BIODIVERSITY
VALUATOR

The valuation methodology is a standardised and peer reviewed methodology that was developed by Endangered Wildlife OÜ. It was developed with input from finance, economics, ecology, statistics, ecological statistics, conservation, and actuarial professionals. It consists of five parts:

1. Carbon value - this is based on scientific carbon measurement methodologies.

2. Aesthetic value - this is based on the traditional willingness to pay, using social media as a proxy, and the virtual willingness to pay, which is a metric developed by the company.

3. Economic value - up to 27 legal economic activities are considered plus the opportunity cost of the species being modelled to extinction relative to its main related economic activity.

4. Hedge value - this is the financial hedge price of maintaining a sustainable population range after modelling the carrying capacity and minimum viable genetic population sizes.

5. Impact value - this is the value created by the species being "managed" over a 30-year period, taking into consideration the other species it interacts with and other exogenous variables.

Summing each of these five parts results in the Total Conservation Value of the species (or equivalently the value at risk). This is the value to society, the economy and the environment created through the survival of the species over the 30-year period in a specific location. The detailed Biodiversity Valuation Methodology Whitepaper and a sample report are both available on request by completing the form above.

The core of the valuation methodology took around 18 months to develop and stress test against eight taxonomic groups, across multiple habitats, and spanning six continents. We have now completed over 145 individual species valuations and seven richness valuations.

We currently use the Biodiversity Valuator internally for consulting clients, to whom we offer bespoke species and richness valuations and reports. We are also in the process of developing the AI backend of the Biodiversity Valuator software - the beta launch planned for April 2026.

We try to use only research grade data, but in all cases we ensure that the data can be audited if necessary. There are three levels of data that we can use:

1. On the ground surveys

2. Scientific research

3. Citizen science

Additionally, whenever possible, we try to work with local researchers and experts to gain further insights.

We do not perform surveys ourselves - we process the data to carry out the valuations. However, we have preferred partners who we can advise if you require a biodiversity survey to be performed.

A species valuation focuses on the valuation of a specific individual species in a set location. This looks at species abundance trends and is calculated on a population level, and averaged out over the number of individuals to calculate the average value per individual. Comparatively, a richness valuation considers the diversity of the species (and health of the ecosystem) in a location and is calculated as the biodiversity value as a whole in that area. This value is averaged over the area to calculate an average biodiversity value per hectare. However, both follow the same valuation methodology structure.

There are no other companies who offer the financial valuation of biodiversity and there is no existing body who can accredit it. The Biodiversity Valuation Methodology Whitepaper has been peer reviewed over 500 times but academics (economics, environment and conservation), international organisations, financial institutions, actuaries, and other practitioners, and the results have been quoted in independent peer reviewed academic articles. Each part of the method is a standardised academic, scientific or industrially used method that can be justified. Additionally, the TNFD has recognised it as being an acceptable application and accepted it for listing as a toolbox solution.

TNFD & GBF

The Biodiversity Valuator is a listed TNFD tool and aligns with the LEAP Phases:

• Locate the interface with nature

• Evaluate priority dependencies and impacts

• Assess material risks and opportunities

• Prepare to respond and report

As well as to 7 out of 23 Targets of the Kunming-Montreal Global Biodiversity Framework, especially:

• Target 14 – Integrate biodiversity in decision-making at every level

• Target 15 – Businesses assess, disclose and reduce biodiversity-related risks and negative impacts

ALIGN

The Biodiversity Valuation corresponds to the Align recommendations on the Valuation of Impacts and Dependencies, and meets the criteria relating to:

• Assessing impacts on the business

• Assessing impacts on society and dependencies

• Identifying the changes to biodiversity state that affect value

• Providing Information about location and context

• Assessing final ecosystem services

• Being prudent by considering a minimum estimate and adopting a precautionary approach

• Applying a precautionary approach where tipping points are expected and any biodiversity loss avoided

• Considering qualitative and quantitative factors to support the acknowledgement of intrinsic and relational values

ESRS for CSRD

The Biodiversity Valuation can be applied to and aligned with ESRS:

• AR4

• AR8 (c) and (d)

• AR9 (a), (b), (c) and (d)

• AR18

• AR26

• AR27

• AR28

• AR29

• AR30

• AR39

• AR40

Valuing biodiversity goes beyond the specified recommendations by converting the metrics into financial values, financial risk indicators, financial impact opportunities, financial targets, and financial impact measurements.

TPT

The Transition Plan Taskforce has opted not to provide recommendations or guidance regarding the use of biodiversity credits in transition plans.

There are many uses and applications of understanding the financial value of biodiversity. These uses include (but are not limited to):

1. Advocating for a particular species

2. Biodiversity sustainability reporting

3. Calculating Biodiversity ROI

4. Understanding value at risk

5. Integrating biodiversity into decision-making processes

6. Acknowledging biodiversity as part of cost-benefit analyses

7. Recognising the real value of biodiversity in terms of credits, offsets, donations, and other investments

The Biodiversity Valuator is novel in that it

• Offers investors a universally understandable metric for biodiversity

• Focuses on individual species and richness

• Promotes insetting with local biodiversity

• Assesses performance and investment impact using verifiable data and models

• Uniquely values the underlying financial value of the species and richness based on the contribution generated to society, the economy and the environment

• Can justify the value at risk of operations as a result of exposure to biodiversity risk

• Provides stakeholders with a tangible Biodiversity ROI so as to encourage the integration of biodiversity into business activities

• Ensures transparency, accountability and quality biodiversity reporting for investors

• Is flexible and can be used to value credits, debt-for-nature swaps, biodiversity bonds and other biodiversity asset classes

The Biodiversity Valuator is unique in that it does not

• Issue biodiversity credits

• Focus purely on human-centric, nature-based or ecosystem solutions

• Promote offsetting compensation for damage done to biodiversity elsewhere

• Assess performance solely against complicated, indicative ecosystem and species numbers

• Determine value only against conservation activity cost

• Randomly allocate a value to biodiversity

No, the valuation is not the price of the plant or animal - it is the planetary impact value that it creates for society, the economy and the environment by surviving in the location in which it is valued.

We believe that it is ethical to calculate the just value of biodiversity, in the same way as people are valued for jobs, loans, insurance, etc. We believe that it is more ethical to calculate values for biodiversity than to apply random prices on biodiversity. Every life matters and cannot be merely offset.

No, we are not in the business of giving financial or investment advice. The valuation is an independent review and assessment of impact, and our disclaimers make it very clear that this is not financial or investment advice, and that we cannot be held liable for decisions made against the valuations.