Despite recognizing its materiality, businesses lack a roadmap to approach the issue of biodiversity - there is no clear framework on how to formulate and implement a biodiversity management plan at the corporate level. This presentation puts forth a step-wise corporate biodiversity management framework.

2. Biodiversity: the rich tapestry of life
0 "Biological diversity" means the variability among living organisms from all sources
including, inter alia, terrestrial, marine and other aquatic ecosystems and the ecological
complexes of which they are part; this includes diversity within species, between species and
of ecosystems.
 The UN Convention on Biological Diversity (CBD), a global agreement addressing all aspects of biodiversity

3. Three Levels of Biodiversity
Species is indeed the most common currency by which biodiversity is measured. However,
species diversity is only one component of biodiversity. To properly catalogue all the life on earth,
we also have to appreciate the genetic diversity that exists within species as well as the diversity
of entire habitats and ecosystems. Thus, biodiversity is measured at three different levels:
0 Genetic Diversity - Genetic diversity refers to genetic differences within each species - for
example, between varieties of crops and between breeds of livestock. Genetic diversity is
crucial to food security. Today, crop genetic diversity has eroded significantly with a mere 100-
odd species accounting for ninety percent supply of food crops.

4. Three Levels of Biodiversity
0 Species Diversity - A species is a group of living organisms that can interbreed. Examples
of species include, blue whales, tigers, the mango tree. Species diversity is not evenly
distributed around the world or across continents. Thirty-four biodiversity hotspots have
been identified globally. These hotspots collectively comprise just 2.3% of the Earth’s land
surface yet hold especially high numbers of species that occur nowhere else – half the
world’s plant species and 42% of all terrestrial vertebrate species.

5. Three Levels of Biodiversity
0 Ecosystem Diversity- Ecosystem (short for Ecological System) is a community of living
organisms in dynamic interaction with the physical and chemical environment in an area.
Ecosystems range from deserts, forests and mountains to coral reefs, lakes, islands and even
agricultural landscapes.
0 We depend on ecosystems for our very survival. One measure of our dependence on
ecosystems is the ecological footprint.

6. Ecosystem Services
The benefits that we derive from ecosystems are called Ecosystem Services. The
Millennium Ecosystem Assessment (2005), a global study on the state of earth’s ecosystems,
has classified them into four categories: : provisioning, regulating, cultural, and supporting.

7. Biodiversity Under Threat
The Millennium Ecosystem Assessment(MA) was a global audit of the world’s ecosystems,
completed in 2005. It was commissioned by the United Nations and involved more than 1000
scientists worldwide. As per MA approximately 60% (15 out of 24) of the ecosystem services
of the earth degraded or used unsustainably, including fresh water, capture fisheries, air and
water purification, and the regulation of regional and local climate, natural hazards, and
pests.

8. Biodiversity Under Threat
Often called the barometer of life, The IUCN Red List of Threatened Species is the
world's most comprehensive inventory of the threat status of species. As per the
2015-4 version, more than 22,700 species are threatened.

9. Biodiversity Under Threat
WWF’s ‘Living Planet Index’ tracks the population trends of over 2500 vertebrate
species. Vertebrate species populations have declined dramatically in Africa, Asia
and South America.

10. Drivers of Biodiversity Decline
The biodiversity loss that we have been witnessing over the past few decades has been attributed to a
range of human-induced drivers. These include direct drivers such as deforestation and land use change,
climate change and exploitative harvesting of wild species. On the other hand, indirect drivers include
trends such as rise in human population and increase in trade and commerce, which cause biodiversity
loss by intensifying one or more of the direct drivers.
Source: ECORYS
Business as a Driver - Although agriculture is the single largest driver of habitat loss , extractive
industries such as mining, oil & gas and infrastructure development such as dam building, road
construction and commercial agriculture (Palm Oil, soy, biofuels) leads to degradation and fragmentation
of habitats.

11. The Business Case for Biodiversity Management
Source: www.ifc.org

12. Identifying
Biodiversity
Dependencies
Identifying
Biodiversity
Impacts
Assessing
Biodiversity Risks
Developing a
Biodiversity
Management Plan
Implementing a
Biodiversity
Management Plan
Corporate Biodiversity Management: A Framework
• Biodiversity Conservation
Measures
• Biodiversity Impact
Mitigation Measures
• Sustainable Use Measures
• Best Practice Guidelines
• Tools and Instruments

13. 0 Corporate Biodiversity Management should draw from the three goals of biodiversity
conservation identified by the United Nations’ Convention on Biological Diversity
(CBD), a global multilateral treaty governing the conservation and management of
biodiversity:
1. Conservation of Biodiversity
2. Sustainable Use of its components
3. Fair and equitable sharing of benefits arising from genetic resources
0 Compliance with national regulations needs to be built into the Biodiversity
Management program of a company, especially in case of businesses which have an
impact on biodiversity.
0 International Risk Management Standards such as ‘Performance Standard 6:
Biodiversity Conservation and Sustainable Management of Living Natural Resources’
can also provide best practice guidance for a corporate biodiversity management
program
Corporate Biodiversity Management: Underpinnings

