Beware, nature – the CSRD is not taking care of the state of you!

As we rapidly approach COP16 and reflect on the progress towards the targets set out in the Global Biodiversity Framework (GBF), we must ask the question, is regulation driving us in the right direction?

The Corporate Sustainability Reporting Directive (CSRD) has already begun its phased implementation and will soon impact up to 50,000 organisations across the EU.

The CSRD makes biodiversity a central element of corporate sustainability reporting, driving companies to take responsibility for their environmental impacts.  

By embedding biodiversity into corporate governance and strategy, the directive aims to help reverse biodiversity loss, align business operations with conservation efforts, and foster long-term sustainability for both companies and ecosystems. Through increased transparency, the directive creates pressure on businesses to prioritize biodiversity and make meaningful contributions to its preservation.

Under the CSRD, companies are required to disclose more detailed and comprehensive information regarding their impacts, dependencies, and risks related to biodiversity, in addition to other environmental, social, and governance (ESG) topics. This shift is designed to help align corporate activities with the EU’s broader sustainability objectives, including the European Green Deal and biodiversity protection efforts.

This is undoubtedly a step change for good.

However, I have two major concerns.  

1. ‍Is CSRD becoming a tick-box exercise undertaken without careful knowledge of what nature-related risk really is? At NatureMetrics, we’ve discussed the depth and extent of nature-related risk many times, and that very few businesses are untouched by nature-related risk.    ‍
2. Does CSRD focus too much on the pressures on biodiversity rather than the fundamental need to understand the changing state of nature? The state of nature being its current health and condition. In CSRD, the state of nature is only an option, not a requirement.

Monitoring the state of nature is crucial for several interconnected reasons, ranging from environmental health to human well-being and economic stability.  

Understanding and tracking the condition of ecosystems, biodiversity, and natural resources is key to addressing environmental challenges and ensuring the sustainability of life on Earth.  

Therefore, monitoring the state of nature is vital for protecting biodiversity, maintaining ecosystem services, managing natural resources sustainably, and ensuring human well-being. It provides the foundation for informed decision-making, early intervention, and the creation of strategies to mitigate environmental degradation and adapt to climate change.

Without continuous and accurate monitoring, we risk losing essential ecosystems and species, which would have profound and far-reaching consequences for both nature and humanity.

It is understanding the state of nature that will help to build resilient supply chains, businesses and economies. Pressures are only half the story.

This is what we’re trying to help organisations do at NatureMetrics – truly understand the health of ecosystems.  

NatureMetrics provides a suite of incredible metrics and insights into the state of nature powered by our eDNA technology; assessing ecosystem health and condition, ecological restoration and the tracking of species and communities of species. These help us understand the state of nature and how it is responding to management interventions and those ever-present impacts and dependencies we, as a sadly over-consumptive society, have on nature.  

It’s not all doom and gloom. There are some extremely positive elements to CSRD (and the TNFD, of course). The general push of regulation such as this and voluntary commitments like TNFD are introducing hugely important and transformative leaps in certain industries.  But let’s be a bit more imaginative and strict on ourselves.  

We need to acknowledge that nature technologies are collectively transforming our ability to get into the detail of nature and understand what is happening at site-level. Let’s not delay making the state of nature metrics core to CSRD and TNFD, enabling us to be ambitious and meet global goals for nature much faster.

If that’s not enough to convince you, I’ve outlined below top ten very good reasons why your business should monitor the state of nature and incorporate it into your CSRD and TNFD reporting.

Ten reasons to monitor the state of nature

1. Biodiversity Conservation 

• Protecting Species and Ecosystems: Monitoring helps track the health and populations of species and ecosystems, allowing us to detect declines or changes early. This is critical for preventing the extinction of endangered species and protecting biodiversity, which is essential for resilient ecosystems. 

• Maintaining Ecosystem Services: Nature provides essential ecosystem services like pollination, clean air, water filtration, and nutrient cycling. Monitoring ensures these services are preserved, supporting human life and the economy. 

2. Early Detection of Environmental Problems 

• Identifying Declines or Threats: Regular monitoring can detect early signs of ecosystem degradation, pollution, habitat loss, or climate change impacts. Early detection allows for timely intervention, reducing the likelihood of irreversible damage. 

