Forests for Resilience: Why Every Company Needs a Nature Policy

Source: Alamy Stock Photo

Forests cover about one-third of the land on Earth and are home to 80% of all terrestrial biodiversity. They are also a huge part of our planet’s natural capital and play a vital role in the lives of billions. Around 4.2 billion people, 95% of those living outside cities, live within just three miles of a forest. 

Forests provide us with much more than just timber. They offer a wide array of products, from pine nuts and wild mushrooms to medicinal plants and natural fibers. For many, forests are also a way to enhance mental well-being and a source of recreation. For about 350 million indigenous people, forests also support livelihoods and providing sources of food, shelter, and cultural identity. 

But the benefits don’t stop there. Forests are critical for resilient agriculture, as they deliver essential ecosystem services like water regulation, soil conservation, carbon storage, and habitat protection. They are also a vital source of food and nutrition: the United Nations Food and Agriculture Organization (FAO) estimates that up to six billion people regularly use non-timber forest products. 

Despite their importance, forests are under increasing pressure. Climate change, wildfires, invasive species, over-logging, and the conversion of forests for housing or agriculture all threaten their survival. These challenges rarely occur alone, and their combined effects can be devastating. For example, climate change stresses trees, making them more vulnerable to insect infestations. 

Between 1990 and 2015, the world lost nearly 7% of its total forest area—a decline from 4.28 to 3.99 billion hectares. While planted forests grew by 66% during the same period, these are often monocultures that can’t match the ecological richness or resilience of native forests. Replacing diverse forests with single-species plantations can reduce biodiversity, disrupt local communities, and even undermine climate goals. 

To truly protect and benefit from forests, we must understand them as complex social-ecological systems (SES). This means recognizing that forests and human societies are deeply interconnected, with feedback loops and interactions that require thoughtful management. Focusing only on one aspect, like maximizing reforestation areas, can create “mismatches,” such as monocultures that harm both the environment and local livelihoods. 

Imagine a forest ecosystem as an airplane and its species as the rivets holding it together. You might lose a few rivets without consequence, but you never know which one will cause the plane to fail. Similarly, losing key species or disrupting community relationships can trigger the collapse of a forest system. 

This complexity is precisely why every company should have a forest or nature policy. Such a policy helps manage risks, safeguard resources, and ensure that business operations do not inadvertently contribute to forest degradation. In today’s world, where consumers and investors increasingly demand sustainability, a forest policy is not just good for the planet—it’s good for business. 

Resilience theory has advanced rapidly, but the pace of climate change means we must do more to protect and enhance our forests. Companies play a crucial role in this effort, both through their own operations and by influencing supply chains and markets. 

There are many ways companies can support forest resilience. Technologies like remote sensing can monitor forest health and fire risks in real time. Blockchain and AI can improve the traceability of forest products, ensuring they are sourced sustainably. 

However, innovation alone is not enough. Without strong policies, technological solutions may overlook marginalized communities or fail to address underlying problems. For example, blockchain can help verify deforestation-free products, but it won’t solve issues like land speculation or ensure fair benefit-sharing. 

A comprehensive forest or nature policy ensures that a company’s actions are sustainable, inclusive, and aligned with broader environmental and social goals. It protects both the company’s brand and the forests we all depend on. 

Action Items: Businesses 

• Develop a clear forest or nature policy that outlines company’s commitment to protecting forests and biodiversity. 

• Assess and monitor supply chains regularly to ensure raw materials are sourced from responsibly managed forests. 

• Build partnerships with local and indigenous peoples who rely on forests. Support their rights and involve them in decision-making to ensure your business activities benefit both communities and the environment.