Environmental Sustainability in Production Sites

In this article, Virginia Castellucci (Head of Sustainability, XNatura), Giorgio Puzzarini (Sustainability Specialist, XNatura), and guest speaker Fabrizio Labatessa (Novo Nordisk) explore how the XNatura platform helps companies manage nature-related risks, comply with CSRD and TNFD, and integrate nature data into site and portfolio decisions. XNatura is an integrated nature-tech platform supporting biodiversity, nature, and climate strategies through satellite imagery, bioacoustic sensors, and eDNA analysis. The webinar covers how to create and manage nature KPIs using remote sensing, IoT, and scenario analysis, along with step-by-step guidance on building a Nature Strategy and Biodiversity Action Plan. A real case from Novo Nordisk Italy is presented, including site assessment, regeneration, and bioacoustic monitoring with Spectrum sensors. Whether managing a single site or global operations, this session shows how to turn complex data into actionable strategies.

The session opens with an introduction to XNatura, its core objectives, and its new environmental platform. A recent update from the European Union on the roadmap for natural credits is shared, followed by insights on the platform’s new section focused on nature-related risks. The webinar addresses key regulations and directives impacting the sector, highlighting the importance of understanding risks, dependencies, investors, clients, and reporting in relation to nature and biodiversity. Compliance frameworks such as CSRD, ESRS, the TNFD LEAP approach, EUDR, and CSDDD are reviewed. A live demonstration of the platform applied to a production site is presented, showcasing real-time functionality. The session concludes with a case study from Novo Nordisk and a dedicated Q&A segment to address participant questions.

XNatura is a nature-tech environmental platform leveraging advanced technology for global biodiversity monitoring and protection. The organization employs over sixty professionals, including a dedicated R&D team of fifteen. Its infrastructure includes more than 5,000 IoT devices deployed worldwide to track biodiversity indicators such as pollinators, birds, and mammals. Currently, over one million hectares are being monitored globally. XNatura collaborates with more than 500 customers across 25+ countries and maintains partnerships with key scientific institutions, including the European Space Agency.

XNatura received EU funding in 2023 to develop the first biodiversity credits. As of yesterday, the European Union has officially released the roadmap for nature credits. The initiative aims to establish a reliable system that attributes measurable value to investments in nature, promoting a nature-positive economy where ecosystems are considered strategic business assets. Projects must undergo certification to validate positive environmental impact. Once certified, and after demonstrating measurable outcomes for nature, these projects can generate verified biodiversity credits - quantified units representing ecological improvements. These credits can then be registered and traded within dedicated markets, supporting environmental accountability and sustainable business models.

The EU roadmap for nature credits outlines a phased implementation plan. In 2025, an expert group will be established to consolidate knowledge and best practices related to nature credits. By 2026, the first methodologies for carbon farming with biodiversity co-benefits will be introduced, and the expert group will provide input on criteria and methodologies. From 2027 onward, the group will support the European Commission in designing a governance framework, with a particular focus on enabling access for small landowners and SMEs. Although early signs of this initiative were known through EU funding programs, the roadmap now formalizes the process, marking a significant step toward a structured and inclusive nature credit system.

XNatura is the natural intelligence division of 3Bee, a company active since 2017 in nature monitoring and regeneration. The platform is designed to support companies, municipalities, and nature parks through an integrated system that centralizes diverse technologies into a single access point for nature-related data. This unified platform enables decision-makers to act effectively and make informed choices based on comprehensive environmental insights. The technological tools include remote sensing, ground-based sensors, laboratory analysis, and on-field surveys, offering a complete, multi-layered system for nature data collection and assessment - from satellite to soil.

For the manufacturing production sector, the XNatura platform offers several key benefits. First, it enables the use of science-based KPIs by transforming nature-related data into structured, digital metrics. This facilitates more accurate monitoring of environmental performance. Second, the platform supports benchmarking and target verification, allowing users to assess whether production sites meet environmental goals and how they compare within the industry. Third, it provides tools for supply chain risk analysis and prioritization by identifying sites with high exposure to climate risks or strong dependencies on natural resources. These features support informed decision-making across operations.

