Mainstreaming the Topic of Biodiversity in Corporate Sustainability Management - Experience and Recommendations from the 'Biodiversity in Good ...

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Mainstreaming the Topic of Biodiversity in Corporate Sustainability Management - Experience and Recommendations from the 'Biodiversity in Good ...
Mainstreaming the
Topic of Biodiversity in Corporate
Sustainability Management
Experience and Recommendations from
the ‘Biodiversity in Good Company’ Initiative
Mainstreaming the Topic of Biodiversity in Corporate Sustainability Management - Experience and Recommendations from the 'Biodiversity in Good ...
©Arigatou Gozaimasu /Shutterstock

 O      ur natural capital is under pressure: the loss of
        biodiversity is continuing at alarming speed – with
  regionally very strongly differentiated consequences.
                                                               worldwide in 2015. The interim balances conclude
                                                               that the targets set so far will be missed by a long way
                                                               if much more ambitious steps are not implemented.
                                                                                                                              tioning ecosystems in all critical sectors and policies –
                                                                                                                              is therefore the topic of the 13th Conference of the
                                                                                                                              Parties to the CBD in December 2016 in Cancún, Mexico.
                                                                                                                                                                                          particular, we call on companies to integrate biodi-
                                                                                                                                                                                          versity within their business activities and actions, and
                                                                                                                                                                                          to provide an insight into success factors, as well as
  This is associated with high risks because human well-                                                                                                                                  challenges in their effective realisation.
                                                               One of the reasons: Unlike other political, societal and       Businesses are indispensable players in all sectors, and
  being is existentially reliant on intact ecosystems. Bio-
                                                               business interests, biodiversity goals still frequently have   must help find solutions within their scopes of action.
  logical diversity is both part of our “natural capital” as
                                                               little clout in evaluation and decision making processes.      Mainstreaming is therefore also important in compa-          The ‘Biodiversity in Good Company’ Initiative was
  well as the prerequisite for numerous ecosystem services.
                                                               This concerns basic questions of policy development            nies and industry decision-making processes. What            founded in 2008 as a pan-sectoral excellence initiative
  The current strategies for the preservation and sustain-     and control in a number of policy areas: such as               prerequisites and agendas need to be set for this            of companies committed to the preservation and sus-
  able use of biodiversity on a national and international     agriculture and forestry, future housing and transport         mobilisation to succeed? As the ‘Biodiversity in Good        tainable use of biodiversity as part of their corporate
  level are aimed at the year 2020. Within the frame-          development, energy and climate policy, resource               Company’ Initiative, we are using CBD-COP 13 as a            strategies. The aim is to raise the awareness of busi-
  work of the Convention on Biological Diversity (CBD),        and raw materials strategies, marine policy, and the           trigger to compile our experience and recommen-              nesses and industry as a whole for their responsibility,
  the international community agreed on a strategic            financing of global nature conservation and biodiver-          dations. We focus our attention on decision makers in        and to strengthen biodiversity as a management
  plan and 20 objectives in 2010: the Aichi Targets.           sity protection. “Mainstreaming biodiversity” – taking         companies, politics and society who play a part in           issue. We speak from the perspective of companies
  A number of important half-life evaluations took place       into consideration the values of biodiversity and func-        reaching the ambitious Aichi targets in joint efforts. In    working in the industrial, trading and service sectors.

2 | Introduction                                                                                                                                                                                                                              Introduction | 3
Mainstreaming the Topic of Biodiversity in Corporate Sustainability Management - Experience and Recommendations from the 'Biodiversity in Good ...
At a glance: Summary                                                                                                          Our core beliefs
  As the ‘Biodiversity in Good Company’ Initiative, our          Political support for corporate action                        Progressing by setting a good example                        dialogue with all societal stakeholders. In particular,
  ambition is to raise the awareness of companies for the                                                                                                                                   we want to set good examples ourselves and motivate
                                                                 Political decision makers can integrate business players
  importance of biological diversity world-wide. Against                                                                       The ‘Biodiversity in Good Company’ Initiative forms a        other companies to join in. The objectives can only be
                                                                 more specifically than at present. The national and
  the background of CBD-COP 13, we have summarised                                                                             cross-section through a number of sectors, and stands        achieved through joint innovations and investments.
                                                                 international biodiversity targets can only be achieved
  our view of how this topic can be advanced further.                                                                          for the message that the protection and sustainable          Via their activities, companies can play a part in raising
                                                                 by mainstreaming biodiversity via the integration of
                                                                                                                               use of biodiversity is of existential importance, and        awareness externally and internally, and can roll out a
    Our work is based on the core beliefs, which                 biodiversity targets in sector policies. The willingness
                                                                                                                               that businesses must play their part in safeguarding         comprehensive process of promoting awareness and
  we wish to pursue by setting good examples and in              of downstream sectors to make the necessary moves is
                                                                                                                               biodiversity. Industry shares responsibility for the rapid   the self-regulation of industry. As members of the
  recognition of the planetary limits – because nature           influenced by whether these sectors recognize a political
                                                                                                                               disappearance of biological diversity, but also has          ‘Biodiversity in Good Company’ Initiative, we voluntarily
  conservation demands action beyond the boundaries              will to act by taking effective measures in key sectors,
                                                                                                                               the potential to develop and implement effective             take on responsibility as front runners, and have signed
  of protected areas. We wish to strengthen biodiversity         such as agriculture. New legal possibilities for „temporary
                                                                                                                               measures to stop this effect. We actively take part in       a Leadership Declaration on biodiversity:
  as a management topic, taking into consideration the           nature” could also open up new potential. In addition,
  whole value chain, and set the course for sustainable          public procurement is another strong lever at the
  consumption.                                                   disposal of policy makers.

