Biodiversity Application Guidance Single Disclaimer

CDSB Framework
Application
guidance for
biodiversity-related
disclosures
November 2021
cdsb.net/biodiversity
About the
Climate Disclosure
Standards Board
3 CDSB Framework | Application guidance for biodiversity-related disclosures
The Climate Disclosure Standards Board Recognising that information about natural,
(CDSB) is an international consortium of social and financial capital is equally essential
business and environmental NGOs. We are for an understanding of corporate
committed to advancing and aligning the performance, our work builds trust and
global mainstream corporate reporting model transparency needed to foster resilient capital
to equate natural and social capital with markets. Collectively, we aim to contribute to
financial capital. more sustainable economic, social and
environmental systems.
We do this by offering companies a
framework for reporting environmental and social For more information, visit cdsb.net, follow us
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information. In turn this helps them to provide to our newsletter. Visit the TCFD Knowledge
investors with decision-useful environmental Hub for free e-learning online courses.
information via the mainstream corporate report,
enhancing the efficient allocation of capital. We welcome your input and discussions.
Regulators have also benefited from CDSB’s If you would like to comment on this document,
compliance-ready materials. please contact us at [email protected].
Copyright © 2021 Climate Disclosure Standards Board (CDSB) and CDP Worldwide.
All rights reserved.
Dissemination of the contents of this report is encouraged. Please give full acknowledgement of the
source when reproducing extracts in other published work. All information in this report is provided
without warranty of any kind, express or implied. The authors disclaim any responsibility for the
information or conclusions in this report. The authors accept no liability for any loss arising from any
action taken or refrained from being taken as a result of information contained in this report.
CDSB would like to thank the members • Linda Lowson, Esq., Global ESG Financial
of the CDSB Technical Working Group Regulatory Institute
on Biodiversity-related disclosures for their
• Thomas Maddox, CDP
guidance and feedback on the content
of this publication. • Nadine McCormick, WBCSD
• Samantha McCraine, Science Based Targets
• Robert Adamczyk, European Bank for Network
Reconstruction and Development (EBRD)
• Emily McKenzie, Independent Dasgupta
• Jonas Aechter, WWF Review team
• Louise Amand, Capitals Coalition • Rebecca Nohl, PhD. SYSTEMIQ
• Alexandra Antsuga, European Bank for • Amy O’Dwyer, Davy
Reconstruction and Development (EBRD)
• Matt Orsagh , CFA Institute
• Simon Armstrong, Simon Armstrong and
• Ellen Osborne, Rio ESG
Associates
• Jo Paisley, Global Association of Risk
• Faye Bennett-Hart, Rio ESG Professionals
• Scarlett Benson, SYSTEMIQ/Food and Land • Rajat Panwar, PhD, Appalachian State
Use Coalition University
• Sam Bower, Balfour Beatty • Nicole Pasricha, Deep Science Ventures
• Lyndall Bull, PhD, Independent • Tim Polaszek, Capitals Coalition
• Maria Ana Campos, WBCSD • Juliette Pugliesi, Science Based Targets
• Rodrigo Cassola, UNEP-WCMC Network
• Siobhan Cleary, Science Based Targets • Jonas Rooze, BloombergNEF

Network (SBTN) • Oscar Sabag, Science Based Targets Network
• Celia Cole, Sainsbury’s • Leah Samberg, Rainforest Alliance
• James Dalton, PhD, IUCN • Marta Santamaria, Capitals Coalition
• Paul Dhillon, NetZero Globe Ltd • Kim Schumacher, PhD, Tokyo Institute of
• Charlie Dixon, Vivid Economics Technology
• Rosie Dunscombe, Independent • Robyn Seetal, IkTaar Sustainability
• Rob Evans, Earth Active • Viera Ukropcova, CDP
• John Finisdore, Point Advisory • Gabriel Thoumi, CFA, FRM, Certified

Ecologist, Planet Tracker
• Charlotte Gardes, Paris II-Assas University
• Caroline van Leenders, The Netherlands
• Marcelo Gonçalves de Lima, Independent Enterprise Agency
• Mark Gough, Capitals Coalition • Varun Vats, Syngenta Group
• Annelisa Grigg, Global Balance • Yann Verstraeten, ICF
• Stephanie Hime, PhD, Little Blue Research • Thomas Viegas, Independent
• Joel Robert Houdet, Endangered Wildlife • Ellie Walshe, Davy Horizons
Trust
• Lucy Watkinson, HM Treasury, UK
• Andre Jakobs, ABN AMRO
• Gemma James, UN PRI CDSB would also like to thank the organisations
• Johan Lammerant, Arcadis and individuals that responded to the public
consultation.
• Joanne Lee, WWF International
Contents
About the Climate Disclosure Standards Board 03
Chapter 1
About this guidance
1. Structure of the Biodiversity Application Guidance 08
2. The CDSB Framework and background to the Biodiversity Application Guidance 09
2.1 CDSB Framework 09
2.2 Background to the Biodiversity Application Guidance 09
3. Mainstreaming biodiversity reporting 10
Chapter 2
Biodiversity and business
1. The importance of biodiversity to business and society 14
2. Business and biodiversity interactions 17
2.1 Impact and dependencies 17
2.2 Risks and opportunities 18
3. Key Characteristics 20
Chapter 3
Application guidance for biodiversity-related disclosures
1. Reporting expectations and important considerations 24
1.1 Applying materiality 24
1.2 Providing contextualised and business-specific
biodiversity-related information 25
1.3 Disclosing information in a changing landscape 26
1.4 Reporting boundaries and period 26
1.5 Using existing disclosures and resources, and ensuring connectivity 27
2. Roadmap and checklist for biodiversity-related disclosures 27
3. Biodiversity Application Guidance 30
REQ-01 Governance 30
1. Governance arrangements and rationale 30
2. Information flows and oversight 30
3. Stakeholder engagement and cooperation 31
4. Incentivisation 32
5. Specificity of bioversity governance 32
REQ-02 Management’s environmental policies, strategy and targets 33
1. Providing the context for biodiversity policy, strategy, and targets 33
2. Policies and strategies 39
3. Management responses 40
4. Targets and timelines 43
5. Resourcing 44
REQ-03 Risks and opportunities 48
1. Detailing risks and opportunities 52
2. Quantification of financial risks and opportunities 53
3. Connecting information 54
REQ-04 Sources of environmental impact 57
1. Indicators and metrics 57
2. Contextualising biodiversity-related metrics 64
3. Decision-useful information 64
4. Disaggregation and categorisation 64
5. Rationale of selection and methodological details 65
REQ-05 Performance and comparative analysis 68
REQ-06 Outlook 71
1. Scenario analysis 72
2. Methods, assumptions and uncertainties 72
3. Iteration and learning 73
4. Basis for conclusions 74
Chapter 4
Appendices
1. CDSB Framework – Guiding principles and reporting requirements 76
2. CDSB materiality approach 77
3. Mapping the CDSB requirements to TCFD and biodiversity reporting standards 79
4. Definitions 80
5. Key CDSB resources 82
6. Common examples of biodiversity impacts drivers and changes
to the state of biodiversity 83
7. Key initiatives 84
8. Tools, models and frameworks supporting the assessment
and quantification of biodiversity impacts 86
9. Databases that may be useful for identifying risk areas (REQ-03),
measuring impact (REQ-04) or monitoring performance (REQ-05) 88
10. Mapping the Pathway approach and DPSIR framework 88
Chapter 1
About this
guidance
The CDSB Framework application guidance for • Explained examples of good practice in
biodiversity-related disclosures (the Biodiversity mainstream biodiversity reporting.
Application Guidance) has been produced by
CDSB to assist companies in the disclosure of the In addition, the Biodiversity Application Guidance
material information about the risks and provides an overview of the significance of
opportunities that biodiversity presents to an biodiversity to business, explaining the importance
organisation’s strategy, financial performance and of biodiversity-related business risks and
condition within the mainstream report opportunities, and highlighting the key
(biodiversity-related financial disclosure).i It is characteristics of biodiversity and their importance
designed to supplement the CDSB Framework for to corporate reporting (see Business and
reporting environmental and climate change Biodiversity).
information to investors (CDSB Framework)1
(see Appendix 1). To ensure connectedness and coherence between
the Biodiversity Application Guidance and existing
reporting frameworks and standards, it is
1. Structure of the Biodiversity important to align to widely accepted definitions
Application Guidance for key concepts and terms. The following
definitions apply throughout the Guidance:
The Biodiversity Application Guidance
is designed around the first six reporting • Biodiversity: The diversity of life in all its forms,
requirements of the CDSB Framework (App. 1): including the diversity of species, genetic
variations within species, and of ecosystems.2
• REQ-01 Governance
• Species: A group of individuals that actually or
• REQ-02 Management’s environmental policies, potentially interbreed and produce fertile
strategies and targets offspring.3
• REQ-03 Risks and opportunities • Ecosystem: A dynamic complex of plants,

animals, and microorganisms, and their non-
• REQ-04 Sources of environmental impact living environment.4
• REQ-05 Performance and comparative analysis • Ecosystem services: The flows of benefits
ecosystems provide to people.5 See Box 1 for
• REQ-06 Outlook further discussion of the definition of ecosystem
services, including final ecosystem services.
The first six reporting requirements set out the key
content elements for reporting material • Natural Capital: The stock of renewable and
environmental information in the mainstream non-renewable natural resources (e.g. plants,
report. For each of the reporting requirements, the animals, air, water, soils, minerals) that combine to
Biodiversity Application Guidance provides: yield a flow of benefits to people (ecosystem
services).6
• A checklist including suggestions for effective
biodiversity-related disclosures; • Biodiversity impact: a change in the diversity of
ecosystems and/or species that may take place
• Detailed reporting suggestions and guidance in because of business activities. Changes to the
relation to biodiversity-related issues to state of ecosystems (e.g. extent and condition/
complement the CDSB reporting requirements; integrity) and species (e.g. habitat, population size)
can be used to signal changes in biodiversity.
• A selection of external resources to assist
companies in developing their mainstream • Biodiversity dependency: a reliance on or use of
biodiversity reporting (see Useful Resources under biodiversity, including biological resources (e.g.
each requirement and Appendices 5-9); and materials, liquids, genetic resources) from both
i Mainstream reports (e.g. general purpose financial report and

mainstream financial report) are the annual reporting packages in which
companies are required to deliver their audited financial results under
the corporate, compliance or securities laws of the country in which they
operate, e.g. the annual report in the UK and the 10-K in the USA.
species and interactions with various ecosystem revised CDSB Framework currently under
processes and services (e.g. pollination, water consultation does not substantively amend the
filtration, crop pest/disease control or water reporting principles and requirements and nor is
flow regulation).7 it expected the final version will. This application
guidance should therefore remain wholly
• Value chain: An organisation’s direct operations, complementary with any potential amendments
upstream activities and downstream activities. to the CDSB Framework.
Direct operations cover activities over which the
organisation has direct control, upstream activities The CDSB Framework represented one of the
cover the activities of suppliers and downstream main resources from which the
activities are those linked to the purchase, use, recommendations of the Task Force on
re-use, recovery, recycling and final disposal of the Climate-related Financial Disclosure (TCFD),8
organisation’s products and services.ii published in 2017, were drawn. Therefore, the
CDSB Framework and its reporting principles
Appendix 4 contains the full list of definitions of and requirements (Appendix 1) are aligned with
the key terms used throughout the Biodiversity the TCFD recommendations (Appendix 3).
Application Guidance. TCFD has advanced the narrative on
organisational board-level financial and risk
The Biodiversity Application Guidance considers management considerations of environmental
terrestrial and aquatic biodiversity at the speciesiii impacts to the business, particularly those likely
and ecosystem levels, as well as the ecosystem to result from climate change.
services underpinned by biodiversity.
2.2 Background to the Biodiversity
Application Guidance
The Biodiversity Application Guidance is part of
2. The CDSB Framework and a series of CDSB Framework application
background to the Biodiversity guidance, which aims to extend the TCFD
recommendations and its core elements to
Application Guidance nature. It is designed to support the intended
users in applying the CDSB Framework to the
2.1 CDSB Framework natural capital elements of climate change,
The CDSB Framework is focused on reporting water, and biodiversity. Following the guidance
material environmental information (see on climate-related and water-related
Appendix 2) in mainstream reports to investors. disclosures, the Biodiversity Application
This builds directly on the International Guidance is the third CDSB Framework
Accounting Standard Board’s (IASB’s) supplementary application guidance document
Conceptual Framework, applying financial that is designed to enhance the quality of
reporting principles to environmental and disclosures for such significant matters.
climate change information. CDSB’s Framework Working in conjunction with the reporting
has evolved over time, with the first version, the principles and requirements of the CDSB
Climate Change Reporting Framework, released Framework, each application guidance assists
in 2010, focused on the risks and opportunities companies to develop clear, concise, consistent,
that climate change presents to an organisation’s and comparable (inter-period comparability of
strategy, financial performance, and condition. In the same entity and inter-entity comparability)
2013, CDSB’s Board agreed to expand the scope disclosures, enhancing the decision-usefulness
of the Framework beyond climate change and of their mainstream reporting on sustainability-
Greenhouse Gas (GHG) emissions to encompass related financial matters to investors. Given the
environmental information and natural capital, interconnected nature of environmental topics,
with this revision published in 2015. At the time the application guidance documents are
of writing, CDSB is working to further expand complementary with some overlapping sub-
the scope of the Framework to cover both topics (Figure 1).
environmental and social information. The
ii Adapted from: Capitals Coalition (2016) Natural Capital Protocol.

Available from: https://naturalcapitalcoalition.org/natural-capital-protocol/
iii Including both diversity within (genetic) and among species
The objective of the Biodiversity Application (Appendix 2) needed for effective capital
Guidance is to support organisations in preparing allocation, the Biodiversity Application Guidance
high-quality disclosures that enable users of aims to assist in driving the transition to a
mainstream reports to assess material sustainable and resilient economy. The intended
biodiversity-related financial information. users are organisations, both single companies
By ensuring that investors are receiving the and corporate groups, and those responsible for
material biodiversity-related information financial, governance and sustainability reporting.
CDSB
Framework
CDSB Framework for Application guidance

reporting environmental & for biodiversity-related
climate change information disclosures
Biodiversity-climate nexus Biodiversity-water nexus

(e.g. habitat loss due to deforestation (e.g. impacts on biodiversity due
and related GHG emissions; changes to water scarcity, pollution, or higher
in migration routes and timing due water temperatures)
changes in temperatures)
Climate-water nexus
(e.g. physical risks - water scarcity and sea level rise)
Application guidance Application

for climate-related guidance for water-
disclosures related disclosures
Figure 1. The relationship of the CDSB Framework for reporting environmental and climate change information, the Biodiversity Application
Guidance and other guidance in the series. The dashed lines between Application Guidance documents illustrate their interconnected nature
and the presence of overlapping topics.
3. Mainstreaming biodiversity climate change, there is a growing awareness of

reporting the risks associated with other aspects of
natural capital, such as water stress and the loss
With a growing understanding of the of biodiversity.9, 10, 11
significant risks that changes to natural capital
can pose to the stability of the financial system The risks resulting from a loss of nature have
and to broader society, an increasing number the potential to disrupt both society and the
of regulators are prioritising environmental stability of the financial system, with more than
disclosure.iv Whilst most literature on financial 50% of global gross domestic product (USD 44
risks related to natural capital has focused on trillion) being moderately or highly dependent
iv For example, EU initiatives related to the Corporate Sustainability

Reporting Directive, to the EU Taxonomy Regulation, and to the Sustainable
Finance Disclosure Regulation, the announcement of mandatory adoption
of TCFD by national regulators (e.g. New Zealand, UK, Hong Kong,
Switzerland), or developments and publications by the IFRS and FASB.
on nature and the goods and services it compared to 100% for GHG emissions, and
provides and over 2.1 billion jobs relying on 90% for water. Similar analyses have echoed
effective management and sustainability of these findings,27, 28 for example, KPMG’s 2020
ecosystems.12, 13 For example, the documented survey of sustainability reporting found that
decline in insect populations puts at risk the less than one quarter of “at-risk” companies
USD 235 – 577 billion of crop production that is worldwide report risks from the loss of
dependent on pollination;14 and deforestation biodiversity.29
and land degradation cost as much as USD 6.3
trillion a year through their impact on forest and Biodiversity-related corporate reporting is a
agricultural productivity.15 As the Dasgupta fast-moving, developing area, and there is
Review on the Economics of Biodiversity makes ongoing work to create harmonisation,
clear, all human activity ultimately depends on particularly related to measurement and
ecosystems; our economies are embedded in disclosure. For example, the Science Based
nature, not external to it.16 Targets Network (SBTN) has issued initial
guidance for nature prior to publishing
The finance sector is indirectly exposed to integrated science based targets for all aspects
business biodiversity-related risks through of nature, including biodiversity (expected in
loans, investments, and underwriting 2022), the Align project aims to support
activities,17, 18 yet it also plays a key and growing businesses and other stakeholders in
role in achieving biodiversity targets through developing a standardised approach to
catalysing behaviour changes and influencing biodiversity measurement and the Transparent
economic pathways, business models and project is developing a standardised natural
practices.19 Reacting to this, investors are capital accounting and valuation methodology.
increasingly engaging with investees on The Taskforce on Nature-related Financial
biodiversity-related risks.20, 21 For example, Disclosures (TNFD) seeks to provide specific
many banks have enhanced due diligence sector agnostic recommendations for
processes when financing assets located in mainstream reports like the TCFD
protected or sensitive areas, financial recommendations do for climate-related
institutions are exploring how to measure the financial risks and opportunities but is not due
biodiversity impact of their portfolios22, 23, 24, 25 to be published until 2023. The International
and rating agencies increasingly consider Financial Reporting Standards (IFRS)
environmental concerns and companies’ risk Foundation, in November 2021, announced the
management capabilities. As a result, corporate formation of a new International Sustainability
biodiversity reporting is necessary to monitor Standards Board (ISSB) to develop a
performance and demonstrate ecological comprehensive global baseline of high-quality
credentials to investors. disclosure standards, on climate and other
sustainability issues, to meet investors’
It has been demonstrated that disclosure on information needs, building on the work of
biodiversity is currently far less prevalent than existing investor-focused reporting initiatives. In
other environmental topics, most notably light of this announcement we expect increased
climate. CDSB’s review of 50 large European focus by the IFRS Foundation and its
companies’ reporting in 2020 under the constituent boards on driving complete,
European Union (EU) Non-Financial Reporting consistent and comprehensive disclosure of
Directive (NFRD)26 found that 46% of material sustainability-related information
companies provided some information on across the mainstream report, including the
biodiversity in their reports, as compared to financial statements.
100% of companies for climate change. Where
disclosures were provided, they often lacked Positive steps are being made by businesses,
the relative specificity and maturity of climate- with leading organisations increasingly
related disclosure, containing generic committing to integrating biodiversity into their
management approaches and high-level decision-making and operations,30 integrating
commitments. Additionally, only 10% of disclosures on significant biodiversity issues into
companies reported metrics on biodiversity, their reportingv and convening to demonstrate
v For example, Walmart has committed to help protect, manage or

restore at least 50 million acres of land and one square mile of ocean
by 2030. See: https://corporate.walmart.com/newsroom/2020/09/21/
walmart-sets-goal-to-become-a-regenerative-company
and share ambition.vi However, more work is element and increasing standardised
needed to ensure that reporting on material assessment and reporting.31
information about biodiversity-related issues in
mainstream reports is of sufficient quality and This Guidance aims to fill the current information
detail to support decision-making by investors gap and assist in preparing companies for new
and other stakeholders, as the TCFD regulations and investor demands. By illustrating
recommendations illustrate for climate. how the CDSB Framework can be applied to
Additionally, given ongoing policy, stakeholder biodiversity-related reporting in mainstream
and industry initiatives on the interactions reports through the integration of elements from
between business and natural capital and the existing biodiversity reporting standards and
required related corporate disclosure,vii there is frameworks (Appendix 3) and alignment with the
clear momentum for an increase in policy TCFD recommendations, it is envisioned that this
response in the shape of mandatory corporate guidance will contribute to the work of the IFRS
disclosure, including biodiversity as a core Foundation via the establishment of the ISSB.
vi For example, the more than 900 businesses of the Business for Nature
initiative (with combined revenue of $4.3 trillion) are urging governments
to adopt policies on how to reverse nature loss in this decade. See: https://
www.businessfornature.org/advocate
vii For example: International Sustainability Standards Board (ISSB) of
the IFRS Foundation, EU Corporate Sustainability Reporting Directive and
EU sustainability reporting standards, TNFD, and Science-Based Target
Network.
Chapter 2
Biodiversity
and business
1. The importance of 12) and climate action (SDG 13). Biodiversity is

biodiversity to business integral to the planetary boundary of biosphere
integrity, as well as adaptation to climate-
and society change, land-system change and ocean
International initiatives, such as the Sustainable acidification.35
Development Goals32 (SDGs) and Planetary
Boundaries,33 as well as The Dasgupta Biodiversity has both business and societal value.
Review,34 highlight biodiversity as essential It is integral to businesses, economies, and wider
for the sustainability of natural and socio- society, being the living component of natural
economic systems. Direct biodiversity-related capital and underpinning the ecosystem services
considerations related to the SDGs include people receive from nature (see Box 1 and Figure
(but are not limited to) life below water 2). For example, biodiversity is essential for
(SDG 14) and life on land (SDG 15). In addition, preserving ecosystem integrity and the supply of
biodiversity underpins many actions needed to services such as providing essential resources,
meet the other SDGs, for example playing a providing resilience to floods and droughts and
pivotal role in tackling hunger (SDG 2), good supporting fundamental processes such as carbon
health and well-being (SDG 3), promoting cycles, water cycles and soil formation, which are
responsible consumption and production (SDG necessary to sustain living conditions on earth.36, 37
FLOWS
STOCKS
Ecosystem and
Natural Capital
abiotic services
VALUE
Benefits to
business & society
Figure 2. Relationship between biodiversity and natural capital stocks, flows, and values. Adapted from Capitals Coalition and Cambridge
Conservation Initiative. 2020. Integrating biodiversity in natural capital assessments. Available from: https://capitalscoalition.org/wp-content/
uploads/2020/10/Biodiversity-Guidance_COMBINED_single-page.pdf
Box 1: Ecosystem services and biodiversity

Ecosystem services refer to the flows of benefits that ecosystems make to people (e.g. timber,
fibre, pollination, water regulation, climate regulation, recreation, mental health benefits),38 enabling
human activities which include the operation of businesses. Ecosystem services result from
ecosystem function, i.e. the flow of energy and materials from ecosystems to humans and other
ecosystems.39 There are multiple definitions and classifications of ecosystem services,viii including
the common categorisation into types, for example:40
• Provisioning services, such as the provision of timber, food, fibres, energy and freshwater
that can be used for the supply of products or within business operations;
• Regulating/maintenance services, including the moderation and/or regulation of natural
phenomena, e.g. air filtration, water purification, soil erosion control and flood control; and
• Cultural services, such as recreational, spiritual and religious, aesthetic, cultural heritage
and tourism service.
Some also use the term nature’s contribution to people41, 42 (e.g. in the Intergovernmental Science-
Policy Platform on Biodiversity and Ecosystem Services (IPBES) Global Assessment and in the
post-2020 global biodiversity framework), which has a similar meaning to ecosystem services.43
When an ecological end-product transitions to being either an economic benefit or something
that can be directly used or appreciated by people, it is defined as a final ecosystem service.44, 45
For example, nursery fish population services (an ecological function that is sometimes called an
intermediary ecosystem service) are generally required for the stock of fish to be available to a
fisher (final ecosystem service).
Biodiversity influences the functioning and productivity of ecosystems,46 acting as an enabling
asset that is essential for and underpins final ecosystem services.47 Greater biodiversity generally
results in higher quality, quantity and resilience of ecosystems and the services they provide.48
For example, species abundance, diversity, or the presence of key species in a given ecosystem
can help maintain the ecosystem functioning and resilience, and the related provision of
ecosystem services.49, 50, 51, 52 The Dasgupta Review distinguishes three features of diversity that are
significant: richness (the number of unique life forms); the flatness of the distribution of life forms
(evenness); and dissimilarities in the life forms (heterogeneity).53
For corporate assessment and reporting purposes, focusing on final ecosystem services enables
greater distinctions to be made among biodiversity (stocks), ecosystem services (flows) and their
values. As a result, assessments and reports should have increased accuracy, helping avoid double
counting among other common inaccuracies.54, 55 The Biodiversity Application Guidance refers to
final ecosystem services throughout. However, the Guidance is still applicable and relevant to any
definition of ecosystem services an organisation chooses to adopt.
Despite the critical role played by biodiversity, (measured in biomass) declining by 82%
drivers from human activities (including from compared to historical records,58 being
businesses) are causing an unprecedented and described by scientists as a “biological
accelerating loss on a global scale.56 This annihilation” amounting to the sixth mass
includes the rate of species extinction of plants, extinction.59 In addition, the world’s ecosystems
mammals, fish, and others being approximately have declined in size and condition by 47%
1,000 times higher than background extinction compared to estimated baselines, for example,
rates57 and the total numbers of wild mammals over 85% of wetland habitats had been lost by
viii For example, existing definitions and groupings are: Millennium

Assessment, IPBES. Classification systems: CICES, National Ecosystem
Services Classification System. For additional detail, see Finisdore, J.,
et al. (2020). The 18 benefits of using ecosystem services classification
systems. Ecosystem Services, 45, 101160. Available from: https://www.
sciencedirect.com/science/article/pii/S2212041620301029?casa_to
ken=XPfVCTyH4t4AAAAA:IL9cImZshq28sQ4rLmFE2bXT805-HDF-
EWY1w1rBxqhYF5ZfpUkcTa_bQQcTmVcRO53iBi4NFw
the year 2000 compared to 1700.60, 61 change) and biodiversity loss has been ranked
Reflecting this, the planetary boundary of as the second most impactful and third most
“biosphere integrity” is deemed to have been likely risk for the next decade.62, 63 Box 2
breached (meaning there is a high risk of contains an overview of the drivers of
deleterious or catastrophic environmental biodiversity loss.
Box 2: Business drivers of biodiversity loss

Aligned with the pressures on nature identified by the SBTN and the direct drivers identified by
IPBES, the main causes of biodiversity loss include, but are not limited to (Figure 3):
• Land-, freshwater- and sea-use change (areas) causes habitat and ecosystem loss,
degradation and fragmentation, and can lead to the extinction of species and the loss of
ecosystem functions and related ecosystem services. Land-use change is the leading
driver of terrestrial and freshwater biodiversity loss, with agricultural expansion being the
most widespread form of land-use change. The planetary boundary of land-system
change has been deemed to be crossed.64
• Resource exploitation refers to the exploitation of animals, plants and other organisms
(e.g. fish stocks), as well as natural resources such as timber, soil and water (mainly through
harvesting, logging, hunting and fishing). The rate of resources exploitation often exceeds
their capacity for regeneration with ecological consequences including extinction of
species, genetic drift (a change in the gene pool of a population) and habitat degradation.
Resource exploitation is the leading driver of marine biodiversity loss.
• Climate change and its related effects (e.g. changes in temperature, precipitation patterns,
and sea levels) has both direct and indirect effects on the distribution of species, their
physiology and behaviour and on modification of habitats. Climate change increasingly
exacerbates the impact of other drivers due to compounding effects.
• Pollution, including agricultural pollutants (e.g. fertilisers and pesticides), industrial
emissions and marine plastic pollution, cause environmental change, such as modifying
the physical and chemical state of soil, air and water, resulting in the degradation of
ecosystem quality and threats to plant and animal species. Light and noise pollution,
which can result from business operations, also impacts biodiversity through modifying
species behaviour and distribution.
• Invasive species, which may be introduced deliberately or accidentally by organisations,
pose a threat to ecosystems, habitats and native species, as well as human health and the
economy through their establishment and propagation.
Influencing Biodiversity impact drivers Changes to the

factors & trends state of nature
Ecosystem
Values & Behaviors Land/water/sea use change • Extent and condition
land
Resource Exploitation • Biotic integrity
Demographic & Sociocultural
Climate Change freshwater Species
Economic & Technological • Threat of extinction
Institutions & Governance Pollution • Biomass and abundance
ocean
Conflicts & Epidemics Invasive species & others Ecosystem services
• Provision of resources
• Cultural value
Figure 3. Drivers of biodiversity loss (see Box 2). Adapted from SBTN Initial Guidance and IPBES Global assessment report on biodiversity
and ecosystem services of the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services. Available from: https://
sciencebasedtargetsnetwork.org/wp-content/uploads/2020/09/SBTN-initial-guidance-for-business.pdf and https://ipbes.net/global-
assessment
(Box 2 continued)
Organisations contribute to these drivers through their direct operations as well as upstream and
downstream value chain activities, with impacts including (1) decline in ecosystem extent and
condition, (2) species extinction risk, (3) changes to ecological communities (e.g. loss of naturally
abundant species), (4) changes to biomass and species abundance and (5) deterioration of the
elements of nature for indigenous peoples and communities. Businesses can also positively
contribute to the mitigation of nature/biodiversity loss and degradation, and to the conservation
and restoration of natural ecosystems and biodiversity through sustainable business practices and
directing funds to/participating in nature-positive projects.
References:
• IPBES (2019). Global assessment report on biodiversity and ecosystem services of the Intergovernmental Science-Policy
Platform on Biodiversity and Ecosystem Services. Available from: https://ipbes.net/global-assessment
• Science-based targets for nature (2020). Initial Guidance for Business. Available from: https://sciencebasedtargetsnetwork.
org/wp-content/uploads/2020/09/SBTN-initial-guidance-for-business.pdf
• IUCN French Committee (2014). Corporate biodiversity reporting and indicators. Situation analysis and recommendations.
Paris, France. ONCFS, 2011. Les vertébrés terrestres introduits en outre-mer et leurs impacts: Guide illustré des principales
espèces envahissantes. Available from: https://www.iucn.org/content/corporate-biodiversity-reporting-and-indicators-
situation-analysis-recommendations
Loss of biodiversity creates significant risks Yet, businesses can play a pivotal role in
for the private sector (see Risks and mitigating biodiversity-related risks by directing
opportunities)65, 66 and businesses are actions through their operations and/or supply
increasingly experiencing significant financial chains and fostering improvement through their
impacts associated with those risks.67, 68 corporate biodiversity strategies and policies.
2. Business and biodiversity population size) can be used to signal changes in

interactions biodiversity. Impacts can be positive (a potential
gain in biodiversity, e.g. nature restoration or
2.1 Impact and dependencies regenerative aquaculture) or, far more commonly,
All businesses depend and impact on negative (a potential loss of biodiversity). Business
biodiversity.ix impacts on biodiversity occur through impact
drivers (see Box 2) and can be direct, occurring
Biodiversity dependencies are defined as an immediately as a result of direct actions such as
organisation’s reliance on or use of biodiversity, land clearing, or indirect, occurring as a
including biological resources (e.g. materials, consequence of another factor with an indirect
liquids, genetic resources) from species and causal link, such as GHG emissions contributing to
interactions with various ecosystem processes climate change or illegal logging occurring due to
and services (e.g. pollination, water filtration, the construction of a road in a forest. Impacts can
crop pest/disease control or water flow also accumulate due to the combined actions of
regulation). These dependencies are interlinked different actors (e.g. other organisations,
with biodiversity impacts resulting from both governments, local communities), as well as other
direct operations and value chain activities. background pressures and trends (cumulative
impacts). Biodiversity impacts can be caused by
Biodiversity impacts are defined as a change in both inputsx to and outputsxi from production.
the diversity of ecosystems and/or species that
may take place because of business activities. Biodiversity impacts are interconnected to
Changes to the state of ecosystems (e.g. extent dependencies due to feedback loops, e.g. an
and condition/integrity) and species (e.g. habitat, organisation’s operations may depend on a
ix Referred to within the context of ecosystems, species and the final x Commodities such as timber, palm oil, cattle products, soy, cocoa,
ecosystem services underpinned by biodiversity. coffee, rubber are among the major causes of the loss of natural
ecosystems like forests.
xi Polluting emissions (e.g. use of pesticides or fertilisers) and waste cause
degradation of natural ecosystems and consequently affect biodiversity.
particular species of fish (dependency), yet if the Additionally, organisations may have financial
organisation fishes at unsustainable fishing rates, implications linked to the transition to a
the population of the species may reduce biodiversity-positive economy including:
(biodiversity impact) causing loss of operational increased regulation regarding biodiversity
productivity and related income and/or increased protection and conservation (regulatory), shifts
costs. Business biodiversity dependencies and in market preferences (market), shifts in
impacts vary according to sector, value chain and stakeholders’ perceptions of an organisation’s
geographic location, for example, sectors that impact on biodiversity and natural ecosystems
rely heavily on natural resources, such as (reputational), and the impact of new
agriculture, forestry and fishing sectors will have technologies (technological). See Table 3 for
significant direct impacts whereas tertiary sectors examples of financial risks.
are more likely to have indirect interactions
through their supply chains.69 Biodiversity-related opportunities and related
financial benefits are often linked to, for example,
Both dependencies and impacts generate improved efficiency, development of new
economic costs and benefits for businesses products and services, access to new funding
and society, which consequently result in streams, operational cost-savings through
business risks and opportunities that can nature-based solutions and the engagement of
affect the present and/or future financial and collaboration with stakeholders.
position and financial performance of the
organisation (see Figure 4). Biodiversity-related risks and opportunities can
be caused by both (1) the organisation’s
specific business sector and activities,
Financial implications include clean-up and/or including the activities within the value chain
remediation costs, sanctions, development and/or (2) or by the geographic context70 in
of plans to mitigate or remediate negative which its activities are located, for example,
ecological impacts, loss of revenue resulting risks related to biodiversity/ecosystem
from reputational damage associated with poor mismanagement by other stakeholders,
biodiversity management, or agricultural supply including organisations, and to socio-economic
chain disruption due to declines in populations conditions in the areas of operations, such as
of species that the organisation depends on lack of biodiversity governance or political
(e.g. pollinators). instability. They are connected to other
changes to natural capital (sharing common
2.2 Risks and opportunities drivers) (see Key Characteristics). For example,
Organisations can experience different types of changes to biodiversity, such as changes in
biodiversity-related financial risks and species seasonal patterns, distribution and
opportunities, such as: physical (biological, abundance, and ecosystem distribution,
ecological, chemical etc.), reputational, policy and composition and function71 can be associated
legal (or regulatory), technological, and market.xii with the prolonged droughts, desertification,
coastal erosion, and sea level rise72 associated
Physical risks are linked to changes to with climate change.73 Additionally, biodiversity
biodiversity, ecosystems and its related plays a key role in the mitigation of and
functioning, including risks posed to businesses adaptation to climate change since it ensures
from biodiversity impacts. Physical risks the resilience of major carbon sinks such as
therefore encapsulate financial implications oceans and forests. Considering such
related to ecosystem and biodiversity loss and aggregated risks, including interlinkages
degradation, and the related consequences, between biodiversity and socio-economic risks,
such as reduction in soil fertility, reduction in is critical to drive business continuity and
pollination for crop production, reduced resilience to future scenarios.
availability of fish stocks, as well as the increased
likelihood and severity of extreme weather Risks and opportunities may be directly related
events e.g. due to erosion of coastal ecosystems to business operations or be indirectly
(see REQ-03 for additional details and examples generated through feedback cycles resulting
of types of biodiversity-related physical, from the costs/benefits experienced by
biological, chemical and other related risks). society.74, 75 Therefore, achieving a complete
xii These risk categories are aligned to the TCFD risk categories.
s
d arie
o un
B
Biophysical structure or process changes to

ry
eta
(e.g. saltmarsh habitat, net primary productivity)