The XNatura platform offers several advanced features to support CSRD and TNFD compliance, aligning with the TNFD LEAP approach and EU ESRS standards. It enables the creation of scenario analyses with future KPI projections, such as those based on IPCC scenarios, providing a structured foundation for supply chain risk management. Additionally, the platform facilitates the development of a Biodiversity Action Plan (BAP) and a broader nature strategy, offering practical tools for strategic planning. A key functionality is the “click-to-generate” reporting feature, which centralizes all environmental data across assets, allowing users to produce structured reports instantly from a single interface.

The manufacturing sector is responsible for a significant share of global resource consumption, including energy use and greenhouse gas emissions. As a result, environmental sustainability has become a critical priority for the industry. Beyond its environmental impact, the sector is also highly dependent on natural systems and increasingly exposed to external risks such as climate events and biodiversity loss. In response to these challenges, a new section of the XNatura platform has been developed, specifically focused on nature-related risks and vulnerabilities, offering tools to support risk identification and mitigation across manufacturing operations.

The portfolio risk overview feature in XNatura enables comprehensive analysis of environmental risks across multiple assets. Users can apply IPCC scenarios to evaluate how risk levels evolve over time and explore specific risks - such as drought or hydrogeological threats - using multilayer visualizations. A tabular view allows for detailed comparison between assets based on floating risk ratings, which indicate physical exposure, and composite risk ratings that also factor in each asset’s economic value. This dual analysis helps prioritize interventions where low physical risk may still translate to high overall vulnerability due to asset importance. Additional tools allow users to assess risk distribution over time, supporting long-term strategic planning.

There is a section of the platform that was developed to include site-specific risk. By accessing a specific site, it is possible to view the overall risk level and locate it on the map. Physical risk levels are also displayed and can be tracked over time. The final graph in this section is particularly relevant, as it shows risk according to different IPCC scenarios, from the most optimistic to the worst-case. This overview highlights a new feature that is especially interesting for this sector.

Around 60% of global manufacturing value depends directly or indirectly on ecosystem services. This highlights that the sector not only impacts nature and faces risks, but also relies heavily on biodiversity and ecosystem services. There are four key reasons why the manufacturing sector should care about biodiversity. First, due to the risks and dependencies already identified. Second, because investors increasingly demand transparency on nature-related risks. Third, growing awareness among clients and consumers is boosting the demand for nature-conscious brands, including in B2B markets. Lastly, biodiversity is becoming essential for reporting and regulatory compliance.

This overview highlights the risks and dependencies in the sector. Companies impact biodiversity and ecosystems through greenhouse gas emissions, climate change, land use, resource and species exploitation, pollution, and other pressures. At the same time, they depend on ecosystem services for natural resources, ecological functions, and cultural value. Investors are increasingly focused on sustainable practices - not only to mitigate environmental risk, but also to reduce costs, improve efficiency, and unlock new market opportunities. Additionally, growing awareness among clients and consumers is influencing business expectations and market positioning.

The TNFD framework was used as the basis for the development of the platform. This framework is highly relevant for many sectors, particularly in the context of nature-related risk management and disclosure. Additionally, the platform supports compliance with supply chain-related policies, such as the EUDR and CSDDD, by helping collect the KPIs required for reporting, especially under the EUDR. It also facilitates the collection of environmental data necessary for certifications, including ISO standards, the EU Ecolabel, and EMAS. These functions make the platform a useful tool for aligning with evolving regulatory and sustainability requirements.

Integrating nature into business processes involves five key steps: measure, prioritize, set targets, act, disclose and track. The first step - measuring - can be carried out directly through the platform. This phase is essential for collecting comprehensive data using a top-down approach, such as remote sensing, and combining it with ground-based data from sensors, field surveys, and laboratory analysis. The platform enables the integration of all these data sources in one place, offering a complete and streamlined overview to support nature-related strategies and decisions.

