Why companies should embrace nature & biodiversity

In a world where the line between business and nature & biodiversity often appears distorted, we, in KPMG, have recently launched a webinar on this pressing topic and TNFD (Task Force on Nature-related Financial Disclosures) to unveil important insights that demand our attention. For professionals seeking to make a positive impact on the planet while reinforcing their businesses, these insights are a beacon of hope and a roadmap to change.

These are key insights from our biodiversity webinar – linking the TNFD to your business strategy:

Nature, often viewed as the living tapestry of our planet, encompasses the interactions among living organisms and their environment, from lush forests to vast oceans. Biodiversity, on the other hand, is the essence of nature—it is the diversity within species, between species and of ecosystems. This distinction is vital as it guides us to safeguard the intricate web of life on Earth.

Our planet's biodiversity is not distributed evenly; instead, it clusters in 36 key areas worldwide, constituting just 2.5% of Earth's surface. These hotspots, rich and diverse ecosystems, are home to more than half of the world's endemic species. For example, the Tropical Andes Biodiversity Hotspot houses one-sixth of all plant life on Earth, with half of its species found nowhere else. Yet, these vital regions are under threat from human development, deforestation, oil extraction and more.

All biodiversity loss stems from human activity driven by land and sea changes, overexploitation, climate change, pollution and the introduction of invasive species. These five factors emphasise our responsibility to address these issues urgently.

Companies wield significant power in either harming or helping nature. The ACT-D Framework, supported by esteemed organisations, provides a roadmap for businesses to act responsibly:

• Assess: Measure, value and prioritise impacts on nature.
• Commit: Set transparent science-based targets.
• Transform: Contribute to system transformation and advocate for policy change.
• Disclose: Track and publicly report nature-related information.

Case studies demonstrate how businesses are successfully adopting these principles.

Over 50% of the world's economic output depends on nature, yet ecosystems have declined by 47%. The TNFD, a market-led initiative, seeks to build a risk management and disclosure framework to identify, assess and manage nature-related dependencies, impacts, risks and opportunities. It strives to drive consistency in the market.

Modelled after the TCFD (Task Force on Climate-related Financial Disclosures), the TNFD offers recommended disclosures, nature-related issues assessment (LEAP) and additional guidance. Recognising that nature varies by location, this approach allows businesses to address their unique challenges. Kirin Holdings is an example of a case study demonstrating the LEAP (Locate, Evaluate, Assess, Prepare) approach to address nature-related challenges successfully.

The TNFD is set to launch on September 18th, marking a pivotal moment in the quest to harmonise business and nature. Professionals worldwide can join this movement towards a more sustainable future.

The insights from the TNFD and biodiversity webinar emphasises the importance of businesses to step up and take action. By embracing nature and integrating it into their strategies, companies can not only mitigate risks but also contribute to the preservation of our planet's invaluable biodiversity. Let us remember that the choices we make today will determine the legacy we leave for future generations.

If you are curious on seeing the full webinar Linking the TNFD to your business strategy, watch the trailer below and scan the QR code at the end.