Global biodiversity is deteriorating faster than at any time in human history, largely due to human activity. Such massive biodiversity loss poses serious economic and financial risk as more than half the world’s economy is moderately or highly dependent on nature. To reverse this trend, companies must start by meaningfully assessing, disclosing, and addressing their nature-related impacts, dependencies, risks, and opportunities.

Green Century has long worked to advance protections for nature through our work to preserve natural forests, reduce the use of harmful chemicals, and put companies on a path to net zero emissions. In the fall of 2023, we filed our first proposals that specifically address biodiversity, asking companies including PepsiCo and Kellanova to complete material biodiversity dependency and impact assessments. This year, we refiled our resolution at PepsiCo and co-filed, along with Proxy Impact, a biodiversity and nature disclosure resolution at Home Depot, led by Domini Impact Investments. These resolutions call on companies to face and address the challenges to nature that threaten the products they sell and the markets in which they operate.

We also filed a biodiversity resolution at Chemours, a chemical company that mines titanium to create products that whiten our paint, toothpaste, and sunscreen. While titanium is a plentiful mineral, Chemours conducts some of its mining operations in ecologically sensitive areas. Our proposal asks Chemours to adopt a policy to assess any reasonably likely irreversible impacts on biodiversity prior to commencing mining operations in ecologically sensitive areas, as well as any related financial, reputational, and operational implications for the company should those impacts occur. Bottom line, it probably doesn’t make financial sense to mine ecologically sensitive areas for a natural resource you can easily find elsewhere – and it’s at least worth assessing those risks and impacts first.

Global institutions have begun to recognize the need for action on nature. In 2022, 196 countries ratified the Global Biodiversity Framework, setting out ambitious goals to protect and restore nature. The Taskforce for Nature-Related Financial Disclosures (TNFD) was launched in September 2023. As of this writing, 546 organizations worldwide have committed to assessing and disclosing under TNFD, including 346 corporations and 139 financial institutions. The Global Reporting Initiative, CDP, and Science Based Targets Network are developing support for biodiversity and nature disclosure and target setting. Biodiversity disclosure is also included in the EU’s Corporate Social Responsibility Directive. Industry groups, including the Finance for Biodiversity Foundation and Business for Nature, provide additional support for companies seeking to transition to nature-positive practices.

We can no longer take nature for granted. Companies must find nature-positive approaches to all aspects of their business, from supply chains to manufacturing to distribution, to avoid near- and long-term risks associated with the degradation of the natural world. Investors have a crucial role to play by insisting that companies take concrete steps to address the systemic risk of global biodiversity loss.