Nature related corporate targets are gaining momentum (and quick), with >40% of the Fortune 500 setting nature targets aside from carbon in 2024 (Fig.1), up by >10% since 2022. Non-carbon nature targets cover either biodiversity, water, forests, chemicals & plastics, or nutrients. These targets are becoming increasingly prominent due to supply chain risks, the Global Biodiversity Framework (GBF) and the EU Corporate Sustainability Reporting Directive (CSRD).
But here's the reality: many companies are unsure of how to set meaningful targets or are stuck between superficial commitments and genuine action. This article bridges that gap.
Types of Corporate Nature Targets
Corporate nature targets are measurable goals set by businesses to address their impacts and dependencies on nature. They typically fall into three categories:
1. Independently Verified Targets
The gold standard is the Science Based Targets Network (SBTN), which offers the first science-based targets for nature. These are externally verified and aligned with planetary boundaries. In October 2024, Kering, GSK, and Holcim became the first companies to set science-based targets for freshwater or land
2. External Targets
Formal commitments made without aligning to SBTN, such as pledges on biodiversity or water conservation. These may still drive change but lack the rigour of SBTN alignment.
3. Internal Targets
Internally set goals without external accountability. While these are great as a starting point, they carry less weight in driving systemic change.
SBTN is undeniably the most demanding, but it equips businesses with the structure and credibility to address global nature challenges meaningfully.
Why Set Nature Targets?
Setting robust nature targets delivers three core advantages:
1. Market Leadership. Gain first-mover advantage in an evolving landscape where expectations around biodiversity and natural capital are growing rapidly.
2. Operational Readiness. Build systems, capabilities and capacity to adapt to emerging risks and regulations.
3. Inform Disclosure & Better Decision Making. Data and insights from nature-focused targets enhance transparency and compliance with frameworks like the CSRD while driving better decision-making.
CSRD Alignment - In Detail
In 2025 and 2026, many EU-based companies will need to publicly disclose their impacts and dependencies on nature under CSRD. Specifically, the ESRS (European Sustainability Reporting Standards) that comprise CSRD requires evaluating the following environmental topics:
1. ESRS E2 Pollution & E3 Water & Marine Resources
- Water risk due to water availability, quality, and quantity
- Areas of high-water stress
- Usage efficiency
- Pollution impacts
2. ESRS E4: Biodiversity and Ecosystems
- Proximity to and impact on protected areas
- Impact on threatened species
- Dependencies & risks
Furthermore, if a company has set targets on these topics, CSRD requires companies to disclose them.
How Do Science-Based Targets (SBTs) Support CSRD?
- Materiality assessment: SBTN materiality assessment and screening tools align with CSRD’s double materiality principle, addressing both environmental impacts (e.g., biodiversity, water) and business risks (e.g., resource scarcity).
- Impact quantification: The methodologies match CSRD’s measurement standards.
Meeting the bare minimum for CSRD may ensure compliance, but it won't enable you to make informed, strategic decisions or build long-term operational resilience. That’s where strategy development and target setting comes in…
Before Setting a Target, Build a Strategy
Nature targets provide the “what,” but they don’t tell you “how.” To ensure targets are actionable and effective, embed them within a broader strategy whilst keeping the target as your north star.
Think about the impacts you’re having on biodiversity (e.g. converting land) and what your key dependencies are (e.g. water or pollination).
Before setting a target:
1. Identify Key Initiatives. Break down the initiatives needed to reach your targets.
2. Define your Ability to Act. Recognise dependencies beyond your control and prioritise accordingly
- Direct control = operations
- Indirect control = supply chain partners
3. Secure Funding. Estimate costs and confirm budgets before setting targets. Surprising the finance team never ends well.
4. Create Capacity. Define ownership and accountability and assign responsibility to ensure targets aren’t siloed. Take time to secure leadership buy-in and build capacity.
Setting Science-Based Targets for Nature
Setting SBTs is demanding. It takes commitment, robust data, and a willingness to tackle complexity. SBTN outlines a 5 step target setting process to enable companies to understand their impacts and dependencies on nature:
1. Assess: Through a materiality screening assessment, identify hotspots in your value chain to understand where the company’s impact on nature is most significant. → Smart hack: Map critical dependencies first, minor impacts later. Front load analysis where you have control. Use existing supplier audits as proxy indicators.
2. Interpret and prioritise: Identify priority regions and urgent actions. The target setting approach is designed so you can set verified targets for part of your supply chain that you can trace while taking action to improve traceability in areas that you cannot. → Smart hack: Focus where you have leverage and impact. This could mean that you initially focus on your operations before moving onto your supply chain (where the bulk of your impact will be). Target the low hanging fruit in year 1, get senior buy-in, and then build off this momentum.
3. Measure, set and disclose: Establish baselines and targets. Technical guidance is currently available for Freshwater and Land targets, with Ocean targets currently in development → Smart hack: Don’t pursue the perfect data set - you can understand the magnitude of your footprint with imperfect data. Use industry averages where data gaps exist and try to build measurement into existing processes.
4. Act: Use the AR3T framework (see figure 3) to guide act in four distinct stages: avoid, reduce, restore and regenerate and transform. → Smart hack: Build cross functional ownership and give ownership to teams closest to the problem. Procurement teams are likely to be your friends here.
5. Track: Select relevant KPIs to track progress. → Smart hack: Track leading indicators, not just outcomes. Focus on metrics that resonate, tell a story and are useful for decision making e.g., water withdrawal per production unit.
Here’s the challenge: unlike carbon, nature lacks a single, overarching metric, making measurement and analysis inherently complex. Consider using corporate nature management tools like Nala that can capture the local depth and breadth of data e.g., specific activities in specific locations. Sorry to say, an ESG all-in-one tool just won’t cut it.
Setting External Nature Targets
Not ready for SBTs for nature? No problem. Interim targets aligned with CSRD requirements can be an effective starting point. Ideally, targets should be quantifiable. However, qualitative commitments (e.g., “Create an action plan for water-stressed sites by 2025”) can serve as an initial step while building capacity.
Examples of external targets:
- Water Scarcity: “Reduce water use in our operations with a 40% improvement in water use efficiency in water-stressed areas by 2030.” — Diageo
- Water Pollution: “By 2030, establish sustainable water management at all production sites in water-stressed areas and Verbund sites.” — BASF
- Biodiversity: “Develop biodiversity action plans at all ISO 14001:2015-certified, environmentally significant sites, and report on implementation.”— TotalEnergies
The real challenge isn’t deciding to set nature targets but ensuring they’re part of a strategy that fosters meaningful progress and resilience. If done right, strategy setting can be one of the most powerful tools in your sustainability toolbox.
Have any questions about target setting? Get in touch.
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