The World Economic Forum has recently released six reports with the goal of hastening the worldwide transition towards a future that is positive for nature. Out of these reports, five focus on specific strategies for key industries such as offshore wind, mining and metals, ports, and automotive (both globally and with a focus on China), while the sixth report delves into financing options for developing sustainable, nature-friendly cities.
According to the report, even though 78% of Fortune 500 companies have committed to climate goals, only a small 12% have established targets to tackle the decline in biodiversity.
Just 37% of the world's 500 most populous cities have plans in place to manage and protect nature sustainably. Furthermore, spending on urban nature, such as parks, green roofs, wetlands, and other green or blue spaces, has decreased between 2018 and 2023. However, it is crucial to conserve nature in order to address climate change and promote human health, well-being, and economic stability.
The report series, developed in collaboration with Oliver Wyman, offers practical steps to preserve biodiversity, meet climate targets, and promote economic resilience in various industries and regions in light of increasing environmental challenges.
The report indicated that while corporate actions are showing positive momentum, efforts to address nature and climate challenges are still inadequate in restoring planetary health. It is crucial for companies to have more investment pathways and opportunities that showcase how profits, growth, and jobs can align with ecological prosperity. The report series underscores the critical dependencies and impacts of urban areas and four key sectors on nature, presenting actionable strategies tailored to each sector for corporate leaders to drive transformative change in their industries. Notable companies like Volvo Cars, Anglo American, Vattenfall, CATL, and the Port of Antwerp have contributed guidance and insights to facilitate sector transitions towards a more nature-positive future.
"The business case for safeguarding nature is clear, and companies can start with no-regret actions today,” said Akanksha Khatri, Head, of Nature Action Agenda, World Economic Forum. “Every industry has unique challenges and opportunities when it comes to protecting nature. By offering tailored, sector-specific strategies, we are equipping leaders with the tools to accelerate meaningful action and deliver transformative change now.”
Climate and global economy Nature plays a crucial role in maintaining a healthy climate and underpinning the global economy. It is estimated that around $44 trillion of economic value generation – over half of the world's GDP – is moderately or highly dependent on nature. However, biodiversity and functioning ecosystems are facing significant threats from issues such as land and sea use change, climate change, pollution, water scarcity, and invasive species. It is imperative that companies, investors, and government leaders take action to address nature loss without delay.
While there has been a growing momentum among companies and cities following the COP16 biodiversity summit in Colombia in October 2024, there is a lack of sectoral guidance and strategic steps to guide nature-positive efforts. It is essential for stakeholders to prioritize nature conservation and integrate it into their decision-making processes to ensure a sustainable future for our planet and economy.
“We are beginning to see nature emerge as a key issue for leaders across industries, the financial sector, and the public sector,” said Nick Studer, President and Chief Executive Officer, Oliver Wyman. “These reports are critical to translate ambition on nature into action, by providing clarity around a complex landscape and offering leaders the tools they need to start transforming their operations towards a nature-positive future, today.”
The report series is designed to address this gap and provide guidance to industries on moving forward efficiently. It emphasizes key actions that need to be taken both within and beyond value chains, including industry-specific measures for companies to achieve a nature-positive status. These steps involve mitigating and minimizing the environmental impacts of operations and materials, as well as fostering collaboration across sectors on policy and standards. Furthermore, the latest research reveals $1.4 trillion worth of nature-positive opportunities across four sectors worldwide, with $160 billion specifically within the Chinese automotive industry. This underscores the pressing need for the development of new financing models and advocacy for systemic changes in the industry. “The ocean is essential to supporting life on Earth and drives the global economy – ports and shipping cover 80% of global trade in terms of volume, and offshore wind is one of the fastest growing renewable energies,” added Alfredo Giron, Head, Ocean Action Agenda, World Economic Forum. “Businesses must take the lead in transitioning to sustainable practices within the blue economy, safeguarding ecosystems and ensuring a prosperous future for communities and industries alike."