Asia and the Pacific is facing a severe decline in natural capital, which forms the very foundation of the region’s economic resilience and competitiveness. Despite widespread acknowledgment of nature’s critical role in supporting sustainable development, ecosystems are deteriorating at alarming rates. The Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) reports that nearly 40% of global natural capital has been lost, creating systemic risks that threaten financial stability and the global economy. In the Asia-Pacific region, wildlife populations have dropped by 60% since 1970, a quarter of endemic species are at risk of extinction, nearly 60% of grasslands are degraded, and 45% of wetlands have disappeared.
The economic consequences of this decline are profound. According to the Asian Development Bank, failing ecosystems increase health and disaster costs, reduce productivity, shrink fiscal revenues, and undermine debt sustainability. About 75% of developing Asia’s GDP depends on ecosystem services. Water scarcity is already affecting agriculture, fisheries, forestry, manufacturing, and even data center expansion in countries such as India, Pakistan, and Viet Nam. Coastal fisheries are also declining, with local fishers reporting income losses of up to 50%, while critical freshwater resources such as Cambodia’s Tonle Sap Lake have seen drastic drops in fish populations.
Business and financial sectors are key to reversing these trends, yet engagement remains a challenge. Companies often perceive environmental advocacy as regulatory burden, and much scientific literature is not communicated in a way that resonates with business decision-makers. UNDP’s Nature Pledge, aligned with the Kunming-Montreal Global Biodiversity Framework, aims to bridge this gap by encouraging shifts in values, financing, and strategic approaches toward nature. The initiative promotes a deeper appreciation of nature’s economic contributions, challenging the false dichotomy between environmental protection and economic growth.
Effective communication is critical for mobilizing business action. Leaders respond to tangible risks rather than moral appeals, and nature must be framed as vital infrastructure, not merely scenery. Highlighting real-world impacts—such as reduced hydropower efficiency due to upstream deforestation or the loss of natural pollinators affecting food security—can make the business case compelling. Emphasizing innovative, solution-oriented approaches allows stakeholders across society to contribute, reinforcing the connection between ecosystem health, economic stability, and human well-being.
As UNDP Administrator Alexander de Croo emphasizes, awareness of biodiversity risks is growing, along with recognition of the economic opportunities presented by thriving ecosystems. To translate understanding into action, businesses must perceive nature as a material economic asset. By doing so, policymakers, investors, and industry leaders can take meaningful steps to halt ecosystem degradation, strengthen resilience, and secure sustainable growth across Asia and the Pacific.
