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As global attention on nature-related risks and opportunities grows, so does the need for businesses to adopt robust and standardised ways to measure their interactions with the natural world. The Nature Positive Initiative recently proposed four universal indicators to track the health of ecosystems, species, and landscapes. These indicators provide a much-needed framework to help businesses assess their nature-related impacts and risks effectively.
At Natcap, we already align our metrics with these indicators, leveraging best-practice datasets (including IUCN, Google Dynamic World, and the Integrated Biodiversity Assessment Tool). However, we also recognise there’s work to be done to close gaps in data availability, particularly around tracking changes in ecosystem conditions over time.
In this blog, Dr Ben Howes breaks down each indicator and explores how businesses can use them to strengthen their strategies and future-proof their operations.
The four universal indicators proposed by the Nature Positive Initiative provide a comprehensive framework for understanding and addressing nature-related risks.
Let’s take a closer look at each one and how they can inform corporate strategies.
Understanding the extent of ecosystems at a site is foundational for assessing nature-related risks. By identifying what ecosystems are present and how their area is changing, companies can highlight rare or critical types that are particularly important for biodiversity.
This information is essential for anticipating regulatory changes, as rare or critical ecosystems are often prioritised by policymakers. It also helps businesses mitigate transition risks while maintaining compliance and enhancing their reputation.
Example: Using the Global Ecosystem Typology dataset, Natcap identifies ecosystems at your site. This enables companies to pinpoint risks associated with ecosystem loss and take proactive measures to address them.
While ecosystem extent provides a snapshot of “how much,” ecosystem condition answers the equally important question of “how good.” Healthy ecosystems support more biodiversity and provide better ecosystem services, from flood mitigation to carbon sequestration.
Natcap uses metrics like Ecosystem Integrity and Rapid Decline in Ecosystem Health to evaluate whether a site is in an area of high-quality ecosystems and how that condition changes over time. These insights help businesses assess risks, identify opportunities for restoration, and align with regulations that incentivise ecosystem health.
Context matters when it comes to nature-related risks. Landscape intactness examines how natural the broader region around a site is, whether that’s a 50km radius or an entire ecoregion like the Amazon or the Atlantic Forest.
By analysing natural vegetation compared to the surrounding landscape, businesses gain critical context for their site’s operations. Highly intact regions may signal stricter regulations or higher reputational risks, while degraded areas may present restoration opportunities.
Species extinction risk directly connects a company’s activities to biodiversity outcomes. Using IUCN species range maps, Natcap evaluates which threatened species are near a site, their extinction risk, and how activities may impact them.
This indicator provides crucial insights for biodiversity protection and compliance. As global regulations increasingly focus on protecting threatened species, understanding your site’s impact on them can safeguard your business against reputational damage and operational delays.
Why It Matters: Protecting species isn’t just about compliance—it’s about leadership. Companies that actively mitigate their impacts on biodiversity can position themselves as sustainability leaders.
These indicators are emerging as the gold standard for tracking nature’s health and are likely to shape the future of corporate reporting under frameworks like TNFD. Businesses that align their strategies with these metrics gain a clearer view of their risks, dependencies, and opportunities.
By taking action now, companies can position themselves ahead of the curve, ensuring compliance, mitigating risks, and unlocking new opportunities for growth.
At Natcap, we specialise in helping businesses integrate these universal indicators into their strategies by offering tailored tools, expert guidance, and access to the best available datasets.
Get in touch to explore how we can support your journey to becoming a nature-positive business.
Identify where you should prioritise your efforts, understand your nature impacts and dependencies, disclose to stakeholders and take action.
See how it works...
