The Risks

Embedding biodiversity considerations in corporate decision-making helps to mitigate risk and to identify new business opportunities. These risks are diverse and often not evident at first sight. Moreover, risks are not equally distributed among industries and threats for the different sectors can result from various factors.

Primary production is particularly dependent on biodiversity, as possible resource shortages, new laws and regulations pose severe threats or tighter environmental requirements complicate the access to corporate loans. Pharmaceuticals as well can experience difficulties due to litigations faced or increased expenses for raw materials. Construction companies can be ordered to undertake compensation measures, utilities are concerned by reduced productivity of ecosystems, changes in consumer preferences affect the retail and tourism sector and all sectors have to be aware of reputational risks when acting unsustainably.

Key messages

  • Almost every sector is to some extent dependent on biodiversity.
  • Reputational risks can severely damage a company's image

Further information on the risks

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