Trekking path in the mountains during beautiful summer sunset. Sun shining through the colorful clouds.

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Just as the economic risks of nature loss are coming into sharper focus, companies and their investors are facing mixed signals from governments and standard-setting organizations over what they will be required to disclose related to these risks.

In the U.S., sustainability reporting through the Securities and Exchange Commission is in limbo while the European Union has exempted an estimated 80% of companies from its Corporate Sustainability Reporting Directive and Corporate Sustainability Due Diligence Directive. Yet, other jurisdictions – from Australia to Brazil, Canada, and Mexico – have adopted international mandatory disclosure standards that plan to include specific nature-related disclosures later this year.

However, companies taking a wait-and-see approach to how mandatory nature disclosure plays out is not in financial market’s best interest. Providing less information around nature-related risks runs directly counter to what investors want and what markets need to run smoothly.

Why investors care about nature reporting

Consider that U.S. farmers had to pay over $400 million for pollination services – an industry valued at $25 billion annually – in 2024, following a steady decline in bee populations largely from habitat destruction and pollution. Or that mining companies, which regularly extract water from lakes, rivers, and other reservoirs to support their operations, have experienced double-digit percent decreases in productivity as a result of depleted water sources in areas prone to drought.

Investors have been one of the key driving forces behind this corporate transparency around the financial implications of nature loss. They want to be able to evaluate not just what a company’s risks are from damaging nature, but the steps being taken to manage those risks and capitalize on new business opportunities. This is so they can make informed investment decisions and preserve the long-term value of their portfolios.

When done right, corporate disclosures provide a clear view into a company’s financial planning, strategy development, capital allocation, and governance across its operations and supply chain.

If companies are falling short, investors can engage with companies to encourage them to make more progress on material issues, including protecting and restoring forests, wetlands, and other critical ecosystems that they--and the global economy--depends on.

The world’s largest initiative led by investors, who are engaging 100 major companies in eight industries, has developed a benchmark of company action that offers a practical framework for ensuring plans are successful in addressing nature and biodiversity loss.

As we mark World Biodiversity Day today, the benchmark highlights three key areas where investors want to see companies report progress, along with examples from leading companies already implementing these steps.

Publish a comprehensive strategy

Companies should outline complete plans that include the specific actions they are taking to achieve business goals, share regular updates on how those actions are paying off or not, and connect these plans with their strategies for managing climate risks. The last step is especially crucial since safeguarding biodiversity and stabilizing planet warming go hand-in-hand. Approaching them in isolation will not set up companies for success. Some companies may choose to prioritize planning where their risks of environmental harm and rewards in acting are the greatest, such as water pollution for mining corporations or habitat destruction for agricultural businesses.

Unilever’s sustainability strategy is guided by a goal of making progress on four priority topics – climate, nature, plastics, and livelihoods – that link to each other. This strategy is underpinned by 15 near- and medium-term goals, including spurring regenerative agriculture practices on 1 million hectares of farmland by 2030. The consumer goods giant is well on its way to accomplishing that goal, with dozens of projects across 17 countries covering 254,000 hectares as of 2025.

Prioritize rights-based approaches

From forced displacement to contaminating food and water supplies, industrial activities have outsized impacts on the Indigenous Peoples and local communities that live and work alongside them. This is why companies need dedicated policies to ensure proper conduct and oversight. When companies lose sight of these issues, it can lead to lawsuits, financial repercussions, and pauses in operations. Yet building positive relationships can mitigate risk and make planning more efficient.

Multinational food processor Wilmar International has a policy for all its agricultural suppliers that includes a pledge to respect and recognize the rights of Indigenous Peoples and local communities, as well as a commitment for suppliers to give those group’s free, prior, and informed consent of plans that may affect them. If policy violations occur, the company has an established process for dealing with incidents.

Dedicate financial resources

No plan will be effective without adequate funding behind it. Investors are looking for companies to line up fiscal policies with their nature goals and report past and future spending on supportive efforts across their business and supply chain.

Dow Inc. shares how much the company annually spends on its environmental projects, reporting that around $580 million was allocated toward those projects in a recent year. The chemicals manufacturer also explicitly states paying for efforts targeting water quality, wastewater pollution, and freshwater use, among other biodiversity priorities.

While these companies represent leading best practices, we will get more insight into how corporate planning is moving forward when the investor-led initiative releases its next benchmark assessment later this year.

With single industries of the global economy facing potential losses of hundreds of billions of dollars a year from escalating nature loss, companies have a huge incentive to go beyond regulatory compliance and execute plans that are comprehensive and well-resourced. Doing so will cut material risks to their bottom lines and to their investors, while strengthening the communities and the health of the planet.