Strategic Biodiversity Risk Management and Sustainable Finance in Technology Manufacturing: An Eco‐Cost Intensity Approach

ABSTRACT Biodiversity risk has rapidly evolved from a peripheral environmental concern into a core strategic challenge for firms, yet operational metrics that translate ecological impacts into decision‐relevant indicators remain limited. Responding to recent calls for more comparable corporate biodiversity accounting tools, this study introduces Eco‐Cost Intensity (ECI), defined as biodiversity‐related eco‐costs scaled by firm revenue. The metric translates life‐cycle assessment data into a tractable firm‐level indicator that can be computed using publicly available sustainability disclosures. Applying ECI to three major technology manufacturing firms using their 2024 sustainability reports, the analysis reveals substantial within‐sector heterogeneity in biodiversity exposure. The results highlight that electricity sourcing is the dominant driver of biodiversity impact, indicating that geographic variation in energy systems plays a critical role in shaping firm‐level risk profiles. In addition, the findings identify a regulatory trade‐off in material substitution, where compliance‐driven changes may unintentionally increase biodiversity pressure. The three firm‐level ECI values are computed directly from audited 2024 disclosures; the credit‐spread and policy results are reported as ex‐ante predictions for empirical testing, not as established findings. Beyond measurement, the study develops implications for corporate strategy and green finance by demonstrating how biodiversity exposure can influence risk differentiation and sustainability‐linked financial instruments. Overall, the paper contributes a practical and scalable metric for integrating biodiversity considerations into strategic management and sustainability decision‐making.