Pioneering Biodiversity Metric to Guide Sustainable Investments
Pioneering biodiversity metric to guide sustainable investments
To drive smarter, more sustainable investment decisions, EBF partnered with PRé Sustainability to develop & adopt a science-based metric that quantifies biodiversity impacts.
Impact summary
In partnership with PRé Sustainability, we created a science-based metric that measures EBF’s impact on biodiversity over time. We can now compare our biodiversity impact across different crops, regions and investment criteria, to make smarter decisions for nature and investors alike.
The approach was originally developed by PRé, CREM, and ASN Bank and is based on the Biodiversity Footprint Financial Institutions (BFFI) method. Using a life cycle assessment (LCA) approach, it looks at the environmental impacts of the financed farming products, from the sourcing of their raw materials to the farm gate.
It measures the Potentially Disappeared Fraction (PDF) – the fraction of species that could potentially be lost in a specific area due to human activities – expressed as PDF·m²·yr. For example, 100 PDF·m²·yr means all species can potentially disappear from 100 square meters for one year.
Our new biodiversity measurement process
BFFI measures biodiversity loss but does not capture the benefits of sustainable practices supported by EBF. The method was adapted to identify measurable improvements. It adjusts LCA data to account for sustainable practices supported by the fund and compares them to the environmental footprint of conventional farming. This enables EBF to estimate biodiversity gains from its investments.
By using the new approach, we can quantify and express these complex ecological impacts as a simple metric.
Example: The dry sugarcane cleaning system, financed by EBF, cuts water uses by eliminating the need for washing. By adjusting freshwater consumption in the model, BFFI captures this benefit. It shows reduced water use supports both freshwater and terrestrial ecosystems by preserving natural water levels, ultimately benefiting biodiversity.
The BFFI method - a roadmap to analyzing environmental impact
EBF's biodiversity impact
Through targeted sustainability interventions, EBF has avoided approximately 9% of potential biodiversity loss, demonstrating a measurable reduction compared to the baseline without such sustainable interventions. The largest share of this avoided impact—around 45%—is attributed to interventions reducing global warming effects on terrestrial ecosystems, followed by those addressing land transformation (37%).
These results are driven by interventions focused on land conservation and prevention of deforestation in sugarcane farming. By keeping carbon stored in vegetation and soil, these actions reduce emissions typically released through biomass burning and soil disruption. Conserved areas also protect ecosystems with high species richness, helping to prevent biodiversity loss and contribute to climate stability.
This underscores the Fund’s growing role in steering farming activities toward more sustainable and biodiversity-friendly outcomes. The avoided impact may be conservative, as only measurable interventions are included. Benefits that are excluded include multi-cropping, shared land use, and indirect effects such as changes in yield, water, or fuel use from conservation efforts.
EBF has avoided approximately 9% of potential biodiversity loss, demonstrating a measurable reduction compared to the baseline without such sustainable interventions. The largest share of this avoided impact—around 45%—is attributed to interventions reducing global warming effects on terrestrial ecosystems, followed by those addressing land transformation (37%).
EBF's Impact & Sustainability Team
Role of the new metric in EBF’s strategy
This new methodology gives us a clearer understanding of how EBF’s financing influences nature. Looking ahead, the Fund will continue using the BFFI methodology as a core tool for reporting biodiversity impacts and guiding investment decisions.
The indicator will continue to be refined as more granular and site-specific data become available, improving its accuracy and expanding the range of sustainability benefits it measures. This will increase EBF’s contribution to nature-aligned finance over time.
We will continue to work with other interested parties to promote further innovation in this field.
SDGs supported
