Biodiversity

Virtually all countries in the world have ratified the 1992 UN Convention on Biological Diversity (CBD), which sets as an international goal the conservation and sustainable use of all biological diversity. The CBD requires signatories to ensure that biodiversity considerations are included in their environmental impact assessment procedures and that biodiversity impacts are routinely included in both national and international environmental assessment procedures.

In April 2002 the CBD-signatories committed "to achieve by 2010 a significant reduction of the current rate of biodiversity loss at the global, regional and national level as a contribution to poverty alleviation and to the benefit of all life on Earth. However, biodiversity is in decline at all levels and geographical scales. Targeted response options can reverse this trend for specific habitats or species.

The CBD identifies three categories of biodiversity: ecosystems, species and genetic materials:

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Ecosystem and habitat protection

A number of international agreements require the protection of natural ecosystems and habitats. The Convention on Biological Diversity requires all member countries to establish a system of protected areas or areas where special measures must be taken to conserve biodiversity, and otherwise to promote the protection of ecosystems and natural habitats.

The UN Convention on the Law of the Sea obliges all signatories to protect and preserve the marine environment. Additionally, there are many Regional Seas Conventions covering specific marine environments.

Two other global treaties protect listed areas: the Unesco World Heritage Convention protects listed natural and cultural sites of global importance, and the Ramsar Convention provides for the protection, conservation and appropriate use of listed wetlands of international importance.

Regional agreements also emphasise the importance of habitat protection generally, and many governments have adopted action plans and other initiatives, such as the International Coral Reef Initiative.

To consolidate and systematise those natural areas that should be protected for the conservation of biological diversity, the International Union for Conservation of Nature  (IUCN) has developed a system providing guidance on how the private-sector should operate in each of the six defined Protected Area Management Categories.

The High Conservation Value (HCV) concept was originally devised in the context of forest certification (High Conservation Value Forests or HCVF), but it is also applicable to all kinds of ecosystems and habitats. The HCV Resource Network has developed national implementation guidance, local projects, trainings and workshops.

Species protection

The most obvious requirement in the field of species protection is the protection of threatened species of flora and fauna. The most comprehensive and authoritative global survey of plants and animals at risk is the IUCN Red List of Threatened Species. The Convention on the Conservation of Migratory Species of Wild Animals requires conservation of habitat and restrictions on the exploitation of any listed endangered migratory species. The Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) prohibits international commercial trade in all species listed as endangered and requires the strict regulation of such trade for species designated as threatened. Other global and regional conventions ban or restrict the commercial exploitation of whales, migratory birds, polar bears, sea turtles and fur seals, among others.

In addition to protecting threatened species, protecting biodiversity requires that common species are not over-harvested and that the commercial exploitation of all living resources is sustainable. The Convention on Biological Diversity, for example, requires countries to regulate or manage all biological resources "with a view to ensuring their conservation and sustainable use". This element is also discussed in other relevant paragraphs of this report.

Species diversity is also threatened by both the accidental and intentional introduction of invasive alien species. When introduced outside their natural habitats, these species have the ability to establish themselves, out-compete natives and take over their new environments. Invasive alien species are found all over the world, but are a particular problem for island ecosystems. Both the UN Convention on the Law of the Sea and the Convention on Biological Diversity require member states to prevent, eradicate or control the introduction of invasive alien species.

Genetic materials protection

The Cartagena Protocol on Biosafety sets out a framework for the safe transfer, handling and use of living genetically modified organisms that may have adverse effects on the conservation and sustainable use of biological diversity, human health and transboundary risks, and requires the advance informed consent of any country before any living modified organism is imported.

The UN Convention on Biological Diversity requires companies seeking access to genetic resources to obtain the prior informed consent of the country of origin, and to operate under mutually agreed access and benefit sharing agreements.

Companies and biodiversity

In April 2006 the Convention on Biological Diversity published the Voluntary Guidelines on Biodiversity-Inclusive Impact Assessments. In this guide is described how biodiversity criteria can be included in environmental reporting.

In Great-Britain the EarthWatch Institute and others work to involve companies in the conservation of biodiversity. They established a roadmap especially for companies based on the 10 principles of engagement, including drafting a strategic action plan on biodiversity, and integrating standards into regulate quality standards and protecting bio diversity within procurement. The Wildlife Trust has developed a biodiversity benchmark. Both initiatives focus on companies that own land or are responsible for land management.

In December 2007 the IUCN Netherlands Committee published a guide for companies, Business and Biodiversity.

The banking sector has a significant impact on biodiversity, particularly as it provides financial support to high-impact sectors such as forestry, mining, oil and gas, fisheries, water delivery and infrastructure, or sectors that are using genetic resources such as biotechnology, pharmaceuticals, agriculture or cosmetics.

A number of powerful drivers are leading to a growing relevance of biodiversity to businesses, such as pressure and activism by NGOs, increased regulations on ecosystem protection, strengthened liability regimes, costs increases of supply chains depending on ecosystem services, and shifting consumer preferences.

The following elements should be incorporated in the bank's biodiversity policy:

The bank will only invest in companies that:

• Comply with national laws and regulations regarding biodiversity protection.
• Do not undertake activities which have a negative impact upon any of the protected areas covered by the IUCN I-IV categories, UNESCO World Heritage and the Ramsar Convention;
• Minimize ecosystem impacts, and ensure that impacted ecosystems are restored to mimic their original state after commercial activities have ended;
• Ensure that activities will not have a negative impact on the community or population level of any species identified on the IUCN Red List;
• Ensure that activities will not lead to the illegal trade of any species listed as endangered under CITES;
• Do not produce or trade in any living genetically modified organism except with the approval of the importing country and as otherwise required under the Cartagena Protocol;
• Provide assessments of the cumulative biodiversity impacts upstream and downstream (including impacts on ecosystems, species and genetic resources);

Provide ongoing monitoring and reporting of impacts, at least consistent with the guidelines found in the Global Reporting Initiative for reporting on biodiversity and land use.

The bank will only invest in companies that:

• Sustainably manage all living natural resources they use in their operations, such as forests, animals and plants;
• Ensure that activities will not involve the intentional or unintentional introduction of invasive alien species;
• Meet the consent and benefit-sharing requirements found in the UN Convention on Biological Diversity regarding activities involving access to genetic resources;

The bank will:

• Identify, in consultation with NGOs and scientists, areas as "no-go zones", such as HCVAs, endangered forests, biodiversity hotspots, river watersheds, fish spawning grounds and spiritual sites, and where necessary exclude activities in those areas from investment.