How to Integrate Biodiversity into Corporate Sustainability

Written by Kamila Reczyńska, Biodiversity Expert, Researcher

Businesses, in general, rely heavily on numerous ecosystem services while simultaneously exerting significant pressure on natural capital, contributing to biodiversity loss. To ensure long-term resilience and responsible growth, a shift towards a sustainable strategy is crucial – with biodiversity serving as a key component of such a strategy.

What is Biodiversity?

To begin, it’s important to remind the concept of biodiversity. According to the definition presented in the United Nations Convention on Biological Diversity, it is "the variability among living organisms from all sources, including, inter alia, terrestrial, marine and other aquatic ecosystems and the ecological complexes of which they are part: this includes diversity within species, between species and of ecosystems". But what does it actually mean?

  • Within species diversity – this level of diversity covers genetic variety found within species; this ability allows the population or species to adapt and evolve in response to changing environments and natural selection pressures
  • Between species diversity – species diversity refers to the number, types, and distribution of different organisms present in a specific area, encompassing all groups of fauna, flora, fungi, and bacteria. Beyond the large organisms we typically associate with biodiversity – such as birds, mammals, fish, or trees – this aspect of diversity also includes an innumerable array of microscopic organisms. These often play key roles in the ecosystem, performing essential functions that enable ecosystems to fulfill their vital processes.
  • Ecosystem diversity – encompasses the full range of habitats and the plant, animal, and fungal communities found within a specific geographic area. The value of this diversity is not determined solely by the number and area of habitats, but rather by their degree of naturalness and alignment with distinct physical and geographical conditions.

These definitions highlight the complexity of biodiversity, which should always be considered when evaluating potential and actual impacts of businesses. Biodiversity means far more than the number of species and habitats’ area. It is an essential and integral characteristic of nature that enables ecosystems to be productive, resilient and able to adapt.

What is Not Considered Biodiversity?

Equally important issue is to distinguish what is not biodiversity. Ecosystems dominated by alien and invasive species that have appeared due to human activity do not contribute to biodiversity as it is commonly understood. These species often disrupt native ecosystems by outcompeting native species, lacking natural predators, or causing the decline of indigenous species. This results in the formation of new ecosystems with altered networks of dependencies, which often lack the complexity and balance of natural biodiversity. Nevertheless, it is always worth considering whether a native ecosystem dominated by alien species has a potential to be restored to better condition.

We also should not include common habitats created through human intervention, consisting predominantly of synanthropic species – those thriving in human-dominated environments in vast numbers – among the valuable elements of biodiversity. Likewise, gardens, squares, parks, and other green spaces established and maintained by humans are not typically regarded as integral elements of natural biodiversity. While they may offer ecosystem services, they do not represent the complexity and ecological integrity of natural habitats.

When a Company May Need to Assess Its Impact on Biodiversity?

Businesses may need to evaluate their impact on biodiversity for a variety of reasons, including:

  • Fulfillment of EU Taxonomy objectives
  • Meeting standards for B Corp Certification
  • ESG (Environmental, Social, Governance) reporting
  • Conducting double materiality assessments (DMA)
  • Carrying out environmental impact assessments (EIA)
  • Executing environmental due diligence (EDD) procedures
  • Applying for funding and meeting requirements specified in international performance standards (e.g., Performance standard 1 or 6)

Each of these drivers will require consideration of environmental factors, including biodiversity, at different scales and within different contexts, both spatially and temporally.

However, the process should always begin with identifying business dependencies on biodiversity and the impacts on biodiversity – the latter generated by the company at different stages of its operations. Without the recognition of impacts, even the most innovative ideas to enhance sustainability can be perceived as greenwashing. It is essential to understand where the company’s strengths lie and where critical improvements are needed. The second stage involves enhancing the business strategy through measures focused on avoidance, mitigation, and compensation with respect to biodiversity. Both stages should incorporate a science-based approach to ensure credibility and effectiveness.

