How to Choose Good Biodiversity Metrics

Businesses depend on biodiversity metrics to meet regulatory and voluntary disclosure requirements, address stakeholder expectations, and set meaningful nature targets. As frameworks like the Taskforce on Nature-related Financial Disclosures (TNFD) and the Corporate Sustainability Reporting Directive (CSRD) gain traction, companies face increasing pressure to understand and report their impacts on nature.

Unlike climate metrics, biodiversity cannot be measured using a single universal unit, such as tonnes of CO₂. It is multi-dimensional, location-specific, and far less standardised.

So how do you identify metrics that are fit for purpose and credible when measuring biodiversity?

This article explains what biodiversity metrics are, why they matter, and how to choose the right ones for your business, with practical guidance and real-world examples.

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What Are Biodiversity Metrics

Biodiversity metrics are tools used for measuring biodiversity, they quantify the variety and abundance of life within a specific area, providing insights into ecosystem health and sustainability.

Key components include:

• Species richness: Number of different species in an area
• Species evenness: Relative abundance of species
• Genetic diversity: Variety of genes within a species
• Ecosystem diversity: Range of different ecosystems in a region
  

   

By measuring biodiversity through these components, businesses can track changes over time and make informed decisions for conservation and corporate sustainability.

Why Biodiversity Metrics Matter

Biodiversity metrics go beyond ecological indicators, they form the foundation for risk management, regulatory compliance, and strategic decision-making.

They play a critical role in:

• Regulatory Compliance: Ensures alignment with TNFD, CSRD, and emerging nature-related disclosure standards.
• Capital Allocation & Investment Decisions: Guides resource allocation for maximum sustainability impact and long-term value.
• Risk Assessment & Management: Identifies and mitigates biodiversity-related risks such as supply chain disruptions, reputational damage, and regulatory penalties.
• Nature-Based Opportunities: Uncovers opportunities for nature-positive products, services, and market innovations.
• Supply Chain Resilience: Assesses ecosystem dependencies to reduce vulnerability to biodiversity-related shocks.
• Reporting & Disclosure: Enables transparent sustainability reporting for investors, lenders, and stakeholders.
• Target Setting & Performance Tracking: Provides measurable indicators for corporate biodiversity goals aligned with global frameworks 

Why Biodiversity Metrics Differ from Carbon Metrics

Carbon is globally fungible: a tonne of CO₂ avoided in one place equals the same benefit anywhere. That’s why climate reporting uses universal units like carbon credits.

Biodiversity is place-based. Species and ecosystems vary by location, and so do the pressures acting on them. You can’t offset a degraded forest in Indonesia with a healthy one in Italy.

Bottom line: There is no single number for measuring biodiversity. Metrics must be multi-dimensional, context-specific, and sensitive to change.

Use Multiple Metrics, Not Just One

Over the years, many methods for measuring biodiversity have been developed, from species counts to habitat condition, ecosystem integrity, and land-use change.

The most credible approaches, such as those recommended by TNFD, use multiple metrics to capture the complexity of nature. TNFD guidance requires companies to go beyond assessing the state of nature to understanding how their activities interact with biodiversity.

At Natcap, we typically apply between 5 and 25 metrics per project, tailored to the organisation, its geography, and regulatory requirements.

7 Qualities of Effective Biodiversity Metrics

Not all metrics are created equal. When choosing yours, look for those that meet as many of the following criteria as possible:

Example Metric: Percentage of Land Cover

This metric demonstrates how the seven qualities can come together when measuring biodiversity in practice:

1. Repeatable – Based on satellite imagery that revisits the same location regularly
2. Measurable – Calculates the share of a site covered by natural ecosystems (vs. developed or agricultural land)
3. Data-Driven – Built from validated, high-resolution models
4. Interpretable – Expressed as a simple percentage
5. Predictable – If you restore habitat, the metric goes up
6. Robust – Based on real-world land cover, not self-reported data
7. Sensitive to Change – Picks up even small-scale land use changes

While extremely useful, this metric alone cannot assess ecosystem quality or species diversity, reinforcing the need for complementary metrics on habitat condition and species presence.

Start Now, Not Later

Nature reporting will only grow in importance and complexity. The businesses that start measuring biodiversity now will be best prepared to meet regulatory requirements, manage risks, and seize nature-positive opportunities.

At Natcap, we help businesses and financial institutions cut through the noise with robust corporate biodiversity assessments. Our team of scientists, academics, and advisors works with you to choose, apply, and interpret the metrics that matter, ensuring your assessments are science-based, credible, and aligned with global standards.

Whether your goal is to report confidently, meet TNFD and CSRD requirements, reduce risks, or unlock opportunities, we provide the expertise and tools to make it happen.