Abstract:

Biodiversity credits could benefit nature, people and business. When strongly assured for high environmental and social integrity, credits can generate benefits for nature and Indigenous peoples and local communities (IPs and LCs), while simultaneously enabling private sector value creation. High-integrity biodiversity credits could create value for businesses by reducing exposure to physical nature risks, supporting positive nature outcomes aligned with consumer preferences, keeping pace with regulatory changes, supporting a robust social licence to operate, reducing reputational risks, securing access to competitive finance, supporting talent acquisition, and increasing employee motivation and retention. Improper use of biodiversity credits may harm nature and local communities, as well as exposing buyers to strategic, operational and reputational risks. This report offers initial guidance for companies to take early action with high integrity on biodiversity credits while standards and advice are evolving