How can businesses protect biodiversity through their agricultural practices?
- Palsa & Pulk

- Aug 1
- 14 min read
An introduction to soil biodiversity, and how companies can meaningfully protect soils and insects throughout their agricultural operations and supply chains.
This edition of “The Just Transition Newsletter” by Palsa & Pulk was written by Christine Nikander and Heidrun Kordholste-Nikander.

Why is it important to protect soils?
Agriculture plays a major role in biodiversity.[i] It is estimated that 40% of our planet’s population is affected by the degradation of land and soil.[ii] Soil degradation can be caused by the loss of organic matter, a decline in fertility, erosion, changes in salinity, acidity, or alkalinity, or through the supply of toxic chemicals or pollutants. In addition, flooding can degrade soil, because many species that live in the soil might drown. It also influences the mycelium in the ground. This is particularly relevant as mycelium or fungi are known to bring nutrients into the soil. They can add nutrients to the soil by mining stones for minerals or by decomposing organic matter.[iii]
Soil microorganisms are affected by temperature, moisture, and acidity.[iv] “Soil biodiversity contributes to ecosystem services such as nutrient cycling, water filtration, pest control, carbon storage, and soil stabilization, all important for human well-being.”[v]
Natural plants and crops rely on a functional soil biodiversity, but agricultural activities can alter the structure of the soil.[vi] Certain crops might not grow if the soil is too alkaline or too acidic, if the soil is too wet or too dry, or too warm or too cold – or simply because the crops used up all the nutrients.[vii]
Fertilizer use in agriculture
To counter the loss of nutrients in the ground, it is common for modern agriculture to use fertilizers. Statistical estimates show that the amount of inorganic fertilizer use per hectare of agriculturally used land can be linked significantly to decreasing biodiversity.[viii] Nutrient pollution changes the composition of plant communities, not only on the arable land itself, but also on the wild plant parcels and in the marginal strips where remnants of natural vegetation still exist.[ix]
Fertilizers do not stay on the agricultural land where they are originally deployed. Synthetic fertilizers are a significant cause of extreme algae growth, oxygen deficiency, and therefore also fish deaths in water bodies. The more industrial agriculture becomes, the more fertilizer ends up in topsoil, neighboring areas of agricultural land, and in the water system.[x]
Besides the seemingly invisible chemical pollutants, there are also more visible sources of soil pollution. We find plastic everywhere. Despite all the discussions about microplastics, fertilizers are also being coated in plastic layers to prolong their effect. As a result, plastic accumulates in agricultural land. The soil cannot keep hold of all of this plastic – and so, the plastic ends up in the water. Then marine animals absorb it, eat it, or get caught in larger pieces, which results in their death and therefore changes the biodiversity.[xi]
Soil salinization through agriculture
Soil salinization is the accumulation of salts (especially calcium and sodium) in the upper layers of the soil, the so-called topsoil. This results in the reduction of soil fertility and the damaging of plant roots.[xii] Due to the extremization of climate, caused by climate change and excessive use of fertilizers, soil salinization in agriculture is increasing.[xiii] Notably, increases in soil salination combined with climate change can also cause typically helpful bacteria in the root microbiome of plants to become a threat and hinder the growth of the plants.[xiv]
Low precipitation either by rain or irrigation, or alternatively a high evaporation rate, causes salt to reach the soil surface. This, in turn, decreases the growth of plants or makes it impossible for them to grow. Therefore, especially in warm and dry regions, the soil should not be exposed to too much sun.[xv] With rising sea levels, coastal regions are also facing salinization. Examples of this include the Mekong Delta in Vietnam, the Po area in Italy, the Nile Delta in Africa, and the Mississippi Delta in America. The salinization of deltas has impacts on the production of rice and many other crops.[xvi]
To address the challenges caused by soil salinization, multi-faceted approaches are required. Sustainable water management is necessary in order not to lower ground water levels, to harvest rainwater, to use fertilizers wisely, and to install well-functioning drainage systems. In addition, salt-tolerant crops have been found and can be grown to help ensure food security globally.[xvii]
Why are insects important in agriculture?
