Inside COP15: The race toprotect the natural world
and its biodiversity
Primer on UNCBD COP15
NOVEMBER, 2022

0

Executive Summary
What is the UN CBD and why it matters for business
The imperative to reverse nature loss by 2030
The UN CBD COP15 agenda
Implications for business leaders

BCG x Quantis expertise on Biodiversity

1

Executive Summary
1

The Convention on Biological Diversity is one of the 3 Rio Conventions (1992). It focuses on Biodiversity with 3 main pillars: the conservation of Biological diversity, thesustainable use of biological diversity components and the fair sharing of resulting benefits.

2

Biodiversity (the term did not exist in 1992, hence the use of "biological diversity") encompasses all forms of life on Earth and is experiencing an alarming loss resulting in
the 6th mass extinction of species, which represents one of the 9 "planetary boundaries" crossed by humanity. There is now a growing scientific, political & business consensus
that the conservation of species & ecosystems is not sufficient to protect biodiversity and that the CBD should address key drivers of nature loss.

Biodiversity
loss, causes
3
andconsequences

Zoom on
COP15

Implications
for Businessleaders

Unlike previous extinction events caused by natural phenomena, the scientific community, through the IPBES (equivalent of IPCC for biodiversity), unquestionably
demonstrates that the 6th mass extinction is driven by human activity through the changes in land and sea use; direct exploitation of organisms; climate change;pollution; and invasion of alien species. The global rate of species extinction is already at least 10-100x higher than it has averaged over the past 10 million years.

4

Despite critical risks for human health and economy, the topic receives limited attention when compared to the climate agenda. Yet, climate mitigation andadaptation objectives cannot be met without Nature Based Solutions (NBS). In addition, climate change will become the major driver of biodiversity loss if not addressed.
Synergies between climate and biodiversity generate co-benefits and are indispensable to make our societies & economies resilient to climate change.

5

COP15 is the 15th UNCBD COP, under the Presidency of China. Its goal is to provide a Global Biodiversity Framework (GBF) for action on biodiversity. It gathers
the 196 countries that signed up in 1992 at the Earth Summit, with the notable exception of the US.

6

It was originally positioned by China as a major world summit showcasing Chinese environmental leadership, with the ambition to reach the "Paris Agreement of
Nature". After being postponed due to Covid & relocated, it will take place on December 2022 in Montreal.

7

The previous GBF was adopted in Aichi in 2010, setting 20 targets to be achieved in 2020, however none of the targets were met. The objective of COP15 is to overcome thisfailure and set goals to guide global actions through 2050 to protect and restore nature by creating a new GBF including a flagship target, the "30% by 2030" target, and a setof 21 other targets on mainstreaming, sustainable use and benefit-sharing of the components of biodiversity, and financing, etc.

8

The ability to reach an agreement, and the level of ambition of that agreement, depend on the ability to reach a consensus between different regional coalitions, in thecontext of a global divide between North and South. More than 100 countries now support some of the objectives of the HAC (High Ambition Coalition for Nature and People,
which pushes for strong GBF).

9Regardless of the outcome of COP15, regional regulations, consumer expectations and smart risk management create a strong case to act now. Businesses should start
adopting integrated strategies to contribute to a "nature positive" world. There is an ecosystem of organizations and coalitions that are structuring this space andshaping tomorrow's regulation, notably SBTN and TNFD, which are replicating the Climate initiatives SBTi and TCFD, and seeking to have a more holistic perspective.

10

There is an increasing realization that biodiversity is critical for businesses, just like climate, as 50% of global GDP depends directly on Nature's ecosystem services.
However, Biodiversity is a complex issue requiring a full materiality assessment and deep transformation of the businesses. Leaders show that it is possible to measure impacts
2and dependencies and act on them. BCG & Quantis are at the heart of the ecosystem and are committed to support clients in their journey to contribute to a nature positive world.

Executive Summary
What is the UN CBD and why it matters for business

Inside COP15:
AgendaThe imperative to reverse nature loss by 2030
The UN CBD COP15 agenda
Implications for business leaders

BCG x Quantis expertise on Biodiversity

3

UN CBD is one of the 3 Conventions seeking to form an integrated andworldwide governance framework for environmental challenges-

The 3 Rio Conventions were adopted at the 1992 Earth Summit-

Each instrument represents a way of contributing to the sustainable development goals of Agenda 21-

The 3 conventions are intrinsically linked, and address interdependent issues
Objectives: stabilize GHG
concentrations at a levelthat would prevent
dangerous human induced
interference with theclimate system

Objectives: halt and revert
biodiversity loss throughthe sustainable use of
biological resources andthe equitable sharing of its
benefits

Focus of thisdocument

Objectives: combat
desertification and mitigate
the effects of drought incountries experiencing
serious drought particularly
in Africa

