Nature-Positive Pathways Aim to Boost Private Investment in Restoration Projects

Three UK sectors now have detailed frameworks for nature investment

WWF, the Green Finance Institute, and the UK Centre for Ecology and Hydrology have published guidance that gives businesses a structured method for planning nature restoration investment. The framework, called Nature-Positive Pathways, sets out how firms in agrifood, water utilities, and the built environment can translate national biodiversity targets into sector-specific action plans.

The guidance mirrors the approach used for net-zero transition planning. However, it applies the same rigour to nature restoration and biodiversity protection. Businesses now have a clearer route to identify what needs doing, how much it will cost, and where private finance can support delivery.

For UK SMEs working in supply chains connected to these three sectors, the implications are significant. Larger firms will increasingly expect suppliers to demonstrate how they protect and restore nature. Procurement criteria will evolve. Tender requirements will tighten. Companies that understand this shift early will be better positioned when supply chain audits begin asking detailed questions about biodiversity impact.

How the Nature-Positive Pathways framework operates

The framework introduces Nature-Positive Transition Pathways as a practical tool. These pathways show businesses how to align operations with global biodiversity targets, particularly the Kunming-Montreal Global Biodiversity Framework agreed at COP15. The GBF commits countries to halt and reverse nature loss by 2030.

Each pathway breaks down what action is needed within a specific sector. It identifies where investment should flow, what technologies or practices reduce harm to nature, and where restoration efforts deliver the greatest benefit. Consequently, businesses gain a clearer picture of where to allocate resources.

The UK government committed to developing these pathways in its Environmental Improvement Plan published in 2025. Three priority sectors were chosen because of their substantial impact on UK ecosystems and their readiness to absorb private investment. Agrifood affects land use across millions of hectares. Water utilities manage rivers, wetlands, and coastal zones. The built environment shapes how urban areas interact with green spaces and wildlife corridors.

The pathways provide policy clarity. Without clear direction, private investors struggle to assess whether nature projects will deliver returns or meet regulatory expectations. This framework addresses that gap by mapping investment opportunities against measurable biodiversity outcomes.

Five steps businesses must follow under the new guidance

The guidance sets out a structured approach for businesses developing nature transition plans. Each step builds on the previous one, creating a coherent strategy that aligns with both climate and biodiversity goals.

First, businesses must integrate nature objectives into existing climate transition plans. Climate and nature are interconnected. Peatland degradation releases carbon. Deforestation removes carbon sinks. Therefore, any credible climate plan must account for nature impacts. This integration supports the Paris Agreement’s temperature goals while addressing biodiversity decline.

Second, firms should align their plans with the Kunming-Montreal Global Biodiversity Framework. The GBF includes 23 targets covering ecosystem restoration, sustainable use of resources, and equitable benefit sharing. Alignment means setting objectives that contribute measurably to these targets, not simply referencing them in corporate reports.

Third, companies need to establish short, medium, and long-term objectives. Short-term actions might include removing invasive species from company sites or switching to suppliers with verified biodiversity credentials. Medium-term goals could involve restoring degraded habitats within the supply chain. Long-term objectives should target systemic change, such as financing large-scale wetland restoration or supporting the creation of nature corridors.

Fourth, stakeholder engagement is essential. Businesses must work with suppliers, customers, local communities, and conservation organisations to measure progress. Nature restoration rarely succeeds in isolation. A water utility restoring a river catchment depends on farmers changing land management practices upstream. Collaboration ensures that co-benefits, such as flood mitigation or improved water quality, are captured and shared.

Fifth, governance and accountability structures must be in place. Board-level oversight ensures that nature objectives receive the same attention as financial performance or health and safety. Management processes should track progress against biodiversity metrics, not just carbon reduction targets. Regular reporting demonstrates credibility to investors and customers.

Agrifood, water utilities, and construction face immediate expectations

The three priority sectors were chosen because they have significant environmental footprints and clear opportunities for private investment in nature restoration. Each sector faces distinct challenges.

Agrifood businesses affect biodiversity through land use, pesticide application, water extraction, and soil management. The sector contributes to habitat loss when agricultural expansion replaces natural ecosystems. However, it also has substantial potential to restore nature through regenerative farming, agroforestry, and wetland creation on marginal land. Suppliers to major food retailers or manufacturers will face growing pressure to demonstrate biodiversity-positive practices.

Water utilities manage infrastructure that directly impacts rivers, wetlands, and coastal ecosystems. Abstraction affects water levels in sensitive habitats. Wastewater discharge influences water quality downstream. Utilities are increasingly investing in nature-based solutions such as constructed wetlands for water treatment or river restoration to improve flood resilience. These investments can deliver cost savings compared to traditional infrastructure while meeting regulatory requirements.

The built environment sector shapes urban development, housing, and commercial property. Construction activities disrupt habitats and fragment wildlife corridors. Nevertheless, the sector can integrate biodiversity into design through green roofs, urban wetlands, and nature-inclusive building standards. Planning authorities are beginning to require biodiversity net gain for new developments, creating commercial drivers for nature-positive approaches.

