Guest interview: Emma Howard Boyd CBE, Chair of the London Climate Resilience Review In January, the London Climate Resilience Review, an independent review commissioned by the Mayor of London, published an interim report. Emma Howard Boyd CBE, the chair of the Review and Race to resilience Global Ambassador shared her insights on the urgent need […]
Resilience First: We need to incentivise businesses to find ways of creating value from restoring natureRace to Resilience partner, Resilience First, the world’s largest business network focused on business and organisational resilience, explains why a successful outcome at COP15 is critical for the acceleration of a safer, healthier world.
Human actions, and in particular economic activity, is changing the world’s climate with devastating impacts to both natural and human systems everywhere. As the latest report from the IPCC demonstrates, even with immediate drastic CO2 emission reduction, certain levels of impact — particularly contributing to eco-system disruption and severe weather — are locked into the system and will only be exacerbated by additions to the planet’s cumulative CO2.
According to the World Economic Forum’s Global Risks Report (2020), more than half the world’s GDP ($44tn) is at risk of disruption due to nature loss. All sectors, from fishing and agriculture to construction and pharmaceuticals, have a significant interest in protecting nature due to the huge value that they derive from natural capital. Nature-positive business models on the other hand, have the potential to generate $10 trillion in annual business opportunities and create 395 million jobs by 2030.
Furthermore, businesses do not exist in isolation from the communities within which they operate, all of which depend on a healthy ecosystem for their survival and wellbeing. The cost of ignoring these impacts is simply too high, whichever way businesses look at it. There is therefore an increasing demand, from customers, investors and regulators alike for business leaders to play a critical role in the global efforts to protect and restore nature. Businesses can put nature at the heart of their decision making through:
- Understanding the risks of, effectively disclosing and positively adapting to the impacts of climate change to ensure business continuity and the uninterrupted flow of goods and services
- Effectively manage transition risks by incorporating nature-based solutions in their adaptation planning
Recognising and acting upon business’ responsibility to minimise biodiversity loss and positively contribute to conservation efforts, to harness the opportunities presented by a thriving and healthy ecosystem
Businesses that recognise the opportunities in early adoption of nature and climate positive strategies, can increase stakeholder confidence by reducing transition risks and delivering innovation that enhances not only their individual resilience, but works in harmony to positively impact the system as a whole.
Nature is vital for building resilient communities
Nature is essential to human life, and its maintenance and protection is vital for building resilient communities. Amplifying the messages around a whole systems approach to adaptation and resilience building will be a key role for the Climate Champions during COP15 and beyond. One way to do this is by setting up a nature specific ‘Race’, to sit alongside the ‘Race to Zero’ and ‘Race to Resilience’ campaigns and bring the biodiversity agenda into sharper focus.
Climate champions are uniquely positioned as stewards at the intersection of state and non-State actors in this space and can and should be instrumental in driving a fundamental shift in economic thought through their influence on policy and decision-making.
Embedding nature restoration
Nature-based solutions (NbS) weave natural features or processes into the built environment to promote resilience and climate adaptation. They have been proven to offer significant financial and non-quantifiable advantages, often at a lower cost than traditional infrastructure. These practices are increasingly popular in the design of new infrastructure projects. For example, developers in England are required to quantify and mitigate the biodiversity impact of new projects, and Nature England created a toolkit to help them navigate this regulatory requirement (more here).
In another example, Freetown, Sierra Leone used a combination of a nature-base landslide and flood risk management approach to recover from a catastrophic landslide that took over 1,000 lives and mitigate future landslide risks (more here). Within Resilience First, a number of our members and associates, including, amongst others, those from the Engineering Sector such as Wood, Arup, Mott MacDonald, WSP, and The Resilience Shift, have been pioneering the application of Nature-based solutions globally.
Creating nature-positive regulation
An effective natural climate solution is one that manages risks and enhances the resilience of the whole system. It should have a positive impact on business operations, facilitate the smooth, uninterrupted functioning of society, and contribute to biodiversity conservation.
