Businesses across the Asia Pacific are accelerating action on biodiversity and ecosystem protection, with nature climbing higher on corporate agendas as investors and regulators prepare for stricter sustainability standards, PwC Malaysia’s sustainability director said.
The shift reflects growing recognition that nature-related risks can have a material impact on supply chains, finance, and long-term business performance, said Perpetua George, director of sustainability and climate change at PwC Malaysia.
“The question is no longer why does nature matter to business, but how do we take action—and that change is happening fast,” she wrote in a blog post.
George pointed to strong momentum in Asia Pacific compared with pushback in other regions, as companies here lean into sustainability not just to comply but to win stakeholder confidence.
The Taskforce on Nature-related Financial Disclosures could soon feed into a new International Financial Reporting Standards Sustainability Disclosure Standard, potentially IFRS S3, mirroring how climate disclosures were integrated into IFRS S2.
If adopted, nature risk reporting would become a regulatory expectation rather than a voluntary practice.
Biodiversity Credits and Policy Signals
Biodiversity credits are emerging as a hot topic for companies in forestry, land and agriculture, George said, noting rising interest ahead of the United Nations Convention on Biological Diversity summit in October 2026.
Malaysia’s 13th Development Plan sets out measures including forest carbon offset programs, conservation certificates and blue carbon projects, signaling the government intent to protect biodiversity and coastal ecosystems.
“The level of proactivity expressed by business leaders and their desire for practical next steps is striking,” George said. “Financial institutions, in particular, are asking how they can integrate both nature and climate risks into their reporting frameworks.”
Practical Checklist for Businesses
George outlined five steps companies can use to turn nature-related risks into opportunities: assess dependencies on ecosystems, assign clear responsibility across leadership and boards, measure and manage relevant indicators, set science-based targets, and communicate transparently.
Tools such as the Integrated Biodiversity Assessment Tool, the ENCORE platform and environmental DNA sampling can help quantify dependencies and inform strategies, she said.
Clear disclosure under the TNFD’s governance, strategy, risk management, and metrics-and-targets framework would help companies avoid accusations of greenwashing and align with global standards, such as those from the International Sustainability Standards Board and the European Union’s Corporate Sustainability Reporting Directive.
George said firms that embed nature into their long-term strategies stand to gain an edge by securing supply chains, building investor trust and staying ahead of regulations.
“Companies that act now on nature risks in partnership with stakeholders, invest in meaningful data and communicate with transparency won’t just stay ahead of regulations—they’ll stay ahead in the market,” she wrote.
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