Tracking top biodiversity-impact sectors with footprinting tools

News in the Framework of the European Business & Biodiversity Campaign

 

Tracking top biodiversity-impact sectors with footprinting tools

A new study has found that 250 companies in the MSCI World Index are potentially responsible for 73% of the biodiversity impact of the entire index.

© Finance for Biodiversity (FfB) Foundation
03 May 2023: The study, led by the Finance for Biodiversity (FfB) Foundation, used four different biodiversity footprinting tools to calculate the potential impact of the companies. The study shows that biodiversity impact involves a variety of sectors and industries beyond well-known climate risk sectors, such as the food and beverage and materials sector. It combines relatively mature biodiversity footprinting approaches currently available for portfolio assessment and various ways of assessing impact on biodiversity in one result.

Company data on actual biodiversity impact is not available yet, so the tools measure potential impact rather than actual impact by using company revenues, product footprints, and region-specific sector averages. The four frontier footprinting tools calculate biodiversity footprints of corporations based on life cycle analysis and a subsequent biodiversity model to estimate a company’s impact on biodiversity loss.

Read the study: https://www.financeforbiodiversity.org/tracking-top-biodiversity-impact-sectors-with-footprinting-tools

Author: Global Nature Fund
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