Many plants need insects for pollination.[xviii] Some birds, bats, or other animals can be pollinators too – but most pollinators are insects.[xix] Approximately 35% of the earth’s food crops depend in one way or the other on pollinators.[xx] It is assumed that without pollinators, 75% of our crops would vanish. Pollinators are however disappearing, due to the use of pesticides and other chemicals, habitat loss, parasites, and diseases.[xxi] At the moment, about 40% of insect species globally are threatened to die out.[xxii]
While humans rely on many fruits and vegetables for a healthy diet, there are still other products made by insects that have been used by humans already for centuries. Examples of this include beeswax, silk, and honey.[xxiii] Moreover, the products of insects can also play an important role in medicine. Bee venom can, for example, be used to treat certain types of cancer.[xxiv]
Beyond this, insects can help keep pests away from our cultivated plants by being predators to these pests. In addition, some insects are decomposers and help dead animals and plants to decompose fast.[xxv] On the other hand, insects can be pests too. Over time, intensive agricultural practices have selected a rather small variety of plants or crops to grow in large-scale monocultures, providing the perfect habitat for herbivorous insects. This results in the mass reproduction of these insects. Worldwide, these insects damage 18% of agricultural production.[xxvi]
Pesticide & chemical use in agriculture
To counter pests, pesticides are widely used in modern agriculture. Yet, many pesticides are not specifically created to kill a certain pest. Instead, they kill many plants and animals alike, although these might be crucial for the ecosystem in a specific area. Moreover, it is estimated that 40% of the decline of insects worldwide is caused by chemicals. As a result, 30% of insects globally are now endangered.[xxvii]
About 25% of pesticides applied in agriculture drift away from the place where they are used. They can drift hundreds and even thousands of kilometers through the air depending on wind speed, humidity, and temperature. Eventually, they can end up on soil which is not used by agriculture and harm all kinds of organisms – like plants, insects, or fungi. It is estimated that pesticides are linked to the reduction of more than 50% of wild plants that are closer than 500 meters to the agricultural area where the pesticides were applied. Overall, pesticides have an enormous impact on biodiversity because the number of flowers for pollinators is reduced.[xxviii]
Different airborne pesticides can mix. These mixtures might have an even more significant effect on wildlife than a single pesticide would. Yet, these mixtures are difficult to investigate.[xxix] In addition, many pesticides also contain per- and polyfluoroalkyl substances (PFAS), which almost never decompose.[xxx] Beyond this, still other chemicals get into nature – like heavy metals from mining or the galvanic industry.[xxxi]
On the one hand, pesticides can be considered a necessary evil, because without them our current global agricultural production would be impossible. On the other hand, there is a need to reduce pesticides because of their negative impact on biodiversity.[xxxii]
Pollution through PFAS
The impact of chemicals on nature depends on the chemical itself, its concentration, the time span of exposure, and the vulnerability of the affected species. Yet, humans invent new chemicals very speedily, often without the environmental impact studies always keeping up with the heavy impacts these have on nature.[xxxiii] An example of this includes the introduction of PFAS.