• Invasive Species Control: Monitoring nature helps track the introduction and spread of invasive species, which can disrupt ecosystems, outcompete native species, and cause significant economic and environmental harm. 

3. Informed Decision-Making 

• Evidence-Based Policies: Monitoring provides the data needed for governments, businesses, and conservation organizations to make informed decisions about environmental protection, land use, and resource management. Accurate data supports the development of sound policies that balance economic growth with environmental conservation. 

• Sustainable Development: Monitoring allows for the assessment of sustainability initiatives, ensuring that economic development does not come at the cost of degrading natural resources. It supports the development of long-term strategies for balancing ecological health and human needs. 

4. Climate Change Mitigation and Adaptation 

• Tracking Climate Impacts: Monitoring nature is essential to understanding the impacts of climate change on ecosystems and species. It helps identify shifts in species distribution, changes in phenology (seasonal cycles), and ecosystem degradation due to climate-related factors. 

• Supporting Adaptation Strategies: By tracking the effects of climate change, monitoring helps design effective adaptation strategies to protect vulnerable ecosystems and species. For instance, it can inform habitat restoration projects or conservation corridors that allow species to move in response to changing climates. 

5. Human Health and Well-Being 

• Ecosystem Health and Disease Control: Healthy ecosystems regulate diseases, control pests, and provide clean air and water. Monitoring helps maintain the natural systems that protect human health by controlling disease vectors (e.g., mosquitoes, ticks) and ensuring safe environments for food production. 

• Mental and Physical Well-Being: Natural environments play a vital role in human health by offering spaces for recreation, relaxation, and mental rejuvenation. Monitoring the state of nature helps preserve these environments, contributing to better physical and mental health for communities. 

6. Sustainability of Natural Resources 

• Ensuring Resource Availability: Monitoring ecosystems ensures that natural resources, such as fisheries, forests, and freshwater systems, are managed sustainably. Overexploitation of these resources can lead to long-term depletion and loss of livelihoods for communities that depend on them. 

• Food Security: Many agricultural systems depend on healthy natural ecosystems for services such as soil fertility, water availability, and pollination. Monitoring ecosystems can help safeguard the natural processes that support food production. 

7. Measuring Progress Toward Conservation Goals 

• Assessing the Effectiveness of Conservation Efforts: Monitoring allows conservationists to track progress toward biodiversity and environmental protection goals, such as those set by international agreements like the Convention on Biological Diversity (CBD) and the UN Sustainable Development Goals (SDGs). It helps determine whether actions are successful or need adjustment. 

• Supporting Global Conservation Agreements: Monitoring nature provides data that contributes to international efforts to curb biodiversity loss, combat climate change, and protect ecosystems. This is crucial for global cooperation on environmental issues. 

8. Economic Benefits 

• Nature-Dependent Economies: Many industries, such as agriculture, tourism, fishing, and forestry, depend on healthy ecosystems. Monitoring ensures that these sectors can continue to thrive without depleting the natural resources they rely on. 

• Risk Management: Businesses increasingly recognize that environmental degradation and biodiversity loss pose financial risks. Monitoring allows companies to assess their impacts, manage environmental risks, and adopt sustainable practices that protect their long-term profitability. 

9. Cultural and Social Values 

• Preserving Cultural Heritage: Many cultures, particularly Indigenous communities, have deep connections with nature. Monitoring the state of nature helps preserve the landscapes, species, and ecosystems that are integral to cultural identity and heritage. 

• Supporting Community Resilience: Healthy ecosystems often provide natural barriers to disasters, such as wetlands that absorb floodwaters or mangroves that buffer coastlines from storms. Monitoring these natural systems supports community resilience to natural disasters. 

10. Accountability and Corporate Responsibility 

• Corporate Sustainability: Monitoring nature helps hold corporations accountable for their environmental impacts. As companies adopt sustainability reporting, monitoring data is essential to track progress on biodiversity goals, reduce environmental footprints, and comply with regulations like the EU Corporate Sustainability Reporting Directive (CSRD). 

• Preventing Greenwashing: Accurate, science-based monitoring data helps prevent companies from making unsubstantiated environmental claims. Transparent reporting based on monitored data builds trust with stakeholders and customers. 

Look out for our guide to CSRD, coming very soon!

Pippa Howard, Chief Nature Strategist, NatureMetrics

‍