Aligning sustainability with opportunity

If your organisation holds land that is suitable for habitat enhancement, you could unlock a new revenue stream whilst boosting biodiversity and supporting development projects.‍

What is the opportunity?

‍Since February 2024, all larger planning applications have had to comply with Biodiversity Net Gain (BNG) requirements. This means that before development can begin, developers have to  guarantee that any habitat lost to the development would be more than replaced elsewhere.  Under the BNG framework:

• Lost habitat is scored according to a metric that gives a figure in biodiversity units
• Developers must secure the delivery of at least 10% more biodiversity units than were lost
• Improvements must be secured and maintained for a minimum of 30 years.

The new habitat can be within the red line boundary of the planning application ('onsite habitat')  or anywhere else in England - ('offsite habitat'). Developers often can't or won't reserve part of their site for natural habitat, as they want to maximise the size of their project, and may not own land elsewhere for habitat improvement.  When this happens, they have to pay someone else to improve habitat on another site. This creates a powerful opportunity for others to combine environmental gains with financial benefits.‍

How could you capitalise on this opportunity?

If you own land, the first step is to assess it for its ability to sustain improved habitat, and if leased, whether the lease is long enough and would allow such activities to take place. For land that is suitable, you need to put it on the national register of available offsite habitat. This makes your land visible to developers who need biodiversity units.  When a developer selects your land, you would enter into an allocation agreement with the developer. They may pay a deposit for the units to reserve them whilst they secure planning permission, paying the balance when the units are needed. 

What is the opportunity worth?

Current market data shows units selling for between £20,000and £25,000 each at the lower end, with premium units exceeding £100,000. Watercourse units seem particularly in demand and have consequently high prices.

If your organisation owns underused land, it is worth assessing its potential for providing biodiversity units. Doing so could generate income and also align with your ESG aims. Your land could deliver environmental impact and financial returns.

If you would like to know more, please get in touch.

To discover the other articles in our ESG in the boardroom series, covering topics including supply chains, reporting and regulation, and corporate governance, visit our ESG in the boardroom In Focus page.

This publication is intended for general guidance and represents our understanding of the relevant law and practice as at December 2025. Specific advice should be sought for specific cases. For more information see our terms and conditions.