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Biodiversity as a material financial risk: What board directors need to know

In the context of recent global developments, boards need to understand all of the indirect, but very real, implications of biodiversity loss for their business. 

This update draws out key points of the Commonwealth Climate and Law Initiative (CCLI) report: Biodiversity Risk: Legal Implications for Companies and their Directors to outline why biodiversity loss should concern directors. It covers the relationship between biodiversity, ecosystem services and companies, the indirect nature of some companies’ interface with biodiversity through value chains, recent changes to relevant disclosure standards and the market, regulatory and legal context that influences biodiversity risk and opportunity assessment.

It provides examples of how directors might breach their duties by failing to consider biodiversity appropriately, the emergence of biodiversity litigation risk for companies and questions that boards can use to engage with management.

The CCLI has partnered with the Climate Governance Initiative (CGI) to prepare this Quarterly Update for the CGI network. This is the fourth update of a series of quarterly learning materials on climate change as it relates to boards’ duties and governance.

Commonwealth Climate and Law Initiative
The CCLI examines the legal basis for directors and trustees to consider, manage, and report on climate change and broader environmental risks, opportunities and impacts, and the circumstances in which there may be liability for failing to do so. We also work to advance knowledge on effective sustainable governance practice.
Contact

The Commonwealth Climate and Law Initiative is a company limited by guarantee registered in England and Wales with company number 11813153, REGISTERED CHARITY NUMBER 1203501 and with registered office at 128 City Road, London, United Kingdom EC1V 2NX.

Commonwealth Climate and Law Initiative

The CCLI examines the legal basis for directors and trustees to consider, manage, and report on climate change and broader environmental risks, opportunities and impacts, and the circumstances in which there may be liability for failing to do so. We also work to advance knowledge on effective sustainable governance practice.

Contact

The Commonwealth Climate and Law Initiative is a company limited by guarantee registered in England and Wales with company number 11813153, REGISTERED CHARITY NUMBER 1203501 and with registered office at 128 City Road, London, United Kingdom EC1V 2NX.

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