Exploring the Concept of Biodiversity | Whitepaper

1. ESG Services Research paper Exploring the Concept of Biodiversity

2. Exploring the Concept of Biodiversity Introduction Biodiversity – a medley of life on Earth – is critical for preserving ecological providing a wide environmental services. global decline in biodiversity, it has become vital to assess and monitor biodiversity levels accurately. Loss of biodiversity is part of the “triple planetary crises,” a term under the UN system, which intersecting environmental concerns, which include pollution, climate crisis, and biodiversity loss . The scope and severity of their impacts require the formulation and implementation of global strategies to address them. “Today, almost 50% economy is under biodiversity loss. Financial institutions and corporates lack required to understand how nature impacts their organization and how they impact nature.” (World Economic Forum, 2023) maintaining stability and and range With of the of the threat global of the insights refers to three Biodiversity Assessment and its Importance Biodiversity assessment plays a vital part in conservation efforts and is essential for informing effective management strategies. Here are some key reasons why biodiversity assessment is important for conservation, along with a call for continued research and action: 1 Understanding and Monitoring Biodiversity: Biodiversity assessment helps understand an area's variety of species, ecosystems, and genetic diversity. It offers baseline data on species composition, abundance, and distribution, thereby enabling us to monitor changes over time and evaluate the impacts of human activities on biodiversity. Identification of vulnerable species, tracking of population trends, and early detection of ecological changes are all aided by regular assessments. 2 Conservation Priority Setting: Biodiversity assessment helps recognize high conservation value areas and prioritize conservation efforts. By mapping and assessing biodiversity hotspots, areas of high endemism, or critical habitats, we can target resources and conservation interventions (refers to strategies and actions to protect and preserve ecosystem and biodiversity ex: Wildlife conservation like protecting endangered species, anti-poaching awareness, national parks, wildlife sanctuaries, prevent overfishing, policy, and legislation, etc.) to areas with the most significant impact. It enables us to manage and allocate our limited resources efficiently and target conservation efforts where they are most required. 3 Ecosystem Functioning and Services: Biodiversity is essential for ecosystem functioning and providing ecosystem services. Assessing biodiversity helps identify and understand the relationships between species, their interactions, and their roles in ecosystem processes. This knowledge enables us to appreciate the value of biodiversity in maintaining ecosystem stability, regulating climate, supporting pollination, nutrient cycling, and providing clean water and air. Assessing biodiversity further helps us recognize the importance of preserving intact ecosystems for our well-being. 2

3. Exploring the Concept of Biodiversity 4 Conservation Planning and Management: Biodiversity assessment provides vital information for designing effective conservation plans and managing protected areas. It helps in identifying critical habitats, migration corridors, and ecological networks to support the movement and persistence of species. Conservation actions can be tailored to address each target's needs and challenges by understanding the ecological requirements and threats to specific species or ecosystems. 5 Climate Change Adaptation: Biodiversity assessment contributes to climate change adaptation strategies. Evaluating the exposure of ecosystems to climate change helps prioritize conservation actions and plan for future strategies. To further enhance the adaptive capacity of ecosystems, it helps in identifying species that require assisted migration, designing resilient protected areas, and implementing ecosystem-based adaptation approaches. 6 Public Awareness and Education: Biodiversity assessment raises public awareness about the importance of biodiversity conservation. Communicating the findings and results of evaluations helps engage and educate the public, policymakers, and stakeholders about the value of biodiversity and the pressing need for conservation actions. It fosters a sense of stewardship, encourages sustainable practices, and offers a broader understanding of the interconnections between biodiversity, human well-being, and the planet. 3

