Biodiversity and sustainability are essential to reducing corporate risks. Here¡¯s why.
October 15, 2025
Businesses can manage biodiversity risks, meet new rules, and build resilience through smart, nature-based strategies
Just as you¡¯re getting your corporate ducks in a row on climate change, new sensitivities and requirements are emerging for biodiversity. And maybe in the form of real ducks. As the world continues to address the climate crisis, corporations are being asked to do their part for biodiversity as well.
And there¡¯s a good reason¡ªbiodiversity matters, for the planet and for business. As biodiversity declines, companies face growing risks. These include new biodiversity regulations, shifting investor expectations, and changing customer values. If you¡¯re unsure how to include biodiversity in your business plans, you¡¯re not alone. And we have good news. You don¡¯t need to start from scratch and build brand-new practices. You can build on what you're already doing. Biodiversity connects to many existing efforts, like:
- Climate action
- Species permitting
- Environmental health and safety (EHS)
In this blog, we will answer some basic questions about biodiversity. And we¡¯ll share some practical ways to include it in your planning.
What is biodiversity, and why is it important?
Biodiversity is the variety of life on Earth¡ªfrom genes to species to ecosystems. Nature is broader. It includes living things and the physical environments that support them¡ªlandscapes, wildlife, and more.
So, biodiversity and nature aren¡¯t the same thing. But don¡¯t be surprised to see them used interchangeably within the context of corporate sustainability reporting and target setting. We will use both terms here.?
By prioritizing nature, companies improve their reputation and help address global crises, like declining wildlife populations.?
Why do biodiversity and sustainability matter to companies?
Biodiversity and nature are essential to the global economy. A 2023 PwC report found that 55 percent of the global GDP depends on nature. When biodiversity declines, businesses face two types of risk:
- Physical risks: These affect products, supply chains, and other direct dependencies. For example, losing pollinators or clean water sources can disrupt operations.
- Transition risks: These include reputational, legal, and regulatory risks. As views shift, companies may face pressure from investors, customers, and governments.
Healthy ecosystems provide things like clean water and pollination. Those things directly benefit people. But since the 1970s, wildlife populations have dropped by nearly 70 percent. Freshwater species have declined by almost 85 percent. That¡¯s not good. The trends are prompting companies to act more on biodiversity and sustainability.?
What is the best way for your company to advance its biodiversity and sustainability strategy? First, it¡¯s OK to start slowly.
Governments are responding. And what do we see? More biodiversity regulations for businesses to deal with. For example, Canada now requires large firms to share financial details related to the climate. In California, a new state law requires major firms to report their greenhouse gas emissions. These new policies show that environmental, social, and governance (ESG) planning isn¡¯t optional. And it includes biodiversity and sustainability.
And a good nature strategy is an insurance policy that creates resilience against future risks to a company¡¯s operations and supply chain. Nature-based Solutions (NbS) initiatives are an important part of business strategies. NbS includes things like:
- Reforestation
- Carbon solutions
- Ecosystem restoration
When companies prioritize nature, they can create business advantages. They boost their reputation and comply with biodiversity regulations. They also build long-term resilience.?
Navigating the alphabet soup
If you¡¯re trying to use biodiversity and sustainability in your business strategy, you¡¯ve likely run into some strange acronyms. It can look a bit like alphabet soup. Here are some to know:
- CSRD (corporate sustainability reporting directive)
- SBTN (science-based targets network)
- CSDDD (Corporate Sustainability Due Diligence Directive)
One of the most widely used frameworks is the Taskforce on Nature-related Financial Disclosures (TNFD). More than 500 organizations have joined TNFD. They want to better understand and report on how nature affects their business¡ªand how their business affects nature.
TNFD offers ways to lower risks on both sides. It also gives companies a consistent framework to study and disclose their impact on biodiversity and sustainability. Businesses can choose to follow TNFD and be seen as leaders in protecting biodiversity. They can also use the TNFD framework, including the LEAP process, to guide their choices. It walks companies through four clear steps.
- Locate: Where do your assets interface with nature?
- Evaluate: What parts your business, including its supply chain, depend on biodiversity?
- Assess: How does biodiversity loss pose risks to your operations? How can you address those risks?
- Prepare: How will you respond to and report on biodiversity and nature-related issues that are material?
Note the word ¡°material¡± here. The LEAP framework helps companies focus on what really matters in their relationship with nature to address their dependencies and risks.
Healthy ecosystems are vital to maintaining things like a healthy water supply.
Taking the first step toward biodiversity and sustainability
What is the best way for your company to advance its biodiversity and sustainability strategy? First, it¡¯s OK to start slowly. Think about small steps, like assessing your EHS system for existing nature protection and gaps. Review your species permitting strategy. And seek ways to include nature reporting or highlight your achievements. Or build a business case by quantifying the value of your nature strategy in terms of resiliency.
Another option is to begin by identifying needs, risks, and engaging with stakeholders. Start with operations and then move on to your value chain. Work towards meaningful and measurable goals. This includes searching for ways to do this that align with existing activities focused on water, climate, or compliance with the Endangered Species Act.
Integrate biodiversity into nature-based carbon sequestration projects. Even simple changes can have big impacts. Finally, communicate your successes with an emphasis on how integrating nature builds resilience.
So back to getting your ducks in a row. You can leverage existing systems and work to help build resiliency. In the end, even the ducks will be happy.?
