The Nature Brief for Business.

The Big Picture

Nature markets, finance, and corporate accountability are advancing with new momentum. The biodiversity credit market is expanding, and nature tech continues to scale rapidly, attracting substantial investment. Reporting frameworks are evolving, with the EU simplifying sustainability disclosure requirements while maintaining focus on transparency. Global initiatives to set science-based targets are extending to oceans and seafood, while carbon markets remain a focal point for nations leveraging natural assets to drive finance.

Key movements this week:

• Biodiversity credit projects are scaling, with new methodologies emphasising scientific rigour and additionality.
• Nature tech is transforming environmental management, offering sophisticated tools to assess nature-related risks and integrate them into business decisions.
• Regulatory shifts and investor pressure are driving stronger corporate accountability on biodiversity and climate impacts, with new standards and frameworks shaping business strategy.

Market Essentials

Reporting: The landscape of nature-related corporate disclosure is evolving, with new guidance emerging and existing regulations facing adjustments, signalling a growing emphasis on transparency and accountability.

• The UK national standards body revamps nature market principles. The BSI is asking companies to engage in creating a principles standard for the nature credit market. This initiative will accelerate the growth of nature-friendly investments across the UK by giving businesses confidence that their contributions are delivering real, measurable benefits for the natural environment.
• AXA XL and Nature Positive release guidance for corporate nature risk assessment. The release of this report aims to help businesses understand and assess their impacts and dependencies on nature, highlighting the increasing focus on integrating nature-related risks into business strategy.
• The European Council approved the ‘omnibus’ proposal, including a two-year CSRD delay impacting biodiversity impact assessments. Despite aiming to ease burdens, stakeholders worry about weakened market signals and reduced nature risk transparency. While driven by political and economic shifts, financial institutions and investors are still expected to seek robust disclosures, potentially creating a gap between legal requirements and market expectations.
• South Korea launches natural capital disclosure support association for corporations. This initiative indicates a growing international recognition of the importance of natural capital disclosure and aims to enhance corporate capabilities in this area.

Finance: Innovative financing mechanisms and growing investor interest are emerging to channel capital towards nature conservation and restoration, despite ongoing challenges in scaling nature finance.

• Ghana initiative aims to mobilise $25B for carbon and biodiversity projects. This public-private partnership aims to generate significant investment-grade carbon and biodiversity credits, showcasing the potential for large-scale nature finance initiatives in Africa.
• LGIM unveils $235M nature and social strategy. The asset manager’s launch of a private debt strategy focused on nature and social outcomes demonstrates growing interest from traditional financial institutions in nature-positive investments.
• Brazilian bank issues R$1.4B bond linked to biodiversity and social initiatives. This bond issuance signifies the increasing use of thematic bonds to finance biodiversity conservation and social programs.
• Australia commits funding to Nature Repair Market projects. Government funding underpinning the Nature Repair Market signals a commitment to catalysing private investment in nature restoration.

Targets: The Science-Based Targets Network (SBTN) continues to shape corporate climate action, with new guidance for the ocean. Ongoing SBTi debates discuss the role of carbon credits, while other initiatives are promoting nature-positive practices.

• SBTN launches first-ever methods for ocean science-based targets, starting with the seafood sector. This provides a clear framework for companies to address their impact on marine ecosystems.
• SBTi proposes new rules and holds line on carbon offsets. The body has proposed updated rules for setting high-quality climate goals but maintains strict limits on some carbon credits, influencing how companies approach their emissions reduction strategies. The proposal encourages purchasing carbon credits for broader climate impact and aims to support smaller firms and those in emerging markets.
• Nature-positive investor initiative engages with major clothing brands. A group of 16 investors is urging clothing companies to commit to nature-positive practices in their supply chains, signalling growing investor pressure for companies to address their broader environmental impacts.
• The UK government announces plans to reduce pesticide use by 10% by 2030. This policy signals a government-level target aimed at improving biodiversity and ecosystem health.

Trend Watch.

Biodiversity Credits: The biodiversity credit market is gaining momentum with new projects, evolving standards, and increasing investor interest, although fundamental rules like additionality are still being debated.

• Life Terra is preparing to expand its portfolio of biodiversity credit projects in Europe. This indicates a growing supply of biodiversity credits and the potential for market expansion beyond carbon.
• Oxford academics propose set of rules for nature markets, with additionality being the most important. This highlights the ongoing efforts to establish scientific credibility and environmental integrity in nature markets.
• UK financial services can support nature markets expansion, professional body says. TheCityUK’s policy report suggests that financial infrastructure is well-placed to develop and facilitate the growth of biodiversity markets.

Nature Tech: Technology continues to play an increasingly crucial role in monitoring, assessing, and managing nature, attracting investment and fostering innovation.

• Map the Biodiversity Sector. The launch of the Sector Map for Biodiversity by The Nature Tech Collective and Conservation International aims to identify and categorise organisations delivering biodiversity technology, improving understanding and connections within the nature tech space.
• NatureAlpha launches upgraded AI-powered platform for nature-related risk assessment. This highlights the development of sophisticated tools for financial institutions to integrate nature into their decision-making.
• Agri-tech firm secures $10M investment to expand operations across India. Investment in agri-tech can contribute to more sustainable land management practices.
• Acoustic Monitoring Enhances Forest Management Strategies. This showcases the use of technology for better understanding and managing ecosystems.

Quick Hits.

Policy:

• The UK government has announced plans to plant 20 million trees across Bristol, Wiltshire, Gloucestershire, and Somerset by 2050, creating at least 2,500 hectares of new woodland through the Western Forest project, which aims to help the country meet its biodiversity targets.

Investment:

• New Forests has partnered with Oji Holdings to establish the Future Forest Innovations Fund, a corporate forest investment fund registered in Singapore, with an almost $300 million investment from Oji.

People:

• Indonesia’s Indigenous Akit community faces exploitation and land loss. The community, is experiencing negative impacts on their well-being and is being deprived of traditional lands and resources by actors including corporations, local brokers, and government entities. The Akit people are vital stewards of the rivers and coastline in Sumatra.

Your Take?

What matters most to your business? What do you want to see next?

📩 Reach out at hello@wildsight.co and let us know.

Your take will shape what we cover next.