ABN AMRO Report Highlights Biodiversity Crisis Linked to Production of Trainers, Sofas, and Smartphones

ABN AMRO Report Highlights Biodiversity Crisis Linked to Production of Trainers, Sofas, and Smartphones

(IN BRIEF) A recent report by ABN AMRO reveals the significant impact of consumer goods production—specifically trainers, sofas, and smartphones—on global biodiversity, resulting in the destruction of wildlife habitats equivalent to nearly two-thirds the size of the Netherlands annually. The production of these items causes average biodiversity losses of 2.7 m² for trainers, 173 m² for sofas, and 16.6 m² for smartphones. To mitigate this damage, the report suggests increasing product prices to fund biodiversity restoration initiatives and emphasizes the importance of adopting sustainable practices like using renewable energy and recycled materials. Starting in 2025, large companies will be required to report on their biodiversity impacts under the EU’s Corporate Sustainability Reporting Directive. The report calls for retailers to analyze their supply chains and implement specific policies to reduce their environmental footprint.

(PRESS RELEASE) AMSTERDAM, 8-Oct-2024 — /EuropaWire/ — A recent investigation by ABN AMRO has unveiled the alarming impact of consumer goods production—specifically trainers, sofas, and smartphones—on global biodiversity. The findings indicate that the annual loss of wildlife habitat due to these products is staggering, covering an area nearly two-thirds the size of the Netherlands.

The research highlights that the production of just one pair of trainers results in an average biodiversity loss of 2.7 m², while a two-seater sofa accounts for 173 m², and a smartphone contributes 16.6 m². These statistics underline the urgent need for sustainable practices, as preserving biodiversity is critical not only for ecological health but also for human well-being and economic stability.

The True Cost of Production

The report reveals that the global manufacturing of trainers leads to the destruction of approximately 324,000 hectares of wildlife habitat annually, equivalent to 3.6 times the size of the Veluwe region. Sofas result in habitat loss of about 298,000 hectares, while smartphones cause the most significant destruction, with an estimated 1,942,000 hectares impacted—an area 21 times the size of Veluwe.

To counteract the biodiversity loss associated with these products, the report estimates that the average cost of a pair of trainers should increase by €1.50, a sofa by €109, and a smartphone by €7.10. These additional funds could then be allocated toward biodiversity restoration efforts. Implementing renewable energy sources, utilizing recycled materials, extending product lifespans, and promoting reduced consumption are identified as key strategies to mitigate the negative effects on biodiversity.

New Reporting Requirements for Retailers

With global biodiversity in decline by nearly 70% over the past five decades, the report emphasizes the critical need for action. The Netherlands, like many other countries, is facing significant biodiversity challenges, which ABN AMRO views as essential to address, especially given that over half of the global economy relies on ecosystem services such as pollination. Starting in 2025, the EU’s Corporate Sustainability Reporting Directive (CSRD) will mandate that large companies assess and report on their biodiversity impact.

The latest findings also provide insight into the various factors contributing to biodiversity loss, including climate change and pollution. By quantifying these elements, retailers can better understand the role their products play in this decline and develop effective strategies to combat the issue.

Actionable Steps for Retailers

Measuring the impact on biodiversity presents a complex challenge that necessitates collaboration across the supply chain, given that retailers typically source products from manufacturers and wholesalers.

“Retailers have the opportunity to analyze their value chain to assess how their products affect biodiversity. Following this, they can implement targeted policies to foster positive impacts and mitigate risks, along with establishing transition plans featuring science-based targets,” explains Henk Hofstede, Retail Sector Banker at ABN AMRO. “A robust data dashboard is crucial for tracking progress and reporting results, especially as stakeholders increasingly expect companies to minimize their environmental footprint to maintain their operational licenses.”

ABN AMRO is committed to using its influence as a lender, investment services provider, client adviser, asset manager, investor and employer to minimise negative, and maximise positive, impacts on the environment. To this end, it has endorsed the Kunming-Montreal Global Biodiversity Framework, which provides guidelines for halting and reversing the loss of biodiversity in the coming years. This statement offers general guidance with respect to ABN AMRO’s environmental initiatives.

Media Contact:

Marieke Ziedses des Plantes
Sr Press Officer Corporate Banking, Wealth Management
marieke.ziedses.des.plantes@nl.abnamro.com
+31 (0)20 6288900

SOURCE: ABN AMRO