Global businesses are undermining the environment even though they rely on nature for key raw materials and critical services such as pollination and water filtration, according to a major report endorsed by more than 150 countries.
“A focus on growth as measured by the gross domestic product” has resulted in significant damage to the natural world, says the study released on Monday. Nearly 80 scientists and industry experts spent three years working on the report, which is designed to inform investment decisions and national policies.
The report was agreed upon by researchers and diplomats at the summit of the Intergovernmental Platform on Biodiversity and Ecosystem Services (IPBES), which concluded in Manchester, UK, on Sunday.
Nature is in decline worldwide, and levels of so-called natural capital — ecosystems and natural resources — have fallen by nearly 40%, the report says. But because markets don't adequately price or value biodiversity, businesses don't experience the cost of the damage and often can't make money from protecting it, meaning there is little incentive to do so, the authors argue.
Nongovernmental organizations and scientists have long argued that defending nature and biodiversity is a way for companies to protect themselves from risks like extreme heat and flooding, as well as loss of the plants and wildlife that are relied upon for food and medicine. But companies and governments still favor investments that are likely to harm nature rather than help it. Some $7.3 trillion was spent on “nature-negative” activities compared to $220 billion on nature-friendly investments in 2023, according to the UN's most recent State of Finance for Nature report.
“Too often, at present, what's good for business is bad for nature, and vice versa,” Stephen Polasky, professor of environmental economics at the University of Minnesota, and co-chair of the report, said in a press conference on Monday. “We can't just say ‘businesses, please be good' — we actually have to tie this to some kinds of mechanisms so they have incentives to take these actions.”
Last Tuesday, the UK's environment minister Emma Reynolds opened the conference by reading out a message from King Charles, who called for countries to “transition towards an economy that prospers in harmony with nature”.
IPBES functions as the biodiversity equivalent of the United Nations' IPCC climate reports that are published every five to seven years to provide a scientific assessment on climate change. The US announced its withdrawal from both processes last month.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
