Resource extraction, industrialization, agriculture, urbanization, and pollution have significantly altered three-quarters of Earth’s land and two-thirds of the marine environment, putting one million species on the edge of extinction, says Lauren Compere.

Half of the global GDP depends on nature at some level, leaving industries across all sectors at risk. Biodiversity is fundamental to critical natural systems, from recycling nutrients in the soil to pollination to absorbing enough atmospheric carbon to keep temperatures tolerable. Forests, wetlands, and oceans absorb 5.6 gigatons of carbon yearly, but as the health of these ecosystems deteriorates, nature’s ability to absorb greenhouse gases diminishes, and the potential consequences will be catastrophic.

While global responses and several efforts from businesses and governments are already in place, a 2023 report by the UN University’s Institute for the Environment and Human Security highlights six risks threatening Earth’s system essential for human life, and findings make clear that efforts to address these risks are insufficient.

“As engaged investors, we must also hold ourselves accountable for keeping business leaders informed and prepared for the considerable challenges and opportunities that lie ahead.”

With the outstanding resources that board of directors, companies, and investors have access to, there are many ways the investor community can hold companies and boards accountable for addressing their impacts on biodiversity. Lauren highlights key initiatives and ways companies can get started in her full piece linked below.

Published On: September 3, 2024