Credit: Osborne Clarke
Caroline Bush reflects on the challenges of covering the 'full gamut' of environmental law, and how nature markets have been a 'natural progression' for Osborne Clarke
Caroline Bush is an associate director in law firm Osborne Clarke's environment team, where she works with clients from multiple sectors on all aspects of nature and sustainability law - with a particular focus on natural capital.
Her role covers complex corporate and real estate transactions, waste and bioenergy projects and infrastructure projects, as well as advising clients on climate change and sustainability regulation, waste producer responsibility law and the emerging areas of biodiversity law. Bus also works closely with Osborne Clarke's Planning team on areas such as biodiversity net gain.
Caroline also works with clients as part of the firm's decarbonisation team, for example by providing strategic advice regarding approaches to ESG and natural capital or by considering the impact of net zero targets on their business.
BusinessGreen: Can you tell us a little bit about your work over the past year? What have been the highlights since last year's awards?
Caroline Bush: My work over the last year has been really varied. As an environmental lawyer I cover the full gamut of environmental law. This includes what some would see as more traditional areas such as due diligence, negotiating contracts for corporate or real estate transactions, and providing regulatory advice on environmental requirements.
What we do on a day-to-day basis has changed considerably in the last two to three years. We are increasingly advising on sustainability, which is driven in part by the volume of new sustainability legislation coming out of the EU, such as the Corporate Sustainability Reporting Directive and the EU Deforestation Regulation. This has resulted in clients who wouldn't previously have needed to engage in this space, needing to consider the impact of their business and value chain on the environment. We have been working with them to decipher the impact of the new requirements on their business and how they can prepare for new requirements.
We have also seen an increase in natural capital work over the last 12 months. We have been talking to clients about the risks and opportunities in this area for a number of years, and it has crept higher up the C-suite agenda. In the UK this is partly due to the introduction of biodiversity net gain, but there are also other initiatives driving an increased interest.
What green initiatives can we expect to see in the coming years?
We expect nature-related impact reporting to become a requirement for corporates in the next few years, as has happened for the climate-related equivalent with companies now having to report on the climate-related impacts of their business.
In terms of other measures being taken by the UK government, there does seem to be a real push at the moment to facilitate development, which has raised concerns by industry groups that this poses a risk to existing legal safeguards for nature, so we'll have to see how that plays out.
Separately though, the government is working on supporting the development of nature markets, for example with the consultation launched in April 2025 seeking views on the implementation of its principles for voluntary carbon and nature market integrity. Support for these markets could really help to drive interest and private investment in the area.
Osborne Clarke is increasingly advising in the natural capital space - What do you mean by the term and why is it so important for businesses?
In essence, natural capital refers to the monetisation of nature and what capital value can be attributed to ecosystems and the environment. Although when we use the term nature, we are also talking about the protection of nature and looking at it as an asset beyond the financial aspect.
We help our clients to navigate the mandatory requirements on natural capital as well as preparing them for what they should do even beyond mandatory obligations. This is important for businesses because they are often heavily dependent on natural capital in their supply chains. This could include the use of water, wood, and textiles, etc. Many business sectors also have a heavy impact on nature and corporates will increasingly need to measure and quantify that impact.
Why do you think we're seeing more business interest in the field of natural capital?
The interest is driven in part by an increased awareness of climate change and businesses wanting to stay at pace with the market and not fall behind in areas that could influence investor confidence. The increased awareness of the impacts of climate change has meant that businesses now acknowledge that elements of their business could be adversely affected by increased biodiversity loss and they want to ensure the longevity of their business.
In the UK, biodiversity net gain has made it necessary to engage. For example, developers now need to prove in their planning applications that they will increase biodiversity by 10 per cent in total, firstly on-site and then where necessary via off-site credits. The ability for developers to offset some or all of the 10 per cent gain required to be evidenced has driven its own market for landowners who can set aside land for off-site biodiversity net gain.
The directors' duties set out in the Companies Act 2006 involve environmental preservation and there is increasing focus, scrutiny and media attention on directors of companies showing that they are doing right by nature.
What benefits can organisations expect from natural capital projects?
The obvious benefit is the ability to enhance nature and biodiversity whilst also generating a sustainable revenue stack. For example, landowners have the ability to set land aside for biodiversity net gain and sell credits generated to a developer.
