What are nature-based solutions for businesses?

Nature-based solutions

(often abbreviated as NbS) are relevant actions that protect, restore, or sustainably manage ecosystems to address real operational and sustainability challenges, while also delivering benefits for biodiversity, climate and people.

The world is facing an accelerating crisis of climate change and biodiversity loss. According to the

IPBES Global Assessment Report

, approximately 1 million species are at risk of extinction, over 75% of the land has been significantly altered by human activities, and wetlands are disappearing three times faster than forests. 

In response to these escalating pressures, embracing nature-based solutions helps restore degraded ecosystems while rebuilding planetary health. Businesses are also recognising that because they both depend on - and influence - natural systems, they have an important role to play in reversing ecosystem decline while strengthening their own long-term growth.

Nature-based solutions for businesses are actions that companies take to help protect, restore, or sustainably manage ecosystems in ways that reduce risk and support long-term resilience. They recognise that healthy forests, soils, wetlands, and oceans are not just environmental assets, but systems that strengthen stable supply chains, water security, and economic performance.

In practice, this can include protecting forests linked to sourcing, restoring degraded landscapes, investing in watershed protection, or supporting regenerative agriculture. As climate and biodiversity pressures intensify, nature-based solutions are becoming practical tools for businesses to safeguard both nature and their own future stability.

Nature loss and climate change are no longer distant environmental concerns - they are also emerging financial and operational risks. Supply chain disruptions, water scarcity, soil degradation, and extreme weather events are increasing costs and volatility across sectors. 

At the same time, regulatory frameworks and investor expectations are evolving, with initiatives such as the

Taskforce on Nature-related Financial Disclosures (TNFD)

pushing companies to assess and disclose their exposure to nature-related risks.

As

more than half of global GDP

is moderately or highly dependent on nature, businesses are recognising that ecosystem degradation directly affects long-term performance. Nature-based solutions are therefore gaining attention not only as sustainability commitments, but as strategies to manage risk, build resilience, and protect future value.

Nature-based solutions work by supporting and strengthening existing ecosystems such as forests, peatlands, wetlands, grasslands, and freshwater systems. Protecting intact ecosystems is often the highest-impact intervention, because once degraded, they are costly and complex to restore.

A striking example of this principle in action comes from the Czech Republic, where a family of beavers built a dam and created a wetland in a former army training area - completing, at no cost and in a matter of weeks, what humans had planned and stalled for seven years. Their activity not only restored wetland function and habitat but also saved Czech taxpayers an estimated

CZK 30 million

(about US $1.2 million) in construction costs.

NbS also help restore and regenerate degraded ecosystems in ways that work with natural processes rather than replacing them. Instead of imposing heavy engineered interventions, NbS rebuild ecological function - allowing soils to recover, vegetation to regenerate, water systems to rebalance, and biodiversity to return. The goal is not to override natural systems, but to support their recovery so they can function independently and sustainably over time.

Importantly, many of the world’s most biodiverse and ecologically valuable landscapes are already stewarded by indigenous peoples and local communities. Effective nature-based solutions recognise and support this leadership, working in partnership with rightsholders and local stakeholders to ensure long-term ecological integrity and community well-being.

When ecosystems are protected or restored, they may generate measurable outcomes such as carbon sequestration or biodiversity uplift. In some cases, these outcomes can be quantified, verified, and issued as

credits

. Businesses can then purchase these credits to finance conservation or restoration efforts beyond their own operations.

The two most common types of credits linked to nature-based solutions are:

Businesses are supporting nature-based solutions across critical ecosystems that strengthen economic stability, supply chain resilience, and long-term growth.

Forests

regulate rainfall, stabilise regional climates, and store vast amounts of carbon. Deforestation accounts for roughly

10-15%

of global greenhouse gas emissions (IPCC), and forest loss directly affects biodiversity and commodity supply chains. 

In response, companies are working to eliminate deforestation from sourcing regions linked to palm oil, soy, cocoa, beef, and timber. Many are investing in forest conservation, tree planting, supporting reforestation initiatives, and partnering with local communities to strengthen forest governance and protect high-carbon and high-biodiversity landscapes.

Peatlands

cover only about 3% of the Earth’s land surface, yet they store approximately 30% of the world’s soil carbon. Wetlands provide flood control, water filtration, and biodiversity habitat, but they are

disappearing three times faster

than forests. 

Businesses are increasingly supporting peatland protection and wetland restoration to prevent carbon emissions, reduce flood risk, and strengthen ecosystem stability in vulnerable regions.

Grasslands

cover roughly

40%

of the Earth’s land surface and store significant amounts of carbon below ground in their soils and root systems. They also support pastoral livelihoods and global livestock production. However, many grasslands are being degraded or converted to cropland. 

Businesses in livestock, dairy, wool, and leather supply chains are supporting improved grazing management, rotational grazing systems, and native grass restoration to enhance soil health, improve productivity, and protect biodiversity.

Healthy soils are fundamental to food production, yet approximately

one-third of the world’s soils are degraded

. Soil degradation reduces yields, increases vulnerability to drought, and threatens supply chain stability. 

Businesses are supporting agroforestry, assisted land management, and

regenerative agriculture

practices such as cover cropping, reduced tillage, agroforestry, and diversified crop systems to restore soil function while maintaining productivity.

Mangroves

, seagrasses, and coral reefs protect coastlines, support fisheries, and store carbon. Mangroves alone reduce flooding damages by an estimated

$57 billion annual

ly

across five countries. 

Companies with coastal assets or seafood supply chains are investing in mangrove planting and regeneration, coastal restoration and marine conservation to strengthen natural defences and enhance resilience against extreme weather.

Identify where your operations and supply chains contribute to deforestation, water depletion, soil degradation, pollution, or habitat conversion. Set clear reduction targets and implement improvements such as sustainable sourcing, improved land management, water efficiency, and responsible procurement practices.

Support

nature projects

that prioritise ecosystem protection, restoration, and regeneration. Select initiatives that demonstrate clear additionality, uphold strong governance and social safeguards, respect Indigenous and community rights, and are structured for long-term ecological resilience and measurable impact.

Define KPIs upfront, use transparent monitoring systems, seek third-party verification where possible, and report progress regularly to demonstrate measurable impact.

Be clear about the projects you support and their impact. If the project delivered verified results, explain what those results were and how they were measured. Avoid undefined claims like “nature-positive” without evidence.

Not all nature-based solutions deliver the same environmental or business value. Earthly’s 2026 CSO survey found that 51% of sustainability leaders say concerns about project credibility are delaying or preventing corporate investment in nature-based projects, underscoring the need for rigorous due diligence when choosing projects.

Investing in nature-based solutions is increasingly becoming a strategic business move. Companies that integrate ecosystem protection and restoration into their strategy can unlock measurable benefits:

For businesses seeking credible, carefully vetted sustainability opportunities,

Earthly’s marketplace

provides access to rigorously assessed nature-based solution projects that meet high standards of ecological integrity, measurable impact, and long-term stewardship - helping companies move from sustainability ambition to verifiable action.

At Earthly, we have

assessed

over 1,000 nature-based solutions projects globally, and fewer than 10% meet our criteria for ecological integrity, measurable impact, and long-term viability. Only those who pass our assessment are made available to our customers or get added to our marketplace.