Biodiversity Net Gain in Property Development

In recent years, the concept of biodiversity net gain has emerged as a key component of sustainable property development. This principle is particularly relevant in the UK, where rising urbanisation and industrial expansion have put increasing pressure on natural habitats.

In response, property developers are now expected not only to minimise their environmental impact but to actively enhance biodiversity within and around their projects. This shift in focus is vital to restoring ecological balance, and its application in the property sector – particularly for large-scale developments – is becoming increasingly important.

Panattoni, a world leader in industrial logistics property development, is implementing biodiversity strategies at huge scale across the UK. To find out more about biodiversity net gain, why it is important, and how it is delivered, read on.

What is biodiversity net gain?

At its core, biodiversity net gain is a policy-driven approach that ensures development projects leave the natural environment in a measurably better state than before. This is achieved by creating new habitats, restoring existing ones, or enhancing the ecological potential of the land after construction. The policy requires developers to assess the biodiversity value of a site before beginning construction and then deliver a measurable improvement to this baseline value.

For example, when planning a warehouse development, the developer might undertake efforts such as planting native trees, creating wildflower meadows, or installing bird boxes. These enhancements contribute to the overall biodiversity of the area, ensuring that the development is ecologically beneficial. This approach represents a significant evolution in the way land development is managed, moving beyond simple mitigation of damage to an emphasis on positive environmental contributions.

The benefits of biodiversity net gain extend beyond environmental improvements. Projects that promote ecological variety often create green spaces, improve air quality, and contribute to the well-being of the surrounding communities. Moreover, the restoration of ecosystems can help mitigate climate change, improve flood resilience, and support a diverse array of species, both flora and fauna.

What is the role of legislation?

The drive toward biodiversity net gain in the UK is underpinned by a robust legislative framework that reflects the growing recognition of the importance of environmental sustainability. Central to this is the Environment Act 2021, which sets legally binding targets to address biodiversity loss, improve air and water quality, and combat climate change. One of the most significant outcomes of this legislation is the mandatory requirement for most development projects to deliver a biodiversity net gain of at least 10%.

The Environment Act mandates that developers assess the pre-development biodiversity value of a site and then demonstrate how they will improve this value through enhancements, such as creating new habitats, restoring degraded ecosystems, or providing suitable compensation measures off-site if on-site improvements are not viable. The Act introduces the Biodiversity Metric 3.0, a tool that helps developers quantify biodiversity gains and losses, ensuring transparency and accountability throughout the planning process.

Furthermore, the National Planning Policy Framework (NPPF), which guides local planning authorities in the decision-making process, emphasises the need for developments to conserve and enhance biodiversity. Under the NPPF, local councils are required to ensure that new developments provide biodiversity benefits, aligning with the wider goals of the Environment Act.

This legislative backdrop creates a clear pathway for biodiversity net gain to become a standard practice across the property development sector. By embedding biodiversity net gain into their projects, developers not only comply with legislation but also position themselves as leaders in a sector that is increasingly focused on long-term environmental resilience.

The Environment Act’s mandatory requirement for a 10% biodiversity net gain came into force in November 2023, making it essential for developers to adapt their planning processes now to meet this challenge. Panattoni, with its forward-thinking approach, has already embraced these changes, ensuring that its projects align with both current and upcoming legislative demands while contributing to a more biodiverse and resilient landscape.

What is the biodiversity net gain process?

Achieving biodiversity net gain requires a systematic approach, beginning with a detailed assessment of the site’s current ecological status. Developers must first conduct ecological surveys to determine the types and abundance of species present, as well as the quality of the habitats they occupy. This establishes a biodiversity baseline, which serves as the foundation for setting goals and planning future enhancements.

Once the initial assessment is complete, the developer collaborates with environmental consultants, ecologists, and planners to design a strategy that will ensure the project achieves a measurable biodiversity net gain. Crucially, the strategy must not only replace lost biodiversity but also improve the ecological value of the site compared to its pre-development state.

The planning phase is followed by implementation, where work to enhance biodiversity begins on the ground. This can include land grading to create habitats, the planting of native vegetation, and the installation of features that support wildlife. It is essential that these actions are carefully monitored to ensure they are effective.

Post-development, a long-term monitoring plan must be established, often over several decades, to confirm that the biodiversity net gain goals have been achieved and maintained. This ensures that the positive impacts are sustained well into the future.

What can developers do to boost biodiversity net gain?

To meet the requirements for biodiversity net gain, property developers undertake a range of activities aimed at enhancing the natural environment around their projects. These activities are designed not only to restore and protect local ecosystems but also to create new habitats that boost overall biodiversity. These enhancements are carefully integrated into the planning and design phases to ensure long-term environmental sustainability.

