Why should business care about yet another COP? 


Nadya Kamenkovich


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What is COP16?

Biodiversity and nature are in grave danger, as evidenced by the 73% decline in wildlife populations since 19701, and the breach of six of Earth’s nine planetary boundaries —safe operating spaces for humanity2. To address this urgent threat, world leaders convene annually at the Biodiversity COP to take action to protect nature and biodiversity.

In 2024, the Biodiversity COP, or COP16, took place in Cali, Colombia (from 21 October to 1 November 2024). While the Climate COP often dominates global headlines, the Biodiversity COP is equally crucial in safeguarding our planet's future.

Building upon the ambitious Global Biodiversity Framework (GBF) adopted at previous COP15 in Montreal, COP16 aimed to assess progress, refine strategies, and mobilise resources to halt and reverse biodiversity loss.

However, the conference concluded abruptly, with several key issues left unresolved. Despite the participation of over 20,000 delegates, quorum was lost on the final day due to departures, necessitating the suspension of the conference3.

 

 


What happened at COP15?

The last Biodiversity COP (COP15)  in Montreal in 2022 had resulted in the adoption of Kunming-Montreal Global Biodiversity Framework (GBF). This framework is aimed to reverse biodiversity loss by 2030 through a set of four goals and 23 specific targets, which include 30% conservation of land, sea and inland waters, 30% restoration of degraded ecosystems, halving the introduction of invasive species, and $500 billion/year reduction in harmful subsidies4. One of the crucial components of the GBF was the target to mobilise at least $200 billion annually from domestic, international, public, and private sources to support biodiversity conservation5.

Despite the ambitious GBF targets, there has been little progress. The UN State of Finance for Nature report paints a concerning picture. While annual investments in nature-destructive activities reach $7 trillion annually, those supporting nature-based solutions remain significantly lower at $200 billion6. Furthermore, only a small number of countries have submitted national action plans aligned with global biodiversity targets7.

What does COP16 mean for business?

Even if progress at country level is being slow, businesses have a role to play in proactively recognising the risks of biodiversity loss to their operations and business models and take steps to address them.

We saw some steps towards this goal at COP16. The Taskforce on Nature-related Financial Disclosures (TNFD) announced a significant milestone: over 500 companies and financial institutions committed to adopting the TNFD framework and publishing nature-related disclosures8. These companies have committed to publish TNFD-aligned disclosures as part of their annual corporate reporting for fiscal years 2024 or 2025.  Additionally, TNFD released a discussion paper providing draft guidance on developing and disclosing nature transition plans9.

These developments align with the increasing regulatory focus on nature-related disclosures. The EU Corporate Sustainability Reporting Directive (CSRD)’s ESRS E4 mandates companies to disclose biodiversity-related metrics10. Additionally, the International Sustainability Standards Board (ISSB) is developing global sustainability standards that will likely include biodiversity-related disclosures. Other reporting bodies such as CDP and GRI are also integrating nature-related disclosures into their reporting, reflecting the growing importance of biodiversity in corporate reporting11.

 


Key Outcomes of COP16

 

What were the key priorities for governments at COP16? The negotiations have centered on several key areas, however, as the conference was cut short, there were no agreements reached on some of them, including finance mechanisms to mobilise resources or details for monitoring progress12:

 

1.       National Biodiversity Pledges (NBAPs). Many countries failed to meet the deadline for submitting their National Biodiversity Plans prior to the summit13. COP16 urged these countries to submit updated plans as soon as possible.

2.       Adopting the Monitoring Framework. Participants at COP16 struggled to adopt a monitoring framework to track progress towards the GBF targets, as the agreement  was not reached.

3.       Mobilising Financial Resources. A major challenge at COP16 was securing the necessary funding for biodiversity conservation. Participants failed to agree on setting up a new fund and raising at least $20 billion per year from developed countries to support developing nations14.

