We previously saw that businesses both impact and depend on nature. This stems both risks and opportunities related to nature that need to be included in their risk assessment and strategic planning. Research showed that under the current climatic and biodiversity loss scenarios, more than half of the world’s GDP is at risk. Thus identifying nature-related risks is not just good for the planet, it makes business sense too!
In your process of managing nature-related risks, the first step is to identify and characterise these risks. See below the main categories of nature-related risks.
Tools exist to help companies identify their nature-related risks, such as the WWF Risk Filter or the WBCSD sectorial guidance. Once identified, companies need to assess nature-related risks according to likelihood, magnitude and any other relevant criteria, just like they do with general risks. The financial impact of nature-related risks on the business is quantified in order to prioritise material risks.
Explore innovative ventures committed to combatting biodiversity loss and promoting a nature-positive world. Ventures such as INVERTO, and InvestConservation are at the forefront of driving positive change.