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Ian Bremmer: Biodiversity loss might break the system and businesses aren’t ready
When Ian Bremmer turned 50 in 2019, he was shocked to know there was less than half the biodiversity left on the planet than when he was born.
That's depressing, but hopefully it'll soon have a snapback effect on humans and the economy, Eurasia Group's president says during "Time for nature: Turning biodiversity risk into opportunity," a livestream conversation hosted by GZERO in partnership with Suntory.
Businesses, he adds, will suffer if biodiversity loss is not reversed: "Production costs are going to increase. Profitability is going to drop. Prices are going to have to go up for end consumers. Inflation is going to go up."
What's more, companies face three types of risks — physical, transition, and systemic — if there's a six mass extinction. The last is the most worrisome because the entire system might actually break down.
Learn more about this GZERO Media live discussion: https://www.gzeromedia.com/sustainability
Why investors need to support biodiversity
For years, investors have been largely absent from nature financing. But now you have opportunities across all asset classes.
"If we don't start mobilizing private capital, we're going to have an issue" with biodiversity, Ingrid Kukuljan, head of Impact & Sustainable Investing at Federated Hermes, says during "Time for nature: Turning biodiversity risk into opportunity," a livestream conversation hosted by GZERO in partnership with Suntory.
So, where are the opportunities?
First, Kukuljan explains, public markets, where "some of the biggest culprits to biodiversity loss are to be found." Second, engaging companies that don't normally take biodiversity into account for decision-making.
Practical climate solutions and big corporations
Retailers like Walmart derive the bulk of their sales from products that ultimately originate in nature. That means they have a stake in reversing the course of biodiversity loss.
"The business community has woken up and taken notice of this," Kathleen McLaughlin, Walmart's executive VP and chief sustainability officer, says "Time for nature: Turning biodiversity risk into opportunity," a livestream conversation hosted by GZERO in partnership with Suntory.
As a result, Walmart is doing its part by engaging with its suppliers on biodiversity protection. It's the only way, she adds, to "protect, restore, and better manage 50 million acres of land and a million square miles of ocean" where the company indirectly sources raw materials for its products.
McLaughlin says that Walmart is embracing nature-positive to support both the livelihoods of producers and still provide affordable products to consumers.
Learn more about this GZERO Media live discussion: https://www.gzeromedia.com/sustainability
How do financial disclosures help protect biodiversity?
The Taskforce on Nature-related Financial Disclosures doesn't have a sexy name. But it is instrumental in helping businesses know their impact on biodiversity so they can do better.
"What we are providing to help businesses and financial institutions is developing a risk management and disclosure framework for nature-related risks," TNFD technical director Emily McKenzie says during "Time for nature: Turning biodiversity risk into opportunity," a livestream conversation hosted by GZERO in partnership with Suntory.
McKenzie says that the impetus for TNFD is all coming from the market. Driven by risks, investors want to take action.
"We're moving rapidly."
Learn more about this GZERO Media live discussion: https://www.gzeromedia.com/sustainability
We can't fix climate change without protecting biodiversity, says UNFCCC official
Fighting climate change and protecting biodiversity may not be exactly the same thing, but they're definitely related.
"Biodiversity and climate are deeply intertwined. It will actually not be possible to solve one crisis without addressing the other," Ko Barrett, vice chair of the Intergovernmental Panel on Climate Change and senior adviser for climate at NOAA, says during the livestream discussion "Time for nature: Turning biodiversity risk into opportunity," hosted by GZERO in partnership with Suntory.
One the one hand, she explains, climate change is accelerating biodiversity loss by increasingly disturbing marine and land ecosystems. On the other, nature offers solutions to address climate while protecting biodiversity such as green roofs to cool buildings, preserving bee populations to improve crop yields, or mangroves to store carbon.
"Biodiversity and climate change should be tackled simultaneously," Barrett adds. "Failing to do so risks leading to unintended and negative consequences for one or the other."
Learn more about this GZERO Media live discussion: https://www.gzeromedia.com/events/past-events/the-global-water-crisis-and-the-path-to-a-sustainable-future
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COP15 sign outside the Palais de Congres in Montreal, Canada.
