How To Make Enterprise and Biodiversity Work for Your Operations

When most companies take into consideration sustainability, emission footprints and power are likely to dominate the dialog. However there’s one other crucial aspect that’s usually missed—biodiversity. From uncooked supplies to ecosystem providers that help agriculture and manufacturing, biodiversity underpins the worldwide financial system in methods we hardly ever see—till it’s gone. In response to PwC, over half of worldwide GDP—$58 trillion—is reasonably or extremely depending on nature. But biodiversity is quickly shrinking. The United Nations (UN) stories that pure ecosystems have misplaced 47% of their unique dimension and situation, and one in 4 species faces extinction. This isn’t a distant future state of affairs, however a disaster unfolding earlier than us. As biodiversity declines, so does the resilience of the methods companies depend on. That’s why forward-thinking firms are weaving biodiversity into their core methods—not simply as a sustainability aim however as a enterprise crucial.

“Biodiversity impacts everybody. Now biodiversity loss will turn into a chief concern for all companies, specifically these with far-reaching provide chains that considerably depend upon, and have accountability for, nature impacts.”

Lars Tappert
Biodiversity Supervisor at Ramboll Germany

Understanding the position of pure capital and biodiversity in enterprise

S&P analysis discovered that 85% of the biggest firms rely closely on nature for his or her operations. However what does that imply? Whereas pure capital and biodiversity are intently associated—and each confer with the pure sources that companies depend upon—they aren’t the identical. Understanding the excellence is essential to constructing extra modern, holistic sustainability methods. Right here’s a fast breakdown:

What’s pure capital?

Pure capital is the world’s inventory of pure belongings, similar to air, water, soil, forests, oceans, and all residing organisms that present useful providers to society. Examples of those “ecosystem providers” embody:

• Pollination: Important for one-third of worldwide meals manufacturing, together with crops like espresso, cocoa, and almonds. 
• Water purification: Wetlands and forests filter pollution and recharge aquifers.
• Local weather regulation: Ecosystems similar to mangroves, forests, and coastal marshes retailer carbon and scale back flooding.
• Uncooked supplies: Many uncooked supplies are derived from nature, similar to wooden, meals, drugs, and genetic sources important for agriculture and biotechnology innovation.

For an in depth chart highlighting the ecosystem providers supplied by pure capital, go to the Biodiversity and Enterprise report by VBDO and PwC.

What’s biodiversity?

Biodiversity is the number of life that powers ecosystem providers—it’s the engine that retains pure capital operating. It contains the variety of species, habitats, and genetics that work collectively to create and preserve wholesome ecosystems. With out biodiversity, pure methods can’t perform correctly. For instance, crop yields drop with out various pollinators, and single-species forests are extra susceptible to pests and local weather impacts. Monoculture plantations, like these for palm oil, additionally fail to help a variety of life, limiting the ecosystem providers they will present. Lastly, agriculture is determined by wholesome soils, which require microbial variety. 

Why biodiversity loss is a enterprise danger

Some industries—like agriculture, power, and mining—straight depend upon wholesome ecosystems to function. Others, similar to chemical substances or retail, could seem much less linked to nature, however their provide chains are nonetheless susceptible when ecosystems break down. For instance, in six industries the place lower than 15% of their direct gross worth added (GVA) is extremely depending on nature, greater than 50% of their provide chain’s GVA depends closely or reasonably on nature. 

Industries most in danger

As pure methods decline, companies throughout many sectors face rising prices and elevated dangers. For instance:

April 21, 2025

Is ESG lifeless? From massive guarantees to actual outcomes.

Local weather Motion, Sustainability

• Meals and beverage firms face provide volatility as a consequence of declining pollinators, ecosystem degradation, and species loss.
• Style and attire manufacturers reliant on cotton or forest fibers face reputational and materials dangers as a consequence of land degradation.
• Most industries are susceptible to provide chain disruptions and better insurance coverage prices from excessive climate and pure disasters.
• Monetary establishments are being requested to evaluate nature-related dangers of their portfolios.

The sectors most impacted are detailed in a chart, which will be discovered within the report “Biodiversity and Enterprise” by VBDO and PwC. 

Navigating nature’s decline: 4 crucial enterprise dangers

When the pure world suffers, companies really feel the affect too. Provides develop scarce. Prices rise. Stakeholders demand extra accountable practices. These rising pressures expose firms to 4 main sorts of danger. Some present up shortly, and others construct over time, however all of those can have an effect on an organization’s backside line. Right here’s what to look at for when pure ecosystems deteriorate:

• Bodily dangers: Excessive climate, drought, pure disasters, and shrinking ecosystems can disrupt provide chains, trigger uncooked materials shortages, halt manufacturing, and destroy belongings. 
• Monetary dangers: Corporations can face rising prices in supplies, operations, insurance coverage premiums, and compliance penalties. 
• Transition dangers: Policymakers and stakeholders could demand stricter requirements for shielding the planet. Corporations that do not adapt might face taxes, penalties, and lack of model status.
• Systemic dangers: Main ecosystem collapse—like widespread deforestation or ocean degradation—can disrupt meals methods, set off useful resource conflicts, and gas international instability. At this degree, no enterprise is immune.

