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Business Goals 101: How to Set, Track, and Achieve Your Organization’s Goals with Examples

By Kate Eby | November 7, 2022

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Learning how to set concrete, achievable business goals is critical to your organization’s success. We’ve consulted seasoned experts on how to successfully set and achieve short- and long-term business goals, with examples to help you get started.

Included on this page, you’ll find a list of the different types of business goals , the benefits and challenges of business goal-setting, and examples of short-term and long-term business goals. Plus, find expert tips and compare and contrast business goal-setting frameworks.

What Are Business Goals?

Business goals are the outcomes an organization aims to achieve. They can be broad and long term or specific and short term. Business leaders set goals in order to motivate teams, measure progress, and improve performance.

“Business goals are those that represent a company's overarching mission,” says David Bitton, Co-founder and CMO of DoorLoop . “These goals typically cover the entire business and are vast in scope. They are established so that employees may work toward a common goal. In essence, business goals specify the ‘what’ of a company's purpose and provide teams with a general course to pursue.”

For more resources and information on setting goals, try one of these free goal tracking and setting templates .

Business Goals vs. Business Objectives

Many professionals use the terms business goal and business objective interchangeably. Generally, a business goal is a broad, long-term outcome an organization works toward, while a business objective is a specific and measurable task, project, or initiative. 

Think of business objectives as the steps an organization takes toward their broader, long-term goals. In some cases, a business objective might simply be a short-term goal. In most cases, business goals refer to outcomes, while business objectives refer to actionable tasks. 

“Business objectives are clear and precise,” says Bitton. “When businesses set out to achieve their business goals, they do so by establishing quantifiable, simply defined, and trackable objectives. Business objectives lay out the ‘how’ in clear, doable steps that lead to the desired result.”

For more information and resources, see this article on the key differences between goals and objectives.

Common Frameworks for Writing Business Goals

Goal-setting frameworks can help you get the most out of your business goals. Common frameworks include SMART, OKR, MBO, BHAG, and KRA. Learning about these goal-setting tools can help you choose the right one for your company.

Here are the common frameworks for writing business goals with examples:

• SMART: SMART goals are specific, measurable, achievable, relevant, and time-bound. This is probably the most popular method for setting goals. Ensuring that your goals meet SMART goal criteria is a tried and true way to increase your chances of success and make progress on even your most ambitious goals. Example SMART Goal: We will increase the revenue from our online store by 5 percent in three months by increasing our sign-up discount from 25 to 30 percent.
• OKR: Another popular approach is to set OKRs, or objectives and key results. In order to use OKRs , a team or individual selects an objective they would like to work toward. Then they select key results , or standardized measurements of success or progress. Example Objective: We aim to increase the sales revenue of our online store. Example Key Result: Make $200,000 in sales revenue from the online store in June. 
• MBO: MBO, or management by objectives , is a collaborative goal-setting framework and management technique. When using MBO, managers work with employees to create specific, agreed-upon objectives and develop a plan to achieve them. This framework is excellent for ensuring that everyone is aligned on their goals. Example MBO: This quarter, we aim to decrease patient waiting times by 30 percent.
• BHAG: A BHAG, or a big hairy audacious goal , is an ambitious, possibly unattainable goal. While the idea of setting a BHAG might run contrary to a lot of advice about goal-setting, a BHAG can energize the team by giving everyone a shared purpose. These are best for long-term, visionary business goals. Example BHAG: We want to be the leading digital music service provider globally by 2030. 
• KRA: KRAs, or key result areas , refer to a short list of goals that an individual, department, or organization can work toward. KRAs function like a rubric for general progress and to help ensure that the team’s efforts have an optimal impact on the overall health of the business. Example KRA: Increase high-quality sales leads per sales representative. 

Use the table below to compare the pros and cons of each goal-setting framework to help you decide which framework will be most useful for your business goals.

Types of Business Goals

A business goal is any goal that helps move an organization toward a desired result. There are many types of business goals, including process goals, development goals, innovation goals, and profitability goals.

Here are some common types of business goals:

• Growth: A growth goal is a goal relating to the size and scope of the company. A growth goal might involve increasing the number of employees, adding new verticals, opening new stores or offices, or generally expanding the impact or market share of a company. 
• Process: A process goal , also called a day-to-day goal or an efficiency goal , is a goal to improve the everyday effectiveness of a team or company. A process goal might involve establishing or improving workflows or routines, delegating responsibilities, or improving team skills. 
• Problem-Solving: Problem-solving goals address a specific challenge. Problem-solving goals might involve removing an inefficiency, changing policies to accommodate a new law or regulation, or reorienting after an unsuccessful project or initiative.
• Development: A development goal , also called an educational goal , is a goal to develop new skills or expertise, either for your team or for yourself. For example, development goals might include developing a new training module, learning a new coding language, or taking a continuing education class in your field. 
• Innovation: An innovation goal is a goal to create new or more reliable products or services. Innovation goals might involve developing a new mobile app, redesigning an existing product, or restructuring to a new business model. 
• Profitability: A profitability goal , also called a financial goal , is any goal to improve the financial prospects of a company. Profitability goals might involve increasing revenue, decreasing debt, or growing the company’s shareholder value. 
• Sustainability: A s ustainability goal is a goal to either decrease your company’s negative impact on the environment or actively improve the environment through specific initiatives. For example, a sustainability goal might be to decrease a company’s carbon footprint, reduce energy use, or divest from environmentally irresponsible organizations and reinvest in sustainable ones.
• Marketing: A marketing goal , also called a brand goal , is a goal to increase a company’s influence and brand awareness in the market. A marketing goal might be to boost engagement across social media platforms or generate more higher-quality leads. 
• Customer Relations: A customer relations goal is a goal to improve customer satisfaction with and trust in your product or services. A customer relations goal might be to decrease customer service wait times, improve customers’ self-reported satisfaction with your products or services, or increase customer loyalty.
• Company Culture: A company culture goal , also called a social goal , is a goal to improve the work environment of your company. A company culture goal might be to improve employee benefits; improve diversity, equity, and inclusion (DEI) across your organization; or create a greater sense of work-life balance among employees. 

What Are Business Goal Examples?

Business goal examples are real or hypothetical business goal statements. A business goal example can use any goal-setting framework, such as SMART, OKR, or KRA. Teams and individuals use these examples to guide them in the goal-setting process. 

For a comprehensive list of examples by industry and type, check out this collection of business goal examples .

What Are Short-Term Business Goals?

Short-term business goals are measurable objectives that can be completed within hours, days, weeks, or months. Many short-term business goals are smaller objectives that help a company make progress on a longer-term goal.

The first step in setting a short-term business goal is to clarify your long-term goals. 

“My practice is to start with an aspirational vision that is the framework for my long-term goals and to compare that ‘better tomorrow’ with the realities of today,” says Morgan Roth, Chief Communication Strategy Officer at EveryLife Foundation for Rare Diseases . “Once that framework of three to five major goals is drafted and I have buy-in, I can think about how we get there. Those will be my short-term goals.”

Bitton recommends using the SMART framework for setting short-term business goals to ensure that your team has structure and that their goals are achievable. “Determine which objectives can be attained in a reasonable amount of time,” she adds. “This will help you stay motivated. Your organization may suffer if you try to squeeze years-long ambitions into a month-long project.”

Short-Term Business Goal Examples

Companies can use short-term business goals to increase profits, implement new policies or initiatives, or improve company culture. We’ve gathered some examples of short-term business goals to help you brainstorm your own goal ideas. 

Here are three sample short-term business goals:

• Increase Your Market Share: When companies increase their market share, they increase the percentage of their target audience who chooses their product or service over competitors. This is a good short-term goal for companies that have long-term expansion goals. For example, a local retail business might want to draw new customers from the local community. The business sets a goal of increasing the average number of customers who enter its store from 500 per week to 600 per week within three months. It can meet this goal by launching a local advertising initiative, reducing prices, or expanding its presence on local social media groups. Small business owners can check out this comprehensive guide to learn more about setting productive goals for their small businesses.
• Reduce Paper Waste: All businesses produce waste, but company leaders can take actions to reduce or combat excessive waste. Reducing your company’s paper waste is a good short-term goal for companies that have long-term sustainability goals. For example, a large company’s corporate headquarters is currently producing an average of four pounds of paper waste per employee per day. They set a goal of decreasing this number to two pounds by the end of the current quarter. They can meet this goal by incentivizing or requiring electronic reporting and forms whenever possible. 
• Increase Social Media Engagement: High social media engagement is essential for businesses that want to increase brand awareness or attract new customers. This is a good short-term goal for companies with long-term marketing or brand goals. For example, after reviewing a recent study, a natural cosmetics company learns that its target audience is 30 percent more likely to purchase products recommended to them by TikTok influencers, but the company’s social media team only posts sporadically on its TikTok. The company sets a goal of producing and posting two makeup tutorials on TikTok each week for the next three months.

What Are Long-Term Business Goals?

A l ong-term business goal is an ambitious desired outcome for your company that is broad in scope. Long-term business goals might be harder to measure or achieve. They provide a shared direction and motivation for team members. 

“Long-term planning is increasingly difficult in our very complex and interconnected world,” says Roth. “Economically, politically, and culturally, we’re seeing sea changes in the way we live and work. Accordingly, it’s important to be thoughtful about long-term goal-setting, but not to the point where concerns stifle creativity and your ‘Big Ideas.’ A helpful strategy I employ is to avoid assumptions. Long-term planning should be based on what you know, not on what you assume will be true in some future state.”

Tip: You can turn most short-term goals into long-term goals by increasing their scope. For example, to turn the “increase market share” goal described above into a long-term goal, you might increase the target weekly customers from 600 to 2,000. This will likely take longer than a few months and might require expanding the store or opening new locations.

Long-Term Business Goal Examples

An organization can use long-term business goals to unify their vision, motivate workers, and prioritize short-term goals. We’ve gathered some examples of long-term business goals to guide you in setting goals for your business. 

Here are three sample long-term business goals:

• Increase Total Sales: A common growth profitability goal is to increase sales. An up-and-coming software company might set a long-term goal of increasing their product sales by 75 percent over two years. 
• Increase Employee Retention: Companies with high employee retention enjoy many benefits, such as decreased hiring costs, better brand reputation, and a highly skilled workforce. A large corporation with an employee retention rate of 80 percent might set a long-term goal of increasing that retention rate to 90 percent within five years. 
• Develop a New Technology: Most companies in the IT sphere rely on innovation goals to stay competitive. A company might set a long-term goal of creating an entirely new AI technology within 10 years.

Challenges of Setting Business Goals 

Although setting business goals has few downsides, teams can run into problems. For example, setting business goals that are too ambitious, inflexible, or not in line with the company vision can end up being counterproductive. 

Here are some common challenges teams face when setting business goals: 

• Having a Narrow Focus: One of the greatest benefits of setting business goals is how doing so can focus your team. That said, this can also be a drawback, as such focus on a single goal can narrow the team’s perspective and make people less able to adapt to change or recognize and seize unexpected opportunities. 
• Being Overly Ambitious: It’s important to be ambitious, but some goals are simply too lofty. If a goal is impossible to hit, it can be demoralizing. 
• Not Being Ambitious Enough: The opposite problem is when companies are too modest with their goal-setting. Goals should be realistic but challenging. Teams that prioritize the former while ignoring the latter will have problems with motivation and momentum.
• Facing Unexpected Obstacles: If something happens that suddenly derails progress toward a goal, it can be a huge blow to a company. Learn about project risk management to better manage uncertainty in your projects. 
• Having Unclear Objectives: Goals that are vague or unquantifiable will not be as effective as clear, measurable goals. Use frameworks such as SMART goals or OKRs to make sure your goals are clear. 
• Losing Motivation: Teams can lose sight of their goals over time, especially with long-term goals. Be sure to review and assess progress toward goals regularly to keep your long-term vision front of mind.

Why You Need Business Goals

Every business needs to set clear goals in order to succeed. Business goals provide direction, encourage focus, improve morale, and spur growth. We’ve gathered some common benefits of goal-setting for your business. 

Here are some benefits you can expect from setting business goals:

• More Clarity: Business goals ensure that everyone is moving toward a determined end point. Companies with clear business goals have teams that agree on what is important and what everyone should be working toward. 
• Increased Focus: Business goals encourage focus, which improves performance and increases productivity. 
• Faster Growth: Business goals help companies expand and thrive. “Setting goals and objectives for your business will help you grow it more quickly,” says Bitton. “Your potential for growth increases as you consistently accomplish your goals and objectives.”
• Improved Morale: Everyone is happier when they are working toward a tangible goal. Companies with clear business goals have employees that are more motivated and fulfilled at work. Plus, measuring progress toward specific goals makes it easier to notice and acknowledge everyone’s successes. 
• More Accountability: Having tangible goals means that everyone can see whether or not their work is effective at making progress toward those goals.
• Better Decision-Making: Business goals help teams prioritize tasks and make tough decisions. “You gain perspective on your entire business, which makes it easier for you to make smart decisions,” says Bitton. “You are forming a clear vision for the direction you want your business to go, which facilitates the efficient distribution of resources, the development of strategies, and the prioritization of tasks.”

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Setting Business Goals & Objectives: 4 Considerations

• 31 Oct 2023

Setting business goals and objectives is important to your company’s success. They create a roadmap to help you identify and manage risk , gain employee buy-in, boost team performance , and execute strategy . They’re also an excellent marker to measure your business’s performance.

Yet, meeting those goals can be difficult. According to an Economist study , 90 percent of senior executives from companies with annual revenues of one billion dollars or more admitted they failed to reach all their strategic goals because of poor implementation. In order to execute strategy, it’s important to first understand what’s attainable when developing organizational goals and objectives.

If you’re struggling to establish realistic benchmarks for your business, here’s an overview of what business goals and objectives are, how to set them, and what you should consider during the process.

Access your free e-book today.

What Are Business Goals and Objectives?

Business objectives dictate how your company plans to achieve its goals and address the business’s strengths, weaknesses, and opportunities. While your business goals may shift, your objectives won’t until there’s an organizational change .

Business goals describe where your company wants to end up and define your business strategy’s expected achievements.

According to the Harvard Business School Online course Strategy Execution , there are different types of strategic goals . Some may even push you and your team out of your comfort zone, yet are important to implement.

For example, David Rodriguez, global chief human resources officer at Marriott, describes in Strategy Execution the importance of stretch goals and “pushing people to not accept today's level of success as a final destination but as a starting point for what might be possible in the future.”