4.       Fair and Equitable Access and Benefit Sharing (ABS). COP16 agreed on a new mechanism, the Cali Fund, to ensure fair sharing of benefits from genetic resources, particularly digital sequence information (DSI). This will help ensure that all nations benefit from the use of these resources.

5.       Indigenous Peoples and Local Communities (IPLCs). COP16 has been described as the “COP of the people,” as Columbia prioritised the rights and participation of IPLCs in biodiversity conservation15. Participants managed to agree on establishing a new body to ensure the fair participation of IPLCs in conversation.   

 Importantly, COP16 offered a strategic opportunity to reaffirm the urgent imperative of halting and reversing biodiversity loss for the benefit of humanity and all life on Earth.

What could companies do?

Companies could stay ahead of the curve and consider the following: 

  • Conduct a double materiality assessment to see which nature-related issues are material to you and your stakeholders.
  • Leverage data and progress against targets to engage with stakeholders and demonstrate a commitment to sustainability.
  • Embrace nature-related disclosures. Adopt the TNFD framework to assess and disclose nature-related risks and opportunities. Prepare for the implementation of the EU CSRD and other relevant regulations. For inspiration on effective nature-related disclosure, businesses can refer to the latest research from Black Sun Global. Our report analyzes corporate performance in disclosing nature-related information amongst leading European and British companies.
  • Invest in nature-based solutions. Support initiatives that protect and restore ecosystems.
  • Collaborate with suppliers and customers to promote sustainable practices.

 

[1] WWF, Living planet report, 2024.
[2] Those boundaries include climate change, biodiversity loss, nitrogen and phosphorus cycles, land-use change, freshwater use. Katherine Richardson et al., Earth beyond six of nine planetary boundaries, Sci. Adv. 9, 2023.
[3] Carbon Brief, COP16: Key outcomes agreed at the UN biodiversity conference in Cali, Colombia, 2024.
[4] Convention on biological diversity, Kunming-Montreal Global Biodiversity Framework , 2022.
[5] Ibid. 
[6] UNEP, State of finances for nature, 2023.
[7] WWF, Too few countries on track to restore nature by 2030, unveils new country tracker ahead of global nature conference, 2024.
[8] TNFD, Over 500 organisations and $17.7 trillion AUM now committed to TNFD-aligned risk management and corporate reporting, 2024.
[9] TNFD, Discussion paper on nature transition plans, 2024.
[10] CSRD, Directive (EU) 2022/2464 of the European Parliament and of the Council of 14 December 2022 amending Regulation (EU) No 537/2014, Directive 2004/109/EC, Directive 2006/43/EC and Directive 2013/34/EU, as regards corporate sustainability reporting (Text with EEA relevance).
[11] ESG Today, CDP Launches New Sustainability Reporting Platform Aligned with IFRS Climate Disclosure Standard, 2024; ESG Today, GRI Launches New Biodiversity Reporting Standard, 2024.
[12] Convention of biological diversity, Compilation of draft decisions for the sixteenth meeting of the Conference of the Parties to the Convention on Biological Diversity, 2024.
[13] CarbonBrief, COP16: More than 85% of countries miss UN deadline to submit nature pledges, 2024.
[14] Ibid.
[15] Gov.Co, Aprobación de Plan de Trabajo para los pueblos indígenas, una prioridad de Colombia en COP16, 2024. 

About Black Sun

Black Sun Global is a stakeholder advisory and engagement agency that's been driving transformation and positive change for ambitious brands for more than 20 years. With deep expertise in disclosure and reporting, ESG, sustainability, and digital engagement, we reshape how organisations connect with customers, investors, employees, and the wider world. 

We are trusted partners to some of the most influential global organisations, sparking innovation and sustainable performance through our strategic insights, partnerships, and proprietary technologies.

As founders of the Positive Change Group, we are on a mission to create a new kind of stakeholder relations partner. Our world-class specialists work closely with executive leadership teams to protect reputations, inspire trust, and promote responsible business practices - building resilience and long-term value in a rapidly changing world.

For more information, please visit: www.blacksun-global.com





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