IFB Leader, Professor Franzi Schrodt has co-produced a Biodiversity Credit Alliance (BCA) discussion paper, Understanding Biodiversity Credit Metrics: A Business Imperative. It is a primer for what business needs to know about this nascent market, and how to approach it most effectively.
Franzi said:
"The private sector is now in a position to be a major actor in reversing biodiversity loss. By making informed, well-considered decisions about how they engage with biodiversity credits, businesses can drive meaningful change, not just for their own sustainability goals, but for the planet's health."
The paper answers 10 key questions -
- Why is it important to invest in biodiversity?
- How are biodiversity credits different from carbon credits?
- Does it matter that there isn’t a single fungible unit?
- Do biodiversity credits fit into my corporate disclosure sustainability reporting?
- How do I know our company won’t be accused of greenwashing?
- How do I choose a credit that represents measurable and verified positive biodiversity outcomes?
- What role does technology play in monitoring and measuring biodiversity outcomes?
- Will AI resolve uncertainty around measuring biodiversity?
- What does this all add up to?
- Where can I find more information?
Franzi added:
"The core principles of quality, integrity, and equity are the foundation of the biodiversity credit market. It’s not enough for credits to simply represent a financial transaction; they must reflect measurable, additional, and durable biodiversity outcomes, verified against robust metrics and frameworks."
Franzi worked alongside Adrian Dellecker of the International Institute for Management Development, PJ Stephenson of the University of Lausanne, and Nathalie Whitaker of the Toha Network. The work was coordinated by Josh Brann and Belicia Teo of the BCA.
The report is available from the BCA website.