Author: Silvia Zanazzi, Chief Regeneration Scientist, Nativa
Attending a COP is both a frustrating and challenging experience. One directly experiences the enormous complexities of multilateral negotiations, which always run aground when it comes to mobilizing economic resources, but it is also an opportunity to engage with experts from all over the world, explore different visions and feel part of a global community facing common challenges. Back from COP16 on biodiversity in Cali, the importance of the role of business becomes even more apparent. In a context where governments still show uncertain leadership, it is indeed up to the private sector to drive change, accelerating nature-positive strategies to prevent the costs of inaction from becoming irreversible.
A recurring theme in the many corporate events held on the sidelines of COP16 was the need to activate pathways of collaboration among stakeholders. Coalitions such as Business for Nature, which presented an appeal signed by more than 230 companies, demonstrate the importance of joint action. The call to governments is clear: stronger policies and regulations are needed to incentivize the private sector to take concrete action, in line with the goals of the Global Biodiversity Framework, which aims to reverse nature loss by 2030.
At the same time, the number of companies developing innovative solutions, from advanced monitoring to ecosystem regeneration, is growing. This ferment shows that the business world is not just waiting for directives from above, but is trying to build tools for action.
The Kunming-Montreal agreement, specifically Target 15, calls for states to require companies to report on their biodiversity risks and impacts. In Europe, this regulatory push is already a reality with CSRD, leading to greater corporate focus on the issue. However, the moment is also characterized by great fragmentation, and the proliferation of standards, coalitions and methodologies risks generating bewilderment. According to a study shared by CDP (the Carbon Disclosure Project , which expanded the scope to include water and forest disclosures) at the COP, only 7 percent of companies and financial institutions have already begun to assess their dependencies on biodiversity. From another study also shared at the COP (Trellis, The State of Biodiversity and Business 2024) 33 percent of companies have undertaken a formal assessment of biodiversity risks, dependencies and impacts. Among the main barriers: lack of shared standards and specific expertise, reported by 47 percent and 56 percent of companies, respectively. Competition for internal resources, particularly with climate-related projects, is another barrier, indicated by 54 percent of respondents.
To overcome these challenges, companies must change their mindset. They can no longer view nature as an unlimited source of resources, but must recognize its fragility and intrinsic value. It is essential to develop strategies that integrate ecosystem regeneration with decarbonization, addressing climate and biodiversity challenges synergistically. Companies must act now, as tools and standards are refined, so that they are not unprepared for an environment that increasingly demands transparency and accountability. The cost of inaction would be very high, both in economic terms and in terms of existential risk to companies.
Despite their current complexities, emerging frameworks, such as TNFD and SBTN, may offer a benchmark. Adopted by 50 percent and 40 percent of companies, respectively, they are indeed seeking to create synergies to simplify the approach and encourage the adoption of nature-positive strategies, so it will be important for companies to monitor developments in this direction in the coming months.
Finally, it is important for companies to consider an important COP16 decision: the establishment of the Cali Fund, a global fund to share the commercial benefits from the use of digital genetic data (Digital Sequence Information). The agreement provides for contributions for companies above certain profit or revenue thresholds to offset the commercial benefits gained from the use of DSI in primarily pharmaceutical, cosmetic, and nutraceutical areas. The contribution remains on a voluntary basis for now, but it is nonetheless a signal that companies should begin to seriously consider.
COP16 leaves a clear message: biodiversity protection is not an option, but a necessity. Companies that can anticipate this transition will have a competitive advantage in shaping a sustainable future. It is time to invest in training, resources and innovation, and to put nature at the center of business strategies.
Photo credit: Convention on Biological Diversity