Nature & Biodiversity - XNatura is coming!

In this article, Virginia Castellucci (Head of Sustainability, XNatura) and Lucrezia Palma (Sustainability Specialist, XNatura) describe for the first time the XNatura platform. This session explores how businesses can integrate biodiversity into their strategies, comply with evolving regulations, and use technology for effective environmental monitoring. It covers an introduction to XNatura and its reporting framework, emphasizing the role of sustainability reporting and the increasing importance of biodiversity in corporate responsibility. Key standards such as ESRS and TNFD are reviewed, followed by a presentation of the XNatura platform and a detailed case study of an abandoned carbon mine, showcasing post-industrial regeneration.

XNatura is a leading environmental platform focused on biodiversity monitoring and protection, offering technological solutions for assessment, monitoring, regeneration, and dissemination. With partnerships across over 15 research centers and scientific institutions globally, XNatura is present in more than 25 countries. The platform has over 500 customers and has deployed more than 5,000 IoT devices worldwide, currently mapping over one million hectares of land. As an in-house division of 3Bee, XNatura specializes in managing and monitoring environmental risks through data-driven insights, utilizing technologies like remote sensing, lab analysis, field sensors, and on-site surveys. The platform serves a wide range of users, including companies, municipalities, and natural parks, providing essential tools for decision-makers to effectively manage their environmental impacts.

Here are the key reasons why businesses should care about biodiversity: Dependencies: Many businesses rely heavily on natural resources and ecosystem services, such as pollination and clean water. Biodiversity loss directly threatens the stability of supply chains and business operations. Reporting: Regulations like the CSRD (Corporate Sustainability Reporting Directive) require companies to assess and disclose their biodiversity impacts. Investors: ESG-focused investors are increasingly demanding transparency on nature-related risks, which can influence access to natural capital and impact a company’s financial stability. Consumers: Consumer awareness of environmental issues is growing, driving demand for businesses to adopt sustainable practices and demonstrate their commitment to biodiversity.

Dependencies: businesses have a significant impact on nature and biodiversity, but they also depend heavily on it. Biodiversity provides essential ecosystem services like clean water, pollination, and raw materials, which are crucial for business operations. Understanding these dependencies is the first reason to prioritize biodiversity in your business strategy. Reporting: The regulatory landscape around biodiversity is evolving, especially with the Omnibus legislative package release. While the complete package still needs approval by the EU Parliament, it is expected that at least 10,000 companies will be required to report on their biodiversity impact.

Investors: Financial institutions are key players in either accelerating or mitigating the degradation of natural capital. Their investment and financing decisions can significantly influence how businesses manage biodiversity risks. Investors are increasingly looking for transparency on sustainability, including biodiversity, which can impact access to capital and long-term financial stability. Consumers: Consumer attitudes are shifting, with 50% of millennials and Gen Z willing to pay up to 10% more for sustainably made products, compared to only 34% and 23% of previous generations, respectively. This shift signals that the new generation of consumers cares deeply about sustainability and nature, making it a critical factor for businesses to consider in their strategies moving forward.

The concept of double materiality is central to the new European standards, which require businesses to consider two perspectives that are described in this paragraph: Impact materiality focuses on how a company’s activities affect biodiversity and ecosystems. This includes environmental degradation, resource consumption, and land use. Financial materiality, on the other hand, examines how biodiversity loss and ecosystem degradation can create risks and opportunities that financially impact the company.

Certain sectors are required to report on biodiversity because it is deemed material to their activities. These include industries such as agriculture, forestry, construction, oil and gas, food and beverages, water and waste services, and paper and wood products. Very few sectors are exempt from these biodiversity reporting requirements. The list of relevant sectors is outlined by the TNFD (Taskforce on Nature-related Financial Disclosures), which is referenced in the ESRS (European Sustainability Reporting Standards) to help identify which sectors should report on biodiversity.

