Compensation fundamentals

Ecological compensation models are increasingly recognized as a valuable tool for companies to demonstrate their commitment to biodiversity conservation and enhance their sustainability reporting (1). Biodiversity loss is a significant environmental challenge, and companies are under increasing pressure to take action to address this issue.

At biodiversify.fi, an area-based ecological compensation model has been developed to provide scientifically-sound and cost-effective compensation for biodiversity impacts. Based on the latest scientific research, the model is designed to deliver measurable and verifiable biodiversity benefits (2).

Recent studies have shown that the restoration of meadows and fallows can have a significant positive impact on pollinator populations (3, 4). By renting inactive agricultural areas and restoring them into meadows or fallows that support pollinators, companies can make a tangible contribution to biodiversity conservation. The area-based compensation approach provides a clear and measurable net benefit to biodiversity and is a cost-effective way for companies to offset their impacts.

The compensation model is designed in collaboration with farmers to ensure that the compensation areas are carefully selected and managed to maximize their biodiversity value (5). This approach provides a valuable source of income for farmers who may have inactive agricultural land that they are not using for agricultural purposes.

Implementing this compensation model in sustainability reports can help companies demonstrate their commitment to sustainability and enhance their credibility and reputation among stakeholders (1). Companies operating under sustainability reporting legislation can benefit greatly from the implementation of this model.

In summary, this scientifically-sound and cost-effective area-based ecological compensation model provides a clear and measurable net benefit to biodiversity. The model is designed in collaboration with farmers to maximize biodiversity value and provide a valuable source of income. Companies operating under sustainability reporting legislation can benefit greatly from the implementation of this model, and it can help demonstrate their commitment to biodiversity conservation.

References:

1. European Commission. (2021). Corporate Sustainability Reporting Directive. Retrieved from https://ec.europa.eu/info/publications/sustainable-finance-corporate-sustainability-reporting-directive_en.
2. biodiversity.fi. (n.d.). Ecological Compensation. Retrieved from https://www.biodiversity.fi/compensation.
3. Carvell, C., Roy, D. B., Smart, S. M., Pywell, R. F., Preston, C. D., & Goulson, D. (2006). Declines in forage availability for bumblebees at a national scale. Biological Conservation, 132(4), 481-489.
4. MacGregor, C. J., Williams, I. H., & Bell, J. R. (2019). Bumblebee nest density and the availability of early season forage in agricultural landscapes. Agriculture, Ecosystems & Environment, 270, 58-65.
5. The National Biodiversity Data Centre. (2021). Ecological Compensation Area. Retrieved from https://species.biodiversityireland.ie/conservation-tools/ecological-compensation-area/.