Business Performance and Governance Visual Presentation B03: Moving beyond climate to nature-focused operations

Business Performance and Governance Visual Presentation B03 Businesses are being subjected to increasing scrutiny on their Environmental, Social and Governance (ESG) performance in recent years driven by market pressures, stakeholder expectations and regulatory requirements. The ESG-focused regulations are becoming increasingly stringent, and legislation, standards and frameworks are regularly evolving, with new ones introduced across many jurisdictions to address emerging ESG issues. Climate legislation significantly increased following the Paris Agreement in 2016, and combination of regulatory, investor and consumer pressures drove businesses to address their greenhouse gas emissions to meet the net-zero objective. Expectation is now shifting towards the management and disclosure of nature-related aspects of an organisation’s activities. The Global Biodiversity Framework agreed by 196 countries in 2022 signalled the global intention to move beyond addressing climate change in isolation and incorporate measures to address nature loss and degradation as part of the way forward. The Taskforce on Nature-related Financial Disclosure launched recommendations in 2023 to help businesses identify and manage their nature-related risks. In 2024, ‘nature-positive’ legislations were introduced in the UK, Australia and the European Union, with many other countries expected to follow suit in the coming years. In this paper, we draw from previous experiences with energy clients to provide recommended approaches to identify nature-related risks and opportunities, and approaches that can be taken to incorporate nature-positive considerations into operational decisions. We also describe key aspects to consider for a systematic means to manage performance to align with existing disclosure requirements, while allowing for flexibility in addressing potential changes in the future. To access the Visual Presentation click the link below. To read the full paper click here