Nature Conversation

Resetting the economic game in nature’s favour

Szilvia Szabó — Wed, 05 Jun 2024 10:35:04 +0000

Resetting the economic game in nature’s favour

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Nature-positive Economy

Nature Conversation

Sustainable Business

Topic

Sustainable business

Although companies are generally more aware of the climate crisis and are starting to set strategies to manage their carbon footprint, considering nature in goal setting and solutions should be equally essential to their plans.

The UN Environment Program estimates that declines in nature and biodiversity at current trajectories will threaten to reach at least 35 out of 44 of the targets of SDGs.

Eva Zabey, CEO of Business for Nature, a global coalition of more than 90+ partner organisations driving credible business action and policy ambition to achieve a nature-positive economy for all by 2030, says:

“Nature and climate action go hand in hand, and this is why we see nature becoming increasingly central to climate discussions.”

With more than twenty years of working at the nexus of business and nature, her expertise furthers Business for Nature's mission to encourage corporate leaders to accelerate their commitments to biodiversity and support governments in setting ambitious national and global policies in favour of nature.

They collaboratively work on advocacy projects while empowering business action with the support of their partners and leading companies.

Eva Zabey, CEO of Business for Nature

Their campaigns are making a tangible difference, such as the `Make it Mandatory` initiative, which rallied over 400 businesses with over $2tn in revenues to join forces prior to COP15, the UN`s Biodiversity Conference in 2022.

Supported by its partners, the organisation collectively called on governments to pursue a more ambitious `deal for nature` in designing the Global Biodiversity Framework, also known as the Biodiversity Plan, by making nature-related assessments and disclosure mandatory.

Their success and the result send a clear message to large businesses and financial institutions to start assessing and disclosing their risks, impacts, and dependencies on biodiversity, as governments will require them to do so by 2030 at the latest.

The upcoming COP16 will be held in Colombia in October 2024, and Eva explains why it will need to delve deeper into how nations will meet the targets adopted at COP15.

“It will be a key milestone in taking stock of progress and setting the standard for all countries to deliver the Biodiversity Plan. It will be an implementation COP, with countries publishing and showcasing updated National Biodiversity Strategies and Action Plans (NBSAPs).”

She adds that once published, NBSAPs will be implemented through national legislation and regulation that will have direct impacts, opportunities and obligations for businesses.

Business for Nature will collectively urge the adoption of a whole-of-society approach to delivering the mission of the Biodiversity Plan, which aims to halt and reverse nature loss by 2030.

On a practical level, the organisation has developed tools, guidance and campaigns to encourage more companies to transform their business models and value chains.

Developed in collaboration with leading organisations, including the Taskforce for Nature-related Financial Disclosures framework (TNFD), the Science Based Targets Network (SBTN) and the World Business Council for Sustainable Development (WBCSD), they published the `high-level business actions`, also known as the ACT-D Framework, which stands for the Assess, Commit, Transform and Disclose method.

It provides a structured approach for companies seeking to embed nature in their decision-making, minimise their impacts, and contribute to transforming our economic and financial systems.

Building on the ACT-D framework, they also collaboratively developed tailored guidance for 12 distinct sectors, highlighting each sector’s impacts and dependencies on nature, including hands-on examples and recommendations

A joint global campaign, `It`s Now for Nature`, was launched to amplify their message and get more companies involved in developing and sharing credible strategies using a Nature Strategy Handbook that spotlights best practices and provides practical step-by-step guidance.

Eva explains the importance of this campaigns:

“Rewriting our global economy’s ‘rulebook’ is essential to create a level playing field and enable business and finance to take action at the pace science demands.”

Nature Strategy Handbook highlights best practices and practical guidelines. Image: Business for Nature

Eva strongly believes that companies should act immediately, highlighting that developing nature strategies takes time but that companies that start now will stand to benefit vs those that wait.

“There is a huge amount of help and support out there, and delaying action will lead to more acute risks, and making changes will become even harder to implement. The Biodiversity Plan sets the goal and roadmap, and with new tools and leadership from pioneering companies, every business can now join the collective shift to a nature-positive, net-zero and equitable future."

"Becoming nature-positive is a global goal aiming to halt and reverse nature loss by 2030 on a 2020 baseline and achieve full recovery by 2050, which is practically the nature equivalent to climate’s net zero goals."

