Biodiversity Emergency

Lord Sikka Excerpts

Thursday 22nd April 2021 Grand Committee

[Lord Sikka (Lab) [V]]

My Lords, the Climate and Ecological Emergency Bill annual risk report for 2020 ranks biodiversity loss as the third most impactful risk facing the global economy and the fourth most likely to actually occur. The Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services estimates that between $235 billion and $577 billion in annual global crop output is at risk as a result of pollinator loss. Bee populations are declining because of pesticide use, habitat degradation and reduction, global warming, agricultural practices and a lack of floral diversity. A recent red list showed that out of a total of 1,101 species of bee in the EU, about 15% are threatened with extinction or near-extinction.

The Government need a joined-up approach to dealing with the impact of biodiversity loss. Section 172 of the Companies Act 2006 requires directors to promote biodiversity. Business performance measurement models are distorted by a focus on shareholder wealth maximisation and environmental degradation and neglect of biodiversity by companies. This neglect is further perpetuated by the Government’s current consultation paper on corporate governance reforms, which clings to a shareholder-centric model of corporate governance.

A first step for dealing with the challenges is for the Government to promote a stakeholder model of corporate governance so that diverse voices are empowered. Hopefully, the Minister will give us that commitment in his response.