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Physical: Biodiversity & ecosystem loss

As the natural world continues to degrade, biodiversity and ecosystem loss is becoming a major driver of physical risk—undermining the very systems businesses rely on for resources, resilience, and stability. These losses have far-reaching consequences for supply chains, asset performance, and financial viability.

The decline of biodiversity impacts essential ecosystem services such as pollination, water purification, soil fertility, and disease regulation. For sectors like agriculture, forestry, food, and pharmaceuticals, these services are foundational. Their loss translates into declining yields, increasing input costs, and heightened operational unpredictability.

Meanwhile, the degradation of ecosystems—forests, wetlands, coral reefs, and grasslands—weakens natural buffers against extreme weather events, accelerates land degradation, and increases exposure to water scarcity and natural disasters. This can lead to physical damage, resource shortages, and long-term land value loss.

Additionally, reputational and regulatory risks grow as consumers, investors, and governments push for stronger biodiversity commitments. Businesses operating in or sourcing from high-impact ecosystems face greater scrutiny and potential restrictions.

NatureAlpha’s Geoverse 2.0 empowers organisations to assess biodiversity and ecosystem riskat asset level, using high-resolution geospatial and ecological data. This enables proactive risk mitigation and helps align investments with global biodiversity targets and a truly sustainable future.

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NatureAlpha Team

April 11, 2025

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