Before revision: Natural risks or nature risks become material for businesses in the following three ways: When businesses depend directly on nature for operations, supply chain performance, real estate asset values, physical security and business continuity When the direct and indirect impacts of business activities on nature loss can trigger negative consequences, such as losing customers or entire markets, legal action and regulatory changes that affect financial performance When nature loss causes disruption to society and the markets within which businesses operate, which can manifest as both physical and market risks The loss of nature can also contribute to systemic geopolitical risk because nature’s assets and services, such as clean air, plentiful fresh water, fertile soils, a stable climate, provide vital public goods on which human societies rely for their functioning.
After revision: "" "" ""Natural risks or nature risks become material for businesses in the following three ways: When businesses depend directly on nature for operations, supply chain performance, real estate asset values, physical security and business continuity When the direct and indirect impacts of business activities on nature loss can trigger negative consequences, such as losing customers or entire markets, legal action and regulatory changes that affect financial performance When nature loss causes disruption to society and the markets within which businesses operate, which can manifest as both physical and market risks The loss of nature can also contribute to systemic geopolitical risk because nature’s assets and services, such as clean air, plentiful fresh water, fertile soils, a stable climate, provide vital public goods on which human societies rely for their functioning.