2025/11/27 by Garel, Alexandre, Romec, Arthur, Sautner, Zacharias +1
Business, Management and Accounting · Environmental Science · #330 Economics #Biodiversity Risk #Conservation, Biodiversity, and Resource Management #Corporate Social Responsibility Reporting #Land Use and Ecosystem Services #Nature Dependence #Nature Risk #Physical Risk #Shareholder Engagement
paper · doi:10.5167/uzh-280864
openalex publication_date 2025/11/27 · openalex created_date 2025/12/10 · openalex updated_date 2026/07/28
We construct firm-level measures of dependence on ecosystem services (NatureDep scores) for 31,772 listed firms in 117 countries between 2010 and 2023, combining the ENCORE database with firm-level revenue information. The scores capture exposure to physical nature risks, with financial effects additionally depending on the deterioration of ecosystem services. NatureDep scores positively correlate with impact on biodiversity, are unrelated to nature-related actions disclosed in the CDP survey, are not reflected in firms’ corporate disclosures, and predict BlackRock’s biodiversity-related engagements. We employ the scores in two applications. First, the scores relate positively to measures of downside risk, with effects stemming mostly from high dependencies on water-related ecosystem services. Second, the scores predict nature-related incidents that arise when high nature dependence leads firms to damage nature, overuse resources, or trigger disputes with local communities. We conclude that investors started to pay attention to nature dependence, while corporate action and disclosure remain limited.