The world stands at a critical juncture, with land degradation threatening not only the environment but also the global economy.
As droughts surge and nearly 40% of the planet’s land loses productivity, business leaders at the UN Convention to Combat Desertification (UNCCD) in Riyadh, Saudi Arabia, are being called upon to integrate sustainable land management into corporate and financial strategies.
According to UNCCD, land degradation could slash global GDP by $23 trillion by 2050. Reversing this trend, however, would cost a fraction of the potential losses of about $4.6 trillion.
Speaking at the Business 4 Land (B4L) Forum during the COP16 conference, UNCCD Executive Secretary Ibrahim Thiaw underscored the importance of private-sector involvement. “They provide a critical momentum to make sustainable land management a core part of corporate and financial strategies,” he said.
The conference highlighted alarming statistics: since 2000, the frequency and intensity of droughts have surged by nearly 30%, jeopardizing agriculture, water security, and biodiversity. Without intervention, these issues will have devastating consequences for businesses, livelihoods, and ecosystems.
Businesses are being urged to pivot toward nature-positive operations. “Shifting towards nature-positive operations, supply chains, and investments, is not only about environmental sustainability,” Thiaw said, “but about the long-term profitability and resilience of businesses.”
The COP16 summit has already secured significant commitments, with $12 billion pledged to land restoration efforts. The Arab Coordination Group contributed $10 billion, while the OPEC Fund and the Islamic Development Bank each committed $1 billion to the Riyadh Global Drought Resilience Partnership. Saudi Arabia provided an additional $150 million to operationalize the initiative.
Collaboration Across Sectors
Henri Bruxelles, Chief Sustainability Officer of Danone, emphasized the importance of multi-sector collaboration in tackling intertwined climate, water, and food security challenges. “Collaborating across sectors of society is vital to address the intertwined climate and water challenges,” he said, highlighting the need for sustainable food systems and support for farming communities.
Philippe Zaouati, CEO of the MIROVA sustainable investment fund, also pointed to the economic opportunities tied to sustainable practices. “Companies stand to gain significantly by transforming their value chains to incorporate sustainable practices,” he said. Mobilizing funding, he added, requires “a concerted effort by the public and private sectors.”
The Business 4 Land (B4L) initiative is at the forefront of these efforts, helping companies and financial institutions manage risks associated with land degradation. Its ambitious goal is to restore 1.5 billion hectares of degraded land by 2030 and achieve Land Degradation Neutrality (LDN) — a global commitment to balance land restoration and degradation.
By enhancing drought resilience and adopting sustainable water management practices, the initiative aims to secure food systems, mitigate climate risks, and protect biodiversity.
“Drought and land loss will have dire consequences,” UNCCD warns, calling on the private sector to play a decisive role in turning the tide. The success of efforts like B4L hinges on collaboration, innovative funding models, and the willingness of businesses to prioritize sustainability over short-term gains.
As the world’s land resources face mounting pressure, the COP16 conference stands as a pivotal moment for global leaders to address these challenges. With significant funding commitments and the participation of influential private-sector entities, the groundwork is being laid for a more sustainable future.
