Biodiversity in Business

There are five major causes of biodiversity loss: Habitat destruction and fragmentation, pollution, climate change, invasive species and over-exploitation.
Learn more about biodiversity loss here.

Many business activities - such as food, energy, infrastructure and textile - can profoundly affect biodiversity. These effects can be harmful, such as habitat destruction, pollution or the introduction of invasive species. However, businesses also have opportunities to generate positive outcomes, including habitat restoration, sustainable resource management and conservation initiatives.

Biodiversity loss, in turn, poses significant risks to businesses. It can disrupt supply chains, increase regulatory pressures and damage business reputations. Conversely, proactive efforts to protect and enhance biodiversity can create valuable opportunities, such as tapping into new markets for sustainable products, improving operational resilience and strengthening stakeholder trust.

Governments are increasingly mandating that businesses assess, disclose and mitigate their biodiversity impacts. For example, Target 15 of the Global Biodiversity Framework calls for companies to monitor and report their dependencies and impact on biodiversity by 2030. Additionally, stakeholders - including customers, employees, business leaders and investors - expect companies to actively contribute to biodiversity preservation. Failing to meet these expectations could jeopardize a company's reputation, stakeholder relationships, and license to operate.

Biodiversity conservation is not just an ethical imperative; it is becoming a strategic business priority.

The food-farming industry is often identified as having one of the most significant negative impacts on nature – due to land clearances for crops and pasture, the use of pesticides, monoculture farming practices and plastic waste generated by food packaging. However, all sectors are liable to impact biodiversity:

• Manufacturing industries impact biodiversity directly via energy consumption and waste generation at factory sites and indirectly through their supply chains, product use and disposal at the product's end of life. Impact starts early during resource extraction since manufacturing industries often rely on raw materials extracted from the environment  
• Infrastructure and city expansions can lead to the destruction and fragmentation of natural habitats, thereby reducing biodiversity. Additionally, cities often experience higher temperatures than rural surroundings due to the urban heat island effect, which can alter the habitats and ranges of species, impacting biodiversity
• In life sciences and healthcare, many drugs and medicines are derived from plants, animals and microorganisms found in diverse ecosystems. Biodiversity loss can lead to species extinction before their potential medicinal value is discovered. This hinders advancements in drug development. It's estimated that every two years, one essential medicine goes undiscovered due to biodiversity loss

However, we already have existing solutions to reduce these negative impacts on nature. The 3DEXPERIENCE® platform enables businesses to shift towards a circular economy, foster nature-positive innovations and enable eco-design – helping companies assess and minimize product environmental impact throughout their life cycle.

Biodiversity matters to all stakeholders due to several interconnected reasons:

1. Ecosystem services: Biodiversity underpins the provision of ecosystem services, which are vital for human well-being and economic development. These services include food, clean water, climate regulation and disease control.
2. Business opportunities: Businesses are increasingly recognizing the importance of biodiversity. Protecting and enhancing biodiversity can present significant business opportunities, such as new markets and technologies, cost savings and risk mitigation.
3. Regulatory compliance: As regulations around biodiversity conservation and environmental protection become more stringent, companies that proactively manage their biodiversity impact are more likely to comply with these regulations, resulting in reduced potential fines and reputational risks.
4. Sustainability goals: Biodiversity is a key component of the United Nations' Sustainable Development Goals (SDGs). Many stakeholders, including businesses and governments, have committed to achieving these goals.
5. Environmental, Social and Governance (ESG) investing: There's a growing trend among investors to consider ESG factors, with many now prioritizing biodiversity as a key component of their investment decisions.
6. Long-term value creation: Companies that protect and enhance biodiversity are more likely to create long-term value. They are better positioned to adapt to environmental changes and meet the demands of environmentally conscious consumers and stakeholders.