How to be nature positive: the only route to net zero

You can’t be net zero without being nature positive. Many firms know it, and many are acting on it.

One company taking ambitious action for nature is cosmetics brand L’Oréal. In addition to its own commitments to decarbonisation and nature recovery, L’Oréal has set up the €50m Fund for Nature Regeneration. The fund invests in projects that contribute to the conservation and the regeneration of marine, coastal and forest ecosystems. It's been open for applications from 2020 and has already invested in several projects ranging from restoring mangrove forests in Kenya to rewilding country estates it the UK.

L’Oréal has a vested interest in biodiversity – it uses raw materials from around 313 species of plants in its products.

Healthy natural systems then, are good for business. But that doesn’t just count for cosmetics.

What is nature positive?

Nature, meaning the ecosystems that enable life on Earth to function and exist, is in rapid decline. As of 2019, 1,000,000 species are under threat of extinction. Our ability, as a planet, to grow food for its 8 billion inhabitants is in question. Not to mention the estimated $44trn of economic value at risk from biodiversity loss.

Seagrass on the ocean floor can store 400kg of carbon per hectare per year – yet in the last 40-years one third of seagrass meadows have been lost globally. Tropical rainforests play a vital role in taking carbon out of the atmosphere and storing it – but they are under constant threat from logging and agriculture. While here in the UK, we are only just beginning to learn about our own, rare, temperate rainforests and the impact on them from livestock grazing.

Net zero and nature positive must no longer be considered in isolation. Nature supports the regulation of the climate. Habitat loss due to human activity reduces that regulation. Climate change then drives further biodiversity loss. It is a dual crisis and must be tackled as such. Reducing carbon emissions alone is not enough keep the UK on track for net zero and mitigate the worst effects of climate change.

The term “nature positive” is a call to transform action on a global scale to halt and reverse this loss of our natural systems. It is a rallying cry for governments, citizens, and businesses to assess their impact and take positive steps towards protecting and restoring nature.

Nature positive is good for business

A recent survey by EY shows that 69% of more than 500 global companies report higher-than-expected financial returns on climate initiatives benefiting the planet. In its 2022 Sustainable Value Study, EY’s research shows that those companies taking the most ambitious climate action are also seeing the greatest financial benefits. One of the biggest barriers it identified to companies acting on climate change is concern that it may harm financial performance. But it’s those taking action that are seeing higher than expected returns.

And it isn’t just brand perception or consumer choice that is having an impact. The companies taking the most ambitious steps are also seeing benefits in staff retention and recruitment.

There are other barriers to companies taking climate action too. The Nature of Business report, published by the CBI in collaboration with the University of Exeter, highlights a lack of understanding among UK businesses as to how to develop and implement plans to address biodiversity impact. This is despite almost three-quarters of the businesses consulted having nature plans discussed by boards.

How to act one step at a time

Organisations such as the World Wildlife Fund (WWF) and the Royal Society for the Protection of Birds (RSPB) offer firms step-by-step guidance about credible business action on nature positive and net zero.

The first step is always to assess and prioritise. That means to assess aspects of nature such as biodiversity, fresh water, land, or oceans that may be relevant to activity and the value chain and prioritise impacts, dependencies, and opportunities for regeneration.

Set a baseline and commit to ambitious, time-bound, science-informed goals and targets to both halt and reverse the loss of nature.

Third is measure and value. Use validated indicators to measure nature outcomes that inform decision-making. Set action in place to mitigate the impact on nature of business operations.

Next is to transform by collaborating to achieve nature-positive outcomes across all areas of control and influence.

Finally, disclose and report on impact and progress – be prepared to measure success but equally prepare for the opposite and be clear on what to improve.

Businesses turning words into action

Like L’Oréal, many firms are taking bold steps to improve biodiversity and embrace the global goal for nature.

Sky Group has worked with the WWF and educational institutions on Project Seagrass. The project raises awareness of seagrass meadows and their importance to biodiversity and carbon storage. It also advocates for protection and restoration and provides platforms for networking and information sharing for seagrass projects around the world.

Microsoft is building a Planetary Computer to store data and act as global information sharing platform with an intuitive interface.

Barratt Developments, the largest builder of new homes in the UK, has partnered with the RSPB to develop new ways of working to build new homes and developments that make space for nature and wildlife, and to support the firm’s journey to nature positive.

Then there’s Spirax Sarco Engineering (SSE) in southwest England. It produces products for the control and use of steam and other industrial fluids. SSE has committed to establishing a target of biodiversity net gain by 2030, identifying any harmful direct impacts and dependencies the business has on nature and biodiversity and setting targets for reducing them. Engaging with biodiversity consultancy organisation Nature Positive, SEE has committed to publishing results of its progress.

Some of these investments are the top of the tree when it comes to climate action, but right down the lower branches and all the way to the understory, businesses are climbing towards a nature positive world, and others could quickly join once common barriers are removed.

Waiting for government action and guidance on nature positive and net zero will take time. But there is no time to waste. The Nature of Business report cites a lack of expertise and understanding of the complex issues of biodiversity as one of the biggest barriers to businesses.

Third-party organisations are there to help businesses. Frameworks such as the Taskforce on Nature-related Financial Disclosures or the European Financial Reporting Advisory Group’s Global Reporting Initiative will guide firms through the steps they need to take. Organisations such as the UK Business & Biodiversity Forum and Get Nature Positive can provide more in-depth support.

Businesses have an opportunity to take the lead, collaborate, educate and drive action. It’s essential for life on Earth in the long-term and it’s good for business in the short. And those firms that act now will climb much higher in a nature positive world than those that wait.