As companies’ sustainability efforts begin to move beyond carbon reduction, a new report from Sweco highlights the untapped business potential of protecting and restoring nature. Despite the growing risk of biodiversity loss, only 16% of Europe’s 50 largest manufacturing and energy companies currently recognise biodiversity as financially material. The report calls on business leaders to integrate biodiversity into core operations – both to manage risks and to unlock new growth opportunities.

Estimates show that globally over €50 trillion in annual economic activity is moderately or highly dependent on nature* and the World Economic Forum ranks biodiversity loss among the top global risks in the next decade**. Key industries – from mining and forestry to infrastructure and energy – are directly dependent on healthy ecosystems. Wetlands and rivers, for example, support critical services such as transport, water supply and cooling for power generation.

In a new report, Sweco has analysed the 50 largest European manufacturing and energy companies by revenue. While 82% consider biodiversity a material issue in terms of environmental impact, only 16% view it as financially material.

“Sweco’s analysis shows that while most of the companies acknowledge biodiversity as a material issue from an environmental impact perspective, only a small minority link it directly to financial performance. This means that increasing biodiversity entails untapped business value for companies– as estimates show that nature-positive business models could generate up to €10 trillion in new value, and integrating biodiversity and climate strategies could help create 395 million jobs by 2030***,” says Piia Pessala, Executive Director in biodiversity at Sweco and one of the authors of the report.

Sweco’s report outlines a path for businesses to future-proof operations through biodiversity. It recommends mapping value chains, measuring ecological impact and collaborating across sectors. By highlighting the risks of inaction and the opportunities presented by nature-positive investment – including tools like sustainability-linked bonds and nature impact funds – the report makes a strong case for embedding biodiversity into core strategy to gain competitive and long-term value.

“In addition to conscious clients, biodiversity initiatives can attract responsible investors who may view any failure to take biodiversity into consideration as a business risk. Sweco recommends that European business leaders start treating biodiversity as fundamental to their strategy, just as they have with climate,” says Piia Pessala.

Method
Sweco analysed how the 50 largest European manufacturing and energy companies (by revenue) are addressing biodiversity. The analysis was based on the companies’ 2024 sustainability and annual reports, with a focus on their double materiality assessments (DMAs) and EU Taxonomy disclosures. To support the reporting analysis, Sweco also used the ENCORE tool (Exploring Natural Capital Opportunities, Risks and Exposure), developed by the UN Environment Programme and the Natural Capital Finance Alliance, to assess the sectors’ biodiversity impacts and dependencies.