Embrace standards and transparency As outlined in priority action 2, companies should identify, assess and disclose their nature-related impacts, dependencies, risks and opportunities across the supply chain and engage with suppliers. Companies can also use external assurance frameworks to secure a guarantee on the implementation of responsible production standards, such as IRMA, The Copper Mark and the Aluminium Stewardship Initiative. In order to further improve access to and quality of data and enable data sharing across the value chain, companies can engage and collaborate with others, including upstream and downstream companies, traders and distributors, financial institutions, industry associations and NGOs, to: –Develop environmental data management and sharing technologies to improve traceability through the value chain (see Case study 3 for more detail) –Establish common impact assessment methodologies to drive standardization and convergence –Establish data needs of downstream customers and collectively develop solutions to address these needs For example, for batteries specifically, a consortium of 11 partners, including BMW Group, Umicore and BASF, has received €8.8 million in funding from the German government. They used this to develop a common classification and set of standards for gathering and disclosing data on batteries, releasing a study in 2024 that outlined the benefits and challenges of digital product passports for batteries.233,234 In addition, the Global Battery Alliance’s Battery Passport235 aims to improve transparency in critical minerals sourcing by collecting and reporting data on the make-up, manufacturing history and sustainability of a battery across its life cycle.This includes investing in credible and effective nature-based solutions (through place-based conservation and restoration or landscape and jurisdictional approaches), and partnering with environmental NGOs, local governments, Indigenous Peoples and other local communities, such as through the World Economic Forum’s 1t.org initiative. As supporting guidance, companies can refer to the Global Standard for Nature-based Solutions published by IUCN, which proposes eight criteria and 28 indicators to deliver results that are “environmentally sound, socially just and economically feasible”. Companies can start by establishing flagship projects, either by enhancing existing beyond-value- chain carbon abatement investments or launching new nature-based solutions that contribute to net- zero and nature-positive movements. For example, Volkswagen Group has established a Biodiversity Fund with an annual allocation of up to €25 million for external projects starting in 2025,230 and as a member of the 1t.org Corporate Alliance, Mahindra has committed to planting 1.5 million trees a year, with the aim to plant five million trees annually by 2026. It has already planted a total of 20 million trees in Araku, India as part of Project Hariyali.231 Where possible, companies should prioritize projects in locations relevant to their upstream, downstream or own operations, where investments can also provide risk mitigation benefits (e.g. protection from flooding). Invest in innovative biodiversity financing mechanisms A 2020 report estimated there is an average global biodiversity financing gap of $711 billion per year required for the protection, restoration and enhancement of nature,232 where the private sector has a key role to play in helping bridge this gap by investing in a nature-positive transition. Target 19 of the Global Biodiversity Framework proposes several innovative ways to mobilize public- and private-sector resources. For example, companies could consider investing in payment for ecosystem services, green or blue bonds, nature restoration funds and voluntary biodiversity certificates or credit markets. Through careful assessment of the advantages and disadvantages of available products, companies can contribute to meaningful long-term biodiversity conservation that is aligned with both their internal values and targets as well as national objectives. The Forum has published a Private Sector Roadmap to Finance and Act on Nature. 3.5 Drive cross-sector collaboration on standards, transparency, infrastructure and policyPriority action 5 Nature Positive: Role of the Automotive Sector 37

Nature Positive Role of the Automotive Sector