All businesses depend on biodiversity, and all businesses have an impact on biodiversity. Global economic growth has come at the cost of a massive loss of biodiversity, which now poses a critical and far-reaching systemic risk to the economy, financial stability, and human well-being. This is one of the key conclusions of the new groundbreaking “Business and Biodiversity” report, published by IPBES on February 9, 2026.
Biodiversity loss and the loss of natural areas can no longer be treated as a niche or CSR issue in the business community. This is clearly evident from the new IPBES methodology report, which was approved on Monday, February 9, by more than 150 member countries at the 12th IPBES Plenary Meeting in Manchester.
The report *Methodological Assessment of the Impact and Dependence of Business on Biodiversity and Nature’s Contributions to People*, also known as the “Business and Biodiversity” report, documents that businesses have a significant impact on biodiversity, while at the same time being fundamentally dependent on it and its functions, such as raw materials, pollination, energy, and the regulation of climate and environmental conditions—including, among other things, the regulation of water flows. The loss of biodiversity thus poses a potential systemic risk with consequences for the economy, financial stability, and human well-being.
In the report, IPBES has summarized 10 key messages that highlight the report’s most important points. In the box below, you’ll find a brief summary of these, based on the summary provided by Matt Jones, one of the three lead authors.
| The report’s 10 key messages 1. All companies depend on and impact biodiversity What is profitable for companies today but harms nature undermines long-term value creation. All businesses both impact and depend on biodiversity. 2. From Risk to Opportunity Companies can reduce nature-related risks while opening up new business opportunities. 3. The gap is significant Fewer than 1% of publicly traded companies report on how important nature is to their business. 4. Reporting Is Just the Beginning Data disclosure and transparency are important, and real progress depends on concrete actions. 5. Action can be taken now The report summarizes 25 specific courses of action, ranging from portfolio management and corporate strategy to operations at the location level. 6. It’s Not a Data Problem Much of the necessary data and methodology already exists to address the impact businesses have on nature while simultaneously strengthening their resilience. 7. One solution does not fit all There is no one-size-fits-all approach to business decisions. The report sets out principles for what is “fit for purpose”. 8. Better Decisions Require Better Knowledge When business insights are combined with scientific knowledge and the knowledge of indigenous peoples and local communities, better results are achieved. 9. Actions Have a Ripple Effect A company’s leadership can change the behavior of competitors, suppliers, customers, and consumers. 10. It’s a shared responsibility Businesses cannot tackle this challenge alone—the report outlines more than 100 actions for governments, the financial sector, civil society, and other stakeholders to create benefits for both business and biodiversity. Source: Jones, M. Want to hear directly from the IPBES #BizBiodiversity experts? [Images attached] [Post]. LinkedIn. https://www.linkedin.com/posts/matt-jones-00636213_10-insights-for-businesses-activity-7426691202541862913-DUnu?utm_source=share&utm_medium=member_desktop&rcm=ACoAAB0879ABAZ9HwPS3h-gEdA-emwqXKJhQUUA (own translation) |
A decline in biodiversity poses a real economic risk
One of the report’s key conclusions is that biodiversity loss is not merely a matter of ethics, reputation, or voluntary sustainability initiatives, but of risk management. Another key point from the report is that global financial flows today are heading in the wrong direction when it comes to biodiversity conservation.
In 2023, global public and private financial flows with direct negative impacts on nature were estimated at 6.2 trillion euros, of which private financing accounted for 4.2 trillion euros, while public spending on environmentally harmful subsidies amounted to approximately 2 trillion euros.
In contrast, only 169.77 billion euros in public and private funding flows went toward activities that contribute to the conservation and restoration of biodiversity in 2023. This means that funding for harmful activities is 35 times greater than funding for beneficial ones.
To reverse the trend of continued biodiversity loss, it is therefore necessary to redirect the flow of funds so that positive initiatives are supported and investments and subsidies that harm ecosystems are reduced. This requires a fundamental change in companies’ approach to nature and biodiversity, so that governance, measurement, and incentives are consistently aligned toward the same goal.
Read more about transformative change here: New expert report coming soon! – IPBES in DENMARK
Implementation Gaps and Shared Responsibility
At the same time, the report highlights a significant “implementation gap.” Many companies mention biodiversity in their strategies and policies, but far fewer can document their actual impacts—and even fewer can demonstrate the effects of initiatives intended to benefit biodiversity. In fact, less than 1% of publicly reporting companies currently mention their impact on biodiversity in their reports. Prof. Stephen Polasky, one of the report’s three lead authors, states:
“The loss of biodiversity is among the most serious threats to business. Yet the twisted reality is that it often seems more profitable for businesses to degrade biodiversity than to protect it. Business as usual may once have seemed profitable in the short term, but impacts across multiple businesses can have cumulative effects, adding up to global impacts that can trigger ecological tipping points.”
