A new report from the Green Finance Institute (GFI) and WWF warns that continued degradation of the UK’s natural environment is undermining business performance and threatening economic growth.
The report, Business Investment in Nature: Supporting UK Economic Resilience and Growth, highlights that water scarcity, flooding, soil degradation and resource shortages are already driving up operational costs, threatening asset viability and disrupting key sectors such as housing, energy, agriculture and tourism.
Research cited in the report, carried out with the University of Oxford, University of Reading, UNEP-WCMC and the National Institute for Economic and Social Research, estimates that unchecked nature loss could shrink UK GDP by 4.7% by 2030, outweighing gains from current growth initiatives.
At the same time, the report stresses that investing in nature offers significant economic opportunities.
Businesses are already adopting regenerative agriculture, water efficiency and circular technologies to reduce environmental impact while improving competitiveness.
More than 40 case studies are highlighted, showing financial returns and resilience benefits across multiple sectors.
To unlock greater investment, the report calls for the creation of Nature-Positive Transition Pathways (NPPs) – national plans co-designed by government and industry to provide clear guidance for sectors to align with environmental targets.
So far, 28 major businesses including Aviva, NatWest, Barclays, Sainsbury’s and Balfour Beatty have signed a statement supporting the development of NPPs.
Environment Secretary Steve Reed said: “Thriving nature is the foundation of everything this government wants to achieve. We are working with industry leaders to drive private investment, including through the development of Nature Positive Pathways. These will enable UK businesses to harness the economic opportunities that come from restoring and protecting our natural environment to deliver strong and sustained economic growth, which is this Government’s number one mission.”
Examples in the report include the risk of water stress reducing dependable thermal power capacity by 50%, potentially costing an additional £20-450 million annually and soil degradation costing up to £1.4 billion per year.
Businesses such as Wates Group and Severn Trent are already implementing biodiversity, flood protection and water management projects to improve resilience.
The report concludes that scaling private investment into nature is critical to protecting the environment and securing economic growth.
