Strategic Focus: Navigating Nature-Related Risks

Report

Climate Financial Data & Analytics

Alice Saunders

Ryan Skinner

12 May, 2023

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Executive Summary

Rapid biodiversity loss threatens business around the world. The World Economic Forum recently estimated that $44 trillion in economic value generation is at risk through the dependence of business on nature and related services. COP15 last year added momentum to the work of the Taskforce on Nature-related Financial Disclosures (TNFD), and firms, investors and customers are increasingly recognizing the importance of assessing biodiversity risks, impacts and opportunities. This report breaks down the ways in which different industries and businesses will be affected by biodiversity loss and damage to natural capital, and explains which areas firms will need to tackle to make TNFD-aligned disclosures and build a biodiversity game plan. Chief sustainability officers and global heads of net zero and climate risk can use this report to understand their exposure to biodiversity and nature-related risks, as well as their options for addressing these.

Table of contents

Firms Must Address Biodiversity Risks Or Face Supply Chain Chaos
TNFD-Aligned Disclosures Will Mirror The TCFD And Force Action
Reduce Biodiversity Risks In Line With Your Firm’s Exposure

Table of figures

Figure 1. Definitions Of Key Nature-Related Terms
Figure 2. Climate Change, Biodiversity Loss And Business Are Dynamically Interlinked
Figure 3. The TNFD Beta Framework Version 3 Has A Wider Scope Than The TCFD
Figure 4. The LEAP Approach Provides Guidance For Firms Who Don’t Know Where To Start
Figure 5. Biodiversity Impact Assessment Approaches And Example Solution Providers
Figure 6. Organizations Should Take Targeted Actions Depending On Their Exposure

Organisations mentioned

About the Authors

Alice Saunders

Industry Analyst

Alice is an Industry Analyst in the Verdantix Net Zero & Climate Risk practice. Her current research agenda focuses on climate risk solutions and biodiversity. Alice holds...

Ryan Skinner

Research Director

Ryan is a Research Director at Verdantix, where he leads a team of analysts delivering research, data and advisory services that help clients navigate the fast-evolving landsc...

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