Nature is in crisis and so are we. For centuries we have exploited it uncontrollably, resulting in demands that exceed its capacity to provide us with the goods and services essential for our survival. As a consequence, we currently need around 1.7 planets to meet our annual demand for natural resources.
However, despite the knowledge that we depend directly on nature to survive, for a long time in our history, the relationship between economy and nature was not a cause for great interest or concern. This is because it was not believed that there would be significant economic losses due to climate and environmental risks.
Security of the economy through nature
Those who still believe that this is not a relationship of interdependence are mistaken. The study The New Nature Economy Report revealed that more than half of the world's GDP is moderately or highly dependent on nature and its services? a total of US$ 44 trillion in economic value generation.
Once nature loses its ability to provide these services, a multitude of economic activities are at risk of being significantly disrupted. This scenario shows that, without quick and organized action, the emergence of biodiversity loss will create uncertainty for all market sectors and represents an urgent and non-linear threat to the security of our economy.
Furthermore, due to its economic importance, this subject has aroused the interest of several investors who, increasingly, see the business concern with biodiversity as fundamental in the selection of assets and in the management of the investment portfolio. This means that companies and financial institutions need to invest in in-depth knowledge of how they impact and depend on nature, as everything indicates that in the near future this information will be fundamental.
As the trend towards greater transparency and accountability becomes a differentiating factor, costs are likely to increase for businesses that have not yet begun to include nature at the heart of their organization's concerns. Those that, as soon as possible, incorporate nature into their strategies tend to develop competitive and financial advantages over their competitors.
How to put this into practice
Aligned with goal 15 of the COP 15 Global Biodiversity Framework, the Task Force on Nature-Related Financial Disclosures (TNFD) was created in response to this growing need to consider nature in financial and business decisions. Its ultimate goal is to support a shift in global financial flows, transitioning from negative to positive outcomes for biodiversity.
Sitawi is one of the pioneering organizations implementing a pilot study of TNFD in Brazil and, therefore, has experience in adapting the platform to the national context. We aim to participate and conduct assessments of risks and opportunities related to nature, if organizations are committed to moving forward in mobilizing resources to build territorial programs or financial solutions for conservation.
This is a fundamental step for all businesses that wish to not only contribute positively to the environment that guarantees our survival, but also their financial security.
Do you want to start implementing this strategy in your organization? Contact us!