Key takeaways for board directors

• Nature is a boardroom imperative, as nature resilience underpins business resilience. Future cash flows may depend on the sustained provision of ecosystem services.
• Nature dependencies and impacts are inherent in all business operations, and boards need to recognise these connections proactively. Simple questions like “how is our business dependent on nature?” can kickstart critical discussions.
• There is a growing shift from nature awareness to active implementation, covering both risk management and new opportunities. Board directors need to approach nature with the same strategic rigour applied to climate risks.
• “Nature-positive” commitments can align with shareholder duties and provide a competitive edge through enhanced reputation and social license.
• Unlike climate, nature metrics are more complex and less universal, often requiring creative, localised approaches.

COP16 highlights: why nature is central to corporate strategy

• Dubbed "The People's COP," COP16 emphasised inclusivity with significant civil society representation. While some progress on targets was achieved, notably Indigenous rights and digital sequence information (DSI) funding, many countries lagged on implementation deadlines.
• Businesses are increasingly integrating nature into strategies independent of intergovernmental processes, signalling a shift toward voluntary, corporate-led action.
• Many businesses are moving nature from CSR to their core financial and operational strategy, indicating nature’s rise as a resilience issue. Nature needs to be as embedded in risk management as other core risks, such as cybersecurity.

Practical guidance for NEDs to promote action on nature

• Boards should consider revisiting corporate purpose statements to integrate a commitment to nature alongside core business goals.
• Align nature-positive strategies with shareholder duties to enhance long-term viability and resilience. Viewing biodiversity protection and ecosystem resilience as strategic imperatives supports the social license to operate and strengthens the company’s reputation amid increasing societal demand for sustainability.
• Embed nature into governance and accountability structures. Assign nature oversight to sustainability committees and establish nature-related KPIs that link to executive compensation. Regularly updating board training on nature-related risks, opportunities, and evolving metrics will further support informed governance.
• As investor demand for nature-positive investments grows, boards can explore innovative financing options. The financial sector is increasingly critical in channelling funds toward sustainable environmental outcomes, presenting meaningful opportunities to drive impact through capital allocation.
• Quantifying nature impacts is complex but essential. Boards should advocate for the development of standardised KPIs and support regulatory alignment that encourages localised data gathering.
• Integrating nature into corporate strategy requires a dynamic approach. Board directors should view nature-focused initiatives as iterative.

Going forward: the nature agenda at COP29

• Private sector reporting improvements are crucial, particularly in aligning climate NDCs (Nationally Determined Contributions) with NBSAPs (National Biodiversity Strategies and Action Plans).
• New financial instruments are in development, promoting conservation, bioeconomy, and regeneration strategies, which could drive better integration of nature within global carbon markets.