Over the past two decades, economies of scale, technological developments and decarbonization financing support have propelled the young offshore wind industry to become one of the fastest-growing marine sectors. Wind turbines are increasingly becoming larger and more powerful and wind farms are being deployed farther out at sea. As countries worldwide increase their commitments to scaling up offshore wind,51 a growing emphasis is being placed on the conditions under which projects are implemented. In Europe, China and the US, developers must conduct environmental impact assessments (EIAs) for most projects during the screening and permitting process. Additionally, many countries are considering or implementing policy frameworks to encourage nature enhancement and restoration. Notably, there has been increasing consideration for non-price criteria in auctions, such as biodiversity protection, community engagement, cooperative ownership and system integration. This incentivizes developers to contribute to broader environmental and societal goals from the beginning. These criteria vary across jurisdictions and are primarily used in mature European markets, where the Netherlands, Norway, France, Denmark, Germany and Belgium have either trial-implemented non-price criteria in some auctions or considered them.52,53 As the policy landscape evolves, many corporate leaders in the sector have already made nature commitments alongside climate targets. As a TNFD early adopter, Iberdrola has set a target of “no net loss of biodiversity by 2030” and “having a net-positive impact on biodiversity in the financial year 2030”.54 Similarly, Ørsted has committed to a net-positive biodiversity impact for all new energy projects commissioned by 2030, which means the company will actively restore and enhance ecosystems in addition to avoiding and mitigating impacts.55 To take this commitment further, Ørsted launched a framework to measure, track and report biodiversity impact across their project assets on World Ocean Day 2024. Meanwhile, Vattenfall has conducted a biodiversity footprint assessment with a full value chain perspective using the Global Biodiversity Score (GBS) tool as part of the pilot for SBTN.56 Throughout the industry, companies also increasingly see the need for nature actions that are based on meaningful engagement and aimed at creating shared value with local communities.57 Many developers have focused on innovation in nature-inclusive design to create attractive marine habitats for species and the co-use of marine space. Last year, Mingyang Smart Energy launched the world’s first wind and aquaculture integrated intelligent system, Mingyu No. 1, in China’s Guangdong Province. Mingyu No. 1 is set to provide electricity for 23,000 households and nurture 150,000 fish from high-value species such as groupers and golden pomfret.58 While these efforts are substantial, more must be done in a more systematic way. Corporate leaders should start now to assess, commit, transform and disclose – as per the ACT-D framework – in a more systematic way. As noted in the introduction, companies need to: identify, measure, value and prioritize their nature-related impacts and dependencies across their value chains to ensure they act on the most material ones; set transparent, time-bound, specific, science-based targets when material; take actions to transform their businesses; and track performance to publicly disclose material nature-related information. For more information on tools and guidance available for the ACT-D set of high-level actions, see Table 1.1.2 Progress is promising but needs to accelerate Many corporate leaders in the sector have made nature commitments alongside climate targets. Nature Positive: Role of the Offshore Wind Sector 16

Nature Positive Role of the Offshore Wind Sector