Spatial Sustainable Finance
Why this project matters
Biodiversity and water systems are under pressure worldwide: habitats are being lost, species are endangered, local and global water cycles components are changing. One contributing factor to the increasing environmental degradation is corporate activity. Whether through the clearing of forests or the pollution of rivers, companies that do not operate sustainably can leave lasting impacts on the environment.
How can a shift toward more sustainable economic practices be achieved? One answer lies in the financial markets. More sustainable business models become more attractive to companies when they offer a financial advantage, for example by investors redirecting capital toward sustainably operating companies.
These choices, however, require transparency – reliable data that shows how companies truly impact water systems and biodiversity. While disclosure frameworks for climate-related risks, such as greenhouse gas emissions, have been established, the reporting on biodiversity and water faces significant challenges.
The goals
Within the project we are developing a science-based and transparent framework for assessing companies according to their environmental impacts and exposure to ecological risks. Geoprocessing workflows will be established to model companies’ spatial footprints and link Earth observation data to corporate asset locations. These data are assessed for their ability to generate meaningful indicators for environmental risk assessment.
The accuracy and applicability of these approaches will be evaluated through case studies. In the long term, we aim to translate these research outcomes into practical tools that can support investors and companies in responding to evolving sustainability-related regulatory requirements set by UN and EU bodies.
Our contribution
As a first step, Alexander Damm and Leon Hauser, together with Maria Santos (UZH), have developed a conceptual framework for the integration of Earth observation (EO) data to assess corporate impact on biodiversity and water. In a second step, this framework will be implemented for different case studies and EO-based results integrated in the overall workflow developed by the consortium.
Project overview
Funding
SNSF and Innosuisse, BRIDGE-Discovery project BRIDGE Discovery
Project website
www.spatial-sustainable-finance.ch
Contact