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However, degradation of ecosystem and loss of biodiversity by human activity is an urgent and critical issue. The World Wildlife Foundation reports that the rate of loss of species is between 1,000 and 10,000 times higher than the natural extinction rate.
Investor engagement with companies has so far largely focused on impacts, such as loss of biodiversity through climate change, deforestation, introduction of invasive species decimating natural habitats, and the pollution of land and water. However, biodiversity is fundamental to the ecosystem services on which society and business depend. Purification of water and air, the capture and sequestration of carbon dioxide, and the pollination of crops that provide food are just some examples. It is therefore key that the company’s dependencies on such ecosystem services are included in any biodiversity assessment.
Our 2021 biodiversity engagement project is designed to explore the biodiversity-related governance, strategy and targets of companies in selected sectors classified by UNEP-IF as impacting and depending most heavily on biodiversity.
Key findings from our engagement
- While biodiversity is not always recognised by companies as a specific topic, most of the companies we engaged had taken steps to assess impact.
- While biodiversity loss stemming from high-profile issues such as deforestation linked to commodities was well recognised, not many companies had conducted a wider assessment along the value chain.
- Few companies had taken a holistic approach to nature-related impact, such as linking biodiversity with climate change strategies.
Interested in learning more We explore why biodiversity matters; explain how we’ve engaged with companies across a number of sectors and explore our findings. Download the full viewpoint to discover more.
Use our handy glossary to look up any technical terms you are unfamiliar with.