It’s important to strike a balance between bold and unrealistic, however. To do this, you must understand how to responsibly set your business goals and objectives.

Related: A Manager’s Guide To Successful Strategy Implementation

How to Set Business Goals and Objectives

While setting your company’s business goals and objectives might seem like a simple task, it’s important to remember that these goals shouldn’t be based solely on what you hope to achieve. There should be a correlation between your company’s key performance indicators (KPIs)—quantifiable success measures—and your business strategy to justify why the goal should, and needs to, be achieved.

This is often illustrated through a strategy map —an illustration of the cause-and-effect relationships that underpin your strategy. This valuable tool can help you identify and align your business goals and objectives.

“A strategy map gives everyone in your business a road map to understand the relationship between goals and measures and how they build on each other to create value,” says HBS Professor Robert Simons in Strategy Execution .

While this roadmap can be incredibly helpful in creating the right business goals and objectives, a balanced scorecard —a tool to help you track and assess non-financial measures—ensures they’re achievable through your current business strategy.

“Ask yourself, if I picked up a scorecard and examined the measures on that scorecard, could I infer what the business's strategy was,” Simon says. “If you've designed measures well, the answer should be yes.”

According to Strategy Execution , these measures are necessary to ensure your performance goals are achieved. When used in tandem, a balanced scorecard and strategy map can also tell you whether your goals and objectives will create value for you and your customers.

“The balanced scorecard combines the traditional financial perspective with additional perspectives that focus on customers, internal business processes, and learning and development,” Simons says.

These four perspectives are key considerations when setting your business goals and objectives. Here’s an overview of what those perspectives are and how they can help you set the right goals for your business.

4 Things to Consider When Setting Business Goals and Objectives

1. financial measures.

It’s important to ensure your plans and processes lead to desired levels of economic value. Therefore, some of your business goals and objectives should be financial.

Some examples of financial performance goals include:

• Cutting costs
• Increasing revenue
• Improving cash flow management

“Businesses set financial goals by building profit plans—one of the primary diagnostic control systems managers use to execute strategy,” Simons says in Strategy Execution . “They’re budgets drawn up for business units that have both revenues and expenses, and summarize the anticipated revenue inflows and expense outflows for a specified accounting period.”

Profit plans are essential when setting your business goals and objectives because they provide a critical link between your business strategy and economic value creation.

According to Simons, it’s important to ask three questions when profit planning:

• Does my business strategy generate enough profit to cover costs and reinvest in the business?
• Does my business generate enough cash to remain solvent through the year?
• Does my business create sufficient financial returns for investors?

By mapping out monetary value, you can weigh the cost of different strategies and how likely it is you’ll meet your company and investors’ financial expectations.

2. Customer Satisfaction

To ensure your business goals and objectives aid in your company’s long-term success, you need to think critically about your customers’ satisfaction. This is especially important in a world where customer reviews and testimonials are crucial to your organization’s success.

“Everything that's important to the business, we have a KPI and we measure it,” says Tom Siebel, founder, chairman, and CEO of C3.ai, in Strategy Execution . “And what could be more important than customer satisfaction?”

Unlike your company’s reputation, measuring customer satisfaction has a far more personal touch in identifying what customers love and how to capitalize on it through future strategic initiatives .

“We do anonymous customer satisfaction surveys every quarter to see how we're measuring up to our customer expectations,” Siebel says.

While this is one example, your customer satisfaction measures should reflect your desired market position and focus on creating additional value for your audience.

Related: 3 Effective Methods for Assessing Customer Needs

3. Internal Business Processes

Internal business processes is another perspective that should factor into your goal setting. It refers to several aspects of your business that aren’t directly affected by outside forces. Since many goals and objectives are driven by factors such as business competition and market shifts, considering internal processes can create a balanced business strategy.

“Our goals are balanced to make sure we’re holistically managing the business from a financial performance, quality assurance, innovation, and human talent perspective,” says Tom Polen, CEO and president of Becton Dickinson, in Strategy Execution .

According to Strategy Execution , internal business operations are broken down into the following processes:

• Operations management
• Customer management

While improvements to internal processes aren’t driven by economic value, these types of goals can still reap a positive return on investment.

“We end up spending much more time on internal business process goals versus financial goals,” Polen says. “Because if we take care of them, the financial goals will follow at the end of the day.”

4. Learning and Growth Opportunities

Another consideration while setting business goals and objectives is learning and growth opportunities for your team. These are designed to increase employee satisfaction and productivity.

According to Strategy Execution , learning and growth opportunities touch on three types of capital:

• Human: Your employees and the skills and knowledge required for them to meet your company’s goals
• Information: The databases, networks, and IT systems needed to support your long-term growth
• Organization: Ensuring your company’s leadership and culture provide people with purpose and clear objectives

Employee development is a common focus for learning and growth goals. Through professional development opportunities , your team will build valuable business skills and feel empowered to take more risks and innovate.

To create a culture of innovation , it’s important to ensure there’s a safe space for your team to make mistakes—and even fail.

“We ask that people learn from their mistakes,” Rodriguez says in Strategy Execution . “It's really important to us that people feel it’s safe to try new things. And all we ask is people extract their learnings and apply it to the next situation.”

Achieve Your Business Goals

Business goals aren’t all about your organization’s possible successes. It’s also about your potential failures.

“When we set goals, we like to imagine a bright future with our business succeeding,” Simons says in Strategy Execution . “But to identify your critical performance variables, you need to engage in an uncomfortable exercise and consider what can cause your strategy to fail.”

Anticipating potential failures isn’t easy. Enrolling in an online course—like HBS Online’s Strategy Execution —can immerse you in real-world case studies of past strategy successes and failures to help you better understand where these companies went wrong and how to avoid it in your business.

Do you need help setting your business goals and objectives? Explore Strategy Execution —one of our online strategy courses —and download our free strategy e-book to gain the insights to create a successful strategy.

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Business Plan Example and Template

Learn how to create a business plan

What is a Business Plan?

A business plan is a document that contains the operational and financial plan of a business, and details how its objectives will be achieved. It serves as a road map for the business and can be used when pitching investors or financial institutions for debt or equity financing .

A business plan should follow a standard format and contain all the important business plan elements. Typically, it should present whatever information an investor or financial institution expects to see before providing financing to a business.

Contents of a Business Plan

A business plan should be structured in a way that it contains all the important information that investors are looking for. Here are the main sections of a business plan:

1. Title Page

The title page captures the legal information of the business, which includes the registered business name, physical address, phone number, email address, date, and the company logo.

2. Executive Summary

The executive summary is the most important section because it is the first section that investors and bankers see when they open the business plan. It provides a summary of the entire business plan. It should be written last to ensure that you don’t leave any details out. It must be short and to the point, and it should capture the reader’s attention. The executive summary should not exceed two pages.

3. Industry Overview

The industry overview section provides information about the specific industry that the business operates in. Some of the information provided in this section includes major competitors, industry trends, and estimated revenues. It also shows the company’s position in the industry and how it will compete in the market against other major players.

4. Market Analysis and Competition

The market analysis section details the target market for the company’s product offerings. This section confirms that the company understands the market and that it has already analyzed the existing market to determine that there is adequate demand to support its proposed business model.

Market analysis includes information about the target market’s demographics , geographical location, consumer behavior, and market needs. The company can present numbers and sources to give an overview of the target market size.

A business can choose to consolidate the market analysis and competition analysis into one section or present them as two separate sections.

5. Sales and Marketing Plan

The sales and marketing plan details how the company plans to sell its products to the target market. It attempts to present the business’s unique selling proposition and the channels it will use to sell its goods and services. It details the company’s advertising and promotion activities, pricing strategy, sales and distribution methods, and after-sales support.

6. Management Plan

The management plan provides an outline of the company’s legal structure, its management team, and internal and external human resource requirements. It should list the number of employees that will be needed and the remuneration to be paid to each of the employees.

Any external professionals, such as lawyers, valuers, architects, and consultants, that the company will need should also be included. If the company intends to use the business plan to source funding from investors, it should list the members of the executive team, as well as the members of the advisory board.

7. Operating Plan

The operating plan provides an overview of the company’s physical requirements, such as office space, machinery, labor, supplies, and inventory . For a business that requires custom warehouses and specialized equipment, the operating plan will be more detailed, as compared to, say, a home-based consulting business. If the business plan is for a manufacturing company, it will include information on raw material requirements and the supply chain.

8. Financial Plan

The financial plan is an important section that will often determine whether the business will obtain required financing from financial institutions, investors, or venture capitalists. It should demonstrate that the proposed business is viable and will return enough revenues to be able to meet its financial obligations. Some of the information contained in the financial plan includes a projected income statement , balance sheet, and cash flow.

9. Appendices and Exhibits

The appendices and exhibits part is the last section of a business plan. It includes any additional information that banks and investors may be interested in or that adds credibility to the business. Some of the information that may be included in the appendices section includes office/building plans, detailed market research , products/services offering information, marketing brochures, and credit histories of the promoters.

Business Plan Template

Here is a basic template that any business can use when developing its business plan:

Section 1: Executive Summary

• Present the company’s mission.
• Describe the company’s product and/or service offerings.
• Give a summary of the target market and its demographics.
• Summarize the industry competition and how the company will capture a share of the available market.
• Give a summary of the operational plan, such as inventory, office and labor, and equipment requirements.

Section 2: Industry Overview

• Describe the company’s position in the industry.
• Describe the existing competition and the major players in the industry.
• Provide information about the industry that the business will operate in, estimated revenues, industry trends, government influences, as well as the demographics of the target market.

Section 3: Market Analysis and Competition

• Define your target market, their needs, and their geographical location.
• Describe the size of the market, the units of the company’s products that potential customers may buy, and the market changes that may occur due to overall economic changes.
• Give an overview of the estimated sales volume vis-à-vis what competitors sell.
• Give a plan on how the company plans to combat the existing competition to gain and retain market share.

Section 4: Sales and Marketing Plan

• Describe the products that the company will offer for sale and its unique selling proposition.
• List the different advertising platforms that the business will use to get its message to customers.
• Describe how the business plans to price its products in a way that allows it to make a profit.
• Give details on how the company’s products will be distributed to the target market and the shipping method.

Section 5: Management Plan

• Describe the organizational structure of the company.
• List the owners of the company and their ownership percentages.
• List the key executives, their roles, and remuneration.
• List any internal and external professionals that the company plans to hire, and how they will be compensated.
• Include a list of the members of the advisory board, if available.

Section 6: Operating Plan

• Describe the location of the business, including office and warehouse requirements.
• Describe the labor requirement of the company. Outline the number of staff that the company needs, their roles, skills training needed, and employee tenures (full-time or part-time).
• Describe the manufacturing process, and the time it will take to produce one unit of a product.
• Describe the equipment and machinery requirements, and if the company will lease or purchase equipment and machinery, and the related costs that the company estimates it will incur.
• Provide a list of raw material requirements, how they will be sourced, and the main suppliers that will supply the required inputs.

Section 7: Financial Plan

• Describe the financial projections of the company, by including the projected income statement, projected cash flow statement, and the balance sheet projection.

Section 8: Appendices and Exhibits

• Quotes of building and machinery leases
• Proposed office and warehouse plan
• Market research and a summary of the target market
• Credit information of the owners
• List of product and/or services

Related Readings

Thank you for reading CFI’s guide to Business Plans. To keep learning and advancing your career, the following CFI resources will be helpful:

• Corporate Structure
• Three Financial Statements
• Business Model Canvas Examples
• See all management & strategy resources
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Demystifying Corporate Objectives: Specific, Measurable Targets For Achieving Goals

Updated: July 10, 2024 · Reviewed by: Ahmad Nasrudin

What’s it:  A corporate objective is a specific, measurable, and time-specific target by which you can achieve your overall  corporate goal . In other words, it is a target that your company must achieve to realize your business goal. A good objective has SMART characteristics: Specific, Measurable, Achievable, Realistic, and Time-specific.

Vision and mission statements lack specific details to provide clearer guidance for taking action, designing strategies, allocating resources, and making operational decisions. So you need to break it down into more specific and measurable objectives. Then, it can be expressed in various measures such as profit, market share, and revenue growth.

The objectives you set will ultimately affect the company strategy you choose. A company’s strategy is a detailed medium and long-term plan to meet these objectives.

Corporate objectives vs. goals

Goals and objectives are important because they provide direction to your business on what to achieve. They look similar, and some people often use them interchangeably in discussing corporate strategy. But, actually, the two are different. Several important points distinguish corporate objectives and corporate goals.

• Goals  are the overall long-term target or broad result to be achieved. They don’t detail how your company is getting there. For example, you want your company to be a market leader.
• Objectives  are more specific, measurable, and short-term targets or results to meet the goals you set. For example, to become a market leader, your company targets zero defects for products, increasing sales by about 10% and reducing customer complaints by 5% in the next year.

Why corporate objective matters

Objectives provide guidance and direction to all your employees on what they need to achieve. Clear objectives encourage employees to focus and be motivated to achieve them.

For management, objectives are an indicator to measure how successful management is in operating the business. As a result, some companies may often associate management bonuses with achieving objectives.

Several reasons explain the importance of corporate objectives. Here are some of them:

• Goal achievement: Corporate objectives bridge the gap between aspirational corporate goals and tangible results. They translate broad goals into specific, measurable targets, providing a roadmap for achieving the company’s desired future state. By setting clear objectives, companies can ensure their efforts are directed towards achieving their corporate goals.
• Strategic clarity: Corporate objectives provide a framework for strategic decision-making. By outlining what needs to be accomplished, they guide management in allocating resources, prioritizing initiatives, and developing strategies aligned with the company’s overall vision. This focus and clarity enhance the effectiveness of the company’s strategic efforts.
• Employee motivation: Clearly defined corporate objectives create a sense of direction and purpose for employees. Understanding how their individual contributions align with the company’s broader goals fosters engagement and motivation. Employees feel empowered to take ownership of their work and strive towards achieving the set objectives.
• Resource allocation: Corporate objectives serve as a guide for allocating resources efficiently. By understanding the specific requirements of each objective, management can prioritize resource allocation across departments and ensure resources are directed towards activities that contribute most effectively to achieving the company’s goals.
• Performance measurement: Corporate objectives facilitate ongoing performance evaluation. By setting measurable targets, companies can track progress toward their objectives and identify areas where adjustments might be necessary. This continuous evaluation process allows companies to assess the effectiveness of their strategies and make data-driven decisions to improve performance and stay on track.

