Climate change, biodiversity loss, pollution and the overuse of natural resources are all part of the same story. Human activity is pushing natural systems beyond what they can handle. At the same time, we rely on nature for almost everything: food, clean water, stable economies and our overall wellbeing. Despite this dependence, biodiversity is declining at an alarming rate worldwide.
What is often overlooked is how much the climate system itself depends on healthy ecosystems. Forests, soils, peatlands, oceans and freshwater systems absorb carbon, regulate water cycles and help soften the impacts of extreme weather. But they only do this when ecosystems are intact, diverse and resilient. Peatlands, wetlands and coastal ecosystems, for example, can store carbon for centuries – yet they lose this ability quickly when degraded. Carbon sinks are not guaranteed. They rely on biodiversity. That is why halting biodiversity loss is not an optional addon to climate action; it is a prerequisite for solving the climate crisis.
Science is already showing how urgent this connection is. In 2025, the world crossed the first climate tipping point driven by global warming, linked to the mass bleaching and collapse of coral reefs. At the same time, scientists are increasingly concerned about a potential slowdown of the Atlantic Meridional Overturning Circulation (AMOC), a key driver of global climate patterns. These signals remind us how closely climate stability is tied to the health of natural systems.
Biodiversity Loss Is a Global Risk – and a Competitiveness Issue
Biodiversity loss is not just an environmental concern. It is a systemic risk. The World Economic Forum ranks it among the most severe global risks of the coming decade. But climate change and nature loss are already affecting food security and supply chains today, and over time their impacts will be increasingly felt across almost every sector of the economy. More than half of global GDP depends, to a significant degree, on nature.
Protecting biodiversity is therefore not only about environmental responsibility. It is also about risk management, security of supply and long-term competitiveness – all at the heart of the EU’s economic agenda.
Addressing the climate crisis requires a long-term and joined-up approach. Rapid emission reductions are essential, but they are not enough on their own. We need solutions that reduce emissions and stop nature from degrading further. This means better policies, new business models and innovations, and incentives that make sustainable choices easier. Governments, businesses, cities, communities and individuals all have a role to play.
What Cannot Be Measured Cannot Be Managed
A simple idea guides much of our work at the Finnish Innovation Fund Sitra: what cannot be measured cannot be managed. That is why we have worked to develop methods for calculating biodiversity footprints – metrics that show how much pressure different activities, products or organisations place on nature.
Together with researchers from the University of Jyväskylä, Sitra was the first in the world to calculate the average biodiversity footprint of citizens. We have also been actively promoting biodiversity footprint accounting for businesses and the tools needed to support it. Comparable, science-based indicators help organisations focus action where it matters most and better manage nature-related risks and impacts, as long as the necessary data is available. The newly released report by the Hot or Cool Institute, is yet another step in our quest for measuring – and most importantly managing – biodiversity loss.
The circular economy is another key part of the solution. By rethinking how food, energy and materials are produced and consumed, we can reduce pressure on land use, restore space for nature, cut emissions and strengthen carbon sinks at the same time. Circular solutions show that climate action and biodiversity protection do not compete – they reinforce each other.
Sitra has been an international pioneer in circular economy work for nearly a decade. Our approach is based on the idea that the root causes of the sustainability crisis – climate change and biodiversity loss – can be addressed by transforming economic structures and the way we produce and consume. Sitra will continue to promote circular economy solutions, as they not only deliver environmental benefits but also support economic growth and productivity.
If we are serious about solving the climate crisis, we can no longer afford to delay action on biodiversity loss. This is not a task for governments or institutions alone – it is a responsibility we all share. A healthy and biodiverse natural world is not the result of climate policy. It is the foundation every climate solution depends on.
Discover more about the Nature-Positive Lifestyles: Unlocking Opportunities for People and Planet report here.
