Seoul, April 21 - The UNEP has published a report called “Business and Biodiversity: making the case for a lasting solution” today at the Business for Environment Summit. It focuses on both the risks and benefits for businesses around issues of biodiversity worldwide.

Biodiversity is a measure of the variation of genes, species, and ecosystems in a given region. It provides the basic raw materials for many industries to fulfill human needs, and as a result, the basis for our entire economic system.

“Biodiversity is not just a monkey issue or a dolphin issue,” Mr. Arab Hoballah, Chief of the Sustainable Consumption and Production branch of the UNEP, says. “Biodiversity is essential if we want to fight against the effects of climate change. It is critical for the survival of humanity.”

Business and Biodiversity comes as a part of the UN “Year of Biodiversity,” a year when the trend of biodiversity destruction should have been reversed. The bad news is business has missed notably missed its commitments for this year.

Biodiversity is the big issue

According to Mr. Hoballah, “The trend [of biodiversity] destruction has kept moving on. When the discussions were had at the World Summit for Sustainable Development, we had hoped that we would have taken some actions by now and stopped the extinction of species,” he says. “We have not acted enough to make a change on the ground.”

In this critical year, there are numerous threats to Earth’s biodiversity and approximately one third of world species are facing extinction—an unprecedented amount in recent times. Of critical importance to understand is the implication of species and biodiversity loss for humans.

The Business and Biodiversity publication helps lay the groundwork for the business case for biodiversity conservation.

Industry involvement is critical

Why should businesses and governments be concerned? Biodiversity loss comes at an enormous economic cost— somewhere around $500bn annually by some estimates. The reality is we do not really fully recognise what we are losing as, from a big picture point of view, we do not fully comprehend what nature supplies through biodiversity.

“From a business perspective, there has been historic neglect on the issue,” Mr. Hoballah says.

While this is the general trend, it seems that awareness is evolving in several industries. The tourism industry has been somewhat proactive and increasingly come to understand that a trip means more than just sitting on the beach. The biodiversity is often the main attraction.

“People are there to see an intact natural environment,” Mr. Hoballah says. “If [a destination] wants to be on the market in 20-30 years, they need to look after their local biodiversity.”

He notes that the cosmetics and pharmaceutical industry has likewise started to be proactive in this area after understanding the inherent risks to their products.

The mining industry also faces risk from an image point of view. Mr. Hoballah highlights that unfortunately the communication often strays into green washing, or over-emphasising unsubstantiated claims around a “green-ness” of a particular company, often over taking concrete action.

Beyond the Business and Biodiversity publication, the UNEP’s Green Economy Initiative serves to make the economic case for biodiversity, from both the risks and benefits points of view. The UNEP is concerned with helping understand the effects and influence business decisions.

According to Mr. Hoballah, business often does have a working understanding of biodiversity issues behind the scenes. “The business community has a lot of experience as individual companies, but often don’t want to openly share it,” he says, and notes that long term effects often takes a back seat to a shorter term focus on business results.

Business holds the key to stopping biodiversity loss

Business has a very important role to play in halting the loss of biodiversity and help reversing the trend, perhaps even more than the government. As vital pieces of the puzzle, business can make a critical difference on the ground. “Companies are by far the most important actors in this equation. If you want to induce this change, we need them” Mr. Hoballah says.

He identifies that there are three main tools that can help make this happen, and stresses that an integrated approach must be used:

  • Sticks: rules and regulations
  • Carrots: market instruments and incentives
  • Tambourines: communications and awareness raising

When it comes to raising awareness, it is most successfully done by using good examples. “Showcasing international case studies of best practice is critical to get buy in,” Mr. Hoballah says. “A company alone cannot do it. The markets need to move, not just single businesses.” This larger mobilisation of entire industries and markets is a critical concept to understand.

And this mobilisation seems to be afoot, albeit slowly, in part through raised public exposure to the issues. Mr. Hoballah notes that while even though Copenhagen was a failure, the good thing coming out of COP 15 was awareness. “People are growing increasingly concerned with [biodiversity] issues like water supplies and forest issues alongside climate change,” he says.

He stresses that action should not hinge on first having a full evaluation and understanding of economic costs. “Incentivise business and inform consumers through increased product transparency. Bring the information there for them. The media is looking for good stories, and biodiversity is a good story. They’d be willing to put such critical articles on the front page,” he says. No company wants bad publicity.

Biodiversity: ignorance has cost

Especially in the consumer arena, communication around biodiversity involves moving away from promotion of the best product at the cheapest price; it involves also drawing attention to what the future is as a result of the product purchased.

“Biodiversity is everywhere and people tend to neglect the importance of it as a given fact. We only value it when we lose the species and break the larger chain,” Mr. Hoballah says. “If we break the chain, it will affect us in the end. Biodiversity is giving us all the elements we need to live on. We have substantial benefits to take up from biodiversity. If we neglect it, we will pay a price.”

Eco-Business.com’s coverage of the Business for Environment Summit in Seoul is thanks to the support of City Developments Limited (CDL).