In a guest blog, Marianne Haahr, Nature-related Finance Lead at Global Canopy, looks at how the ENCORE biodiversity module, a tool created in partnership with UNEP-FI and UNEP-WCMC, can help assess risks in the agricultural sector.

Why the sector matters for biodiversity

The loss of biodiversity, and society’s response to it, creates material risks and opportunities for banks, asset owners and asset managers.  

While biodiversity risk goes beyond primary industries like agriculture, identifying and managing biodiversity risks in the agriculture sector, alongside the mining sector, is an important first step for financial institutions, as two primary industries that are particularly exposed to biodiversity risks.  

60 per cent of the global potential for reducing species extinction risk falls within cropland areas. Reducing threats posed to species within these areas is crucial for achieving global biodiversity goals. 

How the ENCORE biodiversity tool can help financial institutions assess risks in this sector 

Challenge for agriculture: lack of asset level data 

When developing the ENCORE biodiversity module it was tricky for to develop a method for agriculture – given the challenge of distributed supply chains – and we had to combine and develop existing data to create the underlying asset level data needed. In comparison mining was much more straightforward. Financial institutions would benefit from working with companies to ensure production locations are mapped out and that data is made available. A lot of the data that currently exists is locked away behind paywalls, which also makes it difficult to develop open access methods like the one we have for ENCORE. Ideally this data should be accompanied by information on the management actions in place at each location to help determine actual impact instead of potential impact. 

Next steps for biodiversity data and action in the agriculture sector 

Find out more about how the ENCORE biodiversity module can help assess risks in the agricultural sector in this new video.

Visit the ENCORE website to find out more about the tool.