Protecting our natural world

The destruction of our natural world is one of the most pressing crises we face - and should be treated as such by investors.

A threat to our global economy

The destruction of our natural world is one of the most pressing crises we face today. Climate change, pollution, the intensification of agriculture and industrial growth have all put a strain on biodiversity. We are amid the Earth’s sixth mass extinction event. Some 75 per cent of land, and 66 per cent of marine environments have already been severely altered by human activities.

This is not only a threat to our natural world. Our survival as we know it is dependent on nature. Its destruction is undermining our societies and our global economy. Tackling the loss of nature will require urgent and transformative action by all actors, but the financial sector has a major role to play. The influence it wields through the ownership and financing of companies means its potential for driving change cannot be underestimated. We work with investors and banks to raise the profile of biodiversity loss and drive the policies needed to shift this trend.

Role of the financial system

Some US$44 trillion of economic value generation is moderately or highly dependent on nature and its services. That’s more than half of the world’s total GDP.

A transformation to a nature-friendly economy could create 395 million jobs and deliver US$10.1 trillion of economic value by 2030.

To reverse the decline in biodiversity by 2030, it would take US$722-967 billion each year over the next ten years. The biodiversity financing gap is at an average US$711 billion per year.

A conservative estimate of the global cost of subsidies that damage nature is about US$4tn-$6 trillion a year. Governments are exacerbating the crisis by paying people more to exploit nature than to protect it.