Biodiversity loss is as pressing as climate change

“Two sides of the same coin”

In this series of blogs, we talk to 2BHonest specialists about topics of interest we come across in our daily work as sustainability consultants. In this article, Merijn Doornink explains why biodiversity is a critical theme for businesses and what opportunities are available to make a tangible positive impact.

Before we get deeper into the subject matter, what do we mean by ‘biodiversity’?

Biodiversity is the variety of everything that lives on and in the air, water and ground. Three levels are involved: the diversity of ecosystems (forests and rivers), the diversity of species (different plants and animals) and the genetic diversity within these species.

Why is this such a pressing issue?

Our nature is deteriorating at an unprecedented rate as we speak. Globally, wildlife populations have declined by 69% in the last 50 years. Ecosystems are becoming unbalanced and less resilient. The World Economic Forum publishes an annual Global Risks Report that provides insight into the biggest risks facing the global economy and society. Biodiversity loss is now the second greatest risk over the next 10 years, after climate change. This is partly because biodiversity and climate change are inextricably linked — they are two sides of the same coin. Are you addressing one but not the other? Then you are still missing the point.

Are there already laws in place that require efforts be made to restore biodiversity?

At the global level, the Global Biodiversity Framework was developed in 2022, a kind of Paris Agreement with 23 targets. As part of the EU Green Deal, a long-term strategy for biodiversity, the Biodiversity Strategy for 2030, has also been drawn up. This sets a target that by 2030 our biodiversity should be no worse off than it was in 2020, and that from 2030 we should work towards a net positive, in other words the restoration and regeneration of nature. The Nature Restoration Law and the European Deforestation Regulation are the most up-to-date bills requiring EU countries and organisations to take action.

“Companies have not yet identified risks associated with biodiversity loss, making them vulnerable headed into the future.”

What is the relationship between business and biodiversity?

The activities of companies are, of course, one of the main causes of biodiversity loss through intensive use of land, water and natural resources. We have a responsibility in this respect. But it also shows that we are very dependent. Biodiversity creates an economic value of more than $150 trillion a year through the various services it provides. Therefore, depending on the sector you are in, your own operations and value chain can be severely affected by biodiversity loss. Not just agricultural companies, but also construction companies, for example, owing to the extraction of crucial raw materials. Companies have simply not yet properly identified these risks and are now focusing on reducing _carbon emissions, leaving them vulnerable heading into the future.

Why should your company work on restoring biodiversity?

Firstly, by improving biodiversity in your supply chain and in your own operations, you are making your business more resilient to the impacts of climate change, such as floods, droughts and other extreme weather events. In addition, return on investment is high: calculations show that every euro you invest in nature generates between €8 and €38 in terms of value for society. What’s more, biodiversity is local, can be addressed in a targeted way and, in some cases, can even be restored within just a few years. There is a lot more low-hanging fruit and therefore more opportunities to make a positive impact directly. If you give nature a chance, it can bounce back at lightning speed, but we do need to give nature that chance. By comparison, reductions in _{carbon emissions}need to be made on a global scale, take up to several hundred years to disappear from the air, and are far less tangible. As a result, contributing something yourself seems much less concrete.

So, how do you make sure that the impact you have on biodiversity is transparent? It seems a bit hard to measure.

That’s right, measuring biodiversity loss is much harder than measuring carbon emissions. This is why the Science Based Targets for Nature (SBTN) framework was recently created, a method for companies to assess their impact on biodiversity, set targets and take action. In doing so, the SBTN looks, among other things, at the main cause of biodiversity loss — land use change.  

“Firstly, by improving biodiversity in your supply chain and in your own operations, you are making your business more resilient to the impacts of climate change, such as floods, droughts and other extreme weather events.”

How does 2BHonest help its clients to take action where human rights are concerned?

We believe that you do not have a fully fledged ESG strategy unless you include biodiversity, and this is something we pass on to our clients. When you start, the first step is to measure your company’s impact on biodiversity. SBTN is quite complicated to get started with, especially if you do not have a large sustainability department. Using SBTN as a basis, we have developed a simple and practical method for measuring your impact and translating it into concrete action. First, we map the company’s sites, activities and associated pressures on nature. Then we look more specifically at the impacts on nature and the risks they pose to a business. We then prioritise the sites and impacts and set targets for each site. We then work together to draw up an action plan to get started and help monitor progress.

Want to know more about biodiversity in relation to your business?
Merijn is on hand to help you!