How to design and implement corporate biodiversity and nature action?

In the current era of heightened environmental awareness, businesses are increasingly recognizing the critical importance of biodiversity and nature preservation. Designing and implementing effective corporate biodiversity and nature action plans are essential for ensuring long-term sustainability and aligning with global environmental goals. This article provides a comprehensive guide based on the latest voluntary guidelines, frameworks, and regulations to help corporations navigate this complex landscape.

Biodiversity underpins ecosystem services that are vital for business operations, including water purification, pollination, and climate regulation. Loss of biodiversity poses significant risks to businesses, including supply chain disruptions and regulatory penalties. Therefore, integrating biodiversity considerations into corporate strategies is not only a moral imperative but also a business necessity.

Key frameworks and guidelines

1. Taskforce on Nature-related Financial Disclosures (TNFD)

The TNFD provides a comprehensive framework for businesses to assess and disclose their nature-related dependencies and impacts. Launched in 2021, the TNFD's recommendations were finalized in September 2023 and are designed to help businesses manage nature-related risks and opportunities effectively. The framework includes 14 core disclosure recommendations structured around governance, strategy, risk management, and metrics (S&P Global ).

2. Kunming-Montreal Global Biodiversity Framework (GBF)

Adopted during COP15 in 2022, the GBF sets ambitious targets to halt and reverse biodiversity loss by 2030. It encourages businesses to integrate biodiversity considerations into their strategic planning and operations. The GBF's goals are supported by various voluntary standards and regulatory frameworks aimed at enhancing corporate transparency and accountability.

3. Science Based Targets Network (SBTN)

The SBTN extends the principles of the Science Based Targets initiative (SBTi) to nature, offering a structured approach for businesses to set and achieve targets related to biodiversity and ecosystem preservation. The SBTN's five-step approach—Assess, Interpret & Prioritize, Measure, Act, and Track—provides a clear roadmap for companies aiming to mitigate their impacts on nature (Aligned Incentives ).

4. IUCN guidelines:

The IUCN's guidelines offer a structured approach for developing a corporate biodiversity strategy, including goal setting, measurement, and monitoring (IUCN ).

Steps to design and implement biodiversity and nature action plans

Step 1: Assess and understand dependencies, impacts, risks and opportunities

Begin by assessing your company's dependencies and impacts on nature. Utilize the TNFD's LEAP (Locate, Evaluate, Assess, Prepare) approach to identify key areas where your operations affect biodiversity. This involves mapping your value chain and understanding the ecological dependencies critical to your business operations (S&P Global ). Additional tools and databases to help you identify and assess risks and opportunities in your operations and value chains include the WWF Risk Filter Suite , Key Biodiversity Areas , SBTN Natural Lands Map , AFi Deforestation Risk Toolset , Global Biodiversity Information Facility (GBIF) , and Map of Biodiversity Intactness .

Step 2: Set priorities, ambitious and measurable targets

Based on the findings in Step 1, the purpose of prioritizing is to determine the locations, economic activities, and/or value chains that will be the focus for your biodiversity action (Step 4). This involves interpreting and ranking locations and activities according to their relevance to your business, enabling you to set specific targets and deliver positive impact. Tools to help you rank your priority locations include the SBTN Prioritization Guidance , Biodiversity Impact Metric , and the Species Threat Abatement and Restoration (STAR) metric . Establish clear, science-based targets for biodiversity and nature action. Align these targets with global frameworks such as the GBF and SBTN. Ensure that your targets are specific, measurable, achievable, relevant, and time-bound (SMART). For instance, you might aim to achieve net-zero deforestation in your supply chain by a specific year (Preferred by Nature & Aligned Incentives ).

Step 3: Integrate biodiversity into corporate strategy

Embed biodiversity considerations into your corporate strategy and decision-making processes. This includes integrating biodiversity metrics into your environmental, social, and governance (ESG) reporting and risk management frameworks. The TNFD's core metrics can help standardize reporting and ensure comparability across industries.

Step 4: Implement action plans

Develop and implement action plans to achieve your biodiversity targets. This might involve initiatives such as restoring degraded habitats, reducing pollution, and promoting sustainable land-use practices. Collaborate with stakeholders, including local communities, NGOs, and government agencies, to enhance the effectiveness of your actions (Nature Action & Aligned Incentives ).

Step 5: Monitor and report progress

Regularly monitor and report on your progress towards achieving your biodiversity targets. Utilize frameworks like the GRI , ISSB , TNFD and SBTN to guide your reporting and ensure transparency. Publicly disclose your efforts and outcomes to stakeholders to build trust and demonstrate your commitment to sustainability (Green Business & S&P Global ).

Overcoming challenges

1. Aligning with multiple frameworks: One of the significant challenges businesses face is aligning with multiple biodiversity and nature-related frameworks. The Thematic Report on Biodiversity Disclosure Initiatives highlights the need for clarity and consistency across different frameworks to avoid confusion and duplication of efforts. Businesses should strive to harmonize their reporting with major frameworks such as the TNFD, GRI, and CDP (Green Business ).

2. Building internal capacity: Implementing effective biodiversity action plans requires building internal capacity and expertise. Invest in training and capacity-building programs for your employees to ensure they understand the importance of biodiversity and are equipped with the skills needed to implement your action plans effectively.

3. Engaging stakeholders: Engaging with stakeholders, including investors, customers, and local communities, is crucial for the success of biodiversity initiatives. Use tools like the Nature Action 100 benchmark indicators to assess and communicate your progress and align your actions with stakeholder expectations (Nature Action ).

Conclusion

Designing and implementing corporate biodiversity and nature action plans are essential steps towards achieving long-term sustainability and aligning with global environmental goals. By following the latest guidelines and frameworks, businesses can effectively manage their nature-related risks and opportunities, contribute to biodiversity conservation, and build resilience against environmental challenges. As biodiversity loss continues to pose significant risks to business operations and the global economy, proactive corporate action is more critical than ever.

References

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