Investing in Mangroves 2025

1.4 Nexus approach: harnessing corporate action to deliver on people, nature, climate and business goals Scientists predict that, by 2050, the climate crisis will reduce global GDP by approximately 19%72 and average agricultural yields by 30%,73 while the biodiversity crisis puts 55% of global GDP (worth about $58 trillion) at risk.74 These crises will have profound impacts on corporations. Yet while 79% of companies have set climate-related targets,75 just 26% report on nature-related indicators.76 There is a growing consensus that companies can only achieve their net-zero goals through nature- positive action.77 Consequently, action on nature is likely to have nearly as big an influence on corporate strategy and governance as climate action.78 Leading companies will therefore look for high- value solutions that can deliver on goals that benefit people, nature and climate, alongside commercial benefit to operations and value chains.The latest research takes a “nexus approach” to understanding how multiple crises – such as biodiversity loss, water and food insecurity, health risks and climate change – “interact, cascade and compound each other in ways that make separate efforts to address them ineffective and counterproductive”.79 It is now well-established that focusing exclusively on climate – commonly dubbed “carbon tunnel syndrome” – can result in negative outcomes in other areas such as food or biodiversity. Consequently, the solutions to such interconnected crises need to be equally integrated and coordinated, to deliver benefits to people, nature and climate over the long-term (see Box 5). Nexus solutions BOX 5 In December 2024, the Intergovernmental Platform on Biodiversity and Ecosystem Services (IPBES) published its Thematic Assessment Report on the Interlinkages among Biodiversity, Water, Food and Health. Known as the Nexus Report, it represents a landmark scientific assessment of the complex interconnections between five “nexus elements”: biodiversity, health, water, food and climate change.It defines nexus solutions as “actions or policies that can help advance governance and sustainable management of one or more elements of the nexus between biodiversity, health, water, food and climate change.” Mangrove-positive investments provide the kind of integrated opportunities to achieve these interconnected goals (see Figure 2). They enable companies to draw new, holistic insights from different thematic areas (e.g. impacts on people, climate, nature), decreasing the potential for sustainability claims to be undermined by the unconsidered adverse effects of interventions. Understanding mangrove-positive investments as nexus solutions also allows corporations to nest their interventions within existing company policies for “nexus elements” such as biodiversity, health, water, food and climate change, rather than establishing new policies for new, individual approaches. Nevertheless, such interconnected climate and nature solutions may carry new risks for which mitigation strategies have not been fully developed. So this journey demands a willingness from corporations to channel their creativity, innovation and capital to the highest value solutions in the face of risk and uncertainty, if these solutions are to be successful.For corporations interested in mangrove-positive investment, there are three main questions to consider, addressed in the following chapters: 1. Where can different types of companies start to turn their people, nature and climate commitments into mangrove-positive action? (see Chapter 2: Mapping systemic interactions). 2. What tools, methods and practices maximize the access to and value of mangrove-positive action? (see Chapter 3: Enabling high-quality corporate action). 3. How can companies demonstrate leadership in taking high-integrity action that mitigates reputational risk and builds global momentum towards broader corporate action on climate and nature? (see Chapter 4: Key takeaways for successful corporate investment). This playbook will answer each of these questions, with examples of corporations and other partners currently engaged in efforts to support mangroves as a solution for people, nature and climate. The Nexus Assessment reveals the deep interconnections between biodiversity, water, food, health and climate – demonstrating that tackling these challenges together is our only path to sustainability. Source: WWF81Source: IPBES, 2024.80of global GDP— equivalent to around $58 trillion—is at risk due to the biodiversity crisis65% Investing in Mangroves: The Corporate Playbook 14