COP15 reaction: Governments send strong and unambiguous signal to businesses
Governments adopt historic UN Biodiversity Global Biodiversity Framework: businesses will be required to assess and disclose their risks, impacts and dependencies on nature
A new Global Biodiversity Framework has been agreed by 196 countries at COP15 in Montreal
“The Global Biodiversity Framework is a wake-up call for businesses and financial institutions. Those not already assessing and disclosing their risks, impacts and dependencies, will need to get ready. This is recognition from governments that business as usual is economically short-sighted, will destroy value over the long term and will no longer be accepted. The strong signal in Target 15 will contribute to transforming our systems to reward positive actions on nature.”
After years of wrangling and discussion, the gavel is finally down, securing a historic new global agreement on nature. For all large and transnational businesses and financial institutions, the message is clear: to get ready to assess and disclose their risks, dependencies and impacts on biodiversity as governments will require them to do so at the latest by 2030.
Businesses have been calling for a ‘Paris moment’ for nature. Today, governments have agreed to require large companies to assess and disclose their impacts, and in doing so, are more explicit about what they expect from business on nature than the Paris Agreement did on climate. Compared to the Aichi target, Target 15 is potentially the single most transformational element of the GBF. The mission to halt and reverse biodiversity loss by 2030 and a robust target on environmentally harmful subsidies provide a clear direction for businesses and financial institutions to rally behind.
“As COP15 concludes, the message to the private sector is clear: businesses around the world and from all sectors will need to take large-scale action now to halt and reverse nature loss by 2030. The Global Biodiversity Framework is set to provide the political certainty that all large businesses and financial institutions will be required to assess and disclose risks and impacts on nature. The result will be stronger accountability and better-informed decisions by investors, governments, consumers and businesses themselves.”
Assessment and disclosure will create fair competition for businesses, increase accountability, engage investors, empower consumers, involve SMEs through supply chains and help ensure the rights of indigenous peoples and local communities.
The evidence shows that disclosure leads to action. Access to the right information will drive better decisions by governments, investors, businesses and consumers, ultimately accelerating the transition to a nature positive economy. Business impacts, both positive and negative, will now be recognized, rewarded or penalized.
While it is disappointing that the numeric target to reduce negative impacts by half was removed, Target 15 as it stands still sends a powerful signal to the global business community that the status quo is over.
We commend the decisions made today and the agreement of the 196 countries. However, the real work starts now, and efforts need to focus on implementation. Businesses stand ready and committed to support these efforts.
“The Kunming-Montreal Agreement will help reset the rules of our economic and financial systems and incentivize companies to choose nature positive outcomes. The final text outlines how harmful subsidies need to be reformed or eliminated, with a numeric target of $500 billion providing a concrete milestone for governments to work towards. Implementation will be critical to ensure money is redirected away from harming nature and towards restoring it.”
“As of today, each and every country that is part of the Convention on Biological Diversity will have to set up an assessment and disclosure framework for companies and financial institutions related to risks, impacts and dependencies on biodiversity. This specific requirement will keep the momentum around biodiversity and accelerate it exponentially.”
A note on language
- The use of the language “ensure that large business and financial institutions” and “including with requirements” creates an obligation on governments to require all large companies to assess and disclose their risks, impacts and dependencies on nature.