Metadata Factsheet

PDF Generated On: Fri Nov 22 2024 11:12:26 GMT+0000 (Coordinated Universal Time)

1. Indicator name

Number of companies disclosing their biodiversity-related risks, dependencies, and impacts

2. Date of metadata update

2024-03-28 00:00:00 UTC

3. Goals and Targets addressed

3a. Goal

N/A

3b. Target

Headline indicator for Target 15Take legal, administrative or policy measures to encourage and enable business, and in particular to ensure that large and transnational companies and financial institutions:

  1. Regularly monitor, assess, and transparently disclose their risks, dependencies and impacts on biodiversity, including with requirements for all large as well as transnational companies and financial institutions along their operations, supply and value chains and portfolios;
  1. Provide information needed to consumers to promote sustainable consumption patterns;
  1. Report on compliance with access and benefit-sharing regulations and measures, as applicable; in order to progressively reduce negative impacts on biodiversity, increase positive impacts, reduce biodiversity-related risks to business and financial institutions, and promote actions to ensure sustainable patterns of production

4. Rationale

Target 15 seeks to foster more sustainable patterns of production and financing. It aims to progressively reduce the risks related to biodiversity loss faced by business and finance as well as their negative impacts on biodiversity, and to increase their positive contributions to nature. By reporting on risks, dependencies, and impacts, companies and financial institutions contribute to a broader understanding of how their operations, supply and value chains, and portfolios interact with biodiversity. While there are several (private sector) reporting initiatives, there is currently no globally comprehensive information on this issue. This indicator - on disclosing biodiversity-related risks, dependencies, and impacts of businesses and finance - would address that important information gap. It encourages large and transnational companies and financial institutions to assess and recognize their role in biodiversity conservation. This involves assessing the impacts of their activities (or the operations they finance) on biodiversity and analysing the risks posed by biodiversity loss to their operations and supply chains. Subsequently, companies are prompted to take steps to address these identified impacts and risks.

Additionally, through comprehending the interconnections between biodiversity, businesses, and finance, governments can better formulate targeted regulations that address the most pressing challenges and promote sustainable practices. This broader understanding enables governments to identify the areas where regulatory intervention and support are most vital, allowing for the strategic allocation of resources to both mitigate adverse impacts and encourage positive contributions.

5. Current level of development

5a. Definition

Indicator definition:

This indicator requests countries to measure the number of large and transnational companies and financial institutions that disclose information about their interactions with biodiversity in terms of risks, dependencies, and impacts. Companies and financial institutions reporting on these aspects typically disclose information about how their operations, their supply and value chains, or the operations they finance, affect biodiversity, the dependencies they have on biodiversity, and the risks posed by biodiversity loss to their operations and supply chains.

Other key concepts and definitions:

Companies, under this indicator are understood as enterprises and financial institutions that are nationally recognised as being large’. Alternatively, parties may choose to rely on the World Bank’s definition for SMEs and consequently of large companies. The World Bank defines SMEs as those enterprises with a maximum of 300 employees, $15 million in annual revenue, and $15 million in assets.

While companies often deliver consolidated reports at a group level, it's important to recognize that many of their impacts manifest locally, and some subsidiaries or franchises produce their own sustainability reports. For the purpose of this indicator, both the group and subsidiary/franchise levels can be counted as distinct entities. Therefore, when using the term "company," it can refer to either the parent company or a franchise/subsidiary, depending on how they disclose information on biodiversity-related risks, dependencies and impacts.

Disclosing, is understood for this indicator as the act of making information available to the general public and stakeholders, in a clear and transparent manner. In this context, it means making information publicly available about a company’s impacts and dependencies on biodiversity, and its risks from biodiversity loss.

  • Biodiversity-related risks to businesses are categorised as:
  • Ecological risks, i.e., risks related to biodiversity-related ecological impacts and dependencies, linked to biodiversity loss or ecosystems degradation.
  • Liability risks, where parties who have suffered biodiversity-related loss or damage seek compensation for those they hold responsible.
  • Risks related to achieve transformative change for biodiversity, including regulatory risks, market risks and financial risks.

