Damage to the natural environment is slowing the UK economy and could have a bigger impact on GDP than the global financial crisis or Covid-19 - according to a new report led by the Green Finance Institute. 

The report warns that the farming sector is facing higher levels of nature-related financial risk and labels the declining health of soils - which are vital for food production - as a "chronic" and "ongoing" risk. It also warns of the impact of declining pollinator numbers.

In response to the findings, the Soil Association is calling for investors and governments to back nature-friendly farming.

Soil Association Policy Director Brendan Costelloe said: "This report shows that we cannot survive without nature and highlights the folly of investing in industrial farming practices that deplete the wildlife we depend on to produce food. UK food production, and every business which depends on that, is threatened by the catastrophic declines in wildlife we are seeing and by degradation of one of our most vital resources for survival – soil.

"Farmland makes up 70% of Britain and we can't fix the decline in nature and reduce the associated financial risks without a transformation in food and farming. Many farmers are working with nature and many more are keen to do. But we remain too dependent on over-intensive, chemical-reliant methods that destroy habitats such as industrial livestock systems fed on imported soy.

"These new findings are a rallying call to investors to back nature-friendly farming. If they want to safeguard our precious natural capital and secure long-term returns on their investments, they must divest from agricultural practices that drive biodiversity decline, and invest in agroecological and organic farming that allows food production and nature to flourish together, while also delivering resilience in the face of climate change.

"It is also vital that the government acts on its promise to deliver a land use framework, which can help to scale agroecological farming across the country and give greater protection from harmful farming to sensitive locations. The consequences of not acting now are dire, for the whole of society."