Why it is beneficial for companies to embrace ‘nature positive’ approaches?

15 / 09 / 2024

By Marwa Nassar - -

It is beneficial for companies to adopt ‘nature positive’ approaches, especially as sustainable practices often lead to cost savings and operational efficiencies, such as reduced resource consumption and waste. Implementing energy-efficient technologies, optimizing resource use and minimizing waste generation can significantly reduce costs.

Moreover, positive initiatives’ proactive nature helps companies stay ahead of compliance requirements and avoid potential fines and penalties. By aligning with emerging regulations, companies can confidently navigate evolving policy landscapes, according to the World Economic Forum.

In addition, preserving and enhancing natural ecosystems ensures the long-term availability of critical resources and the stability of supply chains. Healthy ecosystems provide essential services, such as clean water, fertile soil, and climate regulation, vital for business continuity and resilience.

Companies committed to nature positive practices build stronger reputations and brand loyalty, appealing to environmentally conscious consumers and investors.
Demonstrating leadership in sustainability can differentiate companies in competitive markets and attract like-minded stakeholders.

Efforts have been made globally to place obligations on corporations to prioritize nature positive strategies, such as the European Union (EU) Biodiversity Strategy for 2030 under which companies must disclose their impact on biodiversity and adopt measures to restore degraded ecosystems.

Large companies in the EU are required to report on sustainability matters, including biodiversity and ecosystem impacts.

Another example in this regard is the UK Environment Act 2021 which Set out legally binding targets for biodiversity and requires companies to report on their environmental impacts while introducing measures for nature conservation and restoration.

The UN Convention on Biological Diversity has established international biodiversity targets for the next decade. Target 15 specifically urges companies to incorporate biodiversity into their corporate strategies, policies, and reporting. This aims to ensure businesses contribute to biodiversity conservation and sustainable use.

Recent court rulings have established that corporate directors may be held liable for failing to manage nature-related risks. This expansion of fiduciary duties aligns with global trends emphasizing the importance of environmental stewardship.

Directors must increasingly incorporate Environmental, social, and governance (ESG) into their decision-making processes. This includes assessing and mitigating the company’s impact on biodiversity and ecosystems.

These legal precedents ensure companies are compliant with emerging regulations and that directors are positioned as leaders in sustainable business practices.

Additionally, the Taskforce on Nature-related Financial Disclosures provides guidance for companies to report and manage their impacts and dependencies on nature, enhancing accountability and encouraging nature-positive investment.

As stewards of their organizations, corporate directors have a unique opportunity to lead the transition towards a nature positive future. By integrating biodiversity and ecosystem resilience into corporate governance, they can drive significant economic, social and environmental benefits.

Recognizing the crucial role that corporate directors play and adhering to emerging legislative mandates, businesses can turn environmental challenges into opportunities for growth and resilience, ensuring a thriving future for nature and industry.

Embracing nature positive strategies is not just an ethical imperative; it is a strategic advantage that will shape the future of sustainable business.