     We share our experience and estimates of what               Make visible and honour the value
                                                                                                                                   Leadership Declaration
  has been achieved so far:                                      of natural life support systems
                                                                                                                                   All signatory companies acknowledge and support the three objectives
  The breadth of the debate has helped raise the aware-
                                                                 It makes sense to get across the biodiversity targets using       of the international “Convention on Biological Diversity”:
  ness of the problems and increased the willingness of
                                                                 the natural capital and ecosystem services approach,
  industry to act. Unlike only a few years ago, compa-
                                                                 and to use these arguments to strengthen the targets.             • Conservation of biological diversity
  nies are now better able to understand which parts of
  their business activities they have to address in terms
                                                                 The „valorisation“ of biological diversity should be              • Sustainable use of its components
                                                                 intensified at a macroeconomic and corporate level.               • Fair and equitable sharing of the benefits that arise
  of biodiversity management in order to make a diffe-
                                                                 Changing direction could be speeded up significantly                out of the utilization of genetic resources.
  rence. Land use along the whole supply chain has
                                                                 by more signals coming from the financial sector.
  been identified as a key factor here, and therefore
  needs to be considered as a priority as a cause of the                                                                              and commit themselves to:
  loss of biodiversity. However, the absence of valorisa-        Improved data availability and
                                                                 decision-making expertise                                         1. Analyzing corporate activities with regard to their impacts on biological diversity;
  tion and incentives, as well as gaps in knowledge and
  databases, are a hindrance, and limit the room for             Collecting data and making it accessible is still a               2. Including the protection of biological diversity within their environmental management system;
  manoeuvre in companies as well.                                challenge. Investments in science and research should
                                                                                                                                   3. Appointing a responsible individual within the company to steer all activities in the
                                                                 foster risk and consequences research, and distributing
    Our recommendations for mainstreaming the                                                                                         biodiversity sector and report to the Management Board;
                                                                 the findings in an appropriate way for the target
  topic of biological diversity in the business sector:
                                                                 groups. In addition, better interfaces are required               4. Defining realistic, measurable objectives that are monitored and adjusted
  More business self-initiative is possible and necessary        to express the scientific findings on biological diversity           every two to three years;
                                                                 so that they are more easily understandable, and help
  This involves integrating biodiversity within sustainability                                                                     5. Publishing activities and achievements in the biodiversity sector in the company’s annual,
                                                                 politicians and company representatives to make better
  management, communications and reporting, and to                                                                                    environmental, and/or corporate social responsibility report;
                                                                 informed decisions.
  play a bigger role in societal and political dialogue.
                                                                                                                                   6. Informing suppliers about the company’s biodiversity objectives and integrating
  Business associations should make use of their oppor-
                                                                 Strengthen biodiversity as a topic of more                           suppliers accordingly and step by step;
  tunities to act as multipliers. Many sectors have direct
                                                                 comprehensive sustainable development
  and indirect influences. Sector-specific approaches are                                                                          7. Exploring the potential for cooperation with scientific institutions, non-governmental
  required. Joint activity is needed to establish a better       The 2030 Agenda for Sustainable Development provides                 organizations (NGOs) and/or governmental institutions with the aim of deepening dialogue and
  knowledge base, good practise and standards along              an excellent opportunity of seeing biodiversity even                 continuously improving the corporate management system vis-à-vis the biodiversity domain.
  the whole of each value chain. Despite the enormous            more strongly within the overall context of sustainable
  complexity of the challenges involved, there are still         development, and therefore to also reach economic                    To demonstrate ongoing commitment, member companies will provide the Initiative with a
  numerous opportunities for low-level action, as well           players more intensely than today. This requires open-               progress report every two years. Have a look at the member companies‘ progress reports under
  as many means of becoming socially involved.                   ness for a critical look at consumption and lifestyles.              http://www.business-and-biodiversity.de/en/about-us/members/progress-reports/

4 | Summary                                                                                                                                                                                                                             Our core beliefs | 5
Mainstreaming the Topic of Biodiversity in Corporate Sustainability Management - Experience and Recommendations from the 'Biodiversity in Good ...
