UN-backed IPBES assessment says biodiversity loss endangers global businesses, warning firms must restore nature or face supply chain shocks, rising costs and long-term economic collapse without urgent and investor action.
Businesses worldwide face growing risks of economic disruption and long-term collapse unless they urgently act to protect and restore nature, a major global scientific assessment has warned.
The report by the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) says biodiversity loss is rapidly emerging as one of the biggest threats to global business stability, supply chains and economic growth. The assessment, prepared by leading scientists and approved by 150 governments, stresses that corporate survival is increasingly tied to the health of ecosystems.
Experts warn companies now face a critical choice. They can either lead efforts to restore nature or risk serious financial and operational consequences.
Matt Jones, a co-author of the report and a scientist at the UN World Conservation Monitoring Centre in Cambridge, said businesses that ignore environmental risks could ultimately face extinction themselves.
“All businesses depend on nature, whether directly or indirectly,” he said. “Failure to protect biodiversity could threaten not only wildlife but also the survival of companies and industries.”
The assessment highlights how industries depend on services nature provides free of charge, including clean water, fertile soil, pollination, climate regulation and raw materials. These natural systems support agriculture, fisheries, manufacturing, pharmaceuticals and global supply chains.
IPBES Co-chair Professor Stephen Polasky said biodiversity loss is one of the most serious and overlooked economic threats facing businesses today.
“The twisted reality is that it often appears more profitable for businesses to degrade biodiversity rather than protect it,” he said, warning that short-term gains are driving long-term risks.
Environmental organisations say businesses urgently need practical tools and clear measurement systems to assess their environmental impact. Leigh Morris, International Director of The Wildlife Trusts in the United Kingdom, said corporate engagement in nature protection has shifted from being optional to essential.
“For many companies, biodiversity protection is no longer a ‘nice-to-do’. It is now a ‘must-do’ for business resilience and sustainability,” he said.
Climate and environmental youth leader Sohanur Rahman, Executive Coordinator of YouthNet Global, said the report reflects a growing global reality that businesses must align with nature to ensure long-term economic security.
“Biodiversity is the foundation of our economic systems, particularly in climate-vulnerable countries where millions depend directly on nature for livelihoods,” he said. “Businesses must move beyond symbolic sustainability commitments and invest in nature-positive solutions that protect ecosystems, support communities and build climate resilience. The future of both business and humanity depends on restoring our relationship with nature.”
The report points to successful models where business activities and nature conservation work together. At Steart Marshes in Somerset, England, farmers and conservationists jointly manage restored wetlands that support agriculture while improving biodiversity.
Local farmer Andy Darch said cattle grazing helps maintain ecological balance by controlling different grass species and creating habitats for birds, insects and plants. The varied diet also improves livestock quality, demonstrating economic benefits alongside conservation.
The restored wetlands also strengthen climate resilience for surrounding communities. Newly constructed flood banks protect nearby villages from rising sea levels, while wetlands absorb carbon emissions and filter pollutants.
Alys Laver of the Wildfowl and Wetlands Trust said the project proves conservation does not eliminate farming but transforms it into a more sustainable system.
“It is not a loss of farming. It is simply a change that benefits both nature and local livelihoods,” she said.
While examples of success are growing, scientists warn biodiversity loss continues to accelerate due to harmful economic incentives. The report highlights large government subsidies that support environmentally damaging industries, often influenced by corporate lobbying.
It also identifies a major gap in corporate accountability. Less than one percent of publicly reporting companies currently mention biodiversity risks or environmental dependency in their sustainability reports.
Experts say biodiversity loss is already affecting food security, water availability, coastal protection and global production systems. Developing regions in Asia, Africa and Latin America are particularly vulnerable, as their economies rely heavily on natural resources and climate-sensitive sectors such as agriculture and fisheries.
Businesses that fail to act may face increasing supply chain disruptions, rising operational costs, stricter environmental regulations and growing investor pressure. Meanwhile, companies that integrate biodiversity protection into core strategies could gain competitive advantages in an increasingly sustainability-driven global market.
The report stresses that protecting nature is no longer just an environmental responsibility but a central economic and business priority. Scientists are urging governments and private-sector leaders to collaborate more closely, strengthen environmental accountability and align financial systems with biodiversity protection goals.
With global biodiversity negotiations and climate discussions expected to intensify in coming years, experts say corporate action will play a decisive role in shaping a sustainable and resilient global economy.