Types of corporate objectives

Corporate objectives should be broken down into more specific objectives to provide a clearer direction. Usually, it  has hierarchical levels  according to the hierarchical structure of your organization. In other words, corporate objectives are broken down into objectives for top, middle, and lower management, where the objectives at the lower levels must support the objectives at the upper levels.

• Strategic objectives  – about what your company should achieve in the future. It focuses on general, broad, and long-term issues and is defined by top management. It guides them in operating the business, influences the entire company, and serves as a guide for lower management levels in setting their objectives.
• Tactical objectives  – about what the department or division within your company should achieve. It aims to focus efforts on supporting and achieving strategic objectives. It is under the responsibility of the middle manager. Setting tactical objectives can map out how their department can contribute to achieving strategic objectives and determine what they need to do and achieve.
• Operational objectives  – about what teams or individuals in a department should achieve. Lower-level managers are responsible for establishing them, which is important for addressing short-term issues and ensuring everyone in the department is working and moving in the same direction to realize tactical objectives.

Criteria for good corporate objectives

Good corporate objectives meet the SMART criteria: specific, measurable, achievable, realistic, and time-bound.

• Be specific. What aspects or operational variables do you have to achieve? Whether it’s market share, revenue, output quality, or production volume, say that’s the sales value for your two product segments: product ABC and product XYZ.
• Measurable —you can quantify the objective. For example, your company targets increasing sales of product ABC by 10% and product XYZ by 5%.
• Achievable —The objectives you set are within the limits of your company’s internal capabilities, neither too easy nor impossible to achieve. For example, targeting a 10% increase in sales value for ABC products makes more sense than targeting a 120% increase.
• Realistic  – the objective is according to the conditions under which it is to be achieved. Setting an objective requires you to consider aspects such as market conditions and competition, capabilities, and company resources to set the percentage above. For example, targets for a 10% and 5% increase in sales could be unrealistic if a recession hits.
• Time- bound– you decide when to achieve the above objectives. For example, you target sales of product ABC to increase by 10% and product XYZ to increase by 5% next year.

Examples of corporate objectives

The following are examples of common corporate objectives:

Survive . If your company is a new business, survival may be your goal. With limited competitiveness and internal problems, business failure rates are usually high. And, if you survive successfully, your business has the opportunity to strengthen its competitiveness and fix internal problems, then grow the business and make a profit. After that, you can pursue other long-term goals.

• If you are competing in a hypercompetitive market, you may also be pursuing this goal. Your business is facing significant competitive pressure. Maintaining a competitive advantage becomes almost impossible because it can disappear instantly due to high external pressures.

Profit maximization.  All profit-oriented businesses aim to generate  the highest possible profit  in the long run. Without profit, it is impossible to grow and survive.

• Profit is most important and is usually used as a measure for investors to invest in the company, either by buying shares or corporate debt. It also became an internal source to finance further business expansion. In mathematical calculations, profit will be maximized when marginal revenue equals marginal cost.

Profit satisficing.  This means earning enough profit to satisfy shareholders. Maximizing profits requires management to work hard and often reduces their free time.

• Indeed, from the point of view of shareholders, they want maximum profit. But, from the point of view of workers and managers, they may not. They prefer to generate adequate returns for shareholders rather than maximize profits.

Growth.  If your company is already established, pursuing growth could be an objective alternative for you. You are trying to earn more money by increasing the size of your business. It allows you to lower costs by reaping the benefits of higher economies of scale. Also, seeking growth elsewhere is an alternative to increasing revenue, either through internal or external growth, once your old business has matured.

Market share.  This goal is usually associated with being a market leader. Market share is often correlated with higher economies of scale, higher incomes, and better competitiveness. Say, we measure market share by sales value. To increase market share, your company must increase sales value at a higher percentage than competitors.

• Mission Statement: Define Your Company’s Purpose (Importance, Examples, How to Write)
• Vision Statement: Chart Your Company’s Course (Importance, Examples, How to Write)
• Setting Your Course: A Guide to Organizational Objectives (Criteria, Examples, Types)
• Corporate Goals: Long-term Aspirations For a Company’s Future (vs. Objectives, Benefits, Examples)
• Operational Objectives: The Key to Business Efficiency [SMART Criteria, Examples, Steps]
• Examples of Business Objectives: From Profit and Market Share to Social and Ethical Objectives

About Ahmad Nasrudin

Introverted writer with a passion for storytelling. Leveraged analytical skills from financial background (equity research, credit risk) at a leading rating agency to enhance writing with a unique statistical and macroeconomic perspective. Learn more about me

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Goals and Objectives for Business Plan with Examples

Published Nov.05, 2023

Updated Apr.23, 2024

By: Jakub Babkins

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Table of Content

Every business needs a clear vision of what it wants to achieve and how it plans to get there. A business plan is a document that outlines the goals and objectives of a business, as well as the strategies and actions to achieve them. A well-written business plan from business plan specialists can help a business attract investors, secure funding, and guide its growth.

Understanding Business Objectives

Business objectives are S pecific, M easurable, A chievable, R elevant, and T ime-bound (SMART) statements that describe what a business wants to accomplish in a given period. They are derived from the overall vision and mission of the business, and they support its strategic direction.

Business plan objectives can be categorized into different types, depending on their purpose and scope. Some common types of business objectives are:

• Financial objectives
• Operational objectives
• Marketing objectives
• Social objectives

For example, a sample of business goals and objectives for a business plan for a bakery could be:

• To increase its annual revenue by 20% in the next year.
• To reduce its production costs by 10% in the next six months.
• To launch a new product line of gluten-free cakes in the next quarter.
• To improve its customer satisfaction rating by 15% in the next month.

The Significance of Business Objectives

Business objectives are important for several reasons. They help to:

• Clarify and direct the company and stakeholders
• Align the company’s efforts and resources to a common goal
• Motivate and inspire employees to perform better
• Measure and evaluate the company’s progress and performance
• Communicate the company’s value and advantage to customers and the market

For example, by setting a revenue objective, a bakery can focus on increasing its sales and marketing efforts, monitor its sales data and customer feedback, motivate its staff to deliver quality products and service, communicate its unique selling points and benefits to its customers, and adjust its pricing and product mix according to market demand.

Advantages of Outlining Business Objectives

Outlining business objectives is a crucial step in creating a business plan. It serves as a roadmap for the company’s growth and development. Outlining business objectives has several advantages, such as:

• Clarifies the company’s vision, direction, scope, and boundaries
• Break down the company’s goals into smaller tasks and milestones
• Assigns roles and responsibilities and delegates tasks
• Establishes standards and criteria for success and performance
• Anticipates risks and challenges and devises contingency plans

For example, by outlining its business objective for increasing the average revenue per customer in its business plan, a bakery can:

• Attract investors with its viable business plan for investors
• Secure funding from banks or others with its realistic financial plan
• Partner with businesses or organizations that complement or enhance its products or services
• Choose the best marketing, pricing, product, staff, location, etc. for its target market and customers

Setting Goals and Objectives for a Business Plan

Setting goals and objectives for a business plan is not a one-time task. It requires careful planning, research, analysis, and evaluation. To set effective goals and objectives for a business plan, one should follow some best practices, such as:

OPTION 1: Use the SMART framework. A SMART goal or objective is clear, quantifiable, realistic, aligned with the company’s mission and vision, and has a deadline. SMART stands for:

• Specific – The goal or objective should be clear, concise, and well-defined.
• Measurable – The goal or objective should be quantifiable or verifiable.
• Achievable – The goal or objective should be realistic and attainable.
• Relevant – The goal or objective should be aligned with the company’s vision, mission, and values.
• Time-bound – The goal or objective should have a deadline or timeframe.

For example, using the SMART criteria, a bakery can refine its business objective for increasing the average revenue per customer as follows:

• Specific – Increase revenue with new products and services from $5 to $5.50.
• Measurable – Track customer revenue monthly with sales reports.
• Achievable – Research the market, develop new products and services, and train staff to upsell and cross-sell.
• Relevant – Improve customer satisfaction and loyalty, profitability and cash flow, and market competitiveness.
• Time-bound – Achieve this objective in six months, from January 1st to June 30th.

OPTION 2: Use the OKR framework. OKR stands for O bjectives and K ey R esults. An OKR is a goal-setting technique that links the company’s objectives with measurable outcomes. An objective is a qualitative statement of what the company wants to achieve. A key result is a quantitative metric that shows how the objective will be achieved.

OPTION 3: Use the SWOT analysis. SWOT stands for S trengths, W eaknesses, O pportunities, and T hreats. A SWOT analysis is a strategic tool that helps the company assess the internal and external factors that affect its goals and objectives.

• Strengths – Internal factors that give the company an advantage over others. 
• Weaknesses – Internal factors that limit the company’s performance or growth. 
• Opportunities – External factors that allow the company to improve or expand. 
• Threats – External factors that pose a risk or challenge to the company.

For example, using these frameworks, a bakery might set the following goals and objectives for its SBA business plan :

Objective – To launch a new product line of gluten-free cakes in the next quarter.

Key Results:

• Research gluten-free cake market demand and preferences by month-end.
• Create and test 10 gluten-free cake recipes by next month-end.
• Make and sell 100 gluten-free cakes weekly online or in-store by quarter-end.

SWOT Analysis:

• Expertise and experience in baking and cake decorating.
• Loyal and satisfied customer base.
• Strong online presence and reputation.

Weaknesses:

• Limited production capacity and equipment.
• High production costs and low-profit margins.
• Lack of knowledge and skills in gluten-free baking.

Opportunities:

• Growing demand and awareness for gluten-free products.
• Competitive advantage and differentiation in the market.
• Potential partnerships and collaborations with health-conscious customers and organizations.
• Increasing competition from other bakeries and gluten-free brands.
• Changing customer tastes and preferences.
• Regulatory and legal issues related to gluten-free labeling and certification.

Examples of Business Goals and Objectives

To illustrate how to write business goals and objectives for a business plan, let’s use a hypothetical example of a bakery business called Sweet Treats. Sweet Treats is a small bakery specializing in custom-made cakes, cupcakes, cookies, and other baked goods for various occasions.

Here are some examples of possible startup business goals and objectives for Sweet Treats:

Earning and Preserving Profitability

Profitability is the ability of a company to generate more revenue than expenses. It indicates the financial health and performance of the company. Profitability is essential for a business to sustain its operations, grow its market share, and reward its stakeholders.

Some possible objectives for earning and preserving profitability for Sweet Treats are:

• To increase the gross profit margin by 5% in the next quarter by reducing the cost of goods sold
• To achieve a net income of $100,000 in the current fiscal year by increasing sales and reducing overhead costs

Ensuring Consistent Cash Flow

Cash flow is the amount of money that flows in and out of a company. A company needs to have enough cash to cover its operating expenses, pay its debts, invest in its growth, and reward its shareholders.

Some possible objectives for ensuring consistent cash flow for Sweet Treats are:

• Increase monthly operating cash inflow by 15% by the end of the year by improving the efficiency and productivity of the business processes
• Increase the cash flow from investing activities by selling or disposing of non-performing or obsolete assets

Creating and Maintaining Efficiency

Efficiency is the ratio of output to input. It measures how well a company uses its resources to produce its products or services. Efficiency can help a business improve its quality, productivity, customer satisfaction, and profitability.

Some possible objectives for creating and maintaining efficiency for Sweet Treats are:

• To reduce the production time by 10% in the next month by implementing lean manufacturing techniques
• To increase the customer service response rate by 20% in the next week by using chatbots or automated systems

Winning and Keeping Clients

Clients are the people or organizations that buy or use the products or services of a company. They are the source of revenue and growth for a company. Therefore, winning and keeping clients is vital to generating steady revenue, increasing customer loyalty, and enhancing word-of-mouth marketing.

Some possible objectives for winning and keeping clients for Sweet Treats are:

• To acquire 100 new clients in the next quarter by launching a referral program or a promotional campaign
• To retain 90% of existing clients in the current year by offering loyalty rewards or satisfaction guarantees

Building a Recognizable Brand

A brand is the name, logo, design, or other features distinguishing a company from its competitors. It represents the identity, reputation, and value proposition of a company. Building a recognizable brand is crucial for attracting and retaining clients and creating a loyal fan base.

Some possible objectives for building a recognizable brand for Sweet Treats are:

• To increase brand awareness by 50% in the next six months by creating and distributing engaging content on social media platforms
• To improve brand image by 30% in the next year by participating in social causes or sponsoring events that align with the company’s values

Expanding and Nurturing an Audience with Marketing

An audience is a group of people interested in or following a company’s products or services. They can be potential or existing clients, fans, influencers, or partners. Expanding and nurturing an audience with marketing is essential for increasing a company’s visibility, reach, and engagement.

Some possible objectives for expanding and nurturing an audience with marketing for Sweet Treats are:

• To grow the email list by 1,000 subscribers in the next month by offering a free ebook or a webinar
• To nurture leads by sending them relevant and valuable information through email newsletters or blog posts

Strategizing for Expansion

Expansion is the process of increasing a company’s size, scope, or scale. It can involve entering new markets, launching new products or services, opening new locations, or forming new alliances. Strategizing for expansion is important for diversifying revenue streams, reaching new audiences, and gaining competitive advantages.

Some possible objectives for strategizing for expansion for Sweet Treats are:

• To launch a new product or service line by developing and testing prototypes
• To open a new branch or franchise by securing funding and hiring staff

Template for Business Objectives

A template for writing business objectives is a format or structure that can be used as a guide or reference for creating your objectives. A template for writing business objectives can help you to ensure that your objectives are SMART, clear, concise, and consistent.

To use this template, fill in the blanks with your information. Here is an example of how you can use this template:

Example of Business Objectives

Our business is a _____________ (type of business) that provides _____________ (products or services) to _____________ (target market). Our vision is to _____________ (vision statement) and our mission is to _____________ (mission statement).

Our long-term business goals and objectives for the next _____________ (time period) are:

S pecific: We want to _____________ (specific goal) by _____________ (specific action).

M easurable: We will measure our progress by _____________ (quantifiable indicator).

A chievable: We have _____________ (resources, capabilities, constraints) that will enable us to achieve this goal.

R elevant: This goal supports our vision and mission by _____________ (benefit or impact).

T ime-bound: We will complete this goal by _____________ (deadline).

Repeat this process for each goal and objective for your business plan.

How to Monitor Your Business Objectives?

