Private Sector

How KBAs are being used by the Private Sector

Businesses in sectors like infrastructure development, mining, agriculture, forestry, or transport use KBAs to identify and manage biodiversity risk associated with their operations. Many companies rely on KBAs to avoid or minimise negative impact on these important areas.

Managing biodiversity risks through Global Standards

A growing number of multilateral financing institutions have adopted environmental safeguards to address biodiversity risks linked to their investments. Leading frameworks include:

The International Finance Corporation's Performance Standards on Environmental and Social Sustainability (2012), adopted by the 130 Equator Principles Financial Institutions. Performance Standard 6 (PS6) on the environment specifically mentions KBAs.
The World Bank Environmental and Social Framework (2016)
Many regional development banks like the Asia Development Bank.

These standards introduce the concept of critical habitats (often identified as KBAs), which businesses need to avoid impacting negatively.

Transparency and reporting on Biodiversity Impacts

To comply with the Kunming-Montreal Global Biodiversity Framework (Target 15), companies are increasingly required to disclose their biodiversity impacts using frameworks that incorporate KBAs, including:

Taskforce on Nature-related Financial Disclosures (TNFD)
Science Based Targets Network (SBTN)
Global Reporting Initiative (GRI)

In the EU, reporting on biodiversity impact, including KBAs, is legally mandated under the Sustainable Finance Taxonomy and in the Corporate Sustainability Reporting Directive (CSRD).

IBAT

Companies access KBA data through the Integrated Biodiversity Assessment Tool (IBAT). This powerful tool combines information from three key global biodiversity datasets: the World Database of KBAs, the Protected Planet database, and the IUCN Red List of Threatened Species. IBAT delivers tailored reports—such as PS6, ESS6, and TNFD formats—that help businesses and financial institutions understand and manage biodiversity risks effectively.

Visit the IBAT website

Resources for businesses

The Guidelines on Business and KBAs offer a clear roadmap for minimising risks and reducing impacts on biodiversity. By following these guidelines, businesses can contribute positively to conservation while safeguarding their operations and reputations.

Read the Guideline

The publication “Why are Key Biodiversity Areas important to business” is a practical resource that shows how KBAs help companies identify biodiversity risks, meet financial and regulatory requirements, and guide nature-positive actions.

Read Document