Due to their properties, PFAS are used in numerous consumer products – such as cosmetics, cookware, paper coatings, textiles, or ski waxes. They are used for the surface treatment of metals and plastics, in crop protection products, and fire extinguishing agents. They are fairly commonly found in outdoor clothing, shoes, workwear, carpets, home textiles, water- and grease-repellent paper products, electroplating, refrigerators, propellants, and menstrual products.[xxxiv] Moreover, you can also find them in the embedding layer on the back sheet of solar cells as EVA (polyethylene vinyl acetate).[xxxv]
PFAS are organic compounds of various chain lengths, in which the hydrogen atoms are replaced by fluorine atoms. Many PFAS are emitted in the air by industrial plants. In the air, they can travel far. Eventually, they, however, come down with the rain and end up in the soil and the water system. Since PFAS do not decompose, they accumulate in the food chain. As they are water-soluble, they also reach the groundwater. Moreover, PFAS enter sewage treatment plants via commercial and domestic wastewater. As a result, they end up in our surface water and the oceans. They are also found in sewage slug in agriculture areas, because this is still used as fertilizer in some countries. From there, they can reach the groundwater.[xxxvi]
“A major concern with PFAS, also dubbed ‘forever chemicals’, is that they accumulate in the liver and kidney and persist in serum.”[xxxvii] Since blood, liver, kidney, and lungs of mammals, including humans, are affected by PFAS, for example by causing cancer, the lifespan of these creatures can be shortened and therefore affect the biodiversity in areas with high PFAS contamination.[xxxviii] According to current knowledge of the European Food Safety Authority, animal foods in particular are considered to be contaminated with PFAS.[xxxix]
High concentrations of PFAS can be found in the liver of wild boars in some regions in Germany. Therefore, the liver can be used as a bioindicator to show how high PFAS contamination is on site. The wild boar is an omnivore, meaning that it also eats mice, frogs, snails, and worms. These animals are themselves contaminated. In addition, wild boars dig in the soil a lot and therefore also indirectly absorb PFAS.[xl]
It is estimated that there are more than 10 000 different substances that belong to the PFAS group. The Directive (EU) 2020/2184 of the European Parliament and of the Council of 16 December 2020 on the quality of water intended for human consumption regulates some types of PFAS, but not all of them.[xli]
Deforestation through agriculture
More than 25% of the terrestrial surface of our planet is used for cultivation.[xlii] “The food we eat causes one third of all greenhouse gas emissions, as forests are cleared at an ever-growing rate to make way for new cattle pastures, soy fields, cocoa farms and oil palm plantations.”[xliii] Moreover, “[e]stimates show agriculture drives over 90% of tropical deforestation”.[xliv] “[D]eforestation and land use change, in turn, accounts for 11% of global carbon emissions”.[xlv] On a more local level, in the “richly forested Brazil, the share of national emissions from land use change is 46%”.[xlvi]
Deforestation risks are notably not distributed equally.[xlvii] In many tropical regions, forests are cut down to create cultivated areas. From 1995 to 2022, this change of land use has caused species loss – especially in Brazil, Indonesia, Mexico, and Madagascar. Crops and cattle are cultivated or raised for export – mainly to China, the USA, the Middle East, and Europe. In Madagascar and Brazil, the forests are mainly cut down for livestock grazing. In Indonesia, this is done for oil seeds – like palm oil – and in Mexico for fruits, vegetables, and nuts.[xlviii]
Previously, it had been estimated that the change of land use in tropical regions would cause a loss of 20 to 30% of biodiversity, but new studies from the Technical University of Munich and the ETH Zurich show, that the loss is more than 90%.[xlix] “Of a total of around 2,400 soy-producing municipalities, only 569 together accounted for 99% of Brazil's soy deforestation in 2020.”[l] In temperate climates, the change of land use has a smaller effect on species loss. Consequently, the loss of biodiversity should be seen on a global scale.[li]
“The climate crisis […] cannot be resolved without tackling international commodity supply chains.”[lii] Yet, in the European Union, the proposal and introduction of the regulation on deforestation-free products caused a lot of discussions – and this although the costs of compliance are negligible. Compliance with the regulation is estimated to have impacted consumer prices by between 0.001% and 0.07%.[liii] To contextualize this, the biodiversity loss in the tropical regions might have an enormous financial effect on large areas – such as China, the USA, the Middle East, and Europe. Financial damage through climate change may be caused through appearances like floods, droughts, and – in consequence – calamities. Moreover, with the loss of biodiversity, there might be a loss of species, which are important for our nutrition and health in the long term.[liv]
What change is needed in companies’ agricultural practices?
