Nature is under threat as global wildlife populations are reducing rapidly and many species are close to extinction.

The real estate industry is waking up to this crisis, but we still have a long way to go.

The built environment is estimated to be responsible for nearly 30% of global biodiversity loss as nature is excluded from our cities and urban design often suppresses the natural world.

The ULI and Jacobs report ‘Nature Positive and Net Zero’ states that the industry’s impact on land use hasn’t often considered biodiversity or ecosystems in either business or climate strategy.

Biodiversity is intrinsically linked to physical climate risk and transition risk. The restoration and perseveration of natural systems are key to resilient and sustainable real estate, preserving asset value, protecting material supply chains, and will also help us achieve tough net zero goals.

ULI Europe has held two workshops on the topic, the first at our ULI Europe Conference in Milan and the second at our recent C Change Summit in Barcelona.

Our discussion examined where the climate and nature agendas converge and explored the need to make the economic case for nature, calling for nature positive design to be widely embedded to facilitate impact at scale.

Arup’s Dima Zogheib noted, “as an industry we have an ethical and ecological responsibility to transition our impact from ‘degenerative’ to regenerative and have a positive impact on nature and climate.” And Robert Gardner, CEO of Rebalance Earth stated, “nature is the most valuable asset class on the planet”.

During the workshops, attendees from across the value chain discussed their views on the barriers, opportunities and the way forward for biodiversity and real estate across Europe.

What are the barriers to biodiversity?

A common barrier mentioned was data. The current measurement and evaluation of biodiversity impacts lack clear metrics and standardised methods that complicate assessment and comparison. Many attendees also felt that the additional data requirements are a burden on smaller companies in terms of cost and technical capabilities.

Regulation was discussed as it was often felt to be lagging, effectively halting any potential early adopters. The planning system can work against biodiversity measures, for example in refusing approval for green roofs. However, attendees were more positive about the UK’s Biodiversity Net Gain (BNG) and the global Taskforce on Nature-related Financial Disclosures (TNFD) framework as ways of increasing awareness of biodiversity within real estate.

Market barriers range from competing agendas and scalability issues to the fact that urban and suburban areas face very different biodiversity challenges. Every ecosystem is different, and all need a deep understanding of local environments and habitats. There’s a need for much greater collaboration at the planning stage with municipalities.

Attendees were divided on their views around the biodiversity narrative. Some felt that, unlike climate change, there’s a lack of clear targets around biodiversity, and insufficient education and knowledge about its positive impacts. Others stated that nature is more tangible than carbon and with the correct messaging there is simple story that could encourage more action.

What are the opportunities from biodiversity?

Biodiverse environments are more resilient to climate change impacts, such as extreme weather events. This can be measured and is a compelling case for increasing biodiversity. During the workshop, Dima noted that a reduction in temperature at a very local level can be achieved as a result of increasing tree coverage, and cited metrics from Arup showing the cooling effect of trees in London, with Regent’s Park (89 percent vegetation) being 7C cooler than surrounding hottest areas.

Attendees were positive about the persuasive financial and economic benefits obtainable, such as future proofing investment through biodiversity, introducing more adaptability to future environmental change and regulatory landscapes, and the obvious potential to improve asset performance through truly green neighbourhoods. Biodiversity also addresses growing occupier demand for green spaces, while sympathetic redesign and repurposing can encourage obsolete offices to be reused.

How can we further the case for biodiversity?

Workshop participants in both sessions contributed many views on how we can further biodiversity, including discussion that the way forward should be evidence-based, requiring more case studies including cross border examples and concrete figures for broader insights. Education and training are needed as well as a focus on sharing solutions.

In our experience at ULI, we’ve found the most effective way to make meaningful progress on a critical issue is through industry collaboration, ensuring a culture of increased dialogue across the value chain, and fostering partnerships with our communities and cities, to ensure that we can truly welcome back nature.

Find out more about C Change: https://europe.uli.org/research/c-change/

C Change is a ULI-led programme to mobilise the European real estate industry to decarbonise. We’re a movement empowering everyone to work together for a sustainable future. We connect the brightest minds from across the value chain. We challenge barriers, share expertise, and champion innovation to move swiftly to accelerate solutions that will transform our industry and protect our planet. C Change means real change. C Change was formed in late 2021 by a group of leading real estate players that was united in its aim to focus on collaboration to ensure companies large and small have access to practical solutions and education on decarbonisation.