(OECD, Biodiversity: Finance and the Economic and Business Case for Action, 2019)

Dependencies are aspects of environmental assets and ecosystem services that a person or an organisation relies on to function. A company’s business model, for example, may depend on the ecosystem services of water flow, water quality regulation and the regulation of hazards like fires and floods; provision of suitable habitat for pollinators, who in turn provide a service directly to economies; and carbon sequestration. (Sources: TNFD Glossary of Key Terms, version September 2023, and adapted from Science Based Targets Network (2023) SBTN Glossary of Terms )

Impacts refer to a change in the state of nature (quality or quantity), which may result in changes to the capacity of nature to provide social and economic functions. Impacts can be positive or negative. They can be the result of an organisation’s or another party’s actions.

  • Impacts may be:
  • Direct – a change in the state of nature caused by a business activity with a direct causal link;
  • Indirect – a change in the state of nature caused by a business activity with an indirect causal link (e.g. indirectly caused by climate change generated by greenhouse gas emissions); and/or
  • Cumulative – a change in the state of nature (direct or indirect) that occurs due to the interaction of activities of different actors operating in a landscape or freshwater/marine area.

(Sources: TNFD Guidance on the identification and assessment of nature related issues: The LEAP approach, version October 2023; Science Based Targets Network (2023) SBTN Glossary of Terms; Capitals Coalition (2016) The Natural Capital Protocol; Climate Disclosure Standards Board (2021) Application guidance for biodiversity-related disclosures.)

5b. Method of computation

In order to be counted under the indicator, companies and financial institutions need to publicly disclose their biodiversity-related risks, impacts and dependencies on a regular basis, and in line with relevant standards, regulations and/or best practices. For example, through disclosure of risks, impacts and dependencies on biodiversity, in line with:

  • International Standards, e.g., as evolving from the International Sustainability Standards Board (ISSB)
  • Regional regulation, e.g., European Union Corporate Sustainability Reporting Directive (CSRD)
  • National regulation, e.g., France Energy and Climate Law (LEC), India’s Business Responsibility and Sustainability Report (BRSR)
  • Voluntary standards, e.g., Global Reporting Initiative (GRI)
  • Voluntary disclosure frameworks / guidance, e.g. Taskforce for Nature-related Financial Disclosure (TNFD), Science-Based Targets for Nature (SBTN), Biodiversity Disclosure Protocol (South Africa)

The computation of the indicator involves a straightforward counting process. Any entity that adheres to the "company" definition (see 5a) and that discloses its biodiversity-related risks, impacts and dependencies, per description above, is counted as a disclosing company within the context of this indicator.

5c. Data collection method

Governments have various channels through which they can gather information about which and how many companies and financial institutions disclose information about their biodiversity risks, dependencies, and impacts. It's important for governments to use a combination of approaches to ensure a comprehensive overview of biodiversity disclosures within their country. Collaborative efforts with businesses, industry stakeholders, and civil society can contribute to a more robust and effective monitoring system:

  • Public institutions: Governments could engage with (inter)national standard setters, regulators, national ministries, or other public institutions to explore collaboration around collating information on the number of businesses disclosing relevant data.

For example, in France, companies send their reports to the Autorité des Marchés Financiers – AMF, to be in compliance with the energy-climate law (article 29) requiring asset management companies and financial companies (for their asset management activities) to disclose their nature-related risks, impacts and dependencies. These reports are then sent to ADEME (a public environmental institution), which makes a comparative analysis.

