A new report from Barclays has issued a stark warning to the global mining and power industries: the accelerating loss of nature and ecosystems could reduce company earnings by as much as 25% over the next five years. The analysis highlights how biodiversity decline, deforestation, and climate-driven disasters are no longer abstract environmental concerns, but direct financial risks to major industrial players.

The study points to a range of factors contributing to this potential profit hit. Extreme weather events—such as floods, droughts, and storms—are disrupting supply chains and damaging infrastructure. Degraded ecosystems reduce the availability of critical resources like water, while stricter environmental regulations are driving up compliance costs. For industries heavily dependent on land and natural resources, these risks are especially acute.

Mining companies face mounting challenges as habitat destruction and water scarcity increase both operational costs and reputational pressures. Power firms, many of which rely on natural systems for cooling water and raw materials, also face vulnerabilities. In addition, investors are paying closer attention to nature-related financial disclosures, pushing companies to integrate ecological risk into their long-term planning.

Barclays’ findings arrive amid growing global recognition of the economic value of biodiversity. The World Economic Forum estimates that more than half of global GDP depends on nature, underscoring that ecological collapse poses systemic risks to the economy. As such, the report urges mining and power companies to take proactive steps—such as restoring degraded land, investing in water efficiency, and diversifying energy sources—to safeguard both profits and ecosystems.

The message is clear: nature loss is not only a crisis for the environment but also a threat to business continuity. For industries built on resource extraction and energy production, adapting to this new reality will be essential. By treating biodiversity as a material risk, companies have the opportunity not only to mitigate losses but also to lead in the transition toward a more sustainable and resilient global economy.