by Pippa Greenwood | Jun 4, 2024 | Blog
Global wildlife populations have plunged by nearly 70% since 1970. More than 44,000 species are currently threatened with extinction, with 41% of amphibians and 37% of sharks and rays on the brink of collapse. Overdeveloped land and overfishing, exploitation of natural resources, climate change, pollution and the spread of invasive species are the five main drivers of this loss.
Biodiversity isn’t just necessary for healthy ecosystems; it’s essential for economic growth. Nature degradation could cause a 12% loss to UK GDP in coming years, according to the Green Finance Institute — a larger hit to UK GDP than the 2008 financial crisis or Covid-19. Companies are dependent on nature and the services it provides, from crop pollination and raw materials to flood protection and carbon sequestration. These services are crucial to an organisation’s productivity and resilience. Yet companies (and economies) still freeride on nature’s benefits and are failing to integrate nature’s value into our current economic system.
That is until recently. New regulations and frameworks are increasingly encouraging, if not requiring, companies to halt and reverse nature loss and restore biodiversity, supporting a nature positive future. The new EU Corporate Sustainability Reporting Directive will require disclosure of the impact of larger listed EU businesses on biodiversity and ecosystems from 2024. In the UK, the Biodiversity Net Gain Policy requires developers to deliver a 10% biodiversity net gain (creating or improving natural habitats) with all new developments. Voluntary frameworks are being developed to hold companies accountable for their use of natural assets. The Taskforce on Nature-related Financial Disclosures (TNFD), helps companies assess and account for their nature-based risks and opportunities such as soil erosion and flooding to buildings and restoring natural habitats. The Science Based Targets Network (SBTN), a group of 80+ NGOs and wider partners, has published the first voluntary science-based targets for nature. The SBTN guidance supports businesses to set targets on biodiversity and nature. Examples include targets on water consumption, pollution and deforestation.
Whilst some of the nature-based frameworks and legislation are still voluntary, as with GHG emission reporting and climate target setting, measuring and reporting impacts on nature will no doubt soon be required. So, what practical steps can companies take to restore nature and rebalance biodiversity?
We’ve provided 10 tips to support companies on their nature positive journey.
- Conduct a biodiversity materiality assessment. This helps companies assess the impacts of their operations and supply chains on nature and biodiversity. Once impacts are understood, organisations can take steps to mitigate them. The SBTN provides tools to conduct a materiality assessment and the TNFD has a framework to assess companies’ nature-based risks, opportunities and financial impacts.
- Set targets to restore and prevent biodiversity loss. Examples include water pollution prevention targets, goals to avoid conversion of natural ecosystems, and zero-deforestation commitments. Unilever has committed to achieving a deforestation and conversion-free supply chain, meaning its raw materials such as palm oil, paper, soy and cocoa should no longer be associated with deforested and converted land. The targets relevant to a company will depend on its material nature and biodiversity impacts. Targets must be measurable so progress can be tracked. The SBTN has provided initial guidance to set freshwater and land targets (including partial biodiversity coverage). Ocean targets will be available in 2025.
- Develop a holistic, integrated strategy. Taking a holistic approach to nature strategy embeds it into the wider sustainability strategy and business model. With climate and nature so intrinsically linked, action in one area can support and impact the other’s progress. By integrating nature into a net zero roadmap, organisations can reduce adverse impacts on nature and biodiversity while working towards their climate goals. The SBTN’s ‘Avoid, Reduce, Restore, Regenerate, Transform’ (ARRRT) Action Framework, provides companies with a hierarchical approach to effectively implement a nature strategy.
- Source responsibly. Companies depend on natural resources such as water, timber, copper, coffee, cocoa and energy. But many of these are limited and extracting and using them often carries negative environmental and social impacts. Some businesses are already working to source responsibly, and a biodiversity assessment could highlight other hotspots. Certifications and standards such as the Forest Stewardship Council (FSC) for timber and paper, and Fairtrade for foods, can help with assurance. In 2023, 98% of IKEA’s wood was either FSC-certified or recycled.