  • International reporting platforms: Companies may report on biodiversity disclosures through international reporting platforms such as the CDP and the World Benchmarking Alliance. Also, the GRI holds a registry of GRI Standards reports. Governments can explore data-sharing arrangements with such platforms to help assess which companies are disclosing biodiversity-related information.
  • Framework developers: Organizations providing frameworks and guidance to companies and financial institutions on assessing and disclosing nature related risks, dependencies and impacts (e.g., TNFD and SBTN) may track which companies apply their guidance. For example, starting in 2025, the TNFD plans to publish information about which organizations are TNFD adopters.
  • Chambers of Commerce: While specifics can vary by country and local regulations, the Chambers of Commerce often play a key role in the collection and dissemination of certain business documents, including annual reports. The annual reports serve as the main disclosure tool for companies reporting on risks, dependencies, impacts and on biodiversity.
  • Industry associations: Industry associations may promote biodiversity disclosures within specific sectors. Governments can work together with these associations to promote sustainable practices and gain insight into the number of companies disclosing relevant information.
  • NGOs, IGOs and research organizations: Collaborating with non-governmental organizations (NGOs), and intergovernmental organizations (IGOs) and research institutions can provide governments with valuable insights. These organizations often conduct assessments and gather data on corporate sustainability practices, including biodiversity disclosures. For example, the Global Biodiversity Information Facility (GBIF) facilitates publication and use of private-sector data on biodiversity. This includes the data that companies collect during monitoring and impact assessment activities. Biodiversity data-sharing requirements or recommendations are increasingly becoming part of business and financial standards and best practices, including through the Equator Principles relating to large private financial institutions.
  • Surveys and Recognition Programs: Directly engage with companies through surveys or recognition programs may help gather specific information on biodiversity disclosures.
  • Corporate filings: Review corporate filings, including annual reports and other regulatory submissions, where companies may provide details about their biodiversity-related practices.
  • Artificial Intelligence tools / Online data searches: Many companies voluntarily publish sustainability reports or disclose information on their websites. With the help of Artificial Intelligence Tools or web-based searches, governments can review these publicly available documents to identify companies that provide information on biodiversity-related risks, dependencies, and impacts.
  • UNCTAD / UNEP / UN Global Compact: United Nations Conference on Trade and Development (UNCTAD) and United Nations Environment Programme (UNEP) are the Custodian Agencies for the SDG indicator 12.6.1: Number of companies publishing sustainability reports. Some SDG 12.6.1 indicator data is published on UNEP’s World Environment Situation Room (WESR) website, as well as through UN SDG Indicator Database. Moreover, the United Nations (UN) Global Compact encourages businesses and organizations worldwide to adopt sustainable and socially responsible policies and to report on their implementation.
  • World Business Council for Sustainable Development (WCSD): A global, CEO-led organization of leading businesses working together to accelerate the transition to a sustainable world.

5d. Data sources

See section 5c.

5e. Data providers

In most countries there are no specific entities tasked with gathering and assessing all relevant information regarding the disclosure of companies' biodiversity-related risks, dependencies and impacts.

5f. Data compilers

Not identified, see above.

5g. Gaps in data coverage

Significant data gaps are expected, as most countries lack specific entities tasked with systematically gathering and assessing companies’ disclosures on biodiversity-related risks, dependencies and impacts, risks.

6. Scale

6a. Scale of use

Scale of application: Global, Regional, National

Scale of data disaggregation/aggregation:

Global/ regional scale indicator can be disaggregated to national level: Yes

National data is collated to form global indicator: Yes

7.Other MEAs, processes and organisations

7a. Other MEA and processes

No

8. Disaggregation

Recommended disaggregation include: By sector. Aligned with the sector classification proposed by UNCTAD and UNEP for SDG indicator 12.6.1, using the International Standard Industrial Classification of All Economic Activities (ISIC) (first level classification):

  1. Agriculture, forestry and fishing
  2. Mining and quarrying
  3. Manufacturing
  4. Electricity, gas, steam and air conditioning supply
  5. Water supply; sewerage, waste management and remediation activities
  6. Construction
  7. Wholesale and retail trade; repair of motor vehicles and motorcycles
  8. Transportation and storage
  9. Accommodation and food service activities
  10. Information and communication
  11. Financial and insurance activities
  12. Real estate activities
  13. Professional, scientific and technical activities
  14. Administrative and support service activities
  15. Public administration and defense; compulsory social security
  16. Education
  17. Human health and social work activities
  18. Arts, entertainment, and recreation
  19. Other service activities
  20. Activities of households as employers; undifferentiated goods- and services-producing activities of households for own use
  21. Activities of extraterritorial organizations and bodies

9. Related goals, targets and indicators

10. Data reporter

10a. Organisation

N/A

10b. Contact person(s)

In most countries there are no specific entities tasked with gathering and assessing all relevant information regarding the disclosure of companies' biodiversity-related risks, dependencies and impacts.

