Source

The State of Nature and Climate 2025: How Businesses Can Lead the Nature-Positive Revolution – World Economic Forum Insights

Written by Aliyah Assegaf

24 January 2025

As the world grapples with the dual crises of biodiversity loss and climate change, businesses are increasingly called upon to play a pivotal role in fostering a nature-positive future. The World Economic Forum (WEF) has outlined comprehensive guidance to help organizations integrate nature-positive practices into their strategies, aligning business growth with ecological sustainability.

Understanding Nature-Positive

A nature-positive approach seeks to halt and reverse nature loss by enhancing biodiversity, restoring ecosystems, and ensuring sustainable resource use. This paradigm recognizes the intrinsic value of nature while highlighting its role as a critical driver of economic resilience and long-term profitability. According to the WEF, over half of global GDP is moderately or highly dependent on nature, underscoring the economic imperative of conservation.

The State of Nature and Climate 2025: Key Insights

The WEF’s report, The State of Nature and Climate 2025, presents a stark reality: human activities have degraded nearly 75% of the Earth's terrestrial environment and 66% of marine environments. However, the report also offers hope, emphasizing the potential for businesses to lead transformative change through innovative practices and policies. Key takeaways include:

1. Economic Risks of Inaction: Biodiversity loss threatens supply chains, increases operational risks, and exposes businesses to regulatory penalties.

2. Opportunities in Nature Restoration: Investing in nature-positive solutions can unlock $10 trillion in annual business value and create 395 million jobs by 2030.

3. Sector-Specific Impacts: Industries such as agriculture, forestry, and fisheries are most vulnerable to nature loss but also hold the greatest potential for positive impact.

Guidance for Nature-Positive Transitions

The WEF’s framework for nature-positive transitions emphasizes actionable strategies across key sectors. Here are the main steps businesses can take:

1. Assess and Measure Impact

Understanding an organization’s environmental footprint is the first step. Tools such as the Global Biodiversity Score and Science-Based Targets for Nature can help businesses quantify their impact on ecosystems and set measurable goals. The UN’s Global Biodiversity Outlook 5 underscores the importance of robust metrics in tracking progress towards nature-positive goals.

2. Integrate Nature into Core Strategies

Nature-positive goals must be embedded into corporate strategies and decision-making processes. This involves:

· Aligning with Global Standards: Adopting frameworks like the Taskforce on Nature-related Financial Disclosures (TNFD) to manage risks and opportunities related to nature.

· Prioritizing High-Impact Areas: Identifying operations and supply chains with the greatest ecological footprint for targeted interventions. The PwC Embedding Sustainability into Governance Insights highlights how embedding sustainability into governance structures drives better outcomes.

3. Collaborate Across Value Chains

Nature-positive transitions require collective action. Businesses should engage with suppliers, customers, and local communities to implement sustainable practices and amplify impact. Deloitte’s 2023 Global Climate Survey emphasizes that collaborative ecosystems are essential for scaling sustainability initiatives.

4. Invest in Innovation and Restoration

Investment in technologies such as regenerative agriculture, renewable energy, and nature-based solutions is crucial. Additionally, businesses can support ecosystem restoration projects to enhance biodiversity and carbon sequestration. EY’s report on The Future of Sustainability identifies nature-based solutions as a critical pathway to achieving climate and biodiversity targets.

5. Monitor and Report Progress

Transparent reporting fosters accountability and trust. Companies should regularly disclose their nature-positive initiatives, progress, and challenges, aligning with frameworks like the Global Reporting Initiative (GRI). The KPMG Survey of Sustainability Reporting 2022 found that businesses with robust disclosure practices enjoy enhanced stakeholder trust and improved market positioning.

Case Studies of Success

Leading companies are already embracing nature-positive strategies:

· Unilever has committed to a deforestation-free supply chain by 2023, ensuring sustainable sourcing of raw materials.

· Nestlé is investing in regenerative agriculture to restore soil health and improve biodiversity.

· Patagonia actively funds conservation projects and advocates for environmental policy reforms.

· Microsoft has pledged to become carbon negative and has initiated programs to replenish more water than it consumes.

The Business Case for Nature-Positive Practices

Embracing a nature-positive approach is not only an ethical imperative but also a strategic advantage. Benefits include:

· Enhanced Resilience: Ecosystem restoration reduces risks related to climate change and resource scarcity.

· Market Differentiation: Consumers increasingly favor brands committed to sustainability. According to Accenture’s Sustainability Imperative Report, 62% of consumers prefer purchasing from environmentally responsible companies.

· Regulatory Preparedness: Proactive compliance with evolving environmental regulations mitigates legal and financial risks.

Call to Action

A nature-positive future is an economic and ecological necessity,” states the WEF. Businesses must leverage their resources and innovation to drive systemic change by aligning with global sustainability principles. Nature is the foundation of progress, and by placing it at the core of business strategy, we can secure a thriving future for both the planet and the economy.