Exploring Nature-Positive Buildings: Biodiversity and the Built Environment

Built environment now drives 30% of global biodiversity loss

The construction sector faces a defining challenge. New research shows buildings and infrastructure account for nearly 30% of worldwide biodiversity loss. Moreover, the industry consumes half of all raw materials extracted globally and generates 40% of waste streams.

A report developed by Arup and the World Business Council for Sustainable Development examines these impacts in detail. The research provides practical strategies for businesses working to reduce their environmental footprint. For companies in construction, property development, and urban planning, the findings carry direct commercial implications.

The built environment contributes 40% of global CO2 emissions. Consequently, firms are under pressure from regulators, investors, and clients to demonstrate measurable progress. This report offers a framework for addressing both climate and nature risks through integrated planning.

UK businesses face additional scrutiny. Biodiversity Net Gain became mandatory in England earlier this year, requiring developments to deliver a 10% improvement from pre-construction baselines. Similar policies are emerging across Australia and the European Union.

Urban expansion threatens ecosystems in biodiversity hotspots

Between 2000 and 2012, the global built environment expanded by 66%. This rapid growth has destroyed habitats at an unprecedented scale. Research identifies 423 cities projected to expand into tropical moist forests, with 90% of that expansion concentrated in biodiversity-rich regions.

The problem extends beyond direct land use. Over 80% of wastewater from urban areas enters ecosystems without treatment. Construction waste will reach 2.2 billion tonnes annually by 2025, with 77 million tonnes sent to landfill each year. These figures represent both environmental damage and wasted commercial value.

Urban areas in Africa, Asia, and the Americas face particular risks. Some 383 cities sit within biological hotspots where expansion threatens intact ecosystems. As urbanization accelerates, these pressures will intensify. The built environment could claim 2 million hectares of arable land yearly if current trends continue.

The scale of extraction compounds the challenge. Materials like concrete, steel, and aggregates dominate construction. Therefore, impacts occur far from building sites, in quarries, mines, and processing facilities. This creates hidden costs that traditional assessments often miss.

Embodied impacts outweigh site effects by 20 to 1

A companion report, Exploring Nature-Positive Buildings, published in October 2024, reveals a critical finding. Embodied impacts from materials account for 95% of a building’s biodiversity footprint. Site-based effects represent just 5%. This overturns conventional thinking about where environmental harm occurs.

The research examined impacts across five systems: land, air, freshwater, ocean, and biodiversity. Extraction and processing of raw materials emerged as the dominant factor. For businesses, this means supply chain decisions matter more than many on-site measures.

The report outlines four priorities for action. First, think globally by acknowledging impacts from material extraction and processing. Second, consider the whole lifecycle of buildings from construction through demolition. Third, take immediate action using circular economy principles to reduce virgin material use. Fourth, engage across the value chain because nature impacts remain poorly understood.

These findings reshape procurement decisions. Specifying recycled content, designing for disassembly, and sourcing responsibly harvested materials deliver measurable benefits. However, quantifying these improvements requires new assessment methods and data sharing across supply chains.

Nature-based solutions cost half as much as traditional infrastructure

Research shows nature-based solutions deliver better value than conventional approaches. They cost 50% less than grey infrastructure while providing 28% more benefits. Examples include green roofs, rain gardens, urban wetlands, and permeable paving systems.

These interventions address multiple objectives simultaneously. Green infrastructure manages stormwater, reduces urban heat, improves air quality, and creates habitat. Consequently, they appeal to finance teams focused on whole-life costs and risk reduction.

British businesses can reference established guidance. CIRIA publishes technical standards for sustainable drainage and urban greening. BREEAM and LEED certification schemes reward nature-based design features. The UK government’s Nature Recovery Network aims to create 500,000 hectares of wildlife habitat by 2025.

Arup’s BiodiverCities by 2030 initiative envisions cities as living systems. The framework treats urban areas as integrated ecosystems where built structures work alongside natural capital. According to the research, cities that adopt this approach enhance climate resilience and human wellbeing while supporting biodiversity.

Case studies demonstrate commercial benefits beyond environmental gains. Developments with quality green space attract higher footfall and rental values. Furthermore, staff wellbeing improves in buildings with natural features, reducing absence and improving productivity.

Mandatory biodiversity net gain reshapes planning requirements

England’s Biodiversity Net Gain requirement took effect in early 2024. Developments must now demonstrate a 10% improvement from pre-construction ecological baselines. Planning authorities assess proposals using the biodiversity metric developed by Natural England.

The policy applies to most new developments. Exemptions exist for certain brownfield sites and permitted development rights. Nevertheless, the rule affects thousands of projects annually. Developers who fail to meet the threshold face delays or refusals.

Meeting the standard requires early ecological assessment. Surveys must capture baseline conditions before applications proceed. Design teams then integrate habitat creation, enhancement, or off-site compensation. Gains must be maintained for at least 30 years under legal agreements.

Similar policies are spreading internationally. Australia is developing biodiversity offset schemes across multiple states. The European Union’s Nature Restoration Law includes provisions for development impacts. Businesses operating across jurisdictions need consistent approaches to ecological assessment and mitigation.

Key information for businesses in construction and property

• The built environment drives 30% of global biodiversity loss and consumes 50% of extracted raw materials.
• Embodied impacts from materials cause 95% of a building’s biodiversity footprint, far exceeding site-based effects.
• Nature-based solutions cost 50% less than traditional grey infrastructure and deliver 28% more benefits for urban areas.
• Biodiversity Net Gain became mandatory in England in 2024, requiring a minimum 10% improvement from pre-construction baselines.
• Construction waste will reach 2.2 billion tonnes annually by 2025, with 35% of that total sent to landfill each year.
• Urban expansion could claim 2 million hectares of arable land yearly, with 383 cities threatening biodiversity hotspots.
• Over 135 companies have committed to operational carbon reduction through the World Green Building Council’s net zero pledge.

