Companies and Biodiversity: Why Nature Conservation is Essential for Business and How to Take Action

At a time when global biodiversity loss is reaching alarming proportions, attention is increasingly turning to the private sector. According to the latest assessment report by the Intergovernmental Science-Policy Platform on Biodiversity, IPBES for biodiversity and ecosystem services) of 2026, Business and biodiversity are not separate worlds – they are intrinsically interdependent.. Businesses play a central role in the transformation towards a sustainable future, but they also face risks arising from the degradation of nature.

Interdependence: Two sides of the same coin

All businesses, regardless of size or sector, depend on biodiversity and nature’s contributions to people. Nature provides essential raw materials, regulates climate conditions, purifies water and ensures crop pollination. Yet despite this dependence, industrial activities remain the main driver of the decline in the diversity of life on Earth.

Businesses’ dependencies can be direct (e.g. access to water for production) or indirect, hidden deep in supply chains. The report highlights that Many companies are unaware of these risks until supply disruptions or raw material prices increase.. On the other hand, the negative impacts of businesses on nature – such as pollution, overuse of resources, or land use change – create systemic risks for the entire global economy and financial stability.

Barriers and systemic risks

Current market conditions often do not encourage sustainable behavior. Many economic and financial systems do not sufficiently take into account the value of nature, leading to a preference for short-term profits over long-term stability. A shocking finding is the extent harmful subsidies, which reached approximately $7.3 trillion in 2023, directly supporting activities that damage biodiversity.

Additionally, companies often face a lack of transparency in supply chains and a lack of standardized data on how their operations impact ecosystems. Without this information, it is difficult for investors and regulators to hold companies accountable.

The Way Forward: Measurement, Management, and Collaboration

The good news is that methods and tools already exist to measure the impacts and dependencies of businesses. The IPBES report identifies four main decision-making levels where companies can act:

  1. Corporate level: Setting strategies and ambitious goals in line with global frameworks.
  2. Operating level: Implementation of measures directly at the company's locations, for example through a hierarchy of mitigation (harm avoidance, minimization, restoration).
  3. Supply chain: Working with suppliers to increase transparency and traceability of materials.
  4. Investment portfolio: Financial institutions can redirect capital towards activities with a positive impact on nature.

However, individual efforts alone are not enough. The creation of a so-called. „"enabling environment". This requires close collaboration between governments, financial actors, civil society and indigenous peoples who have deep knowledge of local ecosystems. Governments must establish clear regulations, remove harmful subsidies and incentivize companies to adopt regenerative approaches.

From risk to opportunity

Understanding the relationship to biodiversity opens new doors for businesses. Businesses that identify their dependencies early and begin to manage their impacts can reduce operational risks, increase the resilience of their supply chains, and gain a competitive advantage in a market that increasingly values sustainability. Transforming to a system that is fair and in harmony with nature is no longer just a moral choice, but an economic imperative for business survival in the 21st century. JRi&CO2AI

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