WEF_The_Future_Of_Nature_And_Business_2020.pdf

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New Nature Economy Report II
The Future Of Nature
And Business
In collaboration with AlphaBeta
World Economic Forum
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by any information storage and retrieval system.
The Future of Nature and Business
is published by the World Economic Forum in collaboration with AlphaBeta
(www.alphabeta.com). It is the second in a series of reports from the New Nature Economy project, the first
being Nature Risk Rising that was published in January 2020.
About the New Nature Economy Report (NNER) series
The series of New Nature Economy Reports (NNER) is being developed under the umbrella of the World
Economic Forum’s work on nature, a platform for committed actors to join up ideas and efforts in the run-up
to the UN Convention on Biological Diversity (CBD) COP15 – and in support of the related Business for
Nature agenda. The NNER series aims to make the business and economic case for action.
The series will span three reports that focus on the following priorities:
1. Make the case for why nature loss is a material risk to business and the economy, including:
a. The scale and urgency of the nature crisis
b. The potential consequences for society if the crisis remains unchecked
c. The need for business to mainstream nature risk in corporate enterprise risk management
2. Provide the insights needed to develop practical roadmaps that address the most important drivers
of nature loss, and build a nature-positive future, including:
a. The most pressing business-related threats to nature, which require urgent individual and collective action
from business and other economic actors
b. The key socio-economic transitions needed to tackle the nature crisis; and the potential financial upside
from concerted business action
c. The enforceable, supporting and coherent enabling mechanisms that will be needed to catalyse change
at scale
3. Scope the market and investment opportunities for nature-based solutions to environmental and
humanitarian challenges:
a. Research solutions across the biodiversity, climate mitigation, climate resilience and ocean agendas
b. Assess their economic and nature-building potential
c. Identify areas and approaches most relevant for private-sector finance
About the World Economic Forum
The World Economic Forum, committed to improving the state of the world, is the international organization for
public-private cooperation. The Forum engages the foremost business, political and other leaders of society to
shape global, regional and industry agendas.
New Nature Economy Report II – The Future Of Nature And Business
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Foreword
The Great Acceleration of the world economy over
the last 70 years has brought an unprecedented
increase in output and human welfare. Human
population grew from 2.5 billion in 1950 to close to
8 billion today. At the same time, the average person
has become 4.4 times richer and lives 25 years
longer than in 1950. Since 1990, the number of
people living on less than $1.25 a day has reduced
by one-half, and roughly 700 million more people
entered the mushrooming global middle classes.
Yet, the Great Acceleration carried important costs,
among which were its profound impacts on natural
systems, including the degradation and loss of whole
species and critical ecosystems. These impacts and
the risks they bring to our economic system and
welfare are set out in the first report of this series,
Nature Risks Rising, released in January 2020.
COVID-19 has brought the Great Acceleration to a
screeching halt. Hundreds of thousands of people
have died and entire sectors of the economy have
stopped operating. All because a novel zoonotic
disease, possibly triggered by human disturbance
of nature, became a pandemic. As of June 2020,
governments and international organizations have
invested close to $9 trillion to try to prevent the
most immediate human and economic impacts.
But despite these efforts, the global economy is
expected to contract by 3% in 2020, affecting the
jobs and livelihoods of millions of people. Nature-
related risks have precipitated a Great Deceleration
and potentially a structural economic crisis. The
spread of a deadly zoonotic virus with no immediate
cure was a known risk, of which environmental
scientists had warned. The same scientists have
warned us against returning to “business as usual” in
light of the looming nature crisis. Nature loss brings a
whole new set of risks, including potentially deadlier
pandemics; we are sleepwalking into a catastrophe if
we continue to ignore this reality.
To pursue the same economic strategy that has
resulted in this situation while hoping for a different
outcome, would be deeply questionable. A new
future for nature and humans is needed and one that
can help accelerate the Great Reset that the world’s
economy and society require. The Future of Nature
and Business report lays out in practical terms what
needs to be done to achieve this new future, by
laying out a pragmatic framework for the industry
to lead the transition towards a nature-positive
economy. This is a path that can provide a win-win
for nature, people and business. It can unlock an
estimated $10 trillion of business opportunities by
transforming the three economic systems that are
responsible for almost 80% of nature loss.
Seeking a Great Reset, however, needs to
acknowledge the new context in which we live. To be
successful, this path will need to gain the confidence
and the support of citizens and governments, by
demonstrating its focus on inclusive growth and
improved jobs and livelihoods. Its ability to create
395 million jobs in 2030 while pivoting the global
economy to be nature-positive is perhaps the single
most important takeaway for decision-makers.
