Perspectives on Climate Change and Nature

Nature-derived services are important for the global economy. Research from the World Economic Forum (WEF) found that over half of the world’s Gross Domestic Product (GDP) is either moderately or highly dependent on nature and its services¹. For example, fresh water is critical to many businesses, including agriculture, mining, and food retailing; genetic diversity in nature is critical to the pharmaceutical industry; and intact wetlands and forests protect buildings and infrastructure from flooding, storms, and natural disasters.

Nature refers to the natural world. It is generally considered to consist of four realms: land, ocean, freshwater and atmosphere. Each of these differs in terms of their organization and function and provides an important starting point for understanding how organizations and people depend, and have impacts, on nature².

The potential systemic impacts of nature-related factors are also increasingly being recognized. While not a legally binding agreement, the adoption of the Kunming-Montreal Global Biodiversity Framework (GBF) by 188 countries in December 2022 was an important development as it set out goals, targets, and expectations regarding national commitments that aim to halt and reverse nature loss³.

Despite the global economy’s dependence on nature, efforts to quantify related risks and opportunities have been constrained by a lack of consistent and reliable data and methodologies. Recent progress has been made with the release of the Taskforce on Nature-related Financial Disclosures’ (TNFD) final recommendations in September 2023⁴. The TNFD provides a voluntary framework and sector-specific guidance for the disclosure of nature-related dependencies, impacts, risks, and opportunities⁵.