Businesses must do more to understand and address “natural capital” risks, Allianz Global Corporate & Specialty (AGCS) has warned.

Degradation of natural resources such as air, soil, water, biodiversity and living organisms has long-term consequences that extend beyond direct effects on the environment, it says.

Businesses can expect increased interruption and liability risks.

“Natural capital risks are today’s reality,” an AGCS report says. “Companies need to improve their understanding of natural capital risk and use existing insurance and risk management systems to adapt to and mitigate the threats.

“Companies that are willing to invest in natural capital risk management will be best-equipped to keep damages under control and seize opportunities in an increasingly resource-constrained world.”

AGCS says the top 100 environmental impacts cost the global economy about $US4.7 trillion ($6.2 trillion) a year in social costs, lost ecosystem services and pollution.

Mining, transport, oil and gas, and food and beverage rank highest in terms of risk exposure to natural capital depletion, the group says.

“With threats to the environment coming from many different areas, there will be no such thing as business as usual in the future,” Environmental, Social and Governance Business Services Manager Chris Bonnett said.

“Companies need to understand, quantify and even monetise their dependence on natural capital and the impacts their operations have on it, to ensure their organisations are resilient and future-proof.”