Corporate Biodiversity Disclosure Remains Far Below Global Biodiversity Framework Targets

Only 7% of companies and financial institutions assessed their dependencies on biodiversity as of 2023, despite the Global Biodiversity Framework requiring all businesses to disclose and reduce biodiversity-related risks. CDP's analysis of data from more than 23,000 companies reveals wide gaps in corporate action on the GBF's key targets ahead of the 2030 deadline.

Businesses representing 33% of global market capitalisation now disclose on nature, a positive trend that must accelerate sharply to achieve GBF Target 15. A 24% increase was recorded between 2022 and 2023 in companies assessing water dependencies, but biodiversity assessment remains nascent: just one-quarter of companies that do assess biodiversity dependencies extend the analysis to their full value chain. Contaminated water supplies alone caused US$13.5 billion in stranded assets in the oil, gas, utilities and mining sectors in a single year.

Progress on reducing deforestation remains insufficient. In 2023, only 29% of companies disclosed their deforestation or conversion footprint. The potential financial consequences are significant: biodiversity and ecosystem service loss could cause a US$2.7 trillion annual decline in global GDP by 2030. Only 57% of water-related risks and 54% of forest-related risks are covered by a quantified financial impact value, leaving most companies with an incomplete view of their nature-related exposure. Financial institutions continue to underestimate portfolio risk, with only 12% and 16% respectively identifying material forest and water risks.

CDP tracks progress on GBF Targets 15, 10 and 12. For Target 10, which covers sustainable agriculture and forestry, only six states and regions globally have reported credible AFLOU targets. For Target 12, which addresses urban biodiversity, a minority of the 1,100 cities reporting to CDP in 2023 have adopted practices aligned with the target, and one-third of planned actions will not be realised for more than 25 years. CDP's 2024 expansion of its questionnaire aims to fill these gaps by covering more nature data points and providing location-specific insights.

Key figure — US$2.7 trillion potential annual GDP decline from ecosystem loss by 2030