Large companies call for mandatory biodiversity disclosures
“Business for Nature” and the “Make it mandatory” statement
Among the initiatives and coalitions that BNP Paribas has recently joined is Business for Nature, which issued a collective appeal to COP 15 negotiators: “Make it mandatory.” Business for Nature supports the dialogue and actions of major international companies to address the high risks from climate change and biodiversity loss. This organisation highlights that half of global GDP is highly or moderately dependent on nature, and In its most recent reports, Business for Nature also highlights that governments are currently unable to implement changes in favour of biodiversity. The main problem is a lack of disclosures. Better knowledge of the impacts from companies is necessary, especially in order to monitor their progress as they implement processes that are more respectful of nature.
On 26 October, more than 330 large companies, including BNP Paribas, officially called for the adoption of an obligation to assess and publish the impacts on biodiversity. Called “Make it Mandatory,” this statement reflects the desire of these economic actors, across 52 countries and with total revenues of around 1.5 trillion dollars, to have governments take action at the COP 15 and put in place standardized criteria and obligations to publish their own impacts in order to reduce the fundamental risks associated with the loss of natural capital.
Standardisation advances with the ‘Task Force on Nature related Financial Disclosures’
In addition to participating in coalitions to make the disclosure of information on companies' biodiversity impacts mandatory, BNP Paribas also plays an active role in advancing the work already underway to standardise reporting and the management of impacts, risks and opportunities related to nature through its participation in the Task Force on Nature related Financial Disclosures (TNFD). Since its launch in 2021, the TNFD has been working on a global reporting framework based on biodiversity related criteria, with regular ‘beta’ publications of their future official recommendations.
The third ‘beta’ version, released last November, explicitly integrates dependencies and impacts on nature alongside risks and opportunities for an organization, and proposes three new reporting recommendations:
- Supply chain traceability
- Quality of stakeholder engagement
- Alignment of climate and biodiversity objectives
The next ‘beta’ version is expected for March 2023. In parallel, two discussion papers were recently published, one on biodiversity related scenarios and the other on the impacts to society.
New data related to business and nature
With the support of BNP Paribas Asset Management, CDP recently conducted a major survey showing that the majority of companies having voluntarily responded are ready to disclose their biodiversity data and to integrate biodiversity into their strategies. Results that send a clear message as they arrive just a few days before the start of the COP 15 negotiations.
Read the press release on the BNP Paribas Asset Management website
Continuing our "Act4Nature" commitments to biodiversity
In addition, BNP Paribas continues to pursue its own actions to preserve biodiversity. In 2021, as part of the ‘Act4Nature’ coalition, the Group strengthened its commitments with clear objectives by 2025 to support biodiversity through its businesses with its clients, which include:
- Reaching a target of 3 billion euros in financing linked to biodiversity criteria and relating to the protection of terrestrial biodiversity (positive impact loans, green bonds, etc.);
- Evaluating all its major corporate customers on biodiversity related criteria by 2025;
- Engaging with active clients on commodities and within sensitive countries by asking them to demonstrate their commitment to fighting deforestation.
At the same time, the Group continues to deploy training programs on the protection of biodiversity for its employees and to support public awareness through research and actions of its Foundation related to nature and the environment.