The ESRS, released by EFRAG (European Financial Reporting Advisory Group), provides a comprehensive framework for assessing, managing, and reporting biodiversity-related risks and impacts. According to these standards, several key performance indicators (KPIs) are mandatory in biodiversity reporting. Some of these KPIs include: MSA (Mean Species Abundance): This metric measures biodiversity loss compared to undisturbed ecosystems, offering a summarized view of biodiversity health. KBA (Key Biodiversity Areas): This indicator identifies critical areas for biodiversity conservation, and these areas, along with protected zones, are also listed on the XNatura platform. The ESRS standards are aligned with the TNFD framework and its "LEAP" (Locate, Evaluate, Assess, and Prepare) approach, ensuring businesses can effectively manage and report their biodiversity-related risks and opportunities.

For an easy and effective biodiversity reporting, there are five key steps to follow: Measure: Accurate measurement is the foundation of any decision-making process. Without proper measurement, it’s impossible to make informed decisions. Once the data is collected, thoughtful decisions can be made. Prioritize: After measuring, it’s important to prioritize actions. This ensures that the most critical issues are addressed first. Set Targets: Once priorities are clear, businesses should set specific targets to aim for, which will help guide their actions moving forward. Act: With clear targets in place, the next step is to act, implementing strategies to improve biodiversity state and reduce impact. Disclose and Track: Finally, businesses must disclose their progress and track their performance. This transparency is key for accountability and ongoing improvement.

In the measure phase, the goal is to collect and organize the highest quality, transparent, and integrated data to make the reporting as complete as possible for your business. XNatura uses a variety of technologies: Remote sensing: For collecting data on land cover and key performance indicators (KPIs), also using public databases. IoT sensors: XNatura uses sensors like Spectrum and Birdy, which are bioacoustic sensors designed to continuously monitor the diversity and frequency of pollinators and birds. Camera traps: These use artificial intelligence to capture images of mammals and other animals. Polly X: wild pollinator shelter equipped to monitor air quality. HiveTech: An IoT system that monitors the health of beehives. In addition to these technologies, XNatura also uses on-field surveys and lab analysis. For example, the Biodiversa app helps collect information about plants in the field, and eDNA lab analysis is used to scan soil samples and gather data about biodiversity.

The second step is Prioritize. After collecting high-quality, transparent, and integrated data during the measurement phase, businesses need to prioritize actions. This step ensures that attention is given to the most critical aspects of the business. For example, in the platform it is possible to visualize each asset as a dot on a matrix, and these assets are compared against KPIs like hydrogeological risk and pollinator abundance. This comparison helps identify which areas require the most immediate attention, allowing businesses to focus resources where they will have the greatest positive impact.

The third step is Setting Targets. This is a crucial phase, and it should be done after collecting the necessary data. Setting achievable targets ensures that progress can be measured effectively. There are several ways to set targets: Comparing data to a control area: This involves using the surrounding area or a reference area to establish benchmarks for the asset being considered. Benchmarking against industry standards: Setting targets by comparing your performance with existing industry benchmarks to ensure alignment with best practices. Following existing regulations: Setting targets based on existing regulations, such as the Half Earth initiative, which aims for 30% regeneration, or other relevant environmental laws and frameworks.

The fourth step is Acting. Once data has been collected, priorities have been set, and targets established, it's time to take action. Through XNatura, businesses can develop a comprehensive biodiversity strategy for the entire company. This includes monitoring all assets, identifying targets, and creating business plans, strategies, and scenario analyses. In addition to the overall company strategy, XNatura also helps develop site-specific biodiversity action plans. These plans are tailored to each individual site and cover key areas such as monitoring, regeneration, and engagement, ensuring that actions are aligned with the unique needs and opportunities of each location.

The last step is Disclose and Track. This step is critical because biodiversity reporting is not just about compliance, but it serves as a proof of a company’s commitment to sustainability. With XNatura, all data is consolidated into a single platform, making it easier for businesses to report and communicate their biodiversity efforts to stakeholders. The platform provides generated reports that are always reviewed by experts, ensuring the accuracy and relevance of the information. Additionally, XNatura offers long-term monitoring capabilities, allowing companies to track their biodiversity progress over time. The platform is CSRD compliant and has been developed to align with major international standards and frameworks, such as TNFD and SBTN, ensuring that businesses can meet both regulatory and sustainability goals effectively.