United Nations Framework
Convention on Climate Change

Convention on
Biological Diversity

United Nations Convention to
Combat Desertification

Key Milestones:• COP3 Kyoto Protocol, COP15
Copenhagen Accord, COP21
Paris Agreement, COP26
Glasgow Pact
• COP27 to take place in Nov.22
in Egypt
Scientific body: IPCC

Key Milestones:• COP10 Aichi Biodiversity
Targets• COP15 to take place in Dec.22
in Montréal, Canada(ratification of Kunming
Declaration in Oct.21)
Scientific body: IPBESKey Milestones:• COP8 10-yr Strat. Plan
• Scientific conferences in 2010,2013 and 2015
• COP14 New Delhi Declaration• COP15 took place in Abidjan in
May.22
Scientific body: IPCC

Source: UNFCCC, UNCCD, CBD, BCG

4

… with CBD focusing on 3 main pillars to address Biodiversity loss

1

2

3

The conservation of biologicaldiversity

The sustainable use of thecomponents of biologicaldiversity

The fair and equitable
sharing of the benefits arisingout of the utilization ofgenetic resources5

Why is biodiversity important for business resilience?

Aiming forleadership on
climate and natureManaging risks inthe value chain

Capturing newvalue creation
opportunities

Capturing firstmover advantage

Anticipating
regulation andsocietal pressures

Ensuring your company
contributes to theimperative to reverse
nature loss, in order toachieve climate goals
and protect biodiversity

50% of global GDP
directly depends on
ecosystem services1,
some key sectors evenmore heavily thanothers (e.g., agriculture,utilities, food &beverage, construction)

Investing in sustainablesupply chains has beenfound to decrease
operational costs of up to
16% and increase revenue
by up to 20%2

Being among the first to
start this journey with thepotential to lead yourindustry's nature-positivetransition, while
contributing toregenerating ecosystems
and preserving resources

COP15 political and social
momentum around theworld (e.g., New EU
Biodiversity Strategy for
2030, increasing pressure
from indigenous peoples andlocal communities, strong
demand for financial flows
to developing countries, etc.)

1. WEF 2. CBD, WEF
Source: WEF, CBD, BCG analysis

6

1

2

Why is COP15 importantto follow?
3

4

An ambition to reach the equivalent of the Paris
agreement, a new Global Biodiversity Framework that will
shape policies across the world for the next decade
Clear commitments expected from governments onnational-level biodiversity strategies and protectedareas, with clear business implications such as increased
regulatory pressure on land use change

A set of specific and concrete targets on the main
drivers of biodiversity loss (e.g., plastic pollution) which
could accelerate the regulatory momentum and foster
international standardization
A goal to align financial flows with a trajectory toreverse nature loss, which could shape regulation in
finance in the coming decade7

Executive Summary
What is the UN CBD and why it matters for business
The imperative to reverse nature loss by 2030
The UN CBD COP15 agenda
Implications for business leaders

BCG x Quantis expertise on Biodiversity

8

The 6th mass extinctionof wildlife on Earth isaccelerating

1.Including elements and compounds serving as food or respiration source, plants, consumers (fish,shellfish, frogs, etc.), and decomposers (worms, insects, etc.)
Source: WWF Living Planet Report (2022)

Species biodiversity is declining at an alarming rate,
resulting in the freefall of wildlife across the globe:-69%

Average decrease in population sizes of mammals, birds,
amphibians, reptiles and fish between 1970 and 2018

~1M

Animal and plant species now threatened with extinction,
many within decades, more than ever before in humanhistory-83%

Global decline in monitored freshwater populations1since 1970, the largest decline of any species group9

Biodiversity encompasses all forms of life on Earth, and is increasingly
threatened by human activities

What is biodiversity?

What is causing its loss?

Biodiversity, or "Biological diversity", is the variety of life on Earth, it
includes all living things and the ways they interact with each otherand their environment (i.e. Genetic diversity, Species diversity andEcosystem diversity)

Biodiversity, has been declining at an alarming rate in recent years,
mainly due to human activities, such as land use changes, pollution
and climate change

Land/sea1 use change

3 types of ecosystems(Terrestrial, Marine,
Freshwater) make up our
natural assets andsupport biodiversity, inturn creating ecosystemservices

Temperate
forests
Tropicalforests

Urban Grassland

Deserts

Insects

Plants

Croplands

Direct exploitation

Molluscs

Ice/
rock

Birds

Mammals

Alleles & phenotypic
traits & molecules

Corals

Lakes

Fungi

Amphibians

Inlandwetlands
1.Including freshwater use change
Source: IPBESClimate change

Coasts

ReptilesRiversMangrovesProtists
Fish

Coral
reefs

Pollution
Invasive alien species

Open
ocean

10

Biodiversity loss is classified as a risk withhigh probability and high impact…
3rd biggest risk in terms of impact and4th in terms of likelihood

