Assessing Biodiversity Impacts through the Application of Eco-Acoustics

In a significant stride towards sustainable practices, Cardano, in partnership with Fidelity International, Goldman Sachs Asset Management, Nomura Asset Management, and French nature-based research consultancy, Green Praxis, conducted a large-scale eco-acoustics study in 2024. The specific companies participating in the study beyond these partners have not been publicly disclosed.

The research, spanning over three weeks in Malaysia's Perak state, was designed to monitor biodiversity across geographies and ecosystems. The study area was divided equally between a production area, a conservation area, and a control area, with the control area located in the Ulu Kinta Forest Reserve, a pristine tropical rainforest.

The study employed eco-acoustic technology, which offers an advantage over visual methods by providing continuous measurement of biodiversity. This technology allowed for real-time detection of changes in biodiversity and can help uncover damaging activities like deforestation more quickly.

To automate habitat classification and biodiversity scoring, Green Praxis integrated machine learning software into the recordings. Analysis of bird species revealed that over two-fifths (41%) found in pristine plots were unique. The conservation plots exhibited biodiversity levels that were halfway between those of the pristine and production plots.

According to Fearman, the study demonstrates a greater commitment from companies to measuring their impact on biodiversity and a willingness to share the results of their actions. Fearman also noted that more companies are engaged in biodiversity assessments, including pre-project assessments to compare the impact of their activities on nature over time.

Fearman believes that combining large-scale monitoring using satellite imagery with on-the-ground monitoring using eco-acoustics can offer a comprehensive view of biodiversity changes. Fearman emphasizes that eco-acoustic technology can be applied in various sectors beyond Cardano's studies, such as mine sites, oil and gas development, and utilities.

Fearman also highlighted the growing pressures on companies to prove no net loss of biodiversity from their activities and improve the transparency in their supply chains to meet global biodiversity goals. There is growing demand from pension fund and insurance clients to see the results of Cardano's engagement work with its portfolio companies in relation to biodiversity.

The study was the second eco-acoustics study by Cardano, following an earlier study in 2022. The research team used a high-end acoustic recorder and AudioMoth, a low-cost, open-source acoustic monitoring device, across 30 plots of land. Fearman sees another technology, Geodata, as having great potential for biodiversity monitoring, but its specific role in this study was not explicitly stated.

As companies continue to face increased scrutiny over their environmental impact, technologies like eco-acoustics offer a promising solution for improving biodiversity performance and meeting global sustainability goals.