What does natural capital mean for Australian businesses, and where do organisations start when it comes to taking meaningful action for nature? We asked Paul Della Libera, Landcare Australia’s Head of Natural Capital and Landcare CarbonSMART, to share his insights on biodiversity, natural capital and the opportunities for businesses to contribute to positive environmental outcomes.
Paul, what are the biggest shifts you’ve seen in corporate climate and nature strategies recently?
Over the last 12 months we’ve seen an increasing understanding of nature and climate risk exposure, with a clear shift from target-setting to implementation and value creation. Companies are moving beyond broad net-zero commitments and focusing on tangible actions that strengthen resilience, reduce supply chain risk and deliver measurable outcomes.
A second trend is the convergence of climate and nature strategies. Businesses increasingly recognise that carbon, biodiversity, water, soil health, and landscape resilience are interconnected. As a result, there’s growing interest in integrated, nature-based solutions that can deliver both emissions reductions as well as broader environmental benefits. Landcare CarbonSMART reflects this shift, focusing on eligible Australian projects that create landholder value, generate verified carbon sequestration while also delivering positive outcomes for nature, regional communities and landscape health.
We’re also seeing organisations place greater emphasis on projects supported by credible data and the need to demonstrate real impact rather than simply report ambition.
What challenges are you seeing in the corporate sector around Scope 3 emissions?
One of the biggest challenges around Scope 3 emissions is data quality and visibility. Many companies rely on complex supply chains that extend across multiple tiers, making it difficult to obtain accurate, consistent emissions data and identify the most effective reduction opportunities.
We’re also seeing organisations move beyond simply measuring Scope 3 emissions and focus on supplier engagement and broad emissions reduction approaches. This requires collaboration, capability building, and often significant changes in procurement and operating practices.
How do you think companies can work with their suppliers to reduce emissions while creating positive outcomes for nature and local communities?
Companies can achieve the greatest impact by working collaboratively with suppliers to reduce emissions at the source while supporting more sustainable land management practices. This means moving beyond reporting requirements and investing in programs that help suppliers improve productivity, build resilience, and adopt practices that benefit both climate and nature.
We’re seeing growing interest in initiatives such as supporting agriculture, biodiversity restoration and landscape-scale carbon sequestration projects that can reduce supply chain emissions while supporting regional communities. When businesses take a long-term partnership approach, benefits are amplified.
With more organisations adopting the TNFD framework, how can environmental restoration projects help businesses manage nature-related risks and opportunities?
As more organisations adopt the TNFD framework, environmental restoration projects are becoming an important way to both manage nature-related risks and capture new opportunities.
Restoration activities such as revegetation, biodiversity enhancement, and sustainable land management can help improve ecosystem resilience, reduce exposure to climate and nature-related impacts, and strengthen supply chain security. This is where approaches such as Landcare CarbonSMART can play a role, connecting businesses with high-quality environmental projects that support multiple benefits. By thinking long term, these projects offer one potential pathway to reducing future shocks and preparing for inevitable change.
What misconceptions do businesses still have about the carbon market?
One common misconception is that the carbon market is simply about offsetting emissions rather than driving real environmental outcomes. While high-quality carbon credits can play an important role, the most effective approach is to prioritise emissions reductions and use credits as part of a broader climate and nature strategy.
Another misconception is that carbon credits have a limited role to play in addressing Scope 3 supply chain emissions. When supported by robust measurement and safeguards against double counting, high-integrity carbon sequestration projects can help businesses accelerate emissions reductions across their value chains.
Businesses also often assume that all carbon projects deliver the same value. In practice, project quality, integrity, and co-benefits can vary significantly. Increasingly, organisations are seeking projects that deliver measurable carbon sequestration outcomes while also generating broader benefits for biodiversity, water, landscape resilience, and local communities.
The SBTi’s recent updates signal an important shift from target setting to delivering measurable outcomes. What does this mean for organisations planning their climate strategy?
The SBTi’s recent direction reinforces a shift from setting ambitious targets to demonstrating real-world progress and measurable outcomes. For organisations, this means climate strategies need to be increasingly focused on implementation, with clear plans to reduce emissions across operations and value chains rather than relying solely on long-term commitments.
It also highlights the importance of engaging suppliers, investing in emissions reduction initiatives, and building credible pathways to address Scope 3 emissions. From a Landcare CarbonSMART perspective, organisations that integrate high-quality carbon sequestration, nature, and land stewardship projects into their broader decarbonisation strategy will be better positioned to deliver tangible environmental outcomes while strengthening resilience and meeting stakeholder expectations.
What advice would you give to organisations looking to enter the carbon market or invest in nature-based climate solutions?
Keep it simple. Firstly, understand what problem you are actually trying to solve. Work hard with internal stakeholders to help them understand the problem the same way and solicit their support to develop solutions that deliver quality, credibility, and long-term outcomes.
Consider the work an investment – not a cost. Nature is critical infrastructure supporting every business, and therefore any steps you take in this direction is an investment in your business, suppliers and customers.
Landcare CarbonSMART is designed to help organisations invest in natural capital outcomes through eligible projects that support climate action, biodiversity enhancement and stronger communities, while generating high-quality Australian Carbon Credit Units (ACCUs) where appropriate. If you would like to explore more, please reach out to [email protected].
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