#EUBiodiversity

GETTING STARTED WITH SCIENCE-BASED TARGETS

FOR BIODIVERSITY AS A BUSINESS OR FINANCIAL

INSTITUTION

High-level summary of the SBT for biodiversity webinar series

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SCIENCE-BASED TARGETS FOR BIODIVERSITY, WHAT DOES IT MEAN?

In order to achieve that “safe operating space” and work towards ensuring a planet where humans can thrive, companies, regional and local authorities must set actionable and measurable targets for earth’s natural systems which are underpinned by science. While science-based targets (SBT) for climate have been set globally through the Paris Agreement providing companies a reference against which to set their own targets, similar science-based targets for other parts of the earth system such as biodiversity are still missing at global level. Companies that are taking voluntary action to protect biodiversity are therefore lacking direction to assess whether their efforts are enough to stay within the earth’s limits.

The fifteenth meeting of the Conference of the Parties to the Convention on Biological Diversity, due to take place in Kunming (China) in 2021, should help address that problem by developing a long-term 2050 vision, with five overarching global goals, and mid-term 2030 SBTs to halt biodiversity loss and achieve net improvements. These global goals will need to be translated into actionable targets for companies (downscaling) by taking location-specific material impacts and dependencies of actors into account (prioritisation) and sharing both mitigation and restoration burden across a landscape or region (allocation).

This challenging top-down exercise of translating science into guidance for local actors is currently led by the Science Based Targets Network building on the progress of establishing SBTs for climate. Recent efforts led by PBL to develop national biodiversity budgets also showed that translating planetary targets at national level raises both ethical (e.g. fair distribution of the burden between states) and methodological questions (e.g. indicators and benchmarks used to assess biodiversity loss, etc.) and scientific uncertainties.

All life on Earth depends on clean air and water, biodiversity, healthy oceans, and a stable climate. However, unsustainable consumption of the Earth’s resources has brought the global economic system out of balance compared to what the planet can sustain. To restore this balance, and simultaneously guarantee continued socio-economic development and prosperity, humanity must operate within a “safe operating space”, which is conceptualised by nine quantitative Planetary Boundaries .

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1 Rockström, J., W. Steffen, K. Noone, Å. Persson, et.al. 2009. Planetary boundaries: exploring the safe operating space for humanity. Ecology and Society 14(2): 32Source: Planetary boundaries of the Stockholm Resilience Centre adapted from Steffen et al., 2015

1 No Poverty2 Zero Hunger3 Good Health & Well-being4 Quality Education5 Gender Equality6 Clean Water & Sanitation7 Affordable and Clean Energy

8 Decent Work & Economic Growth9 Industry, Innovation & Infrastructure10 Reduced Inequality11 Sustainable Cities & Communities

12 Responsible Consumption & Production13 Climate Action14 Life Below Water15 Life on Land

Source: Sustainable Development Goals adapted from PBL, 2017

Source: Scenarios to get back into the biosphere integrity planetary boundary adapted from Lucas & Wilting, 2018

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between mitigation measures for the various boundaries that have been crossed were considered as well as the degree of influence of stakeholders (e.g. farmers, farming cooperatives, regional governments, etc.). Suggested solutions to decrease the biodiversity footprint consisted in increasing organic farms’ productivity without having additional effects on biodiversity and taking measures to reduce the impact of the more intensively producing farms. Instead of following general sustainability principles, Alpro is focusing on the earth’s actual capacity and tries to achieve biodiversity net gain. The study showed that the planetary boundary for biodiversity was likely severely crossed on the almond farms. Alpro has been working on additional projects to protect bees and biodiversity in general in almond orchards. Measures from the 2018 pioneering pilot on Science-Based Targets for Nature, developed with WWF and scientific partners, are now being implemented with local nature organisations through the use roadmaps to increase biodiversity.

ENERGY AND AUTOMATION

Schneider Electric validated its carbon targets to align with a “1,5°C trajectory” and is now wishing to go down the same road for biodiversity. The company has been exploring options to adopt SBTs for biodiversity starting with measuring their global biodiversity footprint with the Global Biodiversity Score (GBS) - developed by CDC Biodiversité (Groupe Caisse des Dépots). A global biodiversity target would offer companies the possibility to align with a simple, unifying and international goal (like “no net loss”). However, its absence should not prevent businesses from taking action, starting at local level. This starts with assessing business impacts on biodiversity, setting actionable targets to avoid and reduce impacts and restore biodiversity, and tracking progress to guide business transformation.

