No Business without Nature
“Why do we need to expand our focus from climate to include water and biodiversity?”
“Are my investors and regulators looking into nature at all?”
“Which part of my supply chain is dependent on nature and how can I understand my related risks?”
“TNFD, SBTN, LEAP… What can I practically do now to navigate the acronym jungle for nature?”
These and similar concerns are weighing heavily on the minds of sustainability and business leaders, and increasingly, they are the questions that C-suite executives must be prepared to answer. Our article explores why nature and biodiversity are relevant for businesses, how the evolving policy landscape is shaping action for nature, and what companies can do now to mitigate growing nature-related risks. After all, there is no business without nature.
The crisis is real, and it is affecting your bottom line
The numbers are staggering. Since 1970, global wildlife populations have declined by an average of 73% (WWF, 2024). But it is not just an environmental tragedy, it is also a business crisis. 85% of the world’s largest companies have notable dependencies on natural resources and ecosystem services (S&P, 2023). Consider the essential services nature provides that your business relies on daily. For example, textile manufacturers depend on freshwater supply for production and dyeing processes, while food companies depend on soil formation and pollination to secure crop yield and ensure volume and pricestability.
Ecosystem services are not luxuries; they are operational necessities. The World Economic Forum’s 2026 Global Risks Report ranked biodiversity loss and ecosystem collapse as the second most severe risk for the economy over the next decade. These risks manifest in various forms, including:
- Physical risks: acute risks such as wildfires or oil spills and chronic risks such as pollinator loss or freshwater scarcity
- Transition risks: policy shifts and evolving consumer expectations towards nature-positive products and services
The growing global momentum that shapes the policy and regulatory landscape
Nature and biodiversity are gaining significant global momentum, following a trajectory similar to how climate has risen on the corporate priority agenda over the past 5 to 10 years.
Comparable to the Paris Agreement for climate, a similar agreement for biodiversity was adopted by 196 countries in December 2022: The Kunming-Montreal Global Biodiversity Framework. Often referred to as the Global Biodiversity Framework (GBF), its primary objective is to halt and reverse nature loss by 2030. Target 15 of the GBF outlines the role of businesses and financial institutions in tackling nature loss. This requires large companies to assess, monitor, and disclose their impacts and dependencies on nature, with the 196 governments implementing and reinforcing the required local frameworks by 2030.
Since this landmark agreement, a number of mandatory and voluntary frameworks have emerged to support organisations in structuring their nature-related assessments:
The climate-nature nexus: a dual opportunity
Climate and nature loss are not isolated crises; they are interconnected challenges that demand synergistic solutions.
Natural Climate Solutions (NCS), such as reforestation, wetland restoration, and regenerative agriculture, can provide up to one-third of the cost-effective climate mitigation required by 2030 to meet Paris Agreement goals. Yet, their value extends far beyond carbon reduction:
- Strengthened food security through more resilient agricultural systems
- Better water quality from restored ecosystems
- Cleaner air from healthy forests and wetlands
- Enhanced community resilience in vulnerable regions
Moreover, NCS currently cost less than many technological alternatives, such as carbon capture and storage. Incoporating these solutions into your company’s decarbonisation pathway is not only environmentally responsible but also makes a strong business case.
What it means for your business – actionable first steps for nature
How can your business begin its journey towards integrating nature into its strategy? We recommend the following steps:
Throughout all the steps, ensure continuous internal stakeholder engagement with C-suite and relevant corporate functions (e.g., procurement, risk) and externally with suppliers, investors and local communities, where appropriate.
Various technology solutions are available to support your nature assessment
One of the biggest challenges companies face when developing robust nature assessments is the lack of supply chain transparency. However, this should not be a reason to delay action. You can begin the assessment related to your own sites and tier 1 suppliers, where you have geolocation data available. Below is a non-exhaustive list of useful tools to support your nature-related assessments. Refer to the TNFD Tools Catalogue for further nature-related data tools available on the market.
For further assessments beyond tier-1 suppliers, you can also leverage AI-enabled technological solutions to enhance supply chain visibility. Examples include Deloitte’s SupplyHorizon and EXIOBASE tools.
If you would like to explore this topic more, whether you are just beginning to understand nature-related risks or already have a defined nature program in place, we are here to help you navigate this transition.
Dr. PD Bastien Girod