Up to 39% of habitable land is currently used for livestock farming for meat and dairy production.[lv] Cocoa, coffee, natural rubber, palm oil, rubber, soy and timber are other commodities that are remarkable drivers of biodiversity loss.[lvi] The agricultural sector is in an urgent need for change, as it is estimated that the expansion of agricultural lands account for nearly 90% of global deforestation.[lvii] Moreover, according to the World Economic Forum, 60% of the world’s species have died out since 1970. To stop this trend, pesticides have to be reduced, habitat loss has to be diminished, and farming has to be diversified – just to mention some measures that can be taken by companies and other private actors.[lviii]
There is an opportunity to create a significant positive impact through changes in agricultural practices. By halving food waste, providing alternative plant-based proteins, and advancing regenerative agriculture, the agricultural sector alone could free up a land area that is the size of one and a half times Europe by the year 2050 and halt biodiversity loss by 2035.[lix]
The next newsletter will explore how businesses can safeguard Indigenous and community rights in agricultural supply chains. If you want to be notified when it comes out, please subscribe to our mailing list.
About the authors

Christine Nikander is the founder of the environmental and social sustainability consultancy, Palsa & Pulk. She regularly helps companies navigate the complex regulatory and compliance obligations around their global supply chains. Christine studied law at the universities of Columbia (New York), Edinburgh (Scotland), and Leiden (the Netherlands). She has been writing The E-Waste Column weekly since 2022.
Heidrun Kordholste-Nikander is a freelance biodiversity & forestry consultant at Palsa & Pulk. Her core competences lay in implementing sustainability into forestry and agricultural practices. Heidrun also advises clients on how to protect biodiversity. Heidrun studied forest management and environmental protection technology in Munich (Germany) and North American studies in Helsinki (Finland). Through her consultancy work, she hopes to help companies make science-based sustainability decisions that are practical, pragmatic, and effective.
About Palsa & Pulk
Palsa & Pulk is an environmental and social sustainability consultancy. It provides compliance, governance, policy, and strategic advice to its clients. The consultancy’s work is mostly focused on supply chain governance, the just transition, circular economy, and human rights.

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[xxxi] United Nations Environment Programme, Pollution action: the missing link in biodiversity protection. https://www.unep.org/gef/news-and-stories/story/pollution-action-missing-link-biodiversity-protection (24.02.2025).
[xxxii] UL Centre for Ecology & Hydrology: Comprehensive global study shows pesticides are major contributor to biodiversity crisis. https://www.ceh.ac.uk/press/comprehensive-global-study-shows-pesticides-are-major-contributor-biodiversity-crisis (24.02.2025).
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[xxxv] Solarwatt, Photovoltaikanlage: Entsorgung und Recycling. https://www.solarwatt.de/ratgeber/photovoltaikanlage-entsorgung-und-recycling (24.02.2025).
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[xli] Directive (EU) 2020/2184 of the European Parliament and of the Council of 16 December 2020 on the quality of water intended for human consumption, Official Journal of the European Union. https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32020L2184
[xlii] Pallab Mozumder and Berrens Robert P., Inorganic fertilizer use and biodiversity risk: An empirical investigation. https://www.sciencedirect.com/science/article/abs/pii/S0921800906003569 (24.02.2025).
[xliii] Trase, Traceability is not a silver bullet for reducing deforestation. https://trase.earth/insights/traceability-is-not-a-silver-bullet-for-reducing-deforestation (21.08.2024); Elizabeth Goldman, Sarah Carter, and Michelle Sims, Fires Drove Record-breaking Tropical Forest Loss in 2024. https://research.wri.org/gfr/latest-analysis-deforestation-trends (31.07.2025).
