Researchers Develop Method for Corporations to Assess Biodiversity Footprint; Tool to Be Free for All to Use

The Finnish University of Jyväskylä is piloting a method, the first of its kind, for corporations to calculate their biodiversity footprint, based on scientific databases and a company’s consumption accounts.

Long Story, Cut Short
  • The outcome of the study will be a method freely available to all companies and organisations for the assessment of their impact on nature.
  • The first time that a major trade group’s biodiversity footprint has been assessed, the project is financed by S Group, whose supermarket trade chain brands run 900 outlets across Finland, and the Finnish think tank and investment company, Sitra.
Biodiversity loss is one of the biggest global sustainability challenges, alongside climate change. To be able to reduce the impact that their products and services have on the environment, companies must first understand the nature of these impacts.
Challenging Task Biodiversity loss is one of the biggest global sustainability challenges, alongside climate change. To be able to reduce the impact that their products and services have on the environment, companies must first understand the nature of these impacts. Boudewijn Huysmans / Unsplash

Researchers at the University of Jyväskylä in Finland have developed a method for corporations to calculate their biodiversity footprint, based on scientific databases and a company’s consumption accounts.

  • This comes in the backdrop of Finland drawing up a national biodiversity strategy and its implementation programme.

The pilot project: The pilot project method by the University of Jyväskylä School of Resource Wisdom – JYU.Wisdom, focused on the Finnish S Group’s biodiversity footprint. 

  • The outcome of the study will be a method freely available to all companies and organisations for the assessment of their impact on nature. 
  • This is the first time that a major trade group’s biodiversity footprint has been assessed.
  • The method’s development is also connected to the BOOST for biodiversity offsets project, funded by the Academy of Finland, the objective of which is to design, build and implement a biodiversity offsetting system in Finland.
  • The method’s development work is being financed by S Group, whose supermarket trade chain brands run 900 outlets across Finland, and the Finnish think tank and investment company, Sitra.

Method and indicator: The indicator of the biodiversity footprint is the share of the world’s species at risk of extinction, i.e. the Potentially Disappeared Fraction (PDF) of species. 

  • The indicator collects the PDF of various species under a single unit of measurement, similar to carbon footprint assessments, and enables the international comparison of different corporations’ biodiversity footprints.
  • As the method’s further development and specification continues, its tools will be made available in the public domain to enable planning of more efficient measures preventing the loss of biodiversity in the value chains of companies.

The report: The interim report of the project published recently, and which will continue until the 2025 end, indicates:

  • that food and beverages account for the largest portion of S Group’s biodiversity footprint, while fuels account for the second largest portion. These are also the retail group’s largest business areas
  • utility goods account for a significantly smaller portion—a few per cent—of the biodiversity footprint
  • through complex supply chains, a large part of the negative environmental impact attributable to Finnish consumption is generated across the globe, beyond Finland’s borders. 

According to the calculation model based on financial accounting and Finland’s international trade, more than 90% of S Group’s global biodiversity footprint falls on regions outside Finland, such as Indonesia and the regions around the equator as well as Spain, the Mediterranean region and Brazil. 

  • The biodiversity footprint is typically larger in regions rich in biodiversity, such as those around the equator.

The goal: Climate and biodiversity efforts are closely related. S Group’s goal is for its operations to be carbon negative by 2025. 

  • In addition to climate efforts, the retail group aims to reduce its biodiversity impact by promoting more sustainable consumption and a planetary health diet, among other things. 
  • Concrete actions include policies related to raw materials and sourcing that aims to protect fish populations, for example, or ensure that no purchases are made from areas sensitive in terms of forest loss.

The backdrop: Biodiversity loss is one of the biggest global sustainability challenges, alongside climate change. To be able to reduce the impact that their products and services have on the environment, companies must first understand the nature of these impacts.

  • The theme is topical, given that nations around the world agreed on new international targets for halting biodiversity loss at the Montreal Biodiversity Conference in December. The global biodiversity framework agreed on also stated that, in the future, large and transnational companies should disclose their negative impact on biodiversity. 

WHAT THEY SAID:

Companies already routinely calculate their carbon footprints. This project demonstrates that they can also calculate their biodiversity footprint. A company like S Group, with operations in several different sectors, played a key role in the method’s development.

Janne Kotiaho
Professor of Ecology
University of Jyväskylä

You have to tackle climate and biodiversity challenges hand in hand. As opposed to climate efforts, biodiversity impacts are very local. The report shows that there is a need for increasingly strong cooperation between businesses and partners operating within the same geographic area. Companies must also start building new kinds of cooperation networks to reduce their negative impact on nature.

Nina Elomaa
Senior Vice-President (Sustainability)
S Group 

You cannot manage something that you can’t measure. Stopping biodiversity loss requires a functional method for calculating biodiversity footprints. Any company that intends to make a serious effort to manage their biodiversity impact needs a method of this kind. We can take some national pride in Finland being at the forefront of this global development work.

Lasse Miettinen
Theme Director (Sustainability Solutions)
Sitra

 
 
  • Dated posted: 15 May 2023
  • Last modified: 15 May 2023