Fewer than half of Asian companies are tackling biodiversity issues, despite 70% making reference to them, a report has found.

For its Asian Markets Biodiversity Report Card, Nature Positive analysed 192 companies listed on the Japanese, Thai, Hong Kong and Singapore stock exchanges, finding just 42% treating biodiversity as a material concern. Of those just 4% treat biodiversity as a priority.

This is despite 135 companies – 70% – referencing biodiversity on their websites and published reports, the specialist consultancy firm found.

“While it is encouraging to see companies talking about biodiversity, the extent to which this drives meaningful change is questionable,” said Dr Stephanie Wray, managing director of Nature Positive.

“There is still a lack of understanding of the link between business operations and biodiversity impacts.”

The business case

As a region undergoing rapid economic growth, Asia is particularly vulnerable to biodiversity-related issues, the report said.

The main causes of biodiversity loss include direct habitat degradation or loss through land use; over-exploitation of species through direct harvesting from nature or its indirect effects; and climate change and pollution of land, water or air, including through the release of excess nutrients.

Companies in some regions are doing better than others. In Japan, 77% of companies highlighted biodiversity as a material issue, compared with 33% in Singapore, 30% in Hong Kong and 28% in Thailand.

But on the whole, businesses not addressing these issues face reputational damage and loss of clients and investors, the report said, which affect profits and viability.

A Schroders study from July found 23% of investors in Singapore, Indonesia, Malaysia and Thailand considered natural capital and biodiversity loss a top engagement priority.

“We must disband the idea that there is a difference between financial and non-financial value,” said Joe Phelan, executive director, Asia Pacific, World Business Council for Sustainable Development.

“Capital allocation models need to enable sustainable development, with capital markets properly valuing inclusive, impactful, sustainable business practices and rewarding the most sustainable companies.”

For organisations looking to address biodiversity issues, Wray suggests first undertaking a biodiversity audit to understand how they rely on and impact nature, followed by setting targets for the restoration of biodiversity.

“[This] would be an obvious sign of intent for Asian companies to start addressing their impacts,” she said.