© Atropos Images/Fotolia                                                                                                            © srckomkrit /Fotolia

  Accepting planetary limits
  Our understanding of sustainability includes accepting
                                                               Strengthening management
                                                               and taking into consideration                                      Where we stand:
  planetary limits. Economic and social targets for
  sustainable development and productivity can only be
                                                               the whole value chain
                                                               It is crucial for industry and each economic sector to
                                                                                                                                  Experience and progress so far
  achieved within the limits of the ecological capacity of     develop their own management approaches, and
  the earth. Ecosystems are efficient and adaptable, but       measurement and control instruments, to enable                     The awareness and willingness of                           The efforts involved in protecting biological diversity are
  there is a limit to what they can tolerate. The innovative   companies to make an effective contribution to the                 business to act have grown                                 closely associated with strategies to preserve natural
  power of businesses is indispensable in the search           protection of biodiversity. The aim here is to apply the                                                                      capital and ecosystem services. The ecosystem services
                                                                                                                                  Many developments reveal a growing awareness of
  for new solutions for sustainable consumption and            leverage available at the locations as well as within                                                                         approach has proven to be an important argument
                                                                                                                                  the problem that something must be done to reduce
  production patterns.                                         the value chains. Beyond taking action in the business                                                                        for winning over hearts and minds. It embodies the
                                                                                                                                  the pressure on natural life support systems. Nature
                                                               models, companies can support nature conservation                                                                             perspectives of human wellbeing as well as economic
                                                                                                                                  and species conservation has already been a relevant
  Taking action beyond protected areas                         projects in a wide variety of ways as part of their social                                                                    benefits. High levels of biodiversity are an important
                                                                                                                                  topic for many decades in some sectors, such as the
                                                               commitment.                                                                                                                   prerequisite for the effectiveness and resilience of nature.
  More than 80 % of the earth’s surface does not enjoy                                                                            pit & quarry industry. Since the CBD conferences in
  protected area status, and this situation is very likely                                                                        Germany (2008) and Japan (2010, strategic plan             The issue needs a great deal of staying power because
                                                               Strengthening sustainable
  to remain unchanged in future as well. Biodiversity                                                                             adoption), as well as the CBD obligations for national     its many facets make it difficult to become incorporated
                                                               consumption
  can only be effectively preserved when the room for                                                                             biodiversity strategies, there has been a much more        within business processes. But the first buds of success
  manoeuvre of industry and society in all the “normal         We hope and trust in a growing demand from con-                    intense dialogue with and within industry. National and    are already visible: via public relations measures – in which
  areas” has been harnessed to the full. This involves         sumers for sustainable, biodiversity-friendly products             international platforms have been created: such as the     we also play a part as a network – many sectors are
  sustainable land use in all land forms, limits to emis-      and services. We want to play a part in establishing               ‘Biodiversity in Good Company’ Initiative; the German      increasingly looking at their roles. A crucial success
  sions, more efficiency and effectivity in the utilisation    frameworks for promoting more sustainable consump-                 business association platform “Enterprise Biological       factor is customised and convincing information which
  of raw materials and natural resources – e. g. within a      tion, and are ambitious about developing an attractive             Diversity 2020” (UBi 2020); the EU Business@Biodiversity   elaborates the relevance for a company’s own business
  recycling economy – and treating nature in an environ-       range of products and services.                                    Platform; and the CBD Global Partnership for Business      model – a business case – and highlights what companies
  mentally-friendly manner overall.                                                                                               and Biodiversity.                                          can do specifically within their own sectors.

6 | Our core beliefs                                                                                                                                                                                                                        Where we stand | 7
Mainstreaming the Topic of Biodiversity in Corporate Sustainability Management - Experience and Recommendations from the 'Biodiversity in Good ...
The options for companies to take                               to tackle the threats to biodiversity. In other words, to      The room to manoeuvre is limited by                            remains open however, to what extent the knowledge
  action in the cross-cutting issue that is                       reduce known negative influences on biological diversity,      the lack of valuations and incentives                          which has been gained will become really effective
  biodiversity are better understood                              and / or to strengthen the positive effects.                                                                                  in future as regards the development of legislation,
                                                                                                                                 Where the productivity of nature is used, it is often the      business standards, and planning approaches, as well
  Biodiversity is species diversity, habitat diversity, genetic   Via the approaches they take, the member companies of          so-called provisioning services of ecosystems – nature         as taxation and other incentives.
  diversity – nature with all of its intrinsic dynamics.          ‘Biodiversity in Good Company’ exemplarily demonstrate         as a provider of nutrition, energy and raw materials –
  Significant progress has been made in recent years in           how to address their individual material issues and            that are prioritised at the expense of other ecosystem
                                                                                                                                                                                                Pro-nature investment decisions need
  presenting these complex challenges to make them                areas of action – paying tribute to direct and indirect        services. Supporting services (e.g. soil formation, nutrient
                                                                                                                                                                                                good knowledge and databases
  more understandable for businesses, to break them down          influences, dependencies, opportunities and risks. The         cycles), regulation services (e.g. for climate, air, water
  into practical approaches which can be implemented,             expertise on how the cross-cutting issue of biodiversity       balances), and cultural services (leisure function,            No one disputes the huge gaps in our knowledge
  and thus to integrate them within sustainability man-           can be embedded in environmental and sustainability            aesthetic aspects) are often public goods. As such,            about the valuation, functional relationships, status
  agement.                                                        management has grown significantly, without it having          they cannot be traded on markets, have no price, and           and trends of biological diversity – and particularly also
                                                                  been standardised however – insofar as standardisation         thus are undervalued both in terms of their economic           the consequences of its loss. Analogous to climate
  A crucial factor here has been to more clearly highlight
                                                                  is even possible given the individual nature of the            benefits, as well as for their significance for human          change, many risks are difficult to calculate, such as the
  the cross-cutting character of „biodiversity as a man-
                                                                  conditions involved in each case. The periodic, publicly       wellbeing. The consequences are external effects:              reaching of so-called tipping points which mark the start
  agement topic“. It has also been clearly demonstrated
                                                                  accessible progress reports issued by the companies            ecological damage which is not costed into decisions,          of the irreversible disruption of ecological systems.
