An era of extinction: How businesses can help conserve habitats

Ours is an age where 1 million animal and plant species are under threat of extinction around the world from environmental and human activity. Global businesses must meet emerging and amended legislation on habitat, species, and biodiversity conservation to both protect the planet’s biological diversity and mitigate financial and reputational business costs.  

In this article, we’ll explore the impact businesses are having on natural habitats; the importance of habitat conservation; the legislation in Europe, the United States, and the United Kingdom protecting different species; and what businesses can do to join the fight against extinction.

Are businesses affecting habitat loss?

Defined by National Geographic as “the elimination or alteration of the conditions necessary for animals and plants to survive”, anthropogenic activity — that is, human-led — is the primary contributor to habitat destruction or degradation, destroying the homes and natural resource for millions of species.
 

Deforestation 

With approximately 15 billion trees cut down to clear land for farming, grazing, mining, drilling, and urbanization, 80% of global species who reside in the forest are impacted by deforestation. 

Water pollution  

In addition to dredging and filling inland wetlands, where many marine species live, pollution from business operations, processes, and chemicals damage streams, rivers, and oceans, impacting the health of fish, birds, marine plants, and organisms. 

Air pollution 

Similarly, greenhouse gas (GHG) emissions and other harmful toxins are released into the air from waste mismanagement and unsustainable business practices, damaging the environments and plant life many species rely on for survival. 

Hunting for food, sport, or medicine

The cultural or social act of hunting animals for food, sport, or to use for medicinal purposes kills 200 million animals annually. Cattle, calves, pigs, sheep, lambs, chickens, turkeys, and ducks are killed for food; elephants, bears, and tigers are hunted for ivory and their skin; and rhino horns are sometimes used in Chinese medicine. 

Further, environmental threats such as climate change, invasive species, and habitat fragmentation are other examples which can lead to habitat destruction. Climate change, particularly, is a growing global threat instigated by unsustainable practices at home and in businesses.

Why is habitat conservation important?

Protecting the planet, and all who reside upon it, is a moral and ethical duty shared by us all. Not only is it simply compassionate to allow all animals and life to flourish, humans rely heavily on the stable functioning of biodiversity for many reasons.
 

Reliance on healthy ecosystems

Humans depend on ecosystems for water, pollination, and soil fertility for growing crops, food, and medicine. Biodiversity loss affects ecosystems’ ability to provide us with these services — for example, overfishing can lead to sudden depleted food sources in an area. 

Biodiverse ecosystems keep us healthy

There’s a link between disease and the degradation of nature. For example, malaria and dengue fever skyrocketed in areas with high levels of deforestation. Animals carry viral diseases which can spread to humans as they either infiltrate natural habitats to destroy them, or animals are forced to relocate closer to civilization. 

Contributes to the functioning of the global economy  

Millions of people rely on nature for their livelihoods. It’s estimated that food, forestry, and ecotourism industries could lose USD 338 billion annually with the loss of biodiversity. 

Integral to culture

Habitats and species are an integral part of many cultural and religious identities, with animals used as national symbols and icons. Further, ecosystems function as knowledge repositories for the future generation.

How does habitat conservation or degradation impact businesses?

More than half of the global gross domestic product depends on nature, according to the World Economic Forum. It therefore stands to reason that the conservation or degradation of habitats — and therefore, species and biodiversity — has a huge impact on the economy.  

A study by Boston Consulting Group (BCG) on the role of businesses in the biodiversity crisis summarized the following findings: 

• Ecosystem services are worth more than USD 150 trillion annually — double the world’s GDP 

• The decline in ecosystem functionality has already cost the global economy over USD 5 trillion annually 

• The operations of food, energy, infrastructure, and fashion industries drive over 90% of manmade pressure on biodiversity  

As biodiversity suffers, businesses face financial and reputational damages. The decline of ecosystem services increases the cost of raw materials, which some companies may not be able to afford. Additionally, engaging in activities that negatively impact biodiversity increases the likelihood of backlash from consumers and stakeholders, risking reputational damages to businesses that contribute to, rather than fight against, the destruction of habitats.

