Nature and biodiversity

Sustainability assurance

Nature is the foundation of our global economy, providing essential ecosystem services such as clean water, fertile soils, healthy oceans, climate regulation and pollination that underpin the world’s food systems, energy production, industrial processes and more. The loss of biodiversity and the degradation of natural ecosystems is no longer just an environmental issue—it is a growing financial and business risk.

In the Asia Pacific region, the stakes are particularly high. Our research shows that 53% of the region’s economic output (GVA) and 58% of the combined market capitalisation of Asia Pacific stock exchanges are highly or moderately dependent on nature.

The situation in Malaysia mirrors this regional trend. 54% of Bursa Malaysia’s market capitalisation, valued at US$199 billion, comes from companies in sectors with high to moderate nature dependence—often the agriculture and energy sectors, which are vital to the country’s economy.

Nature loss poses immediate and material risks to businesses, investors and supply chains. From disruptions in resource availability to increased operational costs, regulatory exposure and reputational impacts, the implications of ignoring nature-related risks are significant. At the same time, protecting and restoring nature presents a US$10 trillion economic opportunity through solutions that support nature-positive growth, innovation and resilience.

Nature and biodiversity are no longer peripheral concerns. They are directly tied to long-term business viability, market stability and global efforts to build sustainable, resilient economies.

Here’s how we can help

No-deforestation risk assessment, due diligence and support for compliance 

Our services include:

  • Compiling and assessing key data to support compliance with the EU Deforestation Regulation (EUDR)—covering production, traceability, supply chain complexity, deforestation risk, indigenous rights and governance
  • Conducting gap assessments of supply chain systems, traceability processes and supplier mapping to identify compliance risks and improvement areas
  • Reviewing and strengthening no-deforestation policies and procedures, including commitments, grievance mechanisms, certification schemes and forest conservation or restoration efforts
  • Developing supplier due diligence frameworks and verification approaches, including internal audits and third-party assessments to ensure alignment with the EUDR, the Science Based Targets initiative (SBTi) Forest, Land and Agriculture (FLAG) guidance and broader ESG or nature-related frameworks
  • Providing actionable recommendations to close policy and compliance gaps to enhance alignment with evolving regulatory and sustainability expectations

Nature-related reporting and disclosure

Our services include:

  • Assessing maturity and identifying gaps in nature-related disclosures against leading nature and biodiversity reporting frameworks
  • Conducting geospatial analysis of operational sites to evaluate interactions with nature and sensitive ecosystems, including direct and indirect impacts
  • Analysing nature-related impacts and dependencies using pathway analysis and materiality heatmaps to inform business strategy and risk management
  • Evaluating nature-related impacts, risks, opportunities and potential financial implications to support informed decision-making
  • Developing tailored metrics and disclosure roadmaps to integrate nature into corporate sustainability and ESG reporting

Nature-based Solutions (NbS) for FLAG-related emission removals

Our services include:

  • Identifying opportunities for FLAG nature-based solutions, including carbon removal, biodiversity conservation and project certification feasibility
  • Developing phased implementation plans to scale NbS initiatives aligned with net zero targets, FLAG guidance and broader sustainability goals

Nature positive strategy and biodiversity assessment  

Our services include:

  • Establishing or reviewing nature-related commitments and strategies aligned with global frameworks and industry best practices
  • Benchmarking nature and biodiversity strategies against peers to identify gaps and opportunities for leadership
  • Developing nature positive strategies, biodiversity management plans and/or no-deforestation procedures to support measurable outcomes
  • Conducting biodiversity assessments—including desktop reviews, site visits, spatial analysis and identification of critical biodiversity areas and species of conservation interest (rare, threatened and endemic)—to ensure inform alignment with Science Based Targets for Nature (SBTN) and biodiversity-positive targets
  • Assessing biodiversity-related risks and opportunities to guide actions that enhance ecological outcomes and support strategic decision-making

Explore related case studies

Global agribusiness and food processing company

Challenges: As part of their evolving sustainability strategy, the client, who had extensive, global plantation operations, ought to strengthen their climate and nature-related assessments and disclosures. While climate risk disclosures were already underway, the client wanted to build on this foundation by identifying nature-related risks and opportunities in alignment with the Taskforce on Nature-related Financial Disclosures (TNFD). The client also intended to upskill their internal teams and enhance the integration of nature into their sustainability reporting.

Solution: We conducted an assessment that included a quantitative climate scenario analysis aligned with the Taskforce on Climate-related Financial Disclosures (TCFD) and a qualitative TNFD assessment. We delivered a TNFD Assessment Report, encompassing impact and dependency pathways, a materiality heat map for nature-related risks and opportunities and impact pathways for material issues. We also supported the development of a three-year TNFD disclosure roadmap and reviewed the client’s climate and nature reporting storyboards. In parallel, we conducted capacity-building workshops to upskill their employees on nature and climate reporting practices.  

