Biodiversity Net Gain (BNG): What it is, how it is calculated, and what role XNatura plays

1. What is Biodiversity Net Gain (BNG) and what is its purpose?

Biodiversity Net Gain (BNG) is an approach to development that aims to leave biodiversity in a measurably better state than it was before the start of a project or intervention, with the goal not only of mitigating environmental damage but also of ensuring a net increase in biodiversity and natural capital.  In this way, BNG transforms a project from an activity that could harm nature into an opportunity to enhance the wealth of life, protecting and valuing ecosystems, thereby establishing an economic value for natural capital.

The UK was the first country in the world to make biodiversity impact a legal requirement in construction: from 2023, all major residential developments are required to provide at least 10% of biodiversity compared to the situation prior to the interventions. Environmental compensation can occur either on-site or at other locations. In either case, the aim is to achieve a 10% increase in overall biodiversity.

What is the value of this type of regulation? 

• Environmental responsibility: ensures that business activities positively contribute to nature, going beyond the simple concept of emissions offsetting to look more broadly at the environment.
• Reputational value: enhances the company's image and relationships with stakeholders, reduces environmental risks, and attracts sustainable investment.
• Ecological regeneration: encourages companies to set ambitious biodiversity regeneration targets, moving from a "damage reduction" approach to an "active regeneration" approach.

3. How does XNatura help you set environmental regeneration targets (BNG)?

The XNatura platform is the ideal tool to quantify the MSA of any area in its current state (baseline) or in a future or past scenario simply, quickly, and completely remotely, thanks to its dual capability for analysis and simulation:

<u>A. Baseline measurement and prioritization</u>

To set a biodiversity regeneration target, it is necessary first to understand the starting state of the site (or multiple sites) under analysis, defining the baseline. Here, two levels of analysis come into play:

• <u>Multi-site assessment</u>: allows for the prioritization of sites within a corporate portfolio or supply chain. By using a color-coded system and placing the sites under analysis in a prioritization matrix, it is possible to intuitively and immediately identify the sites that have a critical level of MSA or that are most exposed to natural and climatic risks, or that are located near particularly sensitive protected areas. This analysis thus allows for the identification of sites that would benefit the most from a regeneration project.
• <u>Site-specific assessment</u>: this detailed analysis allows for the collection of granular KPIs on land use, microclimate, site-associated risks under analysis, as well as knowing the MSA of the baseline and estimating it for potential future or past scenarios. 

B. Defining a regeneration target

In the Assessment section of the platform, among the metrics on the state of biodiversity, there is a panel related to the state of MSA where it is possible to set, with the support of our Nature Experts, a biodiversity regeneration target over time.

The possible targets are numerous, to be set based on the ambition and commitment of the company. Our team of Nature Experts guides not only in defining the targets but also in providing support to achieve the targets over time: our regeneration projects indeed help restore biodiversity measured as equivalent hectares regenerated. 

C. Simulation of Scenarios for regeneration (BNG)

The Scenarios section of the platform is the key tool for realistically defining what the regeneration targets might be:

• The modification of land cover simulates potential changes in land use (for example, converting impervious areas into wetlands or restoring forest habitats).
• The platform immediately calculates how the simulated change in land cover will impact environmental metrics, particularly the Mean Species Abundance (MSA).
• BNG goals - target setting: by comparing the current scenario with the post-intervention simulated scenario, the platform quantifies potential BNG (in absolute value and delta). This allows for defining a realistic and measurable BNG target even before starting a field project.

In summary, XNatura transforms the calculation and achievement of BNG from a complex exercise into a strategic and data-driven process, linking remote analysis to the planning of measurable regenerative interventions.