“Nature and Business: Navigating Risks and Opportunities in a Changing Landscape” report

World economy is strongly dependent on natural capital and ecosystem services for raw materials, food, clean air and water as well as all kinds of cultural and tourist values. Therefore, any biodiversity disruptions seriously impact the resilience of both our ecosystems and the business supply chains relying on them. According to the estimates of the World Economic Forum, $44 trillion of economic value generation is at risk of disruption due to biodiversity loss. In fact, the world trade largely depends on the state of the environment.

The current rate of species extinction is tens to hundreds of times higher than the historical average, and it is constantly growing. Due to the known decline in biodiversity, which threatens many sectors of the economy, this topic increasingly often appears in the narratives of financial institutions and is emphasized by European regulators (ESRS 4 standard on biodiversity and ecosystems is a case in point).

Considering the business risks involved, our experts decided to examine the importance of biodiversity for business and verify the engagement of the private sector in these matters. Almost 100 representatives of various entities from 11 different industries took part in our survey.

Our publication provides an overall review of the issues linked with nature, biodiversity, impact, and dependencies at the intersection of economy, society and business. It not only presents an up-to-date picture of the growing threats, but also, building on the study described above, attempts to find positive changes in the awareness and nature-related actions of companies across Europe. The final chapter of the report presents a practical roadmap that sets the direction for action and suggests potential solutions designed to mitigate the risks described above and adapt to them.

The lack of risk awareness, analytical difficulty of examining the impact and dependence on biodiversity, lack of comprehensive regulations, pressures to bring about energy transition and meet demanding emission quotas – combined, all these factors result in placing a low priority on biodiversity actions. Even if protection efforts are taken, they are rarely coordinated.

An effective response to the growing challenges requires the coordinated involvement of all market participants: regulators, financial institutions, businesses, experts, and representatives of the third sector. The roadmap presented is a set of recommended steps and the report as a whole should serve as an invitation to discuss this important topic.

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