COMMENT After two years of delays COP15, the global biodiversity conference, has kicked off in Montreal. On the table for global discussion and commitment is the Post-2020 Global Biodiversity Framework. The framework includes 21 targets to halt and reverse biodiversity loss by 2030.
Back in 2010, a strategic plan was set out which included a commitment to at least halve the loss of natural habitats by 2020. However, over the past decade natural habitats have continued to disappear and vast numbers of species remain threatened by extinction from human activities. In the UK we have lost nearly 50% of our biodiversity since 1970s, mostly through the impact of increasing agriculture, urbanisation and land use change.
The real estate sector is both heavily reliant on nature and has a direct impact on its loss; as such, it is clear that the sector has a key role to play in protecting and restoring biodiversity.
Mandatory reporting against the Taskforce on Nature-Related Disclosure is one potential outcome from COP15, and alongside UK legislation such as biodiversity net gain, the sector needs to ensure that its sustainability plans incorporate not just net zero carbon, but nature and biodiversity too. Leading investors have the chance to capitalise on the social, commercial and environmental benefits of restoring our natural environment and adopting nature-based solutions while advancing our global progress towards a resilient, net-zero future.
Prioritising nature in transition plans will ensure that the real estate sector can drive forward progress towards an equitable and resilient future while capitalising on the wide-ranging benefits that investing in nature can provide.
Understanding how and where to start addressing the biodiversity crisis is complex. For real estate, whether you are an investor, developer or asset manager, here are five steps you can take now to start embedding nature in your sustainability strategy:
1. Understand your reliance and impact on nature – identify risk in your portfolios and existing and future investments. It is anticipated that one of the outcomes from COP15 may be a mandatory requirement for all large businesses and financial institutions to assess and disclose their impacts and dependencies on biodiversity by 2030. Fiona Ross, senior associate at Pinsent Masons, says: “This will enable investors, shareholders and funders to see the nature-related financial risks that a business is exposed to and is likely to result in increased scrutiny and demands for action in terms of mitigating these risks as part of a business’s wider corporate strategy. Savvy investors will look for corporate strategies that are integrated in relation to matters such as climate change and biodiversity, adopting a joined-up approach to reducing impacts and mitigating risks.”
2. Look beyond biodiversity net gain for new developments – look to deliver nature-based solutions that also provide wider environmental and social gain over and above biodiversity enhancements. Delivering biodiversity net gain requirements can be done in a way that can support wider ESG commitments and enhance investor appeal. This approach is supported by the UK Green Building Council, and its senior adviser for resilience and nature says: “Biodiversity and environmental net gains are critical for achieving climate, ecological, and societal resilience in the built environment. Nature-based solutions offer a unique and effective opportunity to address the crises we currently face, and it is essential that they become commonplace in both new and retrofitted development.”
3. Invest in nature as part of your transition plan to net zero. Investing in nature can support transitions to net zero. This could be through investing to protect existing natural resources that are at risk directly or through your supply chain, through prioritising nature-based solutions in carbon offset plans, or through investing in nature-based solutions that build climate resilience and reduce risk such as sustainable drainage systems that reduce flood risk or mitigate the urban heat island effect.
4. Identify opportunities to restore and protect nature across your portfolio/for assets you manage – since Covid, evidence suggests that accessibility to natural, green spaces has increased in importance for individuals both in where they live and where they work. Identifying where you can enhance nature across your portfolio can potentially increase occupier appeal, improve employee/occupier health and wellbeing and provide enhanced social value to local communities.
5. Collaborate in places where greatest impact is needed. To fully protect and restore our natural environment there is a need to work within and across sectors to deliver impactful projects.
At JLL, our clients are also recognising the need to take action. Georgie Nelson, head of real estate ESG at abrdn, says: “For real estate investors, understanding the underlying impacts from real estate on nature will help to both minimise risk and also provide opportunities to enhance investment performance. Within real estate, understanding and creating a positive impact for nature is threefold: we need to look at how our existing land use for buildings can be optimised to protect and promote biodiversity, which comes with additional wellbeing benefits for occupiers; review the impacts on nature within our supply chains, such as construction materials to minimise risk; and engage with tenants to understand and mitigate their impacts.”
Amanda Skeldon is director of climate and nature at JLL
