Management of nature-related risks
Does the company manage its nature-related risks?
The WBA Nature Benchmark measures and ranks the world's most influential companies on their efforts to protect the environment and its biodiversity, tracking how companies are reducing their negative impacts on nature and contributing to the protection and restoration of ecosystems, aligned with the goals of the Global Biodiversity Framework. The 2026 edition assessed 750 companies across multiple sectors including agro-food, forestry, building, tourism and the blue economy. The benchmark is developed in close collaboration with an Expert Review Committee and partners including GRI, SBTN, and TNFD, with a methodology designed to incentivise companies to understand where nature-related risks are highest and act to halt damaging trends, while keeping human rights and social impacts at its core.
More information can be found here.
More information can be found here.
Ecosystem services are the benefits that humans derive from ecosystems and on which
human life and activities, including corporate activities, rely. Research shows that more than 50% of
global gross domestic product is directly linked to these ecosystem services (WEF and PwC, 2020),
exposing companies to significant nature-related dependencies, risks and opportunities. The 2024
Global Risks Report shows that the top four risks identified over the next ten years are all
environmental: extreme weather events, critical change to Earth systems, biodiversity loss and
ecosystem collapse, and natural resource shortages. Understanding and disclosing these factors is
essential for companies to develop resilient strategies and contribute to a sustainable economyThe company must provide evidence that it is taking action in response to the identified nature-related risks by carrying out concrete actions or by integrating the nature-related risks into their risk management strategy.
Examples of actions companies can take in response to nature-related risks include:
**Physical Risks: **
**Acute Risks** (e.g., typhoons, floods): Companies can implement robust monitoring systems, invest in infrastructure to prevent and respond to extreme events (e.g., embankments, fire breaks), and adopt sustainable resource management practices.
**Chronic Risks** (e.g., droughts, rising sea levels, temperature shifts): Companies can integrate long-term nature-related risk assessments into their strategies, shift to water-efficient processes, and support ecosystem restoration initiatives to mitigate gradual environmental changes.
**Transition Risks: **
**Policy Risks:** Companies can align business strategies with emerging environmental policies and complying with new regulations ahead of enforcement.
**Market Risks: **Companies can adapt by shifting to sustainable product offerings, embracing eco-friendly packaging, and responding to the growing demand for green alternatives.
**Technology Risks:** Companies can invest in alternative technologies and develop innovative, low-impact products.
**Reputational Risks: **Companies can engage with stakeholders on sustainability initiatives and invest in transparency to improve public perception.
**Liability Risks: **Companies can strengthen environmental risk management practices, implement stricter internal policies, and actively remediate past environmental damage.
**Systemic Risks: **
**Ecosystem Stability Risk: **Companies can ensure their supply chains are free from practices that lead to ecosystem degradation and support restoration projects.
**Financial Stability Risk:** Companies can assess nature-related risks to their business and integrate mitigation strategies.
human life and activities, including corporate activities, rely. Research shows that more than 50% of
global gross domestic product is directly linked to these ecosystem services (WEF and PwC, 2020),
exposing companies to significant nature-related dependencies, risks and opportunities. The 2024
Global Risks Report shows that the top four risks identified over the next ten years are all
environmental: extreme weather events, critical change to Earth systems, biodiversity loss and
ecosystem collapse, and natural resource shortages. Understanding and disclosing these factors is
essential for companies to develop resilient strategies and contribute to a sustainable economyThe company must provide evidence that it is taking action in response to the identified nature-related risks by carrying out concrete actions or by integrating the nature-related risks into their risk management strategy.
Examples of actions companies can take in response to nature-related risks include:
**Physical Risks: **
**Acute Risks** (e.g., typhoons, floods): Companies can implement robust monitoring systems, invest in infrastructure to prevent and respond to extreme events (e.g., embankments, fire breaks), and adopt sustainable resource management practices.
**Chronic Risks** (e.g., droughts, rising sea levels, temperature shifts): Companies can integrate long-term nature-related risk assessments into their strategies, shift to water-efficient processes, and support ecosystem restoration initiatives to mitigate gradual environmental changes.
**Transition Risks: **
**Policy Risks:** Companies can align business strategies with emerging environmental policies and complying with new regulations ahead of enforcement.
**Market Risks: **Companies can adapt by shifting to sustainable product offerings, embracing eco-friendly packaging, and responding to the growing demand for green alternatives.
**Technology Risks:** Companies can invest in alternative technologies and develop innovative, low-impact products.
**Reputational Risks: **Companies can engage with stakeholders on sustainability initiatives and invest in transparency to improve public perception.
**Liability Risks: **Companies can strengthen environmental risk management practices, implement stricter internal policies, and actively remediate past environmental damage.
**Systemic Risks: **
**Ecosystem Stability Risk: **Companies can ensure their supply chains are free from practices that lead to ecosystem degradation and support restoration projects.
**Financial Stability Risk:** Companies can assess nature-related risks to their business and integrate mitigation strategies.