Incorporating Nature in Your Supply Chain could be the Key to Future Success

Tom Deane, Communications and Market Education Officer - Eo-Markets Australia

Over half of the world’s GDP is dependent on nature. Yet, ecosystems globally are under extreme pressure, and governments, investors, and businesses are taking action. In Australia, this is accelerating with the government’s bold commitments to biodiversity targets and new nature-reporting requirements for large organisations taking effect in January 2025. These changes will impact businesses of all sizes, especially small and medium enterprises embedded in larger supply chains.

The Changing Landscape: What SMEs Need to Know

From January 2025, large Australian businesses must report their environmental impacts, including the sustainability of their supply chains. For SMEs supplying goods or services to these organisations, this could mean new expectations for transparency, reporting and requirements to incorporate nature-positive practices into their business.

This shift reflects a growing recognition: healthy ecosystems are essential for long-term business resilience. Whether it’s agricultural inputs, water availability and quality, or the biodiversity that underpins tourism and recreation industries, nature directly and indirectly affects your business.

Why Acting Now Is a Competitive Advantage

Taking steps to understand and address your business’s impact on nature can create opportunities:

• Stronger partnerships: Demonstrating environmental responsibility can enhance your business’s appeal in multiple ways, whether as a supplier to government, a partner for larger organisations, or a brand that resonates with environmentally conscious customers.
• Operational savings: Simple actions, such as optimising water use or improving land management practices, often reduce costs while enhancing productivity.
• Risk mitigation: By addressing nature-related risks, such as resource scarcity or supply chain disruptions your business will be more resilient to future challenges.

Taking action also builds trust. Customers, investors, shareholders, stakeholders and partners are increasingly looking to businesses that can demonstrate a real commitment to environmental responsibility.

What Can You Do Today?

• Map your impacts: Begin by assessing your supply chain and business operations to understand how it affects or is dependent upon nature.
• Stay informed: Explore resources on nature related reporting requirements from the Australian Government as well as information guides and frameworks to help guide your approach to becoming nature positive.
• Make a plan: Develop a Nature Strategy and Nature Finance Plan for your organisation, defining your ambitions and objectives for enhancing the environment that is impacted by your business operations and identify high-integrity mechanisms available to assist you in achieving these goals.

Here are some links to great resources to get you started:
ASIC urges businesses to prepare for mandatory climate reporting – ASIC
Mandatory climate-related financial disclosures – Australian Government
Nature Finance and Biodiversity Credits: A Private Sector Roadmap to Finance and Act on Nature – by the World Economic Forum
Nature Investor Toolkit – Responsible Investment Association Australasia
Positive Environmental Impact through High-Integrity Credits Guide – Eco-Markets Australia