For several years there has been a constant flow of research on the topic of pollinator decline and the economic and food security impacts that this could have. This report aims to distil the current research and to determine if this is a material issue for companies with exposure to agricultural produce within their supply chain.
By determining the yield dependency on animal pollination economists have found that pollinators contribute around £130 billion to the global economy (a service that is predominantly provided for free) but that should this service be lost then the consequential impacts on food prices would mean a consumer surplus loss of between £160 to £260 billion in addition to the £130 billion of pollination service that would be lost.
At the corporate level this is clearly an issue that is likely to affect cash flow because of the impacts on raw material prices and is therefore a topic that should be addressed by companies that have exposure to agricultural produce or pollinator habitat. However the report suggests that there is limited focus on this specific issue by the companies assessed, though there is a broader, and growing, recognition of the economic value of maintaining biodiversity and ecosystem services within the supply chain.