Turning Biodiversity Loss into Business Opportunities: A Guide to Nature-Positive Strategies

The loss of biodiversity not only threatens nature but also business models – especially in industries like agriculture, food production, or pharmaceuticals. However, a nature-positive economy offers companies the opportunity to minimize risks while simultaneously opening up new markets.

What does this mean in concrete terms? Through sustainable sourcing, ecosystem restoration, and the development of nature-friendly products, companies can not only stabilize their supply chains but also reduce costs in the long term and secure competitive advantages. Science-based targets and clear metrics help make progress measurable and meet increasing regulatory requirements.

The key approaches:

• Analyze dependencies and impacts: Understand how your company benefits from and influences nature.
• Set biodiversity targets: Develop measurable and actionable goals with the Science Based Targets Network (SBTN).
• Implement strategies: Adapt supply chains, restore ecosystems, and develop products that benefit nature.
• Measure progress: Capture data precisely, define KPIs, and report transparently.

The decisive advantage? Companies that act now secure their future while simultaneously contributing to protecting our natural foundations.

Understanding Nature Dependencies and Impacts

What are Nature Dependencies and Impacts?

Many companies are more dependent on nature than appears at first glance. Nature dependencies describe the extent to which business activities – such as pollination, water purification, or climate regulation – benefit from nature. These dependencies often form the foundation of entire business models. According to the World Economic Forum, more than half of global GDP – approximately $44 trillion – is moderately or highly dependent on nature and its services.

On the other hand, nature impacts show how corporate actions influence the environment. This includes, for example, interventions in land use or changes in supply chains. Distinguishing between these two perspectives is crucial for recognizing both challenges and opportunities.

Nature provides us with so-called ecosystem services, which are divided into four categories:

• Provisioning services: These include raw materials like wood or food.
• Regulating services: These include processes like climate stabilization.
• Cultural services: These encompass recreational spaces and inspiration.
• Supporting services: These include basic functions like nutrient cycles.

Which of these services are particularly relevant for your company depends heavily on industry and business activities. This understanding is the key to systematically identifying risks and opportunities along the entire value chain.

Identifying Risks Along the Value Chain

A close look at the entire value chain – from internal operational processes to upstream and downstream activities – helps identify potential risks from nature dependencies early. Research by McKinsey shows that companies with high nature dependencies face potential revenue losses of up to 15% by 2030 if biodiversity continues to decline at current rates. This allows you to take targeted measures before problems arise.

Business Risks from Biodiversity Loss

The loss of biodiversity brings significant uncertainties that can directly or indirectly affect business models. Physical risks include supply chain disruptions due to ecosystem collapse, while transition risks emerge from changing regulations and consumer preferences. In an environment that is constantly changing due to new regulations and societal expectations, it is particularly important to comprehensively consider nature dependencies and impacts. This way, you can strengthen your company's resilience and position yourself for long-term changes.

Setting Science-Based Targets for Biodiversity

Converting Materiality into Measurable Targets

To translate biodiversity risks into clear, actionable targets requires a thoughtful approach. The Science Based Targets Network (SBTN) provides a helpful framework for this. It supports companies in analyzing their dependencies on and impacts on nature and determining the most important areas for action. The key lies in converting the identified nature dependencies and impacts into measurable, time-bound targets. A particular focus should be on the main drivers of biodiversity loss. Given the alarming threat to one million species and the danger of a 6th mass extinction, this is more urgent than ever. Each target should be clearly defined – with precise metrics, a fixed timeframe, and clear responsibilities.

The SBTN methodology follows a structured five-step approach: Assess, Interpret & Prioritize, Measure & Set, Act, and Track. This systematic process ensures that companies focus their efforts on the most material biodiversity impacts and dependencies within their value chains.

Once these measurable targets are established, the next step is anchoring them in the business strategy.

Linking Targets with Business Strategy

For biodiversity targets to show long-term impact, they must be closely linked with business strategy. Only this way can sustainable results be achieved in the corporate context. The SBTN framework provides valuable support by clearly aligning targets with the Sustainable Development Goals (SDGs) and the Post-2020 Framework of the Convention on Biological Diversity. This ensures that measures don't stand in isolation but are part of a larger, global commitment to biodiversity protection.

Leading companies are already demonstrating how this integration works in practice. For instance, Unilever has committed to achieving net-positive impact on biodiversity across its value chain by 2030, while Nestlé has set targets to restore degraded landscapes and improve biodiversity across its agricultural supply chains.

Implementing Nature-Positive Strategies

Implementing a nature-positive strategy can be divided into three central areas of action. These include redesigning operations and procurement, targeted ecosystem restoration, and developing nature-friendly products and services. In the following, we take a closer look at concrete measures in these areas.

Redesigning Operations and Procurement

The cornerstone of nature-positive strategies lies in transforming the supply chain. The goal is to design procurement practices that not only protect biodiversity but actively promote it. The first step: identify and evaluate suppliers to select those that pursue sustainable and biodiversity-promoting approaches.

