Legal opinion identifies nature-based risks as a looming challenge for businesses

Business directors are warned to consider their own environmental risks in order to keep up with changing consumer behavior.

A new legal opinion by Chapman Tripp of sustainable finance group Aotearoa Circle says biosecurity risks are leading to regulations requiring companies to be more sustainable and transparent about their supply chains. I’m here.

In particular, primary industry directors say they need to plan for nature-based risks, such as declining bee populations hurting manuka honey exports.

Nicola Swan, partner at Chapman Trips and co-author of the opinion, said there is an opportunity for exporters to move forward as global attention to supply chains grows.

“Aotearoa New Zealand is committed to ensuring that if we get this wrong, reputationally and overseas markets understand this risk and demand transparency in their supply chains in relation to nature-related risks and biodiversity protection. I’m used to it, so I have a lot to lose.

“But if we do it right, New Zealand can really get a lot out of it.

“This opinion shows trends that are coming to New Zealand that we may not have otherwise been aware of and gives directors the opportunity to get ahead of it and understand the significance and scale of these changes. I come both here in New Zealand and abroad.

“The companies that are most likely to be affected by it, and it will be in the primary sector, can seriously look at what they are doing.”

Swann said some directors and companies are already managing nature-based risks, while others may give way.

Companies should assess and treat nature-based risks like any other risk, she said.

“Given the global biodiversity and climate crises, an important point is for directors to ensure that their businesses are aware of their dependence on the natural environment.

Directors are advised to ensure that the business has identified nature-related risks where they are foreseeable and material to the business and to take these risks into consideration in decision-making. rice field.