Nature-related risks — The financial wake-up call for business

Drawing from over 600 pieces of evidence across 360 sources, the report reveals that nature-related risks—such as biodiversity loss, water scarcity, and ecosystem degradation—are already translating into real financial impacts. Importantly, “the local dimension of nature can cascade through supply chains into effects far away from their origin, whether non-economic (e.g. health impacts), economic or financial.” (p 10)

Financial impacts include:

• Increased operational costs due to resource scarcity and regulatory compliance
• Revenue losses from disrupted supply chains and shifting consumer preferences
• Productivity losses: Businesses report hours to days of lost productivity due to physical displacement from nature-related disasters.
• Insurance payouts: Insurers and reinsurers are facing billions in claims due to nature-exacerbated disasters like floods, wildfires, and droughts.
• Capital expenditure: Companies are incurring significant capex to adapt infrastructure and supply chains to nature-related risks.
• Asset devaluation: Sectors dependent on natural capital (e.g., agriculture, forestry, tourism) are seeing asset write-downs and valuation losses.
• Higher cost of capital as investors factor in environmental risk exposure

The report emphasises that nature is not just a sustainability issue—it’s a financial one. Yet, despite growing awareness, many companies still lack robust frameworks to assess and disclose these risks.

Key recommendations:

1. Integrate nature into enterprise risk management using TNFD-aligned frameworks.
2. Adopt scenario analysis to stress-test business models against nature-related disruptions.
3. Improve data availability and quality to support decision-making.
4. Engage with stakeholders—from investors to regulators—to align on expectations and disclosures.

The evidence is clear: nature-related risks are financially material. Businesses that act now will not only mitigate risk but unlock new opportunities in the transition to a nature-positive economy.

If you would like more information or you require assistance with your ESG journey, please contact your usual Forvis Mazars advisor or alternatively our sustainability expert Damien Lambert via the form below or on

Published: 3/7/2025

All rights reserved. This publication is intended to provide a general summary and should not be relied upon as a substitute for personal advice. Content is accurate as at the date published.

View the full Evidence review on the financial effects of nature-related risks report here