Most companies perform strategic and operational risk analysis and develop solutions to mitigate identified risks. However, only 5% of Fortune Global 500 companies have set biodiversity-related targets and assessed their impacts on nature even though the WEF has ranked biodiversity loss and ecosystems collapse as one of the third most severe risks that humanity will face in the next 10 years.
The link between the nature crisis and human activity is now well-established and the five drivers of biodiversity loss identified by IPBES can all be linked to business activities.
Depending on their industry, a company´s operations and supply chain structure will have differentiated direct and indirect impacts on nature.
There are several tools available to assess a company´s impact and dependencies on nature such as ENCORE. If you need support to get started with this process, get in touch.
The Taskforce on Nature-related Financial Disclosures (TNFD) has developed a set of disclosure recommendations and guidance for organisations to report and act on evolving nature-related dependencies, impacts, risks and opportunities.