IPBES research warns that up to one million species face extinction, showing biodiversity loss is a systemic risk indicator.
Biodiversity ESG basics
Nature risk is business risk.
Biodiversity in ESG is about understanding how forests, water, soil, and people keep everyday business running. Use this guide to learn the basics before you explore detailed frameworks.
Key biodiversity ESG questions this guide covers:
What does “biodiversity in ESG” actually mean?
Biodiversity ESG looks at how living systems support your strategy, suppliers, and stakeholders so nature risk becomes part of everyday governance discussions.
The World Economic Forum calculates that $44T of global value depends on nature, so biodiversity ESG links directly to growth.
Biodiversity loss sits in the WEF top five long-term threats, so every annual plan now touches on nature resilience.
MATERIALITY
Why biodiversity resilience matters now
Supply chain continuity. Pollinators, healthy soils, and protected watersheds keep raw materials, packaging, and logistics moving. When a region faces drought, fire, or reef collapse, orders can stall overnight. That is why biodiversity risk now appears on every leadership risk register.
Reporting readiness. Regulations such as the Corporate Sustainability Reporting Directive (CSRD) and the Taskforce on Nature-related Financial Disclosures (TNFD) ask organisations to explain how nature supports their plans and how they are responding to impacts. Simple narratives today make future reports easier.
Stakeholder trust. Customers, lenders, insurers, and community partners want to hear how you protect wetlands, cultural landscapes, and local species. Highlighting small restoration steps or nature-positive procurement policies shows that you can balance people, planet, and profit.
MYTHS
Myths slowing biodiversity ESG adoption
- "Biodiversity is too technical." Simple language about forests, water, and people resonates more than acronyms.
- "Data must be perfect." Start with what you know today—maps, supplier notes, public research—and refine later.
- "Only heavy industry needs to care." Service, finance, and technology sectors also depend on functioning ecosystems for logistics, energy, and customers.
REPORTING
How to start measuring and sharing biodiversity progress
Locate what matters. Map sites, suppliers, and services against local ecosystems. Existing environment, health, and safety (EHS) maps, Traditional Owner conversations, or public datasets are enough to identify hotspots.
Describe double materiality. Capture how nature loss affects your organisation (financial materiality) and how your activities affect nature (impact materiality). The TNFD (Taskforce on Nature-related Financial Disclosures) LEAP prompt—Locate, Evaluate, Assess, Prepare—keeps the language accessible.
Share digestible indicators. Blend plain-language stories with directional metrics such as hectares restored, percentage of spend tied to sensitive biomes, or number of suppliers with biodiversity clauses. Regular board and town-hall updates make biodiversity part of everyday ESG cadence.
How to address biodiversity across the business
Listen to place-based knowledge
Local teams, Traditional Owners, and community partners often understand nature signals long before they appear in dashboards.
Link biodiversity to existing plans
Connect biodiversity thinking with climate, resilience, procurement, and workforce strategies so resources stretch further.
Build confidence step by step
Start conversations with plain-language definitions, real examples, and evidence you already have, then grow sophistication over time.
GLOSSARY SNAPSHOT
Terms to keep handy
Nature-positive. A simple promise to leave ecosystems healthier by restoring habitats, easing pressure on key species, and aligning investments with regeneration.
Double materiality. The CSRD concept that asks for both financial impacts and outward impacts when you talk about nature topics.
Nature-related financial risk. Any revenue, cost, or compliance pressure created when biodiversity loss disrupts supply, damages assets, or triggers penalties—exactly what TNFD reporting helps teams track.
FAQS
Biodiversity + ESG frequently asked questions
What does biodiversity ESG actually cover?
It connects living systems—forests, oceans, soils, species—to the environmental, social, and governance decisions a business makes every day.
Do we need specialists to talk about it?
Not to begin. Use plain examples from your own sites and suppliers, then invite experts once the conversation needs deeper analysis.
How detailed should our reporting be?
Share enough context for boards, lenders, and communities to understand the exposure, the response, and the trend without overwhelming them.
When should we bring technology into the picture?
Once the team agrees on objectives and evidence needs, look for tools that make it easier to log actions, owners, and reporting in one place.
Drova unites ESG objectives, tasks, and reporting so biodiversity conversations stay visible from board packs to frontline teams.
Ready to bring biodiversity insight into focus?
ESG 101 HUB
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ESG & the Board
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The G in ESG: Governance
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