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Biodiversity
17.12.2021
Advancements in Voluntary Carbon Markets
With increasing pressure on the private sector to actively participate in a “net-zero” future, the role of collaborative …
How all business can help biodiversity
Businesses are becoming increasingly comfortable with addressing their carbon impact, however many organisations find themselves far removed from nature and unsure how to mitigate their impact on biodiversity.
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Want a more detailed look at biodiversity credits?
Watch our webinar recording where we took a deep-dive into the methodology behind the credits and shared more about our first partner: the Iford Biodiversity project.
What is causing biodiversity loss in the UK? How are the biodiversity and climate crises linked?
Nature in the UK is facing significant challenges and has been doing so for some time. Urbanisation and agricultural expansion (with a profit-over-people mentality) have led to
- two key drivers of biodiversity decline. Intensive farming practices, including the use of pesticides and fertilisers, have also negatively impacted soil health and water quality, further threatening wildlife. Climate change then exacerbates these issues by altering the environment and putting stress on species that are unable to adapt or recover fast enough.
Other factors, including pollution, invasive species and over-exploitation of natural resources further contribute to the degradation of ecosystems and biodiversity loss. The
, such as peatlands, woodlands and meadows, have been reduced in size, connectivity and quality, leading to a significant decline in native species and biodiversity overall. The cumulative impact of these factors has made the conservation and restoration of biodiversity in the UK a critical issue.
Biodiversity projects need support from business and the private sector to flourish
Thankfully, projects and organisations around the UK have been established to halt, reverse and better prepare for impacts on nature. Widely varying in scale and focus, these projects aim to restore natural habitats, protect endangered species, and re-establish ecological balance.
Importantly, the best of these projects also seek to benefit local people. For example, this could be through flood protection, job creation, food production or education opportunities. Engaging local communities, creating awareness and fostering a connection with nature, is vital for the long-term success of a project’s efforts.
Many biodiversity projects in the UK receive money from grants, philanthropy and some support from the government. However, there is a huge gap between the level of funding available and the funding required to achieve the scale, quality and pace of biodiversity recovery needed.
Better funding enables the implementation of conservation strategies such as rewilding, land purchasing, large-scale habitat restoration and the creation of protected areas. It also helps with long-term planning, training and recruitment, and will help the UK climb from its position as one of the most nature-depleted countries in the world.
Woodland regeneration by The Future Forest Company in Scotland
The opportunity for businesses to connect to nature
Consequently, there is an opportunity for the private sector to contribute to nature recovery and support biodiversity projects.
Businesses and corporate organisations often find themselves far removed from nature. Oftentimes, it’s not obvious where the natural world fits into a supply chain; this is especially the case in industries such as tech or finance. In addition, businesses may be based in busy city centres, or have remote workers spread around the world. In this case, the most effective way to help nature may be through off-site projects better positioned to protect and restore threatened or degraded habitats and the wildlife within them.
Nature’s needs are clear, but we also know that the world of business is changing and responsible businesses want to do something to help. Alongside mitigating some impact on the environment, the benefits of supporting biodiversity projects include brand reputation, audience engagement, staff and customer loyalty and attracting a new, nature-conscious customer base.
Why Earthly created Voluntary Biodiversity Credits
Thankfully, businesses are becoming increasingly comfortable addressing their
carbon
impact through carbon accounting, reducing their carbon footprint and purchasing carbon credits. Their new challenge is understanding how they can address their ‘nature footprint’ and
.
Earthly’s solution is to partner with high-integrity biodiversity projects and allocate 3x3m squares of land as “
” that businesses, organisations and local councils can financially support in exchange for the credit.
Currently, any organisation can buy carbon credits, but only property developers in England can purchase
. Our
sit somewhere between the two: companies can support nature and do it voluntarily.
We assess biodiversity projects using an adapted version of Earthly’s industry-leading nature-based project assessment. This process looks at 100+ data points to build a picture of a project’s quality and longevity as well as its positive impact on local people and biodiversity.
Currently, we leverage
that are already set up to provide DEFRA’s BNG units. In this way, we have access to these units (which are generally at a price point inaccessible to SMEs) and we divide each unit up into smaller, lower-cost, 3x3m squares. This unique structure allows each Voluntary Credit to be offered at between £50 - £250 (depending on the ecosystem).
To improve transparency and remove the risk of double-counting (both lessons gleaned from the Voluntary Carbon Market), we have created a public biodiversity credit ledger. Each credit sale is registered through Earthly’s ledger, which integrates What3Words technology to map every square uniquely, avoiding double claiming. The credits are secured for 30 years.
Stedham Common in the South Downs National Park. Credit: Sam Moore/SDNPA
The business benefits of purchasing Voluntary Biodiversity Credits
Supporting
offers companies a valuable opportunity to address their environmental impact proactively and voluntarily. This involvement goes beyond mere compliance with regulations and sets businesses apart with many benefits:
1. Enhancing brand reputation
With rising consumer awareness and concern about environmental issues, businesses that actively support biodiversity are seen as responsible and forward-thinking. This positive perception can translate into stronger customer loyalty, increased brand value and a competitive edge in the market.
2. Mitigating supply chain and environmental risks
Biodiversity is integral to the stability of ecosystems that many industries rely on. For sectors like fashion, food and even technology, which depend on natural resources, biodiversity loss can lead to supply chain disruptions. By investing in biodiversity projects, companies can help sustain the ecosystems that underpin their supply chains, thereby mitigating risks and ensuring long-term operational stability.
3. Meeting investor and regulatory expectations
Companies that engage in biodiversity initiatives demonstrate a commitment to sustainable practices, which can attract investment and meet the expectations of stakeholders.
4. Get ahead of potential regulatory requirements
While regulatory frameworks like the UK's Biodiversity Net Gain policy are currently limited in scope and application, voluntary engagement can prepare companies for potential future regulations or required commitments to nature, and demonstrate leadership in sustainability.
5. Strengthening community and employee relations
Employees often take pride in working for a company that actively contributes to environmental stewardship, leading to higher job satisfaction and retention.
6. High standards and transparency
Investing in high-integrity biodiversity projects that are rigorously assessed and independently verified means transparency and data that will support businesses in their own ESG strategy and reporting.
In conclusion
The UK is facing a biodiversity crisis. However, much is being done to find solutions which can accelerate funding to biodiversity protection and restoration. Consequently, businesses now have an opportunity to identify their 'nature footprint' and contribute to the protection and restoration of ecosystems, helping to secure a more sustainable and biodiverse future.
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Further resources we recommend
https://impactalpha.com/can-the-uks-market-for-trading-nature-credits-deliver-biodiversity-net-gain/
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