Companies told to protect nature now or face extinction themselves

Biodiversity loss a risk to global economy, IPBES report says Report expected to drive policymaking in 150-plus countries ‘Transformative change’ needed such as setting and meeting goals By Simon Jessop LONDON, Feb 9 (Reuters) - Biodiversity loss is emerging as a systemic risk to the global economy and financial stability, a landmark report said on Monday, urging companies to act now or potentially face extinction themselves. The assessment by the Intergovernmental Platform on Biodiversity and Ecosystem Services, three years in the making and signed off by more than 150 governments, is expected to guide policymaking across multiple sectors. Written by 79 experts worldwide, the report pointed to “inadequate or perverse” incentives, weak institutional support and enforcement, and “significant” data gaps as key obstacles to progress. It builds on a 2024 pledge by countries to protect 30% of land and sea by 2030, followed last year by a plan to spend $200 billion on the effort - still far short of the finance flowing into activities that damage nature. ‘BLIND SPOT’ Despite the need for “transformative change”, $7.3 trillion in public and private funds was going to nature-harming activities, the authors said, citing 2023 data. “This Report draws on thousands of sources, bringing together years of research and practice into a single integrated framework that shows both the risks of nature loss to business, and the opportunities for business to help reverse this,” said Matt Jones (UK), one of three co-chairs of the assessment. “Businesses and other key actors can either lead the way towards a more sustainable global economy or ultimately risk extinction … both of species in nature, but potentially also their own.” The report said companies can act now by setting ambitious targets and embedding them in corporate strategy; strengthening auditing, monitoring and performance assessments; and innovating in products, processes and services. Fewer than 1% of public companies disclose biodiversity impacts, it added. Construction, food, pharmaceuticals and infrastructure are among the sectors most exposed to biodiversity loss, research firm Zero Carbon Analytics said, though most companies face risks through their supply chains. Paul Polman, the former boss of consumer goods company Unilever, said business strategy was about managing risk and building resilience, yet nature “has barely featured in that equation”. “The IPBES assessment shows that this blind spot is now becoming one of the defining economic risks of our time.” (Editing by Mark Potter)