Plan
Function
(e.g. slow passage of water or biomass)
External Factors
(e.g. natural disasters,
Final Ecosystem Service pollutants emitted by
(e.g. flood protection or provision of fish stocks) other stakeholders)
impacts
on nature
Dependencies Impacts
i n es s A c tiviti e s
Risks Opportunities
Physical • Acute
Risks* • Chronic
• Resource Efficiency
• Products / services
Transition
• Policy and Legal • Markets
Risks
• Technology • Resilience
Bus
• Market • Financial incentives

• Reputation • Reputation
Strategic Planning
Risk Management
Financial Impact
Cash Flow
Income Statement Balance Sheet
Statement
Revenues Assets and Liabilities
Expenditures Capital & Financing
Figure 4. Business impacts and dependencies on biodiversity and final ecosystem services are sources of risks and opportunities for the organisation’s
future financial position and financial performance (adapted from Recommendations of the TCFD and the Dasgupta review). *Physical risks (and
opportunities) within this document includes not only physical risks (and opportunities) but also biological, ecological, chemical and other risks and
opportunities (see REQ-03 for additional details and examples).
understanding of the short- and long-term 2. Time dimension: Biodiversity impacts and
financial risks and opportunities associated with drivers of loss resulting from business activities
biodiversity requires considering, not only how vary both within and across years (e.g.
nature may (positively or negatively) impact the seasonality of natural processes vs. seasonality of
organisation’s immediate financial performance agricultural processes, species migrations, etc.).
(“outside in”), but also current and future Future drivers and impacts can be hard to predict
significant impacts to society resulting from and can experience time-lags. For example, there
business activities (“inside out”).76, 77 may be a lag between the loss of biodiversity
For example, lowered availability of final resulting from business activities and the
ecosystem services resulting from business consequent loss of final ecosystem services.
activities (e.g. water usage, deforestation) Equally, management efforts may take time to
may have implications for local stakeholders achieve outcomes. It is therefore important to
(e.g. water/timber shortages), which may lead monitor changes in the state of biodiversity over
to business risks (e.g. reputational costs, loss time. Therefore, consideration is required when
of social licence to operate), and ultimately applying accounting timeframes to these
affect the organisation’s business model and biodiversity concepts, for example, when setting
ability to execute its strategy. targets, determining appropriate measurement
intervals for key performance indicators (KPIs)
and determining appropriate intervals for
3. Key Characteristics comparative analysis.
The interactions between biodiversity and 3. Multi-faceted qualities: Biodiversity has varied
business are characterised by key characteristics dimensions, geographical scales and impact
(Figure 5) that are important for organisations to groups which need to be considered. Varied
consider during the process of preparing dimensions include genetic diversity within
biodiversity-related disclosures. species, diversity between species and the
diversity of ecosystems. The Dasgupta Review
1. Spatial dimension: Biodiversity dependencies, distinguishes three features of diversity that are
impacts, risks and opportunities are location- significant: richness (the number of unique life
specific. The biodiversity-related geographic forms); the flatness of the distribution of life forms
context in a given location concerns not only the (evenness); and dissimilarities in the life forms
biodiversity status of the area, in terms of existing (heterogeneity).80 Geographical scales include
ecosystems and species, protected area status biodiversity within a site, between sites and
and biodiversity value, but also in terms of among sites in a landscape. Varied impact groups
(1) infrastructures; (2) social conditions, including include, but are not limited to, risk of species
community traditions and livelihoods; extinction, loss of ecological integrity, ecosystem
(3) economic conditions, such as nature-related loss and fragmentation, loss of genetic diversity,
productivity, employment, and income; changes in migration timing and routes, and
(4) governance and regulation; (5) geopolitical ecosystem degradation.
dimensions (e.g. in transboundary locations); and
(6) ongoing cooperation initiatives. For example, 4. Interconnectivity: Biodiversity loss is highly
the risks associated with overfishing in an area are interconnected with other natural capital
specific to the level of local employment and changes and socio-economic issues. Natural
income that is dependent on that ecosystem, as capital changes such as land degradation, water
well the community traditions, fishing degradation and climate change share common
infrastructure and techniques, regulations and drivers with biodiversity loss, including changes in
cooperation initiatives (e.g. among fishing land-use (e.g. deforestation and urbanisation),
companies) that are in place. freshwater-use and sea-use, resource
consumption and pollution. Biodiversity loss is
Areas impacted by business activities may be inherently connected to the climate change crisis,
large and extend beyond the immediate vicinity which is contributing to rapid, broad-scale
of activities due to, for example, ecological ecosystem system changes and exacerbating
linkages and migratory or wide-ranging species. drivers of biodiversity loss.81 However, biodiverse
Areas impacted also differ depending on the ecosystems can also contribute to being a
driver of biodiversity loss (e.g. GHG emissions potential solution to climate change (e.g.
have a global effect whilst exploitation of ecosystems provide climate adaptation services
organisms may be localised).78, 79 such as protection from storm damage).82
SPATIAL DIMENSION
location specificity, e.g. proximity to areas with high biodiversity value
TIME DIMENSION
impacts and dependencies vary with natural dynamics within and across years
MULTI-FACETED QUALITIES
varied dimensions, geographic scales and impact groups
INTERCONNECTIVITY
e.g. link with climate change, water and land degradation
ENGAGEMENT and COLLABORATION

e.g. value chain and stakeholders
METHODOLOGIES
need for different methods to cover multi-faceted qualities, methodological development
and data accessibility/accuracy
Figure 5. The biodiversity key characteristics to be considered when preparing information for the mainstream report
Biodiversity is also integral to other global issues management within value chains.86, 87, 88
such as societal well-being and economic welfare. This increases the importance of including
Consequently, both the Intergovernmental Panel the value chain in biodiversity assessments
on Climate Change (IPCC) and IPBES promote and strategies.89, 90
the need for holistic multi-outcome, multi-action
and multi-actor environmental solutions,83 Stakeholders may have specific dependencies
as opposed to solutions which maximise on biodiversity, including local and indigenous
the outcome for a single issue at the expense communities, local farmers/fishers, regulators,
of others. Developing effective and resilient financial institutions, and civil societies/experts.91
biodiversity strategies therefore requires As biodiversity is “shared” with local stakeholders
companies to consider many dynamic and in a given area, with actions of one party having
interconnecting systems.xiii impacts for other local parties, single actions at
the operational level (e.g. to increase biodiversity
The interconnected nature of biodiversity loss by restoring part of a wetland/forest or reduce
with other natural capital changes creates risks negative impacts by reducing polluting
around reporting accuracy and double counting. emissions) do not improve the status of
For example, depending on how benefits are biodiversity if others within the same
measured, management activities such as the geographical location are degrading the
purchase of carbon offsets to mitigate emissions ecosystems, and/or regulators are not
may also have collateral effects on biodiversity implementing biodiversity plans or regulating
through activities such as reforestation or land biodiversity impacts. Therefore, engagement with
restoration.84, 85 stakeholders, both at the operational and value
chain level (particularly in areas with high
5. Engagement and collaboration: Given the biodiversity value), and participation in
globalised nature of value chains, trade and collaborative actions is fundamental for effective
economic flows, biodiversity dependencies and biodiversity management.
impacts are often most significant outside the
organisation’s direct operations, resulting from 6. Methodologies: Due to the complexity of
upstream activities (e.g. land-use conversion for biodiversity impacts and dependencies,
agricultural commodities) or downstream multiple measurement techniques may be
activities (e.g. water pollution from use of personal required to fully capture the various possible
care and household goods, or management of changes. Whilst many biodiversity measurement
plastic waste from packaging). As a result, methodologies exist, some of which are widely
institutional investors are increasingly asking used (e.g. surface area metrics adjusted by
detailed questions about biodiversity ecosystem condition/integrity), this is a
xiii The IPCC and IPBES both support holistic, multi-outcome and multi-
action solutions, for example, balancing climate and nature solutions that
also consider spatial and social contexts.
developing and rapidly expanding area. guidance can be referred toxvi and work is
Approaches to measuring some areas may ongoing to create market harmonisation in this
currently not be fully developed or standardised, area, including through initiatives such as the
for example, assessing dependencies is currently Align project,95 Transparent project96 and TNFD.97
particularly challenging due to the indirect The monetary valuation of biodiversity and final
nature of benefits generated by biodiversity.xiv In ecosystem services may also be useful in this
addition, whilst many measurement regard, using monetary units as common units
methodologies exist, there is currently only one that can be compared/benchmarked (albeit,
accounting approach available.92 dependent on consistent valuation techniques
being applied, the same economic/monetary
Selecting methodologies and metrics requires conversion figures being used and recognising
consideration of data accessibility, availability, that the full value of biodiversity may be hidden
and accuracy. Traditional biodiversity metrics or missing as a result of valuation challenges,98
quantifying information, e.g. via ‘proxy see Box 7 for additional details on valuation).
approaches’ using databases or estimates from
models to assess the effect on biodiversity, can An additional element related to biodiversity
be helpful to calculate biodiversity impacts and measurement that needs to be considered is
performance based on drivers of biodiversity ecological equivalency (i.e. the notion of equity,
loss. However, they are not always fit for purpose like-for-like) which is integral to measuring
and may not be as accurate as direct impact, biodiversity footprint assessments,
measurement of the state of biodiversity at a biodiversity accounting, forming offsetting
business’s operating locations. Yet, access to strategies and biodiversity management
primary data may be constrained due to being activities. Due to variability in biogeography
costly and time consuming to collect. Accessing and types/intensities of activities, biodiversity
data within the value chain may also be patterns vary significantly between different
challenging due to the limited control of many species/ecosystems and locations. Therefore,
companies over their supply chains. aggregation (during the process of impact
assessments) should consist of the same types
The developing and complex nature of of ecosystems (e.g. boreal forests, mangroves)
biodiversity measurement and accounting or species (e.g. koala, cayote) as far as possible
creates challenges for benchmarking and and care should be taken to achieve ecological
comparing performance both within and across equivalency as far as possible for the purposes
organisations.xv, 93, 94 However, existing tools and of biodiversity offsetting.xvii, xviii
xiv Other examples include considering certain sector specificities, xvi For example, the Dasgupta review, BSI standard, WCMC ENCORE
assessing value-chain interactions, measuring impacts to genetic tool and the development of Science-Based Targets for Nature
resources, mapping marine biodiversity (and human impacts on it), xvii For further details on ecological equivalency, please refer to the
understanding positive impacts as well as negative and spatial mapping. Biological Diversity Protocol, the BBOP Guidance Notes to the Standard
xv The accounting framework provided by the Biological Diversity on Biodiversity Offsets, DEFRA Biodiversity metrics 3.0 – User Guide.
protocol aimed to overcome this by enabling benchmarking and xviii Biodiversity offsetting should follow mitigation hierarchy principles.
performance comparison. See: Endangered Wildlife Trust (2020). The See REQ-02 for further details on mitigation hierarchy.
Biological Diversity Protocol (BD Protocol). Available from: https://www.
nbbnbdp.org/uploads/1/3/1/4/131498886/biological_diversity_protocol__
bd_protocol_.pdf
Chapter 3
Application
guidance for
biodiversity-
related disclosures
This chapter represents the core element of the biodiversity, and the location-specificity
Biodiversity Application Guidance. Firstly, it sets and multifaceted qualities of biodiversity.
out reporting expectations and important Materiality assessments should:
considerations for organisations whilst selecting
1. Support the understanding of biodiversity-
and preparing biodiversity-related information
related risks and opportunities;
to be included in the mainstream report.
This includes the application of materiality 2. Support the effective selection and
to the aspects within the reporting requirements. prioritisation of biodiversity-related information;
Secondly, it provides a checklist and roadmap
3. Be scientifically robust;
for organisations to support the process
of integrating biodiversity-related information 4. Aim to keep biodiversity disclosures concise,
in mainstream reports. Thirdly, following CDSB connected and decision-useful; and
reporting requirements from one to six, it 5. Ensure that the results effectively support the
provides guidance, resources and examples of management of biodiversity-related financial
practices from mainstream reports. risks and opportunities that have implications
for the business (i.e. operations, value chain,
business model and financial results).
1. Reporting expectations and
important considerations When approaching the materiality assessment, an
organisation should focus on biodiversity-related
The following section illustrates the application information that can affect the business model and
of the first six reporting requirements of the execution of its strategy as a result of the risks and
CDSB Framework to biodiversity-related opportunities identified (considering different
disclosures. A number of clarifications on the categories of risks, see Table 3), as well as how the
reporting expectations and related outcomes, organisation’s business model and strategy may
and considerations regarding the guiding contribute to the risks and opportunities identified.
principles and remaining reporting requirements A prerequisite step is an assessment of the
of the CDSB Framework are provided below. organisation’s biodiversity dependencies and
impacts (see Assessing biodiversity dependencies
1.1 Applying materiality and impacts in REQ-02). This assessment allows for
Biodiversity information should be disclosed consequent exploration of biodiversity-related risks
when deemed material by the organisation (e.g. exposure or liability due to its negative impacts)
(see Principle 1 in the CDSB Framework and and opportunities (e.g. access to biodiversity-
Appendix 2 for additional details). This means related funds and loans resulting from potential
that, in practice, only the reporting practices contributions to local, national or international
within the Biodiversity Application Guidance biodiversity targets).
that relate to information deemed to be
material by the organisation should be The materiality assessment should focus on the
considered for inclusion in the mainstream areas that are most relevant to the organisation
report. When preparing such information, (e.g. to business continuity). For example, when
report preparers should consider also assessing ecosystems, an organisation should
(1) the organisation’s impacts on society and consider the loss of functionality to business
the environment that affect the company’s operations if an ecosystem were to become lost/
cash flow over the short-, medium- and long- degraded and/or its final ecosystem service
term (also referred to as circularity), and disrupted. When assessing species,
(2) the dynamic nature of materiality for the focus should be on species that (1) have
sustainability information, i.e. information that a the potential to disrupt business operations,
company assesses to be material can rapidly (2) are legally protected under laws and
change in response to drivers such as conventions (e.g. listed by the Convention on
stakeholder pressure, consumer and investor International Trade in Endangered Species of Wild
expectations, regulation, evolution of science Fauna and Flora) therefore being potential
and understanding (see Appendix 2 for sources of fines, and (3) play a significant cultural
additional details).99 or economic role for stakeholders and can cause
reputational risks (e.g. hunting, harvesting,
Assessing the materiality of biodiversity to a pollinating services, educational and recreational
specific organisation can be difficult due to the services). Considering societal value can shed light
complex links between business and on risks linked to potential greater regulation,
pressure from financial institutions and consumers The organisation should:

that may be caused by growing concern over
biodiversity loss from society. • Disclose business-specific biodiversity-related
information, avoiding generic considerations
Tools aimed at supporting biodiversity-related and boilerplates;
materiality assessment are emerging,xix however
many are currently restricted to understanding • Emphasise and report details on priority species,
final ecosystem services or specific species or ecosystems, geographical areas and products/
habitats and do not represent the variety of species services (see REQ-02). The disclosure should
and ecosystems, and genetic diversity. Additionally, explain how an organisation is prioritising
materiality assessments of biodiversity require biodiversity-related risks and opportunities
knowledge of the biodiversity-related geographic regarding such priority elements. Detailing what
context (from ecosystems to species). To that end, it is doing differently to tackle priority
(1) public and/or private databases on, for example, geographic areas compared to other areas can
species occurrence or ecosystem integrity, can be a be particularly useful. This can represent
useful and cost-effective solution, and (2) decision-useful information for report users,
biodiversity experts and ecologists can support the showing that an organisation has:xx
process (e.g. if such databases are not available,
outdated and/or incomplete). • Understood the geographic-specificity of
biodiversity-related risks and opportunities; and
Details on the approach applied in determining
biodiversity materiality and in the selection of the • Screened and assessed the biodiversity-
biodiversity-related information included in the related status and risks of relevant species,
mainstream report represent useful information ecosystems and areas where its operations
for investors, as well as an explanation of the and value chain are located, and classified
reasons why specific biodiversity-related them according to different levels of risks
elements have been deemed material or and opportunities for the business (see
immaterial (see Figure 6). This information is an Tools for assessing biodiversity-related
important input to an investor’s decision-making status and risks under REQ-03 for support).
process because it demonstrates the level of
management understanding of the relevance of The geographic detail of such disclosures should
biodiversity to the business and helps to identify be set according to the materiality assessment
when biodiversity-related risks and opportunities of the organisation and can cover either regions,
are significant to the organisation’s business country, or specific sites (e.g. site-specific details
model and financial performance. This is crucial can be disclosed for big mining sites that are
for biodiversity, since it is an emerging area in the significant for the overall organisation, for
reporting space and it is often poorly explored instance due to productivity or reputation);
and understood, and therefore undervalued by
organisations.100 Additionally, REQ-11 of the CDSB • Contextualise information by clarifying the
Framework encourages companies to include a connections to other environmental matters
statement of conformance, setting out the extent disclosed, such as climate change, water or
that the principles and reporting requirements of land-use; and
the CDSB Framework have been applied. In
doing so, companies are expected to state the • Clearly describe the assessment methods used
outcome of applying the relevance and (e.g. for risk assessment, for biodiversity
materiality principle. dependency and impacts measurement), as well
as assumptions and reasons for inclusion in the
1.2 Providing contextualised and mainstream report. Additionally, since several
business-specific biodiversity-related biodiversity-related terms are not uniquely
information and clarifying methods defined and evolve over time, it is good practice
Disclosures should provide the reader with to provide definitions of the biodiversity-related
succinct and concise contextual information terms used in the mainstream report and
specific to the reporting organisation. reference to external sources.
xix For example, the Technical Annexes of the SBTN Initial Guidance xx Aligned with: UNEP-WCMC, Conservational International and Fauna & Flora
(available at: https://sciencebasedtargetsnetwork.org/resources/) provide International (2020). Biodiversity Indicators for Site- based Impacts. Cambridge,
guiding questions for the materiality assessment considering sector, UK. Available from: https://www.unep-wcmc.org/system/comfy/cms/files/
value chain and company’s specificities and the SBTN’s sector-specific files/000/001/902/original/202102_Biodiversity_Indicators_Report_06.pdf
materiality tool and guidance will be publicly available by March 2022.
1.3 Disclosing information where significant risks or opportunities relate to

in a changing landscape suppliers and outsourced activities within the
Due to the fast-moving and developing nature wider value chain. Since biodiversity-related
of biodiversity assessment and disclosure, dependencies and impacts can extend well
organisations may have uncertainty in the beyond the immediate vicinity of an operation or
identification of significant risks and opportunities supplier site (e.g. due to wildlife migration or other
(e.g. due to lacking an adequate methodology landscape level factors), an organisation may
to measure an impact or dependency). benefit from adopting a value chain approachxxii
Such uncertainties should not prevent an and considering wider spatial boundaries.
organisation from disclosing. Where this is the
case, within its mainstream report, the Organisations should explain the (biodiversity-
organisation shall disclose the limitations in the related) value chain and spatial boundaries
assessment and state how they are planning to considered, outlining any limitations where
resolve this for future periods (e.g. working to applicable, for example, which parts of the
determine the most appropriate measurement value chain are considered (contractual
technique/or proxy). This builds upon Principle 1.4 arrangements, such as leased assets,
of the CDSB Framework. outsourcing operations and franchises can be
included)xxiii and related areas of risk (e.g.
Some companies have already integrated watershed, landscape, buffer zone).
biodiversity in their business strategy whilst
others have yet to adopt substantive measures REQ-09 suggests that the material
and are only in the preliminary stages of biodiversity-related information included in the
undertaking their journey towards biodiversity mainstream report should follow the reporting
stewardship. Where organisations are still in the period used in the rest of the report (i.e. at least
process of understanding or forming elements annually). Aligning the reporting period of the
that should be disclosed upon (e.g. establishing biodiversity-related information included in the
biodiversity policies, targets and management mainstream report better ensures that it can be
responses, or in the process of analysing impacts connected with other disclosures, such as
and dependencies and preparing a response), this financial performance and other environmental
should be highlighted in the mainstream report. data, and so enhances comparability, as
The description should include a summary of advocated by Principles 3 and 4, respectively.
actions that are being taken to allow full Despite the focus on financial year, the
disclosure for future years, including timelines. mainstream report considers past and forward-
Reporting on the governance (REQ-01) and risk looking information, e.g. in the presentation of
management (REQ-03) of biodiversity-related performance and target monitoringxxiv (REQ-
issues can be a useful basis for organisations in 05 and REQ-02), risks and opportunities
the process of understanding and forming assessment (REQ-03) and outlook (REQ-06).
elements, as the TCFD similarly suggests for As detailed in the different requirements in the
climate-related issues. Biodiversity Application Guidance, identifying
biodiversity-related temporal boundaries
1.4 Reporting boundaries and period consists of determining appropriate timeframes
REQ-07 of the CDSB Framework states that the for the assessment of dependencies and
material biodiversity-related information disclosed impacts and for the preparation of future
should be prepared according to the reporting outlook and related analyses (e.g. scenario
boundaries used for the rest of the mainstream analysis), and this selection will influence the
report.xxi It may be, however, that biodiversity- extent to which future financial implications
related information that falls outside these need to be included (e.g. decommissioning
reporting boundaries will be appropriate for costs). The selection of timeframes depends on
inclusion in the mainstream report, such as both the goals and targets of the organisation
xxi For additional information see CDSB (2014). Proposals for boundary xxii Referring to the SBTN’s value chain ‘spheres of influence’ may be
setting in mainstream reports. Available from: https://www.cdsb.net/sites/ helpful during the adoption of a value chain approach.
cdsbnet/files/proposals_for_mainstream_report_boundary_setting.pdf xxiii See The Biological Diversity Protocol for details on boundaries setting
(sections 2.1 and 2.2, pgs. 17-22) and on contractual arrangements (pg. 21)
xxiv In the Initial Guidance for Business, the SBTN suggests that target
progress should be monitored regularly, with the frequency appropriate
for each target determined in part by the indicator. For instance, quarterly
may be appropriate for some (e.g. water use or pollution discharge), annual
for others (e.g. ecosystem intactness), and every 3-5 years for others (e.g.
species abundance).
as well as on the assessment of impacts or should be formulated and positioned in a way to

dependencies (see REQ-02 and REQ-04). allow investors to see and understand the
linkages. In developing their mainstream
1.5 Using existing disclosures and resources, reporting practices, companies should try and
and ensuring connectivity ensure that the language and labelling used best
The CDSB Framework and its reporting allows for clear understanding of these
requirements intend to align with and interconnections and avoids unnecessary
complement existing mainstream financial duplication or confusion of information.
disclosures. Therefore, organisations may
already have the information to satisfy certain
aspects of the CDSB reporting requirements 2. Roadmap and checklist for
and the suggestions of the Biodiversity biodiversity-related disclosures
Application Guidance. For example, companies
may already be disclosing biodiversity-related The reporting outcomes depend not only on
information that would be appropriate and the materiality assessment but also on the level
material for mainstream disclosure through of maturity of integration of biodiversity in the
different reporting channels, such as business strategy, policy, and management of
sustainability reports, CDP submissions and the reporting organisation and of biodiversity-
index, investor questionnaires, or natural capital related disclosures. Providing a clear roadmap
balance sheets or income statementsxxv detailing actionable steps with measurable
(see Appendix 3). Repurposing these existing targets would be particularly valuable to report
disclosures to meet the specific requirements users. Figure 6 illustrates a potential approach
of the mainstream report could benefit and to biodiversity-related financial disclosures
streamline reporting practices. A useful according to the maturity of such disclosures.
resource to understand the interoperability of Additional support can be provided by the
existing frameworks and standards is the paper Biodiversity Guidance Navigation Tool102
Reporting on enterprise value101 which also by the Capitals Coalition, which supports the
provides a practical example of sustainability- understanding and assessment of biodiversity,
related financial disclosure through a prototype and its inclusion into the organisation’s
focused on climate. Similarly, report preparers management through interactive steps, that
may be able to apply the financial accounting adapt to the maturity of the specific
standards used for mainstream reporting to organisation. The tool also suggests
report on certain aspects of biodiversity-related biodiversity-specific tools and resources.
financial information.xxvi
Combining the roadmap with the checklist
Finally, Principle 3 of the CDSB Framework provided below can support the preparation of
emphasises the importance of ensuring effective disclosures, which need concrete
environmental disclosures, including biodiversity assessment, governance and internal
disclosures, are connected with other mainstream communication, co-ordination and cooperation
disclosures where the information is material. The among different business departments.
principle informs report preparers that disclosures
xxv E.g. referring to British Standard Institute (2021). BS 8632:2021

Natural Capital Accounting for Organisations.
xxvi Useful resources include the CDSB’s Uncharted waters, which
explores financial accounting standards that could aid companies in
responding to various aspects of the TCFD recommendations. IASB
(IFRS® Standards and climate-related disclosures) and the IFRS Foundation
(Effects of climate-related matters on financial statements) have both
published papers that discuss how the IFRS Standards address issues that
relate to climate-change risks and other emerging risks. Similarly, FASB
has also produced an educational paper (Intersection of Environmental,
Social and Governance Matters with Financial Accounting Standards)
that explains when applying financial accounting standards, organisations
may consider the effects of certain material Environmental, Social and
corporate Governance (ESG) matters (including “ecological impacts, such
as pollution, deforestation, and loss of biodiversity”) that have a material
direct or indirect effect on the financial statements and notes. Building on
the IASB and IFRS Foundation papers, CDSB has also developed guidance
(Accounting for Climate) to support preparers on how to integrate
climate-related matters into financial reporting and could also be applied to
biodiversity-related matters, where such matters are considered material.
Through- NO Is your organisation measuring, YES

out the addressing and reporting on
biodiversity-related impacts
process and dependencies?
• Inform and
Materiality* assessment preparation Gather the data
receive sign-
and determine
off from the 1. Identify and assess biodiversity dependencies and impacts across business materiality*
Board and activities, the value chain, and their respective locations (REQ-02, 04).
Management
(REQ-01) 2. Assess links with overall business, including management, strategy and processes
(e.g. risks assessment, value creation opportunities, monitoring systems) (REQ-02).
• Adopt a lo-
cation-specific 3. Assess biodiversity-related current and future risks and opportunities and their
approach and business implications over time (REQ-03, 06).
engage with 4. Consider (REQ-03, Table 3):
stakeholders. • different categories of risks and opportunities;
• Adopt a • risks from operations, value chain & geographical context.
value-chain
approach,
considering
direct op- Is biodiversity material*?
erations, and
upstream and
downstream NO
activities YES
Explain why Explain which elements are/are not material, and why this is the case
Given the
dynamic
nature of
materiality, 5. Prioritise areas of strategic relevance, including identifying priority species,
materiality ecosystems, geographic areas and products/services (REQ-02). Use Table 6
assessment (Appendix 3) in
should be 6. Assess company’s biodiversity-related capacity (expertise, stakeholder engagement the Biodiversity
repeated capacity, monitoring systems) (REQ-01, REQ-03) Guidance to map
regularly your data to CDSB
7. Detail resource needs and allocation (financial and personnel) (REQ-01).
Requirements
8. Define biodiversity policies, goals, contextual targets and metrics that address the
main risks and opportunities and contribute to business goals (REQ-02).
9. Determine management responses using the mitigation hierarchy (REQ-02)
*Information 10. Monitor performance over time (REQ-04, 05) and consider likely future effects of
is material if it biodiversity risks and opportunities (REQ-06)
impacts on the
organisation’s
financial
condition and
operational Follow the CDSB Framework, Biodiversity Application Guidance and the Checklist for biodiversity-
results, and related financial disclosures to prepare the mainstream report and then check if it:
its ability to Explains the rationale behind biodiversity-related information
execute its Provides business-specific information and links with business strategy
strategy – Ensures the connectivity of information throughout the report
CDSB Provides a clear roadmap with actionable steps and measurable goals
Framework Explains how external stakeholders have been engaged and how a value-chain approach has been adopted
NO Are there YES

disclosure gaps?
Check other CDSB requirements and Define clear steps to address the gaps
principles (REQ-07 to REQ-12, e.g. and to enhance disclosure including
conformance, assurance) measurable objectives and timeline
Figure 6. Roadmap to effective biodiversity-related financial disclosures. This flowchart illustrates a hypothetical roadmap for biodiversity-related financial disclosures.
The path depends on the organisation-specific maturity in and type of conducted biodiversity reporting (i.e. Global Reporting Initiative (GRI), CDP Questionnaire) and there
can be additional intermediate paths besides the two shown in the figure. Materiality assessment can occur at different stages throughout the process (this figure is indicative).
The Biodiversity Application Guidance provides additional support (e.g. suggestions and resources) for each step and references to the specific sections of the Guidance
are included in the flow chart.
The below checklist (referenced in Figure 6) the information is material for the organisation.
summarises the suggestions on how to include Companies that are still in the early stages of
material biodiversity-related information in their biodiversity reporting could take a
mainstream reports following the CDSB phased approach, reporting on elements that
requirements. The elements of the checklist are they have information for currently and setting
not to be addressed as mandatory out a plan to address additional elements in
requirements, but as desired disclosures that future periods (in line with Disclosing
should be included in the mainstream report if information in a changing landscape).
Quantify biodiversity-related risks and opportunities in the