Prioritizing Impact Detection and Mitigation for Effective Biodiversity Strategy

When integrating biodiversity into a corporate strategy, the first and most crucial step for businesses is to identify dependencies on biodiversity as well as potential and actual impacts on biodiversity resulting from their operations, supply chains, or projects. This detection process ensures that companies understand the extent and nature of their influence on local or global ecosystems and species. The recognition of dependencies and impacts also enables to provide a basis for determining the scope of the biodiversity strategy the company will ultimately adopt. Since every company is unique, biodiversity strategies must be customized to fit the specific needs and context of each organization. The scope of a strategy should be viewed as dynamic, evolving over time and revisited iteratively as the company develops. Therefore, a deep understanding of business-biodiversity interactions is essential for effective strategy formulation.

Step 1: Detect and Assess Dependencies and Impacts

A comprehensive dependency and impact assessment should include:

  1. Identifying dependencies on biodiversity by assessing how specific business activities rely on ecosystem services and elements of natural capital (stocks of environmental assets). Determine how observed or potential changes in natural capital – whether caused by business activities or external factors – impact the costs and/or benefits of operating the business.
  2. Mapping biodiversity hotspots and sensitive areas within the company’s sphere of influence, including operational sites and sourcing locations. Pay special attention to natural habitats, protected areas, key biodiversity areas. Use up-to-date data collected at both supra-regional and local scales, and collaborate with local biodiversity experts, especially when field inventories are necessary. At this stage, it is also beneficial to identify habitats or areas that are disturbed but possess significant potential for restoration. This step can guide the planning of future pro-biodiversity actions by the company. The mapping stage should not be treated superficially; instead, it serves as a critical foundation that influences both the accuracy of impact assessments related to business activities and the potential to enhance biodiversity.
  3. Identifying impacts on biodiversity components (species, habitats, ecosystem services, ecosystem structure) such as land/freshwater/ocean use change, climate change, pollution/pollution removal, resources use/replenishment, and the introduction/removal of invasive species. Use metrics to evaluate the actual impact on various biodiversity components, but be mindful that not all of them provide relevant or accurate information. Therefore, metrics must be tailored to the type of business, the scale of its operation and what is the most important the dimensions of biodiversity being considered.

Impact detection should consider:

  • Direct impacts. Changes in the state of nature caused by a business activity with a direct causal link.
  • Indirect impacts. Changes in the state of nature caused indirectly by a business activity (e.g., effects linked to climate change due to greenhouse gas emissions).
  • Cumulative impacts. Changes in the state of nature (direct or indirect) that result from the combined activities of various actors operating within a landscape, freshwater, or marine area.

Note that: changes in the state of nature may be negative (more common) or positive.

  1. Engaging with stakeholders, such as conservation experts, NGOs, and local communities, to gain valuable insights into biodiversity-related challenges. It is essential to collaborate with entities that have several years of proven experience in biodiversity research and action. These partners are also an invaluable source of knowledge on where nature restoration measures are most needed.

Embedding Biodiversity from the Outset: Prevention Before Mitigation

To effectively manage biodiversity impacts, companies must integrate biodiversity considerations not only during ongoing operations but at the very beginning of any new project, expansion, or service development. This proactive approach reduces future risks, creates more sustainable outcomes, and demonstrates a genuine commitment to environmental responsibility.

Incorporating Biodiversity at the Initial Stages

  1. Early Environmental Assessments: Before establishing operations in a new location or launching a service, conduct an Environmental Due Diligence assessment and/or Environmental Impact Assessment (EIA) that specifically considers biodiversity. This includes identifying key species, sensitive habitats, and potential biodiversity-related risks.
  2. Baseline Biodiversity Studies: Establish a comprehensive baseline by documenting existing biodiversity conditions. This baseline provides a reference point for assessing changes over time and ensures all subsequent activities are informed by an understanding of local ecosystems.
  3. Avoidance of Sensitive Sites: Incorporate biodiversity mapping tools to avoid establishing operations in biodiversity hotspots, protected areas, or critical habitats. By doing so, companies can prevent or significantly reduce potential negative impacts from the outset.
  4. Stakeholder Engagement: Collaborate with local communities, conservation organizations, and relevant authorities during the planning phase. This helps to identify culturally or ecologically significant areas and align company goals with local biodiversity protection efforts.

