The rapid growth of the global economy is driving an unprecedented loss of biodiversity, posing a serious systemic threat to economic stability, financial systems and human well-being, a new UN-backed report warns.
These findings came in a pivotal assessment report released on Monday by the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES).
The report concluded that businesses depend on biodiversity, and that it contributes — directly or indirectly — to its degradation.
The report, entitled "Systematic Assessment Report on the Impact of Business on Biodiversity and the Contributions of Nature to Man", was endorsed by representatives of more than 150 governments during the twelfth session of the IPBES General Assembly held in Manchester, United Kingdom.
According to the assessment, even businesses that seem out of touch with nature rely on ecosystem services such as water supply, flood regulation, climate mitigation, tourism spaces, and cultural values.
However, scientists note that many companies have little financial cost for harming biodiversity and often lack mechanisms to benefit from positive environmental outcomes.
And while businesses are central to stopping and reversing biodiversity loss, many lack the information needed to understand its impacts, dependencies, risks and opportunities.
The three-year assessment was prepared with the participation of 79 experts from 35 countries and concluded that the current business environment is not aligned with the goal of achieving a just and sustainable future.
The report identified perverse incentives, weak regulatory frameworks, data gaps, and short-term profit models as key factors for continued ecosystem degradation.
Key drivers of biodiversity loss
The loss of biodiversity results from five primary drivers: habitat loss, invasive species, overexploitation (extreme pressure on land and sea fishing), pollution, and climate change linked to global warming. And in each case, man and his activities play a direct role.
And according to the United Nations Environment Program (UNEP), the biggest driver of biodiversity loss is how humans use land and seas, including converting forests, wetlands and other natural habitats for agricultural and urban purposes.
Since 1990, WFP has reported the loss of some 420 million hectares of forest as a result of conversion to other uses. Agricultural expansion remains the main driver of deforestation, forest degradation and loss of biodiversity.
And the global food system is the main driver of biodiversity loss, with agriculture alone a threat to more than 85% of the 28,000 endangered species.
Activities such as mining the ocean floor and building cities and towns also affect the natural environment and biodiversity.
And the UN has pointed out that rethinking food production and consumption is a way to reduce pressure on ecosystems. Degraded or abandoned agricultural land can also be suitable for restoration operations, supporting the protection and restoration of vital ecosystems such as forests, peatlands and wetlands.
Nigeria: Severe Crisis
In Nigeria, biodiversity is facing a severe crisis, with at least a 40% decline in wildlife and habitats recorded over the past 25 years. Key drivers include: rapid population growth, habitat fragmentation, agricultural expansion, illegal logging, and oil pollution.
Accordingly, at least 309 species are threatened, and this loss affects food security and livelihoods.
Harmful financing outweighs protection spending
The IPBES report highlighted glaring imbalances in global financing flows. In 2023, public and private financing activities with a direct negative impact on nature were estimated at $7.3 trillion, of which $4.9 trillion was private financing, and about $2.4 trillion was environmentally harmful public subsidies.
In contrast, only $220 billion — about 3% of harmful public incentives — has been directed at protecting and restoring biodiversity.
"Biodiversity loss is one of the most serious threats to business, yet in the short term, nature degradation appears to be more profitable than protecting it, even though cumulative impacts may go beyond environmental tipping points that undermine long-term profitability," said Stephen Pulaski, co-chair of the assessment.
Data gaps hinder business
The assessment found that while tools are available to measure corporate impacts on biodiversity, adoption rates remain low. Currently, less than 1% of companies that report publicly on their impacts on biodiversity are not revealing.
And a survey of financial institutions representing 30% of global market capitalization showed that a lack of reliable data and future models and scenarios is a major barrier to integrating nature-related risks into decision-making.
And Matt Jones, another co-chair of the assessment, called the report a turning point, saying: “This assessment dispels the confusion created by multiple competing frameworks, and offers clarity on how companies and financial institutions are moving from voluntary pledges to science-based actions.”
Ignore Native Knowledge
The report also stressed the importance of indigenous peoples and local communities, noting that industrial development threatens about 60% of indigenous peoples' lands globally, while a quarter of their lands face severe pressure from resource extraction.
"Scientific and indigenous knowledge are often isolated, limiting the effectiveness of decision-making. And respectful collaboration can significantly improve companies’ management of biodiversity-related risks and opportunities.”
Call for collective action
Emphasizing the need for corporate action, the report stressed that transformative change cannot be accomplished by the private sector alone. He called on governments, financial institutions and civil society to collaborate to create an enabling environment through better policies, appropriate financial systems, access to data, cultural norms and institutional capacity building.
The assessment presents more than 100 concrete actions that can be taken to help align economic activity with biodiversity protection.
"Rational biodiversity management is not an option -- it's a business imperative," Professor Rueda said, stressing that transparent disclosure and reliable strategies are essential to avoid "greenwashing."
Guiding global commitments
David Obura, IPBES President, said the report provides critical guidance for achieving global commitments within the global biodiversity framework, the Sustainable Development Goals, and the Paris Climate Agreement.
And Luthando Dziba, Executive Secretary of IPBES, added: “Nature is everyone’s business. The conservation and sustainable use of biodiversity are key to economic resilience and long-term success.”
comments
Commenting on the report, Inger Andersen, Executive Director of the United Nations Environment Program (UNEP), explained that nature remains one of the least valued foundations in the global economy, even though it supports food systems, supply chains and long-term prosperity.
She said IPBES continues to lead and provide independent and credible evidence, stressing that science-based decision-making is not an option but a necessity.
"Time is not on our side, but this assessment offers a clear path to aligning economic decisions with environmental realities, bringing lasting benefits to people and the planet."
Zhou Dongyu, Director-General of the Food and Agriculture Organization of the United Nations (FAO), said that companies across agriculture and food systems rely on and significantly affect biodiversity.
And to build a resilient future, he stressed the need to transform these systems to ensure what he called the “four preferences”: better production, better nutrition, a better environment, and a better life, leaving no one behind.
He explained that effective assessment and management of the relationship between the “four preferences” and nature enables companies to enhance their resilience, drive innovation, and establish themselves as leaders in the global economy.
And every company across the value chain has a role to play in promoting sustainable practices that support biodiversity, he said, noting that key actions include expanding investments in innovative, biodiversity-friendly technologies across production, processing, distribution and consumption, as well as implementing robust systems to monitor and report on the impacts of business activities.
comments