Biodiversity: risks and opportunities for your company

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Biodiversity is crucial for the functioning of natural habitats, as it supports nutrient cycles, water balance and soil fertility and thus provides vital services for the production of food, medicines, clean water and protection against natural disasters. Many economic sectors such as agriculture, fisheries, tourism and pharmaceuticals are also dependent on functioning biodiversity. Our climate also depends on functioning ecosystems, as forests and marine ecosystems in particular play an important role in climate regulation by storing CO2 and supporting carbon cycles. 

 

The loss of this important biodiversity and species diversity is one of the greatest challenges of our time and threatens the continued existence of natural ecosystems and biodiversity and thus harbours considerable risks for the stability and resilience of business models as well as economic and financial systems. 

 

According to estimates in the World Bank report ‘The Economic Case for Nature’, around one million animal and plant species are threatened with extinction. One concrete consequence of this species extinction is the decline in crop pollination. This in turn has a significant impact on food production. It is estimated that without measures to protect biodiversity, there is a risk of an annual GDP loss of around 2.7 trillion US dollars.

 

Regulatory challenges

In 2022, the Kunming-Montreal Global Biodiversity Framework (GBF) defined four long-term goals and 23 action-oriented targts for the first time by 2030, which include the conservation and restoration of natural ecosystems, known as ‘natural capital’, the expansion of such areas, sustainable use, investments in technologies and resources and other measures. Biodiversity is also already embedded in sustainability reporting at a regulatory level as part of the European Sustainability Reporting Standards (ESRS) and is thus relevant for companies subject to the CSRD reporting requirements. The Sustainable Finance Disclosure Regulation (SFDR) also addresses the topic via the Principal Adverse Impact Indicators (PAI), as does the EU Taxonomy, which will also address the environmental objective of biodiversity with the Delegated Regulation from 2024.

 

Why biodiversity affects your company

Many companies underestimate the direct and indirect risks posed by the loss of biodiversity. This can have serious consequences for your business model:

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• Supply risks: The loss of natural resources that your company relies on.

• Reputational risks: Consumers and investors are increasingly paying attention to sustainability. Companies that do not take measures to protect biodiversity could lose trust.

• Regulatory risks: Non-compliance with new reporting requirements can lead to legal and financial sanctions.

• Financial risks: The economic damage caused by biodiversity loss can lead to higher operating costs and lower profits.
   

Our services for your company

We support companies in identifying material risks and opportunities in connection with biodiversity, fulfilling reporting obligations and adapting business models.

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• Risks and opportunities analysis: We help you understand the impact of biodiversity loss on your business and develop appropriate strategies to minimise these risks and take advantage of new opportunities.
   

• Reporting: We offer comprehensive support in the fulfilment of reporting obligations in accordance with ESRS/CSRD, the EU Taxonomy and the Sustainable Finance Disclosure Regulation (SFDR).
   

• Sustainability strategies: We advise you on the development and implementation of sustainable business models that take biodiversity and ecosystem services into account.
   

• Implementation: We support you in implementing concrete biodiversity measures and investing in sustainable technologies and resources.

 

Get in touch with us

 

Would you like to find out more about how your organisation can benefit from our biodiversity and sustainability consulting services? Get in touch with us!