How the UK’s Biodiversity Net Gain Law Impacts Businesses
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In a world where biodiversity loss is accelerating, the UK’s Biodiversity Net Gain (BNG) law represents a significant shift in the way businesses approach their impact on nature. Introduced under the Environment Act 2021, the BNG requirement mandates that all new developments deliver a measurable 10% improvement in biodiversity value compared to pre-development conditions. Taking full effect in November 2023, this law is already reshaping property, energy and infrastructure projects, setting a global precedent for integrating conservation into economic activity.
But what does this mean for businesses?

The Business Impact of BNG
For property developers and energy companies, the BNG law is more than a regulatory box to tick. It demands fundamental changes to how projects are planned, executed, and maintained. The legislation requires:
- Comprehensive Biodiversity Assessments: Developers must establish a baseline ecological value for their project sites, measured using the Department for Environment, Food and Rural Affairs (DEFRA) Biodiversity Metric.
- Actionable Plans for Net Gain: Projects must be designed to enhance or create habitats that achieve at least a 10% net gain, either on-site or through off-site offsets. These plans must be submitted to Local Planning Authorities (LPAs) and maintained for 30 years.
- Transparent Reporting: Businesses must provide detailed biodiversity impact reports, including baseline measurements, biodiversity unit calculations, and strategies for achieving compliance.

Failure to meet these requirements can lead to delays, financial penalties, and reputational risks. Yet, for forward-thinking businesses, the BNG law presents an opportunity to lead in environmental stewardship, gain competitive advantage, and align with growing stakeholder expectations for sustainable practices.
The UK’s BNG law is a wake-up call for businesses worldwide, biodiversity is no longer an afterthought but a critical component of sustainable development. For property developers, energy companies, and other stakeholders, compliance is both a challenge and an opportunity to lead in building a nature-positive future.

With Xylo Systems, businesses gain an easier way to measure, manage, and act on biodiversity impact, helping to preserve our planet’s natural heritage while driving innovation and growth. Together, we can save species faster and build a flourishing world where wildlife thrives alongside business.
Book a free demo today: https://www.xylo.systems/request-a-demo.