She further explains that nature-based solutions can provide a third of the climate mitigation needed, and the world’s oceans, plants, animals, and soils are estimated to absorb half of the human-related carbon emissions over the past decade.

Therefore, valuing and embedding nature in their decision-making will help businesses and economies reach their net-zero goals.

A strong movement gaining momentum is the Nature Positive Initiative, which aims to preserve the integrity of ‘Nature Positive’ as a measurable 2030 global goal for nature for business, government, and other stakeholders. They provide tools and guidance besides advocating for the full implementation of the Biodiversity Plan, otherwise known as the Kunming-Montreal Global Biodiversity Framework, by governments and other stakeholders.

Illustration of becoming nature positive by the Nature Positive Initiative. Image: Nature Positive Initiative

According to Eva, there is a growing community of companies that recognise they need to scale and speed up their action on nature and want to be open and transparent about their efforts.

She believes their 'It's Now for Nature' campaign offers a public platform to get more engaged.

“Indeed, voluntary business action is and will remain insufficient.

The transformation needed in our economy and within the private sector will only happen if governments urgently adopt, implement and enforce the policies, legislation, regulations and incentives needed for businesses to effectively support the implementation of the Biodiversity Plan by 2030.”

She says that aligning financial flows to nature-positive outcomes is crucial.

This should include a rapid increase in the volume of investment and realising new avenues for revenue creation, such as tax shifts and green finance.

Regarding their plans, Eva shares what she and her team at Business for Nature are working towards: “I would like us to play a key role in raising the urgency and driving action on nature to the same level as climate. This means an ever-greater recognition of the critical relationship between biodiversity loss, climate change, and sustainable development. These are interconnected issues that must be addressed together by business and government.”

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Unleashing the potential of nature finance: a pathway to mitigate risks and unlock benefits

Szilvia Szabó — Thu, 16 May 2024 15:59:49 +0000

Unleashing the potential of nature finance: a pathway to mitigate risks and unlock benefits

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Finance

Nature-based Solutions

Nature Positive Economy

Nature Conversation

Business

Economy

Topic

Nature Positive Economy

The loss of wildlife has rapidly accelerated and has reached a staggering 69% decline on average since 1970, according to World Wild Fund's latest Living Planet Report, which we could assume is an issue for environmentalists to deal with.

However, nature provides all kinds of ecosystem services that businesses leverage, directly or indirectly, and according to KPMG, more than half the world’s economic output depends on nature, and its contribution is estimated at more than $125 trillion USD annually.

“Businesses rely on nature for products and suitable operating conditions. If these services are lost, it will affect business profitability and viability,” says Gillian Power, Director of Communications and Marketing at the International Sustainable Finance Centre of Excellence (ISFCOE), also referred to as the Centre.

She adds:

“While the economic value extracted from nature has continued to grow, such as crop production, many of nature’s other contributions to people are in decline, like soil productivity or pollinator abundance.”

The Centre first released its scoping study, ‘Nature and biodiversity finance: Risks and opportunities for Ireland’ in 2022 to examine the biodiversity agenda and highlight nature-related risks and potential impacts on various sectors, such as agriculture, real estate, and manufacturing.

Gillian explains that “the financial sector drives nature loss through the activities it lends to, insures, and invests in and is also exposed to financial risks from short- and long-term nature loss.”

Gillian Power, Director of Communications and Marketing at the International Sustainable Finance Centre of Excellence (ISFCOE)

To put this in perspective, she shares an example of the greenhouse gas emissions induced by Canadian banks' investments and loans to fossil fuel companies being 100 times higher than the operational emissions from the banks themselves.

She underscores that the finance sector, with its pivotal role in directing capital flows, has the power to steer away from detrimental practices and towards more sustainable investments, thereby contributing to net-zero goals.

“Banks have allocated over $2.6 trillion to sectors predominantly accountable for biodiversity loss, with many lacking sufficient processes or policies to monitor or mitigate these impacts and their exposure to nature-related risks. Similarly, globally, publicly funded development banks are estimated to finance approximately $800 billion in harmful activities annually.”

