In a world where environmental awareness has become crucial, the significance of biodiversity has evolved from an environmental concern to a strategic imperative for businesses. The growing understanding of the vital role healthy ecosystems play in supporting our society and ensuring corporate resilience has catalyzed this transformation. From clean water and fertile soil to pollination and climate regulation, nature provides a myriad of services essential for business operations. Despite its importance, biodiversity is experiencing an alarming decline.
Emerging frameworks on Biodiversity
Biodiversity is following a trajectory similar to climate change, with regulatory frameworks and reporting standards continually evolving to specifically address the topic. Three frameworks stand out for multinationals:
- The CSRD, Corporate Sustainability Reporting Directive, which sets new standards and obligations for non-financial reporting.
- The TNFD, Taskforce on Nature-related Financial Disclosures, enabling financial institutions and companies to assess, track, and disclose financial risks associated with biodiversity decline.
- The SBTn, Science-Based Targets for Nature, is a global methodology aimed at assisting companies in defining scientifically grounded objectives for the protection of biodiversity and ecosystems.
Though they have different objectives, these frameworks have aligned requirements, each one referring to the other, going from most specific to most global.
Zoom on the SBTn
The Science-Based Targets for Nature (SBTn) methodology is a global initiative helping companies set science-based targets for biodiversity and ecosystem protection. Launched in 2020 by a coalition of leading environmental organizations, its ambition is to allow comparison between companies that set SBTn compliant targets. While the methodology is not yet complete, the initial steps have been taken, with 17 pilot companies currently defining targets, most focusing on specific areas of their operations.
Using the GBS as a Biodiversity Footprint Measurement Tool
CDC Biodiversité developed the Global Biodiversity Score (GBS) as a tool enabling companies to understand their biodiversity footprint and comply with international frameworks and European regulations. The GBS considers various internal data for a comprehensive assessment of operations, helping identify priority areas, gaps, and where action is needed without pressuring the data collection process.
While biodiversity cannot be entirely expressed in a single matrix, the GBS provides a global score representing impacts and dependencies across the entire value chain. This score can also be detailed by pressure, aligning with the SBTn’s recommendation for an in-depth analysis of each raw material. It is crucial to note that the precision of the score depends directly on the accuracy of the data provided by the company.
To summarize
Navigating the complex landscape of biodiversity is now a business necessity. Companies embracing the SBTn and GBS frameworks are not only meeting regulatory requirements but are also transforming biodiversity challenges into strategic opportunities for a sustainable future.
At TOLSON we recommend getting started with a tool like GBS that allows you to have a first visibility on your biodiversity hot spots and to map dependencies. As your data becomes more accurate, so will the score. And by starting to get your teams engaged as soon as possible, you will build capacity and maturity to embark on the more sophisticated framework of SBTn. Its important to note that SBTn is still in its pilot phase and still being developed. Finally, keep in mind that while these different frameworks allow you to measure, they are not actions to reduce impact on nature. Keep encouraging initiatives at the local level, consider how to integrate biodiversity factors in decision making (ie choice of supplier, design choices) and use tools like GBS and SBTn to guide where you put your reduction efforts.
Join the SBC benchmarking community, to be on the lookout for CSR initiatives that you can carry out within your company.
