The UN study The Economics of Ecosystems and Biodiversity (TEEB) estimates the annual global economic impact of biodiversity loss at between $2-4.5 trillion, which is to be felt in product pricing, availability of products and financing, impact on climate and supply chain disruptions for consumers, business and government.
Despite this, a PricewaterhouseCoopers research completed as part of the study, found that less than one in five companies see biodiversity as an important business issue. Only two out of the world’s largest 100 companies manage it as a strategic risk.
“In this context, Romania could benefit from this organic food trend and could develop a strong bio-agricultural sector, making use of its large agricultural and forest area, and capitalize on the current low use of fertilizers and pesticides in the Romanian agriculture, which can thus be turned from a competitive disadvantage to an advantage”, states Alexandru Lupea, Partner, Alexandru Lupea, Partner, Assurance Services, Leader of the Energy, Utilities and Mining Group with PricewaterhouseCoopers Romania.
Research by PricewaterhouseCoopers completed as part of the study, found that of the world’s largest 100 companies, only 18 companies made any mention of biodiversity or ecosystems in their annual report, with only two seeing biodiversity loss as a strategic business risk. In high – dependency or impact sectors including food producers and primary industrial sectors, nine identified it as a sustainability issue.
“We’re effectively in an environmental recession for which few businesses appear to have a real accounts or a recovery plan for. Identifying and managing the risks that arise from our impact on biodiversity is not about greenwash, or CSR, it’s about the economics of supply and demand, and in a shorter time frame than climate change”, added Lupea.