The Rising Importance of Nature in Business Strategy

Embracing Nature: A New Paradigm for Corporate Success

The Dawn of Nature-Focused Business: From Niche to Necessity

Not long ago, the notion of establishing a business solely dedicated to ecological strategies might have seemed unconventional. However, the global pandemic served as a catalyst, prompting a widespread re-evaluation of our connection with the natural world. This introspection quickly elevated the importance of such initiatives, moving them from the periphery to the forefront of corporate agendas.

Biodiversify's Journey: Pioneering Nature Integration in Industry

The establishment of Biodiversify by Dr. Samuel Sinclair and Dr. Michael Burgass in 2019, with crucial backing from the French luxury conglomerate Kering, exemplifies this evolving landscape. Post-pandemic, a significant 'nature boom' unfolded, leading to a surge in service providers, consultants, and technological innovators. These entities emerged to address the previously underestimated reciprocal relationship between business activities and the natural environment. Simultaneously, regulatory frameworks in the EU rapidly progressed, the Taskforce on Nature-Related Financial Disclosures (TNFD) was launched in 2021 to guide companies in assessing their ecological risks, and the Science-based Targets Initiative (SBTN) introduced its nature-specific guidelines in 2023. Leading corporations responded by recruiting specialists in nature-related roles.

Fashion's Intertwined Destiny with Nature: Unpacking Risks and Dependencies

The fashion sector faces extensive ecological challenges, ranging from cotton crops devastated by aridity and leather supply chains marred by deforestation, to production centers grappling with water scarcity and retail networks vulnerable to inundation. Accurately quantifying such a complex and pervasive system as nature is a formidable task, underscoring the vital role of scientific frameworks.

Navigating the Shifting Tides: Challenges and Resilience in Nature Initiatives

However, progress is rarely straightforward. A global move towards conservative political ideologies and a renewed focus on European economic competitiveness in 2024 led to a reduction in the scope or weakening of several major environmental regulations. Consequently, numerous nature-focused consultancies either closed down or reduced staff, with several prominent fashion groups following suit by scaling back their sustainability divisions and objectives. Sinclair observed a significant retreat in compliance consulting, where the primary goal was merely to produce a TNFD report for public display. Yet, he noted a steady increase in the market for companies genuinely committed to addressing environmental concerns beyond mere compliance.

The Resurgence of Nature: A Non-Partisan Priority

Nature is once again gaining prominence on the corporate agenda. Discussions around nature featured prominently at New York Climate Week in September and the Textile Exchange conference. Hannah Phang, co-founder of The Now Work, a sustainability consultancy, attributes this renewed focus to several factors. Many companies' climate functions, primarily centered on decarbonization, have matured into efficient systems with clear pathways for advancement and quantifiable achievements. This allows sustainability teams to broaden their focus to areas like water management, biodiversity, and social impact. Concurrently, climate issues are becoming increasingly politicized, with some entities retracting public commitments due to concerns about political repercussions or the belief that these issues no longer fall within key regulatory frameworks.

Nature as a Unifying Force: Beyond Politics and Immediate Crises

In contrast, nature is perceived as a universally accepted issue. Following a summer marked by continuous heatwaves, droughts, and devastating wildfires, its importance has become more undeniable than ever. Vogue Business reached out to pioneering companies in the field of nature-centric business to gather insights on best practices and crucial considerations for forming a successful nature team.

Empowering Nature Leaders: The Pillars of Success

Establishing any new team comes with its unique set of challenges, demanding careful consideration of infrastructure, reporting structures, and incentives to foster success. Tony Goldner, CEO of the Taskforce on Nature-Related Financial Disclosures (TNFD), emphasizes the critical role of executive support. He states that a senior-level sponsor—be it the chief sustainability officer, CFO, or CEO—is essential for internal advocacy, along with adequate funding for consultants, data, and initiatives.

Accountability and Communication: Key to Effective Nature Teams

For nature teams, accountability and communication are paramount, according to Phang. She questions whether responsibility for nature targets rests solely with the sustainability team or is integrated into other departments' key performance indicators. Furthermore, establishing a liaison between the nature lead and the finance department is crucial for translating the financial implications of nature strategies into terms understandable by various stakeholders, thereby securing budget and ensuring the longevity of these initiatives.

