The degradation of nature and its essential habitats poses a huge threat to businesses and the economy at large. At first glance, it may not be obvious just how much we depend on nature and its resources for the delivery of products and services.
However, the impact of human activity on nature is already impacting business operations, with these effects poised to continue and worsen. Some impacts include increased costs across supply chains, loss of jobs, resource shortages and of course, negative impacts on the planet and local communities at large.
While many businesses have taken steps to build out comprehensive environmental, social and governance (ESG) frameworks to help mitigate these issues, the journey is only beginning. Many companies have set net zero emissions goals, but as a business community we need to go further. That’s why its critical to start building out comprehensive business operations that support a holistic nature positive future.
In this article, we’ll explore:
- How critical nature is to the business world
- How leaders can start adopting nature positive strategies
- First steps to a nature positive businesses
Business and nature: The risks and the opportunities
It’s time that businesses look at the degradation of nature as an opportunity rather than an impending crisis. Even if a business has historically overlooked nature in its decision-making, there is a huge opportunity to make changes and create impact now.
The opportunity lies in adopting a holistic nature positive approach to all areas of the business. A nature positive approach ensures that nature is protected, restored and regenerated at every opportunity. The benefits of adopting such an approach for business are plentiful:
- Resource usage: Nature can provide natural resources that can often be more effective than manufactured resources, for example, natural streams over man-made drainage systems
- New revenue opportunities: By innovating in the area of nature, businesses can adopt new strategies or identify new product or service opportunities that consumers want or need, thus creating new potential revenue streams
- New products and services: As we collectively understand the value of nature, many businesses can leverage the demand for more conscious and eco-friendly products and services, and maximise on these opportunities
- Indirect opportunities: Other more reputational benefits to the business include achieving ESG goals, becoming leaders in nature positive frameworks, supporting local communities and creating good PR
How to start implementing nature positive strategies
There are still a lot of questions and obstacles for businesses when it comes to building out nature positive strategies. From convincing board and senior executives of the potential ROI to figuring out how to effectively measure nature impacts, nature positivity in the business world is still very much in an exploratory phase.
However, no strategy will be perfect at first, but making a start is crucial to mitigate future risks. The World Economic Forum outlines the initial steps business leaders can take to adopting nature positive strategies in its 2023 Guide to Valuing Nature:
1. Make the case for nature
To begin, it’s important to communicate the value and potential of adopting a nature positive approach to all senior leadership, the board, chairpersons and any other important stakeholders. Outlining the impending risks and opportunities of investing in these frameworks now will enable senior leaders to make a collective decision and a collaborative effort towards nature positivity with the business.
2. Review business operations
Take stock of the business and its operations as they are in the current moment. Identify existing areas within the business where environmental and/or social risk and impact assessments would be most needed. Use the results to build out a framework with targets and recommendations for future improvements.
3. Assess impact on nature
Start the assessment and disclosure process as part of the Taskforce on Nature-Related Financial Disclosures (TNFD). This will allow you to identify where your business activities directly interact with nature in your operating locations.
4. Make a plan
Once you have identified existing weaknesses in your business operations and where your business activity is impacting on nature, you can start to build out a long-term strategy.
5. Communicate
Once the plan is defined, present it to all stakeholders for total business alignment. Ensure all targets and commitments are achievable and clear to avoid the risk of greenwashing accusations.
First steps to a nature positive business
While making plans to become a nature positive business, there are two quick wins that any company can take to mitigate or halt their existing impacts on nature. These actions include:
1. Immediate avoidance reduction of nature impacts
Immediate action should be taken to assess the businesses current impacts on nature. This can be achieved by assessing local business operations and identifying opportunities for more efficient processes. A business can also look outwards towards their local supply chains to assess where they can reduce risks and improve efficiencies.
2. Future plans to restore and regenerate
Businesses can assign budgets and make plans to invest in credible nature restoration projects, ideally in the areas where they are or have affected natural habitats historically. This can be done by investing in local projects, or partnering with local bodies, governments and non-profit organisations.
Investing in nature positivity
Too long have we ignored nature and undermined its contribution to the business world. We have a unique opportunity to reverse our adverse effects on nature by universally adopting nature positive strategies.
This is not something that is nice to have, but a future-proofing opportunity for businesses to reduce risk while also innovating and exploring new opportunities. Ultimately nature positivity will be a driving force for future business success.
Dulra is developing a cutting-edge AI data management platform designed to help nature-based solution projects secure funding by converting raw ecological, climate and socio-economic data into actionable reports for funders. Learn more.
