The Growth of Rewilding a Natural Capital Benefits Business  – Scottish Business News

An Article by Joanna Waddell

The concept of “rewilding” has grown in prominence over recent years, often focused on the reintroduction of wild species, including lynx and wolves, to rural parts of Scotland. Rewilding does however extend beyond that narrow scope and covers a much wider platform of natural capital projects aimed at restoring our natural habitat to its best possible ‘wild’ condition. 

This includes restoration or prevention from degradation of ecosystems that may no longer be thriving due to human interference. This can be achieved through small actions such as the installation of grass roofs or the creation of sustainable drainage systems (SuDS) ponds or through bigger initiatives focused on promoting reforestation of large areas.

When successful, this process will restore nature, increase biodiversity and reduce the need for human input. Along with enhancing our natural environment, natural capital projects can also deliver key social and economic benefits for humans. They can be pivotal in encouraging people to spend more time connected to nature, which enhances both physical and mental health outcomes. They can also benefit businesses.

Under the two established codes, the Peatland Code and the Woodland Carbon Code, a quantity of carbon credits that a natural capital project is likely to generate can be assessed. These credits can then be sold off to generate an income and can also be purchased by a business and used to off-set their carbon emissions. In addition, businesses can use their involvement in natural capital projects as a means of enhancing their ESG credentials and bolstering their wider public image. 

Promoting and safeguarding our natural capital sits firmly within the Scottish Government’s Environment Strategy and National Strategy for Economic Transformation where it’s recognised as a key driver within a ‘wellbeing’ economy that is fairer, wealthier and greener.

Across Scotland we’ve witnessed significant progress on a number of innovative natural capital projects involving businesses and other bodies including public sector organisations contributing to this broader Scottish Government agenda. This includes the Dornoch Environmental Enhancement Project (DEEP), a partnership between whisky producers Glenmorangie, Heriot-Watt University and the Marine Conservation Society. DEEP is focused on improving water quality in the Dornoch Firth impacted by whisky distillation through innovation which is helping bring native European oysters back to the Scottish Highland coastal waters. 

Glenmorangie has invested in a £5m anaerobic digestor plant which is now purifying up to 95% of the waste water the distillery releases into the Dornoch Firth. The remaining five precent of the organic waste is naturally filtered by oysters which Glenmorangie placed in the waters near its Highland base. This biogenic oyster reef is not only improving the overall water quality of the Dornoch Firth, it is also enabling the sustainable production of native European oysters in an area they’ve been absent for more than a century. Those involved in DEEP aim to create a 40-hectare reef accommodating four million oysters by 2023 with the potential to create new jobs in Scotland’s rural economy.

This initiative has generated extremely positive PR for Glenmorangie for their key role in an important restoration project which is increasing biodiversity in Scotland. It has also enabled the company to reduce its biological impact on the Dornoch Firth. As oysters absorb carbon and store it in their shells, research is ongoing as to how this may be quantified in terms of climate benefit.  This may develop a future income stream through the reintroduction of what could once again become a highly lucrative industry.

Natural capital projects like these are also making a significant contribution towards Scotland’s aim of achieving Net Zero by 2025 and are therefore likely to attract wider support. Indeed, the Scottish Government has committed itself to developing a values-led and high-integrity market for responsible private investment into natural capital and is also taking steps to address the current lack of a regulatory regime. 

These developments suggest that businesses that are prepared to invest in innovative natural capital projects will further benefit through carbon offsetting and, in some cases, the potential creation of new revenue streams. 

Joanna Waddell is an Of Counsel and ESG specialist at law firm CMS – pictured below.