In a new report, the researchers explain how water scarcity, pollution, flooding, soil degradation and resource scarcity are already disrupting key sectors such as housing, energy, agriculture, manufacturing and tourism.
These risks are driving up operational costs, threatening asset viability and undermining regional economic resilience, with nature degradation potentially leading to a 4.7% reduction in UK GDP by 2030 – outweighing gains from current growth initiatives.
However, the report also highlights how nature represents a “major growth opportunity”, with many businesses already seeing financial returns and a competitive advantage by targeted action, such as regenerative agriculture and water efficiency.
With the government set to publish its revised Environmental Improvement Plan later this year, the researchers are calling for the development of Nature-Positive Transition Pathways (NPPs) to provide guidance on how different sectors are expected to align with environmental targets.
“The empirical evidence is clear that business investment in nature is a powerful engine for economic growth,” said GFI associate director, Charlie Dixon. “UK businesses are keen to contribute to the delivery of the UK’s nature targets, but need better guidance and coordination in order to do so.”
The report explains how over six million properties across the UK are currently at high risk of flooding, and that this is expected to rise to eight million by 2050, while deteriorating water quality is having a serious impact on food production, tourism, hospitality and manufacturing.
At the same time, intensive agriculture practices are degrading the quality of soils, potentially costing the economy up to £1.4bn per year, with the resulting reliance on artificial fertilisers contributing to dramatic food price inflation.
The report also stresses that its GDP forecasts could underestimate the actual costs, with GFI CEO Dr Rhian-Mari Thomas OBE last year telling Transform that the economic impact could be much more severe.
“If we continue on the pathway that we are on with nature depletion, and you throw in an antimicrobial resistance-type epidemic, which we are increasingly at risk of given the way we are treating our soils and agriculture, unfortunately, we could see 12% wiped off UK GDP in the early 2030s,” she said. “The financial crash of 2008 wiped off about 5%.”
The GFI and WWF have been working to convene businesses and trade organisations, 28 of which have signed a statement supporting the development of NPPs in the UK to scale up investment, achieve nature targets, and strengthen economic growth prospects.
WWF economist Vassilis Gkoumas said: “The statement of support demonstrates that many businesses want greater clarity around how they can contribute to the transition. Now we need more to come forward and play their part, and the UK government to recognise NPPs as a key part of their economic strategy.”
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Chris Seekings is the Deputy Editor of ISEP’s Transform magazine, which is published biomonthly for ISEP members. Chris’s role involves writing sustainability-related news, features and interviews, as well as helping to plan and manage the magazine’s other day-to-day activities.