After setting goals and objectives for your business plan, you should check them regularly to see if you are achieving them. Monitoring your business objectives can help you to:

• Track your progress and performance
• Identify and overcome any challenges
• Adjust your actions and strategies as needed

Some of the tools and methods that you can use to monitor your business objectives are:

• Dashboards – Show key data and metrics for your objectives with tools like Google Data Studio, Databox, or DashThis.
• Reports – Get detailed information and analysis for your objectives with tools like Google Analytics, Google Search Console, or SEMrush.
• Feedback – Learn from your customers and their needs and expectations with tools like SurveyMonkey, Typeform, or Google Forms.

Strategies for Realizing Business Objectives

To achieve your business objectives, you need more than setting and monitoring them. You need strategies and actions that support them. Strategies are the general methods to reach your objectives. Actions are the specific steps to implement your strategies.

Different objectives require different strategies and actions. Some common types are:

• Marketing strategies
• Operational strategies
• Financial strategies
• Human resource strategies
• Growth strategies

To implement effective strategies and actions, consider these factors:

• Alignment – They should match your vision, mission, values, goals, and objectives
• Feasibility – They should be possible with your capabilities, resources, and constraints
• Suitability – They should fit the context and needs of your business

How OGSCapital Can Help You Achieve Your Business Objectives?

We at OGSCapital can help you with your business plan and related documents. We have over 15 years of experience writing high-quality business plans for various industries and regions. We have a team of business plan experts who can assist you with market research, financial analysis, strategy formulation, and presentation design. We can customize your business plan to suit your needs and objectives, whether you need funding, launching, expanding, or entering a new market. We can also help you with pitch decks, executive summaries, feasibility studies, and grant proposals. Contact us today for a free quote and start working on your business plan.

Frequently Asked Questions

What are the goals and objectives in business.

Goals and objectives in a business plan are the desired outcomes that a company works toward. To describe company goals and objectives for a business plan, start with your mission statement and then identify your strategic and operational objectives. To write company objectives, you must brainstorm, organize, prioritize, assign, track, and review them using the SMART framework and KPIs.

What are the examples of goals and objectives in a business plan?

Examples of goals and objectives in a business plan are: Goal: To increase revenue by 10% each year for the next five years. Objective: To launch a new product line and create a marketing campaign to reach new customers.

What are the 4 main objectives of a business?

The 4 main objectives of a business are economic, social, human, and organic. Economic objectives deal with financial performance, social objectives deal with social responsibility, human objectives deal with employee welfare, and organic objectives deal with business growth and development.

What are goals and objectives examples?

Setting goals and objectives for a business plan describes what a business or a team wants to achieve and how they will do it. For example: Goal: To provide excellent customer service. Objective: To increase customer satisfaction scores by 20% by the end of the quarter. 

At OGSCapital, our business planning services offer expert guidance and support to create a realistic and actionable plan that aligns with your vision and mission. Get in touch to discuss further!

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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How To Write A Business Plan (2024 Guide)

Updated: Apr 17, 2024, 11:59am

Table of Contents

Brainstorm an executive summary, create a company description, brainstorm your business goals, describe your services or products, conduct market research, create financial plans, bottom line, frequently asked questions.

Every business starts with a vision, which is distilled and communicated through a business plan. In addition to your high-level hopes and dreams, a strong business plan outlines short-term and long-term goals, budget and whatever else you might need to get started. In this guide, we’ll walk you through how to write a business plan that you can stick to and help guide your operations as you get started.

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Drafting the Summary

An executive summary is an extremely important first step in your business. You have to be able to put the basic facts of your business in an elevator pitch-style sentence to grab investors’ attention and keep their interest. This should communicate your business’s name, what the products or services you’re selling are and what marketplace you’re entering.

Ask for Help

When drafting the executive summary, you should have a few different options. Enlist a few thought partners to review your executive summary possibilities to determine which one is best.

After you have the executive summary in place, you can work on the company description, which contains more specific information. In the description, you’ll need to include your business’s registered name , your business address and any key employees involved in the business. 

The business description should also include the structure of your business, such as sole proprietorship , limited liability company (LLC) , partnership or corporation. This is the time to specify how much of an ownership stake everyone has in the company. Finally, include a section that outlines the history of the company and how it has evolved over time.

Wherever you are on the business journey, you return to your goals and assess where you are in meeting your in-progress targets and setting new goals to work toward.

Numbers-based Goals

Goals can cover a variety of sections of your business. Financial and profit goals are a given for when you’re establishing your business, but there are other goals to take into account as well with regard to brand awareness and growth. For example, you might want to hit a certain number of followers across social channels or raise your engagement rates.

Another goal could be to attract new investors or find grants if you’re a nonprofit business. If you’re looking to grow, you’ll want to set revenue targets to make that happen as well.

Intangible Goals

Goals unrelated to traceable numbers are important as well. These can include seeing your business’s advertisement reach the general public or receiving a terrific client review. These goals are important for the direction you take your business and the direction you want it to go in the future.

The business plan should have a section that explains the services or products that you’re offering. This is the part where you can also describe how they fit in the current market or are providing something necessary or entirely new. If you have any patents or trademarks, this is where you can include those too.

If you have any visual aids, they should be included here as well. This would also be a good place to include pricing strategy and explain your materials.

This is the part of the business plan where you can explain your expertise and different approach in greater depth. Show how what you’re offering is vital to the market and fills an important gap.

You can also situate your business in your industry and compare it to other ones and how you have a competitive advantage in the marketplace.

Other than financial goals, you want to have a budget and set your planned weekly, monthly and annual spending. There are several different costs to consider, such as operational costs.

Business Operations Costs

Rent for your business is the first big cost to factor into your budget. If your business is remote, the cost that replaces rent will be the software that maintains your virtual operations.

Marketing and sales costs should be next on your list. Devoting money to making sure people know about your business is as important as making sure it functions.

Other Costs

Although you can’t anticipate disasters, there are likely to be unanticipated costs that come up at some point in your business’s existence. It’s important to factor these possible costs into your financial plans so you’re not caught totally unaware.

Business plans are important for businesses of all sizes so that you can define where your business is and where you want it to go. Growing your business requires a vision, and giving yourself a roadmap in the form of a business plan will set you up for success.

How do I write a simple business plan?

When you’re working on a business plan, make sure you have as much information as possible so that you can simplify it to the most relevant information. A simple business plan still needs all of the parts included in this article, but you can be very clear and direct.

What are some common mistakes in a business plan?

The most common mistakes in a business plan are common writing issues like grammar errors or misspellings. It’s important to be clear in your sentence structure and proofread your business plan before sending it to any investors or partners.

What basic items should be included in a business plan?

When writing out a business plan, you want to make sure that you cover everything related to your concept for the business,  an analysis of the industry―including potential customers and an overview of the market for your goods or services―how you plan to execute your vision for the business, how you plan to grow the business if it becomes successful and all financial data around the business, including current cash on hand, potential investors and budget plans for the next few years.

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6 examples of objectives for a small business plan

Table of Contents

1) Becoming and staying profitable

2) maintaining cash flow , 3) establishing and sustaining productivity , 4) attracting and retaining customers , 5) developing a memorable brand and marketing strategy, 6) planning for growth , track your business objectives and more with countingup.

Your new company’s business plan is a crucial part of your success, as it helps you set up your business and secure the necessary funding. A major part of this plan is your objectives or the outcomes you aim to reach. If you’re unsure where to start, this list of business objective examples can help.

In this guide, you’ll learn:

• Becoming and staying profitable 
• Maintaining cash flow 
• Establishing and sustaining productivity 
• Attracting and retaining customers 
• Developing a memorable brand 
• Reaching and growing an audience through marketing 
• Planning for growth

One of the key objectives you may consider is establishing and maintaining profitability . In short, you’ll aim to earn more than you spend and pay off your startup costs. To do this, you’ll need to consider your business’s starting budget and how you’ll stick to it. 

To create an objective around profitability, you’ll need to calculate how much you spend to start your business and how much you’ll have to spend regularly to run it. Knowing these numbers will help you determine the earnings you’ll need to become profitable. From there, you can factor in the pricing of your products or services and create sales goals . 

For example, say you spend £2,000 on startup costs and expect to spend about £200 monthly to cover business expenses. To earn a profit, you’ll first need to earn back that £2,000 then make more than £200 monthly. 

Once you know what you’ll need to earn to become profitable, you can create a realistic timeline to achieve it. If demand and sales forecasts suggest you could earn about £700 monthly, you may create a timeline of 5 months to become profitable. 

We have created a free profit margin calculator tool which can help you work out your profit margins.

Maintaining cash flow is another financial objective you could include in your business plan. While profitability means you’ll make more money than you spend, cash flow is the cash running in and out of your business over a given time. This flow is crucial to your company’s success because you need available cash to cover business expenses . 

When you complete services, clients may not pay out an invoice right away, meaning you won’t see the cash until they do. If you make enough sales but have low cash flow, you’ll struggle to run your business. So, create an achievable and measurable plan for how you’ll maintain the cash flow you need. 

For example, if you spend £500 monthly, you’ll need to ensure you have at least that much available cash. On top of that, anticipate and save for unexpected or emergency expenses, such as broken equipment. To maintain your cash flow, you may want to prioritise cash payments, introduce a realistic deadline for invoices, or create a system to turn your profit to cash. 

Aside from financial objectives, another example of objectives for a business plan is sustaining productivity . When you run a business, it can be overwhelming and challenging to stay on top of all the tasks you have to get done. But, if you aim to remain productive and create a clear plan as to how, you can better manage your to-do list. 

For example, you may find project management tools that can help you track what you need to do and how to organise your priorities. You may also plan to outsource some aspects of your business eventually, such as investing in an accountant. 

Other than planning how you’ll get things done, you may want to create an objective for developing and retaining a customer base. Here, you may outline your efforts to find leads and recruit customers. So, establish goals for how many customers you want to find in your business’s first month, quarter, or year. Your market research can help you understand demand and create realistic sales goals. 

If you start a business that customers regularly need, like hairdressing, you may also want to create a strategy for how you’ll retain customers you earn. For example, you could introduce a loyalty program or prioritise customer service to build strong relationships. 

Another example of objectives for a business plan is to develop a memorable brand and overall marketing strategy . Your brand is how you present your business to the public, including its unique tone and design. So, here you might research how to make a brand memorable and consider what colour scheme and style will best reach your target audience. 

To measure your brand’s progress, you could hold focus groups on understanding what people think of your overall look. Then, surveys can help you grasp the reach of your reputation over time.

Aside from tracking the success of your brand strategy, you may want to consider your business’s marketing approach. For example, you might invest in paid advertising and use social media. You can measure the progress of this over time by using tools like Google Analytics to track your following and reach. 

Finally, creating an objective for your company’s growth will help you understand and plan for where you want to go. For example, you may want to expand your services or open a second location for a shop. Whatever ideas you have for the future of your business, try to create a clear, measurable way of getting there, including a timeline. You may also want to include steps towards this goal and savings goals for growth. 

To achieve and track your business plan objectives, you’ll need to organise your finances well. But, financial management can be stressful and time-consuming when you’re self-employed. That’s why thousands of business owners use the Countingup app to make their financial admin easier. 

Countingup is the business account with built-in accounting software that allows you to manage all your financial data in one place. With the cash flow insights feature, you can confidently keep on top of your finances wherever you are. Plus, the app lets you track and manage what you spend on your business with automatic expense categorisation. This way, you can stick to your budget and plan to accomplish your objectives.

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Table of Contents

What are business objectives, why are business objectives important, business objectives vs goals, benefits of setting business objectives, how to set business objectives, 20+ types of business objectives to measure success, how to set business objectives in your business plan.

Objectives are the steps leading to goals, which are the driving force for any organization. Regardless of the business scale, every company follows an objective. But, they may be the same or different from the objectives of those working there. Knowing the business objective not only helps the business to grow efficiently by gathering the right team but also helps in the overall development of employees. Read on to understand the basics of business objectives and their importance. 

Businesses run on goals. Objectives are goals focused on operations, revenue, growth and productivity. A description of business objectives brings clarity to the owner and educates other workers about their direction. 

Business objectives can be strategic or operational. Strategic objectives are concerned with long-term goals and involve techniques at a bigger scale to accomplish the goal. Operational objectives focus on short-term goals and are a part of the strategic objectives. They are small steps that contribute to the ultimate aim.

Business objectives hold the following relevances for the company:

• Enlightens every individual about the shared vision of the company
• Increases product quality
• Improves company culture
• Recruit and retain high-quality employees
• Develop leadership
• Encourages innovation
• Increase revenue
• Expands productivity

Objectives and goals are often used interchangeably. However, objectives are the steps that lead the company, business, organization and even an individual to the goal. For instance, the business goal is to increase growth by 20% by the end of the year 2023. The business objective will be to market the enhancement in the quality and innovation of the product. 

Here are enlisted the advantages of setting business objectives:

Help Establish Clear Roadmaps

Objectives are used to understand the actions required in a specific period to achieve the goal.

Set the Groundwork for the Culture

They enhance the vision and provide direction to the members.

Influence Talent Acquisition

They provide clarity in the needs and recruit the talents based on the requirements.

Encourage Teamwork

A common goal encourages community participation.

Promote Sound Leadership

Similar goals and work environments can lead due to a clear vision of the aim. 

Establish Accountability

It imparts thorough knowledge and reason for the action inculcating accountability.

Drive Productivity

The clarity in actions and objectives increases productivity.

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Utilize a top to bottom approach to set the business objectives. Refer to the below-mentioned points for assistance:

1. Establish Clear Goals

Clarify the idea and understand the goal. Use the SWOT analysis and goal-setting frameworks for further specificity. Be honest with the need. For instance, the goal is to reach 1000 product sales within six months, increase the revenue by 10%, and many more. 

2. Set a Baseline

Now you know where to reach. Next, gain clarity about your current position concerning every factor in mind. Find out the deficiency or problem statement and research to know the same. It states the feasibility of the goal and provides the main area to work at. 

3. Involve Players at All Levels in the Conversation

Business includes the team. The decisions involving the same should also have the unit. Every department can bring forward its suggestions and analysis. Combine them to understand the long-term and short-term effects of applying multiple ideas. 

4. Define Measurable Outcomes

Measure the progress and outcome . You should have an account for the benefits gained by incorporating a particular change. It enables timely modification of the shift or task. It further brings transparency in actual effects and helps gain knowledge of when to revert or try a new strategy is possible.

5. Outline a Roadmap with a Schedule

Any above steps will yield results if a plan is set to execute them. Involve every member in this step as well. Make a practical roadmap or timeline indicating the action is complete at the appointed time. For further clarity, break down each objective into different tasks and be precise about them. 