REQ-01 Governance
context of the organisation’s business model and strategy,
Does the disclosure: using relevant financial and non-financial metrics and the
quantification of dependencies where relevant?
Identify the person(s) or committee responsible
for biodiversity-related policies, strategy and information? Describe the systems and processes used for assessing,
identifying, and monitoring biodiversity-related risks and
Explain how biodiversity-related policies, strategy
opportunities, including whether they are integrated with
and management responses are delegated to
existing risk management systems and processes and are
management?
stakeholder inclusive?
Explain whether there are specific roles or mechanisms in
place in priority geographical areas and for priority
products/services to tackle compliance with the REQ-04 Sources of environmental impact
biodiversity-related regulatory landscape, implementation
Does the disclosure:
of biodiversity management responses and engagement
with stakeholders? Provide a selection of relevant biodiversity impact
indicators and metrics, considering sources of significant
Describe any systems for accountability and incentivisation
biodiversity impacts, changes to the state of biodiversity
of biodiversity management?
and valuation of impacts?
Explain whether the governance mechanisms for
Provide relevant baselines/reference states for metrics,
biodiversity-related policies, strategies and disclosure
and both absolute and normalised metrics where possible?
differ from other significant concerns and, if so, why?
Provide explanations and contextualisation of the metrics
including the methodologies used, levels of uncertainty,
REQ-02 Management’s environmental and appropriate narrative to assist understanding of
policies, strategy and targets results?
Does the disclosure: Categorise and disaggregate metrics where possible to
support understanding and comparability?
Provide context by explaining the biodiversity-related
dependencies and impacts of the organisation with
additional consideration of links to natural capital?
REQ-05 Performance and comparative analysis
Summarise the biodiversity policies and strategies,
including definitions and how they support or link to the
organisation’s risks and opportunities and overall strategy? Provide appropriate historical data to the results reported
from REQ-04 for significant biodiversity-related impacts
When applicable, explain whether and how biodiversity
to allow for useful comparison, including details on priority
strategies, policies, and management are established
geographical areas and priority products/services?
through stakeholder engagement and connect with
relevant external societal agreements, policies and targets? Contextualise performance with baselines/reference
states, targets and other criteria used to assess progress?
Set out targets (which, where possible, should be
contextual, science-based and time bound), timelines, and Explain the major trends with reference to drivers
indicators for delivery of biodiversity policy and strategy of change under and/or outside the control of the
with methods and baselines, including progress towards organisation?
targets?
Detail the resourcing of the delivery and management of REQ-06 Outlook
biodiversity policies and strategies?
Explain the likely effect of future biodiversity-related
REQ-03 Risks and opportunities impacts, risks and opportunities, as well as of biodiversity
Does the disclosure: strategy on organisation performance and resilience,
taking account of regulatory and market trends and
Identify significant biodiversity-related risks and
environmental changes?
opportunities (including those arising from the loss of
related final ecosystem services) by adopting a value-chain Identify and explain the time horizons used for reporting
approach and considering different types of risk? on corporate outlook?
Explain the implications of significant biodiversity-related Explain any techniques, such as scenario analysis, used to
risks and opportunities on business, value chain and inform the outlook including the methods, scenarios and
products/services, specifying the geographical locations assumptions used, and any shortcomings and
and time horizons in which they will materialise? uncertainties?
3. Biodiversity for major strategic decisions. For instance, what

Application guidance processes would allow or require governance
bodies to decide to allocate capital, change
strategic direction or transform the business
REQ-01 model in response to identified biodiversity-
Governance related risks and opportunities? If no board-level
oversight of biodiversity-related issues is in
Disclosures shall describe the governance of place, the organisation should explain why and if
environmental policies, strategy and information there are plans to change this in the future.
In setting out the governance and management

Disclosure checklist
arrangements for biodiversity-related policies,
Does the disclosure: strategies, and goals, companies should ideally
Identify the person(s) or committee summarise the rationale for such arrangements.
responsible for biodiversity-related policies, For example, at board-level, what qualifications,
strategy and information? skills, or experience makes the person or
members of a committee best suited to
Explain how biodiversity-related policies, overseeing the organisation’s biodiversity-
strategy and management responses are related strategy? Some boards and
delegated to management? management teams will draw on external
Explain whether there are specific roles or expert advice on general or specific
mechanisms in place in priority geographical biodiversity-related issues for capacity building
areas and for priority products/services to and steering. For example, capacity building
tackle compliance with the biodiversity- sessions could be especially appropriate for
related regulatory landscape, implementation companies approaching the assessment of
of biodiversity management responses and biodiversity-related risks and opportunities or
engagement with stakeholders? using scenario analysis to drive strategy
development. Offering details of such external,
Describe any systems for accountability and expert advice in the mainstream report
incentivisation of biodiversity management? demonstrates proactive and responsive
Explain whether the governance oversight of biodiversity, and improves the
mechanisms for biodiversity-related policies, reliability of disclosure.
strategies and disclosure differ from other
significant concerns and, if so, why? If in place, the organisation may describe the
responsibilities of specific roles, capacity
building sessions, and stakeholder engagement
1. Governance arrangements and rationale activities, especially in priority geographical
Governance disclosures should demonstrate areas to address the high level of geographic
transparency and accountability for the specificity associated with biodiversity-related
organisation’s oversight of biodiversity-related dependencies and impacts and in relation to
matters. It is essential that the responsibility for priority products/services.
the disclosure of biodiversity-related information
is identified, whether it is at board-level or 2. Information flows and oversight
delegated to specific committees, etc. Effective reporting on governance will
articulate the connections, information flows
The most innovative, far-reaching, and and oversight mechanisms that exist between
successful biodiversity strategies and the board, management, and biodiversity-
management plans will often require the related issues. For example, report users may
leadership or integral support of the highest wish to know by what means and how often
governing bodies of an organisation. the appropriate board members are informed
Illustrating, whether diagrammatically or by management on biodiversity-related
through clear narrative, where responsibility lies performance, targets, progress, or relevant
at board-level and who is driving forward such changes to the external environment and
strategies at the management level is essential through the supply chain, but also details on
to evidence clear accountability and provide the nature and reliability of the control system
transparency. It assists report users in used to prepare biodiversity-related information
understanding the decision-making processes to be disclosed.
Additionally, information on how and how often decisions/capital allocations (e.g. acquisitions,
the employees (and contractors) with direct divestiture, major capital expenditures,
responsibility for biodiversity topics (e.g. annual budgets)?
employees responsible for emissions and
effluents treatment plants or land management) • Do biodiversity information systems exist, and
are consulted about the biodiversity strategy and if so, which are the organisational and value
management of the organisation would provide chain boundaries covered by biodiversity-
further helpful context on information flows. related information systems?
To demonstrate that appropriate organisational 3. Stakeholder engagement and cooperation

and information systems are in place to oversee As impacts and dependencies related to
biodiversity-related risks and opportunities, biodiversity are likely to be found outside the
reporting on the governance of significant direct operations and may result in unintended
biodiversity-related issues could answer the social consequences on local communities, the
following questions: relationship between an organisation, the actors
within its value chain and other stakeholders
• Which corporate governance codes determine plays a key role in managing and mitigating
or influence the way in which the organisation biodiversity-related issues. A concise description
is governed? of existing governance mechanisms illustrating
how the organisation selects, engages, and
• How often does the whole board discuss collaborates with stakeholders in addressing
the biodiversity strategy, consider related biodiversity-related issues constitutes useful
developments, and assess related implications information to investors. An organisation can
for the business (e.g. business plans and describe, for example:
strategy, corporate responsibility strategy,
biodiversity action plans (BAPs), risk • Collaboration with biodiversity organisations
management policies, innovation/research or experts to understand emerging trends
and development (R&D) priorities, and and good conservation practices, including
performance objectives)? site-level examples to demonstrate how
stakeholder concerns about potential impacts
• How often is performance and progress in are addressed by the organisation;
priority geographical areas and for priority
products/services communicated to • Engagement with local communities,
management and/or the person/committee consideration of their perspective of the
responsible for biodiversity? organisation’s biodiversity conservation
planning and related activitiesxxvii and
• How are biodiversity considerations collaboration, e.g. with smallholder farmers,
incorporated into governance and business to support the implementation of agricultural
processes for the lifecycle of products, projects practices that do not harm natural ecosystems
and activities (e.g. environmental management and related biodiversity;
systems or health, safety and environment
management systems)? • Involvement in multi-stakeholder initiatives
or partnerships aimed at improving the
• Where appropriate, are there means for understanding of biodiversity and ecosystems,
responsive strategic interventions or systems and/or at addressing impacts to biodiversity; and
in place to ensure resilience (e.g. prevention or
mitigation of incidents, such as polluting spills)? • Partnerships with third parties to protect or
restore habitat areas distinct from where the
• Who ensures compliance with biodiversity- organisation has overseen and implemented
related regulatory environment? restoration or protection measures.
• How are biodiversity-related risks and Among stakeholders, engagement and

opportunities considered in major strategic collaboration with actors of the value chain
xxvii E.g. the Free prior and Informed Consent (FPIC) is a specific right
pertaining to indigenous peoples, recognised in the United Nations Declaration
on the Rights of Indigenous Peoples (UNDRIP), that allows them to give or
withhold consent to a project that may affect them or their territories.
is particularly important. Neglecting the value around the importance of it to business, this
chain may fail to identify and therefore manage specificity is important. When significant,
major biodiversity risks or opportunities103 companies should therefore explicitly
while also leading to a misinterpretation summarise their biodiversity-related
of the company’s actual biodiversity exposure governance as discussed in previous
or contribution to society (e.g. biodiversity paragraphs but more importantly, explain
regulations and safeguards can affect the value how it is integrated into a more connected
chain and may result in rising costs or decreasing environmental strategy, as well as in the wider
sales, even if the organisation itself is not directly business strategy.
subject to such regulations; or impacts on the
agricultural production of raw materials caused Useful Resources105
by losses of pollination services due to declining
bee populations104). 1. Step 02 of the Natural Capital Protocol
and related Biodiversity Guidance includes
Relevant information on the governance of the suggestions on methods, resources, and
value chain includes a description of existing factors to consider when mapping the
traceability system(s) to track and monitor the organisation’s stakeholders.
origin of raw materials/inputs to operations and 2. The International Petroleum Industry
level of such systems (e.g. only direct suppliers Environmental Conservation Association
or beyond), and of collaboration with suppliers (IPIECA) Sustainability reporting guidance for
to support and improve their capacity to the oil and gas industry provides both generic
comply with biodiversity-related requirements suggestions on how to map
from the reporting organisation and to manage and prioritise stakeholders, and biodiversity-
and mitigate biodiversity risks. If not in place, it specific key points to consider in the
would be useful to provide an explanation of organisation’s reporting (e.g. how are the
why this is the case and if there are plans to stakeholders’ perspectives and concerns
develop these in the future. considered in biodiversity conservation
planning and activities; including reference
4. Incentivisation to any multi-stakeholder initiatives or
Incentivising appropriate members of the board partnerships the organisation joined to
and management for meeting and fulfilling promote improved understanding of
significant biodiversity-related goals and targets biodiversity and ecosystems, or to address
is a means of fostering ownership of potential impacts to biodiversity).
performance and reporting on such
arrangements in the mainstream report 3. Some of the GRI standards provide generic
communicates that commitment. Equally suggestions on how to assess impacts on,
important is the reporting of the metrics or engage with and disclose on stakeholders. In
criteria used in incentive schemes. They should particular, GRI 308: Supplier Environmental
speak to the organisation’s most pertinent Assessment 2016 supports organisations in
biodiversity-related risks, opportunities, and the assessment of environmental impacts in
strategy. Providing ongoing disclosure around their supply chain, in understanding how to
biodiversity-related performance and progress manage these impacts, and the preparation
towards long-term biodiversity targets tied to of related disclosures. GRI 413: Local
remuneration is useful. Communities 2016, instead, provides support
in preparing disclosures that detail the
5. Specificity of biodiversity governance impacts an organisation may have on local
Organisations’ biodiversity efforts sometimes communities, and how they manage these
form part of broader, cross-cutting impacts.
environmental strategies with governance and
oversight organised around these broader,
interconnected environmental ambitions (e.g.
climate, land or forest policies). However,
different investors can focus their attention on
different environmental issues when assessing
companies and reading reports. With
biodiversity escalating up the global agenda
and understanding continuing to develop
Examples
1. Kering Universal Registration Document 2. Ørsted Sustainability Report 2020 clearly
2020 identifies the committee responsible for reports that the heads of its four Offshore
addressing biodiversity-related risks and market regions are responsible for the
opportunities, i.e. the Board Sustainability implementation of the Group’s policy on
Committee; the CEO, the Group Managing biodiversity, and are supported by
Director, and the Lead Independent environmental specialists to do so (pg. 37).
Directorate members of the committee (pg.
3. Danone Universal Registration Document
135). Kering also discloses biodiversity-related
2020 describes the board’s role in monitoring
incentives; the amount of performance shares
investments in projects that have a positive
awarded to executive corporate officers is
environmental impact, including in relation to
linked to the achievement of biodiversity-
biodiversity (pg. 224).
related targets (pg. 285).
REQ-02 1. Providing the context for biodiversity

policy, strategy, and targets
Management’s environmental
policies, strategy and targets The report user should be able to understand
how biodiversity and ecosystems, which
Disclosures shall report management’s underpin and support the organisation’s ability
environmental policies, strategy and targets, to succeed, are reflected in its ambitions in
including the indicators, plans and timelines meeting business goals.
used to assess performance
1.1 Assessing biodiversity dependencies
Disclosure checklist and impacts
A prerequisite step to reporting consists of
Does the disclosure: assessing a) dependencies of the business on
Provide context by explaining the biodiversity and b) impacts the organisation
biodiversity-related dependencies and has on biodiversity (REQ-04). There are
impacts of the organisation with additional interconnections between dependencies
consideration of links to natural capital? and impacts, and for that reason they cannot
be treated in isolation, and this requirement
Summarise the biodiversity policies and (REQ-02) therefore tackles both. Such a holistic
strategies, including definitions and how assessment, that considers both dependencies
they support or link to the organisation’s and impacts, should consider ecosystems,
risks and opportunities and overall strategy? species and final ecosystem services within
When applicable, explain whether and how the organisational and value chain boundaries
biodiversity strategies, policies, and set (see Reporting boundary and period).
management are established through The identified dependencies and impacts
stakeholder engagement and connect with should be considered in the assessment of risks
relevant external societal agreements, and opportunities (REQ-03), as well as the
policies and targets? materiality assessment.
Set out targets (which, where possible, When conducting such assessment,
should be contextual, science-based and organisations may start by identifying
time bound), timelines, and indicators for biodiversity dependencies and impacts
delivery of biodiversity policy and strategy accompanied by details on their locations.xxviii
with methods and baselines, including
progress towards targets?
Detail the resourcing of the delivery
and management of biodiversity policies xxviii For example, see Step 1 (Biodiversity risk screening) in UNEP-WCMC,
and strategies? Conservational International and Fauna & Flora International (2020).
Biodiversity Indicators for Site- based Impacts. Cambridge, UK. Available from:
https://www.unep-wcmc.org/system/comfy/cms/files/files/000/001/902/
original/202102_Biodiversity_Indicators_Report_06.pdf
Secondly, measures and quantitative Frameworks and tools can assist with this
assessments come into place: quantitative process. For example, the Natural Capital
information is added to the qualitative list Protocol (and associated Biodiversity
(i.e. inventory)xxix and metrics are calculated. Guidance)106 provides flexible measurement and
Approaches such as the pathway approach valuation guidance and the Biological Diversity
(outlined in the Natural Capital Protocol) and the Protocol107 provides a standardised accounting
Driver-Pressure-State-Impact-Response (DPSIR) framework for consolidated impact disclosure.
framework can be used to guide this process See Useful Resources for other resources and
(see Box 3), from the measurement of drivers of tools such as ENCORE,108 a web-based tool that
impacts and dependencies to valuation. supports the exploration of dependencies on
Completing a biodiversity footprint assessment nature of the economic system and of the risks
can also be useful during this step (see Box 4). for businesses caused by environmental change.
Box 3: Assessment approaches

The impact pathway approach assesses how, as a result of a specific business activity, an impact
driver results in changes to biodiversity (or natural capital) and how these changes impact
different stakeholders (see Figure 7). A dependency pathway is similar and shows how a particular
business activity depends upon specific features of biodiversity (or natural capital) and identifies
how changes in biodiversity affect business costs and/or benefits.
Example 1
Business activities at an agri-food The land development leads to The reduction or loss of pollination
company lead to land conversion to the reduction or loss of pollinators (final ecosystem services) disrupts the
create a new agricultural area due to loss of supporting habitat productivity of pollinator-dependent
(impact driver) (change in the state crops like almonds and the related
of biodiversity) organisation’s financial performance
(impact on business)
Example 2
Business activities discharge polluting Aquatic ecosystems are Reduction of water purification
water emissions (impact driver) degraded and related biodiversity and availability of clean water (final
is impacted, e.g. due to toxic ecosystem services) affects affects
substances, reduction of oxygen financial performance of (downstream)
levels (change in the state organisations requiring clean water as
of biodiversity) input into business operations (impact
on business)
Figure 7. Impact pathway approach (based on Biodiversity Guidance of the Natural Capital Protocol)
Figure 7 illustrates how a business activity can be a biodiversity impact driver (either through
an input, such as material used, or a non-product output, such as air or water pollution).
This generates changes in biodiversity, which in turn can affect the organisation or society. 109, 110
Dependencies are often integrated into the impact pathway due to their interconnections with
impacts (e.g. feedback loops between impacts on habitats and loss of pollinators, see Figure 7).
xxix See Biological Diversity Protocol for further details. Endangered

Wildlife Trust (2020). The Biological Diversity Protocol. Available from:
https://www.nbbnbdp.org/uploads/1/3/1/4/131498886/biological_diversity_
protocol__bd_protocol_.pdf
Box 3 (continued)
Once the list of impacts and dependencies has been determined, the Biodiversity Guidance to
accompany the Natural Capital Protocol outlines three steps for using the pathway approach to
measure and value impacts and dependencies:
(1) Measure impact drivers and dependencies;
(2) Measure changes in the state of biodiversity; and
(3) Value biodiversity impacts and dependencies.
A similar, and harmonised, approach is the Driver-Pressure-State-Impact-Response framework111, 112
which assumes a chain of causal links, with economic/social drivers exerting pressure on the
environment, consequently causing changes in the state of the environment. These changes lead
to business or societal impacts that may require a response. Appendix 10 maps the Pathway
approach to the DPSIR framework.
References:
• Capitals Coalition (2016) Natural Capital Protocol. Available from: https://naturalcapitalcoalition.org/natural-capital-protocol/,
• Capitals Coalition and Cambridge Conservation Initiative (2020). Integrating Biodiversity into Natural Capital Assessments. Available
from: https://naturalcapitalcoalition.org/wp-content/uploads/2020/10/Biodiversity-Guidance_COMBINED_single-page.pdf
Box 4: Biodiversity Footprint assessment

A biodiversity footprint refers to the total impact of an organisation, project, region, service or
product on biodiversity and is one option to assess impacts. Biodiversity footprinting tools
attempt to capture the biodiversity impact of a company inclusive of its upstream and
downstream effects (along the value chain).113 This typically involves cross-linking a form of product
life cycle and/or value chain analysis to the physical locations of business activities and the various
biodiversity drivers involved.114, 115
Impacts on ecosystems are often translated into a single metric reflecting species availability,
and ideally based on surface areas adjusted for condition, such as mean species abundance per
area or potentially disappeared fraction of species per area per year. Some of the existing impact
measurement approaches measure both the positive and negative footprints. Some footprint
assessments may use ‘proxy approaches’ that consider biodiversity impacts as they relate to other
impacts, such as water pollution. However, calls are being made for advanced methods that
capture biodiversity related impacts (and dependencies) more accurately.
The results can allow insight into potential impacts and allow for prioritisation of efforts. However,
biodiversity footprints do not constitute measures of actual impact for each geographical area/
ecosystem, therefore it is recommended to use footprints in combination with other approaches,
such as environmental impact assessments (EIAs).116
Adapted from references:
• IUCN NL (2020). A compass for navigating the world of biodiversity footprinting tools: an introduction for companies and
policy makers. Available from: https://www.iucn.nl/app/uploads/2021/04/a_compass_for_navigating_biodiversity_footprint_
tools_-_final_1.pdf
• Hilton, S. and Lee, JM J. (2021). Assessing Portfolio Impacts - Tools to Measure Biodiversity and SDG Footprints of Financial
Portfolios. Gland, Switzerland: WWF. Available from: https://wwf.panda.org/?2898916/Assessing-Portfolio-Impacts
The assessment should be in the context of the final ecosystem services underpinned
organisational boundary set and of wider natural by biodiversity.
capital changes and social issues, with other
considerations including: Options for summarising dependencies and
impacts include a narrative description and/or
• Different business units and phases of the
graphical representation of the integrated
value chain (from raw material extraction to
business model. Where applicable, organisations
end-of-life of products, when applicable) in
should recognise and illustrate the
relation to their locations, thus considering
interconnected nature between impacts and
both on-site and off-site dependencies, and
dependencies, detailing how significant impacts
both those that are under and outside the
are connected to or arise as a result of
control of the organisation;xxx
dependencies (e.g. degradation of forest
• Aspects linked to the socio-economic context; ecosystem — impact — due to the use of timber
during the production process - dependency).
• Interactions between biodiversity impacts
and dependencies;
When reporting, it is recommended to
• Trends in external factors, outside the control categorise biodiversity impacts and
of the business, that may accentuate or dependencies into value chain phases (i.e. direct
moderate impacts, or result in changes to operations, downstream and upstream) and/or
business dependencies (e.g. the degradation into different impact driver categories (see Box
of a forest that currently provides flooding 2) as outlined by IPBES,117 the SBTN,118 the
protection). This may include both natural Natural Capital Protocol119 and the Transparent
forces and human activities, including project.120 To exemplify this, Appendix 6 contains
regulatory changes; a table of biodiversity impacts categorised into
• Dependencies/impacts that arise outside the impact driver categories.
reporting period timeframe. For example,
significant impacts from previous years that As biodiversity loss is interconnected to and shares
are still ongoing (despite the activity having impact drivers, such as pollution, water-use and
ceased) and future potential impacts/ land-use change, with other changes to natural
dependencies; and capital (e.g. climate change, land and water
degradation) (see Key Characteristics), it is helpful
• The need to consult with external for companies to detail their dependencies and
stakeholders to understand key biodiversity impacts on biodiversity in the context of wider
considerations. natural capital changes and social issues affecting
the business. Graphical representations may be
As organisations’ biodiversity dependencies and helpful in this respect. This contextualisation offers
impacts vary according to sector, role in the value report users the opportunity to understand:
chain and geographic location, organisations
• The position of biodiversity impacts and
should consider supplementary sector-specific
dependencies within the complex web of
and location-specific guidance where possible.
natural systems;
1.2 Reporting material information • Risks and opportunities emerging from
on dependencies and impacts interconnections and relationships between
Reporting details of the impact and dependency different changes to natural capital; and
assessment provides report users with useful
• How the reporting organisation integrates
business context regarding the selection of
learnings from interconnections into risk
biodiversity-related strategies, policies and
management, strategy and performance.
targets. Material information about biodiversity-
related dependencies and impacts should be The thinking and guidance in the Natural Capital
disclosed and related to the context of the Protocol,121 the Principles of Integrated Capitals
business model where possible, including those Assessments,122 British Standard Institute (BSI)’s
related to previous years that the organisation has standard on natural capital accounting for
continued responsibility for. This may include organisations123 and International <IR>
those related to ecosystems, species and/or the Framework,124, xxxi can support (1) the wider
xxx For practical suggestions refer to the Natural Capital Protocol (e.g. xxxi IIRC is as of 2021 is now part of The Value Reporting Foundation.
value chain in Table 3.6 and Table 5.4).
understanding of the relationships between products/services that are priorities to the

natural capital and also other capitals and organisation from a biodiversity management
(2) the preparation of effective disclosures. perspective. A concise overview of these
priorities can provide useful context to the
Finally, disclosing relevant metrics and valuations report user, enabling them to determine how
can help report users to understand the relevance they have been addressed through policies,
and magnitude of dependencies and impacts (see targets and management activities. Priority
REQ-03 and REQ-04 for further details). Methods elements reported should be within the
to measure dependencies are a current research organisational boundaries set and should
gap and may be challenging (see REQ-03). consider the value chain, as well as future
operations that have a degree of certainty.
1.3 Reporting priority species, ecosystems,
geographical areas and products/services Table 1 contains a summary of considerations
The dependency and impact assessment for determining priority species, ecosystems and
(also in combination with materiality and risk habitats, geographical areas and products/
assessment) should support the identification services, as well as useful details/indicators to
of species, ecosystems, geographical areas and report for each element.
Table 1. Determining priority species, ecosystems, geographical areas and products/services - considerations and useful indicators
(Adapted from: IUCN Guidelines for planning and monitoring corporate biodiversity performance and GRI 304 on Biodiversity)
Priority element Considerations Useful details or indicators to disclose

Species • Species commonly impacted by business • List of priority species deemed to
activities (e.g. forest dependent birds constitute material information, including
whose habitat is cleared for agriculture, a brief explanation linked to the
marine mammals struck by vessels). This geographic context of the business.
should also include species impacted by
• Protected and extinction risk status of
downstream value chain activities (e.g.
species, referring to external guidance,
consumer use of products).
such as the International Union for
• Threatened species within areas Conservation of Nature (IUCN) Red List
impacted by business activities (whether of Threatened Species.
impacted directly or not).xxxii
• Species that are unique to (i.e. restricted
to) or dependent on the sites or habitats
the company operates in.
• Species important for business continuity
(e.g. because they are necessary for the
final ecosystem services the organisation
depends on, such as pollination).
• Species that are important for local
stakeholders (e.g. of cultural value to local
or indigenous people, or are necessary
for the final ecosystem services that
stakeholders are dependent on).
Ecosystems and • Ecosystems commonly impacted by • List of priority ecosystems and habitats
habitats business activities (e.g. mangroves or deemed to be significant that the
seagrass beds being used by marine organisation interacts with, including a
construction companies). brief explanation linked to the context of
• Level of threat to ecosystems that are the business and geographical details.xxxiii
commonly impacted by business • Level of ecosystem threat, with reference
activities. to external resources, such as the IUCN
• Habitats unique to sites the company Red List of Ecosystems or conserved or
operates in or very localised habitats (e.g. protected areas.
seamounts or coastal upwellings). • Extent of ecosystems and habitats,
where possible.
xxxii For example, species classified as Critically Endangered, xxxiii The IUCN Habitat Classification Scheme and IUCN Ecosystem
Endangered or Vulnerable on the IUCN Red List of Threatened Species or Typology are useful resources.
species known to be locally threatened (e.g. on a national Red List).
Priority element Considerations Useful details or indicators to disclose

Ecosystems and • Critical habitats and ecosystems for
habitats (continued) threatened species.
• Key biodiversity areas and protected
areas (e.g. identified using tools such as
the Integrated Biodiversity Assessment
Tool (IBAT)).
• Habitats and ecosystems important for
business continuity (e.g. due to a business
dependency).
• Habitats and ecosystems important for
local stakeholders (e.g. due to providing
final ecosystem services such as water or
fish or holding cultural value to local or
indigenous people).
Geographical areas • Operational (or value chain) areas that • List of operational (or value chain) areas
are in or within close proximity to that are in, or within close proximity to,
important areas for biodiversity (e.g. important areas for biodiversity, including
protected areas, community reserves, (1) geographical location, (2) biodiversity
world heritage sites, key biodiversity value of areas (e.g. protected area status,
areas, critical habitats, biodiversity world heritage site status, key
hotspots). biodiversity area status, biodiversity
hotspot status), (3) description of
• Operational (or value chain) areas
operational activities in the area,
important to local stakeholders due to
including position within the value chain,
the final ecosystem services provided
and (4) level of control over the area.
(e.g. areas shared with local fisheries).
• A ‘heat map’ which informs report users
of which operational areas are the more
impactful or dependent on biodiversity
and where they are located
geographically.
• Extent of operational sites.
• Number of sites operated on that are of
importance to endangered/critically
endangered species.
• Percentage of sites located in priority
geographical areas compared to total
sites, and the corresponding contribution
to the organisation’s production and/or
revenue.
Products and/or • Products and/or services provided by the • List of priority products and/or services,
services organisation that are likely to have a including a description of the significant
significant impact on biodiversity (e.g. dependencies and/or impacts.
due to the production process or
• Description of whether the dependency
downstream disposal).
and/or impact is located within direct
• Products and/or services provided by operations, upstream, or downstream.
organisation that are dependent on
• Percentage of revenue attributed to the
biodiversity and therefore likely to be
products and/or services.
materially impacted by biodiversity loss.
It may be helpful to aggregate some details for consideration of geography and time is central
simplicity. For example, details on priority when reporting on biodiversity-related policies,
ecosystems could be aggregated into types of strategies and targets. For example:
ecosystems and details on priority species could
• Biodiversity-related regulations are more likely
be aggregated into different taxonomic levels
to be introduced in one country compared to
(such as genus or family) or ecological functions.
another;
When reporting details on priority geographical
areas, it may be helpful to categorise and/or • The nature and severity of biodiversity
aggregate areas based on their level of changes, such as species loss and ecosystem
biodiversity priority (e.g. according to habitat degradation and its implications for the
quality scores or protected/key biodiversity area socio-economic conditions, will vary
status, using tools such as ENCORE,125 STAR,126 significantly;128, 129
and IBAT127 or a combination — see REQ-04
• Risks and impacts related to biodiversity and
Useful Resources for further details). An example
final ecosystem services may extend well
of a detail being aggregated is reporting the
beyond the immediate vicinity of current
percentage of land split into ownership
activities; and
categories as opposed to the level of control for
each individual priority geographic area. • Potential impacts, opportunities and management
approaches vary according to geography.
Providing an explanation of basis, criteria, or
metrics for defining and determining priority The details reported will depend on the
species, ecosystems, and geographical areas is organisational boundary set (see Reporting
helpful for report users, including the considered boundary and period). It is also useful to explain
definitions of classifications, such as protected if specific goals or targets and prioritising actions
areas or areas with high biodiversity value.xxxiv are in place in priority geographical areas and
priority products/services.
2. Policies and strategies It is recommended that strategies and policies

are developed in connection to important
Organisations should outline policies, strategies agreements, policies or targets (e.g. SDGs,
and public commitments to protect, restore or Science-based Targets for Nature and United
sustainably use biodiversity. Report users should Nations (UN) Convention on Biological Diversity
be able to understand how identified risks and (CBD) post-2020 biodiversity framework),
opportunities (due to dependencies and national and regional regulations and goals (e.g.
impacts, see REQ-03) are reflected in the EU Biodiversity Strategy for 2030, the Leaders
organisation’s strategic development and how Pledge for Naturexxxv, the Nature Compact
they affect biodiversity-related ambitions. signed by G7 leaders, National Biodiversity
Strategy and Action Plans (NBSAPs)), and/or
It may be beneficial to set out the reasoning sectoral initiatives (e.g. One Planet Business for
behind the adoption of policies and strategies, Biodiversity which focuses on agriculture, the
explaining how they are mitigating risks and Finance for Biodiversity pledge and the
harnessing opportunities identified in the related requirement for International Council on Mining
assessment. The description should be and Metals (ICMM) members to commit to net
appropriately connected with risk management positive impact). As stated in the CDSB
processes and detail how biodiversity policies Framework, this is good practice because it
and strategies are integrated in the overall provides a basis for comparison, but the
business strategy and management (e.g. in relevance to the organisation should be
assessing organisation performance, overseeing explained. It is also suggested to provide details
expenditure, costing, acquisitions and divestures, of compliance to laws in different jurisdictions
and in assurance processes). Since biodiversity- (e.g. Brazilian forest code or EU Timber
related risks and opportunities vary greatly Regulation) or mandatory standards (e.g.
according to location and time horizon, Indonesian Sustainable Palm Oil standard).
xxxvi For example, the IUCN categorisation for national protected areas, xxxv 88 countries have currently signed, committing to reversing
international protected area designations including UNESCO World Heritage biodiversity loss by 2030.
natural and cultural sites, the Ramsar Convention wetlands sites, the UNESCO
Man and Biosphere Reserves; or Key Biodiversity Areas — sites that contribute
significantly to the global persistence of biodiversity, or other national or
regional protected areas or priority sites may be relevant for the organisation.
Examples of policies include commitments operations/value chain and geographic context.

