An open-source approach for measuring corporate impacts on ecosystem services and biodiversity

Abstract

Existing approaches to evaluating companies on sustainability-related issues include limited accounting of impacts on nature and its contributions to human well-being. Here we present an approach for quantifying the direct impacts of companies’ physical assets on nature based on global maps for eight ecosystem service and biodiversity metrics. We apply this approach to a set of over 2000 global, publicly traded companies with 580,000 mapped physical assets and find that companies in utility, real estate, materials, and financial sectors have the largest impacts on average, with substantial variation within all sectors. Using high-spatial-resolution satellite imagery to map individual mine footprints, we compare a set of active lithium mines and find that impacts vary substantially among mines and change over time. By using open-source models and drawing on the growing availability of high-spatial-resolution satellite imagery, this approach could provide more transparent measures of corporate impacts to nature for nature-related reporting. The direct impact of companies’ physical assets on the environment can be estimated from global maps of ecosystem services and biodiversity to understand companies’ nature-related risks and opportunities, according to an assessment of more than 2000 global companies.