Odile Conchou(odile.conchou@wanadoo.fr)

Macha Kemperman(mkemperman@worldbank.org)

Geraldo Fernandes (gwf@biodiv.com.br)

Ntakadzeni Tshidada (n.tshidada@sanbi.org.za)

12. Graphs and diagrams (if available)

1. Indicator name

Number of companies disclosing their biodiversity-related risks, dependencies, and impacts

2. Date of metadata update

2024-03-28 00:00:00 UTC

3. Goals and Targets addressed

3a. Goal

N/A

3b. Target

Headline indicator for Target 15Take legal, administrative or policy measures to encourage and enable business, and in particular to ensure that large and transnational companies and financial institutions:

  1. Regularly monitor, assess, and transparently disclose their risks, dependencies and impacts on biodiversity, including with requirements for all large as well as transnational companies and financial institutions along their operations, supply and value chains and portfolios;
  1. Provide information needed to consumers to promote sustainable consumption patterns;
  1. Report on compliance with access and benefit-sharing regulations and measures, as applicable; in order to progressively reduce negative impacts on biodiversity, increase positive impacts, reduce biodiversity-related risks to business and financial institutions, and promote actions to ensure sustainable patterns of production

4. Rationale

Target 15 seeks to foster more sustainable patterns of production and financing. It aims to progressively reduce the risks related to biodiversity loss faced by business and finance as well as their negative impacts on biodiversity, and to increase their positive contributions to nature. By reporting on risks, dependencies, and impacts, companies and financial institutions contribute to a broader understanding of how their operations, supply and value chains, and portfolios interact with biodiversity. While there are several (private sector) reporting initiatives, there is currently no globally comprehensive information on this issue. This indicator - on disclosing biodiversity-related risks, dependencies, and impacts of businesses and finance - would address that important information gap. It encourages large and transnational companies and financial institutions to assess and recognize their role in biodiversity conservation. This involves assessing the impacts of their activities (or the operations they finance) on biodiversity and analysing the risks posed by biodiversity loss to their operations and supply chains. Subsequently, companies are prompted to take steps to address these identified impacts and risks.

Additionally, through comprehending the interconnections between biodiversity, businesses, and finance, governments can better formulate targeted regulations that address the most pressing challenges and promote sustainable practices. This broader understanding enables governments to identify the areas where regulatory intervention and support are most vital, allowing for the strategic allocation of resources to both mitigate adverse impacts and encourage positive contributions.

5. Current level of development

5a. Definition

Indicator definition:

This indicator requests countries to measure the number of large and transnational companies and financial institutions that disclose information about their interactions with biodiversity in terms of risks, dependencies, and impacts. Companies and financial institutions reporting on these aspects typically disclose information about how their operations, their supply and value chains, or the operations they finance, affect biodiversity, the dependencies they have on biodiversity, and the risks posed by biodiversity loss to their operations and supply chains.

Other key concepts and definitions:

Companies, under this indicator are understood as enterprises and financial institutions that are nationally recognised as being large’. Alternatively, parties may choose to rely on the World Bank’s definition for SMEs and consequently of large companies. The World Bank defines SMEs as those enterprises with a maximum of 300 employees, $15 million in annual revenue, and $15 million in assets.

While companies often deliver consolidated reports at a group level, it's important to recognize that many of their impacts manifest locally, and some subsidiaries or franchises produce their own sustainability reports. For the purpose of this indicator, both the group and subsidiary/franchise levels can be counted as distinct entities. Therefore, when using the term "company," it can refer to either the parent company or a franchise/subsidiary, depending on how they disclose information on biodiversity-related risks, dependencies and impacts.

Disclosing, is understood for this indicator as the act of making information available to the general public and stakeholders, in a clear and transparent manner. In this context, it means making information publicly available about a company’s impacts and dependencies on biodiversity, and its risks from biodiversity loss.

  • Biodiversity-related risks to businesses are categorised as:
  • Ecological risks, i.e., risks related to biodiversity-related ecological impacts and dependencies, linked to biodiversity loss or ecosystems degradation.
  • Liability risks, where parties who have suffered biodiversity-related loss or damage seek compensation for those they hold responsible.
  • Risks related to achieve transformative change for biodiversity, including regulatory risks, market risks and financial risks.