  that biodiversity cannot be visualised in simple input-out-
                                                                  provide an insight into the solutions, parallels and           so that prices do not speak the “ecological truth”. There
  put metrics for corporate management, and in the                                                                                                                                              Where there is uncertainty about the significance of
                                                                  differences.                                                   is a disparity between private and social costs and
  same way, cannot be reflected by a single metric or                                                                                                                                           the loss of biodiversity and ecosystem services for
                                                                                                                                 benefits, or they are not considered in their shared
  control parameter.                                                                                                                                                                            human wellbeing, this obviously makes decision making
                                                                  Land utilisation along the value chain                         context. From an overall economic perspective, state
                                                                                                                                                                                                on investments in the sense of “ecological insurance”
  In reality, it involves a mix of approaches covering            identified as a key factor                                     intervention is required if the failure of the markets
                                                                                                                                                                                                more difficult. The intrinsic values of nature are often
  environmental and climate protection, combined with                                                                            is to be eradicated with respect to the provision of
                                                                  Biodiversity requires space and habitats, and is                                                                              not strong enough as an argument. The willingness to
  other nature protection measures in the form of habitat                                                                        public goods.
                                                                  threatened by the deterioration and fragmentation of                                                                          pay in the short term for a benefit whose probability
  conservation (as well as habitat re-establishment or
                                                                  these habitats. Area use, the high pressures on land,          Companies as well can only harness the maximum                 is uncertain, and which lies in the future, is restricted.
  even multiplication). This mix is used to tackle the five
                                                                  and global soil and land use patterns (e. g. intensive         room for manoeuvre for sustainable development that            An important aspect here is that when nature is harmed,
  main causes of the loss of biodiversity:
                                                                  agriculture, monocultures, certain types of natural            competitive and market conditions allow. Enabling              the beneficiaries and sufferers are often not identical.
  •   Destruction / disruption of habitats                        resource extraction, etc.) are extremely significant for the   the external costs of the decline in biodiversity to be
                                                                                                                                                                                                The companies in the ‘Biodiversity in Good Company’
      (by changed use of land and water)                          “biodiversity footprint” of companies in many sectors.         incorporated in overall political decisions, as well as in
                                                                                                                                                                                                Initiative consider it to be prudent to act according
  •   Environmental pollution                                                                                                    the costings of individual businesses, requires the
                                                                  This is the reason why – in addition to the land swallowed                                                                    to the precautionary principle, even when there are
      (emissions, nutrient immissions …)                                                                                         existence of adequate incentives which honour this
                                                                  up by human settlements and transport – the produc-                                                                           uncertainties involved, because this is necessary when
                                                                                                                                 accordingly, and also legal minimum standards to
  •   Climate change                                                                                                                                                                            dealing with many complex situations. Moreover,
                                                                  tion of natural resources in the primary sector, and           avoid competitive distortion. High utilisation and target
  •   Overexploitation of natural resources                       particularly in agriculture, is in the centre of attention.                                                                   adequate information is available in many cases to
                                                                                                                                 conflicts can only be resolved by value judgements
  •   Spread of invasive non-endemic species.                     The strategies of companies, as well as policy makers,                                                                        differentiate in principle between good practise and
                                                                                                                                 from society as a whole, which define the direction to
                                                                  are increasingly focusing on pulling these levers.                                                                            not such good practise. Nevertheless, companies alone
                                                                                                                                 be taken, and the existence of coherent political
  The actual measures which are ultimately of importance                                                                                                                                        cannot develop the scientific basis and overriding
                                                                                                                                 frameworks.
  vary from sector to sector. Biodiversity also necessitates      For those businesses working in the industrial, trading                                                                       protection goals needed for the necessary regionally
  spatially-differentiated action. The complexity of many         or service sectors, which not do primarily use land            The international and national TEEB studies (The               differentiated measures, nor is it their responsibility to
  global supply chains means that when companies                  themselves, biodiversity is mainly a challenge within          Economics of Ecosystems and Biodiversity) have                 compensate for the general data shortages.
  configure their measures, they can only in a few                the context of their supply chains. They are increas-          contributed to making the benefits of biodiversity and
  instances evaluate the biodiversity in the specific             ingly analysing their value and supply chains, and             certain ecosystem services, as well as the costs of their
  location, and identify the specific interactions with           configuring the measures along the context of the              loss, more visible economically. The Intergovernmental
  their own business activities. The most practical approach      raw materials and natural resources they require, e. g.        Science-Policy Platform on Biodiversity and Ecosystem
  is therefore often to use existing data and research in         by supporting sustainable land use by using and                Services (IPBES) established in 2013, is also a step on
  collaboration with partners along the supply chains,            promoting certificates and standards.                          the path to more knowledgeable decision making. It

8 | Where we stand                                                                                                                                                                                                                           Where we stand | 9
Mainstreaming the Topic of Biodiversity in Corporate Sustainability Management - Experience and Recommendations from the 'Biodiversity in Good ...