WEF Global Risks LandscapeImpact4,0Information
infrastructure
breakdown

Weapons ofmass destruction
Infectious diseases

Extremeweather
eventsNaturaldisasters

Cyber-attacks

Global governance Failure

3,5
3.47
average
Unemployment
Terroristattacks
3,0

Water crises

Interstate
conflict

Food crises

Climate action
failureBiodiversity loss

Data fraud
or theft

Involuntary migration

Adverse technological
Energy price shockadvances

Illicit trade

2,3

2,5

2,7

2,9

3,0

3,1

3,3

• Biodiversity is crucial for securing
the supply of goods & services, andenabling the inhabitability of the
Earth• Strong interlinkage of biodiversity
loss to other environmental risks,such as climate change andinfectious diseases

Unmanageableinflation
Deflation

2,5…and has risen in the World
Economic Forum Global Risks
Landscape ranking compared toother major global risks in the past
years

3,5

3,7

3,9

4,0

4,1

4,2

4,3

Likelihood

Economic

Environmental

Geopolitical

Source: World Economic Forum Global Risk Report 2020 (edited); BCG analysis

SocietalTechnological

11

Failing to stop and reverse biodiversity
loss may trigger global and irreversible
consequences…

Biodiversity loss poses a systemic risk threatening ecosystem
collapse with unpredictable consequences questioning theviability of the planet for our ways of life as humans
The mutual reinforcement of biodiversity loss and climatechange threatens to accelerate global warming beyond control

Costs of inaction amount to at least $5-25 trillion of annually
lost ecosystem services, essential for society

Source: BCG analysis

12... as our economy and society highly depend on natural assets and theecosystem services that they provide, especially 4 key sectors>50% of global GDP directly depends on ecosystemservices…

… But not all sectors are equally dependent ; thosehighly dependent generate ~15% of global GDP
Split of global GDP by sector and nature dependence (in % of global GDP)
100%
26%
19%

~15%
of global GDP
highly dependent
on nature

6%

3%

5%

1%

3%

23%

4%

3%

Key sectors Agriculture, Food,
representing the forestry & bevefoundations of fishing rages &tobaccohuman societies
Highdependence
Note: Analysis based on Oxford Economics split of global GDP by sector in year 2020
Source: Oxford economics, WEF, World bank, BCG analysis

2%

5%

Utilities Constru- Distrib- Chemicals Extra- Consumer Textiles Electrical Gvt & Financial
ction
ution, & material ction
goods& high- community&
transport industry
techservices business& comm.
services

High dependence

Moderate dependence

Low dependence

Total
GDP

Low
dependence

13Despite critical risks, the topic receives limited attention when compared tothe climate agenda

UN conference on Climate change has much more
visibility than Biodiversity ones

Biodiversity requires proportionally more funding thanclimate change, even if the overall funding need is lower

The first IPBES report came out in 2019 vs.1990 for IPCC; the limited visibility on Biodiversity
is also linked to the ~30-year gap in scientific state of the art reports availability

Estimated annual spending needs to tackle Biodiversity and Climate change,
in $B~4000 attendees+280%~50 countries
represented on site

2,400

+576%

+40.000 attendees

967~200 countries
represented on site

632

(Including 120 countries
leaders)143
2019/2020
Source: Paulson Institute; OECD Report; Worldbank Report; UN website

2020-2030 Annual needs
Biodiversity

Climate change

14

Most biodiversity actions have mainly positive effects on climate and canbe considered as co-benefits, the opposite is not always true

Climate actions do not always benefit to Biodiversity, despite
it being a key tool in the effort to combat climate change

nature-based Solutions are among most effective
climate actions

Numerous climate mitigation actions, particularly in the energy sector, raise concerns andrisks for biodiversity preservation actions, which need to be anticipated and well-managed"Restoring carbon- and species-rich ecosystems (…) is among thecheapest and quickest nature-based climate mitigation
measures to implement"1"Increasing sustainable agricultural and forestry practices (…) is
jointly estimated by the report to offer annual climate change
mitigation potential of 3-6 gigatons of carbon dioxide
equivalent"1

NbS = nature-based Solutions
IPBES Press Release issued in June 2021
Source: IPCC & IPBES report on Biodiversity and Climate Change, 2021

15

Executive Summary
What is the UN CBD and why it matters for business
The imperative to reverse nature loss by 2030
The UN CBD COP15 agenda
Implications for business leaders

BCG x Quantis expertise on Biodiversity

16

The challenge: the world did not meet any of the targets from the previous
Global Biodiversity Framework adopted in Aichi in 2010•