Further research by the World Economic Forum concluded that between USD 235 billion and USD 577 billion of global crop output is at risk annually from pollinator loss; and 60% of coffee varieties could go extinct due to climate change, disease, and deforestation — destabilizing a retail market worth over USD 80 billion in sales annually.  

Certain sectors and industries are under more threat from loss of biodiversity, changes in ecosystem services, and the ongoing challenge of climate change. Skiing companies, for example, rely on stable and predictable weather conditions to operate. As the weather warms and snow melts faster, these companies are at risk of closing early for the season. Beverage companies which rely on fresh water, food companies relying on the stability of crops, and biopharma companies requiring ecosystems for medicinal purposes are just a few examples of businesses under threat as habitats change.  

Sectors which rely heavily on animals for their resources, like gathering food in more remote areas, obtaining raw materials for producing goods, or using animals for medicinal purposes, will suffer from habitat degradation and the subsequent decline in species richness. Already impoverished countries will struggle further, with local fisheries and farms unable to sustain their livelihoods.  

And in remembering that habitat destruction directly links to environmental decay, insurance companies may increase their costs, outside the affordability of many businesses, as floods and storms become more likely, damaging buildings and supplies.

Global legislation to protect species from extinction

As the climate and biodiversity crises become a global threat to the health of the planet and, ultimately, human health, regulatory authorities around the world are driving efforts to protect species from extinction.
 

Europe
 

EU biodiversity strategy for 2030

Proposed as a long-term plan to reverse the degradation of ecosystems, the EU’s biodiversity strategy aims to improve biodiversity by 2030 and build our resilience to global threats from climate change, forest fires, food insecurity, and disease. 

To achieve this, the strategy outlines the following actions: 

• Establishing a larger EU-wide network of protected areas, with strict protection for areas of high biodiversity  

• Launching an EU nature restoration plan for countries to implement restoration measures, capture and store carbon, and reduce the impact of natural disasters 

• Introducing measures for transformative change, including better implementation, progress tracking, knowledge, funding for biodiversity, and investments 

• Introducing measures to tackle biodiversity loss, such as adopting a global framework
   

The Habitats Directive 1992

Adopted in 1992, the Habitats Directive was established to provide protection for over one thousand species, including mammals, reptiles, amphibians, fish, and plants. Its main objective is to maintain and restore these habitats in the EU so they can thrive long-term.  

The Directive requires Member States to establish strict protection regimes for species listed in Annex I, notably ensuring they prohibit: 

• Deliberate capture or killing in the wild 

• Deliberate disturbance during breeding, rearing, hibernation, or migration 

• Deterioration or destruction of breeding or resting places, including picking, collecting, cutting, uprooting, or destroying nests, eggs, or protected plants 

• The use of indiscriminate means of capture or killing causing serious disturbance to population 

• The keeping, transport, and sale of specimens taken from the wild 

The Birds Directive has a similar purpose, with a focus on protecting the 500 bird species native to Europe.
 

Regulation on Deforestation-free products

The regulation on deforestation-free products (EUDR) moderates the products EU citizens consume, to ensure they don’t contribute to deforestation. Reducing the EU’s impact on forest degradation will, in turn, hope to reduce greenhouse gas (GHG) emissions by 32 million metric tons annually, and prevent further biodiversity loss.  

Under this regulation, any operator or trader wishing to sell or export their commodities (cattle, wood, cocoa, soy, palm oil, coffee, rubber, leather, chocolate, tyres, furniture) on the EU market must be able to prove that their products haven’t contributed to deforestation or forest degradation.
 

United Kingdom
 

The Conservation of Habitats and Species Regulations 2017

The original Conservation of Habitats and Species Regulations 2017 has undergone multiple changes since its adoption in 2017, but its overall aim of protecting the habitats and species in the United Kingdom has remained the same. The European Protected Species (EPS) are the primary focus, including the otter, common dormouse, and all bats.  