Do better – recommendations for                                                                                          chains. Alliances along these value chains are required
                                                                                                                            for effective action: companies acknowledge respon-
                                                                                                                                                                                          Using the opportunities of
                                                                                                                                                                                          low-level measures
                                                                                                                            sibility in the supply chain when they take an interest
   mainstreaming the topic of biological                                                                                    in what happens during primary production in the
                                                                                                                            fields, in the woods, in the quarries, and in the waters
                                                                                                                                                                                          The question of feasibility and resources is an issue for
                                                                                                                                                                                          small and medium-sized enterprises (SME) in particular.

   diversity in business                                                                                                    – and work towards biodiversity-friendly production
                                                                                                                            conditions within the bounds of their possibilities.
                                                                                                                                                                                          Moreover, they only have limited ability to exert an
                                                                                                                                                                                          effective influence, especially along the supply chains.
                                                                                                                                                                                          Nevertheless, low-level measures exist, and this applies
                                                                                                                            Businesses should also seek access to this issue for
                                                                                                                                                                                          to SMEs just as much as it does to large companies.
                                                                                                                            their own benefits as well. The key aspect in this
   To more intensely anchor the needs of biodiversity and the valuation of natural capital                                                                                                Instead of launching a comprehensive strategy, com-
                                                                                                                            context is analysing the company’s own risks and its
   into business decision-making processes, it is necessary for initiatives promoted by industry                                                                                          panies can enter at a low level with specific aspects,
                                                                                                                            dependency on natural capital. Ideally it may also be
   to mesh more tightly with the conditions created by policy makers and society overall:                                                                                                 e. g. by focusing on possible influences on biodiversity
                                                                                                                            possible to elaborate concrete economic benefits.
                                                                                                                                                                                          hot spots, protected areas, particularly valuable habi-
                                                                                                                                                                                          tats, and protected species. Entry is also possible on a
                                                                                                                            Better knowledge base, establishing                           company’s own premises. And when it comes to the
                                                                                                                            good practise and standards                                   influence on the supply chain, it is often possible to
    1 More proactive initiative from business is possible and necessary                                                     Exchanging knowledge in sectors and along value
                                                                                                                                                                                          identify particularly critical natural resources, if not
                                                                                                                                                                                          obvious anyway, by a screening of procurement data.
                                                                                                                            chains plays a key role. More knowledge transfer and
   Integrating biodiversity in sustain-                        diversity and ecosystem services, and make clear how         bundling are required for the scaling of tried-and-test-
                                                                                                                                                                                          Grasp opportunities for
   ability management, communication                           closely these are associated with economic welfare           ed methods and measures. The development of good
                                                                                                                                                                                          social involvement
   and reporting                                               and human wellbeing.                                         practise, and ideally, also suitable indicators for various
                                                                                                                            natural resources and types of land use are priorities        Social involvement for nature conservation is not a sub-
   The preservation and sustainable use of biodiversity                                                                     here. However, most players are still right at the start      stitution for acting responsibly in one’s core business
                                                               Mobilising business
   should be a firm part of the core business, communi-                                                                     of their learning curves, and standardised indicators are     activity, but it does supplement it effectively. Protecting
                                                               associations as multipliers
   cation with consumers and other stakeholders, as well                                                                    difficult to develop. Incentives to motivate individual       nature, biodiversity and individual ecosystems costs
   as the reporting of all companies where it has a signifi-   In their role as multipliers, business associations are an   companies to proceed voluntarily are largely absent.          money, which is not available from the public purse
   cant influence. Biodiversity is best understood here as     important engine for competence development and              This is why the associations also have an important           alone. Support from businesses in the private sector
   a cross-cutting issue. It encompasses measures involving    raising general awareness of sector commitments. It          supporting function here as well. Amongst other               therefore often makes a valuable contribution to
   environmental and climate protection, combined with         is time for the associations to become more involved         things, they can help speed up the transport of the           financing, and can even be essential to make projects
   special nature conservation measures aimed at conserv-      in the national and international biodiversity goals         findings from research projects in the various sectors        viable in the first place, even though this should not
   ing or improving habitats, as well as the sustainable       and to support their members in the elaboration and          to the grass roots.                                           diminish the responsibility of the state.
