As ESG demands rise and climate risk intensifies, the UK development sector is under growing pressure to deliver more—with less. But there’s a problem: our planning system still values land by what it can yield, not by what it quietly provides. From flood defence to clean air, the natural services underpinning our built environment remain invisible on the balance sheet—and dangerously overlooked. Natural Capital Accounting (NCA) changes that. By assigning financial value to ecosystem services, it gives policymakers, planners and investors a framework to build smarter, greener, and more resilient places. It’s not just a sustainability tool—it’s a strategic advantage.
To understand the case for NCA, we first must look at what today’s land valuation models miss.
Rethinking land value: The problem with our current model
Britain’s development sector is navigating intensifying demands: lower carbon, lighter environmental footprints, and greater community alignment. Yet current appraisal models often fail to recognise the hidden assets that make places truly resilient and valuable over time.
Local green spaces, soil health, pollination, and clean water supply aren’t just environmental “nice-to-haves”—they are natural services that reduce future infrastructure costs and enhance wellbeing. But if they’re invisible on the balance sheet, they’re too often sacrificed in the name of short-term gains.
As climate risk grows, ESG regulations tighten, and Biodiversity Net Gain becomes mandatory, continuing to undervalue nature is a commercial risk in itself.
When ignoring nature becomes a business risk
The UK’s planning and development system is already moving toward more holistic frameworks. A key enabler of this shift is the Office for National Statistics (ONS) and the Department for Environment, Food & Rural Affairs (DEFRA), which together support the Enabling a Natural Capital Approach (ENCA) framework. This comprehensive guidance equips policymakers and developers with the tools and data needed to integrate natural capital into land-use and investment decisions. But uptake remains uneven, and developers face a confusing mix of environmental expectations with no standardised valuation approach. This undermines both public trust and investor confidence.
Meanwhile, leading nations, from the Netherlands to New Zealand, are embedding NCA into planning policy and land valuation. Despite being a pioneer in environmental data, the UK is at risk of falling behind.
The opportunity: Redefining success through Natural Capital Accounting
Natural Capital Accounting changes the game by quantifying and valuing nature’s contribution to development outcomes. It offers a structured way to measure, monetise, and protect ecosystem services—aligning environmental stewardship with financial logic.
For developers and infrastructure leaders, this means:
- Smarter site selection: Factor in flood risk mitigation, biodiversity, and long-term environmental cost.
- Planning success: Strengthen planning submissions with data-driven natural capital evidence.
- Community buy-in: Demonstrate holistic value beyond profit—resilience, liveability, climate adaptation.
- Future-ready portfolios: Align with ESG metrics and attract sustainability-linked finance.
BWB’s work on applying NCA for critical infrastructure in Saudi Arabia shows how these models can shape strategic land decisions – even in the most inhospitable environments and where domestic planning policy lies in its infancy – demonstrating that development and the environment can coexist. The project exemplified that incorporating natural capital into early-stage land assessments enabled decision-makers to balance ecological preservation with economic ambition, helping to optimise land use, reduce environmental degradation, and accelerate regulatory alignment. Lessons learned from this case, particularly around early-stage valuation, cross-sector collaboration, and data consistency, are directly translatable to the UK, where NCA could mean the difference between a project that stalls at planning and one that earns fast-tracked approval, public support, and long-term return.
Addressing the doubts: Practical realities and real-world answers
While the potential of NCA is significant, there are practical considerations worth acknowledging.
First, there is a valid concern that NCA could add delay or complexity to an already burdened planning system. But seen differently, NCA has the power to accelerate development by identifying risks and constraints early. Projects that quantify their environmental impact upfront are more likely to pass regulatory scrutiny and face fewer objections.
Second, some developers are wary of the perception that NCA could be used for “greenwashing” and to signal ESG compliance without meaningful action. This risk is real. But the antidote lies in transparency and genuine stakeholder engagement. NCA is a tool, not a badge. Its credibility depends on how openly it’s applied and whether it informs better, more inclusive decisions.
Next steps for embedding natural value in UK development
The message is clear: it’s time to stop seeing nature as a constraint—and start valuing it as a capital asset.
We invite planners, developers and investors to embed Natural Capital Accounting into land strategy, not just to meet regulations—but to lead with resilience, foresight, and credibility.
For developers, now is the time to invest in environmental due diligence that enhances planning success and de-risks investment. Use NCA to shape smarter, more resilient site strategies.
For local and regional planners, champion the integration of NCA into your local plans and spatial frameworks to deliver sustainable growth with measurable environmental returns.
For investors, demand natural capital data in project appraisals as a benchmark for long-term risk and value. Align portfolios with ESG mandates that look beyond carbon to holistic resilience.