Whitepaper: Making biodiversity measurable with the Insector

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Executive Summary

The Insector is a monitoring system that monitors the state of biodiversity and ecosystems at the company site and processes data relevant to CSRD. The Insector uses AI-based detection and classification of insects as bioindicators to provide detailed data on ecological health and relevant key figures for (CSRD) sustainability reports. The Insector provides companies with regular structured reports that facilitate compliance with legal requirements and provide practical recommendations for sustainable measures. The technology goes beyond mere compliance and offers companies a strategic way to fulfill their environmental responsibility by having a measurable, positive impact on biodiversity while building environmental resilience.

Introduction: Biodiversity in the Corporate Sustainability Reporting Directive (CSRD)

Biodiversity is the foundation of our life. Thanks to it, ecosystem services function, ensuring clean air, fertile soils, and rich harvests. This is why it is even more important to keep track of the state of biodiversity and ecosystems, so we can intervene if nature no longer fulfills these life-sustaining tasks. To prevent this from happening, we must observe and understand the condition of ecosystems. We need to recognize trends and make predictions, so that we can adjust our actions in time, ensuring that the world remains livable for all.

The European Union (EU) enshrined this moral imperative into law in 2022. Since the adoption of Directive (EU) 2022/2464 – better known as the Corporate Sustainability Reporting Directive (CSRD) – companies are required to produce an annual sustainability report. This standardized CSRD report is intended to hold companies accountable and create transparency on issues such as environment, social responsibility, and corporate governance.

When it comes to "biodiversity and ecosystems," companies must take action. However, this should not only be seen as a regulatory burden, but rather as an opportunity to strengthen the connection between humans and nature at the company’s location. This whitepaper shows you how.

Problem: What the hell is going into my biodiversity report?

Biodiversity is in crisis. We are in the midst of an unprecedented mass extinction, caused by humans. Humans are destroying habitats, humans are spreading invasive species, and humans are polluting the environment. The reasons for today’s biodiversity crisis are complex, diverse, and intertwined. However, the consequences of the biodiversity crisis can be clearly identified: loss of nature and ecosystem services such as pollination, nutrient recycling, or the cleaning of air and water.

The outlook for the future is bleak if the biodiversity crisis continues unchecked. The World Economic Forum estimates that about half of the global GDP – that’s 44 trillion dollars! – depends directly on nature. Scientists have long been warning: If there is no transformative change, the biodiversity crisis will drive the global economy to bankruptcy.

In 2022, the warnings from science reached politics, leading to the adoption of Directive (EU) 2022/2464 – also known as the CSRD. The CSRD can be understood as a sustainability reporting requirement for companies, obliging them to disclose their (non-)efforts regarding environmental, social, and governance (ESG) matters. Legislators and the public are to be informed in the CSRD report about how a company’s business activities impact the environment – and, conversely, how the environment impacts business activities in terms of climate change and the biodiversity crisis. Simply put, it is meant to show whether a company is fit for the future.

What, where, and how to report in the CSRD report is regulated in the European Sustainability Reporting Standards (ESRS). Chapter ESRS E4 (Biodiversity and Ecosystems) provides guidelines on how companies should prepare their biodiversity report and which key figures need to be provided. In simple terms, the ESRS E4 requires the following information: (1) Transition Plan; (2) Policies; (3) Actions; (4) Targets; (5) Impact Metrics; and (6) Financial Effects. The form and quality of these Disclosure Requirements are clearly defined in ESRS E4.

Anyone wading through the regulatory haze will discover that ESRS E4 primarily concerns the state of ecosystems, species, and ecosystem services. Companies are therefore required to transparently show how their activities impact individual species and, indeed, ecosystems as a whole. Furthermore, companies need a biodiversity strategy outlining how they will stop their negative impacts on nature by 2030 – and by 2050, have a positive influence on nature (See page 10).

To prepare the ESRS E4 report, companies need site-specific data. These include, on the one hand, information about static factors – is my location in a Key Biodiversity Area? How much land was sealed for my parking lot? – but also dynamic factors: How many endangered species are at my company site? How many invasive species? How many pollinators? Beneficial insects? Pests? Are ecosystem services still being fulfilled? What is the condition of the surrounding ecosystem?

Until now, collecting such data has been time- and cost-intensive. External auditors had to be regularly commissioned to take samples on-site and evaluate them in the laboratory afterward. If the weather conditions were poor on the auditor’s visit day, the assessment of the area was accordingly low.

The Insector: A bottom-up approach to biodiversity monitoring and reporting

The incredible complexities of biodiversity are difficult to quantify. To realistically depict the "health" of an ecosystem, tens of thousands of data points would need to be collected and correlated, which would be associated with enormous costs. Targeted monitoring of so-called bioindicators helps to address this. Many insect species belong to the group of bioindicators, so their presence – or absence – provides important information about the surrounding ecosystem.

