Biodiversity loss is existential and a threat multiplier

Further declines in biodiversity can accelerate climate change, lead to mass famine, and contribute to the proliferation of new diseases. Nature loss can have important ramifications for both businesses and humanity in the short and long term.

A decline in the ecosystem services that nature provides will initially pose a direct physical risk to businesses as harvests become more unreliable, weather patterns change, and pollinators no longer support agriculture. The risk is both event-driven, such as flooding or drought, and longer-term, such as the reduction in rainfall caused by deforestation. The economic implications go far beyond “front-line” agriculture as businesses are the links in multi-national supply chains and support local livelihoods and tax income, so the reverberations are farreaching.

As the depletion of nature becomes increasingly evident and communities begin to suffer the effects, there is an increasing risk of litigation and regulatory change for the businesses causing damage, such as penalty fines for ocean dumping, plastic pollution, or illegal deforestation. With climate change, we have all become accustomed to the concept of reducing our footprint and discussing the goal of “net zero”. The biodiversity crisis is still very new to many people, and we must quickly adapt to the concept of “net zero for carbon, net gain for nature” if we are to avoid mass extinction and the associated economic hardship.

With at least half of the world’s economy derived from biological resources, if we do not take strong measures now to protect our biodiversity, we will face greater harm in the future

Further biodiversity loss can materially harm society and cause the following problems: Disruption of supply chains: More than 50% GDP depends on nature. The three largest sectors that are highly dependent on nature are construction, agriculture and food & beverages. Accelerated climate change: Nature-based solutions to climate change, such as carbon storage and absorption properties of peatlands and forests, are being lost. Declining medical discovery: We are losing one potential major drug every two years as a result of deforestation. Mass famine and malnutrition: One-third of food supply depends on pollinators and could be at risk from pollinator decline. We need a 67% increase in land area to meet expected food demand in 2050. One-third of the Earth’s land is serverely degraded and fertile soil is being lost at a rate of 24 billion tonnes per year. New diseases: 75% of new human infectious diseases originate in animals. Biodiversity loss is driving wildlife into closer proximity with humans and increase the risk of outbreaks. Economic decline: Biodiversity loss could drain US$10 trillion from the global economy by 2050 if we do not make changes, according to the Global Futures report by the World Wildlife Fund.