Nature-positive: Africa’s untapped ESG growth frontier

In most African boardrooms today, conversations around environmental, social, and governance (ESG) issues tend to focus on climate change, carbon footprint disclosures, or compliance with emerging sustainability reporting requirements.

While these topics are undeniably important, they represent only a part of a much larger picture.

One of the most underexplored and potentially transformative opportunities for African businesses is the adoption of nature-positive strategies, and the time to act is now.

Africa is home to approximately 30 percent of the world’s biodiversity and abundant natural capital forests, wetlands, rivers, grasslands, and coastlines that not only sustain life but also underpin our economies. From agriculture and tourism to manufacturing and finance, our industries depend on healthy ecosystems. Yet, within ESG strategies, nature and biodiversity are often absent.

Discussions about environmental factors tend to focus merely on carbon emissions, energy efficiency, or waste reduction. The broader question of how businesses can actively restore, protect, and regenerate nature is rarely addressed, even though it is arguably more strategic, and this oversight is becoming increasingly costly.

Three forces are converging to make nature-positive business models essential:

1. Regulatory momentum
Global frameworks, such as the Taskforce on Nature-related Financial Disclosures (TNFD) and the Kunming-Montreal Global Biodiversity Framework, are pushing companies to measure, manage, and disclose their dependencies and impacts on nature. What is currently “voluntary” will inevitably become regulatory, similar to the climate reporting we see under the IFRS Sustainability Disclosure Standards.

2. Material business risks
Nature loss is not a remote environmental issue; it is an immediate business risk. Deforestation can disrupt rainfall patterns, threatening agricultural yield. Water scarcity can halt industrial operations, and pollinator decline can affect food production and retail. For companies dependent on natural resources, ecosystem degradation can quickly undermine profitability and supply chain resilience.

3. Strategic growth opportunities
Conversely, nature-positive strategies offer new avenues for growth.

Businesses can access sustainable finance, tap into premium markets, and strengthen their social licence to operate by supporting community-led conservation projects. Emerging sectors such as carbon credits, regenerative agriculture, and ecosystem restoration offer both environmental benefits and commercial returns.

The stakes for African business are high, and ignoring this shift could lead to clear risks for African businesses:

-Loss of competitiveness in export markets where sustainability standards are tightening.

-Reduced access to international capital, since investors increasingly screen for nature-related risks.

-Erosion of community trust and social licence, leading to operational disruptions.

However, acting early offers significant advantages:

-First-mover advantage in emerging green markets.

-Stronger alignment with global supply chain requirements.

-Enhanced brand reputation with environmentally conscious consumers and investors.

Some examples of a nature-positive approach could be a Nigerian agribusiness restoring degraded land through regenerative farming techniques. In addition to improving yields, the project could generate verified carbon credits for sale in global markets, thus diversifying revenue streams and strengthening climate resilience.

Or consider a commercial bank investing in watershed restoration projects.

By securing the long-term availability of water for industries and communities, the bank safeguards its loan portfolio while meeting ESG performance targets.

Even in the energy sector, companies can integrate biodiversity action plans into project development, ensuring that infrastructure is designed to avoid or offset ecosystem impacts.

For the concept of being nature-positive to truly come to life, boards and executives need to take purposeful actions. Evaluate your dependencies and impacts by mapping out your operations and supply chains to pinpoint where your business intersects with nature and where potential risks or opportunities exist.

Define tangible targets: move beyond broad environmental objectives by setting clear, time-specific commitments focused on biodiversity conservation, restoration, or sustainable use of resources.

Collaborate with stakeholders: work alongside communities, governments, and NGOs to design nature-positive initiatives that provide mutual benefits.

Incorporate these actions into your core strategy; view nature-positive efforts not simply as CSR but as a catalyst for innovation, risk management, and enhancing market position.

A call to lead rather than follow

The debate is no longer about whether nature-positive strategies matter. Instead, it centres on whether African business leaders will champion these changes or lag behind. As with climate action, those who delay until regulation demands reform will find themselves scrambling to catch up, often incurring higher costs and facing reduced strategic options.

Remember, nature is not an infinite resource; it is a critical asset that supports our economies, societies, and future well-being. Protecting and revitalising it is not only an environmental duty but also represents a significant business opportunity.

Boards recognising this today and taking bold action will not only shield shareholder value but also claim a competitive edge in an evolving marketplace where sustainability sets the standard for business.

Sarah Esangbedo Ajose-Adeogun is the Founder and Managing Partner at Teasoo Consulting. She is a former Community Content Manager at Shell Petroleum Development Company and served as the Special Adviser on Strategy, Policy, Projects and Performance Management to the Government of Edo State. She is also the host of the #SarahSpeaks podcast on YouTube @WinningBigWithSarah, where she shares insights on leadership, strategy, and sustainable growth.