The objective of the "Measure" phase is to collect and organize high-quality, transparent data from technological sources and public databases - all accessible in one platform. Various sensors have been developed to monitor nature directly in the field. These include Spectrum and Birdy, IoT bioacoustic sensors for pollinators and birds, camera traps for mammals, Polly X, a wild pollinator shelter that also monitors air quality, and HiveTech, an IoT system applied to beehives to monitor colony health, acting as a bioindicator. All these sensors are natively integrated into the platform. Additionally, the system is compatible with external sensors, making it easy to centralize and manage diverse environmental data sources.

After data collection, the next step is to prioritize. This involves organizing the available data and identifying which assets require the most attention - typically those exposed to higher levels of risk. Prioritization helps focus actions where they are most needed from the outset. For example, hydrogeological risk can be used as a criterion, but other KPIs may also be selected depending on the context and goals. Climate risk data can also be integrated to inform prioritization decisions and support a more comprehensive risk-based approach across assets.

The third step is to set targets, a process that should follow the measurement and prioritization phases to ensure targets are realistic and aligned with actual conditions. Targets can be established using various approaches: by comparing with the control area (the surrounding site area), by referencing industry benchmarks, or by adopting established frameworks such as the Nature Restoration Law or the Half-Earth framework. In some cases, a full recovery objective may be defined, although it is often the most ambitious and complex to achieve.

After setting targets, the next step is to implement actions. At the site-specific level, this may involve creating a Biodiversity Action Plan (BAP) tailored to local conditions. At the portfolio level, actions are part of a broader nature strategy. The platform supports both dimensions by enabling companies to disclose and track their progress over time. It provides automated, transparent reports and continuous monitoring of biodiversity, nature, and climate-related data. This ensures that actions remain aligned with strategic goals and regulatory expectations.

The platform enables access to nature-related data for each production site and supports the prioritization of actions across the supply chain. In the overview section, a map displays all sites linked to a company. By selecting a specific site, it is possible to access detailed information. The example shown includes 41 sites globally, covering 46,000 hectares and involving 51 different production processes. Key indicators highlight nature-related impacts, dependencies, and risks: 22 out of 41 sites show direct impacts on biodiversity, 20 are exposed to hydrogeological risks, and 31 face above-average climate change conditions. These insights offer a clear understanding of the company’s overall exposure and can guide strategic decisions.

The prioritization matrix enables a clear comparison of parameters along the X and Y axes to assess trends across different sites. Each point on the graph represents a site, helping identify those with potential significant impacts on biodiversity and ecosystem services. In this example, “local heating” is set on the X-axis and “distance to protected area” on the Y-axis, illustrating how heat stress may influence biodiversity, particularly in relation to proximity to protected areas that provide ecosystem benefits to operations. The platform allows users to visualize and prioritize multiple other factors as well, such as Mean Species Abundance (MSA), hydrogeological risk, and additional available metrics. This visualization enhances understanding of site-specific risks and supports more informed decision-making within the supply chain.

The site-specific section begins with a map, following the TNFD LEAP approach: Locate, Evaluate, Assess, and Prepare. This framework guides organizations in understanding their interactions with nature, and the platform structure reflects these phases. In the "Locate" step, geographic conditions are shown. The map displays multiple layers: the site perimeter is outlined in blue, and the control area (5×5 km) is marked in white. Shifting to the land cover view, it becomes possible to visualize the distribution of land cover types within the site. Most of the area is identified as an industrial unit, with additional zones showing complex cultivation patterns and a semi-natural area, highlighted in light green. All spatial and land cover data are validated using reliable public databases such as ESA World Cover and CLC Land Cover, ensuring consistency and transparency in environmental assessments.

