Organisations must strive to achieve the collective goal of a nature-positive world for all

By Akanksha Khatri, Head of Nature and Biodiversity, World Economic Forum

Research shows that consumers are increasingly concerned about the environmental impact of the products they buy, with a 71 per cent rise in online searches for sustainable goods globally over the last five years. The Union for Ethical BioTrade’s 2022 Biodiversity Barometer indicates that 54 per cent of consumers want information on a product’s biodiversity impact to be listed on packaging.

However, with increased consumer demand for positive action from business, there has also been an increase in greenwashing allegations.

The European Parliament defines greenwashing as “the practice of giving a false impression of the environmental impact or benefits of a product, which can mislead consumers”.

Fear of exposure over greenwashing has seen some companies say nothing at all. ‘Greenhushing’ has emerged as a new phenomenon where companies choose not to publicly disclose their impacts and targets to avoid scrutiny. But being quiet hinders progress and limits opportunities for collaboration. With trust and accountability in mind, companies must prioritise transparency to avoid making generic, exaggerated or unverifiable claims.

Concerns over greenwashing and greenhushing apply to all industries regardless of business activity.

IMPACT ON NATURE LOSS

The sector contributes to nature loss in several ways including land conversion and deforestation resulting from upstream activities. Across the value chain, the sector also consumes significant amounts of water and causes land, freshwater and ocean pollution.

More than 90 per cent of the impact of the consumer goods sector on nature comes from its supply chains, so household and personal care manufacturers have an important role to play in procurement and product design.

While half of the world’s biggest companies have net zero targets, many do not fully understand the impacts and dependencies of their activities on nature, with only five per cent of Fortune Global 500 companies having specific targets.

To avoid greenwashing and greenhushing, businesses – need to accurately assess their impacts and dependencies on nature, set measurable and time-bound targets, take ambitious actions to transform their operations, and report against progress regularly. TAKING PRACTICAL ACTION

The World Economic Forum, in collaboration with Oliver Wyman, has developed guidance showcasing how the household and personal care products sector can take action to transform their practices and value chains. ‘Nature Positive: Role of the Household and Personal Care Products Sector’ outlines five priority actions that corporations need to take to ensure the sector plays its part in halting and reversing nature loss by 2030. These are:

• Improve water stewardship throughout the value chain.
• Source responsibly and replace feedstocks with sustainable bio-based or other renewable materials with careful analysis on trade-offs.
• Change customer behaviour on product use and disposal through education and transparency.
• Support nature conservation and restoration through investment in responsible business practices and nature-based solutions (NbS).
• Expand circularity, offer sustainable products and packaging and engage in collective action and policy advocacy.
  

The guidance also outlines the most significant impacts and dependencies of the sector on nature, highlighting resources that companies can use to monitor supply chain risks and compliance and certification standards.

Progress is promising, but companies must accelerate to achieve the collective goal of a nature-positive world for all by 2030 – the mission at the heart of the UN Biodiversity Plan.

Businesses must therefore complement their net zero plans with a credible nature strategy. Business for Nature’s Nature Strategy Handbook, offers businesses a step-by-step guide to develop this strategy in line with its Now for Nature global campaign, which urges all businesses to act on nature and contribute towards a nature-positive world by 2030.

By working together, organisations can act now to shape an industry that helps secure a nature-positive world.