Developed by the Task Force on Nature-related Financial Disclosures (TNFD), the LEAP approach serves as a structured process for integrating nature-related considerations into decision-making. The XNatura platform is fully aligned with each phase of this methodology. Locate: XNatura uses satellite imagery and various public databases to analyze land use, detect biodiversity hotspots, and identify key biodiversity areas. This provides a data-driven foundation for informed, strategic decision-making. Evaluate: The platform assesses nature-related impacts and dependencies, helping businesses understand their reliance on ecosystem services. Assess: XNatura quantifies biodiversity-related risks and opportunities by integrating key indicators such as MSA (Mean Species Abundance), land use data, MSA control, and other relevant KPIs. Prepare: The platform supports target setting based on industry benchmarks, control areas, and regulatory goals.

Simplified data collection and single site-analysis. Instant report generation: with just a click, it is possible to generate technical reports. Expert support: you will always have the assistance of a dedicated expert, XNatura’s Nature Strategist, to guide you through the process. Multi-site and multi-user management: the platform allows for easy management across multiple sites and users. Regulatory compliance: the platform is compliant with international regulations and integrates reports into sustainability statements. One-stop solution: it provides a comprehensive solution for assessing biodiversity, nature, climate risk, and impact/dependencies. XNatura is already being used by a diverse range of clients across industries such as agriculture, energy, infrastructure, manufacturing, municipalities, and natural parks.

The platform supports two main approaches, either of which can be adopted individually or in combination. The Portfolio Approach enables the prioritization of sites by identifying those that require the most attention in terms of biodiversity, climate, and nature. Site prioritization is based on selected KPIs and it incorporates the principle of double materiality, allowing for the identification of all nature-related impacts and risks. A biodiversity strategy can be developed at the corporate level, including a transition and strategic plan aligned with frameworks such as TNFD, SBTN, and GBF. The Site-Specific Approach focuses on performing remote biodiversity assessments for individual sites, on field biodiversity monitoring with IoT sensors (Spectrum, Birdy, PollyX, and Hivetech) and sampling, and developing specific action plans.

The platform interface is fully customizable, allowing users to modify images, describe their project, and configure the project with XNatura. In the monitoring section, the process begins by creating a new site. For this demonstration, a new site called Carbon Mine is created, located in Solverein, Essen, Germany. The platform generates the site based on the provided information: in this case, instead of using an exact shapefile or KML (Keyhole Markup Language) file, satellite imagery is utilized to locate the site. To define the area for analysis, the shapefile feature is used. For demonstration purposes, the perimeter is drawn manually. This is not an exact perimeter but serves to illustrate how the platform allows the user to map the area and define boundaries for further analysis.

The perimeter has been generated, and now the next step is to define the control area. A 1-kilometer control area is added around the site, which will serve as the benchmark for analyzing the biodiversity impact and dependencies around the site. This area is displayed as the white space surrounding the site. This control area is named baseline, representing the starting point for monitoring. Once this is set, the site is saved, and the platform generates both the site perimeter and the control area.

Additionally, the platform incorporates the Locate phase of the TNFD framework, which involves adding key location data, such as GPS coordinates, the city, and the region. The biome is also specified and automatically populated; for this example, temperate boreal forest and woodlands is selected as the biome. This data is then integrated and displayed within the platform. The platform also offers customization through generative AI, which can be used to create detailed descriptions and production processes for a site. For instance, if iron ores or hard coal are produced in a mine, this information can be added, and the site’s production activity description will be automatically adjusted based on the input provided. Although the current example involves a closed mine without active production, this feature demonstrates how flexible and customizable the platform is.

