The World Benchmarking Alliance’s (WBA) newly published Nature Benchmark, released on 7 August, offers compelling insights that could reshape corporate responsibility. It critically evaluates the nature-related strategies and disclosures of over 800 major corporations across more than 20 industries, examining their impacts on biodiversity, ecosystems, water stewardship, and plastic waste, as well as their approach to the interconnected social sustainability challenges.
The Benchmark uncovers a pervasive gap between the high-level commitments made by many large corporations to safeguard nature and the tangible action plans required to realise these commitments. Furthermore, the majority of these companies are deficient in collecting and disseminating robust data to substantiate claims of meaningful progress.
Notably, only 5% of the corporations included in the Benchmark have conducted assessments of how their operations affect natural systems, while less than 1% have evaluated their dependencies on these systems.
The WBA’s findings suggest that none of the evaluated companies “holistically assess and disclose” their nature-related dependencies.
These results are particularly concerning in light of the increasing regulatory mandates in certain markets, such as the European Union, which require nature-related assessments and disclosures. The UN biodiversity treaty, agreed upon in December 2022, commits nations to implementing such corporate disclosure requirements within this decade.
In the interim, voluntary frameworks are emerging. For instance, the Taskforce on Nature-Related Financial Disclosures (TNFD) has garnered support from over 400 organisations for its framework, designed to enable businesses to assess and report on their nature-related risks, dependencies, impacts, and opportunities.
Plastics, People, and Water
The data underpinning the WBA’s Benchmark was sourced from publicly available documents published between 2022 and the present.
The analysis indicates that corporate strategies concerning water stewardship and plastic pollution exhibit a marginally higher level of maturity compared to broader nature-related strategies, though substantial deficiencies persist.
A mere 20% of companies provide quantitative data on reducing virgin plastic usage or enhancing plastic recycling. Only 7% have established specific, time-bound targets to reduce plastic consumption and waste.
A significant proportion of companies emphasise what the Alliance describes as ‘stand-alone’ or ‘one-off’ initiatives, often detailing changes to packaging for individual products or sponsoring isolated employee litter clean-ups. However, they generally fail to provide data that demonstrates a meaningful reduction in their overall environmental impact.
Regarding water stewardship, 71% of the assessed businesses do not disclose their water usage in regions facing water scarcity.
Only 15% report on metrics related to pollutants discharged into water bodies, and a mere 4% have set targets aimed at reducing such pollutants.
The WBA’s analysis further reveals that most companies are ill-equipped to address the repercussions of biodiversity loss, water-related challenges, and pollution on Indigenous and local communities in the areas where they operate. Only 13% have made explicit commitments to uphold local rights, such as Free, Prior and Informed Consent.
Across all measured indicators, manufacturers of personal and household products emerged as leaders relative to other sectors. However, these companies still attained an average overall score of less than 30%.
“Our research indicates that the vast majority of large corporations continue to overlook the critical importance of nature, despite the fact that a healthy planet is foundational to a healthy economy,” remarked Jenni Black, WBA’s lead on nature transformation.
Prior research has demonstrated that over half of global GDP is intrinsically linked to nature.
Black underscored the necessity for companies to understand the impact of their value chains on nature, cautioning that failure to do so could result in the accrual of significant risks and inadequate preparedness for forthcoming regulations. She also advocated for the enhancement of competencies within senior leadership and the strengthening of accountability mechanisms.
Black concluded, “It is imperative that governments, investors, and civil society hold the private sector accountable, ensuring that all large and transnational corporations systematically monitor, assess, and disclose their risks, dependencies, and impacts on biodiversity.”
At Climate Action for Associations (CAFA), we equip associations with the tools and guidance needed to address and close gaps in their environmental and social responsibility efforts. This latest analysis underscores the urgent need for robust action plans and transparent reporting. CAFA offers comprehensive support, from emissions reporting to strategic advice, to help associations lead effectively and fulfil their sustainability commitments. Explore how we can assist you in making impactful changes by looking at our resources here.
Comentários