14. 0 The first step towards biodiversity management is to ascertain the extent to which a particular
business depends on biodiversity and ecosystem services
0 All businesses depend on biodiversity directly or indirectly. However in some businesses the
dependencies are more direct and significant. For such businesses, biodiversity management is more
important.
0 Biodiversity dependencies need to be identified for the entire supply chain of the business e.g.
agribusiness sector supplies to the farming sector which depends on agrobiodiversity
0 Some industry sectors have a clear-cut dependence on biodiversity
Industry Sector Biodiversity Dependency
Agribusiness
(e.g. seeds, fertilizers, pesticides)
Depends on farming sector depends on crop genetic diversity for seeds and ecosystem
service of pollination
Paper Depends on forest ecosystems for raw material i.e. wood pulp
Textiles Depends on forest ecosystems for raw material i.e. fiber
Pharmaceuticals Depend on medicinal plants for raw material
Tourism Depends on cultural and aesthetic value provided by ecosystems
Step 1: Identifying Dependencies on Biodiversity

15. 0 The next step requires ascertaining the impacts the business may be having on biodiversity and
ecosystems
0 Again it is important to identify impacts in the entire supply-chain of the business e.g. thermal power
sector depends on coal mining sector which in-turn has a high biodiversity impact as it can cause
habitat destruction when mining is carried out in fragile ecosystems
0 Some sectors have a disproportionately high impact on biodiversity. High dependency sectors
already fall into this category as they can cause impacts due to unsustainable extraction. In
addition, extractive and infrastructure industries can have a high biodiversity impact as discussed in
the table below
Industry Sector Biodiversity Impact
Mining (ore or coal) Cause habitat destruction when carried out in fragile ecosystems; Mining waste can also pollute
water bodies and impact aquatic biodiversity
Oil & Gas Cause habitat destruction when oil & gas infrastructure is built in fragile ecosystems e.g. offshore oil
rigs damage coastal and marine ecosystems such as coral reefs
Cement Uses raw material such as limestone which can cause ecosystem damage during quarrying
Infrastructure (Dams,
ports, roads,
railways)
Cause habitat destruction when built in fragile ecosystems; Linear infrastructure such as roads and
railways cause habitat fragmentation making it more vulnerable to other disturbances – they also
disrupt migratory routes and corridors
Step 2: Identifying impacts on biodiversity

16. 0 Impact Matrix - It is important to identify which component of the business cycle is causing biodiversity impact viz.
sites and facilities, supply chain, manufacturing or transport and logistics. It is also important to see which driver of
biodiversity impact gets triggered. The following matrix presents the various impacts.
Step 2: Identifying impacts on biodiversity: Impact Matrix
ComponentsoftheBusinessCycle
Drivers of Biodiversity Decline
Habitat Loss and
Fragmentation
Invasive Species Overexploitation Pollution
Sites and facilities
Habitat conversion (forest
clearing, wetland draining)
for infrastructure
Spread of invasive species
due to habitat conversion
Waste Noise and emissions
from construction affect flora
and fauna
Supply chains,
commodities and
materials
Habitat conversion for
monoculture plantations
Cultivation of new non-
native resources
Overfishing, over
extraction of forest
resources
Manufacturing
Waste, noise and emissions
contaminate habitats; can
cause plant / animal die offs
Transport and
logistics
Roads and pipelines disrupt
wildlife corridors and
migratory routes
Spread of invasive species
through transport of raw
material/products
Noise and Emissions from
vehicles affect flora and fauna

17. Source: WEF Report on Business and Biodiversity Risk
Step 3: Biodiversity Risk Assessment
Biodiversity Risk
Assessment Matrix

18. 0 The next step is to assess how
which biodiversity dependencies
and impacts can translate into
physical, regulatory, financial and
markets risks for the business.
The risks thus identified help
prioritize biodiversity
management measures. The
following risk matrix for major
industry sectors can be used to
identify risks.
Source: WEF Report on Business and Biodiversity Risk
Biodiversity Risk
Assessment Matrix
Step 3: Biodiversity Risk Assessment

19. The biodiversity management plan can consist of three types of measures
depending upon the type of business:
1. Biodiversity Impact Mitigation Measures – for businesses with high impact
2. Sustainable Use Measures – for businesses with direct dependency on
biodiversity
3. Biodiversity Conservation Measures
Step 4: Development of Biodiversity Management Plan

20. 1. Biodiversity Impact Mitigation Measures
The Mitigation Hierarchy guides impact mitigation measures:
Step 4: Development of Biodiversity Management Plan

