Urgent Call for Business Action Against Biodiversity Loss

A recent report by the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) highlights a critical and pervasive systemic risk posed by biodiversity loss to the global economy, financial stability, and human well-being. Approved by representatives from over 150 governments, the report underscores that the rapid growth of the global economy, which surged from $1.18 trillion in 1820 to $130.11 trillion in 2022, has come at the expense of immense biodiversity degradation. This degradation threatens the very foundations of economic activity, as businesses depend on ecosystem services such as water supply, climate regulation, and tourism.

Businesses at Risk of Extinction Without Urgent Biodiversity Action: ReportBiodiversity loss poses major risk to global economy — ReportThe Guardian

The IPBES assessment reveals that businesses often lack the necessary information to understand their impacts and dependencies on biodiversity. It identifies harmful incentives, weak regulations, and short-term profit models as significant drivers of ongoing ecosystem degradation. In 2023, an estimated $7.3 trillion in public and private finance flowed into activities detrimental to nature, while only $220 billion was allocated to conservation efforts. Notably, less than 1% of publicly reported companies address biodiversity impacts in their disclosures.

Businesses at Risk of Extinction Without Urgent Biodiversity Action: ReportBiodiversity loss poses major risk to global economy — ReportThe Guardian

Critics argue that while businesses are central to reversing biodiversity loss, many are not taking adequate action. Eva Zabey, CEO of Business for Nature, emphasizes that the IPBES report serves as an urgent wake-up call, stating, “We have the frameworks. We have the solutions. There is no excuse for inaction.” However, some experts, including Matt Jones, co-chair of the assessment, caution that businesses cannot be expected to act alone. He asserts that collective action involving governments and financial institutions is essential for meaningful change.

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The report stresses the need for governments to create an enabling environment through better policies and financial systems. It outlines over 100 concrete actions that can align economic activity with biodiversity protection. IPBES Chair David Obura notes, “Nature is everybody’s business,” highlighting the necessity for collaboration across sectors to achieve global commitments under frameworks like the Sustainable Development Goals and the Paris Climate Agreement.

Biodiversity loss poses major risk to global economy — Report

To prevent further biodiversity loss, the report advocates for businesses to set ambitious targets, strengthen monitoring and reporting systems, and invest in innovative, biodiversity-friendly technologies. The Food and Agriculture Organization of the United Nations (FAO) Director-General QU Dongyu emphasizes the need for transformation in agrifood systems to ensure sustainable practices that support biodiversity.

Biodiversity loss poses major risk to global economy — Report

• “The loss of biodiversity is among the most serious threats to business” — Prof. Stephen Polasky, Co-chair of the IPBES assessment.

Businesses at Risk of Extinction Without Urgent Biodiversity Action: Report

• “The IPBES assessment is a scientific reality check: biodiversity loss is now a systemic risk to the global economy and business itself. We have the frameworks. We have the solutions. There is no excuse for inaction. We welcome this report as an urgent wake-up call. Businesses, the financial sector and governments already have access to enough information to turn their intention into impact. Let’s put in place the systems and incentives to make it happen, fast.” — Eva Zabey, CEO of Business for Nature.

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• “Better stewardship of biodiversity is not optional—it is a business necessity,” — Prof. Ximena Rueda, Co-chair of the IPBES assessment.

Biodiversity loss poses major risk to global economy — Report

• “Time is not on our side, but this Assessment offers a clear pathway on how we can align economic decision-making with environmental reality, delivering lasting benefits for people and for the planet,” — Inger Andersen, Executive Director of UNEP.

Biodiversity loss poses major risk to global economy — Report

The IPBES report serves as a critical reminder that immediate and collective action is necessary to address the biodiversity crisis, which poses significant risks to the global economy and the future of humanity.

The Guardian