   use of natural resources. Identifying the main issues in    implementation of respective strategies, for instance
   each case by way of a materiality analysis is a company     by establishing platforms for information and show-
   and sector-specific job. The importance of preserving       casing projects.
   natural life support systems needs to be understood as
   a key argument for ambitious environmental protection.      Recognising pan-sectoral                                     2 Political support for corporate action
                                                               responsibility – sector-specific action
   Engaging in social and political dialogue
                                                               Sectors which have a direct impact on landscapes and         Integrating business players                                  Biological Diversity 2020” in Germany, offer numerous
   Various decisions on the topic of “Business Engage-         habitats themselves, mainly primary industry, have a         in a target-group-centric way                                 approaches for actively incorporating businesses and
   ment” within the CBD speak directly to industry as a        direct influence on biodiversity. In the case of all other                                                                 sectors in their implementation, and to benefit from
   key player. Business should be involved in the dialogue     companies, the main challenges are found in the              To harness the potential of corporate action, companies       their innovation potential and power to get things done.
   more intensively than it has been in the past, and help     supply chains. This means that their responsibility is       need to have a good understanding of what overall             All of the parties to the CBD should harness these possi-
   establish or use the platforms required for this purpose.   connected to that of the primary sector – because the        political objectives specifically mean for their own areas    bilities, and also sustainably support the Global Partner-
   The United Nations’ new Sustainable Development             impact on the natural world arises from the production       of influence and contributions. CBD, as well as national      ship for Business and Biodiversity, whose establishment
   Goals (SDGs) underline the CBD’s objectives on bio-         of natural resources and services in the various value       programmes and strategies, for example “Enterprise            was agreed at the CBD-COP 10 in Japan in 2010.

10 | Recommendations                                                                                                                                                                                                                  Recommendations | 11
Mainstreaming the Topic of Biodiversity in Corporate Sustainability Management - Experience and Recommendations from the 'Biodiversity in Good ...
Integrating biodiversity goals                                  Implement and dynamically further                           3 You can’t manage what you can’t measure:
   within sector policies                                          develop nature conservation law –
                                                                   enable “temporary nature”                                   highlighting and honouring the value of natural life
   Mainstreaming at a policy-making level is an expression
   of the political will to preserve natural life support          Ambitious and modern nature conservation legislation,
                                                                                                                               support systems
   systems, and therefore also a catalyst for mainstreaming        which is further developed and successfully imple-
   in business. Biodiversity policies should not be the sole       mented, forms the political backbone to achieving the
                                                                                                                               Getting across and strengthening                               and national TEEB studies, as well as initiatives such as
   responsibility of environmental ministries, but be pro-         biodiversity goals. The challenges vary from country to
                                                                                                                               biodiversity goals with the natural capital                    the further development of the agreed methodology
   moted by governments as a whole. Whether and how                country. In the case of the EU, a so-called fitness check
                                                                                                                               and ecosystem services approach                                of the German Federal Environmental Agency for esti-
   biodiversity goals are to be achieved depends on leg-           of the EU nature conservation directives has again led
                                                                                                                                                                                              mating environmental costs, pursue the objective of
   islation and incentives in many areas of policy-making          to a more intense discussion on implementation deficits     The concept of ecosystem services incorporates an              recognising the value of the numerous services pro-
   outside of special environmental and nature conservation        as well as practical application problems – particularly    anthropocentric perspective oriented to the wellbeing          vided by nature. The results provide information which
   policies. The key areas are policies covering agriculture,      with respect to construction projects and approval          of people. There are many interactions between bio-            is also important for industry, and should be devel-
   energy and climate, waters, housing and transport,              processes. A “permanent conservationist” attitude in        logical diversity and the capacity of nature to provide        oped further. Primarily, however, it is essential for the
   trade, and consumer protection, as well as public pro-          nature protection, focused on preserving the status         the ecosystem services so important for human life:            results to flow into the institutions, and become part
   curement and public land management. This is where              quo, sometimes restricts voluntary commitments to           preserving biodiversity does not mean the same thing           of overall government policy making. We support the
   the crucial ecological and economical agendas are set.          biodiversity and effective nature conservation. This is     as preserving useful ecosystem services; however, a high       broad understanding of valuation within the frame-
   The incorporation of biodiversity goals in these policy-        because the, in some cases, very valuable “temporary        degree of biodiversity does also favour ecosystem              work of the TEEB approach, which is against “com-
   making areas, as well as in pan-departmental and sectoral       nature” on land which may be destined to become             services in many instances. The ecosystem service              moditisation”, and considering nature in pure mone-
   action, is fundamental for highlighting the relevance of        building land again in future, is hindered by the sta-      approach makes people appreciate the value of natural          tary terms. Market mechanisms alone are inappropriate
   biodiversity for business players, and firmly anchoring it      tutory biotope protection, and particularly species         capital. This has also proven to be extremely illuminating     to assess the value of previously public goods.
   in place on the operational side. This includes good            protection, enshrined in EU and German law. Legally         for businesses in order to create awareness of their
   co-operation between the ministries, joint administrative       watertight solutions for “temporary nature” would           dependency on natural living conditions. We are there-
   action, and integrated incentive approaches.                    increase the willingness to undertake voluntary commit-     fore in favour of greater argumentation via the natural        Further promoting valuation
                                                                   ments, e.g. on company premises, and other large plots      capital and ecosystem services approach, without in any        at a business level
   Demonstrate willingness to act and                              of land, where habitats can only be actively created in     way questioning the intrinsic value of nature itself.          Analogous to the macro-economic assessment, ap-
   setting an example in key sectors                               the first place by corporate commitment and action.
