Everything you need to know about biodiversity credits

Understand this emerging solution and learn why biodiversity credits deserve a place in your ESG strategy.

Jenny Hyndman

Jenny Hyndman

11 Mar, 2025

Everything you need to know about biodiversity credits
VBC ebook mock up

Responsible businesses have made significant strides in addressing their carbon emissions, with many companies investing in a reduction strategy and carbon credits to mitigate their environmental impact. However, while reducing greenhouse gases is crucial, businesses have a part to play in another urgent crisis:

biodiversity decline.

Global biodiversity is being devastated - its loss threatens ecosystems, economies and communities. Over 1 million species are currently at risk of extinction, and the degradation of natural systems endangers $44 trillion of economic value reliant on biodiversity. Despite growing awareness, scalable financial solutions remain scarce.

Biodiversity credits

have emerged as a promising nature-based solution to help address biodiversity loss through private funding, while helping businesses meet sustainability targets, meet market and stakeholder demands, and get ahead of potential regulations. 

However, the concept of biodiversity credits and their market is new and unfamiliar to many sustainability decision makers.

To aid your understanding,

Earthly has put together a guide on everything you need to know about biodiversity credits.

Here are four key takeaways you can expect from our eBook:

1. Understand what biodiversity credits are

Biodiversity credits assign monetary value to measurable biodiversity outcomes, such as habitat restoration or species protection, and package them in a purchaseable unit or ‘credit’. Unlike carbon credits, which primarily focus on compensating emissions, biodiversity credits address the broader challenge of biodiversity loss while often providing indirect carbon sequestration benefits.

For example, biodiversity credits from the

Iford Biodiversity Project

are restoring habitats that increase populations of 540 protected species. These credits offer companies a transparent, impactful way to invest in biodiversity and support sustainable development.

The biodiversity credits eBook provides a more detailed explanation of what the credits are, including case studies and the context of the wider biodiversity credit market.

forest-adaptation-luckaitz-valley-germany-1

Diversifying woodland and reforesting with native species is a key tactic at the Forest adaptation project in the Luckaitz Valley, Germany

2. Discover why businesses should pay attention

The business case for biodiversity credits is becoming increasingly clear. Investors, regulators and consumers are demanding greater accountability in corporate sustainability efforts. Businesses that take proactive steps to protect biodiversity can strengthen their brand reputation, mitigate risks and enhance long-term resilience.

Your business can expect to see benefits including:

  • Regulatory preparedness

    : The Kunming-Montreal Global Biodiversity Framework aims to conserve 30% of the planet’s land and water by 2030, encouraging businesses to adopt measurable biodiversity strategies. Regulations like the EU Corporate Sustainability Reporting Directive (CSRD) also require companies to disclose their impacts on nature, accelerating demand for biodiversity credits.

  • Risk mitigation

    : Biodiversity loss poses direct risks to supply chains, particularly in industries reliant on natural resources. Investing in biodiversity initiatives helps reduce exposure to these vulnerabilities.

  • Stakeholder engagement

    : Consumers and investors are prioritising brands that adopt nature-positive strategies, boosting demand for biodiversity credits. In our Beyond Carbon Consumer Survey Report, 88% of consumers believe businesses should actively support biodiversity protection and restoration.

A view from the Iford biodiversity project

Species-rich grassland meadow at the Iford biodiversity project.

3. Make informed decisions about biodiversity credits

As biodiversity credits gain traction, it’s essential for sustainability leaders to understand how they work and how they fit into a broader ESG strategy. That’s why we developed a comprehensive eBook to provide clarity on biodiversity credits, how they differ from carbon credits, and how they can be integrated into corporate sustainability efforts.

Our guide to biodiversity credits explores:

  • How biodiversity credits fund reforestation, habitat restoration and conservation projects, and the metrics used to track their impact.

  • Key drivers behind biodiversity credit growth, including: policy shifts from COP16, heightened corporate ESG commitments, and increasing consumer demand.

  • Challenges in the biodiversity credit market, such as verification and transparency, and how innovations in NatureTech, like eDNA, are addressing these issues.

  • Real-world case studies demonstrating how companies are leveraging biodiversity credits for meaningful environmental impact.

Practical guidance on how businesses can begin their biodiversity journey and invest in high-integrity biodiversity credits to upgrade their ESG strategies.

Earthly High-quality Projects - Mangroves in Madagascar

Mangrove regeneration in Madagascar is reforesting an area to help with flood mitigation, storm damage and supporting the local fishing economy.

4. How to take the next step and connect with nature

Biodiversity credits represent a significant opportunity for companies to take meaningful action towards nature restoration. By investing in biodiversity, businesses can contribute to the protection of ecosystems, strengthen their ESG commitments, and stay ahead of regulatory and market expectations.

To learn more, download the eBook and gain the insights needed to make informed decisions about biodiversity credits.

We also have recordings of

previous biodiversity-credit-themed webinars

, and a ‘Business and biodiversity’ blog series for you to dig into.

If you’re ready to discuss how biodiversity credits could fit into your company’s sustainability strategy, our team at Earthly is here to help -

get in touch

today for a nature-positive legacy.

Tree planting central scotland image

The restoration of the Scottish landscapes through planting predominantly native tree species and enabling the creation of species-rich habitats.

Access the eBook here.


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