Display mode (Doesn't show in master page preview)

23 Dec 2022

Econ Digest

COP 15 conference: A mission to protect Biodiversity…driving business towards sustainability


        From December 7-19, 2022, representatives from 196 contracting countries participated in the 15th Conference of the Parties to the United Nations Convention on Biological Diversity (COP15) in Montreal, Canada. The convention emphasizes the importance of protecting natural resources and biodiversity, as scientists have found that more than 80% of the planet’s plant and animal species are at risk of extinction. Topics that COP15 focused on include1 : (1) Conservation of biodiversity, especially in ecologically fragile areas, interconnected and efficient ecosystem management, restoration of terrestrial, freshwater, and marine ecosystems, and reduction of pollutants’ damage to organisms; 2) Promote sustainable use of biodiversity and ecosystems, such as reducing the use of agricultural pesticides and deforestation, and promote environmentally friendly businesses; 3) Fair and equitable sharing of benefits arising from the use of genetic resources.
        The COP15 conference adopted the “Kunming-Montreal Global Biodiversity Framework,” which specified a target of protecting and restoring at least 30% of the Earth’s land, freshwater and marine ecosystems by 2030 (30 by 30 target)2 , and expanded the 20 Aichi Biodiversity Targets set in 2010 to 23. The conference also reached an agreement on allocating USD200 billion in annual aid funds from the government and the private sector to implement protection measures. For this purpose, the developed countries have promised to provide at least USD20 billion per year to developing countries by 2025 and USD30 billion by 2030. It also addresses subsidies harmful to biodiversity, with the commitment to reduce subsidies by at least USD500 billion per year by 2030. Business for Nature estimates that global subsidies to environmentally damaging industries have reached USD1.8 trillion, including fossil fuel production, agriculture, water management, forestry, construction, transportation and fisheries3.
        COP15 also recommended that governments should support the business sector to prepare and disclose reports and information on the impact of their operations on biodiversity. In the middle of last year, financial institutions, the private sector and governments in many countries joined forces to establish the Task force on Nature-related Financial Disclosures (TNFD)4  to promote the business sector management of natural resources and environmental risks, which had previously been limited to climate change risk management. The formation of the TNFD is similar to the Joint Taskforce on Climate-related Financial Disclosure (TCFD) formed in 2015. The preparation and disclosure of climate change information according to the TCFD standard has now become an international standard recognized all over the world and is widely used, especially in the financial sector.
        Environmentally conscious business operations are increasingly popular with investors. Morningstar’5 s research on the investment policies of global asset managers found that 13 out of 25 large fund managers have formulated policies on biodiversity, and set out policies in EU countries and the United States that focus on investing in promoting biodiversity and conservation of natural resources, with a combined value of USD1.6 billion, which is a tiny fraction of the more than USD350 billion invested in 1,140 funds related to climate change.
        It is certain that the increasingly stringent environmental protection regulations and investors’ investment behaviors that focus on environmental protection will have an increasing impact on business operations. Therefore, if businesses are well prepared to adapt their production processes to be more efficient and environmentally conscious, it will help to maintain a competitive and sustainable business.


Scan QR Code

QR Code


This research paper is published for general public. It is made up of various sources. Trustworthy, but the company can not authenticate. reliability The information may be changed at any time without prior notice. Data users need to be careful about the use of information. The Company will not be liable to any user or person for any damages arising from such use. The information in this report does not constitute an offer. Or advice on business decisions Anyhow.

Econ Digest