Nature-positive transition pathways ‘critical’ for private sector nature investment

Businesses are asking for government guidance in the form of nature-positive transition pathways (NPPs) to support their investments in nature protection and restoration, according to a WWF-GFI report.

The report, published by WWF and the Green Finance Institute (GFI) this week, calls on the UK government to participate in the co-development of NPPs with the private sector, in order to better support companies’ impact reduction efforts and scale up investment in nature-based solutions.

The two organisations aim to demonstrate that nature degradation has a negative impact on UK businesses and the economy: it is estimated that chronic nature and climate risk could reduce GDP by 4.7% this decade.

In addition, nature-related risks such as water scarcity, pollution, flooding, soil degradation, and resource scarcity are already disrupting key sectors such as housing, energy, agriculture, manufacturing, and tourism. These risks are driving up operational costs, threatening asset viability and undermining regional economic resilience.

Financial opportunities from nature investment

At the same time, more and more businesses are investing in nature recovery – the report cites over 40 examples of corporate action, such as regenerative agriculture, water efficiency and circular technologies. When they do, these companies yield financial returns and a competitive advantage – but NPPs would help them align their own initiatives and investment with national biodiversity goals.

Cressida Curtis, Group Sustainability Director at Wates Group, said: "Reversing the decline of nature is critical to ensure we all have food to eat, water to drink and fresh air to breathe. Science-based, representative, and robust NPPs will give individual businesses the confidence to play a meaningful role in this shift. The built environment has a huge impact on nature – both through construction sites and the supply chain, which extracts around half the world’s natural materials. That means that if we shift how we operate to adopt regenerative practices, we can make a huge positive difference.”

The report also identifies the most significant drivers of economic growth resulting from investment in nature: plentiful water supply, improved water quality, flood and storm protection, and resilient soil health.

Benefits of NPPs for the private sector

Nature-positive transition pathways (NPPs) are national plans that can help provide guidance on how different sectors are expected to align with and, deliver on, environmental and biodiversity targets.  

Over 28 businesses – including Aviva, Barclays, Fidelity International, the Wates Group and NatWest – have already signed a statement supporting the development of NPPs in the UK as a means to scale up investment.

Vassilis Gkoumas, Economist at WWF, said: “A real plan to save UK nature must bring the private sector with it. The evidence paper published today shows that the scale of the opportunity, and the statement of support demonstrates that many businesses want greater clarity around how they can contribute to the transition. Now we need more to come forward and play their part, and the UK government to recognise Nature-Positive Transition Pathways as a key part of their economic strategy”.