Phase 2 Outcomes
The Phase 2 progress report, Waste and Pollution: Addressing Biodiversity Risks from the Use of Animal Waste as Fertiliser, is now available to download. For individual Waste and Pollution engagement company assessments, please visit our Company Universe.
Phase 2 Key Findings
2024 is a crucial year for focusing global efforts to address biodiversity risks
With the Convention on Biological Diversity’s Conference of the Parties (COP 16) set to take place this October in Colombia, countries are expected to translate the Biodiversity Plan into concrete national strategies and action plans to meet the 23 targets set for 2030. Target 7 specifically calls for a 50% reduction of excess nitrogen and phosphorus loss to the environment by 2030, emphasising the need for efficient nutrient use, management, and circularity.
The status of the planetary boundaries underscores the urgency to act. These boundaries define humanity's safe operating space within Earth’s ecological limits, and the nitrogen and phosphorus boundaries have been far exceeded already. Human activities, such as industrial processes and agricultural practices, release excess nutrients into the environment, causing algal blooms and eutrophication that contaminate water and disrupt ecosystems.
3.1 billion tonnes
of livestock manure created every year are 4x the volume of human sewage, with a fraction of the treatment400
severely marine eutrophic zones globally lack the oxygen necessary to support biodiversity at a meaningful level100 million tonnes
of phosphorus and nitrogen applied as fertilisers are lost to the environment each year, 55% and 65% of the total used50%
of freshwater biodiversity loss can be attributed to food systems, with nutrient pollution a key driver30%
of anthropogenic nitrogen emissions are caused by livestock production, vastly contributing to exceeding the nutrient planetary boundaries+600,000
people die annually from air pollution from agricultural ammonia emissionsAlthough there is growing awareness of the TNFD, implementation timelines remain unclear
The adoption of nature as an overarching strategic focus driving actions on related risks – such as nutrient pollution’s impact on water quality – remains in its early stages. Every company acknowledged the Taskforce for Nature-related Financial Disclosure (TNFD), and a few are committing to a timeline to implementing the framework. This process supports the acknowledgement of the connection between nature-related risks, pollution, and water quality across the value chain for companies.
Meat producers lack a comprehensive understanding of upstream and downstream water pollution risks
Despite pork and poultry producers being exposed to material risks from water pollution in their supply chains, the company dialogues highlighted that nine out of ten companies have made little progress when assessing these risks.
The visibility of risks is lowest for feed supply chains despite some of the companies buying grains to produce their own feed mix.
Few actions are directed by a clear strategy to minimise pollution risks
All ten pork and poultry producers have some initiatives in place, though there is no evidence the initiatives are part of a strategy, and seem to be reactions to subsidies, local regulator demands and lawsuits. Having a clear top-down strategy to address location-specific nature-related and water-quality risks as identified by a thorough assessment proactively gives direction to capital investments. This can help avoid the reputational and financial risks of fines, lawsuits, and community opposition.
Agrochemical companies are slow to evaluate how their products impact nature, risking delays in strategy and action plan implementation
Fertiliser manufacturers should understand the impacts of their products when used on farms, as this is essential for them to evaluate which products pose the highest risks to water quality and, thus, biodiversity. This should follow a materiality screening process to identify priority locations or products.
