Report on Integrating Biodiversity into Corporate Sustainability Frameworks in Alignment with Sustainable Development Goals

Introduction: Expanding Sustainability Metrics to Achieve Global Goals

A recent white paper published by Tunley Environmental and Bespak advocates for corporations to broaden their sustainability initiatives beyond a singular focus on climate metrics. The report emphasizes the critical need to integrate biodiversity concerns into corporate strategy to support environmental health, industrial resilience, and economic stability. This holistic approach is essential for making substantive progress on the United Nations Sustainable Development Goals (SDGs), particularly SDG 15 (Life on Land), SDG 3 (Good Health and Well-being), and SDG 8 (Decent Work and Economic Growth).

The Industrial Impact on Biodiversity and SDG 15

The report highlights the significant negative impact of industrial supply chains on global biodiversity, which directly contravenes the objectives of SDG 15 (Life on Land). The pharmaceutical industry is presented as a key example, where actions often lead to biodiversity loss despite a heavy reliance on biological sources for 60% of its products. This paradox threatens the long-term viability of the industry and undermines SDG 3 (Good Health and Well-being).

• Land Degradation and Habitat Destruction: Industrial expansion and sourcing activities often destroy natural habitats, a primary driver of biodiversity loss.
• Overharvesting and Pollution: Unsustainable sourcing and industrial pollution degrade ecosystems, affecting both terrestrial and aquatic life, thereby impacting SDG 14 (Life Below Water).
• Threats to Economic Stability: The loss of biodiversity threatens the supply of essential natural resources, creating risks for economic stability and sustainable industrialization as outlined in SDG 9 (Industry, Innovation, and Infrastructure).

Methodology: Supply Chain Biodiversity Footprinting (SCBF)

To address these challenges, the paper introduces Supply Chain Biodiversity Footprinting (SCBF), a methodology designed to quantify, disclose, and mitigate the biodiversity impacts of economic activities. This tool directly supports the implementation of SDG 12 (Responsible Consumption and Production) by enabling companies to manage their resource use more sustainably.

Key Factors Assessed by SCBF:

1. Land Use and Land Use Change: Measures the impact of converting natural ecosystems for industrial or agricultural use.
2. Eutrophication: Assesses nutrient pollution in water bodies, a major threat to aquatic ecosystems under SDG 14.
3. Pollutant Effects: Quantifies the harm of pollutants on flora, fauna, and entire ecosystems.
4. Water Stress: Evaluates the impact of water consumption on local environments.
5. Climate-Related Disruption: Considers the effects of climate change, linking biodiversity efforts to SDG 13 (Climate Action).

A central metric of the SCBF is “species.yr,” which quantifies the potential loss of species diversity annually due to supply chain activities. This provides a clear, measurable indicator for companies to track their progress toward protecting life on land (SDG 15).

Strategic Applications for Corporate Responsibility and SDG Alignment

The SCBF methodology offers a practical framework for integrating biodiversity into core business decisions, helping companies align with global sustainability agendas and regulatory requirements such as the EU’s Corporate Sustainability Reporting Directive.

• Informed Decision-Making: SCBF data can guide strategic choices regarding sourcing partners, manufacturing materials, and facility locations to minimize environmental harm.
• Enhanced ESG Performance: By quantifying biodiversity impacts, companies can more effectively identify and act on opportunities to advance their environmental goals and improve their ESG ratings.
• Broad Industrial Relevance: While demonstrated in the pharmaceutical sector, the principles of SCBF are applicable to any industry with a complex supply chain, including food, apparel, chemical, and manufacturing, promoting widespread adoption of practices that support SDG 12 and SDG 15.

Analysis of Sustainable Development Goals (SDGs) in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 12: Responsible Consumption and Production

  The article focuses on the need for companies, particularly in the pharmaceutical industry, to adopt sustainable practices within their supply chains. It introduces the Supply Chain Biodiversity Footprinting (SCBF) methodology to help companies quantify, disclose, and mitigate their environmental impact, which directly relates to responsible production patterns.

