Nature-based solutions: using the natural environment to address climate change
December 8, 2022
Nature-based solutions (NBS) are approaches that use the natural environment to address societal issues such as climate change, natural resource management and biodiversity loss. NBS can range from restoration of degraded ecosystems to conservation of existing ecosystems or even their creation where they do not exist yet. They can involve planting trees, restoring wetlands and protecting habitats in order to absorb pollutants, reduce flooding risk, store carbon dioxide and improve general environmental health.
Many companies are beginning to recognize the importance of NBS for their sustainability goals and have started implementing them into their operations. For example, some companies are investing in reforestation projects in areas impacted by deforestation linked to their operations or investing in wetland conservation initiatives that provide wildlife habitat and protect against floods. Companies may also invest in green infrastructure to improve water quality, such as stormwater management systems that use natural features like wetlands and riparian buffers.
By incorporating NBS into their operations, companies can develop natural risk mitigation and hedging mechanisms that offset certain operational externalities, as well as develop additional revenues through selling carbon credits or other environmental services. How does this work in practice? Below are a few examples.
Tree-planting. Planting trees is an effective way to restore degraded land and create wildlife habitats while absorbing carbon dioxide and increasing biodiversity. Companies can use tree-planting initiatives as part of their corporate sustainability plans or as a voluntary offset in order to reduce their net emissions, particularly in areas where their operations have generated biodiversity loss.
Biodiversity conservation. Companies can also invest in conservation efforts such as protecting habitats and preserving endangered species. These initiatives help protect biodiversity and ensure the health of ecosystems for future generations, while reversing certain of the negative effects of the company’s carbon footprint.
Integrated water management. Companies can also implement integrated water management strategies that combine green infrastructure with gray infrastructure to improve water quality, reduce flood risk, and conserve natural resources. Examples include constructing wetlands for stormwater retention, filtering pollutants from runoff, restoring riparian buffers along streams, or creating green spaces for urban areas.
Ecosystem restoration. Equally, companies can invest in restoring degraded ecosystems, such as wetlands or estuaries, which provide many environmental benefits. These projects may involve planting trees and other vegetation to improve water quality and reduce flooding risk. For example, a company might invest in restoring a wetland to its natural state, or build an artificial one if needed.
Green infrastructure. Companies can also invest in green infrastructure to help reduce the impacts of storms and floods on their operations and surrounding areas. This could involve using natural features such as wetlands, swales, buffer strips and rain gardens to absorb pollutants and filter runoff before it reaches nearby waterways.
Carbon sequestration. Companies may also invest in carbon sequestration projects that use trees and other vegetation to capture carbon dioxide (CO2) from the atmosphere. This can be done through reforestation projects or by planting vegetation around existing forests to increase the number of trees absorbing CO2. Through reforestation and other activities, companies can sequester carbon from the atmosphere and store it in plants and soils, helping to reduce greenhouse gas emissions that contribute to climate change.
Wetland conservation. Other companies are investing in wetland conservation initiatives that protect wildlife habitat, improve water quality and reduce flooding risks by absorbing extra flood waters. One example of this is restoring degraded wetlands and creating new ones where none exist.
A number of companies have already put in place NBS both directly in their operations and for the benefit of their stakeholders, including the communities that are impacted by the company's operations. For example, Coca-Cola launched a project in Indonesia to restore mangrove forests in coastal areas that had been damaged by deforestation and overexploitation, aiming to reduce poverty levels among local communities by providing alternative livelihoods such as eco-tourism and aquaculture. In the energy sector, BP has implemented numerous NBS projects, including restoring sand dunes to stabilize shorelines against storms and sea-level rise, provide important wildlife habitats and help protect local communities from flooding.
In the construction space, Skanska has committed to restoring natural systems such as wetlands, riparian buffers and green roofs on its construction sites, forming part of the company’s goal to reduce carbon emissions and preserve biodiversity in areas impacted by their projects. Equally, Unilever has invested in several NBS projects to protect biodiversity and reduce water use on farms, including investments in rainwater harvesting systems and encouraging farmers to choose crops that require less water and emit fewer greenhouse gases.
Despite the benefits, nature-based solutions are neither free from risk or criticism. While they can represent important measures to mitigate the effects of a company's operations, they can also result in additional burdens for local communities, such as displacement and loss of traditional livelihoods. Additionally, NBS projects can be complex to design, as they must be tailored to the local ecosystem and generally require participation and maintenance at regular intervals. They not only require a long-term commitment from companies, but they also require monitoring and measurement to understand, measure, communicate and weigh expected benefits against a project's environmental, health and safety dynamics.
That being said, NBS represents a new frontier in sustainability, and one that allows companies to create tailor-made positive impacts for the planet and stakeholders across the value chain. By investing in nature-based solutions, companies can show their commitment to sustainability while also benefitting from increased efficiency and improved public perception. They can invest in projects that restore ecosystems, sequester carbon dioxide and conserve habitats, among many other activities. With continued investment and appropriate risk mitigation, these solutions have the potential to transform our environment for future generations.
CPM
