Nature is the fundamental building block of human society. Everything we do, have, and build depends on or derives from nature somewhere along the supply chain. Every sector and industry sector relies on nature either directly or indirectly in the course of business activities. Thus, nature is the cornerstone of both global health and sustainable economic development and is critical to business continuity.
Given nature’s profound importance to the global economy, business must take steps to understand the nature-related risks and impacts of their operations. The World Economic Forum considers biodiversity loss as one of the top five economic risks of the next ten years. The depletion of natural capital and loss of biodiversity will increase operational costs, reduce crop yields, and worsen supply chain disruptions, all of which has serious implications for global socio-economic stability.
Businesses can lead the change
Just as businesses benefit from nature, they must also play a significant role in reducing and reversing human impact on biodiversity. Integrating nature-positive business strategies and practices is key to eliminating damage and better managing nature-related risks and opportunities.
To be nature-positive is more than simply avoiding or mitigating harmful impacts to our natural ecosystems. A nature-positive approach protects, replenishes, and sustainably manages the world’s biodiversity and natural capital.
The benefits of nature-positive businesses
Adopting nature-positive strategies is not only an ethical choice but also a sound business decision with measurable financial benefits. Nature positive businesses are better equipped to handle impacts, navigate risks, and identify opportunities. Key areas where nature-positive practices align with financial objectives include:
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Brand Reputation: Nature-positive businesses attract top talent, build a strong brand image, and are well-positioned for sustained success.
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Compliance: As reporting legislation unrolls around the world, nature-positive choices help companies benefit from subsidies and tax incentives in addition to avoiding fines and penalties.
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Operational efficiency: Renewable energy sources lower costs and emissions, while sustainable supply chain management reduces waste and enhances resource efficiency, bolstering the circular economy.
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Investor Standing: Today’s investors pay close attention to ecological decision-making. Nature-positive businesses have increased access to capital and stronger shareholder relationships.
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Regeneration: By actively contributing to the improvement and regeneration of natural resources, nature-positive businesses are able to unlock previously overlooked opportunities for nature-related services and product innovation.
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Resilience: Making full use of innovative and eco-sustainable solutions, nature-positive businesses can leverage their increased connection to the natural environment to avoid, mitigate and recover from adverse events.
The need to take action
At COP15, The UN Biodiversity Conference of December 2022, 196 countries adopted the Kunming-Montreal Global Biodiversity Framework (GBF), a plan to halt the loss of natural biodiversity and put the world on a path to recovery by 2030.
Along with concentrated efforts to reduce greenhouse gas emissions, legislative bodies around the world are beginning to require nature-related financial disclosures. The Taskforce on Nature-Related Financial Disclosures (TNFD) has developed guidance and recommendations to help businesses assess, report, and act on their nature-related dependencies, impacts, opportunities, and risks. It’s the first step to transforming business as we know it into a nature-positive, net-zero economy.
Adopting the TNFD framework can help companies and industries align their nature-related goals, risks, and opportunities. It should open up a new way of looking at companies’ dependencies, provide for better performance, and enhance reputation. It will enable better sustainable development investment choices and foster stronger stakeholder trust. This will position your organization ahead of the curve and ready for the next cycle of stakeholder expectations.
