[Book Sip] Biodiversity Management... "Reviving Nature is Essential for Businesses to Survive"

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As 'Environmental, Social, and Governance (ESG)' spreads as a core framework for corporate management, the issue of biodiversity loss is gaining attention following climate change. The reckless development, climate change, deforestation, and overfishing have caused nature to collapse, triggering a red alert for biodiversity. This has also raised risks for economies and companies that heavily depend on nature. The World Bank warns that if the ecosystem services provided by nature collapse, global GDP could decrease by $2.7 trillion annually by 2030. The author comprehensively addresses how and why nature is collapsing and its impact on corporate management. Furthermore, the book focuses on the international discussions for conserving and restoring nature, the adopted 'Global Biodiversity Framework (GBF),' and the currently developing nature disclosure framework, the 'Taskforce on Nature-related Financial Disclosures (TNFD).'

According to the most recent 'Living Planet Report 2022,' the average size of observed wildlife populations declined by 69% between 1970 and 2018. In this process, about one million species of plants and animals face extinction threats. Forests, which regulate the Earth's climate and store carbon, are disappearing at a rate of approximately 10 million hectares annually?equivalent to the area of Portugal. WWF warns that deforestation could jeopardize food security for billions and livelihoods for millions. Biodiversity is collapsing because humanity is using at least 75% more of the Earth's resources than the planet can sustainably provide. The OECD warns that the current extinction rate is 1,000 times faster than before human emergence, and if this pace continues, the Earth could face a sixth mass extinction. -〈Chapter 1: Nature at the Tipping Point〉

The reason for the biodiversity alarm is primarily reckless economic activities that disregard nature's resilience. Although we live on a single Earth, we have been using resources as if there were 1.75 Earths, so it is surprising that nature has not been crying out more. In fact, various corporate activities have been identified as causes of biodiversity loss. According to ASN Bank of the Netherlands, which created the world's first biodiversity impact fund, only 0.01% of all listed companies engage in activities that are not harmful to nature. -〈Chapter 1: Nature at the Tipping Point〉

An important fact is that social and economic activities fundamentally depend heavily on nature. According to research by the WEF, economic value creation exceeding $44 trillion?more than half of the global GDP?relies on nature and ecosystem services... Ecosystem services are provided by biodiversity, and the OECD estimates their annual value at $125 trillion to $140 trillion. Considering the global nominal GDP was $101.6 trillion in 2022, the value of ecosystem services is about 1.23 to 1.38 times the world GDP. Biodiversity loss, if left unchecked, is expected to cause significant economic shocks. The World Bank warns that if the ecological services provided by nature collapse, global GDP could decrease by $2.7 trillion annually by 2030. This means corporate risks will increase accordingly... The pharmaceutical industry heavily depends on biodiversity-rich tropical rainforests for new drug development. Twenty-five percent of medicines used in modern medicine come from tropical rainforests. However, these rainforests currently face threats from deforestation and fires. Consequently, the pharmaceutical industry is at risk of losing a vast repository of genetic materials that could bring next-generation medical innovations. It is estimated that an important drug development opportunity is lost every two years due to this. -〈Chapter 2: Companies, 'Nature Risk' Emergency〉

Biodiversity Management | Written by Choi Namsu | Saebit Publishing | 180 pages | 16,000 KRW

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