Additional layers provide key environmental insights. The hydrogeological risk is visualized graphically: in this case, the site falls within a level 3 zone, indicating medium risk. The area is flood-prone and located near a river, which will be further explored through historical event data. Another critical layer shows soil temperature. As expected, artificially covered zones exhibit higher temperatures than natural or agricultural areas, with peaks of around 50°C in the core area. Elevated soil temperatures can impact infrastructure and worker health, while also compromising the surrounding environment and biodiversity. These layers offer valuable context for assessing site-specific vulnerabilities and nature-related risks, supporting more informed decisions and alignment with sustainability frameworks.

The platform offers access to multiple geographical data layers within the Locate section. In this example, the site is located in Italy and includes information on biome typology, production process, site activities, and regulatory context. These details are editable directly by the user, supported by AI, or revised by nature strategists. Moving to the status and impacts highlights, the platform provides a simple visualization of key data, already structured according to ESRS standards and categorized under themes such as water and biodiversity. Full compliance with major reporting frameworks, including CSRD, is ensured. Users can generate automatic reports using AI, which can then be reviewed and refined by experts. This functionality significantly reduces the time and effort required to manage and report large volumes of nature-related data, offering a practical solution for professionals engaged in sustainability and compliance.

An overview of environmental impacts and dependencies is provided through a structured table. Each production process is associated with specific environmental impacts, using data sourced from the ENCORE database. In this case, the site is classified under manufacturing, with a focus on ceramics production. The table is automatically generated and can be adjusted to reflect more accurate site-specific conditions. Modifications can be made directly through the platform, either manually, with AI assistance, or by nature strategists. Parameters such as intensity, reach, and irremediability of the impact can be customized using a dedicated interface. For example, the land use category may be edited to better align with real-world operations. This tool enables better understanding and management of nature-related risks, contributing to improved data quality and supporting environmental performance evaluation.

The core of the platform is represented by KPI metrics that are scientific-based, standardized according to ESRS standards, and fully comparable. These indicators provide structured, ready-to-use data. Land use, already visualized in the initial map, is now presented more clearly: the site is located on the outskirts of an urban area, gradually transitioning into agricultural land. The interface displays both the site and the surrounding control area for comparison. One key metric is the impermeable land index, which is particularly relevant as the site is situated in a flood-prone zone and classified under medium hydrogeological risk. This value highlights a potential vulnerability and should be considered a warning indicator. The platform supports the identification of nature-related risks through reliable KPIs, enabling timely actions and informed environmental decision-making.

It is possible to observe various KPIs, including the distance to key elements such as rivers. The Lamone River is located less than five kilometers from the site, and this factor should be closely monitored. Regarding impermeability, the built-up area on the site is notably high, which is consistent with expectations. However, this is not the case for the control area. This may explain why the area is not facing extreme hydrogeological risk. Nonetheless, it is important to continuously monitor and analyze these data for further insights.

The microclimate section shows a significant increase in temperatures compared to 50 years ago. It is useful to analyze future projections by comparing different IPCC scenarios on the platform. The most optimistic scenario (SSP1 2.6) was selected, but it still indicates a temperature rise above 2°C, suggesting the need to consider local regeneration activities to mitigate impacts. While global actions are not feasible, on-site effects can still be reduced.Additionally, rainfall trends show a 16% increase, which may seem positive at first, but further analysis reveals fewer events with more intense, tropical-like rainfall. This shift poses risks to the site. The aridity KPI supports this, with the agricultural control area showing slight aridity. These trends require continuous monitoring and the adoption of preventive measures.

The "State of Biodiversity" section focuses on the MSA (Mean Species Abundance) indicator, which assesses the health and diversity of an ecosystem compared to its natural, untouched state. The MSA scale ranges from 0 to 100, with 100 representing a pristine ecosystem and 0 indicating total degradation. Currently, biodiversity levels are very low, with an MSA value of only 7 out of 100, significantly lower than both the control area (which remains low) and the sector benchmark of 51.5. This highlights a pressing issue that requires attention.To address this, a data-driven approach should be employed, using metrics like the MSA to establish clear targets. In this case, a reasonable target would be to "regenerate 30%" of the area, as matching the control area's average would not be feasible due to its predominantly agricultural land use.

