Conserving and restoring biodiversity fuels business growth. At the forefront of "nature positive."

※This article is an edited version of one originally published on Business Insider Japan on April 24, 2024.

Natural resources form the foundation of all social activities. While environmental protection has long been a critical theme, recent years have seen the rise of "nature positive" – an approach that goes beyond simply protecting nature to linking it to the sustainable development of the socio-economy.

To implement this new trend in society, Dentsu Inc. collaborated with the startup Think Nature to developthe "Butterfly Check," a tool that visualizesbiodiversity and business. We spoke with three individuals involved in its development about the paradigm shift surrounding biodiversity.

The Growing Concept of "Nature Positive"

Biodiversity is gaining significant attention. Human society inevitably places a burden on nature. As a result, over one million species of wildlife are now threatened with extinction. Biodiversity issues were addressed at COP15 in Montreal in 2022, making its restoration a global challenge.

Conservation and restoration of nature have long been led by national and local governments, along with civic groups. However, a paradigm shift has occurred in this field in recent years. The concept of "Nature Positive" has gained traction. Yasuhiro Kubota, a biodiversity researcher and founder of the university-spinoff startup Think Nature, explains:
 

Yasuhiro Kubota / Professor, Department of Marine Natural Sciences, Faculty of Science, University of the Ryukyus; Visiting Professor, Institute of Statistical Mathematics; Representative Director, Think Nature. Graduated from Hokkaido University Faculty of Agriculture; completed Master's program at Obihiro University of Agriculture and Veterinary Medicine; completed Doctoral program at Tokyo Metropolitan University Faculty of Science; Doctor of Science. Specializes in ecology. Advances conservation science for biodiversity through fieldwork in forests worldwide and data science utilizing big data and AI. Founded the startup Think Nature with his research team, challenging the creation of a biodiversity market.

"Until now, nature conservation and economic growth were often framed as mutually exclusive choices. However, the SDGs' wedding cake model illustrates a different perspective: the biodiversity pie forms the base, with the social pie atop it, and the economic pie above that . Only by enlarging the foundational biodiversity pie can society and the economy achieve sustainable growth. This is the core of the Nature Positive concept, and it's why momentum is building for everyone, including the business sector, to work together." (Mr. Kubota)

Indeed, companies cannot remain unaffected by this trend. In 2023, the TNFD (Taskforce on Nature-related Financial Disclosures) framework was finalized. Moves demanding companies disclose information on the risks and opportunities biodiversity presents to management, along with their responses, are gaining serious momentum. While Japanese companies lagged behind on climate change issues, perhaps reflecting on that experience, they are moving quickly this time. Looking at companies registered as TNFD Early Adopters by country, Japan had the most at 80 companies as of January 2024.

However, there are differences in the level of commitment among companies. Yuka Sawai, Team Leader of the Biodiversity Team at Dentsu Inc.'s Sustainability Consulting Office, sensed hesitation among companies during her interactions with clients.
 

Yuka Sawai / Senior Consultant, Business Promotion Consulting Department, Sustainability Consulting Office, Dentsu Inc. Leader of the Biodiversity Team. Joined Dentsu after working at an HR-focused creative agency. Served as a Business Producer handling the beverage, food, AI, and cosmetics industries, engaging broadly in advertising production, new product development, and business launches, primarily focused on brand operations. Becoming aware of social issues after adopting a rescue cat as a family member led her to the Sustainability Consulting Office. Currently active in various sustainability domains, primarily biodiversity. Loves cats, beer, and camping.

"Most companies are primarily responding to TNFD requirements while continuing their existing nature-related CSR activities. Actions that connect business operations directly to biodiversity remain largely untouched. One reason is the lack of visible impact. Companies find it difficult to commit because they don't know what actions will positively affect biodiversity, how much that will impact their business, or what the business outcomes will be, " (Mr. Sawai)

Visualizing the outcomes of nature-positive initiatives for both nature and business

To overcome this barrier and embed nature-positive management, tools that visualize biodiversity and business are essential. Driven by this awareness, Dentsu Inc. and Think Nature jointly developed the "Butterfly Check. " Butterfly Check measures how biodiversity increases or decreases based on actions taken, then visualizes both the impact of these changes on the natural environment and the impact on the business, using both quantitative and qualitative methods. Integrating both allows for the implementation of more effective nature-positive measures.

