The eco.business Fund, in collaboration with PRé Sustainability, has adopted a groundbreaking biodiversity metric to better assess and manage the environmental impacts of its agricultural investments. This science-based metric is grounded in the Biodiversity Footprint Financial Institutions (BFFI) method, which utilises a lifecycle assessment (LCA) to calculate the Potentially Disappeared Fraction (PDF) of species – a measure of biodiversity loss linked to human activity. The method enables the fund to quantify and compare biodiversity impacts across regions and crops, helping guide sustainable investment decisions.

To capture the effects of sustainability-oriented interventions, the BFFI methodology was adapted to integrate improvements from eco.business-funded projects. For instance, sustainable practices like dry sugarcane cleaning systems reduce freshwater use, thereby protecting ecosystems. The metric conservatively measures biodiversity loss but offers valuable insights into the relative benefits of sustainable practices compared to conventional agriculture. A five-step process – from tracking investment activities to comparing outcomes with baseline scenarios –allows for detailed assessment and transparent reporting of biodiversity impacts.

The metric currently serves as an internal monitoring tool for the eco.business Fund, aiding strategic decision-making while laying the groundwork for broader industry adoption. By using this approach, the fund demonstrates measurable reductions in environmental pressures, such as global warming and land transformation, largely through interventions like land conservation and sustainable crop management. As data becomes more specific and methodologies evolve, the fund plans to refine the indicator further and promote its use across the financial sector to drive nature-aligned investment.

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