Biodiversity has been ignored for too long

Governments, companies, and investors increasingly appreciate the link between the economy and the environment. This interdependence is most obvious in sectors where production is directly linked to natural resources, such as agriculture, where between USD 235–577bn of global crop output is directly attributable to animal pollination.

In 2022, the world agreed a “Paris Agreement for nature” – the Global Biodiversity Framework – with the goal of reversing biodiversity loss by 2030. However, the world still lacks the measurement infrastructure to globally track ecosystem conditions. Fortunately, many of the necessary technologies already exist. The focus needs to be on rapidly deploying existing solutions at scale.

Aligning technology and finance to address biodiversity challenges

Measurement success depends on our ability to apply existing technologies in novel ways to track global biodiversity and synthesize vast quantities of data. The Institute’s report, Bloom or bust, highlights promising examples of new technologies, including remote and on-the-ground sensing to gather data and make sense of global trends.

Deploying these technologies – particularly at the speed and scale demanded by the Global Biodiversity Framework – requires significant finance. But nature’s investibility challenges mean it cannot do so alone. It requires a combination of new financing approaches, governmental resolve, and partnerships.

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Reports:

Natural allies

Natural Climate Solutions can reduce emissions while capturing carbon. Their deployment is hindered by insufficient policies and lagging investment. Governments, corporates, and financial institutions can overcome these barriers through synergistic collaboration.

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Grow, move, eat, repeat

Agri-food faces a tricky road ahead, as it is structurally unprepared to deliver on sustainability goals. A plausible path forward is to deploy mature and investable solutions today, while experimenting with nascent ones over the longer term.

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Taking root

The UN’s goal to halt and reverse biodiversity loss by 2030 is an ambitious target that looks increasingly unrealistic as the deadline approaches. Mainstreaming natural capital accounting could be one way to meet global biodiversity goals.

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Articles:

Nature positive starts with agriculture

Meeting nature goals is only possible with farmers in the room. Addressing the lack of incentives for farmers to transition to regenerative farming is crucial to ensure the sector supports sustainability goals. Read the article

Biodiversity loss entails business risks

Our economic model overlooks the value of nature’s goods and services, and this is perpetuated through modern trade and business. Export taxes and corporate disclosure offers potential remedies. Read the article

Is circularity always good business?

Going circular can involve high near-term investment but also long-term value creation. The business case is often positive. Read the article

Interview:

David Craig: Nature presents a risk and a missed opportunity

The TNFD-co-chair explains how the framework should help companies and investors assess their impact on the planet’s ecosystem, as well as more accurately identify nature-related risks and respond to them. Read the interview

Numbers that matter

• UBS analysis shows that almost two thirds of economic activity is at least moderately dependent on ecosystem services, from clean water supplies to pollination
• All economic activity depends on nature to some extent. However, sectors such as forestry have a higher dependence, based on their direct exposure to natural processes
• Financial institutions increasingly take note of these exposures, such as through the Taskforce on Nature-related Financial Disclosures, in which UBS is an early adopter and led the financial sector working group.

Articles:

Sustainability, fast and slow – Earth Day is an opportunity to raise awareness about how individuals can improve planetary and human health.

Reframing the transition – The transition to a low-carbon economy is at risk of being slowed as objections mount. There are no easy answers, but reframing the transition to focus on fairness, the science, and the benefits is likely part of the solution.

Report:

Green hockey sticks – Decarbonization is underway. In power and transport, “better” climate technologies already outcompete carbon-intensive incumbents. This report analyzed key climate techs, identifying decadal goals, progress to date, and economic tipping points that could unleash the necessary hockey stick-shaped growth to meet climate goals.

Podcast:

The Bulletin with UBS on “Bloom or bust” – a discussion on why it is time to focus on biodiversity, what challenges and potential solutions are and why we need partnerships to move forward.

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