Counting the cost

Sustainable development and the preservation of biodiversity work hand in hand. Achieving United Nations Sustainable Development Goals, such as zero hunger, clean water and sanitation, and reduced inequalities, depends on protecting and restoring ecosystems and adopting a sustainable approach to other species.

The framework will adopt a four-pillar approach similar to that of the TCFD, which recommends disclosure of an organisation’s governance, strategy, risk management, and metrics and targets relevant to climate-related risks and opportunities.

The TNFD framework is also expected to incorporate a common language on what constitutes nature-related risks and opportunities, based on the impact on nature of sector-specific activities. 

Bountiful nature

Nature-based solutions – climate strategies with benefits for biodiversity – have the potential to provide more than a third of the emissions reductions needed by 2030 to meet the goal of keeping global warming below 2°C.

Opportunities for nature-positive business transitions could generate US$10.1 trillion in annual business value and create 395 million jobs by 2030, a 2020 World Economic Forum report predicted. To make the transition, companies will need to examine their operations for opportunities to embrace nature-based solutions.

The value the CLP Group places in preserving biodiversity is reflected by its track record of compensating for any impact on biodiversity and ecology in its operations around the world.

For instance, EnergyAustralia, the Group’s wholly owned subsidiary in Australia, has taken action to offset the impact of its Yallourn coal mine. In 2020, it provided 39 hectares of grass and native vegetation habitats, exceeding the mine disturbance footprint.

In Mainland China, the Xicun Solar Power Station successfully integrated the farming of honeysuckle flowers into its operations, transforming what was previously a sandy wasteland into cultivated farmland and bringing benefits to local farmers.

In Hong Kong, CLP allocated HK$100 million in 2020 to two environmental enhancement funds supporting marine ecology conservation and sustainable development of the fishing industry in the vicinity of the Hong Kong Offshore Liquefied Natural Gas Terminal Project.

A clear way forward

Action to safeguard biodiversity is gathering pace. The first phase of the 15th United Nations Conference of the Parties to the Convention on Biological Diversity (COP15) in October closed with the adoption of the Kunming Declaration, in which countries committed to the development and adoption of an effective post-2020 global biodiversity framework.

That framework will be fundamental in pushing national policies that will place biodiversity on a pathway to recovery by 2030, and towards full realisation of a global vision of living in harmony with nature by 2050.

The framework is scheduled to be adopted during the second phase of the conference next year. In addition, the Global Environment Facility, the United Nations Development Programme, and the United Nations Environment Programme have issued a joint statement on their partnership to fast-track financial and technical support to governments to prepare for the framework’s implementation.

These bold and urgent initiatives set out a roadmap for governments and businesses worldwide to embrace sustainability, preserve biodiversity, and safeguard the immense richness and diversity of life on Earth for the benefit of us all.