- Report finds putting nature first is good for business and economic resilience
- Nature-positive solutions will create US$ 10.1 trillion in business opportunity and millions of new jobs
- Covid-19’s impact is a stark reminder of our imbalance with the natural world, but the report shows opportunities for businesses and governments to build back better
- Policy companion outlines how finance ministers can kick-start a nature-positive economy
The global Covid-19 pandemic has caused unprecedented job losses and economic uncertainty. As governments and businesses look to stimulate growth, a new study from the World Economic Forum found that ‘nature-positive’ solutions can create 395 million jobs by 2030.
The Future of Nature and Business Report provides blueprints for businesses to tap into a US$ 10.1 trillion business opportunity, focusing on industry actions that are nature-positive, meaning that they add value to nature.
The report is built on real world examples where business outcomes have been improved by nature-positive outcomes. Smart farming utilising sensors and satellite imagery in Indonesia improved crop yields on average by 60 per cent. Suzhou Industrial Park’s green development in China has seen its GDP increase 260-fold partially through green development. In Viet Nam, people living in coastal communities saw their incomes more than double following the restoration of critical mangroves.
“We can address the looming bio-diversity crisis and reset the economy in a way that creates and protects millions of jobs. Public calls are getting louder for businesses and government to do better. We can protect our food supplies, make better use of our infrastructure and tap into new energy sources by transitioning to nature-positive solutions,” said Akanksha Khatri, Head of the Nature Action Agenda, World Economic Forum.
The report, written in collaboration with AlphaBeta, segments actions into the following three areas or socio-economic systems where change can be scaled.
Food, land and ocean use: What we eat and grow makes up around US$ 10 trillion of global GDP and employs up to 40 per cent of the global workforce. Nature-positive solutions can create 191 million new jobs and US$ 3.6 trillion of additional revenue or cost savings by 2030. Here are some examples:
- Diversifying the diet: Some 75 per cent of the world’s food comes from 12 plant and five animal species. Animal products provide 18 per cent of calories but take up 80 per cent of farmland. A more diversified diet of vegetables and fruits can create US$ 310 billion in business opportunities annually by 2030.
- Technology in large-scale farms: Over 4.3 million jobs and US$ 195 billion in business opportunities can come from precision-agriculture technologies by 2030. With 40 per cent improvements in yields expected, investments could yield returns of over 10 per cent.
- Retail: The equivalent of one garbage truck of textiles is landfilled or burned every second, meaning US$ 500 billion is lost every year as a result of discarded clothing. Using more renewable inputs and reusing, refurbishing and recycling clothes could lead to US$ 130 billion in savings and prevent 148 million tonnes of textile waste by 2030.
- Fishing: It takes five times the effort to catch the same amount of fish now as it did in 1950. If the ‘business as usual’ approach continues, wild fish stocks will decline by 15 per cent. This will cost the industry US$ 83 billion, as boats will have to travel further and fish deeper. Sustainable ecosystem management is one way to tap into a US$ 40 billion opportunity for the maritime industry worldwide.
Infrastructure and the built-environment: About 40 per cent of global GDP comes from the environment we build – office buildings, homes and transport. Nature-positive solutions can create 117 million new jobs and US$ 3 trillion in additional revenue or cost savings by 2030. Here are some examples:
- Smart buildings: Retrofitting systems and installing more efficient technology in new builds can save US$ 825 billion by 2030. Switching to LEDs and substituting natural light alone could save over US$ 650 billion by 2030. Green roofs can save on energy costs, mitigate flood risk, reduce air pollution, and even produce food. The market for these could grow 12 per cent annually reaching US$ 15 billion by 2030.
- Smart sensors: Reducing municipal water leakage could save US$ 115 billion by 2030. Return on investments in water efficiency can be above 20 per cent.
- Waste management: With US$ 305 billion in additional revenue opportunities, the global waste management market could double in 10 years with the right investments in South Asia, East Asia and sub-Saharan Africa.
Energy and extractives: The energy we produce and what we extract accounts for almost a quarter of global GDP and 16 per cent of global employment. With energy demand growing, there is an opportunity to create 87 million jobs and US$ 3.5 trillion in business opportunities by 2030. Here are some examples:
- Mining and resource extraction: Improving resource recovery in extraction can save US$ 225 billion and reduce water usage by 75 per cent in the next decade. New technologies and more mechanisation could enhance material recovery rates by up to 50 per cent.
- Circular models in the automotive sector: Refurbishing and reusing some automotive parts, such as transmissions, retains more value and uses less energy than recycling. Some US$ 870 billion can be saved by recovering manufacturing costs by 2030.
- Renewables: Opportunities of US$ 650 billion and investment returns greater than 10 per cent are expected from renewable energy sources by 2030. Stimulus packages for solar and other commercialised renewables can generate millions of new jobs. Solar energy without subsidies matched fossil fuel costs in over 30 countries and were projected to be cheaper than coal in China and India by 2021.
- Doubling down on revenue streams: Land for renewable energy projects are three to 12 times the size of coal-powered ones. Some companies are developing high-rise photovoltaic power stations that can be combined with animal husbandry and ecotourism providing additional revenue streams on the same land plot.
Guide for Finance Ministers
A policy companion outlines how governments can complement and enable businesses to act. Finance ministers can combine six cross-cutting policy measures to put the right incentives in place as part of stimulus packages and create jobs without destroying nature. They include better measurement of economic performance beyond GDP, incentives for innovation, improved spatial planning and management of marine and terrestrial assets, the removal of subsidies that endanger long-term job stability, investment in reskilling, and increased financial support for natural solutions.
This companion report, written in collaboration with SYSTEMIQ is intended to help decision makers see nature as a form of capital and, if properly managed, the basis of society’s long-term well-being, resilience and prosperity.
