Companies set out metric to measure impact on biodiversity

22nd May 2017


Transform web

Related Topics

Related tags

  • Business & Industry ,
  • Corporate governance ,
  • Management ,
  • Certification ,
  • Procurement

Author

Andrew Burwood

A network of businesses has unveiled a way for companies to calculate the impact of their supply chains on the natural environment which it hopes will improve decision-making and inform investors.

The metric has been developed by firms including Kering, Interserve, Mars and Asda. The firms are all members of the Natural Capital Impact Group (NCIG) and the Investment Leaders Group, an international network of investors.

‘Companies are starting to realise that they’re improving their impact on the natural environment, but they have no way of measuring this. This is important for investors, who have been asking questions about this issue,’ explained Gemma Cranston, director of the natural resources security portfolio at the University of Cambridge, which convenes the NCIG.

Despite government guidance and advice for companies wanting to reduce their impact on the natural environment, an appropriate way of measuring results did not exist, she said.

The metric should help companies identify where they have sufficient information, and where there are gaps, she added.

The group has so far focused on biodiversity, since it is the most complex issue, but is planning further work on soil and water.

Luxury and sportswear clothing brand Kering is piloting the metric. Head of sustainable sourcing innovation Helen Crowley described the test as ‘ground-truthing’ the metric against existing supply chain data.

She said Kering was already using environmental profit and loss accounting to understand its impacts on natural capital, but wanted more information to measure and mitigate impacts on biodiversity: ‘We recognise that there is a lot of information in academic and conservation sectors that isn’t getting to business. We’re tapping into that information and translating it into something business can use.’

Where a company finds problems in the environmental impact of raw materials in its supply chain, it can usually engage with suppliers and influence a change in production processes, such as asking them to become certified against a standard, she said. ‘I don’t think at this stage we would consider dropping a product [where problems are identified] as we can work with other companies in the supply chain to leverage change,’ Crowley said.

The NCIG has published a working paper, which details how the metric is constructed and provides insight into the impacts of business operations on biodiversity.

Subscribe

Subscribe to IEMA's newsletters to receive timely articles, expert opinions, event announcements, and much more, directly in your inbox.


Transform articles

BNG requirements could absorb 650,000 tonnes of carbon each year

The UK’s new biodiversity net gain (BNG) requirements could create 15,000 hectares of woodlands, heath, grasslands, and wetlands and absorb 650,000 tonnes of carbon each year.

13th March 2024

Read more

All major housing developments in England will be required by law to deliver at least a 10% increase in biodiversity under new rules that came into force today.

12th February 2024

Read more

As we approach the 40th anniversary of the Born Free Foundation, co-founder Will Travers OBE tells Chris Seekings how a new approach to conservation is needed to end animal suffering

1st February 2024

Read more

Ajirioghene Samuel looks at some exciting tree-planting initiatives, offering nature-based solutions to climate change impacts

1st February 2024

Read more

The UK should become the first G20 country to mandate financial disclosures on nature to propel widespread adoption by the private sector, according to an influential lobby group.

24th January 2024

Read more

The government is largely “off track” in meeting legally binding targets with nature in danger of “irreversible” decline, according to a highly critical report by the environmental watchdog.

24th January 2024

Read more

Media enquires

Looking for an expert to speak at an event or comment on an item in the news?

Find an expert

IEMA Cookie Notice

Clicking the ‘Accept all’ button means you are accepting analytics and third-party cookies. Our website uses necessary cookies which are required in order to make our website work. In addition to these, we use analytics and third-party cookies to optimise site functionality and give you the best possible experience. To control which cookies are set, click ‘Settings’. To learn more about cookies, how we use them on our website and how to change your cookie settings please view our cookie policy.

Manage cookie settings

Our use of cookies

You can learn more detailed information in our cookie policy.

Some cookies are essential, but non-essential cookies help us to improve the experience on our site by providing insights into how the site is being used. To maintain privacy management, this relies on cookie identifiers. Resetting or deleting your browser cookies will reset these preferences.

Essential cookies

These are cookies that are required for the operation of our website. They include, for example, cookies that enable you to log into secure areas of our website.

Analytics cookies

These cookies allow us to recognise and count the number of visitors to our website and to see how visitors move around our website when they are using it. This helps us to improve the way our website works.

Advertising cookies

These cookies allow us to tailor advertising to you based on your interests. If you do not accept these cookies, you will still see adverts, but these will be more generic.

Save and close