Nature Loss Could Shrink UK GDP by Nearly 5% Without Private Action

A new joint report from the Green Finance Institute (GFI) and WWF has raised urgent concerns for the UK economy and environment. The study reveals that without immediate private sector action and investment in protecting nature, the UK could face a staggering 4.7% reduction in GDP by the end of this decade.

This projection highlights the direct connection between economic growth and environmental health. Natural resources, such as clean water, fertile soil, forests, and biodiversity, are not only essential for life but also critical to sustaining industries, jobs, and livelihoods across the country. Their depletion threatens long-term financial stability as much as ecological balance.

The Case for Nature-Positive Business

The report stresses that businesses that invest in nature-positive strategies stand to benefit both financially and environmentally. A leading example is First Milk, a UK farmer-owned cooperative, which has adopted a regenerative dairy model. By focusing on soil health, reducing carbon emissions, and improving biodiversity, First Milk is already experiencing improved productivity, lower input costs, and stronger community ties, demonstrating that sustainability and profitability can go hand in hand.

Why Private Sector Leadership Matters

While government policies play an important role, the report makes it clear that private sector leadership is critical in addressing the risks of nature loss. Industries from agriculture and manufacturing to finance and construction rely heavily on natural capital. By acting now, companies can safeguard their supply chains, reduce long-term risks, and contribute to national and global climate goals.

Policymakers are being urged to create an enabling environment, through incentives, regulations, and financial instruments, that accelerates private sector adoption of sustainable practices. But businesses, investors, and community leaders must not wait. Embracing nature-positive strategies today will protect both the planet and the prosperity of future generations.

Source:

• Green Finance Institute & WWF, “Nature Loss and the UK Economy”, August 2025.

• The Guardian – Nature Loss Will Cut UK GDP by 5% Without Private Action