This advanced analysis is possible because both companies, teaming up for this project, leveraged their respective areas of expertise. Think Nature handled the analysis of ecosystems and ecosystem services (the benefits society derives from ecosystems). Mr. Kubota describes his company's strengths as follows:

"We've converted global terrestrial and marine biodiversity data into big data. For areas with limited information, we utilize AI to fill gaps, enabling high-resolution understanding of the spatiotemporal distribution of 300,000 species. Based on this, we quantify the points of contact and dependency between corporate activities across various industrial sectors and nature, as well as the impact of those activities on biodiversity and ecosystem services. We also provide scenario analysis showing what actions can reduce negative impacts or be positive for nature." (Mr. Kubota)

On the other hand , visualizing the impact on business is an area Dentsu Inc. has long been engaged in. Butterfly Check visualizes evaluations from stakeholders—including customers, employees, investors, and business partners—through surveys and interviews. This employs methodologies cultivated over many years in marketing and public relations.

Furthermore, the creative power demonstrated here is also noteworthy. As its name suggests, Butterfly Check features a butterfly-inspired design motif.
 

Provided by: Dentsu Inc./Think Nature

The left wing summarizes the effects on nature, while the right wing outlines the effects on business, allowing the impact of nature-positive actions to be intuitively understood. Yurika Mori of Dentsu Inc.'s Sustainability Consulting Office, who led the creative work, explains:
 

Yurika Mori / Creative Writer/Planner, Dentsu Inc. Sustainability Consulting Office. After working as an advertising copywriter, she transitioned into the BX field. Beyond brand communication, she tackles diverse areas centered on verbalization, including management vision development, business development, narrative development, expression consulting, and designing internal activation. Her awareness of sustainability challenges deepened after childbirth, leading her to take on numerous SX-related projects. She was responsible for the creative direction of the "Butterfly Check." She loves whisky and theater.

"Ecosystem services are typically categorized into four types, but simply organizing vast amounts of information correctly often makes it difficult to grasp the value of taking action. We need to make it more intuitive and compelling. If we can demonstrate the connection to business, it becomes easier to engage stakeholders.

This empowers the individuals and organizations driving action, and most importantly, reveals a society achieving Nature Positive beyond that. That led us to the term 'Butterfly Effect' – how a butterfly's wing flapping can eventually trigger a tornado far away. We designed the Butterfly Check motif featuring butterflies, which are also pollinators, imbued with the hope that small actions can change the world." (Mr. Mori)

When Mr. Kubota saw the finished visual, he sensed its immense potential.

"Responding to TNFD is something required in B2B relationships between financial institutions and companies from a sustainability and ESG perspective, so disclosing specialized information related to that is sufficient. However, most business involves B2C or B2B2C, with consumers—ordinary citizens—at the end. Corporate biodiversity initiatives are unlikely to become significant business movements unless they engage consumers. I became convinced that Butterfly Check is a tool that creates opportunities to overcome that barrier. " (Mr. Kubota)

Creating a Butterfly Effect in Biodiversity

What can be achieved by utilizing Butterfly Check? Let's look at the case of Kyodo Shoji in Kawagoe City, Saitama Prefecture, which operates COEDO Beer.
 

Provided by: Kyodo Shoji / Dentsu Inc.

The company has long pursued nature-positive activities, such as converting the artificial turf field next to its brewery into an organically farmed barley field and selling the craft beer produced there at events. However, it had not quantified the impact of these efforts, which remained largely symbolic. Therefore, it participated in the Butterfly Check pilot project. Although the converted barley field was only about the size of a soccer field, analysis showed a recovery in biodiversity: plant species increased from 0 to 72, butterfly species from 1 to 17, and bird species from 13 to 49.
 

Provided by: Dentsu Inc./Think Nature

"Regarding nature, positive effects were visualized, primarily in water-related ecosystem services, such as increased water regulation functions due to farmland's water retention capacity. Furthermore, we found benefits in the business aspect, such as improved brand image and recruitment effectiveness. On the other hand, it became clear that despite high willingness to participate in actions, awareness of these actions is low, leading to missed opportunities. The president stated, 'We identified the issues, so we can use this for the next improvements,'" (Mr. Sawai)

Butterfly Check was released this past February. Regarding future developments, Mr. Sawai concluded with these hopeful words:

"Some may feel 'biodiversity' is a distant topic, but given that roughly half of the world's GDP depends on nature (*), it's no exaggeration to say the future of biodiversity is our human future. As a first step toward regeneration, I'd be delighted if visualization sparks biodiversity projects within companies. It's not just about responding to investors; it's about involving consumers, employees, local communities, and the supply chain to create a larger movement. By making Butterfly Check the first flutter of wings to trigger a butterfly effect, we aim to contribute to the sustainable development of society and the economy." (Mr. Sawai)

※From the World Economic Forum's "Growing Nature-Related Risks: Why the Crisis in Nature Matters for Business and the Economy"

 

For more details on Butterfly Check, click here

(Business Insider Japan Brand Studio)