Biodiversity Footprint (PI6887)

This metric is intended to capture the organization’s or product’s biodiversity footprint, a measure of impact on the intactness of an ecosystem usually expressed relative to an undisturbed state. Biodiversity footprint can be assessed at the level of a product, a project, a site, or the entire organization. While it does not require time- and cost-intensive field surveys, this metric is not intended to offer an extremely accurate or holistic picture of biodiversity performance. Organizations can apply this metric in benchmarking (‘which companies in my portfolio are scoring well in terms of biodiversity?’), tracking progress to target (‘are companies in my portfolio evolving towards improved biodiversity performance?’), and comparison (‘which investment options are most promising in terms of biodiversity performance?’).

Organizations are encouraged to report this metric alongside others in the Biodiversity IRIS+ Core Metrics Set, as tailored to context, that give a complementary, more complete picture of biodiversity performance.

Organizations are encouraged to apply standard indicators for biodiversity footprint. Typically based on a combination of extent (surface), condition, and significance of the local ecosystem, commonly applied condition indicators include Mean Species Abundance (MSA) and Potentially Disappeared Fraction of Species (PDF), often combined with surface metrics (e.g., MSA.ha or MSA per hectare). PDF expresses the (potential) loss of species, while MSA expresses the abundance of species remaining (MSA, as a measure of current intactness, is preferred for this IRIS indicator). These indicators are often normalized to fall between 0 and 1; with MSA, for instance, no biodiversity is left when MSA = 0, while a very pristine area has MSA = 1. Both MSA

and PDF can be used across all sectors and across all countries and (eco)regions. For more on these measures as well as an overall discussion of the biodiversity footprint and its application to different asset classes, see the Partnership for Biodiversity Accounting Financials (PBAF)’s “Paving the way towards a harmonised biodiversity accounting approach for the financial sector” (https://www.pbafglobal.com/about-pbaf#first-version-of-the-pbaf-standard).

Available biodiversity measurement tools use models that include drivers of biodiversity loss such as land use changes, GHG emissions, and pollution. Organizations are encouraged, albeit with caution, to embrace innovative measurement approaches to improve accuracy. Interesting work to standardize data and measurement approaches is available from:

• European Business & Biodiversity Platform’s workstreams on methods (https://ec.europa.eu/environment/biodiversity/business/workstreams/methods/index_en.htm)
• WWF (2021, https://wwfint.awsassets.panda.org/downloads/wwf_assessing_portfolio_impacts_final.pdf)
• Pioneers (with an explicit focus on the financial sector).
• Partnership for Biodiversity Accounting Financials (PBAF) (https://www.pbafglobal.com/about-pbaf#first-version-of-the-pbaf-standard).

The Guide on Biodiversity Measurement Approaches from the Finance for Biodiversity Community provides excellent biodiversity measurement approaches at the portfolio level that are highly relevant for financial institutions:

• Biodiversity Footprint for Financial Institutions (BFFI)
• Global Biodiversity Score (GBS) and the Biodiversity Impact Analysis (BIA)
• Corporate Biodiversity Footprint (CBF)
• Species Threat Abatement and Restoration (STAR) indicator

Investors are strongly encouraged to contextualize their projects – and ideally select projects – based on broader, country- or region-level biodiversity and landscape assessments focused on site irreplaceability. Viewing biodiversity through the lens of a systematic conservation plan enables more efficient, impact goal-oriented management decisions.

For an example of one financial institution’s process and approach, see BNP Paribas’s “Our roadmap for addressing biodiversity loss” (https://investors-corner.bnpparibas-am.com/investing/our-roadmap-to-addressing-biodiversity-loss/).