Food, beverage and tobacco companies & biodiversity
Companies in the food, beverage and tobacco (FBT) sectors are dependent on biodiversity and ecosystem services to provide them with raw materials. Access to raw materials is increasingly under threat from loss of biodiversity and associated decline in ecosystem services, such as fresh water. In the medium to long term this will result in lower production yields, leading to expansion onto new territories, including areas of high biodiversity.
By taking steps to ensure that natural resources are managed and harvested sustainably and that ecosystem services are being enhanced, companies can strengthen their competitive position and access new markets. Failure to manage these issues will increasingly affect the costs of, or access to, capital.
Communication between FBT companies and the finance sector is weak on this issue. Many companies feel that strong practices remain unrewarded and risk is not properly identified. The Natural Value Initiative (NVI) fills this gap with a tailored risk and opportunity evaluation toolkit for the financial community to use in understanding companies’ dependence and impact on biodiversity and ecosystem services. This allows those taking action to differentiate their companies and their market offer to explain their strategy effectively.