Once the target is established, a simulation of desired conditions can be performed using the scenario analysis function. Referring back to the initial map, the manual edit tool allows modification of land cover to test how various regeneration activities might improve the MSA and other biodiversity-related KPIs. For example, it is possible to decide to regenerate a semi-natural area, create border lawns, or implement a green roof project- choices are flexible and customizable. While it’s not feasible to perform every scenario in real-time due to time constraints, this approach provides valuable insights for decision-making and long-term planning.

Returning to the platform, several key performance indicators (KPIs) are analyzed. One of these is the indicator for protected areas, which measures the extent and proximity of protected zones surrounding the site. Proximity to protected areas can have a positive impact on local biodiversity but also requires increased attention to avoid potential negative consequences. The presence of 31 at-risk species in the surrounding area is noteworthy, primarily within the broader region and control area. Another significant KPI is pollinator abundance, which is crucial for assessing the biodiversity status of the site. At present, pollinator abundance is quite low. However, targeted regeneration actions could yield substantial improvements. Even dedicating a small portion of the site for the installation of a beehive could enhance pollinator populations. Additionally, there is a tool available to assess whether the site is suitable for such interventions.

The "Risks" section is particularly significant in this case, as there is a real possibility of a major event occurring in the coming years. The area has already experienced flooding and extreme weather events, as shown in the data. The control area is categorized as extremely high risk, which requires prioritization. On a positive note, the site is not under immediate threat from landslides, as it is located in a flat area. Another critical factor is soil temperature, as the site is contributing to the formation of a heat island. Elevated soil temperatures can increase the costs of cooling systems and create difficulties in maintaining acceptable working conditions. This issue also extends to social and governance concerns. Quickly reviewing other KPIs, it is also possible to assess financial risks and opportunities. Relevant values can be edited and added, providing useful insights when conducting scenario analyses.

A variety of sensors can be installed on-site to monitor different aspects of the environment. By switching to a real site, the map displays the locations of these sensors. In the dedicated section, data related to pollinator clusters can be accessed, provided by the Spectrum sensor, a bioacoustic device designed to monitor pollinators. This sensor detects the buzzing sounds of insects (not identifying species) and groups them into acoustic clusters, offering valuable insights into biodiversity levels. The data is essential for analyzing pollinator behavior over time. Although time is limited, it is important to note that the platform offers many additional tools for further exploration. The data from these sensors, along with other platform features, can significantly enhance monitoring and analysis.

The case study presented focuses on Novo Nordisk, a company collaborating with 3Bee to monitor and protect biodiversity around their Italian headquarters. The company selected XNatura to support its sustainability efforts. Novo Nordisk, a Danish company with nearly 100 years of history, is a global leader in insulin production, supplying approximately 50% of the world's insulin. Currently, it ranks as the largest company by market capitalization in Europe. The partnership with XNatura is part of their biodiversity strategy and commitment to nature conservation. Through this collaboration, Novo Nordisk aims to enhance its sustainability roadmap and address its environmental goals.

The nature roadmap presented by Novo Nordisk outlines their commitment to biodiversity. With multiple production sites worldwide, the company’s most recent acquisition is in Anagni, which will become the largest Novo Nordisk site outside of Denmark. However, the focus of this discussion does not include this site, as it is still early to assess its biodiversity impacts. Initially, Novo Nordisk recognized the importance of biodiversity for both business operations and global sustainability. As a Danish company, Novo Nordisk has consistently sought innovative ways to minimize its environmental impact. Companies from this region, known for their strong commitment to sustainability, have set a high standard in addressing environmental issues.

