From Risk and Resource Dependency to Resilience
The Confederation of Swedish Enterprise has produced a new report to deepen understanding of the links between businesses’ dependence on nature, the risks arising from changing natural conditions and the need for greater resilience.
All businesses depend on nature and the services it provides, directly or indirectly. For a long time, companies have built their operations on the assumption of relatively predictable environmental and climate conditions. This stability has also underpinned global supply and value chains.
These conditions are deteriorating. More frequent storms, droughts and floods can significantly affect businesses by making raw materials less accessible, disrupting production and supply chains, and obstructing the transport of goods. Such disruptions can occur anywhere in the world and affect companies’ ability to deliver products and services.
These risks increase business vulnerability, affecting long-term growth and financial returns. Growing and remaining competitive is becoming more challenging.
Around 75 per cent of European companies depend directly or indirectly on nature and its services. More than half of global GDP is directly linked to nature. If nature and its services weaken or collapse, the consequences extend beyond nature itself, affecting the ability of the economy and society to function.
Against this background, nature, biodiversity and ecosystems are receiving increasing attention in international analyses and risk assessments. From a risk management perspective, the source of a risk matters less than its potential impact, whether it originates in financial markets, supply chains or natural systems. Previously viewed as a stand-alone environmental issue, nature loss is increasingly recognised as a business risk affecting resilience and future competitiveness. This calls for a shift from reactive risk management to a more proactive, strategic approach: identifying solutions that reduce vulnerability, diversify risk and strengthen value chains, while supporting innovation, competitiveness and long-term value creation.
From Risk and Resource Dependency to Resilience.pdf
