Nature has an intrinsic value and is also essential for the benefits it provides to people and society. It supports biodiversity, which is crucial for ecosystem resilience and adaptability. Additionally, nature underpins every business, industry, and sector, directly or indirectly. Therefore, the ongoing loss of natural biodiversity poses a profound risk to all businesses everywhere.  

The World Economic Forum categorizes biodiversity loss as a ‘fat-tail’ risk which, once triggered, will have cascading implications for all businesses in both the short-and-long term. The protection and restoration of biodiversity must become an essential priority for the business community. 

Here are three reasons why integrating nature into business is a smart and strategic move: 

Poised for action 

Businesses are now better equipped than ever to incorporate nature-based strategies. With technological advancements, heightened environmental awareness, and consumer demand for sustainability, companies can leverage these favourable conditions to implement practices that benefit both their operations and the planet. 

While businesses have contributed to environmental challenges, they are also uniquely positioned to drive and implement solutions. Unlike governments, which require time to formulate targets and pass legislation, businesses can act swiftly and adaptively. Serving as innovation hubs, businesses can pool together funds, technology, people and creative ideas to address the impact on nature and biodiversity. 

Today’s businesses are more connected and interconnected than ever before. They can share best practices instantly, respond rapidly, and collaborate to implement solutions together as they continuously evolve to meet the environmental expectations of new consumers and clients.  

• Optimize resource use: By working with nature in a coordinated way, rather than depleting it, businesses can optimize the use of resources such as energy and water, which can help address societal, economic, and environmental issues. This can also lead to innovative processes, new products and cost reductions. 

• Cost-effective solutions: Nature-based solutions can be more cost-effective compared to traditional methods. These solutions are particularly appealing to the growing pool of consumers who carefully consider environmental implications before making spending decisions.  

• Attract investors: Implementing strategies and practices that mitigate environmental impact and enhance natural ecosystems attracts discerning investors. This opens access to capital that might have previously been out of reach, as more investors seek to support sustainable and responsible businesses. 

To effectively address biodiversity loss, businesses must understand and align with both regulatory and voluntary frameworks. One of the objectives of the Kunming-Montreal Global Biodiversity Framework, adopted at COP15, is to halt and reverse biodiversity loss. A specific 2030 target encourages businesses to assess and disclose their risks, dependencies, and impacts on biodiversity, and to promote sustainable consumption patterns. Many countries and regions, including Australia, Canada, the European Union, and the United Kingdom, are passing ambitious legislation to protect and restore natural biodiversity. Each government will shape its own legislation, but all will prioritize four overarching goals:   

• To increase the number and size of protected areas. 

• To increase requirements for the restoration of biodiversity. 

• To shift finance and subsidies toward nature-positive activities. 

• To increase scrutiny on the impact businesses have on nature. 

In addition to regulatory frameworks, voluntary initiatives like the Science-based Targets Network (SBTN) and the Taskforce for Nature-related Financial Disclosure (TNFD) play a crucial role. The SBTN provides guidance for setting targets for nature, helping organizations align their environmental goals with the latest scientific understanding. The TNFD, which helps organizations identify, assess, and disclose nature-related risks and opportunities, has a different focus: the impacts and dependencies a business has on nature, highlighting potential threats and opportunities. 

By aligning with these frameworks, businesses can not only comply with emerging regulations but also demonstrate leadership in sustainability. This proactive approach can enhance their reputation, attract investment, and open new revenue streams, making the business case for reversing biodiversity loss even stronger. 

Businesses can no longer ignore the implications of their operations on the loss of biodiversity. Boosting the recovery of biodiversity and natural capital has the potential to be a net gain for the business community. The protection and enhancement of biodiversity has become an essential priority, and a potential net gain, for today’s future-minded companies. 

About the authors 

Patrick Lafrance:

Patrick Lafrance is National Vice-President – Ecology and Environmental Impact assessment for WSP Canada. He is a biologist specialized in aquatic environments with more than 22 years in environmental consultations. He supports the implementation of WSP’s strategy in Earth & Environment across Canada and Internationally and is involved with clients looking for advice and solutions to develop sustainable project having nature-positive outcomes. 

María Luz Farah: 

Civil Engineer and Master in Sustainability with more than 18 years of experience in sustainability and climate change advisory. María Luz leads WSP Chile’s climate change services for the public sector and private companies, as well as international cooperation, in the mining, energy, industry, financial, agricultural and waste sectors in Latin America, supporting clients in their sustainable solutions and strategies.