Kering's Integrated Approach: A Model for Nature Stewardship

At Kering, the nature team operates within the sustainable programs division, alongside circularity and the Material Innovation Lab (MIL). This team also collaborates closely with sustainable performance, which involves direct engagement with garment manufacturers and material producers, and with sustainable finance, focusing on risk mitigation. Rachel Kolbe Semhoun, Kering's head of sustainable sourcing and nature initiatives, notes that the nature team doesn't need to be large, as diversified teams adopt a transdisciplinary approach to tackle complex challenges.

The Nuance of Terminology: “Nature” vs. “Biodiversity” in Corporate Titles

A debated point is whether the term 'nature' should be explicitly included in a nature lead's job title. Kolbe Semhoun, prior to joining Kering, spent a decade as the chief sustainability officer for a large agricultural company, developing its team and new metrics for positive nature impacts. For her, having 'nature' in her title at Kering, signifying a sole focus on conservation and regeneration, was a decisive factor. However, beyond Kering, she acknowledges the double-edged nature of the term, as some misconstrue 'nature' as merely birds and butterflies, leading them to underestimate its strategic importance. Similarly, Jennie Granström, H&M Group's impact lead for biodiversity and ecosystems, finds 'biodiversity' confusing, despite its scientific precision. She observes that components like deforestation and land use are more readily understood and prioritized than the broader concept of ecosystems.

Beyond the Title: The Holistic Integration of Nature Strategies

Ultimately, the specific title holds less importance than how the role is perceived and integrated throughout the organization, states Kari Stoever, head of impact at Canopy. While subject matter experts are invaluable, the most critical aspect is adopting a comprehensive view of impact across all planetary boundaries to make informed trade-offs.

The Expansive Mandate of Nature Leadership: Beyond Compliance

Many companies initially misunderstand the full scope of a nature lead's role, according to Sinclair. They might hire someone for compliance, but the true task is to evaluate the company's nature-related risks. Neglecting this expert's insights can have dire consequences. Thus, a key part of the role involves defining the job in real-time and securing leadership's support. Once a business begins to map its nature risks and dependencies, the centrality of nature to business resilience becomes evident, demanding a long-term, holistic strategy that few companies are prepared for. True integration would necessitate a re-evaluation of historical growth models and extractive practices. Stoever points out that while maximizing shareholder returns remains a dominant worldview, visionary leaders are needed to embrace a more dynamic approach to growth amidst uncertainty.

Translating Nature: Bridging Activism and Business Objectives

Often, a nature lead's motivations may conflict with those of their employer, creating friction in fulfilling their expanded role. However, progress occurs when nature leads operate as interpreters for nature, rather than activists, says Phang. This year, sustainability teams have improved at aligning their language with business objectives. Nature offers a prime opportunity to hone this skill, allowing discussions to range from supply chain risks and business resilience for CEOs to the impact on material quality for product teams, tailoring the message to different stakeholders.

Integrating Nature Across the Enterprise: Collaboration and Local Solutions

Nature's vastness presents both advantages and disadvantages. While TNFD typically coordinates with sustainability professionals, these teams draw data and insights from across their organizations, Goldner notes. He highlights that one of TNFD's most surprising findings is nature's ability to foster interdepartmental collaboration, an area where sustainability teams have historically struggled. H&M's Granström agrees, stating her role is deeply interconnected with all areas of sustainability, where investments benefit biodiversity and nature. Nature teams often confront profound, existential questions. The challenge lies in finding a path forward that doesn't intimidate the rest of the business. Kolbe Semhoun observes that a global perspective on sustainability can be overwhelming, leading to perceived complexity and conflict. By focusing on concrete, localized solutions, various stakeholders can convene, agree on questions, and find answers. Nature defies easy categorization or simple metrics of success. It is inherently site-specific and demands an ecosystemic approach that balances trade-offs and anticipates unintended consequences. Businesses must consider this when establishing nature teams and evaluating their impact. Kolbe Semhoun asserts that embracing nature's inherent complexity, rather than trying to oversimplify it, is crucial for businesses.