Mirova and Phitrust put biodiversity on the agenda of CAC 40 general meetings

This unprecedented action aims to encourage large companies to demonstrate the ambition of their biodiversity strategy, with a dual objective:

• Encourage them to use the nature reporting framework carried out by the Taskforce on Nature-related Financial Disclosures (TNFD), and at least ask them to report on biodiversity as a material subject for their activities under the Corporate Sustainability Reporting Directive (CSRD)¹; 
• Encourage these companies to realize their ambition to preserve natural ecosystems through science-based objectives (e.g., Science-Based Targets for Nature, or SBTN) in the medium term.

Beyond climate change, the preservation and conservation of biodiversity are structural challenges of sustainable growth on which urgent action is needed. Half of global GDP is dependent on nature and its essential ecosystem services, and their collapse could lead to a $2.7 trillion GDP loss by 2030². According to the European Central Bank, 75% of European loans have been granted to companies highly dependent on nature³.

In order to guide companies in considering the topic, an international nature disclosure framework was published by TNFD in September 2023⁴, a key step positioning “nature” risk at the same level as financial, operational and climate risk and redirecting capital flows to the most responsive companies in the face of biodiversity loss. The TNFD recommendations are intended to be consistent with the regulatory obligations of European companies such as the European Sustainability Reporting Scheme (ESRS)⁵ of the Sustainability Disclosures Directive (CSRD). 

More than 320 companies worldwide have already committed to publishing a report aligned with TNFD recommendations in the next two years, and several companies are already planning to validate their SBTN land and water aligned targets in 2024. Mirova and Phitrust are working to promote these standards to companies, particularly those high biodiversity stakes.

¹ Directive (EU) 2022/2464 of the European Parliament and of the Council of 14 December 2022 amending. Regulation (EU) No 537/2014, Directive 2004/109/EC, Directive 2006/43/EC and Directive 2013/34/EU, as regards corporate sustainability reporting.
² The Economic Case for Nature A Global Earth-economy model to assess development policy pathways, World Bank, 2021.
³ The economy and banks need nature to survive, European Central Bank, 2023.
⁴ Final TNFD Recommendations on nature related issues published and corporates and financial institutions begin adopting, TNFD, 2023.
⁵ Commission Delegated Regulation (EU) 2023/2772 of 31 July 2023 supplementing Directive 2013/34/EU of the European Parliament and of the Council as regards sustainability reporting standards.