One non-financial benefit to organisations of more natural capital projects coming forward is the impact on employees' wellbeing. Studies have shown that being in nature can increase individual wellbeing, so businesses engaging in this space could also benefit as a result of this positive impact for their employees.
What are some of the common pitfalls in this space?
The carbon credit market has struggled with demonstrating its integrity and demonstrating that the money is going where it should. However, nature markets are already at something of a disadvantage - given that carbon is easily measurable in comparison to nature - and therefore a pitfall with trading nature credits is determining how they can be measured. As yet there is no single agreed metric for measuring improvements to biodiversity.
Another of the problems with natural capital is that people often take it for granted - we just don't realise how much we rely on nature and how delicately balanced it is. Climate change has caught the public imagination, but I don't think we are there yet with nature and biodiversity loss.
How is Osborne Clarke supporting companies and projects with their natural capital work?
The area of work is a natural progression for Osborne Clarke. We have been heavily involved with decarbonisation work for many years - for example, when I joined the firm in 2012 we were very busy supporting clients involved in the renewables sector. As natural capital gains more momentum it is very much in Osborne Clarke's USP to work with our clients in this space.
A good example, which is core to the new world of natural capital, is the work we are doing with EnTrade, a business which operates landscape-scale markets by bringing together businesses looking to meet their environmental goals with landholders interested in supplying nature-based projects and efficiently matching supply and demand.
We have also been providing pro bono advice to several local nature charities, including two Wildlife Trusts. This is an interesting area as these not-for-profit organisations often have considerable land holdings and can benefit from the interest in and demand for natural capital projects.
In terms of the clients we are working with, the area is totally sector agnostic. So far we have advised a wide range of clients including housebuilders, investors and big energy and utility companies, for example by providing training around biodiversity net gain and strategy regarding market position.
What are the most exciting aspects of natural capital - what's worth keeping an eye on?
The opportunity presented by nature markets is really exciting from an investment perspective both for institutional and venture capital investors.
From a personal perspective, seeing natural capital becoming embedded in business decisions is something I'm excited by. I think this will happen more in the coming months and years and will be catalysed by the introduction of new reporting disclosure requirements along the lines of those we have seen with climate-related financial disclosures.
It will be important to keep an eye on developments in this space and what is going on from a legislative perspective. Things are evolving very quickly and there is a sense of increased momentum now, both in the UK and the EU.
What policy changes do you think would make the biggest difference in terms of boosting natural capital in the UK?
At the moment there is concern that the UK government isn't showing clear commitment to biodiversity net gain and this is causing difficulty in driving investment. What is becoming increasingly apparent is that the government's current policies aren't sufficient to deliver the '30 by 30' commitment of protecting and conserving at least 30 per cent of land and sea for biodiversity by 2030. They need to be clear about what their intentions are and how they will meet those commitments.
Osborne Clarke is sponsoring the ESG Investor category at this year's UK Green Business Awards – What makes a standout ESG investor?
To be a standout ESG investor, a company needs to think creatively and determine how it can differentiate itself in this new evolving market. One example might be to work with a strategic partner, for example a local council which may value such a partnership to facilitate it to deliver its own requirements, or a technical expert who can help with the technical side of this area.
ESG investors may also want to keep an eye out for new and emerging technologies in the natural capital space which could offer investment opportunities.
Generally, this is an area where monetary returns are of course key but companies may also benefit from the positive PR resulting from investing in this area.
How are you seeing businesses respond to the perceived ESG 'backlash'?
There has been some recent evidence of a slight ESG backlash, both on a political level and in terms of organisations rowing back from sustainability and net zero commitments. However, some of this is more of a rebalancing exercise and evidence of increased sophistication in this area, in part as organisations have become more aware of the risk of greenwashing. Despite this, in my experience, many businesses are continuing with this work. While there is lots of negative press coverage suggesting an ESG backlash, some of the good news stories are not covered as widely. We need everyone to keep moving in the right direction and recognise that we can all make a difference in this space.
What would your green superpower be?
Reversing biodiversity loss and achieving global recognition of the power of nature to help secure the future of our planet.
Caroline Bush is an associate director in Osborne Clarke's environment team.
Osborne Clarke is sponsor of the ESG Investor of the Year category at the UK Green Business Awards 2025, which will take place on the evening of 11 June at The Brewery in London. You can reserve your place at the awards here.