The 10th meeting of the Conference of the Parties to the CBD, held in 2010 in Nagoya, Japan, adopted a revised Strategic Plan for
Biodiversity 2011-2020, including 20 Aichi Biodiversity Targets, related to 5 Strategic Goals•

The Aichi Biodiversity Targets were established in an effort to protect and conserve the biodiversity that underpins global foodsecurity, health and clean water. However, to this date, none of the targets were met (See details on next slide)

Mainstreaming

Reduce pressures

Safeguarding
Biodiversity

Address theunderlying causes of
biodiversity loss bymainstreaming
biodiversity acrossgovernment andsociety

Reduce the directpressures on
biodiversity andpromote sustainableuse

Improve the status ofbiodiversity bysafeguarding
ecosystems, species
and genetic diversity

Enhance benefits
Enhance the benefits
to all from biodiversity
and ecosystemservices

Implementation
through action
Enhance
implementation
through participatory
planning, knowledge
management andcapacity building

17
Source: CBD, WWF, BCG

The race to protect nature: how will the 3 CBD's pillars be addressed during
COP15 in Montréal?

Key discussion
pointsMain theme ofnegotiations

Global Biodiversity Framework (GBF)

1

2

3

The conservation of
biodiversity

The sustainable use andbenefit-sharing of thecomponents of biodiversity

The implementation andmainstreaming of Biodiversity
targets and measures

Have all CBD signatories commit to the"30 by 30" goal

Validate set of targets on sectors, andsustainable consumption after failing toachieve Aichi Biodiversity targets
and discuss the fair and equitable sharing of
the benefits arising out of the utilization ofgenetic resources

Ensure the integration of biodiversity into
policies, regulations and development
processes and increase the level offinancial resources made available fromall sources• Key target to protect 30% of lands and seasby 2030• Discuss level of quality and financing forprotected areas (vs. risks of "paper parks")• Esp. key targets on Agriculture, aquaculture andforestry - first draft of the framework published in
Sept. 2021 with no disclosed update since then• Potential update to Nagoya's protocol on DSI1
on genetic resources - Can be a blocking point for
genetically-rich developing countries who aredependent on this source of financing• Measures for business and financial institutions
to assess and disclose impacts on nature andact to reduce impacts• Increase of external funding for developing
countries to help them implement theirbiodiversity strategies

1.Digital Sequence Information
Source: CBD

18

COP15 will take place in Montreal, Canada from 5-19 December with bothgovernment and business-related entities
The COP15 UN Biodiversity Conference was supposed to take place in 2020, but began as virtual, online talks in October last year.
Negotiations were meant to reconvene in Kunming, China in April but that was repeatedly postponed due to Covid and geopolitical reasons.
Talks will now conclude in Montreal between December 5-19, 2022
The aim of the summit, which China will still chair despite the venue change, is to approve the final version of the draft UN
Convention on Biological Diversity (CBD)
WednesdayThursdayFridaySaturday

SundayMondayTuesday

WednesdayThursdayFridaySaturday07-12-22

08-12-22

09-12-22

10-12-22

11-12-22

12-12-22

13-12-22

14-12-22

15-12-22

16-12-22

17-12-22

Nature and Culture Summit

Finance Day

Cities Summit

ForumsScience Forum
Business Forum

Action Zone

Business Hub

Action Days

MinisterialHigh Level Segment

PavilionsSide eventsSide events

CEPA Pavilion

Rio Convention Pavilion
China Pavilion

NP Pavilion

LaunchDiversity ofvoices30x30,
restoration,
sustainable
management

Reimagining
conservation& humanrightsPartnerships& solidarity

Please click on "Side events" to access the full list of side events confirmed by the CBD.

Innovation &tech

Role ofbusiness

Finance

ClimatechangeClose

19

The ability to reach an agreement, and the level of ambition, depend on theability to reach a consensus between different regional coalitions
Like-Minded group of
Developing Countries on
biodiversity and development(LMDC)1

Positioning
towards
CBD

Local
Biodiversity
strategies

Party to the UN CBD since
1992, active signatory of theconvention, contributing to theimplem. of biodiv.-related
international agreements

Not signatory to the
CBD, althoughparticipating to the nego.
and the drafting of theconvention

Party to the UN CBD since
1993, initially supposed tohost COP15, still chairing
the event despite
postponement & relocation

Party to the UN CBD since
1994. However, holding up
progress in climate talks due toreliance on resources
exploitation for its development