Especially in resource-intensive industries, a shift toward regenerative procurement models is essential. Preference is given to suppliers who, for example, use biodiversity-friendly cultivation methods or contribute to ecosystem regeneration through their work. Companies like Patagonia are pioneering regenerative agriculture practices, working directly with farmers to restore soil health and biodiversity while securing their cotton supply chains.

Biodiversity criteria become standard in supplier contracts. Companies develop specific metrics that go far beyond traditional environmental standards. These include values such as species diversity on agricultural land, the proportion of natural habitats, or the amount of carbon stored in soil.

Another approach is diversifying the supply chain and building local partnerships. This reduces dependencies on regions with threatened biodiversity while simultaneously strengthening regional ecosystems.

Ecosystem Restoration and Regeneration

Beyond optimizing procurement, the active restoration of natural resources takes center stage. What was once often considered purely philanthropic engagement is increasingly viewed as a strategic business decision. Intact ecosystems not only secure supply chain stability but also long-term business operations.

The first step is to identify degraded areas within your own value chain – whether in agricultural regions, former industrial sites, or polluted waterways. Together with ecologists and local communities, tailored restoration plans are then developed.

Financing such projects increasingly occurs through new mechanisms like biodiversity credits. These function similarly to CO₂ certificates and enable companies to achieve measurable success in nature conservation – such as through restoring hectares of land, the return of certain animal species, or improving water quality. The IUCN estimates that biodiversity credit markets could mobilize billions of dollars for nature conservation by 2030.

An exciting approach is linking restoration with existing business activities. Energy companies combine solar park construction with creating wildflower meadows, while logistics companies create near-natural green spaces around their distribution centers that serve both as habitats and natural climate regulators.

Developing Nature-Positive Products and Services

Developing products and services that benefit nature offers companies completely new possibilities. It's not just about making existing offerings more sustainable, but creating new solutions that actively contribute to regeneration.

In product development, circular economy principles play a central role. Materials that bind CO₂ during their growth while simultaneously creating habitats are preferred. Companies like Interface have developed carbon-negative carpet tiles using bio-based materials that actually remove more carbon from the atmosphere than they emit during production.

In the service sector, new business models are also emerging. For example: companies offer "ecosystem-as-a-service," where they take over the restoration and maintenance of habitats for others. Digital platforms, in turn, enable real-time capture of biodiversity data and offer it as valuable information services.

An important aspect is the economic valuation of ecosystem services. Companies develop methods to quantify the value of clean air, water purification, or pollination services and integrate them into their business models. This creates financial incentives for protecting and promoting biodiversity.

All of this only succeeds through close collaboration with partners along the entire value chain. Research institutions, NGOs, and local communities play just as important a role as companies themselves. Nature-positive strategies require a strong network that works together on sustainable transformation.

Measuring and Reporting Progress

To successfully implement nature-positive strategies, you need precise measurement methods and transparent reporting. Without reliable data, you can neither evaluate your internal successes nor convince external stakeholders. At the same time, regulatory requirements are increasing, particularly through the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS).

The challenge is translating ecological relationships into precise and scientifically sound metrics. It's not just about data collection, but about a systematic approach that makes long-term trends visible and enables meaningful comparisons. In the following, you'll learn how systematic data collection, KPI tracking, and preparation for regulatory requirements can succeed.

Building a Biodiversity Database

The first step in measuring biodiversity is systematically collecting site-specific data. Geospatial information plays a central role here, as biodiversity strongly depends on local conditions. Using satellites and drones, changes can be captured in real-time. Global Forest Watch demonstrates how satellite technology can monitor deforestation and forest degradation in near real-time, providing companies with crucial data for supply chain monitoring.

Choosing the right indicators is crucial. While traditional environmental measurements often only consider individual parameters, biodiversity monitoring requires a more comprehensive approach. This includes species diversity, habitat quality, ecosystem functions, and habitat connectivity.

A particularly important indicator is soil health. Metrics such as organic carbon content, microorganism diversity, and nutrient cycles provide insights into ecosystem stability. These values can also be collected and compared in standardized ways.

Citizen science can also expand the database. With smartphone apps like iNaturalist, people can document species sightings and record landscape changes. Besides valuable data, such participatory approaches also create awareness and acceptance for biodiversity projects.

Artificial intelligence is revolutionizing data analysis. Machine learning algorithms can automatically identify species in images, analyze vegetation changes, and recognize patterns invisible to the human eye. This saves time and significantly reduces costs. All this data forms the foundation for precise KPI measurements and sound regulatory reporting.

Tracking KPIs and Results

To objectively evaluate progress, you must define clear baselines and develop a KPI system that captures both short-term measures and long-term impacts. Creating these baselines is complex but forms the foundation for all further measurements.