[xliv] Trase, How data can make the EU's deforestation regulation fair and workable. https://trase.earth/insights/how-data-can-make-the-eu-s-deforestation-regulation-fair-and-workable (21.08.2024); Martin Persson, Agriculture drives over 90% of deforestation in the tropics. https://www.chalmers.se/en/current/news/see-agriculture-drives-over-90-of-deforestation-in-the-tropics/ (21.08.2024).
[xlv] Trase, How data can make the EU's deforestation regulation fair and workable. https://trase.earth/insights/how-data-can-make-the-eu-s-deforestation-regulation-fair-and-workable (21.08.2024); Daisy Dunne, Deforestation has driven up hottest day temperatures, study says. https://www.carbonbrief.org/deforestation-has-driven-up-hottest-day-temperatures/ (21.08.2024).
[xlvi] Trase, How data can make the EU's deforestation regulation fair and workable. https://trase.earth/insights/how-data-can-make-the-eu-s-deforestation-regulation-fair-and-workable (21.08.2024).
[xlvii] Trase, How data can make the EU's deforestation regulation fair and workable. https://trase.earth/insights/how-data-can-make-the-eu-s-deforestation-regulation-fair-and-workable (21.08.2024).
[xlviii] Trase, How data can make the EU's deforestation regulation fair and workable. https://trase.earth/insights/how-data-can-make-the-eu-s-deforestation-regulation-fair-and-workable (21.08.2024).
[xlix] Livia Cabernard, Land use in tropical regions; Biodiversity loss due to agricultural trade three times higher than thought.
[l] Trase, How data can make the EU's deforestation regulation fair and workable. https://trase.earth/insights/how-data-can-make-the-eu-s-deforestation-regulation-fair-and-workable (21.08.2024).
[li] Livia Cabernard, Land use in tropical regions; Biodiversity loss due to agricultural trade three times higher than thought. https://www.tum.de/en/news-and-events/all-news/press-releases/details/biodiversity-loss-due-to-agricultural-trade-three-times-higher-than-thought (13.12.2024).
[lii] Trase, How data can make the EU's deforestation regulation fair and workable. https://trase.earth/insights/how-data-can-make-the-eu-s-deforestation-regulation-fair-and-workable (21.08.2024).
[liii] Profundo, Analysis of EUDR compliance costs. https://profundo.nl/projects/analysis-of-eudr-compliance-costs-/ (13.02.2025).
[liv] Livia Cabernard, Land use in tropical regions; Biodiversity loss due to agricultural trade three times higher than thought. https://www.tum.de/en/news-and-events/all-news/press-releases/details/biodiversity-loss-due-to-agricultural-trade-three-times-higher-than-thought (13.12.2024).
[lv] Sitra, Nordic circular solutions tackle biodiversity loss. https://www.sitra.fi/en/articles/nordic-circular-solutions-tackle-biodiversity-loss/ (31.07.2025).
[lvi] Sitra, Nordic circular solutions tackle biodiversity loss. https://www.sitra.fi/en/articles/nordic-circular-solutions-tackle-biodiversity-loss/ (31.07.2025).
[lvii] Sitra, Tackling root causes: halting biodiversity loss through the circular economy. https://www.sitra.fi/en/events/tackling-root-causes-halting-biodiversity-loss-through-the-circular-economy%EF%BF%BC/ (31.07.2025).
[lviii] World Economic Forum, 75% of crops depend on pollinators - they must be protected. https://www.weforum.org/stories/2019/12/protect-pollinators-food-security-biodiversity-agriculture/ (31.07.2025).
[lix] Sitra, Tackling root causes: halting biodiversity loss through the circular economy. https://www.sitra.fi/en/events/tackling-root-causes-halting-biodiversity-loss-through-the-circular-economy%EF%BF%BC/ (31.07.2025); Sitra, Circular solutions can halt biodiversity loss – The food and agriculture sector can make the largest contribution. https://www.sitra.fi/en/news/circular-solutions-can-halt-biodiversity-loss-the-food-and-agriculture-sector-can-make-the-largest-contribution/ (31.07.2025).



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