“No climate action is possible without having nature as our main ally,” said Pia Zevallos, Libélula's General Manager.
Today, the interdependence between human activities and the natural environment is becoming increasingly evident. In this context, business management is faced with an unprecedented challenge: to consider the natural capital on which we depend and to assess the exposure of your business to climate risks. This was one of the key messages he left nexos+1 Forum Latam 2024.
In the words of Tim Christophersen, VP of Climate Action at Salesforce, “Everything we've built as a global civilization for the last 10,000 years has been driven by a stable climate and functional biosphere; and we've thought that this is something that will always be the case. But life on earth has changed.” This statement underscores the urgent need to recognize and address the reality of significant changes in the natural systems that sustain our society.
The economy's dependence on nature is undeniable, explained Dan O'Brien, a partner in PwC's sustainability team. “More than 50% of global economic activity is materially dependent on nature.”he noted. This dependence is not limited to specific industries, but extends along the entire value chain, from agriculture to construction.
However, this reliance is not without risk. The biodiversity decline and the impacts of climate change on the natural ecosystem pose significant threats to companies around the world. In this context, management of the natural environment is becoming imperative for companies; They need to know and report on their interaction with nature, develop positive strategies for their conservation and prepare for future disclosure regulations.
The Global Biodiversity Framework, agreed in 2022, calls for all countries to create regulations to encourage the private sector to measure and report their impacts on nature, underlining the importance of a corporate environmental responsibility more transparent and proactive.
Natural capital management in the environment is complemented by climate risk management.. Santiago Nuñez, Climate Change Adaptation Specialist at the United Nations Environment Programme (UNEP), noted that “businesses have a great opportunity for climate change adaptation by influencing their value chain to increase their resilience,” and highlighted nature-based climate solutions. This is especially relevant for SMEs in the value chain, which represent 99% of businesses in the region and contribute 40% to GDP. Erika Vargas of the UPS Foundation stressed the importance of supporting these companies because “we all depend on a small and medium-sized entrepreneur”. Increasing their resilience contributes to the operational continuity of large corporations as well.. This collaborative approach between companies in the value chain is essential to address environmental and climate challenges.
In this line, the mass consumption company Alicorp shared its work with small producers in its Sustainable Palm and Sustainable Soy programs, which are based on capacity building for sustainable production, accompaniment in becoming certified as sustainable with international organizations and the impact tracking through satellite tools that allow monitoring of deforestation. “Climate change is an element that is increasingly integrated into decision making that helps us mitigate the risks that Alicorp has both now and in the future, but it is also progressively a source of business opportunities,” confirmed Ian Nightingale, corporate manager of sustainable development at Alicorp.
The role of the financial sector is very important because it is an important catalyst. “We mobilize funds for companies, so we have a responsibility to ensure that they go to environmentally and socially responsible companies,” explained Darice Gubbins, head of sustainability for the Credicorp group. “Each company has to introspect and understand how it can transform its business model to make it more sustainable and adapt it to this reality.. And we as banks are going to be there to accompany our clients with knowledge and financing to achieve this transition,” added Gerardo Moreno, tribe leader of credit products for Corporate and Business Banking at BCP.
Managing the environment beyond internal operations is essential to ensure business resilience and long-term sustainability.
As UPS's Ericka Vargas concluded, “climate action requires a effort of the whole society and this multi-sector collaboration is key to speeding it up and also making it more efficient".