Composite indices have proven effective for bundling complex biodiversity aspects into a single metric. The Mean Species Abundance (MSA), for example, combines species number and abundance into an understandable value that can be easily communicated to executives and investors. The MSA measures the average abundance of original species relative to their abundance in undisturbed ecosystems, providing a standardized way to assess biodiversity health across different regions and ecosystems.

A challenge is spatial scaling. Biodiversity effects at the operational level often differ significantly from impacts at the landscape level. Hierarchical measurement systems help place local successes in larger ecological contexts.

It's also important to document negative impacts as systematically as positive developments. Restoration measures can, for example, temporarily disrupt existing habitats. Transparent reporting on such transition phases creates credibility and sets realistic expectations.

Integrating cost-benefit analyses connects ecological with economic metrics. Modern approaches quantify the monetary value of ecosystem services, making biodiversity investments comparable with other business decisions. This facilitates internal budgeting and external communication.

Preparing for Regulatory Disclosures

Starting in 2024, the CSRD requires large companies to systematically report on their nature impacts. The European Sustainability Reporting Standards (ESRS) establish clear minimum requirements that go beyond previous sustainability reports.

Standard ESRS E4 requires companies to present their dependencies on nature, their ecological impacts, and their biodiversity measures using clear quantitative targets. Particularly important are scientifically sound indicators for measuring progress.

Double materiality requires that you assess both the financial risks to your company and your environmental impacts. This means you must analyze how biodiversity loss threatens your business and simultaneously how your activities contribute to the biodiversity crisis.

Although auditing standards for biodiversity data are still in development, initial frameworks are emerging. External auditors increasingly demand traceable data sources and standardized measurement procedures. Companies that invest early in professional data collection can avoid costly improvements later.

The EU Taxonomy Regulation links biodiversity criteria with financing. Activities are only considered sustainable if they cause "no significant harm" to ecosystems. This criterion is increasingly becoming a central standard for investors and regulatory authorities.

Conclusion: Turning Risks into Opportunities

An economy that operates in harmony with nature is becoming increasingly important for companies. Those who act today not only secure competitive advantages but also reduce dependence on threatened ecosystems – a crucial step for long-term success.

The first step? A thorough analysis of dependencies on natural resources along the entire value chain. Building on this, science-based biodiversity targets can be formulated that not only enable measurable progress but also meet the growing regulatory requirements of the EU.

But this also means: a fundamental realignment of business processes is needed. Companies that successfully manage this transformation focus on ecosystem restoration and develop products that give back more to nature than they take. These changes pay off – through lower raw material costs, more stable supply chains, and new business opportunities.

Transparency is crucial. With clear metrics and regular reports, companies create trust – among investors, customers, and authorities. The CSRD requirements may seem complex at first glance, but they offer the opportunity to promote clarity and comparability in the market.

Companies that implement nature-positive strategies now can transform an existential challenge into a competitive advantage. They not only secure their own future but also make an active contribution to protecting natural foundations – the basis of all economic activities.

The shift toward a nature-positive economy is an investment in stability, innovation, and success. Now is the moment to act and together shape a sustainable economy that benefits both people and nature equally.

FAQs

How can companies better understand their dependence on natural resources along the value chain?

Companies can take a closer look at their use and dependence on natural resources along the entire value chain by systematically analyzing all business areas. A value chain analysis provides a structured method to identify critical dependencies and potential risks early.

At the same time, it's crucial to assess the ecological impacts of resource use. Why? This way, approaches can be identified to make processes more environmentally friendly. Such analyses not only help reduce nature-related risks but also open up new opportunities for future-oriented value creation. Conscious and efficient use of resources not only strengthens sustainability but makes companies more resilient to regulatory requirements and ecological changes.

How can companies integrate nature-positive strategies into their business processes?

Companies can pursue nature-positive approaches by integrating biodiversity targets directly into their business processes and focusing on sustainable supply chains. A central step is using biodiversity assessment tools. These enable measuring and systematically reducing impacts on nature.

Additionally, new business models that actively contribute to promoting biological diversity are emerging. Progress should always be transparently communicated in sustainability reports – this creates trust among stakeholders. Such measures combine ecological responsibility with economic success while supporting compliance with legal requirements.

How can companies in Germany implement the new requirements of the Corporate Sustainability Reporting Directive (CSRD)?

Companies in Germany can successfully implement the new CSRD requirements by integrating them early into their ESG strategies. Specialized software solutions play a central role in efficiently managing complex reporting obligations. Equally important is collaboration with sustainability reporting experts to ensure all legal requirements are correctly interpreted and implemented. Regular reviews of legal requirements also help respond to changes in a timely manner.

Another central point is training relevant employees so they understand and can implement the new requirements. Internal control systems and appropriate assessment frameworks are necessary to ensure the quality of collected data. With a well-thought-out and structured approach, reporting can not only be designed efficiently but also ensure all legal requirements are met.