Editor(s): Giulia Carbone, Nature for Climate Director at WBCSD; Madeline Ojakovoh, Manager for Climate Adaptation at WBCSD; Johan Lammerant, Global Technical Director Nature and Biodiversity at Arcadis; Daisy Hessenberger, Global Subject Matter Expert – Nature & Biodiversity at Arcadis
Managing the rising risks of natural hazards in a changing climate
The recent news landscape has made the growing impacts of natural disasters more apparent than ever. In the summer months of 2025 alone, historic floods swept through Texas, claiming over 130 lives; Southern Europe endured blistering heatwaves with temperatures surpassing 42°C; and wildfires tore across Turkey, displacing more than 50,000 people. These crises underscore a pivotal shift: businesses can no longer view the risks of natural disasters as distant or external – they can occur without warning and demand urgent, proactive approaches. Catastrophic events like these also have huge implications for business. In 2024, the world experienced 58 natural disasters (such as floods, wildfires, droughts, heatwaves, and storms), that caused over USD $1 billion in damages each. At the same time, Swiss Re estimates that insurance losses from natural disasters are rising at 5–7% annually, reaching USD $145 billion by the end of this year.
In particular, commercial buildings and infrastructure, ranging from office buildings to production facilities, warehouses, roads and power grids, face increasing exposure to the growing risk of natural hazards. For businesses, this requires shifting from reactive recovery efforts towards proactive prevention strategies. It also demands looking beyond the factory gate to recognize how land-use changes in the broader landscape can affect site-level vulnerability to natural hazards (and therefore threaten business continuity).
The business case for investing in Nature-based Solutions for adaptation
As the cost of inaction continues to grow, the economic case for investing in Nature-based Solutions (NbS) as a form of climate adaptation becomes more compelling. The World Economic Forum’s Alliance of CEO Climate Leaders highlights that every dollar invested in climate adaptation and resilience can generate between USD $2 to USD $19 in avoided losses. The United Nations Environment Programme estimates that achieving sustainable development goals will require rapidly scaling investments in nature-based solutions to USD $384 billion per year by the end of this year – presenting a significant opportunity for businesses to invest. Meanwhile, research from the World Resources Institute highlights that adaptation investments yield financial returns even in the absence of disasters, thanks to broader economic, environmental, and social benefits.
From nature risk to nature opportunity
Natural ecosystems, such as wetlands, forests, and mangroves, have been shown to play a critical role in shielding communities and infrastructure from climate-related hazards. Wetlands absorb floodwaters, coastal mangroves protect infrastructure from storm surges, and urban greenery combats the heat island effect in cities. However, while the societal benefits of NbS for nature, climate, and people are well-documented and understood, the business benefits are often underappreciated or entirely omitted from project valuations. These business benefits can include, for example, enhanced supply chain resilience against climate hazards (and as such reduced risk on property damage and disruption of business continuity), increased asset value, reputational gains related to increased biodiversity value and benefits for local communities, and potentially lower insurance premiums.
At WBCSD, we are working to fill this gap by showcasing real-world examples of how companies are applying NbS to safeguard commercial assets from natural hazards, highlighting the tangible benefits to businesses associated with this solution. This work is based on the Nature-based Blueprint and Map that we published in 2024, supporting members in applying NbS to address core business challenges – thereby generating the business case for NbS. It is also strongly connected to WBCSD’s Business Leaders Guide to Climate Adaptation & Resilience, which helps business leaders build or adjust their approach to managing risk, access practical frameworks for building resilience, and take immediate next steps for their organization’s adaptation journey. Finally, as NbS are very effective in reducing physical risk in companies’ value chains, this work is closely related to the WBCSD’s upcoming CEO Handbook on physical risk and resilience in value chains, which offers CEOs and Executives step-by-step guidance on identifying, assessing and managing physical risks in value chains.
How to implement Nature-based Solutions effectively
Based on the guidance and experience from leading organizations such as the International Union for Conservation of Nature (IUCN), the World Resources Institute (WRI), and Arcadis, several key success factors have been identified for the effective implementation of Nature-based Solutions from a corporate point of view:
- Nature-based Solutions must explicitly address a business challenge. In order to scale up investment in and deployment of NbS, companies must see them as part of their business solutions toolkit. For example, NbS used for climate adaptation provide measurable resilience benefits for the implementing business.
- Nature-based Solutions offer opportunities for achieving joint climate, biodiversity, and societal benefits. Since budgets for sustainability initiatives are limited, companies need to prioritize projects that generate multiple benefits, making NbS an attractive option as they inherently deliver biodiversity gains while often providing societal benefits through ecosystem services and contributing to climate mitigation through carbon sequestration.
- Nature-based Solutions are more effective and cost-efficient if implemented at the landscape-level. To unlock their full potential, NbS should be implemented using a landscape-level approach. For NbS as adaptation solutions, implementation at the landscape-level can result in collective resilience that protects a broad range of actors in the same landscape from natural hazards, such as wildfires and floods.
- The benefits of Nature-based Solutions should be accurately valued. Accurate valuation of NbS must capture the full spectrum of benefits, including avoided losses, operational savings, and enhanced asset value. This strengthens the case for private investment and ensures that the NbS stays operational over longer periods.
- Nature-based Solutions must leverage technical and local expertise. The effective implementation of NbS depends on access to technical know-how, careful planning, and an in-depth understanding of the local environmental conditions. Businesses working at a landscape-level in a multistakeholder context should leverage the technical knowledge and potential fundings support of partners, keeping in mind that long lead times and landscape-specific challenges can be mitigated through strong project management and frequent stakeholder coordination.
These factors provide a robust foundation for businesses considering NbS as part of their adaptation strategy. For real-world examples, explore Arcadis’ case studies in Rotterdam and New York to see how they have been applied in practice.
Conclusion
As natural hazards grow in frequency and severity, businesses must move from reactive recovery to proactive adaptation. At scale, Nature-based Solutions can significantly reduce risks to commercial buildings and infrastructure while delivering measurable business benefits – even when disasters do not occur. They also unlock opportunities to jointly advance climate, biodiversity, and societal goals, making them a strategic asset in any sustainability portfolio. By embedding NbS into core strategies now, companies can protect their physical infrastructure, enhance supply chain resilience, and create value that extends well beyond risk reduction – all before the next natural hazard strikes.
If your organization would like to learn more about WBCSD’s work on Nature-based Solutions, please do not hesitate to reach out to nature@wbcsd.org.