UK Launches First Global Standard for High-Integrity Nature Investments

The British Standards Institution (BSI) has introduced the Overarching Principles Standard (BSI Flex 701), a groundbreaking set of government-backed guidelines designed to boost transparency and integrity in nature-related investments. Marking a global first, the new standards aim to channel credible funding into projects that deliver measurable environmental benefits, from wetland restoration to improved water quality and flood resilience.

Unveiled as part of the Nature Investment Standards (NIS) Programme, the initiative supports the UK’s ambition to become a global leader in green finance while tackling the biodiversity and climate crises. Secretary of State for Environment, Food and Rural Affairs, Steve Reed, emphasized the urgency of cross-sector action and the role of business in nature recovery. “By having clear standards, we can strike a blow to greenwashing and give businesses confidence that their investment is truly helping our natural world recover,” Reed said.

The BSI standard is positioned as a tool to align environmental restoration with economic growth, particularly as the Green Finance Institute warns that failure to address nature-related risks could slash the UK’s GDP by 6%. By setting out consistent and science-based principles, the standard is expected to support the development of high-integrity UK nature markets.

Scott Steedman, Director-General at BSI, highlighted the milestone: “The principles are designed to provide consistency and rigour for high-integrity UK nature markets that trade in real, measurable environmental benefits.”

The launch received support from devolved governments across the UK. Huw Irranca-Davies, Deputy First Minister of Wales, said the standard would ensure responsible investment in the natural environment. Mairi Gougeon, Scotland’s Cabinet Secretary for Rural Affairs, praised it as “an important step in setting out clearly what is required for markets to operate with high integrity.” Northern Ireland’s Agriculture Minister Andrew Muir noted its potential to scale up restoration efforts.

As part of its wider push, BSI has also opened consultations on a forthcoming Natural Carbon Standard aimed at strengthening the credibility of nature-based carbon credits. These moves are expected to support the UK’s biodiversity goals and net-zero commitments.