(1) to avoid working in sensitive areas, Therefore, effective management responses
(2) to eliminate conversion of natural ecosystems, require both internal actions and external actions
or (3) to eliminate deforestation. Where possible, involving stakeholder engagement. Information
these commitments should be for specific on engagement and cooperation with other
ecosystems and species (e.g. a commitment to not stakeholders both at the operational site level
plant on peatlands). “Biodiversity net gain” or “no and along the value chain is useful to describe
net loss” commitments and policies,xxxvi involving the company’s action in tackling biodiversity
mitigation hierarchy principles (see Box 5),130 are risks. For example, engagement with suppliers
becoming increasingly expected by regulators (first tier and beyond), local communities and
(often embedded within national legislation) small holders, and participation in initiatives to
and are often required by financial institutions promote the implementation of biodiversity-
in order to finance a project.131, 132, 133, xxxvii related policies and commitments are key
Organisations should provide details of biodiversity elements to disclose to illustrate the company’s
net gain and no net loss commitments and, where engagement in the mitigation of biodiversity loss
relevant, a concise overview of performance in and sustainable land management.
relation to the commitment. It may also be helpful
to disclose how much of the value chain the Where relevant, organisations should provide
organisation has visibility over when setting out details of the mitigation hierarchy approach taken
policies/commitments. (see Box 5). It may be helpful for report users to
group (a selection of) management responses
Where biodiversity strategies/policies are (see Table 2) into mitigation hierarchy categories
included in or interact with other environmental and outline how they contribute to “biodiversity
or social policies, report preparers should draw net gain” or “no net loss” commitments.xxxvii
users’ attention to potential or existing synergies
or trade-offs, explaining the benefits and/or Box 5: Mitigation Hierarchy
feedbacks (e.g. effects of climate change).
Finally, explanation would be beneficial in the Mitigation hierarchy principles can be
event of: (1) exclusion of geographies, facilities, useful for shaping biodiversity management
or biodiversity changes from reporting scope, responses, as well as management strategies
(2) no stakeholder engagement, and (3) no and target setting (see Targets and timelines),
integration of biodiversity into the overall including along the value chain. The mitigation
organisation policy and strategy. hierarchy pathway is designed to address
biodiversity impacts and refers to the following
sequence of actions: 134, 135, 136
3. Management responses 1. Avoid impacts on biodiversity;
A summary of management responses should 2. Reduce biodiversity impacts as far as possible;

be disclosed to concisely exemplify the 3. Restore/remediate impacts that are
organisation’s approach to biodiversity immediately reversible; and
management. This should include details on
practices implemented to manage risks in the 4. Offset residual impacts to achieve a desired
short-term compared to the long-term and net outcome (e.g. no net loss or net gain).
should consider actions at the product, corporate The conservation hierarchy pathway,137
and value chain levels, as well as the operational designed to be used alongside the mitigation
site level. When applicable, this can be hierarchy pathway, provides a mechanism for
complemented with a reference to more detailed delivering additional conservation potential
external documents (e.g. dedicated biodiversity beyond direct impact mitigation. The SBTN’s
policy document or website). Action Framework (avoid, reduce, regenerate,
restore and transform) is based on the mitigation
Exposure to biodiversity-related risks and and conservation hierarchy but has been
opportunities depends on both business extended to also include transformative action.138
xxxvi “No net loss” refers to the point at which project-related impacts on xxxviii Biodiversity net gain metrics (often expressed as percentages)
biodiversity are balanced by mitigation measures. “Net gain” refers to where are still under development and need optimisation.
gains are greater than losses. Reference: Refer to the Natural Capital Protocol
Biodiversity Guidance and Biological Diversity Protocol for further information.
xxxvii For example, the UK has integrated Biodiversity Net Gain into its
Environment Bill, as a requirement for new infrastructure projects.
Categorising biodiversity expenditure into levels offset biodiversity impacts (which should only be
of hierarchy and providing percentages where performed as the last option of the sequence of
possible (e.g. 40% of biodiversity expenditure was actions), organisations should provide access to
on avoiding biodiversity impacts) can also offsetting methodologies, an explanation of why
provide useful context. activities could not follow any of the other
mitigation pathways and a statement outlining
The first stage of ‘avoidance of impacts’ is the how ecological equivalency has been
most important, therefore if it is necessary for an achieved.xxxix
organisation to descend the sequence of actions,
they should demonstrate why avoidance was Examples of management responses are
not possible. When detailing activities that aim to outlined in Table 2.
Table 2. Examples of management responses to biodiversity risks and opportunities, categorised into internal (responses related to internal policies
and business operations), external (responses related to stakeholders outside the organisational boundary), value chain phases (direct operations,
upstream, downstream), level (site, corporate, product) and possible mitigation hierarchy category.
Management response Inter- Exter- Value chain Level Possible mitigation

nal nal position hierarchy category
Investment in natural infrastructure (e.g. forests Direct Site; Avoid; Reduce;
for flood protection or wetlands to reduce water operations; Corporate Restore
treatment costs). Upstream
Implementation of projects/initiatives focused on Direct Site; Avoid; Restore
ecosystem restoration and protection, or operations; Corporate
preventing ecosystem conversion, such as Upstream;
deforestation. Downstream
Improving product design to improve longevity, Direct Product Avoid; Reduce
recyclability, circularity, resource efficiency or use operations;
of hazardous inputs. Upstream;
Downstream
Minimising the input of virgin materials. Direct Product Reduce
operations;
Upstream;
Downstream
Production of BAPs which aim to address Direct Site Reduce; Restore
identified biodiversity impacts and lead to the operations;
conservation or enhancement of biodiversity at a Upstream
local level.
Create an internal culture of learning around Direct Corporate Avoid; Reduce
biodiversity and sustainability. operations
Training courses for employees and suppliers. Direct Site; Avoid; Reduce
operations; Corporate
Upstream
Measurement and monitoring procedures in light Direct Site Avoid; Reduce
of risks and opportunities described in REQ-03, operations;
including throughout the value chain. Upstream;
Downstream
Measures implemented as a result of legal Direct Site; Avoid; Reduce
proceedings or legal obligations, such as operations; Corporate;
changes to operations, processes, products or Upstream; Product
technology. Downstream
Processes used to integrate biodiversity Direct Site; Avoid; Reduce
considerations into site and product selection operations Product
and design, including the level of ecological
sensitivity and methods to minimise ecological
impacts such as soil disturbance and erosion,
storm water, waste, and wildlife habitat impacts.
xxxix For further details on ecological equivalency, please refer to the

Biological Diversity Protocol, the BBOP Guidance Notes to the Standard on
Biodiversity Offsets, DEFRA Biodiversity metrics 3.0 – User Guide.

Using standard and certification schemes to Direct Site; Avoid; Reduce
independently verify business activities and operations; Product
actions related to biodiversity (e.g. Marine Upstream
Stewardship Council or Forest Stewardship
Council certifications).
Implementing a biodiversity informed Direct Corporate Avoid; Reduce
procurement strategy which, for example, operations;
sources products based on their biodiversity Upstream
dependency, with the aim of reducing operating
and financial risk.
Gaining relevant biodiversity certifications for Direct Site; Avoid; Reduce
production/sourcing of commodities with operations; Product
increased risk (high dependency or impact). Upstream
Participating in an extended producer responsibility Downstream Product Reduce
scheme or applying product stewardship, which
extends the producer’s responsibility for a product
or service to its end of life.
Engaging in/implementing product take-back Downstream Product Avoid; Reduce
schemes to divert products and materials from
disposal.
Implementing agreements with third parties to Direct Site; Reduce
follow specific procedures when managing waste. operations; Corporate
Upstream;
Downstream
Where available, setting science-based targets Upstream; Site; Avoid; Reduce;
for value chain partners to achieve for their sites Downstream Corporate Restore
and adjacent landscapes/seascapes.
Where relevant, design products that enable Downstream Product Avoid; Reduce
customers to have more sustainable lifestyles
and behaviour.
Consumer engagement to raise awareness Downstream Product; Avoid; Reduce
about sustainable consumption practices from a Corporate
biodiversity perspective.
Stakeholder engagement activities aimed at Direct Site Avoid; Restore
integrated biodiversity management influencing operations;
governance within an area, and protection and Upstream;
restoration of habitats or ecosystems. Downstream
Work with industry coalitions to establish and Direct Corporate Avoid; Reduce
share best practices. operations;
Upstream;
Downstream
Implement systems that conciliate production Direct Corporate Restore
and restoration. operations;
Upstream
Advocate to support the effectiveness of Direct Corporate Avoid; Reduce;
biodiversity-related actions from local and operations; Restore
national governments and halt similar advocacy Upstream;
efforts that are detrimental to the protection of Downstream
biodiversity.
Engage in integrated multi-stakeholder planning Direct Corporate Avoid; Reduce;
for natural resources at the landscape level, operations; Restore
including consideration of cumulative impacts. Upstream
Support of biodiversity restoration efforts where Direct Site; Restore
these are linked to business operations, such as operations; Corporate
funding biodiversity related projects. Upstream;
Downstream
Support species restoration activities, including Direct Corporate Restore
to reduce extinction risk. operations;
Upstream;
Downstream

Avoid business activities within a particular Direct Site; Avoid
geographical area or landscape/seascape operations; Corporate
(e.g. within internationally recognised areas Upstream
of importance).
Avoid business activities within a particular Direct Site Avoid
season or time period (e.g. not disturbing the operations;
ground in the wet season to avoid soil Upstream
erosion, or not harvesting fish during
spawning season).
Changes to the business model, such as Direct Corporate Reduce
moving from ownership to leasing/sharing operations;
economy models or using digitalisation to Downstream
minimise the need for materials.
Moving production to a lower impact location Direct Site Avoid; Reduce
(following careful consideration of the risk to operations;
livelihoods caused by the shift in business). Downstream
Organisations should include details of how and policies in terrestrial and marine areas, and (3)
management responses relate to the policies and and the percentage of sites to which management
targets set, as well their effectiveness, linked to practices apply (if not 100%).
relevant biodiversity impact and performance
metrics (see REQ-04 and REQ-05). Quantitative 4. Targets and timelines
examples can also help to demonstrate the
effectiveness of measures, for example: Detailed and consistent disclosure and related
timelines is especially important for the reporting
• Number of species of flora or fauna transplanted;
of corporate targets to enable the measurement
• Number of (and/or percentage of) trained of performance against biodiversity policies and
employees, number of partnerships signed by strategies over time. The results of biodiversity
the company with a scientific body or nature impact and dependency assessments, ecosystem
conservation stakeholder; services assessments, biodiversity footprint
assessments, and risk assessments may be
• Costs avoided by measures to reduce impacts;
helpful to inform targets. Global biodiversity
• Reduction in number of incidents of illegal or initiatives (e.g. the SBTNxl, United Nations (UN)
unsustainable activity; and CBD post-2020 biodiversity frameworkxli, a
• Reduction in number of animal strikes Global Goal for nature and SDGs) can be helpful
(e.g. by boats or turbines). for forming targets (see Useful resources), as well
as regional, national, and subnational biodiversity
Report users should connect management strategies (e.g. NBSAPs, Subnational Biodiversity
responses to the impacts and dependencies Strategies and Action Plans, and Regional
identified, and related risks and opportunities, Biodiversity Strategies and Action Plans).
ideally having a suite of linked indicators
demonstrating the effectiveness of responses. The type of target and indicator, baseline/
reference state, timeline, and scope should be
As management efforts may take time to achieve clearly described to investors and connected
their outcomes, it is necessary to outline how the with the addressed business risks and/or
effectiveness of management responses is opportunities, as well as with the overall business
monitored on an ongoing basis (for example, strategy. Biodiversity targets being developed for
carrying out biodiversity impact assessments at the CBD’s post-2020 global biodiversity
appropriate intervals). It is also helpful to detail framework have emphasised the need for
(1) where actions are voluntary and/or go beyond “Specific, Measurable, Ambitious, Realistic, and
legal obligations, (2) differences between practices Time-bound” (SMART) targets, which is also
xl Science Based Target Network. Available from:

https://sciencebasedtargetsnetwork.org/
xli The current global goal for nature is to transition to nature-positive by
2030 and to live in harmony with nature by 2050.
encouraged for organisations.139 The SBTN As an organisation progresses with its

defines science-based targets as being biodiversity strategies and policies, it is beneficial
measurable, actionable, and time-bounded, to explain its progress towards targets and what
based on the best available science, that allow factors have been intrinsic to achieving or
actors to align with Earth’s limits and societal surpassing the targets. Progress towards targets
sustainability goals.140 Whilst defining the may be expressed in terms of reducing negative
planetary boundary for biodiversity is impacts but also through more proactive targets.
challenging,141 the principles of planetary REQ-05 contains examples of indicators. When
boundaries142 can be useful for guiding targets have been or are likely to be missed, this
biodiversity target-setting within the context of should be rationalised, detailing factors that were
other societal risks. The National Biodiversity significant and explaining what could have been
Account (e.g. based on the UN System of and could not be controlled or better managed.
Environmental Economic Accounting (SEEA)143) Explaining how strategies will be adapted to
developed by the National Statistical Office can improve performance as a result would be of
help organisations to define targets which are particular interest to report users.
specific for different contexts.
Where biodiversity targets interact with other
Targets should follow the principles set out in the environmental or social policies, report preparers
CDSB framework, with useful details to report should draw users’ attention to potential or
including: existing synergies, explaining the benefits and/or
feedbacks (e.g. effects of climate change).
• Are the targets contextual and science-based?
• Have the baseline/reference state and target
year been defined? 5. Resourcing
• Are targets quantifiable?
When reporting on biodiversity-related policies,
• Are specific targets set for priority species, strategies and targets, companies should set out
ecosystems, geographical areas and products/ the resourcing, both financial and personnel,
services or for areas where no biodiversity for meeting the delivery of the biodiversity
standards exist (e.g. set by regulatory policies and strategy. Such detail in a
mechanisms)? mainstream report can offer investors
• Are targets measured through KPIs and are reassurance of the organisation’s commitment
these used internally by management? and effort to meeting its biodiversity ambitions.
Reporting on resourcing is especially important
• Have targets been discussed with stakeholders? if the organisation’s strategy requires significant
Will they fulfil stakeholder expectations? capital investment or operation reorganisation to
• Are targets aligned with international goals, and/ meet its ambitions. Additionally, specific
or with regional, national, or local regulations? resources in place in priority geographical areas
should be detailed.
• How do targets link to and contribute towards
commitments such as “no net loss” or “net gain”
and/or commitments in response to regulatory
or impact drivers?
Due to the variability of biodiversity impacts

over time (see Key characteristics), it may be
beneficial to set timelines for targets according
to how the organisation has defined the short-,
medium- and long-term in its risk and outlook
analysis. Due to the geographical variation in
biodiversity priorities, as well as differing legal
and regulatory requirements, targets may
need to be tailored to different locations or be
specific to categories of areas based on their
risk-ratings (e.g. specific targets for priority
geographical areas).
Useful Resources:
Biodiversity impact and dependency
assessment / footprint assessment
1. The Biodiversity Guidance to accompany the 7. The Biological Diversity Protocol is currently
Natural Capital Protocol offers a decision- the only existing accounting framework for
making framework for completing a biodiversity- biodiversity footprint assessments. It offers an
inclusive natural capital assessment, allowing accounting and reporting framework that
organisations to identify, measure and value their enables organisations to produce Statements
direct and indirect impacts and dependencies of Biodiversity Position and Performance, which
on biodiversity. The Biodiversity Guidance can be used to measure performance and risk
Navigation Tool guides users through a over time.
biodiversity-inclusive natural capital assessment,
8. Among other information, the Biodiversity A
following the steps in the Natural Capital
to Z provides biodiversity-related data at the
Protocol and suggesting specific tools, resources
country level, such as recognised protected
and methodologies based on the scope/area of
areas and biodiversity designations.
the value chain a company sits.
9. Tools providing interactive maps can support
2. Stage 1 of the IUCN Guidelines for planning
the assessment of dependencies and impacts:
and monitoring corporate biodiversity
performance offers guidance around defining • ENCORE allows the exploration of
the corporate scope of biodiversity influence, dependencies (on ecosystem services) and
identifying which pressures (drivers) and impacts (on ecosystems) on nature of
dependencies are the most important for a businesses across all sectors. Additionally, the
company to tackle, based on the importance of biodiversity module allows users to assess the
each pressure and the level of control, as well as potential to reduce species extinction and
identifying priority species, habitats, areas and ecological integrity risk of portfolios (using
ecosystem services. the STAR metric).
3. The Good Practices for the Collection of • The IBAT tool provides geographic information
Biodiversity Baseline Data by the Multilateral about global biodiversity (i.e. World Database
Financing Institutions Biodiversity Working on Protected Areas, IUCN Red List of
Group & Cross Sector Biodiversity Initiative Threatened Species, and the World Database
supports the implementation of biodiversity- of Key Biodiversity Areas) that support the
inclusive impact assessments (in particular for assessment of priority areas and impact. The
Environmental and Social Impact Assessments) results of the assessment can indicate whether
and management planning, by providing a companies might contribute towards species
step-by-step approach (from the identification extinction risk, changes to species abundance,
of the area to long term monitoring) and a deterioration of indigenous peoples’ protected
useful summary and checklist. This resource is areas, also through metrics such as the
also useful for REQ-04. Biodiversity Impact Metric (which uses the
Rarity-weighted Species Richness data from
4. Bioscope provides businesses with a simple
the IUCN Red List) and the STAR Metric scores
and fast indication of the most important
per site.
impacts on biodiversity arising from their
supply chain, including the potential impact of • The Global Forest Watch is a tool for exploring
commodities purchased as well as the and monitoring forest changes and associated
upstream supply chain. biodiversity impacts in different areas through
interactive maps and country dashboard.
5. The first and the second stage of the
Biodiversity indicators for site-based impacts • The Ocean Data Viewer allows users to view
methodology support the identification of sites (and download) a range of spatial datasets
(operations) with potentially high biodiversity on marine and coastal biodiversity that are
significance. useful for informing decisions regarding
the conservation of marine and ocean
6. GRI 304 disclosure standards on biodiversity
ecosystems.
include a disclosure on operational sites owned,
leased, managed in, or adjacent to protected
areas and areas of high biodiversity value.
Useful Resources:
Policy, strategy and targets Management
10. The Finance for Biodiversity Pledge, launched 17. The Business and Biodiversity Offsets
in September 2020, is a global group of 26 Programme provides a roadmap to help users
financial institutions committing to protect and develop and apply best practice towards
restore biodiversity through finance activities and achieving no net loss and preferably a net gain
investments. Financial institutions are encouraged of biodiversity through the application of
to sign and join the collective action which mitigation hierarchy principles.
includes knowledge sharing. The group released
18. The Mitigation hierarchy guide, prepared
a guide on biodiversity measurement approaches
by the Cross Sector Biodiversity Initiative,
for financial institutions.
is a cross-sector guide, providing practical
11. Stage 2 of the IUCN Guidelines for planning guidance, innovative approaches and
and monitoring corporate biodiversity examples for supporting the implementation
performance offers guidance around developing of mitigation hierarchy.
a corporate biodiversity vision, goals and
19. The Nature Conservancy’s Achieving
objectives, generally focused on improving the
Conservation and Development offers principles
state of biodiversity or associated benefits to
for setting mitigation hierarchy commitments.
people (ecosystem services).
20. No Net Loss and Net Positive Impact
12. The Science based targets network provide
approaches for Biodiversity explores the
targets which define and promote best practice
application of these approaches in the
for businesses by accounting for the five Earth
commercial agriculture and forestry sectors.
systems: climate, freshwater, land, ocean, and
biodiversity. Initial business guidance was 21. The IUCN have published A Framework for
published in September 2020. Corporate Action on Biodiversity and Ecosystem
Services which enables users to explore
13. Nature Positive’s Global Goal for Nature
biodiversity and ecosystem services as it relates
argues for the adoption of a Nature-Positive
to their activities and corporate sustainability,
Global Goal for Nature with three measurable
with the aim of integrating them into business
objectives which can be useful for shaping
activities and engaging top management in the
corporate strategy: Zero Net Loss of Nature
development, implementation and disclosure of
from 2020, Net Positive by 2030 and Full
policies and practices.
Recovery by 2050.
14. Beyond ‘Business as Usual’: Biodiversity
Targets and Finance, by the UN Environment
Programme (UNEP) Finance Initiative and
Global Canopy, sets out an initial approach to
enable financial institutions to set evidence-
based biodiversity targets aligned with
international policy developments.
15. The Guidance on Biodiversity Target-setting,
developed by UNEP Finance Initiative and UNEP-
World Conservation Monitoring Centre (WCMC),
allows banks to take a systematic approach to
setting and achieving biodiversity targets,
presenting four case studies and a how-to guide.
16. The SDG Indicators, Biodiversity Indicators
Partnership and OECD Environmental Indicators
may be helpful for setting targets, particularly
those that outline contributions to global
biodiversity goals.
Examples
1. Repsol Integrated Management Report 2020 4. Kering Universal Registration Document 2020
describes the context around the company’s clearly summarises its biodiversity strategy.
biodiversity-related disclosures; ecosystems in It discloses its target of achieving net positive
general and biodiversity in particular are a key biodiversity impact by 2025, which is supported
component of its natural capital. The company by quantitative commitments (e.g. protect 1
discloses potential impacts on biodiversity by million hectares of essential and irreplaceable
defining relevant activities, describing related habitats outside of its supply chain) (pg. 136).
impacts and likelihood, and distinguishing Kering has joined the SBTN initiative in order to
between operation phases (pg. 75). contribute to the development of science-based
methodologies (pg. 177).
2. Iberdrola Biodiversity Report 2018-2019
describes the main biodiversity dependencies 5. Firmenich Sustainability Report 2020
and potential impacts. Relevant project stages communicates the company’s commitment to
and tools used to evaluate the impact of the CBD Post-2020 framework to reach net
activities in different project stages are also positive impact by 2030. It plans on supporting
disclosed (pgs.35-38 — linked to REQ-04). The this commitment by combining the use of natural
company describes its biodiversity policy and resources with smart developments in green
action plan (pg. 21), which includes achieving chemistry and white biotechnology (pg. 49).
“No Net Loss” of biodiversity by 2030. It
6. FrieslandCampina Annual Report 2020
describes that this target is based on the
describes the strategy it has adopted to
mitigation hierarchy principle in all activities and
address the risks resulting from flora and fauna
continual improvement of biodiversity
deteriorating in the Netherlands, threatening
protection standards. Management tools
the milk production of its dairy suppliers (linked
adopted to implement commitments are also
to REQ-03). The organisation recognises the
disclosed (e.g. Group Biodiversity Policy, BAPs,
extent to which its member dairy farmers
EIAs for new projects, etc.) (pg. 20).
influence biodiversity, and incentivises its
Biodiversity protection and conservation
protection by collaborating with farmers and
emerge as part of the Group’s overall
providing a higher price for sustainably
Environmental Management System (pg. 22).
produced milk. The report clearly recognises
3. Solvay Annual Report 2020 discloses the the shared efforts required to address
pressure points through which the company biodiversity, and states that “the financial
impacts biodiversity (15 pressures; e.g. GHG perspective needed to really invest in
emissions, freshwater eutrophication, marine biodiversity and make a real difference is still
ecotoxicity, and soil acidification) (pg.123). mostly lacking” and that “improving biodiversity
Solvay discloses its commitment to reduce its costs money and we all are responsible for this
biodiversity impact by 30% by 2030 compared cost, all of society” (pg. 61).
to the baseline year of 2018, in areas such as
climate, terrestrial acidification, water
eutrophication, and marine ecotoxicity
(calculated using the ReCiPe methodology)
(pg. 123). The target was endorsed by the
Act4Nature International coalition (pg. 124).
REQ-03 risks and opportunities, organisations may find it

Risks and opportunities helpful to prepare an asset risk register, which
consists of a list of balance sheet assets (including
Disclosures shall explain the material current natural capital) and the associated biodiversity
and anticipated environmental risks and risks. Biodiversity-related risks, and consequent
opportunities affecting the organisation potential implications for the business, principally
relate to:
Disclosure checklist • The reduction or loss of biodiversity-related
resources and services that the organisation/
value chain directly depend on (e.g. timber
Identify significant biodiversity-related risks production or fish stocks);
and opportunities (including those arising
• The reduction or loss of ecosystem services
from the loss of related final ecosystem
underpinned by biodiversity that the
services) by adopting a value-chain approach
organisation/value chain depend on indirectly
and considering different types of risk?
(e.g. loss of soil fertility that benefit agri-
Explain the implications of significant business as a result of soil biodiversity, or loss
biodiversity-related risks and opportunities of protection from storms due to degradation
on business, value chain and products/ of habitat causes by the organisation itself or
services, specifying the geographical by other actors);
locations and time horizons in which they
• Risks resulting from the implementation of
will materialise?
mitigation hierarchy principles for biodiversity
Quantify biodiversity-related risks and impacts (e.g. expenses/liabilities), stranded
opportunities in the context of the assets (e.g. expansion of protection area
organisation’s business model and strategy, networks due to new national and international
using relevant financial and non-financial commitments) or impairment of assets linked
metrics and the quantification of to biodiversity and ecosystem services;
dependencies where relevant?
• Socio-economic and political conditions, and
Describe the systems and processes used regulatory regimes in the areas of operations
for assessing, identifying, and monitoring and throughout the value chain;
biodiversity-related risks and opportunities,
• Biodiversity changes (to ecosystems, species
including whether they are integrated with
or final ecosystem services) caused by
existing risk management systems and
business activities that have implications for
processes and are stakeholder inclusive?
wider society (e.g. local communities or
customers) consequently driving market,
Biodiversity-related risks and opportunities can reputational or financial risks linked to access
be complex and have distinctive features, to financial resources; and
including (but not limited to) being subject to
spatial and temporal variations, can follow • Other interconnected environmental changes
non-linear pathways, are shaped by uncertain and trends such as land degradation and
actions by different actors that are not always climate change.
directly manageable by the organisation, and are
influenced and often exacerbated by external Table 3 provides an overview and examples of
factors, such as climate change, land degradation sources of biodiversity-related risks and
or water depletion. The interconnected and opportunities that should be considered by
shared nature of biodiversity makes the organisations and the associated financial risks for
understanding of trends in external factors, as the business. Risks and opportunities are grouped
well as internal, critical. according to the categories used in the TCFD
recommendations, namely physical risks and risks
Biodiversity-related risks and opportunities can be linked to the transition to a biodiversity-positive
highly specific to the organisation, its sector/ future, including policy and legal, market,
activities, and each of its operational and value technological, and reputational risks. The
chain sites, and related geographic contexts, literature on nature-related financial risks and
where the organisation has dependencies and/or opportunities is still emerging. Physical risks (and
impacts on the goods and services that opportunities) within this document includes not
biodiversity provides/underpins. When analysing only physical risks (and opportunities) but also
biological, ecological, chemical and other risks some can fall under more than one risk category
and opportunities.144, 145, 146, 147 or result from cascading effects (e.g. physical
risks linked to land and soil degradation can be
The included examples can originate from either caused by policy and legal risks, such as poor
the business (e.g. sector and/or activities) or regulations on biodiversity conservation or on
from external geographic context and drivers polluting emissions). When selecting which
(e.g. presence of biodiversity-rich areas or categories to disclose, preparers need to assess
effects of climate and land-use change), and what is significant to their organisation.
Table 3. Biodiversity-related financial risks and opportunities that may guide organisations’ risks (and opportunities) assessment. Examples are
classified with BD, when they relate to changes to biodiversity and/or ecosystems, and with FES, when they relate to the loss of final ecosystem
services. The provided examples are labelled according to the origin: business-specific risks are labelled with B , and risks that may be caused by
external geographic context and drivers are labelled with E . Additionally, links with other environmental drivers are provided: examples linked to
climate change are labelled with C , those that are linked to water changes with W , and those that are linked to land-use with L .
Sources of biodiversity-related business risks Financial risks for the business

Physical Acute
risks
Degradation of biodiversity and ecosystems BD • Increased natural hazard costs, for example,
and loss of their natural protection (e.g. caused FES impaired assets due to damages resulting
by vegetation clearance for initial clearing for from floods or cyclones, not limited to the
mining sites), which can exacerbate severity of organisation’s property (e.g. infrastructures it
damages from extreme weather events such relies on)
as cyclones, droughts, flooding and storms
• Reduced revenue and/or increased costs due
B E C W L
to interruption of operations or interruption/
Species loss and ecosystem degradation BD deterioration of supply chain as a
(e.g. loss of connectivity associated with consequence of uncertainty of natural inputs/
species ranges, impacting flyways or marine raw material supply (e.g. loss of pollinators,
migratory corridors) due to leaks or accidental pests, loss of fish stocks, water), or damage
discharges (e.g. oil) contaminating air, soil and caused by natural hazards
water bodies by the organisation itself or by • Increased insurance premiums and potential
other stakeholders located in the same area for reduced availability of insurance on assets
B E W L
• Increased capital expenditure due to
Disease or pests affecting the species or variety BD adaptation (e.g. mechanical pollination,
of crop the organisation relies on, especially in protection against floods)
the case of no or low genetic diversity B E
• Reduced productivity and consequent
Chronic rethinking of production processes or timing
(e.g. agricultural production)
Increasing scarcity or variable production FES
of key natural inputs B E C W L • Write-offs, early retirement of existing assets
and relocation of operations and suppliers,
Ecosystem degradation due to operations BD affecting the costs of raw materials (e.g.
leading to, for example, coastal erosion and transportation)
forest fragmentation B E C W L
Ocean acidification (due to industrial waste or BD

improper land management) causing
degradation of reef, coastal and planktonic
ecosystems and consequent losses of aquatic
biodiversity E C W
Overfishing and bycatch B E FES
Land loss to desertification and soil BD

degradation and consequent loss of soil FES
fertility B E C L
Species loss and ecosystem degradation due BD

to contamination of air, soil and water bodies
(e.g. pesticides) caused by the organisation
itself or by other stakeholders located in the
same area (also cumulative) B E W L

Policy Changes to existing legislation and/or new BD • Increased costs of operations and inputs to
and Legal legislation (e.g. creation of new protected FES operations (e.g. higher charges for extracting
areas) or license fees E C W L groundwater, timber or for waste disposal)
Tighter (emerging) legislation (e.g. trades BD • Increased costs of personnel (report

restrictions or taxes) on activities, products preparers, biodiversity experts) and
FES
and/or services that impacts biodiversity monitoring activities required for reporting
(both species and ecosystems), and rights, activities (e.g. data collection campaigns)
permits, and allocations on natural resources • Increased fines, penalties, compensation, or
designated to alleviate pressure on nature or legal costs (e.g. due to liability for natural
impacts on local communities (e.g. their access capital impacts)
to water, foraging, and hunting) E C W L
• Increased capital costs or production losses
Enhanced reporting obligations on biodiversity, BD due to permit denials or delays
ecosystems and related services E FES • Reduced revenue from decreased production
capacity due to limited access to natural
Exposure to sanctions and litigation BD
resources
(e.g. spills of polluting effluents that damage
human and ecosystem health; or violation • Fines due to violation of regulations
of biodiversity-related rights, permits or • Increased costs and/or reduced demand for
allocations; or negligence towards or killing products and services resulting from fines
of threatened species) B E and judgments
Non-compliance with legislation on, BD • Loss of revenues or stranded assets due to
for example, use of natural resources/ FES loss of a permit to operate from litigation and/
ecosystems B or from direct action by the regulator towards
Ineffective biodiversity governance in an area, BD non-compliance
across boundaries (i.e. transboundary • Increased compliance costs
governance) and cooperation resulting in
• Disruption of operations or supply due to
biodiversity loss and nature degradation
reduced supply of natural resources caused
(e.g. biodiversity-rich ecosystems crossing
by poor transboundary governance or poor
national boundaries) E
infrastructures
Stakeholder conflicts due to competition in the BD • Loss of licence to operate due to non-
exploitation of resources and ecosystems or FES compliance
due to impacts on biodiversity or ecosystems
• Starting delays due to permits
(e.g. in transboundary protected areas where
no cooperation between countries is in place) • Increased export costs
E L
Market Shifting customer values or preferences to BD • Reduced demand for products and services
products (e.g. food, textile) with lower impacts FES (reduced market share)
on biodiversity and ecosystems (e.g. lower
• Increased production costs
biodiversity footprint) E
• Supply disruption
Volatility or increased costs of raw materials BD • Increased raw material or resource costs
(e.g. biodiversity-intense inputs for which FES • Loss of market access
price has raised due to ecosystem
• Smaller customer base
degradation) B E C W L
• Limited or denied access to new markets
Technology Transition to more efficient and cleaner BD • Expenditure for R&D of new
technologies (i.e. with lower impacts on and alternative technologies
biodiversity) B C W L
• Capital investments in technology
Substitution of existing products and services BD development
with lower biodiversity footprint or cleaner • Unsuccessful investments in technology
emissions options B C W L
• Increased costs of operations and raw
Lack of access to data or access to poor BD materials (e.g. higher energy use) required
quality data that hamper biodiversity-related to achieve biodiversity-related goals
assessments B E • Lack of access to technology developed
New monitoring technologies (e.g. satellite) BD by competitors resulting in higher
used by regulators E operational costs
Adaptation technologies required to cope with FES

new future scenarios and trends (e.g. climate
resistant crops, mechanical pollinators, water
purification, flood protection) B E C W L

