The Strengthening Understanding and Strategies of Business to Assess and Integrate Nature (SUSTAIN) project provided businesses, financial institutions, and regulatory bodies with the knowledge and resources to better understand, assess, and monitor the dependencies and impacts on nature from activities across different sectors of the economy.
Project Description
All businesses depend on healthy, biodiverse, and functioning ecosystems, either through their direct operations and through their supply chains. Actors across society must work towards enabling transformative change to shift away from negative practices and move towards a system that is nature-positive.
The SUSTAIN project worked with businesses, financial institutions and regulatory bodies to help them understand how their impacts and dependencies on nature affect their operations and profits, through capacity building and the provision of tools and technical skills needed to comprehensively integrate the value of nature into their decision-making.
It used a multi-disciplinary approach to expand and further develop the existing knowledge on business dependencies and impacts to drive better corporate and financial decision-making regarding biodiversity and ecosystem services and reduce resulting financial risks.
The project was co-funded by the EU, the Swiss State Secretariat for Education, Research and Innovation (SERI), and UK Research and Innovation (UKRI) under the UK government’s Horizon Europe funding guarantee. It ran for 3.5 years with the ambition to facilitate transformative changes within the global economy to halt and reverse biodiversity loss.
Project Findings
The project brought together a team of leading experts with backgrounds in ecology, conservation, economics, social sciences, and academic research. Together they sought to:
- Provide an enhanced knowledge base on impacts and dependencies of economic activities on biodiversity and ecosystem services.
- Develop methods to reduce biodiversity and ecosystem service-related risks and increase opportunities through innovative research and modeling techniques
- Develop a toolbox for businesses and financial institutions to use to understand, assess, measure and monitor impacts and dependencies on biodiversity
- Develop and disseminate business case materials
- Engage with key stakeholders from the business, finance, regulatory and intergovernmental spheres
Capital type
Natural capital
Sectors
Business, Finance, Government & Policy
Partners
Oxford Sustainable Finance Group
UNEP-WCMC
WBCSD
ShareAction
PBL Netherlands Environmental Assessment Agency
ETH Zürich
Fundación Biodiversidad
IUCN secretariat and European Regional Office
Contact
Project Outputs
Project Tools
Achieving a nature-positive economy requires a transition from abstract awareness to concrete action. All economic actors depend on and impact nature. Businesses, financial institutions and regulators are increasingly taking measures to better understand nature-related dependencies, impacts, risks and opportunities. Choosing the right tools to support a nature assessment can, however, be challenging.
The SUSTAIN project developed a set of tools designed to help businesses, financial institutions, and regulators undertake this transition. This tools page is categorized into three sections: Nature Tools Compass, ENCORE, and Inventory of Nature Impact Reduction Strategies.
The Nature Tools Compass provides an overview of over 70 tools and recommendations on how they can be helpful in different phases of nature assessment. It was developed as part of the SUSTAIN project based on the research led by UN Environment Programme World Conservation Monitoring Centre (UNEP-WCMC).
All tools included in the Nature Tools Compass are licensed for commercial use and offer a free-of-charge access option. Each tool is mapped to the relevant phase of the LEAP approach developed by TNFD. The LEAP approach can help organizations prepare for reporting in line with TNFD as well as other standards and frameworks. These include the International Sustainability Standards Board (ISSB) Standards, GRI Standards, European Sustainability Reporting Standards (ESRS) and Science Based Targets Network (SBTN).
The Nature Tools Compass provides two tailored pathways:
- A business pathway, designed for corporate nature assessments.
- A finance pathway, designed for financial institutions and also relevant for regulators assessing sectoral or macroeconomic exposure to nature-related risks and opportunities.
The final section of the Nature Tools Compass includes descriptions of all featured tools with key information on the tools and their limitations as well as links to more detailed information.
As the Nature Tools Compass aims to support businesses, financial institutions and regulators with activities in different parts of the world, it primarily features nature tools with global coverage. Organizations are encouraged to look for national and regional tools and datasets that are relevant to their geographical footprint.
ENCORE (Exploring Natural Capital Opportunities, Risks, and Exposure) is a foundational screening resource for financial institutions and businesses seeking to understand their exposure to nature-related risks.
During SUSTAIN, the knowledge base underpinning the ENCORE tool has been updated and this deeply enhanced the understanding of economic activity–nature linkages and strengthen portfolio-level risk identification. These improvements make ENCORE an even more valuable resource for organisations looking to assess their exposure to nature- related risks. With more detailed data and improved functionalities, users can better screen the dependencies and impacts across their value chains.
The improvements to the knowledge base behind ENCORE enable users to explore their use of, and dependency on, nature in greater detail than before. The expert technical research behind the knowledge base update revealed more than 10,000 links between economic activities and ecosystem services, and economic activities and pressures. The updated knowledge base can now be downloaded by ENCORE users running analysis on their activities.
There are several key improvements:
- Expansion of the previous list of 92 ‘production processes’ to 271 ‘economic activities’, catalogued by the globally recognized International Standard Industrial Classification for All Economic Activities (ISIC). These economic activities, ranging from livestock farming to the manufacture of chemicals and nuclear power production, offer a more detailed breakdown on economic sectors.
- The list of ecosystem services is now better aligned with the categorization proposed by the UN’s System of Environmental Economic Accounting – Ecosystem Accounting. Cultural Ecosystem Services – such as recreation, aesthetic appeal, education, and spiritual, artistic and symbolic services – which were previously not included in ENCORE, have been added.
- Improved clarity on how economic activities can impact nature, enabling users to gain more actionable insights.
- Natural capital is now separated into different ecosystem types aligned with the IUCN Global Ecosystem Typology 2.0. This will help users better understand how impacts and dependencies may vary based on where they are located.
