Making the Business Case for Nature: Lessons from Five Leading Companies

As world leaders gather at COP17 in Yerevan to discuss progress towards global biodiversity commitments, attention is turning to how businesses can contribute to delivering them. An important part of that conversation is the commercial case for investing in nature.

New research from Natcap and Earth Capital Nexus at the Grantham Research Institute on Climate Change and the Environment and Global School of Sustainability within the London School of Economics and Political Science explores this question through five in-depth case studies of United Utilities, Mars, Natura, Coca-Cola Europacific Partners and Bosch.

Drawing on interviews with practitioners, Understanding Nature's ROI: Case Studies of Nature-related Opportunities in Action examines how these companies have identified, financed and implemented nature-related investments, the commercial value they can create, and what other businesses can learn from their experiences.

Nature-related Investment Can Deliver Significant Commercial Value

Nature-related investments can create commercial value in several ways: protecting revenue, reducing operational costs, strengthening supply chains, improving resource efficiency and unlocking new sources of finance.

For example, at United Utilities, a catchment restoration project costing less than £10 million is helping strengthen the resilience of water supply infrastructure associated with a substantial proportion of the company's £1.8 billion in annual regional revenue. The investment aims to reduce the risk of costly disruption from extreme weather, demonstrating how nature restoration can form part of a company's core infrastructure strategy.

The five companies featured in the research have invested in activities ranging from watershed conservation and regenerative agriculture to circular product and packaging design, illustrating the breadth of commercial opportunities associated with nature.

Turning Opportunities into Investment Decisions

Despite growing recognition of the potential benefits, building the business case for nature-related investment remains challenging. Some interventions deliver measurable cost savings, while others protect against future disruption or strengthen long-term resilience, with returns that are harder to quantify. Securing investment can also require businesses to navigate competing priorities, build internal support and identify appropriate financing mechanisms.

Explore the Full Research

The paper brings together five detailed case studies and a practical framework to help businesses identify, evaluate and build the case for nature-related investment.

Download Understanding Nature's ROI to explore the findings and learn how leading companies are making the business case for investing in nature.