Unlocking nature's potential: Forests related Nature-based Solutions to address climate change and promote sustainable development

This policy briefing is CDP’s first look at the actions taken by companies on Nature-based Solutions (NbS) within its forests’ disclosure data. It is aimed at policymakers seeking to understand the role of the private sector in unlocking the potential of Nature-based Solutions as a cost-effective tool to support a responsible forest-risk commodity value chain and in delivering a 1.5°C, deforestation-free world.

This briefing describes the increasing importance of NbS in the main international regimes related to climate and biodiversity, assessing the private sector’s potential in driving NbS forward. It presents cases of NbS being implemented and supported by companies responding to CDP’s forests questionnaire and provides a set of recommendations for policymakers to strengthen the private sector’s engagement with NbS.

The key findings of this briefing are:

1. 5% of the responding companies are implementing and supporting NbS, showing a large potential for growth and space for positive policy incentives.
2. Companies in Asia lead in reporting NbS through CDP’s Forests Questionnaire, while companies in Central and South America are lagging.
3. Companies in the Materials sector lead in reporting NbS, and the Services and Hospitality sectors also perform above average.
4. There is a similar rate of NbS reporting for companies disclosing on CDP’s four Forest Risk Commodities, with companies disclosing on Timber having a slightly higher percentage.
5. Forest conservation and reforestation are the most commonly implemented categories of NbS implemented by disclosing companies.

The briefing argues that NbS should be propelled into the global, regional and national policy spheres to tackle interconnected issues and ensure policy coherence. The authors recommend, to:

1. Recognize the role and participation of non-state actors in driving NbS and contributing to ecosystem resilience;
2. Boost ambition and enhance action on NbS beyond 2020;
3. Enhance policy conducive to more and better corporate environmental disclosure;
4. Mobilize finance for NbS;
5. Mainstream NbS into legislation and regulatory frameworks for policy coherence between climate change, biodiversity, and sustainable development.