Why companies should care about biodiversity

Imagine being unable to enjoy your favorite coffee because the pollination process needed to grow those beans has been disrupted. For many businesses, biodiversity is more than a conservation topic; it’s the backbone of entire industries.

The topic of biodiversity, the variety of life on Earth, often brings to mind lush rainforests or colorful coral reefs. While it’s true that these ecosystems are vital, biodiversity plays a pivotal role far beyond environmental beauty. It ensures clean air, regulates the climate, and even stabilizes crop production. Here’s the kicker: Healthy ecosystems also keep businesses running.

From supply chain resilience to new market opportunities worth billions, biodiversity is tightly interwoven with economic prosperity. Yet, its importance often flies under the radar. Understanding the business benefits of biodiversity isn’t just a sustainability goal; it’s a strategic advantage in today’s interconnected economy.

Biodiversity directly and indirectly impacts businesses in ways many companies are only beginning to understand.

Here, we’ll dig into the business benefits of biodiversity, including how it affects operations, and what role businesses can play in harm reduction and preventing biodiversity loss.

What’s the link between businesses and biodiversity?

More than half of the world’s GDP ($44 trillion) is moderately or highly dependent on nature, according to the World Economic Forum. At its core, biodiversity includes everything from the genes of different species to entire ecosystems like forests and oceans. It provides the natural systems that clean our air, purify water, pollinate crops and regulate climate. Businesses, in ways obvious and not, rely heavily on these systems.

However, human activities like deforestation and development, intensive agricultural and food production, pollution and overuse of resources, undermine ecosystems, can lead to biodiversity loss and risks for businesses. Some of the resultant challenges for businesses include: supply chain disruptions, increasing costs of raw materials, reputational damage and new regulatory requirements, to name a few.

At the same time, businesses have a unique opportunity to reverse this trend by adopting practices that conserve biodiversity while creating long-term value.

What are the business benefits of biodiversity preservation?

Five compelling business benefits of biodiversity preservation include mitigating operational risks, compliance with emerging regulations, enhancing brand reputation and trust, supporting long-term business resilience and unlocking new market opportunities.

Here, we’ll explain each benefit in greater detail.

1. Mitigating operational risks

Biodiversity loss severely disrupts critical business operations, particularly those dependent on natural resources. For instance:

Agricultural companies rely on diverse ecosystems for healthy soil and crop pollination
Automotive, agricultural, textile and manufacturing and other industries use a significant amount of water, which biodiversity helps regulate
Pharmaceutical companies depend on plant and animal species for new medicine development

When ecosystems collapse, industries face diminished production capacity, elevated costs and lower product quality. Incorporating biodiversity-conscious policies can mitigate these risks, ensuring operational stability.

2. Compliance with emerging regulations

Governments worldwide are raising the bar on corporate accountability for environmental sustainability. For instance, the European Union’s Corporate Sustainability Reporting Directive (CSRD) now requires businesses to report their environmental impact, including biodiversity. Companies failing to comply risk penalties, operational restrictions and diminished stakeholder trust.

By proactively taking steps to protect biodiversity, businesses can:

Stay ahead of regulatory requirements
Avoid non-compliance penalties
Showcase leadership in sustainability efforts to investors and consumers alike

3. Enhancing brand reputation and trust

A commitment to biodiversity positions businesses as socially responsible and environmentally conscious, qualities highly valued by today’s customers. Positive press, improved public perceptions, and strengthened trust among consumers and stakeholders can result from adopting biodiversity-friendly measures.

Research shows B2B buyers are willing to pay a premium and are 2.7 times more likely to make long-term commitments to trusted suppliers offering sustainable product options.

Here at Dassault Systèmes, we’re committed to reducing our environmental footprint and negative impact on biodiversity. Using science-based strategies, our stated goal is to achieve carbon neutrality by 2040, optimize energy usage and integrate sustainable practices across all of our operations.

4. Supporting long-term business resilience

Ecosystems provide foundational services that sustain economies. Without fertile land, clean oceans and balanced ecosystems, industries lose their foundational support. By fostering circular manufacturing and regenerative practices in upstream industries, businesses can maintain the long-term viability of the natural resources they depend on. This approach leads to economic resilience—not just for businesses but for the communities they operate within.