Beispielhafte Darstellung der Wildbienen-Diversität im Insector-Report.
Beispielhafte Darstellung der Wildbienen-Diversität im Insector-Report.

Insects form the foundation of ecosystems: They pollinate plants; they serve as a food source for other animals and they recycle nutrients. This makes them excellent indicator animals for drawing conclusions about health or disturbances in ecosystems.

The Insector is a biodiversity monitoring system for company sites that monitors these indicator insects. The Insector interprets trends and population fluctuations of insects and can thus provide information about the state of the ecosystem at the company site. The focus is on tracking CSRD-relevant metrics such as species richness (abundance), species diversity, endangered species, invasive species, beneficial insect and pest monitoring.

The Insector makes the effectiveness of nature conservation measures measurable. For example, it can be used to check whether cost-intensive green roofs or façades actually promote biodiversity. If a nature conservation measure does not achieve the desired effect, it is possible to intervene and optimize the choice of plants or maintenance intervals, for example.

How does the Insector work?

The Insector is an IoT device that we install at your company site. Unlike conventional methods, the Insector is a non-invasive monitoring system. This means that no insects have to die in dead traps. The Insector is a camera-based monitoring system that uses deep learning algorithms to reliably detect and classify insects. The Insector is self-sufficient and is powered by a solar cell, so it reliably generates data from March to October.

Beispielhafte Darstellung der Wildbienen-Diversität im Insector-Report.
Beispielhafte Darstellung der Wildbienen-Diversität im Insector-Report.

Insects are attracted by the material and color of the approach plate, which the camera is directed at. Once an insect lands on the approach plate, it receives a unique tracking ID via YOLO Object Detection. While the insect remains on the approach plate, photos are taken, sent to our servers, and classified via EfficientNet.

Subsequently, the generated insect data is analyzed and placed into the context of the respective location. The Insector report follows the strict structure of ESRS E4 and refers to international frameworks such as the Kunming-Montreal Biodiversity Framework, the EU Biodiversity Strategy 2030, and the EU Pollinator Strategy. The Insector report takes into account site-specific parameters such as proximity to Key Biodiversity Areas and NATURA2000 areas. This embedding of the Insector data within the context of the surrounding ecosystems allows us to make statements about the connectivity of habitats. For example, if endangered species native to the adjacent NATURA2000 area are observed on the company site, it can be defined as a stepping stone habitat, which positively impacts the company's biodiversity balance.

The underlying methodology of the Insector is developed, tested, and improved in international research projects. Through partnerships with the Fraunhofer Institute for Building Physics IBP, the Technical University of Bingen, Kansas State University, and many other stakeholders, Insector is always at the cutting edge of technology. Our open-source and open-data approach allows us to actively advance research with our data and establish the standards of the future in insect monitoring.

How does the Insector help me?

The Insector provides you with key figures, metrics and recommendations that you need for your sustainability report. The Insector is designed to make your life easier by providing you with relevant information for ESRS E4. You will also receive many other materials that you can use for your internal and external communication, such as insector fact sheets or text modules for your press and public relations work.

Beispielhafte Darstellung der Wildbienen-Diversität im Insector-Report.
Beispielhafte Darstellung der Wildbienen-Diversität im Insector-Report.

Depending on the subscription model, you will receive the results and evaluations of the Analyzer in regular reports. These reports are structured according to the ESRS E4 specifications so that you can use relevant passages for your CSRD report. In the first part of the report, we present the collected insect data and draw initial conclusions about the state of biodiversity and the ecosystem at your company site.

In the second part of the report, the collected data is interpreted in a CSRD-relevant way, providing you with valuable recommendations and guidance for the following areas: (1) Material Impacts, Risks, and Opportunities; (2) Recommended Policies, Actions, and Resources; (3) Metrics and Targets; and (4) Financial Effects. In addition to the site-specific analyses, you will also receive concrete recommendations for action and strategic support so that you can set realistic goals in your biodiversity strategy - and ultimately achieve them.

Conclusion and next steps

In order to preserve biodiversity, we first need to get an overview: How many species are there in my location? How many individuals of each species are there? And are there perhaps species that don't even belong there? The Insector is the plug-and-play biodiversity monitoring system that compiles CSRD-relevant reports for you.

With the Insector, you can make evidence-based statements about biodiversity at your company site. This puts both your CSRD reporting and your sustainability communication on a firm footing. Biodiversity is therefore not a regulatory burden for your company, but rather an opportunity to bring people and nature together on your own company site. Help us to make nature conservation more effective and efficient and contact us to embed the Insector in your biodiversity strategy plan!

Sources and literature

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