Reputa- Shifts in consumer sentiment towards the BD • Reduced demand and purchase of products
tional organisation/brand as a result of poor and services
biodiversity management and/or lack of
• Workers’ strike (in case of damages to natural
stewardship activities B E
resources, ecosystems and their functioning
Stigmatisation of sector due to impacts on BD used by local communities)
biodiversity and ecosystems (e.g. mining, • Loss of licence to operate (e.g. after
infrastructures) B E community protests)
Stakeholders’ (e.g. communities, activists, BD • Loss of social licence to operate,148

stockholders) perceptions, concerns and FES which may also result in stranded assets
pressure related to the organisation’s impacts
• Increased security costs
on and management of biodiversity B E
• Increased staff turnover, higher recruitment
Violation of nature-related rights through BD and retention costs
operations (e.g. reduced access to timber for FES • Reduced loyalty of key suppliers or business
local communities; degradation of biodiversity-
service providers
rich sites that have cultural value for local
communities, displacement of indigenous
communities) B C W L
Negative media coverage due to impacts on BD

critical species and/or ecosystems B E
Biodiversity social conflicts over endangered BD

species, protected areas, resources or FES
pollution B E C W L
Sources of biodiversity-related opportunities Financial opportunities for the business

Resource Transition to more efficient services and BD • Reduced operation and compliance costs
Efficiency processes requiring less natural resources, energy FES
• Reduced exposure to raw materials/natural
or impact on biodiversity, ecosystems and their
resources price volatility
services (e.g. fracking) B E C W L
• Reduced reliance on natural resources and
Increased reuse and recycling of natural BD increased resilience to potential shortages
resources (e.g. circular approach) reducing
dependencies and impacts on biodiversity
and ecosystems B E C W L
Reduced waste production, effluents and BD

emissions B W L
Products, Development of less resource-intense products BD • Increased resilience due to business diversification
services, and services (e.g. adopting regenerative FES • Access to new markets due to less
and market agriculture that restore and preserve soil fertility
resource-intense products and services
with a consequent reduction in the use of
fertilisers) B E C W L • Increased insurance coverage and access
to new assets that require it
Development of green solutions (e.g. nature- BD • Access to public-sector incentives
based solutions or biodiversity-related
• Reduced costs of raw materials and inputs
insurance risk products) B E C W L
to production
• New revenue streams (e.g. carbon offsets, sale
Ability to diversify business activities BD of surplus water rights, habitat credits)
(e.g. new business units on green FES
infrastructures leveraging organisation • Faster access to permits
experience on site remediation) B • Reduced interest rate costs
• Reduced fines and regulatory compliance costs
Financial Access to biodiversity-related and/or green BD • Increased access to funds and loans
incentives funds, bonds, or loans B E C
• Access to capital for high-risk projects
Incentives for suppliers to improve their BD
biodiversity and ecosystem management B E
Sources of biodiversity-related opportunities Financial opportunities for the business

Resilience Diversification of biodiversity-related BD • Increased business stability
resources (e.g. use of different plant species)
• Business and supply chain continuity
and business activities (e.g. start a new
business unit on ecosystem restoration) B • Reduced capital infrastructure costs
Participation in programmes and adoption of BD • Reduced costs for damages

resource-efficiency, recycling and circularity • Improved risk mitigation via improved
mechanisms that reduce the dependencies understanding of the organisation’s impacts
and impacts on biodiversity and ecosystems and dependencies on biodiversity
B E C W L
• Increased resilience to natural disasters
Improved biodiversity-related monitoring BD • Improved response to regulatory changes
activities and data availability B E
Adopting a landscape approach to biodiversity BD

management and implement nature-based
solutions B E
Investing in “green” infrastructure BD

(e.g. protecting against natural hazards or FES
improving water filtration by restoring wetlands)
B E C W L
Reputation Collaborative engagement with stakeholders to BD • Improved reputation among stakeholders

and rela- tackle biodiversity-related challenges B E located in areas of operations or value chain
tionship
• Improved stability of operations and working
with stake-
conditions
holders
Improved conditions of biodiversity and BD • Improved ability to attract and retain employees
ecosystems the organisation relies on (e.g. FES • Increased brand value
wetlands restoration can improve water
purification) B E C W L • Improved supply chain engagement
• Increased influence of government policy
When conducting a risk assessment, it is important practical tools that can guide companies in their
to adopt a broad approach by ideally considering: assessment of risk and opportunities.
• Different types of potential impact drivers
(e.g. resource exploitation, land-use change,
1. Detailing risks and opportunities
contributions to climate change; see Table 8);
• Suitable spatial scales and time periods (see When disclosing material information about
Key characteristics and Reporting biodiversity-related risks and opportunities in the
expectations and important considerations); mainstream report, thoroughly describing them
by specifying their key characteristics and
• The cumulative impact over time and of all
explaining their relevance to the organisation
parties that affect a given geographic area;
offers useful information to report users. In terms
and
of characteristics for high quality reporting, it is
• Any potential thresholds or tipping points as essential to properly account for when and where
well as the multiple ways in which biodiversity the risk or opportunity may materialise, specifying
has value to different stakeholders. whether it concerns a specific business area (e.g.
priority products/services), a particular region or
Like other risks and opportunities that companies site (e.g. priority geographical areas) and time
face in the modern, interconnected era, those horizons, for instance.
related to biodiversity require careful
consideration, across all the locations of Causes and sources of risks and opportunities
operations and value chain, different time and their implications for the business (on
horizons and potential future pathways. For this operations, value chain, business model and
reason, risk management approaches, horizon financial results) should be described and linked
scanning, forecasting, sensitivity testing and to the dependencies and impacts identified in
scenario analysis, which is discussed further REQ-02, biodiversity impact metrics (REQ-04),
below in relation to REQ-06, are amongst the and performance (REQ-05) where appropriate.
Information on material biodiversity-related risks • Scenarios considered in the risk assessment,

and opportunities should include considerations describing which drivers that may influence the
of and details on: business-biodiversity interactions are included,
• Methods and procedures for risk and such as regulations, socio-economic drivers, and
opportunities assessment and monitoring, as environmental drivers like climate change. This
well as materiality assessments, including tools information is interconnected with scenario
used (e.g. geospatial monitoring tools; ground- analysis disclosed under REQ-06.
based monitoring systems; community-based
Where biodiversity-related risks interact with
monitoring; first-, second-, third-party
other business and environmental risks in
verification; see Tools for assessing biodiversity-
amplifying manners (i.e. aggregate risks), it is
related risks), timeframes, risk categories,
prudent for companies to identify and explain
biodiversity-related issues considered (e.g.
such connections and feedbacks.
compliance with biodiversity-related regulations
and/or mandatory standards), stakeholders
Finally, explanation would be useful
considered (e.g. only first-tier or beyond
(1) if the organisation does not undertake
suppliers), frequency of assessment and on the
a biodiversity-related risk assessment or
integration into overall business risk assessment;
(2) if the organisation does not consider itself
• Geographic specificity and influencing context- to be materially exposed to biodiversity-related
specific elements, connected to the priority risks and opportunities.
species, ecosystems, geographic areas and
products/services identified in REQ-02 where
appropriate, such as geography, climate, status 2. Quantification of financial risks
of biodiversity and ecosystems, regulation, and opportunities
location in or proximity to (within, adjacent or
near) designated protected areas for biodiversity Decision-useful disclosures should illustrate
conservation, and socio-economic conditions biodiversity-related risks and opportunities
(e.g. poverty rates, employment rates, through descriptive indicators and financial
communities traditions in relations to nature, information which detail the financial
human-wellbeing benefits), as well as implications of such risks and opportunities.
stakeholders’ biodiversity-related challenges; Metrics reported should consider appropriate
timeframes and may be financial or
• Variability of risks and opportunities over short-,
non-financial. Indicators and metrics from
medium- and long-term time horizons. It is
other requirements, such as those considered
important for companies to explain when risks
in the assessment of impacts (REQ- 04) and
and opportunities could be expected to
related to biodiversity policies, management
materialise and how they may develop through
activities and targets, as well as priority
the considered timeframes, highlighting the main
species, ecosystems, geographic areas and
differences compared to baseline/reference
products/services (REQ-02) may be
conditions. The Biodiversity Application
repurposed to provide useful details.
Guidance does not define timeframes in order to
This is particularly the case where aggregated
encourage reporting organisations to consider
at the corporate level (e.g. percentage of
the most appropriate timeframes for their
suppliers and operational sites covered
specific needs (as the timing of biodiversity-
by a sustainability certification standard
related impacts on organisations varies). It is
or formalised sustainable management
good practice to consider the timing of natural
programme) and/or disaggregated into
processes the organisation depends or impacts
regions and/or business units (e.g. biodiversity
on in a given geographic area (e.g. seasonality,
footprint assessment metric disaggregated
breeding season of key species, migration
into regions).
season etc.) in combination with projections of
different future climatic but also socio-economic
Disclosing material biodiversity-related
scenarios to convey uncertainty and possible
financial information provides a useful
ranges of future impacts on biodiversity.149
illustration of the role of biodiversity
Considering risks and opportunities resulting
in relation to the business model and strategy,
from long-term biodiversity changes is crucial
and for financial planning purposes.
as some may take years to manifest (e.g. the
For example, useful indicators related to risks
outcomes of restoration of ecosystems such as
and opportunities include:
rainforests); and
• Operational expenses, cost savings the UNESCO Man and Biosphere Reserves;
and revenue associated with biodiversity or Key Biodiversity Areas); and
management and targets (e.g. remediation costs
• Total number of IUCN Red List species and national
or provisions in the case of accidents like polluting
conservation list species with habitats located in areas
spills, costs to obtain regulatory permits or
impacted by business operations by level of
licences, costs of staff training) and the
extinction risk (i.e. critically endangered, endangered,
implementation of the mitigation hierarchy (e.g.
vulnerable, near threatened, or least concern).
costs saved by measures taken to avoid
biodiversity impacts and revenue from The quantification of dependencies on biodiversity,
biodiversity-efficient products and services, capital often related to the final ecosystem services
and operation expenditures of offset provided/underpinned by biodiversity, is
requirements), possibly broken down per particularly useful for demonstrating the magnitude
biodiversity unit (e.g. Euro or US $/hectare (ha) of of biodiversity risks and possible implications to its
ecosystem type or taxon); financial position and performance. However, this is
• Expenses related to legal proceedings linked to a developing area with limited methodologies
non-compliance with environmental law currently available. The use of valuation
influencing biodiversity or biodiversity incidents methodologies can support this process
(e.g. fines in relation to water and soil (see REQ-04 for additional details).
contamination and/or air emissions, or court-
ordered remediation costs); and A possible approach to disclose financial information
linked to dependencies is to connect the dependent
• Transactions contingent to biodiversity-related final ecosystem services provided (which are
rights of access or use. For example, a fishing underpinned by biodiversity) to the related financial
corporation could disclose the financial value of its accounts, such as assets (e.g. fish stocks), revenues
fishing rights and the associated changes in the (e.g. sales of wild fish) and expenses. Example
state of fish stocks linked to overfishing; a forestry indicators include the income generated from sale of
company could disclose the financial value of its nature-dependent resources (e.g. fisheries or crops),
logging concession rights and the associated income generated from nature-based tourism, or
changes in the state of harvested forests; and an eco-efficiency ratings, such as tons of wild fish per
agri-business could disclose the financial value of total revenue/sales. Non-financial metrics that
its key commodities and associated changes in the measure the organisation dependencies on
state of natural capital (e.g. soils, water resources, biodiversity are also particularly useful to investors. For
as well as access-and-benefit sharing example, metrics on (1) natural resources used as
arrangements regarding genetic resources for inputs to operations/production processes, such as a
various industries such as chemistry, certain amount of water available to withdrawals,
pharmaceuticals etc.). certain agricultural area and related fertile soil, or on (2)
outputs from production, such as the amount of crops
Additionally, where organisations have trade-offs guaranteed by pollination and biological pest control.
around “natural” biodiversity in addressing
biodiversity risks (e.g. replacing natural systems with
crop plantations), valuations of the externalities 3. Connecting information
generated (benefits and costs) can be helpful. The
report user should be offered the assumptions and While the CDSB Framework does not set out
essential figures (e.g. present value of asset or specific reporting requirements, Principle 3
revenue stream affected) as well as the uncertainties encourages organisations to explain whether and to
for the financial figures, especially if the size of the risk what extent biodiversity-related issues are
or opportunity varies largely over time. connected with other information and results in the
mainstream report, with REQ-03 explaining that
Non-financial metrics are useful to report where they links should be made to the reporting of processes
provide context around the risk magnitude in relation and systems for risks and opportunities. For
to business operations. Examples of non-financial example, report users should be able to understand
metrics that may be useful to disclose include: how biodiversity-related issues have been
incorporated into existing systems of risk
• Percentage of operational sites that are
identification and prioritisation and whether the
in or near protected areas, priority sites
systems have been adapted to accommodate the
for biodiversity conservation and/or key biodiversity
characteristics of biodiversity-related issues.
areas (e.g. UNESCO World Heritage natural and
Furthermore, the systems used to identify
cultural sites, the Ramsar Convention wetlands sites,
biodiversity-related risks and opportunities will
develop in coming years with greater In addition, the mainstream report should be
understanding of the link between biodiversity and designed in a manner that allows the reader to
environmental, regulatory, socio-economic and navigate from these risks and opportunities to the
technological pathways in the different areas. policies and strategies developed, and to risk
Setting out how the organisation is developing and management systems, including an explanation
adapting these systems (also by linking to REQ-01 of how the organisation considers short-,
and REQ-02) will demonstrate responsive and medium- and long-term issues in linkage with
effective management. disclosures under REQ-02.
Tools for assessing biodiversity-related risks

The use of existing tools for assessing the biodiversity-related status and risks in operations,
supply, and market, can inform and support organisation materiality assessment.
1. The Integrated Biodiversity Assessment Tool 3. The biodiversity module of ENCORE provides
(IBAT, see REQ-02 and REQ-04) can support insights on the portfolio exposure to species
the categorisation of locations based on risk of extinction and ecological integrity risks, and
biodiversity loss (and consequent financial related mitigation actions. These results can
risks): for a particular site, land management support the categorisation of locations based on
unit, or country/province, the STAR metric biodiversity-related risks, the alignment of
shows the potential for reducing extinction risk financial portfolios with global biodiversity
before investment activities start, or can targets, and assessment of financial risks.
measure the achieved impact of conservation
4. Trase Earth Tool maps financing and
interventions on extinction risk over time
ownership of trading companies at scale to
(ex-post measure).
assess the exposure of financial institutions to
2. The Agrobiodiversity Index measures deforestation risk.
biodiversity across nutrition, agriculture and
5. OHI+ uses the Ocean Health index to allow
genetic resources, identifying risks and
exploration of variables influencing ocean
opportunities as well as assisting with
health at small scales where management
management.
decisions can be made.
These tools represent useful ready-to-use resources, but companies should (1) understand
the assumptions and the methodology behind the selected tool(s), (2) combine different tools
when performing their risk assessment, and (3) integrate company-specific components and
information in the assessment (e.g. local regulations or risks).
Examples 55). In line with REQ-02, the company discloses its

resulting risk minimisation efforts (e.g.
1. Kering Universal Registration Document 2020
development of solutions for key raw materials;
lists biodiversity as one of the Group’s ‘social and
reworking recipes with customers; identification of
environmental responsibility risks’ (pg. 80 and
alternative suppliers and countries for raw material
pg. 462). For example, the loss of biodiversity
sourcing) (pg. 55).
caused by intensive livestock farming, threatens
the production of high-quality raw materials. 3. Cemex Annual Report 2020 provides an
The company recognises that more generally, example of financial opportunities linked to
the degradation and depletion of soil, as well as biodiversity; Quarry biodiversity conservation is
the destruction of biotopes, pose a significant one of the KPIs included in the company’s
risk to the maintenance of high-quality livestock recently issued sustainability-linked loan (October
and crop farming (pg. 480). 2021, 3.2$billion; the largest sustainability-linked
loan to-date in South America).
2. Symrise Group Management Report 2020
addresses biodiversity-related risks in relation to 4. The BHP Annual Report 2021 describes the
own operations and the value chain. It recognises biodiversity-related risks identified by the company.
that environmental issues such as biodiversity loss This includes failure to identify and manage climate
can negatively impact the productivity of the change risks to communities, biodiversity and
ecosystems managed by the company and its ecosystems, which in turn could result in land
suppliers, which threatens raw material availability access restrictions or litigation, or limit the
or could lead to increasing raw material prices (pg. company’s access to new opportunities (pg. 58).
Useful resources
1. UNEP-WCMC’s report Biodiversity measures 5. The report The pollination deficit - Towards
for business illustrates probable physical, supply chain resilience in the face of pollinator
transitional, and reputational biodiversity- decline supports the understanding of risks
related risks, and provides forecasts on related to loss of pollinators risk within private
expected national and regional regulations with sector (agricultural) supply chains. In particular,
biodiversity reporting obligations. the report provides examples of dependencies,
risks and potential responses, some real case
2. The report Handbook for Nature-related
studies, and a roadmap towards sustainable
Financial Risks details transmission channels
pollinator management.
that make nature loss a financial risk and
outlines a framework to identify nature-related 6. The report Indebted to nature – Exploring
financial risks. biodiversity risks for the Dutch financial sector
and the working paper A “Silent Spring” for the
3. The report Guidelines for Identifying Business
Financial System? Exploring Biodiversity-
Risks and Opportunities Arising from Ecosystem
Related Financial Risks in France explores the
Change by World Business Council for
biodiversity-related financial risks of the Dutch
Sustainable Development (WBCSD), the
and French financial system, respectively. It
Meridian Institute and World Resources Institute
covers physical (through dependencies on
(WRI), provides a structured methodology that
ecosystem services) and transition risks
helps organisations to develop strategies to
(through impacts on terrestrial and freshwater
manage business risks and opportunities arising
ecosystems).
from their company’s dependence and impact
on ecosystems (and related services). The report 7. The IFC’s Guidance Note 6: Biodiversity
also includes case studies. Conservation and Sustainable Management of
Living Natural Resources supports the risks and
4. The report The Climate-Nature Nexus:
impacts identification process. The
Implications for the Financial Sector takes a
requirements of this performance standard
practical look at where climate- and nature-related
support the assessment of projects that
risks and opportunities do and do not overlap (see
potentially impact on or are dependent on
Figure 1 on pg. 4), highlights the implications for
ecosystem services over which the organisation
investment potential of different sectors and
has direct management control or significant
solutions, and offers recommendations on how the
influence (also useful for REQ 02).
private financial sector can adapt its climate
approaches to address nature and be robust to 8. Swiss Re Institute’s Biodiversity and
nature-related risks (see Figure 2 on pg. 5, it Ecosystem Services Index analysis highlights
provides an overview of the current climate which economic sectors are most reliant on
frameworks — e.g. screening of physical risks, nature and the exposure each country has to
impact metrics — that can be adapted to capture biodiversity and ecosystems services decline.
nature risks and opportunities).
1. Indicators and metrics

REQ-04
Sources of environmental As explained in REQ-02, the significant
impact biodiversity impacts and dependencies,
which are connected to business risks and
Quantitative and qualitative results, together opportunities, should drive the formation of
with the methodologies used to prepare them, biodiversity-related policies, strategies and
shall be reported to reflect material sources of targets. REQ-04 of the CDSB Framework
environmental impact requires companies to disclose quantitative
and qualitative results to reflect significant
sources of impacts, including reporting key
Disclosure checklist indicators and metrics. When considering
Does the disclosure: biodiversity, this should be expanded to include
key indicators and metrics on:
Provide a selection of relevant biodiversity
impact indicators and metrics, considering • Significant sources of biodiversity impact
sources of material biodiversity impacts, (i.e. impacts drivers);
changes to the state of biodiversity and • Significant changes to the state of biodiversity
valuation of impacts? (i.e. biodiversity impacts), including
Provide relevant baselines/reference states ecosystems, species and related ecosystem
for metrics, and both absolute and services (where relevant); and
normalised metrics where possible? • The valuation of significant impacts to the
Provide explanations and contextualisation business (i.e. business impacts).
of the metrics including the methodologies
This aligns with the pathway approach
used, levels of uncertainty, and appropriate
(see Box 3) and can also be used within the
narrative to assist understanding of results?
context of the DPSIR framework (see Appendix
Categorise and disaggregate metrics where 10). Figure 8 includes some example metrics
possible to support understanding and following the pathway approach (note that
comparability? the actual metrics used will be specific to the
organisation).
Typologies of biodiversity Examples

metrics and indicators
Indicator Metric
Pesticides released in
Amount (tons) of
Impact drivers proximity (<20 km) of
pesticides
protected areas
Ecological integrity within

Habitat hectares
priority geographical areas
ecosystems
Changes to
the state of Population levels of IUCN Number of IUCN Red
biodiversity Red List species in priority List species identified
species
geographical areas through EIA
Amount of crops from Amount of crops (tons)

final ecosystem priority areas located within (guaranteed by
services or close to (<20 km) areas pollination and soil
of high biodiversity value fertility)
Income from crops from Income from crops (£)

priority areas located within (guaranteed by
Valuation of impacts or close to (<20 km) areas pollination and soil
of high biodiversity value fertility)
Figure 8. Examples of biodiversity metrics and indicators following a pathway approach. This table includes examples only and is not an exhaustive list.
As noted in REQ-02, a pre-requisite to affecting biodiversity at the operations or supplier

biodiversity reporting is the completion locations would complement the information and
of an impact and dependency assessment support the selection.
(see Assessing biodiversity dependencies
and impacts in REQ-02), the outcomes of Where organisations have completed a
which may be able to be repurposed for biodiversity footprint assessment (see Box 4),
inclusion in the mainstream report to satisfy it is helpful to provide quantitative data on
this requirement. In addition, it may be that indicators related to this analysis, such as the net
companies are disclosing results related to impact of the organisation. From an integrated
significant biodiversity impacts (and sources of management and reporting perspective,
impacts) in their sustainability reports, CDP organisations should also consider reporting
responses or index questionnaires. Such productivity/efficiency ratios (e.g. business output
disclosures can be repurposed to be included per unit of biodiversity impact). Methodologies
in the mainstream report (see Appendix 3). for biodiversity efficiency ratios are still evolving.
The selection of indicators/metricsxlii included in For most indicators, an explicit baseline year
the disclosure should be aligned with the targets and/or reference state is required to enable
set by the organisation. Indicators selected report users to draw decision-useful conclusions
should be representative of the specific (see REQ-05).
organisation, such as those used in internal
biodiversity management and performance The following sections outline example biodiversity
monitoring, or illustrate biodiversity-related metrics following the pathway approach. Metrics
financial impacts to the organisation. reported should correspond to the selected
Organisations should aim to connect the indicators that organisations have chosen to
indicators with those disclosed under other measure based on their specific biodiversity
requirements (e.g. performance against targets, strategies, impacts and dependencies, and targets.
management response indicators) in order to
have a linked suite of indicators connected to the 1.1 Metrics: Sources of impacts (impact drivers)
significant impacts and dependencies identified. Table 4 contains examples of metrics that outline
sources of biodiversity impact (i.e. impact
Consideration should be given as to which drivers). The exact metrics reported will depend
metrics are most suitable to measure progress on the organisation’s impact assessment,
against indicators (see REQ-05). Ideal metrics materiality assessment and sectoral
should be consistent with industry guidelines, specifications. Organisations may find it helpful
recognised by existing reporting provisions to group impacts under the impact driver
and international initiatives, and calculated in categories outlined by IPBES,150 the SBTN151
accordance with recognised approaches, to (see Box 2), the Natural Capital Protocol152 or the
enable comparability and benchmarking. Transparent project.153 It may be helpful to
Quantitative metrics should be supplemented outline whether impact drivers impact
by qualitative details and information where biodiversity directly (i.e. immediately and
appropriate. occurring directly in response to actions from
the organisation, such as land clearing) or
Metrics can be applied at the product/service, indirectly (i.e. as a consequence of another
project or company level. Whilst the company factor, for example, GHG emissions causing
level is most likely to be appropriate for disclosure climate change which consequently causes
in the mainstream report, highlighting product/ negative changes to the state of biodiversity, or
service or project level metrics may also be illegal logging resulting from the construction of
appropriate where significant risks and impacts a road by the organisation near a forest).
vary significantly between products/services,
projects and geographic locations. Appropriate
metrics depend on both sector and (location of)
site. Therefore, while sectoral guidelines can
provide support, assessment of the main impacts
xlii Metrics are outcomes of a measurement process. A metric (or

a group of metrics) becomes an indicator when used to support
the decision-making process of the organisation and to assess its
performance against its strategy, policy, and target.
Table 4. Examples of metrics outlining sources of biodiversity impacts aligned with the impact pathway approach (Adapted from: Natural Capital
Protocol biodiversity guidance; IUCN Guidelines for planning and monitoring corporate biodiversity performance).
Impact Driver Examples metrics

Land-, water- and • Area (Ha) of forest, grassland or wetland converted due to urbanisation
sea-use change xliii
• Area (Ha) of degraded land converted to agricultural land
• Area (Ha) of land converted to monoculture
• Area (Ha) of mangrove protected and/or restored
• Area (Ha) of marine area for aquaculture (e.g. to grow mussels)
Resource • Quantity (tons) of natural resources (e.g. leather, soy, palm oil) sourced per year
exploitation
• Amount (tons) of fish caught
• Number of wild species exploited for commercial purposes
• Volume (tons) of timber and non-timber forest products harvested
• Total volumes of water withdrawals, consumption and discharge
• Percentage of sustainable fish stocks
Light and noise • Decibels of noise above normal level

pollution
Waste • Amount (tons) of hazardous waste discharged

• Amount (tons) of non-hazardous waste incinerated
Soil pollution • Amount (kg) of pesticide discharged to soil
• Amount (kg) of fertilisers (and main components, e.g. nitrogen and phosphorous)
applied to soil
Water pollution • Concentrations of key pollutants in the wastewater
• Amount of arsenic released to water
• Amount of deleterious chemicals released to water
• Refer to the Water Application Guidance
Air Emissions • Volume of CO2, sulphur dioxide (SO2), nitrogen oxide (NOx)
and methane (CH4) emissions.
• Refer to the Climate Application Guidance
1.2 Metrics: Changes to the state of stages of biodiversity reporting, a phased

biodiversity (biodiversity impact metrics) approach to metric disclosure is encouraged.
Biodiversity impact metrics should consider
changes to ecosystems and ideally also species To enrich and complement the disclosure, metrics
relative to a defined baseline/reference state. should be accompanied (where possible) by a
It may also be helpful to provide metrics on narrative or categorisation detailing (1) whether
changes to the flows of final ecosystem services impacts are temporary (short-term or long-term),
that can be attributed to changes to biodiversity.xliv recurrent (e.g. seasonal) or permanent, (2) the
location (also in relation to priority geographic
As single metrics do not cover all elements of areas), (3) the stage of the value chain the impact
biodiversity, disclosing a combination of relevant relates to and (4) whether the metric relates to an
metrics that provide different perspectives (e.g. impact in a previous period that still has ongoing
species abundance, species richness, habitat implications for biodiversity. When assessing
availability, ecosystem integrity, final ecosystem impacts, organisations should consider external
services) is encouraged, including clear factors that could result in major changes in the
explanations of what is being measured (see state of biodiversity, as these may affect the
Rationale of selection and methodological significance of business impacts (as well as
details). Where organisations are still in the early dependencies).xlv
xliii The location of land should be provided as accompanying information. xlv Refer to Natural Capital Protocol for further details. Capitals Coalition
xliv It is recognised that the metrics suggested here are limited in assessing (2016) Natural Capital Protocol. Available from: https://naturalcapitalcoalition.
changes to marine and freshwater biodiversity. org/natural-capital-protocol/
1.2.1 Ecosystem metrics spatial mapping), both relative to a defined

Within this context, ecosystem metrics describe baseline/reference state.
the conditions and related changes of an area of
interest for the reporting organisation (e.g. due Examples of useful metrics are:
to its impacts or dependencies). Key ecosystem
• Risk of species extinction (e.g. through
metrics are based on the extent of the
the STAR metric — see Table 5);
ecosystem (assessed and monitored via satellite
imagery or on-site) and the condition/integrity • Areas (ha) of critical habitat for species
of that ecosystem (e.g. condition rating per area, in priority geographical areas;
mean species abundance per area or potentially
• Biodiversity impact metric, which combines
disappeared fraction of species per area per
data such as mean species abundance and
year). The most generally accepted condition/
rarity-weighted species data (see Table 5);
integrity-rating methods applicable to the
impact area should be used and the same • Number of IUCN Red List species
method should be used for ecologically and national conservation list species
equivalent ecosystems.154 within priority geographic areas;
• Range of species identified through
Examples of useful ecosystem metrics are: eDNA analysis;
• Quality scoring or ratings of ecosystems • Number of invasive alien species identified
located in priority geographic areas, which on the organisation’s sites/impact areas;
express the related condition/integrity and/or
intactness of ecosystems, for example, quality • Target species population sizes/abundance
hectares measured through fieldwork,xlvi compared to actual population sizes; and
habitat hectares or hectares equivalent or • Measurements of species populations and habitat
GLOBIO’s Mean Species Abundance diversity from on-the-ground studies (see Box 6).
(see Table 5);
• Potentially disappeared or affected fraction
Box 6: Direct measurement techniques
of species (see Table 5);
The most used techniques for measuring/
• Number or percentage of sites in which the
estimating species population numbers are
species richness is progressing/stable/regressing;
direct measurement techniques, such as
• Ecosystem/habitat cover change, e.g. forest quadrats, line transects and nest searches, as
area as a percentage of total land area or tree well as the use of audio/photo/video tracking.155
cover loss (ha); Direct observation of all individuals is generally
too time consuming, expensive, or not feasible,
• Range of species identified through
therefore biodiversity specialists and scientists
environmental DNA (eDNA) analysis; and
typically estimate the population size within a
• Ecosystem/Habitat fragmentation change (ha). study area or region based on samples. Where
population measurement is not possible,
Metrics on habitat are a hybrid category alternatives include the use of credible taxa
between ecosystem and species metrics, databases applicable to ecosystem types within
because they refer to an area that is suitable for organisational and value chain boundaries and
a species or a group of species, and, depending combining these with habitat extent as a
on the focus, they can be classified as an proxy.156 eDNA is increasingly being used in
ecosystem or a species metric. terrestrial and aquatic systems to monitor
species diversity and can be a cost and time
1.2.2 Species metrics effective technique to understand site level
Where information about species is deemed biodiversity which can be aggregated at a
material, metrics should also be provided for corporate level.157, 158, xlvii
species that assess the population status (e.g.
species abundance) and/or related proxies, such A suitable baseline/reference state for species
as available habitat size (often requiring the use of involves determining the target population size of
xlvi For example, Victorian Government Department of Sustainability and xlvii See NatureMetrics – DNA-based monitoring for
Environment (2004) Vegetation Quality Assessment Manual–Guidelines for examples of environmental DNA being used in practice
applying the habitat hectares scoring method. Version 1.3.. Available from:
https://www.environment.vic.gov.au/__data/assets/pdf_file/0016/91150/
Vegetation-Quality-Assessment-Manual-Version-1.3.pdf
the species, and/or establishing the target habitat actual population sizes, management responses
size for species as a proxy (i.e. performing an to address this should be outlined.
ecological assessment). The organisation should
ensure the most suitable population target is Table 5 contains a summary of commonly used
selected.xlviii The difference between actual and metrics, split into metrics related to ecosystems
target population size is useful for demonstrating and/or species, and Appendix 8 contains a
to report users whether management responses summary of tools/frameworks that may be
are effective (linked to REQ-02 and REQ-05). helpful for the assessment and quantification of
Where target population sizes greatly differ to biodiversity impacts.
Table 5. Examples of biodiversity impact metrics (References: Natural Capital Protocol biodiversity guidance; IUCN Guidelines for planning
and monitoring corporate biodiversity performance).
Metric Description Metric classification