6. Integrate Successful Changes

Only some actions will lead to failure or success. Both are accompanied by trying new things.in such cases, observe and process. Then mindfully incorporate the items based on necessity.

Based on the mentioned information on business objectives, it is crystal clear that they vary according to the goal . Review the particle examples of the previous statement below:

Financial Business Objectives

• Cost: It includes expenditure in the business. The ultimate aim is to minimize it as much as possible without compromising the quality. 
• Sustainable growth: Businesses aiming to thrive for decades must consider the sustainability of their actions, plans, and financial objectives. 
• Profitability: It is another factor that contributes to long-lasting business. 
• Cash flow: It involves expenditure and income in a more complicated manner. Its positive or negative status decides the business's financial success in the long run. 
• Revenue: Businesses can focus on profit or, specifically, on revenue. It includes deciding a particular amount or percentage the company wishes to see itself after a specific period. 

Customer-Centric Business Objectives

• Sales: Concerning sales, the objectives can be increasing cross-selling, decreasing the customer acquisition cost, or related activity.
• Market share: The companies that aim to set themselves in the market can include the objective of increasing market share.
• Competitive positioning: it encourages further development of the project based on customer's needs and currently present features in the market
• Customer satisfaction : It includes regularly taking feedback and criticism from the customers and reflecting on the same
• Churn: Reducing churn or the number of customer losses is essential for some businesses to consider.
• Brand awareness: Investing in brand awareness helps get focussed. Clubed with quality and affordability, it is expected to shoot up sales. 

Internal Business Objectives

• Diversity and inclusion: Talents and skills can be found in any part of the globe. Welcoming and embracing them helps you make long-term relationships with them. 
• Change management: Changes are difficult to deal with. Efficiently working on them with a plan helps smoothen the transition. 
• Company growth: sustainable growth in terms of employees is a challenging task and hence needs to be included as an objective
• Employee satisfaction and engagement: It involves reducing their workload and keeping them happy. It shoots productivity. 
• Productivity: Efficient segregation of work based on interest to learn and known skills can increase productivity. Additional factors may be needed, thus requiring it to be worked on as an objective.
• Employee retention: Decreased turnover accompanies familiarity, loyalty, and dedication between employees and business
• Organizational culture is one of the key factors being considered by talents before taking up the job. Caring for employees and their issues is directly related to the company's success.
• Employee effectiveness: Work on efficiency and effectiveness by the team members. Promote methods to encourage it. 

Regulation-Related Business Objectives

• Compliance: Prioritize compliance requirements and set it as an objective to compulsorily meet them on time.
• Quality control: Including it as an objective showcases the company's focus. It further enhances the product's reach to customers and increases revenue.
• Waste reduction: Often ignored, it helps in keeping the environment safe. The act further provides indirect publicity and hence revenue and brand awareness.  

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The best business objective examples for success (from a CEO)

A business is defined by its mission, by its why . Business objectives are the goals you set for yourself, so that your organisation can make progress towards your mission.

I’ve been with Charlie since the very beginning as one of the original co-founders. I watched it grow from a small team cobbling together a product to an expanding business people are proud to work for. 

How did we get there? By setting goals that were well-defined and aligned to what we wanted to achieve – that’s why I wanted to share with you some business objectives examples I’ve used over the year.

Why setting the right business objectives is important

When you’re a small business, you have to do the most that you can with what you have. You will always be lacking in something - money, software tools, talent, staff. You have to make the most out of what you’re given. Every choice matters.

Objectives help you make the best strategic decisions you can. They inspire your teams, get them working towards a common purpose, and turn challenges into potential opportunities for success.

Setting the right business objectives will guide you towards making the most out of your limited resources so your business can grow.

How to formulate effective business objectives 

Creating business objectives that work is an art form. Many small business leaders (including myself) set our business objectives within a SMART framework: Specific, Measurable, Actionable, Relevant, and Time-bound.

• Specific : Clearly define what you want to achieve, and why. It gives you a clear direction
• Measurable : Can your progress be tracked, measured, and quantified? Set KPIs that tell you whether or not your strategies are working
• Achievable : It’s important to be ambitious, but your goals and objectives should be easily attainable
• Relevant : Having goals is fine and dandy, but how do they matter for the success of your business? Your objectives should align with your organisation’s values and long-term vision
• Time-bound : Your goals only matter if you make progress towards them. Setting a time frame for your goals

Find out how to set SMART goals in our complete guide on the topic.

Business objectives examples you can use

What kinds of business objectives should you set for yourself? How do you write your business objectives? I’d like to offer some examples of business objectives you might use yourself as a small business CEO.

Sales targets

Sales objectives focus on your business growth, whether that be through building your online presence or through diversification.

Example : Increase revenue by 5% month-over-month through new product lines and multi-channel digital marketing strategies.

Customer satisfaction

Your business is nothing without your customers. Customer satisfaction objectives help you improve the customer experience, build loyalty with your audience, and improve your brand reputation.

Example : Achieve a customer satisfaction score of 80% by improving support services and collecting regular customer feedback.

Market expansion

Are you thinking of expanding into a new geographical market? Use market expansion objectives to broaden your customer base and increase your business' market share.

Example : Expand into two new international markets by year's end, and establish a presence in two key cities.

Employee engagement

Are your employees motivated? Do they share your vision, and are they committed to your organisation? Setting engagement objectives can help keep it that way.

Example : Increase employee engagement scores by 25% by implementing a comprehensive wellness program and monthly team-building activities

Operational efficiency

Are there operations that can be optimized or improved? Set business objectives for operational efficiency to make them happen.

Example : Reduce operational costs by 15% through process optimization and adopting new technology solutions by the end of Q3.

Customer retention

Are your customers sticking around, or are they leaving? Can you figure out why? Use these business objectives to reduce your churn and improve your customer retention rates.

Example : Improve customer retention rates by 15% through a loyalty program and personalised customer service initiatives.

Charlie’s approach to setting objectives – our own example

At the beginning of each year, we set one objective that we want to accomplish. In 2023, that goal was We support a total of 3650 small businesses by the end of 2023 .

Once we have our objective, each team at Charlie has to come together and decide how we will work towards it together.

Each team sets their own internal SMART goals that contribute to the objective. The marketing team might set out to increase brand awareness by a certain amount. The sales team will set goals for customer acquisition.

Cycles and quests

Then, we use a Cycles and Quests model to keep each team working towards the primary objective.

Charlie divides the year into two 6-month Quests, where we focus on 3-4 company priorities. Each Quest consists of 4-week long “Cycles.”

We split up into smaller teams to work towards these business objectives for the coming Quest. Each time decide what tactics they will use to achieve those objectives to complete the Quest.

This way, we not only set ambitious goals, but we create a structured approach to achieving them.

How HR software helps you achieve your business objectives

A dedicated HR software tool can help you define your business objectives and come up with a plan for achieving them. The Charlie platform allows you to set and track goals so you can know what your team should focus on at any given time.

That ensures that everyone is contributing to the objectives. Individual team members can also set goals for themselves.

Your business objectives lead the way to your success

Having business objectives balances your short and long-term goals, keeps the organisation heading in the right direction, and helps you make the most out of whatever capital and manpower you have on hand.

It’s the new year. Take some time to reflect on your business processes. Are they based on SMART criteria?

If you need some guidance on setting appropriate business objectives, give Charlie a try to set both your business objectives and your personal goals.

How to develop an HR strategy for small businesses

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Fortunately, Asana can help. Set and share your business goals, visualize progress, and track all of your  objectives and key results  in one place. With our business goals template you can:

Connect strategy to tactics. Break down goals into projects and tasks so everyone knows how their daily work ladders up to the big picture.

Nail your execution plan. Give each goal or objective a clear owner and due date to drive action and accountability.

Track your progress. Once work is kicked off, share team updates so everyone knows how you’re progressing towards your business objectives and where there are blockers.

A digital OKR template works well for individual teams, but you can level up your goal-setting process with Asana’s Goals feature . Instead of just working on the team level, Goals is an organization-wide tool that can help your entire company set, track, and communicate about goals.

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All of your questions, answered:

What is a business goal? A business goal is an initiative or objective that your individual, team, and company’s work ladders up to. Business goals can be shorter-term, like team goals for the quarter, or longer-term, like company goals that bring the company closer to its mission.

How do I set business goals? Business goals should be specific and measurable. Consider using a framework, like OKRs, which can help your team set and measure your goals. To learn more about how to set good OKRs while avoiding common goal-setting pitfalls, download our free ebook .

Why is setting goals important? Setting goals is critical for businesses to clearly define objectives and align their initiatives with those objectives. But most teams lack the clarity they need to connect their work to their organization’s goals. A recent study found that only 26% of employees have a very clear understanding of how their work relates to their company’s goals, and just 16% say their company is very effective at setting and communicating goals. With a goal setting framework, your team can bridge the gap between daily projects and organizational impact.

Get started with company goal and milestones planning with our  business goals template . But to really take your organization’s goal planning to the next level, try  Goals . With Goals, you can align your organization’s work to your mission, so you can keep goals top of mind and do more work that delivers measurable results.

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Corporate objectives

Last updated 22 Mar 2021

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Corporate objectives are those that relate to the business as a whole . They are usually set by the top management of the business and they provide the focus for setting more detailed objectives for the main functional activities of the business.

This can be illustrated as follows:

Corporate objectives tend to focus on the desired performance and results of the business. It is important that corporate objectives cover a range of key areas where the business wants to achieve results rather than focusing on a single objective.

Peter Drucker suggested that corporate objectives should cover eight key areas:

• Corporate objective
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• Corporate strategy
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Corporate Business Plan:
2024 – 2026 Business Plan

Our intent with a new Strategic and Corporate Business Plan is to move away from complicated business documents and create tangible, ambitious plans that hold us accountable for our results. The three-year Corporate Business Plan is a fully resourced and sequenced program of initiatives that will execute our Strategic Plan and achieve its targets.

In order to support our effort to create an actionable plan, 2023 was the first year that we carried out a multi-year business planning process to help us achieve our long-term goals and to ensure visibility, awareness, and collective accountability across the WSIB to drive forward the new Strategic Plan. While the focus of this Corporate Business Plan remains 2024, we now have greater visibility into the upcoming years, and we will continue to mature the multi-year planning process in subsequent years.

Focus areas

In 2024, our strategic focus is on four major areas while maintaining core business operations:

• Modernize technology
• Digital enhancements
• How and where we work
• Stable finances

This doesn’t mean that work won’t continue on other areas of the plan in 2024, it merely highlights that additional effort is required to accomplish our goals in these areas.

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Japanese automaker Nissan aims for sustainability, worker inclusivity

FILE - A Nissan logo is displayed on a Nissan Pathfinder SUV at the Pittsburgh International Auto Show in Pittsburgh, Feb. 15, 2024. (AP Photo/Gene J. Puskar, File)

Nissan Chief Sustainability Officer Joji Tagawa speaks to the reporters at the automaker’s headquarters in Yokohama, Japan, Monday, July 29, 2024. (AP Photo/Yuri Kageyama)

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YOKOHAMA, Japan (AP) — Nissan has outlined a “sustainability plan” to become a greener and more inclusive company, promising to recycle batteries, empower its workers and create safer cars.

Nissan Motor Co. won’t be trying to beat rivals in the effort but hopes to work with various partners , Joji Tagawa, chief sustainability officer, told reporters this week at the company’s Yokohama headquarters.

Nissan is aiming to achieve carbon neutrality by 2050, which means net zero carbon emissions across all operations.

The governments of Japan, the U.S. and Europe have all set the same goal, as have Japanese rivals Toyota Motor Corp. and Honda Motor Co., and General Motors Co. of the U.S.

Under the latest plan, Nissan says that by 2030 it will reduce per-vehicle manufacturing CO2 emissions by 52% and cut per-vehicle driving CO2 emissions for new models by 50% in Japan, the U.S., Europe and China.

Tagawa said the Nissan Social Program 2030 is centered around six pillars: safety, quality, responsible sourcing, intellectual property, communities and empowering employees.

The company is supporting education to nurture future engineers, especially in relatively new areas like artificial intelligence and information technology, he said.

“We aim to become a people-centric company,” he said, reiterating the company’s commitment not to tolerate human rights violations in its operations and supply chain.

The latest plan is an update of Nissan’s Ambition 2030, announced in 2021, which was centered around introducing more electric vehicles.

Tagawa acknowledged huge investments were needed, which likely won’t pay off immediately but will translate into long-run returns. He gave no specifics on the amount of investment planned.

Nissan, which makes the Leaf electric car, Rogue SUV and Infiniti luxury models, says pay of managers will reflect their efforts in diversity and sustainability.

Sustainability is crucial in enhancing brand power, Nissan officials said.

Nissan also listed resource depletion and changing mobility needs as other concerns.

Awareness over climate change is growing in Japan. Earlier this week, record temperatures of above 40 degrees Celsius (104 Fahrenheit) were reached in parts of the country.

Japanese automakers, which dominated global markets in fuel-engines for decades, are adjusting their strategies for what the industry sees as an inevitable transition to more ecological powertrains such as electric vehicles and fuel cells.

Experts say the world must reduce CO2 emissions to avert extreme weather conditions and serious damage to human health, ecosystems and social infrastructure from climate change. Reaching net-zero emissions by 2050 will require drastic emissions reductions.

Last week, Nissan lowered its full-year profit forecast to 300 billion yen ($1.9 billion) from an earlier projection of 380 billion yen ($2.5 billion), as its first quarter profits suffered despite steady sales because of incentives and marketing expenses.

It expects to sell 3.65 million vehicles globally in the fiscal year ending in March 2025, up from about 3.4 million vehicles worldwide for the last fiscal year.

