Amid growing investor demand for nature positive investments, a consultation on an overarching principles standard for UK nature markets has been launched.
The UK National Standards Body, BSI, has announced the consultation today (21 March) on BSI Flex 701 Nature Markets – Overarching Principles and Framework – Specification v1.0.
This specification is designed to bring “clarity and consistency” to the market by establishing a standardised approach for investments “that can boost confidence in the integrity of UK nature markets”, Scott Steedman, director-general, standards, BSI, said.
The standard outlines requirements for the design and operation of high-integrity nature schemes, and processes to generate, trade and store nature units. It is intended to be used by all nature market participants, especially those involved in creating and trading nature units.
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Steedman said: “Nature based solutions have a central role to play in reaching Net Zero and meeting global environmental challenges.
“These newly agreed principles offer an essential foundation to help to guard against greenwashing, encourage investment into an important, emerging market and ultimately accelerate progress towards a sustainable world.”
The standard is the first in a suite of nature investment standards being developed with funding from the UK government. It Is also designed to support the UK’s environmental goals including reversing biodiversity loss and achieving net zero.
Green finance minister Lord Benyon said: “Nature markets will play a crucial role in mobilising private finance for nature recovery. A strong policy framework will boost investor confidence in nature markets, creating the foundation for these markets to grow.”
Globally, two thirds of investors plan to increase their nature-focused allocations, according to a survey conducted by Pollination at the end of last year. In the UK, the LGPS funds have recently expanded their investments in timberland and DC provider Nest is currently on the lookout for a timberland manager.
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