How to make business and biodiversity work for your operations.

When most businesses think about sustainability, emission footprints and energy tend to dominate the conversation. But there’s another critical element that’s often overlooked—biodiversity. From raw materials to ecosystem services that support agriculture and manufacturing, biodiversity underpins the global economy in ways we rarely see—until it’s gone. According to PwC, over half of global GDP—$58 trillion—is moderately or highly dependent on nature. Yet biodiversity is rapidly shrinking. The United Nations (UN) reports that natural ecosystems have lost 47% of their original size and condition, and one in four species faces extinction. This is not a distant future scenario, but a crisis unfolding before us. As biodiversity declines, so does the resilience of the systems businesses rely on. That’s why forward-thinking companies are weaving biodiversity into their core strategies—not just as a sustainability goal but as a business imperative.

“Biodiversity impacts everyone. Now biodiversity loss will become a chief concern for all businesses, in particular those with far-reaching supply chains that significantly depend on, and have responsibility for, nature impacts.”

Lars Tappert Biodiversity Manager at Ramboll Germany

Understanding the role of natural capital and biodiversity in business

S&P research found that 85% of the largest companies rely heavily on nature for their operations. But what does that mean? While natural capital and biodiversity are closely related—and both refer to the natural resources that businesses depend on—they aren’t the same. Understanding the distinction is key to building more innovative, holistic sustainability strategies. Here’s a quick breakdown:

What is natural capital?

Natural capital is the world’s stock of natural assets, such as air, water, soil, forests, oceans, and all living organisms that provide beneficial services to society. Examples of these “ecosystem services” include:

• Pollination: Critical for one-third of global food production, including crops like coffee, cocoa, and almonds. 
• Water purification: Wetlands and forests filter pollutants and recharge aquifers.
• Climate regulation: Ecosystems such as mangroves, forests, and coastal marshes store carbon and reduce flooding.
• Raw materials: Many raw materials are derived from nature, such as wood, food, medicine, and genetic resources vital for agriculture and biotechnology innovation.

For a detailed chart highlighting the ecosystem services provided by natural capital, visit the Biodiversity and Business report by VBDO and PwC.

What is biodiversity?

Biodiversity is the variety of life that powers ecosystem services—it’s the engine that keeps natural capital running. It includes the diversity of species, habitats, and genetics that work together to create and maintain healthy ecosystems. Without biodiversity, natural systems can’t function properly. For example, crop yields drop without diverse pollinators, and single-species forests are more vulnerable to pests and climate impacts. Monoculture plantations, like those for palm oil, also fail to support a wide range of life, limiting the ecosystem services they can provide. Finally, agriculture depends on healthy soils, which require microbial diversity. 

Why biodiversity loss is a business risk

Some industries—like agriculture, energy, and mining—directly depend on healthy ecosystems to operate. Others, such as chemicals or retail, may seem less connected to nature, but their supply chains are still vulnerable when ecosystems break down. For example, in six industries where less than 15% of their direct gross value added (GVA) is highly dependent on nature, more than 50% of their supply chain’s GVA relies heavily or moderately on nature. 

Industries most at risk

As natural systems decline, businesses across many sectors face rising costs and increased risks. For example:

Navigating nature's decline: Four critical business risks

When the natural world suffers, businesses feel the impact too. Supplies grow scarce. Costs rise. Stakeholders demand more responsible practices. These growing pressures expose companies to four major types of risk. Some show up quickly, and others build over time, but all of these can affect a company's bottom line. Here’s what to watch for when natural ecosystems deteriorate:

• Physical risks: Extreme weather, drought, natural disasters, and shrinking ecosystems can disrupt supply chains, cause raw material shortages, halt production, and destroy assets. 
• Financial risks: Companies can face rising costs in materials, operations, insurance premiums, and compliance penalties. 
• Transition risks: Policymakers and stakeholders may demand stricter standards for protecting the planet. Companies that don't adapt could face taxes, penalties, and loss of brand reputation.
• Systemic risks: Major ecosystem collapse—like widespread deforestation or ocean degradation—can disrupt food systems, trigger resource conflicts, and fuel global instability. At this level, no business is immune.

By recognizing and addressing these four risks, businesses can prepare for a future in which the health of our planet and the health of our economies are intertwined.

What's driving biodiversity loss?

While businesses depend on biodiversity, many also contribute to its decline. Corporate operations often lead to habitat destruction, over-extraction of resources, deforestation, pollution, and the introduction of invasive species. BCG found that four value chains—food, energy, infrastructure, and fashion—are responsible for 90% of human pressure on biodiversity. Food drives more than 50% of the strain, followed by buildings and transport infrastructure at 25%. Energy accounts for 10% of the burden, primarily through pollution and emissions, while fashion leaves its mark through cotton fields, synthetic fiber production, and waste. Recent estimates of total human impact on nature suggest that we would require 1.75 Earths to maintain the world’s current living standards. The rate of species extinction adds to the alarm—it’s now tens to hundreds of times higher than the natural average over the past 10 million years. 

