Biodiversity is the variety of life on our planet. Estimates suggest there are around 8.7 million distinct species of plants and animals coexisting globally, underscoring the immense importance of maintaining this diversity for ecological stability and resilience (National Geographic Society). This richness of life not only contributes to the planet's health but also plays a crucial role in supporting human economies and well-being. As environmental concerns around biodiversity continue to take centre stage, businesses are exploring innovative ways to integrate biodiversity conservation to support their operations.
Frameworks and Regulations Guiding Biodiversity
The economic benefits of biodiversity are increasingly recognised, leading to the development of various frameworks and regulations. These guidelines aim to help businesses integrate biodiversity conservation into their operations. Two key approaches to integrating biodiversity are Biodiversity Net Gain (BNG) and Supply Chain Biodiversity Footprint (SCBF). BNG in particular has gained much traction in recent years, especially in the UK, where legislation mandates that new developments must leave biodiversity in a better state than before. To navigate the complexities of biodiversity, businesses must be aware of various international frameworks and regulations. Key among these are:
Convention on Biological Diversity (CBD): This global agreement aims to promote sustainable development through the conservation of biological diversity, sustainable use of its components and equitable sharing of benefits from genetic resources.
Aichi Biodiversity Targets: These targets were part of the CBD’s strategic plan (2011-2020) and set specific goals for reducing biodiversity loss, now succeeded by the Post-2020 Global Biodiversity Framework to further guide business practices.
Kunming-Montreal Global Biodiversity Framework (GBF): Building upon the Aichi Biodiversity Targets, the GBF focuses on driving transformational change to address the biodiversity crisis, with its standards finalised at COP15 in 2022.
Global Reporting Initiative (GRI) Standards: GRI 101 serves as the foundation for sustainability reporting and will become mandatory in January 2024, highlighting sustainability’s importance in corporate accountability.
- GRI 304: This specific standard provides guidelines for biodiversity reporting, helping organisations disclose their impacts and conservation efforts related to biodiversity.
Nature Positive Goals: These goals seek to halt and reverse nature loss by 2030, emphasising the protection and restoration of ecosystems and the promotion of sustainable resource use.
Science Based Targets for Nature: This framework enables companies to set measurable, science-based goals that positively contribute to nature while aligning with planetary boundaries to maintain ecological health.
UK Biodiversity Action Plan (BAP): This national strategy addresses biodiversity challenges in the UK by adapting global targets to local ecosystems and guiding conservation efforts through the Joint Nature Conservation Committee (JNCC).
European Union Biodiversity Strategy for 2030: This comprehensive plan aims to protect and restore biodiversity across Europe for the benefit of ecosystems, climate and society.
The UN Sustainable Development Goals (SDGs): Specifically, SDG 15 focuses on protecting, restoring and promoting the sustainable use of terrestrial ecosystems, forests and biodiversity.
Related Insight to learn more about other regulations, laws and frameworks guiding biodiversity for various industries.
What is Biodiversity Net Gain (BNG)?
BNG is an approach that aims to leave the natural environment in a measurably better state than before development. In England, developers and land managers are now mandated to achieve a minimum of 10% Biodiversity Net Gain (BNG) from pre-development conditions to post-development outcomes. This requirement is part of the Environment Act 2021, which aims to ensure that new developments contribute positively to the natural environment. A BNG assessment evaluates the current biodiversity state and proposes a plan to achieve measurable improvements.
What is Supply Chain Biodiversity Footprint (SCBF)?
SCBF is a newer initiative that assesses the impact of a company's supply chain on biodiversity. It involves evaluating the entire supply chain, from raw material extraction to product delivery, to understand its effect on ecosystems and species diversity. SCBF helps businesses identify areas where their operations may be causing harm to biodiversity and provides insights for implementing more sustainable practises. By measuring and managing their supply chain's biodiversity footprint, companies can reduce their environmental impact, mitigate risks and contribute to conservation efforts.
The Benefits of BNG for Businesses
Investing in BNG provides businesses with several economic benefits of biodiversity, including:
Regulatory Compliance: Adhering to biodiversity regulations helps businesses avoid fines and legal issues, enabling smoother project approvals and development processes.
Risk Management: Understanding biodiversity impacts aids in identifying risks associated with supply chain disruptions, especially in sectors reliant on natural resources.
Enhanced Brand Reputation: Companies that actively engage in biodiversity conservation can leverage their efforts in marketing and branding. Consumers increasingly prefer brands that demonstrate environmental responsibility, leading to higher customer loyalty and sales.
Innovation and New Markets: Focusing on biodiversity can stimulate innovation. Companies may discover new materials or processes that not only minimise their ecological footprint but also appeal to eco-conscious consumers, opening up new market opportunities.
The Benefits of SCBF for Businesses
Prioritising SCBF delivers similar economic benefits of biodiversity as BNG:
Sustainable Sourcing: By understanding their SCBF, companies can implement sustainable sourcing strategies that minimise ecological damage, potentially lowering costs associated with resource scarcity.
Consumer Trust and Loyalty: Businesses that are transparent about their biodiversity impacts can foster trust with consumers.
Competitive Advantage: Companies that incorporate biodiversity considerations into their supply chains often gain a competitive edge, especially in markets increasingly influenced by environmental concerns.
Attracting Investment: Investors are increasingly prioritising sustainability in their portfolios. Companies committed to improving their SCBF are likely to attract investment from eco-conscious funds and investors.
Collaboration Opportunities: Engaging with suppliers and other stakeholders to improve biodiversity can foster collaboration and innovation, leading to improved practices and shared benefits.
A recent case study on one of our clients Optima exemplifies the benefits of implementing a SCBF assessment. We helped Optima identify critical biodiversity risks within their supply chain and leveraged our innovative Biodiversity Input-Output tool to assess their ecological impact. The assessment highlighted four key hotspots, mapping out a strategic roadmap to mitigate the impacts of these hotspots.
The Bottom Line
The economic benefits of biodiversity, as well as the environmental benefits are clear: companies that invest in biodiversity conservation are better positioned for long-term success. By adopting frameworks like BNG and SCBF, companies can align their goals with ecological preservation, leading to enhanced reputation, improved resource efficiency and new market opportunities. This approach not only contributes to global conservation efforts but also ensures long-term profitability and sustainability for businesses.