I've been pondering this question since my early days as a researcher: Why do companies, even those that derive substantial benefits from nature, still treat nature as a liability?
It seems paradoxical that businesses heavily reliant on natural resources and ecosystems often view environmental conservation as a burden rather than an asset. These companies depend on the wealth of resources that nature provides—clean water, raw materials, and a stable climate—to sustain their operations. Despite this reliance, many corporations continue to prioritize short-term profits over long-term sustainability, leading to practices that harm the environment.
One reason for this perspective is the economic framework within which businesses operate. Traditional accounting and financial models frequently overlook the intrinsic value of natural capital and ecosystem services. Instead, they focus on immediate financial gains, neglecting the long-term costs associated with environmental degradation. This short-sightedness can result in overlooking the benefits of investing in sustainable practices, which can enhance resource availability and reduce risks associated with environmental damage.
Furthermore, regulatory environments and market pressures often do not incentivize sustainable practices sufficiently. Companies may find it cheaper to exploit natural resources without accounting for the environmental costs, leading to practices that deplete and degrade these resources over time. Additionally, there is often a lack of robust policies that enforce environmental protection, allowing companies to externalize the environmental costs of their operations.
"Why are we still considering nature a cost instead of an asset?" 🌿📊
Big Bets Fellow Felipe Villela champions the inclusion of natural capital on corporate balance sheets. By doing so, companies can begin to see nature as a wealth rather than a liability.
Watch our latest episode of #RFBreakthrough, ‘Shaking Up Systems with Big Bets’, here: https://lnkd.in/eajePm4c
#BigBets #ClimateAction
Conservation biological control of coffee pests and regenerative agriculture FORBES - Top 100 mulheres do Agro Comitê de assessoramento de Agronomia do CNPq Conselho consultivo do Consórcio Cerrado das Águas
1moI hope the companies do not take longer to recognize the nature value