Why 2025 Is All About Nature And Biodiversity

Nature and biodiversity are not just trendy topics – they are relevant for business. Companies are faced with the challenge of recognizing their dependence on natural resources and ecosystem services and managing them sustainably. We at Swiss Climate are also taking this development seriously and are expanding our range of customized services in the area of nature and biodiversity. But what does this mean for your company? How can you prepare for it strategically and take advantage of the opportunities? In this blog post, we show you why nature and biodiversity are an economic factor – and how you can benefit from it in the long term.

Biodiversity as a business opportunity

Ecosystem services have an economic value of 150 billion US dollars, and more than half of the world's gross domestic product depends directly on them. According to a study by the World Economic Forum (WEF), nature-related risks such as biodiversity loss and ecosystem collapse or resource scarcity pose the greatest risks worldwide in terms of possible negative impacts over the next ten years. The state of biodiversity affects the profitability of companies. At the same time, however, companies also affect biodiversity. They use natural resources (e.g. clean water) as inputs for production, they release potentially harmful substances into the environment (e.g. in wastewater or solid waste) and they cultivate land. The interdependencies between corporate activity and biodiversity also offer opportunities for companies. These opportunities lie, for example, in tapping into new customer requirements and thus new markets. Further opportunities lie in cost savings and increasing operational efficiency, expanding market share and improving relationships with stakeholders.

“Humans need nature to survive, as do the economy and, in particular, companies. The more species that become extinct, the less diverse the ecosystems on which we depend. This represents a growing financial risk that cannot be ignored.”

Frank Elderson, Executive Board Member of the European Central Bank

What are ecosystem services and how are biodiversity and climate related?

Ecosystem services are the benefits that people obtain from natural ecosystems. They provide a wide range of services that form the basis for development and prosperity: they supply important raw materials, ensure fertile soils, clean drinking water and clean air. They help to bind greenhouse gases, to adapt to the consequences of climate change and to protect against flooding and other disasters. We not only depend on our local ecosystems, but also benefit from the services of ecosystems around the world.

Examples of ecosystem services:

• Coral reefs serve as a habitat for up to three million species. They not only contribute to biodiversity, but are also an important source of food and income for local fishermen.
  

• Equally indispensable are mangrove forests, which grow at the interface between land and sea. These unique coastal ecosystems act as natural protective barriers against storm surges and tsunamis. They also store three to five times more carbon than terrestrial forests, making a significant contribution to climate protection.
  

• Pollination by insects and other animals is also a critical ecosystem service. Numerous plants depend on natural pollinators. A decline in these pollinators would have drastic economic and humanitarian consequences. The loss of natural pollinators would result in a reduction of $217 billion in annual agricultural yields.
  

• A healthy biosphere stabilizes the climate by regulating the carbon cycle and removing CO2 from the atmosphere. In addition, microorganisms, fungi, plants and animals process and distribute vital nutrients such as nitrogen and phosphorus.
  

These examples show that ecosystems are not only ecologically important, but also economically significant. Their protection and sustainable use are therefore essential for a stable future.

Biodiversity risk for your company

The information presented above clearly shows how essential nature and biodiversity are for the world – and especially for companies. Virtually all business models (and in particular the associated supply chains) depend directly or indirectly on functioning ecosystems. Further deterioration of the state of nature and biodiversity therefore entails significant risks for companies.

These biodiversity risks for companies can be divided into different categories:

• Physical risks: Higher costs or loss of revenue due to the decline of natural resources and ecosystem services.

• Regulatory risks: Financial burden due to non-compliance with existing or future regulations.

• Reputational risks: Loss of brand value and market share due to misconduct related to nature or lack of transparency.
  

• Market risks: Economic losses due to changing market conditions resulting from dependence on biodiversity.

Your benefits

Integrating biodiversity into your business model has numerous advantages, both economically and ecologically. Here are the most important:

• Risk minimization and increased resilience

• Legal compliance and competitive advantage

• Better access to capital and investment

• Strengthened reputation and brand value

• Promotion of innovation and new business opportunities

• Long-term value creation and market security

Find out more about our specific services for nature and biodiversity.

We look forward to hearing from you!

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