Why Nature Is the New Driver of Competitiveness in Latin America

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Did you know that more than half of the world’s GDP depends directly on healthy ecosystems? ¿Sabía que más de la mitad del PIB mundial depende directamente de ecosistemas saludables? In an increasingly volatile global environment, business stability no longer depends solely on financial performance. Today, true business resilience is intrinsically linked to the health of our biodiversity.

During the recent webinar organized by FUNDES and Innovate for Nature, industry leaders explored how nature-based solutions are transforming value chains. As Mauricio Ramírez, Managing Director of FUNDES, explained:

“Our goal is to make the solutions we can accelerate available to industries, connecting them with their needs and value chains. We want to promote green and blue economy models that sustainably integrate MSMEs.”

One of the cornerstones of the partnership between FUNDES and Innovate for Nature is the role of disruptive innovation. Bárbara Dubach, Executive Director of Innovate for Nature, emphasized that meaningful transformation requires strategic collaboration:

“We cannot transition to a regenerative economy on our own. We need to connect innovative startups with investors and corporations. The disruptive solutions that large companies need are, in most cases, coming from smaller businesses that are leading the nature-positive transition.”

Methodologies for Business Resilience and Growth

For decades, sustainability was viewed primarily as a matter of reputation. Today, however, experts from the Taskforce on Nature-related Financial Disclosures (TNFD) warn that nature loss represents a systemic business risk. When soils degrade or water becomes scarce, supply chains break down.

Key insights for understanding this new business landscape:

  • Real dependence: 100% of the economy depends, directly or indirectly, on nature.
  • Strategic location: Unlike carbon emissions, nature-related impacts are local. A drought in a specific watershed can halt an entire industrial operation.
  • From mitigation to regeneration: It is no longer enough to minimize harm. Markets increasingly reward companies that actively regenerate the ecosystems where they operate.

“One hundred percent of the economy depends on nature. Companies need to understand that this is no longer just a reputational issue—it is a financial risk. Without water, vineyards cannot produce grapes; without natural resources, infrastructure cannot operate. TNFD provides the framework to manage that reality,” said Alan Gómez, TNFD Lead for Latin America and the Caribbean.

Carlos Álvarez Pereira, Secretary General of the Club of Rome, noted that Latin America has a unique opportunity to lead a regenerative development model for the world, thanks to its extraordinary natural wealth and biodiversity. The key, he argued, is a shift in business mindset.

“This is not only about technical solutions; it requires a change in mindset. We must see ourselves as stewards of nature, not simply its users. That means making nature an integral part of business strategy.”

“What isn’t measured isn’t managed. Companies need to begin measuring both their impact on nature and their dependence on it. Frameworks such as TNFD help organizations systematize this information and report it transparently.”

A recording of the webinar is available 100% free on FUNDES’ YouTube channel.

Nature is not a barrier to growth; it is Latin America’s greatest competitive advantage. Organizations that succeed in embedding the regeneration of their ecosystems into their DNA will not only be the most resilient, but also the most profitable and respected in the new global economy.

Your knowledge and sustainable practices can be part of a major regional study

As part of the partnership and the impact that FUNDES and Innovate 4 Nature aim to achieve in the region, we are conducting a survey to assess the current level of integration of nature into companies’ strategies and operations.

Your participation is key to gathering evidence and guiding better business decisions. You can access the survey through this link.