Wales must fundamentally rethink how it heats homes, grows food, travels and uses land if it is to avoid worsening climate and nature emergencies, according to Natural Resources Wales.

The warning has been issued by Neil Sachdev, the new Chair of NRW, as the organisation publishes its major new assessment of the nation’s environment ahead of the Senedd elections.

NRW’s State of Natural Resources Report (SoNaRR) 2025, produced under the Environment Act, provides a detailed picture of how sustainably Wales is managing the natural resources it relies upon, including water, air, land, seas, wildlife and green spaces.

While some progress has been made since the last report in 2020, NRW says Wales’ natural environment remains at a critical tipping point.

The report finds that nature across the country is under sustained and intensifying pressure from climate change, pollution, habitat loss and unsustainable land use. Almost one in five species is now at risk of extinction, only 40% of water bodies achieve good ecological status, and ecosystem resilience remains low in many areas. NRW also warns Wales is using more than its fair share of global natural resources.

Targeted interventions such as peatland restoration, new air quality legislation, the Sustainable Farming Scheme and the Wales Metal Mines Programme are beginning to address some long-standing challenges. However, the report concludes Wales is still consuming and degrading natural resources faster than they can be replenished.

NRW says the pressures are systemic, embedded in everyday life and infrastructure – from transport and food production to housing, energy use and investment decisions.

At a launch event in Cardiff, NRW and the Office of the Future Generations Commissioner have called on policymakers to use the evidence in SoNaRR to drive bold and transformative change, restoring nature while building a fairer and more resilient economy.

A key part of the report is a co-produced chapter titled Bridges to the Future, which sets out a roadmap for change across food, energy, travel and the built environment. It is based around a “Five Bridges” framework: redesigning everyday systems, restoring nature as essential infrastructure, building a regenerative economy, realigning governance for the long term, and delivering a fair transition.

Speaking at the launch at Cardiff University’s Spark Innovation Campus, Neil Sachdev is expected to say the most damaging pressures on nature are not confined to environmental policy but are built into how society functions.

“If Wales is to remain a place where people and nature thrive, we must change the systems themselves – not just manage their impacts,” he will say, adding that restoring nature is a whole-society challenge requiring shared responsibility across public bodies, business, communities and citizens.

Future Generations Commissioner Derek Walker said nature is one of Wales’ strongest allies in preventing flooding, reducing pollution and protecting health, warning that without urgent action the consequences will fall hardest on disadvantaged communities and future generations.

Deputy First Minister Huw Irranca-Davies, who has responsibility for climate change, welcomed the report and said its findings will play an important role in shaping future natural resources policy.

He said protecting and enhancing nature is essential for people today and for generations to come, adding that Wales has made progress but must go further.

The State of Natural Resources Report (SoNaRR) 2025 is now available, with the Bridges to the Future briefing for policymakers due to be published on 29 January.