By recognizing and addressing these 4 dangers, companies can put together for a future wherein the well being of our planet and the well being of our economies are intertwined.

What’s driving biodiversity loss?

Whereas companies depend upon biodiversity, many additionally contribute to its decline. Company operations usually result in habitat destruction, over-extraction of sources, deforestation, air pollution, and the introduction of invasive species. BCG discovered that 4 worth chains—meals, power, infrastructure, and trend—are chargeable for 90% of human stress on biodiversity. Meals drives greater than 50% of the pressure, adopted by buildings and transport infrastructure at 25%. Vitality accounts for 10% of the burden, primarily by air pollution and emissions, whereas trend leaves its mark by cotton fields, artificial fiber manufacturing, and waste. Current estimates of whole human affect on nature recommend that we’d require 1.75 Earths to keep up the world’s present residing requirements. The price of species extinction provides to the alarm—it’s now tens to lots of of occasions greater than the pure common over the previous 10 million years. 

However biodiversity stays a blind spot for companies

But most companies proceed working with out contemplating their relationship with nature. McKinsey highlights this hole in a current report, which exhibits that whereas 78% of Fortune International 500 firms have set local weather targets, solely 12% have set biodiversity targets, though the quantity is growing. 

This hole isn’t only a missed alternative—it’s a rising danger. As nature continues to say no, firms that fail to behave could discover themselves unprepared for the enterprise, regulatory, and reputational challenges forward.

“60% of individuals in G20 nations say that the prices of damages as a consequence of environmental air pollution are a lot greater than the prices of investments wanted for a inexperienced transition.”

International Commons Survey

A shifting regulatory and reporting panorama

In response to rising biodiversity challenges, governments and worldwide requirements our bodies are adopting stronger insurance policies to guard nature. Companies that don’t adapt could face monetary penalties along with reputational harm.

March 31, 2025

ESG regulation information: Navigating the brand new regular.

Local weather Motion, Sustainability

By
Jody Mousseau, Julie Yamamoto

• International frameworks: Signed by 196 nations in 2022, the Kunming-Montreal International Biodiversity Framework (GBF) contains targets to halt and reverse biodiversity loss by 2030. One goal requires massive firms to measure, disclose, and scale back their impacts on nature. Equally, the UN Sustainable Growth Objectives (SDGs) 14 (Life Beneath Water) and 15 (Life on Land) name on companies to guard pure ecosystems.
• Voluntary requirements: The Taskforce on Nature-Associated Monetary Disclosures (TFND) outlines how firms can assess and disclose nature-related dependencies, impacts, dangers, and alternatives. The International Reporting Initiative (GRI), one other voluntary reporting framework, contains biodiversity disclosure steerage in GRI 101: Biodiversity 2024. Lastly, the Science Based mostly Targets Community has additionally launched pointers to assist firms set and monitor science-based targets for nature, similar to freshwater use, land safety, and ecosystem integrity.
• Necessary necessities: Beginning in 2028 (for fiscal yr 2027), the EU Company Sustainability Reporting Directive (CSRD) would require firms to reveal their nature-related impacts and dangers underneath ESRS E4: Biodiversity and Ecosystems. In parallel, the EU Deforestation Regulation (EUDR), taking impact in December 2025, bans the import, sale, or export of sure merchandise except they’re verified as deforestation-free. As a part of the EUDR, firms should submit a due diligence assertion for any lined items produced on or after June 29, 2023. Some EU member states and different nations, like France, the U.Okay., India, Germany, Costa Rica, and Brazil, have additionally launched extra biodiversity-focused rules. 

“60% of individuals in G20 nations help giving authorized rights to nature in nationwide legal guidelines.”

Earth for All survey

To remain forward of the curve, companies should take significant motion on biodiversity or danger falling behind in a nature-positive financial system.

The enterprise case for a nature-positive enterprise

Integrating biodiversity concerns into core enterprise methods does greater than test a compliance field—it helps firms stand out as true sustainability pioneers. And sustainable companies know the worth of embedding ESG throughout operations—it drives stronger development, lowers prices, builds deeper belief with stakeholders, and opens doorways to new markets. Contemplate these indicators:

February 17, 2025

Methods to construct high-impact sustainability groups in 2025.

