Leading the way in biodiversity: Shaping a sustainable future

Key takeaways:

Businesses are recognising that climate and nature are deeply intertwined challenges. Addressing one without the other can lead to unintended consequences, such as climate mitigation efforts harming ecosystems.

Biodiversity is becoming a strategic priority, with industries like real estate, electricity, and construction leading in reporting under frameworks like ESRS and TNFD.

Effective biodiversity leadership starts with taking decisive action, even without perfection. Companies are leveraging tailored metrics, strategic partnerships, and innovative communication formats to engage stakeholders and drive meaningful change.

In a landscape where sustainability ambitions face increasing scrutiny, biodiversity presents an opportunity for companies to lead with purpose and creativity. While climate action has long held the spotlight on the ESG agenda, nature is now becoming a core strategic priority.

Forward-thinking businesses understand that climate and nature are not separate challenges; they are deeply intertwined. Addressing one without the other risks creating short-term solutions that result in long-term damage. Certain climate mitigation efforts, for instance, can inadvertently harm ecosystems and accelerate biodiversity loss. Conversely, protecting and restoring nature supports climate resilience, regulates carbon cycles, and mitigates risks from severe natural events, empowering communities and strengthening operations.

The strategic shift towards biodiversity reporting in Europe

The EFRAG State of Play Report 2025 confirms this pivot. Among companies reporting under the European Sustainability Reporting Standards (ESRS), 30% have disclosed biodiversity metrics, with an average of four indicators per company. This trend includes firms that do not yet classify biodiversity as a material issue; a clear signal of growing awareness that extends beyond regulatory requirements. True sustainability leadership means anticipating change, not just reacting to it.

Industry and regional leaders driving ESRS biodiversity reporting

RSM’s biodiversity experts have analysed reporting on biodiversity under both the Taskforce for Nature-related Financial Disclosures (TNFD) and CSRD and identified key trends. Industries with the most direct impact on ecosystems are setting the pace for biodiversity reporting and ESRS compliance. Disclosure rates are highest in:

Geographically, leadership is emerging across Europe, with France (49%), Sweden (44%), and the Netherlands (39%) demonstrating strong commitment. RSM’s market analysis also identified Japan as a reporting leader. The financial services industry, particularly asset management, is also making significant strides. There is a growing recognition that economic activity is fundamentally dependent on nature and that these activities can have negative impacts that must be managed.

Strengths and weaknesses in biodiversity reporting under ESRS

RSM’s market analysis found that dependencies and opportunities were underdeveloped when compared to impacts and risks. This trend is strong across sectors, with impacts and risks being specific and well-developed, while dependencies are only discussed at a high level. Opportunities, while more specific than dependencies, were reported by very few companies included in the market assessment.

Looking at risks specifically, the analysis highlighted a tendency to focus on transition risks rather than physical risks, in addition to a complete lack of reporting on systemic risks.

Tailored biodiversity metrics: Driving impact and ESRS compliance

Beyond the headline numbers, a landscape of innovative and tailored practices is emerging. Companies are developing entity-specific biodiversity metrics that reflect their unique operational footprint. These range from tracking endangered species on-site to measuring the area of restored habitats or assessing investments in biodiversity-sensitive zones.

This bespoke approach is crucial. Biodiversity is inherently site-specific, and effective reporting demands a deep understanding of your organisation’s individual impact and dependencies. It is about moving beyond generic metrics to generate insights that drive meaningful action.

An essential first step to developing relevant biodiversity metrics is establishing a thorough understanding of your organisation’s interfaces with nature through a tailored LEAP assessment, following TNFD recommendations.

LEAP is TNFD’s recommended four step process for approaching nature and biodiversity. The process can be highly customised based on your organisation’s needs.

Biodiversity leadership: Taking action to drive change

The regulatory and political landscape continues to evolve, which is precisely why decisive action now is more important than ever. The acceleration of biodiversity loss presents tangible risks to supply chains, operations, and the communities you serve. Yet, within this challenge lies a vast opportunity. Nature is a powerful source of innovation, value creation, and a foundation for long-term stability and growth.

Leadership in this area does not demand perfection from day one. It begins with using what you know, acting on what you have, and focusing on where you can make the most significant impact, for nature and for your business.

Companies are embracing this challenge through tailored metrics, strategic partnerships, and creative communication formats that make this complex topic more accessible. From collaborative workshops to immersive digital experiences, new ways of engaging stakeholders are fostering a deeper understanding and commitment to biodiversity.

Make biodiversity your next business priority

Integrating biodiversity into your core strategy is not simply an environmental choice; it is a business imperative that builds resilience, drives innovation, and creates lasting value. The time to act is now.

Are you ready to explore your biodiversity reporting under ESRS, TNFD, CSRD or VSME? Watch our recent webinar to explore actionable strategies and gain the confidence to lead.

Alternatively, contact us to learn how RSM’s deep, industry-specific expertise can support your journey towards impactful sustainability leadership. Let us help you write your future with nature.