Biodiversity loss is just as urgent as climate change

“Two sides of the same coin”

In this article, Merijn Doornink explains why biodiversity is a crucial issue for businesses and what opportunities exist to make a tangible positive impact.

Before we delve deeper into the subject, what exactly do we mean by “biodiversity”?

Biodiversity refers to the diversity of all life in and on the air, water, and soil. It encompasses three levels: diversity of ecosystems (forests and rivers), diversity of species (different plants and animals), and genetic diversity within these species.

Why is this such an urgent topic?

Our natural world is currently deteriorating at an unprecedented rate. For example, worldwide, wild animal populations have declined by 69% over the past 50 years. Ecosystems are becoming unbalanced and less resilient. The World Economic Forum publishes an annual Global Risks Report that provides insight into the greatest risks to the global economy and society. Biodiversity loss is now the greatest risk over the next 10 years, second only to climate change. This is partly because biodiversity is inextricably linked to climate change — and vice versa; they are two sides of the same coin. If you tackle one but not the other, you’re still just as far from the solution.

Are there already laws that require efforts to restore biodiversity?

At the global level, the Global Biodiversity Framework was developed in 2022 — a kind of Paris Agreement with 23 goals. As part of the EU Green Deal, a long-term strategy for biodiversity has also been drawn up, known as the Biodiversity Strategy for 2030. The goal set forth in this strategy is that our biodiversity must not have declined by 2030 compared to 2020, and that starting in 2030, we must work toward a net-positive status — that is, nature restoration and regeneration. The Nature Restoration Law and the European Deforestation Regulation are the most recent legislative proposals that require EU countries and organizations to take action.

What is the relationship between businesses and biodiversity?

Business activities are, of course, one of the main causes of biodiversity loss, due to the intensive use of land, water, and natural resources. This entails a responsibility. At the same time, this also shows just how dependent we are. Through the provision of various services, biodiversity generates an economic value of more than 150 trillion dollars annually. Depending on the sector you’re in, your own operations and your value chain can therefore be severely impacted by biodiversity loss. This applies not only to agricultural businesses but also, for example, to construction companies due to the extraction of crucial raw materials. However, companies have not yet adequately assessed these risks and are currently focusing primarily on reducing CO2 emissions, which leaves them vulnerable in the future.

Why should a company work toward biodiversity restoration?

To start with, by improving biodiversity in your supply chain and your own operations, you make your business more resilient to the effects of climate change, such as floods, droughts, and other extreme weather events. In addition, the return on investment is high: calculations show that every euro you invest in nature yields 8 to 38 euros in value for society. What’s more, biodiversity is a local issue that can be addressed in a targeted manner and, in some cases, can be restored within just a few years. There’s much more low-hanging fruit out there, which means there are more opportunities to make an immediate positive impact. If you give nature a chance, it can bounce back incredibly quickly — but we do have to give it that chance. By comparison, CO₂ emissions must be reduced on a global scale, take several hundred years to disappear from the atmosphere, and are less tangible. Your individual contribution in this area is therefore much less concrete.

So how do you quantify your impact on biodiversity? It seems pretty hard to measure to me.

It’s true that measuring biodiversity loss is much more difficult than measuring CO2 emissions. That is why the Science Based Targets for Nature (SBTN) framework was recently developed — a method for companies to assess their impact on biodiversity, set targets, and take action. Among other things, SBTN focuses on the primary cause of biodiversity loss: land-use change.

How does 2BHonest help customers take action on biodiversity?

We believe that you don’t have a comprehensive ESG strategy if you don’t incorporate biodiversity, and we convey this message to our clients. When you get started, the first step is to measure your company’s impact on biodiversity. SBTN can be quite complicated to get started with, especially if you don’t have a large sustainability department. We’ve used SBTN as the basis for developing a simple and actionable method to measure your impact and translate it into concrete actions. First, we map out business locations, activities, and the associated pressures on nature. Then we take a closer look at the impact on nature and the risks this poses to a company. Next, we prioritize the locations and impacts and set goals for each location. Finally, we work together to draw up an action plan to get started and help monitor progress.

Want to learn more about biodiversity as it relates to your business? Merijn is here to help!