Based on their first study, ISFCOE realised that more detailed research covering the full spectrum of biodiversity-related risks and opportunities for the Irish financial system was needed, which led them to publish the Nature of Finance report in 2023.

The Nature of Finance report is Ireland’s first study on nature-related risks and opportunities to the financial sector, published by Dublin-based International Sustainable Finance Centre of Excellence.

KPMG Sustainable Futures and ISFCOE co-authored the report with support from Skillnet Ireland to establish a baseline in this area, raise awareness of the sector's interactions with and reliance on nature, and ignite deeper investigations.

This first-of-its-kind landmark study found that more than half (58%) of Irish lending goes to economic sectors with a high dependency on biodiversity and nature, while 94% (€85 billion) of lending goes to industries that potentially have a high impact on nature.

It also showed a clear link between bank lending in Ireland and economic sectors highly dependent on ecosystem services and impact nature in areas like managing surface and groundwater, climate regulation, flood and storm protection, erosion control, and pollination.

In addition, it recognises that Ireland hosts one of the largest insurance services sectors in Europe, which could open up new opportunities.

“The insurance industry in Ireland is a key agent of change in the move towards a more sustainable economy and society.”

She adds: “Transitioning to a carbon-neutral economic model requires long-term financing, and insurers are amongst the most significant institutional investors.

Many insurers have started to screen their investments using ESG criteria and increase their sustainable investment commitments.

As a result, they have become significant investors in green, social, and sustainable financial instruments.”

Based on her experience, Gillian believes that insurers and reinsurers increasingly acknowledge the imperative of addressing nature-related risks within their risk management and underwriting frameworks.

“Loss of biodiversity and degradation of nature pose risks for the financial sector, including physical risk due to increased frequency and severity of natural disasters such as floods, droughts, and storms, leading to infrastructure damage and disrupted supply chains.

You will also need to manage market risk, which means consumers are shifting preferences towards environmentally sustainable products and services.

Besides, businesses operating in sectors dependent on natural resources may face increased credit risks due to their vulnerability to environmental shocks and regulatory changes.

Given the scale and complexity of nature-related financial impacts, risks, and opportunities and how underdeveloped this area is, the report proposed a draft Nature Finance Roadmap to position Ireland as a leader on the nature finance agenda.

Nature Finance Roadmap draft proposed in the Nature of Finance report as a next step.

This Roadmap mirrors Ireland's Sustainable Finance Roadmap introduced in 2021 and is structured around its five main pillars: developing talent, improving industry readiness, leveraging digital and data, creating a nature-positive enabling environment, and enhancing communications and engagements on nature and finance risks and opportunities.

It also recommends establishing a Nature Finance Roadmap Delivery Group as an additional Pillar 0, including experts and stakeholders from public, private, and academic institutions.

Gillian further explains that the public sector is currently the more prominent actor in nature-based and biodiversity finance, offering financial instruments that would encourage businesses to advance conservation outcomes through tax breaks and other incentives.

She points out that the State also has a critical role in attracting foreign direct investment as capability and critical mass of expertise emerges.

“Our ongoing research in the nature and biodiversity finance space has presented us with a unique set of opportunities for both private and public sector financial actors and businesses in Ireland.

We are also advancing efforts in the space through ‘Communities of Practice’ discussions and by working on developing an upcoming course for finance professionals on Biodiversity Finance.”

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Building the business case for biodiversity in Ireland

Szilvia Szabó — Thu, 16 May 2024 13:56:42 +0000

Building the business case for biodiversity in Ireland

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Topic

The World Economic Forum warned in 2020 that, based on the New Nature Economy Report, approximately $44 trillion of economic value is at moderate or severe risk due to nature loss.

The continued loss of biodiversity and degradation of nature is a looming threat to businesses and communities alike.

“Businesses have a critical role in nature stewardship, but it is challenging to bring their attention to biodiversity and make the link between their operations and impacts visible,” says Lucy Gaffney, Platform Manager at Business for Biodiversity Ireland.

She adds that while some companies are more dependent on and related to nature than others, most have some relationship with it regardless of size or industry.

“A bank, an agribusiness, or a mining company has a completely different relationship with nature.”

According to Lucy, one standard practice is that organisations tend to externalise their impact, which can give the illusion of minimal responsibility and impact.

