Bringing together at least 23,000 delegates from around the world to Cali, Columbia, the 2024 UN Biodiversity Conference – better known as COP 16 – is the largest-ever nature COP. It is also the first since 188 governments adopted the Kunming-Montreal Global Biodiversity Framework (GBF) in Canada two years ago. Hailed as a turning point in the global battle to halt and reverse nature loss, the GBF was as historic a moment for biodiversity as the 2015 Paris Agreement was for climate.

Calling on governments, regulators, investors and companies to work together to transform our relationship with nature, the GBF set ambitious targets for putting nature on a path to recovery by 2030. In terms of both risks and opportunities, its aims have profound implications for business.

As well as driving forward the GBF’s mission, COP 16 has served as ‘the people’s COP’. Its strong focus on indigenous groups and local communities as custodians of biodiversity – and as key partners in the conservation and restoration of nature – aligns with Article 8(j) of the 1993 Convention on Biological Diversity (CBD). Key parties in Cali have considered proposals for a new work programme around Article 8(j) to enhance the role of indigenous peoples within the CBD.

With businesses, finance firms and non-governmental organisations all strongly represented, COP 16 reflects a growing recognition that nature is a material issue for companies, investors and economies – plus a source of potential competitive advantage that many corporates are already exploring. The commitments, decisions and partnerships formed here will have a significant influence on industry as a whole – and the accounting profession in particular.

Key takeaways

1. Aligning economies and business models with nature’s recovery has never been more urgent. Published ahead of COP 16, WWF’s latest Living Planet Report, A System in Peril, warns that 73% of global wildlife populations have been lost in the past 50 years. COP16 has underscored what we already know – the Earth is rapidly nearing tipping points, posing grave risks to businesses, financial stability, economies and societies. Momentum is building, but we don’t have much time.

2. It remains to be seen if governments will follow-through on commitments. Ahead of COP16, more than 80% of countries had not yet submitted National Biodiversity Strategies and Action Plans (NBSAPs) outlining how they intend to meet GBF targets. Unlike Nationally Determined Contributions required under the Paris Agreement, NBSAPs are voluntary. Citing the summer’s General Election as the main factor, the UK was among the nations to miss the deadline. It now expects to submit later in 2025. Presenting risks and opportunities alike, NBSAPs will potentially affect numerous business activities and supply chains.

3. Finance is a top priority. Amid ongoing divisions in talks, pressure on governments to agree on a robust financial package to unlock funds for nature conservation is mounting. On Monday 28 October, COP 16’s Finance and Biodiversity Day backed efforts to align resource mobilisation and public and private financial flows with the vision of the GBF. Those efforts are particularly relevant to GBF targets 18 (Reduce harmful incentives by at least $500bn per year and scale up positive incentives for biodiversity) and 19 (Mobilise $200bn per year for biodiversity from all sources, including $30bn per year through international finance).

Fostering meaningful discussion between CEOs, finance ministers and other relevant leaders, this day of special focus provided a platform for debate and collaboration between senior figures on how to meet society’s nature goals.

4. Market adoption of nature-related reporting continues to accelerate. As the event’s first week drew to a close, the Taskforce on Nature-related Financial Disclosures (TNFD) released some encouraging news: 502 companies and investors have now committed to its voluntary framework for reporting nature-related issues. That’s a 57% increase since TNFD unveiled its First Adopters in January this year. Signatories include 129 financial institutions with $17.7tn in assets under management, plus publicly listed firms representing $6.5tn in market capital. KPMG is the first ‘Big 4’ firm to commit to TNFD reporting.

As TNFD notes: “The rapid market uptake, particularly among asset managers, highlights the growing appreciation among companies and financial institutions that nature is a material risk issue for their business and a new source of opportunity and potential competitive advantage.”

5. Naturetech is booming. Numerous innovative new initiatives and partnerships emerged at COP16, including the release of Integrating Nature Tech: A Guide for Businesses, issued by Nature4Climate, KPMG, the Nature Tech Collective, Climate Collective and specialist venture capital firm Serena.

According to the report, startups in the naturetech industry – which encompasses drones, sensors, satellites, artificial intelligence tools and other technologies used in the protection of nature – will hit a total valuation of $2bn by the end of 2024. As such, the report provides companies with a methodical approach for using naturetech across their business models, based on the Access, Commit, Transform, Disclose (ACT-D) framework (for more on how that sits within a broader nature strategy, see this previous article from our Nature and Biodiversity Hub).

In parallel, TNFD proposed a roadmap for enhancing market access to decision-useful, nature-related data. Amid growing demand for credible, consistent and auditable data to support decision-making and reporting, naturetech represents a major area for upskilling and opportunity in the profession. By helping companies monitor, report and validate their progress, naturetech supports transparency, accountability and the entire disclosure cycle.

Nature: a growing priority for ICAEW

By any measure, the stakes at a UN nature COP have never been higher. The themes outlined above illustrate in stark terms the challenges that our planet faces. More importantly, they underscore the urgent need for collective action. 

ICAEW recently led a new report from the Global Accounting Alliance (GAA), setting out critical actions for progress in the accounting profession. As global markets increasingly demand transparency and regulation around nature-related issues, the GAA will focus on several priority areas, including:

• Advocating for effective public policy, aligned with the GBF’s targets for 2030.
• Engaging standard-setting bodies to ensure consistent and robust global reporting standards that incorporate nature into sustainability disclosures.
• Providing practical tools and guidance to the profession – including the forthcoming Starter Guide to Nature for Accountants, which will help professionals embed nature into their decision-making and reporting.

Find out more about ICAEW’s work in this arena at our Nature and Biodiversity Hub.