Increasing attention for biodiversity in company reporting (2020 results)

Each year, UEBT analyses how much attention cosmetic and food companies pay to biodiversity in their corporate reports and websites. Research conducted in early 2020 shows that references to biodiversity continue to increase: in the beauty sector, it was 49% of companies - from 13% in 2009. In food and beverages, it was 80% of companies - from 53% in 2012.

In 2020 we observed most growth in the food sector, as a result of increasing global attention to biodiversity and new biodiversity related business initiatives. Yet, the depth and quality of information reported is still limited, related to specific supply chains, such as palm oil or paper. To increase relevance, more systematic and transparent reporting against clear indicators would be required.

In addition in 2017, UEBT had also interviewed various experts in the sector to gain deeper understanding (see below):

Biodiversity: a key asset for business 

Business is increasingly realising the importance of biodiversity as a vital source of innovation and inspiration. With the mounting importance of naturals, respect for biodiversity is imperative to assure long-term access to natural ingredients. There is also a growing realisation that biodiversity contributes to ecological resilience of sourcing areas, a key concern in time of climate change, and offers access to a gene pool that assures healthy populations or resistance to new pests. 

Ethical sourcing of biodiversity key for positive impact companies 

A growing number of companies commits to having positive impacts on society, rather than just mitigating risks. Biodiversity is at the basis of a wide range of natural ingredients, and positive impact can be created for people and biodiversity all along the supply chain. With consumers indicating that companies have the moral obligation to generate positive impact, brands are increasingly aspiring this. 

Biodiversity based innovation

Driven by growing consumer demand for naturals, trends to eliminate synthetics in product formulations, and new technologies, companies increasingly embark on biodiversity based R&D. Aquatic, soil, and plant biodiversity are sources for innovation in various sectors, providing new active ingredients, scents, nutritional qualities, or higher yielding plant varieties. 

Access and benefit sharing (ABS) & biodiversity-based innovation 

With the UN Nagoya Protocol, national rules are being developed on biodiversity-based R&D. These rules may impact a range of activities, including screening of plant extracts, testing natural ingredients and sourcing plant-based raw material. Biodiversity-rich countries such as Brazil, India and South Africa already have ABS rules in place, as well as the European Union, which focuses on ensuring compliance of biodiversity-based R&D in member states. 

As ABS regulations are unfolding, implications are initially unclear and some companies may avoid biodiversity-based innovation, or countries with strict rules. However, as numerous countries adopt rules and importance of innovation around naturals continues to grow, experts see companies moving to understand and engage in ABS.