Embracing Nature-Based Solutions: A Strategic Approach for Businesses
The International Union for Conservation of Nature (IUCN) defines nature-based solutions as “actions to protect, sustainably manage, and restore natural or modified ecosystems, that address societal challenges effectively and adaptively, simultaneously providing human well-being and biodiversity benefits.” This nature-based approach offers organizations a pathway to address a wide range of environmental risks to their business and society, including climate change, ecosystem degradation, and the loss of natural capital, according to James Cascone, a Deloitte Sustainability leader and partner at Deloitte & Touche LLP.
Recognizing the Business Case
Some companies already acknowledge the importance of protecting nature to prevent ecosystem collapse, but many are still exploring the implications of nature for their business and navigating compliance and regulatory issues related to nature transition risks, says Stephanie Cárdenas, an Audit & Assurance senior manager and lead in the U.S. Nature Services practice at Deloitte & Touche LLP.
In a discussion with Tim Christophersen, who directs nature-positive strategy for the Salesforce Impact Team, Cascone and Cardenas explore how nature-based solutions can help companies develop broader nature-positive strategies to tackle environmental challenges, including the climate crisis.
The Critical Role of Nature-Based Solutions
Tim Christophersen illustrates the importance of nature-based solutions with an example from Zambia, which is experiencing severe droughts leading to significant crop failures. Farmers practicing agroforestry, a nature-based solution that integrates trees with crops, are managing to sustain food production. This example underscores that nature-based solutions are not niche issues but central to ensuring resilience against environmental challenges.
Christophersen emphasizes that although the situation in Zambia might seem distant to international executives, similar environmental challenges due to climate change are likely to affect companies and countries globally. Therefore, all societal levels—individuals, governments, NGOs, and corporations—should explore the potential benefits of nature-based solutions.
Shifting Economic Models
The report, “Putting nature and biodiversity loss on the business agenda,” stresses that a nature-positive future requires transformative changes in production, consumption, governance, and financing. Christophersen shares insights from a meeting in Brazil, where representatives from 50 companies and the Brazilian Ministry of Environment discussed building a sustainable, non-extractive economic future. Companies can play a pivotal role beyond their value chains by acting as conveners to build a more sustainable and nature-positive economy.
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Developing Nature-Based Strategies
Companies can develop nature-based strategies by learning from each other through groups such as Business for Nature, the World Economic Forum, EDF+Business, the World Business Council for Sustainable Development, and the 1t.org initiative. Christophersen highlights that nature is either directly or indirectly material to every company’s supply and value chain. He points out that while some industries already recognize nature’s critical role, others need to understand that resource extraction’s environmental checks are starting to bounce, causing supply chain disruptions.
Integrating Climate and Nature Strategies
Christophersen notes that half of the 2,000 largest companies globally still lack a climate action plan, though this is changing due to new legislation and mandatory disclosures. Companies should integrate nature into their climate transition plans, recognizing nature’s dual role in climate change mitigation and resilience. Demonstrating the effectiveness of nature-based solutions can shift the narrative and show their value.
Overcoming Challenges
Assessing the nature footprint can be challenging, akin to understanding a carbon footprint, requiring third-party data from suppliers. Christophersen mentions the importance of support for nature investments and highlights the need to balance investments in technology and nature-based approaches.
Immediate Nature-Positive Actions
Christophersen recommends that companies invest in the voluntary carbon market (VCM) to support nature-based solutions beyond their value chain. Forming alliances with governments, NGOs, scientists, and other stakeholders can significantly impact nature protection and restoration. Celebrating nature-positive success stories within the company can inspire employees and attract talent, particularly those who value sustainability and strong core values.
Conclusion
Nature-based solutions offer a strategic approach for companies to address environmental risks while enhancing resilience and sustainability. By integrating these solutions into their operations, companies can contribute to a nature-positive future and align their business practices with broader environmental and societal goals.
— by Aaron Dalton, freelance writer, and Andy Marks, editor, Executive Perspectives in the Wall Street Journal, Deloitte Services LP
