Nature Loss Poses Growing Threat to Global Markets, New Study Shows

Nature degradation is no longer viewed solely as an environmental issue. A newly endorsed global scientific assessment warns that biodiversity loss is evolving into a systemic risk for economies, supply chains and financial markets worldwide.

Biodiverse European forest bordering an industrial landscape. AI generated picture.

The Business and Biodiversity Assessment by the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES), backed by more than 150 governments, concludes that ecosystem decline directly affects economic performance and long-term financial stability. Its core finding is unequivocal: every company depends on biodiversity, and every company has an impact on it.

Healthy ecosystems underpin essential sectors, including agriculture, raw materials, water supply, tourism and climate resilience. Yet prolonged patterns of unsustainable growth have eroded natural capital, increasing exposure to supply chain disruptions and investment risk. For financial institutions and corporates alike, biodiversity loss is becoming a material factor.

‘Science is clear: our economies and businesses rely on nature. Protecting and restoring ecosystems is not only an environmental necessity – it is an economic priority. I also warmly welcome Slovenia’s accession to IPBES, meaning that all 27 EU Member States are now part of this vital global science-policy platform. This strengthens Europe’s collective commitment to evidence-based action and to turning science into real investment and implementation on the ground,’ Jessika Roswall, Commissioner for Environment, Water Resilience and Competitive Circular Economy stated.

The report highlights a widening gap between harmful and restorative financial flows. In 2023, an estimated €6.12 trillion was channelled into activities damaging to biodiversity, compared with just €184.58 billion invested in conservation and restoration. Environmentally harmful public subsidies alone accounted for approximately €2.01 trillion, spanning fossil fuels, agriculture, water, transport, construction and fisheries.

IPBES outlines more than 100 actions to help governments, investors and corporates better assess and manage biodiversity impacts. However, disclosure remains limited: fewer than 1% of publicly reporting companies currently report on biodiversity-related risks, underscoring a structural misalignment between capital allocation and nature-positive outcomes.

In response to mounting scientific evidence, the European Commission is advancing tools to accelerate private investment in nature. Its forthcoming Roadmap towards nature credits aims to create credible mechanisms that reward measurable ecosystem improvements and attract capital into sustainable land and marine management.

An expert group, pilot initiatives and a dedicated scoping study are now underway, with early results expected in the coming months. The policy momentum will also be reflected at EU Green Week 2026, where investment in nature and practical business models for biodiversity will take centre stage, including a new start-up–investor matchmaking platform focused on nature-based solutions.