Biodiversity in ESG: Regulatory Frameworks, Risks, and Opportunities for 2030

Biodiversity is a key topic for modern ESG strategies. Companies must understand how their activities impact biodiversity while also complying with regulatory requirements such as the EU Biodiversity Strategy for 2030 and the CSRD. Biodiversity loss poses risks—from supply chain disruptions to reputational damage. However, those who act early can secure competitive advantages and avoid long-term costs. According to the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES), over one million species are currently threatened with extinction, underscoring the urgency for businesses to act proactively (ipbes.net/global-assessment).

In summary:

• Regulatory Requirements: The CSRD and EU Taxonomy require comprehensive reporting on biodiversity, pushing companies to adopt transparent and robust disclosure practices.
• Risks and Opportunities: Biodiversity loss threatens business models but also offers potential for sustainable innovation. For example, the World Economic Forum estimates that $44 trillion of economic value generation—over half the world’s GDP—is moderately or highly dependent on nature and its services (weforum.org).
• Frameworks: Global and national strategies such as the Kunming-Montreal Agreement or the German Biodiversity Strategy 2030 set clear targets and timelines, providing a roadmap for corporate action.
• Integration into ESG: Biodiversity assessments, measurable targets, and nature-based solutions are essential for embedding biodiversity into core business strategies.
• Tools and Data: Modern platforms and metrics help measure progress and create reports, enabling companies to track their biodiversity performance and demonstrate accountability.

Protecting biodiversity is not only a moral responsibility but also an economic necessity. Those who act now strengthen both nature and their own future viability, positioning themselves as leaders in a rapidly evolving regulatory and market landscape.

Frameworks and Standards for Biodiversity Targets

Global and EU Biodiversity Frameworks

The Kunming-Montreal Global Biodiversity Framework (GBF) forms the basis for worldwide efforts in biodiversity protection. By 2030, at least 30% of land and marine areas are to be protected and restored. Additionally, 30% of degraded natural areas are to be rehabilitated, and risks from pesticides are to be halved. This ambitious framework, adopted by nearly 200 countries, represents a historic commitment to halting and reversing biodiversity loss, with clear targets that are now influencing both public policy and corporate strategies (cbd.int).

The EU Biodiversity Strategy for 2030 adapts these global goals for the European context. Its aim is to put biodiversity in Europe on a path to recovery by 2030, including specific measures and commitments such as restoring at least 25,000 km of free-flowing rivers and planting 3 billion trees by 2030 (environment.ec.europa.eu). The strategy also emphasizes integrating biodiversity into all sectors of the economy, from agriculture to urban development, and calls for increased funding for nature-based solutions.

A key component of this strategy is the EU Nature Restoration Law, which sets binding requirements for ecosystem restoration. The associated restoration plan focuses on particularly damaged ecosystems with high potential for carbon storage and disaster risk reduction. For example, the law mandates that member states restore at least 20% of the EU’s land and sea areas by 2030, with a focus on habitats that can deliver the greatest climate and biodiversity benefits (environment.ec.europa.eu).

Furthermore, the international community has committed to providing $200 billion annually for biodiversity protection by 2030 and reducing harmful subsidies by $500 billion. These financial commitments are critical for supporting the implementation of biodiversity targets and ensuring that both public and private sectors can mobilize the resources needed for large-scale restoration and conservation efforts (cbd.int/gbf).

German National Policy and Compliance

Germany is taking a leading role in the transition to a nature-compatible economy. The German National Biodiversity Strategy 2030 (NBS 2030) is based on international agreements and EU requirements and sets clear national goals.

Regulatory requirements are increasing, while voluntary frameworks are gaining importance. This encourages companies to invest in better nature data. Currently, the focus is on consolidating data from various sources such as authorities, associations, research institutions, and citizen science projects to develop integrated climate and biodiversity strategies.

Companies face the task of collecting and communicating precise in-situ data. This data is crucial for reporting requirements under the Corporate Sustainability Reporting Directive (CSRD), disclosures of the Taskforce on Nature-related Financial Disclosures (TNFD), and nature targets of the Science-Based Targets Network (SBTN). Such measures concretize international requirements and create a clear foundation for national implementation.

Framework Comparison and Requirements

The various frameworks form a complex web of international, European, and national requirements with different legal obligations. The following table provides an overview of the most important frameworks, their goals, and legal binding:

The EU Corporate Sustainability Reporting Regulation (CSRD) introduces mandatory reporting standards on biodiversity and ecosystems (ESRS E4). Companies must disclose their strategies, risks, opportunities, and goals. In July 2023, these standards were adopted by the European Commission as delegated acts.

