This year's World Economic Forum in Davos will look to address climate action failure, extreme weather and biodiversity loss.
Written by Rio ESG
Under the theme ‘Cooperation in a Fragmented World’, the annual World Economic Forum 2023 will bring together more than 2,500 leaders from government, business and civil society, at a pivotal time for the world.
Running from the 16th to the 20th January, top decision-makers from government, business, and civil society will address major global issues and priorities for the year ahead. Following from last year’s Global Risk Report 2022, climate action failure, extreme weather and biodiversity loss are the top three environmental global threats over the next decade.
Many companies recognise the need for climate action and experience the impacts of extreme weather, however, there is growing noise around the devastating affects of biodiversity loss and Nature-based Solutions. Biodiversity loss is defined as species extinction and/ or reduction and results in irreversible consequences for the environment, humankind and economic activity and a permanent destruction of natural capital.
Nature-loss is not simply the stark decline in wildlife populations, in fact we are witnessing numerous humanitarian crises as a direct result. In fact, according to the World Economic Forum’s 2020 Nature Economy Report, roughly $44 trillion in value creation is moderately or highly dependent on nature and its services. Environmental crises are all connected through the ecosystem of supply and demand which means if we don’t reform how we approach biodiversity, the interconnected system that forms life as we know it, these issues will inevitably hit where it hurts most—economically.
New biodiversity-related standards and methodologies are emerging to help financial professionals account for, and report on, nature-related risks and impacts. Additionally, changes in global legislation point to a shift in the way that nature is accounted for in markets and economies.
The responsibility of real climate action primarily falls on the shoulders of governments and businesses, including enforcing, enacting, or investing in effective climate-change adaptation and mitigation measures. There are opportunities to be gained from a market shaped by nature-related policies and nature-smart businesses, and now is the time to start understanding the full scale of how biodiversity and Nature-based Solutions will affect your business and investments.
At Rio, we know the landscape of multiple frameworks and evolving ESG regulations is tricky to negotiate. That’s why we created Rio. We believe that by democratising sustainability knowledge we can support organisations globally, regardless of size or sector, to become more accountable for, and conscious of, their sustainability efforts.
If you would like to read more about biodiversity and Nature-based solutions and how they might affect you, feel free to download our whitepaper or speak to us to see how we can help you on your sustainability journey.