A new study explores how progress might be made within the extractive sector in creating effective indicators to establish corporate biodiversity performance.
The study's findings include that drivers for indicator development vary, both between and within companies, while differences in needs between site and corporate levels may make it challenging to define a single indicator that suit both needs.
In addition, the study highlights that indicators must be impact-focused, cost-effective, easy to produce and communicate, and sensitive to change.
16 March 2018: A study published by UN Environment Programme-World Conservation Monitoring Centre (UNEP-WCMC) explores how progress might be made within the extractive sector in creating effective indicators to establish corporate biodiversity performance.
Biodiversity indicators are an essential tool for understanding and managing changes in biodiversity. Efforts by the private sector to develop biodiversity indicators have often focused on measuring biodiversity management actions rather than measuring on the ground changes in the status of, and pressures on, biodiversity. This is largely due to methodological and data challenges.
Conducted in association with Stuart Anstee and Associates, and funded by the Proteus Partnership, a collaboration between UNEP-WCMC and 12 large businesses, the study summarizes the results of an analysis of the needs, drivers and current practice relating to biodiversity indicators within the extractive sector. It is based on interviews with eleven companies and a desk review of existing and emerging guidance and approaches. The study reaches a number of key findings, including that drivers for indicator development vary, both between and within companies, while differences in needs between site and corporate levels may make it challenging to define a single indicator that suit both needs. At the site level, local regulations are the primary driver for indicator development, while at corporate level drivers are more varied, and they include investor pressure, compliance against internal policies and standards, as well as communication with internal stakeholders.
The study further finds that existing biodiversity-related reporting frameworks, guidance and indicators are not meeting the needs of the companies engaged in the research. All companies highlighted the importance of being able to aggregate site-level indicators to corporate level, in order to strengthen monitoring and reporting on biodiversity. While significant monitoring activities are underway at site level, aggregation of data and indicators up to corporate level is minimal. In addition, the study highlights that indicators must be impact-focused, cost-effective, easy to produce and communicate, and sensitive to change.
Four models for corporate indicator development were identified for further consideration, ranging from the development of a single composite biodiversity indicator to a framework approach allowing more flexibility in the application of indicators across site and corporate needs. In the next phase of the project, an in-depth review of the streamlined indicators and models, will be conducted to develop pilot methodologies that can be tested on the ground. [UNEP-WCMC Press Release] [Publication: Biodiversity Indicators for Extractive Companies: An assessment of needs, current practices and potential indicator models]