Mostly UN member
countries parties to the CBD,
however lack of funding to
implement and scalebiodiversity measures• European Biodiversity strategy • Appointment of special• China Biodiv. Conservation • One of the 1st South• Series of IGOs and institutes
for 2030: proposal for EU’s
envoy for Biodiversity andAction Plan (1994), China
American countries to fully
addressing biodiversity (e.g.,contribution to COP15 nego.
Water Resources in
Program for Conserv. & Use adopt a National Biodiv.
Central African Forest• European Green Deal: -55%
Sept.22of Bio. Resources (2006-20)
Strategy
Commission (COMIFAC) GHG emissions by 2030 + Farm • Biodiversity Policy• Commitment to reach an • 2020 Biodiv. Targets adopted
Working Group on
to Fork strategy (e.g., 50%
established in 2014:agreement during COP15
in Sept.13, aligned with Aichi
Biodiversity)
pesticides & fertilizers, plant 3M advocating valuation and• China still facing pressures • Habitat loss most significant • Habitat loss and spread oftrees, 25% of agri. land to besafeguarding of biodiversity
and challenges due to fastcause of biodiv. loss (land use
invasive species mostused for organic farming)• Commitment to 30 by 30
urbanization & indus.
change and direct expl.)
significant cause of biodiv. loss
"Europe will also play its role in
the global green transition.
Ahead of COP15 in December,
we are confirming an
unprecedented investment insupport to our partners""The order commits to the goalof conserving at least 30% of
our lands and oceans by 2030
and launches a process forstakeholder engagement (...) to
identify strategies that will resultin broad participation""Finance and a strong
implementation mechanism
should be the biggest legacy ofChina’s CBD presidency. Our
planet needs not just anotherset of targets on paper, but theiractual fulfilment"

President of the EC, Ursula von der Leyen,
UN General Assembly, Sept. 22

Executive order signed by President Joe
Biden, Jan. 21

President of China, Xi Jinping, during
Kunming talks , Oct.21

1. The group includes the African Group, and Argentina, Bolivia, Brazil, Cuba, Dominican Republic, Ecuador, Guatemala, India, Pakistan and Venezuela
Source: CBD, European Parliament, National Geographic, World Bank, BCG analysis"We preserve more [rainforest]
than anyone. No country in theworld has the moral right totalk about the Amazon. You
destroyed your own
ecosystems."
President of Brazil, Jair Bolsonaro, 2019
Pending 2022
election"Developing countries areasking for the possibility of
tabling another fundmechanism that will be moreaccessible, simple and enhance
our capabilities to conserve our
biodiversity"
Ministry of Environment and Sustainable
Development, Democratic Republic of theCongo (DRC), Daniel Mukubi, 2022 20

Executive Summary
What is the UN CBD and why it matters for business
The imperative to reverse nature loss by 2030
The UN CBD COP15 agenda
Implications for business leaders

BCG x Quantis expertise on Biodiversity

21

Forward-looking companies know that
Biodiversity is the "next Climate"

Biodiversity: a complex issue
with many approaches• There are several approaches to biodiversity (5 human pressures, 9 planet boundaries, dozens of metrics andpossible targets, etc.) and companies need a robust materiality assessment and a good understanding of the
topic to pick the right approach• There is a call for upstream (e.g., agricultural) and collective (e.g., regulatory) actions to drive impact at scale

Increasing realization thatbiodiversity is a critical topic
for businesses• The mapping of economic value chain's major pressures reveals impact hotspots - while the Climate lensputs the focus on Energy, the broader nature lens puts the focus on the Agricultural system, also including
the Food & Beverage, Fashion, Pharma, Personal Care and Energy sectors

Metrics and coalitions
emerging in the field• There is an ecosystem of organizations and coalitions that are structuring this space and shaping
tomorrow's regulation, even though it is still fragmented and complex to navigate• The COP15 will contribute to shape and structure this ecosystem and will be a key opportunity forbusinesses to contribute to the nature agenda

Source: IBPES, BCG

22

Planetary Boundaries extend the concept of SBTs1 beyond Climate

Biodiversity loss poses a systemic riskthreatening ecosystem collapse andunpredictable,
related consequences for our economy
at large

The mutual reinforcement of
biodiversity loss and climate change
threatens to accelerate global warming
beyond control

1. The Science Based Targets initiative was established in 2015 to help companies to set emission reduction targets in line w ith climate science and Paris Agreement goals. This initiative is a collaboration between the CDP (was Carbon Disclosure Project), the United
Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF)
Source: Stockholm Resilience Institute
NB: "Safe and Just" Planetary Boundaries are being developed by the Earth Commission as part of the Global Commons Alliance23

Estimated share in pressures across value chain

While the Climate
lens puts the focus on
Energy, the broader
nature lens puts thefocus on the
Agricultural system

Note: Value chains defined by consumer end products;
Source: BCG analysis

Agricultural system including the Food
& Beverage, Fashion, Pharma, Personal
Care and Energy sectors

