Nature loss is a business risk. Companies depend on ecosystem services - water regulation, soil fertility, pollination, raw materials, coastal protection - that are being degraded faster than they are being restored. The Kunming-Montreal Global Biodiversity Framework has set a target to halt and reverse nature loss by 2030. The TNFD has given companies a practical framework for disclosure. CSRD now requires mandatory reporting under ESRS E4. The direction is clear.
The challenge for most companies is visibility. Direct operational footprints often represent only a fraction of total nature impact. The larger share sits in supply chains - in the agricultural commodities, forestry products, minerals, and materials that flow through procurement but are rarely traced to their ecosystem origin.
This framework is designed around the mitigation hierarchy: avoid first, then minimise, restore, and finally regenerate. It is not about offsetting nature loss - it is about redesigning business activities so they operate within ecological boundaries.
Biodiversity management is not about offsetting nature loss. It is about redesigning business activities so they operate within ecological boundaries.
The five-layer biodiversity system. Governance establishes nature ambition. Dependency mapping reveals hidden exposure. Transformation pathways move from avoidance to restoration. The outcome system at Layer 5 measures ecological reality, not just activity.
How the system is run across each layer - who does the work, how decisions are made, what tools are used, and how performance is measured.
| Layer | Who | How | What (tools & data) | Decisions | Performance |
|---|---|---|---|---|---|
| 1 · Nature governance | |||||
| Nature governance | Board, CEO, CSO, land & procurement leads | Annual nature strategy review; TNFD-aligned board briefings | Nature transition plan; TNFD recommendations; SBTN targets | Board approves nature ambition; CEO allocates restoration budget | Nature risk score; governance quality; SBTN target status |
| 2 · Dependency & impact mapping | |||||
| Dependency & impact mapping | Sustainability, procurement, operations, EHS | TNFD LEAP methodology; biodiversity screening | IBAT screening tool; WRI biodiversity risk; CSRD ESRS E4 framework | CFO approves priority sites; procurement defines commodity scope | High-risk site count; dependency exposure score; hotspot map |
| 3 · Nature transformation | |||||
| Nature transformation | Operations, procurement, product design, supply chain | Site impact mitigation hierarchy; sustainable sourcing programmes | Nature-based solutions tools; supplier engagement platform | Operations approves site changes; capex committee funds restoration | Land use change avoided (ha); deforestation-free sourcing rate (%) |
| 4 · Enablement systems | |||||
| Enablement systems | IT, finance, legal, conservation partnership teams | Technology investment; conservation finance structuring | Remote sensing & geospatial tools; biodiversity credits framework | CFO approves capital; board approves conservation partnerships | Restoration funding deployed (€); partner ecosystem coverage |
| 5 · Nature outcome performance | |||||
| Nature outcome performance | External ecologist, sustainability team, IR | Annual ecological monitoring; CSRD ESRS E4 reporting cycle | MRV system; TNFD metrics; SBTN science-based targets | Board reviews nature outcomes; CSO signs disclosures | Net habitat gain/loss (ha); species indicator improvement; TNFD disclosure quality |