Large swathes of the global economy are heavily dependent on the fertilization of crops by pollinators.
Much of this vital pollination is performed by insects, but these creatures are under serious threat from climate change and environmental degradation. The impact of pollinator numbers falling even further will ripple through to many sectors. While it is clear how pollinator decline will impact agriculture and consumer goods, there will also be serious repercussions for the pharmaceutical and financial services sectors.
Insect numbers are falling rapidly due to changes in their environment
Across the world, insect populations are declining massively. From anecdotal evidence around the number of bugs splattered on modern windscreens compared with those from 30 years ago to thorough academic assessments, this change is being observed by people everywhere.
A research paper published in 2017 studied flying insect biomass in German nature reserves over a period of 27 years. The researchers found a 76% decline in this biomass with no obvious single explanation.
Instead of one particular reason for their population decline, scientists believe insects are suffering from several major environmental threats at the same time. Firstly, there is the big baddie: climate change. Global warming is driving up temperatures, altering rainfall patterns, and increasing the frequency of extreme weather events—all of which are damaging to insects across the world. The British Ecological Society claims that plants are altering their seasonal timings in response to climate change four times faster than insects can adapt, adding even more pressure.
Another factor contributing to insect decline is the rise of intensive agriculture. The massive use of synthetic agrochemicals—neonicotinoid pesticides, in particular—has devastated insect populations in many parts of the world. In many cases, nectar infused with neonicotinoids is directly toxic to pollinators like bees, but it can also cause sublethal impacts like disruption to motor functions. The UK government banned the use of neonicotinoid pesticides in 2018 but has used a loophole to grant sweeping exemptions every year from 2021 to 2024. As a result, pollinators in the UK are still suffering heavily from intensive agrochemical use.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataGlobal food supply chains will suffer dramatically from pollinator loss
Insects are estimated to make up 75% to 80% of all known animal species. If this rate of decline continues across the world, global biodiversity will be decimated. This is a sad prospect for nature lovers everywhere—but also an incredibly dangerous one for the global economy. Many sectors rely heavily on pollinators to provide ecosystem services, often without even realising the extent of this dependence.
Agriculture is the most obvious of these. According to UK Research and Innovation (UKRI), over 75% of globally important crops rely on animal pollination. While grain crops like barley and wheat do not require pollinators, most other fruits, vegetables, nuts, and beans do. As such, insect decline could seriously destabilise global food supply chains. This impact would ripple through to the consumer and foodservice sectors, damaging their supply chains and business models.
Other sectors will face unexpected consequences from declining insect populations
The medical sector also has an unexpected reliance on animal pollinators. According to Springer Nature, around 25% of pharmaceuticals today are derived from medicinal plants, particularly those found in tropical rainforests. Straits Research estimates that this plant-derived drug market was worth $41bn in 2024. Tropical rainforest trees and plants are often dependent on animal pollination, so continued insect decline will see many potential pharmaceuticals go undiscovered—and the market’s potential revenue go unrealised.
The impact of pollinator decline will also be unexpectedly harsh in the financial services (FS) sector. Financial institutions rely on animal pollination in several ways, most notably through their activities in the agriculture and consumer sectors. FS companies that invest in agribusinesses, lend to farmers, or underwrite crop insurance will be massively exposed if insect decline causes agricultural production to fall. Similarly, financial institutions that are tied to the foodservice or consumer sectors will be heavily impacted if these companies’ revenues fall.
On top of this, FS companies that provide sustainable finance and green bonds may find that some of these products are directly tied to ecosystem and pollinator conservation.
To maintain the global economy’s stock of natural capital, we must protect pollinators
Pollinators also contribute to ecosystem services that support human habitation across the world. By fertilising trees and keeping forests healthy, pollinators allow these forests to purify drinking water, remove pollution from the air, and reduce the risk of flooding. This means that bees, butterflies, and other pollinators contribute vastly to the world’s natural capital. Natural capital is the stock of natural assets within an ecosystem that provides value to society. To maintain the global economy’s stock of natural capital, we must protect pollinators—through both policy and private sector initiatives.
