7 Business Strategies for a Nature-Positive Future
The loss of biodiversity poses a significant threat to businesses, particularly those in industries such as mining, oil and gas, forestry, agriculture, fishing, and tourism. These industries are exposed to nature-related risks totaling nearly $1.9 trillion, according to Moody’s Investors Service. Despite this, businesses are often blamed for the biodiversity crisis. The Royal Society reports that the primary drivers of biodiversity loss are land use changes (accounting for 30% of declines), overexploitation of resources (20%), climate change, and pollution (14%).
However, businesses can also play a role in protecting and restoring biodiversity. The Paulson Institute estimates that there are market investment opportunities worth up to $93 billion by 2030. Here are seven strategies that businesses can use to contribute to a nature-positive future:
However, businesses can also play a role in protecting and restoring biodiversity. The Paulson Institute estimates that there are market investment opportunities worth up to $93 billion by 2030. Here are seven strategies that businesses can use to contribute to a nature-positive future:
- Donating: Many businesses take a philanthropic approach by donating funds through a foundation. For example, the Bezos Earth Fund has donated $10 billion, with $2 billion specifically earmarked for conserving and restoring nature in places like the Congo Basin.
- Offsetting: Carbon offsets can be a catalyst for protecting and restoring biodiversity. For example, Apple has partnered with Conservation International to protect and restore a 27,000-acre mangrove forest in Cispatá Bay, Colombia.
- Greening: Businesses can create habitats that attract biodiversity by incorporating living walls and roofs into their buildings. For instance, IKEA’s living roof in Greenwich, UK covers 3,500 square meters and includes different biodiverse zones.
These strategies range from ad-hoc actions to systemic change and can help businesses become part of the solution to the biodiversity crisis.
Here are four more strategies that businesses can use to contribute to a nature-positive future:
Here are four more strategies that businesses can use to contribute to a nature-positive future:
- Sourcing: Businesses can make a positive impact on biodiversity by carefully selecting the sources of their supplies. For example, they can choose organic ingredients for their canteen, Rainforest Alliance certified coffee and tea, and sustainably sourced wood products and paper.
- Innovating: Businesses can develop new products and services that are inherently good for biodiversity. For example, Impossible Foods’ plant-based burger uses significantly less land, water, and resources than a standard beef burger.
- Transforming: To truly address the biodiversity crisis, entire industries must transform. Agriculture is one such industry, and some companies are already making commitments to regenerative agriculture practices.
- Tipping: Reducing our dependence on livestock farming through cultured meat and precision fermentation may be the key to a true revolution in our relationship with nature. Companies such as Memphis Meats, Mosa Meat, and JUST, Inc. are leading the way in cultivated meat, while Perfect Day, Geltor, and Clara Foods are pioneers in precision fermentation.
These strategies range from ad-hoc actions to systemic change and can help businesses become part of the solution to the biodiversity crisis.
The most effective businesses will integrate all seven strategies to halt and reverse biodiversity loss. For example, Patagonia, an outdoor wear company, has pledged 1% of sales to the preservation and restoration of the natural environment since 1985. They were also one of the first companies to commit to using 100% organic cotton and regularly run awareness campaigns on the impacts of overconsumption. In 2012, they launched Patagonia Provisions to promote organic regenerative food, and in 2022, founder Yvonne Chouinard transferred all the voting stock of the company into a trust that requires profits to be distributed as dividends to protect the planet.
It is clear that high-impact companies and sectors must transform their approach if we are to achieve the goal of becoming “nature positive by 2030.” Business can be a key source of investment, innovation, and scaling of solutions to address the biodiversity crisis.
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