Biodiversity refers to a wide variety of species within all natural ecosystems.
Biodiversity is vital for every living organism, including humans, as we all depend on interlinked natural systems called ecosystems to provide natural services including food, water, shelter and recreation.
The resilience of ecosystems is directly related to the breadth of biodiversity. When there is great diversity in biological species, healthy ecosystems fare better at resisting natural disasters such as extreme weather or floods.
With healthy biodiversity, the services that vital ecosystems provide to businesses and society are better safeguarded.
Businesses are both affected by, and rely upon, these ecosystem services and their underlying biodiversity, regardless of organization size, location and sector (see side box).
Whether they can capitalize on the associating opportunities and avoid risks would, in turn, help build or destroy their competitive advantage.
For business, a good track record on biodiversity and sustainability management is crucial.
Nearly all sectors & industries depend directly on the health of ecosystems for:
- Operating licenses for mining, construction and energy, in maintaining good relationships with stakeholders, including local communities and NGOs.
- Direct inputs in the manufacture of cosmetics and pharmaceuticals products which depend on biological material and genetic resources.
- For all sectors, including finance, avoiding exposure to financial risks caused by biodiversity loss & it’s mitigating effect on climate change related natural disasters.