4. Exploring the Concept of Biodiversity Global Acceptance: Conference of the Parties (COP15) - The 15th meeting of the COP15, or the Conference of the Parties to the United Nations Convention on Biological Diversity (CBD), took place in Kunming, China, from October 11–24, 2021. COP15 brought together international representatives to discuss and negotiate a new global framework for biodiversity conservation and sustainable development. 1 4 Adoption of the Kunming Declaration: Mainstreaming Biodiversity The Kunming Declaration was adopted at COP15, reaffirming the commitment of participating countries to halt biodiversity loss and protect ecosystems. The declaration sets forth an ambitious vision for the post- 2020 global biodiversity framework, thus emphasizing the need for transformative change across all levels. COP15 emphasized the essence of mainstreaming biodiversity considerations across sectors, including agriculture, fisheries, forestry, tourism, and infrastructure development. 5 Financial Resources and Capacity Building 2 Post-2020 Global Biodiversity Framework COP15 stressed the need for increased financial resources and capacity building to support biodiversity conservation efforts in developing nations. The framework encourages developed countries to fulfill their commitments through financial resources, technology transfer, and capacity-building support to developing countries. COP15 marked the adoption of the new post-2020 global biodiversity framework, referred to as the "Kunming Framework for Global Biodiversity Governance." To address the crux of biodiversity loss and encourage sustainable use of biodiversity, the framework incorporates a set of goals, targets, and action plans. It also encloses targets such as conserving at least 30% of land and sea areas, ensuring that all sectors integrate biodiversity considerations, and increasing financial resources for biodiversity conservation. 6 Strengthening Global Biodiversity Governance COP15 addressed the need for strengthened global biodiversity governance and international cooperation to address the global biodiversity crisis effectively. COP15 presented a significant milestone in global efforts to identify biodiversity loss and promote sustainable development. The adoption of the Kunming Framework for Global Biodiversity Governance and the commitments made by participating countries present a roadmap for transformative action to conserve and sustainably use biodiversity in the coming decade. 3 Protection and Restoration of Ecosystems COP15 highlighted the significance of safeguarding and restoring ecosystems, recognizing the critical role they play in supporting biodiversity and providing vital services to humanity. The framework highlights the need for large-scale ecosystem restoration initiatives, including reforestation, habitat restoration, and sustainable land management practices. 4

5. Exploring the Concept of Biodiversity The EU Biodiversity Strategy 2023 The European Union (EU) acknowledged the critical significance of biodiversity conservation and devised a comprehensive framework to address the challenges faced by biodiversity loss. The 2023 EU Biodiversity Strategy outlines ambitious goals and actions to halt biodiversity loss and restore ecosystems. Key Actions Promoting Sustainable Urban Development Protecting and Restoring Nature Expanding and improving the EU's network of protected areas, including the Natura 2000 network, to secure the conservation of key habitats and species. Restoring degraded ecosystems, such as forests, wetlands, and rivers, through large-scale restoration initiatives and the implementation of nature-based solutions. • Encouraging the integration of green infrastructure in urban planning to enhance biodiversity and improve the quality of urban environments. Supporting cities in enforcing nature-based solutions to address climate change, reduce pollution, and enhance urban resilience. • • • Mainstreaming Biodiversity Across Policies Transitioning to Sustainable Agriculture and Fisheries Integrating biodiversity considerations into relevant sectors and policies, including agriculture, fisheries, energy, transport, and regional development, to ensure biodiversity is considered in decision-making processes. Developing biodiversity indicators and monitoring systems to track progress and accountability. • Enhancing the sustainability of agricultural practices by fostering agroecology, organic farming, and precision farming techniques that minimize the usage of pesticides and fertilizers. Promoting sustainable and ecosystem-based fisheries management to ensure the long-term viability of marine ecosystems and fish populations. • • • Strengthening Global Biodiversity Governance Ensuring Sustainable Forest Management Promoting international cooperation and collaboration to address global biodiversity challenges, including through the Convention on Biological Diversity (CBD) and other multilateral agreements. Supporting capacity building and financial resources for developing countries and enhancing their biodiversity conservation and sustainable development efforts. • Improving the implementation of sustainable forest management practices, like conserving old-growth forests, promoting reforestation, and combating illegal logging. Enhancing the use of sustainable forest products and supporting the development of bioeconomy to reduce reliance on non-renewable resources. • • • Preventing and Controlling Invasive Alien Species Strengthening the benchmarks to prevent the introduction and spread of invasive alien species through improved surveillance, risk assessment, and early warning systems. Developing and implementing effective management and eradication plans for established invasive species that pose significant threats to native biodiversity. • • 5