The law mandates that those who keep a wild animal either directly part of, or derived of, an EPS species must have a licence. The regulation also contains discussions on special areas of conservation to maintain habitats.
 

The Wildlife and Countryside Act 1981

Entering into force in 1982, the Wildlife and Countryside Act was established to protect native species, manage non-native species, and enhance the protection of Sites of Special Scientific Interest.  

The legislation covers the protection of multiple types of animals, namely: 

• Wild birds, their nests, and eggs, including the prohibition of certain methods of killing or taking wild birds, the sale of live or dead wild birds, and the registration and protection of captive birds 

• Certain wild animals, the killing or taking of wild animals, identification numbers and tags, duty to inspect, authorization from landowners, the prevention of poaching of wild hares and rabbits, the sale or possession of wild hares and rabbits killed or taken unlawfully, and restrictions on night shooting 

• Certain mammals 

• Wild plants 

Moreover, it covers prohibitions on the keeping or sale of invasive animals or plants, the import or export of endangered species, and the possession of pesticides. The legislation also dives into detail on licenses and inspections.
 

Wild Mammals Protection Act 1996

The Wild Mammals (Protection) Act 1996 offers protection for all wild species of mammal. It’s designed more as a law focused on animal welfare rather than the conservation of the natural environment. But in protecting individual species, or whole specie groups, the law does indirectly also preserve their habitats.  

The Act protects mammals from deliberate cruelty, such as physical abuse, and details exceptions such as euthanasia or mercy killing, lawful hunting, and lawful pest control. Some animals, such as badgers and deer, have their own legislation.
  

United States
 

America’s Wildlife Habitat Conservation Act

Introduced in February 2024, America’s Wildlife Habitat Conservation Act follows a similar aim of the Recovering America’s Wildlife Act bill, aiming to provide USD 1.6 billion additional funding for state and tribal wildlife conservation. The funding hopes to incentivize states and landowners to rehabilitate and further protect endangered and threatened species.  

The Act is shaped around a roadmap detailing the recovery of a species, by pairing the objective and recovery targets with regulatory relief for states and landowners who meet, or exceed, those goals.  

Further, the bill overturns Cottonwood, a decision which hindered the Forest Service’s ability to protect habitats in national forests.
 

Migratory Bird Treaty Act of 1918

Enacted in 1918, the Migratory Bird Treaty Act (MBTA) is a federal law implemented for the conservation and protection of migratory birds between the US and Canada. It was amended with treaties between Mexico, Japan, and Russia.  

The law prohibits the killing, capturing, selling, trading, and transport of protected migratory birds without authorization by the Department of US Fish and Wildlife Service. The protected species are included in the four international treaties.
 

National Wildlife Refuge System Act

The National Wildlife Refuge System Improvement Act is a 1997 amendment of the National Wildlife Refuge System Administration Act of 1996 to establish management standards for the National Wildlife Refuge System. 

The law clarifies the following: 

• Wildlife conservation is the fundamental mission of the refuge system 

• Comprehensive conservation planning is required to guide management of the refuge system 

• Private citizens should be involved in land management decisions 

• Compatible wildlife-dependent recreation should be prioritized in refuge planning 

Within these standards, the Act is placing wildlife habitat and species conservation at the forefront of rehabilitation efforts and building plans.

What can businesses do to support habitat conservation?

In the fight against extinction, businesses have a global responsibility to opt for more sustainable and safer operations and processes to mitigate the external damage their company produces, namely environmental destruction.  

Businesses should make conscious efforts to be more environmentally-friendly, including: 

• Choosing more sustainable materials that are reusable, recyclable, and don’t omit harmful emissions during their production or disposal 

• Adapting operational processes and resources to reduce the amount of water or land needed for products 

• Managing the burning of waste and subsequent generation of fossil fuels to reduce the quantity being released into the atmosphere 

• Supporting governmental and local schemes to prevent deforestation and habitat destruction