The importance of biodiversity for sustainable development

Biological diversity (or biodiversity) is the web of life of which we are part of and upon which we fully depend. It is the fruit of billions of years of evolution, with millions of plants, animals and microorganisms which make life sustainable.   

It is the variability among living organisms and the ecological complexes of which they are part; this includes diversity within species, between species, and of ecosystems. In each ecosystem (for example deserts, forests, wetlands, mountains, lakes, rivers, and agricultural landscapes), living creatures, including humans, form a community, interacting with one another and with the air, water, and soil, and the non-living environment.  

 With the population size, lifestyle changes, industrial practices, habitat loss and land conversions, ocean overexploitation as well as climate change, biodiversity loss has reached an unprecedented level, with more than 68% decrease in animal species variety between 1970 and 2016, according to WWF’s global Living Planet Index1. 

Biodiversity in a business context is expressed as the benefits that people obtain from ecosystems – the goods and services of nature2. This is known as ecosystem services. Communities and businesses benefit from (or negatively impact) the role3 of ecosystem services, such as: 

• Provisioning: providing food, fresh water, wood and fibres, fuel 

• Regulating: climate regulation, flood control, carbon sequestration, water and air purification 

• Supporting: photosynthesis, soil formation, nutrient cycling 

• And finally: Cultural which is more intangible and relates to the aesthetic, recreational, spiritual role of nature 

The relationship between businesses and ecosystem services is a close-knit one.  

Businesses depend on an ecosystem when the conditions of that ecosystem are required for successful corporate performance. This is referred to as ecosystem dependency. This is the case of pollination for plant-based cosmetic brands for some crops that require pollination services. Degradation of the habitat and extensive agriculture using pesticides may push away pollinators.  

Similarly, businesses can impact the ecosystem they evolve in, whether quantitatively or qualitatively. This is referred to as an ecosystem impact. Chemical dyes from a fabric manufacture may end up in the local river and pollute the water sources that local communities may depend on.  

It is not all negative though. Businesses have a key role to play in preserving and restoring ecosystems, first by understanding their impact on the ecosystems they evolve in and then mitigating their impact on these ecosystems; for the sustainability of their value chains, the wellbeing of the communities affected by their activities, including their employees and customers and indigenous people, their reputation and their bottom line.   

Conducting an Ecosystem Services Review allows companies to make informed decisions through the identification, measurement and prioritisation of their impact and the risks and opportunities that can emanate, to anticipate new market opportunities, improve stakeholder relationships, influence policy, and demonstrate leadership in corporate sustainability.  

In the case of the fabric manufacturer we saw earlier, a fashion brand, by assessing its impact across its supply chain, may decide to sponsor a water treatment facility next to this fabric provider to ensure the chemicals from the dyes do not end up in the aquifers that that community uses for drinking water. It would in effect flip a potentially damaging brand reputation incident, into an opportunity, by showcasing how the local population now has access to clean water. It could also broaden its product range by offering a collection made of naturally dyed fabrics or attract conscious consumers after certified products.  

With the regulations coming up such as the Green Deal in the EU, UK and US, companies in a few years may not be able to access finance unless they demonstrate that they understand, mitigate and hopefully restore their impact on the ecosystems that go into their supply chains.