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Field in the sun
Image credit: Daniel Radford, Unsplash

Forming part of the Nature and Business Resources Kit, this module explores the legal requirements that apply to businesses (including SMEs).

Environmental regulations in the UK are set out in the Environment Act 2021; a range of legislation that applies to all businesses, including SMEs.

Meadow sunset

Biodiversity reporting

Although many businesses are now considering their carbon footprint and creating climate action plans, biodiversity reporting is a new and emerging field.

Biodiversity reporting asks businesses to disclose all impacts, risks and dependencies relating to nature across their entire value chain. The main UK framework, The Taskforce on Nature-Related Financial Disclosures (TNFD), only applies to major listed organisations.

SMEs who have previously undertaken carbon reporting, or would like to explore the TNFD structure with a view to voluntary reporting, can access free tools such as TNFD in a Box, or Encore. These tools can help organisations find out more about their reliance on nature.

Remember, adhering to any existing environmental legislation relevant to your business may also support biodiversity. For example, by following noise pollution regulations, you are supporting species that use sound for navigation and mating. By following regulations on disposing or recycling of materials, such as electrical waste, you are keeping chemicals out of the soil that are dangerous for many species.

Biodiversity Net Gain is a new regulation that was adopted in February 2024, which seeks to ensure new developments are net positive for biodiversity. As it involves supporting biodiversity on land in the West of England, it is not covered in detail here. You can find out if this applies to you, and how to fulfil your obligations on the gov.uk website.