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Nature-based solutions for climate: guidance for companies

A one-stop shop for guidance on incorporating nature in corporate climate plans – from ambition to action, advocacy and accountability

Every company should factor nature into their climate plans. This means playing their part in cutting the 35% of global emissions that are related to forestry, farming and land use and investing beyond their value chain to protect and restore natural ecosystems like forests and wetlands.

Yet there is widespread confusion about where nature fits into a company’s climate journey, including the role of the voluntary carbon markets.  

We bring together best-in-class resources from our network of partners that can guide companies to support nature. We share the latest science, debate insights and business case studies to give corporates greater confidence to act.

Nature and The 4 A's of Climate Leadership

The 4 A’s of Climate Leadership framework is the We Mean Business Coalition’s core offer for business. It’s a framework to enable companies to take credible climate action across the value chain and beyond. We continue to adapt and refine it as new standards and guidelines come out to ensure it reflects the latest best practice.

These are the key principles for factoring nature into each stage of a company’s climate journey:

FACTORING NATURE INTO AMBITION


Measure the company’s greenhouse gas (GHG) emissions and set short and long-term 1.5°C-aligned science-based emissions reduction targets. Capture the near-term, specific steps to meet these targets in a climate transition action plan.  

For companies with forestry, land use and agriculture (FLAG) emissions in their value chains, setting targets to cut land-based emissions, transform our food system, and invest in nature now is essential. This should include a commitment from all companies to eliminate deforestation from their supply chain no later than 2025. 

Meanwhile, all companies must go full tilt to cut their emissions from fossil fuel use. As they do so, they should include investments in nature-based solutions (NbS) in their climate plan to address the emissions they can’t yet cut.  

To end nature loss by 2030 – in line with limiting global temperature rise to 1.5°C – requires $350 billion in finance per year by the end of the decade.  Despite representing 30% of the climate solution, NbS receive just 3% of climate finance.

Read more: Why carbon markets must adapt to avoid forfeiting valuable climate finance

AMBITION

Use the 5 principles for investing in nature-based solutions to climate

Follow 5 principles created with Exponential Roadmap Initiative & the Potsdam Institute for Impact Research.

Follow the Greenhouse Gas Protocol (GHGP)

Engage with the Greenhouse Gas Protocol’s efforts to establish accounting rules for GHGs from the land sector.

Commit through the Science Based Targets Initiative (SBTi)

Reduce emissions in your business as quickly as possible and use science-based methods to establish baselines.

Access new FLAG guidance Science-Based Targets initiative (SBTi)

Companies in land-intensive sectors should set targets using SBTi's FLAG Guidance.

Set a Climate Transition Action Plan (CTAP)

Detail plans to cut emissions and contribute to global climate goals emissions.

Engage with science-based targets for nature

SBTN has launched its first targets for nature supported by SBTi. The initial pilot covers freshwater and land

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ACTION ON NATURE


Cut land-based emissions in company operations and across value chains, and purchase high quality carbon credits to invest beyond the value chain in protecting and restoring nature. 

To cut land-based emissions, companies must act swiftly to eliminate deforestation from forest-risk supply chains. They must also prioritize reducing methane and nitrous oxide emissions from food production and increasing natural carbon removal efforts. This will require a shift to sourcing forest and food commodities produced using regenerative agriculture and sustainable forestry practices which deliver positive outcomes for climate, people, nature and biodiversity.  

In addition, to help get the world on track for halving global emissions by 2030, all companies need to invest in protecting, managing and restoring nature, for example by buying high quality carbon credits aligned with the Natural Climate Solutions (NCS) hierarchy — a set of guidelines that prioritizes the protection, management, and restoration of natural systems to mitigate climate change. 

Key initiatives to act on nature within the value chain

Find out about WBCSD's Forests Solutions Group

Create a sustainable forests products sector.

Learn about forest-positive collective action

Eliminate deforestation from value chains.

Learn about climate positive agriculture 

Help transform global food systems.

Learn how companies can restore nature through their operating practices

Integrate natural capital within your supply chain.

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Select high integrity carbon credits

Read 10 Core Carbon Principles from the Integrity Council for the Voluntary Carbon Markets (ICVCM)

Use guidance and standards from ICVCM to select high integrity carbon credits.

Read VCMI's Claims Code of Practice for high-integrity carbon credits

VCMI's code requires companies to buy high-quality carbon credits for at least 20% of unabated emissions.

