Biodiversity: the new carbon?

The Guardian, a leading UK newspaper, recently published an interesting analysis of biodiversity as the new “carbon”. After discussing how biodiversity has emerged as a new issue for companies to incorporate in their business strategies, the article details the main motivations for this.

The first motivation mentioned is reputational risk but the most interesting is the one concerning a company’s liability in case of impacts or damages on biodiversity. The Deepwater Horizon oil spill (BP) is used as an example. This underlies two things:

  • That the “business case” for incorporating biodiversity in business decisions and strategies is strongly dependant on an appropriate institutional context where companies are liable for impacts on biodiversity. The requirement to avoid, reduce and offset impacts is one such context.
  • That anticipating possible impacts and the potential financial losses that could result from such impacts requires the development of impact assessment procedures and methods that can be parametrized in advance.
  • The USA have developed assessment methods to be applied in the context of Natural Resource Damage Assessment procedures (NRDA), such as Habitat Equivalency Analysis and Resource Equivalency Analysis. In Europe, the 2004 Environmental Liability Directive will certainly make governments and environmental authorities push for the development of such methods.

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