Biodiversity Preservation
Biodiversity refers to the variety of life on Earth — plants, animals, and ecosystems that support natural balance and resilience. It plays a crucial role in climate regulation, food security, and economic stability. However, human activities are driving an unprecedented loss of biodiversity, threatening ecosystems and industries that depend on them. Businesses and policymakers are now integrating biodiversity strategies, such as nature-based solutions, regenerative practices, and biodiversity reporting, to align with global conservation goals and ensure long-term sustainability.
Legislation
The EU Nature Restoration Law is a landmark regulation aimed at restoring degraded ecosystems across Europe, marking a significant step in the EU's commitment to biodiversity and climate change mitigation. Key Objectives: -> Restoration Targets: The law sets legally binding targets to restore at least 20% of the EU's degraded ecosystems by 2030 and all ecosystems in need of restoration by 2050. IUCN -> Specific Habitat Goals: Within the broader targets, the law specifies that by 2030, 30% of habitats in poor condition should be restored, increasing to 60% by 2040 and at least 90% by 2050. -> Monitoring and Reporting: The law establishes a framework for monitoring progress and requires regular reporting to ensure transparency and accountability. Implications: -> Environmental Impact: The restoration of ecosystems is expected to enhance biodiversity, improve ecosystem services, and contribute to climate change mitigation by increasing carbon sequestration. The EU Nature Restoration Law primarily targets EU member states rather than individual companies, setting legally binding restoration targets for ecosystems across Europe. Its focus is on national governments, which are responsible for implementing the law through national restoration plans. However, it will indirectly affect companies, particularly in sectors like agriculture, forestry, and land management, that influence ecosystems and biodiversity. How It Affects Companies: While the law's main obligation lies with governments, companies operating in sectors that impact natural habitats may be affected in several ways: 1/ Regulatory Requirements: Companies may face new regulations tied to national restoration plans. For example, they could encounter stricter land use and environmental standards, especially in agriculture or construction. 2/ Environmental Reporting and Compliance: Companies involved in activities affecting ecosystems will need to comply with new monitoring and reporting requirements, ensuring they contribute to achieving the national restoration targets. 3/ Incentives and Funding: Companies may be eligible for EU funding for biodiversity restoration projects or sustainable practices aligned with the law’s goals. 4/ Sector-specific Impact: Industries like agriculture, forestry, and construction may face restrictions or obligations to integrate nature restoration measures into their business activities, such as using more sustainable practices or restoring biodiversity on lands they manage. 🔗 EC, EP, European Environmental Agency
The EU Deforestation Regulation (EUDR), formally known as Regulation (EU) 2023/1115, is a landmark policy adopted by the European Union to combat global deforestation and forest degradation. It aims to ensure that products consumed within the EU do not contribute to these environmental issues. Key Provisions: The regulation targets specific commodities and products linked to deforestation and forest degradation, including: -> Palm oil -> Cattle -> Soy -> Coffee -> Cocoa -> Timber -> Rubber -> Derived products such as beef, furniture, and chocolate Due Diligence Requirements: -> Operators placing these products on the EU market or exporting them must: -> Demonstrate that the products do not originate from land deforested after December 31, 2020. -> Provide evidence of compliance with the laws of the country of production. -> Submit due diligence statements electronically through a registry managed by the European Commission. Enforcement and Penalties: Non-compliance can result in fines up to 4% of the operator's EU turnover. Implications: The EUDR is expected to significantly reduce the EU's contribution to global deforestation and biodiversity loss. 🔗 EC, EP, European Environmental Agency
The EU Taxonomy Regulation (Regulation (EU) 2020/852) establishes a classification system to identify environmentally sustainable economic activities, aiming to direct investments toward the EU's environmental objectives. It defines six environmental objectives: -> Climate change mitigation -> Climate change adaptation -> Sustainable use and protection of water and marine resources -> Transition to a circular economy -> Pollution prevention and control -> Protection and restoration of biodiversity and ecosystems 1/ EU Taxonomy Regulation (EU) 2020/852 is the Regulation that sets the overall framework and objectives for what constitutes "environmentally sustainable" activities in the EU. 2/ The Delegated Acts are the detailed technical regulations that provide the specific criteria and thresholds for various environmental objectives (climate mitigation, water protection, biodiversity, etc.). These Delegated Acts support the implementation of the Taxonomy Regulation. The EU Taxonomy is an essential part of the EU's sustainable finance framework. It serves as a classification system to define environmentally sustainable economic activities based on science-based criteria. Its primary goals are to help investors, companies, and financial institutions identify and finance projects and activities that align with the EU's environmental objectives, such as climate change mitigation and adaptation, circular economy promotion, and biodiversity protection The EU Taxonomy is not a mandatory list for investors to invest in. It does not set mandatory requirements on environmental performance for companies or for financial products. Investors are free to choose what to invest in. However, it is expected that over time, the EU Taxonomy will encourage a transition towards sustainability in order to achieve the EU’s climate and environmental goals. The Taxonomy sets performance thresholds (referred to as ‘technical screening criteria’) for economic activities which: -> make a substantive contribution to one of the above six environmental objectives; -> do no significant harm (DNSH) to the other five, where relevant; -> meet minimum safeguards (e.g., OECD Guidelines on Multinational Enterprises and the UN Guiding Principles on Business and Human Rights) 🔗 European Commission
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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.