“It`s the case with Ireland, where you often hear the argument falsely claiming that we are such a small island, so we have no significant impact on biodiversity. In reality, we are very good at using supply chains, leaving the troubles outside the country.”

Lucy Gaffney, Platform Manager at Business for Biodiversity Ireland

But the risks and responsibilities are real, adds Lucy when she explains why businesses should care about this issue more.

She highlights that even though the latest CSRD reporting (Corporate Sustainability Reporting Directive) will not directly apply to most SMEs, they will be forced to deal with sustainability issues as they are part of bigger organisations' supply chains, which will include nature-related issues.

Business for Biodiversity Ireland focuses on creating a safe space and an inspirational community where companies can learn how to connect their operation and strategy with nature.

They are building a multi-sector platform on the pillars of raising awareness, facilitating collaboration, influencing policy, and inspiring action so businesses can mitigate nature-related risks while maximising opportunities and integrating nature into their decision-making.

The organisation aspires to bring together leaders through active participation to share learnings with a learn-as-you-go approach since adopting meaningful biodiversity strategies can be even more complicated than carbon management.

“When you are experimenting with new ideas, there is a fine line between being courageous and being accused of greenwashing. This can lead to greenhushing, a term for consciously concealing sustainability efforts.”

Lucy points out that learning always includes making mistakes, and they try to encourage open and honest discussions that could lead to better solutions.

A critical part of establishing a meaningful biodiversity strategy is identifying the company`s true influence and impact and building a meaningful, long-term plan around that.

To support that process, Business for Biodiversity Ireland created a library of resources available for businesses that would help them better understand how to contribute to a nature positive economy and what the benefits are.

Some guidelines on their website include a Nature Positive Roadmap, a Finance for Biodiversity guide, and a Nature Disclosure tool.

Lucy shares that their role, among others, is to translate and simplify complex concepts so companies can easily see the connection and take action.

“We need to present a distilled version of extensive frameworks, reports, or whitepapers to cut through the noise and make them relevant for decision-makers, providing clear steps they can take.”

Community of Practice sessions provide a safe space for businesses to earn how to connect their operation and strategy with nature. Image: Business for Biodiversity Ireland

Educational activities are also needed to translate biodiversity and make a business case for nature.

“Most people associate biodiversity with pollinators, which is a great first step but not the whole picture. Focusing only on pollinators in communication can actually become misleading since other equally important areas get sidelined because of that.”

She explains that the All-Ireland Pollinator Plan was a very successful campaign and had an overarching positive impact on preserving wildlife in this particular area.

However, Lucy sees this as drifting into dangerous territory by implying that you can tick biodiversity off your list if you are good with pollinators.

“We have so much more that we should discover and protect in Ireland.

Our marine environment is fascinating, and having a natural rainforest that could be restored and expanded along the West Coast is a unique opportunity we could embrace.

Not to mention that an iconic indicator species, the Hen Harrier, also known as the Sky-Dancer, is disappearing from our habitat, but we still have the chance to save it.”

Lucy believes we need to foster more investment-ready biodiversity projects with measurable outputs to help channel attention and finance.

Companies like An Post, Bank of Ireland, or Bus Éireann are already signing up to join Business for Biodiversity Ireland and become more involved with their work through membership, which involves participating in Community of Practice workshops that provide great learning opportunities.

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Trailblazer collaboration sets new narrative for investing in climate action

Szilvia Szabó — Tue, 14 May 2024 15:23:36 +0000

Trailblazer collaboration sets new narrative for investing in climate action

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Climate Action

Nature-based Solutions

Nature Conversation

Collaboration

Topic

Climate Action

While Ireland has the optics of being a green island, it has one of the lowest rates of forest coverage in the European Union.

According to the Irish Agriculture and Food Development Authority, the country witnessed a drastic decline, with only 1 percent of native woodlands remaining compared to 80 percent six thousand years ago.

This might strike as an environmental issue far away from business as usual. Still, a newly forged alliance between a local family business and a charity writes a different narrative.

The Canopy shopping centre in Sligo facilitated a unique collaboration when its owners decided to acquire nearly 90 acres of land for restoration to support Hometree, a charity dedicated to establishing and conserving permanent native woodland.

