Biodiversity construction value chain

15.04.2025

The birds, the bees and the built environment  

Why does biological diversity – biodiversity - matter? And why does business in the built environment need to change? 

This article explains why the natural environment is in critical need of protection and why the construction sector has a disproportionate role to play on both the building site and beyond.  

How Biodiversity serves Humanity

Animals, plants and earth itself all have an inherent value. Unfortunately, this existential fact does not guarantee freedom from exploitation.

The benefits to human well-being have been neatly categorised by the UN-sponsored Millennium Ecosystem Assessment into four ecosystem services.

Provisioning services: Some of nature’s “assets” have a quantifiable value, e.g. coveted Australian coal, Norwegian salmon, Costa Rican coffee, African diamonds, and a Christmas tree in December. Nature itself, however, does not get a slice of this financial pie.

Regulation services: Accessible drinking water, carbon captured by trees, floods averted by beavers and food pollinated by bees. These natural processes make ecosystems resilient to change.

Cultural Services: Natural and man-made parks and recreational areas facilitate the development of cultural and spiritual communities, not to mention psychological well-being. 

Supporting services: The foundational services upon which all other services depend. Consider photosynthesis, soil and water cycling. 

Reliance on nature extends even further. All the way, in fact, to the bottom line.

Construction’s Dependence - and Impact - on Nature

The construction sector is particularly dependent upon nature’s provisions. The industry consumes 50% of all extracted raw materials, and has therefore been disproportionately responsible for its destruction. To date, it is estimated that the construction industry:

From forests cleared for timber to wetlands drained for sand mining, the impacts ripple across the value chain. Key pressure points include:

Upstream

  • Raw material extraction

  • Land-use change (deforestation, habitat fragmentation)

  • Logistics and energy use

  • Labour and social equity impacts in biodiversity-rich but governance-poor regions

Downstream

  • Construction waste and pollution

  • Urban sprawl and ecological fragmentation

  • Reconstruction, renovation, and end-of-life design choice

And the impact of the value chain the planet?

By 2030, urban land cover is expected to increase by 1.2 million km2. By 2050, the built environment is expected to double to accommodate an urban population of 7 billion. 

What will this expansion mean for biodiversity? And how will biodiversity’s decline affect the built environment? Much remains to be seen, but the latest UN reports and projections are cause for universal concern.     

Planetary Boundaries and Biodiversity’s tolerance

In 2023 scientists confirmed that humanity had pushed the earth beyond six of its nine planetary boundaries. 

“Planetary Boundaries are the safe limits for human pressure on the nine critical processes which together maintain a stable and resilient Earth.”

The rate of human-induced biodiversity loss is historically unprecedented, and the earth is now entering its 6th mass extinction event

The nine boundaries are interconnected and interdependent. Biodiversity loss directly impacts some boundaries (e.g. freshwater, land-systems, biogeochemical flows and biosphere integrity) and indirectly impacts others.  

Humanity, nature and businesses are already facing the consequences of boundary transgression, namely “large-scale abrupt or irreversible environmental changes.” 

What’s Next? Building for both people and planet    

The future of biodiversity and the built environment are intertwined. Continuing with "business as usual" is no longer viable. However, by adopting regenerative practices, the construction industry can become a force for ecological restoration

According to McKinsey, taking a proactive approach to managing nature-related risks and opportunities can create business value, reduce risks, and build organisational resilience.   

Construction built the modern world. Now it’s time for it to help heal the natural one.

Biodiversity & the Construction Value Chain Series

This article series explores the negative impact on biodiversity from the construction value chain – and explores solutions from changemakers.. Learn how the built environment is impacting our natural world and get inspired to address the biodiversity crisis.

Planetary Responsibility Foundation Key Facts

Founded: 2022

Headquarters: Copenhagen, Denmark

At PRF, our aspiration is to reverse biodiversity loss in the world’s most biodiversity-rich areas under threat.

We do this through a holistic mindset and mission-driven investments and projects that make a difference for both people and the planet and to create returns that can be reinvested in the foundation's work.

Strategy: The foundation strategy has two components, RESTORE (nature restoration) and RETHINK (sharing knowledge about building and living more sustainably) that guide our work, and help us create lasting impact.

Contact

Jens Böhme, CEO
Tel. +45 2969 5282
jbo@prf.dk

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