Experts
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View all suppliers ->Ocean Ledger is turning coastal risk (flooding, biodiversity loss) into an investable asset through natural capital accounting. They act as a link between the conservation sector & businesses to assess the risk of inaction, and chart a path for positive and targeted coastal mitigation. Their UN SEEA compliant-approach takes a holistic lens to natural capital accounting by mapping the extent, condition and ecosystems services (blue carbon, biodiversity) across time for mangrove, seagrass, coral reef and saltmarsh ecosystems. Their vision is to leverage technology to turn high-value coastal ecosystems into the assets that they are — making them identifiable, measurable and investable. They do this by equipping governments, NGOs, companies and asset managers with robust insight on how they can engage in coastal nature-based solutions and maximise their return on investment for mitigation, conservation and restoration. By making the invisible visible, they aim to unlock funding, inform policy, and scale evidence-based decision making for global coastal climate solutions.
Refugium.eu, an environmental land company based in the Czech Republic, invests in naturally valuable land with exceptional biodiversity. Focused on sites hosting rare and endangered plant and animal species, they safeguard these lands from extinction. Collaborating with experts, Refugium.eu ensures biologically sensible preservation for our unique natural heritage.
EcoTree is a B corp certified company. They aim to help individuals and businesses to support environmental projects in France and Europe. They manage and nurture forests, allowing people to "own" trees. As these trees mature, they help preserve biodiversity and capture CO2. When a tree's CO2 capture diminishes, it's sustainably harvested, and all revenue goes to the owner, effectively doubling the tree's value.
Respyre is a company that makes nature-inclusive building easy. They have developed a bioreceptive concrete that transforms dull grey facades into green and living expanses, increasing local biodiversity. This concrete accommodates the growth of moss on new and existing bare concrete walls. Any surface covered in moss becomes a natural respiratory system for the city, holding water to keep buildings cool and sequestering CO2 from the air.
Beefutures combines biotech, data science, and commercial beekeeping expertise to safeguard honey bees and wild bees. Their mission is to positively impact the beekeeping and pollination industry, sustainable farming, and biodiversity. They offer innovative solutions, such as Onibi base, Onibi watch, and Onibi insight, to enhance bee health, reverse colony collapse, monitor environmental conditions, and promote pollinator-friendly practices.
Software
View all software ->refinq helps companies in understanding and managing their climate risks, thereby contributing to a more sustainable global economy. They combine geospatial analysis with machine learning to decode the complex interplay between physical locations, nature, and business activities. The platform identifies material impacts and dependencies, helping you prioritize actions based on the most significant biodiversity risks.
Nala Earth offers a comprehensive Nature & Biodiversity Management Platform that simplifies complex ecological data for businesses. It includes four modules to locate, understand, analyze, and improve interactions with nature. Nala helps companies understand the financial and strategic impacts of their environmental actions and align with leading frameworks like CSRD, TNFD, SBTN, GRI, and the Natural Capital Protocol. This approach ensures clarity and actionable insights for sustainable corporate practices.
WWF Biodiversity & Water RiskFilter is a leading platform offering comprehensive risk management solutions for businesses across various industries. With advanced tools and data-driven insights, RiskFilter enables organizations to identify, assess, and mitigate risks effectively. From financial risks to environmental concerns, our platform empowers businesses to make informed decisions and enhance resilience
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