For Nature-based Solutions to become truly mainstream, innovation from industries will need to be accelerated by effective, nature-positive regulation that incentivises investment in regenerative products and services.
Underestimating the true value of natural capital
The failure to effectively communicate the systemic and interconnected series of risks posed by a rapidly declining ecosystem has resulted in what can only be described as a market failure that does not accurately capture the true value of natural capital and of investing in nature-first resilience building.
Until very recently, the truly finite nature of natural resources and the rate at which these were being depleted was not properly understood. Simultaneously, the incredible value generated by and from natural capital was difficult to measure in monetary terms resulting in little incentive for businesses to take a genuinely climate positive and nature-first approach in their planning and operations.
Frameworks such as the Taskforce on Nature-related Financial Disclosures and Science Based Targets Network provide important guidance for companies to assess impacts and dependencies and are a significant step forward. Further positive changes in policies, regulation and market expectations, accompanied by impactful communication around this topic will be critical to accelerating progress.
A holistic, long-term approach
Managing the climate crisis requires a holistic, long-term approach. No single country, sector, organization or individual can do it alone. We need to bring together all stakeholders, that is, public, private and not-for-profit, and we need a long-term plan starting today.
They key is to secure the kind and level of political support needed for the magnitude of the shift that is required to address the climate crisis. For example, following a series of devastating wildfires and weather-related disasters, Greece established the Ministry for Climate Crisis and Civil Protection to integrate climate resilience in disaster risk management.
Urgent, systems-wide transformations
While the 2015 Paris Agreement was a landmark moment and has accelerated our collective action to slow down and manage the impacts of climate change, the role of biodiversity in the mitigation of and adapting to climate change does not appear to have been given its due consideration in public debate.
Nature is still largely seen as a ‘carbon sink’. With more than half the world’s GDP at risk as a result of biodiversity loss, a Nature focused conference like COP15 allows this issue to take centre stage and bring to the table the kind of ambitious agreement (such as the post-2020 Global Biodiversity Framework) that is necessary to bring about the urgent, systems-wide transformations needed to mitigate and manage the compounded impacts of climate change and bio-diversity loss.
Creating value from restoring nature
An ambitious international agreement on the protection of nature will be welcomed by our members who are committed to Resilience First’s vision of a safer, healthier world where businesses, communities and the planet can thrive in harmony.
An agreement such as the Global Biodiversity Framework has the potential to accelerate a systemic shift in policy, regulation, stakeholder demands and market behaviours. By providing greater clarity on the value and impact of nature on production and supply chains, an effective agreement can provide not just a regulatory, but also a clear monetary, incentive for businesses to find ways of creating value from restoring nature.
Putting a price on nature will help organisations realise the real costs of doing business on this planet, and incentivise the development of new products and services that meaningfully advance their own contribution to this urgent and imperative agenda.
With over 600 members and associates within its network, Resilience First is part of Resilience Rising, a cutting-edge global consortium working together to accelerate a safe, resilient, and sustainable future for all. Learn more here.
Putting the support and empowerment of women, civil society, youth, Indigenous peoples, people with disabilities, and the most vulnerable and marginalized communities at the heart of the Race to Resilience is critical to ensuring a just and effective global climate action, says Hajrah Waqas, Climate Champions’ Resilience Youth Fellow.
Race to Resilience second progress report: Action underway boosting the resilience of 1.87 billion people
As a testament to the world’s collective effort to address the stark reality of climate change, the second progress report of the Race to Resilience campaign was launched today at COP28.
Race to Resilience in action: 10 initiatives helping people and nature thrive in a world of increasing climate pressures
10 solution stories, highlighted in the Race to Resilience’s Second Progress Report, launched today at COP28, showcasing diverse approaches and collaborative efforts aimed at creating a more resilient and regenerative world.