Biodiversity at risk: what the IPCC and IPBES report demands of companies

Although the IPCC is known for its climate reports, its work also highlights the intimate links between climate change and biodiversity. At the same time, the IPBES platform (the "IPCC of biodiversity") has published recent studies that warn about the accelerated loss of nature and its global impacts.

“”, says the Envolta Global team.

Main findings relevant to companies

  • Climate change is altering terrestrial and aquatic ecosystems: the structure, functioning and resilience of ecosystems are compromised. This affects ecosystem services that sustain economic activities (water, pollination, pest control, carbon sequestration).

  • In areas considered biodiversity hotspots , many species are already displacing or losing habitat due to global warming, with risks of local extinction.

  • IPBES reports estimate that immediate action on biodiversity could unlock up to $10 trillion in business opportunities and generate 395 million jobs by 2030.

  • Delaying measures could double the costs of restoring nature and climate adaptation in the future.

  • The joint IPCC-IPBES report underlines that climate change and biodiversity loss are intertwined crises: they cannot be addressed separately.

What this means for companies

  1. Physical and supply chain risks
    Soil degradation, droughts, loss of pollinators or deterioration of river basins can affect access to raw materials, agricultural productivity, water availability or the quality of inputs.
  2. Regulatory and market risks
    Emerging legislations will require nature protection, restoration or compensation requirements, and environmental due diligence standards. Stakeholder expectations are increasing towards respect for ecosystems.
  3. Strategic opportunities
    Products or services related to ecological restoration, natural finance, green infrastructure, ecotourism, soil restoration or carbon capture through nature-based solutions.
  4. Need to measure ecological impact
    As with carbon emissions, companies will have to quantify their impacts on biodiversity (e.g. fragility of habitats, loss of species, ecosystem services). Tools such as natural sciences, mapping and biodiversity metrics will become increasingly relevant.
  5. Integrating nature and climate into the ESG strategy
    Business policies cannot be limited to climate change: nature must be integrated as a strategic vector. For example, in reforestation projects, mangrove restoration, watershed recovery or regenerative agricultural models.

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