Biodiversity Loss

Planetary Boundary 2 | Status: Boundary Transgressed

Boundary Definition

Control Variable: Extinction rate (extinctions per million species-years, E/MSY)

Safe Operating Space: <10 E/MSY (background extinction rate)

Current Status: 100-1,000 E/MSY (transgressed)

Source: Richardson et al. (2023)

Why This Matters

Biodiversity provides ecosystem services critical to human well-being: pollination, pest control, water purification, climate regulation, genetic resources. Current extinction rate is 100-1000x higher than background rate, comparable to past mass extinction events.

Key Frameworks:

• Kunming-Montreal Global Biodiversity Framework (2022) — 30x30 target (30% land/sea protected by 2030)
• IPBES Global Assessment (2019) — 1 million species at risk of extinction

Key Standards & Frameworks

Disclosure Standards

• TNFD — Taskforce on Nature-related Financial Disclosures
• IFRS Biodiversity Standard — Expected 2027
• GRI 304 — Biodiversity reporting

Measurement Standards

• SBTn — Science Based Targets for Nature
• CSRD ESRS E4 — EU biodiversity standard

Primary Source Documents

Scientific Assessment

• IPBES Global Assessment Report (2019) — Full report + Summary for Policymakers
• Living Planet Report 2024 — WWF population trends
• State of the World's Biodiversity for Food — FAO report

International Conventions

• Convention on Biological Diversity (CBD) — Kunming-Montreal Framework
• CITES — Trade in endangered species
• Ramsar Convention — Wetlands protection

Corporate Guidance

• TNFD Recommendations (2023)
• TNFD LEAP Approach — Locate, Evaluate, Assess, Prepare

Regional Initiatives

Hong Kong & China

• China National Biodiversity Conservation Strategy (2021-2030) — Ministry of Ecology & Environment
• HK Biodiversity Strategy & Action Plan — AFCD

Asia-Pacific

• ASEAN Centre for Biodiversity
• Asia-Pacific Biodiversity Observation Network

Book Resources

From ESG Series:

Biodiversity and Ecosystem Services Accounting — Mathematical guide for sustainability professionals
Download PDF: Biodiversity_Ecosystem_Services_Accounting.pdf

Key chapters:

• Biodiversity metrics (MSA, PDF, BII)
• Ecosystem service valuation
• Natural capital accounting
• Species richness and abundance measurement
• Habitat quality assessment
• TNFD metrics implementation

TNFD Made Simple — Practical guide to nature-related disclosures
Download PDF: ESG_Reporting_Made_Simple_TNFD.pdf

Measurement Metrics

Biodiversity Metrics

• MSA (Mean Species Abundance) — % of original species remaining
• PDF (Potentially Disappeared Fraction) — Species loss per area-time
• BII (Biodiversity Intactness Index) — Average abundance relative to undisturbed
• Species Richness — Number of species per area

Ecosystem Service Valuation

• InVEST (Integrated Valuation of Ecosystem Services and Tradeoffs) — Natural Capital Project
• TESSA (Toolkit for Ecosystem Service Site-based Assessment) — TESSA Toolkit

Tools & Data

• Global Biodiversity Information Facility (GBIF) — Species occurrence data
• IUCN Red List — Species threat status
• Integrated Biodiversity Assessment Tool (IBAT) — Corporate biodiversity screening
• ENCORE (Exploring Natural Capital Opportunities, Risks and Exposure) — TNFD data tool

Implementation for Companies

Step 1: Assess Dependencies and Impacts

Use the TNFD LEAP approach to identify biodiversity-related risks and opportunities:

Locate: Map operations and value chain to biodiversity-sensitive areas

• Use IBAT (Integrated Biodiversity Assessment Tool) to screen sites
• Identify proximity to protected areas, Key Biodiversity Areas (KBAs), and high-biodiversity regions
• Map supply chain sourcing locations

Evaluate: Assess dependencies on ecosystem services

• Water provision, pollination, climate regulation, genetic resources
• Use ENCORE tool to identify sector-specific dependencies
• Quantify reliance on nature-based inputs

Assess: Measure impacts and risks

• Calculate biodiversity footprint using MSA or BII metrics
• Assess physical risks (ecosystem degradation affecting operations)
• Evaluate transition risks (regulation, market shifts, reputational)

Prepare: Develop response strategy

• Set science-based targets using SBTn methodology
• Implement mitigation hierarchy (avoid, minimize, restore, offset)
• Disclose using TNFD framework

Step 2: Set Science-Based Targets

SBTn (Science Based Targets for Nature) provides methodology for:

• Land: No conversion of natural ecosystems, restore degraded land
• Freshwater: Maintain water quality and quantity within basin limits
• Ocean: Reduce marine ecosystem impacts
• Biodiversity: Achieve no net loss or net positive impact

Target example: "Achieve no net loss of biodiversity by 2030 across all operations, measured using Biodiversity Intactness Index (BII)"

Step 3: Implement Mitigation Hierarchy

1. Avoid: Prevent biodiversity impacts at source (site selection, design)
2. Minimize: Reduce impacts through operational controls
3. Restore: Rehabilitate degraded ecosystems on-site
4. Offset: Compensate for residual impacts through biodiversity credits

Step 4: Disclose Using TNFD

Report across four pillars:

• Governance: Board oversight of nature-related risks
• Strategy: Business model impacts and dependencies
• Risk Management: Nature-related risk identification and management
• Metrics & Targets: Biodiversity metrics and progress toward targets

Key Metrics for Companies

Impact Metrics:

• Biodiversity Intactness Index (BII) change
• Mean Species Abundance (MSA) impact
• Habitat area affected (hectares)
• Species threat abatement (STAR metric)

Dependency Metrics:

• % revenue dependent on ecosystem services
• Water sourced from biodiversity-sensitive areas
• Raw materials from high-biodiversity regions

Response Metrics:

• Protected area coverage (% operations in/near protected areas)
• Restoration area (hectares)
• Biodiversity offset credits purchased
• Sustainable sourcing certifications (% supply chain)

Case Studies

Kering (Luxury Goods): Developed Environmental Profit & Loss (EP&L) account measuring biodiversity impacts across supply chain. Found 93% of impacts in raw material sourcing. Implemented sustainable sourcing programs for leather, cotton, and precious metals.

Nestlé (Food & Beverage): Committed to no deforestation in supply chains by 2025. Uses satellite monitoring and supplier verification for palm oil, soy, and cocoa. Restored 50,000 hectares of degraded land.

BHP (Mining): Achieved net positive impact on biodiversity at several mine sites through large-scale restoration and offset programs. Uses BII metric to track progress.

Related Pages

• Environmental Hub
• Land-System Change — Habitat loss driver
• TNFD
• SBTn

Sources: Stockholm Resilience Centre, IPBES, CBD | Last updated: February 2026