Executive summary

The report emphasises the economy’s dependence on nature, with over half of global GDP moderately or highly dependent on it. Despite this, nature is declining at an unprecedented rate, with significant biodiversity loss and ecosystem degradation. Corporates are increasingly expected to manage their exposure to nature-related risks, driven by global frameworks like the Global Biodiversity Framework, Taskforce on Nature-related Financial Disclosures (TNFD), and the Science Based Targets Network (SBTN). The report provides a six-principle approach for corporates to integrate nature-positive strategies, including setting measurable targets, applying a holistic definition of nature, and focusing on systemic contributions to nature-positive outcomes.

Introduction

The report outlines the critical state of global biodiversity, noting significant alterations to land and ocean ecosystems and the loss of wetlands. It was estimated in 2019 that one million species of plants and animals were threatened with extinction, and that there has been a 47% decline in ecosystem extent and condition relative to earliest estimated states.

Understanding the value of nature

Nature’s economic value is highlighted through its role in providing ecosystem services essential for human well-being and economic activities. A series of landmark reports underscores the need for corporates to account for natural capital. Corporates are urged to disclose their nature-related risks and opportunities transparently, recognising that economic decisions often overlook nature’s contributions. Emphasising the diverse values and worldviews of Indigenous peoples and local communities (IPLCs) can lead to more inclusive and sustainable outcomes.

What this means for corporates

Corporates face physical, transition, and systemic risks related to their nature impacts and dependencies. The report details how these risks can affect operations, legal standings, financing, and reputational aspects. Corporates are encouraged to adopt strategies that enhance resilience, promote sustainable practices, and seize opportunities for value creation. This includes investing in nature-based solutions, engaging in environmental markets, and adopting circular economy principles.

Global system response and key frameworks

The global push for a nature-positive economy is supported by frameworks like the Global Biodiversity Framework, TNFD, and SBTN. These frameworks guide corporates in setting targets and disclosing their impacts on nature. The report identifies relevant biodiversity targets for corporates, such as reducing land use change, restoring ecosystems, reducing pollution, and ensuring sustainable sectoral practices. Corporates are encouraged to engage with these frameworks to align their strategies with global biodiversity goals.

What corporates can do to get started: A principles-based approach

The report outlines six key principles for corporates to design and implement nature-positive strategies:

• Integrate objectives for people, nature, and climate: Align sustainability actions to minimise trade-offs and respect IPLCs’ traditional knowledge.
• Apply a holistic definition of nature: Consider all aspects of nature, including biodiversity and ecosystem services.
• Apply the mitigation hierarchy: Focus on avoiding harm, restoring nature, and transforming the systems that result in nature loss.
• Make a systemic contribution: Engage in broader efforts to achieve nature-positive outcomes.
• Identify and act in priority locations: In priority locations, a corporate’s dependencies on ecosystem services primarily give rise to physical risks and opportunities, and impacts primarily give rise to transition risks and opportunities
• Work towards an overall net gain in nature: Assess impacts and dependencies on nature both in direct operations and across the value chain.

Key takeaways and a call to action

The report calls for immediate corporate action to embrace nature-positive strategies, highlighting the competitive advantages of being early adopters. Corporates are urged to assess their nature impacts, set measurable targets, and implement no-regrets actions that provide both risk mitigation and value creation. Transparency and stakeholder engagement are emphasised as critical components of successful nature-positive strategies.