Biodiversity in Finnish business strategy – Reactions to EU regulation proposals and COP15
Loading...
URL
Journal Title
Journal ISSN
Volume Title
School of Business |
Master's thesis
Unless otherwise stated, all rights belong to the author. You may download, display and print this publication for Your own personal use. Commercial use is prohibited.
Authors
Date
2023
Department
Major/Subject
Mcode
Degree programme
Management and International Business (MIB)
Language
en
Pages
100 + 12
Series
Abstract
This thesis studies Finnish company reactions to recently announced biodiversity-related regulations. The loss of biodiversity, mass extinction of living animals, plants and organisms, is one of the greatest threats to society. Among others, main causes are business-driven exploitation of natural resources and the expansion into ecosystems. As previous attempts to halt this development have failed, the European Union and United Nations Conference of the Parties on biodiversity (COP15) have proposed new, ambitious regulations which will see up to 30% of land and sea protected or restored. Compliance with these goals will be legally binding on national levels for the first time, forcing Finnish businesses to adjust their sustainability strategies soon. The objective of this study is to add to the under-researched but growing academic field about the role of biodiversity in sustainability & business strategy. Furthermore, it provides the government and companies of Finland with an overview of the overall reception and initiated actions regarding the upcoming regulations. Additionally, this thesis aims toincrease public visibility of the biodiversity crisis, as it affects all of society. To facilitate these objectives, I conducted a comparative multiple case study of 11 businesses in Finland,supported by input from one industry insider. I identify their past & current involvement with the biodiversity topic, categorize them within three archetypical response clusters and share company thoughts on the upcoming regulations. Theoretical framing of previous reactions and prediction of future developments in the field is achieved by utilizing Matten & Moon´s 2008 & 2020 works on the relationship between institutions and business corporate social responsibility (CSR). Analysis of primary and secondary data clearly shows that most Finnish companies have not yet made biodiversity a concern of their strategies – they also do not exhibit sound reactions or knowledge regarding the upcoming regulations. Two reasons causing this situation have been identified: Firstly, EU processes for introduction of new laws are considered too slow and impaired by political uncertainty. This causes a fear of sunk costs, halting any early adoption of compliant strategies. Furthermore, thenumber of new laws induces regulatory fatigue in companies and employees. Secondly, biodiversity is still overshadowed by other topics such as CO2 emissions in the public and corporate discourse. Most case companies consequently do not have policies regarding biodiversity and instead plan to leverage their existing strategies such as the United Nations Sustainable Development Goals (SDGs) or Circularity. Hence, biodiversity concerns are commonly incorporated under the larger umbrella of corporate sustainability. Finnish companies are, however, cautiously optimistic regarding the upcoming regulations due to their existing leadership in sustainability, increased collaboration with stakeholders, intensified efforts to establish a circular economy and shortened supply chains which allow for increased transparency & control. The theoretical analysis suggests that the pressure to change strategies is not intense enough yet. Nevertheless, Finnish companies will most likely adapt to new regulations as soon as their full extent is known in order to defend their competitive advantage as leaders in sustainability. Widespread and forthcoming adoption of biodiversity related company strategies and policies is key to halt further loss of nature and avoid a biological catastrophe.Description
Thesis advisor
Rintamäki, JukkaKeywords
biodiversity, sustainability, business strategy, regulation, EU 2030 biodiversity strategy, corporate social responsbility