                                                                                                                                                                                              proaches have to be further developed at the business
                                                                                                                               Further promoting valuation
   The biodiversity crisis in agriculture in particular, and the                                                                                                                              level, to enable ecological values to be assessed more
                                                                   Integrating the promotion of biodiversity                   at a macro-economic level
   consequences of landscape impoverishment, cannot                                                                                                                                           accurately. Sustainable companies are interested in a
                                                                   in public sector procurement
   be compensated for by the efforts undertaken in other                                                                       A successful instrument for valorisation was established       realistic estimate of societal costs. There are numerous
   sectors. More than a third of the earth’s surface is            With its procurement – in addition to the management        many decades ago in Germany with the intervention              methods for natural capital accounting, but many of
   used for agricultural purposes, whilst around half of           opportunities of public land – the public sector has        regulation (impact mitigation regulation) pursuant to          them are still at a very early stage of development.
   Germany’s land area is used for agriculture. When it            enormous leverage, and can use this to act as a role        the Federal Nature Protection Act, with the aim of             Their practicability, benefits, financeability, and the
   comes to the topic of biodiversity, seeing that the             model. In this way it could honour products and services    maintaining the effectiveness and proper functioning           broadness of their impact, still have to be proven. One
   frontline sectors are willing to take action is particularly    which are provided in a biodiversity-friendly way,          of ecosystems, and protecting characteristic landscapes.       major hurdle is the availability of data, particularly
   important for raising the awareness of the responsibility       or which are incorporated in the provision of public        In other contexts, however, the interests in the               also with respect to primary data along the value
   of sectors which stand in the second or third rows.             goods. Integrating biodiversity and ecosystem services      conservation of nature and biodiversity often take a           chains, on which to base reliable assessments and the
   Fundamental changes and ecologicalisation measu-                in sustainable public sector procurement practices is       backseat in concrete evaluation and decision-making            quantification of complex environmental effects. We
   res in conventional agriculture, and strengthening              an important step to move sustainable consumption           situations. Uncertain predictions about what will              welcome that industry has brought forward initiatives
   organic farming, have a high priority. This also involves       out of its niche and into the mainstream. This would        happen in future compete with concrete immediately-            to test and further develop the approaches for natural
   developing a new culture of co-operation between                also highlight which goals are sought after by society      effective interests and clearly calculable costs – a classic   capital accounting. These include collaborations such
   agriculture and nature conservation, and establishing           as a whole. However, we also see that there are serious     sustainability problem. Long-term environmental and            as the Natural Capital Coalition with its “Natural
   trust, to solve conflicts of interest between land use          methodological challenges involved here to establish        costs concerning society as a whole are inadequately           Capital Protocol” project; the elaboration of an ISO
   and nature conservation.                                        fair and transparent processes.                             incorporated in decision making. The international             14.008 “Monetary valuation of environmental impacts

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Mainstreaming the Topic of Biodiversity in Corporate Sustainability Management - Experience and Recommendations from the 'Biodiversity in Good ...
from specific emissions and use of natural resources“;      financial sector considers the loss of biodiversity and         Improve the transfer of                                         An important milestone here is the establishment of
   as well as the commitment of pioneering companies. It       other natural capital as a risk which has a negative            research – edit the knowledge                                   the Intergovernmental Science-Policy Platform on
   is important here to match the degree of detail required    impact on it, this will be reflected in capital costs, and      for decision makers                                             Biodiversity and Ecosystem Services (IPBES) in 2013, as
   in each case with the specific effort involved, and to      the valuation of credit risks, and will therefore have                                                                          an international, intergovernmental institution for knowl-
   find a course which is efficient as well as targeted.       a crucial impact on the business models, investment             To increase the social relevance of the research, it is         edge generation, the execution of assessments, political
   The impact here has priority over detailed knowledge.       decisions and risk management of its clients. The sector        necessary to have better interfaces for the target-             assistance and the build-up of capacities. Processes of
                                                               is increasingly looking at the valuation of natural capital,    group-oriented transparent editing of the scientific            this kind must be permanently equipped with adequate
                                                               particularly with respect to concrete parameters such           findings on biodiversity to support more informed               resources, which also cover the expenditure involved
   Speeding up mainstreaming
                                                               as water and climate risks, air pollution, and land use,        decision making at a political level and within industry.       in the target-group-oriented distribution and communi-
   within industry via stimulus from
                                                               as well as the overexploitation of specific resources.          Scientific reports must be written so that people take          cation of the findings. In the next step, it is important
   the financial sector
                                                               The so-called Equator Principles on the preservation of         notice of them in the first place. Politicians and also         to elaborate specific options for action for business
   The financial sector could be a crucial catalyst for        environmental and social standards within the project           industry are responsible for evaluating the conse-              management which maintain and/or promote biodiver-
   sustainable development. This applies to many of the        financing segment, have been one of the approaches              quences, and therefore depend on scientific knowl-              sity, and make this available to the players. Ideally, this
   business activities in which banks are involved – from      since 2003. We welcome that organisations such as               edge to place landmark decisions on a firm footing.             would take place with the involvement of all participants.
