The continued loss of biodiversity poses a severe threat to planetary health and causes serious ecological, social, and economic problems for humankind. In reaction to this ongoing crisis, there has been an increasing awareness of biodiversity risk among private businesses in recent years. Biodiversity loss is a global phenomenon that is hard to ignore because all businesses are affected by it, although exposure can vary by sector (Addison, Bull, & Milner-Gulland, 2018).
By reviewing existing research and examining private businesses’ biodiversity-related initiatives and future possibilities, Feger and Mermet (2022) identified four types of business–biodiversity relations:
- Mitigating negative impacts on biodiversity.
- Better assessing and managing business dependence on biodiversity and ecosystem services.
- Making biodiversity conservation an opportunity to add value to core business activities.
- Placing biodiversity/ecosystems conservation and restoration at the core of business activities and strategies.
Among the four categories, mitigating negative impacts on biodiversity is likely the most straightforward to understand. A case in point is the strategy taken by Nestlé S.A. in mitigating its negative impacts on biodiversity, such as through deforestation and soil depletion. The Swiss multinational food and drink processing company started a five-year plan in 2020 to spend 3.2 billion Swiss Francs (equivalent to approximately $3.43 billion) on ecological and climate-related initiatives, including efforts to promote farming practices that restore soil health (Ballard, 2022).
Transitioning to a more sustainable production process requires better assessing and managing business dependence on biodiversity and ecosystem services by the private sector. Smith et al. (2020) provided an example of this in the supporting document of their paper, involving the French-based multinational corporation Kering. The luxury goods manufacturing and retailing company owns famous luxury brands such as Gucci, Alexander McQueen, and Yves Saint Laurent. One of the raw materials used in the production of many of its products is python skin. Kering partnered with several other firms to sponsor a 20-year scientific research on the biology and ecology of python populations to inform sustainable management practices. Based on the scientific findings, the partnership was able to make meaningful recommendations for sustainable sourcing, including determining sustainable population levels and setting minimum size limits for snakes to prevent the capture of immature snakes.
Some companies are making biodiversity conservation an opportunity to add value to their core business activities. For instance, Pangaia, a London-based apparel company, released its eco-friendly jeans line in 2021. By incorporating foraged nettle in its material to reduce its dependence on conventional cotton, the company added economic and environmental value to its core business. Nettle is a wild crop that does not require water diversion for irrigation, or the use of toxic pesticides and fertilizers that can adversely impact regional biodiversity (Kahn, 2021).
The fourth category – placing biodiversity/ecosystems conservation and restoration at the core of business activities and strategies – refers to the integration of biodiversity conservation and restoration into the fundamental operations and decision-making processes of a company. This approach requires businesses to view biodiversity and ecosystem services as essential components of their operations and to prioritize their protection and restoration, rather than treating them as externalities or afterthoughts. Companies that adopt this approach aim to minimize their negative impact on biodiversity and ecosystems while maximizing their positive contributions to these natural systems. Such businesses strive to incorporate sustainability principles into their practices, including reducing their carbon footprint, minimizing waste, and promoting the sustainable use of resources. By placing biodiversity and ecosystem conservation and restoration at the core of their business activities and strategies, companies can contribute to a more sustainable and resilient future for both people and the planet.
References
Addison, P. F. E., Bull, J. W., & Milner-Gulland, E. J. (2018). Using conservation science to advance corporate biodiversity accountability. Conservation Biology, https://doi.org/10.1111/cobi.13190
Ballard, E. (2022, March 25). Disclosures on Nature, Climate Go Hand in Hand, Nestlé Risk Chief Says. Wall Street Journal – Online Edition, N.PAG. https://www.wsj.com/articles/disclosures-on-nature-climate-go-hand-in-hand-nestle-risk-chief-says-11648116000
Feger, C., & Mermet, L. (2022). New Business Models for Biodiversity and Ecosystem Management Services: Action Research with a Large Environmental Sector Company. Organization & Environment, 35(2), 252–281 https://doi.org/10.1177/1086026620947145
Kahn, H. (2021, October 18). Sweatsuit Star Pangaia Debuts Eco-Friendly Jeans. Wall Street Journal https://www.wsj.com/articles/pangaia-eco-friendly-jeans-11634558947?reflink=desktopwebshare_permalink
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