Infrastructure development and operations drive over 25% of human-generated biodiversity loss—fragmenting habitats, depleting resources, and polluting terrestrial, freshwater, and marine ecosystems. Their widespread reach amplifies ecological impacts caused by other sources such as climate change, land- and sea-use change, and the spread of invasive species—and compounds the challenges to addressing the problem.
Yet the broad scope of this sector—which includes the work of governments, infrastructure owners, engineering and construction firms, and real estate developers—also presents unique opportunities to create tailored restoration responses to specific environmental challenges. In fact, the infrastructure sector can play a vital role in addressing ecosystem degradation by contributing to nature restoration via nature-based and hybrid solutions, such as the use of wetlands for flood management or the use of mangrove reforestation for coastal protection. These solutions are particularly important to integrating infrastructure successfully with natural ecosystems.
Taking action to mitigate and reverse ecosystem impacts not only helps the environment, it also offers tremendous economic benefits. In our case experience, some businesses achieved an ROI more than double that of conventional “gray” or “built” solutions such as conventional wastewater treatment plants or drainage networks.
To understand the sector’s progress in this area, we surveyed more than 45 infrastructure companies around the globe to evaluate their awareness of the industry’s nature-related impact and their maturity in terms of mitigating harm, restoring ecosystems, and generating positive environmental outcomes. We found varying levels of awareness and maturity, with about 80% of respondents saying they focus on reducing the negative impacts of their projects through operational improvements and process changes.
While this focus on harm reduction is important, it is only part of the solution. Restoring the systems of nature is a transformational act that can greatly enhance our environmental resources. Infrastructure players looking for meaningful environmental impact should take a strategic approach that aims to:
- Reverse ecological harm.
- Reduce reliance on resource-intensive practices.
- Avoid emissions through ecosystem-based carbon sinks.
- Build resilience against climate change.
In the process, they will unlock business opportunities, foster innovation, and enhance their competitive advantage.
The Far-Reaching Effects of Nature Degradation
Nature is essential to human well-being and survival. It provides a wide array of vital ecosystem services—including food provisioning, carbon storage, and water and air filtration—that are collectively valued at over $150 trillion annually, or about twice the world’s GDP.
Yet, nature faces significant degradation, and its tangible impacts and the related biodiversity loss are increasingly evident. In fact, the Swiss Re Institute estimates that one-fifth of the world’s countries face the risk of ecosystem collapse, potentially affecting the planet’s ability to support human life. In recognition of this risk, the World Economic Forum in 2024 ranked biodiversity loss as the third most severe threat that humanity faces over the next ten years.
In addition, it is becoming clear that the decline in ecosystem functionality is also an economic concern. Nature is at the foundation of the global economy, and its significant degradation puts a substantial portion of worldwide commerce at risk. Since the late 1990s, in fact, our research finds that the global economy has lost ecosystem services worth about $5 trillion annually, or 6% of global GDP.
