IPBES Reports from 2024: What Can Businesses Learn from Them?

The Intergovernmental Platform on Biodiversity and Ecosystem Services (IPBES), nicknamed the “IPCC of biodiversity,” recently published the summaries^[1] from two major studies:the Nexus Report and the report on transformative changes. Two years after the adoption of the Kunming-Montreal Global Biodiversity Framework, these reports stand out for their approachpractical and action-oriented. They explore the interconnections between transformations that affect five elements of a the same "nexus"^[2] - biodiversity, water, food security, health, climate change - and provide organizational, political, and economic factors to address related crises in a comprehensive and integrated manner^[3].

Some Key Figures :

• Ambitious short-term actions could lead to $10,000 billion in business opportunities and support the creation of 395 million jobs by 2030, on a global scale.
• The additional investments needed to preserve the biodiversity are 300 to 1,000 billion dollarsper year ;with regard to the other elements of the nexus,they amount to 4,000 billion dollars a year.
• The cost of measures to preserve biodiversitywill double if no action is taken within 10 years.

Beyond simply noting the chain reactions—both positive and negative—that affect the nexus, these two reports offer a framework and concrete solutions to help political and economic stakeholders incorporate planetary boundaries into their organizations while strengthening their resilience. The analysis presented below incorporates both of these complementary reports without distinction and focuses specifically on the lessons that companies can learn from them.

From Assessment to Action: Concrete Solutions for Businesses

Scientists have repeatedly mentioned the importance of a joint and integrated response to crises affecting nature, to maximize the benefits of the actions taken while minimizing the risk of causing negative externalities. Indeed, addressing these crises one by one, in isolation, and without taking their interactions into account, can prove ineffective or even counterproductive.

For example, while intensive agricultural practices increase production in the short term and ensure food security for populations, they exacerbate water crises in the longer term (80% of global freshwater withdrawals are used for food production^[4]), the climate (soil fertilization with nitrogen-based fertilizers accounts for 30% of emissions from the agricultural sector in France^[5]), biodiversity (35% of crops depend on pollination by bees, which are threatened by the excessive use of pesticides^[6]), while at the same time undermining supply chains.

Companies are therefore encouraged to collaborate with society as a whole – governments, citizens, NGOs, local communities, and indigenous peoples, the scientific community – to deploystrategies and actions specific, as detailed in the two reports^[7]. Here is a selection of suggested activities:

• On governance: transforming governing bodies to make them more effective and inclusive : The success of these initiatives depends on the ability to break down the silos in current governance systems in order to adopt a multidisciplinary and integrated approach, while involving more stakeholders.
• From an accounting and strategic perspective, integrate biodiversity and equity into strategic frameworks and decisions : in particular, by internalizing environmental costs through environmental measurement and accounting tools.
• In procurement, rethinking global supply chains: Current procurement practices often encourage overproduction and the unsustainable exploitation of natural resources. It is necessary to review economic objectives and indicators to incorporate social and environmental considerations into procurement decisions. Furthermore, diversifying supply sources is essential to limit pressure on resources and strengthen the resilience of value chains.
• Through training, reconnecting stakeholders with the living world : Educating employees, their management, and other corporate stakeholders (e.g., investors) about the interdependence between the economy and nature encourages the adoption of more sustainable behaviors.
• Regarding investments, redirect funding : redirecting private funding toward activities that benefit the nexus, through various innovative mechanisms such as biodiversity certificates, is a powerful tool for addressing crises and bridging the annual funding gap, estimated at between 598 and 824 billion dollars.
• Site-level actions to protect and restore ecosystems : Cooperation among various stakeholders located within the same watershed, with a view to conserving or restoring it, can promote sustainable management at the ecosystem level.

A mangrove restoration project carried out in Senegal in 2020^[8] , demonstrates the many benefits associated with nature conservation (carbon sequestration, reduced coastal erosion, improved water quality, food security, and the health of local populations).

Turning Risks into Opportunities

The Challenge of Aligning Corporate Strategies (particularly in sectors closely linked to biodiversity^[9]) Given the planetary boundaries, this is all the more essential because they are exposed to considerable risks. These risks stem from their impacts (reputational and regulatory risks, etc.) on the environment, but also on their dependencies (risks of supply disruptions, depletion of the resource, etc.). When we talk about risks, we’re also talking about opportunities : The shift toward more sustainable and equitable business models benefits both businesses and nature: greater resilience, new offerings and products...

Finally, these reports urge companies to address in an integrated manner, taking into account the interrelationships among environmental issues (e.g., prioritizing nature-based strategies that address environmental challenges in a systemic manner, rather than distinguishing between climate, biodiversity, and water strategies) and along with the company's social and economic aspects (e.g., more concrete integration of sustainability issues into the strategy corporate, the “One Health” approach, which offers a systemic and unified vision of public health, integrating human, environmental, and animal health).

At Carbone 4, we are increasingly seeking to incorporate this systemic perspective into our approaches. Issues related to nature and climate are intertwined. The data collected, risk analyses, and the development of resilient strategies will be all the more relevant and effective if they address these issues as a whole.