Green paper biodiversity crisis

Why biodiversity is of crucial importance

The biodiversity crisis is one of the greatest, but often underestimated, threats of our time While climate change has long been part of the public debate, the loss of biodiversity often remains in the shadows However, the economic and social impact of species extinction and the destruction of ecosystems is enormous Intact ecosystems provide us with a wide range of services that we use every day, often without even realizing it: from pollinating our food crops to clean water and regulating the climate

Why biodiversity?
Intact biodiversity is crucial for the provision of so-called “ecosystem services” These include

Pollination of plants Essential for agriculture

Clean water and air: Forests and wetlands filter pollutants and ensure we have access to vital resources

Climate regulation: Healthy ecosystems bind CO₂ and contribute to climate stabilization

Nutrient cycles: Biodiversity ensures the renewal of soils and thus sustainable agriculture

Since 1970, the world's population has grown by 112%, which has dramatically increased the demand for natural resources Meat production has increased by 244% during this period, while wildlife populations have declined by an alarming 69% The South American region has been particularly hard hit with a decline of 94%

The economic consequences of species loss

The effects of the biodiversity crisis are not only serious in ecological terms, but also economically. Much of the damage occurs gradually and is therefore difficult to measure, but it adds up to enormous costs for the global economy. Nature offers mankind valuable services, often free of charge and seemingly unlimited - but these resources are finite.

Businesses that depend on natural resources, such as agriculture, forestry, fisheries and tourism, are already feeling the effects. But biodiversity loss is not only affecting these industries: Sectors such as the pharmaceutical and healthcare industries are also under threat, as the genetic diversity of organisms is crucial for the development of new medicines. A decline in biodiversity therefore also means a decline in innovation opportunities and potential cures.

The close link between biodiversity and climate change

Tackling the biodiversity crisis is closely linked to global efforts to mitigate climate change. Achieving targets such as net zero emissions and a net increase in biodiversity (nature positivity) by 2050 must go hand in hand in order to tackle both crises simultaneously.

While measures to combat climate change can often be implemented globally and linearly (e.g. through the use of renewable energies), the protection of biodiversity often requires local and differentiated approaches. Every habitat is unique and requires individual measures to preserve the ecological balance.

The role of the financial industry: biodiversity as “the next big issue”

Banks and other financial actors play a central role in the fight against biodiversity loss. They have the power to stop biodiversity loss by investing in sustainable projects and integrating biodiversity risks into lending decisions. However, this is only possible if they actively address the risks and opportunities of the biodiversity crisis.

Biodiversity risks can be divided into two categories:

Physical risks: These arise from the direct loss of species and ecosystems, which has a negative impact on companies and their creditworthiness. For example, the decline in pollinators can lead to a drop in harvests, which in turn can affect the creditworthiness of companies.