Perspective

Biodiversity

Biodiversity COP

Green financing

Recommendations on how to work on biodiversity

By reducing negative effects and supporting restoration efforts, businesses can align with national and global biodiversity goals. Presenting a number of tangible recommendations, The Biodiversity Partnership seeks to support companies and financial institutions to identify their impact on biodiversity and take action.

By State of Green | [email protected]

21 October 2024

From biodiversity commitments to concrete action

Download the publication to discover recommendations from the Danish Biodiversity Partnership and specific examples of biodiversity action.

Explore the publication

The Danish Biodiversity Partnership emphasises that all companies – both private and financial – can help reduce their own and their suppliers’ negative impact on biodiversity, both marine and terrestrial, while also contributing to nature restoration locally and throughout the value chain.

Corporate biodiversity efforts are crucial to improving conditions for biodiversity and securing more space for nature. These efforts also help future-proof companies and industries that rely on biodiversity for production and economic value. In the future, effective biodiversity actions could also become a key competitive advantage.

The Mitigation Hierarchy

The mitigation hierarchy is a strategic approach to biodiversity and nature conservation.

Measuring biodiversity efforts

There is no universal method to assess, measure, and account for biodiversity that covers all species, ecosystems or addresses the variety of company impacts on biodiversity. However, numerous methods and tools are available, some of which are industry-specific or national. Many others are still being developed.

Several international organisations are working on guidance tools and methodologies. The infobox below outlines three general tools and methods that companies can use to develop and enhance their biodiversity efforts.

Tools and methods for biodiversity efforts

Science-based Targets for Nature (SBTN) are science-based targets that guide companies on how best to organise biodiversity efforts. SBTN focuses on both minimising negative impacts and promoting positive actions to maintain ecosystem function and biodiversity.

The Taskforce on Nature-related Financial Disclosures (TNFD) are global recommendations for corporate reporting on impacts and dependencies on nature and biodiversity. The goal is to create consistency and transparency for investors, thus clarifying whether nature and biodiversity impacts and risks are included in investment portfolios.

The Biodiversity Risk Filter is a tool to help screen company activities and identify where a company has the greatest impact on or dependence on biodiversity. The tool ensures that companies prioritise the most meaningful biodiversity efforts. You can read more about corporate biodiversity efforts in general as well as SBTN, TNFD and Risk Filter in Preferred by Nature’s biodiversity partnership report.

Read more about tools and methods for biodiversity

Each link in the value chain can affect different habitats and species, leading to varied impacts on biodiversity.

The complexity of a company’s impact and dependence on biodiversity can differ depending on its size, sector, value chains, and products. Similarly, the resources needed to implement biodiversity initiatives can vary – depending on industry or size, for example. Therefore, guidance and support from authorities, knowledge institutions, and industry bodies are vital to help companies advance their biodiversity efforts.

Model: Impact on biodiversity within own business or value chain

Companies can have both biodiversity impacts and dependencies within their own operations and across their value chain.

Recommendations on corporate and financial biodiversity action

Corporate biodiversity initiatives must contribute to promoting both national and global biodiversity and support national and international objectives. Biodiversity is a new area for many companies, though some are already making significant progress with various initiatives.

The Biodiversity Partnership encourages companies to identify their impacts and dependencies on biodiversity, minimise or avoid negative impacts, contribute to protection, restoration and the overall progress of biodiversity.

As part of their work, The Biodiversity Partnership has outlined key recommendations for both non-financial companies and financial institutions to consider in their biodiversity strategies. Explore them below.

Recommendations for non-financial companies

Non-financial companies have a crucial role in protecting biodiversity. By managing their impact, they can contribute to global conservation efforts and strengthen their sustainability. The following approach offers practical guidance for companies to assess and reduce their biodiversity footprint.

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Map and assess the company’s significant impacts and dependencies on biodiversity.

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Prioritise efforts where the company places the greatest pressure on biodiversity, especially where land use and resource consumption within the business and value chains potentially have a major impact on biodiversity.

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Actively contribute to meeting the global and European target of protecting 30 per cent of land and sea areas, for example, by reducing land use and setting aside areas for nature.

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Alongside the work within the company and its value chain, support and contribute to the protection, restoration and designation of land for nature, both nationally and globally.

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Involve your employees in biodiversity efforts and inform them about company initiatives and value chain activities to strengthen overall biodiversity efforts.

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For larger companies, for example those covered by CSRD, use internationally recognised methods such as SBTN and TNFD to map, set goals, monitor progress, implement initiatives, and communicate your biodiversity work.

Solutions: Companies driving corporate biodiversity efforts

The recommendations from the Danish Biodiversity Partnership come at a time when many companies are already taking action. Numerous initiatives are in place to enhance biodiversity and help halt its loss, supporting plants, animals, and ecosystems for the future. However, the recommendations emphasise the need to approach biodiversity efforts in a more systematic way.

Explore examples of how Danish companies are engaging with biodiversity below.

Discover solutions:

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Biodiversity

Highways & habitats: An innovative approach to biodiversity monitoring

18 April 2024

National Highways’ (formally Highways England) commitment to environmental stewardship involves transforming England’s 7,000km Strategic Road Network into an intelligently managed asset, that can effectively protect and strengthen the natural environment. Through the Intelligent Environmental

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P4G

Producing coffee while creating prosperous forests

27 September 2023

Coffee production, which is often associated with deforestation and habitat loss, has significant implications for biodiversity. This disruption to ecosystems threatens the diverse range of species inhabiting coffee-growing regions. In response to this challenge, Slow and WWF have formed the “

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Biodiversity

ReCoral: Turning turbines into reefs

19 October 2024

Renewable energy development is critical to address the climate crisis and subsequent impacts on global biodiversity. But, as offshore wind farms continue to expand globally, there is increasing concern about their potential impact on marine biodiversity. Unmitigated, the construction and operation

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Recommendations: Financial institutions

Financial institutions are key players in driving biodiversity protection. By integrating biodiversity considerations into their operations and investments, they can influence positive change across industries.

The following steps outline how financial institutions can support global conservation efforts and promote sustainable practices.

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Assess significant impacts and dependencies on biodiversity in own business, investments, lending and other financial services for companies and projects.

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In discussions with companies and individuals on borrowing, investments, pensions, and insurance, focus more on issues critical to biodiversity, such as increasing recycling, reducing energy, land, and resource consumption, and avoiding activities that harm biodiversity.

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Coordinate and harmonise measurement methods and approaches to create consistent expectations and frameworks for customers and companies.

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Contribute to financing nature conservation and restoration on market terms, helping achieve the global and European target of protecting 30 per cent of marine and terrestrial areas.

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Implement biodiversity-enhancing measures in own operations by reducing resource consumption, increasing reuse and recycling, and setting aside outdoor areas for nature.

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For larger companies, use internationally recognised methods such as SBTN and TNFD to map, set targets, monitor, implement initiatives, and communicate biodiversity efforts.

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Involve employees in biodiversity efforts and inform them about initiatives in lending, insurance, and investments, as well as within the company itself, to support broader biodiversity goals.

Solutions: Institutions driving financial biodiversity efforts

Financial institutions play a key role in promoting biodiversity by integrating nature-positive practices into their investment and lending strategies. These efforts help protect ecosystems and support global biodiversity goals.

While many financial companies are already making progress in this area, the recommendations from the Danish Biodiversity Partnership emphasise the need for a more systematic approach to further enhance impact.

Explore examples of how Danish financial companies are driving global biodiversity efforts below.