Species and habitat The use of on-the-ground monitoring/measurement of Species richness, species
diversity (richness and species and habitats (see Box 6) to determine species abundance and/or ecosystem
abundance) richness, abundance and trends over time. condition/integrity
Mean species abundance A metric of biodiversity intactness that considers mean Ecosystem condition/
abundance of species relative to abundance in undisturbed integrity rating
ecosystems (i.e. reference site). A value between 0 and 1 is
given, with 1 indicating an ecosystem similar to is natural
state and 0 indicating complete destruction. Mean species
abundances is often estimated using the GLOBIO model
(see Appendix 8).
The Habitat Hectare A site-based vegetation assessment method that Ecosystem condition/
measures the current condition of native vegetation integrity
against a benchmark for the same vegetation type or
Ecological Vegetation Class. It is a product of the
ecosystem extent and the condition rating.159
The Healthy Based on land-use only, this metric combines area affected Ecosystem condition/
Ecosystem Metric with the impact on quantity and quality of biodiversity, soil integrity
and water to provide the total impact on ecosystem.
Surface area equivalents Surface area equivalents express the condition/integrity- Ecosystem condition/
(such as acre equivalents, adjusted surface areas of impacted ecosystems. They are integrity
hectare equivalents, calculated by multiplying the surface area of the target
square kilometre ecosystem(s) by the ratio of its current condition/integrity
score over the maximum condition/integrity score. 160, 161
equivalents or square
mile equivalents)
Potentially disappeared Measures the decline in species richness in an area over a Ecosystem condition/
fraction of species time period (with a focus on plants). Percentage integrity
disappeared fraction of species is often estimated using
the ReCiPe model (see Appendix 8).
Potentially affected It measures the fraction of species affected in an area over Ecosystem condition/
fraction of species a time period (before they have disappeared), focusing on integrity
the species richness of plants.
Risk of extinction Measure of potential reduction of species extinction risk Species abundance
(e.g. STAR metric) resulting from removal of threats in a given area. STAR is
based on IUCN Red List data and contained within IBAT
(see Appendix 8).
Biodiversity Developed by the Cambridge Institute for Sustainability Ecosystem condition/

impact metric Leadership, the Biodiversity (CISL) impact metric integrity
estimates the proportion of biodiversity loss for different
land-use types and intensities using data such as global
mean species abundance combined with rarity-weighted
species richness data from the IUCN Red List.
xlviii Refer to Biological Diversity protocol for further detail

on how to determine this. See: Endangered Wildlife Trust (2020).
The Biological Diversity Protocol. Available from: https://www.nbbnbdp.org/
uploads/1/3/1/4/131498886/biological_diversity_protocol__bd_protocol_.pdf
Some metrics may be more suitable than others (2) delivery of final ecosystem services utilised
depending on the specific business activities, by the business and (3) contributions to wellbeing
policies and targets. Metrics may have of both internal and external stakeholders.
limitations, for example, mean species For example:l
abundance and potentially disappeared fraction
• Supply: Amount of biomass available for
of species do not capture changes to all the
fodder (tons), amount of carbon absorbed by
multi-faceted aspects of biodiversity (such as
vegetation (tons), pollinator abundance and
distinguishing different ecosystem types at the
pollination rates, amount of area that is
local/regional level), therefore their use may be
suitable for nature-based tourism (ha).
enhanced by combining them with additional
metrics and information (e.g. as seen within the • Delivery: Total production of all commercial
Biodiversity impact metric). Any limitations with crops (tons), caloric content of fish landings
metrics should be outlined and it may be (kcal), volume of timber harvested (tons),
helpful to include a clear rationale for chosen marginal contribution of soils to crop production,
metrics. The most relevant biodiversity metrics area of avoided flood damage due to regulation
and indicators vary by sector, ecosystem type by vegetation and soils (ha), nature-based
and country, therefore it is recommended to tourism visitation rates (number of visits).
look at sector/ecosystem/country specific
• Contributions to wellbeing: number of jobs
guidance where available.xlix
contributed by aquaculture, basic needs
satisfied via ecosystem service (e.g. number
1.2.3 Final ecosystem services metrics
of people with access to adequate water),
Measuring (and valuing) biodiversity can be
number of people protected from flooding
complex and challenging. Whilst our knowledge
and erosion due to coastal protection,
is constantly developing and improving, we still
marginal contribution of pest control to food
do not fully understand all the ways in which
or biofuel production, marginal contributions
organisations interact with (i.e. impact and
to income or wellbeing of visitors.
depend upon) biodiversity. Therefore, when
assessing and reporting metrics on impacts/ Depending on the definition and classification
dependencies on biodiversity, including of ecosystem services selected by the
information on the changes to the final organisation (see Box 1), it may also be helpful
ecosystem services (underpinned by biodiversity) to categorise indicators into types of services
is often a useful way to complement data directly (e.g. provisioning, regulating and cultural).
related to biodiversity itself. It can also be used to
supplement gaps in biodiversity data, where it is 1.3 Metrics: Valuation of impacts
impractical or impossible to provide that Where information about the valuation of impacts
information directly. Metrics related to final is material, reporting metrics that value the impact
ecosystem services should be used to of changes in biodiversity to the organisation (i.e.
complement biodiversity impact metrics and the related costs and benefits) can be helpful for
build a fuller picture, as opposed to an alternative. report users, demonstrating the relative worth or
importance of biodiversity impacts.
Where business activities result in significant
impacts on final ecosystem services that are Valuation metrics may be quantitative,
underpinned by biodiversity, it may be helpful to qualitative, monetary or a combination163
provide metrics that demonstrate these impacts. (see Box 7 for additional details, including why
This is a developing and challenging area162 often using a combination of valuation metrics is
requiring complex quantitative models. Useful useful). Valuation metrics should reflect the
resources identified for REQ-04 and some of the significant costs and benefits that are specific to
tools in Appendix 8 can support the assessment the organisation. As well as demonstrating the
of final ecosystem services. A possible way to significance of biodiversity impacts to the report
report metrics related to final ecosystem services user, valuation can also be useful in
is to split them into categories of (1) supply of final communicating exposure to risks or
ecosystem services available to the business, opportunities (see REQ-03).
xlix For example, WET-Health contains wetlands specific methods and l For further detail see: Brown, C., Reyers, B., Ingwall-King, L., Mapendembe,
Australia’s Integrated Ecosystem Condition Assessment Framework A., Nel, J., O’Farrell, P., Dixon, M. & Bowles-Newark, N. J. (2014). Measuring
provides country specific guidance. ecosystem services: Guidance on developing ecosystem service indicators.
UNEP-WCMC, Cambridge, UK. Available from: https://www.unep-wcmc.
org/system/dataset_file_fields/files/000/000/303/original/1850_ESI_
Guidance_A4_WEB.pdf?1424707843
Valuing the financial consequences for the should clearly specify the value perspective
business associated with biodiversity impacts they are reporting (i.e. societal value or
could include considering abatement costs, economic value), and limitations, uncertainties
costs of delay/disruption and costs associated or estimates should be disclosed to improve
with complying with legal requirements report user understandability.
(see REQ-03 for further examples).
The assessment and reporting of valuation
The context of the valuation can be business metrics related to biodiversity impacts should
(costs/benefits to the organisation) or societal include consideration of changes to the final
(costs/benefits to society). As noted in the ecosystem services underpinned by biodiversity
Biodiversity and Business section, costs and resulting from business activities. Example
benefits to wider society resulting from an (monetary) metrics include market value of
organisation’s impacts on biodiversity can affect livestock products, market value of carbon
its future financial position and financial uptake, marginal contribution of irrigation to
performance (e.g. reputational damage, fines), crop market value, avoided water treatment
therefore it is encouraged to adopt a societal costs, economic revenues derived from visits
perspective as well as an economic perspective to aesthetic areas, and marginal contribution
throughout the assessment. Organisations to real estate prices by nature-based tourism.164
Box 7: Biodiversity valuation types • Monetary valuation which uses market (i.e.
observed prices) and non-market (e.g.
Within the Biodiversity Application Guidance,
revealed or stated preference) approaches to
valuation is defined as the process of estimating
infer the monetary value of a biodiversity
the relative importance, worth, or usefulness of
impact/dependency. Monetary values
biodiversity to people, in a particular context (e.g.
include both financial values and externalities
for an organisation).165 This involves determining
that are not reflected in the final cost or
the consequences of biodiversity impacts and
benefit.
dependencies, and their related costs and
benefits, considering that biodiversity may have Monetary valuations can also be used to
different values to different groups of people. (1) provide a common measurement unit to
compare with financial values, such as
Placing values on biodiversity is challenging and
business costs or revenues, (2) benchmark
it is more common to apply valuation techniques
performance across organisations, assuming
to the final ecosystem services that flow from
the same economic/monetary conversion
biodiversity. Types of valuation include:166
figures are used, and (3) assess and
• Qualitative valuation which is descriptive and communicate the significance and distribution
often includes subjective perceptions, of costs and benefits amongst stakeholders
ranking impacts/dependencies into high, and net impacts to society.
medium or low.
Whilst useful for decision-making, some
• Quantitative valuation which assesses the aspects of biodiversity’s value cannot be
magnitude of biodiversity impacts or captured using monetary valuations, even if
dependencies in numerical, non-monetary they potentially represent a cost or benefit,
terms (e.g. areas, mass or value). It differs therefore monetary valuations are likely to be
from quantitative measurement (i.e. metrics) partial and underestimated.167 For this reason,
as it relates to the importance, worth, or monetary valuations should be treated as a
usefulness of the impact and/or dependency, minimum value and should be supported by
often considering geographic context and qualitative/quantitative approaches in order to
impacted stakeholders. provide a more complete picture.
2. Contextualising biodiversity-related metrics that may directly or indirectly affect the

significance of biodiversity impacts, such as
Biodiversity-related metrics should describe the climate change or immigration.
organisation’s relationship with the biodiversity-
related geographic contexts in which it operates,
including both environmental and socio- 3. Decision-useful information
economic conditions, as well being connected to
the information in the rest of the mainstream When reporting results on significant sources
report and other CDSB requirements, including of biodiversity impacts, organisations should
financial performance (e.g. financial consider what the characteristics of decision-
opportunities from improved biodiversity/ useful information are — consistency,
reduced biodiversity negative impacts). comparability, clarity and verifiability — as set
Qualitative details and indicators on the out in Principles 4, 5 and 6 of the CDSB
following, linked to Key Characteristics, can Framework. In satisfying these key
provide useful contextualisation: characteristics, the applicability of the metrics
and indicators chosen to report on significant
• Spatial: Details on how metrics relate to priority
sources of biodiversity impacts, such as sector
geographical areas support the understanding
or industry and/or national or regional standards
of the diversification and prioritisation of
for reporting, should be considered. In addition,
management actions. It is useful to state
where appropriate, results should be reported in
whether the impact accrues globally (e.g.
absolute and intensity terms, with organisation
carbon emissions), regionally or locally (e.g.
revenue and/or appropriate non-financial output
impacting a localised population of species), as
measures (e.g. a standard unit of product or
well as provide details on how it is being
service) being used to normalise the results.
managed (connected to REQ-02).
This supports comparability and benchmarking
• Temporal: Details around the timeframes of of companies and allows investors to understand
impacts, including any time-lags, cumulative the biodiversity implications aligned to business
impacts, potential thresholds and tipping strategy.
points, where minor changes in biodiversity
can cause larger changes to the ways To this aim, disclosing clear definitions of
ecosystems function. biodiversity impact drivers, impacts and
biodiversity terms (such as species abundance or
• Regulatory or licence requirements: Details
ecosystem quality) is fundamental. Furthermore,
on how the metrics provided align with legal
companies should ensure that they do not
requirements.
conflate their results for negative significant
• Societal: Where information about risks related biodiversity impacts with possible mitigation
to social impacts connected to changes in activities, such as restoring ecosystems and other
biodiversity is identified as material (e.g. costs biodiversity offsetting measures. The latter
resulting from reputational damage), it may be should be reported where relevant and material
appropriate to also include social indicators but accompanied with clear definitions of used
and/or metrics. This could include (1) indicators metrics and accounting methods in a manner
that highlight the contribution of the that is distinct from negative biodiversity impacts,
organisation to biodiversity-related societal otherwise it may mislead the report user.
conditions and (2) indicators or details linking Disclosure against the mitigation hierarchy can be
biodiversity impacts to reductions/increases in helpful for guiding this process (see REQ-02).
final ecosystem services, noting that there may
be a time-lag between loss of biodiversity and
loss of services. For example, health impact 4. Disaggregation and categorisation
metrics, societal costs resulting from
eutrophication or loss of property values related To benefit comparability and understandability,
to business impacts on biodiversity, number of it can be helpful to disaggregate and/or
people with access to parks/open space/ categorise results (where appropriate) to better
recreation areas or number of people in air appreciate impact and report this alongside total
quality or water quality non-attainment areas. results. Results can be disaggregated into
• External factors: Details on external factors different impact drivers and impact driver
categories, as well as direct and indirect impacts, the same methodologies should be used for
and phases of the value chain. Other useful ecologically equivalent ecosystem types and
disaggregation options include ecosystem types, methods should be consistent over time to allow
species, species broken down into levels of comparability. When using primary data, it may
extinction riskli and geographies (regional, be helpful to outline the measures taken to
national or categorised into levels of biodiversity ensure data collected has appropriate
risk). Disaggregation categories should be clearly measurement intervals that match the ecological
defined, and care should be taken not to confuse timescale (e.g. seasonal variations) and spatial
context specific elements when aggregating/ scale of the biodiversity impact.lii Useful details
disaggregating biodiversity metrics. can cover: (1) tools used, (2) data used (primary
and/or secondary, geographical and/or
ecosystem specific), (3) use of proxies,
5. Rationale of selection and generalised relationships, and/or models,
methodological details (4) assumptions made, uncertainties
(e.g. sensitivity analysis) and limitations of the
It is useful to offer brief explanations to the methods used, and (5) unit of sampling used.
appropriateness of reporting choices for metrics.
Given that it is common for selective reporting Finally, where there are uncertainties and gaps
on corporate impact, such explanations offer in the biodiversity data, limitations with
further confidence in the data disclosed. methodologies/data or where methods and
assumptions have been amended or applied,
There are many methods used for biodiversity highlighting and offering an explanation to
measurement. For example, methods for report users for these differences can alleviate
measuring changes in the state of biodiversity confusions or misconceptions. For example:
include direct measurement methods and
• Most measurement approaches are tailored to
ecological survey methods (see Box 6),
terrestrial use and may need to be adapted
estimations, which may be high-level, and
for marine or freshwater use, therefore it is
ecological or species modelling methods which
useful to highlight any significant assumptions
use equations and input data to model impacts,
made in this context.
such as population dynamics modelling.
Clearly stating the methodologies used will • A possible limitation may be that
add to the validity and usefulness of the results. measurement approaches are largely focused
The description should provide measurement on changes in the extent and condition of
details for the metrics reported and tools and ecosystems and target/actual population/
databases used should be referenced where habitat sizes of significant taxa. Other multi-
possible. It is also helpful to outline the faceted biodiversity areas, such as genetic
organisational level the metric applies to (i.e. resources and associated ecosystem services,
global, country, region, site or project-level). may not be fully considered by metrics.
• The use of model-based metrics, and/or
The method selected should be appropriate for
metrics based on global datasets, then
its purpose considering the level of reporting
applied locally may create limitations around
detail required, management information needs,
accuracy.
geographic scope, value chain boundary and
available time and resources. Where possible, • Where data access is problematic in the value
the most generally accepted or recognised chain there may be issues around data
method within a jurisdiction should be used, availability, reliability or accuracy.
li For example, Total number of IUCN Red List species and national lii Yearly monitoring may be appropriate for measures aimed at stabilising
conservation list species with habitats in areas affected by the operations or improving species’ population numbers, whereas monthly monitoring
of the organisation, by level of extinction risk: i. Critically endangered ii. may be necessary for actions such as water quality.
Endangered iii. Vulnerable iv. Near threatened v. Least concern
Useful resources
1. The EU Business @ Biodiversity Platform have 5. The World Wide Fund for Nature (WWF)
published a series of three reports (2018, 2019, report Assessing portfolio impacts - Tools to
2021) on the Assessment of biodiversity measure biodiversity and SDG footprints of
measurement approaches for businesses and financial portfolios provides tools and
financial institutions which may be helpful for methodologies to help financial institutions
selecting a measurement approach, as well as quantify portfolio environmental impacts, with
considering data and metrics, and disclosure. a focus on biodiversity, and identify the most
Annexes in the reports include lists and short significant impact areas based on the nature,
descriptions of metrics such as mean species content, and location of their portfolios. The
abundance and potentially disappeared fraction report also provides examples of real case
of species (also indicating the initiatives using studies.
the metrics), tools and frameworks such as IBAT,
6. The SEEA Ecosystem Accounting consists
Biodiversity Footprint Financial Institutions
of an integrated ecosystem accounting system
(BFFI), and Biodiversity Footprint Calculator,
including physical terms (for the account of
and measurement approaches such as the
ecosystem extent, condition and ecosystem
Global Biodiversity Score and the Biodiversity
services flows) and monetary terms (for the
Impact Metric (see Appendix 8 and Appendix 9).
account of ecosystem services flows and
Additionally, the 2021 report introduces the
ecosystem assets). The document describes
Biodiversity Measurement Navigation Wheel
and provides suggestions and resources
— a decision framework to help businesses
for each type of account and illustrates how
select the most suitable measurement
the different accounts are interconnected
approaches for a specific business context.
and together provide a comprehensive
2. UNEP-WCMC’s report Biodiversity measures and coherent view of ecosystems.
for business discusses the rationale and current
7. The Life Cycle Initiatives of the UNEP
business practice on biodiversity measurement,
has developed regionalised factors to conduct
and the related reporting and disclosures. It
an assessment of impacts related to land-use
provides sector-specific examples of metrics
impacts on biodiversity.
and approaches.
8. eDNA is increasingly used in biodiversity-
3. Resources from the Capitals Coalition guide
related assessments in combination with
organisations in the understanding and selection
traditional survey methods and is particularly
of measurements and valuation approaches and
useful for aquatic species. The Biodiversity
tools. The Natural Capital Protocol provides
Consultancy provides a briefing note illustrating
examples of impact drivers and dependencies
the current state of eDNA approaches, therefore
(also useful for REQ-02), related indicators and
allowing practitioners (including organisations)
measurement techniques (e.g. Table 7.1 on
to identify where the application of this
valuations techniques); the related Biodiversity
technology can benefit a project and where
Guidance includes examples of biodiversity-
it will complement or enhance traditional survey
specific resources relating to measurement and
methods. Nature Metrics provides easily
valuation (Table MV.2, Figure 6.1, and Table 6.4);
accessible tools for DNA-based biodiversity
the Natural Capital Toolkit is an interactive
monitoring, which analyse biological data
database that helps businesses find the right tool
to provide insights about soil health and
to measure and value natural capital; and the
ecosystem quality.
Biodiversity Guidance Navigation Tool guides
users through a biodiversity-inclusive natural 9. The IUCN’s Tools for measuring modelling and
capital assessment, following the steps in the valuing ecosystem services provides guidance for
Natural Capital Protocol and suggesting specific practitioners on existing tools that can be applied
tools, resources and methodologies based on the to measure or model ecosystem services provided
scope/area of the value chain a company sits. by important sites for biodiversity and nature
conservation (e.g. Key Biodiversity Areas, natural
4. Biodiversity and Ecosystem Services in
World Heritage sites, and protected areas).
Impact Assessment by the International
Association for Impact Assessment, provides 10. Measuring ecosystem services: Guidance on
best practice principles that are intended to developing ecosystem service indicators by
improve impact assessment outcomes. UNEP-WCMC, besides supporting the selection
of indicators (REQ-05), provides examples of Valuation

ecosystem services indicators from CICES
In addition to SEEA and the monetary valuation
(Table 2, pg. 28), of decision-support and
techniques included in the summary provided
modelling tools (Box 6, pg. 34), data sources
in the Natural Capital Protocol (see Table 7.1,
(Table 3 and 4, pg. 35), (Box 12), and existing
pg. 84), the list below includes further
ecosystem services research and monitoring
resources on valuation:
initiatives (Box 12, pg. 52).
16. The Environmental Valuation Reference
11. The BFFI is a methodology (and related tool)
Inventory is a database of empirical studies on
based on life cycle assessment to measure the
the economic value of environmental assets.
impact of financial institutions on biodiversity. It
It provides summaries including details on the
consists of four steps, from the identification of
specific environmental assets being valued, the
economic activities included in the portfolio to the
methodological approaches and the estimated
assessment of impacts on biodiversity (expressed
monetary values.
in Potentially Disappeared Fraction of species).
17. The Ecosystem Services Valuation Database
12. Tools for the assessment of ecosystem
contributes to the insights on monetary
services, such as InVEST and ARIES, provide
valuation of ecosystem and biodiversity.
models to map and value ecosystem services,
It focuses on compensating the continued
assisting with balancing environmental and
intergenerational loss due to the damage in
economic goals, by using production functions
ecosystem and biodiversity.
to define how changes in an ecosystem’s
structure and function are likely to affect flows 18. The IPBES guidance on Diverse Value and
and values of ecosystem services. Valuation proposes standard procedures to
diversity valuation in order to assure
comparability, accountability and transparency.
Metrics and indicators from other reporting
It provides (1) a review of types of valuation
standards/frameworks
methodologies, (2) a preliminary guide on
13. Many of the world’s largest companies diverse conceptualisation of multiple values of
already disclose information and data to CDP nature and its benefits, and (3) a six-step
via their Corporate Forests Questionnaire, Water approach to valuation.
Security Questionnaire and Climate Change
19. The The Economics of Ecosystems and
Questionnaire. CDP submissions can provide a
Biodiversity (TEEB) Valuation Database is a
useful, well-structured basis for developing
searchable database of 1,310 estimates of
mainstream disclosures in response to REQ-04
monetary values of ecosystem services provided
as well as other reporting requirements of the
by different ecosystems (e.g. open ocean, coral
CDSB Framework, such as on governance,
reefs, wetlands, rivers, lakes, forests, and
strategies and targets, and outlook
grasslands).
14. Sustainability Accounting Standards Board
20. The Environmental Value Look-Up is a
(SASB) materiality matrix and industry-specific
measuring tool to assess monetary value of
standards identify a base set of material
environmental impacts. The related database
ecological impacts for each industry, providing
contains indicative monetary values of
metrics for reporting on them in a consistent and
environmental impacts, including biodiversity
comparable manner.
(focus is on the UK).
15. GRI 304 disclosure standards on biodiversity
Please also refer to Table 5 and databases
include a disclosure on significant impacts of
contained in Appendix 8 and Appendix 9.
activities, products and services on biodiversity.
Specific suggestions are included in the sectoral
standards (e.g. Oil and Gas).
Examples three factors: product environmental footprint

calculated using Life Cycle Assessment (the
1. Kering Universal Registration Document
assessment covers the “cradle-to-gate” scope
2020 summarises how the organisation
for each Solvay product); pressure that
measures its biodiversity-related impact. Its
components released into air, water, and soil
Environmental Profit & Loss Account (EP&L)
puts on the ecosystem, converted into
methodology quantifies the impact on natural
“biodiversity loss” or “ecosystem quality”;
capital, including along the value chain (in 2019,
product sales volume during the year in
32% of Kering’s environmental impacts related
question (pg. 123).
to biodiversity and land-use, most of which was
at the level of Tier 4 suppliers). The company 3. FrieslandCampina Annual Report 2020 has
reports using the Biodiversity Impact Metric, developed an indicator to measure the impact
which measures the impact of operations on of dairy farms on biodiversity, in collaboration
biodiversity (including along the supply chain) with WWF and Rabobank - the Biodiversity
and provides a basis to compare impacts of Monitor (pg. 60). The company’s website
different raw materials or supply regions. The clarifies that the Biodiversity Monitor uses
report clarifies that the CISL team is working on the following KPIs to measure a dairy farm’s
improvements alongside EP&L specialists influence on biodiversity: GHG emissions,
before disclosing the Group’s impact on soil nitrogen balance, ammonia emission,
biodiversity (pg. 176). share of protein produced by own land,
share of permanent grassland, and share
2. Solvay Annual Report 2020 describes the
of nature and landscape management.
methodology used to measure its impact on
biodiversity - the ReCiPe method, based on
REQ-05 Principle 2 of the CDSB Framework sets out

that disclosures should include “all information
Performance and that is necessary for an understanding of the
comparative analysis matter that it purports to represent and does
Disclosures shall include an analysis of the not leave out details that could cause
information disclosed in REQ-04 compared information to be false or misleading to users.”
with any performance targets set and with To offer report users proper comparability
results reported in previous periods between past and present material biodiversity-
related performance, companies need to ensure
that they are offering an appropriate number of
Disclosure checklist historical datapoints. Narrow dataset windows
Does the disclosure: or intermittent, longer-term datasets are
unsuitable for comparison and decision-making,
Provide appropriate historical data to the for instance, potentially obscuring the actual
results reported from REQ-04 for significant trends. Where long-term measures and
biodiversity-related impacts to allow for performance are not possible, an organisation
useful comparison, including details on should disclose the reasons why. In addition,
priority geographical areas and priority clarification of boundaries considered (e.g. value
products/services? chain) should be provided.
Contextualise performance with baselines/
reference states, targets and other criteria Reporting on progress against targets offers an
used to assess progress? effective means of providing a narrative analysis
of performance to improve biodiversity impact. In
Explain the major trends with reference to
particular, a small set of core indicators that can
drivers of change under and/or outside the
be monitored across the corporate scope of
control of the organisation?
biodiversity influence and can be aggregated at
the corporate level is ideal. Additionally, in
accordance with Principle 3 of the CDSB
Framework, the set of selected indicators should
(1) connect to the impacts and dependencies
identified, and related risks and opportunities, In order to show progress across the years, a
and (2) illustrate the effectiveness/ baseline assessment should be performed for
ineffectiveness of management responses. each metric considered to assess performance.
When reporting on performance in reference to Reference to an explicit baseline year and/or
targets set for significant sources of biodiversity reference state is required to enable report
impacts, it is useful to restate the overall ambition users to draw decision-useful conclusions,
and the baseline/reference state, clarifying for the providing a starting point or state of biodiversity
reader as to whether the targets are part of a benchmark against which changes in
corporate initiative or scheme, or tied to wider biodiversity can be compared. Options include:
national or international ambitions. Example
• Comparisons to previous years (baseline year)
indicators that may be useful to report users to
or an average over previous years (e.g. the year
demonstrate progress towards targets include:
the organisation first started to operate in a
• Percentage increase in the area, connectivity specific area and completed a biodiversity-
and integrity of natural ecosystems within related assessment). This may be most useful
the organisation’s impact area; where the objective is to reduce or improve
organisation’s biodiversity impact over time.
• Percentage increase in the population of
threatened species within the impact area; • Comparisons to the state of biodiversity at
a point in time, such as a pristine baseline
• Non-compliance with biodiversity-related
where impacts are measured relative to
regulation (e.g. percentage of facilities with
biodiversity in its natural state (reference
violations);
state), or a counterfactual reference state,
• Membership of biodiversity initiatives (e.g. which is a plausible state of biodiversity that
percentage of facilities or suppliers with would occur if the business did not operate.
biodiversity-related certifications or number of A counterfactual reference state is useful as
partnerships signed with a biodiversity-related it takes into account external, non-business
scientific body, NGO, foundation or nature impacts (e.g. climate change or other
conservation stakeholder); organisations).
• Number of farms applying approved techniques;
Industry benchmarks, such as an industry
• Proportion of products from certified sources; average, may also be useful to include as they
• Value of fines and sanctions for non-compliance assist with the comparability of disclosures.liii
with biodiversity laws and regulations;
When explaining trends, companies should
• Level of investment in biodiversity; draw the reader’s attention to the impacts of
• Number of employees that attended at least one environmental initiatives and management
biodiversity training session; and actions, wider corporate developments (e.g.
changes in strategy, acquisitions or
• Percentage of entities trained in biodiversity divestments), and other drivers of change that
issues (both under and outside the control of the are internal to the organisation such as
reporting organisation e.g. suppliers, depending methodological modifications (e.g. changes in
on the reporting boundaries). targets or data coverage). For example, an
increase in biodiversity risk might be the result
Indicators can also be helpful for demonstrating of the development of new products with inputs
performance of delivery of strategies and sourced from regions with high biodiversity-
objectives. For example, a company’s objectives related risks, or a new acquisition. Other natural
can be best tracked with impact indicators (Table and human-induced factors that are outside the
4 and Table 5) whilst the strategies will require control of the organisation (e.g. regulatory
response indicators (e.g. biodiversity impact changes) can influence such trends. Such
mitigation measures or BAPs in place). Additionally, narratives should try to illustrate a more holistic
it would be beneficial to provide details on biodiversity impact, clearly describing the
performance and progress in priority geographical changes between reporting years and the
areas and for priority products/services, but also in drivers, while making connections across
areas experiencing significant changes including different aspects of the corporate report.
related to land-use (e.g. urbanisation or
deforestation), legislations, and population growth.
liii Check the work of the World Benchmarking Alliance. Available from:
https://www.worldbenchmarkingalliance.org/seafood-stewardship-index/
Consistency needs to be applied to techniques limitations inherent to the selected data

used for data gathering and processing, collection methods (e.g. the number of visits to
accounting approaches, and impact assessment sample units undertaken). A concise summary
methods to produce credible data over time of methodological information should be
and to allow for aggregation of information, provided in the report and, if procedures deviate
proper comparability, and understanding of from recommended practice, the organisation
performance and trends. For example, good should provide the basis for decision-making
practice consists of (1) applying the same and potential related implications. In many
estimation method for each species and circumstances, changes are made to improve
ecosystem throughout the data collection accuracy or meet new standards. Where
activities and across different sites as far as changes are made to data collection boundary,
possible and feasible, (2) ensuring that the methods, data, or any other factors affecting
sample selected is a statistically appropriate biodiversity impact assessment, restatements
representation of the total population, both should be produced, as in REQ-10 of the CDSB
in terms of size and location, and (3) recording Framework, to draw attention to these changes
the methodological choices, assumptions and and provide an explanation.
Useful resources
1. The 2021 report Assessment of Biodiversity 5. The Biodiversity Indicators for Site-Based
Measurement Approaches for Businesses and Impacts methodology by UNEP-WCMC,
Financial Institutions from the EU Business @ Conservation International and Fauna & Flora
Biodiversity Platform includes a summary of International sets out a methodology for
different biodiversity measurement approaches, aggregating biodiversity impact and
highlighting those that support the assessment performance data at site level to provide
of current performance and the tracking of indicators of biodiversity management
target progress (see Figure 2, pg. 17) performance at corporate level.
2. Stage 4 of the IUCN Guidelines for planning 6. The development and use of biodiversity
and monitoring corporate biodiversity indicators in business by the IUCN, introduces
performance offers guidance for choosing, a spectrum of business applications for
defining and using a small set of core indicators biodiversity indicators, illustrating their use
that can be monitored across the corporate in the decision-making process and in the
scope of biodiversity influence, to show progress measurement and tracking of biodiversity
against goals, objectives and the delivery of performance. This report also guides companies
strategies. in the selection of indicators (REQ-04).
3. The Biodiversity Indicators Partnership is a 7. Towards Nature Positive Business: The case
global initiative promoting the development and for biodiversity indicators by UNEP-WCMC,
delivery of biodiversity indicators, linked to provides guidance on how biodiversity indicators
global initiatives (i.e. CBD and other biodiversity- can be used to track biodiversity performance
related conventions, IPBES, the SDGs) that may and report progress to relevant stakeholders.
be useful for organisations when selecting and
8. The Biological Diversity Protocol offers an
developing indicators.
accounting and reporting framework that enables
4. Measuring ecosystem services: Guidance on organisations to produce Statements of Biodiversity
developing ecosystem service indicators by Position and Performance, which can be used to
UNEP-WCMC, supports the development of measure performance and risk over time. The
ecosystem service indicators at the national and protocol also provides suggestions on how to
regional level for uses including corporate accurately conduct and report on data collection.
assessment, decision-making and reporting.
Please also refer to Table 11 in Appendix 9.
Examples current progress and past performance (pg. 295),