6. Exploring the Concept of Biodiversity Regulatory Momentum and Frameworks 1 5 Task Force on Nature-related Financial Disclosures (TNFD) is an emerging global initiative that provides a standardized framework to disclose their dependencies and impacts on nature. The TNFD framework outlines four core elements of disclosure: Task Force on Climate-Related Financial Disclosures (TCFD): The TCFD, established by the Financial Stability Board, develops recommendations for voluntary climate-related financial disclosures by companies. While the TCFD does not specifically mandate companies to disclose their impact on biodiversity, it encourages them to disclose the physical risks and opportunities associated with climate change, which can likely have significant impacts on biodiversity and ecosystems. Nature-related Risks Metrics Nature-related Dependencies Targets 2 6 Convention on Biological Diversity (CBD): This global treaty strives to conserve biodiversity, foster sustainable use of components, and ensure fair sharing of the benefits from genetic resources. COP15 brought together representatives from across the globe to discuss and negotiate a new global framework for biodiversity conservation and sustainable development. Sustainable Finance Disclosure Regulations (SFDR): Biodiversity is one of the mandatory PAI (Principal Adverse Indicator) indicators under SFDR for organizations and investors as part of SFDR PAIs. 7 EU Taxonomy: In accordance with the Taxonomy Regulation, economic activity is considered taxonomy- compliant if it significantly contributes to one of the environmental objectives, which includes eligible and aligned business operations which adhere to the restoration and protection of biodiversity and ecosystems. 3 Global Reporting Initiative (GRI): The GRI is an extensively used international sustainability reporting framework. The GRI standards include specific indicators related to biodiversity and ecosystems. 8 4 European Sustainability Reporting Standards (ESRS): The upcoming ESR disclosure as per CSRD (Corporate Sustainability Reporting Directive) requirement , which begins in January 2024, includes topical standards ESRS E4 (European Sustainability Reporting Standards of Section E4) for companies to report on matters related to biodiversity and ecosystems. Sustainable Development Goals (SDGs): The SDGs are a cluster of 17 goals adopted by the United Nations in the year 2015. Several of the goals, including Goal 14 (Life Below Water) and Goal 15 (Life on Land), are related to biodiversity and ecosystems. Many companies have committed to reporting on their contribution to the SDGs, including those related to biodiversity. 9 Science Based Targets Network (SBTN): A first science-based formal framework for nature targets released on 24th May’23, is meant to assist organizations in setting goals for preserving nature and biodiversity SBTN’s guidance for nature is a recognition that planetary health is not just about managing levels of carbon dioxide in the atmosphere but also protecting biodiversity and ecosystems. The guideline aligns with global goals on climate, nature, and development, including the UN Sustainable Development Goals, and Global Biodiversity Framework, and the Paris Agreement. 6

7. Exploring the Concept of Biodiversity Call for Continued Research and Action Continued research and action are vital to advance biodiversity assessment and conservation. This comprises: Research Investment: Governments, organizations, and institutions should invest in research to fill knowledge gaps, improve assessment methodologies, and expand our understanding of biodiversity patterns, ecological processes, and the impacts of human activities. Enhanced Monitoring: Regular and standardized biodiversity monitoring programs should be established in order to track changes and assess the effectiveness of conservation actions. Interdisciplinary Collaboration: Collaboration among scientists, conservation practitioners, policymakers, and local communities is vital for effective biodiversity assessment and conservation. Interdisciplinary methods encourage innovative solutions, incorporate local knowledge, and ensure that scientific findings translate into meaningful action on the ground. Policy and Decision-making: Biodiversity assessment findings should be integrated into policy and decision-making processes at all levels. Governments and institutions should recognize the value of evidence-based decision-making and incorporate biodiversity considerations into land-use planning, environmental impact assessments, and development policies. Conservation Action: Biodiversity evaluation should be paired with practical conservation measures on the ground. Efforts should concentrate on habitat restoration, protected area expansion, sustainable land and resource management, and engaging local communities in conservation activities. Conclusion Understanding, monitoring, and maintaining Earth's rich biological diversity depends on biodiversity assessment. Ongoing research, monitoring, and action are required to solve the ongoing biodiversity safeguard ecosystems, and guarantee a sustainable future for humanity. The successful implementation of this framework requires active engagement and collaboration of stakeholders at all levels, from local communities to national governments and international partners. The success or failure to stop biodiversity loss will depend on whether nations can be made more accountable commitments. Adopting a new framework is only the beginning. To achieve harmony with nature by 2050( 2050 is the vision as per the UN biodiversity framework where all signatory nations will work towards the realization of the 2050 Vision of “Living in Harmony with Nature”), it will be crucial to ensure these goals are carried out using a human rights-based strategy. for their catastrophe, both nature and 7

8. Exploring the Concept of Biodiversity About the Author ABHILASHA SUKUMARBABU• Project Manager, ESG Research With over 11 years of experience in conducting ESG and sustainability research for the financial services industry, Abhilasha has expertise in leading client management and deliveries, data management, people management and training on various ESG-related aspects. She has closely supported clients on SFDR, EU Taxonomy, SDG impact assessments and social focused engagements. Abhilasha has handled teams working on diverse ESG research projects, contributed to ESG whitepapers and developed ESG surveys and templates for various reporting frameworks. Disclaimer This document makes descriptive reference to trademarks that may be owned by others. The use of such trademarks herein is not an assertion of ownership of such trademarks by SG Analytics (SGA) and is not intended to represent or get commercially benefited from it or imply the existence of an association between SGA and the lawful owners of such trademarks. Information regarding third-party products, services, and organizations was obtained from publicly available sources, and SGA cannot confirm the accuracy or reliability of such sources or information. Its inclusion does not imply an endorsement by or of any third party. Copyright © 2023 SG Analytics Pvt. Ltd. www.sganalytics.com GET IN TOUCH Pune | Hyderabad | Bengaluru | London | Zurich | New York | Seattle | San Francisco | Austin | Toronto 5