Introduction

The report emphasises the urgency of reversing nature loss, noting that over half of global GDP depends on ecosystems. Key drivers include land use changes, resource exploitation, and pollution, which amplify risks to biodiversity and corporate stability. Regulatory pressures, like the EU’s Corporate Sustainability Reporting Directive (CSRD), demand heightened corporate transparency on nature impacts. Protecting and restoring ecosystems is essential, as forests alone can provide up to one-third of the climate mitigation required under the Paris Agreement.

Biotechnology and pharmaceuticals

Biotechnology and pharmaceutical sectors rely on high-quality water and genetic materials from diverse ecosystems. However, their activities contribute to water and soil pollution, with antibiotic residues increasing resistance risks. With 80% of registered medicines derived from nature, these industries depend on biodiversity, emphasising the importance of equitable collaboration with Indigenous Peoples as outlined by the Nagoya Protocol. Investors should engage companies on waste management, biodiversity integration, and partnerships with Indigenous communities.

Chemicals

The chemicals sector’s environmental footprint includes emissions from catalytic cracking and fertilisers, which drive water and air pollution. The sector is responsible for 935 million tons of CO2 emissions annually, the largest share from ammonia production. Land use for bio-based feedstocks like palm oil accelerates deforestation. Companies must prioritise sustainable sourcing, waste management, and water use reduction while innovating product formulations to mitigate downstream impacts.

Consumer goods retail

Retail and e-commerce contribute significantly to waste, emissions, and pollution. Packaging waste, particularly plastics, has low recycling rates globally (9%), and e-commerce data centres contribute to GHG emissions. The sector also generates substantial e-waste due to short product lifespans. Recommendations include optimising logistics, reducing last-mile emissions, and addressing the environmental impacts of upstream supply chains, including deforestation and biodiversity loss.

Food

The food sector generates significant GHG emissions, particularly from livestock methane and deforestation for agriculture, which accounts for nearly 90% of global deforestation. Aquaculture drives marine habitat loss, including mangrove destruction. Water use is a critical dependency, with beef production requiring 1,847 gallons per pound. Sustainable agricultural practices, deforestation-free sourcing, and promoting soil health are vital for reducing impacts.

Food and beverage retail

Refrigeration, transportation, and packaging dominate this sector’s impacts, contributing to GHG emissions and pollution. Food waste exacerbates these emissions, with billions of tonnes generated annually. Upstream impacts, such as deforestation, require collaboration with food producers. Companies should transition to low-impact refrigerants, optimise delivery routes, and adopt sustainable packaging materials to address environmental concerns.

Forestry and packaging

This sector drives deforestation, with 1.15 billion hectares of forests used for production, and accounts for 33–40% of industrial wood trade. Deforestation and clearcutting contribute significantly to biodiversity loss and GHG emissions. The pulp and paper industry is water-intensive, with 85% of its water used in production. Promoting recycled materials and adhering to sustainable forestry standards like FSC are key recommendations.

Household and personal products

Household and personal products contribute to pollution through volatile organic compounds, plastics, and microplastics, with only 22% of plastic waste effectively recycled. Water is a critical dependency for product formulation and packaging processes. Companies should enhance transparency in sourcing, promote consumer recycling, and explore renewable feedstocks for circular economy integration.

Metals and mining

Mining activities account for 4–7% of global GHG emissions, with significant impacts on water and land ecosystems. Acid drainage from mines remains a severe environmental liability, alongside deforestation and soil erosion. Mining operations disturb 1% of terrestrial land globally and are often situated in biodiversity hotspots. Tailings management is critical to prevent catastrophic environmental damage. Companies should prioritise land restoration, water quality monitoring, and reducing reliance on fossil fuel-based operations.

Recommendations

Investors are encouraged to:

• Assess material nature impacts and dependencies across supply chains.
• Advocate for biodiversity partnerships with Indigenous Peoples and communities.
• Support sustainable sourcing, such as deforestation-free policies and renewable feedstocks.
• Promote innovation in packaging, circular economy models, and reduced water usage.
• Push for enhanced corporate transparency and alignment with global sustainability goals like the Paris Agreement.

Conclusion

The interconnectedness of nature and the economy is undeniable. Companies must transition toward sustainable practices to safeguard ecosystems and economic resilience. Investors, through initiatives like Nature Action 100, can play a pivotal role in catalysing this transformation, representing over $28 trillion in assets committed to reversing nature loss.