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Why biodiversity and Nature-Based Solutions shouldn’t be treated as a standalone topic

Published on 31 Jul 2026

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Our industry is engaged in an important dialogue to improve the efficiency and resilience of real assets through transparency and industry collaboration. This article is a contribution to this larger conversation and does not necessarily reflect GRESB’s position.

Introduced by the World Bank and the IUCN in the late 2000s, Nature-Based Solutions are defined by the European Commission as cost-effective, locally adapted, and resource-efficient interventions that bring natural processes into built environments to deliver simultaneous environmental, social, and economic benefits.

As the world’s urban population is expected to rise from 55% in 2022 to 80% by 2050, cities face challenges surrounding housing availability and affordability alongside urban environmental degradation. Real estate stakeholders are forced to navigate compound pressures, balancing acute housing shortages against physical risks such as urban heatwaves and severe flooding. Nature-Based Solutions present a promising pathway to create resilient and sustainable cities, addressing climate change and biodiversity loss while positively impacting quality of life and real estate value.

Despite their proven utility, Nature-Based Solutions remain critically underfinanced. According to the United Nations Environment Programme, global investments in these solutions currently total roughly USD 200 billion annually – only one-third of the amount required to meet 2030 climate and biodiversity targets. Part of this shortfall stems from treating biodiversity as a separate, standalone ESG exercise. In reality, nature connects climate action, physical resilience, social value, and long-term financial asset performance.

Interrelation with climate resilience and mitigation

Historically, real estate has relied on traditional grey infrastructure like concrete storm drains, floodwalls, and mechanical HVAC systems to manage environmental risk. However, these solutions are typically expensive, single-function, and difficult to expand retroactively. Nature-Based Solutions effectively address the need for targeted actions to mitigate the effects of climate change. Real estate-related natural interventions – such as green roofs, living walls, green open spaces, vegetation, and permeable materials – offer a multifunctional approach to managing complex urban climate adaptation and mitigation challenges.

These interventions manage climate hazards directly at the site level. For thermal regulation, street trees alone can lower local air temperatures by up to 3°C, counteracting the Urban Heat Island effect to keep cities livable and workable while providing substantial cooling inside and outside buildings. To manage extreme climate risks, porous surfaces, rain gardens, and restored wetlands absorb surface runoff, reducing extreme flood events impact and stabilizing surrounding land. Nature-Based Solutions also provide ecological benefits such as cleaner air and water filtration. Furthermore, some of these adaptive measures can be readily implemented in existing assets without requiring full green building redesigns.

Beyond adaptation, natural solutions support direct greenhouse gas mitigation and are estimated globally to have the potential to deliver up to 30% of the global mitigation required by 2030. Integrating green space into real estate absorbs atmospheric CO2, improves air quality, and lowers energy demand for heating and cooling buildings, directly supporting net-zero targets and environmental criteria across ESG frameworks.

Interrelation with social value and well-being

Nature-Based solutions positively impact social value and well-being across multiple levels. Existing research highlights that nature-focused projects deliver significant social returns on investment.

First, studies show that residing or working near natural environments reduces stress, improves self-esteem, boosts workplace productivity, and lowers physiological fatigue. Incorporating green spaces such as parks, gardens, and tree-lined streets in real estate and construction projects promotes better mental and physical health while supporting overall property appeal.

Second, in an increasingly dense and privatized urban landscape where individuals face growing risks of social isolation, nature creates space for community development. Nature-Based Solutions improve community well-being and integration. Incorporating shared green infrastructure – such as communal vegetable gardens, free running paths, and open meeting spaces – encourages interactions and counteracts rising trends of loneliness in high-rise urban developments. Furthermore, involving local communities in the design and management of green spaces fosters civic pride, strengthens local social fabrics, and builds stronger public support during planning processes.

Interrelation with asset value and regulatory drivers

In commercial real estate, nature is becoming a key marker of asset quality. Adopting nature-positive strategies contributes to what tenants, investors, and regulators define as prime real estate: attractive, resilient, sustainable, and enjoyable places. Nature can be factored into every stage of the property life cycle – from planning and design through construction, operational use, and end-of-life. Enhancing natural features contributes to boosting occupier demand and retention, improves workplace satisfaction, lowers turnover, and supports premium rental rates. Additionally, Nature-Based features lower energy demand, ongoing upkeep and long-term maintenance expenditure.

The regulatory landscape is transforming nature from an environmental aspiration into a strict design imperative. In England, Biodiversity Net Gain mandates that new developments achieve a minimum 10% improvement in biodiversity secured for at least 30 years, where early integration avoids costly redesigns, planning delays, or expensive off-site credits. Across Europe, natural solutions directly support the EU Green Deal, the EU Biodiversity Strategy for 2030, the EU Adaptation Strategy, and the EU Taxonomy’s

objective for biodiversity restoration, while aligning with the target of no net land take by 2050. Locally, municipalities and national governments are increasingly enforcing biodiversity standards and mandating green infrastructure.

Alignment with the EU Taxonomy and ESG benchmarks opens access to green financing options such as sustainability-linked bonds and loans. At the same time, protecting physical asset values against severe weather events lowers long-term climate risk write-downs.

Integrating nature into early-stage acquisition, design, and refurbishment decisions leads to co-benefits compound across every stage of the asset life cycle. By bridging environmental performance, social well-being, and long-term financial resilience, Nature-Based Solutions offer the real estate sector a clear path toward enhanced sustainability performance and resilience.

For GRESB participants, the first step is not necessarily to install more green infrastructure. It is to understand where the portfolio interacts with and depends on nature, identify the most material risks and opportunities, and establish a strategy supported by measurable actions. This allows nature to be considered consistently across acquisitions, developments, refurbishments, and operational asset management, while strengthening the evidence available to support investor communications and GRESB participation.

References

This article was written by Lisa Patalacci, Senior Sustainability Consultant at EVORA Global. Learn more about EVORA Global here.

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