FINANCE

In 2019, AXA Group in cooperation with WWF published a report calling for global action to bend the curve of nature loss, protect our natural capital and secure the future of humanity. In this report, AXA highlighted the need to integrate biodiversity impact measurement into existing environmental, social and governance (ESG) rating methodologies and to develop a framework for investors to analyse biodiversity risk and engage with companies. AXA IM saw that companies negatively impacting biodiversity create risks for investors and may affect financial returns. By encouraging business in their portfolio to acknowledge their impact on biodiversity and take action, financials can turn these risks into opportunities. In addition to its efforts to fund biodiversity research projects through the AXA Research Fund, AXA is working on the development of biodiversity footprint measurement for investors. Developing

such methodologies and tools requires access to biodiversity-related data that only businesses can provide. Gaining quantitative insights in investees’ activities can help investors set SBT for nature and mitigate their portfolio risks in the absence of mature methodologies that allow to provide a comprehensive overview of companies’ impacts and dependencies on nature.

Six Dutch financials (ASN Bank, Actiam, Triple Jump, FMO, Triodos Bank and Robeco) recently established the Partnership Biodiversity Accounting Financials (PBAF), an initiative that aims to investigate how banks and investors can contribute to the protection and sustainable use of biodiversity and how to measure the impact of investments and mitigate risks.

HOW HAVE COMPANIES STARTED SETTING THEIR OWN SBT FOR BIODIVERSITY AND WHAT BENEFITS HAVE THEY REAPED TO DATE?

Despite these challenges, companies that understood the many benefits that can be reaped when protecting nature have already started playing their part by defining their own strategies to thrive within the safe limits of our planet. Developing these strategies often happened through a participatory and collaborative process (e.g. with NGOs and academics), based on available science-based data, existing tools or methods developed by experts, businesses or decision-makers, and relying on local context information. Examples of such bottom-up approaches are however rather scarce and include frontrunner companies from different sectors, including the food sector and financial sector.

FOOD

To set SBTs corporates need to fully understand and assess the impact of their supply chain on biodiversity. FrieslandCampina recognized the impact and dependency of their dairy farms on biodiversity. They introduced ambitious biodiversity goals into their sustainability strategy to improve the state of biodiversity on each of their dairy farms. Together with WWF and Rabobank they developed a Biodiversity Monitor that uses key performance indicators to measure and monitor the influence of dairy activities on biodiversity. It also identifies potential areas for improvements for which farmers are rewarded with the Foqus planet bonus. More than 75% of all dairy farms in the Netherlands are members of FrieslandCampina. Through their

approach, using SBTs, they might succeed in transforming an entire sector into more sustainable agricultural practices. Alpro has used SBTs to inform their biodiversity strategy on the ground and frame a “one planet product” approach integrating the global goal for nature into its business operations. In cooperation with WWF, Alpro tested out methodologies for defining boundaries and targets for four impacts under assessments (freshwater use, land-systems change, biogeochemical flows, and biodiversity loss) linked to its soy and almond value chains. This helped develop strategies for impact mitigation leading towards concrete actions at the level of the landscape or farm. Trade-offs

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Source: High-level overview of boundary evaluation results adapted from Alpro’s pilot study, 2018

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AS A BUSINESS NEW TO THIS AREA, WHERE SHOULD I START TO SET SBTS FOR BIODIVERSITY WITHIN MY ORGANISATION?

USEFUL RESOURCES

The Science Based Targets Network (SBTN), in collaboration with international experts, produced the first guidance for companies to set a clear course of action to protect nature in line with science. The guidance document is the first product of the SBTN.

The report of the UN Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) provides evidence of the biodiversity crisis induced by human industrial activity.

The report, ‘Integrating Natural Capital in Risk Assessments’ published by UNEP Finance Initiative is a step-by-step guide to help financial institutions conduct a rapid natural capital risk assessment.

The Natural Capital Coalition developed a series of Biodiversity Guidance was developed as a companion to the Natural Capital Protocol; enabling businesses to better incorporate biodiversity into natural capital assessments and decision-making.

The IBAT alliance brings together authoritative biodiversity data from three global biodiversity datasets, including the IUCN Red List of Threatened Species, World Database on Protected Areas and World Database of Key Biodiversity Areas.

We Value Nature developed a natural capital uptake pathway breaking down the natural capital journey and focusing on smaller, more achievable steps.

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Many frontrunners have taken the lead to develop SBTs through a bottom-up approach. Even though no standardised way for setting SBTs for biodiversity exist yet, there are different steps you can take as a corporate or financial.