Nature Finance and Biodiversity Credits: A Private Sector Roadmap to Finance and Act on Nature

The report outlines a structured approach for the private sector to transition toward nature-positive outcomes, emphasizing the integration of a foundational nature strategy with a detailed nature finance action plan. It advocates for the use of the ACT-D (assess, commit, transform, and disclose) framework to establish corporate ambition and operationalize it through four steps: defining actions and value, identifying metrics, procuring high-integrity credits, and managing communication. While biodiversity credits are used as the primary example, the roadmap is designed to be applicable to various nature financing mechanisms. The document highlights a $700 billion annual nature financing gap and provides guidance on mitigating strategic, operational, and reputational risks associated with nature finance.

• There is a significant global nature financing gap estimated at approximately $700 billion annually, which must be closed to halt and reverse biodiversity loss by 2030.
• Private sector adoption of nature strategies is low compared to climate strategies; only 5% of the largest Fortune Global 500 companies have a nature strategy, whereas over 80% have a climate strategy.
• The report recommends the ACT-D framework (assess, commit, transform, and disclose) as a method for businesses to develop a foundational nature strategy.
• A nature finance action plan should follow a four-step process: defining actions and value based on the mitigation hierarchy, identifying robust metrics, procuring credits with integrity, and managing communication and claims.
• The mitigation hierarchy is essential for prioritizing nature actions, requiring businesses to first avoid and reduce negative impacts, then restore and regenerate, before offsetting or contributing beyond their own impact.
• Biodiversity credits are defined as certificates representing a durable, evidence-based unit of positive biodiversity outcome that is additional to what would have otherwise occurred, and are distinct from carbon credits.
• Businesses using biodiversity credits face three primary risk categories: strategic risks (failure to set clear goals), operational risks (failure to procure high-integrity credits), and reputational risks (failure to communicate outcomes accurately).
• There are five identified use cases for biodiversity credits: enhancing carbon credits, accessing ecosystem services, contributing beyond own impact, bundling with products, and taking responsibility for unmitigated impact, though the latter is currently contested.
• Effective communication of nature claims requires clarity across four dimensions: scope (where and how the credit is used), boundary (which part of the business the claim applies to), accuracy (not overstating impact), and transparency (providing accessible supporting information).

APA

World Economic Forum (2024). Nature Finance and Biodiversity Credits: A Private Sector Roadmap to Finance and Act on Nature. https://www3.weforum.org/docs/WEF_Nature_Finance_and_Biodiversity_Credits_2024.pdf

Chicago

World Economic Forum. Nature Finance and Biodiversity Credits: A Private Sector Roadmap to Finance and Act on Nature. 2024. https://www3.weforum.org/docs/WEF_Nature_Finance_and_Biodiversity_Credits_2024.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Nature Finance and Biodiversity Credits: A Private Sector Roadmap to Finance and Act on Nature |date=October 2024 |url=https://www3.weforum.org/docs/WEF_Nature_Finance_and_Biodiversity_Credits_2024.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2024nature, author = {{World Economic Forum}}, title = {{Nature Finance and Biodiversity Credits: A Private Sector Roadmap to Finance and Act on Nature}}, institution = {World Economic Forum}, year = {2024}, month = oct, url = {https://www3.weforum.org/docs/WEF_Nature_Finance_and_Biodiversity_Credits_2024.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }