Biodiversity loss is a global systemic risk. Wildlife populations have declined by an average of 69 percent since 1970, with an estimated one million plant and animal species at risk of extinction by 2050 – approximately 25 percent of all species on Earth. More than half of the world’s GDP is either moderately or highly reliant on nature’s services, and by some estimates tens of billions of dollars in assets could be at risk of stranding over the next five to 10 years if companies continue to produce commodities that drive deforestation. Companies must meaningfully assess and address their nature-related impacts, dependencies, risks, and opportunities to avoid the near- and long-term risks of global biodiversity loss.

A number of frameworks are under development to help companies undertake these assessments and set goals for mitigating their biodiversity impacts. The Taskforce for Nature-related Financial Disclosures (TNFD) launched in September 2023, and investors are set to soon unveil Science-Based Targets for Nature. Increased nature and biodiversity reporting has been incorporated into the Global Reporting Initiative (GRI), and Europe’s Corporate Social Responsibility Directive (CSRD) will include biodiversity reporting as well. These emerging frameworks will help uncover harmful practices and catalyze systemic change for a nature-positive future.

Green Century has long worked to advance protections for nature through our work to preserve natural forests, grasslands, savannahs, and the threatened species that call them home. In recent years, our biodiversity-related work has focused largely on asking companies to eliminate deforestation and native vegetation conversion from their supply chains. In fall 2023, we filed our first proposals that specifically address biodiversity, asking companies including PepsiCo and Kellanova to complete material biodiversity dependency and impact assessments to identify the extent to which the company’s supply chains are dependent on nature and vulnerable to risks associated with biodiversity loss and the degradation of natural capital.

Just as we can no longer take our climate for granted, it has become clear that we cannot take nature for granted. Companies must find nature-positive approaches to all aspects of their businesses, from supply chains to manufacturing to distribution, and investors can play a crucial role by insisting that companies take concrete steps to address the systemic risk of global biodiversity loss. As COP15 made clear, financial flows must be redirected away from activities that harm nature. Or, put another way, “Since nature is everybody's business, there's no company that can stand on the sidelines.” The future of life on Earth depends on it.