How Your Business Can Comply With New Biodiversity Targets
2023 will see major developments in environmental policy, hopefully bringing more certainty to business.
In March 2022, the government launched a consultation on environmental targets, intended to provide accountability on the UK’s green performance. Importantly for the economy, they’ll be legally binding when they come into effect.
Ahead of the launch of an Environmental Improvement Plan, the finalised biodiversity targets were published in December 2022. Below, we look at what the new targets cover and the impact they’ll have on your business.
What else can we expect in 2023 and beyond?
This will also be the year when the government’s first strategic nutrient neutrality scheme opens. It’ll replace temporary support for nutrient mitigation schemes and is expected to unblock stalled housing developments.
Meanwhile in November 2023, another transitional regime will end. All new developments will have to demonstrate a 10% net gain in biodiversity compared with the site pre-development.
The new biodiversity targets
On land
- Halve the length of rivers polluted by harmful metals from abandoned mines by 2038.
- Ensure that species abundance in 2042 is greater than in 2022, and at least 10% greater than 2030.
- Reduce species extinction risk as measured by the Red List Index for England by 2042, compared to 2022 levels.
- Restore or create at least 500,000 hectares of a range of wildlife-rich habitat outside protected sites by 2042, compared to 2022 levels.
Water quality
- Reduce nitrogen, phosphorus and sediment pollution from agriculture into the water environment by at least 40% by 2038, compared to a 2018 baseline.
- Reduce phosphorus loadings from treated wastewater by 80% by 2038 against a 2020 baseline.
- Reduce the use of public water supply in England per head of population by 20% by 2038, from a 2020 baseline.
In the sea
- Ensure 70% of the designated features in the MPA (Marine Protected Area) network are in favourable condition by 2042, with the remainder in recovering condition.
Air quality
- An Annual Mean Concentration target for PM2.5 levels in England to be 10 µg per m3 or below by 2040.
- A Population Exposure Reduction target for a reduction in PM2.5 population exposure of 35% compared to 2018 to be achieved by 2040.
Woodland cover
- Increase total tree and woodland cover from 14.5% of land area today to 16.5% by 2050.
Resource efficiency and waste
- Reduce residual waste (excluding major mineral wastes) kg per capita by 50% by 2042 from 2019 levels.
Business response
Biodiversity is crucial in limiting the impacts of climate change, and the destruction of ecosystems will be a threat to the supply chains of many businesses. It's imperative, regardless of legislation, that businesses prepare now.
Businesses may choose to start conducting greater due diligence by mapping out their biodiversity liability risks. Businesses that do will be better prepared to implement environmental due diligence checks and report on nature-related financial risks.
If a business is looking for new suppliers, it could be a good time to start considering the impacts those potential new suppliers have on biodiversity. This can be done through pre-contract checks and by making contracts terminable upon non-compliance with biodiversity legislation.
Preparing will be of particular importance if a business uses ‘forest risk commodities,’ such as beef, leather, cocoa, palm oil, pulp, paper, rubber, soya, and timber. The use of these commodities will be prohibited if they haven’t been produced in line with local laws protecting forests and other natural ecosystems.
Business benefits
Aside from avoiding costly biodiversity litigation, there are a number of benefits to implementing changes to improve biodiversity now.
There’s increasing pressure on businesses to adopt an ethical stance, as consumers become more aware of the risks of reduced biodiversity and climate change. Being at the forefront can be great for the reputation of a business, and can help it reach new audiences, recruit the right talent, and boost employee retention.
Make sure any time and money spent on this is tangible and impactful. Consumers are increasingly aware of greenwashing, which could see efforts and investments wasted, while also denting the business' reputation.
It's also important when it comes to attracting investment. ESG reporting has been widely used in the financial sector to analyse responsible investment. This trend is spreading and a failure to show willingness to engage with ESG may lead to businesses losing investors, as well as customers.
“Green groups have criticised these new environmental targets as providing ‘very little change’. While we don’t take the same stance, we understand their frustration as very few of the changes proposed by the consultation respondents (including IM) were implemented in the final environmental targets.
“On Biodiversity Net Gain, there is still a lot yet to be done. We’re still waiting on detailed guidance as to how the BNG credit market is intended to work, not least as to whether you can ‘stack’ BNG credits with nitrate or nutrient mitigation credit schemes. Similarly, the cost of Government Credits has yet to be finally determined.”
Claire Petricca-Riding – Head of Planning and Environment