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Nature & biodiversity

Preserving nature’s resources by integrating it into business strategy

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Guidelines for the Boards of Directors of Financial Institutions

Nature is a matter of strategic management that requires the oversight of the board of directors and impacts key management issues, such as future market prospects and the effect of legislation. The growing recognition of the dependence of businesses and finance on nature is leading to new developments in terms of regulation and legislation, fiduciary duties, financial risks, and social and customer expectations, increasing the urgency for Boards to understand and address nature-related issues.

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COP30 recorded progress in the protection of nature and biodiversity, with new financial instruments for tropical forests and the recognition of the role of local communities. However, the effectiveness of the commitments will depend on their management and monitoring, while the contribution of businesses will be crucial to integrating nature into corporate strategies.

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The TNFD (Taskforce on Nature-related Financial Disclosures) and the CSRD (Corporate Sustainability Reporting Directive) share many similarities, for example regarding the topics subject to disclosure and the stakeholders involved. Consequently, companies that already report under the CSRD can easily align with the requirements of the TNFD as well.

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Ecosystem services are more important than many realise: around 44 trillion dollars of economic value1 - over half of the world’s GDP - depend directly on nature. As a result, it is becoming increasingly vital for companies to evaluate the impact of the ecosystem services they rely on.

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1 Half of World’s GDP Moderately or Highly Dependent on Nature, Says New Report > Press releases | World Economic Forum