An academic study which could play a crucial role in supporting companies to foster more sustainable practices has been published this week.

Carried out by the University of Glasgow based Adam Smith Observatory of Corporate Reporting Practices in partnership with ACCA (Association of Chartered Certified Accountants), the research explored the level of companies’ disclosures regarding their:

• Policies to halt and reverse biodiversity loss.

• What they identify as the main drivers.

• The goals they set to address the issue.

• The indicators they use to measure their progress in protecting biodiversity.

  
  

The report, ‘Evidence on Companies’ Biodiversity Disclosures’, reveals the importance of how business activities affect biodiversity and what they are doing to reduce those impacts. Findings show companies generally provide a moderate level of biodiversity-related disclosures and they report on a variety of drivers of biodiversity loss, with water pollutants, terrestrial ecosystem use, and water use among the most common identifiers.

Most companies cited goals of halting and reversing biodiversity loss, with waste-related goals being the most frequently cited followed by resource-related and restoration-related goals. However, location-based and direct-driver-related disclosures are less common, likely due to challenges in data and metrics required.

The study showcases some excellent corporate practices in biodiversity reporting and areas that need improvement.

The University of Glasgow’s Dr Evangelos Seretis, who is report co-author, said:

“Businesses, governments and international organisations increasingly recognise the link between corporate operations and the natural environment, and this report highlights the growing importance of best reporting practices on biodiversity."

"By addressing these issues, companies can play a crucial role in halting and reversing biodiversity loss and fostering sustainable practices.”

Jessica Bingham, Regional Policy lead for ACCA said:

“Nature-related reporting is increasingly recognised as an essential component of organisational reporting. The role of accountants in this domain is pivotal in driving sustainable business practices and ensuring long-term financial health and environmental stewardship.”

ACCA Scotland Engagement Lead Susan Love said:

“Alongside its net zero ambitions, Scotland has recognised the biodiversity crisis, with a vision to becoming ‘nature positive’ by 2030."

"Finance professionals will have a crucial role to play in developing and measuring progress in organisations and businesses across Scotland. We’re delighted to be working with leading academics at the University of Glasgow to identify how we upskill and support those professionals to deliver change in Scotland and around the world.”

From 2026 companies will be required to make significant effort and invest in biodiversity monitoring and reporting systems to collect and report this information.

The key findings from this exploratory study will be of interest to regulators, standard and framework setters along with preparers and users of corporate reports. Since companies’ biodiversity disclosures vary in quality, it is important to test the cost of setting up systems to track and report on biodiversity impacts. Organisations like Global Reporting Initiative (GRI) and Taskforce on Nature-related Financial Disclosures (TNFD) could consider field-testing to evaluate these costs and challenges. Sharing clear examples of good reporting practices could help setting a standard for future biodiversity disclosures.