Landmark report shows global economy driving biodiversity loss, putting human life at risk

Bengaluru; A landmark new report on the impact of business on biodiversity has shown that the global economy has grown at the cost of immense loss of biodiversity, which is now threatening the stability of the economy, finances and human wellbeing.

Prepared by 79 leading experts from 35 countries, 'The Impact and Dependence of Business on Biodiversity and Nature's Contributions to People' warns that the current conditions in which businesses operate are not compatible with the efforts to achieve a just and sustainable future.

The report approved by 150 member countries noted that businesses depend on biodiversity but continues to drive declines in biodiversity. Therefore, a shift was necessary to halt and reverse biodiversity loss but many often lack information to address the impacts as well as risks and opportunities. It was released at the 12th plenary of the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPES).

The experts pointed to a survey of financial institutions representing 30 per cent of global market capitalisation value that lack of reliable data, reliable models and access to scenarios stand as three major barriers to take up nature-related risk assessment and management.

Incentivising biodiversity loss

The current conditions perpetuate business-as-usual as large subsidies are provided to business activities that drive biodiversity loss. It pointed to the 2023 study showing $7.3 lakh crore finance flowed to projects that have direct negative impact on nature while only 3 per cent of that money ($22,000 crore) was given to activities contributing to conservation and restoration of biodiversity.

Professor Stephen Polasky (USA), Co-chair of the Assessment, said the loss of biodiversity was the most serious threat to business. "Yet the twisted reality is that it often seems more profitable to businesses to degrade biodiversity than to protect it. Business as usual may once have seemed profitable in the short term, but impacts across multiple businesses can have cumulative effects, aggregating to global impacts, which can cross ecological tipping points," he said, calling for policy and cultural shifts.

The report proposed three overarching characteristics that can be used to assess which methods are most appropriate for any business of any size or sector: coverage (geographic and extent of impacts and dependencies); accuracy in measuring impacts and responsiveness (the ability of method to detect changes that can be attributed to the actions and activities of the business).