- Restore habitats. Once a company has reduced its impact on biodiversity, it should look to restore depleted habitats. Reforestation, wetland restoration, regenerative agriculture, marine ecosystems protection and restoration projects are all good examples of habitat restoration. Choosing restoration projects that align with the company’s nature-based risks helps reduce these risks and supports the business case for more projects like it.
- Integrate nature into infrastructure. Invest in green infrastructure, such as green roofs, permeable pavements, wildflower boxes, rooftop beehives and living walls to support biodiversity in urban landscapes. The new Google London headquarters will have a roof garden with a rainwater irrigation system — providing a habitat for protected local species of bats, birds and insects.
- Improve biodiversity data. Nature and biodiversity has approximately 3,000 metrics, unlike its counterpart climate, which has predominately one — tonnes of carbon dioxide equivalent (tCO2e). Collecting all these nature-based metrics can be challenging. Working with and incentivising suppliers to gather this data down to the farm level will support accurate monitoring of future biodiversity levels and impact measurement.
- Invest in technology that promotes biodiversity. Investing in technology can plug the biodiversity data gap that makes measuring progress against targets challenging. Technologies like agri-tech and nature-tech monitoring systems can help. Chirrup, a biodiversity monitoring solution, uses AI to listen and monitor birds to track and protect the levels of biodiversity in a specific area. Tesco has teamed up with start-up tech innovator AgriSound to monitor insects and bees on its apple orchards, as part of its plan to promote biodiversity in the supply chain.
- Stand up for biodiversity: Engage with stakeholders, including local communities, NGOs and governments, to ensure that biodiversity concerns are acted upon and local knowledge is incorporated into decision-making processes. Sainsbury’s, Nestlé and H&M Group are pushing for mandatory disclosures on nature impacts to be brought in by 2030.
- Give nature a seat at the table. Appoint a member of the board to be nature’s advocate to ensure nature’s voice is heard. Patagonia has gone a step further and made nature its sole shareholder. The founder and former owner, Yvon Chouinard, transferred 98% of the company’s shares to environmental organisation Holdfast Collective. Each year, Holdfast will receive all profits that Patagonia doesn’t need to reinvest — an expected $100 million annually — to protect nature and biodiversity and fight the environmental crisis.
Context supports efforts to develop and implement effective corporate nature positive strategies. If you would like to talk about your organisation’s needs, please get in touch via www.contextsustainability.com or pippa.greenwood@contexteurope.com.
by Pippa Greenwood | Apr 18, 2024 | Blog
Pensions, which are designed to secure our future, may be putting it at risk. These powerful funds — worth more than US$55.7 trillion in global assets and accounting for 69% of GDP across 22 major markets — are quietly funding the climate crisis through major investments into fossil fuels (as Oblivia Colemine chillingly informed us) and deforestation. Ironically, these investments are jeopardising the future we are saving for. But it doesn’t have to be this way.
Pensions fund fossil fuels. £3 trillion is currently invested into UK pension funds. More than £88 billion is invested in fossil fuel companies, the biggest contributor to climate change and accounting for more than 75% of global emissions. In 2021 and 2022, Local Government Pension Scheme (LGPS) funds had invested £16 billion in the fossil fuel industry, according to research by Platform and Friends of the Earth. This money not only funds existing oil and gas projects, but supports expansion. More than half of LGPS funds in the financial year 2021-2022 went into new oil and gas projects. Pension fund bond investments also drive the funding of fossil fuels. Bonds are fixed-term loans that investors provide to governments or companies that underpin the financing. 50% of fossil fuel financing comes from corporate bonds, and bonds account for the largest source of financing for coal in China and India, according to the Toxic Bonds Initiative.
Pensions may drive deforestation. In the UK, more than £300 billion of pension fund investments go into companies with a high risk of driving deforestation. These include companies involved in palm oil, soybeans, beef and timber. For every £10 put into a pension, £2 could be linked to companies causing deforestation. Deforestation poses a major threat to the natural world, contributes significantly to climate change and can be linked to serious human rights abuses. More than a quarter (27%) of deforestation results from agricultural products. These agricultural commodities are also exposed to physical climate risks such as extreme weather events, droughts and rising mean temperatures, potentially making them risky investments.
