What does biodiversity footprint mean – and why is it important?

Biodiversity footprint refers to an indicator that assesses the extent to which human activities weaken biodiversity and the living conditions of species. An organisation’s  biodiversity footprint takes into account the impacts of both its own operations and the value chain. The biodiversity footprint can also be calculated for a product or an individual project.

Biodiversity footprint is part of an organisation’s toolbox for impactful nature work.

There is no single standardised method for calculating the biodiversity footprint, but there are several methods and tools available. Sweco uses a calculation method based on the LC-Impact methodology, which means that the results describe how many of the world’s species are at risk of extinction if operations continue as before. The results are presented in the PDF unit, which consists of the words Potentially Disappeared Fraction of Species.

In practice, the figures obtained as a result of the calculation of a single organisation are often very small, only fractions of a percentage. However, in relation to the currently known number of species in the world, i.e. about 8 million species, the organisation’s biodiversity footprint can pose a threat to several, even hundreds, of species.

The key role of the biodiversity footprint among the various tools for nature work is important, as it increases understanding of nature impacts, makes these impacts visible and helps to identify the activities that are most likely to contribute to biodiversity loss. The biodiversity footprint can be used to identify where the greatest impacts are geographically and the most essential points to focus on in nature work.

The calculation of the biodiversity footprint is largely based on existing data

When an organisation is considering what biodiversity footprint calculation means in practice, it is essential to understand that it does not necessarily require an extensive survey of suppliers to understand the drivers of biodiversity loss.

The calculation of the biodiversity footprint can be done largely with the same information that organisations already collect annually from their own operations:

• energy and fuel use
• water consumption and land use
• procurement information, such as cost or quantity information

This information is converted into nature impacts using the factors of the calculation method. In addition, the calculation method utilises geographical factors for the purchases, depending on which country they origin – either based on the organisation’s own data or based on statistical global assumptions. If possible, value chain information can be supplemented with e.g. in terms of the origin of raw materials, which also increases the accuracy of calculating the biodiversity footprint.

What does the biodiversity footprint tell us – and what does it not?

There are some special features in the interpretation of the results of the biodiversity footprint calculation that should be taken into account. A few key observations:

• The calculation of the biodiversity footprint is based on data from a certain period of time, typically one year. However, the predicted impact of the result will not happen one-off, but the results are based on the assumption that the activities and the pressure on nature will continue in the same way in the longer term.
• Because the biodiversity footprint is not examined on a one-off basis, the annual biodiversity footprints cannot be added together in the same way as, for example, annual greenhouse gas emissions.
• The biodiversity footprint does not tell us with certainty how many species will become extinct, but what is likely to cause species loss in the organisation’s current operations.
• It is advisable to repeat the calculation if there are significant changes in operations.
• There is no single standardized method for calculating the biodiversity footprint, but there are several methods and tools available, which can make it challenging to compare the results. The same calculation method is applied in slightly different ways, data banks are still updated and calculation tools differ from each other.

Based on the results of the biodiversity footprint, it is impossible to say with certainty the extent of the extinction of species. This is a likely impact, in addition, only some of the world’s species have been mapped and estimates of the total number of species in the world vary. The most important thing in the result is not the final number of species under threat of extinction, but what drives that extinction.

At Sweco, the calculation of the biodiversity footprint is carried out according to the client’s needs, and the method that best suits the client’s goal is always chosen as the tool.

This is how the biodiversity footprint advances nature work

The biodiversity footprint calculation method is still evolving, but it already offers at least three key benefits to organisations:

1. Nature work gets off the ground and the significance of value chains is made visible

Calculating the biodiversity footprint serves as a good first tool for mapping the nature impacts of operations. It helps to better understand the nature impacts generated through procurements and their geographical targeting, among other things. Based on the results, nature work can be targeted justifiably, and the calculation also supports the materiality analysis of nature impacts, for example, for CSRD reporting.

2. Knowledge-based assessment supports the next stages of nature work

The biodiversity footprint provides a research-based method for identifying the key drivers of biodiversity loss. When the results of the biodiversity footprint reliably make visible the functions – procurements, processes or business areas – that are most likely to drive biodiversity loss, it becomes easier to target the organisation’s nature work. The factors, background data and method used in the calculation are based on peer-reviewed research, and the results can be utilised, for example, in the organisation’s risk assessments.

3. Nature work improves business continuity and resilience

With the help of the biodiversity footprint, resources can be allocated not only to the most effective measures, but also to more detailed assessments where they are most needed. As understanding grows, assessments of business risks and dependencies supported by the biodiversity footprint can also serve as a starting point for broader strategic changes, such as drawing up a transition plan and securing business continuity in the long term.

Biodiversity footprint supports a nature-positive transition

The role of organisations in halting and reversing biodiversity loss has become more specific in recent years. The UN’s Kunming–Montreal Global Biodiversity Targets provide a common direction, and frameworks such as the Taskforce on Nature-related Financial Disclosures (TNFD) and the Science Based Targets for Nature (SBTN) support the identification of impacts on nature, target setting and progress monitoring.

Companies have a growing need to understand what the real environmental impacts of their operations are. The biodiversity footprint is one of the key tools that:

• Helps to start nature work
• Identify the key drivers of biodiversity loss
• Brings a strong knowledge base to decision-making
• Supports justified measures both in its own operations and in value chains
• Supports organisations’ nature-positive transition
• Strengthens the long-term sustainability of the business

Is now the right time to find out what the biodiversity footprint means for your own organisation – and how it can help you take the next step towards more impactful nature work?

Author: Piia Pessala, Director, strategic planning