The platform monitors several KPIs, starting with land cover. The analysis shows a mix of different land types. Some areas are green, indicating regeneration, while others, such as the mineral extraction sites, still show rocky or non-natural land. Additionally, agricultural fields are detected, and the platform classifies the types of crops being grown. Forested areas are also identified. This process, based on satellite imagery, is automatically generated by the platform within minutes. It is possible to add data from Biodiversa, an app developed by XNatura that allows to scan plants and identify species. For example, species such as Common Yarrow and various insect species can be identified using th

For each KPI, such as protected areas, the platform provides a legend to help interpret the data. Users can view and download information related to the protected areas, including the number of such areas within the analyzed region. The proximity of these areas to the site is also displayed, giving insights into the surrounding environment. All data displayed on the map can also be accessed through the dashboard below, allowing for further analysis and tracking of key biodiversity metrics in a centralized, user-friendly format. Protected areas are critical for biodiversity, as they help identify whether a site is situated within an ecological corridor or if it may pose a barrier to animal and plant species. This analysis provides insights into the potential impacts of infrastructure on surrounding ecosystems.

Hydrogeological risk is a key factor to consider. In this case, the risk level is marked in orange, indicating a relatively high concern. The platform provides a clear legend and assigns a score of 4 out of 5, signaling a medium-to-high and non-negligible hydrogeological risk. This score is also shown in the dashboard under physical hazards. Additionally, the platform highlights seven past events (likely floods) recorded in the area, underlining historical exposure. Future risk projections are also available, covering both general and high-intensity events. Users can explore different IPCC scenarios (best- and worst-case) to assess how climate change might influence the likelihood of future occurrences. Regarding landslide and erosion hazards, the platform may show low or no significant risk in flat areas, as in this example, where the terrain appears relatively stable from a geomorphological perspective.

When analyzing land use, the platform provides an overview of the surrounding areas. The site being analyzed is primarily located on agricultural land, as indicated by the yellow areas. However, there is a natural area within the site that has been regenerated as part of the mine closure process. Additionally, there are areas categorized as artificial surfaces, which are relatively high, but it’s important to note that the mine is closed, even though human presence is still recognized on-site. Other key factors related to land use are the coverage of natural habitats, impervious soil ratio, and water coverage. These analyses apply both to the site and to the surrounding control area. The control area, highlighted earlier as the white zone, is useful for understanding the broader context and seeing how the site is situated relative to the surrounding land.

The XNatura environmental platform provides detailed insights into the status of urbanization, which can impact ecological systems. While urbanization isn't a major factor for the mine itself, as it's located in an agricultural region, the control area shows a slight increase in urbanization. Similarly, population density is somewhat higher in the control area but still remains low overall. This is because the site is in a rural, agricultural area, as opposed to a more densely urbanized region.

The platform also provides a summarized view of the data in a highlights table, which presents an overview of the status, impact, and risk for the site. For instance, the hydrogeological risk is shown as quite high, along with other relevant indicators grouped into macro categories. In addition to hydrogeological risk, the table includes other factors such as aridity and permeability, which are also part of the overall analysis. These indicators are clearly outlined, and users can filter the table based on specific metrics of interest. The platform allows for a more focused analysis by selecting the most relevant indicators, such as E3 or E4, which are particularly important for assessing biodiversity. These KPIs are analyzed according to the ESRS (European Sustainability Reporting Standards) framework, ensuring compliance with international standards for biodiversity risk and impact reporting.

The platform provides a detailed analysis of biodiversity, with the MSA (Mean Species Abundance) being the most important indicator for assessing biodiversity. The MSA is displayed for both the site and the control area, allowing users to compare biodiversity levels between the two areas. Setting targets is a crucial part of the process, and this feature allows users to assess whether the MSA for the site matches the MSA for the control area, or if there are discrepancies. Targets can be adjusted based on the specific goals of the project. The MSA is analyzed based on land use, and for those unfamiliar with the MSA, a legend is available for easy reference. Additionally, the source of the data is displayed, ensuring transparency in the information being used. A key feature is the expert technical commentary, offering analysis and recommendations on site biodiversity KPIs. It can be shared with stakeholders to support informed decision-making.

