The Reason Risk Engulfing Nature Matter For The Economy And Business
Lookout: Nature Risks Escalating
Depletion of natural resources is indeed a global problem. Humans have already wiped off 83% of all wild animals and nearly partial of all species of plants. The remaining others drastically alter. Three-quarters (3/4) of green or dry land (ice- free land), including two third (2/3) of marine ecosystems.
Not just this, but hundreds and thousands to millions of species are on the verge of extinction over the next few decades, at a pace ten to dozens of times faster than in the preceding 10 million years.
According to the WEF’ 22- World Economic Forum’20 Global Risks Assessment and Report, that ecosystem collapse and biodiversity loss are among the topmost five challenges humanity will face in the next decade or so. Biodiversity is necessary for human civilizations and the economy to thrive.
According to our calculations, nature and its offers account for $44 trillion in Economic Value Generation or over half of the world’s total GDP (Gross Domestic Product).
Most organizations are affected by natural disasters, which disrupt operations, supply networks, and markets. But, we can affect change by preventing and reversing the natural repercussions of our world’s decline. Humanity must reevaluate its connection and relation with nature as soon as possible.
Business leaders may play a fundamental role in preventing fatal outcomes by incorporating nature into their operations, decision-making, methodically identifying, analyzing, reducing, and exposing nature concerning and related risks. On a worldwide scale, businesses may contribute to environmental conservation and rehabilitation.
Despite the growing focus on environmental degradation, there yet is lack of awareness on how vital it is for business and to access what private sectors can do to help. In 2020, the WEF (World Economic Forum) released sequence of New Nature Economy (NNE) reports that established economic and business cases to protect the environment.
The series intends to kick-start public and private momentum in the year 2020, with focus towards the UN Convention on Biological Diversity’s (COP15) landmark summit in Kunming, China, and the accompanying Business for Nature mobilization.
The first study in the New Nature Economic series, Nature Risk Rising, discusses nature concerned and related risks are important for businesses to take in consideration and also important for them to take in account how they can integrate risk management plans as soon as possible.
Also, it is vital prioritize the conservation of nature’s assets within the more comprehensive global economic growth and rise. This was developed in collaboration with PwC.