Key takeaways:

• Protecting nature and enhancing biodiversity could unlock $10 trillion in business opportunities annually and generate nearly 400 million jobs across industries.
• However, the ongoing decline in ecosystems is already costing the global economy more than $5 trillion annually in lost natural services, putting companies at significant risk.
• This context presents three main risks and opportunities for businesses.

What is Biodiversity and Why Does It Matter?

“Earth is now our only shareholder.”

With these words, Yvon Chouinard, founder of Patagonia, made a groundbreaking decision to give away 98% of the company’s stock to the Holdfast Collective, a nonprofit dedicated to addressing climate change, protecting biodiversity, and supporting communities. As a result, Patagonia’s profits are now channeled directly into supporting environmental causes.[1]

How much biodiversity matters is captured in these exact words and actions. As the collective diversity of life on Earth – including all species, ecosystems, and genetic diversity – it is essential for maintaining environmental balance, supporting food production, regulating climate, and sustaining economic activities. From forests to oceans, it provides services that are fundamental to human well-being and economic prosperity.[2]

Biodiversity in Focus at COP16.2

That is why it is also back at the top of the global agenda. Following a landmark session in Cali, Colombia, COP16 negotiations resumed in Rome this February to define a path to allocate $200 billion annually by 2030 to safeguard ecosystems [3] and to put 30% of the world’s lands and seas under protection by the same year. [4] Hosted at the Food and Agriculture Organization (FAO) headquarters, this conference underscored a critical message: protecting biodiversity is not just an environmental imperative, it is essential for economic stability and growth.

Why Biodiversity Matters for Businesses

According to the World Economic Forum, protecting nature and enhancing biodiversity could unlock $10 trillion in business opportunities annually and generate nearly 400 million jobs across industries such as construction, automotive, and textiles. [5] Additionally, ecosystem services – from carbon storage and water filtration to food production – are valued at over $150 trillion annually, more than double the world’s GDP. [6]

However, this potential will only be realized if we take urgent action. Without it, the ongoing decline in ecosystems is already costing the global economy more than $5 trillion annually in lost natural services, putting businesses at significant risk. [7]

The 3 Main Risks For Companies
One in five businesses faces significant risks from ecosystem collapse. [8]

• Regulatory & Investor Pressure
  Companies harming ecosystems may struggle to access capital as investors increasingly align with environmental regulations. [9] Many even take proactive steps to safeguard their assets from becoming obsolete due to evolving policies, such as the EU 2030 Biodiversity Strategy and frameworks established at COP 16.2.
• Supply Chain Challenges
  Many industries, including fashion and design, face significant risks due to their complex supply chains, which rely heavily on land for materials like cotton and water for dyeing and chemical processes. As natural environments degrade, they may experience financial setbacks, with supply chain disruptions impacting production and costs. [10]
• Reputation & Market Position
  Companies failing to address biodiversity concerns could lose consumer trust and market standing. A 2019 report by the Boston Consulting Group found that over a third of surveyed consumers switched brands due to sustainability concerns. [11] Also, media coverage highlighting industries’ irresponsible practices has been steadily increasing since 2014, further damaging their public image.[12]

And The 3 Main Opportunities 
Companies that make biodiversity a priority can unlock significant benefits.

• Cost Savings & Capital Access
  As mentioned in the previous chapter, investors are increasingly considering ESG performance in their decisions, and governments are likely to introduce more environmental support programs offering subsidies or incentives for more conscious practices. Additionally, businesses that optimize resource use – such as raw materials, energy, and water – can both lower their biodiversity footprint and achieve cost savings, creating a win-win situation for both the environment and their bottom line. [13]
• Innovation & Market Expansion
  Investing in more mindful supply chain practices that protect biodiversity can create new market opportunities across industries, including fashion and design. This can involve scaling up recycled materials production, using biodegradable alternatives to toxic chemicals, and shifting from “fast fashion” to “slow fashion”. A transformative approach includes reducing production volumes, encouraging clothing rental and resale, and adopting circular supply chains. This fosters a more responsible, resilient industry while responding to growing consumer demand for conscious products. [14]
• Consumer Loyalty & Growth
  Environmental consciousness is a growing consumer priority – 88% of respondents in a Boston Consulting Group survey expressed concern over biodiversity loss. [15] Brands with strong commitments to ecosystem protection and sustainability can enhance customer loyalty and revenue, especially in industries like fashion and design. This focus on more mindful practices also attracts top talent, helping companies retain skilled employees and strengthen their workforce.[16]

Some Fashion and Design Businesses Are Already Leading the Change

A growing number of industry players are starting to take action to mitigate their impact on biodiversity. According to a survey conducted by Textile Exchange – a global non-profit organization dedicated to promoting sustainable practices within the fashion, textile, and apparel industries – 80% are increasing their use of certified materials, 15% are mapping sourcing locations to biodiversity value and 8% already have a clear strategy in place. [17]

Kering, the French luxury group behind brands like Gucci and Balenciaga, has collaborated with the University of Cambridge Institute for Sustainability Leadership (CISL) to develop an 8-step blueprint. This framework helps companies assess their impact on nature, make informed decisions about their interactions with the environment, and craft strategic responses to climate and biodiversity challenges. [18] They have also backed the Climate Nature Fund, which aimed at generating €300 million to finance nature protection and restoration projects. [19]

Patagonia, Eileen Fisher and Burberry are working with farmers who use regenerative farming techniques to improve biodiversity and capture carbon, helping to reduce CO2 emissions. This approach is used to grow materials like hemp, flax, bamboo, and cotton, as well as raise livestock such as cattle, goats, and sheep.[20]

It’s Time to Act

COP16 should serve as a wake-up call for both public and private organizations. The transition toward a more mindful economy is not just a challenge but a chance for innovation and growth. By embedding biodiversity into corporate strategies, businesses can safeguard ecosystems, ensure long-term resilience, and contribute to a thriving planet.

