Making the most of our natural capital to reach net zero

Sustainability is arguably at or near the top of the agenda for individuals and organisations now more than ever as net zero targets get closer. But the green landscape can be difficult to navigate given the number of buzzwords and phrases that abound.

A new edition of The Scotsman’s Sustainable Scotland podcast, in partnership with independent UK law firm Burges Salmon delves into the topics of natural capital, sustainable land use and nature-based solutions to help listeners make sense of these concepts and their role in the push to net zero.

Taking part in the podcast from Burges Salmon are: Stuart McMillan, a finance partner who advises lenders and borrowers on a range of projects, including those with elements of renewable, solar and wind power; Sarah Sackville Hamilton, a director in the firm’s environment team who helps clients to navigate environmental, regulatory and contractual issues and to bring forward net zero and sustainability projects; and Ross Simpson, a real estate partner who specialises in land and rural property, advising on many nature capital and ecosystem services projects.

Simpson says: “When we say nature-based solutions we're essentially talking about nature restoration projects. These are designed to create, enhance or protect various forms of natural capital. By natural capital we mean nature stocks, natural resources, and the likes of woodlands, peatlands, soils, hedgerows, rivers and waterways. Nature-based solutions can be used to generate ecosystem services that can then be monetised.”

Sarah Sackville Hamilton | Burges Salmon

According to Sackville Hamilton natural capital markets in the UK are relatively nascent, but growing rapidly. She adds: “There are both voluntary markets and compliance markets.

In terms of the role natural capital has to play in the sustainability journey, McMillan says: “We’re lucky in Scotland in that we have a landscape that sets us up quite well to get us to net zero, including offshore and onshore wind. But natural capital and natural capital markets also have a huge and growing part to play as we need a mix of different ways to get to net zero. And the market is realising that, everyone is really converging on this market and it will increase over the next 10 or 15 years.”

Notably, Burges Salmon acts for Oxygen Conservation, a company committed to protecting and restoring nature and the built environment through conservation projects focused on delivering positive environmental and social impact. The firm advised on all of its ten land acquisitions, including in Scotland, where the firm advised on a landmark multi-million-pound loan facility made by Triodos Bank in what is believed to be the largest conservation-focused commercial debt package in the UK to date.

Burges Salmon, which celebrates its fifth anniversary in Edinburgh this year, has a range of programmes aimed at delivering on its ESG priorities and the firm was amongst the first in the UK legal profession to announce its commitment to being a net zero business by 2026. The firm is well on track to deliver on its promise through a combination of continued energy reductions, efficiency gains and investment in high-quality carbon offsetting projects. The firm’s commitment to ESG was recognised last year with Burges Salmon named Overall Leader in the Lamp House Strategy Responsible Business Annual Report, the only firm to rank in the top 5% across the three leaderboards – people, planet and governance.

Click here for the podcast.