21. 1. Biodiversity Impact Mitigation Measures
1) Avoidance: measures taken to avoid creating impacts from the outset, such as careful spatial or
temporal placement of infrastructure or disturbance. For example, placement of roads outside
of rare habitats or key species’ breeding grounds, or timing of seismic operations when
aggregations of whales are not present. Avoidance is often the easiest, cheapest and most
effective way of reducing potential negative impacts, but it requires biodiversity to be
considered in the early stages of a project.
2) Minimization: measures taken to reduce the duration, intensity and/or extent of impacts that
cannot be completely avoided. Effective minimization can eliminate some negative impacts.
Examples include such measures as reducing noise and pollution, designing powerlines to
reduce the likelihood of bird electrocutions, or building wildlife crossings on roads.
Step 4: Development of Biodiversity Management Plan

22. 1. Biodiversity Impact Mitigation Measures
3) Rehabilitation/restoration: measures taken to improve degraded or removed ecosystems
following exposure to impacts that cannot be completely avoided or minimized. Restoration
tries to return an area to the original ecosystem that occurred before impacts, whereas
rehabilitation only aims to restore basic ecological functions and/or ecosystem services (e.g.
through planting trees to stabilize bare soil). Rehabilitation and restoration are frequently
needed towards the end of a project’s life-cycle, but may be possible in some areas during
operation (e.g. after temporary borrow pits have fulfilled their use).
4) Offset: measures taken to compensate for any residual, adverse impacts after full
implementation of the previous three steps of the mitigation hierarchy. Biodiversity offsets are
of two main types: ‘restoration offsets’ which aim to rehabilitate or restore degraded habitat,
and ‘averted loss offsets’ which aim to reduce or stop biodiversity loss (e.g. future habitat
degradation) in areas where this is predicted. Offsets are often complex and expensive, so
attention to earlier steps in the mitigation hierarchy is usually preferable
Step 4: Development of Biodiversity Management Plan

23. 2. Biodiversity Conservation Measures
These are measures which may be undertaken outside the project site to support
biodiversity conservation programs. These can include
0 Biodiversity conservation awareness
0 Policy advocacy
0 Support to conservation research
0 Capacity building of local conservation stakeholders
0 Support to implementation conservation programs including:
• strengthening of ineffective protected areas
• according protection to critical unprotected sites
• establishing corridors and buffer zones
• reintroduction of species
• removal of invasives
Step 4: Development of Biodiversity Management Plan

24. 3. Sustainable Use/Sourcing Measures
These measures are relevant for commodities and forestry based businesses:
0 Establish traceability to the source
0 Ensure suppliers are in compliance with the RSPO, FSC, PEFC
0 Confirm zero deforestation at the source
0 Prioritize recycled material e.g. paper as a raw material
Step 4: Development of Biodiversity Management Plan

25. Best Practice Guidelines and Case Studies
1. Agribusiness
Best Practice Guidelines
Protecting biodiversity in production landscapes - UNDP
Better Management Practices and Agribusiness – IIED and Proforest
World Agriculture and the Environment: A Commodity-By Commodity Guide to Impacts and
Practices
Case Study: Syngenta, a global Swiss agribusiness that produces agrochemicals and seeds, has
initiated Operation Pollinator an international biodiversity programme intended to boost the
number of pollinating insects on farmland by helping to provide essential habitats for feeding and
nesting in the field margins.
Read Case Study
Step 5: Implementation of the Biodiversity Management Plan

26. Best Practice Guidelines and Case Studies
2. Extractive Industries i.e. mining, oil and gas metals or coal, limestone
Best Practice Guidelines
Good Practice Guidance for Mining and Biodiversity – ICMM
Biodiversity management in the cement and aggregates sector – IUCN
Biodiversity Management Plan (Guidance) – Cement Sustainability Initiative
BBOP Standard on Biodiversity Offsets
Case Study: Global mining giant Rio Tinto has adopted the policy of Net Positive Impact on
biodiversity and uses the Mitigation hierarchy to manage biodiversity risks of its operations.
Read Case Study
Step 5: Implementation of the Biodiversity Management Plan

27. Best Practice Guidelines and Case Studies
3. Forestry-based Industries i.e. Paper, Textiles
Best Practice Guidelines
Forestry Sector and Biodiversity Conservation Best Practice Benchmarking
Case Study: Global viscose giant Aditya Birla Group has committed to eliminate sourcing from
the world’s ancient and endangered forests for all of its Viscose fibers, which are widely used in
clothing and textiles.
Read Case Study
Step 5: Implementation of the Biodiversity Management Plan

28. Tools and Instruments
0 WRI’s The Corporate Ecosystem Services Review - Guidelines for Identifying
Business Risks & Opportunities Arising from Ecosystem Change
0 Integrated Biodiversity Assessment Tool for Business - Information and tools
to make informed decisions about biodiversity risk and to report upon
environmental performance
0 IUCN’s World Database on Protected Areas - global spatial dataset on marine
and terrestrial protected areas
0 Global Biodiversity Information Facility – Free and Open Access Data on
Species
0 InVEST – Integrated Valuation of Ecosystem Services and Tradeoffs
Step 5: Implementation of the Biodiversity Management Plan