Three business cases that could link biodiversity and finance in agriculture

Agriculture can be a tool to combat climate change and boost resilience, if practices are shifted towards restoring soil health, enhancing biodiversity, and sequestering carbon. But financing this transition remains a critical barrier.

“We need to highlight the connection between integrating biodiversity into the business model and the risk reduction it entails,” said Centre director Beatrice Crona, co-lead of the programme FinBio, at the report launch. “It is about recognizing multiple ways to invest in biodiversity.”

The new report builds on a series of workshops that brought together representatives from research, farming and the financial sector as well as experts working with business development and the development of measurement, reporting and verification practices.

In the workshop, participants ranked three business cases highest in terms of market readiness and impact potential.

1. Baseline databank for banks

Financial institutions need better data to assess nature-related risks when issuing loans to agricultural businesses. A comprehensive databank including indicators such as carbon sequestration, biodiversity, land value and economic performance could help evaluate loan credibility and risk. In the long run, this could steer investments toward more sustainable production systems through differentiated interest rates.

2. Baseline databank for insurers

Insurance providers face similar challenges when assessing risk in agricultural systems. Access to reliable environmental data could enable more accurate pricing of insurance premiums. Farms with stronger biodiversity and soil health indicators may face lower risk and therefore qualify for lower premiums.

3. Monitoring, Reporting and Verification (MRV) systems for biodiversity claims

Companies across the food value chain increasingly need to demonstrate credible positive environmental impact. A standardized MRV system for biodiversity monitoring on farmland could help companies document and communicate their contributions while identifying areas where biodiversity is under pressure. Transparent and verifiable data can strengthen consumer trust, support sustainability claims and reduce the risk of greenwashing.

The findings of the report were presented in a seminar at Kungl. Skogs- och Lantbruksakademien on 25 March 2026.

Read the full report ”Potential Business Cases in Measuring Biodiversity State and Impact in Agriculture” on the Mistra FinBio website.