The world's largest enterprises are increasingly acknowledging the risks and opportunities presented by nature and natural capital. This awareness is prompting more businesses to set specific goals to address their influence on various aspects of nature, such as water, biodiversity, forests, and more. The unprecedented decline of nature and biodiversity emphasizes the urgency of these commitments. As of 2023, six out of the nine planetary boundaries proposed by scientists in 2009 have been exceeded, indicating significant risks for both people and the planet.

Unlock the Potential of Nature for Business Success

Nature and Natural Capital: A Crucial Consideration for Companies

The world's largest companies are now realizing the significance of nature and natural capital. This awareness is driving them to take proactive measures to address their impact on the environment. By setting specific targets, companies are aiming to protect and restore nature, which is essential for the sustainable development of the planet.For example, Starbucks and Mitsubishi have recognized the importance of biodiversity and have adopted GBF targets in their commitments. This shows that companies across different sectors are starting to prioritize nature and are taking steps to address the issues at hand.

Expanding Nature-Related Commitments Beyond Carbon

Compared to 2023, the number of Fortune Global 500 companies setting firm targets for preserving or restoring nature or acknowledging nature's importance has increased across all dimensions except carbon. The share of companies with targets in chemicals and plastics, biodiversity, and forests has gone up, while those with targets in carbon, water, and nutrients or NOx has slightly decreased.This indicates that companies are expanding their focus beyond carbon and are recognizing the importance of other dimensions of nature. For instance, the increase in commitments related to chemicals and plastics may be due to policies such as Extended Producer Responsibility (EPR) legislation for packaging.

Specificity and Scope of Nature Targets Vary Significantly

The specificity and scope of nature targets set by companies vary greatly from one to another. In biodiversity, for example, targets range from protecting a certain amount of land and ocean to halting and reversing biodiversity loss. This variability presents both an opportunity and a challenge for companies.On one hand, it provides an opportunity for companies to adopt existing standards and set more specific, quantifiable targets. On the other hand, it also highlights the need to develop new approaches to measure progress against these targets.

Sectors Show Differences in Target Setting

The manufacturing sector continues to have the highest share of companies with three or more nature-related targets. However, other sectors such as construction and buildings and retail sales and services have also shown significant growth in this category.For example, the share of construction and buildings companies with no targets remains high at 52%, but among those with targets, there has been a significant increase. This indicates that progress within these sectors is concentrated among companies with existing nature-related targets.

Regional Differences in Nature Target Setting

All regions except Asia have seen a significant increase in the share of companies making three or more nature-related commitments. Latin America has experienced the largest rise, with the number of companies increasing from four out of 14 studied companies last year to eight this year.This trend is in line with Latin American countries' recent commitments to protecting nature. For instance, 22 countries in the region have joined the High Ambition Coalition for Nature and People's 30×30 initiative.In Europe, companies are also taking significant steps, driven by recent nature-focused policies such as the EU Regulation on Deforestation-free Products (EUDR) and the EU Nature Restoration Law.

The Need for Collective Action and Innovation

Corporate nature action is gaining momentum, but there is still a long way to go. Our 2022 Nature in the Balance report outlines sector-level actions that companies can take to restore natural capital.Increasing collective actions by companies highlight the private sector's deepening commitment to nature. As the momentum builds around nature and natural capital, corporate leaders have the opportunity to play a central role in bringing businesses back within the safe operating space for humanity.To further these efforts, we are collaborating with the World Economic Forum to convene global CEOs to lead business initiatives for a nature-positive future.