Two years ago, Novo Nordisk developed a roadmap focused specifically on the natural dimension, separate from the company’s emissions and climate-related goals. The primary ambition outlined in this roadmap is to halt nature loss by 2033 and to become nature-positive by 2045. Upon joining the company, it was highlighted that significant efforts were already underway at the Bagsvær headquarters, including underground tunnels for animals and expansive green fields surrounding the production site. These initiatives have been in place for several years. To illustrate the company’s long-standing commitment to sustainability, the first sustainability report from a production site was published in 1994 - over 30 years ago, at a time when such reporting was not yet common practice.

The strategy, initiated in 2018, was further refined a couple of years ago when it became evident that the nature dimension was missing. This led to the development of a dedicated roadmap that provided clarity on where real action could be taken. While it may seem simple to state the goal of reducing environmental impact, the actual implementation presents significant challenges. Insulin production, derived from yeast and bacteria that grow on glucose, generates substantial CO2 emissions. Despite the environmental impact, insulin is crucial for life-saving treatment. Thus, balancing the effectiveness of the medicine with environmental concerns becomes a complex challenge, as it directly involves life-saving healthcare.

Water plays a crucial role in the production of Novo Nordisk’s products, and its usage is carefully managed within the company’s sustainability strategy. Water scarcity and biodiversity loss are key factors considered in the company’s nature plan. Land, primarily used for glucose production, and paper for packaging are also significant resources. To address this, the company is redesigning products to reduce material consumption starting from the production phase, focusing on using less paper, packaging, and plastic, while increasing efficiency. In terms of water, various models are employed to minimize usage, particularly in areas facing water scarcity. At the Montes Claros site, which accounts for approximately 15-17% of the world’s insulin production, water consumption has been reduced by 75% in recent years through improvements on-site. This significant reduction required considerable effort but also proves beneficial for the business.

The “restore” aspect of the roadmap is where XNatura plays a pivotal role. The project, based on the Nature Roadmap, is designed primarily for production sites but is also adaptable to smaller headquarters, serving as a pilot for potential expansion to other regions. The images shown here are linked to the assessment conducted at the Italian headquarters in Rome (Roma EUR). By installing three Spectrum sensors, as previously described, the project provided valuable insights into the types of pollinators present and how their populations differ from surrounding areas, which are less developed. Additionally, the assessment covered land use, heat stress, and other factors.

Once it was understood that the site did not have a significant environmental impact (being an office), two different paths were taken. The first path involved on-site regeneration. The top floor of the building was recently acquired, and a terrace is being transformed into a green space, not only for people to work and enjoy, but also to contribute to nature regeneration. Native species, pollinator shelters, and educational elements will be included to raise awareness, which is highly relevant for the company. An interesting insight: while installing the Spectrum, walking around the office with small packages, people frequently stopped to ask what it was. This sparked awareness, as such initiatives are typically seen through newsletters or from distant locations. However, when something is visible on-site and based on science, it creates a greater impact.

A regeneration project was implemented, which includes the adoption of an arboretum featuring 100 native plants, alongside a monitored oasis supported by a professional grower who regularly maintains the green area. Additionally, a bio-monitored beehive was adopted, hosting around 60,000 bees. The beehive has already been installed and is expected to actively contribute to pollination and local biodiversity in that region of Italy. The projects are simple to implement: XNatura is an excellent partner, helping to raise awareness among the local population. It is hoped that this approach will be replicated in other projects as well.

As a reminder, the white paper with more insights on the manufacturing sector is available for download. It provides valuable information for those interested in this field. Regarding upcoming events, the team will be attending several key conferences. The World Class Sustainability and Resource Management event in Frankfurt will take place from September 4th for two days. A team of four will also attend the Regenerative Agriculture Summit Europe in Amsterdam from September 8th to 10th. On September 16th and 17th, a representative will be in Zurich alongside the client Cubico. Additionally, the team will be present at the 5th Annual Sustainability Week in Amsterdam on October 6th and 7th. Finally, from October 15th to 17th, Highways UK in Birmingham will focus on the infrastructure sector. For those wishing to stay informed, the Telegram channel offers weekly updates on events and news across Europe.