ABC of biodiversity compliance | Why nature matters in ESG?

Businesses are expected to accept nature-related risks and dependencies and go beyond carbon as the ESG agenda develops. Biodiversity is now a strategic asset and liability rather than a side issue. The availability of raw resources, clean water, rich soils, pollination, and climate stability is all supported by nature and is a necessary component of robust and successful company operations in a variety of industries. However, biodiversity is still mostly left out of non-financial reporting and ESG efforts.

📈 According to BCG analysis (BCG, 2021) and scholarly research, ecosystem services alone are valued at about $150 trillion a year, which is roughly double the global GDP. The loss of natural services resulting from ecosystem dysfunction already costs the world economy over $5 trillion annually. Among other challenges, land conversion, material extraction, and hydrological disruptions translate into operational, regulatory, and reputational risks in addition to compliance concerns.

However, non-financial reporting still underrepresents biodiversity. Merely two-thirds of the global market value disclosed their environmental data, according to the Carbon Disclosure Project (CDP Türki̇ye, 2024). Furthermore, just 2% of businesses fulfilled the strict requirements for ambition, transparency, and coordinated environmental action (CDP, 2025).

Companies that are looking to the future are now using a double materiality lens:

▶ What effects do our resources and initiatives have on biodiversity?

▶ How can the loss of biodiversity affect our long-term value, licensing, and operations?

Frameworks, like CSRD, CSDDD, EU Taxonomy, and CBAM, are changing the requirements for disclosure by mandating that businesses map the risks and impacts associated with nature throughout their value chains.

We will examine the relationship between biodiversity and long-term business resilience, financial performance, and regulatory compliance in this series, ABC of biodiversity compliance. Converting ecological complexity into commercial knowledge is the aim, from nature-positive transformation planning to ecosystem service valuation.

The author: Anna Yalova.