By Caesar Balona, Head: Risk Intelligence & Engineering at Old Mutual Insure

Biological diversity refers to the variety of life on Earth. It includes all living organisms, from the smallest microbes to the largest mammals, as well as the ecosystems they form and the genetic differences within species. It is the foundation of healthy ecosystems, clean water, fertile soil, food systems, and climate stability. Without it, the systems that sustain human life and economic activity begin to weaken and fail.

For South Africa, biodiversity is not only an environmental concern but a national economic and social asset. As one of the world’s megadiverse countries, South Africa is home to extraordinary species richness, high levels of indigenousness and globally significant ecosystems. It ranks among the top countries globally for plant diversity and marine endemism and contains internationally recognised biodiversity hotspots and critical wetland systems.

Yet this natural wealth remains under sustained pressure. Habitat loss, climate change, pollution, and unsustainable land use continue to degrade ecosystems that communities and industries depend on. The consequences are increasingly visible in water scarcity, reduced agricultural resilience, biodiversity loss, and rising climate related risks.

This reality formed the backdrop to South Africa’s hosting of the International Day for Biological Diversity 2026 in Johannesburg last week. The event marked a historic milestone, as South Africa became the first Member State to host the flagship global commemoration under the United Nations Convention on Biological Diversity.

Led by Deputy Minister Narend Singh under the theme Acting Locally for Global Impact, the gathering reinforced a central message that echoed throughout the discussions. Biodiversity protection cannot be confined to commemorative days or symbolic moments. It requires continuous, intentional decision making by governments, businesses and individuals.

That message is particularly important in a world where environmental pressures are no longer abstract risks but lived realities affecting economies, infrastructure, and livelihoods. The event highlighted that biodiversity loss is not only an ecological issue but also a development, resilience, and financial stability challenge.

For companies such as Old Mutual Insure, these realities are already embedded in our operating environment. From an insurance perspective, healthy ecosystems act as vital natural infrastructure that stabilise our understanding of the behaviour of floods and wildfires. When these ecosystems degrade, we face heightened environmental volatility, introducing increased uncertainty into our climate and geophysical models. Protecting biodiversity is therefore not separate from business performance but a risk-stabilisation strategy that keeps our underwriting models reliable and our pricing accurate.

The global theme, Acting Locally for Global Impact, is strongly aligned with South Africa’s National Biodiversity Strategy and Action Plan 2026 to 2036, which is designed to translate international commitments into measurable national action. The strategy emphasises a whole of society approach, which aims to bring together government, communities, science, civil society, and the private sector.

South Africa already has a success story in its Biodiversity Stewardship Programme, which stands out as a leading case study of conservation success. Over the past two decades, approximately 2.76 million hectares have been secured across hundreds of sites, representing the majority of terrestrial protected area expansion. This demonstrates that meaningful conservation outcomes are already being achieved through collaboration between landowners, communities, and government.

These initiatives are about protecting landscapes, safeguarding water sources, strengthening food systems, supporting tourism, creating employment opportunities, and building resilience in vulnerable communities. In this sense, biodiversity protection is deeply connected to sustainable development.

Community led conservation continues to play a critical role. Across the country, local stakeholders are actively restoring ecosystems, managing natural resources, and protecting biodiversity corridors that support both ecological integrity and economic activity. These efforts demonstrate that conservation is most effective when it is rooted in local participation and shared benefit.

For the private sector, the call to action is clear. Biodiversity must be integrated into core business thinking, not treated as an external or reputational issue. The private sector holds significant investment, capital, and social power. It has a responsibility to use this systemic leverage to support physical mitigation on the ground through supporting community resilience programmes, enabling nature positive initiatives, and helping clients and communities better understand and manage environmental risk.

Protecting these natural resources is ethically correct, but it is also a commercial necessity. If our local ecosystems collapse, the South African economy and our client base collapse with them. By aligning our underwriting and investment strategies with environmental resilience, we are protecting the long-term survival of the market we serve.

As South Africa reflects on the outcomes of the International Day for Biological Diversity 2026, one message stands out. Awareness alone is no longer sufficient. The real measure of progress lies in daily choices that either protect or degrade natural systems.

Biodiversity is not a once-a-year priority. It is a continuous responsibility that underpins economic stability, social wellbeing and environmental resilience. The urgency is clear. The opportunity is collective action.