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The Nature100™ ranking by illuminem evaluates companies based on their impact on biodiversity through a detailed analysis of eight key environmental performance indicators (KPIs). These indicators help us assess the direct effects of company operations on natural ecosystems.
Data Points and Their Weightings
The study analyzes the following KPIs, each contributing a specific weight to the overall score:
Greenhouse Gas Impacts (25%)
GHG Emissions Impacts (PDF) refers to the biodiversity impacts of a company's greenhouse gas (GHG) emissions. It quantifies the potential loss of global species due to environmental pressures caused by GHG emissions.
Land Use Changes (25%)
Land Use Change Impacts refers to the effects that a company's activities have on biodiversity due to land use. This measures the potential loss of species as a result of land occupation, habitat fragmentation, and other related activities. The impact is quantified using the PDF metric, which estimates the fraction of global species that may go extinct due to land occupation in the reporting year.
Nitrogen Oxide (NOx) Impacts (5%)
NOx Impacts (PDF) refers to the effects of a company's nitrogen oxides (NOx) emissions on biodiversity. These emissions contribute to ecosystem acidification and eutrophication, where excess nitrogen leads to harmful algal blooms that deplete oxygen levels in aquatic environments, creating dead zones. NOx also contributes to photochemical ozone formation, adversely impacting terrestrial ecosystems.
Total Nitrogen (5%)
Total Nitrogen Impacts (PDF) refers to the effects of a company's nitrogen emissions on biodiversity. Elevated nitrogen levels can lead to eutrophication, causing harmful algal blooms that deplete oxygen and create “dead zones” inhospitable to aquatic life. Nitrogen deposition can also acidify soils, threatening plant and animal communities adapted to low-nutrient environments.
Total Phosphorus (5%)
Total Phosphorus Impacts (PDF) refers to the effects of a company's phosphorus emissions on biodiversity. High phosphorus levels contribute to eutrophication, causing excessive algal growth that reduces oxygen availability and harms aquatic life. This nutrient overload disrupts food webs and ecosystem health, leading to a decline in biodiversity.
Sulfur Oxide (SOx) Impacts (5%)
SOx Impacts (PDF) refer to the effects of a company's sulfur oxides (SOx) emissions on biodiversity. These emissions contribute to acid rain, which lowers the pH of soils and water bodies, leading to habitat degradation and reduced soil fertility. SOx emissions can harm aquatic organisms, plants, and disrupt nutrient cycles, significantly reducing biodiversity.
Waste Generation Impacts (5%)
Waste Generation Impacts (PDF) refers to the effects of a company's waste production on biodiversity, including habitat destruction and pollution that threaten local ecosystems. Improper waste disposal can contaminate soil and waterways, leading to toxic conditions. The accumulation of waste can alter habitats, favoring invasive species and disrupting local biodiversity.
Water Consumption Impacts (25%)
Water Consumption Impacts refers to the effects of a company's water use on biodiversity. These impacts can result from direct water extraction, pollution, or resource depletion, leading to changes in species richness, habitat quality, and ecosystem health.
The data underlying these KPIs was collected and cleaned by GIST Impact, with additional validation provided by illuminem's team of experts.
Data Normalization and Sector-Adjusted Scoring
To enable consistent calculation of scores across multiple environmental categories, the scores for each KPI were normalized to a scale of 0 to 1. This ensures that all data points, regardless of their original scale or unit, are comparable. To further ensure fairness, especially for sectors with inherently lower environmental impacts, the final score for each company was adjusted by dividing the aggregated value by the median score of its sector. This adjustment ensures that companies are ranked based on their relative environmental performance within their specific industry.
Additionally, to prevent sectors with naturally lower environmental impacts from skewing the rankings, the final score for each company was adjusted by dividing the normalized value by the median score of its sector. This adjustment ensures that companies are ranked based on their environmental performance relative to their industry peers.
Ensuring Data Integrity
Following the initial selection, the top companies were scrutinized for any environmental controversies using a proprietary database of over 100,000 media articles maintained by illuminem. Companies with pending environmental scandals were excluded from the ranking to ensure the integrity of the list.
Additionally, 13% of the top 100 companies had missing data on one or more KPIs. Their inclusion in the ranking was validated by illuminem’s expert team, who ensured the final list reflected companies committed to transparency and responsible environmental practices.
All underlying data and insights will be available through illuminem DataHub™, with early access offered upon request to equip organizations with the intelligence needed to take informed, nature-positive action.
True to our ideals at illuminem and in the spirit of continuous improvement, we welcome your comments and contributions to refine this methodology. If you have any insights or suggestions to enhance the nature impact ranking, please reach out to us. We look forward to your feedback.
