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Key Impact Points:
- 43% increase in biodiversity data disclosures since the Global Biodiversity Framework (GBF) adoption in 2022.
- 33% of global stock market companies now report water data to CDP, with a 22% reduction in water use.
- Fewer than 10% of companies assess their business’s dependency on biodiversity, posing financial risks.
Business momentum in measuring nature and biodiversity impacts is accelerating, according to CDP’s latest data. This progress comes as global leaders convene for COP16 in Colombia to discuss the Kunming-Montreal Global Biodiversity Framework (GBF) implementation. For the success of the GBF, robust corporate disclosure is essential, and CDP’s data is critical to driving accountability.
In the year following the adoption of the GBF, often referred to as the “Paris Agreement for nature,” CDP saw a 43% increase in companies disclosing biodiversity data, alongside a 23% increase in water data reporting and a 10% rise in forest disclosures. This shows that corporate transparency on nature is gaining traction.
Sherry Madera, CEO at CDP, emphasized the growing awareness:
“Nature supports our entire economy, so every business must understand how they depend on it, what the risks are, and then act quickly. Our data shows we are seeing more and more companies coming alive to this, bringing nature into the boardrooms. Strong data is key to hitting the 2030 targets and driving change across the economy.”
Despite these positive developments, significant gaps remain. CDP data reveals that fewer than 10% of companies assess their dependency on biodiversity, despite global estimates suggesting biodiversity loss could cost the economy between $4 trillion and $20 trillion annually. Additionally, only a small fraction of companies have addressed the financial risks related to nature.
Eva Zabey, CEO of Business For Nature, added:
“Agreeing mandatory assessment and disclosure of nature at CBD COP15 was a landmark moment, but now comes the hard part. Today’s CDP data confirms this and highlights the risk businesses continue to face by failing to assess their dependencies on nature. At COP16, governments must introduce ambitious regulations and policies that will unlock corporate nature action.”
Investor interest is also growing. At COP16, 11 major French institutional investors launched a new €100 million fund to invest in biodiversity solutions, using CDP’s data to guide investments in companies committed to reducing biodiversity loss.
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Freshwater management is also seeing progress, with a 24% increase in companies evaluating their water dependencies. This transparency led to a 22% reduction in corporate water use, further illustrating how data-driven reporting can drive tangible action.
CDP’s full report can be accessed here.