The platform also provides the ability to analyze the microclimate and general climate trends for the area. While nothing particularly unusual is observed, it is clear that the temperature is rising, which is consistent with broader global trends. The platform allows users to examine temperature changes both in the past and in the future, based on different IPCC scenarios (best case, worst case, etc.). Similarly, precipitation data is available, showing how rainfall has changed over the past 3, 10, or 50 years. This is useful for understanding long-term climate patterns in the area and how these trends might impact biodiversity. The platform also analyzes aridity, providing further insight into how climate conditions, such as changes in rainfall and temperature, may be influencing the environment.

The platform enables analysis of site-specific production processes using data from the Encore database, which includes activities such as hard coal and lignite mining. Each process is assigned an impact level, from very low to very high. If a site is active, users can adjust these assessments based on their own data, making the evaluation more accurate. For instance, while the default data might indicate low freshwater use impact, users can update this with field data and refine the description by adding parameters like intensity, reach, and irremediability. Nature strategists may also provide guiding questions to help users improve their inputs. This section is designed for continuous updates, ensuring the information stays current and precise. The same flexibility applies to dependency analysis, allowing users to assess both impacts and dependencies using their own calculations, all within the ESRS framework.

Users can explore various other KPIs, including ground temperature to assess heat island effects. If the mine were open, the area would show high temperatures, indicated by red zones, suggesting the presence of heat islands. However, since the mine is closed, the temperature remains lower, showing cooler conditions. This data is especially valuable for production sites located within natural areas, as it helps monitor and manage temperature changes that may affect biodiversity. The platform also allows users to view RGB images at either low or high resolution, which must be generated. This feature provides a visual representation of the site’s environmental condition over time, allowing users to track changes in nature. Moreover, the platform can generate historical data, showing how the environment has evolved over time, enabling users to better understand long-term trends and the impact of their activities on the surrounding ecosystem.

A key feature of the platform is the analysis of pollinators, which is essential for understanding biodiversity. The platform tracks several KPIs for pollinators, including abundance, nesting suitability, nectar potential, and Mean Species Abundance (MSA). As mentioned earlier, the platform also integrates data from sensors, such as the Spectrum one. This has to be installed on-site to collect data, and it provides a benchmark based on field analysis. It monitors pollinators per hour per year, and in this example, it is installed on a farm in Italy, where six Spectrum sensors have been deployed. At the end of the platform, sensor measurements are displayed, showing the frequency of pollinators detected. While the platform doesn’t identify exact species, it groups insects into clusters, where higher frequency indicates smaller insects. This data helps assess the health and activity of pollinator populations in real-time.

The same functionality is applied to other species, such as birds using the Birdy sensor and small mammals with camera traps. These sensors are part of the platform’s broader monitoring approach, which includes databases, remote sensing, and on-the-ground sensor data. Finally, the platform generates a report using generative AI, which is reviewed by nature strategists. This report provides companies with an overview of the status of biodiversity, climate, and nature, giving a comprehensive picture of the site’s environmental condition. The combination of data sources, technology, and expert analysis allows businesses to make informed decisions about their environmental impact.

The white paper on Nature & Biodiversity reporting is now available for download. As sustainability becomes a core priority for businesses, understanding how nature impacts operations, and how operations impact nature, is no longer optional. Biodiversity reporting is one of the most complex yet essential components of ESG performance. How can companies navigate this evolving landscape and meet rising expectations from regulators, investors, and consumers? The guide provides a practical framework for action. It demystifies key regulatory standards such as CSRD, ESRS, TNFD, and SBTN, while outlining five clear steps to simplify and strengthen biodiversity disclosures. With real-world case studies and expert insights, the white paper shows how the XNatura platform can support businesses in integrating biodiversity into their ESG strategy, helping them stay compliant, build resilience, and lead with purpose in a nature-positive economy.