Just as we’re getting comfortable measuring and reporting on carbon and climate impacts, nature emerges as the next must-have consideration. Luckily, the last few years have equipped us with the skills and tools to effectively measure, mitigate and demonstrate an organisation's impact and dependence on nature, and how this translates to the risk register and balance sheet.
Shift from a climate crisis to a planetary crisis:
At Edge Impact, we’ve spent the last decade supporting clients develop detailed plans to mitigate their impact on and contribution to climate change. And while we continue to fully support and commend all organisations doing what they can to reduce their negative climate impact, it's becoming obvious that reducing emissions alone is not going to solve this crisis.
This has spurred a purposeful shift from the climate crisis to a planetary crisis recognising that we must do all that we can to support nature to perform its natural services. And, just as the global financial markets escalated awareness and action on climate and carbon through the Taskforce on Climate-related Financial Disclosures (TCFD) and setting of measurable carbon Science Based Targets (SBTi), the major investor frameworks are behind this movement, establishing the Taskforce on Nature-related Financial Disclosures (TNFD) and evolving the SBT framework to incorporate Nature Targets. While these two initiatives are directed at transnational reporting entities, just like in the case of carbon and climate disclosures, the flow on effects will trickle down the entire supply chain, requiring all participants to account for their nature interface.
So what do we need to do?
The call to action is the need to conserve, protect and restore terrestrial, freshwater, coastal and ocean ecosystems to reduce the vulnerability of biodiversity (and where necessary adaptation to unavoidable impacts). The protection of biodiversity is paramount to ensuring healthy ecosystem functioning, a core function being the sequestration and cycling of carbon, capable of accounting for a third of the necessary response to climate change.
This may sound daunting, but actually the approach to understanding our impact on Nature and our exposure to its transformation has broadly already been developed through the blueprint of climate risk reporting.