How to Embed Nature in Your Corporate Net Zero Plan

Companies have a near-term opportunity to mitigate risk from nature loss. A collapse in ecosystem services (e.g., pollination, soil fertility, flood and climate regulation) could decrease global GDP by $2.7 trillion by 2030. As a result, businesses could face water scarcity, higher insurance premiums, loss of productive land, local community distress, supply chain instability, and resource shortages. 

While it’s true that no single company can solve this problem alone, each company has a crucial role to play. By integrating nature-positive goals into net zero plans, companies can significantly contribute to advancing climate objectives. This is because nature action boosts climate mitigation. With critical deadlines approaching to protect nature, the Nature Positive Pathway is an essential resource for companies in net zero planning and risk mitigation.  

Global supply chains are currently facing increasing water shortages and stress threats, leading to significant disruptions. Human activities that drive deforestation and forest degradation risk the availability and long-term security of critical commodities and natural resources essential to many sectors. Land and soil degradation can decrease market value and increase credit risk for lenders. The decline in pollinators is impacting agricultural production, making the demand for pollination services harder to meet. Companies across various sectors have not effectively managed their nature-related impacts and face resource exploitation, local community distress, investor divestment, consumer boycotts, and employee attrition. The risks of inaction are real, and the consequences are severe. The time for action is now. 

In response to the pressing climate and nature crises, the Net Zero Action Accelerator has introduced a nature-positive pathway designed to help businesses develop an integrated nature-positive and net zero strategy.  

Join our webinar on November 5th for an in-depth discussion with Pure Strategies. Explore how nature-positive strategies can enhance your climate initiatives and discover practical steps to incorporate these principles into your Scope 3 management. 

A Developing Regulatory Landscape 

In December 2022, nearly 200 governments, including many of the largest economies in the world, like Australia, Brazil, China, the European Union, and the United States, committed to ambitious goals under the Kunming-Montreal Global Biodiversity Framework (GBF). This collective action aims to halt and reverse nature loss by 2030. The GBF framework calls for businesses to monitor, assess, and transparently disclose their risks, dependencies, and impacts on biodiversity. Additionally, governments provide substantial funding and incentives to mobilize private sector innovation and financial capital behind green transition plans and economic strategies. This global support and commitment should instill confidence in the direction and potential of an integrated net zero and nature-positive strategy. 

How Should Companies Prioritize Climate & Nature Action? 

There is no net zero without nature. Despite the growing risks associated with accelerating nature loss, many companies, investors, and lenders do not fully understand their dependencies and impacts on nature. They often insufficiently account for nature-related risks and opportunities in their strategies and capital allocation decisions. This represents a significant risk management blind spot and potential systemic risk to economies and finances. Nature stewardship with active engagement of Indigenous Peoples and local communities is now essential to good corporate governance, highlighting a move from a corporate social responsibility to a strategic risk management issue. 

What Can Companies Do Now to Address Nature Action? 

The nature-positive pathway is crucial for businesses at any stage in their journey toward climate and nature action. It outlines four critical steps for companies ready to accelerate their progress toward a more resilient and nature-positive net zero future: 

• Assess and Reduce Impact: Assess your organization’s data and measurement needs to monitor performance and track impacts and dependencies on nature. Consider leveraging the LEAP approach to pinpoint location-specific nature interfaces and prioritize risks and opportunities throughout your business’ value chain. 

• Set Science-Based Targets: Establish precise, time-bound, science-based targets to mitigate priority impacts on nature, aiming for net zero emissions by 2040 or sooner. 

• Take Action & Engage Stakeholders: Engage with stakeholders, including investors, customers, suppliers, and local communities, to understand their expectations and concerns about biodiversity and nature. This engagement should involve dialogue, consultation, and collaboration to develop shared solutions and approaches for accelerated action. 

• Report and Disclose: Report on the business’s climate, biodiversity and ecosystem performance, including its progress against its commitments, targets, and actions. This reporting should be transparent, credible, and comparable and adhere to the emerging regulatory and voluntary disclosure requirements and frameworks. 

The Nature Positive Pathway consolidates recommendations from emerging frameworks and targets, such as the Capital Coalition’s ACT-D Approach, Science-Based Targets Network (SBTN), and the Task Force on Nature-Related Financial Disclosures (TNFD). 

As regulations evolve, businesses must stay ahead by preparing for and meeting disclosure requirements. The nature-positive pathway helps prepare and highlight emerging opportunities in climate and natural ecosystems. 

Beyond better risk management lies a world of potential. Mobilizing business innovation and private sector finance can help halt and reverse nature loss by 2030, aligned with the goals of the Global Biodiversity Framework. New financing models, including nature-based solutions, present new commercial opportunities for business and finance, facilitating a transition to a resilient economic model in harmony with nature that should also aim to improve the livelihoods and well-being of nearby communities. 

Begin your integrated nature and climate action journey now and secure your place for our November 5th webinar. Gain valuable insights for any stage of this guidance and position your company as a leader in transitioning to a net zero and nature-positive future.