The impact from the production of three everyday goods – trainers, sofas and smartphones – on biodiversity has been explored in a new study by Dutch financial institution ABN AMRO.
According to ABN AMRO, a wildlife habitat equivalent to the size of two thirds of the Netherlands is destroyed each year by production of these items.
The production of one pair of trainers results in an average loss of biodiversity of 2.7 square metres, the study found.
In terms of one two-seater sofa, meanwhile, the impact on biodiversity is equivalent to 173 square metres, while for a single smartphone, the impact is 16.6 square metres.
‘Preserving biodiversity is essential to the economy and to human wellbeing,’ ABN AMRO commented. ‘The adoption of renewable energy, the use of recycled materials and longer product life, together with reduced consumption, have the greatest combined impact.’
Production impact
It estimates that the production of trainers destroys approximately 324,000 hectares of wildlife habitat annually, sofas account for a loss of around 298,000 hectares, and smartphones result in an even greater impact, with a loss of 1,942,000 hectares.
To mitigate this, the report suggests that the prices of these products would need to increase by €1.50 for trainers, €109 for sofas, and €7.10 for smartphones – the additional revenue from which would be allocated towards biodiversity restoration efforts.
Elsewhere, measures such as the adoption of renewable energy, the use of recycled and sustainable materials, and promoting longer product life – coupled with reduced consumption– are identified as having the most significant positive impact on biodiversity.
Corporate Sustainability Reporting Directive
The EU’s Corporate Sustainability Reporting Directive (CSRD), which commences in 2025 requires all large companies with a significant or material influence and a business model that is directly affected to report on biodiversity.
‘By quantifying these individual factors – climate change, air and water pollution, and water and land use – we will gain a better understanding of the extent to which retail products contribute to biodiversity loss and how to mitigate the damage,’ ABN AMRO said.
Analyse supply chains
Henk Hofstede, retail sector banker at ABN AMRO, called on retailers to better analyse their supply chains to assess how their products impact biodiversity.
“Retailers can analyse their value chain to determine how their products impact biodiversity,” he said. “The next step is to formulate specific policies to make a positive impact and minimise risks to biodiversity, followed by a transition plan with science-based targets.
“A dashboard with solid data helps to track and report on progress. After all, more and more stakeholders now expect companies to reduce their impact on biodiversity in order to maintain their licence to operate.” Read more here.
