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Transitional: Supply chains, systems & processes

As the global economy undergoes a transition toward sustainability, companies face increasing pressure to re-evaluate the supply chains, systems, and processes that underpin their operations. These areas present significant transitional risks, particularly for businesses whose models are built on resource-intensive, linear, or ecologically harmful practices.

Nature-related supply chain risks are being amplified by new regulations, stakeholder expectations, and market shifts. Investors and regulators now demand greater transparency on biodiversity impacts and ecosystem dependencies across the entire value chain—not just direct operations. Companies that lack visibility into upstream and downstream impacts may be exposed to non-compliance, operational disruption, and reputational damage.

Processes that are energy- or water-intensive, reliant on raw materials from deforestation-linked regions, or lacking in environmental governance are now under scrutiny. Adapting systems to meet sustainability standards may involve costly transformation, but failure to act could result in loss of market access or financing.

NatureAlpha’s Geoverse 2.0 provides the tools to assess nature-related risk across the full value chain. By combining geospatial asset data with real-time biodiversity and ecosystem metrics, organisations can identify vulnerable nodes, assess supplier risk, and re-engineer processes to be more resilient, transparent, and aligned with nature-positive goals.

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NatureAlpha Team
April 11, 2025

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Transitional: Investor divestment & strategy revision

As nature-related risk becomes a core consideration in sustainable finance, investor divestment is emerging as a significant transitional risk for companies failing to align with biodiversity and ecosystem protection goals.

Transitional: Litigation and liability risk

As environmental regulations tighten and public scrutiny intensifies, litigation and liability risk is becoming a critical transitional issue for businesses and financial institutions.

Transitional: Supply chains, systems & processes

As the global economy undergoes a transition toward sustainability, companies face increasing pressure to re-evaluate the supply chains, systems, and processes that underpin their operations.

Transitional: Policy change and activism

As awareness of biodiversity loss and environmental degradation rises, policy change and activism are rapidly reshaping the operating environment for businesses and investors.

Transitional: Natural resource availability

As the global economy shifts toward sustainability, natural resource availability is becoming a central transitional risk. Businesses that rely heavily on finite or declining resources are increasingly exposed.

Transitional: Regulatory and compliance changes

As global momentum builds around sustainability and biodiversity protection, regulatory and compliance changes are emerging as a key transitional risk for businesses and financial institutions.

Physical: Pandemics and social impact

The interconnectedness of human health, biodiversity, and business has never been more evident. Pandemics and their cascading social impacts present significant physical risks to businesses.

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.

Physical: Water risk and rising sea levels

As global temperatures rise, physical water risks and sea level rise are emerging as some of the most material threats to infrastructure, economies, and investment portfolios.

Physical: Droughts, deforestation and landslides

As climate change accelerates and ecosystems are degraded, physical risks such as droughts, deforestation, and landslides are becoming more severe and financially consequential.