Valuing Nature: Insights for CFOs & CROs from COP16

The results were mixed when the dust settled after COP16 in Colombia, but one thing was clear: business leaders, particularly Chief Financial Officers and Chief Risk Officers, cannot afford to sit on the sidelines when it comes to biodiversity and nature-positive strategies. The COP16 discussions underscored the financial risks—and new opportunities—tied to how your business interacts with nature.

Here’s why this matters for both your bottom line and our collective future.

Nature is the Foundation of Every Business 

Imagine running your company without clean water, fertile soil, or stable weather. We take for granted these essential building blocks of business, but they’re products of healthy ecosystems that are increasingly imperiled, adding unprecedented risks to business operations reliant on complex global supply chains. 

The global economy depends on these “ecosystem services,” yet they’ve been largely invisible on financial ledgers. COP16 brought a sharp focus to this disconnect. Every degraded forest, polluted waterway, or lost species diminishes the natural capital that underpins markets, supply chains, and your business success. 

For CFOs, this isn’t just an environmental issue, it’s an undocumented liability. 
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Biodiversity Loss = Financial Risk 

No longer a distant environmental concern, nature loss is a near-term business risk. At COP16, discussions repeatedly highlighted the financial repercussions of failing ecosystems. It’s becoming understood that Scope 3 emissions, deforestation liabilities, and biodiversity impacts are critical metrics for investors and regulators alike. 

Take deforestation. Companies that rely on agricultural commodities face increasing scrutiny from consumers and regulators. Meanwhile, biodiversity is recognized as an increasingly vital factor for climate resilience. Without diverse ecosystems, the natural mechanisms we rely on for carbon sequestration and disaster mitigation are severely weakened. This increases the risk of supply-chain disruption and drives up the cost of doing business.

The rising tide of biodiversity-reporting requirements will demand transparency and trustworthy data. Now is the time to act. 

For CROs, this trend presents a dual mandate:
Mitigate risks while adapting to regulatory changes.

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The Business Case for Biodiversity Reporting 

Biodiversity reporting isn’t mandatory—yet. But there’s no doubt it’s on the horizon. COP16 made it clear that governments and corporations alike will soon need to report nature impacts. Companies that take the lead now will be better positioned to navigate future regulations and market demands. 

Here’s Where CFOs Play a Crucial Role: 

1. Risk Assessments: Screening operations for biodiversity hotspots can identify potential liabilities, enabling savvy companies to act early, saving substantial capital and resources. 

2. Data-Driven Decisions: Quantifying nature-related risks and dependencies will justify investments in nature-positive initiatives, like sustainable supply chains or carbon offsets. 

3. Competitive Advantage: Companies with robust biodiversity strategies attract eco-conscious investors and consumers and differentiate their brands based on measurable action.

What Happens When You Invest in Nature? 

It’s not all about risk—there are also opportunities arising in the evolving climate landscape. COP16 introduced the Tropical Forest Forever Facility (TFFF), an investment mechanism projected to deliver a 5.5% annual return by funding tropical forest preservation.

For CFOs, this type of initiative signals a shift:
Investing in nature isn’t just a feel-good strategy, it can deliver real financial returns. 

Moreover, companies that enhance biodiversity within their operations may find long-term cost savings and resilience. For instance, improving soil health reduces reliance on fertilizers, while maintaining diverse forests stabilizes local climates, lowering operational risks. 

Nature and Business Are on a Collision Course 

Despite progress at COP16, the funding gap remains staggering; only $163M of the promised $20B for nature-based solutions has been secured for 2025. Governments alone won’t fill this void. Businesses must step up. 

At the same time, alignment around biodiversity metrics and methodologies is gaining momentum. Financial institutions are increasingly interested in nature-positive strategies, which means your shareholders are watching.

The time to integrate nature metrics into your financial strategies is now. 
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Wait-and-See Isn’t an Option 

It may be tempting to hold off on nature-positive strategies until regulations are finalized. But the “wait-and-see” approach will cost more in the long run. Businesses that act early will not only reduce risks, but also unlock opportunities to innovate and lead in a rapidly evolving marketplace.

The takeaway from COP16? Nature is not just an environmental concern; it’s a financial one. For CFOs and CROs, it’s time to quantify, manage, and invest in the natural capital that makes your business—and the economy—possible. The companies that do will lead the way in securing a nature-positive future. 

The Expert Perspective

The FLINTpro team—comprised of lead authors of the IPCC Guidelines and GHG protocol—emphasizes that transparent data is the key to making decisions that benefit both business and nature. We are the architects of land-sector solutions, carbon-accounting mechanisms, and data-and-analytics integrations that power organizations like yours. We specialize in tracking emissions, protecting biodiversity, and stopping deforestation.

It is only through transparent data that you can make decisions that benefit business and nature.

Nature is not a “nice to have”—it’s the foundational infrastructure of our entire economic system. CFOs and CROs who recognize this fundamental truth will be the architects of tomorrow’s most resilient organizations.

While biodiversity reporting is not yet mandatory, it’s coming. Companies that understand their interconnection with nature are able to make more informed decisions now that will save them substantial resources down the road.

Contact FLINTpro and develop a deeper understanding of the true value of your land assets.