How do you measure your business's impact on biodiversity?

Begin by conducting a comprehensive environmental impact assessment to identify direct and indirect effects on local ecosystems. Track changes in species populations and habitat quality around your operations. Implement biodiversity indicators such as the number of species affected or restored, and monitor the effectiveness of conservation efforts. Engage with stakeholders, including local communities and conservation experts, to gather insights and refine strategies. Regularly review and report on these metrics to ensure transparency and drive continuous improvement in your practices to mitigate negative impacts and enhance biodiversity conservation.

Para medir el impacto de nuestro negocio en la biodiversidad, es crucial definir el alcance de nuestra evaluación. Esto implica identificar las ubicaciones geográficas, cadenas de valor y partes interesadas relevantes para nuestras operaciones e impactos comerciales. Por ejemplo, considerar los impactos en la biodiversidad de proveedores, clientes, empleados y comunidades locales. También podemos enfocarnos en ecosistemas y especies más vulnerables, amenazadas o importantes para nuestro negocio o sociedad. Este enfoque nos permite evaluar de manera precisa y completa nuestro impacto en la biodiversidad y tomar medidas efectivas para su conservación.

Defining the scope of a biodiversity assessment is critical for measuring impact. Start by mapping out the geographic and operational boundaries where your business interacts with ecosystems. At Arboriza21, we focus on Peru’s vulnerable areas, assessing impacts across our value chain—from reforestation projects to community involvement. Prioritize ecosystems and species crucial to both your business and biodiversity; this targeted approach helps ensure meaningful, measurable contributions to conservation.

The TNFD developed a very simple, thorough tool - LEAP - that's freely available on their website along with a range of guidance on how to use it. The process begins with assessing where your primary operations are (what bioregion) and what ecosystems they may be impacting. Once this is clear, you can start looking at up and downstream value chains. From there you can look at which specific business activities are having a material impact on biodiversity. It's worth noting that the high level impacts and risks are things your Board should be across. Biodiversity risks and impacts, like climate related risks and impacts, are critical for Board members to understand.

Measure your business's impact on biodiversity by conducting biodiversity assessments and surveys to identify species richness and habitat quality in your operational areas. Use indicators such as species diversity, population trends, and habitat integrity to gauge impact. Implement monitoring programs to track changes over time and assess the effectiveness of biodiversity conservation measures. Engage with experts, stakeholders, and local communities to gather insights and collaborate on conservation initiatives. Report findings transparently in sustainability reports and align actions with international biodiversity targets and guidelines to demonstrate commitment to biodiversity conservation and responsible business practices.

To measure your business's impact on biodiversity, use these indicators: track habitat loss and fragmentation, monitor species diversity and abundance, assess impacts on ecosystem services, measure land use and cover changes, quantify resource consumption and waste generation, ensure compliance with environmental regulations, gather stakeholder feedback, and conduct biodiversity risk and opportunity assessments. Tailor indicators based on your business type, location, and specific biodiversity concerns.

Al elegir indicadores para medir nuestro impacto en la biodiversidad, debemos considerar medidas como el número de hectáreas de hábitat natural perdido o restaurado, la cantidad de especies en peligro de extinción afectadas o protegidas, y la cantidad de recursos consumidos o ahorrados. Además, es importante incluir indicadores que capturen los beneficios de la biodiversidad para nuestro negocio, como el valor de los servicios ecosistémicos, la reducción de riesgos o la satisfacción del cliente. Estos ejemplos nos ayudarán a evaluar y gestionar nuestro impacto ambiental de manera efectiva.

Choosing the right biodiversity indicators means selecting metrics that reflect meaningful changes across ecosystems and add business value. At Arboriza21, we use indicators like hectares reforested, plant species diversity, and soil health restoration to gauge our projects' environmental impact. For businesses, it’s essential to integrate indicators that capture ecosystem benefits, like resource efficiency and risk mitigation. Aligning biodiversity metrics with operational goals, from resource use to customer satisfaction, creates a holistic view that drives sustainable decisions.

Choosing your indicators is most likely one of the most difficult elements of your assessment. The Taskforce for Nature-Related Financial Risk Disclosure (TNFD) methodology is a great start, and over 500 organisations have already begun this process. It's also useful to look at this from the perspective of how your business benefits from nature. So, what would you be unable to do within your business without support from the natural world? These are also known as ecosystem services. By asking this question it will help to establish risks and benefits.

Choosing the right indicators is critical for accurately measuring a business's impact on biodiversity. These indicators should be both relevant and specific to the company's operations and their environmental footprint. For example, metrics like habitat loss, species diversity, and resource consumption are tangible and can be directly linked to business activities. Selecting appropriate indicators not only helps in monitoring and reducing environmental impact effectively but also ensures that the company's sustainability efforts are meaningful and aligned with global conservation goals.

Collecting accurate data for biodiversity indicators is essential. Use sources like surveys, satellite images, and stakeholder feedback, and tools like GIS or remote sensing. Ensure quality and consistency through proper analysis and verification methods.

Collecting biodiversity data is integral to any initiative, but the manner in which data is processed and utilized is crucial. The goal is not just data accumulation but deriving actionable insights. Effective data utilization facilitates business transformation and informs strategic decisions. By employing advanced analytics and leveraging technological tools, organizations can extract meaningful patterns and trends. This transformative use of data enhances the integration of biodiversity considerations into business strategies, promoting sustainability, and ensuring that initiatives contribute meaningfully to both ecological and organizational goals.

