Biodiversity and ecosystem services in business sustainability: Toward systematic, value chain‐wide monitoring that aligns with public accounting

Abstract

AbstractImportant expectations are placed globally on the private sector to take part in co‐governing sustainability challenges. With increasing recognition that business organizations depend and impact on natural capital, biodiversity, and related ecosystem services, it has become pivotal for companies to be able to appraise and manage such issues. This calls for developing avenues through which biodiversity and ecosystem services can be incorporated in sustainability accounting (as well as reporting and response practices) by individual organizations, without neglecting a value chain‐wide perspective, and aligning that with existing efforts for public accounting of natural capital, against the overall framework of national and global sustainability goal and targets. This article addresses such a call by elaborating on the contributions of ecosystem services to business organizations and illustrating the two main challenges related to feeding private sector data into national accounting of natural capital and ecosystem services; and to understand how the two challenges identified in the previous point can be addressed by companies, we provide an overview of the fragmented landscape of management systems, approaches, methods, and initiatives dedicated to monitoring, reporting on, and responding to biodiversity and ecosystem services issues at the organizational and value chain level. We conclude by offering reflections on how to foster a shift from one‐off assessments at the company level to more systematic and comprehensive ones along the value chain.