Road beyond net zero: Corporate actions to overturn nature loss

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The economy’s deep dependence on nature:

The connection between economic activity and nature is undeniable. Over half of global GDP (~ US$44 trillion) is moderately or highly dependent on nature and ecosystem services (WEF, 2020). However, nature is declining at an unprecedented rate, with ecosystems deteriorating faster than ever before in human history. This environmental crisis is not only a biodiversity emergency but a profound economic threat. If businesses continue to ignore this vital relationship, they risk being exposed to significant threats, including resource scarcity, regulatory challenges, and reputational damage.

From clean water to fertile soil, the resources that drive our global economy are deeply intertwined with natural systems. Companies must now rethink their approach to natural capital, recognizing that protecting and restoring nature is essential not only for the environment but also for sustaining business growth and long-term economic prosperity.

Figure 1: Swiss Re Institute Biodiversity and Ecosystem Services (BES) Index

What does this mean for companies?

The pressure on companies to account for their environmental footprint and nature-related risks is intensifying. Investors, consumers, governments, and regulatory bodies are increasingly expecting businesses to disclose their impacts on nature and take steps to mitigate them. Failing to address nature-related risks could result in operational disruptions, supply chain vulnerabilities, and financial instability.

Corporates need to consider three primary categories of nature-related risks and suggested risk mitigation measures: 

  • Physical risks: emerge from the degradation of ecosystems and the loss of services they provide, such as water filtration, flood mitigation, and pollination. 
    Risk mitigation: enhance resilience by investing in nature-based infrastructure (i.e., ecosystem restoration) to provide protection against incidents such as flooding, severe storms and wildfires.
  • Transition risks: involve shifting policies, market demands, and regulations that drive the transition toward a nature-positive economy
    Risk mitigation: enhance resilience to transition risks in direct operations by implementing best practice approaches and technology to minimize negative impacts on nature (e.g., pollution and waste generation), including by implementing circular economy principles (i.e., keep products in use, design out waste and pollution, regenerate natural systems).
  • Systemic risks: potential collapse of ecosystems and the ripple effects that could destabilize entire economies.
    Risk mitigation: enhance value chain resilience to physical and transition risks through diversification and engagement with suppliers and customers to minimize negative impacts on nature by promoting/prioritizing sustainable practices. 

To respond effectively, businesses must integrate nature-related risks into their core strategies and align their operations with emerging global frameworks.

Global frameworks driving the nature-positive agenda:

At the heart of this transition are global frameworks designed to steer businesses toward a more sustainable and nature-positive future. The most significant of these is the Kunming-Montreal Global Biodiversity Framework, which set out ambitious targets at the 2022 UN Biodiversity Conference (COP 15). The framework calls for halting and reversing biodiversity loss by 2030, in line with the global goal for nature—ensuring zero net loss of nature from 2020, a net positive impact by 2030, and a full recovery of nature by 2050.

Figure 2: Features of the nature-positive goal, source: figure adapted from Figure 1 in Locke et al. (2020)

Complementing this is the Taskforce on Nature-related Financial Disclosures (TNFD), which encourages companies to disclose their nature-related risks, dependencies, and impacts. The EU Nature Restoration Law which is key element of the EU Biodiversity strategy for 2030 aims to to restore ecosystems, habitats and species across the EU’s land and sea areas in order to enable the long-term and sustained recovery of biodiverse and resilient nature, contribute to achieving the EU’s climate mitigation and climate adaptation objectives meet international commitments Additionally, the Science Based Targets Network (SBTN) offers guidance on setting science-based nature targets, helping companies identify areas of action, measure progress, and align with global sustainability objectives.

As defined by the Nature Positive Initiative (2023), “Nature Positive is a global societal goal defined as ‘Halt and Reverse Nature Loss by 2030 on a 2020 baseline, and achieve full recovery by 2050’. To put this more simply, it means ensuring more nature in the world in 2030 than in 2020 and continued recovery after that.”

These frameworks, combined with increasing regulatory expectations at national and subnational levels, are driving corporate participation in the nature-positive agenda. Companies that proactively adopt these guidelines will be better positioned to navigate the transition and capitalize on new opportunities.

Steps corporates can take to respond to the nature-positive agenda:

The transition to a nature-positive economy presents an opportunity for businesses to lead and innovate. In order to get started, corporates should apply six key principles implied by the nature-positive agenda to future-proof their corporate strategy (Figure 3):

Figure 3: Carbon credit integrity and use landscape

What companies must do now!

Here are practical steps that companies can take to align their strategies with the nature-positive agenda (Pollination Group, 2024):

  • Step 1: Assess nature-related risks and dependencies: Begin by conducting a thorough assessment of your company’s impacts on and dependencies on nature, both within direct operations and across the value chain. Identify key areas of vulnerability, such as resource usage, waste management, and ecosystem services reliance.
  • Step 2: Apply the mitigation hierarchy: Implement the mitigation hierarchy by first avoiding unnecessary harm to nature, minimizing any unavoidable impacts, restoring degraded ecosystems, and compensating for residual effects. This holistic approach will help reduce negative impacts on biodiversity while creating value for the business.
  • Step 3: Set measurable and time-bound targets: Companies should set clear, measurable, and time-bound nature-related targets, ensuring that progress can be tracked and reported. This can include targets for biodiversity restoration, water conservation, sustainable sourcing, or reducing the carbon footprint.
  • Step 4: Implement “no regrets” actions for risk mitigation and value creation in parallel with progressing work on target setting and systems change initiatives.

Some additional practical steps suggested by Callirius in addition to the above ones:

  • Step 5: Engage in biodiversity and carbon markets: Corporates can tap into emerging environmental markets by investing in nature-based solutions, such as carbon credits, biodiversity credits, or water quality trading. These markets offer opportunities to regenerate ecosystems beyond the company’s own value chain.
  • Step 6: Foster collaboration with Indigenous Peoples and Local Communities: As 91% of land managed by Indigenous peoples and local communities (IPs and LCs) is in good or fair ecological condition, collaboration with these groups is essential for achieving biodiversity goals. Corporates should ensure inclusive decision-making, respecting the traditional knowledge of IPs and LCs and incorporating their leadership in conservation efforts.
  • Step 7: Integrate people, nature, and climate objectives: Sustainability strategies should be designed to minimize trade-offs between climate, nature, and people. For example, companies must balance reducing greenhouse gas emissions with safeguarding biodiversity. Applying circular economy principles, such as designing out waste and regenerating natural systems, can further enhance the resilience of both ecosystems and supply chains.

Taking these actions will position your company as a leader in the nature-positive transition, helping to set the standard for corporate sustainability in a nature-dependent world. As nature’s decline accelerates, those who act early will be the ones to thrive in a nature-positive future.

How are we best positioned to help companies?

We are uniquely positioned to help companies navigate the transition to a nature-positive economy by offering tailored, science-backed climate solutions that minimizes the risks associated with nature loss. Through our curated portfolio of high-quality nature-based projects, including carbon sequestration, biodiversity conservation, and enhanced ecosystem services, we enable businesses to mitigate nature-related risks while meeting their sustainability goals. 

By leveraging our partnerships with industry leaders and a robust science-backed, data-driven quality framework, we help companies assess their nature-related impacts, set measurable targets, and invest in nature-based solutions. By aligning corporate strategies with global principles for nature-based solutions, Callirius ensures businesses contribute to biodiversity restoration, strengthen supply chain resilience, and enhance long-term value creation in the shift toward a sustainable, nature-positive future.

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