Biodiversity underpins all economic activities through the provision of a range of ecosystem services, and it is experiencing dangerous and unprecedented declines due to the current model of economic development. The world’s ecosystems have declined in size and condition by 47% globally compared to estimated baselines, and the continued degradation of ecosystem services represents an annual loss of at least US$479 billion per year. With recent estimates stating that more than half of the world’s total Gross Domestic Product is moderately or highly dependent on ecosystem services, these declines in biodiversity are a signal that action needs to be taken to strengthen the global economy’s resilience.
This report is designed for financial instututions to enable a better understanding of the business sectors and financial mechanisms at risk from the loss of biodiversity.
The report lays the groundwork for biodiversity-related target-setting and sets out an initial approach to enable financial institutions to set evidence-based biodiversity targets aligned with international policy developments.
The COVID-19 pandemic is likely an example of how the disturbance of ecosystems can have systemic consequences.