The rich diversity of life on Earth is the foundation for the well-being of our ecosystems, economies, and communities. From pollination to water purification to climate regulation, the vital services provided by biodiversity underpin business success. Yet, this natural capital is in crisis.
Our world is undergoing an unprecedented mass extinction, driven by human activity. Species are disappearing at a rate 10 to 1,000 times faster than the natural pace, with over 1.2 million species now threatened. This biodiversity loss compromises the resilience of ecosystems that businesses rely on for essential resources, from clean water to fertile land.
The Swiss Re Institute reports that a concerning 20% of countries worldwide are at risk of their ecosystems collapsing, which could result in over $5 trillion in annual costs to the global economy due to the deterioration of essential natural services like water filtration, flood control, and pollination. Likewise, the World Economic Forum underscores that more than half of global GDP relies on thriving ecosystems.
Key business risks stemming from biodiversity loss include:
As nature's delicate balance is disrupted, businesses globally will face severe financial and operational consequences. Ignoring these imminent changes exposes companies to grave risks, such as supply chain breakdowns, skyrocketing raw material prices, and irreparable brand damage. To thrive in this era of escalating environmental pressures, businesses must prioritize biodiversity conservation as a strategic imperative.
The solution lies in embracing the concept of Nature Positive Finance. Driven by worldwide commitments to halt and reverse ecosystem degradation by 2030, and fully restore natural systems by 2050, the Nature Positive vision compels businesses to proactively protect and revitalize biodiversity. Aligning financial activities with this critical goal is essential for businesses to safeguard their future and capitalize on emerging opportunities in an environmentally conscious world.
Nature Positive Finance aligns financial activities with this critical goal, going beyond mere harm reduction to actively support practices like restoration and conservation. Embracing this sustainable path is essential for businesses to future-proof their operations and unlock new opportunities in a world increasingly defined by environmental stewardship.
Financial institutions play a pivotal role in achieving a Nature Positive future. They can contribute by financing Nature Positive activities, divesting from projects with negative impacts, and integrating biodiversity considerations into their investment decisions and risk assessments. Businesses that adopt Nature Positive Finance can reduce their environmental footprint, enhance their brand reputation, and future-proof their operations by proactively complying with evolving biodiversity regulations, thereby avoiding financial and legal liabilities.
By adopting Nature Positive Finance, businesses can help drive the transition to a more sustainable future, aligning their financial activities with the global biodiversity framework and contributing to the overall Nature Positive goal.
However, most businesses lack crucial data to understand how their finances depend on nature and how their operations impact ecosystems. This understanding is essential for implementing nature positive practices effectively.
At refinq, we guide businesses through biodiversity-related risks.
Our services include:
The biodiversity crisis presents not only a challenge but also a remarkable opportunity. Businesses that act now to reduce their environmental footprint and contribute to the recovery of nature can build stronger, more resilient brands while ensuring long-term success.
At refinq, we provide the tools, insights, and strategies you need to transform biodiversity and climate risks into opportunities for sustainable growth.
Ready to future-proof your business and contribute to a more sustainable planet? Contact refinq today to discover how our Biodiversity and Climate Risk assessments can propel you to the forefront of sustainable business practices. Let's work together to build a thriving, nature-positive future.
Protect your business by safeguarding our planet!
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