The British Property Federation (BPF) has called for urgent action to bolster the resources of local authorities seeking to implement mandatory biodiversity net gain (BNG) requirements in England.
BNG, aimed at enhancing natural habitats and ensuring new developments have a positive impact on biodiversity, is set to become a pivotal part of the planning process. From February 12th, developers will be required to submit biodiversity gain plans for most projects. These plans must demonstrate a net gain of at least 10% in biodiversity and commit to maintaining this level for a minimum of 30 years. The rules will only apply in England, not the devolved regions of Scotland, Wales and Northern Ireland.
However, the BPF has voiced concerns regarding the preparedness of local authorities to assess BNG proposals. According to UK government research, only 5% of local planning authorities feel adequately equipped to scrutinize applications affecting biodiversity. Additionally, less than 10% believe their resources are sufficient to ensure compliance with the forthcoming regulations.
In response to these challenges, the BPF's 2024 election Manifesto, Building our Future, outlines proposals for reforming the planning system. Recommendations include enhanced government funding for local authority planning departments, higher fees for applicants in exchange for improved services, and the establishment of central talent pools to facilitate a more efficient response to major applications.
Rob Wall, assistant director at the BPF, said many developers were already delivering BNG but added: "The new mandatory BNG regulations will place an additional burden on already over-stretched local authority planning departments. This is why we are calling on the Government to set out a new long-term strategy for resourcing the planning system to ensure that planning departments have the capacity and capability to deliver on all front."
Asia Pacific real estate companies have led the sector in committing to nature-related disclosures.
The Taskforce on Nature-related Financial Disclosures (TNFD) this week announced 320 early adopters which have pledged to include nature-related matters in their financial reporting for FY2023, FY2024 or FY2025.
The TNFD is a market-led, science-based and government-backed initiative providing organisations with the tools to act on evolving nature-related issues.
Of the 14 real estate companies which have signed up to the initiative, 10 are based in Asia Pacific. Companies include Singapore’s City Developments Ltd, Japan’s Sekisui House and Swire Properties, Chinachem Group and Henderson Land from Hong Kong. The other four companies are based in Europe.
A number of asset managers and insurance companies which invest in real estate, including AXA and Schroders, have also become early adopters.
David Craig, co-chair of the TNFD, said: “This is a milestone moment for nature finance and for corporate reporting. As climate-related sustainability reporting goes mainstream through the new International Sustainability Standards Board (ISSB) standards and regulation in a growing number of countries, this is a clear signal that investors, lenders, insurers and companies are recognising their business models and portfolios are highly dependent on both nature and climate, which to be treated as both strategic risks and investment opportunities.”
As experts and leaders meet in Montreal for two weeks of discussions focussing on the biodiversity crisis, we take a look at how the role of nature-based solutions are crucial to help address the various physical risks cities face, namely heatwaves and floods.
According to the United Nations, the global population is expected reach 9.8 billion by 2050, with 70% living in cities. Given that 2050 is also a target date for achieving net zero emissions, ensuring cities are healthy and sustainable places to live is imperative.
Nature-based solutions are sustainable design, management, and engineering practices that weave natural features or processes into the built environment to benefit both people and nature. They leverage nature, such as trees and soft landscaping, to address multiple issues at once, including water quality improvement, coastal property protection from storm surges, and erosion prevention by stabilising shorelines and hilly terrains.
Cities can enjoy numerous benefits by adopting nature-based solutions designed to address specific issues. These range from providing shade during warmer months and habitat for pollinators and wildlife, and filtering air pollutants, to offering an increased sense of wellbeing to people by incorporating greenery and additional recreational spaces. Heat-retaining materials, from concrete and asphalt to steel and glass, are ubiquitous in cities, and vegetated spaces can help reduce the risk of extreme heat. The benefits of nature-based solutions also extend to urban flood risk mitigation.