Use the Natural Climate Solutions Buyers guide

The NCS buyers guide helps businesses to integrate high-quality voluntary carbon credits into their strategies

Learn about the ‘How’ and ‘Why’ of engaging with the carbon market

Understand some of the key players in the carbon markets and ensure the credits you purchase are credible.

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ADVOCACY FOR NATURE


Ensure responsible policy engagement on climate and nature with an emphasis on nature-positive policy advocacy.  

Advocacy is essential to bring about science-based climate policy that unlocks investment and delivers action at scale. Responsible policy engagement is particularly important when it comes to nature, because the root causes of nature loss are often embedded in perverse policy incentives, subsidies and weak governance. Because nature loss increases emissions and reduces nature’s ability to absorb carbon and respond to climate-related impacts like storms and floods, companies should ensure their climate policy asks of governments reflect the need to protect and restore nature and biodiversity.

ADVOCACY

Follow the Responsible Policy Engagement (RPE) framework

Reap the business benefits of responsible advocacy & respond to stakeholder expectations.

Ensure your lobbying is aligned to the Race to Zero criteria

Companies must align their advocacy and lobbying activities in support of global climate and nature goals.

Advocate through Business for Nature

Businesses can call for ambitious policies to reduce and reverse nature loss through Business for Nature.

Read the Nature Capital Protocol

Businesses can use this protocol to identify, measure and value their direct and indirect impacts on nature.

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NATURE AND ACCOUNTABILITY


Companies should clearly state the quantity of nature-based climate solution credits purchased as a percentage of annual unabated value chain emissions and describe any other investments in nature protection or restoration.

Disclosing investments in carbon credits or other nature projects beyond the company’s value chain must be reported separately and independently from the company’s annual greenhouse gas emissions reports. The VCMI provides additional guidance on best practices for disclosure of carbon credits.Disclosing investments in carbon credits or other nature projects beyond the company’s value chain must be reported separately and independently from the company’s annual greenhouse gas emissions reports. The VCMI provides additional guidance on best practices for disclosure of carbon credits. Companies can use VCMI’s Claims Code of Practice for guidance on how to purchase high-quality carbon credits to cover at least 20% of their unabated emissions.

Carbon credit purchases should not be considered as a traditional ‘offset’ and should only be used in addition – not as a substitute – to urgent and deep decarbonization.

Report, manage and track progress on emissions reduction through CDP who provide the global environmental disclosure platform, supporting businesses to report manage and track progress on their environmental impacts. 

INITIATIVES

Discover initiatives to help your company invest in high-quality, natural climate solutions.

Join other corporate climate leaders to take action

Business Alliance to Scale Climate Solutions (BASCS) 

Work on scaling and improving carbon credit purchases with BASCS

Natural Climate Solutions (NCS) Alliance (NCSA)

Join the alliance to mobilize credible demand for high-quality voluntary carbon markets.

LEAF Coalition

Join corporate climate leaders to support LEAFs plans to halt deforestation - mobilizing at least $1bn.

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WHY INVEST IN NATURE?


Nature-based solutions represent a crucial tool in both helping to limit global warming to a maximum of 1.5°C and reversing nature loss. More and more businesses and investors are ready and willing to back the right solutions, alongside robust decarbonization strategies.

ACCELERATING THE TRANSITION TO A NET-ZERO AND NATURE-POSITIVE FUTURE

$1 trillion

If the1,700 biggest emitters cut emissions in line with science, it would cut ~30Gt of emissions & deploy $1tn

48%

The land system contributes a startling 48% of all anthropogenic GHG flows.

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Natural climate solutions provide up to ⅓ (~7 Gt CO2) of the climate mitigation needed for a 1.5° or 2° pathway.

10 Gt carbon sink by 2050

Natural climate solutions can turn land from 12 Gt greenhouse gas source today into 10 Gt carbon sink by 2050.

92%

92% of company leaders see long-term decarbonization as a priority & 89% value responsible carbon credit use.

Over half

51% of businesses say carbon credits allow them to take immediate climate action alongside ongoing reductions.

More reasons why companies should invest in nature

To achieve a net-zero economy, we must halve emissions by 2030 AND halt and reverse the destruction of nature.

