Global Biodiversity Framework The agreement of the Kunming-Montreal Global Biodiversity Framework15 in December 2022 set the ambition to halt and reverse biodiversity loss, calling for a collective effort from all sections of society on the four goals and 23 targets by 2030. Guidance and standards Many regulators will soon require mandatory nature- related disclosure from companies, with regulations like the European Sustainability Reporting Standards (ESRS)16 under the EU’s Corporate Sustainability Reporting Directive (EU CSRD) and the EU Taxonomy for Sustainable Activities17 pushing businesses to disclose their impact on nature and their exposure to nature and biodiversity loss. Standards are also being adopted in countries like India18 and China,19 requiring companies to disclose material sustainability information. Companies are encouraged to start collecting data and building internal capacity in alignment with voluntary disclosure frameworks like the Taskforce on Nature-related Financial Disclosures (TNFD),20 which has seen at least 502 organizations, including 129 financial institutions, commit to getting started with voluntary reporting of their nature- related issues.21 Financial institutions Financial institutions are also recognizing the risks associated with nature, for example, 36% of Dutch financial institutions’ assets were found to be highly dependent on nature,22 and starting to take action. In the past three years, 177 institutions with €22 trillion in assets under management signed the Finance for Biodiversity Pledge, and institutional investors are convening through the Nature Action 100 programme to engage with companies and policy-makers on nature.23 The nature-positive transition will unlock new business opportunities for financial institutions. Innovative nature financing mechanisms, including biodiversity credits, impact investments and blended finance mechanisms, have seen significant growth in the past years, including 10% growth between 2022 and 2023.24 Governments are developing the market infrastructure to mobilize private finance for nature conservation and restoration. For example, in 2023, the UK government introduced the Biodiversity Net Gain (BNG) legislation,25 mandating that all new development projects achieve a 10% net gain in biodiversity, and the Australian government is in the process of establishing a Nature Repair Market26 to enable individuals and businesses to voluntarily invest in nature repair projects across Australian land, waters, or a combination of both.Financial institutions can start taking action by building internal capacity to act on nature, developing financing policies, strategies and transition plans that favour nature (including sector-, location- or asset class-specific policies where appropriate), embedding nature in risk management systems, developing robust nature-related reporting systems, and engaging with high nature-impact and high nature-risk businesses. Consumers and employees Similarly, wider society and other stakeholders, such as employees and consumers, are raising their expectations for corporate action to protect nature and biodiversity. In the Union for Ethical BioTrade’s 2022 Biodiversity Barometer , biodiversity loss was the second most urgent environmental concern for consumers after climate change. In countries such as Brazil and China, the concern comes out on top, with 54% of consumers wanting information on a product’s impact on biodiversity. A survey by Simon-Kucher & Partners in 2021 showed that 85% of consumers have made changes to make their purchasing behaviour more sustainable in the past five years.27 Additionally, employees are elevating their expectations regarding their employers’ commitment to protecting nature and biodiversity. For example, a 2022 global survey by Deloitte28 found that protecting the environment remains a top priority for Gen Zs and millennials, who want to see their employers prioritize visible actions that enable employees to get directly involved. A total of 64% of Gen Zs said they would pay more to purchase an environmentally sustainable product. Setting credible nature strategies Despite the increased momentum on nature over recent years, not enough is being done. While 78% of Fortune Global 500 companies have climate change targets, only 26% have freshwater consumption targets, and just 12% have targets for biodiversity loss.29 Only 5% of companies have assessed their impacts on nature, with less than 1% understanding their dependencies.30 Companies can contribute to “Nature Positive” by establishing credible nature strategies, where “Nature Positive” represents a “global societal goal to halt and reverse nature loss by 2030 on a 2020 baseline, and achieve full recovery by 2050”.31 Individual companies, financial institutions and investors can contribute to this shared goal by adopting nature-positive strategies across their spheres of control and influence, including at sites of high-biodiversity importance, in their direct operations as well as across their value chains (see Figure 3). In the past three years, 177 institutions with €22 trillion in assets under management signed the Finance for Biodiversity Pledge. Nature Positive: Role of the Offshore Wind Sector 10

Nature Positive Role of the Offshore Wind Sector