Planetary Boundaries – What are they?
What on earth are Planetary Boundaries? They have nothing to do with the boundaries of different planets and have no link to science fiction, such as The Expanse or Star Wars.
While the UN’s 17 Sustainable Development Goals (SDGs) are now well established, the concept of Planetary Boundaries is much less known.
A summary of the 17 SDGs can be found here; many companies use them to assess their ESG and Sustainability credentials, achievements and goals.
According to the World Bank, "the twin crises of climate change and biodiversity loss are interlinked: climate change could result in significant biodiversity loss, and such biodiversity loss will impact the climate change dynamic."
Nature and biodiversity are linked but distinct concepts. Nature is all life on Earth (ie. biodiversity) together with geology, water, climate. Biodiversity, meanwhile, is the part of nature that is alive so includes all living things on the Earth.
Read more about the difference between biodiversity and nature here.
Biodiversity is the diversity of life that underpins the ability to make life possible. Without it, we would not be able to function as a society. Biodiversity loss is one of the most significant risks in our lifetime since it is directly tied to economic activity including our food supply, medicines and jobs.
Many of the systems on Earth created by humans, such as farm systems, production systems, transport systems and our consumption culture, work and flourish today at the expense of ecological systems, rather than in balance with them.
Consumption of resources means that we consume resources and spread them from one place on earth to another at a faster pace than the Earth’s natural system can handle.
It is estimated that roughly 1 million of global species are at risk of extinction. Not just animals: plants face similar risks as animal species. Most notable to the healthcare, pharmaceutical, and insurance industries, researchers estimate that at least one important undiscovered drug is lost every two years from biodiversity loss.
The following report reflects that: “Preserving biodiversity is in our self-interest. Nowhere does this ring truer than in drug discovery. The preservation of biodiversity provides a vital link to critically expand the molecular diversity necessary for successful drug discovery efforts in the future.”
“The preservation of biodiversity is perhaps the single most important building block for achieving the 17 Sustainable Development Goals set by the United Nations. For many of these goals, the importance of preserving biodiversity is obvious, e.g. SDG-2 (Zero Hunger), SDG-13 (Climate Action), SDG-14 (Life below Water), and SDG-15 (Life on Land). This also holds true for the other global goals including, but not limited to, SDG-3 (Good Health and Well-being), SDG-10 (Reducing Inequalities), and SDG-12 (Responsible Consumption and Production).”
The protection of biodiversity is therefore critical to our sustainability efforts.
Increasing education and research is critical to understanding not only the risks we are facing, but also the solutions that are in reach to solve our twin crises, of climate change and biodiversity loss.
In 2009, the Stokholm Resilience Centre led a group of 28 internationally renowned researchers who identified and quantified a set of nine Planetary Boundaries. The scientists proposed quantitative planetary ‘boundaries’, within which humanity can continue to develop and thrive for generations to come.
If we cross these boundaries, or limits, irreversible environmental changes can occur with serious consequences for humankind. These planetary boundaries are interconnected and mutually reinforcing, highlighting the complex interactions within the Earth’s system.
The boundaries are limits within which human activities must remain to ensure a stable and habitable planet. Exceeding them can lead to catastrophic environmental and social consequences, jeopardising the well-being of current and future generations.
The nine planetary boundaries are:
- Climate change - The concentration of greenhouse gases, especially carbon dioxide in the atmosphere.
- Ocean acidification - The increase in acidity of seawater due to the absorption of carbon dioxide from the atmosphere.
- Freshwater change - The extraction and consumption of freshwater resources from rivers, lakes and aquifers.
- Biosphere integrity - The focus on biodiversity and the rate of species extinction caused by human activities.
- Land system change - The conversion of natural habitats, such as forests, grasslands, wetlands into agricultural land, urban areas or other human-dominated landscapes.
- Biogeochemical flows - The release of synthetic chemicals, pollutants and waste into the environment, including air, water and soil.
- Nitrogen and phosphorus cycles - The interference with nitrogen and phosphorous cycles which are crucial for ecosystem functioning, agriculture and human wellbeing.
