
CDSB framework: Application guidance for biodiversity-related disclosures
The CDSB Framework application guidance for biodiversity-related disclosures (the Biodiversity Application Guidance) has been produced by CDSB to assist companies in the disclosure of the material information about the risks and opportunities that biodiversity presents to an organisation’s strategy, financial performance and condition within the mainstream report (biodiversity-related financial disclosure). It is designed to supplement the CDSB Framework for reporting environmental and climate change information to investors (CDSB Framework).
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OVERVIEW
About this guidance
The CDSB guidance outlines a structured approach for organisations to integrate biodiversity-related information into their mainstream reports. It aligns with six key requirements of the CDSB Framework, focusing on governance, strategies, risks, impacts, performance, and future outlook. The document aims to assist organisations in providing material, decision-useful information on biodiversity risks and opportunities to enhance resilience and support sustainable economic systems.
Biodiversity and business
The importance of biodiversity to business and society
Biodiversity underpins ecosystem services essential for business operations and societal well-being. For example, more than 50% of global GDP relies on nature, while biodiversity-related services such as pollination support crop production worth USD 235–577 billion annually. The loss of biodiversity presents risks including productivity declines costing USD 6.3 trillion per year and widespread disruption to ecosystem services.
Business and biodiversity interactions
Businesses impact biodiversity through land use, pollution, and resource exploitation. Dependencies on biodiversity include provisioning services like raw materials and regulating services like water filtration. Financial risks include supply chain disruptions, liability for biodiversity damage, and reputational harm. However, businesses can drive positive change by adopting sustainable practices, engaging stakeholders, and implementing biodiversity strategies.
Application guidance for biodiversity-related disclosures
Reporting expectations
Organisations must assess materiality dynamically, considering biodiversity’s impacts on operations and value chains. Disclosures should be specific, contextualised, and consistent with other environmental information. For example, only 10% of companies report biodiversity metrics compared to 100% for greenhouse gas emissions, highlighting a significant gap in reporting.
Governance
Effective governance requires board-level oversight, stakeholder engagement, and accountability for biodiversity policies. Best practices include linking biodiversity-related performance to executive remuneration and establishing systems for monitoring and incentivisation.
Environmental policies, strategy, and targets
Organisations should explain their biodiversity dependencies and impacts, define measurable targets, and allocate adequate resources. For example, biodiversity net gain strategies and commitments to eliminate deforestation align with international goals like the Science-Based Targets for Nature and the UN’s post-2020 biodiversity framework.
Risks and opportunities
Biodiversity-related risks span physical, regulatory, and reputational dimensions. For instance, habitat degradation increases costs from natural disasters, while consumer preference shifts toward sustainable products create opportunities for market differentiation. Tools like scenario analysis and risk mapping can quantify these impacts and support decision-making.
Sources of environmental impact
Key impact drivers include land-use changes, pollution, and resource exploitation. Metrics such as the hectares of land converted, species affected, and ecosystem integrity indicators provide actionable insights. Tools like the Driver-Pressure-State-Impact-Response (DPSIR) framework and ENCORE aid in assessing and reporting biodiversity impacts.
Performance and comparative analysis
Performance should be contextualised against baselines and targets. Metrics like species abundance or habitat condition changes highlight progress toward biodiversity goals. Comparative analysis enables stakeholders to evaluate trends and organisational commitment.
Outlook
Future scenarios should consider how biodiversity impacts business continuity and resilience. Scenario analysis can help organisations adapt to evolving environmental, regulatory, and market conditions.