Early-Stage Biodiversity Integration and Long-Term Gains

By considering biodiversity at the very beginning of new projects, companies can:

  1. Reduce Future Mitigation Costs: Avoiding impacts through informed site selection and operational planning can save on expensive restoration and remediation efforts later on.
  2. Enhance Brand Reputation and Social License to Operate: Demonstrating a strong commitment to biodiversity protection early on helps build trust with communities, regulatory authorities, and customers.
  3. Enable Sustainable Growth: Proactively managing biodiversity risks ensures that growth and expansion occur within the context of environmental sustainability, making it easier to meet future regulations and standards.

The Path Forward: From Early Detection to Long-Term Conservation

Integrating biodiversity considerations at every stage – from project conception and site selection to ongoing operations and expansion – creates a holistic approach to sustainability. This stepwise framework, which begins with early detection and prevention and extends through mitigation and conservation, ensures that business activities contribute positively to both biodiversity and the communities that depend on it. Ideally, within such a system, biodiversity considerations are integrated into every stage of the corporate decision-making process.

The Role of Biodiversity Experts and Scientific Collaboration

A successful biodiversity strategy relies not just on the actions of a business but also on the expertise of biodiversity specialists and collaboration with scientists and external biodiversity experts throughout all stages of planning, execution, and monitoring. Their input ensures that biodiversity considerations are grounded in the latest scientific knowledge, providing a robust and credible foundation for a company's environmental commitments.

Where Experts Make the Difference?

     1. Early-Stage Assessments and Planning

    • Site Selection and Initial Evaluations: Biodiversity experts play a pivotal role in assessing ecosystems, identifying sensitive areas, and conducting baseline studies before new projects begin. This scientific grounding prevents businesses from inadvertently harming critical habitats or species from the start.
    • Identifying Key Biodiversity Components: Scientists can pinpoint ecologically important species and habitats, guide priority setting, and outline any regulatory or local sensitivities that must be considered.

      2. Impact Detection and Monitoring

    • Detailed Ecological Assessments: Biodiversity experts conduct field surveys, collect and analyze data, and use specialized tools and methodologies to assess a business's impact on local biodiversity.
    • Indicator Development and KPI Measurement: Scientists ensure that Key Performance Indicators (KPIs) related to biodiversity are scientifically valid, track progress accurately, and align with industry standards.

     3. Mitigation Strategy Design

    • Customized Solutions: Working with biodiversity professionals ensures that mitigation strategies are not one-size-fits-all but tailored to the unique context of each site, focusing on avoidance, minimization, restoration, and offset as needed.
    • Nature-Based Solutions: Experts can propose innovative nature-based solutions that not only mitigate business impacts but create new value, such as enhancing ecosystem services or supporting local communities.

     4. Continuous Monitoring and Adaptive Management

    • Regular Monitoring and Reporting: Biodiversity specialists provide ongoing expertise to monitor changes over time, evaluate the effectiveness of conservation measures, and adapt strategies to meet emerging challenges.
    • Independent Verification: Partnering with reputable scientific institutions or organizations adds credibility and transparency to a company's efforts, particularly when reporting to stakeholders or seeking certifications.

     5. Research and Innovation

    • Driving Scientific Research: By collaborating with biodiversity experts, businesses can support and benefit from cutting-edge research in conservation and ecology, applying new insights to enhance sustainability practices.
    • Biodiversity Data and Databases: Experts contribute valuable data to global biodiversity initiatives, creating synergies between business needs and broader conservation efforts.

Why Expertise Matters for Business Success?

The collaboration with biodiversity experts is not a "nice-to-have" but an essential component of any biodiversity strategy. Without the depth of knowledge that these specialists bring, businesses risk overlooking critical factors, making uninformed decisions, and missing opportunities to enhance biodiversity and ESG performance. By integrating expert guidance at every step – from planning and mitigation to monitoring and adaptation – companies can ensure that their biodiversity strategies are effective, credible, and aligned with both environmental and business goals.

Conclusion

Incorporating biodiversity into business strategies goes beyond mere compliance; it is about creating long-term value and building resilience. As companies face increasing pressure to address biodiversity loss, the core goal of a corporate biodiversity strategy should be to deliver tangible, measurable benefits for ecosystems. Achieving this means moving beyond statements and committing to actions that challenge the status quo, driving systemic change across a company's entire operations.