How business and finance can contribute to a nature positive future now
This report provides an in-depth exploration of the term “nature positive” and its implications for business and finance. It aims to build a shared understanding and alignment on what nature positive means, offering insights and recommendations to drive meaningful action towards halting and reversing nature loss. This report is particularly valuable for investors as it clarifies the concept of “nature positive” and its relevance to investment strategies. It helps investors understand the risks and opportunities associated with nature loss and provides a framework for integrating nature-positive principles into investment decisions.
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OVERVIEW
Why is nature important to business and finance?
Nature underpins human survival, wellbeing, and economic activity, providing essential resources like water, soil, and ecosystem services. Businesses depend on nature for stable operations and sustainable supply chains. Over half of global GDP is highly dependent on nature, with key sectors such as agriculture, construction, and food production generating $8 trillion in gross value annually at risk due to environmental degradation. Conversely, preserving nature enhances business resilience and growth.
What is nature positive?
The nature positive concept aims to halt and reverse nature loss by 2030, achieving full recovery by 2050. It promotes a holistic approach to ecosystem restoration and sustainable development. This goal aligns with major global agreements, including the Paris Agreement and the Sustainable Development Goals. Achieving a nature positive world involves reducing ecosystem damage, implementing nature-based solutions, and fostering biodiversity. Transitioning to a nature positive economy could unlock $10 trillion in business opportunities and generate 395 million jobs by 2030.
Business and finance must contribute to the nature positive goal
Businesses and financial institutions must integrate nature positive strategies across operations and supply chains. This requires addressing dependencies on natural resources, transforming value chains, and committing to measurable, time-bound targets. Collaboration across sectors, including food systems, infrastructure, and energy, is essential, as these sectors are responsible for threats to 80% of endangered species. Policy reforms, such as subsidy realignments and mandatory nature impact disclosures under the UN’s Global Biodiversity Framework (Target 15), will also play a pivotal role in achieving systemic change.
Recommendations: How can business and finance contribute?
- Assess: Businesses should measure their environmental impacts and dependencies, using tools like the Natural Capital Protocol. Priority actions include addressing high-impact areas and integrating nature-related risks into decision-making. Frameworks like the Fauna & Flora International CALM Framework offer pathways for collaboration and landscape management.
- Commit: Companies should set ambitious targets aligned with the Science-Based Targets Network and halt nature loss by 2030. Strategies should involve zero deforestation, sustainable resource use, and implementing restorative practices. Commitments must be embedded across all levels of the organisation.
- Transform: Firms need to adopt circular economy principles, avoid ecosystem conversion, and collaborate across sectors. Mitigation measures should focus on localised restoration efforts. The Systems Change Lab and sector-specific roadmaps provide actionable insights for implementing transformative practices.
- Disclose: Transparent reporting using frameworks like the Taskforce on Nature-related Financial Disclosures (TNFD) is crucial. Companies should regularly update stakeholders on progress towards nature positive goals, leveraging real-time biodiversity data where possible.
What to avoid
- Greenwashing: Companies must provide verifiable evidence for claims related to nature positive efforts to maintain trust.
- Inaction: Delaying action risks exacerbating nature loss. Imperfect but prompt efforts are better than waiting for perfect solutions.
The future of nature positive
Momentum is growing for nature positive initiatives. Governments and global organisations are incorporating biodiversity goals into policy, such as mandatory impact assessments under the UN’s Global Biodiversity Framework. Methodologies like TNFD and SBTN provide actionable guidance for businesses to align with global goals. Sectoral collaborations, such as those led by the World Economic Forum and Textile Exchange, offer tailored strategies for priority industries like agriculture, textiles, and infrastructure.
Innovation is also accelerating progress, with examples including biodiversity-integrated carbon markets, net positive investment funds, and real-time biodiversity data platforms. These developments support businesses in transitioning to nature positive practices while creating long-term value.
Conclusion
Achieving a nature positive world by 2030 requires collective action from businesses, governments, and society. Immediate and ambitious strategies, coupled with systemic collaboration, can mitigate risks and unlock opportunities worth $10 trillion globally. While challenging, the transition to a nature positive economy offers substantial long-term benefits for businesses and the planet.
