Wednesday 19 April 2023

‘More than half of global GDP relies on nature’

More than half the world’s GDP is dependent on nature.

That’s according to new analysis by PwC, which claims that the decline in nature could put $58 trillion (£46.6tn) at risk.

This represents an increase of one-third since 2020 – with the report warning businesses to take nature loss more seriously given the large amount of financial assets that could go with it.

The report also cites a shift in scrutiny from investors and customers, who are becoming more concerned about firms’ sustainable credentials to protect their investment.

More than 160 economic sectors were analysed in the research, with PwC concluding that all have a large proportion of their supply chain that is reliant on nature – whether that’s crops, types of wood, rubber, plants or natural ecosystems.

Food, beverages, tobacco and the mining and metals industries were those that were set to lose the most financially with further damage to nature.

PwC’s Will Evison, co-author of the report, said: “A number of factors have led to the increase in nature risk that we are seeing – from global economic growth since 2020 to a better understanding of how industries rely on nature to generate and protect value.

“As companies grow, they consume more natural resources but we have reached a point where it is clear that business leaders must create nature-positive business models that don’t just mitigate risks but also strengthen financial returns and benefit society.

“Businesses may also find natural alignment with climate and nature priorities. For example, many nature-based solutions to climate change – such as reforestation – help capture emissions while also enhancing biodiversity, directing capital to developing economies and supporting indigenous peoples and local communities.”