Frequently asked questions.
Everything your sustainability team, auditors, and investors need to understand about biodiversity credits, our documentation, and how they fit your reporting obligations.
What is a biodiversity credit?
A biodiversity credit represents a verified improvement in ecosystem health on a defined parcel of land, measured against an independent scientific baseline. Each credit corresponds to one hectare of habitat under active conservation management, assessed against IUCN criteria and the SEEA Ecosystem Accounting framework. Credits are retired in your company's name and cannot be double-counted.
How do credits support CSRD ESRS E4?
ESRS E4 requires companies to disclose material impacts, dependencies, risks, and opportunities related to biodiversity and ecosystems. Our documentation packages map directly to the ESRS E4 disclosure structure — including location-specific impact evidence, habitat pressure mitigation data, and ecosystem condition metrics. This substantially reduces the internal effort required to compile ESRS E4 disclosures and supports the evidence base needed for limited assurance.
What documentation do I receive?
Every credit package includes: a habitat baseline assessment report, GPS boundary coordinates with GIS shapefiles (EPSG:4326), satellite monitoring imagery with timestamped change detection analysis, sign-off from an independent ecological auditor, a retirement certificate in your company's name, and a pre-formatted disclosure annex covering ESRS E4, GRI 304, and TNFD indicators. All documents are versioned and traceable to the project registry.
How many hectares do I need?
This depends on your materiality assessment and biodiversity footprint. Companies typically begin by mapping operations and supply chains against IBAT-flagged biodiversity-sensitive areas to identify where the ESRS E4 material impacts concentrate. We offer a scoping consultation that walks through this calculation — most corporate clients start with their highest-materiality sites before scaling across the full footprint.
What is the five-year assessment?
At the five-year mark, an independent ecological survey re-evaluates each project site against its original baseline. If habitat condition falls short of the committed improvement trajectory, additional compensation measures are triggered at no extra cost to the credit holder. This permanence mechanism is documented at the point of purchase and forms part of the auditable chain of evidence.
Can I include this in my sustainability report?
Yes. The documentation is structured to support ESRS E4, GRI 304, and TNFD disclosure requirements. We provide a ready-to-use disclosure annex containing all required quantitative indicators, project references, and methodology citations. Several clients have successfully brought our credit evidence within the scope of their ISAE 3000 and ISAE 3410 limited assurance engagements.
What evidence does the package contain?
Each credit package contains: a project registration certificate with registry reference number; the habitat baseline report including field survey methodology and species data; GPS boundary coordinates and GIS shapefiles; satellite monitoring imagery with independent change-detection analysis; an ecological auditor sign-off letter naming the verifying institution; a five-year commitment statement with the permanence mechanism described; and a versioned document log traceable to the project registry.
Is the documentation ISAE 3000 compatible?
The evidence package is structured with assurance procedures in mind. It references clearly defined measurement methodologies, includes chain-of-custody documentation, and all reports are versioned with issue dates. Several clients have included biodiversity credit evidence in ISAE 3000 (revised) and ISAE 3410 engagements. We are able to provide additional supporting workpapers on request if your engagement requires deeper substantiation of any specific indicator.
What is the basis for the ecological baseline?
The baseline is established through field surveys using IUCN Red List criteria, Habitats Directive (Annex I) classification, and the SEEA EA ecosystem accounting standards. Baseline surveys are conducted twelve months prior to project commencement to capture seasonal variation in species assemblages and vegetation cover. Each baseline report names the qualified ecologist responsible and the institutions whose protocols were followed.
How is satellite monitoring validated?
We use Sentinel-2 and PlanetScope imagery processed through independent analysis protocols. Each monitoring snapshot is validated by a registered ecologist who reviews the change-detection output and provides sign-off. Raw imagery files and analysis outputs are available to assurance providers on written request. Monitoring is conducted on an annual cadence with quarterly spot-checks for high-risk sites.
What geographic coordinates are provided?
Full GPS boundary coordinates and GIS shapefiles in EPSG:4326 (WGS 84) are included in every credit package. These are independently cross-referenced against the WDPA protected area registry, UNESCO Man and the Biosphere buffer zones, and IUCN Red List Ecosystem ranges to confirm that no protected-area boundary or key biodiversity area classification conflicts exist. The spatial validation summary is included as a separate annex.
How does this support Article 8 / 9 positioning?
Biodiversity credits held in a fund's portfolio provide location-specific, verified evidence of positive environmental impact. For Article 9 funds, they strengthen the "sustainable investment" threshold argument under the SFDR RTS by providing measurable improvement in ecosystem condition. For Article 8 funds, they contribute directly to the environmental characteristics component. Our reporting templates align with the RTS disclosure annexes and PAI statement requirements.
How does TNFD use biodiversity data from credits?
Under the TNFD LEAP approach, biodiversity credits provide location-specific evidence to support the Assess and Prepare phases — particularly for direct operations in or adjacent to sensitive ecosystems. Our data exports map to the TNFD's Locate, Evaluate, Assess, Prepare workflow, including ecosystem condition metrics, dependency disclosures, and pressure-state-response indicators. API access is available for institutional clients needing portfolio-level integration.
How do I aggregate credits across a fund portfolio?
Our investor dashboard provides fund-level aggregation across all credit positions, with output formats compatible with SFDR PAI statement templates and TNFD Annex disclosures. Total hectares under improvement, biome coverage, IUCN threat category distribution, and geographic spread are all surfaced at portfolio level. Clients with complex multi-fund structures can request a custom data export schema.
What is the minimum for the institutional tier?
The institutional tier begins at 50 credits (50 hectares). This tier includes a dedicated account manager, customised reporting templates matched to your disclosure framework, advance access to new project allocations before public release, and a direct line to our ecological advisory team for methodology queries during assurance processes. Contact us to receive institutional tier pricing and project availability.
What is the difference from a carbon offset?
Carbon offsets measure a reduction or removal of greenhouse gas emissions, typically expressed in tonnes of CO₂ equivalent. Biodiversity credits measure verified improvements in ecosystem health — species richness, habitat connectivity, soil integrity, and hydrological function — expressed per hectare. They address different environmental problems and sit within different regulatory frameworks. Some projects qualify for both instruments, but the underlying metrics, additionality tests, and disclosure standards are independent.
Are these credits transferable?
Credits are transferable before retirement. Once retired in a company's name, they cannot be transferred or re-sold. All transfers are recorded in the project registry with timestamps and counterparty details, ensuring no double-counting is possible. Secondary market transfers require registry approval and incur a small administrative fee. Retired credits remain searchable in the public registry in perpetuity.
When is market regulation coming?
The EU Nature Restoration Law and related biodiversity credit standards are in active development, with consultation phases ongoing through 2025–2026. The Kunming-Montreal Global Biodiversity Framework (GBF) Target 19 specifically references scaling private finance for nature, and several national governments are piloting voluntary market frameworks. Our credit methodology is designed to align with the emerging EU and IUCN standards, and we update documentation protocols as regulatory guidance is confirmed.
How are projects selected?
Projects go through a multi-stage selection process: site identification against IBAT priority maps and key biodiversity area registers; an independent ecological baseline assessment; legal verification of land tenure and absence of unresolved community disputes; community consultation where local populations are present; and a final review by our scientific advisory panel. We do not accept projects in areas with contested land rights, and all project sites are publicly listed in the registry with their selection rationale.
Still have questions?
Our team can walk through your specific reporting context, assurance scope, or portfolio structure.
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