Nature & Biodiversity in Businesses
Nature has long been a silent stakeholder in every business model. At its core, it provides the essential foundations of land, water, soil, and stable climate systems that allow organisations to build, operate, and grow. However, unlike financial or human capital, nature is rarely measured, managed, or actively considered in business decision-making. As a result, the long-held assumption that these resources will always be available no longer holds. In fact, Nature & Biodiversity are increasingly at risk. Notably, the 6th greatest risk to society is natural resource shortages. Consequently, as ecosystems degrade and climate pressures increase, access to these natural resources is becoming far less certain.
Why does it matter?
Nature is no longer purely an issue for the sustainability team; instead, it is a material business risk. In fact, the World Global Risk Forum consistently identifies nature-related risks as among the most critical to society over the next decade. As a result, these risks have direct implications for supply chains, operating costs, regulatory exposure, and long-term business resilience. Moreover, organisations that do not understand their dependencies and impacts on nature, or consider biodiversity, are increasingly exposed to disruption, reputational risk, and loss of value. Ultimately, it is clear that there is an urgent need to address Nature & Biodiversity in order to achieve true business resilience.
How to address it
Since 2022, Clearstream has been working with businesses across Ireland to help address this challenge. We support organisations in understanding how their activities interact with nature; where they depend on it, where they impact it and where risks and opportunities arise. By joining the dots between the business model and the natural environment, organisations can move beyond reactive compliance towards building long-term resilience, protecting both business value and the natural systems on which they depend. Also, the benefits of supporting biodiversity and nature extend into every sector.
Where to start
Like any strategy, it begins with materiality. This ensures your strategy relates directly to your business’ operating model. If you have already completed a double materiality assessment, this can be used. If not, a focused nature materiality is a straightforward and effective first step. When prioritising actions, it is important to assess both the value of nature and the significance of biodiversity for your business.
Next, map your locations. Nature is location specific, so understanding where you operate is essential to identifying your key impacts, dependencies and risks.
Measurement then brings this to life. A nature footprint helps you quantify these impacts using the best data available, starting with estimates where needed and improving data quality over time. As with Scope 3, the key is to start, build momentum and strengthen your approach as you go. In addition, businesses should consider how their activities support the protection of biodiversity and nature for future generations.
We can’t monitor what we don’t measure, and understanding Nature & Biodiversity is crucial for every business’ future.
How Can Clearstream Help?
For more information on how to create a nature strategy, conduct a nature footprint or report against GRI; ESRS; TNFD please contact Katie Heston, Goodbody Clearstream for a conversation on how to begin engaging with Nature & Biodiversity as an integrated part of your business journey.