{"id":5916,"date":"2023-04-01T18:44:16","date_gmt":"2023-04-01T15:44:16","guid":{"rendered":"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/?p=5916"},"modified":"2024-03-01T13:24:17","modified_gmt":"2024-03-01T10:24:17","slug":"mandatory-biodiversity-disclosures-are-coming","status":"publish","type":"post","link":"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/news\/mandatory-biodiversity-disclosures-are-coming","title":{"rendered":"Mandatory biodiversity disclosures are coming"},"content":{"rendered":"<p>The Taskforce on Nature-related Financial Disclosures (<a href=\"https:\/\/tnfd.global\/\" target=\"_blank\" rel=\"noopener\">TNFD<\/a>) released the fourth beta version of its risk management and disclosure\u00a0framework today. This is the final beta framework before the full release for market adoption slated for September 2023.<\/p>\n<p>\u201cThe TNFD is a market-led, science-based, government-backed initiative which aims to create a robust and global framework for organizations to assess, manage, and ultimately disclose their impacts, dependencies, risks, and opportunities related to nature,\u201d said Carolin Leeshaa, TNFD taskforce member and national lead of natural capital and biodiversity at KPMG Australia.<\/p>\n<p>The calls for biodiversity disclosures have\u00a0<a href=\"https:\/\/www.triplepundit.com\/story\/2023\/nature-related-risk-disclosures\/764481\" target=\"_blank\" rel=\"noopener\">grown substantially<\/a>\u00a0in the last year from consumers, investors and multilateral organizations as more research comes to light. For example,\u00a0World Economic Forum data\u00a0<a href=\"https:\/\/www.weforum.org\/press\/2020\/01\/half-of-world-s-gdp-moderately-or-highly-dependent-on-nature-says-new-report\/\" target=\"_blank\" rel=\"noopener\">suggests<\/a>\u00a0that half of the world\u2019s GDP is moderately or highly dependent on nature, and further biodiversity loss will pose serious risk to our means of production.<\/p>\n<h2><span id=\"How_does_biodiversity_loss_impact_businesses\">How does biodiversity loss impact businesses?<\/span><\/h2><div id=\"toc_container\" class=\"no_bullets\"><p class=\"toc_title\">Contents<\/p><ul class=\"toc_list\"><li><a href=\"#How_does_biodiversity_loss_impact_businesses\"><span class=\"toc_number toc_depth_1\">1<\/span> How does biodiversity loss impact businesses?<\/a><\/li><li><a href=\"#What_are_the_drivers_of_biodiversity_loss\"><span class=\"toc_number toc_depth_1\">2<\/span> What are the drivers of biodiversity loss?<\/a><\/li><li><a href=\"#Whats_the_state_of_global_regulations\"><span class=\"toc_number toc_depth_1\">3<\/span> What\u2019s the state of global regulations?<\/a><\/li><li><a href=\"#What_can_businesses_do_to_prepare_for_mandatory_biodiversity_disclosures\"><span class=\"toc_number toc_depth_1\">4<\/span> What can businesses do to prepare for mandatory biodiversity disclosures?<\/a><\/li><\/ul><\/div>\n\n<p>Nature provides critical services for business. Natural <a title=\"Guideline for management and use of honeybee colonies for pollination services in Tanzania\" href=\"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/news\/guideline-for-management-and-use-of-honeybee-colonies-for-pollination-services-in-tanzania\">services like pollination<\/a>, water purification, soil health regeneration and regulating climate are essential to all of the world\u2019s economic activity.<\/p>\n<p>For example,\u00a0\u201cAustralia is looking to get to AUS$100 billion (US$66.5 billion) of farm gate output by 2030, and about two-thirds of this target is highly dependent on honeybee pollination,\u201d Leeshaa explained. \u201cThe bees are working for free; we\u2019re not going to send them an invoice.\u201d<\/p>\n<p>As such, declining\u00a0<a href=\"https:\/\/edubirdie.com\/blog\/declining-bee-populations-pose-threat-to-global-food\">global bee populations<\/a>, largely tied to intensive farming practices and global temperature rise, pose financial and systemic risks to the global economy. \u201cThis is why it is important to recognize and account for the full value of the services nature provides, so we can make better, nature-smart decisions,\u201d Leeshaa said.<\/p>\n<h2><span id=\"What_are_the_drivers_of_biodiversity_loss\">What are the drivers of biodiversity loss?