Biodiversity: Key steps to future-proof businesses

To better understand how industries are responding to biodiversity loss, Sweco recently examined how the 50 largest European manufacturing and energy companies are addressing biodiversity in their sustainability reporting. The findings, published in a new Urban Insight report, reveal a growing recognition of biodiversity impacts, but a possibility for persistent underestimation of biodiversity-related financial risks. It also offers practical recommendations for bridging the gap between ecological and financial performance.

As sustainability efforts evolve beyond carbon reduction, Sweco’s report unveils the growing potential of protecting and restoring nature as a driver of business growth. Biodiversity is rapidly emerging as a critical pillar of business resilience and long-term value creation. With more than €50 trillion in global economic activity moderately to highly dependent on nature, protecting biodiversity is a strategic necessity.

Biodiversity loss is ranked among the top global risks projected for the next decade. Key industries such as mining, forestry, infrastructure and energy are directly dependent on healthy ecosystems. Wetlands and rivers, for instance, support vital services like transport, water supply and cooling for power generation.

Beyond these, nature offers broader ecosystem functions, such as regulating climate, pollinating crops and safeguarding infrastructure—services fundamental to both human well-being and economic stability. Yet, these critical natural assets are increasingly under threat.

Biodiversity could unlock trillions in business value – but remains overlooked as financial materiality

As companies’ sustainability efforts begin to move beyond carbon reduction, the new Urban Insight report highlights the untapped business potential of protecting and restoring nature. The report delves into how European manufacturing and energy companies are addressing biodiversity challenges, offering valuable insights and potential gaps in their approaches. The report also unveils the growing potential of protecting and restoring nature as a driver of business growth.

Key insights

• 82% of the companies identified biodiversity as a material topic in terms of impact materiality.
• Just 16% recognised biodiversity as financially material, signaling a potential blind spot in risk management.

In the manufacturing sector:

• 67% identified biodiversity as materially impactful.
• 21% viewed it as having a material impact, citing risks such as restricted raw material access and legal consequences from non-compliance with environmental regulations.

In the energy sector:

• 96% acknowledged biodiversity as having a material impact.
• Yet only 12% considered it financially material, despite recognising risks like operational constraints from droughts, ecosystem degradation and the need to shift toward renewable energy sources.

Five steps to future-proof your business for nature

Biodiversity can seem complex, but taking the first step is what matters most. By integrating biodiversity and climate strategies into core operations, businesses can contribute to positive societal changes, mitigate risks through resilient business models and tap into new markets and business opportunities.

Sweco experts recommend five practical and iterative actions for building nature-aligned business strategies:

1. Understand company’s activities and value chains –  Get to know the full scope of your operations and stakeholders. Transparency leads to better decision-making.
2. Know your businesses´ impacts and dependencies –  Be specific. Quantifying your relationship with nature allows for actionable insights and realistic goals.
3. Collaborate to shape the future –  Leverage the diverse perspectives of your stakeholders to address biodiversity challenges with inclusive and effective solutions.
4. Manage risks and leverage opportunities – Consider both operational and systemic risks. Recognise where nature loss can disrupt operations and where restoring it can unlock value.
5. Transform to make business for nature –  Align your business model with ecosystem health and resilience.

Solutions aimed at adding value to the nature could unlock €10 trillion in new business value and create up to 395 million jobs by 2030, according to global estimates.

Despite the growing risks of biodiversity loss, only 16% of Europe’s 50 largest manufacturing and energy companies currently recognise biodiversity as financially material

Biodiversity is becoming a business-critical issue – but do companies treat it as a risk or an opportunity? Explore the report to learn more about the key actions that can help organisations build nature-aligned strategies