In times of war and crisis, environmental issues are often perceived as secondary. However, today more than ever it is clear: nature is a key strategic asset for business. The quality of the environment directly affects production, harvests, supply chains, and ultimately companies’ financial performance.
More than half of the global economy depends on nature. If natural risks are not taken into account, companies face additional losses, instability, and loss of investors.
Why this matters for business:
- The devaluation of natural assets is a real business risk, not just an environmental issue
- More than 50% of the global economy directly depends on nature
- By 2030, the market for nature-based solutions could reach $10.1 trillion per year
- $44 trillion of global GDP depends on natural resources
What businesses should do:
1. Recognize dependence on nature
- Conduct a natural capital audit
- Identify which natural resources the business depends on
- Use the World Economic Forum’s Nature-Related Dependencies & Impacts Map to analyze impacts and risks
2. Integrate natural risks into risk management systems
- Incorporate nature into management decisions and financial reporting
- Consider scenarios: what happens if a specific natural resource disappears?
3. Treat nature as capital, not a cost
- Investing in nature reduces long-term risks
- Examples: Nestlé and IKEA invest in nature to protect their businesses
4. Collaborate with partners
- Join global initiatives such as TNFD
- Cooperate with environmental associations, and utilize grants and green financial instruments