Best practices to engage meaningfully with biodiversity

'Global economy dependent on nature'

Investors must take notice. Large companies need incentives to get started. And the real economy must transform. 'Biodiversity', that is the key word for PwC's Sustainability Lead Alexander Spek and VBDO Director Angélique Laskewitz. “Our social progress and global economy depend on the stability of our ecosystems and nature,” says Laskewitz. 

For years, the VBDO - the association that has existed for almost thirty years and strives to anchor sustainability in companies - has been publicly asking questions about the preservation of biodiversity during the shareholder meetings of large Dutch companies. 'We want biodiversity conservation to also be included in the governance of boards, but you see the business community is struggling with this topic. Many companies consider it difficult and don't really know how to deal with it. They lack knowledge because it is a relatively new topic and is less easy to measure than climate.' 

Alexander Spek, accountant and, as PwC's Sustainability Lead, responsible for advising clients on nature and strategy, also sees that companies often significantly underestimate the value of nature for the future-proofing of the organization. 'I recently spoke to a large company that is partly dependent on natural resources. However, they felt biodiversity was not a material topic for them. That shows that we have to work on raising awareness.'

Talking to Heijmans, Ahold Delhaize and Signify

VBDO and PwC are therefore joining forces once again. The successful collaboration in the field of taxes and the annual publication of the Tax Transparency Benchmark are the basis for the latest report: 'Biodiversity and Business - Challenges and good practices'. 

According to Spek and Laskewitz, the research into more than thirty companies and the in-depth discussions with at least eleven listed companies show that there is enough will to work on biodiversity. But it is not always easy to report on it quantitatively. 'There is no magical KPI for biodiversity like climate has with CO2', says Laskewitz. 

As part of the study, extensive talks were held with large companies such as Kingfish, Heijmans, DSM-Firmenich, Ahold Delhaize and Signify about the approach to biodiversity, the involvement of the governance, strategy development, setting objectives and the challenges involved. Laskewitz: Many companies are at a loss. Our research shows that despite the complexity of the topic, it is actually possible to meaningfully tackle biodiversity loss.'

'Without strategic anchoring of biodiversity, it is a matter of mopping with the tap open'

'What really surprises me is that a large construction company like Heijmans has developed a so-called 'nature ladder' and is also applying it in practice," Laskewitz continues. 'The nature ladder is a very practical and action-focussed way to incorporate biodiversity and nature into the strategy with a clear step-by-step plan. Without anchoring in the strategy, it is a matter of mopping with the tap open. The examples in the report inspire me as well as hopefully other companies to take concrete strategic steps.' 

For Spek, the conversations with the participating organizations and the many examples that emerge from them once again show how essential harmonized reporting is. 'As a party involved - from customer to investor - you want to form an idea of what all the measures really entail and what their effects are. Clear reporting, as prescribed by the CSRD, ensures transparency and provides everyone the opportunity to compare companies.'

Winning with the Biodiversity Benchmark

PwC and VBDO want to support organizations by creating comparisons. That is why VBDO and PwC experts are now working hard on developing a biodiversity benchmark. 'We see the report that is now available as well as the discussions we are having with CEOs, as the essential exploratory phase. This report is not our end goal. In the coming years we need to work out what a real best practice can look like and at the same time continue to take action. That is why we are working towards a template in which we carefully assess organizations on clear metrics so that mutual comparison really becomes a reality, says Spek.

'Of course there will be a winner, just like with the Tax Transparency Benchmark. But, declaring a winner is a means and not an end. "We aim to encourage organizations to continue working on this topic," says Laskewitz. Spek adds: 'The CSRD obligation certainly helps in this case. Transition plans and reporting in the field of biodiversity are no longer a choice, organizations must start working on them now.'

A gentle but urgent push in the right direction

It is yet another addition to the list of challenges for many organizations. 'Nowadays there are an unprecedented number of material topics for companies. There are a hundred topics that require a CEO's attention. There are plenty of threats and opportunities, so companies must prioritize. I naturally understand that," says Spek. 'I just continue to emphasize that nature is fundamental to healthy life on earth and forms the basis of the entire pyramid.' 

Everyone has a role to play, Spek concludes. 'It is up to Angélique and me to gently but urgently push organizations in the right direction with the collaboration between PwC and VBDO, the research into best practices of listed organizations and the development of the future 'Biodiversity Benchmark'. Of course, nature does not wait until we have developed the perfect approach.'