Biodiversity is becoming increasingly relevant to business - this is one of the conclusions of a master's thesis at Umeå University where economics students Amna Goaied and Christian Sjöland have investigated what drives Swedish companies to voluntarily work for biodiversity.
One step further: net profit target
The paper focuses on so-called BNG strategies - Biodiversity Net Gain strategies - which arise when companies choose to set biodiversity net gain targets and not just to avoid, minimize, restore and compensate for their biodiversity impacts.
Through an initial literature review, the authors examined companies' drivers for sustainability in general, and how the issue of biodiversity can evolve from risk to potential. They then conducted case studies and interviews with seven large Swedish companies - all with ambitious biodiversity targets.
The main drivers are business-critical
The authors have found several drivers for companies to adopt biodiversity strategies. The main drivers have been found to be
- cost and risk minimization
- increased sales and profit margins
- strengthened brand
- increased attractiveness as an employer
- strengthened innovation capacity
- a better stakeholder dialogue.
In addition, the importance of a prosperous future society for all people has also proven to be a strong driver. The companies, which are not mentioned by name in the paper, are in the sectors of food production, real estate management, energy production and mineral extraction.
Like ripples on the water
Ecogain CEO Anders Enetjärn comments on the paper:
- I see how biodiversity issues are becoming increasingly relevant to business. This paper confirms it. When a few companies take the lead, it spreads like ripples. I'm also glad that there are now some Swedish companies that have a clear strategy for responsible land use," he says.
Want to know more?
Read the paper Biodiversity and Business - Multiple Case-Studies on Biodiversity Strategy in Sweden in full.
