How to assess your company's impact on biodiversity

Assessing a company's impact on biodiversity is an essential step in understanding and mitigating the environmental footprint of its operations. Here are key approaches companies can use to evaluate their biodiversity impact:

1. Conduct a Biodiversity Risk Assessment

• Mapping Operational Footprint: Identify areas where the company operates (factories, offices, supply chains) and overlay them with biodiversity-rich areas like forests, wetlands, or marine ecosystems.
• Assessing Ecosystem Dependencies: Determine how the company depends on ecosystem services, such as water resources, pollination, or raw materials from natural habitats. For instance, agriculture-based businesses should evaluate how their supply chains affect local ecosystems.
• Biodiversity Hotspots: Use tools like the Integrated Biodiversity Assessment Tool (IBAT) or the World Database on Protected Areas to assess whether operations or suppliers are located near biodiversity hotspots or protected areas.

2. Review Land Use and Habitat Alteration

• Land Use Change: Measure how the company’s operations affect land use, such as deforestation, habitat fragmentation, or soil degradation. This includes both direct activities (e.g., building facilities) and indirect activities (e.g., supply chain agriculture practices).
• Impact on Local Habitats: Assess whether company projects disrupt ecosystems, such as wetlands or wildlife corridors, or lead to habitat destruction, even on a small scale.

3. Evaluate Resource Extraction and Waste Disposal

• Resource Consumption: Analyze the company's use of natural resources like water, timber, minerals, or fish, and their impact on local biodiversity. Over-extraction can deplete critical habitats or reduce species populations.
• Waste Impact: Examine the impact of waste products, such as chemicals, plastic, and effluent discharge, on ecosystems. Pollution can harm water bodies, soil quality, and species health, contributing to biodiversity loss.
• Circular Economy Practices: Evaluate how the company manages waste and promotes recycling or reuse, which can help mitigate the impact on biodiversity.

4. Assess Supply Chain Impacts

• Supplier Audits: Perform audits of suppliers to ensure that raw materials or products are sourced in ways that do not degrade biodiversity. For instance, companies involved in palm oil, timber, or seafood industries should work to avoid suppliers contributing to deforestation or overfishing.
• Certification Schemes: Encourage or require suppliers to adhere to recognized biodiversity-friendly certification programs, such as Rainforest Alliance, FairWild, or Marine Stewardship Council (MSC) for responsible sourcing.

5. Use Biodiversity Metrics and Indicators

• Species Richness and Abundance: Track the number and diversity of species in and around operational areas. For instance, companies can monitor populations of key species like pollinators, birds, or fish to measure the direct biodiversity impact.
• Biodiversity Footprinting: Use tools like the Global Biodiversity Score (GBS) or Product Biodiversity Footprint to quantify biodiversity impacts throughout the product life cycle. These tools estimate a company’s contribution to biodiversity loss based on resource use, emissions, and land use change.
• No Net Loss/Net Gain: Set measurable goals, such as achieving no net loss or even net gain in biodiversity. This approach involves offsetting any biodiversity impacts through restoration or conservation efforts, aiming for a balance or positive biodiversity outcome.

6. Engage with Stakeholders

• Local Community and Indigenous Groups: Collaborate with local communities and indigenous peoples to understand how company operations affect local ecosystems and species. These groups often have valuable knowledge about preserving biodiversity and the risks posed by industrial activities.
• Environmental NGOs and Conservation Groups: Partner with conservation organizations to get an expert assessment of how business operations affect biodiversity. These groups can help identify high-risk areas and recommend mitigation strategies.

7. Integrate Biodiversity into Environmental Management Systems (EMS)

• ISO 14001 Framework: Integrate biodiversity criteria into existing EMS frameworks like ISO 14001, which provides a structure for managing environmental impacts. This can ensure that biodiversity is regularly monitored and included in company decision-making.
• Life Cycle Assessment (LCA): Incorporate biodiversity impact in life cycle assessments to measure environmental performance across the product life cycle—from raw material extraction to production, transportation, use, and disposal.

8. Report on Biodiversity Performance

• Sustainability Reporting Frameworks: Report biodiversity impacts through widely recognized frameworks such as the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), or Task Force on Nature-related Financial Disclosures (TNFD). This can increase transparency and help shareholders and stakeholders understand the company’s biodiversity strategy.
• Disclose in Annual Reports: Publicly disclose biodiversity risks and actions in annual sustainability reports, including conservation efforts, progress toward biodiversity goals, and how biodiversity risks are managed.

9. Restoration and Conservation Initiatives

• Restoration Projects: Assess opportunities for habitat restoration or ecosystem enhancement. Companies can participate in local reforestation projects, wetland restoration, or creating wildlife-friendly corridors near their operations.
• Offsetting Programs: Engage in biodiversity offsetting initiatives where unavoidable impacts are compensated by protecting or restoring biodiversity in other areas.

10. Monitor and Adapt Over Time

• Regular Monitoring: Set up long-term biodiversity monitoring programs to track the health of ecosystems in and around operational sites. This can include tracking changes in species populations, water quality, soil health, and land use.
• Adaptive Management: Use the data from biodiversity monitoring to adapt business practices. If a decline in local biodiversity is detected, adjust operations, sourcing, or land management practices to mitigate future harm.

By systematically assessing their operations, supply chains, and resources, companies can understand and minimize their impact on biodiversity. These efforts not only benefit ecosystems but also reduce operational risks and enhance the company’s sustainability credentials