Biodiversity, Indigenous Peoples, and corporate action on supply chain impacts

Our global food systems have a major impact on Earth’s environment as well as its people. Land use change associated with the production of agricultural and forestry commodities (eg, beef, cocoa, palm oil, and soy) is responsible for 11% of global greenhouse gas emissions and 33% of global terrestrial biodiversity loss. 

However, the impacts of commodity production are not limited to the environment. Indeed, biodiversity loss and land use change impact a wide range of human rights, including the collective rights of Indigenous Peoples to a “clean, healthy, and sustainable environment” (per the UN General Assembly), as well as to land, food security and livelihoods. 

Companies have a duty to respect the rights of Indigenous Peoples 

No matter where they operate in the world, businesses are obliged to respect human rights through a range of international and national laws and instruments, such as the UN Guiding Principles on Business and Human Rights.  

This means that those companies that have impacts on land (such as being linked to deforestation and biodiversity loss) must also consider how these impacts affect the rights, resources, and culture of Indigenous Peoples who may own, occupy, or manage that land.  

Biodiversity loss also has consequences for businesses 

Biodiversity loss is not simply an environmental issue, but also an economic one. Companies that buy or produce agricultural and forestry commodities must understand and address their impacts to manage their reputational risks, meet the demands of their investors, and be better positioned to comply with related regulation. 

Indeed, companies must comply with various laws related to biodiversity (eg, UK Environment Act 2021), as well as meet their voluntary commitments on climate and nature (eg, Science Based Targets for Land).  

Indigenous Peoples rights and biodiversity go hand in hand 

The link between Indigenous Peoples rights and biodiversity loss should not be overlooked. In fact, Article 8(j) of the Convention on Biological Diversity (CBD) recognises the role of respecting Indigenous Peoples’ rights in efforts to promote and maintain better biodiversity.  

The CBD obliges its signatories to:  

“respect, preserve and maintain the knowledge, innovations, and practices of Indigenous Peoples and local communities relevant for the conservation and sustainable use of biological diversity and promote their wider application with the approval of knowledge holders and to encourage equitable sharing of benefits arising from the use of such knowledge.” 

The loss of biodiversity is a significant risk to the rights of Indigenous Peoples, such as their right to culture, food security, and livelihoods. In turn, infringing on the rights of Indigenous Peoples may coincide with harm to the biodiversity of natural lands.  

As such, companies that want to ensure their business operations fully respect the rights of Indigenous Peoples must embed efforts to mitigate biodiversity loss into those strategies, and vice versa. By taking an integrated approach to both human rights and land use change, they can identify and mitigate harms to both people and planet effectively. Tools such as the Accountability Framework offers companies guidance on taking an integrated approach to protecting both natural ecosystems and human rights. 

How the Accountability Framework can help companies meet their biodiversity and human rights goals 

The Accountability Framework’s Core Principle 2.2 calls on companies to respect the rights of Indigenous Peoples and local communities in their operations, supply chains, and financial investments. This includes rights to land, culture, self-determination, self-governance, a healthy environment, non-discrimination, and participation in decision-making processes. Critical to this is their collective right to free, prior, and informed consent.  

The guidance of the Framework encourages companies to integrate both their nature and human rights ambitions across their entire business, by setting goals, taking action, and monitoring and reporting on progress. 

For more detailed, actionable guidance on respecting the rights of Indigenous Peoples, companies can consult the following Accountability Framework Operational Guidance documents: 

• Respecting the Rights of Indigenous Peoples and local communities 

• Free, Prior, and Informed Consent (FPIC) 

• Remediation and Access to Remedy