The European Union has passed a landmark Nature Restoration Law — the first continent-wide, legally binding framework of its kind — requiring member states to restore at least 20% of EU land and sea areas by 2030 and all degraded ecosystems by 2050. Approved by the European Parliament on February 27, 2024 and now in active implementation, the law is a cornerstone of the EU Biodiversity Strategy and a key signal that biodiversity risk is now a regulated compliance obligation for enterprise supply chains operating in or trading with the EU. For businesses subject to the EU Corporate Sustainability Due Diligence Directive (CSDDD), the Corporate Sustainability Reporting Directive (CSRD), or Germany’s Supply Chain Act (LkSG), the Nature Restoration Law adds a further layer of environmental due diligence requirements that must be embedded in supplier risk programmes.
What is the EU Nature Restoration Law?
The Nature Restoration Law establishes binding targets for the EU to restore at least 20% of its land and sea areas by 2030, and all ecosystems in need of restoration by 2050. It sets specific, science-based restoration targets across a broad range of habitat types and species, including:
- wetlands
- forests
- grasslands
- rivers
- lakes
- coral reefs
- pollinators
- and urban green spaces
These targets are grounded in scientific evidence and best practices. Progress against each target will be monitored, measured, and reported on a regular basis — creating an auditable trail that connects directly to corporate ESG reporting obligations under CSRD and Scope 3 supply chain disclosures.
The law also requires all EU member states to develop and implement National Restoration Plans (NRPs) by the end of 2025. Each NRP must be developed in consultation with relevant stakeholders and the public, identifying priority restoration areas and actions, as well as funding sources and projected ecosystem benefits. The European Commission provides guidance to member states and evaluates the progress and effectiveness of restoration efforts every two years.
Why is it important?
The Nature Restoration Law is a critical element of the EU’s broader climate and environmental architecture, reinforcing the Paris Agreement, the Convention on Biological Diversity, and the EU’s own commitment to climate neutrality by 2050. For enterprises, its importance extends well beyond ecological concern: nature loss is now formally classified as a material financial and operational risk under CSRD, and supply chains that degrade ecosystems face direct legal exposure under CSDDD’s due diligence obligations. Restoring nature delivers measurable co-benefits across the ESG spectrum:
Enhancing biodiversity and resilience: Reviving nature is essential for restoring ecosystem diversity and function, while building resilience against climate change, pollution, invasive species, and disease. Healthy ecosystems deliver critical services underpinning human welfare and economic activity: food security, clean water, clean air, natural medicines, recreation, and cultural value — all of which feature in CSRD materiality assessments.
Mitigating and adapting to climate change: The EU’s 2050 carbon neutrality target depends on nature restoration. Restored wetlands, forests, and soils dramatically increase carbon sequestration and reduce greenhouse gas emissions — directly supporting Scope 3 emissions reduction strategies. Natural buffers against flooding, drought, heat waves, and storms also lower operational and supply chain climate risk, a key metric under CSRD’s TCFD-aligned disclosures.
Boosting the green economy and social justice: Nature restoration drives economic transition towards circular and sustainable models, creating new employment and business opportunities — particularly in rural, agricultural, and coastal regions. It also strengthens social inclusion and community health, both of which are material considerations under LkSG’s social due diligence requirements and CSDDD’s human rights obligations.
How was it adopted?
The Nature Restoration Law was initially proposed by the European Commission in June 2022 as part of the EU Green Deal — the bloc’s comprehensive programme to make Europe the first climate-neutral continent by 2050. The proposal underwent extensive consultations involving experts, stakeholders, civil society, and the agricultural sector.
Negotiations between the European Parliament and the Council of the EU were challenging, with farming and land-use interests raising significant concerns about costs and operational burdens. After multiple rounds of discussion and compromise, a political agreement was reached in November 2023, and the final text was formally approved by the Parliament in February 2024. The law entered into force following Council approval and publication in the Official Journal of the EU, placing it firmly within the active regulatory landscape that enterprises must now navigate alongside CSDDD, CSRD, and LkSG.
Here’s a video on the EU Green Deal:
What are the next steps?
The Nature Restoration Law is now in its implementation phase, with binding deadlines coming into force through 2025 and beyond. The law’s effectiveness depends on coordinated action across member states, public bodies, the private sector, and civil society. Key upcoming milestones include:
The European Commission continues to monitor implementation and publishes progress reports every two years. It will also review and update the law as needed, ensuring coherence with related EU policy instruments including the Common Agricultural Policy, the Common Fisheries Policy, the EU Forest Strategy, and the EU Climate Law. This integration signals that nature restoration is not a standalone obligation — it is part of a systemic regulatory architecture that will increasingly affect how enterprises manage supply chain sustainability.
