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.