Voluntary Biodiversity Credits: A Guide For Business - PREVIEW

Voluntary Biodiversity Credits: A Guide For Business

Adrian Dellecker and Julia Binder (IMD)

PJ Stephenson and Luca Fumagalli (UNIL)

About this guide

This guide aims to help businesses navigate the rapidly evolving voluntary biodiversity credit (VBC) markets and decide whether and how to engage in VBCs.

It is intended for companies that want to help halt biodiversity loss or restore and regenerate biodiversity in the context of nature-positive strategies. It is relevant for those with biodiversity strategies in place, those in the process of developing a biodiversity strategy, or those considering one.

Nature and ecosystem services are estimated to contribute directly to over half of global GDP, or $44tn every year. Yet biodiversity continues to decline at an alarming rate: according to WWF, wildlife populations have fallen by 73% in the past 50 years, and one million are under threat of extinction. In the World Economic Forum’s Global Risks Report 2024, biodiversity loss was ranked as the third-most severe threat the private sector will face in the next 10 years.

There is growing pressure on businesses to act on biodiversity. The United Nations Convention on Biological Diversity, under Target 15 of the Kunming-Montreal Global Biodiversity Framework, calls on businesses “to progressively reduce negative impacts on biodiversity, increase positive impacts, reduce biodiversityrelated risks to business and financial institutions, and promote actions to ensure sustainable patterns of production.”

VBCs have emerged as a tool for businesses to contribute to nature conservation and restoration and are encouraged by the Convention on Biological Diversity. Numerous VBC schemes have appeared on the market in the last few years, leaving many companies confused about how to engage and when it is relevant to do so. How might VBCs help corporate biodiversity efforts, voluntary frameworks, and nature-positive strategies? What do you need to know when considering the purchase of VBCs? What makes for a credible VBC? This guide aims to answer these questions and help you make informed decisions about the current VBC market.