Countering biodiversity loss requires a whole-of-society approach, and the private sector has a vital role to play. All businesses depend to a greater or lesser extent on the health of nature. They also have an impact on the health of nature, both positive and negative. By understanding the complex and dynamic relationships companies have with the health of natural resources and the ecosystem services they provide, they can make more informed decisions. Many companies own and manage land, so their activities have a direct impact on biodiversity (e.g. companies operating in sectors such as agriculture, water, forestry, tourism and transport). Other companies may have an indirect impact, such as financial service providers through their lending or investment policies, and retailers through the purchase of products derived from intensive agriculture.

Companies are increasingly aware of the risks and costs associated with inaction on nature restoration and conservation. While they cannot solve this global crisis alone, they need governments to create an environment that encourages action. The current global political and administrative system neither encourages the assessment and disclosure of impacts on nature nor supports action for nature.

The assessment and disclosure of risks, impacts and dependencies must be translated into concrete actions. The development of targets based on scientific data, accompanied by scientific calculation tools and sector analyses for key sectors, is an essential lever to accompany this transition. It is also necessary to support and promote platforms and networks of companies in transition. The integration of natural accounting into companies' accounting systems would also encourage companies to promote conservation practices and would help reduce the financing gap in favour of nature (see Objective 15).

In this context, the European Sustainability Due Diligence Directive (SDD), adopted in 2024, is of great importance. This directive requires companies to monitor and prevent environmental risks, such as deforestation, pollution and unsustainable exploitation of natural resources. In addition, companies must ensure that their supply chains, which are often global, comply with these environmental standards. On the one hand, it is essential to transpose and strengthen its implementation at national level. This includes developing specific measures to ensure that companies and financial institutions assess and disclose nature-related risks, dependencies and impacts, and develop nature-friendly transition plans in line with the requirements of the SDD.

To support companies in their transition to a sustainable environment and economy, the European Commission has developed the European Taxonomy (see operational objective 4.f1). The taxonomy is a classification system that defines criteria for economic activities in line with the objectives of the European Green Deal. It creates a frame of reference for investors and companies and protects against greenwashing practices. It accelerates the financing of projects that are already sustainable and those needed for the transition. The taxonomy regulation entered into force on 12 July 2020. It lays the foundation for the EU taxonomy by establishing four general conditions that an economic activity must meet to be considered environmentally sustainable. The SFDR and CSRD are also essential and useful tools in this respect.

The development of an ambitious and effective national action plan for the private sector should encourage and help national companies and financial institutions to contribute to the implementation of the targets of the Global Biodiversity Framework (K-M GBF). This plan would identify concrete actions to be targeted at companies for each objective of the global framework. It would build on existing national legislation related to the private sector and biodiversity while identifying gaps that need to be filled. It would also propose a list of actions, laws and regulations to make the strategy operational and ensure that these measures are as precise as possible. This plan would actively involve the private sector, with a defined timetable and indicators to measure progress.