Business Risks Incurred if Biodiversity is Extinct

In a survey conducted by Responsible Investor, global investors revealed various business risks if nature and biodiversity are damaged or even extinct.

According to 77% of investors, damage or extinction of these two will reduce the productivity of natural systems. Natural systems refer to natural ecosystems that can support life.

The loss of nature and biodiversity, for 71% of investors, will create risks in the supply chain. Furthermore, 32% of respondents stated that damage or extinction of these two creates business risks related to litigation/regulation.

Here are the complete results of global investor views regarding business risks if nature and biodiversity are damaged or extinct:

• Reduced productivity of natural systems: 77%
• Supply chain risks: 71%
• Litigation/regulatory risks: 32%
• Reputational risks: 29%
• Funding risks: 25%
• Reduced quotas (for natural resource extraction)/reduced access to land and resources: 17%
• Changes in consumer preferences: 11%
• Sustainability requirements and labels: 8%
• Other: 7%
• None of the above: 1%

Overall, the respondents' responses in this survey have depicted positive progress, according to Responsible Investor. However, at the same time, it indicates issues related to data, lack of representation at the board level, and the need for regulation.

This survey was conducted in May and June 2025, involving 100 respondents from asset managers and owners spread across Europe, North America, Australia-New Zealand, Asia, and Latin America.

Each respondent manages or owns assets ranging from less than US$1 billion to more than US$500 billion.

(Read: Biodiversity Mapping in Indonesian ICCAs as of May 2025)