Step-by-step guide for more biodiversity in companies

In our guide to biodiversity in companies, we show how to identify specific biodiversity issues and set targets and measures. In the Basic articles on biodiversity We have explained why the topic is becoming increasingly relevant in companies, e.g. due to the EU taxonomy or increasingly globalised supply chains. Now we will show how a company can find out where and how it can act with regard to biodiversity. This could also be understood as a biodiversity strategy for companies. We also provide initial tips on how to implement the measures.

Contents

• 1. analysis of the interaction between biodiversity and companies
• Breakdown of the effects of the company
• Analysing resource flows along the product life cycle
• Inside-out analysis: impact of the company on biodiversity
• Outside-in analysis: impact of biodiversity on the company
• Supplementary audit: Biodiversity checklists
• Result of the analysis for biodiversity and companies
• 2. defining the company's biodiversity objectives
• Examples of corporate biodiversity targets
• 3. implementation of measures for biodiversity in the company, incl. tips
• Conclusion: The complex topic can be handled well with a structured approach

1. analysis of the interaction between biodiversity and companies

A comprehensive analysis forms the basis for all subsequent measures relating to biodiversity. The aim is to find out which topics or fields of action are most relevant with regard to biodiversity because the impact through the company or the impact on the company is the strongest.

Such an analysis also forms the basis for subsequent reporting in accordance with CSRD and EU taxonomy.

We describe a qualitative way of analysing that is easy to implement in practice. This differs from the collection of data, e.g. through life cycle assessments, which naturally provide much more precise results. However, if comprehensive information is already included in the qualitative analysis, this assessment is already very meaningful in most cases.

Breakdown of the effects of the company

In our Basic articles on biodiversity we have already shown a practicable structure that we want to use again in our guide to biodiversity in companies. It shows the areas in which a company can have an impact on biodiversity:

Core business	Operation	Utilisation of funds
Effects of the product / service in use	Effects of in-house manufacturing / production	Effects of the type of investment of the capital (e.g. sustainable bank)
Effects of the disposal of a product	Impact of all administrative activities, i.e. office buildings, purchasing, vehicle fleet, etc.	Influence through the use of profits for donations, etc.
Impacts from the upstream value chain (raw material extraction, pre-production, etc.)	Effects of logistics for products
	Impact through sensitisation of employees

We will use these areas in the following to analyse these effects. Depending on the company, the individual areas should be broken down in more detail. Manufacturing companies, for example, should clearly break down the supply chain into raw material extraction, initial processing and pre-production. A transport company should break down the important processes in ship transport, e.g. loading, crossing and unloading.

Analysing resource flows along the product life cycle

Now we want to go into more detail about how the company affects biodiversity along these areas. To do this, we look at the resource flows along the areas. This means that for each area, we establish which resources are used (input) and which resources flow out (output). This is particularly important because impacts on an ecosystem mainly occur through the input or utilisation of resources. These are, for example, the input of toxic substances, the sealing of surfaces or the deforestation of forests.

Inside-out analysis: impact of the company on biodiversity

Based on the identified resource flows, we can now carry out an inside-out analysis. This means that we can assess whether and to what extent the company has an impact on biodiversity along the sectors.

At this point, we take the Aichi Biodiversity Targets (as shown in the Basics article) at hand.

If we modify the Aichi Targets so that we can use them as criteria for testing, the following possible list emerges:

• Destruction of ecosystems (deforestation, mining, sealing)
• Overfishing or damage to marine ecosystems
• Agricultural overuse of land
• Pollution of the environment
• Spread of invasive species
• Acidification of the oceans
• Pollution of rivers and lakes
• Endangerment of threatened species
• Promotion of low genetic diversity of crops and livestock
• Endangering ecosystems around indigenous peoples
• Endangering ecosystems as CO2 reservoirs and against desertification

For an audit, we can now create a matrix and compare the areas and biodiversity criteria with each other. This matrix can look like the following example:

Each field in the matrix is then entered:

• Whether an effect is known or suspected,
• What exactly the effect is and how it comes about,
• How severe the impact is (relative to the other impacts in the matrix)

These entries should be supported by detailed background information, research and expert knowledge. The screening of studies, consultations with experts and advisors and own knowledge from the supply chain are suitable for this purpose.

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Outside-in analysis: impact of biodiversity on the company

Similar to the procedure for a materiality analysis for all sustainability topics, an outside-in analysis should also be carried out when analysing biodiversity. Here we ask what impact ecosystems or the future loss of biodiversity will have on the company's activities. As a result, we identify risks that a company can prevent at an early stage.