– Prof. Stephen Polasky (U.S.)
Although it may be resource-intensive and costly for companies to change their practices in the short term, it therefore benefits not only biodiversity but, in the long run, the businesses themselves as well, when they actively choose to incorporate biodiversity into their strategies and business operations.
Conversely, when many companies impact the same landscape, this has a negative cumulative effect that adds up to global consequences, which in the worst-case scenario can result in ecosystems being pushed past their ecological tipping points. Therefore, companies cannot continue as they have been if this negative trend is to be reversed.
However, a key message in the new report is that biodiversity loss is not just a business issue. It is also a financial and regulatory issue. The risks posed by biodiversity loss are also relevant to investors, banks, government agencies, and regulators, and their role in reversing this trend is therefore crucial. Central banks in at least eight countries and the EU have already analyzed the financial sector’s exposure to biodiversity dependencies. However, despite the increased attention, the application of their findings has so far been limited. The report identifies three main barriers in this regard: reliable data, reliable models, and scenarios.
| In Light of the Statistics—Key Statistics and Findings from the Report • $1.18 billion – $130.11 billion (1 billion euros – 11.04 trillion euros): Growth in the global economy between 1820 and 2022 (in 2011 dollars) • +100% vs. -40%: Average increase in human-generated capital per capita since 1992, compared with a decline in natural capital stocks • $7.3 trillion (6.2 trillion euros): Global public and private financial flows in 2023 with direct negative impacts on nature, of which private financing accounted for $4.9 trillion (4.2 trillion euros), while public spending on environmentally harmful subsidies amounted to approximately $2.4 trillion (2 trillion euros) • $220 billion (169.77 billion euros): Global public and private financial flows in 2023 directed toward activities that contribute to the conservation and restoration of biodiversity • <1%: Publicly reported companies that mention the impacts on biodiversity in their reports • 60%: Global percentage of indigenous peoples’ lands that are threatened by industrial development • 25%: Percentage of Indigenous peoples’ territories that are under significant pressure due to resource exploitation • At least 8: Number of countries (including the EU) where central banks have analyzed their financial institutions’ exposure to dependencies on biodiversity (IPBES 2026) (own translation) |
Clearer Methods and Concrete Courses of Action
A key message in the report is that the impact on biodiversity is site-specific. Decisions cannot be based solely on average figures or aggregated indicators. Local knowledge about assets and value chains is needed if risk assessments and regulation are to be effective.
It is therefore impossible to establish a single method for measuring and managing impacts on and dependence on biodiversity that would be suitable for all companies. Consequently, the report compiles more than 100 concrete examples of actions that can be implemented by companies, governments, financial institutions, and civil society.
The measures range from changes in economic incentives and regulation to improved data, transparency, and capacity building; to help guide companies in their choice of methods, the report identifies three overarching categories: Coverage (both geographic and the scope of the impacts and dependencies included); accuracy (the extent to which the results accurately describe what they are designed to measure); and responsiveness (the method’s ability to detect changes attributable to the company’s actions and activities).
Biodiversity and the Future of Business
Although the report does not directly assess individual companies’ strategic choices, the message is clear: Biodiversity is part of companies’ future “license to operate.” Security of supply, resource scarcity, natural disasters, stricter regulation, as well as reputation and trust are all closely linked to the state of biodiversity. Matt Jones sums it up as follows:
“Businesses and other key actors can either lead the way toward a more sustainable global economy or ultimately risk extinction… both of species in nature, but potentially also their own.”
– Matt Jones (UK), one of the three co-chairs of the Assessment
The new report thus sends a clear message to the business community and policymakers: Companies can either actively contribute to the necessary transition—or risk having the collapse of nature undermine their own business models as well.
You can read the summary for policymakers of the report here: IPBES Digital Assets
If you would like to learn more about the report and hear Professor Carsten Rahbek, chair of IPBES in Denmark, discuss it, you can find an overview of the report’s coverage in the Danish media below.
| Overview of Danish media coverage of the report as of February 25, 2026 P1 Morning: https://www.dr.dk/lyd/p1/p1-morgen/p1-morgen-2026/mandag-9-februar-2026-11802633071 P1 Orientation: https://www.dr.dk/lyd/p1/p1-orientering/p1-orientering-2026/mandag-9-februar-2026-11802610071 P1: New IPBES Report: The Biodiversity Crisis Will Cost Businesses Dearly Børsen: “Biodiversity should be a core issue in the business world—not an afterthought” (For subscribers only) |
