Biodiversity and health: a strategic imperative for business resilience

Insights for decision-makers in public and private organizations

We still too often view biodiversity as one environmental issue among many, when it is also a matter of health, economic resilience, health security and social cohesion. Companies, investors and insurers are increasingly questioning their dependence on natural capital. These dependencies go beyond resources and supply chains: they also affect population health, quality of life within communities and, ultimately, the human capital on which business performance depends.

Biodiversity and health: a vital alliance

Biodiversity is not only an environmental issue. It is essential infrastructure for human health, food security, pandemic prevention and medical innovation. It directly supports water quality, climate stability and the effective functioning of food systems. With 35% of global agricultural production dependent on animal pollination, biodiversity is a strategic asset for securing yields, food nutritional quality and supply chain resilience.

For many companies, particularly in the agrifood and life sciences sectors, biodiversity has therefore become a key factor for innovation, business continuity and economic resilience.

Nature is also a powerful driver of medical and pharmaceutical innovation. Many major therapeutic breakthroughs, including antibiotics, immunosuppressants, anticancer treatments and antimalarial drugs, originate from living organisms. Recent research on the microbiome, biomimicry and extremophile organisms is opening new avenues to address chronic diseases and health challenges linked to climate change.

Beyond these contributions, healthy ecosystems represent critical natural capital for limiting the spread of infectious diseases, strengthening community resilience and mitigating the effects of extreme climate events.

As a vast reservoir of molecules, biological mechanisms and still largely untapped solutions, biodiversity loss weakens both current and future protective mechanisms while increasing health, operational and financial risks. For businesses, and particularly for insurers exposed to systemic risks, biodiversity is becoming a major lever for anticipating and managing long-term risks.

Biodiversity loss: growing health and economic costs

Environmental pollution is becoming a major business risk. Microplastics, mercury, pharmaceutical residues and chemical pollutants affect both ecosystems and human health. These forms of degradation contribute to rising rates of chronic diseases, endocrine disruption, neurological disorders and cardiovascular conditions.

Companies, particularly in the life sciences, insurance, agrifood and industrial sectors, are exposed through rising healthcare costs, increasing regulatory pressure and reputational risks.

The erosion of biodiversity facilitates the emergence of new health threats. The destruction of natural habitats, wildlife trade and biological invasions increase the risks of zoonotic diseases and pandemics. Invasive species are involved in 60% of recorded extinctions and are also a significant factor in the emergence of infectious diseases.

Health risks linked to biodiversity must now be considered systemic risks, comparable to climate-related risks

The economic cost of inaction is escalating rapidly. Biological invasions generated more than $423 billion in global costs in 2019, with exponential growth over recent decades. Antimicrobial resistance is already associated with millions of deaths worldwide and represents a major burden on healthcare systems.

Agricultural losses linked to pests, soil degradation and pollinator decline are weakening economic sectors. For businesses, these costs translate into higher claims, operational disruptions and increasing market volatility.

Anticipate, innovate, finance: three levers for business action

At the organizational level, action levers are numerous.

Integrating biodiversity at the heart of corporate strategy is particularly relevant for sectors that are highly dependent on natural resources or exposed to physical risks: agrifood, agriculture, cosmetics, pharmaceuticals, chemicals, textiles, luxury goods, energy, water, infrastructure, real estate, tourism, as well as financial services and insurance.

Companies will need to assess both their dependence on ecosystem services and their impacts on ecosystems. Biodiversity must be integrated into governance processes, risk management frameworks and capital allocation decisions. Developing biodiversity-health indicators will provide stronger guidance for investment decisions through a strategic management approach.

Construction, urban planning and infrastructure stakeholders can also leverage nature-based solutions to strengthen climate adaptation and territorial resilience.

Nature-inspired solutions offer significant growth and innovation opportunities for businesses. Whether through biomimicry, microbial medicine, biotechnology, regenerative agriculture or RNA technologies applied to sustainable agriculture, these approaches help reconcile economic performance, environmental impact reduction and stronger resilience of production systems. They open new opportunities across sectors including pharmaceuticals, healthcare, biotechnology, agrifood, agriculture, chemicals, materials, manufacturing, water treatment and environmental technologies.

Finally, restoring nature requires an unprecedented mobilization of capital. Companies can rely on instruments such as biodiversity credits, carbon financing mechanisms, impact investing and dedicated insurance products to support this transition. Achieving the necessary scale will also require stronger partnerships among public institutions, businesses, NGOs and the scientific community to pool expertise, resources and action capabilities.

In this context, banks, asset managers, institutional investors and insurers occupy a strategic position in directing capital flows toward nature-based solutions and integrating biodiversity considerations into investment and financing decisions. This evolution will be critical for sectors that are most dependent on ecosystems or have significant impacts on them, including energy, infrastructure, transport, agriculture, agrifood, raw materials and real estate. For these stakeholders, integrating biodiversity-related risks is progressively becoming a key component of risk management, operational resilience and long-term value creation.