Biodiversity Assessment
Biodiversity assessment is the process of identifying, quantifying, and evaluating the impacts and dependencies of a company’s operations and supply chains on ecosystems, biological species, and genetic resources.
Its purpose is to help companies understand the role of natural capital in their production and operations, identify ecological risks, opportunities, and management priorities, and support the development of sustainable strategies.
Core Value
Risk Management and Compliance
To meet increasingly stringent ecological regulations, such as the Convention on Biological Diversity (COP15/Kunming-Montreal Framework), Nature-Related Financial Disclosure (TNFD), ecological red line management, and project environmental impact assessment requirements, thereby reducing legal and project approval risks.
Enhance Competitiveness and Market Access
International clients, financial institutions, and supply chains are increasingly emphasizing biodiversity management, and a good assessment will enhance bidding competitiveness, supply chain cooperation, and financing success rates.
Capital Market Trust and Financing Potential
Meeting investors’ natural capital disclosure requirements and improving ESG ratings facilitates access to green finance, sustainable loans, and nature-related investment funds.
Operational Resilience and Supply Chain Security
By protecting natural services such as water, soil, and pollination, production costs can be reduced, resource stability can be enhanced, and the risk of supply chain disruptions can be mitigated.
Brand Reputation and Social Permission
Ecological protection initiatives enhance corporate social credibility (Social License to Operate), reduce project conflicts, and increase employee and community support.
Innovation and New Business Opportunities
Promote new business models and technological innovations in areas such as ecological restoration, bio-based materials, and nature-based solutions (NbS).
Supporting Long-Term Sustainable Development Strategies
Incorporating natural capital into strategic decision-making enhances corporate governance and long-term value creation capabilities.
Services Provided By SUSTECH
Biodiversity assessment is generally divided into four stages: identification, assessment, monitoring, and management. Unlike simple environmental compliance inspections, it focuses more on the interdependence and impact between enterprises and natural systems.
Biodiversity Assessment Framework
1. Assessment Objectives and Scope
Clearly define the purpose of the assessment (such as due diligence for investment and M&A, corporate sustainable development strategy, and supply chain management).
Determine the evaluation boundaries:
Spatial boundaries (project site, operating facilities, supply chain origin).
Time boundaries (short-term, medium-term, long-term).
Value chain boundaries (upstream—production—downstream).
2. Baseline Survey
Regional background: the ecological characteristics of the area, the distribution of protected areas, and the status of ecological red lines.
Species and habitat status: distribution of key species, endangered species, and ecosystem integrity.
Ecosystem services depend on: water, soil, pollination, climate regulation, carbon sequestration, etc.
Data sources: government environmental protection departments, IUCN Red List, GBIF, WWF, remote sensing and GIS.
3. Enterprise Dependence and Impact Assessment
Dependency: Whether a company’s critical business operations depend on natural systems, for example:
Agriculture → Pollination, Soil Quality
Manufacturing → Water Resources and Minerals
Energy → Land Use, Ecosystem Regulation
Impact: The impact of a firm on nature, such as:
Habitat fragmentation/occupation
Water pollution/excessive water extraction
exhaust gas and greenhouse gas emissions
Noise and light pollution
Introduction of alien species
4. Risk and Opportunity Analysis
Risk
Physical risks: Ecological degradation leads to disruptions in resource supply.
Legal/Policy Risks: Stricter environmental regulations and restrictions on mining and use in protected areas.
Market risk: Customer and investor requirements for supply chain sustainability.
Reputational risk: Violations or ecological damage may lead to public opinion risks.
Opportunity
Ecological restoration and natural solutions (NbS) bring cost optimization.
Enhance the market brand value of biodiversity-friendly products.
Obtain support from green finance and ESG investment.
5. Indicators and Measurement Methods
Common reference systems:
- GRI 304 Biodiversity
- TNFD LEAP framework
- IPBES/IPCC Indicator System
Key indicator examples:
- Land use type and area (ha)
- The percentage located in protected areas or ecologically sensitive areas (%)
- Changes in the number of key species (species/individuals)
- Water resource extraction and replenishment rate (m³)
- Ecological restoration area (ha)
- Ecosystem service value estimation (monetization indicator)
6. Monitoring and Management Measures
Establish a monitoring system (remote sensing + field survey + third-party audit).
Set biodiversity conservation targets (No Net Loss, Nature Positive).
Develop management measures:
- Avoid: Site selection should avoid sensitive areas.
- Minimize: Reduce pollution and land occupation
- Restore: Ecological restoration, habitat recovery
- Offset: Ecological compensation, carbon sequestration, or support from the National Natural Science Foundation of China.
7. Disclosure and Communication
- Align with the disclosure requirements for TNFD, CDP, and GRI.
- Report the assessment results and improvement plans to stakeholders (government, community, investors).
- Enhance transparency and accountability.
SUSTECH
SUSTECH is an innovative technology service company with artificial intelligence, big data, and blockchain at its core. We specialize in ESG (Environmental, Social, and Governance) testing, certification, and compliance management, helping companies achieve their sustainable development goals. Through digital and intelligent means, we are redefining the testing and certification industry, making ESG compliance more transparent, efficient, and credible.
Core Advantage: Technology-enabled ESG Compliance
Intelligent ESG Data Acquisition and Analysis
- IoT Environmental Monitoring: Real-time collection of data on enterprise carbon emissions, wastewater discharge, energy consumption, etc., and automatic generation of ESG reports.
- AI carbon footprint calculation: Based on supply chain data, it accurately calculates the carbon footprint of a product throughout its entire lifecycle, in accordance with international standards such as ISO 14064 and GHG Protocol.
ESG Certification and Rating Optimization
- Automated compliance checks: AI compares data against global ESG standards (such as GRI, SASB, TCFD) to identify ESG risks for enterprises and provide improvement suggestions.
- ESG Rating Enhancement Solution: Combining industry best practices, we develop actionable ESG optimization strategies to help companies improve their ESG ratings from MSCI, S&P, and other ranking bodies.
Blockchain-based Evidence Storage and Transparent Traceability
- Tamper-proof ESG reports: All test data is stored on the blockchain to ensure traceability and auditability, enhancing the trust of investors and regulators.
- Supply chain ESG penetration management: Tracking supplier ESG performance to ensure compliance with the requirements of major international manufacturers.