Food and beverages
including packaging>50%

Infrastructure & mobility
including housing, public
infrastructure, and vehicles~25%

Energy including fuels,
power, and othercommodities~10%

Fashion and related FMCG
including luxury goods<10%

All other, including pharma,cosmetics, and consumer
electronics

5-10%
24

Nature x Business: a very fragmented landscape providing tools andguidance to tackle the deteriorating 'State of Nature'
Goals

Frameworks andStandards

Set ESGgoals

Develop frameworks andguidelines
Targets
Guidelines

Multi-Stakeholder
Alliances
Connect stakeholders to promote ESG
topicsData Collectors, processors and ratings
Collect company datafrom surveys, from publicly available sources, aggregate data and produce scores

Accounting
andReporting

Regulators
Lead efforts to promote ESG in legislation

The G7 backed
the TNFD aheadof its launch

Individual
governments

25
Source: BCG analysis

COP15 is a key opportunity for businesses to contribute to the nature agenda
and a resilient and sustainable future

Engage to develop longterm sustainabilityfocused strategy
incorporating naturepositive objectives

Contribute to creating astable operating
environment for businessand nature

Exposure and engagement
opportunities with next
generation of leadingbusinesses supporting
nature restoration

Develop understandingof new and upcoming
regulation and adapt
quickly to emerging
constraints

26

Executive Summary
What is the UN CBD and why it matters for business
The imperative to reverse nature loss by 2030
The UN CBD COP15 agenda
Implications for business leaders

BCG x Quantis expertise on Biodiversity27Nature is complex and there is no single metric toapproach it

BCG and
Quantis canhelp younavigate thecomplexity ofthe topic andthe ecosystem

There is an ecosystem of organizations and coalitions
that are shaping this space and shaping tomorrow's
regulation
This ecosystem is highly fragmented, and hard tonavigate, with competing / overlapping organizations
and frameworks

We have the expertise to navigate this ecosystem, andhelp companies prioritize their efforts
BCG and Quantis are actively engaged with the key
players in this space. Our approach covers TNFD and
SBTN, the two leading frameworks
28

BCG and Quantis have established a cutting edge andextensive Sustainability experience• We know your business agenda, and your industry's
sustainability constraints–

We are long-term strategic partners to our clients , and wecontinuously support them in harnessing climate innovation toaccelerate the development of corporate action across all sectors.

• We are leaders in change management andtransformation for sustainability–

We have extensive industry knowledge and transformation
capabilities, and we help our clients turn their challenges into
action by seizing new opportunities to build competitive
advantage.

• We have a dedicated "Climate & Sustainability"
practice to support key players of the ecosystem––

We have executed hundreds of nature projects over the past
5 years with leading companies and organizations across allindustries on sustainability and nature.
We are the exclusive consulting partner for COP27 and also havepartnerships with leading organizations and nature coalitions
including with the WEF, SBTi, CDP, SBTN, and WWF.

• We have a deep environmental expertise in science-

based Nature impacts and strategies–

We are SBTN partners and are working with 10+ companies of thecorporate engagement programs.

–

We have helped the SBTN Technical Team and worked on the steps
1, 2 guidance, freshwater hubs pilots, land hub pilots.

• We have been contributing to bring biodiversity to thebusiness agenda as a key topic for several years–

We have a proven track record of implementing a science-based,
systems-level approach to accelerate sustainable business
transformation to operate within planetary boundaries.

–

We drive innovative solutions to critical and diverse environmental
challenges, from climate change to biodiversity loss

• We work with leading organizations to implement

strategies that contribute to a nature positive world–

We have been working on more than 5000 projects related toenvironment over the past 15 years.
29For more information, please reach out to our Nature & Biodiversity experts

Dimitri Caudrelier
CEO Quantis

Guillaume Charlin
Managing Director and Senior Partner
Paris

Pierre Collet
Global Climate Expertise lead

Lorenzo Fantini
Managing Director and Partner
Milan

Tatiana Fedotova
Global Water Expertise lead

Michel Frédeau
Managing Director and Senior Partner
Paris

Fabien Hassan
Principal
Paris

Torsten Kurt
Managing Director and Senior Partner
BerlinAmanda Martin
Global Client Transformation
Lead

Edith Martin
Global Biodiversity + Nature Expertise
Lead

Jesper Nielsen
Managing Director and Senior Partner
LondonLaura Peano
Global Plastics & Packaging
Expertise lead

Tetyana Pecherska
Global Land & Ag. Expertiselead

Adrien Portafaix
Partner and Associate Director
Paris

Shalini Unnikrishnan
Managing Director and Partner
Chicago30

Appendix – details on nature impact
assessment and targets
31

Unlike previous extinction events caused by natural phenomena, the 6th
mass extinction is driven by human pressures
And its rate is already at least 10-100x higher than it has averaged over the past 10 million years2

