companies are leading in formal biodiversity assessments and substantive actions, influenced in part by stringent EU regulations, including the Corporate Sustainability Reporting Directive. Conversely, North American companies are more likely to engage in smaller-scale or exploratory projects that address the minimum requirements of existing standards and regulations. One respondent from the US indicated that “financial performance is the priority” resulting in reduced visibility for corporate biodiversity initiatives at the leadership level.
Variance in sector-specific initiatives: Sectors with direct impacts on biodiversity, like agriculture, energy, and manufacturing, are taking more action. Examples include initiatives to support sustainable agriculture, reduce deforestation, and restore wetlands. Service industries tend to focus more on carbon reduction, as their biodiversity impacts are less direct.
Shared challenges: Sustainability professionals cite limited resources, competition with other internal sustainability goals, and a lack of consistent methodologies as major obstacles. Companies using frameworks like the Taskforce on Nature-related Financial Disclosures (TNFD) and European Sustainability Reporting Standards are facing challenges in implementation and clarity, with many respondents indicating that they are not using any published methodology to analyze their impact.
Defined strategic direction: The report calls for businesses to mirror climate efforts by adopting biodiversity standards and committing to transparent assessments. In light of increasing regulations, biodiversity metrics will likely become integral to corporate sustainability strategies.
While businesses are beginning to act, the report demonstrates that there is a need for increased prioritization, investment, and strategic clarity in addressing biodiversity challenges across industries.
💡 With the newly-elected President Trump largely expected to repeal existing environmental protections and climate laws, the minimum expected by existing regulations may be further reduced. Sustainability professionals in the US already struggling with encouraging their organizations to do more may encounter additional headwinds as requirements are decreased or eliminated altogether.
💡 The report underscores a common industry sentiment around consistency and transparency. With corporate strategies aligning to a variety of methodologies and many organizations abandoning published methodologies altogether, efficacy of such initiatives may be limited if efforts are not harmonized for scalability.
💡 Improved awareness and increased support for corporate sustainability initiatives will be integral to successfully addressing the biodiversity challenge and mitigating our impact on nature. Without widespread understanding and adoption, the natural systems we are inherently dependent on will continue to degrade. Continue to use (or raise) your voice to ensure your organization, and businesses you support, prioritize sustainability and the planet.
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