Building an understanding of Sika’s interactions with nature
Biological diversity is essential for our ecosystems and human well-being. Businesses are as dependent on biodiversity as people – without it, ecosystems and livelihoods would be heavily disrupted due to resource scarcity and the loss of vital ecosystem services. Biodiversity is deeply interconnected with other environmental issues, including land-use change, pollution, climate change, urbanization, and water scarcity.
Recognizing these interdependencies, Sika has already implemented a range of initiatives focused on energy efficiency, climate mitigation, water stewardship, and waste reduction across its operations. These measures form an integral part of Sika’s Strategy 2028 and support its commitment to responsible resource use and environmental protection.
Sika is a member of the Taskforce on Nature-related Financial Disclosures (TNFD) Forum a global multidisciplinary consultative group of institutions with over 1,800 members. With its participation at the TNFD Forum, Sika shares the ambition of the TNFD to develop a risk management framework for organizations to report and act on evolving nature-related risks. This supports a shift in global financial flows toward nature-positive outcomes.
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LEAP approach
Sika adopts the TNFD’s LEAP (Locate, Evaluate, Assess, Prepare) approach to guide the assessment of its impact on biodiversity: locate your interface with nature; evaluate your dependencies and impacts; assess your risks and opportunities; prepare to respond and report.
In 2023, Sika began by mapping its interfaces with nature in direct operations, complemented by an evaluation of potential related dependencies and impacts.
This process was supported by tools such as ENCORE and SBTN Sectoral Materiality, which helped to screen sector-specific dependencies and impacts, and by WRI Aqueduct and IBAT, which localized the analysis and provided a more comprehensive view of local pressures linked to direct operations. Three criteria—baseline water stress, proximity to key biodiversity areas, and proximity to protected areas—were used to identify sensitive locations.
In 2025, Sika extended its understanding across the value chain through a case study focused on the upstream supply chain. Using the Science Based Targets Network (SBTN) High Impact Commodity List and ENCORE, the company identified raw and value-added materials linked to key drivers of biodiversity loss, resource depletion, and ecosystem degradation.
To ensure a complete understanding of key drivers of biodiversity loss, these pressures must be assessed locally, considering the specific characteristics of supplier activities and their surrounding ecosystems. Thus, the listed pressures do not necessarily reflect the actual practices or impacts of Sika’s suppliers.
Next, a location-specific evaluation of tier 1 sand and cement suppliers in the USA was conducted using the WWF Biodiversity Risk Filter, which combines industry ratings with location-specific physical and reputational biodiversity-related risk factors to prioritize risks at supplier manufacturing sites. A total of 58 supplier locations were analyzed. The assessment demonstrates that, for some sites, the global average material pressures identified by the SBTN High Impact Commodity List are also confirmed at the local level, although their intensity varies by location.
Given the limited direct ability of Sika to influence upstream operations and their impacts on biodiversity, the primary mechanism for addressing this topic is through the Supply Chain Due Diligence (SDCC) approach. This includes supplier evaluation and collaboration to promote responsible business practices related to biodiversity.
In the coming years, Sika will continue to integrate the TNFD framework to advance its assessment and management of nature-related risks and opportunities across the value chain:
- Own operations: further investigate the magnitude of nature-related impacts and dependencies for sensitive locations, with a particular emphasis on sites with dependency on water resources.
- Upstream value chain: further analyze how raw materials sourced may contribute to material pressures on biodiversity considering both commodity-specific and geographical factors. These targeted assessments will help Sika to identify and prioritize the most significant pressures, informing supplier management processes and guiding mitigation efforts for those with the greatest potential impact.