   asset management, to investment banking, from               the UNEP Finance Initiative, with projects such as its
   corporate and project financing, to private banking.        Natural Capital Declaration (NCD), are strengthening
   Other crucial players in addition to the banks include      the awareness and methodological development in the
   insurance companies and re-insurers, fund managers,         financial sector. The sector should increase its aware-
   rating agencies, and export credit agencies. If the         ness of its responsibility, and play a pioneering role.         5 Strengthening biodiversity as a topic of comprehensive
                                                                                                                                 sustainable development

                                                                                                                               Facing up to challenging discussions                            Using the opportunities of the 2030
    4 Enhancing data availability and decision-making knowledge                                                                on prosperity and lifestyles                                    Agenda for Sustainable Development
                                                                                                                               Companies work within an overall societal environment           Biodiversity is not a pure ecological issue; it also has
                                                                                                                               whose ethical, cultural and economic preferences have           immense social and economic dimensions. Distribu-
   Strengthening risk and impact research                      Enhancing data availability
                                                                                                                               a crucial impact on market and competitive conditions.          tive justice, a fair burden sharing, and development
   Considerable gaps in knowledge and research, combined       Various database projects with long-term goals – such           In order to maintain their market strength and com-             opportunities are vital issues, if not the key topic in
   with conflicts of interests and goals, hinder societal      as the Global Biodiversity Information Facility GBIF or The     petitiveness, innovative, sustainable products and              international climate and biodiversity negotiations.
   consensus development, and the configuration of             Group on Earth Observations Biodiversity Observation            services, and business models need social acceptance,           The Nagoya Protocol is therefore an important achieve-
   political frameworks for biodiversity. Biodiversity and     Network GEO BON – are working to improve the                    and the willingness of consumers to pay an adequate             ment within CBD. The UN 2030 Agenda for Sustainable
   ecosystem research is being strengthened for these          collection of data and access to this data. However, an         price. When one looks at the major transformative               Development adopted in 2015 not only contains
   reasons. A priority when investing in science and           important source of data here has barely been harnessed         challenges such as climate change and the biodiversity          “Goal 15: Protect, restore and promote sustainable use
   research should be given to risk and impact research,       to date: every year, companies, or the experts working          crisis, as well as their fundamental causes, it becomes         of terrestrial ecosystems, sustainably manage forests,
   and the target-group-oriented publication of the results.   on their behalf, collect millions of datasets on biodiversity   clear: innovative environmental-technology strategies           combat desertification, and halt and reverse land degra-
   Information on the conservation status of genetic           as part of authorisation procedures. Companies and              cannot be adequate on their own to tackle the causes;           dation and halt biodiversity loss”. More importantly,
   diversity, species and ecosystems do not provide an         scientific organisations should work together to identify       this can only be achieved by interaction with the inno-         it also highlights the significance of intact ecosystems
   adequate basis or motivation for many decision-making       ways of making this information accessible and usable.          vation strength of society. This requires a number of           in the context of numerous of its goals, for instance
   processes in order to become active according to the        A few sectors have undertaken pioneering work here              interlocking change processes, and the courage to also          “Goal 12: Ensure sustainable consumption and production
   precautionary principle. It is much more important to       well worth emulating, e. g. the biodiversity database           discuss uncomfortable questions, such as the use of             patterns.” The 2030 Agenda for Sustainable Develop-
   demonstrate and improve the communication of how            initiated by the Pit & Quarry Industry Association in           resources. A critical debate on consumption and life-           ment opens up a major opportunity of communicating
   one is affected oneself by dependency on biodiversity       Baden-Württemberg (Industrieverband Steine und                  styles is an overall responsibility for all societal players.   biodiversity even more intensely within the fundamental
   and ecosystem services.                                     Erden Baden-Württemberg ISTE), which assesses and                                                                               context of sustainable development and international
                                                               documents the development of biological diversity in                                                                            responsibility, and therefore also of reaching economic
                                                               extraction sites, and which is to be further developed                                                                          players better than has been possible so far. The
                                                               at a German-wide level in future.                                                                                               achievability of the biodiversity targets will crucially
                                                                                                                                                                                               depend on how strongly the UN mechanism takes
                                                                                                                                                                                               effect, and helps achieve political integration.

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Mainstreaming the Topic of Biodiversity in Corporate Sustainability Management - Experience and Recommendations from the 'Biodiversity in Good ...
As of July 2017

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Mainstreaming the Topic of Biodiversity in Corporate Sustainability Management - Experience and Recommendations from the 'Biodiversity in Good ...
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