allowing for comparison over time. The report
1. Stora Enso Annual Report 2020 assesses
also discloses the contributions of subsidiaries to
progress against responsible forestry (which
the overall result (e.g. in Gabon, in 2014, a mining
is explicitly connected to biodiversity – pgs. 3, 11
environment brigade was created, contributing to
and 18) by measuring the proportion of land in
the increase in rehabilitated areas (pgs. 296-298)).
wood production and harvesting owned and
managed by Stora Enso which is covered by 3. Titan Integrated Annual Report 2020 discloses
forest certification schemes. The report includes various indicators (e.g. Active quarry sites with
the company’s target and performance against high biodiversity value (number); Active quarry
previous years (pg. 9 Sustainability Section in sites with biodiversity management plans
Annual Report 2020). It outlines the geographical (number); Active quarry sites with biodiversity
location of forests, plantations, and land owned or management plans (percentage); Active quarry
managed by Stora Enso, providing details on sites with quarry rehabilitation plans (percentage),
hectares covered by each unit, and whether or etc.). For each, the company discloses current
not it is covered by forest certification schemes performance, as well as that of the previous four
(and if so, which one(s)) (pgs. 52-53). years (pg. 75 and pg. 87). Explanations behind
some of the changes are provided. For example,
2. Eramet Universal Registration Document 2020
a decrease in the percentage of active quarry
discloses its progress against its biodiversity
sites with quarry rehabilitation plans was due to
objective, i.e. to achieve and maintain the ratio of
the organisation acquiring a quarry in North
rehabilitated areas to cleared areas ≥ 1 over the
Macedonia which does not yet have in place a
period 2019-2023 (excluding long-term
plan that meets TITAN’s standards (pg. 75).
infrastructures). The company reports on both
REQ-06 REQ-06 of the CDSB Framework encourages

companies to provide a future-oriented summary
Outlook that enables report users to understand how
Management shall summarise their conclusions an organisation’s biodiversity-related risks,
about the effect of environmental impacts, risks opportunities, dependencies and impacts are
and opportunities on the organisation’s future affecting, or will affect, its ability to execute its
performance and position strategy, innovate and create value across time
horizons. According to Principle 7 of the CDSB
Disclosure checklist Framework, the information provided in response
to REQ-06 should synthesise in a forward-
Does the disclosure: looking manner and build on what has been
Explain the likely effect of future disclosed in line with the first five reporting
biodiversity-related impacts, risks and requirements of the CDSB Framework. In
opportunities, as well as of biodiversity practice, REQ-06 should provide a full picture for
strategy on organisation performance and investors of how biodiversity-related governance,
resilience, taking account of regulatory and strategy, management, and current and potential
market trends and environmental changes? risks and opportunities will likely influence the
organisation’s performance and position.
Identify and explain the time horizons used
for reporting on corporate outlook? Taking into account the timescales over
Explain any techniques, such as scenario which biodiversity-related risks will manifest,
analysis, used to inform the outlook the non-linear and potentially abrupt nature of
including the methods, scenarios and possible impacts, and the multiple, interconnecting
assumptions used, and any shortcomings systems that drive biodiversity-related risks and
and uncertainties? opportunities for companies, scenario analysis is a
particularly useful method for companies to better
understand potential futures, assess and build
resilience within environmental, economic and
social systems that are in flux, and to disclose such
information to investors.
1. Scenario analysis the assessment of biodiversity and ecosystem

services (e.g. Globio174 and InVEST175)176 and of
Assessing a range of future biodiversity-related economic indicators.177
states and consequences for the business will elicit
important information for companies and report The results of the scenario analysis should provide
users. Scenario analysis can be conducted through a summary of the organisation’s future
different routes including consultation with internal dependencies on biodiversity and related future
and external experts or scientific analysis, which risks and opportunities, including details on current
would support the understanding of complex and and future areas impacted by business activities, to
interconnected biodiversity-related issues. It can be be included in the outlook.
a quantitative or qualitative exercise. There is no
special or correct formula by which it is to be Considerations on the resilience of the organisation
completed. Instead, it is a process to analyse a suite to the analysed future scenarios in light of
of potential futures, understanding the organisation, biodiversity strategy and management should be
its dependencies and strategic resilience, within the presented, highlighting the main plans and actions
different forces that drive each of the futures. It is an to cope with future risks and seize future
advanced exercise because it would, ideally, opportunities from current strategy and
consider a set of drivers influencing the status of management (e.g. mitigation of impacts on
biodiversity, ecosystems and their functioning/ biodiversity, stakeholder engagement) and
services in the different areas of operations and potential limitations and gaps. Given the site
value chain, including drivers linked to business specificity of biodiversity risks, details on resilience in
operations, as well as external drivers such as priority geographical areas would be beneficial.
population, regulatory mechanisms, land-use Links, synergies and trade-offs between
change, and climate change and its effects (e.g. biodiversity-related management actions and those
ocean acidification). Few existing practices focus on implemented to tackle other natural capital changes
biodiversity-related outcomes from climate-related (but also social and governance issues) should be
scenario analysis. In this analysis, a range of different explained (e.g. transitioning to renewable energy
warming levels (e.g. 1.5, 2, 3 and greater than 4°C) such as wind farm can impact bird habitat or
and transition pathways (e.g. drastic to 1.5°C, migration; or installing a mini-hydropower station
relatively more gradual 2°C, technologically- can impact fish habitat and breeding process).
enabled 1.5°C) should be taken into account, as
recommended by the TCFD. Climate change is a The use of scenario analysis will be based on
key driver of biodiversity loss: in particular, scenarios iterative learning and development. This will allow
characterised by greater temperature increases (e.g. companies to build on findings or methods
more than 3°C) should be assessed since they are employed previously as well as incorporate more
critical for biodiversity-related risks168 (e.g. up-to-date understanding of biodiversity
exacerbate the extinction risk in biodiversity dependencies and impacts, of other influencing
hotspots such as mountains, islands, and coral environmental systems and their interactions as
reefs;169, 170 or increase of invasive species due to well as greater comprehension of biodiversity and
climate-induced migration and consequent impacts climate resilient pathways. If using scenario
on pollinators and crop productivity,171 and soil analysis, then report preparers should be open
biodiversity and fertility), and related adaptation and with these aspects of learning and development.
mitigation actions. On the other hand, 2 °C or 1.5 °C
scenarios can have significant impacts due to
land-use change required for the expansion of 2. Methods, assumptions and uncertainties
bioenergy cropland, if bioenergy remains a major
component of climate change mitigation When reporting on corporate outlook, report users
strategies.172 Climate scenarios, such as those should be able to understand the different methods
developed by the IPCC and the International Energy that have been used to prepare the outlook,
Agency (IEA), can be combined with socio- including horizon scanning and scenario analysis,
economic scenarios such as the Shared any assumptions made and the timeframes over
Socioeconomic Pathways (SSP) by the International which the analysis has been completed. These
Institute for Applied Systems Analysis (IIASA),173 different characteristics of the scenarios should
which can influence and be influenced by reflect the nature of the organisation, its assets and
biodiversity impact drivers (other than climate operations, and the scale of risks and opportunities
change), such as land-use change and pollution. already identified. In addition, where external advice
Such scenarios can be combined with models for or assistance on conducting scenario analysis is
used, it is beneficial for this to be highlighted within in complex environmental systems and political,
the methods and inputs. In reporting the economic and societal arenas as well as the
effectiveness and resilience of the organisation’s exposure of the organisation or assets and its
strategies to the potential business impacts of the associated vulnerabilities. The qualities and
different scenarios, report preparers should be clear dimensions of biodiversity-related risks and
about uncertainties but as precise as possible with opportunities for companies are likely to change
how the impacts of risks differ by geography and over time, whether gradually or abruptly.
time horizon. Clear articulation of the specific Therefore, using the findings of such exercises to
sensitivities to the different scenarios will allow assess corporate outlook is an important means
report users to better understand the potential of updating risk and opportunity identification
responses identified by the organisation as a result systems and refine or reformulate biodiversity-
of the exercise, whether that is no response, related policies, strategies and targets. This will
changes to financial planning and investment, or better prepare the organisation in limiting and
reimagining the business model. seizing biodiversity-related risks and
opportunities. Including such learnings and how
they have been incorporated into systems and
3. Iteration and learning ambitions in the mainstream report is a valuable
means of demonstrating effective and efficient
Biodiversity-related risks and opportunities are management of significant biodiversity-related
highly dynamic and dependent upon changes matters to investors.
Assessment Tools
As for risks, existing assessment tools can 3. IUCN’s STAR tool measures the contribution
support the assessment of future scenarios and that investments can make to reducing species
business resilience to those scenarios. extinction risk which could be used for scenario
Combining different tools and integrating analysis purposes.
organisation-specific components and
4. The current version of ENCORE allows
information is good practice and would provide
exploration of future scenarios in terms of the
a more comprehensive and robust assessment.
potential direct impacts of each commodity on
1. The Globio model allows trends in biodiversity biodiversity (available for some sectors, e.g.
and ecosystem services to be modelled under agriculture and mining). The description of
future socio-economic development scenarios, methods supports the understanding and the
as well as different policy interventions. selection of scenarios and related analysis and
provides a list of models that can be coupled
2. The Water Risk Filter by WWF includes
with ENCORE (see Table 5, pg. 40).
TCFD-aligned future scenarios that combine
climate and socioeconomic scenarios and
provides 2030 and 2050 quantitative
projections of physical risks. Despite being
focused on water, among the physical risks
the tool includes risks also linked to ecosystem
services status considering the fragmentation
status of rivers, catchment ecosystem services
degradation level, and projected impacts on
freshwater biodiversity. The Water Risk Filter
methodology includes a description of methods,
data and sources used.
Useful resources ecosystem services provides guidance for the use

of scenarios and existing models aimed at
1. The TCFD Technical Supplement: The Use of
assessing biodiversity and ecosystem services. In
Scenario Analysis in Disclosure of Climate-related
particular, it provides an analysis of best practices
Financial Disclosures explains the importance of
for using scenarios and models in assessments.
scenario analysis and offers considerable advice
Additionally, the report summarising the scientific
on and resources for developing and applying
outputs of the IPBES-IPCC co-sponsored
scenario analysis for climate issues, including
workshop - Biodiversity and climate change
biodiversity-related issues. Additionally, the TCFD
illustrates the interlinkages between and effects
Knowledge Hub offers a free on-line course on
of climate change scenarios and biodiversity
the introduction to scenario analysis.
(including reference to further useful literature).
2. The IPBES Methodological assessment report
on scenarios and models of biodiversity and
Examples (while the Annual Report 2020 refers to the

study (pg. 63), further details were found on the
1. FrieslandCampina is in the process of
company’s website and in the official study).
assessing the results of a study commissioned to
the University of Wageningen on what the dairy 2. Unilever Annual Report and Accounts 2020
industry might be like in 2030. The study looks addresses scenario analysis in a dedicated
at a variety of scenarios based on different section of the report (pgs. 52-54). While focused
considerations, including the shift towards more on climate change, the report summarises
nature-inclusive dairy farming, or towards a methods and assumptions, findings, impacts
world which will require reliable, cheap, and and outlook for the organisation and key
efficiently produced food, where requirements commodities, and explains how the outcomes
relating to grazing and biodiversity will disappear feed into risk management and other processes.
due to consumers no longer being ready to pay Shifting towards sustainable agriculture (as well
for this in a generic sense. The company states as net zero deforestation requirements)
that it will take the study’s future scenarios into underpins the 2°C scenario, which would
consideration in its long-term strategy translate into increased raw material prices,
development and decision-making process hence costs for the company.
4. Basis for conclusions

The content of the Biodiversity Application The Biodiversity Application Guidance also
Guidance has been developed and selected reflects the status of research and scientific
according to the scope and aim of the developments on biodiversity, for example, on
document (see About this guidance) and biodiversity impact assessment and related
reflecting the fact that it is subordinated to the metrics and on nature-related financial risks and
CDSB Framework and is complementary to opportunities (see example of physical risks and
other CDSB guidance documents, such as the opportunities in REQ-03)
Climate and the Water Guidance. The
Biodiversity Application Guidance reflects the The focus of the Biodiversity Application
status of the sustainability reporting Guidance is on disclosures and not on corporate
environment and regulation at the time of management and practices. For this reason,
writing. As explained in Reporting expectations the Guidance mentions some good
and important considerations, materiality plays a management practices to provide examples
crucial role within this dynamic space. The CDSB and direction to disclosures but does not go
reporting requirements are voluntary, unless deeper into methodological details (e.g. steps
prescribed in guidance issued by national or to define biodiversity targets) and sign-posts to
supranational government or regulator, and external resources that have specific focus on
therefore the reporting suggestions provided in such topics in order to avoid duplicating existing
the Biodiversity Application Guidance are information.
also voluntary.
Chapter 4
Appendices
Appendix 1:
CDSB Framework –
Guiding principles and
reporting requirements
Principles
P1 Environmental information shall be
prepared applying the principles of
CDSB
relevance and materiality Framework
P2 Disclosures shall be faithfully represented for reporting environmental
& climate change information
P3 Disclosures shall be connected with Advancing and aligning disclosure
other information in the mainstream report of environmental information in
mainstream reports
P4 Disclosures shall be consistent and
comparable
P5 Disclosures shall be clear and
understandable
P6 Disclosures shall be verifiable
P7 Disclosures shall be forward looking December 2019
www.cdsb.net/framework
Reporting requirements
REQ-01 Disclosures shall describe the REQ-07 Environmental information shall be

governance of environmental policies, prepared for the entities within the boundary
strategy and information of the organisation or group for which the
mainstream report is prepared and, where
REQ-02 Disclosures shall report management’s appropriate, shall distinguish information reported
environmental policies, strategy and targets, for entities and activities outside that boundary
including the indicators, plans and timelines
used to assess performance REQ-08 Disclosures shall cite the reporting
provisions used for preparing environmental
REQ-03 Disclosures shall explain the material information and shall (except in the first year of
current and anticipated environmental risks reporting) confirm that they have been used
and opportunities affecting the organisation consistently from one reporting period to the next
REQ-04 Quantitative and qualitative results, REQ-09 Disclosures shall be provided

together with the methodologies used to on an annual basis
prepare them, shall be reported to reflect
material sources of environmental impact REQ-10 Disclosures shall report and explain
any prior year restatements
REQ-05 Disclosures shall include an analysis
of the information disclosed in REQ-04 REQ-11 Disclosures shall include a statement
compared with any performance targets set of conformance with the CDSB Framework
and with results reported in a previous period
REQ-12 If assurance has been provided over
REQ-06 Management shall summarise their whether reported environmental information
conclusions about the effect of environmental is in conformance with the CDSB Framework,
impacts, risks and opportunities on the this shall be included in or cross-referenced to
organisation’s future performance and position the statement of conformance of REQ-11
Appendix 2: The scope of the CDSB Framework mainly covers

CDSB materiality approach the intermediate lens (b), but there is significant
overlap in the scope of sustainability matters
Principle 1 of the CDSB Framework offers that addressed in the different lenses (as shown in
information is material if: Figure 9). Therefore, material information on
sustainability risks and opportunities useful to
• The impacts or results it describes are,
investors can include information about the
due to their nature and magnitude, expected
entity’s impacts on society and the environment,
to have a significant positive or negative
and how those impacts affect its cash flows over
impact on the company’s financial condition
the short-, medium- and long-term (also referred
and operational results and its ability to
to as circularity).
execute its strategy over the short-, medium-,
and long-term; or
Additionally, the materiality of sustainability
• Omitting, misstating, or obscuring the issues is dynamic on account of changing
information could reasonably be expected to environmental conditions and their interactions
influence the decisions that users of with an organisation and the development of
mainstream reports make on the basis of that investor, regulator and consumer expectations,
mainstream report, which provides information for example business.180 Therefore, depending
about a specific reporting company.178 on its materiality for a specific organisation at a
given time, sustainability-related information
Corporate reporting on sustainability falls under one of the three forms of reporting
(including biodiversity) may include three noted above. This means that the concerns of
distinct, but nested lenses179 (Figure 9): one stakeholder group may quickly become
material for financial decision-makers (Figure
a. Reporting to all stakeholders on all sustainability
9). As such, disclosures based on sustainability
matters that reflect significant impacts on
reporting standards and frameworks from
people, the environment and the economy;
organisations such as CDP, GRI, and the
b. Reporting to investors on all sustainability Capitals Coalition are important to ensure
matters that affect (future) financial position reciprocity and responsiveness in the reporting
and performance; and landscape (Figure 9). Organisations should
regularly reassess the materiality of
c. Reporting to investors on monetary amounts
sustainability issues to their business and reflect
included in the financial statements.
this selection in the sustainability-related
financial disclosures (and financial accounting)
included in their mainstream report.
Sustainability reporting
via various materiality lenses
Data structured using taxonomies and powered by technology
Reporting on all sustainability matters that reflect

significant positive or negative impacts on people, Dynamic
the environment and the economy Materiality:
sustainability
To various users with various objectives, who want topics can
to understand the enterprise’s positive and negative move either
contributions to sustainable development gradually or
very quickly
Reporting on those sustainability matters

that create or erode enterprise value
To users with specific interest in
understanding enterprise value
Already represented in
the financial statements
X
s Sustainability matter:
los
ity e.g. biodiversity loss
ers
iodiv
B
Dynamic materiality: Dynamic materiality: Sustainability matters can move

between boxes over time. For example, changes to biodiversity enters the big
box perspective as society becomes aware of biodiversity loss, the middle box
as investors start to factor in biodiversity positive transition into capital market
pricing, and the small box as financial consequences are felt in net asset values
Sustainability Reporting Enterprise value Reporting
E.g. Biodiversity change including Sustainability-related financial disclosure Financial accounting

source of impacts, standards and disclosure
methodologies, assumptions E.g. Trend and scenario analysis of biodiversity change, including
and tools used to determine sales-weighted biodiversity dependencies and impacts of products. E.g. Monetary impact on the
contribution (destruction) to Companies and investors can thus understand the business levers statement of profit or loss due
sustainable development available to reduce/halt biodiversity loss and the likely effect of to remediation expenses or
improving performance on the company’s enterprise value by fines related to regulation on
reducing / avoiding remediation expenses or improved reputation biodiversity
thanks to the reduction of impacts on biodiversity
Figure 9. Materiality of sustainability matters is dynamic, and the three forms of sustainability reporting are nested. The CDSB Framework and
Biodiversity Application Guidance focus on sustainability matters that affect financial position and performance. This figure is an adapted version from
the publication Reporting on enterprise value by CDP, CDSB, GRI, IIRC and SASB (IIRC and SASB have merged into the Value Reporting Foundation).
Appendix 3: Mapping the CDSB requirements

to TCFD and biodiversity reporting standards
Table 6. International biodiversity reporting standards, frameworks, and guidelines and TCFD - mapping with CDSB requirements.
CDSB Framework
REQ-01 REQ-02 REQ-03 REQ-04 REQ-05 REQ-06
TCFD • Governance (a, b) • Governance (b) • Governance (b) • Metrics and Targets • Metrics and • Strategy (a, b, c)
• Risk Management (a, b, c) • Strategy (b) • Strategy (a, b c) (a, b) Targets (a, b) • Risk
• Risk Management (a, b, c) • Risk Management (a, b, c) Management (c)
• Metrics and Targets (a, c) • Metrics and
Targets (a)
CDP Forest Security • F4.1; F4.2; F4.3 • F0.4; F0.5 • F1.2; F1.3; F1.6 • F1.2; F1.3 F1.6 • F1.1
Questionnaire • F6.6; F6.7 • F1.1; F1.2; F1.5 • F2 • F6.4 • F1.6
• F2 • F3.1; F3.2 • F6.3; F6.5
• F4.5; F4.6 • F6.3; F6.6 • F8.1
• F5.1 • F8.1
• F6.1; F6.2; F6.3; F6.4; F6.5;
F6.7; F6.8; F6.9; F6.10; F6.11
• F8.1
GRI 303 - water and effluents • REQ. 303-1 (c, d) • REQ. 303-1 (a, b, c, d) • REQ. 303-1 (a) • REQ. 303-1 (a, b) • REQ. 303-1 (a) • REQ. 303-1 (b)
• REQ. 303-2 • REQ. 303-3
• REQ. 303-4
• REQ. 303-5
GRI 304 - • REQ 1.1 (following GRI 103) • REQ 304-1 • REQ 304-3 (a, • Rep. Reco 2.1
biodiversityliv • REQ 304-1 • REQ 304-2 c, d)
• REQ 304-2 • REQ 304-3 (a, c, d)
• REQ 304-3 (b) • REQ 304-4
SASBlv • Standard Application • Standard Application • Standard Application • EM-MD-160a.2. • Standard

(EM-MD: Oil & Gas-midstream; Guidance - 5.0 (a, c) Guidance - 5.0 (b, d) Guidance - 5.0 (b, d) • EM-MD-160a.3. Application
• EM-MD-160a.1. • EM-MD-160a.3. • EM-MD-160a.4. Guidance - 5.0
F-HB: Home Builders)
• EM-MD-160a.2. • F-HB-160a.3 (d)
• EM-MD-160a.3. • EM-MD-160a.4.
• F-HB-160a.4
IPIECA - Sustainability • 4.5 | ENV-6: C4 • 4.5 | ENV-3: A1, A2, A3, A4 • 4.5 | ENV-1: C3 • 4.5 | ENV-3: A2 • 4.5 | ENV-4: A1,
reporting guidance for the oil • 3.6 | CCE-1 • 4.5 | ENV-3: C1, C2, C3 • 4.5 | ENV-4: C1, C2 A2
and gas industry • 4.5 | ENV-4: C1, C2 • 4.5| ENV-6: C2, A1,
(Module 4) • 4.5 | ENV-4: A1 A2, A3, A4, A5, A6,
• 4.5 | ENV-6: C1, C3, C4 A7, A8
The Natural Capital Protocol • Step 02 • Step 01 • Step 01 • Step 04 • Step 06 • Step 08
• Step 02 • Step 03 • Step 05 • Step 08
• Step 03 • Step 04 • Step 06
• Step 05 • Step 07
• Step 09
Biodiversity Guidance – sup- • Step 02 • Step 01 • Step 01 • Step 04 • Step 06 • Step 08

plement of the Natural Capital • Step 02 • Step 03 • Step 05 • Step 08
Protocol • Step 03 • Step 04 • Step 06
Biological Diversity Protocol • 2. Biodiversity impact inventory • 2. Biodiversity impact • 3. Biodiversity

development; inventory development; impact measurement
• 3. Biodiversity impact • 4. Validation, verification, and accounting;
measurement and accounting reporting and disclosure • 4. Validation,
(sections: 3.1; 3.2.1); (sections 4.2) verification, reporting
• 4. Validation, verification, and disclosure
reporting and disclosure (sections 4.2)
(sections 4.2)
Accountability Framework • Principle 4 (4.1, 4.2 and 4.4) • Principle 1 (1.1 and 1.2) • Principle 2 (2.1 and 2.2) • Principle 11 (11.3 and • Principle 3.2 • Principle 11.9
• Principle 10 (10.1, 10.2 and • Principle 2.1 • Principle 3 (3.1 and 3.4) 11.4) • Principle 11 (11.
10.3) • Principle 3 (3.2, 3.3 and 3.4) • Principle 5 (5.1 and 5.2) • Principle 12.1 and 11.2)
• Principle 11.9 • Principle 4 (4.2) • Principle 7 (7.1) • Principle 12
• Principle 5.1 • Principle 11.5
• Principle 6
• Principle 7
• Principle 8
• Principle 9
• Principle 10
liv Also referenced in GRI 11: Oil and Gas Sector 2021.
lv Biodiversity is generally considered under “Ecological Impacts” (but not only, e.g. in “Poultry, Meat, Dairy” it is considered under “Animal and Feed Sourcing”)
in several of the SASB sector-specific standards. Here only the “Oil and Gas – midstream” and “Home Builders” are reported as examples. Interested parties can
review the applicable industry standard(s) to identify relevant content that could support effective disclosure on biodiversity-related matters.
Appendix 4: Definitions
The definitions and associated sources for key terms used in the Biodiversity Application
Guidance are outlined below.
Table 7. Definitions of common terms used throughout the Biodiversity Application Guidance, including sources.
Term Definition Source

Area of high (1) Habitat of significant importance to critically endangered and/ International Finance
biodiversity value or endangered species; Corporation
(2) Areas of habitat of significant importance to endemic and/or
restricted-range species;
(3) Habitat supporting globally significant concentrations of
migratory species and/or congregatory species;
(4) Highly threatened and/or unique ecosystems; and/or
(5) Areas associated with key evolutionary processes.
Biodiversity The diversity of life in all its forms — the diversity of species, of UN CBD, 1992
(or biological genetic variations within one species, and of ecosystems.
diversity)
Biodiversity A biodiversity dependency is a reliance on or use of biodiversity, Adapted from: Biological
dependency including biological resources (e.g. materials, liquids, genetic Diversity Protocol
resources) from both species and interactions with various
ecosystem processes and services (e.g. pollination, water filtration,
crop pest/disease control or water flow regulation).
Biodiversity impact A change in the diversity of ecosystems and/or species that may CDSB
take place because of business activities. This includes changes
to the state of ecosystems (e.g. extent and condition/integrity)
and species (e.g. habitat, population size) that can be used to
signal changes in biodiversity. A negative impact is a potential
loss of biodiversity (e.g. decline in species number) and a positive
impact is a potential gain in biodiversity (e.g. nature restoration).
Biodiversity-related Decision-useful material information disclosed by an organisation CDSB

Financial Disclosure about risks and opportunities that biodiversity presents to an
organisation’s strategy, financial performance and condition
within the mainstream report to investors.
Biodiversity-related Financial risks to organisations and the wider financial system Adapted from: The
financial risks resulting from biodiversity loss and ecosystem degradation due to Economics of Biodiversity:
human activity that drives nature loss. This includes physical, Dasgupta Review
transition and liability risk types, aligned to the TCFD. Biodiversity-
related financial risks may include expenses/liabilities resulting
from implementing mitigation hierarchy principles for biodiversity
impacts, impairment of assets linked to biological resources and
the associated access/use right/quotas (e.g. fishing rights, forestry
concessions) and/or increased costs/decreased revenues resulting
from changes in availability of resources.
Cumulative impact A change in the state of biodiversity (direct or indirect) that Adapted from Biological
occurs due to the interaction of activities of different actors Diversity Protocol, Natural
operating in a landscape, not only the target organisation. Capital Protocol: Biodiversity
Guidance and BBOP, 2012
Direct impact A change in the state of biodiversity caused by a business activity Adapted from: Biological
with a direct causal link. Diversity Protocol and
Natural Capital Protocol:
Biodiversity Guidance
Ecological The principle that for impact assessment or offsetting purposes, the Adapted from: Biological
Equivalency types of biodiversity lost or gained should be ecologically equivalent Diversity Protocol
or like-for-like (i.e. only the same types of ecosystems or taxa should
be aggregated), due to biodiversity patterns varying significantly
between different species/ecosystems and locations.
Ecological An ecological threshold is the point at which a relatively small change or Adapted from: Valuing
thresholds and disturbance to a system leads to an abrupt change in ecosystem Nature Programme and
tipping points quality, property or phenomenon. Groffman, P. et al (2006)
A tipping point is a specific type of ecological threshold, referring
to a situation where accelerating change, caused by a positive
(self-enforcing) feedback mechanism, drives an ecosystem to a
new state, with significant changes in biodiversity, natural capital
and/or ecosystem services. Changes in ecosystems that take place
once a tipping point has been reached can be long lasting, hard to
reverse or irreversible.
Term Definition Source

Ecosystem A dynamic complex of plants, animals, and microorganisms, and Millennium Ecosystem
their non-living environment, interacting as a functional unit (e.g. Assessment (MEA), 2005
deserts, coral reefs, wetlands, and rainforests).
Ecosystem Services The flows of benefits that ecosystems make to people (e.g. timber, Adapted from: Natural
fibre, pollination, water regulation, climate regulation, recreation, Capital Protocol
mental health), enabling human activities which, include the
operation of businesses.
Final Ecosystem When an ecological end-product transitions to being either an Adapted from: Finisdore, J.,
Services economic benefit or something that can be directly used or et al. (2020), CICES and
appreciated by people. NESCS
Habitat The place or type of site where an organism or population UN CBD, 1992
naturally occurs.
Indirect impact A change in the state of biodiversity caused by a business Adapted from: Biological
activity with an indirect causal link (e.g. indirectly caused by the Diversity Protocol and
climate change GHG emissions contributed to). Natural Capital Protocol:
Biodiversity Guidance
Invasive species Plant and animal species introduced (deliberately or accidentally) From IUCN French
into a natural environment, whose acclimatisation and propagation Committee.
represent a major threat to eco-systems, habitats and native species
with negative impacts on the environment, the economy and
human health.
Land-use The human use of a specific area for a certain purpose (such as IPBES; IPCC, Special Report
residential; agriculture; recreation; industrial, etc.). Influenced by, on Climate Change and
but not synonymous with, land cover. Land-use change refers to Land, 2019
a change in the use or management of land by humans, which
may lead to a change in land cover.
Note: In the context of this guidance, the connection to climate
change will also be considered in relation to land-use, land-use
change and forestry (LULUCF), as set out by the IPCC. LULUCF
activities have an important role to play in climate mitigation,
although mitigation options can also have adverse side effects for
biodiversity and nature.
Mitigation hierarchy A sequence of actions applied to the management Adapted from: Business and
(biodiversity) of biodiversity impacts, consisting of four stages: Biodiversity Offsets
Programme (BBOP) and
1. Avoid impacts on biodiversity;
Natural Capital Protocol:
2. Reduce biodiversity impacts as far as possible; Biodiversity Guidance
3. Restore/remediate impacts that are immediately reversible; and
4. Offset residual impacts to achieve a desired net outcome (e.g.
no net loss or net gain).
Natural Capital The stock of renewable and non-renewable natural resources (e.g., Natural Capital Protocol
plants, animals, air, water, soils, minerals) that combine to yield a
flow of benefits to people (ecosystem services).
Nature-positive A world with a net positive state of nature by 2030, and full Adapted from: SBTN and
recovery of nature by 2050. Nature+Positive
Physical risks: Physical climate (and environmental) risks can be classified as Recommendations of the
acute and chronic acute when they are event driven, or chronic when they are linked TCFD
to longer-term shifts in climate (and environmental) patterns.
Protected area A clearly defined geographical space, recognised, dedicated, and IUCN definition 2008, 2013
managed, through legal or other effective means, to achieve the
long-term conservation of nature with associated ecosystem
services and cultural values.
Species A group of individuals that actually or potentially interbreed and Biological Diversity Protocol
produce fertile offspring.
Valuation The process of estimating the relative importance, worth, or Natural Capital Protocol:
usefulness of biodiversity to people, in a particular context (e.g. for Biodiversity Guidance
an organisation).
Value Chain An organisation’s direct operations, upstream activities and Adapted from: Natural
downstream activities. Direct operations cover activities over Capital Protocol; Biological
which the organisation has direct control, upstream activities cover Diversity Protocol
the activities of suppliers, leased assets, outsourcing operation and
franchises and downstream activities are those linked to the
purchase, use, re-use, recovery, recycling and final disposal of the
organisation’s products and services.
Appendix 5:
Key CDSB resourceslvi
1. CDSB (2021). Accounting for climate 6. CDSB and CDP (2020). The building blocks:
Integrating climate-related matters into financial Connecting CDP data with the CDSB Framework
reporting - Supplementary paper. Available from: to successfully fulfil the TCFD Recommendations.
https://www.cdsb.net/sites/default/files/cdsb_ Available from: https://www.cdsb.net/
climateaccountingguidance_2021_v4.pdf buildingblocks
2. CDSB (2021). The CDSB Framework 7. CDSB (2019). CDSB Framework for reporting
Application guidance for water-related environmental and climate change information.
disclosures. Available from: Available from: https://www.cdsb.net/framework
https://www.cdsb.net/water
8. CDSB (2018). Uncharted waters: How can
3. CDSB (2021). Decision-useful climate-related companies use financial accounting standards
information for investors - What, Why & How?. to deliver on the Task Force on Climate-related
Available from: Financial Disclosures’ recommendations?
https://www.cdsb.net/decision-useful Available from: https://www.cdsb.net/sites/
default/files/uncharted_waters_final.pdf
4. CDSB (2020). Accounting for climate. Available
from: https://www.cdsb.net/climateaccounting 9. CDSB (2012). Proposals for boundary setting
in mainstream reports. Available from: https://
5. CDSB (2020). Application guidance for www.cdsb.net/sites/default/files/proposals_for_
climate-related disclosures. Available from: mainstream_report_boundary_setting.pdf
https://www.cdsb.net/climateguidance
lvi These resources are mainly related to climate (and water), but they
provide technical and practical support for the preparation of sustainability-
related financial information and mainstream reports, which can be useful
also in the case of biodiversity-related financial information.
Appendix 6: Common examples of biodiversity

impacts drivers and changes to the state of biodiversity
Table 8. Common examples of biodiversity impacts drivers (sources of biodiversity impact), with a description of each and how they contribute to
or are connected to biodiversity impacts. References: Natural Capital Protocol Biodiversity Guidance; IUCN Guidelines for planning and monitoring
corporate biodiversity performance, IPBES Global assessment report on biodiversity and ecosystem services
Impact Driver Description Change in state of biodiversity