Implement systematic data collection processes to gather accurate and consistent information. Use both primary methods, like field surveys, and secondary sources, such as environmental databases. The data should be robust enough to support credible reporting and inform continuous improvement in line with OECD and overall international RBC standards,. specially considering those in emerging due diligence regulation such as the CSDDD.

Collecting accurate data is essential for informed biodiversity indicators. For example, field surveys and satellite images provide tangible insights, while tools like GIS software and remote sensing offer precise analysis. Leveraging databases and stakeholder feedback ensures a comprehensive view. Depending on data quality and availability, employing methods like life cycle assessment or participatory approaches can enhance accuracy and verification, enabling a thorough evaluation of your biodiversity impact.

Reporting your results and creating the transparency is crucially important - both when it comes to internal reporting but also external disclosures. Internally, reporting (e.g. in form of a dashboard) alongside ongoing monitoring helps you continuously steer strategically according to the indicators and enables decision-makers to make informed decisions in a timely manner. External disclosures are crucial to show commitment but also to be attractive from an investment point of view. Science-aligned environmentally conscious operations are an incredibly strong selling point.

Reporting your results is crucial for demonstrating transparency and accountability on biodiversity issues. For example, using dashboards or scorecards can effectively communicate your progress to both internal and external audiences. This not only showcases your commitment but also highlights strengths, weaknesses, and opportunities, guiding informed decision-making. By utilizing various platforms, such as reports or websites, you ensure that your biodiversity efforts are visible, fostering trust and driving further action.

Establecer objetivos en biodiversidad implica definir metas específicas y medibles. Por ejemplo, podemos proponernos reducir la pérdida de hábitat en un 10% para 2025, aumentar nuestras inversiones en conservación en un 20% para 2030, o lograr un impacto neto positivo en la biodiversidad para 2050. Estos objetivos nos guían hacia prácticas más sostenibles y contribuyen significativamente a la conservación de la biodiversidad.

In addition to setting up SMART indicators and targets to achieve the desired outcome, I would recommend as well to select a set of intermediate outcome indicators to measure short and medium-term progress. For example, to deliver on "increase in biodiversity conservation investments by 20% by 2030", intermediate outcome indicators could be the number of new biodiversity projects initiated, the proportion of budget allocated to such investments, or the number of partnerships formed to secure funding or investment. Breaking down ambitious targets into a set of intermediate actions and activities can support effective delivery, increase transparency and support communication with stakeholders.

Setting clear targets is essential for improving your biodiversity impact. For example, committing to reducing habitat loss by 10% by 2025 or increasing biodiversity investments by 20% by 2030 provides measurable and time-bound goals. These targets guide your actions and allow you to track progress effectively. By aiming for specific, achievable outcomes, such as achieving a net positive biodiversity impact by 2050, you align your strategies with meaningful environmental objectives, driving long-term sustainability.

Ongoing monitoring and evaluation at Arboriza21 are essential to understanding and refining our biodiversity impact in reforested areas. By tracking indicators like species diversity and habitat recovery, real-time data enables us to adapt our methods to meet evolving environmental needs. While formal reports are still in progress, sharing initial findings internally helps reinforce our strategy and commitment to transparency. This process not only sets the stage for future public reporting but also builds trust with stakeholders who value sustained and meaningful ecological progress.

It is key to incorporate comprehensive stakeholder engagement in the monitoring and evaluation process to enhance the effectiveness and accountability of biodiversity initiatives. We recommend involving local communities, indigenous groups, and environmental NGOs to ensure diverse perspectives are represented. This approach not only aligns with standards such as the OECD Guidelines for Multinational Enterprises but also improves the adaptability and legitimacy of your strategies, fostering greater transparency and trust between your company and its stakeholders.

Monitoring and evaluating your biodiversity performance is crucial for measuring the effectiveness of your actions. For example, using indicators and audits allows you to assess progress and identify areas for improvement. Regular surveys and reviews help you learn from both successes and failures, ensuring your strategies remain adaptive to changing conditions. This ongoing process not only tracks impact but also enhances your ability to respond effectively, driving continuous improvement in your biodiversity initiatives.

"Nature Positive" is rapidly joining "Net Zero" as a strategic priority for well-run businesses. Understanding the impact of your business on biodiversity provides critical data that can be used to reduce risk, improve supply chain efficiencies and significantly enhance reputation, employee engagement, stakeholder relationships and access to financing. This is a highly dynamic area that may offer leaders significant first mover advantages, in getting ahead of regulations/expectations.

Collaborate with conservation NGOs. Narrate experiences of partnering with non-governmental organizations focused on biodiversity conservation. Highlight joint initiatives and their impact. Conduct comprehensive impact assessments. Detail how your business performs thorough biodiversity impact assessments before initiating new projects or operations, emphasizing the precautionary principle. Pursue biodiversity certification. Explain your business's pursuit of certifications like the Business and Biodiversity Standard, emphasizing the importance of third-party verification.

It’s also important the Boards understand that failure to understand the impact of a business on biodiversity, and take steps to mitigate and restore damage, could in future be deemed as neglecting their duty as directors. Particularly as green financiers seek to understand the impact on biodiversity of businesses in their portfolio. Changes in access to investment because of failure to understand risks to nature from business operations or nature-related risks in supply chains, is a legitimate business risk and Board members need to be across this.