Green corridors

One common approach is the creation of green corridors, which link habitats and allow wildlife to move freely between areas. These corridors can be designed to accommodate a variety of species, from small mammals to pollinating insects, and may include hedgerows, wildflower meadows, and strips of native vegetation. By promoting ecological connectivity, developers help to mitigate the fragmentation of habitats, a common issue in industrial landscapes.

Woodland restoration

Another important activity is tree planting and the restoration of woodland areas. Trees not only provide critical habitats for birds, insects, and other wildlife but also contribute to carbon sequestration, aligning with broader climate change goals. Developers often select native species for tree planting schemes, ensuring that these new habitats are suited to the local environment and resilient to changing conditions.

Aquatic environments

Water features such as ponds, swales, and wetlands are increasingly integrated into industrial developments to support biodiversity. These features attract a wide variety of species, including amphibians, birds, and aquatic plants. In addition, they contribute to sustainable drainage systems (SuDS), helping to manage surface water runoff and reduce the risk of flooding. By incorporating water-based habitats, developers can create a rich mosaic of ecosystems that offer year-round support to biodiversity.

Habitat creation

The installation of artificial nesting and roosting structures is another method developers use to encourage wildlife on-site. Bird and bat boxes, for example, provide safe breeding grounds for species that may otherwise struggle to find suitable habitats in industrial areas. These structures can be integrated into existing buildings or positioned around the site, ensuring minimal disruption to the surrounding environment while enhancing biodiversity.

Rewilding

In larger developments, like those undertaken by Panattoni, developers may also create extensive natural spaces, such as rewilding areas, where ecosystems are allowed to regenerate with minimal human intervention. This process can involve the reintroduction of native plants and wildlife, helping to restore balance to previously degraded areas. Over time, these natural spaces become thriving habitats, contributing to the overall biodiversity net gain of the project.

Why is biodiversity net gain important to large scale projects?

Large scale projects stand to benefit significantly from biodiversity net gain strategies. Developments such as housing estates or industrial logistics warehouses often occupy extensive plots of land, which can lead to substantial habitat loss if not properly managed. Incorporating biodiversity enhancements into the design of these developments helps mitigate the environmental footprint of construction, while also delivering wider ecological and social benefits.

Given the scale and permanence of developments, long-term planning for biodiversity is critical. By integrating green spaces, enhancing habitat corridors, and encouraging wildlife, large scale developments can transform otherwise sterile landscapes into vibrant ecosystems. This not only contributes to local biodiversity but also fosters a more positive relationship between new developments and the surrounding communities.

What are Panattoni doing for biodiversity net gain?

Panattoni UK has positioned itself as a leader in the industrial logistics warehouse industry, not just by delivering high-quality, flexible warehouse solutions such as their recent industrial units in Avonmouth, but also by embedding sustainability and biodiversity into its developments. The company is committed to aligning its projects with national sustainability goals and achieving measurable biodiversity net gain across its developments.

Panattoni Park Aylesford

One standout example of Panattoni’s leadership in this area is the Panattoni Park Aylesford project. Located in Kent, the park is a major new logistics hub, but it also serves as a benchmark for how biodiversity net gain can be seamlessly integrated into industrial development.

From the outset, Panattoni undertook extensive ecological surveys to assess the site’s biodiversity and identify opportunities for enhancement. The result was a carefully crafted biodiversity strategy that included planting native trees and shrubs, establishing wildflower meadows to support pollinators, and enhancing wetland areas to attract amphibians and bird species. A large section of established and high value shrubbery was also retained. The company also installed bat and bird boxes throughout the site, creating new habitats for local wildlife.

The result of this strategy was a biodiversity net gain exceeding the mandatory 10%.

Developing for the long term

The importance of biodiversity net gain in property development will only continue to grow in the coming years, as environmental regulations tighten and society places greater emphasis on sustainability. Companies like Panattoni are leading the way by demonstrating that industrial development and ecological enhancement can go hand in hand.

By building warehouses that not only meet the functional needs of businesses but also contribute to local biodiversity, Panattoni is helping to create a more sustainable future. This approach not only benefits the natural environment but also provides long-term value to communities, businesses, and the wider economy. By adopting best practices, the company showcases its commitment to delivering high-quality developments that reflect the industry’s evolving responsibilities towards the environment.

Conclusion

Biodiversity net gain represents a fundamental shift in how property developments, particularly industrial properties, are planned and executed. By focusing on enhancing local ecosystems and improving biodiversity, developers can create projects that leave a positive legacy for future generations.

Panattoni is at the forefront of this movement, delivering industrial spaces that balance economic needs with ecological responsibility. Through careful planning, implementation, and long-term stewardship, Panattoni is shaping the future of warehouse development – ensuring that its projects contribute to a greener, more sustainable world.