(OECD, Biodiversity: Finance and the Economic and Business Case for Action, 2019)

Dependencies are aspects of environmental assets and ecosystem services that a person or an organisation relies on to function. A company’s business model, for example, may depend on the ecosystem services of water flow, water quality regulation and the regulation of hazards like fires and floods; provision of suitable habitat for pollinators, who in turn provide a service directly to economies; and carbon sequestration. (Sources: TNFD Glossary of Key Terms, version September 2023, and adapted from Science Based Targets Network (2023) SBTN Glossary of Terms )

Impacts refer to a change in the state of nature (quality or quantity), which may result in changes to the capacity of nature to provide social and economic functions. Impacts can be positive or negative. They can be the result of an organisation’s or another party’s actions.

  • Impacts may be:
  • Direct – a change in the state of nature caused by a business activity with a direct causal link;
  • Indirect – a change in the state of nature caused by a business activity with an indirect causal link (e.g. indirectly caused by climate change generated by greenhouse gas emissions); and/or
  • Cumulative – a change in the state of nature (direct or indirect) that occurs due to the interaction of activities of different actors operating in a landscape or freshwater/marine area.

(Sources: TNFD Guidance on the identification and assessment of nature related issues: The LEAP approach, version October 2023; Science Based Targets Network (2023) SBTN Glossary of Terms; Capitals Coalition (2016) The Natural Capital Protocol; Climate Disclosure Standards Board (2021) Application guidance for biodiversity-related disclosures.)

5b. Method of computation

In order to be counted under the indicator, companies and financial institutions need to publicly disclose their biodiversity-related risks, impacts and dependencies on a regular basis, and in line with relevant standards, regulations and/or best practices. For example, through disclosure of risks, impacts and dependencies on biodiversity, in line with:

  • International Standards, e.g., as evolving from the International Sustainability Standards Board (ISSB)
  • Regional regulation, e.g., European Union Corporate Sustainability Reporting Directive (CSRD)
  • National regulation, e.g., France Energy and Climate Law (LEC), India’s Business Responsibility and Sustainability Report (BRSR)
  • Voluntary standards, e.g., Global Reporting Initiative (GRI)
  • Voluntary disclosure frameworks / guidance, e.g. Taskforce for Nature-related Financial Disclosure (TNFD), Science-Based Targets for Nature (SBTN), Biodiversity Disclosure Protocol (South Africa)

The computation of the indicator involves a straightforward counting process. Any entity that adheres to the "company" definition (see 5a) and that discloses its biodiversity-related risks, impacts and dependencies, per description above, is counted as a disclosing company within the context of this indicator.

5c. Data collection method

Governments have various channels through which they can gather information about which and how many companies and financial institutions disclose information about their biodiversity risks, dependencies, and impacts. It's important for governments to use a combination of approaches to ensure a comprehensive overview of biodiversity disclosures within their country. Collaborative efforts with businesses, industry stakeholders, and civil society can contribute to a more robust and effective monitoring system:

  • Public institutions: Governments could engage with (inter)national standard setters, regulators, national ministries, or other public institutions to explore collaboration around collating information on the number of businesses disclosing relevant data.

For example, in France, companies send their reports to the Autorité des Marchés Financiers – AMF, to be in compliance with the energy-climate law (article 29) requiring asset management companies and financial companies (for their asset management activities) to disclose their nature-related risks, impacts and dependencies. These reports are then sent to ADEME (a public environmental institution), which makes a comparative analysis.