<\/span><\/h2>\n<p>Biodiversity loss is linked to\u00a0<a href=\"https:\/\/www.unep.org\/news-and-stories\/story\/5-key-drivers-nature-crisis\" target=\"_blank\" rel=\"noopener\">five key drivers<\/a>, which are largely caused by human influence and impact. The most significant driver is land use change: Taking natural lands like forests and converting them to use in agriculture or urban development is pushing the lion\u2019s share of <a title=\"5 Concerning Effects of Biodiversity Loss\" href=\"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/news\/5-concerning-effects-of-biodiversity-loss\">biodiversity loss<\/a>. The other drivers include <a title=\"Public Awareness on Climate Change\" href=\"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/news\/public-awareness-on-climate-change-2\">climate change<\/a>, pollution, overexploitation of resources and invasive species.<\/p>\n<h2><span id=\"Whats_the_state_of_global_regulations\">What\u2019s the state of global regulations?<\/span><\/h2>\n<p>Announcements and <a title=\"COP15 ends with landmark biodiversity agreement\" href=\"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/news\/cop15-ends-with-landmark-biodiversity-agreement\">agreements made at the COP15<\/a> U.N. <a title=\"Scholarships to Cover Biodiversity Conferences\" href=\"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/news\/scholarships-to-cover-biodiversity-conferences\">Biodiversity Conference<\/a> in Montreal in December 2022 have accelerated the global regulatory outlook on biodiversity. A global biodiversity framework (<a href=\"https:\/\/www.cbd.int\/article\/cop15-cbd-press-release-final-19dec2022\" target=\"_blank\" rel=\"noopener\">GBF<\/a>) was adopted by 196 member states, which includes four goals and 23 targets. The TNFD is working to be closely aligned with the <a title=\"Adoption of a New Global Biodiversity Framework\" href=\"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/news\/adoption-of-a-new-global-biodiversity-framework\">global framework<\/a>.<\/p>\n<p>One of the main highlights of the <a title=\"Recent scientific briefs provide information about the Global Biodiversity Framework goals.\" href=\"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/news\/recent-scientific-briefs-provide-information-about-the-global-biodiversity-framework-goals\">global biodiversity framework<\/a> is the \u201830&#215;30\u2019 target, whereby 30 percent of the world\u2019s land needs to be protected by 2030. Also of importance is Target 15, which requires that signatory governments move to mandate large companies and financial institutions to regularly disclose their <a title=\"Understanding and Minimising Biodiversity Impact\" href=\"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/uncategorized\/understanding-and-minimising-biodiversity-impact\">biodiversity impacts<\/a>, dependencies and risks.<\/p>\n<p>The wheels are in motion, and although reporting at this point is still voluntary, <a title=\"Business Handbook for Biodiversity Conservation and Business Biodiversity Conservation Cases\" href=\"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/news\/business-handbook-for-biodiversity-conservation-and-business-biodiversity-conservation-cases\">businesses should prepare now for the eventuality of mandatory biodiversity<\/a> disclosures. \u201cThe scale and momentum around <a title=\"World leaders urged to back innovative nature financing at One Forest Summit in Gabon\" href=\"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/news\/world-leaders-urged-to-back-innovative-nature-financing-at-one-forest-summit-in-gabon\">nature and biodiversity<\/a> has been quite remarkable,&#8221; Leeshaa said.\u00a0&#8220;What took climate maybe 10 to 15 years to achieve, nature has done in 10 to 15 months.&#8221;<\/p>\n<h2><span id=\"What_can_businesses_do_to_prepare_for_mandatory_biodiversity_disclosures\">What can businesses do to prepare for mandatory biodiversity disclosures?