Biodiversity Breakfast Briefing: Five Key Takeaways
“If all the insects were to disappear from the earth, within 50 years all life on earth would end. If all human beings disappeared from the earth within 50 years, all forms of life would flourish.” – Jonas Salk
Last week, FTI Consulting hosted an expert panel event on biodiversity and nature in Dublin, engaging companies on this challenging but critical issue.
As companies and policymakers face mounting pressure from investors, NGOs, customers, and employees to address the impacts of biodiversity loss, and new regulation is forcing many companies to map their dependencies and impacts on nature, there is a need for practical guidance that provides a bridge between science and business. In 2022, COP15 – the biodiversity COP – saw the adoption of the landmark Global Biodiversity Framework, an agreement to work towards 23 action orientated global targets by 2030. Including targets to restore 30% of degraded ecosystems, conserving 30% of land, water, and oceans, and enhancing urban spaces for the wellbeing of people and biodiversity.
Our panelists held an engaging conversation on how corporate action could support the transition to a nature-positive economy in Ireland.
- James D’Ath, Taskforce for Nature-related Financial Disclosures (TNFD)
- Lucy Gaffney, Business for Biodiversity Ireland
- Martin Hofler, Bord Bia
Moderated by Dr Wendy Dobson, Senior Managing Director, Financial Services ESG & Sustainability at FTI Consulting, the panel shared insights not only on the importance of biodiversity to business but also on the practical steps that businesses could take to promote nature-positive outcomes. Here are our top 5 takeaways from the discussion:
For many companies, biodiversity is material to their ability to create future value for shareholders. It’s not only about insects, hedges, and ponds; its about the economic value of ecosystem services, pollinators, and raw materials. This is why the EU’s Corporate Sustainability Reporting Directive (CSRD) requires companies to demonstrate how dependencies and impacts on biodiversity and nature are integrated into business strategy. Yet, it can be difficult for sustainability and ESG managers to make the case for biodiversity internally. Our panel had the following tips to get the company onboard:
- Take a risk-first approach by identifying the risks to future value creation from biodiversity loss
- Simplify the concept and drop the technical jargon
- Build on existing processes in the company such as environmental impact assessments
- Start small with one part of the business as a proof-of-concept
- Think about nature-related commercial opportunities such as more resilient supply chains or new services
Our panellists encouraged companies to ‘drop the fear factor’ and just get started on a high-level mapping of their nature-related risks and opportunities. This is a journey that all companies are just starting and everyone is on a steep learning curve. Our panellists recommended starting with the TNFD LEAP process which guides companies through a series of logical steps starting with carefully scoping the boundaries of the company’s material nature-related issues:
Locate where the company interacts with nature
Evaluate where the company is dependent on nature and where the company impacts nature
Assess the company’s nature-related risks and opportunities
Prepare the company’s approach to managing these nature-related risks and opportunities Following this process will place your company in a good position to start reporting in accordance with the CSRD and TNFD.
A wealth of guidance has been published for companies getting to grips with biodiversity and nature. This includes case studies, methodologies, frameworks, and data sets. Collaboration to achieve nature-positive outcomes was encouraged. There is a misconception that there is a lack of quality data for companies to conduct a nature-related risk assessment. However, there is actually a wealth of data available. The TNFD’s recommendations include practical guidance on how to source and use nature-related data.
Helpful sources of useful material include:
For a lot of companies, nature-related dependencies flow through supply chains. This makes collaboration with suppliers a vital part of the journey. It is recognised that this is daunting for companies with a large number of small suppliers who will themselves be struggling with the issue. Regular engagement and clear expectations are important, and the role of the company’s procurement team is vital to success. For larger companies the implementation of the EU Corporate Sustainability Due Diligence Directive (CSDDD) could be leveraged to drive collaboration. Companies should also think about their indirect impacts on nature and biodiversity through their customers and clients – their ‘scope 3’ nature impact and the other side of the double materiality assessment. Conversations with client-facing teams in companies become critical, including raising awareness of the commercial importance of nature and biodiversity.
In working through risk assessments and materiality processes, you can easily become bogged down in details, technicalities, process, and getting reports out. And for many sustainability and ESG managers there was a valid concern that too much effort was going in to reporting rather than changing business models to have a more nature-positive impact. It was also understandable that companies were nervous about being first movers, getting it wrong, and being accused of greenwashing. Ultimately, the panel urged companies not to shy away from the challenges, and to focus on outcomes and impact, and to articulate these in commercial terms to win the support of the business.
If you need help navigating your biodiversity and nature journey, please contact Holly Pettingale or Wendy Dobson.
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The views expressed in this article are those of the author(s) and not necessarily the views of FTI Consulting, its management, its subsidiaries, its affiliates, or its other professionals.
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