Local weather Motion, Management & Administration, Sustainability, Expertise Acquisition & Recruitment

By
Jody Mousseau, Julie Yamamoto

• 88% of individuals are involved concerning the state of nature (Inside Local weather Information).
• 80% of shoppers say they’re prepared to spend extra on sustainable merchandise (PwC).
• Ecosystem providers supplied by nature ship $150 trillion yearly—almost double international GDP (BCG).
• Nature-positive enterprise fashions might unlock $10 trillion a yr and almost 400 million jobs by 2030 (World Financial Discussion board).
• Each €1 invested in nature returns €8 to €38 in financial worth (European Fee).

Case examine: Unilever is a real-world instance of this shift in motion. Its lineup of plant-based merchandise has introduced in €1.2 billion in annual income—clear proof that nature-conscious innovation generally is a critical driver of development.

Methods to construct biodiversity into your corporation

Nature isn’t simply an non-obligatory concern—it’s what retains the entire system operating. And forward-thinking firms are beginning to deal with it that approach. Right here’s how your corporation can construct a extra resilient technique with biodiversity at its core:

1. Assess: Begin with a materiality evaluation that features biodiversity impacts and dangers. Biodiversity measurement instruments like LIFE Key, ENCORE, SBTN, biodiversity footprint calculators, and the TFND framework can assist pinpoint the precise metrics for your corporation. Make sure to map out high-risk areas the place biodiversity points are essential to your operations and provide chain.
2. Set clear, measurable targets: Use instruments like SBTN to outline particular, science-based targets—like restoring 1,000 hectares or decreasing fertilizer runoff by 30%—and tie them to your larger sustainability plan. Your targets needs to be time-bound and deal with each side of the coin—reducing adverse impacts on nature whereas boosting optimistic contributions.

Case examine: Kering grew to become the primary trend model to formally undertake measurable, science-based targets for decreasing its affect on nature by 40% by 2025. This milestone follows an earlier initiative the place the corporate established an Environmental Revenue and Loss account to calculate its biodiversity footprint. 

3. Create a plan: Develop a biodiversity administration plan that outlines the precise actions you’ll take, together with timelines and ecological monitoring methods, to attain your nature targets.
4. Rethink your provide chain: Look past value and begin sourcing with nature in thoughts. Work with suppliers already utilizing regenerative or licensed sustainable practices—and help present companions in making the shift. Common check-ins and third-party audits construct accountability, whereas coaching and monetary incentives can pace up the transition. Why does it matter? Switching to regenerative agriculture, as an example, can minimize emissions by as much as 50% and improve farm profitability by 70-120%, all whereas enhancing soil well being and native biodiversity.

Case examine: Basic Mills discovered that each $1 invested in regenerative agriculture might return $5 in social, environmental, and financial advantages. Constructing on a 50,000-acre pilot, the corporate has since dedicated to scaling regenerative practices throughout 1 million acres by 2030.

5. Take motion and monitor progress: Deal with pure capital like some other asset in your steadiness sheet. Enhance its worth and scale back danger by investing in ecosystem restoration, minimizing impacts, making certain that insurance coverage covers biodiversity damages, and integrating nature metrics into enterprise reporting. 
6. Collaborate to innovate and scale affect: Work with consultants—whether or not they’re in NGOs, analysis establishments, startups, or the nonprofit world—to carry science-based, nature-positive concepts into your corporation. These partnerships can spark highly effective innovation, from designing compostable, plant-based merchandise to creating round financial system fashions or supplies that assist regenerate ecosystems. Additionally, collaborate with governments, NGOs, and trade friends to develop shared requirements, launch joint restoration initiatives, and advocate for stronger biodiversity insurance policies.

These steps supply a sensible roadmap for weaving biodiversity into the material of your corporation—driving long-term worth whereas serving to nature thrive.

Wanting forward: A brand new period of nature-positive enterprise

We’re getting into a brand new period the place probably the most resilient and revered firms are those who restore nature, not deplete it. Biodiversity is not a “nice-to-have”—it’s a enterprise danger, a model differentiator, and a long-term development alternative. Biodiversity loss poses critical challenges, threatening agricultural yields, uncooked materials availability, and local weather stability. And, as investor calls for, client expectations, and regulatory pressures converge, companies that fail to combine biodiversity into their methods could discover themselves left behind.

To totally combine biodiversity into core methods, firms should study each space of their operations. Every step counts, from responsibly sourcing uncooked supplies to sustainable manufacturing, partnering on habitat restoration, and investing in low-impact improvements. At Aquent, we assist companies construct nature-positive methods that align with international frameworks, scale back danger, and elevate model management. Our sustainability consultants help all the things from biodiversity materiality assessments and provider engagement to ESG reporting and nature-based aim setting. Learn the way Aquent can assist you defend biodiversity whereas unlocking enterprise worth.

Seeking to bolster your sustainability efforts? Aquent Sustainability is right here to assist. Whether or not you are constructing an in-house Sustainability Crew or want an professional to advise on greatest practices, our sustainability recruitment and consulting providers assist firms develop their affect. Get in contact.