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USING THE CARBON MARKETS


The carbon market has evolved significantly in recent years, helping channel much needed finance to climate priorities including the protection and restoration of nature.  At the same time, increased corporate engagement in carbon markets has brough enhanced scrutiny of the quality of credits companies are purchasing. This scrutiny should not discourage companies from investing in carbon markets, but rather encourage them to perform robust due-diligence of their credit purchases. 

Carbon markets are a critical tool to mobilize adequate finance to limit global warming to 1.5°C and reverse devastating nature loss. However, companies must play a more active role in making sure the carbon credits they purchases are credible.  

Information to help companies to select high integrity carbon credits can be found in this report: A Buyer’s Guide to Natural Climate Solutions Carbon Credits. 

Our resources cover the most critical questions companies ask as they seek to navigate the risks and opportunities of the carbon credits market, including how to:  

1) purchase credible carbon credits 

2) ensure credits purchased result in real emissions reductions and have a positive impact on communities 

3) continue to monitor the integrity of credits purchased   

INSIGHTS

Read thought-leadership from We Mean Business Coalition leaders on topics from Nature-based Solutions to engaging with the carbon markets.

ALL IN ON CLIMATE: THE ROLE OF CARBON CREDITS IN CORPORATE CLIMATE STRATEGIES

Our research, carried out with Forest Trends’ Ecosystem Marketplace, highlights how companies that participate in the voluntary carbon market (VCM) are leading on climate transparency, ambition and action efforts.

Our analysis finds that companies engaged in the VCM outperform their peers in accelerated climate action. 59% of VCM buyers reported lower gross emissions year-on-year related to reduced emissions and/or renewable energy consumption, compared to 33% of companies not participating in the carbon markets.

Voluntary carbon buyers are more likely to have science-based targets to address climate change, and their targets are more ambitious. They are also 3.4 times more likely to have an approved science-based climate target than companies that do not engage in carbon markets, and three times more likely include Scope 3.

  • Download a PDF version of the All in on climate: the role of carbon credits in corporate climate strategies here.

Insights NOT ALL CARBON CREDITS ARE CREATED EQUAL

A failure of carbon markets now would slow humanity’s path to net zero emissions and derail financial innovation.
News CARBON MARKETS MUST BE A TRANSPARENT, HIGH INTEGRITY PART OF BROADER CORPORATE CLIMATE ACTION

To keep our climate goals in reach, more must be done to incentivize and recognize corporate climate investments today.
News WHILE WE FIGHT OVER CORPORATE CLIMATE ACTION, HIGHLY POLLUTING BUSINESS AS USUAL CONTINUES UNCHECKED:

A fierce debate is currently distracting businesses from their collective responsibility to decarbonize. A raft of reports taking companies to task over the pace and scale of their climate action have left some businesses questioning their investments, particularly in natural climate solutions (NCS).
News CARBON CREDITS MIGHT NOT HELP HIT COMPANIES’ EMISSION REDUCTION TARGETS, BUT NATURE MUST BE IN EVERY CORPORATE CLIMATE PLAN

How can companies maximise their efforts to tackle the climate crisis by investing in credible nature-based solutions for climate at the same time as cutting their emissions as fast as possible?
News THE ‘HOW’ AND ‘WHY’ OF ENGAGING WITH THE CARBON MARKET

Investing in the right carbon credits can be a struggle. Here’s how companies can make sure they’re making credible investments in nature.
News CARBON MARKET SCRUTINY MUST BE A CALL TO ACTION TO IMPROVE THEM, NOT ABANDON THEM

Recent investigative reporting highlighted an important, and perhaps uncomfortable issue: not all carbon credits are created equal. Carbon credits bring varying degrees of risk, provide different levels of co-benefits, and some simply aren’t delivering the climate benefit they promise.

More resources

More resources to help you better understand the role of land systems in climate change, and how to navigate the carbon markets.

Learn more about land use and the carbon markets

  1. Food and Land Use Coalition: Why Nature?, Why Now?
  2. Business Alliance to Scale Climate Solutions: Primer – Corporate Process for Purchasing Carbon Credits
  3. Natural Climate Solutions Alliance: Natural Climate Solutions and the Voluntary Carbon Market: A Guide for C-suite Executives
  4. Science Based Targets initiative: Forest, Land and Agriculture (FLAG) guidance
  5. We Mean Business Coalition: Corporate Minds on Climate Action: The current thinking, the key challenges, and the will to find a way forward
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