Biodiversity is often seen as a topic for environmentalists or large organisations, but it has a crucial role in the success of small and medium-sized enterprises (SMEs). While many SMEs focus on growth and survival, ignoring biodiversity could harm your business in the long run.
This blog will explore why biodiversity matters for SMEs, the challenges you may face, and practical steps you can take to build a business biodiversity strategy that works for your size and sector.
Why Biodiversity matters to SMEs
Biodiversity refers to the variety of life on Earth, from animals and plants to fungi and microorganisms. Healthy ecosystems provide essential services like clean air, water, and fertile soil. Businesses rely on these services, even if it’s not immediately obvious.
For SMEs, biodiversity plays a direct role in:
- Resource Availability: Whether you’re in manufacturing, food production, or retail, your supply chains depend on natural resources. A decline in biodiversity can lead to resource scarcity and increased costs.
- Customer Expectations: Consumers are increasingly aware of environmental issues and prefer to support businesses that demonstrate responsible practices.
- Compliance and Regulation: Governments and industry bodies are introducing stricter regulations on biodiversity. Staying ahead of these can prevent fines and strengthen your market position.
- Risk Management: Biodiversity loss can lead to business risks, such as disrupted supply chains or reputational damage. By addressing biodiversity, SMEs can better manage these risks.
Common challenges SMEs face
Creating a biodiversity strategy can feel overwhelming, especially for smaller businesses with limited resources. Here are some common hurdles:
- Lack of Awareness: Many SMEs don’t realise how biodiversity connects to their business operations.
- Complexity: Understanding biodiversity impacts and dependencies can be complex without the right tools.
- Resource Constraints: SMEs often operate with tight budgets and limited staff, making it hard to allocate time or money to biodiversity initiatives.
- Buy-In: Convincing stakeholders, from employees to suppliers, to support biodiversity efforts can be challenging.
Despite these challenges, there are effective ways for SMEs to integrate biodiversity into their business model without overextending their resources.
First steps: Understanding your impact
Before taking action, it’s essential to understand how your business interacts with biodiversity. Here’s where to start:
-
Data gathering
Start by collecting data on your business activities and their potential impact on local ecosystems. Tools like ENCORE can help visualise the interactions between nature and your business processes.
Key questions to ask:
- Where do our raw materials come from?
- What are our main sources of waste?
- Do we use water, soil, or energy from natural ecosystems?
-
Value chain analysis
Determine your position in the value chain and identify areas where biodiversity is affected. For instance, if you’re a retailer, consider the sourcing practices of your suppliers.
-
Stakeholder engagement
Involve employees, suppliers, and customers in discussions about biodiversity. Their insights can help identify risks and opportunities you may not have considered.
Setting Biodiversity Goals
Once you have a clear picture of your impact, the next step is to set measurable goals.
-
Align with frameworks
Frameworks like the Taskforce on Nature-related Financial Disclosures (TNFD) and Science-Based Targets for Nature (SBTN) provide structured approaches to setting and achieving biodiversity goals.
The TNFD, for example, focuses on governance, strategy, risk management, and metrics. It helps businesses manage nature-related risks while documenting their financial impacts.
-
Biodiversity Action Plan (BAP)
A Biodiversity Action Plan outlines specific actions your business will take to meet its biodiversity goals. This could include:
- Reducing waste
- Switching to sustainable suppliers
- Enhancing green spaces around your office or facilities
Quick wins for SMEs
You don’t need to start with a massive project. Small, low-cost actions can create immediate impact and build momentum:
- Plant wildflowers: Turn unused land into a pollinator-friendly habitat by planting wildflowers.
- Install green roofs: Green roofs reduce energy use and provide a habitat for local wildlife.
- Reduce waste: Implement recycling programmes and minimise packaging.
- Collaborate locally: Partner with other SMEs or local Charities to pool resources and work on biodiversity projects together.
These initiatives not only benefit the environment but also engage your staff and enhance your brand reputation.
Biodiversity net gain and Voluntary biodiversity credits
You may have heard terms like Biodiversity Net Gain (BNG) and Voluntary Biodiversity Credits (VBC). Here’s what they mean and how they can apply to SMEs:
- Biodiversity Net Gain (BNG): This principle ensures that development projects leave biodiversity in a better state than before. SMEs involved in construction, property, or landscaping can adopt BNG principles to offset their environmental impact.
- Voluntary Biodiversity Credits (VBC): These credits allow businesses to invest in biodiversity projects voluntarily. SMEs can purchase VBCs to support initiatives like reforestation or wetland restoration, even if these projects are outside their immediate operations.
Building a long-term strategy
A biodiversity strategy isn’t a one-off project—it requires ongoing effort and monitoring. Here’s how to keep it sustainable:
-
Embed biodiversity in business strategy
Biodiversity should be a core part of your business strategy, not an afterthought. This includes:
- Regularly reviewing and updating your Biodiversity Action Plan (BAP). Some great resources here to help you.
- Integrating biodiversity goals into your overall sustainability objectives
-
Monitor progress
Use KPIs to track progress on biodiversity goals. Examples include the number of trees planted, reduction in waste, or percentage of suppliers meeting biodiversity criteria. The Global Reporting Initiative (GRI) has a range of common metric you can apply.
-
Communicate your efforts
Transparency is key. Share your biodiversity journey with stakeholders through reports, social media, or newsletters. This not only builds trust but also inspires others to take action.
-
Collaboration with others
Partner with environmental Charities or other SMEs to share resources, knowledge, and best practices. Collaborating on biodiversity projects can increase your impact and reduce costs. It it also one way to tackle the challenge on a much larger scale. Some examples could include:
Overcoming barriers
Even with the best intentions, SMEs may encounter barriers when implementing biodiversity initiatives:
- Financial constraints: Seek funding opportunities, such as government grants or biodiversity credits.
- Lack of expertise: Use online tools and frameworks like ENCORE or partner with sustainability consultants.
- Cultural resistance: Foster a culture of sustainability through employee training and by celebrating biodiversity milestones.
Biodiversity is no longer a ‘nice to have’—it’s a business imperative. For SMEs, taking action on biodiversity can lead to long-term resilience, cost savings, and a stronger brand.
Starting small is perfectly fine. Whether it’s planting wildflowers or switching to sustainable suppliers, every step counts. With the right strategy, tools, and partnerships, SMEs can contribute to a more biodiverse and sustainable future.
Get in touch with us at Info@Sustainablex.co.uk if you want support embedding biodiversity in your Sustainability Strategy.