Treeconomy, a nature-based solutions and remote sensing technology company, and Octopus Investments (Octopus), an investment manager developing a natural capital strategy to support high-integrity carbon removal, have announced the release of a groundbreaking due diligence tool designed to enhance transparency and trust in nature-based carbon investments.
This innovative tool is the outcome of a nine-month grant funded project awarded by the UK Space Agency as part of the Unlocking Space for Business programme, which began in July 2024.
The project aimed to pilot and integrate satellite-based analytics and data tools into investment decision-making processes for nature-based carbon projects, such as afforestation.
The tool streamlines investment assessments by embedding space-based digital Measurement, Reporting, and Verification (dMRV) technology into Octopus’s due diligence, evaluation, and reporting workflows while ensuring trust, traceability, and transparency—key challenges in carbon markets today.
A new standard
The newly developed due diligence tool leverages Treeconomy’s dMRV technology, combining high-resolution satellite imagery, remote sensing analytics, and more than 60 geospatial datasets to assess the viability and performance of nature-based carbon projects. By defining key investment metrics, refining methodologies, and integrating findings into Octopus’ standard evaluation framework, the tool supports more rapid and confident decision-making for natural capital investment.
Rob Godfrey, Co-Founder at Treeconomy, said, “In the hands of a growing number of natural capital investors and nature project developers, our new due diligence and screening tool will help private finance to find and act upon quality restoration opportunities, closing the UK’s £44bn funding gap to achieve its climate and nature targets.”
A milestone in space-powered sustainability innovation
Over the nine-month period, Treeconomy and Octopus Investments collaborated to define key investment metrics, develop a scalable due diligence product, and successfully embed it into Octopus’ natural capital investment process.
Powered and delivered by Treeconomy’s Sherwood platform, the new tool represents a step forward in leveraging space technology to support responsible, data-backed investments in nature restoration.
In embracing the solution, Octopus Investments becomes the first major UK investor to embed purpose-built satellite data and geospatial analysis into its core natural capital investment workflow.
Alex Godfrey, Investment Director at Octopus Investments, said, “By integrating earth observation technology into our due diligence processes, we will gain unique insights that will increase both speed and efficiency in helping finance to reach quality nature restoration projects more quickly.”
Following successful project completion and product launch, Treeconomy is engaging with natural capital investors and project developers as early adopters to refine and enhance the tool’s capabilities. The due diligence tool is set to play a crucial role in expanding investment in credible, high-integrity carbon projects, supporting the transition toward a more transparent and accountable natural capital market in the UK and beyond.