Biodiversity loss poses a significant threat to the global economy and businesses alike. Fortunately, there’s good news: the tools and platforms needed to protect your business and reverse nature loss are now available and ready for use. Implementing these solutions can save money and potentially increase revenues.
The World Economic Forum has identified biodiversity loss and climate change as the two biggest threats to the global economy over the next decade. Recent developments indicate that 2025 and 2026 will be pivotal years for discussions around biodiversity loss. According to the UN Biodiversity Panel (IPBES), unchecked destruction of nature could lead to ecosystem collapse, commodity and water scarcity and rising prices for essential raw materials. The stakes are high, with more than half of the world’s total market value – or Gross Domestic Product (GDP) – at risk.
To address these challenges, the UN adopted The Kunming-Montreal Global Biodiversity Framework in 2024, following four years of consultation. This agreement outlines four goals for 2050 and 23 targets for 2030, emphasizing corporate responsibility in reducing biodiversity impacts.
Historically, companies have struggled to address nature loss linked to their business models. However, significant developments are on the horizon. Here are five key areas to watch:
1. Uniform standard for measuring biodiversity
A major barrier to corporate biodiversity action has been the absence of a standardized metric for measuring biodiversity impact. Unlike climate change, which uses CO2 equivalents, biodiversity measurement has been complex and costly.
Recently, an alliance of non-governmental organizations (NGOs), sustainable business platforms and standard-setting organizations developed a new platform with 10-15 simple metrics covering ecosystem and species impact. These metrics are currently being tested by 30 companies in a global pilot, with widespread adoption expected in 2026. This initiative aims to provide companies, regardless of size, with the tools to measure their biodiversity impact effectively.
2. The first Science-Based Targets for Nature (SBTN)
The Science-based Targets Initiative has concluded its consultation on biodiversity targets for land, with a platform for oceans also in development. Companies like Kering, Carrefour, H&M and Suntory ave tested these mechanisms in a pilot with SBTN and the final platform is set to launch in 2026.
This marks a significant milestone, allowing companies to set and disclose biodiversity targets similar to existing climate disclosure platforms used by over 10,000 organizations. Together, the Nature Positive Initiative and SBTN will create a comprehensive framework for corporate biodiversity action.
3. Emerging markets for biodiversity credits
The World Economic Forum’s New Nature Economy Report highlights that embracing nature-positive transitions could unlock US$10.1 trillion in business opportunities by 2030. Investing in nature conservation can generate trillions and create 295 million new jobs.
A major market for biodiversity credits, akin to carbon credits, is expected to emerge. This market will enable specialists to protect or restore nature, funded by those wishing to combat biodiversity loss. While still in its infancy, the biodiversity credit market holds enormous potential, with estimates ranging from US$1-2 billion annually by 2030 to US$180 billion by 2050.
The Biodiversity Credits Alliance has recently established a definition for biodiversity credits, fostering a common understanding. The International Advisory Panel on Biodiversity Credits has also launched a High Integrity Framework to ensure that biodiversity credits deliver verified outcomes, promoting trust in the market.
4. Biodiversity action benefits Your bottom line
Many companies are already acting on biodiversity, primarily focusing on restoring nature near their operations. However, the most significant biodiversity impact often lies within supply chains and sourcing areas. Minimizing this footprint is crucial for environmental sustainability.
Research published by the global EY organization’s report ‘Building supply chain sustainability that can drive revenues and reduce operational risks’ indicates that over half of companies actively working on sustainable supply chains report increased profits within 1-2 years, with 80% expecting benefits within 3-5 years. These initiatives include using fewer raw materials, responsible sourcing and investing in ecosystem resilience.
Moreover, companies that prioritize biodiversity will reduce sourcing risks and reputational damage while meeting investor demands. According to the global EY organization’s ‘Long-Term Value and Corporate Governance Survey, 91% of companies feel pressure from investors to accelerate sustainable practices.
5. New Tools Make Getting Started Easier
With emerging platforms for measuring, disclosing and trading biodiversity actions, 2026 is poised to be a breakthrough year for corporate biodiversity efforts.
The first step for companies is to assess their biodiversity footprint and dependencies. EY’s new digital platform compiles data from over 35 databases on biodiversity status and impacts, providing comprehensive reports that include data from e.g. WWF’s Biodiversity Risk Filter and the International Union for the Conservation of Nature’s (IUCN).
Read List of Threatened Species.
This data can be utilized in the Taskforce for Nature-Related Financial Disclosures (TNFD) standard, enabling companies to report biodiversity-related risks and dependencies effectively. This process not only facilitates cost reductions in supply chains but also helps companies make informed sustainability investments.