Nature loss identified as a systemic risk to economies and financial stability

A major international scientific assessment endorsed by more than 150 governments has concluded that biodiversity loss now presents a systemic risk to economies, supply chains and financial systems. The new Business and Biodiversity Assessment by the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) positions nature degradation not only as an environmental concern, but as a material financial issue.

European woodland rich in wildlife with a commercial and industrial area in the background. AI generated picture.

The report finds that all businesses both depend on and affect biodiversity. Ecosystems underpin core economic functions, from agriculture and raw materials to water supply, tourism and environmental resilience. However, decades of unsustainable growth have accelerated biodiversity loss, exposing vulnerabilities across global value chains and heightening risks for investors and financial institutions.

‘Science is clear: our economies and businesses rely on nature. Protecting and restoring ecosystems is not only an environmental necessity – it is an economic priority. I also warmly welcome Slovenia’s accession to IPBES, meaning that all 27 EU Member States are now part of this vital global science-policy platform. This strengthens Europe’s collective commitment to evidence-based action and to turning science into real investment and implementation on the ground,’ Jessika Roswall, Commissioner for Environment, Water Resilience and Competitive Circular Economy stated.

The assessment underscores the scale of the global nature finance imbalance. In 2023, financial flows harmful to biodiversity were estimated at €6.12 trillion, compared with just €184.58 billion directed towards conservation and restoration. Public subsidies alone accounted for around €2.01 trillion in environmentally harmful spending, spanning fossil fuels, agriculture, water, transport, construction and fisheries.

The report identifies more than 100 actions aimed at helping governments, companies and financial actors measure, manage and reduce biodiversity impacts while supporting restoration and sustainable growth. It also highlights that fewer than 1% of publicly reporting companies currently disclose biodiversity-related impacts, pointing to structural misalignment between financial incentives and nature-positive outcomes.

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At EU level, the European Commission is advancing practical mechanisms to mobilise private capital. Its forthcoming Roadmap towards nature credits seeks to establish credible frameworks that reward measurable ecosystem outcomes and stimulate investment in sustainable land and marine management.

An expert group, pilot projects and a dedicated scoping study are underway to test methodologies and build an operational evidence base. Early results are expected in the coming months, alongside expanded advisory support and continued engagement with Member States and market participants.

The business case for nature will feature prominently at EU Green Week 2026 in June, including a first-ever start-up–investor matchmaking event focused on nature-based solutions, signalling growing policy momentum to align capital flows with biodiversity objectives.

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As the economic consequences of biodiversity loss become clearer, the focus is shifting from acknowledging nature-related risk to actively restoring and strengthening the ecosystems that underpin long-term value creation. At Green Earth, we are committed to advancing high-integrity conservation and restoration projects that protect biodiversity, enhance ecosystem resilience and generate measurable environmental and community benefits.

By channelling capital into solutions that enable nature to prosper, businesses not only mitigate systemic risk but also position themselves at the forefront of a nature-positive economy. Organisations ready to move beyond compliance and contribute to resilient, future-proof growth are invited to explore how investing in robust, science-aligned nature solutions can form part of their long-term strategy.