Sustainable investment principles for natural resources

These principles will guide responsible investment through nature markets and wider financing mechanisms that support biodiversity recovery, climate resilience, Net Zero, a greener Welsh economy and sustainable resource management. They are intended to guide decision-making across sectors and support alignment with Wales’s long-term goals under the Well-being of Future Generations (Wales) Act 2015 and the Environment (Wales) Act 2016 of providing community benefits and supporting a Just Transition. 

• investments and decision-making should consider impacts across all four well-being capitals: natural, social, economic, and cultural
• investments in Wales' natural resources should deliver benefits, including maintaining and enhancing biodiversity, ecosystems resilience, water quality, food security, flood resilience, and carbon sequestration
• investment and decision-making should support local priorities, consider the suitability of land, freshwater, and marine areas for specific uses and seek to maintain and enhance local natural resources

• investments and decision-making should consider benefits across public, private and community interests
• investments and decision-making should seek to enhance a community’s natural resources and cultural well-being, including Welsh language and heritage
• investments and decision-making should support community wealth building by reinvesting into local communities

• engagement with local communities should be early, inclusive, and meaningful and in line with the Welsh Language Standards
• investment and decision-making should be done in collaboration with land managers, landowners, public authorities, and community groups
• investors, project developers and land managers should explore partnerships and management agreements with existing landowners

• investors should adhere to the UN’s Responsible Investment Principles
• investment should be made in accordance with the values enshrined in the Well-being of Future Generations (Wales) Act 2015
• ambitious action should be taken by investors to reduce and eliminate negative nature and climate outcomes

• investments should use supporting standards, methods and codes
• public registries should be used to ensure transparency and accountability
• the action the credits represent should provide additional environmental improvements beyond legal obligations