The Nature Brief for Business.
The Big Picture
Investor and regulatory momentum around nature is building. The EU is considering integrating nature credits into corporate reporting, while major asset managers begin aligning with TNFD frameworks. While global biodiversity targets remain challenging, countries and companies are advancing concrete nature-based strategies. Nature markets are attracting growing investor interest, driving demand for high-integrity credits and clearer governance. At the same time, nature tech is scaling, with increasing recognition that Indigenous knowledge and local context are key to effective solutions.
Key movements this week:
- Nature is becoming a focus in corporate strategy and reporting, as disclosure frameworks evolve and investor scrutiny of nature-related risks increases.
- Biodiversity targets, credit markets, and nature-based solutions remain in early stages, with efforts underway to build credible structures, partnerships, and standards.
- Nature tech and natural climate solutions are drawing growing interest, though challenges around integration, governance, and quality persist.
Market Essentials
Finance: Investor appetite for nature markets grows, with major funding commitments underway.
- Nature markets are projected to reach $48.7 billion by 2034, according to new research. This growth outlook reflects rising investor interest in natural capital and momentum from international policy targets.
- A BNP Paribas survey finds nearly 90% of institutional investors remain committed to sustainable investing despite geopolitical tensions. While public messaging around ESG has softened, underlying investment practices continue to support nature-positive finance.
- The UN Global Compact has released guidance to mobilise finance for the $5.5 trillion sustainable ocean economy. The framework aims to help investors identify opportunities that balance sustainable ocean use with ecosystem protection.
Reporting: Regulatory and investor pushes drive nature integration into corporate reporting.
- The EU Committee of the Region’s draft recommendations propose integrating nature credits into the CSRD and national environmental plans. This signals a potential regulatory shift that could make reporting on nature credit activities a compliance requirement for companies across the bloc.
- Schroders has released its first TNFD-aligned nature report covering risks and dependencies across its investments. The move demonstrates how large asset managers are beginning to assess and disclose nature-related financial risks and opportunities.
- A new Oxford Law Pro guide outlines applicable nature-related data types for corporate and investor use. It provides a practical resource to help market participants meet evolving nature disclosure requirements.
Targets: Regulatory and investor pushes drive nature integration into corporate reporting.
- Only 2% of EU seas are currently covered by Marine Protected Areas with management plans, WWF warns. This significant gap is likely to hinder progress toward national and international 30×30 conservation targets.
- South Korea has launched a national 30×30 Alliance to advance biodiversity goals through expanded OECMs. This collaborative approach aims to accelerate progress on global biodiversity commitments via government, corporate, NGO, and academic partnerships.
- Belize has committed to restoring and protecting significant mangrove areas by 2031 under its Paris Agreement targets. The effort integrates a key nature-based solution directly into national climate and biodiversity strategies.
Trend Watch.
Biodiversity Credits: Integrity frameworks and regulatory structures evolve amid social equity concerns.
- The Biodiversity Credit Alliance has begun developing an independent oversight mechanism for voluntary biodiversity markets. This is a critical step toward building market credibility, investor trust, and outcome integrity.
- Peru and Chile are advancing state-led frameworks to regulate emerging biodiversity credit markets. Government involvement could provide needed legitimacy and attract investment while addressing social and environmental risks.
- A new report highlights risks from large-scale land concentration linked to biodiversity credit markets. The findings raise social equity concerns and emphasize the need for careful market design to avoid unintended consequences.
Nature Tech: Scaling fast, with an increasing focus on inclusivity.
- Google is backing AgTech projects that aim to save 2 billion litres of water on US farms. These investments illustrate how technology is being applied to address natural resource challenges such as agricultural water efficiency.
- Conservation technology deployed without Indigenous knowledge and local context faces limits, experts warn. Integrating traditional knowledge is increasingly recognized as essential for the effectiveness and legitimacy of nature tech solutions.
- Qatar has launched a National Biodiversity Database to support conservation planning. The digital platform equips policymakers with data tools to map, track, and manage biodiversity resources at a national level.
Nature & Net Zero: Ongoing debate over integrating natural climate solutions into corporate net-zero pathways.
- The American Forest Foundation has published a concept paper detailing an innovative approach to ensuring NCS credit quality and integrity. This addresses one of the biggest challenges in scaling natural climate solutions — building market and corporate confidence in credit verification.
- The SBTi’s updated Corporate Net-Zero Standard is facing criticism from stakeholders. Concerns focus on missed target management and the flexibility of using high-quality carbon credits, highlighting a key area of market demand for clearer guidance.
- Microsoft has purchased 60,000 soil carbon credits from Indigo Ag. The transaction demonstrates growing corporate demand for nature-based credits, particularly those linked to sustainable agricultural practices.
Quick Hits.
Policy:
- The UNDP explained outcomes from the Hamburg Sustainability Conference, including a commitment to responsible AI for sustainable development.
- The World Resources Institute analyzed countries’ updated Nationally Determined Contributions (NDCs), providing a snapshot of global climate plans.
- The EU released its Ocean Pact ahead of the UN Ocean Conference, committing to an Ocean Act.
Markets:
- Energize Capital raised $430 million for a climate solutions venture fund.
- Brazil announced a record R$825 million allocation from the Amazon Fund for deforestation prevention and monitoring.
- The Global Environment Facility (GEF) approved $40 million for projects tackling biodiversity/climate crises in Africa and Asia Pacific.
People:
- The growing Rights of Nature movement, led by tribal nations and grassroots communities, aims to establish legal rights for ecosystems.
- A report released this week said that the accumulation of vast amounts of land by a small group of corporate global landowners could fuel inequality and nature loss, with the biodiversity credit market seen as posing additional risks in the near future.
- The Canadian province of British Columbia joined forces with five First Nations on land use planning.
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