The EU Corporate Sustainability Due Diligence Directive (CSDDD), which came into force on July 25, 2024, extends the requirements of the German Supply Chain Due Diligence Act (LkSG) and includes biodiversity in a broader "chain of activities."

The EU Deforestation Regulation (EUDR), which has been in effect since June 29, 2023, prohibits trade in products that cause deforestation or forest degradation. Large companies must demonstrate compliance from December 30, 2025, smaller ones from June 30, 2026.

Signatory states require large companies and financial institutions to systematically monitor, assess, and disclose biodiversity risks.

How to Integrate Biodiversity Goals into ESG Strategies

Integrating biodiversity goals into ESG strategies requires a well-thought-out and long-term approach. Companies must first understand their impacts on biodiversity, formulate clear goals, and firmly embed them in their corporate governance. The following sections explain the key steps that help integrate biodiversity into ESG strategy.

Conducting a Biodiversity Assessment

A thorough assessment of one's own impacts on biodiversity is the first step. Companies should analyze how their production and products affect species diversity, soils, and natural habitats. It is important to consider factors such as land use, pollution, and resource use. This allows early identification of potential risks, such as the availability of raw materials.

A biodiversity check can help identify weaknesses along the supply chain. Particularly a landscape-based approach that focuses on procurement regions enables a better understanding of regional characteristics and ecosystem relationships.

Furthermore, companies should assess important habitats and identify areas for conservation measures. It is crucial to document necessary management adjustments. Digital tools and proven habitat mapping guides provide practical support for implementation.

Setting Measurable Biodiversity Goals

Clear and measurable goals are crucial for effectively implementing biodiversity measures. Companies should orient themselves to international standards and German legal requirements. National Biodiversity Strategies and Action Plans (NBSAPs) provide a valuable foundation for integrating biodiversity across industries into corporate goals.

A successful approach requires companies to develop their goals in close coordination with stakeholders. This not only increases acceptance but also ensures that measures fit well into existing structures. Financial resources should be specifically allocated for instruments such as NBSAPs. As Sarkki et al. emphasize, "mainstreaming" within NBSAPs means effecting institutional changes across various policy areas to integrate biodiversity into the core goals of decision-making.

Based on these foundations, companies can derive concrete, implementable, and measurable goals.

Embedding Biodiversity in Corporate Governance

Once goals are defined, they must be integrated into the company's governance and decision-making structures. This requires a thorough analysis of risks and opportunities related to biodiversity. Prioritizing initiatives and developing a clear roadmap are essential.

The numbers speak for themselves: Since 1970, monitored wildlife populations have declined by 73%. This shows how urgent it is to consider ecosystem services as a central component of economic activity. Companies should therefore systematically analyze existing challenges and prioritize measures that both improve sustainability performance and minimize business risks.

A proven example is the BSC Roadmap methodology from the Anthesis Group. It provides a clear framework for evaluating risks and opportunities, prioritizing initiatives, and developing an implementation roadmap – always in coordination with relevant stakeholders.

To achieve "net-zero" goals long-term, investments in nature-based solutions are essential. At the same time, it is important to understand the impacts of one's own activities on communities and actively involve stakeholders.

"Transformative governance can be defined as 'the formal and informal (public and private) rules, rule-setting systems and actor networks at all levels of human society that enable transformative changes [...] towards sustainability'" (Visseren-Hamakers et al., 2021).

This definition underscores the complexity and systemic nature of successful biodiversity governance. It shows: Only through a holistic approach can sustainable solutions be created that strengthen both the environment and businesses long-term.

Tools and Solutions for Biodiversity Management

To achieve biodiversity goals, companies today rely on a variety of tools ranging from risk assessment to action planning to performance monitoring. These range from nature-based approaches to data-driven platforms. Below, we look at nature-based solutions, modern data models, and specialized consulting services.

Nature-based Solutions and Circular Economy Practices

Nature-based Solutions (NbS) harness the power of nature to combine climate protection, biodiversity conservation, and sustainable development. According to studies, 65% of the economic outcomes of NbS projects were positive, particularly in areas such as nature-based agriculture and ecosystem management.

An example of using such approaches: The Asian Institute of Technology (AIT) plans to transform its campus into a botanical garden by 2030 to achieve net-zero emissions. However, NbS go beyond ecological benefits – they also promote resilient business models and strengthen local communities. They are particularly successful when they incorporate indigenous community knowledge.

