How biodiversity and climate change are interrelated and why business needs to act on both

Biodiversity is the variety of life on Earth, including all the different species, genes and ecosystems that exist in nature. Biodiversity is essential for the functioning of the biosphere, the provision of ecosystem services and human well-being. Biodiversity also contributes to climate change mitigation and adaptation, as healthy and diverse ecosystems can store carbon, regulate water cycles, prevent soil erosion, buffer extreme weather events and provide multiple co-benefits for people and nature.

However, biodiversity is threatened by human activities such as land use change, overexploitation, pollution, invasive species and climate change. According to the Global Assessment Report of the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES), around one million animal and plant species are threatened with extinction, many within a few decades. Biodiversity loss also reduces the resilience and adaptive capacity of ecosystems and societies to cope with the impacts of climate change.

Climate change is the result of the accumulation of greenhouse gases in the atmosphere, mainly due to the burning of fossil fuels, deforestation, agriculture and other human activities. Climate change affects biodiversity by altering the distribution, abundance, phenology, behavior and interactions of species, as well as the structure and functioning of ecosystems. Climate change also exacerbates other drivers of biodiversity loss, such as habitat fragmentation, invasive species, disease and forest fires.

Biodiversity and climate change are therefore interrelated and interdependent issues that require urgent and coordinated action by all sectors and stakeholders. Businesses have a key role to play in addressing both challenges, as they depend on and impact biodiversity and climate through their operations, products, services, supply chains and investments. By developing a biodiversity conservation strategy linked to their climate transition plan, companies can not only reduce their environmental footprint, but also create value for themselves and society.

Integrating biodiversity and climate action into business strategy has several advantages for companies:

• It can help them meet current and future regulations and standards aimed at protecting biodiversity and limiting global warming. For example, the EU Biodiversity Strategy 2030 sets ambitious targets for nature conservation and restoration, as well as sustainable agriculture, forestry, fisheries and trade. The EU also aims to achieve climate neutrality by 2050 under the European Green Pact.
• It can help them enhance their reputation and credibility among their customers, investors, employees, partners and regulators. By demonstrating their commitment and contribution to global biodiversity and climate goals such as the Convention on Biological Diversity (CBD) and the Paris Agreement, companies can improve their brand image, customer loyalty, investor confidence, employee engagement, stakeholder relations and social license to operate.
• It can help them improve their competitiveness and innovation in a low-carbon economy. By reducing their emissions and improving their efficiency, companies can save costs, access new markets and opportunities, and stimulate innovation. By supporting or investing in natural or technological solutions that can remove carbon from the atmosphere or avoid emissions elsewhere (such as forest protection or renewable energy projects), companies can also generate additional sources of revenue or offset their residual emissions.
• It can help them increase their resilience and adaptation to the impacts of climate change. By restoring or enhancing natural ecosystems that can buffer extreme weather events (such as wetlands or mangroves), companies can reduce their exposure to physical risks such as floods or storms. By diversifying their sources of raw materials or suppliers that depend on biodiversity (such as crops or fibers), companies can reduce their vulnerability to supply chain disruptions or price fluctuations.

To develop a biodiversity preservation strategy linked to their climate transition plan, companies should follow a systematic approach that includes:

• Measure and report on its carbon footprint and its impact on biodiversity throughout its value chain.
• Set science-based targets to reduce their emissions and improve their biodiversity performance in line with global targets.
• Apply best practices, standards or innovations that can avoid or minimize their emissions and biodiversity loss.
• Support or invest in natural or technological solutions that can restore or improve ecosystems or eliminate or offset emissions.
• Disclose its progress and results in a transparent manner.

Several tools and guidelines exist to help companies integrate biodiversity and climate action into their business strategy. For example:

• The Global Reporting Initiative (GRI) provides a framework for sustainability reporting that covers both biodiversity and climate indicators.
• The Science Based Targets (SBTi) initiative helps companies set emission reduction targets consistent with the level of decarbonization needed to limit global warming to 1.5°C or well below 2°C above pre-industrial levels.
• The Task Force on Climate-related Financial Disclosures (TCFD) recommends a set of voluntary disclosures for companies to report on their climate-related risks and opportunities.
• The Natural Capital Protocol provides a standardized framework for companies to measure and value their impacts and dependencies on natural capital, including biodiversity.
• The Business for Nature coalition provides a platform for businesses to demonstrate their leadership and commitment to nature and demand ambitious policies and actions to reverse the loss of nature.

They can also contribute to global efforts to protect and restore biodiversity and limit global warming, as well as to the achievement of the Sustainable Development Goals (SDGs).