COP16 - key takeaways and reflections

Messages from COP16 in Cali, Colombia

The 16th Conference of the Parties (COP16) to the UN Convention on Biological Diversity, a landmark event bringing together global leaders to address critical biodiversity issues and set new precedents for conservation efforts recently concluded in Cali, Colombia.

For the first time at a Biodiversity COP, it was marked by significant influence and leadership from industry and private finance. Here are the key takeaways relevant to our infrastructure sector.

1. Recognition of Indigenous Peoples and Local Communities: COP16 marked a historic moment by recognizing Indigenous Peoples and people of African descent under the Convention on Biodiversity (CBD) as key stewards in biodiversity conservation. A new permanent body for Indigenous peoples has been set up under the CBD, to allow for knowledge share for the first time. AECOM recognizes the importance of integrating traditional knowledge and practices into our sustainability strategies and projects for clients.
2. Focus on Sustainable Infrastructure: A common theme in many discussions at Cali was the importance of mainstreaming biodiversity into decision-making (Target 14 of the Global Biodiversity Framework). This included many side events and sessions focussed on adopting nature-based solutions and innovative technologies to enhance integration of nature risks and benefits into planning and development. AECOM is a thought leader, and our innovation was referenced across our work on the WWF-FIDIC Nature Positive Infrastructure Playbook, our SMI Nature Risk Tool and the partnership with O.N.E. Amazon on the Internet of Forests (IoF) pilot.
3. Private Sector Engagement: The private sector's role in biodiversity conservation was emphasized, with calls for increased investment in nature-positive initiatives. Of note was the rapid growth of TNFD, supporting corporate nature disclosures, and the launch of the IAPB’s high integrity biodiversity credits framework. AECOM leverages our expertise in sustainable infrastructure, natural capital and biodiversity to support our clients.
4. New Benefit-Sharing Mechanism for DSI: Digital sequence information (DSI) means genetic data insights gleaned from nature. The mechanism aims to protect sovereign rights and ensure fair distribution of benefits derived from the genetic resources contained in plants and animals. The “Cali fund” has been set up so companies that derive financial benefit from these genetic resources contribute 1% of their profits or 0.1% of revenue under the agreement. This particularly affects the pharma, cosmetics, agribusiness and tech sectors and AECOM can provide advisory support to cover the governance and social impact aspects of working with the Cali fund.

TNFD and Corporate Disclosures on Nature

TNFD is really influencing corporate behaviour in relation to nature strategy and reporting now:

• Nature Stewardship: Trends and implications for shifting the flow of finance towards nature-positive outcomes.
• Corporate Reporting and Regulation: Market adoption and standards development for nature-related disclosures.
• Nature-Related Risk Identification: Lessons from the LEAP approach were shared, highlighting the importance of identifying and managing nature-related risks.
• Nature-Related Opportunities: Discussions on biomimicry and the circular bioeconomy showcased the potential for nature-related opportunities.

AECOM is an ‘early adopter’ of the TNFD framework and several of our major clients have also become early adopters. AECOM engaged in the development of TNFD through piloting the TNFD's LEAP approach, which assesses nature-related issues in infrastructure projects. We screened 61 infrastructure projects in Asia, helping understand how existing EIA-based nature assessments compare with the LEAP approach. These insights underpin our support to clients for TNFD readiness and disclosures and were instrumental in our development of the SMI Nature Risk Tool.

At COP16, the Taskforce on Nature-related Financial Disclosures (TNFD) made several key announcements:

• TNFD Adopter Announcement: The TNFD announced the next cohort of global leaders as TNFD Adopters, surpassing US$6 trillion in market cap and US$16 trillion in assets under management (AUM), with over 500 organizations committed to making TNFD-aligned disclosures – this shows TNFD accelerating faster than equivalent climate disclosures.
• Draft Guidance on Nature Transition Planning: TNFD published a discussion paper that sets out draft guidance on nature transition planning for corporates and financial institutions. This guidance builds on current market practices for climate transition planning and aims to facilitate an integrated approach to transition planning and disclosure. A handbook was also released on integrated TCFD and TNFD disclosures with worked examples.
• Nature Data Public Facility: A proposed blueprint for the Global Nature Data Public Facility was unveiled. This initiative aims to provide standardized measures of biodiversity and ecosystem health, integrating with frameworks like the TNFD.

AECOM Assets at COP16

The SMI Nature Risk Tool was highlighted during the conference, especially as part of discussions on sustainable infrastructure development at the British Consulate. Various press releases and articles praised the tool for its innovative use of AI and nature data to inform infrastructure projects. The tool's ability to analyze land globally and provide expert-reviewed descriptions of habitats and biomes is as a significant advancement in nature-related risk assessment. It’s primary use case is for developers and investors looking at reviewing nature-related risks and opportunities early in the project planning stages, providing valuable insights for project origination decision-making.

The FIDIC-WWF Nature Positive Infrastructure Playbook was highlighted during the conference as part of the discussions on sustainable infrastructure development. It was specifically highlighted in panels focussed on integrating natural systems better into infrastructure procurement, as new content had been developed in advance of COP16 with key content for client-side project developers who need guidance on how to include nature in infrastructure project scope and briefs to

The playbook, authored by AECOM and sponsored by WWF and FIDIC, provides strategic and practical materials to help the sector move towards nature-positive infrastructure development. It was highlighted for its ability to guide infrastructure practitioners in integrating nature-based solutions into their projects.

AECOM and O.N.E. Amazon at COP16

The partnership between O.N.E. Amazon, AECOM, and the Mayor's Office of Santiago de Cali was highlighted. Working with AECOM and O.N.E. Amazon supported development of an environmental management strategy for COP16, including measuring the carbon footprint and evaluating strategies to mitigate its effects. Ongoing activities with O.N.E. Amazon, include the development of a biodiversity index and strategy, as well as projects related to mangrove restoration. AECOM is currently piloting an Internet of Forests (IoF) project, with O.N.E. Amazon and Veea, leveraging technology for intact forest conservation and revenue streams.