The Nature Brief for Business.
The Big Picture
Nature policy is advancing across public and private sectors. Key sustainability reporting standards are evolving to guide strategy and simplify compliance. Nature finance innovation is accelerating, with global institutions investing heavily in biodiversity and restoration. Meanwhile, corporate nature and net-zero strategies send mixed signals, with some institutions announcing roll-backs, whilst others push forward with nature stewardship.
Key movements this week:
- Biodiversity credit markets continue to progress, with new frameworks and pilot launches.
- Nature tech focusses on AI and satellite tools scaling globally.
- Nature-net zero alignment continues to sharpen, driven by corporate demand and credible removals.
Market Essentials
Reporting: Companies guided toward stronger nature governance.
- GRI updates FAQs on CSRD to assist companies in using sustainability standards and navigating overlapping frameworks. The guidance helps businesses understand how GRI’s standards align with the EU’s latest Omnibus proposal and offers clarity amid evolving regulatory expectations.
- TNFD releases “Asking Better Questions on Nature” guide with 12 key questions for corporate boards to embed nature in strategy. The tool aims to improve oversight by equipping directors and executives with the right prompts to integrate nature into decision-making.
- Nature Positive Initiative launches pilot to test unified metrics for measuring progress towards a nature-positive future. The programme will assess the feasibility of applying a single set of indicators across sectors to enhance consistency in measuring and disclosing nature outcomes.
Finance: Major institutions double down on nature.
- The Asian Development Bank is advancing biodiversity financing, including biodiversity credits and nature-linked bonds in partnership with the UK. This includes exploration of biodiversity credits and nature-linked bonds.
- The Climate Investment Funds (CIF) commits $143M for nature-based solutions across Brazil, Kenya, and the Zambezi Basin, aiming to leverage $1B in co-financing. The investment will support reforestation, biodiversity protection, and ecosystem restoration through its Nature, People, and Climate program.
- The largest-ever meeting on nature finance was hosted in Chile last week. The Global Conference on Biodiversity Finance emphasised innovation, private sector role, and inclusion of Indigenous Peoples and Local Communities (IPLCs). The event underscored the importance of public-private collaboration and inclusive finance mechanisms like nature bonds and credits.
Targets: Institutions reassess climate goals.
- HSBC places 2030 financed emissions targets under review amid restructuring. The shift reflects strategic recalibration following leadership changes and growing scrutiny of the bank’s sustainability ambitions.
- $1.6 trillion investor coalition led by ShareAction pressures HSBC to reaffirm net-zero commitment. The investor group is urging the bank to provide greater transparency and recommit to science-based climate targets.
- South Yorkshire Pension integrates natural capital into its 2030 net-zero pathway. The move signals a growing trend among asset owners to embed nature considerations alongside decarbonization strategies.
Trend Watch.
Biodiversity Credits: Frameworks expand as market tools sharpen.
- Organization for Biodiversity Certificates pilots credit system in France. The framework is designed to drive adoption of biodiversity credits and build a robust national market.
- New UK-led project aims to generate 1M urban biodiversity credits in Formentera, Spain. The initiative explores how credits can support restoration in urban and peri-urban environments beyond traditional conservation.
- Study calls for improved credit accounting to lift prices and drive global conservation impact. Researchers emphasize the need for transparent, science-based methodologies to build investor confidence and ensure environmental integrity.
Nature Tech: Nature Tech: AI-enabled nature solutions scale.
- Dow and Google collaborate on AI to recycle soft plastics. The partnership targets material innovation and circular economy gains by improving the recyclability of complex plastic waste.
- Google launches AI for Nature Accelerator, supporting 15 startups addressing biodiversity, carbon, and degradation. Selected ventures are developing solutions from wildfire prediction to ecosystem monitoring and carbon credit validation.
- Madhya Pradesh pioneers India’s first AI forest alert system using satellite data and machine learning to detect illegal activity. The system enables real-time surveillance of forest areas, enhancing enforcement and proactive management.
Nature and Net Zero: Forestry and carbon removals surge.
- Microsoft signs deal with EFM for 700,000 forestry CDR credits and invests in EFM Fund IV. The agreement marks Microsoft’s first forestry-focused investment under its Climate Innovation Fund, helping secure long-term carbon removal supply.
- FSC and Mirova partner to funnel capital into FSC-certified projects in key regions. The Memorandum of Understanding aims to scale sustainable forestry across Latin America, Africa, and Southeast Asia by linking certification with credible climate finance.
- Study quantifies $200B in avoided climate damage by protecting vegetated coastal ecosystems. Coastal habitats like mangroves and salt marshes provide vital carbon storage and shield communities from storm surges and erosion.
Quick Hits.
Policy:
- EU Parliament votes to downgrade wolf protection; potential broader weakening of Habitats Directive.
- EU to release deforestation risk ranking; US/EU low-risk, Brazil standard-risk.
- Bank of England raises expectations for climate risk management across financial sector.
Investment:
- EU Environment Commissioner backs nature credit market development.
- Soil carbon credit momentum builds as Indigo Ag and Boomitra gain traction.
- BCG and American Forest Foundation call for trust-building in voluntary carbon markets.
People:
- Indonesia’s military-led farming program in Papua draws criticism for land rights and forest loss.
- 94% of Colombia’s timber exports (2020-23) lacked legal certification.
- Smallholders at risk in palm oil sector; lack of support threatens supply chain sustainability.
Your Take?
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