Businesses can unlock a nature-positive economy with an enabling policy framework from government

• Nature is ‘critical infrastructure’ for the economy. Nature loss presents systemic risks to businesses and the financial system, from disrupted supply chains to diminished economic growth. However, policy uncertainty hampers business contributions towards a nature-positive economy.
• New briefing from the Aldersgate Group sets out why nature is vital for the UK economy, and the policy and regulation required from government to enable businesses to contribute to the protection and restoration of the natural environment.
• The report finds that clear frameworks are required to align environmental goals with business operations, ensuring a level playing field and robust compliance mechanisms. It calls for the government to:

1. Create an effective framework for delivery with the Environmental Improvement Plan, Land Use Framework and plans to meet nature targets;
2. Support the development of nature markets to scale and leverage private investment for nature where appropriate;
3. Set up a taskforce and sandbox to accelerate the design of creative and environmental regulation, alongside effective resourcing for regulators and local authorities to play their role effectively.
4. Increase the ambition of Biodiversity Net Gain and develop a delivery plan to meet the target to protect at least 30% of land and sea for nature by 2030.

A new briefing launched today by the Aldersgate Group calls on the government to align policy and regulation to enable business action that can unlock the economic and ecological potential of a nature-positive economy.

The UK stands at a pivotal moment for nature recovery. Bold leadership, clear frameworks and collaborative efforts are required to drive a transition from ambition to tangible delivery.

Nature is vital to the economy, with 55% of global GDP moderately or highly dependent on it.[i] However, successive UK governments have struggled to progress towards legally-binding environmental goals.

Nature loss presents systemic risks to businesses and the financial system, from disrupted supply chains to diminished economic growth. In contrast, investing in nature recovery offers significant opportunities in sustainability-linked markets and nature-based solutions.

Businesses are ready to invest in solutions that protect nature while driving growth, innovation and resilience. However, they need clear and actionable frameworks to align environmental goals with business operations, ensuring a level playing field and robust compliance mechanisms.

The briefing sets out specific actions the government can take to create an effective framework for delivery with the Environmental Improvement Plan, Land Use Framework and plans to meet key targets. Its findings reflect extensive engagement with businesses and environmental NGOs and the report features real-world examples of business action, highlighting the potential opportunities for business investment to protect nature while driving growth, innovation and resilience. Read the full list of recommendations in the Notes to Editors below.

Rachel Solomon Williams, Executive Director, Aldersgate Group, said: “To deliver a thriving economy and improved living standards in the future, the government must ensure that we protect and restore our natural environment. Nature underpins all the elements that enable businesses and people to prosper, including playing a crucial role in ensuring we can adapt to the impacts of climate change. The UK must deliver a policy landscape that maximises the ability of both the private and public sectors to restore biodiversity and guard against future environmental degradation.

Whitni Thomas, Head of Corporate Finance, Triodos Bank UK, said: “We’ve been actively developing new business models to finance nature-based solutions in the UK for a number of years now. It is clear that we will not begin to address the decline in nature, and associated ecosystems services essential to our economy, without concerted effort and significant investment. However, most important is a coherent and joined up plan for delivery of a wide range of vital measures. This paper from the Aldersgate Group lays out the job at hand and the interconnected steps needed to address the nature crisis in the UK.”

Karen Ellis, Chief Economist at WWF-UK, said: “The transition to a nature-positive economy is one of the biggest economic opportunities of the 21st century. However, to unlock private investment and action policymakers need to provide more clarity on how businesses and financial institutions are expected to contribute to national and global environmental targets. This report responds to this need by identifying key areas that policymakers and regulators should prioritise to accelerate the transition to a nature-positive economy.”

Duncan Price, Sustainability/Climate Global Lead at Buro Happold, said: “The preservation of nature is fundamental to societal and economic prosperity. Whilst recent developments in biodiversity policy are welcome, a clearer framework is needed to facilitate better business engagement and encourage more holistic measures on nature and its wider societal and economic benefits. Taking action on nature can deliver multiple business benefits, but certainty and clarity are needed to drive investment at scale.”

—NOTES TO EDITORS—

Key Recommendations from Why Nature Matters for Business

1. Use the Environmental Improvement Plan to create an effective framework for delivery and launch the development of sector nature-positive pathways.
2. Set out a roadmap for implementing mandatory Taskforce on Nature-related Financial Disclosures (TNFD) reporting to increase awareness of businesses’ nature dependencies and impacts.
3. Use the Land Use Framework to give businesses confidence on what actions to take for nature recovery and nature-based climate change adaptation and mitigation, where and how.
4. Develop a delivery plan to meet the target to protect at least 30% of land and sea for nature by 2030.
5. Support the development of nature markets to scale with confidence and leverage private investment for nature where appropriate.
6. Increase the ambition of Biodiversity Net Gain and progress next steps towards Environmental Net Gain or Environmental Benefit for Nature.
7. Set up a taskforce and sandbox to accelerate the design of creative and effective environmental regulation to encourage innovation and partnerships in the private sector.
8. Efficiently resource regulators and local authorities to play their critical role supporting delivery, monitoring and enforcing regulation to build private sector confidence to invest.

About us

The Aldersgate Group is an alliance of leaders from business, politics and civil society that drives action for a sustainable economy. Our members include some of the largest businesses in the UK, leading NGOs, professional institutes, public sector bodies and trade associations. Our mission is to trigger the change in policy required to address environmental challenges effectively and secure economic benefits for the UK in doing so.

[i] PwC (2023), Managing nature risks: from understanding to action.