Socio-economic
drivers• Changing consumption
patterns including
lifestyleharmonization &rising resource use• Innovation in
production
patterns• International trade &globalization• Demographic trends
incl. urbanization• Governancedevelopments

Agriculture is responsible for 80% of global deforestation andaccounts for 70% of the planet’s freshwater use1

66% of the ocean area have been significantly altered by excessive
exploitation2

2°C global temperature rise will result in a 99% loss of coral reefs
globally (almost complete eradication)3x10 Marine plastic pollution increase since 1980, affecting at least
267 species2
Invasive alien species have increased by 40% since 1980, associatedwith expanding trade and human population dynamics and trends2

1. WWF 2.IPBES 3. IPCC
Source: IPBES Global Assessment Report on Biodiversity and Ecosystem Services 2019, IPCC (2018), WWF Living Planet Report (2020)

32

32

Planetary boundaries have high impacts on the different biomes composing
our ecosystems once they are crossed
9 planetary boundaries and their impact on earth ecosystem

Biomes impacted

Land-system change: Human modification of land and oceans ecosystems impacting not only the absolute amount of available space, but also its functions, quality,
and spatial distribution (e.g., draining of wetlands to build houses)
Freshwater use: Industry freshwater consumption and environmental flow requirements to maintain the level of water needed for living species. It is essential topoint out that regional variations occur regarding water availability and the freshwater cycle
Biosphere integrity: Direct human impact such as hunting, fishing and picking, causing extinction of species due to overconsumption (E/MSY) and ecosystem disturbance due tothe introduction/disappearance of new species and the occurrence of noise, visual or physical disturbances (BII) (e.g., car sound, streetlights or dams)
Climate change: The production of greenhouse gases (measure in CO2 equivalent) causing global warming increasing the frequency of natural disasters such as
hurricanes, floods, …
Atmospheric aerosol loading: Aerosol play a critically important role in the hydrological cycle affecting cloud formation and atmospheric circulation, such as the
monsoon systems in tropical regions. They also have a direct effect on climate, by changing how much solar radiation is reflected or absorbed in the atmosphere
Stratospheric ozone depletion: The emission of gases such as chlorine, bromine or fluorine reacts with and reduces the ozone layer, leading to a reduction in earth's
UV protection, causing a higher incidence of skin cancer in humans as well as damage to terrestrial and marine biological systems
Biogeochemical flows: The overconsumption of nitrogen and phosphorus for agricultural production leads to a massive influx of these nutrients into the oceans andfreshwaters, which causes eutrophication of the water by the proliferation of algae, depletion of oxygen, …

Novel entities: Chemical pollution and release of heavy metals and physical entities .g., plastics have irreversible effects on living organisms and can cause reduced
fertility and permanent genetic damage
Ocean acidification: The nitrogen, carbon and sulfur compounds emitted in the atmosphere are absorbed by the oceans by chemical reaction, causing a drop inwater's pH and a depletion in carbonate ion. This induces a decrease in the development of the first links of the food chain (corals, plankton)

BiomesLegend

Land

Ocean

Freshwater

Atmosphere

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The UN recognizes the failure of Aichi
Target notachieved

Target partiallyachieved

Target achieved

Level ofachievement

Level ofachievement

By 2020, at the latest, people are aware of the values of biodiversity and the steps they
can take to conserve and use it sustainably

By 2020, at least 17% of terrestrial and inland water, and 10% of coastal and marine areas,
especially areas of particular importance for biodiversity and ecosystem services, are conserved
through effectively and equitably managed (…)

By 2020, at the latest, biodiversity values have been integrated into national andlocal development and poverty reduction strategies and planning processes and arebeing incorporated into national accounting, as appropriate, and reporting systems

By 2020 the extinction of known threatened species has been prevented and their conservation
status, particularly of those most in decline, has been improved and sustained

By 2020, at the latest, incentives, including subsidies, harmful to biodiversity are eliminated,phased out or reformed in order to minimize or avoid negative impacts, and positive incentives
for the conservation and sustainable use of biodiversity are developed and applied (…)

By 2020, the genetic diversity of cultivated plants and farmed and domesticated animals and ofwild relatives, including other socio-economically as well as culturally valuable species, ismaintained (…)

By 2020, at the latest, Governments, business and stakeholders at all levels have taken steps
to achieve or have implemented plans for sustainable production and consumption and have
kept the impacts of use of natural resources well within safe ecological limits

By 2020, ecosystems that provide essential services, including services related to water, andcontribute to health, livelihoods and well-being, are restored and safeguarded, taking into
account the needs of women, indigenous and local communities, and the poor and vulnerable

