A new report from the Confederation of Swedish Enterprise highlights nature-related risks as a growing strategic issue for businesses. The background is clear: when nature's ecosystems change, the economic conditions for businesses, investments and entire supply chains are also affected.
When nature becomes a business risk
Businesses are highly dependent on natural resources and ecosystem services - from raw materials and water to stable landscapes and functioning infrastructure. As these systems change, new types of business risks emerge that companies increasingly need to understand and manage.
Changing water flows, flood risks, land use change or biodiversity loss can affect everything from production and supply to investments and long-term business development. Nature-related risks thus become not only an environmental issue, but also a matter of business strategy and risk management.
Natural risks always occur in one place
Businesses, investments and supply chains are linked to specific locations and natural risks also have a geographical dimension. It is therefore interesting to know where changes in nature have concrete consequences. Flood risk, water stress, ecosystem change or land use change have different impacts depending on where the business is located and how it is linked to the surrounding landscape.
This means that work on nature-related risks needs to rely heavily on site-based analysis and access to geographical data.
From overall ambitions to concrete analysis
For a long time, many organizations have dealt with nature and sustainability issues mainly at an overall strategic level. Companies have been able to formulate goals and policies, but have often lacked the tools to more concretely analyze how nature-related risks actually affect their own operations.
This is now changing rapidly. Frameworks and sustainability reporting increasingly require companies to identify their dependencies on nature, analyze their impact on ecosystems, and understand the risks that exist both in their own operations and in the supply chain.
It is no longer enough to say that nature is important. Organizations need to be able to show where risks are, how big they are and how they evolve over time.
Geodata makes risks visible
To show where risks are, how big they are and how they evolve over time, spatial analysis is key.
By combining different types of geographic data collected in the field, by aircraft or from satellites, it is possible to analyze how activities and assets are exposed to different natural hazards. This can include mapping flood risks, analyzing land-use changes, identifying proximity to protected areas, or monitoring the evolution of natural values in a landscape.
Such spatial analyses make it possible to link a company's activities to changes in nature in a more systematic way. This provides a better basis for decision-making on risk management, investments and sustainability reporting.
Data-driven understanding of nature's changes
At the same time, access to data is increasing rapidly. Data from Earth observation satellites, aircraft, drones and national geospatial data can be processed with advanced analytical methods to monitor changes in landscapes and ecosystems with much higher resolution and more frequent updates than before.
This opens up opportunities for businesses to work more data-driven with nature-related risks. By combining nature data with information on activities and supply chains, it is possible to create a more concrete picture of where risks exist and how they may develop over time. As nature issues move up the corporate agenda, the need for geographical analysis will therefore increase.
Nature-related risks are often discussed as a sustainability issue. In practice, it is as much a question of data, analysis and geographical understanding. To understand risks, it is not enough to know that they exist - you also need to know where they are.
About Metria
Metria are experts in real estate information and geographic data. We offer digital solutions and services in GIS, remote sensing, geodata, and real estate and business information to support analysis and decision-making.
About Metria
Metria offers digital solutions and services in GIS, geodata, real estate and business information. Our offering covers the entire chain from identifying the customer's needs for geodata, real estate and business information to collecting, analyzing and visualizing data to create insights that lead to smarter, safer and greener decisions.
Since spring 2022, Metria has been part of Spir Group, a Nordic group with approximately 260 employees in Norway and Sweden.
Spir Group is a Nordic company that, by collecting and making information available between consumers, public and private sectors, we simplify processes that are unnecessarily complex.
Spir Group is the parent company and visionary force behind several software subsidiaries, all dedicated to delivering business-critical technology that sustains and develops society.
Our customers range from real estate agents, banks, insurance companies, appraisers, real estate developers, media companies, builders, property owners, engineers, energy companies to building material manufacturers.
We are more than 260 colleagues with deep domain and technology expertise. Spir Group does more than just collect and share information. We enable innovation and growth that strengthens trust between people, businesses and society.
More information about Spir Group is available at www.spirgroup.com.