If you want to know more about business opportunities and risks related to ecosystem protection in the fashion and design industry, don’t miss our next webinar!

[1] “Earth is now our only shareholder”, Patagonia, available at: https://www.patagonia.com/ownership/

[2] “What Is Biodiversity?”, American Museum of Natural History, available at: https://www.amnh.org/research/center-for-biodiversity-conservation/what-is-biodiversity

[3] “Noted to media: Issues under discussion for the COP 16 resumed sessions”, United Nations, available at: https://www.un.org/sustainabledevelopment/blog/2025/02/noted-to-media-issues-under-discussion-for-the-cop-16-resumed-sessions/

[4] “More than half of countries are ignoring biodiversity pledges – analysis”, The Guardian, available at: https://www.theguardian.com/environment/2025/feb/24/countries-biodiversity-pledges-rome-cop16-aoe

[5] “The business of protecting biodiversity – and why it’s your business”, World Economic Forum, available at: https://www.weforum.org/stories/2022/09/the-business-of-protecting-biodiversity-and-why-it-s-your-business/

[6] “The Biodiversity Crisis Is a Business Crisis”, BCG, available at: https://web-assets.bcg.com/fb/5e/74af5531468e9c1d4dd5c9fc0bd7/bcg-the-biodiversity-crisis-is-a-business-crisis-mar-2021-rr.pdf

[7] “The Biodiversity Crisis Is a Business Crisis”, BCG, available at: https://web-assets.bcg.com/fb/5e/74af5531468e9c1d4dd5c9fc0bd7/bcg-the-biodiversity-crisis-is-a-business-crisis-mar-2021-rr.pdf

[8] “Why biodiversity may be more important to your business than you realize”, EY, available at: https://www.ey.com/en_dk/insights/assurance/why-biodiversity-may-be-more-important-to-your-business-than-you-realize

[9] “Why biodiversity may be more important to your business than you realize”, EY, available at: https://www.ey.com/en_dk/insights/assurance/why-biodiversity-may-be-more-important-to-your-business-than-you-realize

[10] “Why It’s Time To Rethink Fashion’s Biodiversity Strategy”, Forbes, available at: https://www.forbes.com/sites/amynguyen/2023/05/14/why-its-time-to-rethink-fashions-biodiversity-strategy/

[11] “The Biodiversity Crisis Is a Business Crisis”, BCG, available at: https://web-assets.bcg.com/fb/5e/74af5531468e9c1d4dd5c9fc0bd7/bcg-the-biodiversity-crisis-is-a-business-crisis-mar-2021-rr.pdf

[12] “The Biodiversity Crisis Is a Business Crisis”, BCG, available at: https://web-assets.bcg.com/fb/5e/74af5531468e9c1d4dd5c9fc0bd7/bcg-the-biodiversity-crisis-is-a-business-crisis-mar-2021-rr.pdf

[13] The Biodiversity Crisis Is a Business Crisis”, BCG, available at: https://web-assets.bcg.com/fb/5e/74af5531468e9c1d4dd5c9fc0bd7/bcg-the-biodiversity-crisis-is-a-business-crisis-mar-2021-rr.pdf

[14] “Biodiversity Prioritisation in Textile, Apparel, and Fashion: a short Introduction”, Pisa Agricultural Economics, available at: https://page.agr.unipi.it/2023/02/27/biodiversity-in-textile-apparel-and-fashion/

[15] “The Biodiversity Crisis Is a Business Crisis”, BCG, available at: https://web-assets.bcg.com/fb/5e/74af5531468e9c1d4dd5c9fc0bd7/bcg-the-biodiversity-crisis-is-a-business-crisis-mar-2021-rr.pdf

[16] “The Biodiversity Crisis Is a Business Crisis”, BCG, available at: https://web-assets.bcg.com/fb/5e/74af5531468e9c1d4dd5c9fc0bd7/bcg-the-biodiversity-crisis-is-a-business-crisis-mar-2021-rr.pdf

[17] “Biodiversity Benchmark”, Textile Exchange, available at: https://textileexchange.org/news/biodiversity-benchmark/

[18] “8 steps to develop a biodiversity strategy: Kering and CISL publish a primer”, Kering, available at: https://www.kering.com/en/news/8-steps-to-develop-a-biodiversity-strategy-kering-and-cisl-publish-a-primer/

[19]  “Kering and L’OCCITANE Group join forces to finance nature protection at scale with the Climate Fund for Nature”, Kering, available at: https://www.kering.com/en/news/kering-and-l-occitane-group-join-forces-to-finance-nature-protection-at-scale-with-the-climate-fund-for-nature/

[20] “Nature in Freefall: How Fashion Contributes to Biodiversity Loss”, Fashion Revolution, available at: https://www.fashionrevolution.org/nature-in-freefall/#:~:text=Currently%20%2C%20farmers%20producing%20fibres%20used,to%20lower%20CO2%20levels