But biodiversity remains a blind spot for businesses

Yet most businesses continue operating without considering their relationship with nature. McKinsey highlights this gap in a recent report, which shows that while 78% of Fortune Global 500 companies have set climate targets, only 12% have set biodiversity goals, although the number is increasing. 

This gap isn’t just a missed opportunity—it’s a growing risk. As nature continues to decline, companies that fail to act may find themselves unprepared for the business, regulatory, and reputational challenges ahead.

“60% of people in G20 countries say that the costs of damages due to environmental pollution are much higher than the costs of investments needed for a green transition.”

Global Commons Survey

A shifting regulatory and reporting landscape

In response to growing biodiversity challenges, governments and international standards bodies are adopting stronger policies to protect nature. Businesses that don’t adapt may face financial penalties in addition to reputational damage.

“60% of people in G20 countries support giving legal rights to nature in national laws.”

Earth for All survey

To stay ahead of the curve, businesses must take meaningful action on biodiversity or risk falling behind in a nature-positive economy.

The business case for a nature-positive business

Integrating biodiversity considerations into core business strategies does more than check a compliance box—it helps companies stand out as true sustainability pioneers. And sustainable businesses know the value of embedding ESG across operations—it drives stronger growth, lowers costs, builds deeper trust with stakeholders, and opens doors to new markets. Consider these indicators:

Case study: Unilever is a real-world example of this shift in action. Its lineup of plant-based products has brought in €1.2 billion in annual revenue—clear proof that nature-conscious innovation can be a serious driver of growth.

How to build biodiversity into your business

Nature isn’t just an optional concern—it’s what keeps the whole system running. And forward-thinking companies are starting to treat it that way. Here’s how your business can build a more resilient strategy with biodiversity at its core:

1. Assess: Start with a materiality assessment that includes biodiversity impacts and risks. Biodiversity measurement tools like LIFE Key, ENCORE, SBTN, biodiversity footprint calculators, and the TFND framework can help pinpoint the right metrics for your business. Be sure to map out high-risk areas where biodiversity issues are crucial to your operations and supply chain.
2. Set clear, measurable goals: Use tools like SBTN to define specific, science-based targets—like restoring 1,000 hectares or reducing fertilizer runoff by 30%—and tie them to your bigger sustainability plan. Your goals should be time-bound and tackle both sides of the coin—cutting negative impacts on nature while boosting positive contributions.

Case study: Kering became the first fashion brand to formally adopt measurable, science-based targets for reducing its impact on nature by 40% by 2025. This milestone follows an earlier initiative where the company established an Environmental Profit and Loss account to calculate its biodiversity footprint. 

3. Create a plan: Develop a biodiversity management plan that outlines the specific actions you will take, along with timelines and ecological monitoring strategies, to achieve your nature targets.
4. Rethink your supply chain: Look beyond cost and start sourcing with nature in mind. Work with suppliers already using regenerative or certified sustainable practices—and support existing partners in making the shift. Regular check-ins and third-party audits build accountability, while training and financial incentives can speed up the transition. Why does it matter? Switching to regenerative agriculture, for instance, can cut emissions by up to 50% and increase farm profitability by 70-120%, all while improving soil health and local biodiversity.

Case study: General Mills found that every $1 invested in regenerative agriculture could return $5 in social, environmental, and economic benefits. Building on a 50,000-acre pilot, the company has since committed to scaling regenerative practices across 1 million acres by 2030.

5. Take action and track progress: Treat natural capital like any other asset on your balance sheet. Improve its value and reduce risk by investing in ecosystem restoration, minimizing impacts, ensuring that insurance covers biodiversity damages, and integrating nature metrics into business reporting. 
6. Collaborate to innovate and scale impact: Work with experts—whether they're in NGOs, research institutions, startups, or the nonprofit world—to bring science-based, nature-positive ideas into your business. These partnerships can spark powerful innovation, from designing compostable, plant-based products to creating circular economy models or materials that help regenerate ecosystems. Also, collaborate with governments, NGOs, and industry peers to develop shared standards, launch joint restoration projects, and advocate for stronger biodiversity policies.

These steps offer a practical roadmap for weaving biodiversity into the fabric of your business—driving long-term value while helping nature thrive.

Looking ahead: A new era of nature-positive business

We’re entering a new era where the most resilient and respected companies are those that restore nature, not deplete it. Biodiversity is no longer a “nice-to-have”—it’s a business risk, a brand differentiator, and a long-term growth opportunity. Biodiversity loss poses serious challenges, threatening agricultural yields, raw material availability, and climate stability. And, as investor demands, consumer expectations, and regulatory pressures converge, businesses that fail to integrate biodiversity into their strategies may find themselves left behind.

To fully integrate biodiversity into core strategies, companies must examine every area of their operations. Each step counts, from responsibly sourcing raw materials to sustainable production, partnering on habitat restoration, and investing in low-impact innovations. At Aquent, we help businesses build nature-positive strategies that align with global frameworks, reduce risk, and elevate brand leadership. Our sustainability experts support everything from biodiversity materiality assessments and supplier engagement to ESG reporting and nature-based goal setting. Learn how Aquent can help you protect biodiversity while unlocking business value.

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