Results: The client gained greater visibility over its nature-related impacts, dependencies, risk and opportunities, coupled with a structured roadmap to progressively align with TNFD recommendations. The project enabled a more coherent integration of climate and nature considerations into corporate strategy, risk management and external reporting.

Global oleochemical producer

Challenge: In preparation for the EUDR, the client sought a comprehensive understanding of deforestation-related risks across key sourcing countries in Asia, Africa, and Latin America. The aim was to equip the client with risk information for each country to support their supply chain due diligence and risk assessment in line with Articles 9 and 10 of the EUDR.

Solution: We conducted research and compiled country-level information on EUDR-related risk topics to support the company’s supply chain risk assessments and ensure compliance with Articles 9 and 10 of the EUDR. The analysis covered a range of critical risk factors such as palm sector dynamics, forest presence, indigenous land rights, deforestation trends, legal frameworks, socioeconomic conditions and sustainability certifications. 

Results: The client gained an overview of EUDR-related risks across their essential sourcing countries, which provided clarity on deforestation exposure, legal and social contexts and sustainability challenges. The insight established a foundation for conducting due diligence and risk assessments and for developing a risk mitigation plan in compliance with Articles 9, 10 and 11 of the EUDR.

Asia procurement arm of a global retailer based in the EU

Challenge: The client—a regional procurement hub for a large multinational retailer—sought to establish a supplier due diligence process tailored to EUDR requirements. The objective was to ensure that all relevant products sourced from Asia were assessed for compliance with the regulation, and to equip the procurement team with the necessary tools and knowledge for effective implementation.

Solution: We supported the development of an EUDR-specific supplier due diligence framework. This included identifying all products in scope, designing due diligence criteria and verification protocols and establishing a supplier assessment approach aligned with Articles 9 and 10 of the EUDR. We also developed and delivered tailored training materials to build internal capacity and enable the effective rollout of the due diligence process across the procurement function.

Results: The client now has a structured and actionable supplier due diligence system aligned with EUDR requirements. Procurement teams are equipped with the knowledge and tools to assess product compliance and engage suppliers, strengthening the company’s readiness ahead of the regulation’s enforcement.

Australian retail and consumer services chain

Challenges: The client aimed to strengthen their deforestation-free commitments across key commodities and sought an independent assessment of their readiness. They required an evaluation of the credibility and robustness of their no-deforestation commitments, implementation plans and alignment with industry best practices.

Solution: We assessed the client’s planned deforestation-free claims and implementation approach for the selected commodities. Leveraging our team of subject matter experts, we evaluated the processes and controls supporting the no-deforestation commitments and provided observations on their level of alignment with global best practices and emerging regulatory expectations.

Results: The client received an independent assessment and expert recommendations that informed refinements to their deforestation-free strategy.

Natural capital asset management company

Challenges: The client sought to evaluate and scale initiatives aimed at protecting and restoring natural landscapes and supporting forest-dependent communities, particularly in regions linked to agricultural commodity production. To do so, the client required a comprehensive assessment of NbS and Community Carbon Buffer (CCB) opportunities, along with an understanding of relevant policy, landscape and stakeholder considerations.  

Solution: We conducted an integrated assessment of NbS and CCB potential across targeted landscapes. This included stakeholder mapping, policy and regulatory alignment review, and a Geographic Information System (GIS)-based spatial analysis to identify key ecological features, land-use patterns, and conservation opportunities. A core part of the engagement involved consultations with landowners—government, private, and community—alongside analysis of local socioeconomic dynamics, biodiversity value and land-use practices to inform sustainable and inclusive implementation pathways. 

Results: The client received a clear understanding of the opportunities and challenges for implementing NbS and CCB initiatives within the target landscapes. The outputs provided actionable insights for engaging key stakeholders, aligning with relevant policies and integrating biodiversity and community-focused outcomes into the broader land-use strategy. 

Leading global integrated palm oil company

Challenges: As part of their net zero journey, the client aimed to formalise their decarbonisation commitments and identify FLAG-aligned NbS as key levers to achieve greenhouse gas (GHG) emissions reduction targets. To support this, the client required a structured approach to evaluate NbS opportunities and integrate them into their broader decarbonisation strategy. 

Solution: We supported the client in identifying and planning FLAG NbS initiatives by conducting scoping, regulatory and policy reviews, and stakeholder analysis. Using the International Union for Conservation of Nature (IUCN) NbS principles as a reference, we evaluated undeveloped and conservation areas within the client’s landbank, assessed carbon removal potential and explored relevant certification options. We developed a phased implementation plan , outlining short-, medium- and long-term actions based on effort and priority to guide the launch and scaling of NbS initiatives aligned with the client’s net zero and sustainability goals.

Results: The client received a report detailing a list of potential NbS projects and a phased implementation action plan, enabling the integration of carbon removals and biodiversity outcomes into their net zero strategy.

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Perpetua George

Perpetua George

Director, Sustainability and Climate Change, Nature Lead, PwC Malaysia

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