By 2020, the rate of loss of all natural habitats, including forests, is at least halved and werefeasible brought close to zero, and degradation and fragmentation is significantly reduced

By 2020, ecosystem resilience and the contribution of biodiversity to carbon stocks has beenenhanced, through conservation and restoration, including restoration of at least 15% ofdegraded ecosystems (…)

By 2020 all fish and invertebrate stocks and aquatic plants are managed and harvested
sustainably, legally and applying ecosystem-based approaches, so that overfishing is
avoided, recovery plans and measures are in place for all depleted species (…)

By 2015, the Nagoya Protocol on Access to Genetic Resources and the Fair and Equitable
Sharing of Benefits Arising from their Utilization is in force and operational, consistent withnational legislation

By 2020 areas under agriculture, aquaculture and forestry are managed sustainably,
ensuring conservation of biodiversity

By 2015 each Party has developed, adopted as a policy instrument, and has commenced
implementing an effective, participatory and updated national biodiversity strategy and actionplan

By 2020, pollution, including from excess nutrients, has been brought to levels that are
not detrimental to ecosystem function and biodiversity

By 2020, the traditional knowledge, innovations and practices of indigenous and local
communities relevant for the conservation and sustainable use of biodiversity, and theircustomary use of biological resources, are respected

By 2020, invasive alien species and pathways are identified and prioritized, priority species
are controlled or eradicated, and measures are in place to manage pathways to prevent
their introduction and establishment

By 2020, knowledge, the science base and technologies relating to biodiversity, its values,
functioning, status and trends, and the consequences of its loss, are improved, widely shared
and transferred, and applied

By 2015, the multiple anthropogenic pressures on coral reefs, and other vulnerable ecosystems
impacted by climate change or ocean acidification are minimized, so as to maintain theirintegrity and functioning

By 2020, at the latest, the mobilization of financial resources for effectively implementing theStrategic Plan for Biodiversity 2011-2020 from all sources, (…), should increase substantiallyfrom the current levels. This target will be subject to changes (…)

Source: UN Global Biodiversity Outlook 5: Summary for Policymakers

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Working groups to propose 22 targets focused on reducing threats,
implementation & Mainstreaming and Sustainable use & Benefit-sharing
What are the key elements for the post-2020 framework for business ?
Target 1: Spatial planning

Target 14: Mainstreaming

Target 2: Restoration

Ensure the integration of biodiversity into policies, regulations anddevelopment processes

Target 3: Conservation

Target 15: Business and financeProtect 30% of lands and seas

Target 5: Wildlife trade

Take legal, administrative or policy measures for business andfinancial institutions to assess and disclose impacts on nature andact to reduce impacts

Target 6: Invasive species

Target 16: Consumption

Target 7: Pollution

Ensure that people are encouraged and enabled to makesustainable consumption choices

Target 4: Species

Reduce pollution from all sources to levels that are not harmful tobiodiversity

Target 8: Climate
Minimize the impacts of climate change on biodiversity withnature-based solutions

Target 9: Sustainable Use
Ensure benefits for all through sustainable management of
ecosystems

Target 10: Agriculture
Ensure areas under agriculture, aquaculture, forestry are managed
sustainably

Target 11: People

22 targets
for 2030

Target 17: Biotechnology
Target 18: Subsidies
Identify and phase out harmful subsidies to biodiversity

Target 19.1: Finance
Increase the level of financial resources made available from all
sourcesTarget 19.2: Capacity building
Target 20: Traditional knowledge

Target 12: Urban areas

Target 21: Indigenous people

Target 13: Access & benefits-sharing

Target 22: Gender

Source: Business for nature "A business guide to the UN Convention on Biological Diversity COP15"

35

Mapping of economic value chain to major pressures reveals impact
hotspots—five underlying economic activities analyzed in deep dives
Primary sector (>60%)

FarmingFishing

Forestry

B

Secondary sector (>20%)

Mining &extractive

Industrial
production

Power
Infrastructure
generation
expansion
Transport

Forestry: ~10%

E

Tertiary sector &consumption (<15%)

Other
services

Private cons.
& subsistence

Pressures & share of totalpressure on biodiversity1

Infrastructure expansion: ~5%

Land and seause change
Direct overexploitation
D

Industrial production : >5%

Climate change
Pollution of soil,
water, and air

CAMining & extraction: >5%

Farming: >25%

Rough estimates based on IPBES data and equal weighting of biomes, not accounting for aggravation of climate change
Note: Size of flame roughly reflects share in total pressures on biodiversity; activities with very small share in respective pressure disregarded, illegal activities disregarded
Source: IPBES (2019), BCG

Spread ofinvasive species
Share in pressure

Severity of (local)
interference

36Thank you

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