While sustainability keeps dominating board agendas, one decisive truth is moving to the foreground: nature is not a side topic — it’s the foundation of the global economy. While climate change has (rightly) been in the spotlight for years, biodiversity loss is rapidly becoming an equally serious threat to economic stability, corporate resilience and long-term value creation.

When we talk about climate and sustainability, we often focus on emissions. But the picture is bigger. We need to talk about how immensely important intact ecosystems and thriving biodiversity are for our economy and for companies across every sector.

This article looks at the real dependencies of the German and international economy on intact ecosystems and provides practical insights and data so that companies, investors and decision-makers understand what’s at stake.

Why biodiversity is an economic topic

Ecosystems deliver services that underpin every industry: fertile soils, clean water, pollination, carbon sequestration, natural disease control and climate regulation. According to the World Economic Forum, more than 50% of global GDP — around $44 trillion — is moderately or highly dependent on nature.

Put differently: if ecosystems collapse, so does our economic system.

Key examples:

  • Agriculture depends on pollinators, soil biodiversity and water cycles. Their decline hits yields and food security.
  • Pharma relies on genetic diversity: more than 50% of all medicines derive from natural compounds.
  • Construction and infrastructure need wood, minerals and erosion protection from natural systems.
  • Tourism collapses when biodiverse destinations decay.

The German perspective: high exposure, growing risk

Germany — one of the world’s leading industrial nations — is both a beneficiary and a driver of biodiversity impacts. Studies by the Federal Agency for Nature Conservation (BfN) and the Deutsche Bundesbank show:

  • 70% of Germany’s natural ecosystems are in an “unfavourable or poor conservation status”.
  • Almost one third of native species is endangered or threatened.
  • Export-heavy sectors like chemicals, automotive and machinery are vulnerable to biodiversity-driven supply-chain disruptions.
  • The agri-food sector with over €200bn in volume is heavily exposed to pollinator loss and soil degradation.

The European Central Bank (ECB) warns that more than 75% of corporate loans in the euro area are extended to companies with dependencies on or impacts on biodiversity. That makes biodiversity loss not just an ecological problem, but a systemic financial risk.

Biodiversity risks for companies: hidden, but growing

The Taskforce on Nature-related Financial Disclosures (TNFD) has defined three main channels through which companies are exposed to biodiversity risks:

  1. Physical risks: loss of ecosystem services (e.g. flood protection, pollination) leads to operational disruptions or rising costs.
  2. Transition risks: regulatory changes such as land-use restrictions or nature taxes affect business models.
  3. Reputational risks: public criticism or consumer shifts in response to nature damage.

Real-world example: in 2022, French food group Danone faced shareholder criticism over the impact of its plastic packaging on marine ecosystems. Investors are increasingly scrutinising companies’ nature-related disclosures.

International dependencies: a global supply-chain topic

Biodiversity is a global asset, but many of the industries that depend on it operate across cross-border supply chains. Important international insights:

  • Cocoa, central to the chocolate industry, grows in biodiversity-rich tropical forests — today threatened by deforestation.
  • The fashion industry sources cotton, leather and viscose from regions under increasing ecological stress.
  • Electronics manufacturing depends on rare earths, mined in ecologically sensitive areas.

Biodiversity loss in one country can have global consequences — through disrupted supplies, rising costs or stranded assets.

The role of finance: directing capital towards nature

Financing is a powerful lever to halt biodiversity loss. By 2025, Germany has committed €1.5 billion per year to international biodiversity finance. Globally, the Kunming-Montreal Global Biodiversity Framework (adopted in 2022) is pushing governments and financial institutions to redirect subsidies and investment away from nature-damaging activities.

The Sustainable Finance Advisory Council (the German federal government’s official advisory body) calls for:

  • Integration of biodiversity risks into ESG assessments and credit risk models.
  • Development of nature-based financial products.
  • Mandatory corporate disclosures along the TNFD recommendations.

Examples of corporate leadership

Some German and European companies are already acting:

  • The BMW Group has integrated biodiversity into site planning and reduced soil sealing.
  • Vaude, an outdoor apparel brand, works with the “Biodiversity in Good Company Initiative” on nature-focused supply-chain policies.
  • Allianz is developing biodiversity-aware investment screening processes.

These front-runners show: biodiversity can be managed strategically — and can even become a competitive advantage.

Bottom line: why biodiversity concerns every company

Ignoring biodiversity is no longer an option. Whether you’re a manufacturer, retailer, software company or investor — your business depends on functioning ecosystems, directly or indirectly. The good news: new frameworks, tools and best practices emerge every day to help.

Biodiversity is the next material ESG topic. Companies that act now are:

  • Better prepared for regulation.
  • More attractive to customers and investors.
  • Less exposed to supply-chain and operational risks.

Protecting nature isn’t just good for the planet — it’s good business.