Being Nature Positive Is Smart Business. How SMEs Can Take Action Now
With over half of our global gross domestic profit dependent on nature, small and medium sized enterprises that have nature positive business plans are better positioned for resilience, investment, and long-term growth.
400 million SMEs account for around 90% of all companies globally, generating 70% of employment, and contributing up to 70% of global GDP. Just over half of global GDP, 58 trillion dollars, is moderately or highly dependent on nature. Nature isn’t just a distant ocean or remote rainforest, it is the cotton in our clothes, the lithium in our batteries, the water cooling our data centres and the land where our offices stand.
For SMEs working toward being nature positive, success depends on having a clear purpose, setting measurable goals, and staying flexible as strategies evolve. This starts with understanding how your operations, supply chains and investments affect nature, then taking action to reduce harm and support restoration.
What Being Nature Positive Means For Businesses
A nature positive business “not only minimizes its negative impact on nature but actively contributes to the restoration and enhancement of ecosystems and biodiversity,” according to Cambridge Institute for Sustainability Leadership. Globally there is a goal is to put nature visibly on the path to recovery by 2030.
Successfully developing and implementing a nature positive business strategy isn’t a one size fits all approach. It is also “not a checklist, nor a one and done approach,” Liza Murphy, senior sustainability advisor tells me. Murphy was formerly global head of conservation assurance at IUCN, managing director at FSC Global Development and vice president at JP Morgan. “The challenges we collectively face are complex, so it is not surprising the best responses to those challenges are also complex.”
Benefits Of A Nature Positive Approach
There are economic benefits to taking action. 395 million jobs could be created by 2030 through a nature positive economy that transforms food, infrastructure, and energy systems. It could also “provide both an effective way to tackle the climate crisis and an annual business value of over $10 trillion,” says Roberto Marques, CEO of Natura Group.
For individual businesses, the benefits are wide-ranging, from cost savings and operational efficiency to resilience and risk reduction. Companies with nature positive strategies are better prepared for supply chain disruptions and climate-related shocks. It helps stakeholder trust and reputational value too, as investors, customers and employees increasingly favour businesses with authentic environmental commitments. Recent research shows rural SMEs, those based outside city limits, may be more susceptible to financial risk posed by climate hazards.
It is also crucial that businesses account for the resources they take from nature. “Today businesses treat nature as if it is free and unlimited. It is time for boards, under their director’s duties, to dismiss current fake financial profits that take nature for granted,” Earth on Board founder, Philippe Joubert told me. “If a company is not accounting for nature, the dividends and bonuses it distributes are based on counterfeit profits that do not really exist. Instead, businesses should pay for services rendered and repair the damage caused.”
How To Take Action On Being Nature Positive
SMEs that aren’t involved in natural resource extraction may assume that taking action to protect biodiversity isn’t a priority for their business. However, “the first step is recognition that we each, individuals and organizations, have a direct line to nature,” says Liza Murphy.
The “ACT-D” framework, stands for assess, commit, transform and disclose. From assessing dependencies and impacts on nature to understanding where natural resources are used in operations and supply chain, doing an initial audit is where to start. From here, organisations can commit to science-based targets and timelines for reducing nature-related harm through global frameworks such as the Science Based Targets Network or the Taskforce on Nature-related Financial Disclosures. Industry-specific frameworks are becoming available too.
Work then must begin to shift from an extractive business model to a regenerative one. This could include transforming operational practices, redesigning supply chains and reducing physical footprint. Transparent disclosure of performance is key for credibility, stakeholder trust, and industry benchmarking.
Additional ways to take action include financially investing in nature restoration, and fostering a culture of responsibility and innovation by engaging and empowering employees to be part of the transition. US-retailer Patagonia and UK-based personal care company Faith In Nature have gone further by giving nature a stake or role in their organisations.
Some of this may feel overwhelming to a smaller business, but proportionality is key. “Prioritise what is most critical for your business. If you have limited resources and your company has more impact on water than on climate change more generally, focus on water, rather than trying to do it all,” shares Akanksha Khatri, Head of Nature Action Agenda at World Economic Forum. Liza Murphy agrees, saying “the scale of nature-led action from an SME should be in line with its size and reach. Expectations are not the same as for large corporates.”
Pitfalls to Avoid On The Nature Positive Journey
In a world of short attention spans and snappy headlines, it’s tempting to make claims about your plans and work, but credibility is critical. Claims without rigorous evidence, or relying on offsetting alone, can backfire, undermining trust and leading to accusations of greenwashing. “Credibility is so important, so storytelling with facts and figures is key,” Liza Murphy shares. “While we cannot legislate perfection, and surely don’t want to try, we should be describing what we are doing, why we made certain choices and challenges have we encountered and what is changing as a result of those outcomes.”
That credibility comes from “how accurate and verifiable your claims are,” Murphy confirms. “We need to apply the same kind of rigor we put into things like child safety in child seats, vaccine safety, educational standards. Ask your suppliers to explain how they make choices about what they sell you.” Leaning on suppliers for help is a great way for SMEs to not just reduce their own impact but create a ripple effect. “Ask your suppliers (if you have them) how they are tackling issues like water, waste, pollution, and deforestation,” confirms Akanksha Khatri. “The more that suppliers hear their customers are interested in these issues, the more likely they are to take action themselves.”
Whilst beneficial, being truly nature positive goes beyond actions such as planting trees or switching to vegetarian menus. It demands systemic change, a shift in the way decisions are made, rethinking value chains, transforming operations, and engaging in collective action across industries and regions.
Nature is a way to open conversations about climate and sustainability too. “In choosing to talk about nature, brands won’t retreat from difficult conversations. Instead you’ll step into the most timeless and universal one of all: humanities natural connection to nature,” says Forbes contributor, Solitaire Townsend.
Legislation such as the EU’s new Nature Restoration Law, the growing momentum around disclosure frameworks, and increasing investor expectations all signal that the nature positive transition is central to future-fit SMEs and businesses. As Liza Murphy reminds us, “we each… have a direct line to nature,” and with that comes both responsibility and opportunity. Philippe Joubert challenges boards to stop “distributing counterfeit dividends” and acting as if resources and free and unlimited. For SMEs, that means embedding nature into strategy, embracing transparency, and committing to continuous improvement.
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