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Toward More Nature-Positive Outcomes: A Review of Corporate Disclosure and Decision Making on Biodiversity

Author

Listed:
  • Maheshika Senanayake

    (Korea Biochar Research Center and the Division of Environmental Science and Ecological Engineering, Korea University, Seoul 02841, Republic of Korea)

  • Iman Harymawan

    (Center for Environmental, Social, and Governance Studies (CESGS) and the Department of Accountancy, Faculty of Economics and Business, Universitas Airlangga, Surabaya 60132, Jawa Timur, Indonesia)

  • Gregor Dorfleitner

    (Department of Finance, Universität Regensburg, 93053 Regensburg, Germany)

  • Seungsoo Lee

    (Korea Biochar Research Center and the Division of Environmental Science and Ecological Engineering, Korea University, Seoul 02841, Republic of Korea
    Department of Finance, Risk & Compliance, PricewaterhouseCoopers Consulting (PwC), Seoul 04386, Republic of Korea)

  • Jay Hyuk Rhee

    (Center for Environmental, Social, and Governance Studies (CESGS) and the Department of Accountancy, Faculty of Economics and Business, Universitas Airlangga, Surabaya 60132, Jawa Timur, Indonesia
    International ESG Association (IESGA), Seoul 06621, Republic of Korea
    School of Business Administration, Korea University, Seoul 02841, Republic of Korea)

  • Yong Sik Ok

    (Korea Biochar Research Center and the Division of Environmental Science and Ecological Engineering, Korea University, Seoul 02841, Republic of Korea
    Center for Environmental, Social, and Governance Studies (CESGS) and the Department of Accountancy, Faculty of Economics and Business, Universitas Airlangga, Surabaya 60132, Jawa Timur, Indonesia
    International ESG Association (IESGA), Seoul 06621, Republic of Korea)

Abstract

Loss of biodiversity and natural degradation are vital issues that have significant impacts on society and economy. Businesses, investors, and regulators have focused on corporate efforts to support biodiversity and nature-positive activities. This review provides a comprehensive overview of the importance of biodiversity for businesses, its materiality, and the roles of mandatory and nonmandatory regulations in corporate environmental reporting and sustainability disclosure frameworks. It also discusses descriptive information on the evolution of sustainability frameworks by comparing the most prominent sustainability frameworks, with a key focus on the materiality approach and biodiversity-related disclosure recommendations. Furthermore, we provide recommendations for more holistic approaches to improve future sustainability frameworks focusing on the impact of biodiversity. Additionally, we demonstrate the necessity for greater focus on the decision-making paradigm. Further research to measure the impact of biodiversity and innovative trends in sustainability reporting is required to better reflect nature-positive outcomes in corporate sector businesses.

Suggested Citation

  • Maheshika Senanayake & Iman Harymawan & Gregor Dorfleitner & Seungsoo Lee & Jay Hyuk Rhee & Yong Sik Ok, 2024. "Toward More Nature-Positive Outcomes: A Review of Corporate Disclosure and Decision Making on Biodiversity," Sustainability, MDPI, vol. 16(18), pages 1-24, September.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:18:p:8110-:d:1479664
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    References listed on IDEAS

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