“True business resilience lies in turning uncertainty into opportunity,” said Dassault Systèmes Chief Sustainability Officer Philippine de T’Serclaes. “By placing sustainability at the heart of strategy, enterprises not only reduce risk but unlock new pathways for innovation, agility and long-term growth.”

a woman harvesting fruit from indoor farming - business benefits of biodiversity - Dassault Systèmes blog

5. Unlocking new market opportunities

Sustainability transcends trendiness. It’s a full-on cultural shift that directly influences consumer behavior. A growing majority of consumers prefer environmentally responsible brands. Businesses that support biodiversity through sustainable practices can unlock significant market opportunities:

Product innovation: Companies can introduce eco-friendly products like biodegradable packaging or nature-based ingredients
Safeguarding life-savers: An estimated 80% of medicines come from plants, and some research suggests biodiversity loss might cost us “an important drug every two years.”
Positive economic impact: According to the World Economic Forum, biodiversity preservation could generate $10 trillion in business value and 395 million jobs by 2030

What role does business have in preventing biodiversity loss?

Businesses wield significant power when it comes to biodiversity conservation. With their resources, innovation, and influence, they can lead the charge toward a nature-positive future. Here’s how they can contribute:

1. Reduce harm to biodiversity

Companies can minimize negative environmental impact by adopting:

Circular economy practices: Moving beyond the take-make-waste cycle to adopt circular economy principles, such as reducing waste, reusing materials, designing for circularity and promoting recycling, can decrease the negative effects of production processes.
Sustainable resource management: Opting for renewable and responsibly sourced materials ensures environmental sustainability.
Technology integration: Tools like virtual twins allow companies to simulate product lifecycles, enabling them to design solutions that reduce environmental harm. More than measuring current environmental impact, life cycle assessment helps companies understand the impact of future decisions and act accordingly.

2. Adopt regenerative practices

Beyond reducing harm, businesses can actively restore ecosystems by:

Rehabilitating degraded land through tree-planting initiatives or sustainable agriculture.
Using biomimicry to emulate natural processes for more sustainable technological and industrial innovations.
Supporting marine conservation efforts like protecting coral reefs or reducing plastic pollution.
Vertical farming – whether in cities or in space – as a way to produce food and preserve biodiversity.
Partnering with NGOs and conservation groups to scale biodiversity projects.

3. Collaborate with stakeholders

Biodiversity protection requires collaboration across industries, governments and civil society. Businesses could:

Engage in cross-sector partnerships to establish industry standards for biodiversity conservation.
Participate in global initiatives such as the United Nations’ Global Biodiversity Framework or the Science-Based Targets Network.
Empower local communities to manage natural resources sustainably.

4. Lead the conversation

Businesses can act as thought leaders, advocating for biodiversity preservation to drive policy changes and influence public awareness. Sharing success stories and lessons learned helps elevate the importance of biodiversity in global conversations.

5. Monitor and commit through data

Transparency is key to biodiversity improvement. Historically speaking, few companies have had the tools and information to measure, let alone understand, their impact on biodiversity. In recent years, however, significant strides have been made on the ability to measure and report on a company’s impact on biodiversity.

To that end, companies can:

Get familiar with existing frameworks for curbing biodiversity loss.
Use tools to assess biodiversity impact at every stage of their operations.
Set actionable, science-based targets to reduce their environmental footprint.
Regularly report progress to investors, customers and the public.

At Dassault Systèmes, for example, we regularly report our progress toward the Science-Based Target initiative (SBTi) in our Universal Registration Document.

Protecting biodiversity is a business imperative

This much is clear: the business benefits of biodiversity include new economic opportunities and protection against disruptions and penalties for noncompliance. Conservation efforts ensure operational resilience, unlock new opportunities and foster sustainability that benefits not only the planet but also the bottom line.

Businesses that act now will lead the way toward a more equitable and prosperous future. By adopting biodiversity-friendly practices, companies can drive meaningful change while securing their own long-term success.

Are you ready to align your business with nature? Learn more about how companies worldwide are incorporating biodiversity into their core strategies and discover actionable steps your organization can take to make a difference.

Learn more about biodiversity and business