Why Should Your Organisation Report on Nature?

With over half of the world’s GDP dependent on nature, it forms the foundations of the global economy. It therefore comes as no surprise that nature loss is the second most severe global risk to society between now and 2035 (WEF 2025 Global Risks Report). However, biodiversity decline and ecosystem collapse is not the only environmental risk sitting in the World Economic Forum’s Top 10 – it is accompanied by extreme weather events, critical change to earth systems and natural resource shortages, meaning environmental risks now form the top four long-term global concerns. Despite this, nature continues to be disregarded and destroyed, jeopardizing the potential for a sustainable society. The expertise and capacity to reverse and restore biodiversity exists, it just requires widespread support and prioritisation.

The private sector has and will continue to play roles in aggravating and resolving biodiversity loss. It is in an organisation’s own long-term interests to move to having net positive impacts on nature, as this is key for sustainable business models. Yet to date, only a handful of corporates have invested in understanding their nature related risks and opportunities. Businesses that do not attempt to understand where they interface with nature allow for it to be conveniently hidden or incorrectly priced in supply chains, prolonging the issue.

Nature-related business risks created by biodiversity loss are very real and will occur (materialise) where:

• Business Operations are Dependent on Nature: When businesses depend directly on nature for operations, supply chain performance, real estate asset values, physical security and business continuity
• Reputation is Damaged due to Business Impacts on Nature: When direct and indirect impacts of business activities on nature loss trigger negative consequences, such as losing customers or entire markets, costly legal action and adverse regulatory changes
• Societal Disruption and Market Risks due to to Nature Loss: When nature loss aggravates the disruption of the society in which businesses operate, which in turn can create physical and market risks

So, it is no longer a case of how or why do we account for nature impacts, it is when? Reporting resources and support are available and ready to use and a major push for adoption of corporate nature reporting frameworks is required. Proactive adopters of nature reporting will benefit as they realise and act on nature-related opportunities whilst mitigating risks, enabling holistic preparation for the future and design and implementation of robust business models. Quantitative biodiversity reporting and target setting is essential for driving effective nature protection and restoration – identification of areas for improvement and realistic targets can only occur after nature reporting is complete. Analysis by McKinsey and Company shows that whilst organisations may report on climate they are still failing to acknowledge the many other dimensions of nature (Mckinsey, 2022).

Investing in double materiality assessments and following the Taskforce for Nature-related Financial Disclosures (TNFD) and Science Based Targets for Nature (SBTN) frameworks will inform on organisational nature-related risks and opportunities and the steps that can be taken to mitigate negative and boost positive impacts on global biodiversity.

The guidance is out there and integrating these frameworks into annual reporting will improve sustainability of business operations:

• TNFD General Guidance: https://tnfd.global/assessment-guidance/
• TNFD Sector Specific Guidance: https://tnfd.global/tnfd-publications/?_sft_framework-categories=additional-guidance-by-sector#search-filter
• The TNFD LEAP Approach: https://tnfd.global/publication/additional-guidance-on-assessment-of-nature-related-issues-the-leap-approach/#publication-content
• SBTN Guidance and how it aligns with the TNFD: https://tnfd.global/publication/additional-draft-guidance-for-corporates-on-science-based-targets-for-nature-2/#publication-content
• SBTN Onboarding Support: https://sciencebasedtargetsnetwork.org/resources/#onboarding-support-for-companie
• SBTN Target Setting Guidance: https://sciencebasedtargetsnetwork.org/resources/#target-setting-guidance-for-companies

It’s in everyone’s interests to protect and restore nature and we must all take proportionate action to do so.