COP15 seals “30 by 30” deal on protecting biodiversity
The COP15 UN Biodiversity Conference in Montreal, Canada, wrapped up on Monday with a much-awaited agreement to protect 30% of land and water considered “important” for biodiversity by 2030.
Wait, didn't we just have COP27 in Egypt? Yes, but that was about climate change. While climate and biodiversity are not exactly the same thing, they are definitely related.
“Biodiversity and climate are deeply intertwined. It will actually not be possible to solve one crisis without addressing the other,” Ko Barrett, vice chair of the Intergovernmental Panel on Climate Change and senior adviser for climate at NOAA, said during a recent livestream on biodiversity hosted by GZERO in partnership with Suntory.
What’s in the COP15 deal? The 30% commitment — known in COP15 parlance as “30 by 30” — will almost double the current percentage of protected areas on the planet.
That’s nothing to sneeze at, considering we’re on the brink of a sixth mass extinction. The deal concluded a tense two-week negotiation that saw some developing countries walk out halfway through the talks in Montreal.
What's missing? As is often the case with big agreements at UN-sponsored global conferences, quantifiable targets for tracking progress over time — which might encourage some countries to be less ambitious.
Did businesses get what they wanted out of Montreal? Yes and no. (Watch this clip for some specific demands.)
Although the private sector had asked for universal mandatory disclosures on their impacts and dependencies on biodiversity, it’ll be up to individual countries to decide how far they want to go. “That said, disclosures will still ramp up quickly post-COP15,” says Eurasia Group analyst Franck Gbaguidi.
Some are upset that "nature-positive" didn't make it into the final text. We're referring to the movement that urges businesses to make money in a sustainable way that not only protects life on earth but actually reverses the course of its destruction.
On the one hand, its exclusion is "a bummer for those who expected it'd become the nature equivalent of 'net zero' carbon emissions," Gbaguidi explains. On the other, it's "good news for those who thought [nature-positive would be] used by companies to do some greenwashing activities due to the lack of a commonly agreed definition."
The upshot: Although COP15 was a mixed bag, biodiversity is set to become the second environmental priority for governments after climate change.
"Judging by the talks in Montreal, there will be a before and after COP15," says Gbaguidi. "This will materialize in the efforts of the international community to account for biodiversity risks, impacts, and dependencies from now on."
Reversing biodiversity loss by 2030: "We don't have a choice," says Magali Anderson
What does the world's No. 1 cement maker want from the COP15 biodiversity conference in Montreal, Canada?
First, a framework for companies. Second, a commitment to halt and reverse biodiversity loss by 2030, Magali Anderson, Holcim's chief sustainability and innovation officer, says during the livestream discussion "Time for nature: Turning biodiversity risk into opportunity," hosted by GZERO in partnership with Suntory.
"I think we just don't have a choice there. It's not even a question of a wishlist or whatever," she adds. "It's a question of do we want the planet to still be liveable for everything that's alive in 10 years or not. That's all it is about."
Don't miss Anderson's COP27 joke.
Learn more about this GZERO Media live discussion: https://www.gzeromedia.com/sustainability
Episode 7: Why biodiversity loss matters to governments and investors
Listen: Are global leaders finally taking needed action on environmental issues? Coming out of the COP26 meeting in Glasgow, we've seen governments agree to a certain set of policies to fight climate change. But that isn't the only urgent environmental issue we face. The twin problem of climate change AND biodiversity loss are a serious threat to not just governments, but also investors.
The latest episode of Living Beyond Borders, a special podcast series from GZERO brought to you by Citi Private Bank, looks at how important biodiversity is to the global economy, and what leaders need to do to prevent further loss. Moderated by Caitlin Dean, Head of the Geostrategy Practice at Eurasia Group, this episode features Anita McBain, Managing Director at Citi Research, heading EMEA ESG Research; Harlin Singh, Global Head of Sustainable Investing at Citi Global Wealth; and Mikaela McQuade, Director of Energy, Climate and Resources at Eurasia Group.
Anita McBain
Managing Director at Citi Research, heading EMEA ESG Research
Harlin Singh
Global Head of Sustainable Investing at Citi Global Wealth
Mikaela McQuade
Director of Energy, Climate and Resources at Eurasia Group
Caitlin Dean
Practice Head, Geostrategy, Eurasia Group