Written by: Kaylene Leong
22 October, 2023
‘The world is facing three major crises today: the loss of biodiversity, climate change and the pandemic’(1). Biodiversity has always been crucial. We always hear news about the extinction of species or the deforestation of habitats, as well as organisations, such as the World Wide Fund for Nature (WWF) and Greenpeace, which have been around for many years. When researching about the environment and climate change, the buzzwords used are often “Big Oil, greenwashing, renewable energy, COP26 and COP27,” however biodiversity isn’t a phrase which comes up often enough. This article aims to explore biodiversity’s veritable importance by analysing the reasons behind the increased focus on biodiversity and the potential future of biodiversity, in order to give it the awareness needed.
Defining Biodiversity
Biodiversity is defined as the existence of a wide variety of flora and fauna living in their natural environment(2). Biodiversity does not only concern itself with animals and plants, but also gene pools and the diversity of ecosystems, as well as the interconnected functions which they play in this world. We are dependent on this biodiversity for food, energy, medicine, and our lives(3).
Reasons Behind the Increased Focus on Biodiversity
Nowadays, we are starting to see more of a focus on biodiversity. One reason for this is that companies and investors are starting to invest more in biodiversity. There has been an increase in sustainable finance, to the point where the sustainable finance market has grown to nearly $1.6 trillion globally in 2021(4). Some of the ways companies have helped contribute to the growth of sustainable finance is by raising capital to put towards nature-based economic opportunities, and also trying to analyse how portfolio companies are contributing to biodiversity loss(5). It is unfortunate that it has taken this long for companies to realise the importance of biodiversity, and even now there is not enough done. It was found that in 2020 that not a single one of the world’s 75 largest asset managers had any policies on mitigating the harm done to biodiversity(6). One of the biggest issues for investors in the past has been a lack of formal framework to report risks and opportunities(7). However, things are changing and frameworks, such as the Taskforce on Nature-related Financial Disclosures or the GRI Biodiversity Standard have been implemented, giving more clarity and less opportunity for excuses to not protect biodiversity(8). This new focus on biodiversity and the potential impact of investments cannot be understated, as these funds can now be used to support the environment rather than harm it.
A secondary reason for the increased focus on biodiversity is due to the pandemic and the increase of zoonotic diseases. Zoonosis is defined as ‘an infectious disease that has transitioned from a vertebrate animal to humans(9).’ Zoonotic diseases are not a novel concept. Some examples of zoonotic diseases include Covid-19, avian flu, monkeypox and Ebola. In recent years, with the Covid-19 pandemic and the rise in monkeypox, it was recently estimated that 75% of newly emerging infectious diseases are zoonotic(10). The increase in zoonotic diseases is caused by urbanisation, climate change, and intensive agriculture(11). Zoonotic diseases have had a devastating impact on humans causing serious illness and high mortality rates, not to mention the economic impacts that have been previously inflicted by Covid-19.
Moving Forward
COP15 (the United Nations Biodiversity Conference) was held in December 2022.In this summit an agreement was made to protect 30% of land and oceans by 2030 (30x30)(12). This will once again raise more awareness for biodiversity in the ESG agenda. The UK aims to help implement the goals of COP15 by bringing together foreign governments and business leaders(13). This should bring together the various parties needed to create positive change and achieve the 30x30 goal, however without any legally binding goal, we will have to wait and see.
At the start of the article, it is stated that the loss of biodiversity is one of the major crises today. Despite the negative effects of Covid-19, the pandemic resulted in short-term improvements in emissions and air quality, demonstrating that improvement is possible(14). With the increased focus on biodiversity, there is potential to greatly improve the environment whilst we still have the chance.
Citations
(1) Graham Lawton, ‘Rescue Plan for Nature: How to Fix the Biodiversity Crisis’ New Scientist (17 February 2021) <https://www.newscientist.com/article/mg24933223-300-rescue-plan-for-nature-how-to-fix-the-biodiversity-crisis/> accessed 22 October 2023.
(2) ‘Biodiversity Definition and Meaning | Collins English Dictionary’ (www.collinsdictionary.com) <https://www.collinsdictionary.com/dictionary/english/biodiversity> accessed 22 October 2023.
(3) European Commission, ‘Why Do We Need to Protect Biodiversity?’ (Europa.eu) <https://ec.europa.eu/environment/nature/biodiversity/intro/index_en.htm> accessed 22 October 2023.
(4) PricewaterhouseCoopers and Sarah Strang, ‘Financing Sustainable Growth: An Emerging Opportunity’ (PwC) <https://www.pwc.co.uk/services/business-restructuring/insights/financing-sustainable-growth-emerging-opportunity.html#:~:text=As%20corporates%20look%20to%20align> accessed 22 October 2023.
(5) Harriet Agnew, ‘Biodiversity Quickly Rises up the ESG Investing Agenda’ Financial Times (20 September 2022) <https://www.ft.com/content/abbcec95-0154-40cd-83b9-d988bd3271b9> accessed 22 October 2023.
(6) Harriet Agnew, ‘Biodiversity Quickly Rises up the ESG Investing Agenda’ Financial Times (20 September 2022) <https://www.ft.com/content/abbcec95-0154-40cd-83b9-d988bd3271b9> accessed 22 October 2023.
(7) Adrienne Klasa, ‘Scrutiny of ESG Claims for Private Investments Grows’ Financial Times (3 July 2022) <https://www.ft.com/content/43a802a0-0859-4146-b647-405d8756fb13> accessed 22 October 2023.
(8) David Ray and Lea Gamsjäger, ‘Biodiversity Reporting: What Is on the Horizon for 2022 and Beyond?’ (Nordea3 February 2022) <https://www.nordea.com/en/news/biodiversity-reporting-what-is-on-the-horizon-for-2022-and-beyond> accessed 22 October 2023.
(9) Stefan Ellerbeck, ‘What Are Zoonotic Diseases - and How Dangerous Are They?’ (World Economic Forum6 July 2022) <https://www.weforum.org/agenda/2022/07/zoonotic-disease-virus-covid/> accessed 22 October 2023.
(10) Stefan Ellerbeck, ‘What Are Zoonotic Diseases - and How Dangerous Are They?’ (World Economic Forum6 July 2022) <https://www.weforum.org/agenda/2022/07/zoonotic-disease-virus-covid/> accessed 22 October 2023.
(11) Stefan Ellerbeck, ‘What Are Zoonotic Diseases - and How Dangerous Are They?’ (World Economic Forum6 July 2022) <https://www.weforum.org/agenda/2022/07/zoonotic-disease-virus-covid/> accessed 22 October 2023.
(12) Patrick Greenfield and Phoebe Weston, ‘Cop15: Historic Deal Struck to Halt Biodiversity Loss by 2030’ The Guardian (19 December 2022) <https://www.theguardian.com/environment/2022/dec/19/cop15-historic-deal-signed-to-halt-biodiversity-loss-by-2030-aoe> accessed 22 October 2023.
(13) ‘Leaders Gather at London Event in Support of UN Nature COP15 Agreement’ (GOV.UK17 February 2023) <https://www.gov.uk/government/news/leaders-gather-at-london-event-in-support-of-un-nature-cop15-agreement> accessed 22 October 2023.
(14) ‘COVID-19 and Europe’s Environment: Impacts of a Global Pandemic — European Environment Agency’ (www.eea.europa.eu5 November 2020) <https://www.eea.europa.eu/publications/covid-19-and-europe-s#:~:text=These%20include%20temporary%20improvements%20in> accessed 22 October 2023.
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