Over the past decade, businesses have made significant strides in mitigating and adapting to climate change. However, there is growing recognition that focusing on additional dimensions of nature is crucial for both reducing risks and creating new opportunities. Natural carbon sinks, such as forests and oceans, absorbed approximately 55% of annual anthropogenic carbon emissions in 2019, highlighting the need for businesses to protect and restore these ecosystems.
The World Economic Forum's 2024 Global Risks Report identified environmental risks as dominant across the short, medium, and long term. The top four global risks over the next 10 years—extreme weather events, critical changes to Earth systems, biodiversity loss, ecosystem collapse, and natural resource shortages—are all linked to nature. Over half of global GDP is moderately or highly dependent on nature, underscoring the private sector's critical role in addressing these challenges.
The World Economic Forum, alongside McKinsey Sustainability, is convening leading global companies to shape a collaborative, cross-sector response to elevate the importance of nature and its challenges. This report aims to accelerate the transformation of companies' operations and value chains, enabling new business models that benefit both nature and business outcomes.
Global nature ambitions are driving businesses to proactively address their nature-related risks and opportunities. In 2022, 196 countries adopted the Kunming-Montreal Global Biodiversity Framework (GBF), which mandates halting and reversing nature loss. Companies are encouraged to assess, disclose, and reduce biodiversity-related risks and negative impacts. The TNFD, SBTN, NPI, Business for Nature, and ISSB are providing guidance on risk management, disclosures, and target-setting.
Nature is becoming increasingly central in business operations as new reporting and disclosures bring nature to the forefront for investors and consumers. By 2030, up to $10.1 trillion in annual revenue opportunities and cost savings could be unlocked through nature-positive solutions like precision-agriculture technologies, smart buildings, and circular business models.
Companies that transform their business models to proactively mitigate nature-related risks will enhance their resilience and position themselves to seize opportunities in a nature-positive and net-zero world. This report features six case studies illustrating how companies are addressing material nature challenges within their operations and across their value chains.
Nature Realm | Company | Headquarters | Key Initiatives |
---|---|---|---|
Land | IKEA | Netherlands | Pursuing a forest-positive business model by preventing deforestation and promoting responsible forest management. |
Aditya Birla Group | India | Creating circular resource-use opportunities across its business by repurposing waste outputs. | |
Yara | Norway | Investing in long-term crop productivity by launching new technologies and products that support soil health. | |
Ocean | Walmart | USA | Securing a low-cost supply of seafood through transparent supply chains and sustainable fishing practices. |
Ørsted | Denmark | Mitigating the impact of offshore wind projects on marine ecosystems by generating net-positive biodiversity outcomes. | |
Freshwater | Suntory | Japan | Pursuing efficiencies in water usage and investing in watershed replenishment to secure a sustainable supply of freshwater resources. |
These case studies demonstrate the progress companies are making towards a nature-positive future, highlighting the urgent need for collective action and collaboration across sectors to achieve a more sustainable future.