- All data on impacts and dependencies of economic activities have been updated based on the latest scientific research, industry expert reviews and grey literature, such as company sustainability reports, organizations’ websites and industry news.
- Improved methodology of the materiality ratings (which indicate how significant potential dependencies are, and how much pressure economic activities have on nature) to enable comparisons across economic activities and sectors. Where possible, these materiality ratings draw on quantitative indicators.
- New information has been added on key value chain links covering two tiers of suppliers and two tiers of consumers for each economic activity, enabling users to see their indirect nature-related impacts and dependencies.
- The updates, particularly the qualitative descriptions, the value chain links and the materiality ratings, have been reviewed by 78 industry experts representing 14 out of the 21 ISIC sections (level 1).
People, businesses and economies cannot thrive without nature, including the essential ecosystems services such as clean water or pollination that underpin our collective survival. As scientific evidence of nature’s rapid decline continues to mount, businesses are increasingly acknowledging their specific impacts on nature and the urgent need to transition toward nature-positive models that can restore natural capital, better manage and safeguard ecosystem services.
The inventory of nature impact reduction strategies was developed for businesses within the agriculture, energy, and built environment sector to help mitigate their impacts on nature. Building on existing guidance from the Science Based Targets Network, the inventory provides a diverse but non-exhaustive list of options businesses could consider as a starting point for addressing their nature-related pressures identified by the ENCORE tool. These pressures range from noise disturbances, water quality issues, the spread of invasive species, land-use change to nutrient pollution.
The inventory aligns with the well-established High-Level Business Actions on Nature: Assess, Commit, Transform, and Disclose (ACT-D)framework by providing support for businesses in the ‘Transform’ phase of revising their business strategy and models. Compiled through a comprehensive process of identifying best practices from academic literature and company case studies, the inventory has been reviewed by subject matter experts. It is intended as a supplementary resource for businesses that have already completed foundational steps, such as conducting robust risk assessments and setting credible science-based targets.
Focusing on high-impact sectors such as agriculture, energy and the built environment, the inventory outlines over 150 response options across different stages of the value chain. Businesses can use this to consider options for both their direct operations and for engaging with upstream and downstream stakeholders to address nature-related impacts through coordinated action.
- For agriculture, the inventory addresses both animal and crop production across the entire supply chain, from on farm-level practices to broader systemic interventions. This includes a range of options from diversifying feed sources to alleviate pressures on water and land resources, adopting circular agricultural practices to improve resource efficiency and reduce waste and utilizing certification schemes that help limit deforestation and minimize land-use change.
- For energy, the inventory covers response options for different types of fossil fuel and renewable energy production including solar, wind and hydropower. It covers a broad spectrum of options, ranging from designating “no-go” zones to mitigate mining and quarrying impacts, to specific operational practices that could improve water quality and toxic pollutant emissions.
- For built environment, the inventory includes a range of possible options spanning the entire lifecycle of buildings and related infrastructure from minimizing the impacts on nature caused by material extraction to mitigating construction effects and improving waste management.
Case Studies
As part of the SUSTAIN project, three insightful new sectoral case study documents of agri-food, built environment and energy systems, highlight practical insights around how companies are identifying and assessing their nature-related issues, building upon established frameworks and guidelines (such as the Taskforce on Nature-related Financial Disclosures (TNFD) LEAP (Locate, Evaluate, Assess, Prepare) approach, the Roadmaps to Nature Positive, etc.) as well as the essential role the systems they operate in play, to contribute to the global goal for nature.
Each document aligns with the High-level Business Actions on Nature to Assess, Commit, Transform, and Disclose (ACT-D) framework, emphasizing the importance of the initial step, Assess. This focus helps companies address nature-related dependencies, impacts, risks, and opportunities (DIROs) systematically, setting them on a path to contribute to the global goal for nature: to halt and reverse nature loss by 2030 and achieve full recovery by 2050.
Dive into the details of the case study documents to find out more on typical dependencies, impacts and risks on nature for the respective systems and 8 company nature journeys.
- The ‘Why’: the rationale to act on nature as a private sector company.
- The ‘What’: use of tools, and alignment with relevant frameworks, standards and disclosure schemes.
- The ‘How: identification and assessment, as well as commitment and action on nature-related issues with practical examples.
This document presents case studies from three energy companies – Iberdrola, Equinor, and CLP – showcasing their unique approaches to integrating nature-related considerations into their operations. By exploring these case studies, companies in the energy sector can gain inspiration and guidance on how to begin assessing and managing their environmental impacts effectively. This document can support sustainability and nature teams within companies, civil society organizations, and financial institutions investing in the energy sector. Read the case studies here.
This document features case studies from Nutrien and Olam Agri and offers insights into how two agri-food companies from different value chain stages are tackling nature-related issues. By aligning their strategies with the ACT-D framework, these companies demonstrate the diverse approaches that can be adopted by others in the sector. This resource is aimed at sustainability teams, civil society organizations, and financial institutions focused on the agri-food industry, providing them with the knowledge to understand and manage nature-related risks and opportunities. Read the case studies here.
In this document, case studies from Sacyr, Holcim, and AECOM with technical support of Nature-based Insights are showcased, each detailing their journey to identify and assess their nature-related issues and taking action. These examples highlight the various methods and practices that can be employed to address nature-related dependencies and impacts in the built environment and is aimed at sustainability teams, civil society organizations, and financial institutions involved in the built environment sector. Read the case studies here.
This study aims to showcase the work of DNB on nature, sending a clear signal that central banks can play an influential role and act as a catalyst in transitioning to a nature positive economy. In the process the study helps readers understand why and how nature loss should be addressed by societal actors, particularly financial institutions and businesses. Read the case studies here.