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In a world where climate and nature crises are reshaping economies and ecosystems, the case for embedding nature and climate into core business strategy has never been more urgent. Yet, it remains one of the most complex challenges for organisations worldwide. As CEO of Earth Blox, I aim to bring clarity to why prioritising environmental impacts and dependencies is critical to future-proofing any organisation.
The unbreakable link between climate and nature
In environmental disclosures, climate and nature are often addressed as separate topics, a convention largely driven by regulatory frameworks. But let’s be clear: climate and nature are part of a single, interconnected planetary system. Climate enables life; nature sustains it. Any change in one has profound consequences for the other, from rising global temperatures to widespread disruptions in ecosystems.
The evidence is undeniable. Recent data from NASA and NOAA show that Earth’s surface temperature has increased significantly, with some regions averaging 7 degrees Celsius warmer than 70 years ago. For companies, this warming is more than a distant issue — it has direct implications for supply chains, resource availability, and operational risks.
Entering uncharted territory: what the future holds
Our current path leads us into uncharted territory. Using advanced climate models, we can predict potential outcomes based on various emissions scenarios, illustrating a future that could include both catastrophic warming and severe biodiversity loss. While we can forecast regional temperature and precipitation changes, tipping points — critical thresholds that could drive abrupt shifts in Earth’s systems — remain unpredictable.
A helpful analogy is to compare climate change to a boiling pot of water. We can estimate when the water will boil, but we cannot predict where each bubble will emerge. In climate terms, this means we can foresee warming trends but not precisely when or where extreme events will strike. And the stakes are high: projections suggest that exceeding 1.5 degrees Celsius warming may lead to ecosystem collapses, triggering potential mass extinction events across the biosphere (IPCC, 2021).
Biodiversity loss is more than a statistic
Biodiversity loss has far-reaching consequences beyond ecological aesthetics; it directly affects food security, human health, and global economies. The WWF’s 2022 Living Planet Report reveals an alarming 69% decline in wildlife populations between 1970 and 2018. In warmer scenarios, we risk losing up to 75% of species in certain areas — a loss that could disrupt everything from crop yields to the availability of natural resources.
These effects are real. Industries reliant on natural resources — whether through supply chains or physical assets — are especially vulnerable to biodiversity loss. When populations collapse, such as the Newfoundland cod stocks in the early 1990s, recovery is not guaranteed. The cod fishery has yet to rebound, underscoring the irreversible impact of crossing specific ecological thresholds (Our World in Data).
Economic and regulatory urgency
The financial implications are stark. The Institute and Faculty of Actuaries warn that failure to act on climate and nature could lead to a 50% reduction in global GDP by 2090. As a result, there is an increasing push for corporate accountability. Yet navigating this landscape can feel overwhelming as regulatory frameworks continue to evolve and vary across jurisdictions.
For those uncertain about where to begin, global frameworks such as the Paris Agreement or the Global Biodiversity Framework offer essential starting points. Additionally, the TNFD’s LEAP framework provides companies with a step-by-step approach for assessing environmental materiality, simplifying the process while ensuring compliance with emerging regulations such as the CSRD.
The path forward: leveraging technology for a sustainable future
The primary takeaway is clear: to future-proof your company, understanding both your impact on nature and nature’s impact on you is non-negotiable. Our climate is already in crisis, and supply chain disruptions and operational risks are not distant possibilities — they are a present reality.
Fortunately, solutions are available. Tools like Earth Blox provide the spatial insights organisations need to assess environmental dependencies across facilities and assets in real time. In the face of overwhelming data, it is critical to take the first step — no matter how small — towards sustainable practices. The journey may be challenging, but as business leaders, we must ensure our companies contribute to a resilient, nature-positive future.
Dr. Genevieve Patenaude
Dr. Genevieve Patenaude is CEO and co-founder at Earth Blox. Previously an associate professor at the University of Edinburgh's School of Geosciences, she led international research projects on Earth Observation and big data, and was a contributing author to the Good Practice Guidance for Land Use, Land-Use Change and Forestry for the Intergovernmental Panel on Climate Change. Equipped with this experience, her mission is to enable positive action for the future of life on our shared planet through Earth Blox.