COP16: Private sector urged to step up investment in healthy lands

Hundreds of private sector representatives from finance, fashion, agri-food to pharmaceuticals, on Wednesday 4 December 2024 convened in Riyadh, Saudi Arabia, to discuss their role in ensuring sustainable land, soil and water management. They responded to a call to action launched by the United Nations Convention to Combat Desertification (UNCCD) at the 16th Conference of the Parties.

The Business 4 Land Forum brought together high-level decision makers and CEOs from companies that are particularly land-and-water-dependent, including firms in the agrifood, pharma, energy, textiles, ICT, and finance and insurance sectors. Land degradation and drought pose serious risks for businesses and investors, meaning it is in their best interest to mitigate them by contributing to global efforts for healthy lands and drought resilience.

The event was part of  Business 4 Land (B4L), an initiative launched by UNCCD earlier this year in Davos with InTent – a platform that can quickly mobilize an influential and diverse group of decision-makers for change – to engage and support private actors in sustainable land management. It is supported by the COP16 Presidency, the World Economic Forum, the World Business Council for Sustainable Development, ChangeNOW, the Sustainable Fibre Alliance, the International Chamber of Commerce, the UN Global Compact, and the Saudi Environment Fund.

“COP16 has attracted the largest-ever participation of the private sector to a UNCCD COP to date, providing a critical momentum to make sustainable land management a core part of corporate and financial strategies,” said the Executive Secretary of UNCCD Ibrahim Thiaw. “Shifting towards nature-positive operations, supply chains, and investments, is not only about environmental sustainability, but about the long-term profitability and resilience of businesses.”

The B4L Forum brought together 60 high-level speakers and 400 guests; among them, more than 40 corporations that recognize the urgent need to address land degradation and drought, and acknowledge their responsibility in ensuring the sustainable management of natural resources as a business and social imperative.

B4L’s call to action urges companies to contribute to one or more of the Business 4 Land (B4L) initiative’s pillars: promoting sustainable practices across business operations; supporting finance solutions; and advocating for better land and water management policies.

“$44 trillion, over half of global GDP, is at risk from nature loss. It is imperative for business to explore innovations that can halt and reverse land degradation while unlocking opportunities for business growth,” said Gim Huay Neo, Managing Director at 1T.org, World Economic Forum. “Through collaboration with governments and other stakeholders, business can accelerate progress on land restoration for a more resilient future for all.”

André Hoffmann, member of the high-level advisory committee of COP16 and founder of InTent and Vice-Chairman of the Board of Directors said: “The private sector, which can play vital role in the sustainable transition we urgently need, must see nature not as a resource to exploit but as our life-support system. The B4L Forum was an opportunity to forge new coalitions to restore land and build resilience. By shifting from extraction to collaboration, we can drive investments in nature-based solutions that secure human prosperity and planetary health.”

The forum highlighted the need to align business, policies, and finance to protect land as a critical asset. Participants discussed how to account for the corporate impacts on land, how to mitigate the risks of land degradation – for example, by setting measurable targets both in direct operations and across supply chains – and by reporting on progress.

The Business 4 Land initiative launched a guide to help corporate actors navigate land-related disclosures and target-setting and align their strategies with national policies and global goals for a fair land transition.

“Corporate disclosures are essential for land-positive businesses. Today, many companies still lack a clear understanding of their land-related impacts and dependencies, leaving them vulnerable to significant risks”, said Razan Al Mubarak, Co-Chair of the Taskforce for Nature-related Financial Disclosures (TNFD) and President of IUCN.

The report, ‘Corporate Disclosures and Target-Setting on Land Guide’, was developed together with the (TNFD) and the Science Based Targets Network (SBTN), in consultation with actors like the WEF and the COP16 Presidency.

The costs of land degradation and drought are steep. For example, U.S. farmers may face short-term costs of up to USD 40 per acre for regenerative agriculture practices, but long-term profits can increase by up to 120%. B4L’s guide supports companies in harnessing these opportunities.

“In a context of rising nature risks, businesses have a key role to plan in taking action for land and reversing the trend of degradation, water scarcity and biodiversity loss impacting our societies and economies, across value chains and industries,” concluded a member of the Executive Committee of the World Economic Forum Nicole Schwab.