Pensions can be part of the solution. People eat less meat, switch energy providers and travel less to cut their carbon footprint, but they don’t typically think about their pensions. Instead of funding companies that are damaging the environment, pensions could be part of the solution. ‘Green pension funds’ aim to generate returns for people by investing in companies that have a positive impact on the environment. If UK consumers were to collectively participate only in green funds, up to 386 million tonnesof greenhouse gas emissions could be eliminated each year, according to the Scottish Widows 2023 Green Pensions report — the equivalent of 11 return flights from London to New York per person. Pensions represent a substantial investment pool for already available climate solutions, such as technology-based carbon removals and innovative renewable energy projects. These solutions are in desperate need of funding to scale up quickly. They have the power to significantly reduce and drawdown (when emissions stop rising and start to decline) global emissions. By moving their money, people and pension providers can play a pivotal role in addressing the causes of climate change whilst driving the transition to a low carbon economy. UK pensions alone have the potential to invest £1 trillion in climate solutions, like renewable energy, by 2035. Organisations like Make My Money Matter are on a mission to encourage people to ask pension providers to go green by moving investments away from companies funding fossil fuels and driving deforestation.
Some pension funds are already making a difference. Some funds are moving away from investing in fossil fuel and high emitting companies. Netherlands-based PFZW, one of the largest pension funds in Europe, announced that it has exited investments in over 300 fossil fuel companies, including Shell, BP and TotalEnergies, over a lack of convincing decarbonisation plans. The Church of England Pensions Board, which manages roughly £3.2 billion, said it will exit the oil and gas sector, along with some of the highest emitting industries such as airlines, utilities and steel companies.
Despite some changes, progress is slow. It will take a global effort from multiple parties to change the pension industry. Governments can tighten legislation on pension providers. Funds can be more transparent about their investments and diversify away from industries fuelling the climate crisis. People can speak to their pension provider (directly or via their employer) to find out where their money is going. Once they know the full story, they can decide whether their current pension plan matches their values and understand the other investment options available to them, along with any associated risks.
The purpose of a pension is to invest in our own future. But the pension itself could be damaging that future. The choices we make over where we put our money gives us more influence than we realise. We can use our savings to support a greener, cleaner and healthier future for all.
by Pippa Greenwood | Mar 6, 2024 | Blog
As the urgency to combat climate change continues to grow, so does the importance of having a robust and credible climate strategy and net zero roadmap. Getting this right is key to the success of your organisation’s wider corporate sustainability strategy. Here are my 10 top tips for developing, implementing and evolving your climate strategy and driving meaningful change within your business.
1. Make the business case
Before developing your climate strategy, make sure your key stakeholders understand the business case for it. Use stakeholder mapping and analysis to find your champions and hear from your challengers. Clarify the benefits for the planet, and also for your business — gain competitive advantage, improve reputation, meet customer and investor expectations and retain and attract employees.
2. It’s all about the data!
Your net zero roadmap is only as robust as your greenhouse gas (GHG) emissions inventory. And your GHG inventory is only as accurate and complete as the underlying data — such as energy consumption, travel, supply chain and waste data. Improving your source data gathering, verifying, and storing processes is essential to an accurate and reliable climate strategy.
3. Understand the science
A solid grasp of climate science is key when developing your net zero roadmap and overall climate strategy. Stay informed about the latest research, frameworks, trends, and projections to make informed decisions, align to reporting requirements and set science-based goals.
4. Set ambitious, but realistic goals
Establish clear and measurable targets aligned with the latest science-based criteria. Aim for ambitious GHG emissions reductions while ensuring feasibility within your organisation based on capabilities and resources.
5. Engage your stakeholders throughout the process
You can’t do this alone. Effective climate action requires collaboration with stakeholders across your full value chain. Engage leaders, employees, suppliers, customers and partners to gain and maintain buy-in, gather diverse perspectives, and combine collective expertise. Fostering cooperation and setting shared goals will support you to implement your plan and successfully manage change.
6. Start with quick wins
This may sound like an obvious one, but focusing on the quick wins should show return on investment and positive results early on. This will help with stakeholder buy-in and future requests for resourcing and investment as you scale up the programme and shift the focus to longer-term initiatives.