SMEs operating in these sectors or their supply chains should expect scrutiny to increase. Larger firms will cascade expectations downwards through procurement policies. Suppliers unable to demonstrate nature-positive practices may lose contracts or face exclusion from tenders.

The funding gap the pathways aim to close

Private finance flowing into nature-based solutions remains minimal compared to the scale of investment needed. Globally, approximately 23 billion dollars supports nature restoration each year. Meanwhile, 4.9 trillion dollars flows into activities that degrade ecosystems, such as fossil fuel extraction, industrial agriculture, and unsustainable forestry.

This mismatch reflects several barriers. Investors lack confidence in the financial returns from nature projects. Biodiversity outcomes are harder to measure than carbon reductions. Policy uncertainty makes long-term investment risky. Many nature projects are small-scale and difficult to finance efficiently.

Nature-Positive Pathways address these barriers by creating credible, investable opportunities. The framework maps clear routes from investment to measurable outcomes. It aligns projects with national targets, reducing policy risk. Moreover, it encourages standardisation, making it easier to bundle small projects into portfolios that attract institutional capital.

For businesses, this shift opens new opportunities. Companies that develop robust nature transition plans may access green finance on favourable terms. They can position themselves as preferred suppliers to firms seeking biodiversity-positive supply chains. Additionally, they can mitigate regulatory risk as governments tighten environmental standards.

Core elements UK businesses need to understand

• WWF, the Green Finance Institute, and the UK Centre for Ecology and Hydrology have published guidance on Nature-Positive Transition Pathways for three priority sectors: agrifood, water utilities, and the built environment.
• The framework provides a structured method for translating national biodiversity targets into sector-specific investment and action plans, mirroring the approach used for net-zero transition planning.
• Businesses must integrate nature objectives into climate plans, align with the Kunming-Montreal Global Biodiversity Framework, and establish short, medium, and long-term goals with board-level governance.
• Private finance for nature-based solutions currently totals around 23 billion dollars globally, while 4.9 trillion dollars flows into activities that harm ecosystems, highlighting a significant funding gap.
• Companies in priority sectors and their supply chains will face increasing procurement pressure to demonstrate biodiversity-positive practices as larger firms cascade expectations through tender requirements.
• The UK government committed to co-developing these pathways in its Environmental Improvement Plan 2025, providing policy clarity to support private investment in nature restoration and impact reduction.

What SMEs should consider as nature transition plans become standard

Businesses that act early will have an advantage. Understanding how nature transition plans work gives you time to assess impacts, identify improvements, and build evidence before customers or regulators demand it. Waiting until requirements are mandatory compresses timescales and increases costs.

Start by understanding your biodiversity footprint. Where does your business affect ecosystems? This might be through land use, water consumption, pollution, or supply chain impacts. Many SMEs assume their environmental impact is limited to carbon emissions. However, biodiversity considerations extend further, covering how operations affect soil health, water quality, habitat connectivity, and species populations.

Consider your supply chain exposure. If you supply firms in agrifood, water utilities, or construction, expect questions about biodiversity impact within the next 12 to 24 months. Larger firms developing nature transition plans will need data from suppliers. Being prepared with credible information protects existing contracts and opens doors to new opportunities.

Look at where nature-based solutions might reduce costs or improve resilience. Restoring hedgerows on farmland improves pollinator populations, benefiting crop yields. Creating wetlands on commercial sites can manage surface water, reducing drainage costs. Green infrastructure in urban developments can lower energy costs and improve property values. These solutions often deliver financial benefits alongside biodiversity gains.

Engage with local nature partnerships and conservation organisations. Collaboration amplifies impact and shares costs. A group of businesses working together to restore a river catchment or create wildlife corridors achieves more than isolated efforts. These partnerships also provide access to expertise and potential funding streams.

Think about governance and reporting. As nature transition plans become standard, businesses will need systems to track progress. This includes measuring biodiversity baselines, monitoring changes, and reporting outcomes. Establishing simple tracking mechanisms now avoids scrambling later when reporting becomes mandatory or expected by investors.

We support businesses developing approaches to nature-positive operations through our nature investment advisory services, which help firms identify practical actions that align with emerging frameworks. For companies navigating the intersection of climate and nature planning, our net-zero hub provides guidance on integrated environmental strategies. Training on biodiversity measurement and nature-based solutions is available through SBS Academy, helping teams build the skills needed to respond to evolving expectations.

Where to find detailed guidance and policy updates

The full Nature-Positive Pathways guidance is available from WWF UK, which co-developed the framework and provides sector-specific resources. The Green Finance Institute offers additional analysis on financing mechanisms for nature-based solutions and investment frameworks.

The UK government’s Environmental Improvement Plan, which commits to developing these pathways, is published on gov.uk. The plan sets out broader environmental targets and the policy context for nature restoration. For businesses needing to understand the Kunming-Montreal Global Biodiversity Framework, the UN Convention on Biological Diversity provides the full text and implementation guidance.

The UK Centre for Ecology and Hydrology contributes scientific research underpinning the pathways and publishes data on UK ecosystem health. Companies developing transition plans will find evidence-based resources on habitat restoration, biodiversity measurement, and nature-based solutions.