Transforming Tomorrow 16 Pentland Centre researchers’ interest in nature and biodiversity arises from two concerns: • Nature is being depleted and degraded to such an extent that it poses a systemic risk to the global economy. This concern arises from natural science insights but also from financial market regulators such as the Financial Stability Board and relates to how business impacts upon biodiversity. • Business depends on nature, and hence there are business continuity risks associated with loss of nature. The Centre’s Business and Biodiversity projects focus on these two dynamics. Key Concepts Nature and biodiversity are distinct concepts. Nature refers to the natural world, which includes biodiversity as well as the physical aspects of the Earth, such as oceans, mountains, and weather systems. Nature is broader than biodiversity, which focuses on the diversity and variability of life on the planet. Ecosystem services is a term used to describe the benefits that flow to society from nature. They are categorised into: (1) provisioning services (creating material such as food, water and resources like wood, fibre, medicines and genetic resources); (2) regulating services (processes such as climate and flood regulation, pollination and water purification); (3) cultural services (aesthetic, recreational and spiritual enrichment); and (4) supporting services (that ensure habitat functionality through photosynthesis, water and nutrient cycles). The Intergovernmental Panel on Biodiversity and Ecosystem Services characterises the drivers of biodiversity loss as arising from: changes in land and sea use; direct exploitation of organisms; climate change; pollution; and invasive species. The presence of climate change on this list is why there are benefits from tackling climate and biodiversity issues together within a ‘net-zero, nature-positive’ framework. Business activities are direct and indirect contributors to each driver. The Global Biodiversity Framework The Kunming-Montreal Global Biodiversity Framework was adopted by 200 countries on 19 December 2022. Much of the Framework focuses on country level actions, however Article 15 calls on governments to develop regulations to ensure large and transnational companies and financial institutions monitor, assess, and transparently disclose their risks, dependencies and impacts on biodiversity. We anticipate this will mean companies will be required to disclose their impacts on biodiversity and the natural world, and corporate governance will become more focused on biodiversity impacts. Activities being pursued by Centre members feed directly into the knowledge base needed to support this process. Business, Nature and Biodiversity https://pod.co/transforming-tomorrow/business- and-biodiversity Listen...
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