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Most large organisations now acknowledge that nature loss presents strategic risk. Biodiversity is increasingly discussed alongside climate, supply chain resilience, and regulatory exposure.
Yet inside many companies, investment still lags behind ambition.
For sustainability leaders, the challenge is rarely intent. It is translation - moving from pilot projects and reporting exercises to sustained, enterprise-level investment.
Capital allocation decisions are made in the language of financial exposure, risk management, operational resilience, and long-term value creation. Unless nature is framed in those terms, it struggles to compete.
In our white paper, Unlocking Long-Term Budgets for the Nature Positive Transition, we outline a five-step framework designed to help sustainability teams build a structured, financially credible case for nature. Below is an overview of that approach.
Step 1: Identify Your Specific Dependencies and Impacts on Nature
The starting point is clarity.
To secure long-term budgets, sustainability teams need to move beyond general commitments and identify where ecosystems are directly connected to business performance.
This typically involves examining:
- Dependencies on ecosystem services such as water, soil health, pollination, and flood protection
- Impacts across land use, resource extraction, pollution, and sourcing practices
- Exposure within upstream supply chains, where nature-related risk is often concentrated
For many organisations, this exercise highlights operational dependencies that were previously considered external. It can also reveal data gaps — for example, limited visibility into sourcing regions or supplier practices — which themselves signal potential exposure.
A clear mapping of dependencies and impacts provides the foundation for a financial discussion. It allows sustainability leaders to respond confidently to questions about materiality and relevance.
Once these dependencies are clear, the conversation shifts naturally from mapping exposure to quantifying its implications.
Step 2: Assess and Quantify Risks and Opportunities
With dependencies and impacts identified, the next step is to assess the associated risks and opportunities in financial terms.
Nature-related risks generally fall into two broad categories:
- Physical risks, such as water scarcity, soil degradation, flooding, or wildfire
- Transition risks, including regulatory change, litigation, shifting consumer expectations, or reputational exposure
For these risks to be taken seriously within capital allocation processes, they need to be evaluated based on:
- Likelihood
- Magnitude of financial impact
Exhibit: Approach to Likelihood and Magnitude Calculations
This may involve estimating potential effects on operating costs, input prices, revenue continuity, or asset values.
Scenario analysis can be particularly useful for medium- and long-term risks. For example:
- What would sustained soil degradation mean for raw material costs over five to ten years?
- How would tightening regulation affect sourcing practices?
- How resilient are key sites to water stress or extreme weather?
This analysis often reveals opportunity alongside risk — including efficiency gains, supply chain stability, access to premium markets, and enhanced long-term resilience.
Once you have prioritised which risks are most relevant to your organisation, the next step is to think about risk mitigation.
Step 3: Scope Initial Nature Initiatives
With priority risks identified, the focus shifts to action.
The objective is not to create a broad list of sustainability initiatives, but to develop a targeted portfolio that addresses the most material exposures.
Common categories include:
- Regenerative agriculture and soil restoration
- Ecosystem restoration projects
- Sustainable sourcing and supply chain management
Given competing demands on capital and operational capacity, prioritisation is essential.
Each proposed initiative should clearly articulate:
- Required investment (capital and operating)
- Quantified benefits through increased revenue or cost savings
- Expected return on investment
- Alignment with strategic priorities
A phased approach, combining near-term actions with longer-term investments, can help balance ambition with feasibility.
In the whitepaper, we outline a practical prioritisation framework designed to support structured decision-making and credible budget requests.
Step 4: Link Nature to Climate and Other Strategic Goals
Nature initiatives are often more successful when positioned within existing strategic priorities rather than presented as standalone programmes.
There are clear connections between nature and:
- Climate mitigation and adaptation
- Supply chain resilience
- Broader strategic alignment
For example, restoring natural ecosystems can support both biodiversity goals and climate targets. Sustainable sourcing can reduce regulatory exposure while strengthening brand positioning. Nature-based solutions can complement engineered approaches to climate adaptation.
In many organisations, budgets are structured by function. Integrating nature into existing climate, risk, or operational frameworks can reduce internal friction and improve alignment.
The white paper explores how to frame nature initiatives as complementary to — rather than competing with — other strategic investments.
Step 5: Communicate Clearly to Secure Internal Buy-In
A well-developed business case requires thoughtful engagement across the organisation.
Early alignment with finance, risk, and strategy teams can help refine assumptions and strengthen credibility before formal proposals are presented.
Sustained investment typically depends on:
- Executive sponsorship
- Integration into enterprise risk management processes
- Cross-functional ownership across procurement, operations, and finance
- Clear KPIs and accountability structures
Embedding nature within existing governance frameworks helps ensure that investment decisions are not one-off approvals but part of ongoing business planning.
The final section of the white paper examines practical approaches to institutionalising nature within financial and strategic processes.
Moving from Pilots to Enterprise-Level Investment
As regulatory expectations evolve and investor scrutiny increases, nature-related risk is becoming more visible within mainstream financial analysis.
For sustainability leaders, the challenge is to convert that external momentum into structured internal investment.
This requires:
- Clear mapping of dependencies and impacts
- Credible financial translation of risk and opportunity
- Disciplined prioritisation of initiatives
- Strategic integration with existing business goals
- Governance structures that support long-term implementation
The five-step framework outlined above provides a practical pathway to move from aspiration to approved, sustained investment.
For a deeper exploration of the methodologies, financial translation approaches, and governance mechanisms behind this framework, download the full white paper: Unlocking Long-Term Budgets for the Nature Positive Transition.