Be Part of the Plan: Understanding Biodiversity Hotspots and the Importance of Biodiversity Risk Management
Article written by Tendai Nhachi
Today, as we celebrate World Biodiversity Day, it's crucial to recognise the immense value of biodiversity hotspots and the pressing threats they face. The theme for this year's International Day for Biodiversity is "Be part of the Plan," emphasising the need for collective action in preserving our planet's rich biological diversity.
The Significance of Biodiversity Hotspots
Biodiversity hotspots are regions teeming with plant and animal species found nowhere else on Earth. These areas are vital for maintaining ecological balance, supporting livelihoods, and fostering resilience against climate change. Biodiversity underpins all life on Earth. Without diverse species, we would lack essential services such as air to breathe, food to eat, and water to drink. Human society itself hinges on these ecosystems.
Despite covering only 2.5% of the Earth's land surface, the world's 36 biodiversity hotspots contribute to 35% of the ecosystem services that vulnerable human populations depend on. These regions, rich in endemic species, are high conservation priorities due to the threats they face from urbanisation, deforestation, introduction of invasive species, pollution, climate change and other resource misuse pressures some even occurring outside the hotspot ecosystem.
Map of Global Bidoversity Hotspots
Source: European Commission & CEPF
The Risks of Biodiversity Loss
The loss of biodiversity is not merely an environmental issue—it poses profound risks to our economies, health, and well-being. The World Economic Forum’s Global Risk Report identifies biodiversity loss as one of the top three global risks, alongside climate change. This highlights the urgent need for comprehensive biodiversity risk management within Environmental, Social, and Governance (ESG) frameworks.
Why Incorporate Biodiversity into Your ESG Strategy?
Incorporating biodiversity considerations into ESG strategies is essential for several reasons:
Sustainability: Healthy ecosystems provide crucial services, including clean air, water, and fertile soil.
Resilience: Biodiverse systems are more resilient to shocks and stresses, such as climate change and natural disasters.
Economic Value: Biodiversity supports economies through sectors like agriculture, forestry, fisheries, and tourism.
Actions Organisations Can Take
Organisations play a pivotal role in halting biodiversity loss. By integrating biodiversity considerations into their environmental plans, businesses can contribute to sustainable development and ensure long-term viability. Here are some actionable steps:
1. Assess Impact: Evaluate the impact of your operations on local ecosystems and species.
2. Set Targets: Establish clear, measurable targets for biodiversity conservation.
3. Engage Stakeholders: Collaborate with local communities, governments, and NGOs to support biodiversity initiatives.
4. Report Progress: Transparently report on biodiversity-related goals and achievements within your ESG disclosures.
The Importance of Biodiversity Risk Management
In the context of ESG considerations, biodiversity loss has emerged as a top concern. The financial risks stemming from biodiversity loss are urgent and systemic, comparable to those posed by climate change. The degradation of natural capital and ecosystem services threatens global food security, public health, and the resilience of natural life.
Double Materiality: Biodiversity loss affects both "inside-out" (the impact of a firm's activities on biodiversity) and "outside-in" (the financial risks biodiversity loss poses to the firm).
Interconnectedness: Climate change, biodiversity, and natural capital are deeply intertwined. Addressing these issues jointly can amplify positive outcomes.
Risk Management: Effective risk identification, measurement, monitoring, management, and reporting of biodiversity and natural capital-related risks require innovative approaches. These approaches must be adopted by regulators, financial institutions, risk professionals, and scientific communities alike.
Call to Action – BE PART OF THE PLAN!
As we acknowledge World Biodiversity Day, it Is imperative for organisations to integrate biodiversity considerations into their environmental strategies. By doing so, we not only protect our natural world but also enhance the resilience and sustainability of our economies and societies. Let’s place environmental risks into context and act now to safeguard our planet’s biodiversity. Together, we can make a significant impact.