Biodiversity becoming more important to businesses

Companies are becoming more aware of consumer environmental concerns: 43 percent of executives see climate change as the most important environmental issue facing their business and 59 percent have a positive outlook on issues such as biodiversity and have taken steps to reduce the environmental impact of their company's actions.

A survey released August 3 by business insight organization McKinsey & Company, published in the McKinsey quarterly revealed that corporate executives consider climate change and environmental efficiency the most important environmental issue related to their business.

Forty-three percent of respondents considered ‘climate change/ energy efficiency' the most important issue relating to the environment, sustainability and biodiversity in light of their business. Waste pollution was considered the second most important by 42 percent of executives, followed by water scarcity at 27 percent. Issues of human rights came fourth, being selected by 18 percent of respondents.

Biodiversity, which is used to measure the health of biological systems and is defined as the variation of life forms in an ecosystem, was seen as the most important issue by 9 percent of respondents, making it the tenth most important issue by percentage. However 64 percent considered it at least ‘somewhat important' to their business, and 55 percent of executives thought biodiversity should be within the top ten of most important issues on the corporate agenda.

The survey, conducted amongst 1,576 executives representative of all regions, industries and functional specialties also found that 59 percent of executives see biodiversity as more of an opportunity than a risk to their business and most of these respondents are taking some action to address biodiversity such as changing operations to reduce impact, or using a greater amount of renewable resources.

The survey indicates that executives are seeing the positive effects of environmental issues and are regarding issues such as biodiversity with greater importance than climate change was regarded in 2007, when only 27 percent saw it as a business opportunity.

This shows that executives are becoming increasingly aware of consumer concerns such as climate change. McKinsey's 2008 consumer survey revealed that consumers want products that are healthier, safer and more environmentally friendly; the 2008 survey also found that 90 percent of consumers believed companies should play a bigger role in society and were more likely to buy products from companies they regarded as responsible or as having a good reputation regarding these issues. Biodiversity is thought to occupy the same position in the consumer mindset as climate change did in 2007 and the United Nations declared 2010 'The year of biodiversity' in recognition of growing concerns.

When asked "among the following issues related to the environment, sustainability and biodiversity, which are the most important to your business?" Respondents answered as follows:

Climate change /energy efficiency 43%

Waste/pollution/recycling 42%

Water scarcity /quality/sanitation 27%

Data privacy/identity theft 26%

Human rights/labor issues 18%

Financial inclusion 15%

Ethical advertising/marketing 15%

Toxic materials 14%

Obesity/malnutrition/hunger 10%

Biodiversity 9%

HIV/AIDS other global health issues 7%

Animal rights 2%

Other 2%

No such issues are important 5%

Don't know 3%

(Note: figures don't add up to 100% as respondents could chose more than one option)