2 June 2026
The boards of UK businesses need to start treating the natural environment as a core strategic priority, according to new guidance from the Institute of Sustainability and Environmental Professionals and the Aldersgate Group.
Placing Nature on the Board Agenda supports efforts to incorporate nature into business strategy and warns that environmental degradation now poses material risks to business resilience, financial performance and long-term value creation.
The guide follows the release of The Boardroom Briefing on Nature, discussion paper and resources from the Department of Environment, Food and Rural Affairs’ (Defra), which urges UK businesses to unlock millions of pounds in saving and new growth opportunities by putting nature at the heart of boardroom decisions.
Placing Nature on the Board Agenda highlights how all businesses depend fundamentally on nature – from clean air and water to healthy soils and biodiversity – and putting nature on the board agenda was a financial, operational, regulatory and strategic imperative.
ISEP CEO, Sarah Mukherjee MBE, said: “Declining ecosystems globally are already undermining businesses by disrupting supply chains, destabilising operations, raising costs and impacting insurability.”
“This guide urges boards to lead from the top and start treating nature as financially material. This can transform decision-making within a business, sharpening how we understand physical risks, such as flooding and water scarcity, transitional risks like shifting policy, standards or market expectations and systemic risks that can cascade across sectors and geographies.
“Adopting a full value chain perspective enables businesses to identify opportunities to stabilise cash flows, protect margins and maintain access to capital. Boards that fail to recognise this are exposing themselves to significant financial and strategic risk.”
However, the guide also makes clear that this is not solely a risk narrative. It presents a compelling economic case for action, positioning nature as a driver of growth, innovation and competitive advantage. It can also help businesses increase efficiencies and reduce costs.
In the UK alone, nature-related businesses generated over £2 billion in revenue in 2024, while the global green economy is identified as the most dynamic growth sector after technology and projected to exceed $7 trillion by 2030. At the same time, biodiversity finance has surpassed $300 billion globally, signalling the potential for rapid market expansion.
Aldersgate Group Executive Director, Rachel Solomon Williams, said: “Embedding nature into governance is not just about mitigating downside risk – it is a growth story.”
“Businesses that act now will have first mover advantage and be better positioned to attract investment, win customers and lead in rapidly expanding global markets for nature-positive goods and services.”
The guide provides a practical framework to support boards in integrating environmental considerations into business strategy. It encourages organisations to:
1. Understand nature impacts and interdependencies
2. Develop a nature strategy and set credible and ambitious targets
3. Embed nature into operational delivery and supply chains
4. Developing nature skills and expertise across the organisation
5. Investing in nature and greening investments.
Drawing on extensive stakeholder engagement across sectors, the report reflects emerging best practice and aligns with emerging regulatory and disclosure expectations. It highlights the growing adoption of nature-related frameworks and the increasing importance of preparing for future standards.
The guide also warns that current investment patterns remain misaligned, with almost US$5 trillion in public subsidies going towards activities harmful to nature, with only $220 billion being aligned with conservation and sustainable use of biodiversity. Without corrective action, environmental degradation could reduce UK GDP by up to 6% over the next decade, rising to 12% under more severe scenarios.
“Businesses are operating in an increasingly volatile environment where sustainability sits alongside cyber and geopolitics as a core risk,” added Ms Mukherjee. “Ignoring nature is no longer an option – it is a direct threat to economic resilience and corporate performance.”
The guide concludes that placing nature on the board agenda is essential to futureproof business operations, strengthen resilience and unlock long-term value. It calls on companies across all sectors to act now, embedding environmental considerations into decision-making to safeguard both economic and societal prosperity.
SUEZ UK Chief External Affairs and Sustainability Officer, Dr Adam Read MBE, said: “Protecting the environment is the responsibility of every business in the UK, it’s intrinsic to a sustainable supply chain and a sustainable society.
“As a business that manages resources, protecting nature is fundamental to our operations, but at SUEZ we go further. By giving nature a seat in the boardroom, our commitment to preserving and restoring natural resources is embedded in decision making.”
WSP Nature Advisory Strategic Lead, Jenny Merriman, said: “Nature-related risks and opportunities are increasingly shaping how businesses create long-term value, so it’s right that boards should give this greater strategic focus.
“At WSP, we are supporting clients on how embedding nature into decision-making can strengthen resilience, support better investment choices and unlock new opportunities for growth. This guidance provides a timely and practical framework to help organisations integrate nature into governance and strategy in a way that is both commercially and environmentally meaningful.”
