Published 20.6.2024
Most companies and organizations depend on natural resources such as raw materials, access to water and a clean environment. Ecosystem services provided by nature, such as food production, pollination, water resources, air purification and flood protection, are also essential in many activities. At the same time, companies and organisations impact nature through their own activities.
Nature and climate are closely intertwined. The loss of biodiversity and the degradation of ecosystems may contribute to the acceleration of climate change and vice versa. Just as climate goals are now a pillar of sustainable business, it is also worthwhile to include nature impacts in your business strategy. Science-based nature targets reduce environmental risks, improve reputation and create long-term value. When setting nature goals, the aim is to act within planetary boundaries.
Nowadays, financiers are also interested in nature risks and their economic consequences, so companies’ nature work may have a significant impact on the availability of financing in the future.
The Science Based Targets for Nature (SBTN) have been developed in line with the Science Based Targets (SBT) climate targets, but with a focus on protecting biodiversity and ecosystems. The SBTN framework helps companies and organisations set scientifically based nature goals. The targets should be ambitious and respond to the needs of combating the nature crisis. SBTN encourages organisations to commit to concrete actions that protect and restore biodiversity and contribute to the preservation of ecosystem services. Setting targets may concern, for example, reducing the impact of one’s own operations, the sustainability of the supply chain or investment decisions.
Schedule: SBTN has published more detailed guidance for the first three work phases and sub-areas of fresh water and land use. More detailed guidelines for other areas, i.e. biodiversity and sea use, will be published in 2025. In the near future, companies will be able to submit their nature targets for formal approval to SBTN. Specific guidelines are also planned for cities, which are expected to be published in 2025.
Where to begin?
Various methods and indicators for assessing impacts on nature are under development. The most important thing is not which method you use, rather that the aim is a thorough assessment of the company’s own operations and supply chain, as well as scientific justification for the set nature targets. A good way to start is to use the framework developed by the international Science Based Targets Network (SBTN). The target group is primarily companies with significant impacts on nature and a turnover of more than 50m USD, but the framework also provides other actors with tools for the development of nature work. If the SBTN framework follows the model of the climate framework, smaller companies may later adopt a simplified model for setting nature targets.
The five steps of the SBTN process
The scientific justification of the targets is a key part of the SBTN framework. This is based on extensive scientific research that maps the state of biodiversity, endangered species, ecosystem loss and other similar aspects. Based on this information, companies can set targets that are compatible with the sustainable use of natural resources and help slow biodiversity loss.
The SBTN framework divides nature work into 5 phases:
1) Evaluate. Conduct a materiality assessment and value chain mapping.
2) Interpret and prioritize. Based on the first step, select the areas where measures can be taken immediately and where effectiveness can be achieved.
3) Measure, set goals and publicize. Assess the baseline, make an observation plan, set goals and report on them.
4) Act. Take actions according to the AR3T hierarchy; Avoid, reduce, restore/regenerate, and more.
5) Monitor. Monitor progress towards goals, report and verify.
SBTN has been built in line with many other frameworks and recommendations for nature work, e.g. Task Force for Climate-Related Financial Disclosures (TCFD), Global Biodiversity Framework, SBTi climate targets, EU taxonomy, etc. The SBTN framework is still under development and the guidance is constantly being refined. However, companies are encouraged to start work already at this stage, because nature work takes time and action is needed quickly to combat the nature crisis. Frontline companies will be rewarded with the opportunity to influence the final formulation of the framework and greater competitiveness.
Do you want help in assessing your impact on nature and setting goals? Take contact!