As an increasing number of companies adopt Science-Based Targets for Nature (SBTN) and commit to avoiding the conversion of natural lands, it becomes essential to accurately identify natural and critical habitats potentially affected by development projects.

International frameworks such as the Accountability Framework initiative (AFi), SBTN, and the International Finance Corporation’s Performance Standard 6 (IFC PS6) require companies to avoid the conversion or significant degradation of natural ecosystems. Natural habitats are areas that retain important biodiversity and ecological functions, while critical habitats hold irreplaceable value, supporting endangered species or providing essential ecosystem services.

In the renewable energy sector, rapid infrastructure expansion requires careful ecological assessment to prevent irreversible impacts and ensure alignment with environmental standards increasingly demanded by investors and financial institutions.

Sungrow Power commissioned a specialized assessment to verify whether its project sites in the Atacama Desert comply with SBTN Natural Lands criteria and IFC PS6 requirements.

The objective was to determine whether the planned development areas overlap with natural or critical habitats and to assess the risk of ecosystem conversion or degradation. The assessment provides operational guidance to ensure compliance with international standards while reducing environmental and reputational risks.

The project is implemented in an ecologically sensitive context: even arid ecosystems such as the Atacama Desert may host highly adapted species and habitats of significant conservation value.

Etifor conducted site-specific SBTN Natural Lands and IFC PS6 assessments, integrating spatial analysis, ecological data, and internationally recognized habitat classification criteria.

Our work included:

• identifying and classifying habitats within the project areas;

• verifying the presence of natural and critical habitats according to IFC PS6 criteria;

• assessing risks related to the potential conversion of natural ecosystems;

• applying the mitigation hierarchy to define project alternatives and operational recommendations;

• preparing dedicated technical reports and developing Biodiversity Management Plans for each site.

Through this approach, we supported Sungrow Power in preventing the irreversible conversion of natural ecosystems, strengthening environmental risk management, and ensuring alignment with leading international sustainability standards.

The outcome is a science-based decision-making framework that enables responsible renewable energy development while safeguarding biodiversity and reducing regulatory and financial risks.