IPBES Assessment affirms that nature loss is a systemic business risk

A major new Business and Biodiversity Assessment from IPBES – endorsed by more than 150 governments – concludes that biodiversity loss is no longer an environmental issue on the sidelines, but a systemic risk for economies, supply chains and financial stability. Healthy ecosystems underpin everything from raw materials and water supply to climate resilience, tourism and cultural value, yet decades of unsustainable growth have eroded this foundation.

Jessika Roswall, the European Commissioner for Environment, Water Resilience and Competitive Circular Economy highlighted the urgency of these findings, noting that “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.” She also welcomed 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.”

Key findings for companies and financial actors

The assessment identifies more than 100 actions that businesses, investors and governments can take to measure, manage and reduce impacts on biodiversity while contributing to restoration and sustainable growth. It also highlights structural challenges that currently hinder progress:

■      Harmful financial flows dominate: In 2023, an estimated €6.12 trillion in public and private finance had negative impacts on nature, compared to €184.58 billion invested in conservation and restoration.

■      Environmentally harmful subsidies remain widespread: Public spending on harmful subsidies totals €2.01 trillion, including fossil fuels (€948.07 billion), agriculture (€343.99 billion), water (€335.60 billion), transport (€151.02 billion), construction (€125.85 billion) and fisheries (€50.34 billion).

■      Disclosure remains extremely low: Fewer than 1% of publicly reporting companies currently disclose biodiversity impacts.

The report makes clear that business as usual is no longer viable, but also that companies can already act now, with practical tools and methods available to support decision-making.

Implications for EU policy and upcoming initiatives

The assessment is directly relevant to the EU’s work to mobilise private finance for nature. The Commission’s Roadmap towards nature credits aims to create credible mechanisms that reward measurable positive outcomes for ecosystems. Pilot projects, an Expert Group, and a scoping study are already underway, with more operational steps expected in the coming months.

These efforts will be showcased at EU Green Week 2026, which will focus on investing in nature and demonstrating the business case for a nature-positive economy. Registrations for the main conference will open from mid-April. Stay tuned!