How do you track your impact on biodiversity?

Understanding and monitoring biodiversity impact is crucial. By assessing and addressing your impact on the environment and ecosystems, you can contribute to the conservation of biodiversity and create a more sustainable future for all. It's a responsibility that benefits both your business and the planet.

Biodiversity impact refers to the consequences of human activities and environmental changes on the variety and abundance of species, ecosystems, and genetic diversity. It assesses how these changes affect ecosystem functioning, human well-being, and the planet's health, making it a key indicator for ecological and societal sustainability.

I think "biodiversity" is a concept that has been used so often that people don't always remember what it exactly means. However, it is critical to understand how you define it before you start thinking of how your company can track impacts and potentially take action. Biodiversity usually refers to the number of different species in a given ecosystem, but we could also consider intra-species diversity and ecosystem diversity. The concept of "naturalness" is also key. There is a low level of naturalness in a zoo but a high level of biodiversity. Conversely, biodiversity is low in a desert but the few species are rare, fragile and probably worth protecting. Finally, let's remember that corporates can have a positive impact.

The impact on biodiversity can be measured in multiple ways, and it's always best to look at previous examples. There are a lot of things that we might not consider for a process, and checking with people who have already been through this is a great help.

Biodiversity is also the key of creating sustainable green spaces, it does not matter if it is on ground level or roof or in green walls. If we create an ecosystem, we will share the resources in the best equitable way between the inhabitant species. They will help each other to survive, to develop. Sometimes for high biodiversity and naturalness we must create ideal and various conditions for most of them end let nature to do the rest without major human intervention. One operation is allowed: to control the invasive species.

We need nature to survive. This is unquestionable. As we're a part of nature, and not above it, we have to put it first, rather than profits.

Biodiversity impact isn't just a moral and environmental concern; it's an integral part of business sustainability. Addressing this impact is a strategic move that benefits the environment, your organization, and society at large. It aligns with regulatory trends and stakeholder expectations, mitigates risks, and opens doors to innovation and differentiation. Every business should consider its biodiversity impact as a fundamental aspect of responsible corporate citizenship.

The estimated global value generated by ecosystem services every year is 33 trillion US dollars, a third of the global GDP. It is also worth pointing out that most of the value created by companies relies in one way or another on well-functioning ecosystems. In fact, we all talk about climate change every day but biodiversity loss is probably an even bigger threat than global warming. At a corporate level, there are reasons why it is beneficial to track biodiversity impacts: 1) Increase resilience: understand the impact biodiversity loss could have on your operations. 2) Anticipate regulatory changes following the EU Nature Restoration Law and COP 15 - Biodiversity Conference to name a few. 3) Internal and external brand positioning.

Biodiversity impact is vital due to its role in ecosystem health, economic value, cultural significance, scientific discoveries, resilience to climate change, and ethical responsibility. It underpins food security, balances ecosystems, and enhances quality of life, making it a critical component of global interconnectedness and a moral imperative for the well-being of our planet and future generations.

We often take the benefits of biodiversity for granted, as humans we depend on biodiversity in myriad ways. Biodiversity provides us with many services, from the food we eat to the raw materials we use. Ecosystems provide us with clean air, water, and fertile soils, while protecting us against flooding and heat waves.

Reporting on biodiversity without proper measurement of impacts is meaningless. It is essential to include the impacts of activities on biodiversity throughout an organisation's entire supply chain. Just like tracking and measuring scope 3 emissions for climate change along the entire supply chain, biodiversity impacts should also be comprehensively and holistically measured. Failing to do so not only undermines business sustainability and continuity but also misses the opportunity to accurately calculate the conservation and restoration efforts required to ensure the functioning of ecosystems that we all depend on.

Measuring biodiversity impact is a complex yet crucial task for organizations committed to sustainability. The choice of indicators, metrics, and frameworks should align with your goals, resources, and the specific context of your operations. Striking the right balance between rigor and practicality is key to understanding and addressing your biodiversity impact effectively. It's not just about compliance; it's about contributing to the preservation of our planet's natural heritage.

