Nature Is the Next Climate: Why Biodiversity Is Becoming a Board-Level ESG Topic?
- EcoVision
- Jan 6
- 3 min read
For years, climate has been the center of gravity in corporate sustainability. That’s changing fast. In 2026, “nature” (biodiversity, land use, water, and deforestation) is moving from a specialist conversation into mainstream risk and strategy—because companies are realizing a simple truth: climate resilience depends on healthy ecosystems, and many supply chains depend on nature whether or not it appears on a balance sheet.
This is why nature-related disclosure and due diligence is rising on executive agendas. The companies that get ahead now will likely face fewer supply disruptions, lower compliance risk, and more credible sustainability narratives.
What’s driving the shift?
1) Financial materiality is becoming harder to ignore
Nature loss is no longer framed only as an ethical issue. It’s increasingly viewed as operational and financial risk: water scarcity affecting production, soil degradation impacting yields, or ecosystem loss increasing physical risk and volatility across commodity markets.
As investors broaden their lens beyond carbon, nature-related risk is starting to show up in engagement questions, credit analysis, and insurance discussions (World Economic Forum, 2024).
2) Expectations are crystallizing around TNFD
The Taskforce on Nature-related Financial Disclosures (TNFD) has created a practical pathway for organizations to identify, assess, and disclose nature-related dependencies and impacts.
Adoption is still uneven, but the direction is clear: stakeholders want companies to explain where they intersect with sensitive biomes, how they manage those impacts, and what governance sits behind the claims (TNFD, 2023).
A key point: nature reporting is not just “another ESG report section.” It often requires mapping geographies, suppliers, and raw materials with a level of specificity many companies have never needed before.
3) Deforestation and supply chain due diligence are tightening
Across multiple markets, expectations are rising for deforestation-free and conversion-free supply chains. Even beyond formal legal requirements, large buyers are increasingly asking suppliers for traceability, chain-of-custody evidence, and time-bound remediation plans.
The message: “we have a policy” is not enough; proof is becoming the currency of trust (European Commission, 2023).
For more details, feel free to refer to my previous green blog article: https://www.ecovision.com.hk/post/uk-s-tpt-and-impact-to-corporates
UK's TPT? and impact to corporates?4) Water is becoming the practical entry point
Nature can sound abstract. Water is not. Many organizations are starting with water stewardship because it connects directly to site operations, community license to operate, and physical climate risk.
The most credible programs link water risk to facility planning, watershed context, and supplier expectations (CDP, 2023).
What this means for ESG leaders (and non-ESG leaders)
Nature work tends to fail when it sits solely in sustainability teams. It succeeds when it is treated like a business program: clear ownership, cross-functional delivery, and measurable outcomes.
If you’re deciding what to do next quarter, four actions create momentum without boiling the ocean:
Identify your “nature hotspots.” Map where your operations and major suppliers intersect with water-stressed basins, deforestation-risk regions, and high-biodiversity areas.
Pick 2–3 metrics you can defend. Start small but verifiable: traceability coverage, % of at-risk spend assessed, water withdrawal intensity in priority sites.
Align procurement and claims. If you’re making nature-positive statements, procurement must be able to show requirements, audits, and corrective action pathways.
Use TNFD as a compass, not a checkbox. Focus on decision-useful disclosures and governance, not a perfect first report.
The sustainability conversation is widening. Carbon is still critical—but the next wave of credibility will belong to organizations that can demonstrate climate progress while also protecting the natural systems their business depends on.
References & additional readings
#ESG #Sustainability #CorporateSustainability #SustainableBusiness #ClimateRisk #NaturePositive #Biodiversity #TNFD #SupplyChainSustainability #WaterStewardship
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