Full Breakdown
Landmark Report Highlights Urgent Need for Business Action on Biodiversity Loss
2/25/2026, 12:18:56 AM
Overview of the Business and Biodiversity Assessment Report
On February 9, 2023, the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) released the Business and Biodiversity Assessment report, a comprehensive analysis aimed at addressing the global loss of nature and biodiversity. This report, developed over three years by 80 scientists and private-sector experts, was endorsed by representatives from over 150 IPBES member countries during a plenary session in Manchester, United Kingdom. It serves as a critical reference for businesses regarding nature-related risks and emphasizes the necessity for policy changes by governments.
Key Findings and Recommendations
The report warns businesses of the existential risks posed by biodiversity loss, stating that they must either lead transformative change or face potential extinction. It highlights significant declines in ecosystem services vital for business operations, including raw materials, pollination, and air quality. To combat these challenges, the report outlines over 130 actionable steps that companies can take, categorized into corporate, operational, value chain, and portfolio levels. Co-chair Matt Jones from the UN Environment Programme emphasized the importance of understanding individual business exposure to biodiversity risks.
Context and Timing of the Report
The report's release coincided with the first global review of nature action under the Kunming-Montreal Global Biodiversity Framework (GBF), which took place in Rome from February 16 to 19, 2023. This framework aims to halt and reverse biodiversity loss and mandates that 30% of lands and waters be protected by 2030. In Canada, the government is expected to unveil a revised 2030 Nature Strategy, which will outline commitments to meet GBF targets. Samantha Bayard from Environment and Climate Change Canada noted that while nature-related disclosures are still emerging, there is a growing trend among companies to integrate natural assets into financial disclosures.
Government's Role and the Challenge of Subsidy Reform
The report underscores that voluntary corporate efforts alone are insufficient for achieving transformative change. Co-chair Stephen Polasky from the University of Minnesota stated that government intervention is essential to alter the conditions under which businesses operate. A significant focus of the report is on the harmful subsidies that contribute to biodiversity loss, amounting to US$2.4 trillion in 2023, compared to only US$220 billion allocated for conservation efforts. The report calls for governments to reform these subsidies and incentivize businesses to adopt practices beneficial to biodiversity.
Criticism and Opposition
Critics, including Thomas Walker from the Institute for Sustainable Finance, acknowledge the political complexities involved in subsidy reform. They argue that current fiscal policies often fail to account for environmental impacts, hindering progress. However, Walker also points out that Canadian companies have the experience necessary to begin integrating biodiversity considerations into their decision-making processes immediately.
Verbatim Quotes
- “From my perspective, it plays a role for nature similar to what the [Intergovernmental Panel on Climate Change] has played for climate change,” — Thomas Walker, Institute for Sustainable Finance
- “What is their highest dependency [on nature] or highest impact? Start from that.” — Ximena Rueda, Universidad de los Andes
- “There is a big role here for governments and the financial system to provide incentives for business to do actions that are beneficial for biodiversity and to take away incentives to business to do actions which are harmful,” — Stephen Polasky, University of Minnesota
This report serves as a crucial call to action for businesses and governments alike, highlighting the urgent need for collaborative efforts to address biodiversity loss and its implications for the economy and society.