Yuri Kageyama is on X: https://twitter.com/yurikageyama

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Business Restructuring Review Vol. 23 No. 4 | July–August 2024

In This Issue:

U.S. Supreme Court Bankruptcy Update

The U.S. Supreme Court handed down three bankruptcy rulings to finish the current Term. The decisions address the validity of nonconsensual third-party releases in chapter 11 plans, the standing of insurance companies to object to "insurance neutral" chapter 11 plans, and the remedy for overpayment of administrative fees in chapter 11 cases to the Office of the U.S. Trustee. [ Read more … ]  

Ohio Bankruptcy Court Offers Guidance on (the Amended) Ordinary Course Payment Preference Defense

In In re ASPC Corp. , 658 B.R. 455 (Bankr. S.D. Ohio 2024), the U.S. Bankruptcy Court for the Southern District of Ohio addressed a preference defendant's burden of proof under the amended section of the Bankruptcy Code shielding from avoidance transfers made to pay debts incurred in the ordinary course of business of the debtor and the transferee. The court granted summary judgment to a creditor in avoidance litigation, ruling that the defendant need only demonstrate that the payment satisfied one—but not both—of the tests stated in section 547(c)(2). According to the bankruptcy court, "[t]his case illustrates the importance of [the 2005 amendment's] replacement of the conjunctive 'and' with the disjunctive 'or' between the subjective and objective tests for the ordinary course of business defense."           [ Read more … ]

First Impressions: Seventh Circuit Rules that the Bankruptcy Code's "Safe Harbor" for Securities Contracts Transfers Applies to Non-Public Securities

Section 546(e) of the Bankruptcy Code's "safe harbor" preventing avoidance in bankruptcy of certain securities, commodity, or forward-contract payments has long been a magnet for controversy. Several noteworthy court rulings have been issued in bankruptcy cases addressing the scope of the provision. One of the latest chapters in the ongoing debate was written by the U.S. Court of Appeals for the Seventh Circuit in Petr v. BMO Harris Bank N.A. , 95 F.4th 1090 (7th Cir. 2024). The Seventh Circuit affirmed a district court ruling broadly construing the section 546(e) safe harbor to bar a chapter 7 trustee from suing under state law and section 544 of the Bankruptcy Code to avoid an alleged constructively fraudulent transfer made by the debtor shortly after it had been acquired in a leveraged buy-out. Among other things, the Seventh Circuit agreed with the district court's conclusions that: (i) the safe harbor is not limited to transfers involving publicly traded securities; and (ii) section 546(e) preempted the trustee's claim to recover the value of the transfer under section 544 and state law. [ Read more … ]

Third Circuit: Unsecured Claim for Royalties from Intellectual Property Purchased by Debtor Discharged Under Chapter 11 Plan

Mitigating risk of loss associated with a bankruptcy filing should be an element of any commercial transaction, especially if it involves a sale or license of intellectual property rights. A ruling recently handed down by the U.S. Court of Appeals for the Third Circuit provides a stark reminder of the consequences of when it is not. In In re Mallinckrodt PLC , 99 F.4th 617 (3d Cir. 2024), the Third Circuit ruled that, in the absence of any security, a claim asserted by the seller of intellectual property rights for royalties payable under the sale agreement was a prepetition unsecured claim that was discharged when the bankruptcy court confirmed the debtor-buyer's chapter 11 plan. [ Read more … ]

Circuit Split: Eleventh Circuit and Second Circuit Disagree on Eligibility Requirements for Chapter 15 Debtors

Courts disagree over whether a foreign bankruptcy case can be recognized under chapter 15 of the Bankruptcy Code if the foreign debtor does not reside or have assets or a place of business in the United States. In 2013, the U.S. Court of Appeals for the Second Circuit staked out its position on this issue in Drawbridge Special Opportunities Fund LP v. Barnet (In re Barnet) , 737 F.3d 238 (2d Cir. 2013), ruling that the provision of the Bankruptcy Code requiring U.S. residency, assets, or a place of business applies in chapter 15 cases as well as cases filed under other chapters. The U.S. Court of Appeals for the Eleventh Circuit split with the Second Circuit on this controversial issue in In re Al Zawawi , 97 F.4th 1244 (11th Cir. 2024). Distancing itself from Barnet , the Eleventh Circuit affirmed a district court ruling that chapter 15 has its own eligibility requirements, and that the eligibility requirements for debtors in cases under other chapters of the Bankruptcy Code do not apply in chapter 15 cases. [ Read more … ]

New York Bankruptcy Court: Lockup Provision in Proposed Settlement Agreement Violated Bankruptcy Code's Disclosure and Solicitation Requirements

The U.S. Bankruptcy Court for the Southern District of New York addressed the propriety of restructuring support, plan support, or lockup agreements in In re GOL Linhas Aéreas Inteligentes S.A. , 2024 WL 1716490 (Bankr. S.D.N.Y. Apr. 22, 2024). The court approved a global settlement among the chapter 11 debtors and various aircraft lessors, but denied approval of an impermissible "lockup" provision in the settlement agreements, obligating the counterparties to support any chapter 11 plan later filed by the debtors provided the plan embodied the terms of the settlement. Although the bankruptcy court declined to adopt a "bright-line" prohibition of such agreements in all cases, it emphasized that the Bankruptcy Code's disclosure and vote solicitation requirements are paramount. The court also concluded that the lockup provision before it failed to pass muster because, unlike most typical lockup or "plan support agreements" or "restructuring support agreements," the provision did not specify the terms of a proposed chapter 11 plan, but merely the terms of the proposed settlement, together with a requirement that any plan could not be inconsistent with those settlement terms. [ Read more … ]

Newsworthy:

Heather Lennox  (Cleveland/New York) , Bruce Bennett  (Los Angeles) , Kevyn D. Orr  (Washington) , Gregory M. Gordon  (Dallas) , Carl E. Black  (Cleveland) , Daniel J. Merrett  (Atlanta) , Robert W. Hamilton  (Columbus) , Corinne Ball  (New York) , Gary L. Kaplan  (Miami) , Thomas M. Wearsch  (New York/Cleveland) , Brad B. Erens  (Chicago) , Jeffrey B. Ellman  (Atlanta) , and Dan T. Moss  (Washington/New York) were recognized as leading lawyers in the area of Bankruptcy/Restructuring in the 2024 edition of Chambers USA . Bruce Bennett and Gregory M. Gordon received a "Band 1" designation. Heather Lennox was ranked as a "Star Individual." Corinne Ball was designated a "Senior Statesperson."

Thomas M. Wearsch  (New York/Cleveland) spoke on a panel discussing "International Restructuring in the Automotive Sector" on June 4, 2024, at the International Bar Association Annual Meeting in Zurich, Switzerland.

Dr. Olaf Benning  (Frankfurt) , Markus Ledwina  (Frankfurt) , and Alexander Ballmann  (Munich) were recognized as leading lawyers by The Best Lawyers in Germany ™ 2025 in the practice area Restructuring and Insolvency Law.

On June 10, 2024, Dan T. Moss  (Washington/New York) was on a panel discussing "Insolvency Proceedings Without Solvency?" at the 24th Annual International Insolvency Conference in Singapore.

An article written by Daniel J. Merrett  (Atlanta) titled "New York Bankruptcy Court: Setoff and Unjust Enrichment Cannot Be Asserted as Affirmative Defenses in Bankruptcy Avoidance Litigation" was posted on June 11, 2024, on the Harvard Law School Bankruptcy Roundtable .

On May 17, 2024, the U.S. Bankruptcy Court for the District of Delaware recognized and enforced a restructuring plan for Spark Networks SE ("Spark") under chapter 15 of the Bankruptcy Code, marking the first such order for a plan formulated under Germany's Corporate Stabilization and Restructuring Act ("StaRUG"). Dating platformer provider Spark received approval for its StaRUG plan from a German court in January and successfully defended an appeal by certain shareholders in April. Introduced in January 2021, StaRUG allows companies to impose a compromise or arrangement, including a restructuring of liabilities, upon all or a subset of the creditors. The plan waives more than $30 million of secured debt and $13 million of unsecured debt, and provides approximately $24 million in liquidity support. The Jones Day professionals advising Spark included Dan T. Moss  (Washington/New York) , Olaf Benning  (Frankfurt) , David S. Torborg  (Washington) , Colleen E. Laduzinski  (Boston/New York) , Ryan Sims  (Washington) , S. Christopher Cundra IV  (Washington) , Nick Buchta  (Cleveland) , Richard H. Howell  (Washington) , Elizabeth A. Dengler  (Boston) , and Alexandra Levay  (Boston) .

An article written by T. Daniel Reynolds  (Cleveland) titled "Fifth Circuit: Recent U.S. Supreme Court Ruling Did Not Alter Mootness Requirements for Unstayed Bankruptcy Sale Orders" was published on June 4, 2024, by Lexis Practical Guidance .

An article written by Dan T. Moss  (Washington/New York) , Heather Lennox  (Cleveland/New York) , David S. Torborg  (Washington) , and Vinay Kurien  (Singapore) titled "Third Circuit Updates Its Standard for Granting Comity to Foreign Bankruptcy Proceedings" was published on June 9, 2024, by Lexis Practical Guidance .

An article written by Corinne Ball  (New York) , David S. Torborg  (Washington) , and Dan T. Moss  (Washington/New York) titled "Delaware Bankruptcy Court: 'Center of Main Interests' for Purposes of Chapter 15 Recognition Must Be Determined on Debtor-by-Debtor Rather than Enterprise Group Basis was published on June 9, 2024, by Lexis Practical Guidance .

An article written by T. Daniel Reynolds  (Cleveland) titled "Ability of Creditors' Committees to Prosecute Estate Claims Given a Boost in Delaware Bankruptcy Courts" was published on June 4, 2024, by Lexis Practical Guidance . 

Lawyer Spotlight: Fabienne Beuzit

Fabienne Beuzit is a partner in the Paris Office, where she leads the Business Restructuring & Reorganization team. Fabienne focuses on bankruptcy proceedings, court and out-of-court restructurings, distressed M&A matters, and insolvency-related litigation. She guides clients through complex restructuring situations and has represented debtors, lenders, shareholders, and investors in numerous restructurings in France and internationally. She regularly interacts with the dedicated departments of the French Ministry of Economy and Finance Affairs, particularly the Comité Interministériel de Restructuration Industrielle in charge of assisting distressed companies, and liaising with all relevant public bodies dedicated to the companies.

Fabienne's experience also includes setting up strategic carve-out, reorganization, or restructurings of groups and assisting turnaround distressed funds in the sale, acquisition, or investment of distressed equity interests.

According to Chambers Europe , Fabienne has "strong technical expertise coupled with business sense, and dedication at odd hours when the situation commands." France Legal 500 EMEA , which named her among the "Leading Individuals" in France, described Fabienne as a tough negotiator, creative in mastering all aspects of a restructuring case, and "totally dedicated to her clients."

Corinne Ball

Dan T. Moss

Daniel J. Merrett

Nicholas J. Morin

David S. Torborg

Jane Rue Wittstein

Oliver S. Zeltner

July 2024 Reprint

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Toward a 2030 Biodiversity Strategy for Canada: Halting and reversing nature loss

Toward a 2030 Biodiversity Strategy for Canada: Halting and reversing nature loss [ PDF - 3.72 MB ]

Introduction

Nature matters. Canadians depend on biodiverse ecosystems and the services they provide. These include clean air and water, fertile soil, carbon sequestration, and flood and drought mitigation.  Biological diversity—or biodiversity—also contributes to the resilience of species and helps ecosystems adapt to change. It is also clear that green and wild spaces are important for physical and mental health. Canada’s economy, environment, social, and cultural identities are closely interconnected with and dependent upon its biodiversity.  

Canada’s nature is important for the world and is essential for human survival, security, prosperity, and well-being

Subtitle: It provides us with a stable climate, breathable air, food supply, clean water, and protection from disease and disaster.

Under the subtitle are two graphics. One graphic is a pair of hands holding a globe with text that says “Twenty countries contain 94% of the world’s remaining wilderness. Canada is #2 on the list. The other graphic is a map of Canada with text “Canada has: 28 percent of the worlds boreal forest, 20 percent of the world’s freshwater, 24 percent of the world’s wetlands.” Under those two graphics are two maps of Canada that show the extent of Canada’s wetlands and that show the extent of treed land in Canada. The Hudson Plains and the southwestern Boreal Forest have the highest proportion of wetlands, while Arctic, Cordilleran and Prairie regions have the lowest. The Boreal region of Canada has the percentage cover by trees.

What is biodiversity?

The CBD defines biological diversity as “the variability among living organisms from all sources including, inter alia, terrestrial, marine and other aquatic ecosystems and the ecological complexes of which they are part; this includes diversity within species, between species and of ecosystems.”

Canada is home to an estimated 80,000 wild species. Canada is also steward of ecosystems that are globally significant and provide essential habitat for a unique variety of plants and animals, including many that are central to the traditions and cultures of Indigenous Peoples. This includes a vast proportion of the world’s boreal forests, 20% of its freshwater resources, and the longest coastline on the planet. Canada also has a quarter of global wetlands, 25% of remaining global temperate rainforests, and expansive areas of relatively untouched landscapes.

Addressing biodiversity loss is essential and Canadians care about nature and support its protection. Underneath this title are four graphics with accompanying text. A graphic of a hand holding a plant and another hand sheltering is accompanied by the text that 97 percent of Canadians have either maintained or increased their support for nature conservation since COVID-19. A graphic of a leaf with a coin accompanied by the text that Our economies are embedded in nature, not external to it. A graphic of a mammal with antlers accompanied by the text that 78 percent of Canadians prioritize the protection of animal species at risk of extinction over the development of those lands where those animals can be found. A graphic of a globe with a leaf accompanied by the text that Globally, nature’s contributions to people around the world are around $125 trillion a year. Below these four graphics are two graphs. One is a bar graph of the Percentage of global area conserved in relation to global 2020 targets, May 2021. It shows a bar where approximately 16.5 percent of the terrestrial area of the world is protected and conserved and a bar where approximately 15.5 percent is protected. A 17 percent target is shown next to the bars. Another two bars show that approximately 7.5% of marine areas are protected and conserved and slightly less are protected. A 10 percent target is shown next to the bars. The other is a line graph of the proportion of the area conserved, Canada. It shows four lines representing the terrestrial area protected and conserved, the terrestrial area protected, the marine area protected and conserved, and the marine area protected. The four lines all show increases since the base year of 1990, with a sudden increase in marine conservation and protection starting in 2016 to the last year of the graph, 2021.

Data for the graph ‘ Percentage of global area conserved in relation to global 2020 targets, May 2021 ’

But biodiversity is under threat. Multiple human drivers have significantly altered nature across the globe, resulting in the rapid decline of biodiversity and threatening more species with global extinction now than at any time in human history Footnote 1  . The global biodiversity crisis is gaining global recognition on par with climate change as an all-encompassing environmental issue with serious consequences for all humanity. The Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) released a Global Assessment in 2019, which found that biodiversity is being altered at an unprecedented rate. The IPBES report identified five direct drivers of biodiversity loss, namely land-use and sea-use change, invasive alien species, climate change, overexploitation of resources, and pollution.

