From targets to action: how business can bring planetary health into the boardroom

The State of Nature and Climate briefing was launched by the World Economic Forum, the Potsdam Institute of Climate Impact Research (PIK) and the CDP – designed to offer a global stock take on the health of the planet. Image: World Economic Forum
- Six of the nine planetary tipping points have been breached, and a further one is at imminent risk.
- There is a clear link between the actions of business and environmental health.
- But there is a mismatch between escalating environmental risks and the climate activities and mitigation strategies that business is using to respond.
Designed to offer a global stock take on the health of the planet, the State of Nature and Climate briefing was launched by the World Economic Forum, the Potsdam Institute of Climate Impact Research (PIK) and the CDP.
This type of planetary data check has historically been something that scientists have considered every six to eight years. The rapid decline in the planet’s resilience to environmental pressures has prompted a shift to continual monitoring, facilitated by the launch in 2024 of the annually updated Planetary Health Check.
The effects of a declining planetary health
Speaking at the launch in Davos 2025, PIK’s director Johan Rockström, presented the latest findings, which point to irreversible decline for the planet. But there is still a small window of time to turn things back, he says. If we do, the situation can likely be salvaged, and the planet could restore itself.
With forecasts suggesting an 18% decline in global GDP by 2050 as a result of increasing environment-related problems (for example, the cost of extreme weather events, reduction in productivity as a result of escalating temperatures, and higher costs in sectors like health and insurance), the planet’s health is an issue for all of us.
And considering that more than 60% of the world’s GDP comes from the private sector, a figure that rises to 80% in the US, the link between what business does and how the environment fares couldn’t be clearer.
Continued concern for the planetary tipping points
Thanks to Rockström and collaborating scientists work, the concept of Earth system tipping points is now well known. What is becoming ever-more evident is the link between these tipping points and economic health. Rockström showed that the past 10 years have highlighted the planet’s faltering ability to restore itself. Six of the nine planetary tipping points are already operating outside safe limits, and research reveals that their condition – as well as that of the ‘safer’ tipping point related to ocean acidification – is deteriorating.

The initiative is based on the idea of placing the latest data on planetary health alongside data on corporate action. Sherry Madera, CEO of the CDP, who presented alongside Rockström, suggested that “targets are yesterday,” and instead argued that the focus needs to shift to data on transitions, calling on business to highlight how its targets are going to be met. This suggests an onus to, as Madera put it, “bring the planet into the boardroom,” underscoring a need to track and trace, and create KPIs that go all the way to the highest echelons of business.
What data reveals about business action
There’s a lot of work to be done. The analysis reveals that just 10% of corporates demonstrate tangible action to address the climate emergency, and only 1% perform at the highest assessment level. And yet, those companies analysed represent 67% of global market capitalization. Clearly, activity on their part to address climate change stands to have a dramatic effect.

To this end, the initiative has identified four levers, which notably, must be enacted simultaneously to have the desired effect. These are:
- A 1.5°C-aligned climate transition plan and the ability to track this
- Placing a price on carbon internally
- Linking executive pay to climate plans and goals
- Engagement throughout the value chain (it is not just about your own business but who it is that you are buy from along that value chain)
Businesses are acting, but just not swiftly enough. The initiative has assessed progress to date, dividing data into five areas: disclosure, target setting, governance, strategy and progress. The area where most progress is being made is in disclosure, with 93% of companies reporting at least Scope 1 and 2 emissions (although there are gaps for Scope 3). The figures are similarly high for board oversight of climate issues, while just over one-quarter of businesses assessed have set an internal carbon price. What’s evident from the data is the need for more cohesive strategies. As soon as other aspects of disclosure are considered, such as those related to nature, the figures drop dramatically.
Mismatch between environmental risks and business plans
Perhaps the most significant problem with tipping points is the effect of their deterioration doesn’t hit economies overnight. As Rockström highlighted, they are slow variables. But the forecasting is there, as are the early environmental signs of their poor health in the form of extreme-weather events.
By placing the most up-to-date scientific data alongside data on corporates, science can be used to better inform their environmental activities and policies, from where risks can be more judiciously aligned. In doing so, we can move from our current situation where the risks from declining planetary health are rising rapidly, but action to mitigate these is falling far short.
But for Rockström these aren’t simply “economic questions; I’d call them strategic questions for our survival as humans on earth.”
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