Many Indigenous communities believe that true wisdom comes from nature. At the most recent Conference of the Parties to the Convention on Biological Diversity (COP 16), the United Nations (UN) took the first step in putting a price on that wisdom. Countries at the UN COP16 agreed on a deal requiring companies in sectors such as pharmaceuticals and beauty to pay for the use of genetic information derived from biodiversity in their research and development efforts. The initiative has the potential to generate billions of dollars for nature conservation, with funds directed to support Indigenous peoples and local communities.

The global conference, which took place in Cali, Columbia, from October 21 to November 1, 2024, had representatives from nearly 200 countries in attendance. The goal of COP 16 was to advance progress toward the 23 targets set for 2030 in the 2022 Kunming-Montreal Global Biodiversity Framework (KMGBF), which aims to halt the rapid decline of nature by 2030.

​​Delegates at COP 16 implemented a multilateral mechanism, including a global fund, to ensure that benefits from the use of genetic data from nature are shared more fairly and equitably. In the beauty industry, genetic data—also known as digital sequence information (DSI)—is used to develop new ingredients and formulations. The agricultural and pharmaceutical industries also derive commercial benefits from DSI, utilizing it to create new medicines, like the Covid-19 vaccine, and innovative food options, such as nutrient-enriched rice.

The deal requires large companies and other major entities benefiting commercially from DSI uses to contribute to The Cali Fund. This fund will support biodiversity initiatives worldwide and provide resources for developing countries, as well as Indigenous peoples and local communities. Contributions will be based on a percentage of each company’s profits or revenues. The agreement aims to target larger companies most reliant on DSI and contains an exemption for academic, public research institutions, and other entities using DSI but not directly benefiting from it. Qualifying companies will be expected to contribute 0.1% of their revenue or 1% of their profits, according to the text approved at the summit.

"The clear signal sent by COP 16 today is that large corporations must pay back their dues for nature protection," Glenn Walker, head of the nature program at Greenpeace Australia Pacific, said in a statement.

The deal followed an agreement at COP 16 to establish a permanent body allowing Indigenous and local communities to officially consult on UN conservation decisions. The group also acknowledged the role of people of African descent in conservation discussions. The agreement aims to strengthen the role of Indigenous peoples and local communities in biodiversity efforts. Most of the funding will support the needs of Indigenous communities in developing countries, including women and children, with additional funds allocated for capacity building and technology transfer. The remaining funds will go toward implementing the KMGBF.

“From Cali, this UN Biodiversity Conference sent a powerful call to action,” Astrid Schomaker, Executive Secretary of the Convention on Biological Diversity (CBD), said in a statement. “It has never been clearer that the implementation of the Kunming-Montreal Global Biodiversity Framework and the Paris Agreement in a synergistic fashion will make peace with nature within reach.”

The summit also addressed the benefits and risks of synthetic biology, a specialized area within biotechnology focused on engineering biology at the molecular level to create novel organisms or functions. To promote equitable participation from developing countries in synthetic biology, COP 16 committed to introducing an action plan that will support capacity-building, technology transfer, and knowledge-sharing for all countries, as well as Indigenous peoples and local communities. By helping countries evaluate and implement synthetic biology technologies, COP 16 aims to encourage innovation while safeguarding biodiversity. With the beauty industry’s focus increasingly leveraging biotechnology to more sustainably or efficiently reproduce or improve ingredients, COP 16’s exploration into the benefits and risks of synthetic biology could have wide-reaching implications.

This isn’t the first UN summit to adopt initiatives impacting the beauty industry. Earlier this year, the Conference of the Parties to the Minamata Convention on Mercury (COP 5) decided to ban the use of mercury in cosmetics starting in 2025.