Part 5: The journey to Nature Positive: Unlocking the value of Nature-based Solutions in forestry through verified ecosystem services

This is the fifth article in our The journey to Nature Positive series, where our experts illustrate how Nature-based Solutions (NbS) can tackle societal challenges, offer additional benefits over engineered solutions, and promote a Nature-positive world.

In this article, co-authored by our specialist Dr. Ida Bailey and Jan Ihre at the Forest Stewardship Council, we explore Nature-based Solutions in forestry and the strategic role it plays in enhancing ecosystem services, building climate resilience, and unlocking new revenue through verified carbon and biodiversity credits.

As the world pivots toward a nature-positive economy, defined as halting and reversing nature loss by 2030 on a 2020 baseline, and achieving full recovery by 2050, the forestry sector stands at a critical intersection of opportunity and responsibility. Forests are not only vital carbon sinks and biodiversity reservoirs, they are also economic assets whose value can be enhanced through Nature-based Solutions (NbS). For example, they can regulate water flow and provide shading for rivers, keeping water temperatures lower in turn cooler water holds more oxygen, benefiting fish such as Atlantic salmon.

For forest managers, corporates, and impact investors, aligning with robust standards and frameworks offers a pathway to resilience, revenue, and reputational leadership.

The Forest Stewardship Council (FSC) Ecosystem Services Procedure: A Blueprint for Verified Impact

The FSC Ecosystem Services Procedure is setting a practical way forward for supporting a transition to credible NbS in forestry. This globally recognised standard enables forest managers to identify, measure, and verify five key ecosystem services:

1. Carbon sequestration and storage;
2. Biodiversity conservation;
3. Watershed services;
4. Soil conservation; and
5. Recreational and cultural services.

By following FSC’s methodology, forest managers can generate verified ecosystem service claims, which are important for attracting investment and securing premium market access. They also have the option of participating in emerging environmental markets such as carbon and biodiversity credits. Carbon credits and biodiversity credits will not be audited by FSC, but as demonstrated via many projects, it can be a separate activity beside FSC ecosystem service certification. For example, a forest certified under the FSC Ecosystem Services Procedure can also quantify its carbon storage potential, enabling the issuance of high-integrity carbon credits. Similarly, biodiversity conservation efforts could be translated into biodiversity credits, offering new revenue streams while supporting global conservation goals.

Corporate Engagement: From Supply Chains to Nature Investments

Corporates are increasingly expected to manage their nature-related impacts, dependencies and risks, particularly those embedded in complex supply chains. Frameworks like the Taskforce on Nature-related Financial Disclosures (TNFD) provide a structured approach for identifying and disclosing these risks, while the Science Based Targets Network (SBTN) guides companies in setting measurable targets for nature.
For companies sourcing timber, paper, or agricultural commodities, investing in FSC-certified forests with verified ecosystem services offers a dual benefit:

• Supply chain resilience: Forests managed for ecosystem services are more resilient to climate shocks such as fire, drought, and pests—reducing the risk of supply disruptions.
• Nature-positive contributions: Verified claims can be used to demonstrate alignment with the global goal to halt and reverse nature loss by 2030, enhancing sustainability credentials and stakeholder trust.

Furthermore, corporations can go beyond mitigation by investing in nature-positive initiatives, contributing to a nature positive world by supporting forest restoration or conservation projects that deliver measurable ecosystem and nature benefits.

Collective Action: Scaling Impact Through Collaboration and Cooperatives

Achieving a cost-effective and scalable transition to a nature-positive forestry sector also hinges on the power of collective action. Cooperatives, industry alliances, and shared platforms enable smaller forest managers and supply chain actors to pool resources, share knowledge, and access markets that might otherwise be out of reach. A compelling example is the Book Chain Project, facilitated by SLR, which brings together over 30 leading publishers to improve the sustainability of their paper supply chains. By working collaboratively, participants can influence upstream forestry practices and promote responsible timber sourcing.

This model of pre-competitive collaboration demonstrates how collective action could contribute to driving systemic change, lowering costs, increasing transparency, and accelerating the transition to verified, nature-positive outcomes across entire sectors.