Prof. Nathalie Seddon from the University of Oxford highlights:

"The value of nature is often overlooked in accounting frameworks, but our study shows its enormous economic benefits. At a time when global systems are under pressure and the planet is warming, nature-based solutions offer an important opportunity to strengthen the resilience of ecosystems – and the economy that depends on them."

For these approaches to succeed, companies should integrate NbS into their strategies and create clear assessment frameworks to make their impacts on jobs, income, ecosystems, and social benefits measurable.

Data and Scenario Modeling for Better Decisions

Precise analysis of biodiversity risks requires modern data and modeling approaches. Scenario analyses are now a central component of ESG reporting, as investors and other stakeholders expect companies to transparently present their environmental, social, and governance risks.

Nevertheless, 47% of organizations still rely on spreadsheets to manage their ESG data. This shows how important specialized solutions are. Modern ESG data platforms offer features such as automated data collection, real-time dashboards, and audit-ready reports.

An example is the Biodiversity Impact Assessment Tool (BIAT), which is compatible with the TNFD framework. It helps companies identify their dependencies on natural resources, assess risks and opportunities, and make informed decisions.

Dr. Choen Krainara from ESGLeadership explains:

"ESG data is no longer a back-office compliance burden – it's a strategic asset. It informs capital allocation, operational risks, product design, and stakeholder trust."

These data-driven approaches create the foundation for specialized consulting services that support companies in integrating ESG goals.

How Fiegenbaum Solutions Can Support You

Fiegenbaum Solutions, the boutique consultancy of Johannes Fiegenbaum, offers comprehensive support in anchoring biodiversity goals in ESG strategies.

The expertise includes ESG strategy development, Life Cycle Assessments (LCA), decarbonization, and climate risk management. Particularly noteworthy are the competencies in CSRD and EU taxonomy compliance as well as impact modeling and scenario analyses.

The team helps companies make data-based decisions and develop sustainable business models. They offer both project-based consulting for specific questions and long-term retainer agreements to ensure continuous support for sustainability and compliance topics.

For startups, there are tailored conditions that are adapted to the respective development phase. Pricing is transparent and offers detailed proposals with clear scope of work, timeline, and fee structure.

With a combination of market knowledge, regulatory expertise, and entrepreneurial experience, Fiegenbaum Solutions supports companies in integrating biodiversity goals into their strategies and achieving measurable results.

Monitoring, Reporting, and Continuous Improvement

To make progress on biodiversity goals measurable, monitoring and reporting are indispensable. These steps enable not only transparency but also continuous development of strategies. While capturing biodiversity data is more complex than measuring CO₂ emissions, available tools and frameworks are constantly evolving. Here we look at important metrics, reporting requirements, and adaptation strategies that help you make your biodiversity measures measurable and improve them in a targeted way.

Using Biodiversity Metrics Effectively

Biodiversity metrics serve as quantitative indicators to assess the status, development, and impacts on biological diversity. Currently, however, only 5% of companies assess their impacts on nature, and less than 1% understand their dependencies. These figures demonstrate the need for action.

Key indicators include ecosystem integrity, biodiversity loss, land degradation, and water stress. With these metrics, companies can specifically identify areas where they can minimize negative impacts.

Some proven tools and frameworks include:

• Biodiversity Footprint Financial Institutions (BFFI)
• Global Biodiversity Score (GBS)
• Corporate Biodiversity Footprint (CBS)
• Species Threat Abatement and Restoration Metric (STAR)
• Environmental Profit & Loss (EP&L)

These tools support companies in analyzing their dependencies on nature and formulating science-based goals. An example of the further development of such instruments is the Version 2.0 of the Americas Biodiversity Metric (ABM), which Ramboll published in June 2025. It provides comprehensive data for the USA, Canada, and Northern Mexico to enable informed decisions in ecological planning and sustainable development.

Transparency Through Reporting Requirements

The EU Corporate Sustainable Reporting Directive (CSRD) significantly expands reporting requirements for companies in Germany. The number of companies required to report increases from 550 to 15,000. These reports must follow detailed standards and consider the principle of "double materiality": Companies must disclose both the impacts of sustainability risks on their business and their own influences on sustainability aspects.

In December 2023, the European Financial Reporting Advisory Group (EFRAG) published the delegated act for the EFRAG reporting standards. The draft "ESRS E4 Biodiversity and Ecosystems" includes 19 reporting requirements in five aspects. Additionally, the EU Nature Restoration Regulation requires national restoration plans and regular reporting on progress.

As the European Commission emphasizes:

"The Nature Restoration Regulation is the first continent-wide, comprehensive law of its kind. It is a key element of the EU Biodiversity Strategy, which sets binding targets for restoring degraded ecosystems."