Member states were required to transpose the law into national legislation and adopt their National Restoration Plans by the end of 2025. They must allocate adequate financial and human resources, engage relevant stakeholders, and submit biennial progress reports to the Commission. For enterprises with EU-based operations or suppliers, these national plans will create jurisdiction-specific compliance requirements that must be tracked at the supplier level.
What does this mean for enterprise-level businesses?
The Nature Restoration Law creates significant compliance obligations and strategic opportunities for enterprise-level businesses operating in the EU — as well as those that source from or trade with EU-based suppliers. With CSDDD requiring companies to identify and address adverse environmental impacts across their supply chains, and CSRD mandating disclosure of nature-related risks and dependencies, the Nature Restoration Law adds a concrete regulatory baseline against which corporate supply chain performance will be measured. Key business implications include:
Compliance: Businesses must ensure their supply chain operations and sourcing activities do not degrade or damage ecosystems protected under EU and national restoration plans. This requires documenting restoration-relevant activities and outcomes across supplier tiers — a direct extension of existing CSDDD and LkSG due diligence obligations. Non-compliance risks include regulatory fines, procurement exclusions, and reputational damage from investor or customer scrutiny.
Innovation: Companies that proactively invest in nature-positive supply chain practices — regenerative agriculture, sustainable forestry sourcing, water stewardship, and biodiversity offsetting — will gain a competitive edge. The restoration agenda also opens new revenue streams in ecosystem services, green infrastructure, and nature-based solutions, categories increasingly funded through EU Green Deal financing mechanisms.
Reputation: With institutional investors applying TNFD (Taskforce on Nature-related Financial Disclosures) frameworks alongside TCFD, enterprises that can demonstrate quantified contributions to nature restoration will be better positioned in ESG ratings, investor relations, and customer procurement processes. Transparency about supply chain nature impacts is rapidly shifting from voluntary best practice to a stakeholder expectation — and in many cases a regulatory requirement under CSRD.
How can Certainty Software help?
Certainty Software is an enterprise-grade audit, inspection, and compliance management platform that helps organisations collect, manage, and report on sustainability data across their entire supply chain — including the nature-related metrics now required under the EU Nature Restoration Law, CSDDD, CSRD, and LkSG. By deploying Certainty Software, businesses can:
- Collect accurate, consistent, and comparable restoration and biodiversity data across business units, locations, and supplier tiers — using easy-to-use digital forms both online and offline, eliminating manual data silos.
- Report on restoration actions and environmental outcomes in real-time using customizable dashboards and reports, providing the evidence and transparency required by EU regulators, investors, and customers under CSRD and CSDDD.
- Manage non-conformances, risks, and corrective actions related to nature restoration and supplier environmental compliance — creating and delegating actions, then tracking their resolution to closure.
- Analyze and benchmark restoration and sustainability performance using powerful data analytics, identifying underperforming suppliers and highest-priority improvement opportunities across the value chain.
Trusted by hundreds of thousands of users globally across safety, quality, supply chain, and ESG functions, Certainty Software enables organisations to execute millions of accurate audits and inspections annually. Whether you’re managing CSDDD due diligence requirements, LkSG supplier assessments, or CSRD nature-related disclosures, Certainty provides the platform infrastructure to turn regulatory complexity into operational clarity.
If you’re interested in learning more about how Certainty Software can support your operations, book a demo today.
Frequently Asked Questions (FAQs)
Does the EU Nature Restoration Law affect supply chain compliance obligations?
Yes. Enterprises subject to CSDDD must identify and address adverse environmental impacts across their supply chains, including activities that degrade habitats covered by the Nature Restoration Law. CSRD also requires disclosure of nature-related risks and dependencies. Companies sourcing from land- or sea-based suppliers in the EU should assess whether their procurement activities are consistent with national restoration plans.
When do member states need to submit their National Restoration Plans?
EU member states were required to adopt their National Restoration Plans (NRPs) by the end of 2025. These plans identify priority areas, restoration actions, funding sources, and expected outcomes. Once published, NRPs will define the specific biodiversity obligations applicable to suppliers operating in each member state.
How does the Nature Restoration Law relate to CSRD reporting?
Under CSRD’s European Sustainability Reporting Standards (ESRS), companies must disclose material nature-related impacts, risks, and opportunities — including biodiversity and ecosystem degradation. The Nature Restoration Law provides the regulatory framework against which ESRS E4 (Biodiversity and Ecosystems) disclosures will increasingly be assessed by investors, auditors, and regulators.
What is the restoration target under the EU Nature Restoration Law?
The EU Nature Restoration Law sets a target to restore at least 20% of EU land and sea areas by 2030, and all ecosystems in need of restoration by 2050. Specific binding targets apply to wetlands, forests, grasslands, rivers, lakes, coral reefs, pollinators, and urban green spaces.
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