CEOs and executives from 50 companies and financial institutions urge the EU to adopt environmental legislation to address the nature and climate crises together

 

CEOs and executives from 50 companies and financial institutions urge the EU to adopt environmental legislation to address the nature and climate crises together

 

Ahead of a critical vote on the EU Nature Restoration Law, today more than 40 companies, including the CEOs of CNP Assurances, Croda International, IKEA, Impax Asset Management, l'Occitane en Provence, Mirova, Novozymes, Public Power Corporation S.A., Séché Environnement,  Triodos Bank and Unilever and business leaders from H&M Group, Holcim, Iberdrola, Legal and General Investment, Nestlé, Salesforce, Suez and Tetra Pak among others publish a letter urging European leaders to adopt ambitious environmental policies and regulations to tackle the negative impacts of the dual climate and nature emergencies. 

 

12 JUNE 2023

https://www.businessfornature.org/news/euenviroregulation

 

READ THE OPEN LETTER  https://www.businessfornature.org/messageeuleaders

 

The open letter is one of several recent calls from businesses and investors for timely and effective EU environmental policies. In a public statement, businesses and business associations are also calling for the urgent adoption of the EU Nature Restoration Law to bring nature back to Europe. This follows previous calls by business and investor networks for ambitious EU legislation to protect and restore nature. In another show of momentum, the ‘Nature Is Everyone’s Business’ Call to Action has been signed by more than 1,400 companies, calling on governments to adopt policies now to reverse nature loss in this decade.  

 

These repeated and growing calls from businesses and financial institutions for more policy ambition follow concerns that some lobby groups are pushing for a ‘regulatory pause’ on environmental legislation in Europe, even though 196 countries adopted a new global deal for nature in December 2022 at the UN Biodiversity COP15 – the Global Biodiversity Framework (GBF) – with the mission to halt and reverse nature loss by 2030. 

 

“There will be no thriving businesses without nature and the services and resources it provides. Together with many other European businesses, L’OCCITANE en Provence is urging EU leaders to adopt ambitious environmental legislation, including the forthcoming EU Nature Restoration Law. Not only to deliver on the ambitious commitments in the Global Biodiversity Framework but to protect nature and ensure stronger accountability and better-informed decisions by investors, governments, consumers and businesses.”

— Adrien GEIGER, Managing Director, L'OCCITANE en Provence

 

The EU Nature Restoration Law will contribute to implementing several of the GBF targets, including Target 2 on the restoration of degraded ecosystems, Target 7 on addressing pollution, including from pesticides and Target 10 on sustainable land use. A failure to adopt an ambitious law would impede the EU implementation on the global agreement. 

 

Another transformative target in the global agreement is Target 15, which commits governments to require all large and transnational companies and financial institutions to assess and disclose their risks, impacts and dependencies on nature. Indeed, more than 400 companies supported the ask to ‘Make It Mandatory’ to Heads of State to move beyond voluntary actions, increase accountability, engage key stakeholders (e.g. capital markets, regulators, investors, consumers, indigenous peoples and local communities) and ultimately accelerate the transformation of our economies.

 

The European Commission is about to publish the implementation standards of the EU Corporate Sustainability Reporting Directive (CSRD), which will set the structure and disclosure requirements that companies, banks and insurance companies will need to report on.  38 businesses and organizations recently called on the European Commission to maintain the timeline, integrity, and ambition of the European Sustainability Reporting Standards (ESRS) Set 1.  

 

EU leadership sets the pace

If we are to have any hope of turning the tide of nature loss, addressing the most damaging effects of climate change, and tackling growing inequality, we need governments to put in place legally binding laws and regulations. We can’t tackle climate change without protecting, restoring and sustainably managing nature.  According to the IPCC, the world’s oceans, plants, animals and soils have absorbed more than half of human-related carbon emissions over the last decade. Nature is simply our best ally in preventing climate breakdown. 

 

“Natural capital is indispensable to our global economy, but it is being destroyed at an alarming rate. This creates a long-term systemic market risk. As agreed at COP15, we must all strengthen our efforts to protect and restore ecosystems and achieve the goal of ‘living in harmony with nature’ by 2050. It is vital that policymakers in the EU seize the opportunity by translating global agreements into practical action. ”

— Michael Marks, Head of Investment Stewardship & Responsible Investment Integration, Legal & General Investment Management (LGIM)

 

The EU has long been a global leader in enacting progressive environmental legislation which balances the need to protect nature with socio-economic priorities, driving and inspiring action and ambition internationally. As the signatories of today's open letter attest, ‘Now is the time to leave a historic legacy and deliver a comprehensive European Green Deal’.

 

This continued leadership is essential to signal globally that the EU will continue to drive this agenda. The next few months will be critical to start the implementation of the Global Biodiversity Framework and deliver strong outcomes for nature, including the adoption of the EU Nature Restoration Law and the CSRD implementation standards.

 

Greater transparency will ensure a just and equitable transition

With rising living costs, prices for commodities and inflation, the transition to a nature-positive, net-zero and equitable future must be managed sensitively and with transparency.  The people who manage our world’s natural resources, including farmers, fishermen, and indigenous and local communities must be supported in, and benefit from, this transition. 

 

The costs of ‘business as usual’ will bring much greater challenges and risks for the economy.  Land degradation costs more than 10% of global GDP in ecosystem services   and in the euro area alone, approximately three million companies are highly dependent on at least one ecosystem service which would translate into critical economic problems. which would translate into critical economic problems.

 

Change is never easy. But the science is staring right at us – the earth is already past safe and just limits for humans as global temperatures, water systems and natural habitats are pushed to the brink.  Delaying action now means less time and margin to ensure a just transition. Businesses and investors need clarity and a regulatory framework that encourages, incentivizes and rewards positive actions on nature. This transformation will bring opportunities. The World Economic Forum estimates that new products and services that contribute to nature-positive outcomes could be worth $10 trillion a year to businesses. We will all benefit from ambitious action to transition to a nature-positive economy.  

 

More than ever, we need courageous leaders who are willing to take bold action now. Leading companies stand ready to work together with governments to deliver the Global Biodiversity Framework and build a thriving, resilient economy that safeguards nature, climate, and livelihoods.

 

“With growing concerns over the dual climate and nature emergencies, Holcim, along with more than 40 other companies, supports European policymakers to adopt comprehensive environmental policies and regulations, emphasizing the need for effective EU regulation to address the negative impacts on our planet. With the EU’s track record of delivering progressive policies, it is critical that the policy framework supports increased ambition, transforming our economies and societies to safeguard nature, climate, and livelihoods.”

— Magali Anderson, Chief Sustainability and Innovation Officer, Holcim

 

Businesses are calling for ambitious EU environmental legislation 

Nature is our business, our future, our life; Statement for an ambitious EU Nature Restoration Law

 

Business and investor networks call for robust Nature Restoration Law to align EU’s nature and climate ambitions

 

The economy and banks need nature to survive  

 

We cannot move forward with ‘business as usual’ for nature  

 

Nature Restoration Regulation - The Nature Conservancy and Eurelectric Joint Letter

 

Saving Water and Energy by Restoring Nature in Urban Areas: Statement on Nature Restoration Law

 

Healing nature will help us all. So why are MEPs fighting a key new restoration law?

 

Leading businesses urge the European Commission to preserve the timeline, integrity and ambition of the CSRD and ESRS Set 1 

 

60+ companies and investors worth $651bn tell EU to agree ambitious sustainability reporting standards

 

Investor associations call for preserving the timeline and integrity of the CSRD and ESRS Set 1

 

Sustainable Finance and CSRD: Making Progressive Business the Benchmark