Biodiversity Restoration Programs: Why Finance Them?
The rapid decline in global wildlife populations underscores an urgent call to action. Biodiversity loss and climate change pose significant risks to all sectors—both directly and indirectly. If left unaddressed, these crises could lead to a staggering $23 trillion in global economic losses over the next 80 years (Climate Action 100+).
According to the World Wildlife Fund (WWF)’s 2024 Living Planet Report, monitored wildlife populations have declined by approximately 73% over the last 50 years. This dramatic drop reflects severe ecosystem degradation, making targeted biodiversity restoration essential—not only for environmental recovery but also for achieving Sustainable Development Goals (SDGs).
Restoration efforts must go beyond ecological concerns alone. The International Union for the Conservation of Nature (IUCN) emphasizes that effective biodiversity restoration must integrate economic and social dimensions. Successful regeneration should support local livelihoods, uphold indigenous rights, and actively involve communities. Conservation of nature isn’t just about planting trees—it also involves protecting ecosystems and empowering the people who rely on them.
The Kunming-Montreal Global Biodiversity Framework (GBF) has set an ambitious target of restoring 30% of degraded ecosystems by 2030. According to the WWF, food production is a primary driver of habitat loss, occupying 40% of the world’s habitable land; hence, transitioning to sustainable agriculture and regenerative practices is critical to halting and reversing biodiversity decline.
Interdependence of Biodiversity and Climate Change
Biodiversity loss and climate change are inextricably linked. Healthy ecosystems rely on stable environmental conditions, making the reduction of Greenhouse Gas (GHG) emissions a foundational step toward meaningful biodiversity recovery. To effectively address biodiversity loss, there is a need to tackle the two largest emission drivers, namely the energy and food sectors (WWF & Zohner et al., 2023).
The energy sector, one of the biggest global emitters, must accelerate its transition to renewable energy sources such as solar, wind, and hydropower. Moving away from fossil fuels not only cuts emissions but also reduces environmental damage caused by extraction, land degradation, and pollution. Additionally, investing in sustainable infrastructure can enhance ecosystem resilience and reduce ecological strain.
Likewise, the food industry must embrace more sustainable agricultural and land-use practices, including reducing deforestation, soil erosion, and water contamination—impacts closely tied to industrial farming and livestock production. Promoting regenerative agriculture, cutting food waste, and shifting toward plant-based diets are crucial strategies for lowering emissions while restoring ecosystem health.
All industries that rely on ecosystem services, including agriculture, forestry, fisheries, construction, textiles, and even finance can be affected by biodiversity-related risks. The World Economic Forum estimates that over half of the global GDP (approximately $44 trillion) is moderately or highly dependent on nature and its services. This means that biodiversity loss poses material threats to supply chains, operations, and long-term business continuity.
Read more: Biodiversity Loss: An Investor Concern
In addition to operational and financial risks, companies involved in or investing in activities that harm biodiversity also face growing reputational and regulatory risks. Consumers, investors, and regulators are increasingly scrutinizing corporate impacts on nature. For example, financial institutions linked to deforestation or habitat destruction may face public backlash, divestment campaigns, or exclusion from Environmental, Social, and Governance (ESG) indices. According to the CDP, over $4 trillion worth of assets are already being managed with nature-related disclosures in mind, signaling that nature risks are quickly becoming investment risks.
As global frameworks such as the Taskforce on Nature-related Financial Disclosures (TNFD) gain traction, companies that fail to account for their biodiversity impacts may find themselves legally exposed, financially penalized, or left behind in the transition to a nature-positive economy.
Failing to manage the interconnected risks of climate change and biodiversity loss can leave institutions and economies increasingly vulnerable. A comprehensive, nature-positive approach is essential to securing a livable planet (FfB Foundation, Unlocking the Biodiversity-Climate Nexus).

