What happens in nature affects what happens in the economic system. Businesses are dependent on the natural world and are more closely connected to it than they might think.
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What happens in nature affects what happens in the economic system. Businesses are dependent on the natural world and are more closely connected to it than they might think.
Not only are industrial systems built on foundations of agricultural cycles and resource use, but as nature degrades, there are financial risks associated with business interruption.
This includes the immediate disruption brought about by extreme weather events and the longer-term threats of soil erosion, water salination, aridity, flooding, and pollinator loss. The story ends with nature-related risk destabilising the financial system itself, as a systemic threat akin to the climate crisis.
These risks, termed ‘nature-related risks’, have the potential to affect us all. And a complicating factor is that we don’t have a clear timetable. Nature-related risks are inherently uncertain, hard to predict, and ‘non-linear’ – with tipping points that could lead to irreversible change.
The World Economic Forum estimates that $44 trillion worth of assets are dependent on nature and biodiversity – more than 50% of global GDP. With nature-related risks becoming increasingly evident, from weather events to concerns about bee and wasp populations, now is the time for businesses to get ready to calculate, mitigate and adapt.
Nature and biodiversity report download
Our latest research report, Uncovering Nature and Biodiversity, with the aim of supporting our clients to better understand and reflect on the nature related risks inherent in their business operations, and to build this into a robust and value-creating sustainability strategy.
Please fill in the form below to get your copy of the whitepaper.
To hear more about our sustainability work, get in touch with Martha McPherson, on martha.mcpherson@eversustainable.co.uk.