We can again use the matrix methodology to analyse this. In this case, we modify the areas so that they reflect the processes of the product life cycle and within the company. The biodiversity topics are modified to include both current ecosystem impacts and the risk of future changes.

The results of the outside-in analysis are very company-specific and can vary greatly. Here are some examples of outside-in risks:

• Crops at risk due to lack of pollinating insects
• Prevention of inland waterway traffic due to explosive aquatic plant growth
• Endangerment of a forest as a tourist destination if the spruce monoculture is susceptible to bark beetles
• Scarcity of cork as an industrial raw material if cork oak forests become endangered

Supplementary audit: Biodiversity checklists

In addition to the analysis in the matrices, the Checklists from the "Biodiversity in good company" initiative can be used. These supplement specific questions on biodiversity in the company with further topics and can expand the analysis.

Result of the analysis for biodiversity and companies

The analyses carried out are now brought together. From the sum of the results, we can now determine which topics have the greatest impact in terms of biodiversity. This list of topics serves as the basis for deriving targets and measures from a strategic perspective.

2. defining the company's biodiversity objectives

The analysis determined which biodiversity issues the company has the greatest impact on - or which are the greatest risks for the company due to ecosystem changes.

Since the goal of having no impact on biodiversity at all cannot be achieved in most cases without burying the business model, a strategic decision must now be made as to which goals are pursued for which topics.

The company can continue to use the analysis as a guide when selecting topics. Other strategic aspects must be taken into account when setting biodiversity targets:

• In which areas and with which measures can we achieve the greatest impact in terms of resource efficiency?
• Which topics are most motivating for employees and customers?
• How do the topics fit into the corporate and sustainability strategy?

Determining goals and measures is not a trivial process for most sustainability issues. It is necessary to constantly weigh up how much impact can be achieved at what price. But also how a measure can also add value for the company and, for example, create a competitive advantage.

We usually recommend forming small target teams for the target-setting process, which should initially set very ambitious targets and measures. The collected goals of the teams are then aligned with budgets and other strategic initiatives. We do not go into this process in detail in our guidance for biodiversity in companies.

Examples of corporate biodiversity targets

To make the targets more tangible, here are a few examples of biodiversity targets set by well-known companies:

• The supply chain for our own-brand chocolate will be deforestation-free. (I.e. we want to be sure that no forests are cut down to grow the raw materials)
• We want to switch all our transport packaging from stretch film to plastic-free alternatives in order to prevent microplastics from entering the environment.
• Our Greenline façade paint is free of all substances that have a negative effect on water, soil and air, even in the medium and long term.
• We want to switch the cultivation of our coffee from monocultures to mixed cultures, such as permaculture or agroforestry.
• All our (ship) discharging processes should run through filter systems to prevent the spread of foreign species across the oceans.

3. implementation of measures for biodiversity in the company

The implementation of the measures in the company is part of the company's normal process. Nevertheless, we would like to give some tips on how implementation can work even better, especially when it comes to the complex issue of biodiversity.

Tips for implementation

• Involvement of local stakeholders: Stakeholders (i.e. employees, local residents, indigenous peoples, etc.) should be involved where the measures are to be implemented. They are best placed to assess whether the measure will have undesirable side effects. In most cases, biodiversity projects are well received and even actively supported by stakeholders.
• Observe rebound effects: The implementation of the measures should be regularly reviewed, including whether effects occur that could not be taken into account. Ecosystems are complex and side effects are therefore difficult to predict.
• Have science, NGOs or institutes accompany you in your research: Many universities, NGOs and environmental protection organisations have accumulated an enormous amount of knowledge about ecosystems. Involving them can significantly increase the success of the measure and deliver scientifically sound results.
• Be patient: Ecosystems need time to react to changes. It therefore pays to be patient.

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Conclusion: The complex topic can be handled well with a structured approach

Our guidance for biodiversity in companies shows that this complex topic can be handled well. Analysing the effects on ecosystems and the impact of ecosystems on the company is the essential part of an authentic commitment to biodiversity. Companies can achieve a great deal for biodiversity with a systematic approach. In this way, they can make an important contribution, fulfil the increasing requirements and distinguish themselves on the market.

In our Basic articles on biodiversity We have explained why the topic is becoming increasingly relevant in companies, e.g. due to the EU taxonomy or increasingly globalised supply chains. Now we will show how a company can find out where and how it can act with regard to biodiversity. This could also be understood as a biodiversity strategy for companies. We also provide initial tips on how to implement the measures.