Why biodiversity is good for business

Biodiversity and nature thrive together, and so does your business. However, with biodiversity declining rapidly, the systems businesses depend on are increasingly at risk. Imagine the future for your business with disrupted supply chains, rising costs, and customers demanding more sustainable practices.

The real question isn’t why we should care about biodiversity loss but how investing in nature can enhance your business’s resilience. Read on to learn why biodiversity isn’t just beneficial for the planet—it’s a crucial asset for your business.

It’s estimated that we are consuming natural resources like water, food, and land 1.7 times faster than the Earth can regenerate them. Our current demand on nature would require the resources of 1.7 planet Earths to sustain. The World Economic Forum estimates that over 50% of global GDP relies on nature and its ecosystem services.

The risk of biodiversity loss and ecosystem fragmentation includes:

• Raw material shortages: Industries like agriculture, food production, pharmaceuticals, and cosmetics face significant risks from declining biodiversity, affecting the availability of essential resources.
• Disrupted supply chains: Biodiversity loss disrupts access to raw materials and increases production costs.
• Rising costs: Scarcity due to environmental degradation drives up prices, adding pressure to businesses and consumers alike.
• Increased health risks: Biodiversity decline can reduce air and water quality, lower food nutritional value, and heighten disease vulnerability.

This growing threat has pushed governments and businesses toward action, such as the Global Biodiversity Framework (GBF), launched at COP15 in November 2022. The framework seeks to halt biodiversity loss by conserving 30% of coastal, marine, land, and inland water areas by 2030.

Additionally, the Taskforce on Nature-related Financial Disclosures (TNFD) is an international integrated reporting framework that is being developed to allow companies to assess and report their impacts and dependencies on nature.

We have the fourth-highest extinction rate as a country and are the only developed country on the list. The Australian government is being called to step up to its commitments made at COP15 and ensure a healthy and resilient environment for all sectors of the economy and future generations.

The Australian government is currently consulting on the framework for the Nature Repair Market, which aims to promote biodiversity restoration.

Supporting nature-positive initiatives is a great way for your business to start having a positive effect. Here’s how you can start your journey to becoming a nature-positive business:

1. Assess and understand: Evaluate your business’s impact and reliance on capital assets and natural ecosystems. Simply put, an inventory of the natural resources needed to conduct your business. Check out our free resource to help you look at your ESG measurement and goals.
2. Support biodiversity initiatives: Invest in or partner with nature-based projects that align with your business goals. Supporting nature-based solutions increases the positive impacts of emission reduction and sustainability initiatives. Partnering with Carbon Positive Australia offers simple business solutions that have a direct, positive impact on the environment.
3. Set goals to reduce environmental impact: Implement circular and regenerative practices, reduce waste and consumption, and seek opportunities for sustainable innovations. This could happen inside or outside your business. Partnering to support the growth of Miyawaki pocket forests helps communities around Australia take an innovative approach to increasing green canopy and biodiversity in small urban areas.

Want to learn more about the importance of biodiversity? Find out more here.

One way to integrate biodiversity into your business strategy is by supporting biodiverse native reforestation projects in Australia. If you want to learn more about these impactful initiatives, please head over to the link below.