Nature Globally and in Canada

On one side is a graphic showing the five main drivers of biodiversity loss in order of the scale of their impact running from Changes in land and sea use, direct exploitation of organisms, climate change, pollution and Invasive Alien Species. Accompanying text bullets are: Up to 1,000,000 million species are threatened with extinction, natural ecosystems have declined by 47 percent on average, approximately 25 percent of species are already threatened with extinction, the global biomass of wild animals has fallen by 82 percent. On the other side is a map of Canada showing the estimated historical loss of grasslands up to the early 1990’s. The greatest areas of loss are 99 percent of tall grass prairies in Manitoba, followed by 97 percent loss of tall grass savannah in southern Ontario, and 70 percent loss of prairie grasslands in the prairie provinces. Accompanying text bullets are: in Canada: 70 percent of prairie wetlands lost, 80 percent of the Carolinian Forest lost, over 80 percent of wetlands in and around urban areas lost, between 1970 and 2016, populations of mammal and fish species decreased by 42 percent and 21 percent on average.

Data table for the long description

The Convention on Biological Diversity (CBD)

The United Nations Convention on Biological Diversity (UN CBD) entered into force in 1993 and has 196 Parties, including Canada. As an international legally -binding treaty, the CBD commits the Parties to conserve biodiversity, use its components sustainably, and share the benefits arising from the use of genetic resources in a fair and equitable manner. Under the CBD, Parties are required to have a National Biodiversity Strategy and Action Plan (NBSAP) that outlines domestic efforts to advance the measures set out in the CBD. Parties must also prepare national reports describing implementation efforts.

Canada was the first industrialized country to ratify the CBD, acknowledging it as an important instrument for promoting and guiding efforts to conserve biodiversity and use biological resources sustainably. As further recognition of the importance of the CBD, Canada has hosted its Secretariat in Montreal since 1996.

After ratifying the CBD, Canada developed the Canadian Biodiversity Strategy in 1995, the Biodiversity Outcomes Framework in 2008, and the 2020 Biodiversity Goals and Targets for Canada in 2016. Together, these constitute Canada’s current NBSAP.

The new Kunming-Montreal Global Biodiversity Framework

The Kunming-Montreal Global Biodiversity Framework (KMGBF) was adopted in December 2022 at the 15 th meeting of the Conference of the Parties to the CBD (COP15). This landmark document builds on the Strategic Plan for Biodiversity 2011-2020 and includes a set of goals, targets, and a partial set of indicators for Parties to address (see Annex). A major focus of the KMGBF mission is halting and reversing biodiversity loss by 2030 and restoring biological diversity levels by 2050. The KMGBF represents “an ambitious path forward for our planet” and gives countries “the tools to turn the tide” on biodiversity loss Footnote 2  .

Parties are required to develop an updated NBSAP by the end of 2024, ahead of COP16, that aligns with the new KMGBF.

A circle divided into three parts, each part representing one of the three themes of the Kunming-Montreal Global Biodiversity Framework. Each of the three main parts is then further subdivided into the relevant targets (23 total) that fall under the theme in question. The breakdown is as follows: Theme 1 - Reducing threats to biodiversity. Targets 1 to 8 fall under this theme: 1) Reducing land- and sea-use change, 2) Restoration of degraded ecosystems, 3) Protect and conserve areas, 4) Halting species extinctions and reducing extinction risk, 5) Harvesting and trade of wild species, 6) Managing invasive alien species, 7) Reducing negative impacts of pollution on biodiversity, 8) Minimize impacts of climate change. Theme 2 - Meeting people’s needs through sustainable use and benefit-sharing. Targets 9 to 13 fall under this theme: 9) Management of wild species, 10) Agriculture, aquaculture, fisheries, and forests are sustainably managed, 11) Restore, maintain, and enhance nature’s contributions to people, including ecosystem functions and services, 12) Urban blue and green spaces, and 13) Fair and equitable sharing of genetic resources and DSI. Theme 3 - Tools and solutions for implementation and mainstreaming. Targets 14 to 23 fall under this theme: 14) Integrate biodiversity and its multiple values into policies, regulations, planning, and development, processes, 15) Integrate legal, administrative, or policy measures within business and financial institutions, 16) Encourage and enable sustainable consumption choices, 17) Establish, strengthen capacity for, and implement biosafety measures as set out in Article 8(g), 18) Identify, and eliminate, phase out or reform incentives, including subsidies, 19) Substantially and progressively increase the level of financial resources, 20) Strengthen capacity-building and technical and scientific cooperation, 21) Ensure data, information, and knowledge are accessible to decision makers, practitioners and the public, 22) Respecting rights and cultures of Indigenous peoples and local communities, and 23) Ensure gender equality.

Creating Canada’s 2030 National Biodiversity Strategy

The Government of Canada, through Environment and Climate Change Canada (ECCC), is responsible for leading the development of the 2030 National Biodiversity Strategy and reporting on Canada’s progress to meet the KMGBF targets. The Strategy will guide how Canada plans to achieve the new global goals and targets domestically.  

Where we’re going

The 2030 National Biodiversity Strategy will be part of our renewed NBSAP and will reflect domestic priorities for halting and reversing biodiversity loss and Canadian contributions to the goals and targets of the KMGBF to 2030. It will be framed around the KMGBF goals and targets, and cover all related aspects of nature conservation, sustainable use, and access and benefit-sharing of genetic resources. To ensure the Strategy translates into real action and that Canada can track its progress, it will include a robust measurement framework and a plan for how Canada will contribute to each of the KMGBF targets.

The detailed content of the Strategy will be drafted in 2023, informed by a range of engagement efforts (see “How we’ll get there” section below). Some guiding principles to consider as we build the Strategy together include:

• Committing to urgent and ambitious action – We are at a critical juncture for nature, which demands both urgent and ambitious action, and we cannot afford to wait or to take half- measures. While the targets in the KMGBF are ambitious, they are at best the minimum required to halt and reverse biodiversity loss by 2030.
• Seeking transformational change – Achieving our ambitious global goals will require transformational change across all facets of society. Simply put, the status quo will not get us to where we need to be.
• Taking a comprehensive, whole-of-society approach – One of the principles of the KMGBF is that a whole-of-society approach is required. No one group has all the knowledge, tools, and resources required to achieve our shared biodiversity goals. This will require all of us working together and leveraging the full suite of tools at our disposal to achieve ambitious outcomes for nature and people.
• Taking an all-of-government approach – While ECCC will lead the overall development of the Strategy, other federal departments will play important roles in leading and co-leading different elements of the plan in line with their mandates and expertise. All federal departments and agencies will have a role in supporting its implementation.
• Walking the path to reconciliation – Conserving and sustainably using biodiversity must be done hand in hand with Indigenous Peoples. As the original caretakers of the lands, waters, and ice, Indigenous Peoples are leaders, knowledge holders, and knowledge generators; and they hold unique rights and connections to lands and traditional territories.
• Making space for multiple ways of knowing – The 2030 Strategy will need to respect and weave together western science and Indigenous knowledge systems, recognizing that both will provide valuable insights and help Canada take informed and effective action towards halting and reversing biodiversity loss.

Where we’re coming from

As we develop the 2030 National Biodiversity Strategy, it is important to keep in mind that we are not starting from scratch. There is already a solid foundation of knowledge, initiatives, and tools that we can build on, while incorporating new knowledge and lessons learned.

Existing programs, including significant recent federal nature-related investments (see table below) are complemented by actions being undertaken by provinces and territories, Indigenous nations, non-governmental organizations, industry, and other partners and stakeholders across the country. It is important to reflect on what we already have in place to maximize the effectiveness and complementarity of these initiatives. Given the shared jurisdiction for managing biodiversity in Canada, provinces and territories collectively have a major role in helping meet many of the targets across the country’s lands and waters. Further, more than 3,500 municipal, regional, Indigenous, and other local governments are responsible for many direct on-the-ground conservation activities, as well as numerous innovative programs. And this all relies on the actions and contributions of individual Canadians at home, at work, and in their communities.

The Final Report for the 2020 Goals and Targets for Canada provides insight into previous and ongoing efforts and areas for particular attention going forward (see figure below). In developing and implementing the 2030 Strategy, it will be important to set priorities, actions, and milestones on the path to achieving our biodiversity goals and targets, regularly and transparently assess our progress, correct our course where necessary, and ensure the indicators used to track progress are effective.

Final Assessment of the 2020 Biodiversity Goals and Targets for Canada 3

Figure 1 – Final assessment of the 2020 Biodiversity Goals and Targets for Canada

Finally, the federal government has previously engaged Canadians on nature-related issues. There is an opportunity to draw on what Canadians have said during the development of these related initiatives and learn from and build upon them to achieve the KMGBF goals and targets in Canada. These initiatives include, for example, the nature-related targets in the Federal Sustainable Development Strategy  (Listening to Canadians) and the National Adaptation Strategy Nature and Biodiversity theme.

Cross-cutting challenges and opportunities

While there are challenges and opportunities that are unique to certain targets, there are some that cut across many or all targets. Taking account of these cross-cutting issues will help support our ability to take specific steps to conserve biodiversity, encourage sustainable use, and ensure our actions result in a balance of environmental, social, and economic benefits that are good for both nature and people.

Coordination and collaboration

Coordination and collaboration are often cited as challenges in biodiversity conservation and sustainable use, given the many actors, disciplines, regions, and ecosystems at play. However, coordination and collaboration is one way to help ensure our collective efforts are complementary, effective, appropriately prioritized, and efficiently resourced. Coordination and collaboration can occur between and across:

• the individuals, institutions, and sectors involved in biodiversity conservation and sustainable use, as well as those not traditionally focused on biodiversity but who may now want to be involved;
• academic disciplines crucial to producing the knowledge base for informed action; and
• areas of action and/or joint impact (e.g., biodiversity and climate change), to ensure best practices and lessons learned are shared and efforts are complementary and not duplicative.

Science and data

Effective and targeted actions to halt and reverse biodiversity loss must be guided by the best available information. Advancing the required knowledge base requires navigating complexity and uncertainty to address multiple, often interacting, questions that span disciplines, organizations, and communities. Another aspect is mobilizing data and knowledge, including sharing information between those developing knowledge and with those developing actions and programs. Furthermore, fully valuing Indigenous knowledge and ways of knowing will be necessary. Practices such as ‘two-eyed seeing’—“[t]o see from one eye with the strengths of Indigenous ways of knowing, and to see from the other eye with the strengths of Western ways of knowing, and to use both of these eyes together” Footnote 4  —are a means of drawing on the strengths of both western and Indigenous science and knowledge.

Where available knowledge is insufficient to facilitate decisions within a reasonable range of risk, then research may be required to synthesize existing data or gather and analyze new data and develop models and new insights to better predict possible outcomes. Assessing, challenging, and building on existing studies to improve and expand our knowledge of the natural world will be helpful.

Engagement and reconciliation with Indigenous Peoples

Indigenous Peoples have deep relationships with nature and have successfully stewarded their environments since time immemorial. Currently, they are on the frontlines of the twin crises of biodiversity loss and climate change, feeling their impacts both early and disproportionately. This uniquely positions Indigenous Peoples to be leaders in addressing the biodiversity crisis.

The 2030 National Biodiversity Strategy will seek to reflect First Nations, Inuit, and Métis voices and is an opportunity to advance reconciliation, which in turn is an opportunity to build and implement a stronger Strategy. Listening to Indigenous voices is an opportunity to learn from Indigenous leadership across all the KMGBF targets.

Public awareness and mainstreaming

Growing interest and engagement on biodiversity issues across Canada presents an opportunity to mainstream the conservation and sustainable use of biodiversity and accelerate our collective work to halt and reverse biodiversity loss. COP15 in Montreal was a unique opportunity for Canada and Canadians to focus attention on the importance of nature and the urgency of global action. COP15 saw the highest number of registrations of any other CBD COP before it, with significant participation from a wide variety of governments, Indigenous Peoples, women, youth, and civil society and business stakeholders. This type of momentum can help Canada achieve its nature goals.

Public awareness is important from an engagement and educational standpoint. It can also directly lead to action. For example, local awareness of climate change-induced extreme weather events can promote conservation and the application of nature-based solutions, and growing citizen science movements can fill research and monitoring gaps for data-deficient species.

However, increasing public awareness of biodiversity does not necessarily translate into the mainstreaming of biodiversity across governments, sectors, and society more broadly. Mainstreaming means “ensuring biodiversity, and the services it provides, are appropriately and adequately factored into policies and practices that rely and have an impact on it.” Footnote 5

There are many examples of biodiversity mainstreaming in Canada. For example, the Government of Canada conducts strategic environmental assessments on proposed policies, plans, and programs that could result in positive or negative environmental effects. At a municipal level, examples include the Town of Gibsons, British Columbia, which developed a municipal eco-assets strategy recognizing ecosystem services as integral to the town’s infrastructure and as a core asset of the community. Continuing to mainstream biodiversity will help ensure a whole-of-society approach to implementing the KMGBF.

How we’ll get to the 2030 Strategy

There will be several key opportunities for Canadians to help shape the 2030 National Biodiversity Strategy. These include:

• A virtual symposium to kick off the engagement process for developing the Strategy;
• Focused engagement with key groups (e.g., provincial and territorial governments, Indigenous nations, municipalities and regional governments, civil society organizations, financial, resource, and industrial sectors, youth), or around thematic issues;
• An online platform to allow for broader input; and
• An opportunity to review a draft Strategy, and provide input, before it is finalized.

Your input is invaluable

To help inform the 2030 Strategy, please consider the following overarching questions:

• What are the key features of a successful 2030 National Biodiversity Strategy? 
• What are the most significant challenges and opportunities to achieving the KMGBF 2030 targets in Canada? What successful initiatives could we build upon?
• Are there targets where Canada is already making good progress and others where Canada should focus more attention? 
• What measures should be prioritized and implemented as soon as possible to ensure we meet the 2030 targets and are on track to reach the longer-term 2050 goals? 
• No target is an island: What overarching tools and solutions hold the most potential for making progress across multiple targets?
• What additional knowledge and enabling mechanisms (e.g., networks, policies) are critical to inform implementation decision-making at all levels?  
• In drafting 2030 National Biodiversity Strategy what individuals’, communities’, or organizations’ perspectives, knowledge, and skills should be meaningfully amplified to make progress on reducing threats to biodiversity?
• What are the key human needs and values to be addressed to make biodiversity loss a mainstream concern?
• What does success look like?

 Annex

1 Indicators marked with a b, a binary indicator was proposed for inclusion for this Goal or Target. See the ‘ Monitoring framework for the Kunming-Montreal global biodiversity framework ’ for more information.

