The Earth system is approaching a tipping point. Coral reefs are in rapid decline and may soon no longer be able to remain viable.
Human-induced climate change is driving ocean temperatures to levels that most corals simply cannot survive. Scientists now warn that unless global warming is limited to around 1.2°C above pre-industrial levels, coral reefs will not survive on any meaningful scale. A tipping point marks the moment when a major ecosystem crosses a critical threshold beyond which severe and often irreversible degradation becomes inevitable. For coral reefs, we are alarmingly close to that point. Other potential tipping points include the dieback of the Amazon rainforest, the collapse of major ocean currents, and the melting of polar ice sheets.

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The hidden value of coral reefs

Coral reefs are not only stunning to look at; they perform vital functions for both nature and society. These are what scientists call ecosystem services: the benefits we, as humans, gain from healthy natural systems.

• Natural flood barriers: Reefs absorb wave energy, protecting coastal communities from storm surges and flooding.
• Sources of food: They provide habitat for countless fish species that serve as key food sources for millions of people.
• Economic engines: Reef-based tourism generates billions of pounds globally each year and supports local livelihoods.
• Hotspots of biodiversity: Reefs host an extraordinary range of life - including species that may hold the key to future medicines and biotechnologies.

With the loss of coral reefs, all these benefits would vanish. The consequences would ripple through societies, economies, and ecosystems worldwide.

Coral reef decline is an example of the connection between climate and nature.

Our planet’s climate has never changed as rapidly as it is now. Species that evolved over thousands of years simply cannot adapt to such rapid shifts in temperature, rainfall, and sea levels. In the case of coral reefs, the link between biodiversity and temperature is direct: once ocean temperatures rise beyond a narrow threshold, corals bleach and die. In other ecosystems, the connections are more complex; but equally alarming.

Rising sea levels are already causing the loss of coastal wetlands that protect communities from floods. Forests are suffering from increasingly severe droughts and wildfires, which in turn accelerate climate change by releasing more carbon into the atmosphere.

Nature and climate are two sides of the same coin. When one is out of balance, the other suffers. Protecting biodiversity means stabilising the climate - and vice versa.

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Why should businesses and investors pay attention to this shift?

Despite mounting evidence, many companies are still flying blind when it comes to nature-related risks.
They may have sustainability targets for carbon emissions, but few truly understand their exposure to the loss of ecosystems.

The truth is: nature risk is business risk.

A hotel chain that depends on coastal beauty could see its tourism revenue decline as coral reefs vanish. A food producer could face higher costs and disrupted supply chains as soils degrade and rainfall becomes erratic. Even financial institutions are exposed - through investments in sectors vulnerable to ecosystem collapse.

But this is also where forward-thinking leadership can make a difference. Rather than viewing nature as a cost or a constraint, leading businesses are beginning to see it as an asset - something to invest in, protect, and value. Understanding how ecosystems underpin operations allows companies to make smarter, more resilient decisions.

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The silver lining: there is still hope.

The scientific community is clear - we are close to critical tipping points, but we have not crossed them all yet.

Every fraction of a degree of warming matters. Every restoration project, every emission cut, every sustainable business decision helps slow or reverse damage.

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How prismo can help

At prismo, we work with organisations to uncover and manage their nature-related dependencies risks.

We help you see the bigger picture:

• How your business relies on natural systems.
• How environmental changes could affect your value chain - now and in the future.
• How you can build strategies that strengthen both your sustainability and your long-term resilience.

By combining data, science, and business expertise, we guide companies from awareness to action - transforming complex environmental risks into opportunities for innovation, resilience, and leadership.

Don’t wait until another tipping point is reached. Start building resilience today.

Book a free consultation with our experts and take your first step towards understanding and managing your nature-related risks.