It won’t be easy or straightforward, but a failure to
act will be even more painful. We need to commit to
this path and be willing to work together. The World
Economic Forum, as the international organization for
public-private cooperation, pledges to help public,
private and civil society stakeholders reset their
relationship with nature as part of the Great Reset
agenda in a way that will be nature-positive, value-
creating and job-rich.
Dominic
Waughray
Managing Director,
Managing Board,
World Economic
Forum
Akanksha
Khatri
Head of Nature
Action Agenda,
World Economic
Forum
New Nature Economy Report II – The Future Of Nature And Business
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Preface
by the Co-chairs of the Champions for Nature community
The economic, humanitarian and social fall-out from
the COVID-19 pandemic crisis is far more severe than
than the 2008-09 global financial crisis. Even with
great uncertainty, IMF projects the global economy to
contract by 3% in 2020. This shock will mostly affect
the poor, informal and marginalized sections of society
everywhere. As governments around the world are
creating stimulus packages and reassigning budgets
to fight this unprecedented crisis, it is imperative to
also recognize this opportunity to reset humanity’s
relationship with nature.
This crisis has reminded us that human and planetary
well-being are intertwined. Nature must be at the heart of
all our efforts and economic incentives aligned to promote
the protection of biodiversity and integrate nature recovery
goals into our business and financial decisions.
As Co-chair of the Champions for Nature community
and member of the High-Ambition Coalition for
Nature and People, I welcome the clear transition
pathways provided by this report.
Multilateral and multistakeholder cooperation will
be key to realizing the opportunities identified in this
report across three key socio-economic systems that
can create USD 10 trillions of global GDP growth and
395 million jobs by 2030.
Leaders of the world today have a moral and
pragmatic imperative to take bold decisions
that protect, restore and sustainably manage
the only planet we have and safeguard it for
future generations.
Carlos
Alvarado
Quesada
President of
Costa Rica
The human footprint on the planet has had an
immense impact on the natural world. Unsustainable
consumption and production patterns have come
at the cost of healthy ecosystems, biodiversity, and
human resilience.
Nature is the foundation of economic growth. As
the world seeks to build back better, following the
devastating impacts of COVID-19 there are no
individual solutions to the challenges that lie ahead,
only global ones. Building a healthier planet is the
collective responsibility of all of us.
As we enter a historic decade of action to halt and
reverse biodiversity loss by 2030 and address climate
change, businesses have a critical role to play. They
have the technology, innovation and resources
to make the needed shifts towards increased
investment in nature and nature-based solutions.
Inger
Andersen
Under-Secretary-
General of the
United Nations
and Executive
Director, UN
Environment
Programme
The work of the United Nations Environment
Programme and partners has shown that the
restoration of land to achieve land degradation-
neutrality by 2030 is cost effective and helps
reduce poverty and inequality. And as we do so,
we must call on and empower indigenous people,
who have long been deploying the kind of solutions
the world needs to adopt.
COVID-19 responses have shown us that we
are capable of listening to science, changing
behaviours and working collectively for a global
solution. We must embrace these skills and
support business in re-engineering their businesses
towards sustainability. To do so, we will be enabled
by the UN Decade for Action on Ecosystem
Restoration which UNEP is proud to co-lead with
numerous partners. The time to act together for
nature is now.
Alan Jope
Chief Executive
Officer, Unilever
The global economy is inextricably linked to the
health of our planet. How we produce, manufacture,
consume and ultimately manage our waste is
straining nature’s ability to cope. COVID-19 has
shown the need to drive greater resilience in our
global supply chains, food systems and healthcare
delivery. Whilst there is still uncertainty in how the
pandemic will unfold, we must recognise this as an
opportunity to accelerate efforts to put nature at the
centre of all decision-making.
This report identifies that 80% of biodiversity loss is
driven by three economic sectors: food, land and
ocean use, extractives and energy, and infrastructure
and the built environment. As the dependence of
our economies and businesses on nature is clear,
we must identify and mitigate the risks of nature loss
from our business operations. There will be no jobs
or prosperity on a dead planet!
That’s why last month Unilever set out a range of
new, ambitious commitments and actions to fight
climate change and protect nature, including net zero
emissions for all our products by 2039 to point of sale
and a €1 billion Climate and Nature fund for brands
to take meaningful and decisive action. The climate
crisis, nature loss, water scarcity are all interconnected
and we must address them simultaneously to achieve
a decarbonised, nature-positive world.
As Co-Chair of the Champions for Nature community
and supporter of Business for Nature, I welcome this
report and look forward to working with my peers for
an ambitious action agenda for nature.
New Nature Economy Report II – The Future Of Nature And Business
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