Maintaining the balance between living and nonliving things is crucial for ecosystem productivity, enabling all life to not only coexist but thrive. In Asia, where ecosystems range from coral reefs to dense forests and vast grasslands, biodiversity is also the foundation of both cultural identity and economic prosperity.
Asia's diverse ecosystems are home to nearly a third of the planet’s biodiversity hotspots with an unparalleled range of species that are crucial to the planet's health. They sustain local communities’ livelihoods and play a pivotal role in the economic growth of the region and the world. The continent's biodiversity is under unprecedented threat from human activity and climate change, driving a dramatic decline in species populations and ecosystem health. This jeopardises the region's natural heritage, economic stability, and environmental resilience.
Biodiversity loss disrupts critical carbon, nitrogen, and water cycles, worsening climate change and reducing ecosystems' ability to sequester carbon, despite the annual absorption of 5.6 gigatonnes of CO2. A World Bank study warns that Asia could lose 6.5% of its GDP if ecosystem services fail, with climate-induced disasters and natural capital degradation triggering inflation and market instability.
Human activities like urban expansion, industrial development, and deforestation are transforming Asia's landscapes, destroying habitats, and endangering species. Overfishing and climate change exacerbate these threats, with rising temperatures, altered rainfall, and extreme weather causing coral bleaching and melting Himalayan glaciers that jeopardise freshwater ecosystems.
Mangrove forests and coral reefs are among the most threatened ecosystems, with extensive mangrove loss in Southeast Asia due to aquaculture and coral reef damage in the South China Sea from dredging and land reclamation. Agricultural expansion across the continent further endangers forests, freshwater, and coastal systems, which are vital for biodiversity and the livelihoods of millions. These combined pressures put Asia's natural and human systems at critical risk.
The recent COP16 outcomes showcased the proactive efforts of several Asian countries in addressing biodiversity loss and committing to ambitious conservation targets. Nations like China and Japan reaffirmed their commitments under the Global Biodiversity Framework (GBF), emphasising their roles in implementing the "30by30" target. Southeast Asian countries highlighted regional collaboration as critical to protecting shared ecosystems like mangroves and coral reefs. Furthermore, these nations collectively called for enhanced financing mechanisms and technological support to accelerate conservation actions, reflecting Asia's unified stance on tackling biodiversity challenges at both local and global scales.
Amid escalating biodiversity loss, visionary leaders across Asia are pioneering collaborative strategies to safeguard the planet's irreplaceable natural wealth. Here is a step-by-step guide to help you integrate biodiversity priorities into your business plans.
Target 15 of the Global Biodiversity Framework (GBF) emphasises the need for financial institutions and businesses to assess and disclose their risks, dependencies and impacts on biodiversity. This trend is growing among global companies and financial institutions, including Asia.
A well-defined biodiversity strategy demonstrates how financial institutions and businesses integrate biodiversity considerations into their strategic planning and economic decision-making processes. This would include (but is not limited to) determining business risks and opportunities related to biodiversity, creating impact assessments and management, identifying the ecosystem of stakeholders, and developing biodiversity strategies that align business operations with objectives to mitigate adverse impacts on ecosystems and enhance biodiversity conservation.
Prevent impacts on biodiversity by selecting alternative project locations, designs, or practices to avoid harm in the first place.
Reduce the intensity, extent, and duration of biodiversity impacts that cannot be completely avoided through mitigation measures.
Rehabilitate degraded ecosystems to help recover biodiversity and ecosystem functions that were present before impacts.
Compensate for any residual, unavoidable biodiversity loss after the implementation of the 3 previous steps have been optimised.
This framework is designed first to avoid damage to ecosystems, minimise impacts when avoidance is not possible, and compensate for any damage by restoring ecosystems.
The mitigation hierarchy guides integrating biodiversity conservation with project planning and decision-making processes, ensuring sustainable development is considered alongside environmental conservation. This is a structured approach used in environmental management and planning to manage impacts on biodiversity.
Globally, at least $1.8 trillion is spent annually on subsidies that harm the environment, equating to approximately 2% of global GDP. Effective policy reforms are essential for reducing biodiversity loss and ensuring money is redirected towards restoring nature.
It also offers opportunities for governments to build stronger economies. This includes revising existing policies to eliminate environmentally harmful subsidies that degrade biodiversity in agriculture, fisheries, forestry, and energy, and promote policies that support sustainable practices and conservation. For example, Mongolia has been focusing on green growth strategies and policies that align with the UN Sustainable Development Goals.
Effective management of nature-related risks is essential, particularly in sectors with high environmental impacts like food, land, and energy. By following guidance from the Taskforce on Nature-related Financial Disclosures (TNFD), businesses and financial institutions can accurately map and assess these risks within business operations and supply chains. Implementing the TNFD recommendations can help companies align with biodiversity conservation goals by developing robust policies that cover their operational and financial activities while excluding high-risk operations. Further, setting up strong monitoring processes ensures ongoing evaluation and increases a company's ability to manage and mitigate biodiversity impacts effectively.
Amongst the list of TNFD adopters, which indicates countries' intent to adopt the TNFD recommendations was announced, Asian companies accounted for 42% of these global firms who announced early adoption, led by those in Japan, Taiwan, Hong Kong, and Singapore.
Nature-based solutions such as restoring mangroves, protecting against coastal erosion, improving water quality, and rehabilitating peatlands are crucial for carbon storage. They also offer co-benefits of biodiversity improvement and climate mitigation. These solutions are recognised globally for their effectiveness in providing environmental, economic, and social benefits.
South Pole recently launched Alto de Ventanas, one of Colombia's first habitat banks focused exclusively on restoration. Although located outside Asia, this project showcases the impact nature-based solutions can have on both ecosystems and local communities. The project enhances habitats for unique and threatened species across 168 hectares through native tree planting and assisted natural regeneration. By reducing soil erosion, improving infiltration, and regulating water flow, enhanced water management serves to support the propagation and planting of native species. Beyond environmental benefits, these efforts stimulate the local economy by creating employment opportunities. Companies and individuals can contribute to these impactful efforts by purchasing biodiversity credits, directly supporting these investments in nature.
