Why investors suddenly care about saving the environment

Here’s a big number: $44 trillion. 

That’s how much of the world’s total economic output is dependent on animals and ecosystems, according to the World Economic Forum. Insects pollinate commercial crops, coral reefs protect coastal buildings, wetlands purify water, and all of those services — and more — help fuel economic growth. 

If the economy is embedded in nature, then the global decline of wildlife and ecosystems is a risk for companies and investors alike. If insects vanish from farmland, say, farmers might have to pay to import pollinators or produce less, which hurts their bottom lines. That’s one reason why WEF ranks “biodiversity loss” as the third most severe risk to the economy over the next decade, after failure to act on climate change and extreme weather. 

“The risk of continued biodiversity loss is profound,” Sarah Kapnick, a scientist and strategist at the banking giant JP Morgan, wrote in May, “not just for nature but for financial stability.”