7. Prioritise renewable energy alongside energy efficiency
Transitioning to renewable energy sources is the foundation of any climate strategy. Explore opportunities to invest in and generate new solar, wind, hydro, or other renewable energy, alongside procuring renewable energy contracts. In parallel, implement measures to optimise energy efficiency. Upgrade equipment, improve insulation, and adopt smart technologies to reduce energy consumption and costs.
8. Embrace innovation
Encourage innovation and creativity to deliver solutions for your climate challenges and develop opportunities. Embrace emerging technologies, explore alternative materials, and think outside the box — for example, by partnering with disruptors and peers, and testing out new business models.
9. Manage your climate-related risks
Climate change brings risks and uncertainties — such as extreme weather events, resource scarcity and supply chain disruptions. Assess, monitor and mitigate your climate-related risks as part of your wider risk management procedures, resilience planning and adaptation measures.
10. Stay agile and adapt
Establish robust monitoring and reporting mechanisms to track your climate goal progress. This will help you evaluate performance and identify areas for improvement. Remember that your net zero roadmap is not a static plan until you achieve your net zero target. As legislation, frameworks and climate science evolve, so will your strategy. Keep agile and adapt your strategy as needed.
by Pippa Greenwood | Nov 29, 2023 | Blog
Healthy soil is vital to our planet. It’s key to supporting human health and food security, and to fighting poverty and climate change. In recent years, dirt — a once under-examined area — has risen on sustainability agendas. It’s been rebranded under the terms ‘regenerative agriculture’ and ‘natural carbon sink’. As we look towards the UN Climate Change Conference (COP28) this month and World Soil Day on 5th December, it’s worth reminding ourselves why soil matters and why it needs to play a central role in solutions to our interconnected global challenges.
Healthy soil…
…keeps people healthy.
95% of the food we eat comes from soil. Healthy, nutrient-rich soil produces nutritious food, free from pollution, while the reverse is true for unhealthy soil. Degraded soil (caused by deforestation, unsustainable agricultural practices, urbanisation and industrial pollution) is less effective at filtering harmful contaminants and keeping pollutants out of waterways, which can damage human health. Globally, it’s estimated that soil pollution contributes to more than 500,000 premature deaths.
…is vital to food security.
Nutrient-rich soil translates to higher crop yields and better quality produce. Sustainable soil management has the potential to produce up to 58% more food, which is vital given the world’s growing population. Maintaining and supporting soil health promotes biodiversity, helps to control plant disease and pests, recycles essential plant nutrients, and ultimately improves crop production. Soil degradation and erosion impacts the quantity, price and quality of food, which has a detrimental effect on global food security. Estimates suggest soil erosion can lead up to 50% loss in crop yields.
…alleviates poverty.
Currently, 33% of the earth’s soils are degraded and more than 90% could become degraded by 2050. Degraded soil impacts food production, potentially contributing both to malnutrition and to food-price volatility. If people can’t buy or grow food, they may be forced to leave their homes, accelerating migration and poverty levels. Five years ago, at the 21st World Congress on Soil Science (WCSS), Director-General of the Food and Agriculture Organization (FAO) – José Graziano da Silva said soil degradation was leading millions of people into poverty.
…fights climate change.
Soil is a natural carbon sink. Nutrient-rich and biodiverse soil enhances the earth’s capacity to capture and store carbon. Scientists estimate that healthy soils can sequester over a billion additional tonnes of carbon each year. Since 1970 the global average temperature has been rising at a rate of 1.7°C per century, compared to a long-term decline over the past 7,000 years. As the planet warms at a rapid rate, improving the health of our soil is vital to combatting climate change. In turn, climate change reduces soil moisture, which impacts food production, exacerbating effects on food security and poverty. The IPCC finds that all pathways that limit global warming to 1.5 degrees depend on some quantity of carbon removal via natural solutions, such as soil and trees, as well as technological solutions, such as direct air capture.
Those are just four reasons to love dirt. Not to mention the role healthy soil plays in sustaining our supply of natural materials for clothing and shelter, providing a home for vital insects and microorganisms, promoting biodiversity and much more. Whilst the world continues to tackle these interconnected global challenges, governments and businesses have a vital role to play in supporting and investing in nature to save our soil.
