COP16’s Cali Fund: a turning point in corporate accountability for nature?
The recent COP16 summit in Cali, Colombia, introduced a major breakthrough in corporate responsibility for nature conservation: the Cali Fund. This initiative represents a crucial shift in how industries are expected to interact with and support the ecosystems that fuel their business operations. In this blog, we explore what the Cali Fund is in greater detail and explain how its significance acts as a marker for bringing corporates closer to nature.
Understanding Digital Sequence Information (DSI) and its importance
Digital Sequence Information (DSI) refers to the genetic data extracted from biological organisms, including DNA and RNA sequences. This data is instrumental across various industries. For instance, pharmaceutical companies can study genetic sequences from tropical plants to develop new medicines, while agricultural companies analyse gene sequences to produce crop strains that are more resilient to environmental challenges. Advances in sequencing technologies allow companies to access and use these natural adaptations for human benefit without directly interacting with the organisms themselves.
One example of DSI in action is the use of genetic sequences from Taxus brevifolia, the Pacific yew tree, which contains compounds critical for producing the cancer drug paclitaxel (Taxol). By mapping and replicating the genetic information of this tree, pharmaceutical companies can now synthetically manufacture paclitaxel in labs without harvesting large amounts of the slow-growing yew tree, thereby protecting this natural resource while making cancer treatments more widely available.
In agriculture, genetic sequences from wild wheat relatives have been analysed to develop modern wheat strains that are resistant to wheat rust—a fungal disease that has historically devastated crops. By studying the genetic makeup of these wild relatives, scientists have introduced rust-resistant genes into commercial wheat varieties, creating more resilient crops that require fewer chemical treatments and can better withstand shifting climate conditions.
The skincare industry also benefits from DSI by leveraging genetic information from marine organisms such as certain algae species, known for their antioxidant and skin-rejuvenating properties. By identifying and synthesising these beneficial compounds in labs, skincare companies can develop products with similar benefits without harvesting large amounts of these marine organisms, which are vital for ocean ecosystems.
However, while these innovations offer clear benefits, they also raise important questions about equitable access and fair compensation. In many cases, the genetic data originates in biodiversity-rich but economically disadvantaged regions, which may not see any share of the profits derived from their resources. The DSI framework, or Cali Fund, aims to address this inequity by ensuring that companies profiting from genetic information contribute to biodiversity conservation and support the communities from which these resources are sourced.
The Cali Fund: channeling profits back into conservation
The Cali Fund acts as the financial mechanism by which companies contribute to biodiversity conservation based on their use of DSI. Essentially, industries that use genetic information from plants, animals, or microbes to develop products or technologies will contribute a portion of their revenue or profits to the fund. This fund then redistributes these resources to conservation initiatives, particularly in biodiversity-rich but economically constrained regions. The Cali Fund directly links corporate profits to biodiversity conservation in high-need areas.
This approach could be especially impactful in sectors like pharmaceuticals, cosmetics, and agriculture, where genetic resources play a fundamental role. For example, a cosmetic company might use genetic sequences from native Amazonian plants to develop skincare products. Under the DSI framework, that company would contribute to the Cali Fund, supporting the very ecosystem that supplied its innovation.
Creating a broader movement toward accountability
Nearly $44 trillion of economic value generation—or about half of global GDP—depends on nature and its services. By requiring companies to acknowledge and compensate for their use of natural genetic resources, these initiatives set a new standard for corporate accountability that extends beyond financial gain. This framework could inspire accountability across other industries, creating a more reciprocal relationship with nature.
Indeed it is this reciprocity that we encourage our corporate clients at Climate Pursuits to embrace. Our retreats immerse teams in nature-based locations, creating a first-hand understanding of why nature and biodiversity is invaluable, inextricably linked to their business and must therefore be protected.
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