Last year, It’s Now for Nature carried out a snapshot survey of Asian businesses, revealing a wide range of drivers, challenges and opportunities behind the integration of nature into the way businesses think and operate.
Some companies were first movers, who already understood their impacts and dependencies on nature, and were pushing forward with nature-related targets. Others were a step behind, just beginning to assess their risks, impacts and dependencies, while others were at an earlier stage of their nature journey, and looking for support and advice.
But what was clear from the survey was that an understanding of nature is growing. Over 60% of the companies revealed they were assessing their dependencies and impacts on nature, and at the same time, exploring new markets and addressing customer and investor needs.
This isn’t to say that there aren’t challenges too, such as filling gaps in business capacity, limited finance, competing priorities, and dealing with often fragmented regulations. But as Eva Zabey, CEO at Business for Nature, said recently: “The path to a nature-positive economy for all isn’t a straight line. It’s shaped by complex, interconnected factors that we will have to navigate together – from the growth of economies and new tech, to nature regulations and shifts in consumer behavior.”
Making nature part of business thinking
Across the continent, there is a wide range of different drivers behind businesses’ efforts to contribute to a nature-positive future. In Taiwan, explains Kenny Chang, senior manager at BCSD Taiwan, part of the WBCSD’s global network and a Business for Nature partner, companies are taking action on a voluntary basis, with competitiveness and the importance of attracting investors, often through a strong performance on the Dow Jones Sustainability Index, also important factors.
In Indonesia, explains Indah Budiani, executive director at the Indonesia Business Council for Sustainable Development (IBCSD): “compliance with national sustainability regulations remains a key driver of corporate action. At the same time, evolving global standards and partnerships with international organizations, are increasingly encouraging companies to go beyond compliance, strengthening responsible business practices and accelerating the transition towards more sustainable and inclusive value chains.”
According to Yuka Oshima, deputy secretary general at the Keidanren Nature Conservation Council, which raises awareness of biodiversity among Japanese businesses, a mixture of government support, management philosophy, consumer pressure and international norms are encouraging businesses to adopt nature-positive strategies and plans.
Japan has a high level of maturity around biodiversity, explains Oshima, with more than 200 leading businesses having already adopted the Taskforce for Nature-related Financial Disclosures (TNFD), more than twice that of the UK, the second placed country.
Reaching a transition point
ofi operates across several Asian countries, where it sources a huge range of food ingredients such as cocoa, coffee, nuts and spices. According to the company’s chief finance officer for sustainability, Kirsty Law: “We’ve reached a transition point, where companies now realize the importance of assessing and managing their impacts and dependencies on nature. There isn’t one business whose operations or supply chains aren’t linked to nature in some way or another – nature fuels everything.”
ofi relies on a healthy, functioning natural environment, with fertile soils, clean water, and biodiversity, all of which are essential for productive, high-quality crops. The impacts of climate change, such as drought, heatwaves, and flooding, present significant risks. “We have a clear understanding of our dependence on nature,” continues Law, “and believe that the ‘cost of inaction’ on nature and biodiversity will only bring far greater challenges and risks for companies like ours.”
A nature strategy doesn’t have to be stand-alone
The It’s Now for Nature Pulse, launched this year, shows globally businesses are stepping up for nature. Companies are conducting deeper assessments, elevating nature governance to the C-Suite and Board levels and setting ambitious targets to address nature loss. Reinforcing this global trend, Keidanren’s annual survey, which explores corporate efforts around biodiversity, shows how Japan continues to be a leader in nature action. The latest survey reveals that the number of businesses that discuss nature at boardroom level is continuing to grow, while about 40% of the companies surveyed now include biodiversity as part of their management policy or strategy.
This last point is particularly important, explains Pallavi Kalita, Asia lead at Business for Nature, as it reflects the organization’s assessment that businesses don’t necessarily need to adopt stand-alone plans for nature. “Nature can be integrated into climate strategies, sustainability roadmaps or broader business transformation plans,” she explains. “The format doesn’t matter, what does is that businesses are starting to think about nature as a strategic priority.”
ofi, for instance, has given nature and climate their own focus areas within its Choices for Change sustainability strategy, with Regenerating the Living World and Climate Action being two of the principal areas within the strategy. It’s something that Law says is increasingly common across the agri-food sector: “many of our peers are also placing a greater emphasis on nature in their own sustainability strategies,” she explains. “This growing awareness makes sense, as our sector is so directly linked to the health of the planet’s ecosystems.”
Regenerative agriculture is a key element of this nature-first approach, and ofi has developed training programs that look at soil health, fertility management, composting and cover crops, alongside water management and new irrigation technologies. “We look at biodiversity on the farm,” she says, “with teams on the ground that share information about what good looks like in each of these activities.
“By promoting regenerative agriculture, we are helping improve crop yields and creating more resilient farming systems,” she explains.
How innovation can support nature
Keidanren’s work has also highlighted a growing number of Japanese businesses that are developing their operations so that they directly benefit nature. These include the Marubeni Group, which has introduced Recirculating Aquaculture Systems into some of the Atlantic salmon businesses it supports. The system prevents the discharge of residue and waste into the ocean, as well as reusing and recirculating water, reducing the need for additional withdrawals.
Elsewhere, Sumitomo Chemical is championing greater circularity across the business, as it fine-tunes efforts to recycle used acrylic plastic. As part of its forest operations in West Kalimantan, Indonesia, Sumitomo Forestry has also developed technology that can stabilize ground water levels, helping to prevent peatland fires that can destroy both commercial and natural forests.
Leading companies are also supporting suppliers and recognize the business imperative of cascading actions across value chains. “By helping farmers to adopt technologies and skills that improve farming efficiency, we can lower the environmental impact of our supply chain, and strengthen it at the same time, making it more resilient,” explains Law.
It’s a strategy that is also giving ofi a competitive edge, she says, as many of their customers have their own environmental targets and regulatory requirements, such as the EU Deforestation Regulation (EUDR). “They are increasingly looking for partners who can help them achieve these goals. Our commitment to nature-positive makes us a preferred partner of choice,” she adds.
Chang has seen Taiwanese businesses pick up on this thinking, too, especially when they are part of an international supply chain. “Businesses are starting to understand that if they want to continue exporting to other companies and countries, they need to meet all the relevant sustainability criteria,” he says.
In the second part of our focus on Asia, we will look at some of the issues businesses are overcoming in order to put nature at the heart of their business, and the type of support and help that is available.