- Atmospheric aerosol loading - The accumulation of particulate matter and aerosols in the atmosphere from human activities.
- Stratospheric ozone depletion - The depletion of the ozone layer in the Earth’s stratosphere due to the release of CFCs and halons.
In 2015 and 2023 the Stokholm Resilience Centre (SRC) provided updates on the planetary boundaries and noted:
- In 2009 when the concept was developed 3 of the boundaries had been crossed;
- By 2015, 4 of the boundaries had been crossed;
- By 2023, 6 of the boundaries had been crossed.
The SRC states: Crossing boundaries increases the risk of generating large-scale irreversible environmental changes. Drastic changes will not necessarily happen overnight, but together the boundaries mark a critical threshold for increasing risks to people and the ecosystems we are part of.
Their 2023 update can be seen here.
A visual summary of the changes from 2009 to 2023 is:
Planetary Boundaries – Why companies need to understand them for their sustainability efforts
Businesses and organisations have a profound influence on the planet’s health. Companies’ activities affect resource consumption, pollution, and greenhouse gas emissions. Businesses that neglect these boundaries face risks, from reputational damage to supply chain disruptions and increased regulatory scrutiny.
However, those that engage with planetary boundaries and sustainability proactively, can find opportunities for growth.
By aligning with these principles, businesses can reduce operational costs, enhance their brand reputation, attract better talent, drive innovation and attract greater levels of capital investment from the next generation of investors.
Sustainability practices promote long-term viability and position companies as responsible stewards of the environment.
In response to climate change, biodiversity loss and new regulation, the concept of planetary boundaries has risen to prominence as a critical framework for understanding and addressing our impact on Earth.
Initially they were utilised in scientific and policy areas but they are now making their way onto corporate agendas.
The University of Cambridge Institute for Sustainability Leadership published a White Paper titled ‘Linking Planetary Boundaries to Business’.
The paper covers topics such as:
• Interactions between the planetary boundaries
• The risks for business
• The opportunities for business
• Data needs and the requirement for more scientific knowledge and data
• Possible next steps for the business community
• Re-design company sustainability strategies to prioritise and address the planetary boundaries
• The implications of the planetary boundaries for businesses
The paper can be downloaded here.
In early 2024 a research team of ecologists and economists and the SRC developed a new reporting system: Earth System Impact, ESI
“Corporate sustainability reporting focuses too narrowly on environmentally related risks to the business, and generally neglects many environmental impacts of the firm, such as pollution, land use, and water consumption all of which affect biodiversity. Therefore, real corporate environmental performance is obscured”, says SRC professor Beatrice Crona.
Understanding nature-related impacts of corporate activities remains a significant challenge under rapidly developing international and European sustainability reporting frameworks.
The SRC worked together with a transdisciplinary team of researchers to address this challenge. Their research resulted in the Earth System Impact (ESI) score, outlined in a new research paper published in the Journal of Cleaner Production.
While we are still in the early days of such tools being used on a widespread basis, it is hoped that they can improve assessments of corporate environmental impacts and support better decision-making by considering the important but largely overlooked interactions between climate, land, and water systems and the amplifying effects this has on climate change.
“We also hope that it can support institutional investors to sharpen their engagement with boards of companies that have high relative impact”, says Beatrice Crona from the SRC.
In summary, planetary boundaries offer a vital framework for navigating the complex and interrelated challenges of environmental sustainability. Their relevance to businesses is evident, as they provide opportunities for growth, innovation, and long-term resilience. Organisations that embrace these boundaries are not only contributing to a sustainable future but also positioning themselves as leaders in a rapidly changing global landscape.
We all have a role to play in protecting our planet’s biodiversity and at UHY Hacker Young and UHY International we are developing and providing ESG and Sustainability reporting and assurance services to companies and charities. We have UK and International working groups with like-minded teams who are passionate about sharing knowledge and best practices, collaborating and innovating together and helping our clients achieve prosperity through improved sustainability.
