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Analysis and Recommendations of Global Biodiversity (ESG) Metrics

Vienna, Austria & Ann Arbor, Michigan, USA
Project Description

The integration of biodiversity into financial decision-making has rapidly evolved, yet remains constrained by fragmented metrics, inconsistent definitions, and limited translation of ecological data into financial terms. While early efforts (2016–2020) focused on awareness and conceptual tools linking ecosystem services to economic activity, recent frameworks have shifted toward embedding biodiversity within core financial risk and disclosure systems. Standards such as IFRS S1, ESRS, and the Taskforce on Nature-related Financial Disclosures (TNFD) now define biodiversity as financially material, when it affects cash flows, asset values, or cost of capital, while also emphasizing the dual lenses of dependencies and impacts. This project examines how these developments combine with broader challenges in ESG metric design and application. Through a comprehensive literature review, supported by targeted surveys and interviews, we identified key gaps across ecological, academic, and financial perspectives. Biodiversity remains inherently multidimensional and difficult to standardize and measure, resulting in a fragmented landscape of tools and indicators. Financial frameworks increasingly capture nature-related risks, including physical risks from ecosystem degradation and transition risks from regulatory and market shifts, yet struggle to consistently translate ecological complexity into decision-useful metrics. Additionally, limitations in data quality, lack of assurance, and misaligned temporal horizons further hinder effective integration. In response, this project develops a Biodiversity ESG Framework and Metric Knowledge Tool that aggregates and standardizes biodiversity-related metrics across major frameworks, including TNFD, GRI, ESRS, Bloomberg, and Refinitiv. Using a structured data architecture and crosswalk methodology, the platform links disclosure requirements to actionable metrics, improving comparability, transparency, and usability. Overall, this research demonstrates that advancing the standardization and integration of biodiversity metrics is essential for bridging the gap between ecological and conservation science and financial practice. By enhancing accessibility and alignment across sectors, this work supports the broader transition toward nature-informed financial systems and more effective, scalable biodiversity governance.

Year
2025-2026
Project Status
Past Project
Client Organization
Responsible Alpha
Students Involved

Xinrui He (ESM)  
Jade Jin (SS)  
Paul Jonas (ESM)  
Jerome Williams (SD,SS)  

SEAS Faculty Advisor
Peter A. Adriaens
Final Report
Final Report

I'M READY TO APPLYI WANT TO LEARN MORE

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Ann Arbor, MI 48109
(734) 764-6453
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