Three biodiversity-related initiatives most likely to impact corporates in 2022
In a recurring theme, the three potentially most influential initiatives aimed directly at corporates all had their roots in climate. CDP, Science Based Targets Network (SBTN) and Nature Action 100 all aim to leverage highly successful climate campaigns to incentivise improvement in biodiversity performance.
In its recently published five-year strategy, CDP announced that it would expand the scope of its work to cover the full range of planetary boundaries and outlined the “[restoration of] ecosystem health” as a priority. CDP will include six additional biodiversity-related questions in its 2022 climate change questionnaire. Covering subjects such as board-level oversight and value-chain impacts, we believe that approaching the new questions in earnest will be beneficial for ISSB and TNFD-aligned reporting in the future.
The SBTN, building on the momentum of the climate-focused SBTi, is developing a set of science-based targets for nature for companies (with additional work to develop targets for nature and climate for cities). Aimed at promoting robust target-setting rather than disclosure, this forward looking initiative focuses on assessment of potential pathways to reducing corporate impacts and dependencies on nature. Similarly to the TNFD, the initiative will take a whole value chain approach and aspires to eventually target “nature-positive” outcomes.
Finally, in an investor-led drive to incentivise companies to take action on biodiversity, the proposed Nature Action 100 initiative aims to emulate the successes of arguably one of the most successful collaborative engagement initiatives, Climate Action 100+. Although still in development, Nature Action 100 will likely take a similar approach, targeting high-impact companies and working alongside them to assess and address nature-related impacts. Further developments are expected throughout 2022, and we anticipate that corporate engagement will encourage participation in initiatives such as CDP disclosure and SBTN target-setting when possible.