Tools: Indicators and key ratios
The analysis of the effects of business activities on biological diversity can be carried out using indicators or key ratios. With their help, situations can be defined in advance, systematically tracked and then presented in aggregate form. Biodiversity-related indicators usually have a relative character. That means that they place two values in relation to each other.
There are two kinds of indicators: those that show a particular state of biological diversity and those that show the impact of a particular business activity on biodiversity.
Management Cycle Stages
Using a systematic management “plan-do-check-act” cycle to implement a corporate biodiversity management process allows for proper business orientation, for example, as is used when part of the Eco-Management and Audit Scheme (EMAS) or ISO 14000.
Finding the business-specific relationship between company and biodiversity is, however, made more difficult by the complexity and extent of biodiversity (ecosystem, species, and genetic pool). The criteria “rareness” and “endangerment” of species and habitats act as a point of orientation. Aids in determining such threats to biodiversity such as the “Red List”, the European Union’s Habitats Directive along with the EU’s Birds Directive and the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).
Scientific expertise is often required in cases where specific plans are made. This is an area where local environment and nature conservation groups can provide businesses with technical know-how, representing an opportunity to deepen the cooperation with regional NGOs.
Screen - S
Screen and identify fields of action
Check - C
Measure success
Fields of action
Fields of action in can be identified and set by analysing where a company’s activities have a either direct or indirect influence on biodiversity. The spatial relation to biological diversity is intuitively connected to the sites and facilities field of action. Corporate activities influence biodiversity in other ways though as well.
Sites and Facilities
The construction and use of office buildings, production halls or car parks change the existing habitat and affect biodiversity. This applies to both manufacturing and service industries. The area used by the fishing, farming and forest industries is included in the list of sites. Facilities can be greenhouse gas sinks or sources. For instance, if a wetland is to be used as a company site and is drained and dried, greenhouse gases will be emitted into the air. Similarly, clear cutting a section of forest destroys a natural CO2 sink. In the initial transformation of raw materials to useable construction materials, extracting rock from quarries or ploughing grasslands heavily impact plant and animal habitats.
Product Design
Depending on product or service design, the final product will have a greater or lesser impact on biodiversity. Negative impacts can be reduced in a number of ways, including changing the service design or by substituting, reducing and recycling materials used in the production. Positive effects can also be created by using raw materials in products that contribute to the conservation of biological diversity, such as the use of older types of grain or juices from traditional mixed-crop orchards. This creates the possibility for innovation and product differentiation in market competition.
Product design can also be more than eco-design, especially when it is a part of “cause-related marketing,” a method that enables the manufacturer to combine products sales with donations for specific projects. Consumer protection aspects can also be combined with biodiversity protection.
Personnel
A sustainable biodiversity management system will be all the more successful when the employees are convinced of it and are allowed to actively take part in achieving its goals. They are the ones who are taking the decisions on a day-to-day basis and who are implementing management strategies.
In addition, employees volunteering time help protect biological diversity. When the necessary structures are created and volunteer programmes are promoted, it can strengthen employee corporate identity.
Production and manufacturing processes
Resource consumption and emissions, such as waste water, airborne pollutants or greenhouse gas, are generally hazardous for biological diversity. Therefore, optimising production processes is usually an effective contribution to protecting biodiversity. Improved process design can also reduce the necessary net input of raw materials and energy, often resulting in lower production costs.
Additional information about Production and manufacturing processes
Transport and Logistics
Transporting raw materials and manufactured products as well as business travels leads to the emission of greenhouse gases and dust. Transportation infrastructure can fragment habitats, reducing their functionality and impeding natural genetic exchange. Furthermore, increasing goods transportation enables non-native species to invade new habitats, thereby displacing species native to the area.
Best Practice Examples: HiPP GmbH & Co. KG – CO2 accounting analysis of the whole product cycle
An example of a sustainability indicator is a company’s CO2 footprint, which HiPP has introduced for its baby food product, “Pure Early Carrots”. They used the following indicators in their calculation: raw material production, the availability of adjuvants and packaging, energy consumption in production, transport, the use by the customers as well as disposal or recycling of waste. This forms the basis for carrying out a CO2 accounting analysis of the whole product cycle.