<\/span><\/h2>\n<p>\u201cEducate and <a title=\"International Environmental Governance Capacity Building\" href=\"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/news\/international-environmental-governance-capacity-building\">build awareness with your boards and your executive management around integrating nature into governance<\/a>, strategy, risk management and asset allocation decisions,&#8221; Leeshaa suggested. &#8220;You need to <a title=\"FBE 609 Ecological Risk and Impact Assessment\" href=\"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/study\/fbe-609-ecological-risk-and-impact-assessment\">assess how nature actually impacts<\/a> your business, and how your business impacts nature.&#8221;<\/p>\n<p>The TNFD has created a handy approach for businesses to begin their <a title=\"New framework launched to track progress on coral reef biodiversity\" href=\"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/news\/new-framework-launched-to-track-progress-on-coral-reef-biodiversity\">biodiversity journey and pilot the disclosure framework<\/a>. It\u2019s called\u00a0<a href=\"https:\/\/framework.tnfd.global\/the-leap-nature-risk-assessment-process\/\" target=\"_blank\" rel=\"noopener\">LEAP<\/a>\u00a0(locate, evaluate, assess, prepare) and acts as a four-step process. The first step is to locate your assets and activities that are near high-risk <a title=\"Ecosystems and Conservation\" href=\"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/ecosystems-and-conservation\">ecosystems<\/a>. Evaluate means conducting a biodiversity <a title=\"FBL 204: Ecological Impact Assessment and Environmental Planning\" href=\"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/study\/fbl-204-ecological-impact-assessment-and-environmental-planning\">impact and dependencies assessment<\/a> in these areas. Then, assess the material risks to your organization, and finally prepare to disclose and report your findings.<\/p>\n<p><a href=\"https:\/\/www.triplepundit.com\/story\/2023\/prepare-sec-climate-disclosure-rules\/766336\" target=\"_blank\" rel=\"noopener\">Climate reporting<\/a>\u00a0typically uses a carbon dioxide equivalent as a key metric. In biodiversity, there are many different metrics to use, complicating the process. Biodiversity disclosures also require supply chain investigation, much like\u00a0<a href=\"https:\/\/www.triplepundit.com\/story\/2023\/companies-prepare-sec-climate-disclosure-rules\/768391\" target=\"_blank\" rel=\"noopener\">Scope 3 carbon emissions<\/a>, and businesses should begin having conversations with their suppliers to find out what nature-related data they can access.<\/p>\n<p>The complexity of biodiversity reporting may scare some organizations away, but for this exact reason businesses need to come to grips with the topic. \u201cBiodiversity reporting is coming, it\u2019s more complex than climate, and it represents a material risk,&#8221; Leeshaa said.\u00a0&#8220;That\u2019s why it\u2019s important to get started earlier rather than later.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Taskforce on Nature-related Financial Disclosures (TNFD) released the fourth beta version of its risk management and disclosure\u00a0framework today. This is the final beta framework before the full release for market adoption slated for September 2023. \u201cThe TNFD is a market-led, science-based, government-backed initiative which aims to create a robust and global framework for organizations [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":5917,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-5916","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/wp-json\/wp\/v2\/posts\/5916","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/wp-json\/wp\/v2\/comments?post=5916"}],"version-history":[{"count":5,"href":"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/wp-json\/wp\/v2\/posts\/5916\/revisions"}],"predecessor-version":[{"id":9434,"href":"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/wp-json\/wp\/v2\/posts\/5916\/revisions\/9434"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/wp-json\/wp\/v2\/media\/5917"}],"wp:attachment":[{"href":"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/wp-json\/wp\/v2\/media?parent=5916"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/wp-json\/wp\/v2\/categories?post=5916"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cfwt.sua.ac.tz\/ecosystems\/wp-json\/wp\/v2\/tags?post=5916"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}