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A new report, published by UK food system charity The Food Foundation, is calling on the food industry to address biodiversity loss – warning of higher economic costs in the long term if this crisis is ignored.

The report brings together evidence showing that our food system and supply chain are highly vulnerable to the impacts of biodiversity loss, despite directly contributing to it.

For example, one study shows that a 30% decline in UK pollinator populations over ten years would cost nearly £200 million a year in lost crop yields. Issues such as deforestation and industrial farming of livestock are driving water and air pollution and biodiversity loss, The Food Foundation emphasises.

The report highlights that the agricultural sector is almost entirely dependent on natural capital for its continued viability, so will suffer if farming methods and consumption patterns are not adapted to preserve and restore the natural environment.

It states that transitioning to more plant-rich diets in the UK could make a significant difference, reducing by 58% the number of species projected to become extinct over the next 100 years as a result of what we are eating.

PwC research shows that over half of the world’s GDP is moderately or highly dependent on nature – yet biodiversity is declining at an unprecedented rate, with extinction rates 100 to 1,000 times above natural levels and rising.

In the UK alone, nature loss is projected to reduce GDP growth by between 6-12% in the 2030s. This would be a decline greater than that caused by the 2008 financial crisis or the Covid-19 pandemic.

The Food Foundation and the Investor Coalition for Food Policy – which comprise 35 member organisations – make several recommendations in the report, calling on businesses and investors to help safeguard nature through their corporate stewardship and financing activities.

The organisations call for:

• Businesses and investors to support ‘nature-friendly’ actions such as shifting to portfolios centred around plant-rich diets, and investing in sustainable, regenerative farming practices.
  

• Companies to ensure board-level expertise in, and oversight of, sustainability and climate matters including nature and biodiversity loss. Currently, only 2% of businesses have board-level expertise on these issues, according to the World Benchmarking Alliance.
  

• Businesses to develop a clear idea of the steps they need to take to improve traceability and manage their nature-related risks and impacts, and how long those steps will take.
  

• Investors to reframe their understanding of nature ‘not as an externality but as an asset to be valued, accounted for and invested in’. Short-term investor returns should be considered against the importance of nature and biodiversity, the organisations stress.

Sarah Buszard, responsible investor engagement lead, said: “Since all of us are dependent on food production and consumption for our very survival, by extension the viability and prosperity of the whole economy – and not just investors in food businesses – is dependent on efficient and sustainable management of natural capital”.

“How we move our food system to one that is healthier and more sustainable is something business leaders, investors and policymakers alike should be thinking about and taking urgent action on.”

Antony Yousefian, general partner at The First Thirty Ventures, warned of how biodiversity loss impacts ecosystems and contributes to declining health, commenting: “A teaspoon of healthy soil hosts more microorganisms than entire human population, yet intensive farming has depleted ecosystems and the quality of our food”.

“Investors should actively engage with companies to support sustainable agriculture and diets, delivering nutrient-rich, pesticide-free foods for resilient, nature- and health-positive financial returns.”