Nature Positive Role of the Automotive Sector China Deep dive

Opportunity sizing The Forum’s Future of Nature and Business report,126 published in 2020, identifies about 60 major business opportunities in the nature-positive economy and estimates their respective market sizes (defined as concentrated shifts in profit pools that generate specific opportunities for business). The sizing reflects the annual additional opportunity in 2030 based on estimated savings (e.g. value of land saved through restoration) or revenue upside (e.g. new market potential for new products). For each opportunity, the incremental size of the opportunity in a nature-positive versus a business- as-usual scenario is measured. The opportunities selected are based on existing, commercialized technologies. A detailed overview of this sizing can be found in the methodology note for the Future of Nature and Business report.127 Identifying the business opportunity potential of the priority actions for the automotive sector followed a two-step approach. First, relevant opportunities were selected from the Future of Nature and Business report and mapped to the priority actions identified in this report (see Table 1). Second, the market potential for the automotive sector was estimated across each selected opportunity, using relevant adjustment factors such as the sector’s share of China’s total GDP for sector-agnostic opportunities or the total excluding the mining and metals sector’s share of China’s total GDP for circularity- related opportunities. This sizing approach may not cover the entire set of business opportunities for the sector. For example, the market potential of new technologies under development was not considered in the original 2020 report and is, therefore, not covered in this report. Similarly, the 2020 report did not aspire to exhaustively cover all present opportunities. Nature Positive: Role of the Automotive Sector – China Deep-dive 35