Why biodiversity reporting should be a part of your ESG strategy
Biodiversity reporting details an organisation's efforts to operate sustainably and safeguard the natural environment.
Biodiversity loss is no longer just an environmental issue but a commercial, regulatory and reputational risk for organisations across every sector.
As investors, regulators, customers and supply chain partners place greater scrutiny on nature-related impacts and dependencies, biodiversity reporting can help organisations understand their exposure, demonstrate progress and build stakeholder confidence.
For businesses already reporting on climate-related risks, nature-related disclosure is the logical next step. Acting now gives you time to build a robust, credible approach ahead of rising expectations.
Biodiversity reporting: key terms businesses need to know
What is biodiversity?
Ecosystems contribute to human survival by providing food, water, medicine, shelter and other resources.
Biodiversity refers to the variety of all living components within an ecosystem; the greater the diversity of life, the healthier the ecosystem.
However, the UK ranks in the bottom 10% of nations for biodiversity. Factors like loss of natural habitats, climate change and pollution drive biodiversity loss.
What is biodiversity reporting?
Biodiversity reporting outlines what an organisation is doing to operate more sustainably and protect the natural world.
Although compulsory for some organisations such as local authorities, biodiversity reporting also presents an opportunity to demonstrate to stakeholders how your organisation navigates its impact on the surrounding environment.
TCFD versus TNFD
The Task Force on Climate-related Financial Disclosures (TCFD) and the Taskforce on Nature-related Financial Disclosures (TNFD) are closely related frameworks but focus on different aspects of environmental risk.
The TCFD focuses specifically on climate-related financial risks, whereas the TNFD covers wider nature-related risks like biodiversity loss, ecosystem degradation and natural resource dependencies. For instance, certain NHS bodies in England must make TCFD-aligned disclosures as part of their annual reporting.
Both frameworks share the same four-pillar structure – governance, strategy, risk management, and metrics and targets – so organisations already reporting against TCFD will find TNFD familiar territory.
Nature-related disclosure may follow a similar path to climate reporting – voluntary at first, then increasingly expected or mandated – so adopting TNFD early can keep organisations ahead of stakeholder and regulatory change.
Not sure where to start?
If you already report against TCFD, TNFD is a logical next step. Inspired can help you build on the governance, strategy, risk management and metrics foundations you already have.
Why biodiversity reporting matters for your organisation
Effective biodiversity reporting can support stronger decision-making by identifying where your operations, assets and supply chains depend on nature, where each may affect local ecosystems, and where action is needed most.
This can help your organisation turn high-level ESG ambition into concrete practical action:
- Reduce regulatory risk by preparing for evolving nature-related disclosure expectations.
- Improve investor and customer confidence by showing how nature-related risks are being managed.
- Strengthen ESG performance with clearer evidence, metrics and action plans.
- Prioritise resources effectively by identifying the sites and activities requiring closer assessment.
For organisations with large property portfolios, manufacturing operations, retail estates, public sector sites or complex supply chains, a structured biodiversity approach can turn environmental data into a practical roadmap for action.
How to get started with biodiversity reporting
Fortunately, there’s no need to start from scratch. Established standards, alongside newer biodiversity monitoring solutions, help embed structure, consistency and credibility into nature-related disclosures.
The improved transparency also strengthens ESG disclosures, with ESG ratings benefiting as a result.
Biodiversity desktop studies: understand your risks without leaving the office
A desktop study is often the most practical first step towards impactful biodiversity reporting.
As part of a desktop assessment, Inspired’s experts assess your portfolio using existing databases to identify the sites that may warrant further analysis – giving you a clear picture of where your biodiversity risks and opportunities lie.
Two types of desktop study are available, depending on the size and nature of your portfolio:
- Streamlined study (UK and international): A high-level assessment, recommended for large portfolios.
- Extensive study (UK only): A deeper assessment, recommended for smaller portfolios with high business activity, such as manufacturers.
A qualified ecologist reviews every desktop study, ensuring the findings stand up to scrutiny. Alongside your final report, our ESG team delivers biodiversity risk workshops and actionable site recommendations to help drive progress.
Managing multiple sites? A biodiversity desktop study can help you identify where to focus first and where further investigation may be needed.
Biodiversity site surveys: when desktop analysis is not enough
If your desktop study confirms a closer look at a site is warranted, we’d recommend progressing to a site survey, which can be carried out in person in the UK or virtually across the world.
While a desktop study provides a useful starting point, Inspired’s site survey can uncover and address potential biodiversity risks in much greater depth.
The resulting data informs stronger business decisions and helps organisations prioritise resource allocation more effectively. Site survey findings can also support public disclosures, bolstering wider stakeholder transparency.
Biodiversity gap analysis: assess your TNFD reporting readiness
Focusing on internal and publicly disclosed data, Inspired’s analysis tool assesses your current biodiversity position and evaluates your organisation from a reporting readiness perspective.
Our tool is calibrated against mandatory, voluntary and best practice TNFD reporting standards. We will then assess all your internal biodiversity initiatives – in place and planned in the short term – to identify gaps against the TNFD framework.
Our findings will be presented in a workshop to bolster your biodiversity strategy, with practical solutions to improve your position. These are presented in your final Gap Analysis Report to inform your forward-planning.
How Inspired can support your biodiversity reporting journey
Understanding the biodiversity ESG landscape is the first step towards reporting that meets stakeholder expectations and supports measurable action.
Inspired can help your organisation take a structured approach to biodiversity reporting by:
- Identifying biodiversity risks through desktop studies across UK and international portfolios.
- Investigating priority sites through in-person or virtual surveys.
- Assessing reporting readiness through TNFD-aligned gap analysis.
- Turning findings into action through workshops, recommendations and practical next steps.
Ready to understand your biodiversity risks and prepare for nature-related reporting? Speak to Inspired’s ESG experts today by emailing [email protected]
