Photo by Dan Eskelson on iStock
December 5, 2024
Key Points
- Solving the climate crisis requires a holistic understanding of nature's critical role. The most productive way forward is to use integrated strategies and take a dual approach to climate change and nature.
- Over half the world’s total GDP is highly dependent on nature and its services, with an estimated $58 trillion exposed to nature-related risk.
- Lara Birkes, Managing Director for Climate and Nature, explores how businesses can act on these interconnected challenges and thrive in an increasingly complex operating environment.
In today's rapidly evolving business landscape, forward-thinking companies understand that addressing climate change and protecting nature are intrinsically linked. While the private sector has historically been focused on reducing greenhouse gas emissions, systems that work together in the natural world require similarly collaborative solutions.
This dual approach not only yields better environmental outcomes, but also creates more resilient business models. That means taking a clear-eyed view of the world, appreciating the interconnectedness of our systems, and grasping that climate change, biodiversity preservation, economic opportunity, community well-being, and human rights are deeply interconnected opportunities to address.
To date, the climate and nature agendas have been separated—to say nothing of societal considerations. Our institutions, global convenings (e.g., COPs), frameworks, guidelines, initiatives, and targets are siloed. And for the most part, so are the teams working on these critical initiatives within businesses.
Through careful planning, integrated strategies, and a commitment to combining goals, businesses can create lasting positive impacts while building more sustainable and resilient operations for the future. The need for a de-siloed approach is particularly evident after this year’s Biodiversity COP16 in Cali and Climate COP29 in Baku.
Understanding the Climate and Nature Nexus
Fragmented approaches to interconnected environmental challenges are counterproductive. Solving the climate crisis requires a holistic understanding of nature's critical role, and integrated strategies are the most productive way forward.
Healthy ecosystems act as natural carbon sinks, while climate change accelerates biodiversity loss. Climate impacts disproportionately affect vulnerable communities, and transitioning to more durable economic models can displace traditional workers and harm local communities without careful planning.
Over half the world’s total GDP is moderately or highly dependent on nature and its services, with an estimated US$58 trillion exposed to nature-related risk. To make these numbers tangible, consider that 75 percent of global food crops rely on pollinators, 70 percent of cancer drugs are inspired by or based on nature, as well as traditional knowledge of Indigenous Peoples, and 72 percent of companies are highly dependent on at least one ecosystem service.
More and more, science shows us that nature-based solutions are fundamental to addressing the climate crisis alongside local community health and wellbeing. These solutions include restoring forests, protecting wetlands, and regenerating grasslands, which not only sequester significant amounts of carbon dioxide—potentially offsetting up to 37 percent of global emissions cost-effectively—but are also critical in protecting communities from disaster risk, preserving vulnerable coastlines and maintaining clean water for consumption and disease prevention.
Considering any of these issues in isolation can make the risks and vulnerabilities worse through maladaptation. By addressing climate and nature together, businesses can create many positive impacts, optimize synergies, and avoid unintended consequences and inefficiencies that stem from focusing on one aspect alone.
Simply put, climate and nature resilience is business resilience.
Societal Considerations of Integrating Climate & Nature
Against this backdrop, there are fundamentally important principles for incorporating societal considerations. This means human rights considerations, including decent work, respect for Indigenous traditions, and ensuring environmental solutions don’t exacerbate societal inequalities.
Human rights approaches provide an essential roadmap for business action. Meaningful engagement with affected communities is a crucial pathway to maximizing these positive impacts and understanding the risks of damaging actions of climate and nature solutions.
Doing this well includes recognition of and commitment to upholding human rights, including Indigenous peoples' rights, assessing impacts on and including the voices of workers and local communities in decision-making, effective grievance mechanisms, and ongoing engagement for continuous dialogue.
To ensure economic opportunity is created, it’s crucial to invest in skills training for new economic opportunities, develop targeted training programs and inclusive supply chains, establish fair compensation mechanisms, and support local capacity-building initiatives.
How is BSR Helping Businesses Integrate Climate & Nature?
At BSR, we are guiding our member companies in creating integrated climate and nature strategies that consider impacts on human livelihoods through assessments, reporting and disclosure, strategy development, stakeholder engagements, and collaborations.
2025 Climate & Nature Engagement Opportunities for BSR Members
Assessments: Integrate climate and nature risks and scenarios analysis. Assess biodiversity links in operations and value chains. Map impacts and dependencies on biodiversity and natural resources. Identify areas where climate, nature, and societal goals intersect. Assist with Just Transition maturity assessment and benchmarking.
Reporting & Disclosure: Conduct Gap Assessments against regulatory requirements (i.e., ESRS and CSDDD) to understand major issues and opportunities, potential actions, as well as disclosure implications in collaboration with BSR’s Human Rights and Transformation teams.
Strategy Development: Undertake futures work on business model transformation. Integrate climate and nature transition plans that lead to business model transformation and embed Just Transition and human rights considerations. Help align business operations and supply chains with both sets of goals. Establish clear governance and oversight mechanisms.
Stakeholder Engagement: Co-create solutions with local organizations and affected stakeholders. Collaborate with suppliers on integrated solutions. Engage internal stakeholders across departments to embed climate and nature into business strategy. Partner with conservation organizations, the scientific community, and climate experts.
Collaborations: Obtain training and guidance via BSR’s Climate and Nature pilot working group, launching in 2025 to help members implement cohesive strategies integrating climate and nature. Offer outlets to anticipate and share individual approaches on disclosure requirements such as EUDR or TNFD through Future of Reporting and human rights implications through the Human Rights Work Group.
Looking Ahead
The integration of climate and nature strategies represents more than corporate sustainability—it defines business resilience for the future.
Companies that recognize and act on the interconnected nature of these challenges will be better positioned to thrive in an increasingly complex operating environment. By working with nature rather than against it, these approaches provide a holistic, multi-benefit approach to combating climate change while supporting ecological resilience and human well-being.
Success requires shifting from siloed thinking to integrated action. By embracing solutions that simultaneously address climate change, protect nature, and support communities, businesses can build truly resilient models that create lasting positive impacts.
The key to success lies not in viewing climate and nature as separate challenges but as interconnected aspects of a single journey.
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