  • International reporting platforms: Companies may report on biodiversity disclosures through international reporting platforms such as the CDP and the World Benchmarking Alliance. Also, the GRI holds a registry of GRI Standards reports. Governments can explore data-sharing arrangements with such platforms to help assess which companies are disclosing biodiversity-related information.
  • Framework developers: Organizations providing frameworks and guidance to companies and financial institutions on assessing and disclosing nature related risks, dependencies and impacts (e.g., TNFD and SBTN) may track which companies apply their guidance. For example, starting in 2025, the TNFD plans to publish information about which organizations are TNFD adopters.
  • Chambers of Commerce: While specifics can vary by country and local regulations, the Chambers of Commerce often play a key role in the collection and dissemination of certain business documents, including annual reports. The annual reports serve as the main disclosure tool for companies reporting on risks, dependencies, impacts and on biodiversity.
  • Industry associations: Industry associations may promote biodiversity disclosures within specific sectors. Governments can work together with these associations to promote sustainable practices and gain insight into the number of companies disclosing relevant information.
  • NGOs, IGOs and research organizations: Collaborating with non-governmental organizations (NGOs), and intergovernmental organizations (IGOs) and research institutions can provide governments with valuable insights. These organizations often conduct assessments and gather data on corporate sustainability practices, including biodiversity disclosures. For example, the Global Biodiversity Information Facility (GBIF) facilitates publication and use of private-sector data on biodiversity. This includes the data that companies collect during monitoring and impact assessment activities. Biodiversity data-sharing requirements or recommendations are increasingly becoming part of business and financial standards and best practices, including through the Equator Principles relating to large private financial institutions.
  • Surveys and Recognition Programs: Directly engage with companies through surveys or recognition programs may help gather specific information on biodiversity disclosures.
  • Corporate filings: Review corporate filings, including annual reports and other regulatory submissions, where companies may provide details about their biodiversity-related practices.
  • Artificial Intelligence tools / Online data searches: Many companies voluntarily publish sustainability reports or disclose information on their websites. With the help of Artificial Intelligence Tools or web-based searches, governments can review these publicly available documents to identify companies that provide information on biodiversity-related risks, dependencies, and impacts.
  • UNCTAD / UNEP / UN Global Compact: United Nations Conference on Trade and Development (UNCTAD) and United Nations Environment Programme (UNEP) are the Custodian Agencies for the SDG indicator 12.6.1: Number of companies publishing sustainability reports. Some SDG 12.6.1 indicator data is published on UNEP’s World Environment Situation Room (WESR) website, as well as through UN SDG Indicator Database. Moreover, the United Nations (UN) Global Compact encourages businesses and organizations worldwide to adopt sustainable and socially responsible policies and to report on their implementation.
  • World Business Council for Sustainable Development (WCSD): A global, CEO-led organization of leading businesses working together to accelerate the transition to a sustainable world.

5d. Data sources

See section 5c.

5e. Data providers

In most countries there are no specific entities tasked with gathering and assessing all relevant information regarding the disclosure of companies' biodiversity-related risks, dependencies and impacts.

5f. Data compilers

Not identified, see above.

5g. Gaps in data coverage

Significant data gaps are expected, as most countries lack specific entities tasked with systematically gathering and assessing companies’ disclosures on biodiversity-related risks, dependencies and impacts, risks.

6. Scale

6a. Scale of use

Scale of application: Global, Regional, National

Scale of data disaggregation/aggregation:

Global/ regional scale indicator can be disaggregated to national level: Yes

National data is collated to form global indicator: Yes

7.Other MEAs, processes and organisations

7a. Other MEA and processes

No

8. Disaggregation

Recommended disaggregation include: By sector. Aligned with the sector classification proposed by UNCTAD and UNEP for SDG indicator 12.6.1, using the International Standard Industrial Classification of All Economic Activities (ISIC) (first level classification):

  1. Agriculture, forestry and fishing
  2. Mining and quarrying
  3. Manufacturing
  4. Electricity, gas, steam and air conditioning supply
  5. Water supply; sewerage, waste management and remediation activities
  6. Construction
  7. Wholesale and retail trade; repair of motor vehicles and motorcycles
  8. Transportation and storage
  9. Accommodation and food service activities
  10. Information and communication
  11. Financial and insurance activities
  12. Real estate activities
  13. Professional, scientific and technical activities
  14. Administrative and support service activities
  15. Public administration and defense; compulsory social security
  16. Education
  17. Human health and social work activities
  18. Arts, entertainment, and recreation
  19. Other service activities
  20. Activities of households as employers; undifferentiated goods- and services-producing activities of households for own use
  21. Activities of extraterritorial organizations and bodies

9. Related goals, targets and indicators

10. Data reporter

10a. Organisation

N/A

10b. Contact person(s)

In most countries there are no specific entities tasked with gathering and assessing all relevant information regarding the disclosure of companies' biodiversity-related risks, dependencies and impacts.

Odile Conchou(odile.conchou@wanadoo.fr)

Macha Kemperman(mkemperman@worldbank.org)

Geraldo Fernandes (gwf@biodiv.com.br)

Ntakadzeni Tshidada (n.tshidada@sanbi.org.za)

12. Graphs and diagrams (if available)


Feedback: UNEP-WCMC is keen to ensure that our data is accurate and up to date. We welcome any feedback on the quality, reliability, and accuracy of the information on this site. If you see any errors or missing information, please get in touch.