Biodiversity: What It Is and How It Affects Business

Disclaimer: this is an automated translation from Italian. Go to the original article.

Biodiversity is the foundation on which the entire ecological balance of our planet rests, encompassing the variety of life forms that inhabit ecosystems, from the smallest cells to large mammals, and the relationship between these species and their environments. The term biodiversity, therefore, not only refers to the variety of species, but also to their distribution and interconnection, which ensure the stability of ecosystems. However, the increasing pressure on natural resources from human activities has led to a worrying decline in biodiversity. Among the main causes are climate change, pollution, deforestation, and the introduction of invasive species, which threaten not only biological diversity but also ecosystem stability.

Biodiversity plays a fundamental role not only for environmental balance but also for economic and business sustainability. While business actions and human activities are a cause of environmental degradation, on the other hand, businesses heavily rely on the services that ecosystems provide such as pollination, water purification, and soil fertility. This dependency link has been highlighted in numerous reports, including those from the World Economic Forum, which has identified biodiversity loss as one of the main risks for the global economy in the coming years. The well-being, prosperity, and long-term success of a company are closely linked to the health of the ecosystems that surround it.

To understand the impacts that companies can have on biodiversity, we can consider, for example, the food sector, which by its very nature obtains raw materials from biodiversity and is responsible for the increased use of land and the release of pollutants. Or a company operating in the logistics sector, which can be responsible for the introduction of alien species but also for increased CO2 emissions due to transport. On the other hand, biodiversity plays a very important role for companies in terms of risks and dependencies.

In the face of all these impacts, risks, and dependencies, it is increasingly clear that companies play a crucial role in protecting biodiversity and preventing its degradation. The topic of reporting on the relationship with biodiversity is becoming ever more central for companies, particularly due to the increasing legislative pressure that European businesses are experiencing. The recent sustainability reporting directive, the CSRD (Corporate Sustainability Reporting Directive) has extended the reporting obligation to a number of companies that will grow between 2025 and 2029. The CSRD primarily applies to medium-large companies and listed SMEs, and it is estimated that about 50,000 companies in Europe will be subject to these new provisions. Specifically, the directive will extend the reporting obligation according to the timelines outlined in this article

As defined by the guidelines dictated by reporting standards, the first step to undertake is the monitoring of the biodiversity health status in the company's area of responsibility and the measurement of the impacts that the latter has on natural ecosystems. To support companies in this complex analysis, 3Bee srl has launched XNatura, the internal division of Nature Intelligence specialized in environmental monitoring. XNatura's first product is its Environmental Platform, the first integrated platform that allows for monitoring and analyzing environmental impacts and risks through thematic Suites in line with ESRS standards for sustainability reporting: Climate Change, Pollution, Water Resources, and Biodiversity and Ecosystems. Each Suite focuses on specific indexes, providing a clear view of environmental impacts, dependencies, risks, and opportunities related to production activities and company operations.

This article was created as part of the "Biodiversity services EU expansion" project (CUP: E43D22000480009) under the Lombardy Region's "PR FESR 2021-2027 – INTERNATIONALIZATION LINE 21-27" call, aimed at supporting the internationalization of Italian companies. 3Bee is the naturetech company that develops innovative technologies for monitoring, protecting, and regenerating biodiversity, supporting companies in defining customized climate strategies based on the analysis of their impacts and dependencies on nature. With a consolidated portfolio in Italy, Germany, and France and significant partnerships, 3Bee continues its expansion into international markets to create a concrete impact through technology.