Changes in land-, Changes to land/sea/freshwater areas such as Loss of habitat cover and
freshwater- and deforestation, urbanisation, converting natural habitats connectivity, degradation and
sea-use for agriculture or seabed destruction (e.g. due to bottom fragmentation can lead to changes
trawling or marine construction) transforms the amount of to species distribution, changes to
natural habitat available and can cause habitat species migration patterns, changes
fragmentation. to population sizes and loss of
ecosystem function.
Resource Direct exploitation of organisms and natural resources Decrease in abundance and diversity
exploitation (e.g. use of timber, use of water, exploitation of animals on of species, genetic drift and habitat
or close to farms). degradation.
Noise/light pollution Noise or light pollution as a result of operational activities Changes to species behaviour
(e.g. construction noise, artificial light emissions). and distribution, including migration
and breeding patterns (e.g.
disruption of foraging, breeding
or social behaviour).
Waste Plastic waste or waste assimilation. Impacts on species abundance
(e.g. reduction in abundance due
to macroplastics or microplastics
along the food chain).
Soil pollution Toxic pollution resulting from the use of agrochemicals Loss of abundance or diversity
being up taken by plant species and ingested across the of species that ingest of toxic
food chain. Excessive nutrients used in agriculture pollutants (e.g. invertebrates,
entering water networks. insects) and those that feed on
them (e.g. birds). Aquatic
eutrophication resulting in
destruction of equilibrium in aquatic
ecosystems.
Water pollution Water pollutants resulting in reduced oxygen levels within Reduction in number of species
the impacted waterway (e.g. river, lake, or stream) due to the present in affected area, including
input of chemicals. both those affected by chemicals
and those that feed on them.
Air emissions Emissions of GHGs and other air pollutants. Decrease in air quality and climate
change resulting in loss of
ecosystem quality and changes to
species distribution and population
sizes.
Appendix 7: Key Initiatives

Table 9. Key biodiversity-related initiatives.
Initiative Description Key aims

Capitals A collaboration of leading organisations in areas including To work with organisations and
Coalition research, science, academia, reporting, investment and individuals spanning global systems,
business. The coalition develops, advocates for and to understand the value that flows
advances the capitals approach, and has developed two from the capitals, to ensure that it is
standardised frameworks for identifying, measuring and included in decision-making and that
valuing dependencies on natural capital, including the value of nature, people and
biodiversity guidance. society sits alongside financial value in
the minds of decision-makers.
TNFD A global initiative catalysed through a partnership Provision of a framework by late 2023
between Global Canopy, UNDP, UNEP-FI & WWF. The for corporates and financial
Taskforce consists of approximately 35 members, institutions to assess, manage and
including financial institutions, corporates and service report impacts and dependencies on
providers. nature, to provide a complete picture
of environmental risks and support a
shift in global financial flows away
from nature-negative outcomes and
towards nature-positive outcomes.
Business For A coalition comprising of companies and conservation Amplifying the voice of business to
Nature organisations, encouraging companies to commit and act encourage greater policy ambition
to reverse nature loss. relating to biodiversity and nature, as
well as strengthening business
momentum.
Partnership for A partnership of financial institutions initiated by ASN Contribute to the development of a
Biodiversity Bank in 2019 that work together to explore challenges and harmonised biodiversity accounting
Accounting opportunities of the assessment and disclosure of the approach in the financial sector: the
Financials impact on biodiversity associated with loans and ‘PBAF Standard’.
investments.
SBTN A network of organisations aligned through the Global Defining integrated targets for cities
Commons Alliance focused on building upon the and companies across all Earth
Science-Based Targets Initiative across the whole Earth system, defining what is necessary to
system. stay within Earth’s limits and meet
society’s needs, by 2022.
The Food and A community of partners including SYSTEMIQ, WBCSD Harnessing the expertise of public,
Land Use and WRI, working to galvanise system change relating to private and research organisations to
Coalition food and land-use, through a series of global initiatives. enable systems thinking on food and
land-use transformation for people,
nature and climate.
EU Business A forum set up by the European Commission, running Working with and helping businesses
@ Biodiversity workstreams with EU companies and financial institutions to measure and integrate the value of
Platform to link business and biodiversity. nature into business practices.
The Global Links 21 national and regional initiatives, all working Increase the number of companies
Partnership for towards greater business engagement on biodiversity- with a significantly reduced negative
Business and related issues, so that they can share information and impact upon biodiversity (or even a
Biodiversity good practices, and cooperate on common projects. net-positive impact) and to mobilise
and enable them to act as positive
influencers upon other entities.
Act4nature An international alliance led by EpE under a multi- Aim to accelerate business action in
stakeholder steering committee. Act4nature has favour of nature and mobilise
CEO-level and SMART individual objectives for businesses companies to protect, promote and
to sign. restore biodiversity driven by
commitment from CEOs.
One Planet An international, cross-sectorial business coalition on Drive transformational systemic

Business for biodiversity with a specific focus on agriculture, launched change and catalyse action to protect
Biodiversity at the UN Climate Action Summit in 2019. and restore biodiversity within value
chains, engage institutional and
financial decision-makers, and
promote policy recommendations.
Finance for A biodiversity commitment pledge launched by 26 Reverse nature loss to ensure
Biodiversity financial institutions in 2020, which currently has 55 ecosystem resilience through
Pledge and signatories, representing over EURO 9 trillion in assets. commitments by global leaders to
Foundation restore and protect biodiversity
through finance activities and
investments in the run-up to COP 15.
Initiative Description Key aims

Finance4 A dual-purpose platform, established in 2019, To increase the materiality of
Biodiversity implementing its activities across five workstreams and biodiversity in financial decision-
Initiative making grants to support others to undertake work in making and to better align global
these areas. finance with nature conservation and
restoration.
The Align Project Funded by the European Commission, and led by WCMC To accelerate the natural evolution of
(Aligning Europe, the Capitals Coalition, Arcadis, ICF and UNEP- natural capital accounting
accounting WCMC, the Align project supports businesses, financial approaches, from guidance to
approaches for institutions and other stakeholders in developing standardisation, by developing a
standardised natural capital accounting practices, generally accepted set of methods,
nature)
including a standardised approach to biodiversity indicators and criteria for corporate
measurement. biodiversity measurement tools and
approaches, sector specific guidance
for site based, value chain and finance
sector companies and a standardised
approach to measure corporate
impacts and dependencies on
biodiversity.
The Transparent A collaboration between The Value Balancing Alliance, To help the private sector shift
Project the Capitals Coalition and the WBCSD to develop a set of towards a more sustainable financial
environmental generally accepted accounting principles. and economic system. by developing
a standardised natural capital
accounting and valuation
methodology that businesses can use
in their decision-making and external
disclosure.
The Biodiversity Initiated at the CBD COP 11 by UNDP and the European To demonstrate how nature-positive
Finance Initiative Commission, and now present in 40 countries, BIOFIN is economies can work for people and
working with governments, civil-society, vulnerable the planet.
communities, and the private sector to catalyse
investments in nature.
Appendix 8: Tools, models and frameworks supporting

the assessment and quantification of biodiversity impacts
Table 10. References: Adapted from Natural Capital Protocol Biodiversity Guidance; IUCN Guidelines for planning and monitoring corporate
biodiversity performance; EU Business @ Biodiversity Platform - Assessment of biodiversity measurement approaches for businesses and financial
institutions; UN WCMC – Biodiversity Measures for Business.
Tool / Approach Developer Description Sector

Biodiversity and International Sets out guidance for the oil and gas industry to assess Extractive industry
ecosystem Petroleum biodiversity and ecosystem services dependencies and
services Industry potential impacts.
guidance for the Environmental
oil and gas Conservation
industry Association and
International
Association of Oil
& Gas Producers
Biodiversity Plansup Calculates the impact of a company’s supply chain, Cross-sectoral
Footprint production processes and transport related to products.
Calculator
Biodiversity CREM, PRé Provides an overall biodiversity footprint of investments Cross-sectoral

Footprint Sustainability of a financial institution, including the calculation of
Financial environmental impact as well as the environmental
Institution footprint of investments within a portfolio.
Biodiversity UNEP-WCMC, Methodology that meets the needs of extractive Extractive industry
Indicators for Conservation companies in understanding their performance in
Site-Based International and mitigating their impacts on biodiversity.
Impacts Fauna and Flora
International
Biodiversity EU LIFE Food and Assesses site level supply chain biodiversity impacts by Food sector
Monitoring Biodiversity processing aggregated data sets. Includes 35 indicators
System covering the loss of biodiversity.
Biodiversity Newbold et al. Modelled (or expert-derived) species population Cross-sectoral

Intactness Index (2016) densities in different land-use intensities, weighted by
species richness for the ecoregion.
Maps can be downloaded from: https://data.nhm.ac.uk/
dataset/global-map-of-the-biodiversity-intactness-
index-from-newbold-et-al-2016-science
Biodiversity Acadis This accounting approach allows companies to verify Cross-sectoral
Net-Gain compliance with ‘No Net Loss’ and ‘Net Gain’ goals.
Calculator It aims to demonstrate the ‘Net Gain’ achieved through
insight to the land-use related biodiversity value at site
level considering extent, condition and significance (a
score between 0 and 1 is attributed by experts through
field survey assessments).
Biological Biodiversity Aligned with the Natural Capital Protocol, it enables Cross-sectoral
Diversity Disclosure Project organisations to identify, manage and report on their
Protocol and Endangered impacts in a standardised, credible and comparable
Wildlife Trust way through statements of biodiversity position and
performance.
Bioscope PRé Sustainability, Calculates supply chain impacts on biodiversity for Cross-sectoral
Arcadis and CODE commodities and resources purchased from 170 sectors
for a range of impact drivers using the ReCiPe method.
Cool Farm Tool Cool Farm Alliance Enables organisations to calculate the biodiversity Agriculture sector
footprint of products and supply chains.
Corporate Iceberg data lab Metric of corporate biodiversity impact that reflects the Cross-sectoral
extent to which ecosystems affected by a company’s
Biodiversity
business have been degraded from their pristine natural
Footprint state. The score factors in a company’s land-use, nitrogen
deposition, GHG emissions and release of toxic compounds.
Tool / Approach Developer Description Sector

Global CDC Biodiversité Enables users to audit entire companies or financial Cross-sectoral
Biodiversity assets for their impact on biodiversity using mean
Score species abundance.
GLOBIO model PBL Netherlands Aims to assess scenarios of human-induced changes in Cross-sectoral
Environmental biodiversity, including impacts as well as benefits and
Assessment future socio-economic scenarios.
Agency
IBAT Birdlife Provides access to data from three global biodiversity Cross-sectoral
International, databases to provide assessments of the proximity of a
Conservation site to a threatened species and important conservation
International, IUCN places. Utilises the STAR method.
and UNEP-WCMC
IFC cumulative International Good practice handbook outlining a six-step process to Cross-sectoral
impact Finance assist private sector companies in emerging markets to
assessment Corporation assess potential cumulative impacts and pressures.
LIFE key Life Institute Helps organisations to identify and evaluate their Cross-sectoral
impacts and design a strategic plan to reduce, mitigate
and compensate for them, including supply chain
impacts. The LIFE Biodiversity Estimated Impact Value
calculates and evaluates impact based on five
environmental aspects.
OPAL – Offset Stanford Quantifies the impacts of development on biodiversity Cross-sectoral

Portfolio University and ecosystem services, as well as the value of
Analyzer protection and identifies potential offsets.
Product I care Operates at a product level and uses lifecycle analysis Cross-sectoral
Biodiversity approaches to calculate the potential biodiversity
Footprint footprint of a product.
ReCiPe model RIVM, Radboud Life Cycle Impact Assessment methodology used to Cross-sectoral
University assess environmental impacts of economic activities
Nijmegen, Leiden (through their products and/or services) using 21
University and indicators, including biodiversity.
PRé Sustainability
Trase A partnership A supply chain mapping approach that uses publicly Cross-sectoral
between the available data to consumer markets to deforestation
Stockholm and other impacts.
Environment
Institute and
Global Canopy
Appendix 9: Databases that may be useful for

identifying risk areas (REQ-03), measuring impact
(REQ-04) or monitoring performance (REQ-05)
Table 11. Biodiversity-related databases.
Database Developer Description

Global Forest Watch Partnership convened by Online platform that provides data and tool for monitoring forests.
World Resources Institute
IUCN Red Lists IUCN Threatened Species: A comprehensive information source on the
(Threatened Species; global extinction risk status of animal, fungus and plant species,
Ecosystems) including information on range, population size, habitat and ecology,
use and/or trade, threats and conservation actions.
Ecosystems: Evaluation of the status of ecosystems based on
scientific assessments of the risk of ecosystem collapse (i.e.
collapsed, threatened at Critically Endangered, Endangered or
Vulnerable levels, of Least Concern).
The Living Planet ZSL and WWF Holds time-series data for over 27,000 populations of mammals,
Database birds, fish, reptiles and amphibian species around the world, which
are aggregated to produce indices on the state of biodiversity. Data
can be disaggregated for analysis of trends at different scales and
for different habitats.
International Wetlands International Provides population trend data for over 800 waterbird species and
Waterbird Census 2300 biogeographic populations worldwide.
Database
Global Biodiversity Global Biodiversity Provides historical trends in the occurrence of species.
Information System Information Facility
Ocean Data Viewer UNEP-WCMC Provides a range of spatial datasets on marine and coastal
biodiversity that are useful for informing decisions regarding the
conservation of marine and ocean ecosystems.
Integrated Birdlife International, Provides geographic information about global biodiversity (i.e.
Biodiversity Conservation World Database on Protected Areas, IUCN Red List of Threatened
Assessment Tool International, IUCN and Species, and the World Database of Key Biodiversity Areas) that
UNEP-WCMC support the assessment of priority areas and impact.
Appendix 10: Mapping of the Pathway approach

and DPSIR framework
Drivers Pressures State Impact Responses

e.g. land-use e.g. ecosystem e.g. decline of e.g. reputational e.g. management
planning use change, biodiversity, loss, fines, biodiversity
DPSIR
restrictions, resource change to species reduction in strategy, habitat

consumer exploitation, abundance availability of restoration, use
demand for pollution, climate or ecosystem natural resources of sustainable
natural resources change intactness resources
1. Measure 2. Measure 3. Value

Pathway
impact changes in biodiversity

drivers and the state of impacts and
dependencies biodiversity dependencies
REQ-06 REQ-02 REQ-04 REQ-03 REQ-01

REQ-04 REQ-04 REQ-02
REQs
REQ-06 REQ-05
REQ-06
Figure 10. Mapping of DPSIR (Driver-Pressure-State-Impact-Response) framework to Pathway approach (see Box 2) and CDSB requirements. References:
SBTN Guidance Updates, the Natural Capital Protocol and Environmental indicators: Typology and overview by the European Environmental Agency.
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harmonised biodiversity accounting approach for the
financial sector. Available from: https://www. 100. ACCA, KPMG and Fauna & Flora International (2012).
pbafglobal.com/files/downloads/PBAF_ Is natural capital a material issue? Available from:
commongroundpaper2020.pdf https://www.accaglobal.com/hk/en/technical-
activities/technical-resources-search/2012/november/
80. Ibid., 9.
is-natural-capital-a-material-issue.html
81. Ibid., 9.
101. CDP, CDSB, GRI, IIRC and SASB (2020). Reporting on
82. IUCN (2021). Crossroads blog - Tackling biodiversity enterprise value - Illustrated with a prototype climate-
loss to achieve green, resilient, and inclusive related financial disclosure standard. Available from:
development. Available from: https://www.iucn.org/ https://impactmanagementproject.com/structured-
crossroads-blog/202109/tackling-biodiversity-loss- network/global-sustainability-and-integrated-
achieve-green-resilient-and-inclusive-development reporting-organisations-launch-prototype-climate-
related-financial-disclosure-standard/
83. IPBES, IPCC (2021). Biodiversity and climate change
– Scientific outcome. Available from: https://ipbes.net/ 102. Capitals Coalition (2020). The Biodiversity Guidance
sites/default/files/2021-06/2021_IPCC-IPBES_ Navigation Tool. Available from:
scientific_outcome_20210612.pdf https://capitalscoalition.org/tools/navigation-tool/
84. Ibid., 22. 103. Whatling, D.R., Hedges, P., Brown, R., Fermor, P. (2010).
Corporate responsibility reporting of biodiversity in the
85. Ibid., 23.
supply chain. International Journal of Innovation and
86. Ibid., 20. Sustainable Development 5(1). Available from:
87. Herron, A. (2016). Pollinators as a portfolio risk: Making http://www.inderscience.com/offer.php?id=34557
the case for investor action. Chapter 7 in Atkins and 104. Atkins, J.F., Atkins, B.C. (eds.) (2016). The business of
Atkins, The Business of Bees: An Integrated Approach bees. An integrated approach to bee decline.
to Bee Decline and Corporate Responsibility, Greenleaf Greenleaf Publishers, Saltaire, UK. Available from:
Publishing, Saltaire, UK, pp.131–150. Available from: https://www.routledge.com/The-Business-of-Bees-
https://www.taylorfrancis.com/chapters/ An-Integrated-Approach-to-Bee-Decline-and-
edit/10.4324/9781351283922-16/pollinators-portfolio- Corporate/Atkins-Atkins/p/book/9781783534357
risk-making-case-investor-action-abigail-herron-aviva-
105. The CDSB Climate Application Guidance and Water
investors-uk
Application guidance include other resources under
88. Ibid., 21. REQ-01 that can be adapted and applied to
89. British Standard Institute (2021). BS 8632:2021 Natural biodiversity.
Capital Accounting for Organisations. 106. Ibid., 5.
90. Ibid., 3 107. Ibid., 3
91. Ibid., 19. 108. UNEP Finance Initiative (2021). ENCORE tool – United
Nations Environment. Available from: https://www. Conservation and Development. Available from:
unepfi.org/nature/exploring-natural-capital- https://www.conservationgateway.org/Documents/
opportunities-risks-and-exposure-encore-tool/ TNCApplyingTheMitigationHierarchy.pdf
109. Ibid., 3 132. Ibid., 130.
110. Ibid., 5. 133. IUCN (2017). Global database on biodiversity offset
policies launched: Preliminary analysis shows progress
111. Kristensen (2004). The DPSIR Framework.
in biodiversity-rich mining countries. Available from:
Available from: https://wwz.ifremer.fr/dce/content/
https://www.iucn.org/news/business-and-
download/69291/913220/.../DPSIR.pdf
biodiversity/201711/global-database-biodiversity-
112. European Environmental Agency (1999). offset-policies-launched-preliminary-analysis-shows-
Environmental indicators: Typology and overview progress-biodiversity-rich-mining-countries
(Technical report No 25). Available from: https://www.
134. Ibid., 130.
eea.europa.eu/publications/TEC25
135. Ibid., 3.
113. Ibid., 24.
136. Conservation Hierarchy. What is the mitigation &
114. Ibid., 24.
conservation hierarchy? Available from:
115. Ibid., 25. https://conservationhierarchy.org/what-is-
116. Gullison, R.E., J. Hardner, S. Anstee, M. Meyer. (2015). conservation-hierarchy/
Good Practices for the Collection of Biodiversity 137. Ibid.
Baseline Data - Prepared for the Multilateral Financing
138. Ibid., 118.
Institutions Biodiversity Working Group & Cross-Sector
Biodiversity Initiative. Available from: http://www.csbi. 139. OECD (2019). The post-2020 biodiversity framework:
org.uk/our-work/good-practices-for-the-collection-of- targets, indicators and measurability implications at
biodiversity-baseline-data/ the global and national level. Available from:
https://www.cbd.int/doc/c/0590/6ddd/
117. Ibid., 39.
ab6b9375338ff831dcf5541d/sbstta-23-inf-03-en.pdf
118. Science-Based Targets For Nature (2020).
140. Ibid., 118.
Initial Guidance for Business. Available from:
https://sciencebasedtargetsnetwork.org/wp- 141. Mace, G. M., et al. (2014). Approaches to defining a
content/uploads/2020/09/SBTN-initial-guidance- planetary boundary for biodiversity. Global
for-business.pdf Environmental Change, 28, 289-297. Available from:
https://www.sciencedirect.com/science/article/pii/
119. Ibid., 19.
S0959378014001368
120. Ibid., 96.
142. Ibid., 33.
121. Ibid., 5.
143. UNCEEA (2021). System of Environmental-Economic
122. Capitals Coalition (2020). Principles of Integrated Accounting—Ecosystem Accounting: Final Draft.
Capitals Assessments. Available from: Available from: https://unstats.un.org/unsd/
https://capitalscoalition.org/principles-of-integrated- statcom/52nd-session/documents/BG-3f-SEEA-
capitals-assessments/ EA_Final_draft-E.pdf
123. Ibid., 89. 144. Rosenzweig et al. (2008). Attributing physical and
124. International Integrated Reporting Council (2013). biological impacts to anthropogenic climate change.
International Framework. Available from: https:// Nature 453.7193 (2008): 353-357. Available from:
integratedreporting.org/resource/international-ir- https://www.nature.com/articles/nature06937
framework/ 145. Lewis, J. S., Farnsworth, M. L., Burdett, C. L., Theobald,
125. Ibid., 108. D. M., Gray, M., & Miller, R. S. (2017). Biotic and abiotic
factors predicting the global distribution and
126. IUCN. Species Threat Abatement and Restoration population density of an invasive large mammal.
(STAR) metric. Available from: https://www.iucn.org/ Scientific Reports, 7(1), 1-12. Available from: https://
resources/conservation-tools/species-threat- www.nature.com/articles/srep44152?error=cookies_
abatement-and-restoration-star-metric not_supported&code=c1abf4c8-6cd6-475a-8126-
127. IBAT Alliance. Integrated Biodiversity Assessment Tool. 004a93bd828f
Available from: https://www.ibat-alliance.org/ 146. Stohlgren, T. J., & Schnase, J. L. (2006). Risk analysis for
128. Swiss Re (2020). Biodiversity and Ecosystems Services biological hazards: what we need to know about
Index: measuring the value of nature. Available from: invasive species. Risk Analysis: An International Journal,
https://www.swissre.com/publication-form. 26(1), 163-173. Available from: https://onlinelibrary.wiley.
html?t=1715&id=fa67fe8d-0f2c-49fb-b3c6- com/doi/full/10.1111/j.1539-6924.2006.00707.x?casa_
a2002906ab55#PublicationForm token=Fr0vYC5WyVEAAAAA%3ABpnMu0D
DU_Lanjm4z4QJyAiYqXAQR8ACBgbULWPTdfQng-
129. Ibid., 108.
KgtktJsyLc8EIUVl_j6HmPbMfrXNWmK
130. BBOP (2012). Resource Paper: No Net Loss and
147. UNDRR (2021). Hazard. Available from:
Loss-Gain Calculations in Biodiversity Offsets.
https://www.undrr.org/terminology/hazard
Available at: https://www.forest-trends.org/
publications/resource-paper-no-net-loss-and-loss- 148. CERES (2019). Investors Water Toolkit - Understanding
gain-calculations-in-biodiversity-offsets/ water risks. Available from: https://www.ceres.org/
resources/toolkits/investor-water-toolkit
131. The Nature Conservancy (2015). Achieving
149. IPBES (2016). The methodological assessment report fluxes in terrestrial ecosystems. Available from:
on scenarios and models of biodiversity and https://www.ipcc.ch/srccl/
ecosystem services. Secretariat of the
171. IPBES. Climate change and land-use impacts on
Intergovernmental Science-Policy Platform on
pollinators and pollination. Available from:
Biodiversity and Ecosystem Services. Available from:
https://ipbes.net/policy-support/case-studies/climate-
https://ipbes.net/assessment-reports/scenarios
change-land-use-impacts-pollinators-pollination
150. Ibid., 39.
172. Hof et al. (2018). Bioenergy cropland expansion may
151. Ibid., 118. offset positive effects of climate change mitigation for
global vertebrate diversity. Proceedings of the National
152. Ibid., 19.
Academy of Sciences, 115(52), 13294-13299. Available
153. Ibid., 96. from: https://www.pnas.org/content/115/52/13294
154. Ibid., 3 173. Here an example: Schipper et al. (2020). Projecting
155. Ibid., 3 terrestrial biodiversity intactness with GLOBIO 4.
Global change biology, 26(2), 760-771.
156. Ibid., 3 Available from: https://onlinelibrary.wiley.com/doi/
157. Deiner, K., Bik, H.M., Mächler, E., Seymour, M., full/10.1111/gcb.14848
Lacoursière-Roussel, A., Altermatt, F. et al. (2017). 174. GLOBIO (2021). Global biodiversity model for policy
Environmental DNA metabarcoding: Transforming support. Available from: https://www.globio.info/
how we survey animal and plant communities. what-is-globio
Molecular Ecology, 26(21): 5872- 5895. Available from:
https://doi.org/10.1111/mec.14350 175. Natural Capital Project. InVEST (Integrated Valuation
of Ecosystem Services and Tradeoffs). Available from:
158. Stephenson, P.J. and Carbone, G. (2021). Guidelines https://naturalcapitalproject.stanford.edu/software/
for planning and monitoring corporate biodiversity invest
performance. Gland, Switzerland: IUCN.
Available from: https://portals.iucn.org/library/sites/ 176. Ibid., 149.
library/files/documents/2021-009-En.pdf 177. Johnson, J.A., Baldos, U., Hertel, T., Liu, J.,
159. DELWP Victoria State (2004). Habitat Hectare Nootenboom, C., Polasky, S., and Roxburgh, T. (2020).
Assessment – Fact Sheet. Available from: Global Futures: modelling the global economic
https://www.environment.vic.gov.au/__data/assets/ impacts of environmental change to support policy-
pdf_file/0023/48542/Habitat-Hectare-Assessment- making. Technical Report, January 2020.
fact-sheet_Feb-2016.pdf Available from: https://www.wwf.org.uk/globalfutures
160. Ibid., 3 178. Ibid., 1.
161. Houdet, J., Ding, H., Quétier, F., Addison, P., & 179. Ibid., 99.
Deshmukh, P. (2020). Adapting double-entry 180. Ibid., 101.
bookkeeping to renewable natural capital: An
application to corporate net biodiversity impact
accounting and disclosure. Ecosystem Services, 45,
101104. Available from: https://www.sciencedirect.
com/science/article/abs/pii/
S2212041620300462?via%3Dihub
162. Brown et al. (2014). Measuring ecosystem services:
Guidance on developing ecosystem service indicators.
UNEP-WCMC, Cambridge, UK. Available from:
https://www.unep-wcmc.org/system/dataset_file_
fields/files/000/000/303/original/1850_ESI_
Guidance_A4_WEB.pdf?1424707843
163. Ibid., 5.
164. Ibid., 162.
165. Ibid., 5.
166. Ibid., 5.
167. Ibid., 9.
168. Ibid., 83.
169. Pörtner et al. (2021). IPBES-IPCC co-sponsored
workshop report on biodiversity and climate change.
Available from: https://ipbes.net/sites/default/
files/2021-06/20210609_workshop_report_
embargo_3pm_CEST_10_june_0.pdf
170. Shukla et al. (2019). IPCC, 2019: Climate Change and
Land: an IPCC special report on climate change,
desertification, land degradation, sustainable land
management, food security, and greenhouse gas
With the contribution
of the LIFE Programme
of the European Union.
This publication was funded Project hosted by

in part by the Gordon and CDP Europe.
Betty Moore Foundation.
Contact
CDSB Secretariat
Funding for this research was www.cdsb.net
provided by UK PACT Green [email protected]
Recovery Challenge Fund. @CDSBGlobal

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CDSB Framework

• Siobhan Cleary, Science Based Targets • Jonas Rooze, BloombergNEF

• Rosie Dunscombe, Independent • Robyn Seetal, IkTaar Sustainability

• Rob Evans, Earth Active • Viera Ukropcova, CDP

• John Finisdore, Point Advisory • Gabriel Thoumi, CFA, FRM, Certified

• REQ-03 Risks and opportunities • Ecosystem: A dynamic complex of plants,

i Mainstream reports (e.g. general purpose financial report and

ii Adapted from: Capitals Coalition (2016) Natural Capital Protocol.

CDSB Framework for Application guidance

Biodiversity-climate nexus Biodiversity-water nexus

Application guidance Application

3. Mainstreaming biodiversity climate change, there is a growing awareness of

iv For example, EU initiatives related to the Corporate Sustainability

v For example, Walmart has committed to help protect, manage or

1. The importance of 12) and climate action (SDG 13). Biodiversity is

Box 1: Ecosystem services and biodiversity

viii For example, existing definitions and groupings are: Millennium

Box 2: Business drivers of biodiversity loss

Influencing Biodiversity impact drivers Changes to the

2. Business and biodiversity population size) can be used to signal changes in

Biophysical structure or process changes to

(e.g. saltmarsh habitat, net primary productivity)

• Market • Financial incentives

Revenues Assets and Liabilities

Expenditures Capital & Financing

ENGAGEMENT and COLLABORATION

pressure from financial institutions and consumers The organisation should:

1.3 Disclosing information where significant risks or opportunities relate to

as well as on the assessment of impacts or should be formulated and positioned in a way to

xxv E.g. referring to British Standard Institute (2021). BS 8632:2021

Through- NO Is your organisation measuring, YES

NO Are there YES

Quantify biodiversity-related risks and opportunities in the

3. Biodiversity for major strategic decisions. For instance, what

In setting out the governance and management

To demonstrate that appropriate organisational 3. Stakeholder engagement and cooperation

• How are biodiversity-related risks and Among stakeholders, engagement and

REQ-02 1. Providing the context for biodiversity

Box 3: Assessment approaches

xxix See Biological Diversity Protocol for further details. Endangered

• Capitals Coalition (2016) Natural Capital Protocol. Available from: https://naturalcapitalcoalition.org/natural-capital-protocol/,

Box 4: Biodiversity Footprint assessment

understanding of the relationships between products/services that are priorities to the

Priority element Considerations Useful details or indicators to disclose

Priority element Considerations Useful details or indicators to disclose

2. Policies and strategies It is recommended that strategies and policies

Examples of policies include commitments operations/value chain and geographic context.

A summary of management responses should 2. Reduce biodiversity impacts as far as possible;

Management response Inter- Exter- Value chain Level Possible mitigation

xxxix For further details on ecological equivalency, please refer to the

Management response Inter- Exter- Value chain Level Possible mitigation

Management response Inter- Exter- Value chain Level Possible mitigation

xl Science Based Target Network. Available from:

encouraged for organisations.139 The SBTN As an organisation progresses with its

Due to the variability of biodiversity impacts

REQ-03 risks and opportunities, organisations may find it

Sources of biodiversity-related business risks Financial risks for the business

Ocean acidification (due to industrial waste or BD

Overfishing and bycatch B E FES

Land loss to desertification and soil BD