Is biodiversity a material risk for companies?
Earthwatch Institute (Europe) is pleased to present the new report ‘Is biodiversity a material risk for companies? An assessment of the exposure of FTSE sectors to biodiversity risk'. The report was written in partnership with ISIS Asset Management with support from the Department for International Development.
The report explains that ‘biodiversity' underpins the economic value to business of sustaining eco-systems. Examples would be soil erosion, access to clean water, sustaining forests and maintaining fish stocks where ecological damage imposes severe economic costs.
The report identifies nine "red-zone" business sectors that are particularly exposed to biodiversity risk. In particular seven key headline risks to companies are identified:
- Security of supply, e.g. water, fish stocks, forestry;
- Access to capital because of high environmental credit risk;
- The ability to access land because they have a poor track record for managing biodiversity;
- Regulatory risk through fines and permit delays;
- Financial liabilities from unforeseen events.
- The impact on their reputation and consumer confidence;
- The inability to access markets from substantial buyers such as government agencies;
Dave Hillyard, Director of Programme Development at Earthwatch says, ‘We hope that the report will provide a tool for companies and their investigators to identify and address their biodiversity risks, while setting clear standards for biodiversity management.'
For more information and interviews please contact:
Zoe Gamble, Press Officer, Earthwatch, on + 44 (0) 1865 318813 /
zgamble@earthwatch.org.uk