Clyde & Co partners with Nature Broking on pioneering balance sheet treatment that transforms sustainability investment from cost to asset
Global law firm Clyde & Co has struck a five-year partnership with Nature Broking to procure carbon removal credits addressing 10,000 tonnes of residual emissions annually from 2038. The deal positions the firm ahead of emerging regulatory standards, aligning with the Science Based Targets initiative’s updated framework recognising removals as essential for unavoidable emissions.
Nature Broking introduced three innovations:
Forward procurement: Credits secured in advance to hedge against rising prices and supply constraints, projected to triple or more by 2038.
Balance sheet capitalisation: Credits are treated as assets under IAS provisions, avoiding P&L penalties and enabling scale investment. This was achieved with the help of Rethinking Capital.
Risk-mitigated portfolio: Insurance via Kita and rigorous due diligence ensure high-integrity projects aligned with Clyde & Co’s operations.
Luke Baldwin, Nature Broking co-founder, said the model reframes credits as investments with appreciating asset value and strategic flexibility. Paddy Linighan, Clyde & Co’s Chief Sustainability Officer, called it “a sophisticated business case for long-term climate action,” complementing the firm’s SBTi-approved net-zero target by 2038.
The first-year portfolio spans five projects: two UK Woodland Carbon Code sites, a UK rewilding initiative with Nattergal, a Verra-certified restoration project in Kenya with Save the Children Global Ventures, and positioning for next-generation removal technologies post-2030.
The deal comes amid rapid growth in carbon markets, with $10 billion committed in the first half of 2025—triple the prior year—even while concerns over low-quality credits persist. Nature Broking’s emphasis on quality, insurance, and transparency differentiates the partnership, reinforcing Clyde & Co’s broader decarbonisation strategy.