Business Case for Biodiversity Restoration
Forward-thinking companies recognize that biodiversity loss threatens not just ecosystems but also social and economic stability. Industries across all sectors and regions are increasingly investing in regenerative programs to mitigate this risk. Restoring degraded environments is no longer optional, but it has become a necessity for preventing further environmental, social, and economic consequences.
By prioritizing renewable energy, sustainable food systems, and nature-based solutions, businesses and governments can help create a balanced relationship between human activities and the natural world. Investing in biodiversity restoration is not just an environmental responsibility, it is an economic and societal imperative.
Restoration Program Cases
Givaudan has implemented a range of programs to support habitat restoration and is committed to sourcing 100% of its materials and services responsibly by 2030. Through its Natural Climate Solutions initiatives, the company focuses on restoring ecosystems by developing nature-based projects within its supply chains, working closely with producing communities.
For example, in the production of patchouli oil, Givaudan upgraded its distillation stills to significantly reduce the need for firewood—an important step toward preserving habitats, as the harvesting of firewood from forests is a major driver for deforestation. Under a similar initiative in Mohéli, a part of the Comoros Islands, the company not only upgraded its distillation equipment for ylang-ylang production but also launched reforestation programs, including planting trees in and around Mohéli National Park, helping preserve the region’s natural resources and biodiversity.
Engie is a signatory of Act4Nature International and Enterprises Engagées pour la Nature (Companies Committed to Nature) and contributes to programs restoring ecological corridors, pest management, and control of invasive species. In addition, the company has set an ambitious target of achieving Net Zero Carbon emissions by 2045, driven by a significant expansion of its renewable energy capacity

Financial Institutions and Nature-based Solutions
Nature-based solutions are actions that focus on restoring and protecting natural ecosystems to address environmental, social, and economic challenges, benefiting a wide range of stakeholders—including communities, businesses, and financial institutions. Although it is recognized that biodiversity loss can become a major risk factor within the next 10 years, only 17% of investments in initiatives, such as the United Nations Environment Programme, are derived from the private sector (UNEP, 2025). According to the Natural Capital Coalition (2018), finance companies can take several measures to support sustainability, including increasing the issuance of bonds for green infrastructure projects, driving demand for funds that invest in environmentally responsible companies, and developing new revenue streams from emerging environmental markets and products (Natural Capital Coalition, 2018).
HSBC Case
HSBC has committed to alliances such as the TNFD and the Glasgow Financial Alliance for Net Zero (GFANZ), but furthermore, to nature-positive initiatives including the development of a blueprint for market-based bonds to protect and restore mangroves. The blueprint aims to create scalable financial instruments—such as blue bonds—that can attract private capital to fund mangrove conservation and restoration projects, particularly in climate-vulnerable regions.
Additionally, in 2020, HSBC initiated numerous projects globally, focused on Nature-based Solutions (NbS). These projects cover a range of interventions that use natural systems to address societal challenges—such as carbon sequestration, water security, and disaster risk reduction.
Examples include:
- Wetland restoration to mitigate flooding and improve water quality
- Reforestation and afforestation to enhance carbon sinks and restore wildlife habitats
- Urban greening to improve air quality, regulate temperatures, and increase community wellbeing
- Agroecological projects that promote regenerative agriculture and sustainable land use
Conclusion
By investing in holistic restoration initiatives, businesses, and industries can play a pivotal role in safeguarding biodiversity, ensuring environmental resilience, and securing long-term economic stability.
Sources:
- Wildlife populations decreased 73% since 1970, WWF report says – The Washington Post
- Regenerative Programme — UEBT
- 2024 Living Planet Report
- Comoros islands: Natural ylang ylang resources preservation | Givaudan Foundation
- Nature-based Solutions – United Nations Environment – Finance Initiative
- Mo, L., Zohner, C.M., Reich, P.B. et al. Integrated global assessment of the natural forest carbon potential. Nature 624, 92–101 (2023).
- Natural Capital Coalition, Natural Capital Finance Alliance, VBDO 2018. “Connecting Finance and Natural Capital: A Supplement to the Natural Capital Protocol.” (Online) Available at:
- The Business Case | Climate Action 100+
- FfB-Foundation-Unlocking-the-biodiversity-climate-nexus.pdf
- HSBC to fund Australia-first project with The Nature Conservancy Australia as part of US$100 million climate partnership – About HSBC | HSBC Australia
Contributor

Juliana Frizzo
Senior Sustainability Analyst