Analyzing ecosystem dependencies with ENCORE
We worked with the UNEP ENCORE team to make an assessment of the impacts as well as the dependencies of the 20 companies listed in the Amsterdam Stock Exchange. This report provides an interesting insight in the relationship between the ENCORE dependencies and the BFFI impacts.
Financial institutions are increasingly recognizing the importance of minimizing their impact on biodiversity, not only to reduce the risk associated with high impact operations but also to preserve our planet's precious ecosystems. But until now, biodiversity footprinting was limited to measuring impact on biodiversity, while assessments of dependencies excluded this impact, leaving a critical gap in our understanding.
To bridge this gap, the Ministry of Agriculture, Nature and Food Quality initiated this project for us to work together with UNEP WCMC. In this project, we combined the Biodiversity Footprint for Financial Institutions (BFFI) approach (on biodiversity impact) with the powerful tool and database of ENCORE (Exploring Natural Capital Opportunities, Risks and Exposure). As a results, we can now measure the impact of financial institutions on biodiversity while also assessing their dependencies on ecosystem services.
To put this new method to the test, we applied it to 25 companies in the AEX index, resulting in an overview of the number and types of ecosystem services on which financial institutions depend. We also calculated the materiality and weighted materiality of these services based on their contribution to a company's sales, providing valuable insights into the potential impact of financial operations on biodiversity.
Now, following the successful test with the AEX index, the combined BFFI method and ENCORE tool & database can be used to conduct a comprehensive dependency and impact assessment for the entire investment portfolio of a financial institution. These insights can then be used to focus engagement with companies in biodiversity hotspots and to develop or adjust a biodiversity policy that minimizes the impact on precious ecosystems. Furthermore, the results can help to inform investment decisions for divesting or investing with a positive impact on biodiversity.
In short, the BFFI method and ENCORE tool & database provide financial institutions with the tools they need to understand and minimize their impact on biodiversity, while also preserving the critical ecosystem services on which we all depend.
Read more about this approach in the report.
To bridge this gap, the Ministry of Agriculture, Nature and Food Quality initiated this project for us to work together with UNEP WCMC. In this project, we combined the Biodiversity Footprint for Financial Institutions (BFFI) approach (on biodiversity impact) with the powerful tool and database of ENCORE (Exploring Natural Capital Opportunities, Risks and Exposure). As a results, we can now measure the impact of financial institutions on biodiversity while also assessing their dependencies on ecosystem services.
To put this new method to the test, we applied it to 25 companies in the AEX index, resulting in an overview of the number and types of ecosystem services on which financial institutions depend. We also calculated the materiality and weighted materiality of these services based on their contribution to a company's sales, providing valuable insights into the potential impact of financial operations on biodiversity.
Now, following the successful test with the AEX index, the combined BFFI method and ENCORE tool & database can be used to conduct a comprehensive dependency and impact assessment for the entire investment portfolio of a financial institution. These insights can then be used to focus engagement with companies in biodiversity hotspots and to develop or adjust a biodiversity policy that minimizes the impact on precious ecosystems. Furthermore, the results can help to inform investment decisions for divesting or investing with a positive impact on biodiversity.
In short, the BFFI method and ENCORE tool & database provide financial institutions with the tools they need to understand and minimize their impact on biodiversity, while also preserving the critical ecosystem services on which we all depend.
Read more about this approach in the report.
The ENCORE methodology allows for estimating the major dependencies from ecosystem servic for each company. but these are not equally high 
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