Urban flood risk and heatwaves on the rise
Global warming has supercharged the water cycle, leading to increasingly severe and frequent rain events all over the world. This has caused floods of unprecedented scale that have severely impacted communities, homes and investments. Swiss RE Institute estimates insured losses for natural disasters globally reached $35 billion in the first six months of 2022, a 22% increase on the 10-year average.
Due to the prevalence of impervious surfaces, lack of natural drainage paths, and high density, urban areas are particularly vulnerable to the impacts of sudden, extreme downpours, leading to flash floods. Cities with antiquated wastewater systems are particularly susceptible. Left with limited drainage for the water to go during extreme downpours, minor localised floods in these cities often transform to major events.
Urban floods become localised because of small-scale factors such as slight changes in topography and elevation, stormwater management infrastructure, and building design. Strategically placed nature-based solutions, such as green spaces for runoff control, can contain localised floods and keep them from expanding.
Many cities that deal with flash floods also suffer from extreme heat and urban heat island effect, aggravated by the same non-pervious paved surfaces that radiate the heat back to the environment and people. This could also be mitigated by adding more planting and green spaces, creating more opportunities for natural cooling, as vegetation can deflect radiation from the sun and release moisture into the atmosphere.
For both flood risk and extreme heat mitigation, nature-based solutions are a logical, lower cost option which brings a multitude of other benefits into the urban environment.
Bringing green back for environmental and social cohesion
From constructed wetlands at the former London Olympic Park to urban farms in Singapore and Detroit, the range of responses developed by cities speaks to the benefits of tailored ecological approaches. In addition to environmental benefits, strategies such as urban agriculture offer social benefits, tackling food insecurity in areas of need and brining community members together.
In Washington DC, a series of nature-based solutions, including rain gardens, has been introduced to address both flooding and pollution caused by stormwater runoff flowing into the Chesapeake Bay. Financial incentives offered by the local government encouraged 4,000 homeowners to join the scheme, which currently runs a waitlist.
As we look to the work ahead for a net zero carbon future, nature-based solutions can serve as an effective tool to enrich our urban spaces environmentally, socially, and economically.
Authors: Hyon Rah (left, above), director in ESG Consultancy, US and Dr Kat Martindale (r), head of ESG research at Savills.
The Urban Land Institute has completed its first biodiversity park in Hong Kong.
Supported by Bank of America and Swire Properties, ULI has created a 4,000 sq ft urban park at The Loop, an exhibition centre in Swire’s Taikoo Place development.
The project forms part of ULI’s efforts to activate and green urban spaces in Hong Kong. The ULI and volunteers have applied research, case studies, workshops and now this pilot project to focus on the importance of urban greening to improve environmental and social sustainability in the high-density city.
The new park uses a wide variety of native plant species, housed in over 20 custom-built upcycled timber planters which also provide seating. Other projects are set to follow through the BoA-supported scheme.
Meanwhile, at The Loop at Pacific Place in Hong Kong, Swire has partnered with Deloitte to launch its fifth urban farm in the city. The developer said the project would repurpose food waste (as compost) and add an amenity for office workers in Pacific Place.
London’s historic Grosvenor Square is set to be transformed under a new biodiversity initiative.
UK developer and investment manager Grosvenor, which owns the six acre square in London’s Mayfair, has been granted planning permission to turn it into a garden with “ground-breaking environmental credentials”. At present the square is mainly grass, with a number of trees.
James Raynor, CEO, Grosvenor Property UK, said: “The pandemic underscored the lack of high-quality green space in central London that makes room for both people and nature. This incredible project will deliver much of what is needed so badly – creating an exceptional environment for everyone who lives in, or comes to, the area.”
The plans will add 24 trees to the square, as well as 2 acres of new planting, with five times as many plant species. The square will gain water features, seating education facilities and play spaces to make the gardens more useable for the public.
Grosvenor says the added planting will act as a carbon sink and improve air quality.