Adapting Strategies to New Challenges

Biodiversity has lost almost 70% since 1970 worldwide. According to the World Economic Forum, economic values of $44 trillion – more than 50% of global GDP – are at risk if nature destruction is not stopped by 2030. Companies must therefore regularly review and adapt their biodiversity strategies.

Currently, only 15% of companies have assessed the impacts of their value chain on biodiversity – whether in upstream or downstream processes. Integrating biodiversity into climate strategies offers a double opportunity: Climate goals are strengthened while additional benefits arise. Biodiverse forests store 50 to 70% more carbon than monocultures.

The IMD highlights:

"For companies already working on climate action, incorporating biodiversity is not an additional burden but a complementary strategy that strengthens climate goals while delivering additional benefits."

Successful adaptations require precise assessments of materiality and baseline to better understand risks, dependencies, and impacts on nature. Companies should develop nature-friendly business models that offer financial benefits and enter partnerships with organizations that provide regulatory frameworks and tools.

Continuous improvement is achieved by linking biodiversity metrics with the company's specific impacts and dependencies. At the same time, the term "nature" should be used in communication and strategy development to create a clear vision.

Conclusion: Biodiversity as Core of ESG Success

The analysis of frameworks and integration into corporate governance clearly shows: Biodiversity goals are now a central component when it comes to achieving ESG success. In Germany, 35% of native animal species and 26% of plant species are endangered – an alarming state that, with around 48,000 animal, 9,500 plant, and 14,000 fungal species, has not only ecological but also economic impacts. Companies that act now are not only taking responsibility but also securing a solid foundation for their long-term competitiveness.

The EU Biodiversity Strategy for 2030 and the expanded reporting requirements under the CSRD set binding standards that go far beyond voluntary measures. The German Biodiversity Strategy of 2007 also emphasizes the importance of protecting biological diversity as one of the highest priorities and describes it as a humanitarian duty.

To successfully integrate biodiversity goals, a structured approach is needed: from initial assessment through the definition of measurable goals to continuous review. Companies must recognize their dependence on natural resources and incorporate these insights into their governance structures. Thanks to the rapid development of tools and frameworks, biodiversity aspects can be measured and managed with increasing precision.

These measures are crucial to meet the rising expectations of investors, customers, and employees. Stakeholders increasingly demand transparent and effective strategies for biodiversity protection. Companies that meet these requirements benefit from better financing opportunities, stronger customer loyalty, and motivated employees.

Biodiversity is becoming an important differentiator in the ESG field. Those who lay the foundations today can establish themselves as market leaders tomorrow. Protecting biological diversity is thus not only an ethical responsibility but also a strategic key to sustainable business success.

FAQs

How can companies assess their impacts on biodiversity and set realistic goals?

Companies can assess their impacts on biodiversity by conducting a materiality analysis based on international standards such as CSRD or ESRS E4. This involves analyzing locations, identifying relevant risks, and developing specific biodiversity metrics. This structured approach helps better understand the connection between business activities and biodiversity.

To define goals that are not only ambitious but also achievable, a practical approach is crucial. This includes collaboration with experts, thorough assessment of operational conditions, and setting clear, measurable targets. In this way, companies can meaningfully link their ESG strategies with biodiversity goals while ensuring regulatory compliance.

What benefits do companies gain by integrating biodiversity goals into their ESG strategy?

Companies that integrate biodiversity goals into their ESG strategy create a solid foundation to specifically minimize risks from biodiversity loss. At the same time, they are better prepared to meet future legal requirements. This pays off doubly: On one hand, it strengthens their position regarding regulatory requirements, on the other hand, financial and operational risks can be significantly reduced.

Another advantage: Sustainable measures have a positive impact on the company's image. They increase competitiveness and improve access to investment capital, as more and more investors value environmental and social criteria. Companies that integrate biodiversity into their strategic planning also create room for innovation and secure their value creation long-term.

How can modern data and modeling technologies help companies integrate biodiversity goals into their ESG strategies?

Modern technologies such as Big Data, Artificial Intelligence (AI), and digital modeling open up exciting opportunities for companies to integrate biodiversity goals into their ESG strategies in a targeted way. These tools allow for precise capture, analysis, and continuous monitoring of biodiversity data. This enables companies to make better-informed decisions and track their progress clearly.

Such technologies not only help identify risks from biodiversity loss early but also develop sustainable measures that meet the requirements of stakeholders and regulatory authorities. They also support compliance with international standards. This creates a stable foundation for integrating and actively protecting biodiversity in strategic planning long-term.