Situated along the Easkey River in South Sligo, this land is a unique blend of peatland, blanket bog, pockets of ancient Hazelwood, and species-rich grassland.

Ray Ó Foghlu, Hometree's Development Lead, says: "We hope this location will become a showcase site for us and local landowners will see what is possible.

We have plans for a farmer outreach programme here, providing information and financial support for woodland creation along the Easkey River, besides other educational and community programmes.”

Bird`s eye view of the land along the Easkey River in South Sligo to be restored by Hometree. Image:Vincent Monahan, Duck Upon Rock Productions

Hometree's mission to restore Ireland's ancient oceanic woodlands aligns perfectly with The Canopy`s aim to go beyond the obvious when it comes to sustainability in its business strategy.

Neil Monahan, Director of The Canopy, says they were already familiar with the charity`s work.

When a piece of land became available, they started designing a project that could benefit the environment and people locally, in addition to the business sustainability element of managing their carbon footprint.

“Carbon offsetting can seem distant, but we can make it more relatable with this model. We are also in a unique position to create something entirely new, which can also provide learnings and data to other companies,”

Neil says.

He recalls that initially, they didn`t realise the magnitude of this project and all the positive `side-effects` that later justified their investment on multiple levels.

“At first, it was more about land restoration and planting. Then we realised the added benefits of having such rich biodiversity on site that we can further enhance and the opportunity to use this site for education and community engagement.”

Ray adds that as a science-led organisation, Hometree is now working on establishing the ecological baseline for this area by doing walkovers and surveys in addition to using drones and low-orbit satellites so they understand what`s there right now, allowing their expert team to draw up a tailor-made restoration plan.

He also emphasises that with these types of lands, preventing carbon from being released is the biggest win with restoration.

Ray Ó Foghlu (left) and colleague, Jon Dunt (right) from Hometree. Image: Vincent Monahan, Duck Upon Rock Productions

“It`s like putting a cap on a bottle since peatlands are slow to capture carbon but quick to release it,” Ray says, adding that globally, only 3% of the land is covered by peatland, but it holds 30% of the carbon, making degradation a significant threat."

Currently, they are planning for a 12–24 month period, putting measurable indicators into place so they can integrate the learnings to develop the project further.

Besides the positive environmental and community impact, Neil highlights that it makes perfect business sense since their new branding introduced in 2023 revolves around sustainability.

“We carefully designed the interior spaces of the shopping centre, integrating live plants and trees, even adding a green street within the facility where people can enjoy this environment all year round. We are also implementing solar panels to harness renewable energy besides exploring other areas to improve our sustainability.”

They also actively engage with small, sustainable local businesses and facilitate programmes to engage visitors through art, awareness weeks, educational exhibitions, and other events.

Neil admits that they are on the journey to fully explore the potential of a larger-scale sustainability strategy that would help them properly measure their impact across all main activities and engage their stakeholders, especially the shops operating in the centre.

Still, these initiatives have already proven that taking climate action locally as a business brings multiple direct and indirect benefits, including cost efficiency, brand awareness, and customer engagement.

Therefore, they are committed to building on these initial steps and continuing to make a positive impact, including their land restoration project, which they envision as a long-term collaboration with Hometree that can transform local communities and help with climate mitigation.

When asked how the land could look if they succeed, Ray says he would be glad to feel wet under his foot walking these lands instead of dry and crunchy, to see a great variety of native birds returning alongside other species, and to see a site buzzing with life.

He adds that involving farmers is crucial to making this a reality. In the past 2.5 years, he has worked with hundreds of farmers on land restoration and biodiversity projects.

“I believe observation is the beginning of devotion – you have to see it to fall in love with something. In this case, once we can make farmers see what they have on their farms and understand the benefits, it can change their perspective, and they could become advocates for nature with an additional sense of pride.”

Ray hopes that this specific project at the Easkey River will act as an accelerator by delivering tangible results, feeding into their work to restore 4000 acres of native land through facilitating natural regeneration.

Although significant funding and dedicated resources will be needed to achieve their overall goals with the Wild Atlantic Rainforest project, the first steps are promising.

Headline image: Ray Foley and Jon Dunt from Hometree / Photo by Vincent Monahan, Duck Upon Rock Productions

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