How investing in Natural Climate Solutions can make companies more resilient

The document advocates for Natural Climate Solutions (NCS)—comprising conservation, restoration, and land management improvement—as a critical tool for reducing land sector emissions, which account for at least 25% of global emissions. It argues that companies in the food and agriculture industry should prioritize 'insetting' (investing within their own supply chains) over 'offsetting' to ensure long-term resilience and social safeguards. Using Nestlé as an example, the text notes that NCS actions such as protecting forests and agroforestry could reduce CO2 emissions by 17 million tons by 2030. The author calls for new rules and incentives to encourage landscape-level collaboration and to ensure these investments count toward science-based targets.

• Natural Climate Solutions (NCS), which include conservation, restoration, and land management improvement, are essential for meeting Paris Agreement goals. Land sector emissions represent at least 25% of global emissions, but NCS could provide 30% of the mitigation needed to reach net-zero.
• The document argues that companies should prioritize 'insetting'—investing directly in their own supply chains and sourcing landscapes—over 'offsetting' in unrelated activities. This approach is presented as more effective for transforming the land use sector, ending deforestation, and supporting local livelihoods because land sector companies have a vested interest in the resilience of these ecosystems.
• Nestlé estimates that its NCS initiatives—including protecting standing forests, reforestation, and agroforestry within its supply chain—could reduce CO2 emissions by 17 million tons by 2030. This is part of a strategy to address the fact that 27% of its 2018 in-scope footprint is linked to agricultural ingredients from pressured natural ecosystems.
• To achieve the 1.5C target, the document asserts that companies must invest in conservation and restoration at the landscape level. This requires new rules and incentives to ensure investments count toward science-based targets and to establish clear frameworks for shared costs and benefits to prevent the double-counting of benefits.

APA

McMahon, C. (2021). How investing in Natural Climate Solutions can make companies more resilient. World Economic Forum. https://www.weforum.org/stories/nature-and-biodiversity/companies-invest-natural-climate-solutions-cop26-resilient-business/

Chicago

McMahon, Conor. How investing in Natural Climate Solutions can make companies more resilient. World Economic Forum, 2021. https://www.weforum.org/stories/nature-and-biodiversity/companies-invest-natural-climate-solutions-cop26-resilient-business/.

Wikipedia

{{cite press release |last1=McMahon |first1=Conor |title=How investing in Natural Climate Solutions can make companies more resilient |publisher=World Economic Forum |date=29 October 2021 |url=https://www.weforum.org/stories/nature-and-biodiversity/companies-invest-natural-climate-solutions-cop26-resilient-business/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{mcmahon2021how, author = {McMahon, Conor}, title = {{How investing in Natural Climate Solutions can make companies more resilient}}, publisher = {World Economic Forum}, year = {2021}, month = oct, url = {https://www.weforum.org/stories/nature-and-biodiversity/companies-invest-natural-climate-solutions-cop26-resilient-business/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }