Global businesses are accelerating environmental degradation despite depending heavily on nature for essential resources and services, according to a major new report backed by more than 150 countries.
The study, released on Monday by the Intergovernmental Platform on Biodiversity and Ecosystem Services (IPBES), warns that an economic system focused on gross domestic product (GDP) growth is causing widespread damage to ecosystems, biodiversity, and natural resources.
Nearly 80 scientists and industry experts worked for three years on the report, which aims to guide governments, investors, and corporations in shaping policies and financial decisions that protect nature.
Natural Capital Down Nearly 40% Globally
The report highlights that nature is declining at an alarming rate worldwide, with natural capital — including ecosystems and natural resources — falling by almost 40%.
Experts argue that markets fail to properly value biodiversity and ecosystem services, meaning companies rarely bear the financial cost of environmental destruction. As a result, businesses have little incentive to invest in conservation or sustainable practices.
Trillions Spent on Nature-Damaging Activities
Despite growing awareness, governments and corporations continue to prioritize investments that harm the environment. According to the UN’s State of Finance for Nature report, $7.3 trillion was spent on nature-negative activities in 2023, compared with just $220 billion on nature-friendly investments.
Environmental groups and scientists have long warned that protecting ecosystems is not just an ethical issue but a financial necessity, as nature provides critical services such as pollination, water filtration, and protection from climate extremes like floods and heatwaves.
Business Incentives Must Change
Stephen Polasky, professor of environmental economics at the University of Minnesota and co-chair of the report, said the current system often pits business interests against environmental protection.
“Too often, at present, what’s good for business is bad for nature, and vice versa,” he said. “We can’t just say businesses should be good. We need mechanisms that create incentives for them to act.”
Call for Nature-Friendly Economic Transition
The IPBES summit concluded in Manchester, UK, on Sunday, with researchers and diplomats endorsing the findings. UK environment minister Emma Reynolds opened the conference by reading a message from King Charles, urging nations to move toward an economy that thrives in harmony with nature.
IPBES is considered the biodiversity equivalent of the UN’s Intergovernmental Panel on Climate Change (IPCC), providing periodic scientific assessments to guide global environmental policy.
US Withdrawal Raises Concerns
The report comes amid geopolitical tensions over global environmental governance. The United States recently announced its withdrawal from both the IPBES and IPCC processes, raising concerns among scientists about global cooperation on climate and biodiversity challenges.
A Warning for Governments and Corporations
Experts say the report sends a clear message: economic growth that ignores nature will undermine both the environment and long-term business stability. Without systemic changes in policy, finance, and corporate incentives, the decline of ecosystems could accelerate, posing severe risks to food security, health, and economies worldwide.