Impact Investors: Financing Resilience and Regeneration

For impact investors and financial institutions, nature-based forestry projects offer compelling opportunities to generate both financial returns and environmental impact. Verified ecosystem services provide the transparency and accountability needed to de-risk investments and ensure outcomes.

Key financial benefits include:

• Increased asset value: Forests with verified ecosystem services may command higher valuations due to their multifunctional benefits.
• Revenue diversification: In addition to timber, forests can generate income from carbon and biodiversity credits, eco-tourism, and water services.
• Climate resilience: Investments in ecosystem health reduce the likelihood of catastrophic losses from wildfires, droughts, and disease outbreaks.

The Role of Robust Baselines and Reporting

Credibility is key. That’s why robust baselining and transparent reporting are essential. Methodologies such as those developed by the Wallacea Trust and the Biodiversity Futures Initiative provide standardized approaches for measuring biodiversity outcomes and issuing credits.

SLR has been instrumental in operationalizing these methodologies from developing biodiversity net gain (BNG) metrics for forestry portfolios as well as supporting the design and implementation of biodiversity credits for the voluntary market via the Wallacea Trust biocredit methodology.

These tools enable forest managers and investors to track progress, verify outcomes, and participate confidently in nature markets.

A Call to Action for Forest Stakeholders

The transition to a nature-positive economy is not a distant vision, it’s a present-day imperative. For forest managers, corporates, and investors, nature-based solutions offer a strategic advantage - they enhance resilience, unlock new revenue, and align with global sustainability frameworks.
By adopting the FSC Ecosystem Services Procedure, aligning with TNFD and SBTN, and leveraging robust measurement tools, stakeholders can lead the way in building a regenerative forestry sector, one that delivers for people, planet, and profit.

How our team can help

NbS provide a significant opportunity to accelerate sustainable approaches to addressing climate change. Delivering on this ambition will require specialists (including aquatic ecologists, hydrologists, hydrogeologists, engineers, soil scientists, economists, social scientists, and climate scientists) collaborating to plan, design and implement schemes that work and integrate with primary project outcomes.

Our team offer comprehensive ecology, and biodiversity services globally. They can support your organisation with governance and strategy advice, as well as operational project support to incorporate NbS at all stages of infrastructure developments.

To speak with one of our specialists, contact us today.

References:

Forest Stewardship Council (FSC) - Ecosystem Services Procedure:
[https://fsc.org/en/ecosystem-services-for-forest-managers](https://fsc.org/en/ecosystem-services-for-forest-managers)

Taskforce on Nature-related Financial Disclosures (TNFD):
[https://tnfd.global](https://tnfd.global)

Science Based Targets Network (SBTN):
[https://sciencebasedtargetsnetwork.org](https://sciencebasedtargetsnetwork.org)

Taskforce on Inequality and Social-related Financial Disclosures (TISFD):
[https://www.tisfd.org](https://www.tisfd.org)

Wallacea Trust – Biodiversity Credit Methodology:
[https://wallaceatrust.org/wp-content/uploads/2022/12/Biodiversity-credit-methodology-V3.pdf](https://wallaceatrust.org/wp-content/uploads/2022/12/Biodiversity-credit-methodology-V3.pdf)

Biodiversity Futures Initiative:
[https://www.biodiversityfuturesinitiative.com](https://www.biodiversityfuturesinitiative.com)

SLR Consulting – Bespoke BNG Metric for Forestry Portfolio:
[https://www.slrconsulting.com/projects/bespoke-bng-metric-for-a-forestry-portfolio](https://www.slrconsulting.com/projects/bespoke-bng-metric-for-a-forestry-portfolio)

SLR Consulting – Biodiversity Credits for the Voluntary Market:
[https://www.slrconsulting.com/projects/biodiversity-credits-for-the-voluntary-market](https://www.slrconsulting.com/projects/biodiversity-credits-for-the-voluntary-market)

SLR Consulting – The Journey to Nature Positive:
[https://www.slrconsulting.com/apac/insights/the-journey-to-nature-positive-unlocking-the-power-of-nature-based-solutions](https://www.slrconsulting.com/apac/insights/the-journey-to-nature-positive-unlocking-the-power-of-nature-based-solutions)

Book Chain Project:
[https://bookchainproject.com/home](https://bookchainproject.com/home)