Navigating the Biodiversity Challenge in the Energy Sector: The case of CGN Europe in Scaling Up Ecosystems Management’s Efforts
Europe is ramping up efforts to combat biodiversity loss through initiatives like the European Green Deal, placing increased reporting requirements on businesses to address adverse impacts on biodiversity.
CGN Europe, a major renewable energy player, faced the challenge of aligning with EU biodiversity expectations like many other peers in the sector.
CSR Europe is actively supporting companies in integrating biodiversity into their business strategies and processes. Members benefit from a 30% discount on the whole service offer and in 2024 they will be able to join the new Alliance for Sustainable Management on biodiversity, fostering collaboration to make measurable progress in safeguarding biodiversity.
Europe is undergoing a swift transformation in its approach to biodiversity loss and degradation, with policymakers stepping up efforts to protect and restore ecosystems. Within the framework of the ambitious European Green Deal, the European Commission has developed a wide array of measures to tackle the ongoing biodiversity crisis head-on. This comprehensive approach encompasses key initiatives like the EU Biodiversity Strategy for 2030, the Farm to Fork Strategy, the EU Deforestation Regulation, the Circular Economy Action Plan, and most recently, the European Sustainability Reporting Standards (ESRS).
As result, in recent years the biodiversity requirements falling on businesses have steadily increased. The ESRS E4, for instance, requires companies to report on the actions they have taken and their outcomes to prevent, mitigate, or restore existing or potential adverse impacts on biodiversity and ecosystems. The Corporate Sustainability Due Diligence Directive (CS3D) has introduced due diligence requirements to assess and mitigate environmental adverse impacts, including those related to biodiversity. The EU Deforestation Regulation is also asking companies to have a better understanding of their supply chain, ensuring that commodities and other goods are not produced on land that was deforested or degraded.
As the attention of policymakers and stakeholders for the topic heightened, companies recognized the need to seamlessly integrate biodiversity considerations into their core management approaches and practices. This trend is particularly pronounced in sectors like energy, where the impact on biodiversity varies significantly based on factors such as infrastructure types, energy sources, project design, chosen technologies, project footprint, operational modes, and the unique natural habitats and species associated with the project’s receiving environment.
THE CASE OF CGN EUROPE
Where to start to align your company’s biodiversity management goals with the increasing expectations of EU policymakers and stakeholders within your ecosystem? This was the challenge faced by CGN Europe – a leading business in the development, investment, construction, operation and maintenance of wind power, solar energy and other renewable energy projects, with assets spread across France, the United Kingdom, Ireland, Belgium, the Netherlands, Sweden and Senegal.
Over 6 months, CSR Europe tailored its Guidance to Biodiversity Management to assess CGN Europe’s current status on corporate biodiversity and ecosystems management and the ideal scenario to aim at.
As a first step, CSR Europe looked at the current EU policy framework on biodiversity, as well as the practices of peers in the energy sector, before focusing on CGN Europe’s performance. The analysis highlighted that CGN Europe is equipped with a robust and mature approach to biodiversity, as well as actions, to ensure the protection of biodiversity and ecosystems. For instance, this is clear when it comes to the assessment of impacts and consequently how to avoid and mitigate risks backed by the scientific basis behind such actions.
Moreover, their materiality analysis represents a good basis for setting a structured and robust biodiversity strategy as it identifies the company’s dependencies on natural capital, such as utilization of land resources, access to mineral resources, and climate regulation, among others.
REPORTING ON CORPORATE BIODIVERSITY EFFORTS
Reporting and disclosing information about corporate actions and targets on biodiversity and ecosystem management remains a challenge despite the availability of new frameworks and tools. While the adoption of the European Sustainability Reporting Standards and the recent recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD) represent positive steps forward, the corporate sustainability reporting landscape is still lacking standardized indicators. A challenge compounded by the inherently local nature of biodiversity, with each site encompassing a distinct natural environment and with criticalities intricately linked to specific industrial operations.
The imperative to “disclose” places companies in a challenging position as they grapple with the task of reporting on many different local situations while simultaneously striving to present a comprehensive overview. The result? Many companies end up focusing on reporting actions rather than results, particularly regarding impacts or the reduction thereof.
To prevent this outcome, CSR Europe advised CGN & CGN Europe to integrate nature-related dependencies, impacts, risks, and opportunities throughout the value chain into the broader company strategy and actions. Secondly, and akin to many stakeholders operating in the energy sector, CGN & CGN Europe, would benefit from enhanced disclosure of information related to the governance surrounding biodiversity and ecosystem management. This includes detailing the functions involved, and interlinks, both at a corporate and local level.
Finally, stakeholders’ engagement should also be strengthened, incorporating solid and systematic processes when consulting external experts and institutions in the design and validation of corporate strategies and local programmes. The gap analysis conducted by CSR Europe for CGN & CGN Europe has enabled both entities to pinpoint areas that demand immediate attention. Consequently, they are now better positioned to enhance their performance in managing biodiversity and ecosystems.
HOW CSR EUROPE’S SUPPORTING BUSINESS ON BIODIVERSITY
CSR Europe remains committed to assisting companies in more effectively integrating biodiversity into their company policies and practices. Services such as the stakeholder dialogue offer support to businesses in engaging more meaningfully with internal and external stakeholders, facilitating the establishment of a systematic and effective framework for interaction.
Up to 30% discount is applied to CSR Europe members on the whole service offer
At the same time, in 2024, CSR Europe will open the Alliance for Sustainable Management on Biodiversity to its members. The group of leading companies and CSR networks will work together to make measurable progress on and safeguard biodiversity while providing an additional pathway for a Just Transition.
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