Biodiversity in Brazil: a fundamental concern for European companies

Brazil is one of the most important cradles of biodiversity, hosting around 20% of the world’s biological diversity, with more than 140,000 species. Nevertheless, the current biodiversity crisis is undeniable.

According to the IPBES (Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services), the biodiversity counterpart to the Intergovernmental Panel on Climate Change (IPCC), warns that we are experiencing the sixth mass extinction, with an extinction rate around 100 times faster than the average of the last 10 million years. Thus, the planet’s main terrestrial habitats are already seeing a decline of approximately 20% in the abundance of native species. In addition, around 25% of the species remaining today are threatened with extinction. The main factors (or pressures) leading to biodiversity loss are related to habitat loss and alteration (notably land use and occupation, such as deforestation), pollution, climate change, overexploitation of resources, and invasive alien species.

In this context, businesses play a crucial role in addressing the biodiversity crisis. They rely upon and have an impact on biological diversity, which should be integrated into their business strategies. Essentially, the private sector depends on ecosystem services, and their operations have consequences for biodiversity. This complex interconnection poses operational risks for companies and financial institutions. Biodiversity is an exceptionally complex systemic issue, making its incorporation into ESG (Environmental, Social, and Governance) strategies a substantial challenge, mainly due to the limited corporate awareness.
 
Our journey unfolds across five chapters, starting with an exploration of Brazil’s unparalleled biodiversity. Then, we delve into the major threats faced by Brazil’s ecosystems, highlighting sectors and value chains with a significant impact. Among these challenges, we examine the ongoing biodiversity conservation and compliance efforts in Brazil. The private sector plays a pivotal role in promoting and protecting biodiversity.
 
We will uncover why it matters for European businesses, and pivot to practical recommendations for businesses. In the final chapter, we spotlight the potential of traceability solutions as a critical tool in safeguarding Brazil’s ecosystems. This report is a call to action, inviting European companies to join the conservation journey, bridging business and biodiversity conservation.

This report was produced by BearingPoint and I Care by BearingPoint in collaboration with I Care Brasil, is a call to action, inviting European companies to join the conservation journey, bridging business and biodiversity conservation. We would like to thank the Carrefour (France) and Suzano (Brazil) companies, both of which agreed to answer our questions, providing essential insights for a complete understanding.