• SDG 13: Climate Action

  The article explicitly mentions that sustainability efforts must move beyond “climate-only metrics.” It identifies “climate-related habitat disruption” and “climate change impacts” as key drivers of biodiversity loss that are measured by the SCBF methodology, linking climate action directly to the preservation of biodiversity.

• SDG 14: Life Below Water

  The article addresses threats to aquatic ecosystems by mentioning “eutrophication (nutrient overload in water bodies that can cause algal blooms and oxygen loss)” and “freshwater acidification” as factors considered in the SCBF methodology. These issues are direct threats to life below water.

• SDG 15: Life on Land

  This is the most central SDG in the article. The entire white paper discussed is about including “biodiversity concerns” in sustainability efforts. The text highlights threats such as “land degradation,” “overharvesting,” “pollution,” “habitat destruction,” and “land use and land use change (for example going from forest to farmland)” as consequences of industrial supply chains, all of which directly impact life on land.

2. What specific targets under those SDGs can be identified based on the article’s content?

• SDG 12: Responsible Consumption and Production

  • Target 12.2: By 2030, achieve the sustainable management and efficient use of natural resources. The article’s discussion on the pharmaceutical industry’s reliance on biological sources (60% of pharmaceuticals) and the threat of overharvesting directly connects to this target.
  • Target 12.6: Encourage companies, especially large and transnational companies, to adopt sustainable practices and to integrate sustainability information into their reporting cycle. The SCBF methodology is presented as a tool to support compliance with regulations like the “European Union’s Corporate Sustainability Reporting Directive” and to help companies advance their environmental goals.

• SDG 14: Life Below Water

  • Target 14.1: By 2025, prevent and significantly reduce marine pollution of all kinds, in particular from land-based activities, including marine debris and nutrient pollution. The mention of “eutrophication (nutrient overload in water bodies)” as a factor measured by SCBF directly addresses this target.

• SDG 15: Life on Land

  • Target 15.3: By 2030, combat desertification, restore degraded land and soil, including land affected by desertification, drought and floods, and strive to achieve a land degradation-neutral world. The article identifies “land degradation” caused by the pharmaceutical industry as a key contributor to biodiversity loss.
  • Target 15.5: Take urgent and significant action to reduce the degradation of natural habitats, halt the loss of biodiversity and, by 2020, protect and prevent the extinction of threatened species. The core argument of the article is the need to mitigate biodiversity loss caused by supply chain activities like “habitat destruction.”
  • Target 15.9: By 2020, integrate ecosystem and biodiversity values into national and local planning, development processes, poverty reduction strategies and accounts. The SCBF methodology is a tool for integrating biodiversity values into corporate strategic decisions, such as sourcing, manufacturing processes, and facility location.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article mentions both a specific metric and a broader methodological framework that serve as indicators:

• “species.yr”: The article explicitly introduces this as a “key metric” to measure the potential loss of species diversity due to supply chain activities over a year. It quantifies the impact on biodiversity from drivers like habitat destruction and pollution, serving as a direct indicator for targets related to halting biodiversity loss (e.g., Target 15.5).
• Supply Chain Biodiversity Footprinting (SCBF): The methodology itself is an indicator framework. It involves measuring and quantifying several factors that contribute to biodiversity loss. These factors, mentioned in the article, can be seen as a set of indicators:
  • Land use and land use change
  • Eutrophication
  • Effects of pollutants on plants, animals, and ecosystems
  • Water stress
  • Climate-related habitat disruption
• Corporate Sustainability Reporting: The article implies the use of indicators by mentioning compliance with the “European Union’s Corporate Sustainability Reporting Directive.” This directive requires companies to report on their environmental impacts using standardized indicators, which the SCBF methodology is designed to support.

4. Table of SDGs, Targets, and Indicators

Source: dcvelocity.com