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Davy Horizons Biodiversity whitepaper illustration of a burning forest in the shape of human lungs.
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Biodiversity and nature - Risks and opportunities for business

06th December, 2023

Biodiversity and nature are becoming increasingly important areas of focus for business, and this is being reinforced with policy and law, and with a range of voluntary initiatives. 

There is a lot of terminology around this area, such as natural capital, ecosystem services, nature positive, nature risk, etc. which can be difficult to interpret and navigate for business. In our latest whitepaper, we discuss what biodiversity and nature risks are in the context of business and what it means for corporates, as well as the drivers of the focus on biodiversity and nature, and how business will be impacted by policy, law, and other initiatives on this topic. 

Key Takeaways

  • Healthy ecosystems support all life on Earth providing a "natural capital" that underpins the successful functioning of our economy, businesses, and societal wellbeing.
  • The value of this natural capital to the global economy per annum is estimated at USD $50 trillion.
  • The global cost of environmental damage to nature from business activities including deforestation, climate change, soil erosion and drought are estimated at USD $3 trillion per annum. If Mother Nature sent an invoice, the profits of many sectors would be wiped out. 
  • 15% of global carbon emissions result from deforestation and forest degradation. With cattle, mining, palm oil, rubber, soy and timber being the primary drivers of deforestation, many companies remain critically exposed to forest-related risks. 
  • Recent analysis from CDP suggests that deforestation will become the 'new coal' in financial institutions' portfolios and that exposure to companies driving deforestation will leave them vulnerable to significant financial, regulatory and reputational risks.
  • Natural capital costs are increasingly being internalised in regulation and markets for many sectors. A range of drivers underpinning the international Global Biodiversity Framework at EU level including the Nature Restoration law and Deforestation Regulation are gamechangers for business ahead.
  • Looking at the natural capital benefits, every euro invested in nature restoration planned to 2030 under the EU's Nature Restoration law is expected to yield at least €8-38 in benefits.
  • As the connection between climate crises and biodiversity loss becomes more apparent, companies are expected to manage their nature related risks and opportunities in alignment with a growing playbook of best practice benchmarks. 

Download the full whitepaper via the link adjacent. 

Davy Horizons Whitepaper

Biodiversity and nature - risks and opportunities for business

Download Whitepaper

Davy Horizons Whitepaper

Biodiversity and nature - risks and opportunities for business

Download Whitepaper

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