Publication
15 Jan 2026 ·
International
Biodiversity
2 min read
In light of ongoing economic pressures and the dramatic decline in biodiversity, there is growing recognition that halting biodiversity loss is essential to achieving climate goals. Harmonized and binding measures to meet biodiversity targets have already been introduced through regulations. Consequently, companies must increasingly focus on preserving biological diversity and address this urgent challenge.
Why is it important to your business?
- Biodiversity protection is evolving from a voluntary commitment into a legally binding obligation with far-reaching implications for corporate governance and strategy
- Companies are subject to growing biodiversity obligations as legislators extend the European Green Deal framework and incorporate biodiversity protection into binding legal requirements
- Furthermore, investor expectations, sustainability ratings, and other stakeholder demands are intensifying. Transparent biodiversity reporting and demonstrable progress are essential for securing financing and maintaining market access
- Proactive biodiversity management not only mitigates legal and reputational risk but can also unlock commercial opportunities, from ESG-linked financing to competitive advantages in sustainable markets
Challenges and risks
- Measurement and reporting gaps: Unlike climate metrics, biodiversity lacks universal standards, making consistent data gathering and impact assessment legally challenging
- Complex supply chains: Identifying and mitigating biodiversity impacts and dependencies often require evaluating multiple tiers of suppliers, raising due diligence complexities
- Regulatory pressure: The regulatory environment is becoming more stringent, with new directives requiring detailed reporting, due diligence, and supply chain transparency
- Non-compliance carries significant risks: Companies face criminal or civil sanctions, and reputational damage, if their activities harm protected habitats or species
How can CMS advise/help?
- Training and strategy development: Raising awareness, running risk workshops, and integrating biodiversity into strategic decisions
- Strategy implementation: Designing and executing biodiversity strategies while minimizing operational disruption and building compliance systems
- Compliance advice: Guiding on evolving legislation, liaising with regulators, and developing internal policies to reduce legal and reputational risks
- Ongoing monitoring: Providing continuous support to maintain compliance with changing biodiversity requirements
- Disputes and Litigation: Managing biodiversity-related investigations, enforcement actions, and disputes efficiently and strategically
