CMA

66 increase business costs, undermine the viability of existing products or services, or affect asset values. Another biodiversity extinction risk for companies is the potential liability for emitting greenhouse gases (GHG) sequestration and other polluting gases. An increasing number of legal cases have been brought directly against companies and utilities in recent years, holding them accountable for the damaging effects of biodiversity extinction. Biodiversity management also offers business opportunities which are as • Companies can aim to improve their resource productivity (for example by increasing energy efficiency by utilizing biomass), thereby reducing their costs. flora and fauna associated with agricultural lands (e.g., grassland and scrub land plants, birds, and wild pollinating insects). Over harvesting / Over exploitation: Over harvesting has a great effect on biodiversity and often occurs with habitat loss, as removal of an organism from its environment can have irreversible impacts on the environment itself. Humans have historically exploited plant and animal species to maximize short-term profit, at the expense of sustainability of the species or population. The unsustainability of biological resource extraction is rooted in three main problems 1. Too many people who want the resource 2. Short-term return on investment goals of extractors 3. Lack of information about the ecology and life histories of populations being harvested. Over exploitation follows a predictable pattern: initially, a species harvested from the wild can provide a substantial profit, which encourages more extraction and leads to the development of more large-scale and cost-effective methods of harvesting the species, which eventually depletes the resource. Quota systems are often put in place, leading to more competition, decreased earnings and the need for government subsidies to support the extraction industry. The fishing industry, the logging industry, and grazing of cattle on public lands have all been examples of this process of over exploitation. When the rate of increase in demand for the resource far outstrips the reproductive rate of the population, demand outstrips supply, and drives the value of that resource higher, increasing the incentive to extract the resource, and eventually leading to the collapse of the population. The results for the resource are population crashes, which can ultimately lead to global extinction. Role of cement industries There are various impacts of biodiversity loss on business, it creates a series of new business risks. Together, these actions can foster competitiveness and unlock new market opportunities. Besides the most obvious risks (for example, the operational impacts due to regulatory non- compliances, or supply shortages caused by water scarcity), companies are exposed to transition risks which arise from society’s response to biodiversity extinction- market conditions and regulation that can