As we move into 2025, nature has transcended its traditional role as an environmental concern to become a strategic imperative for businesses. The foundation of the global economy is deeply intertwined with natural resources, making the preservation and enhancement of these assets crucial for corporate success. More than half of the world’s GDP depends on the health of our ecosystems, and the degradation of nature now ranks among the most significant economic risks globally.

The growing recognition of this interdependence has spurred many companies to develop comprehensive nature strategies aimed at safeguarding their supply chains, operations, and reputations. Climate-related disasters have cost the world $2 trillion over the past decade, while two-thirds of businesses face substantial water risks. Moreover, approximately 1.2 billion jobs—representing about 40% of the workforce—depend on ecosystem services provided by forests, oceans, and landscapes. Companies are not only mitigating risks but also unlocking new opportunities by adopting proactive approaches to nature. McKinsey's analysis highlights 11 high-potential value pools that could generate annual revenues between $9 trillion and $12 trillion by 2030.

Investors, consumers, and regulators are increasingly pressuring companies to prioritize nature alongside other sustainability goals. For instance, the FAIRR Initiative, representing $51 trillion in assets under management, ranked biodiversity as the second-most critical theme after climate change. At the UN Conference of the Parties to the Convention on Biological Diversity (CBD COP16), business participation doubled compared to the previous conference. Regulatory frameworks like the European Union’s Corporate Sustainability Reporting Directive (CSRD) will require transparency in reporting impacts on nature, further emphasizing the need for strategic alignment.

Despite its importance, integrating nature into business strategy remains challenging due to vague definitions, lack of standardized metrics, and misalignment with short-term priorities. To address this, this article presents ten tests to evaluate the effectiveness of a company’s nature strategy. These tests cover various aspects, from understanding operational dependencies on nature to aligning with market shifts and ensuring long-term resilience. By addressing these questions, companies can better position themselves to capture emerging opportunities while mitigating risks associated with environmental degradation.

Nature’s influence on business is inevitable, and the timing of its impact is no longer a question. Companies that proactively integrate nature into their core strategies will be better equipped to navigate the challenges and capitalize on the opportunities presented by this evolving landscape. Embracing a nature-positive approach is not just a moral obligation; it is a strategic necessity that promises long-term success and resilience in an increasingly uncertain world.