Maintaining nature-based projects standards: Earthly’s red flag process

At Earthly

, ensuring the integrity and real-world impact of the

projects we support

is foundational. That’s why we have a clear, structured ‘red flag’ process to identify, investigate, and - if necessary - act when concerns arise about a project’s credibility or performance.

While we work hard to vet projects upfront, new risks can arise and, when they do, transparency, responsiveness and integrity

are key.

Our red flag process allows us to:

Most importantly, we share this process publicly because

accountability matters

. We want our customers, stakeholders and the broader public to know how we deal with potential project challenges, not just successes.

We trigger the red flag process when there are credible signs that a project might no longer meet our integrity standards, including:

Each of these signs on its own, or especially in combination, is enough for us to initiate a closer look at the project. We then act based on credible evidence and evaluate concerns carefully to avoid prematurely penalising projects.

Once a credible concern is raised, the process unfolds across four structured phases:

Our monitoring process uses proactive tools and direct engagement to identify potential concerns. We use systems such as Sentiment Analysis (planned for future rollout), BeZero Rating Alerts for projects that fall below the BBB threshold, and Earthblox fire or deforestation alerts to detect warning signs. 

When an alert is triggered, we immediately reach out to the project developer to present the concerns clearly and request clarifications or supporting evidence. This early communication ensures that potential issues are addressed promptly, setting a strong foundation for the review process that follows. This phase generally takes 1-2 weeks.

If the project developer fails to respond within a defined deadline or if their response is deemed insufficient after review, the project's status as 'under review' is flagged publicly on Earthly’s platform and it is added to our watchlist. This action serves as a clear signal to partners and clients that the project is under scrutiny. 

If credible evidence is provided by the developer, it is carefully reviewed and assessed. Updated findings, including any adjustments to the project’s Earthly Rating, are then communicated transparently to all relevant stakeholders. This phase generally takes a further 2-3 weeks.

For cases where concerns persist, the project is escalated to

Earthly’s Scientific Board

. A detailed report outlining the issue, the evidence gathered, and the engagement to date is submitted for independent review. 

During this phase, a validation period is initiated; the exact timeline for validation is determined on a case-by-case basis, depending on the nature and complexity of the concerns. Further investigations or clarification requests may also be pursued during this period.

After careful evaluation, the Scientific Board’s findings guide the final decision on the project’s future with Earthly. Depending on the outcome, one of several actions may be taken:

In all cases, we prioritise clear and proactive communication. Project investors and partners are informed directly of any changes, and broader updates are shared with our community through Earthly’s newsletters and transparency reports.

Each flagged concern is evaluated against a structured framework that considers these key aspects:

When assessing severity, we categorise concerns into three levels based on the seriousness of the problem and the corresponding actions required:

Developer engagement ensures that our decisions are not only based on the nature of the problem but also on the developer’s capacity and willingness to take meaningful action toward resolution.

Responsive developers actively investigate the issue and show a genuine commitment to addressing it. This shows a clear willingness to engage, investigate, and implement necessary changes, and it is treated as a green flag, indicating potential for rehabilitation and continued partnership.

On the other hand, dismissive developers who ignore, downplay, or refuse to engage with concerns raise serious red flags. A lack of responsiveness suggests an unwillingness to uphold integrity standards, and in such cases, there is an increased likelihood that the project will be suspended from Earthly’s marketplace or removed altogether.

We assess whether the project has initiated a detailed investigation into the concern and whether it has begun credible mitigation efforts or reforms. Taking proactive steps to investigate and address issues demonstrates the project’s commitment to improvement and strongly influences our final decision regarding the project’s ongoing relationship with Earthly.

Studies have shown that failures in environmental or social governance can

erode a project’s perceived value among stakeholders

and damage investor confidence. Consequently, to fully understand the potential impact of a red-flagged project, we assess harm to local communities and ecosystems, and its overall market confidence. 

We also consider the reputational risks associated with continuing to support a compromised project. When harm extends beyond a project’s immediate boundaries, it demands stricter action, which may include suspension or complete removal from Earthly’s marketplace.

We believe that for nature-based solutions to be sustainable, they must do more than remove carbon by supporting biodiversity, empowering local communities, and delivering tangible value on the ground. Our process is one of the ways we live by that commitment, supporting our goal of restoring 1% of the planet through nature-funding.

We invite our partners, clients and peers to hold us to these high standards, and we pledge to keep learning, improving and leading by example.

If you are developing or managing a high-impact NbS project, we would love to hear from you. We are always looking to expand our portfolio with projects that share our standards and vision.

Talk to us

, and let's work together to create a lasting impact on the planet and communities.