Businesses Face Collapse Unless They Protect Nature, Major Report Warns
A major scientific report, approved by more than 150 governments, has issued a stark warning that many companies risk collapse unless they take urgent action to better protect nature. The assessment from the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) highlights that the natural world underpins almost all economic activity, from healthy rivers to productive forests, but human consumption is driving unsustainable resource use.
The Scale of the Biodiversity Crisis
Scientists believe we are witnessing the largest loss of life since the dinosaurs, with profound consequences for the global economy. The IPBES assessment reveals that governments subsidise activities driving nature's destruction by a staggering $2.4tn (£1.8tn) each year. In 2023, an estimated $7.3tn of public and private finance flowed into business activities harmful to nature, while only $220bn went to biodiversity conservation efforts.
"The loss of biodiversity is among the most serious threats to business," said Prof Stephen Polasky, co-chair of the IPBES assessment. "The twisted reality is that it often seems more profitable to businesses to degrade biodiversity than to protect it. Business as usual may once have seemed profitable in the short term, but impacts across multiple businesses can have cumulative effects, aggregating to global impacts, which can cross ecological tipping points."
Corporate Inaction and Government Backsliding
Despite these risks, there is little sign of humanity responding with the urgency that science demands. Less than 1% of public companies mention biodiversity in their impact reports, according to the assessment. Eva Zabey, CEO of Business for Nature, a coalition pushing for greater conservation action, stated: "The IPBES assessment is a scientific reality check: biodiversity loss is now a systemic risk to the global economy and business itself. We have the frameworks. We have the solutions. There is no excuse for inaction."
However, the report acknowledges that businesses cannot act alone. With many companies facing bigger immediate problems, and the assessment unlikely to cross the desk of major CEOs, government leadership is crucial. Yet, there are increasing examples of backsliding. Just four years ago, almost every government agreed at Cop15 in Montreal to transformational change for nature by the end of the decade, but progress is faltering.
The Need for Collective Action
At the report's launch, co-chair Matt Jones emphasised that meaningful action requires collective effort. "I don't think we can expect businesses to take all the action," he said. "That is not what this report says. We do not say that businesses have to act voluntarily. For the change that we really need, we need collective action. And that includes government. They are in an incredible position to set the way for businesses to then respond."
The world desperately needs leadership on nature, especially in an era of political uncertainty. From fossil fuel companies driving global heating to extractive firms destroying ecosystems, stronger action is needed across sectors. The report serves as an urgent wake-up call, urging businesses, the financial sector, and governments to turn intention into impact by implementing systems and incentives swiftly.
