The agri-food sector significantly depends on well-functioning ecosystems that can provide such services as pollination, biological plant protection and pest control, water regulation, soil formation, erosion prevention etc. However, the biodiversity and landscapes that provide these critical ecosystem services are being depleted and degraded at unprecedented rates, in large part by the agri-food sector itself, causing further problems in terms of human health and livelihoods.
This constitutes a significant risk to business operations. To mitigate this risk, there is a serious need to address:
a lack of awareness of the dependencies of agri-business on ecosystems and biodiversity, and
the treatment of nature as a 'public good' implying that, although environmental stewardship has a social net benefit, individual private agents (such as farmers and agri-businesses) are not incentivized to conserve nature.
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