Practical steps for reducing biodiversity impacts

Businesses can start by mapping their material supply chains. Understanding where extraction occurs reveals hidden impacts and risks. This knowledge informs decisions about specifications, suppliers, and sourcing regions. Companies should prioritize materials with Environmental Product Declarations that include biodiversity metrics.

Circular economy principles reduce dependence on virgin resources. Design for disassembly allows components to be reused in future projects. Specifying recycled content lowers embodied impacts. Furthermore, extending building lifespans through adaptive reuse avoids demolition waste and new material demand.

On-site measures still matter, particularly for planning compliance. Early ecological surveys establish baselines for Biodiversity Net Gain calculations. Design teams should integrate habitat features from the outset rather than treating them as add-ons. Green roofs, wildlife corridors, and sustainable drainage systems serve multiple functions.

Collaboration across the value chain produces better outcomes. Developers, contractors, material suppliers, and ecologists need shared data and aligned objectives. Industry initiatives like the World Green Building Council’s pledge provide frameworks for collective action. Over 135 companies, including major UK developers, have committed to operational carbon reduction and nature-positive approaches.

Training and capability building support implementation. SBS Academy training programs help teams understand ecological assessment methods and circular economy principles. Upskilling project managers and procurement teams ensures nature considerations inform decisions throughout project lifecycles.

Supply chain transparency reveals hidden environmental costs

Most biodiversity damage occurs upstream in supply chains. Quarrying, mining, forestry, and materials processing affect ecosystems far from construction sites. Therefore, businesses need visibility into supplier practices and sourcing locations.

Procurement policies should require environmental data from suppliers. Questions about extraction methods, habitat restoration, and certification schemes identify responsible sources. Materials from certified sustainable forestry or responsibly sourced aggregates reduce risks. However, verification remains challenging without industry-wide standards.

Lifecycle assessment tools increasingly incorporate biodiversity metrics. Software platforms can model impacts from material choices and compare alternatives. These capabilities support decision-making during design phases when changes are most cost-effective. Nevertheless, data quality varies and standardization is still developing.

Companies pursuing ESG compliance and sustainability reporting face growing expectations around nature impacts. Investors and lenders use frameworks like the Taskforce on Nature-related Financial Disclosures to assess risks. Demonstrating active management of biodiversity impacts strengthens positions with financiers and meets emerging disclosure requirements.

Integration with net zero strategies creates co-benefits

Nature-positive approaches align closely with carbon reduction goals. Many interventions deliver both biodiversity and climate benefits. Green infrastructure sequesters carbon, manages flooding, and creates habitat simultaneously. Material efficiency reduces both emissions and ecological impacts from extraction.

Circular economy strategies exemplify this alignment. Using reclaimed materials avoids embodied carbon and biodiversity impacts from manufacturing. Timber from sustainably managed forests stores carbon while supporting forest ecosystems. Consequently, integrated strategies prove more efficient than addressing climate and nature separately.

Arup has committed to net zero operations by 2030 while aligning projects with natural systems. This dual focus reflects industry recognition that climate and biodiversity crises are interconnected. Solutions must address both challenges to build genuine resilience.

The built environment sector influences outcomes across entire value chains. Decisions about specifications cascade through supply networks, affecting extraction, processing, transport, and waste management. Therefore, sector leadership can drive systemic change beyond individual projects.

For UK SMEs working in construction and property, support is available for carbon reporting and net zero planning. Integrating biodiversity considerations into existing programs creates efficiency and meets multiple objectives within limited resources.

Regulatory momentum builds across multiple jurisdictions

England’s Biodiversity Net Gain represents the most developed mandatory scheme. However, Scotland, Wales, and Northern Ireland are considering similar requirements. Devolved administrations recognize the need for consistent approaches while adapting policies to local contexts.

The European Union’s Nature Restoration Law establishes binding targets for ecosystem recovery. Member states must restore 20% of land and sea areas by 2030. Although the UK is no longer bound by EU law, similar expectations are emerging through planning policy and environmental legislation.

Australia’s biodiversity offset schemes vary by state but follow similar principles. Developers must compensate for unavoidable impacts through habitat creation or restoration. These policies create markets for ecological credits, introducing commercial mechanisms for nature recovery.

International standards provide consistency for multinational businesses. The Science Based Targets Network is developing guidance for nature targets alongside climate commitments. This framework helps companies set measurable objectives and track progress across portfolios.

Further reading

The full report on biodiversity and the built environment is available on edie.net. The publication includes case studies, implementation frameworks, and technical guidance for businesses.

Arup and the World Business Council for Sustainable Development published Exploring Nature-Positive Buildings in October 2024. This companion report examines lifecycle impacts in detail and provides assessment methodologies.

The BiodiverCities by 2030 initiative offers a vision for integrating cities with natural systems. Resources include planning frameworks and examples from cities implementing nature-based approaches.

The UK government provides detailed guidance on Biodiversity Net Gain through the Department for Environment, Food and Rural Affairs. This includes the biodiversity metric, statutory instruments, and planning practice guidance.

CIRIA publishes technical standards for sustainable drainage and urban greening. These resources support practitioners designing nature-based solutions within UK planning and building regulations.