To track your impact on biodiversity, start by defining your goals and collecting initial data about the environment. Then, choose a few clear indicators (like counting species or checking the health of habitats) and set up a simple plan for regular check-ups. Use technology when needed, and involve local experts and communities. After collecting data, look for trends and share your findings. If you notice negative impacts, adjust your practices. This process helps you take care of nature and shows your commitment to protecting the environment.

I think this is the tricky bit. A ton of CO2 is a ton of CO2, wherever on Earth you live. Measuring biodiversity however is terribly complicated, even more so when you want to do it at the company level and include the impact of your supply chain. A few start-ups (Nala or Natcap for example) and consulting firms (BCG Gamma notably) are trying to crack this problem by developing AI-powered software. This will certainly become a huge market in a few years. On the ecosystem side, scientists are making tremendous progress, using AI, computing technology or DNA sampling. A start-up like NatureMetrics offers to bring nature-related data into the boardroom. However we have not defined common metrics for biodiversity yet.

Measuring Biodiversity and the impact we have on, it isn't straightforward. It differs from measuring carbon emission which has the same impact everywhere. Impact on Biodiversity is local, interconnected with other ecosystems, and therefore impossible to address universally.

Biodiversity impact reporting is a critical component of responsible corporate citizenship. It's not just about showcasing achievements; it's about taking accountability for our environmental footprint. Transparency, accuracy, and commitment are essential for driving real change and fostering a sustainable coexistence with our planet's diverse ecosystems.

Reporting biodiversity impact involves defining objectives, collecting baseline data, selecting indicators, creating a monitoring plan, and analyzing data. The process culminates in interpretation, stakeholder engagement, and transparent reporting. Adaptation of practices based on findings ensures ongoing environmental protection and sustainability.

Biodiversity disclosure needs to catch up to climate reporting. In 2022, 18,600 companies disclosed climate change data through CDP (a 42% increase from 2021), but only 1,000 companies disclosed data on forests (a 20.5% increase from 2021). It is already possible to use the frameworks developed by CDP to report impacts on certain ecosystems, mainly forests, but they do not offer a comprehensive framework yet. The most interesting initiative is the Task Force on Nature-related Financial Disclosures, building on the experience of the TCFD. After 2 years of work, the TNFD released its recommendations on September 18th, 2023. The adoption phase is starting and a call for early adopters was made, don't miss the train!

Improving biodiversity impact is not just an ethical obligation; it's a strategic imperative. Biodiversity loss poses a significant risk to our planet's health, as well as to the sustainability of businesses. Embracing biodiversity enhancement is an opportunity to drive innovation, enhance resilience, and bolster reputation while contributing to a more harmonious coexistence with nature. It's about doing well by doing good.

I think we can use the Avoid-Reduce-Compensate sequence. 1) Avoid. Understanding which of your activities are generating the largest negative impact on biodiversity will allow you to think of alternatives. They will probably fall into one of these categories: procurement, partnerships, suppliers, real estate strategy, and distribution. 2) Reduce. If you can't avoid, at least you must reduce. R&D probably plays a critical role here, to allow companies to adapt the processes to new realities (regulations, customer expectations). 3) Compensate. Make sure that the heavy lifting has been done before reaching this point as it is never possible to fully compensate for damage caused on nature. Partnering with nature conservation NGOs is key.

Improving biodiversity impact involves a multifaceted approach, encompassing strategies such as habitat restoration, sustainable land use, invasive species control, protected areas establishment, and biodiversity education. Regular monitoring and research inform adaptive management, while collaboration with stakeholders and communities fosters collective efforts. Sustainable agriculture, reforestation, pollution reduction, legal compliance, corporate responsibility, conservation finance, and policy advocacy are essential components in preserving and enhancing biodiversity. This comprehensive commitment seeks to mitigate negative environmental effects, protect critical habitats, and promote the well-being of ecosystems and species.

I believe it's imperative to increase awareness regarding the biodiversity crisis and engage in discussions within our organization. Just as we've done with carbon emissions and climate change, we must now involve everyone in addressing biodiversity loss and integrate it into our corporate strategies.