2 Indicators marked with an asterisk (*), an agreed up to date, methodology does not exist for this indicator. The Ad Hoc Technical Expert Group will work with partners to guide the development of this indicator.

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2024 Investment Climate Statements: Finland

• EXECUTIVE SUMMARY

Finland is a Nordic country situated north of the Baltic states, bordering Russia, Sweden, and Norway. It has excellent transportation links within the Nordic-Baltic region and is a member of the Schengen Zone within which internal border controls have been, for the most part, eliminated. In 2023, the population was around 5.6 million, with over 85 percent residing in cities in the country’s south. Helsinki is the capital and largest city, with a population of around 675,000 in the city and 1.5 million in the metropolitan area.

Finland is a member of the European Union and a part of the Euro area. In 2023, Finland joined NATO and concluded negotiations on a bilateral Defense Cooperation Agreement (DCA) with the United States. NATO membership and the DCA should benefit the country economically by increasing regional security and stability; and investments in the defense industry will create jobs and stimulate economic growth and trade. According to Finnish Customs, the United States was Finland’s biggest trading partner for exports in 2023.

As a modern, stable economy, Finland offers a well-developed digital infrastructure with stability, functionality, and a high standard of living. The country has a highly skilled, educated, and multilingual labor force with solid expertise in Information Communications Technology (ICT) and emerging technologies, including microelectronics; quantum and supercomputing; shipbuilding; forestry; and renewable energy. Finland and the United Sates are intensifying cooperation in various fields, including cybersecurity, 6G networks, nuclear, climate, energy, health, biotechnology, space, quantum technology, artificial intelligence, and other emerging technologies through bilateral joint statements and agreements.

In 2021, emerging from the pandemic, Finland’s economy recovered swiftly from recession to moderate growth of 2.6 percent, but growth slowed after Russia’s February 2022 full-scale invasion of Ukraine. The center-right government of Prime Minister Petteri Orpo, formed in June 2023 following parliamentary elections in April 2023, aims to improve weak economic growth through changes to structural policies, including balancing public finances; spurring investment in education, research, and development; accelerating the green transition; and introducing labor market reforms. Labor unions engaged in a series of political strikes aimed at blocking the implementation of the labor market reforms during the spring of 2024.

At the same time, an aging population and a shrinking workforce are the most pressing demographic concerns for economic growth. According to the Foreign Direct Investment (FDI) Barometer 2023, over three-quarters of businesses report experiencing a talent shortage, with large foreign-owned companies being most negatively affected. In response, Finland aims to increase work- and education-based immigration through the Talent Boost program, revised for the years 2023-2027. The aim is to attract and improve the employment of international specialists immigrating to Finland.

Finland has set a target of becoming carbon neutral by 2035. To accelerate the green transition, the government is prioritizing investment projects in renewable energy production, industrial electrification, hydrogen economy, carbon capture and storage, and battery production to grant quicker permit processing times. The current pipeline of green investments amounts to approximately 230 billion euros ($247 billion), including projects by domestic and multinational companies. The high share of carbon-free electricity production in the domestic energy mix, which was 94 percent in 2023, facilitates the green transition.

The European Central Bank has tightened monetary policy in the euro area in response to high inflation, which has also slowed economic growth in Finland during the past two years. Industrial production and construction are sensitive to interest rate movements, which have reduced private consumption, investment, and the demand for housing in Finland. The Bank of Finland’s interim forecast indicates Gross Domestic Product (GDP) will decrease by 0.5 percent in 2024. Economists predict the economy will bounce back towards the end of the year, and GDP will grow by 1.7 percent in 2025. Inflation is projected to decline to below one percent during 2024, improving employees’ actual earnings and consumers’ purchasing power.

Russia’s war against Ukraine has impacted Finland’s economic activity and inflation through higher energy and commodity prices, the disruption of international commerce, and weaker confidence in the economy. Finnish Customs indicates the value of Finland’s exports of goods to Russia and Central Asia amounted to 1.2 billion euros ($1.3 billion) in 2023, a decrease of 50.5 percent compared to 2022. The overall economic effects of the war on the private sector have remained relatively small as companies have replaced Russian trade with other markets.

1. Openness To, and Restrictions Upon, Foreign Investment

• Policies Towards Foreign Direct Investment

The Finnis government is open to foreign investment. As an EU member state, Finland is committed to the free movement of goods, capital, persons, and certain services. Companies benefit from trade arrangements through EU and World Trade Organization (WTO) membership, and the protection offered by Finland’s bilateral investment treaties with sixty-three countries.

Private ownership and the participation of foreign companies or individuals are unrestricted, and the government promotes trade and foreign direct investment. Business Finland helps foreign investors set up businesses and provides free services ranging from data collection and matchmaking to location management. The organization offers funding for research and development work carried out by companies, research organizations, and public sector service providers in Finland: https://www.businessfinland.com/  

• Limits on Foreign Control and Right to Private Ownership and Establishment

The Act on Monitoring Foreign Corporate Acquisitions (172/2012) governs foreign investments in Finland. The Ministry of Economic Affairs and Employment monitors and confirms foreign corporate acquisitions and decides whether an acquisition conflicts with securing national defense and safeguarding public order and security. If the ministry finds a critical national interest jeopardized, it must refer the matter to the Council of State, which may refuse to approve the acquisition. For more information: https://tem.fi/en/acquisitions  

In the non-military sector, Finnish companies considered critical for securing vital functions are subject to screening, which applies to foreign owners residing or domiciled outside the EU or the European Free Trade Association (EFTA). The Ministry of Economic Affairs and Employment provides instructions for preparing the application/notification. The application and statement must also be accompanied by a form containing specific information required by EU regulation.

For defense acquisitions, monitoring applies to all foreign owners, who must apply for prior approval. “Defense” includes all entities that supply or have supplied goods or services to the Finnish Ministry of Defense, the Finnish Defense Forces, and the Finnish Border Guard, as well as entities dealing in dual-use goods.

Finland requires non-EU/European Economic Area (EEA) foreign individuals or entities to receive Defense Ministry permission before they purchase real estate. Companies registered in Finland with decision-making bodies of at least one-tenth non-EU/EEA origin must seek a permit. More information is available here: https://www.defmin.fi/en/licences_and_services/authorisation_to_non-eu_and_non-eea_buyers_to_buy_real_estate#a6591279  

In 2022, the European Commission published guidance for EU member states on assessing and preventing threats to EU security and public order from Russian and Belarusian investments. The direction highlights the increased risk from investments subject to Russian or Belarusian government influence in the context of Russia’s invasion of Ukraine and calls for close cooperation between authorities involved in investment screening and those responsible for enforcing sanctions.

• Other Investment Policy Reviews

Finland is considered one of the most open economies in the OECD area with a stable economy and society, strong institutions, and low corruption that attracts foreign investors. Knowledge and innovation capacity are among the most critical factors bringing foreign firms to the Finnish economy, and salaries for high-skilled workers are considered relatively competitive compared to other Nordic states.

In 2021, the OECD launched the Impact of Regulation on International Investment in Finland report to analyze FDI flows toward Finland and other Nordic-Baltic countries and discuss the benefits of foreign investment for the Finnish economy. The OECD noted that several challenges may prevent Finland from exploiting its full potential as a destination for FDI.

The OECD recommended reviewing and streamlining inefficient and burdensome policies, diminishing red tape, and fostering competition to encourage new international investment and enhance the economic performance of existing players. Complex administrative procedures to recruit foreign talent and stringent labor market conditions affect growth prospects. Further policy responses that help businesses deal with skill shortages are essential to ensure attractiveness as an investment location. More information is available here: https://www.oecd.or g/publications/the-impact-of-regulation-on-international-investment-in-finland-b1bf8bee-en.htm  

Over the past three years, Finland has not undergone an investment policy review by the WTO or the United Nations Committee on Trade and Development (UNCTAD).

• Business Facilitation

All businesses in Finland must be publicly registered at the Finnish Trade Register. The website is: https://www.prh.fi/en/kaupparekisteri.html .

The Business Information System (BIS) is an online service enabling investors to start a business or organization, report changes, close down a business, or conduct searches: https://www.prh.fi/en/kaupparekisteri/rekisterointipalvelut/ytj.html  

All businesses must also enter the VAT, Prepayment, and Employer Registers of Tax Administration. Instructions for registering a company can be found at this website: https://www.vero.fi/en/businesses-and-corporations/business-operations/tax-administrations-registers–business/  

Entrepreneurs can apply for a residence permit in Finland. Before a permit can be issued, entrepreneurs usually need to enter their business in the Trade Register maintained by the Finnish Patent and Registration Office. https://migri.fi/en/entrepreneur  

In 2022, Finland introduced a long-term “D” visa for students, researchers, persons in managerial positions in companies, and their family members to increase the immigration of skilled labor. With a “D” visa, applicants can enter Finland immediately after receiving a favorable decision on the residence permit application, and the “D” visa sticker has been attached to the passport. For more information: https://migri.fi/en/d-visa  

• Outward Investment

International trade and external economic relations are central to Finland’s foreign and security policy. The Ministry for Foreign Affairs prepares and implements Finland’s trade policy within the framework of the EU.

Team Finland is a network of public sector bodies dedicated to helping Finnish companies grow and be successful in their dealings abroad. It also promotes the country’s image and attracts foreign investments and experts to Finland. The network offers tailor-made service packages for companies’ internationalization needs based on the services provided by the network actors. Service packages typically combine services provided by the Center for Economic Development, Transport and the Environment, Business Finland, Finnvera, and the Ministry for Foreign Affairs. https://www.team-finland.fi/en/network-services-for-companies  

Business Finland is a public-sector operator and part of the Team Finland network. It helps Finnish Small- and Medium-Sized Enterprises (SMEs) go international, encourages foreign direct investment in Finland, and promotes tourism. The organization focuses on agricultural technology, clean technology, connectivity, e-commerce, education, information and communication technology, digitalization, mining, and mobility. While many of Business Finland’s programs are export-oriented, they also seek to offer business and network opportunities within Finland that are not necessarily focused on exports. The organization employs 760 specialists at 40 foreign locations and 16 offices in Finland. https://www.businessfinland.fi/en/for-finnish-customers/home  

The government generally allows domestic investors to invest abroad, with some exceptions. The defense ministry approves arms exports for military use, the National Police Board grants permission to export civilian weapons, and the foreign ministry oversees exports of dual-use products.

• 2. Bilateral Investment and Taxation Treaties

Finland has 55 Bilateral Investment Treaties in force but does not share a BIT or Free Trade Agreement (FTA) with the United States. As an EU member state, Finland is a signatory to any treaty or agreement signed by the EU, including free trade agreements. A complete list of Finland’s investment agreements can be found at: https://investmentpolicy.unctad.org/international-investment-agreements/countries/71/finland  

Finland and the United States signed a convention to avoid double taxation and prevent fiscal evasion concerning taxes on income and capital (TIAS 12101) that entered into force in 1990. In 2014, the two countries signed an intergovernmental agreement to implement the U.S. Foreign Account Tax Compliance Act (FATCA), which fights tax evasion and fraud. For more information: https://www.vero.fi/en/businesses-and-corporations/business-operations/financial-sector/fatca-crs-and-dac2/general-information/   https://home.treasury.gov/system/files/131/FATCA-Agreement-Finland-3-5-2014.pdf

Finland is a member of the OECD Inclusive Framework on Base Erosion and Profit Shifting and a party to the two-pillar plan to address the tax challenges arising from the digitalization of the economy. For a list of Finland’s bilateral tax agreements, see: https://www.vero.fi/en/detailed-guidance/guidance/49062/tax_treatie/  

3. Legal Regime

• Transparency of the Regulatory System

In Finland, competition policy aims to create and maintain an environment where enterprises have a level playing field and an opportunity to succeed due to their expertise. The Competition Act (948/2011) is the base for the national competition policy, seeking to ensure sound and effective economic competition. The Finnish Competition and Consumer Authority is responsible for applying the legislation. For more information: https://www.kkv.fi/en/competition-affairs/competition-act/  

Finland is subject to accounting, auditing, and financial reporting requirements established through EU regulations and directives as transposed into national laws and regulations. Finland has fully aligned its legal framework with the EU acquis communitaire related to accounting and auditing. For more information: https://www.ifac.org/about-ifac/membership/profile/finland#:~:text=In%20Finland%2C%20the%20Accounting%20Act,European%20Commission%20(EC)%20Regulations  

Finnish law does not require institutional investors and financial intermediaries to consider Environmental, Social, and Governance (ESG) factors when making investment decisions. Most institutional investors and financial intermediaries have signed the UN Principles for Responsible Investment and also consider sustainable development goals in their investment decisions. However, the Finnish Corporate Governance Code considers certain ESG factors in its recommendations, such as the composition of the company’s board of directors concerning gender. The Corporate Governance Code applies to all companies listed on Nasdaq Helsinki. https://cgfinland.fi/en/corporate-governance-code/  

In September 2021, the Ministry of Economic Affairs and Employment released a Sustainable Development Goals (SDG) finance roadmap, called the “Finnish Roadmap for Financing a Decade of SDG Action 2021.” The roadmap aims to support Finnish stakeholders with a goal of increasing financing for solutions to reach the SDGs in Finland and globally. More information can be found here: https://tem.fi/en/developing-finlands-sustainable-finance-ecosystems  

The Act on the Openness of Public Documents establishes the openness of all records in the possession of officials of the state, municipalities, registered religious communities, and corporations that perform legally mandated public duties, such as pension funds and public utilities. Exceptions can only be made by law or by an executive order for reasons such as national security. https://oikeusministerio.fi/en/act-on-the-openness-of-government-activities  

The Ministry of Justice maintains an online Finlex Data Bank database of up-to-date legislative and judicial information. Most of the databases are only available in Finnish and Swedish, but some translations of Finnish acts and decrees are also available in English and other languages. Case law in the legal literature database is also available in English. https://finlex.fi/en/  

The Ministry of Justice provides an online service to request and give statements electronically in connection with draft regulations, legislation, and other government documents. Public administration authorities can publish draft bills and regulations for public consultation. The service is available in Finnish and Swedish: https://www.lausuntopalvelu.fi/FI  

The Parliamentary Ombudsman exercises oversight to ensure that those who perform public tasks comply with the law and fulfill their responsibilities. The Ombudsman investigates complaints, conducts on-site inspections, and makes statements on legislative proposals. The scope of the Ombudsman’s oversight includes courts, authorities, and public servants, as well as other persons and organizations that perform public tasks. The Ombudsman submits an annual report to Parliament, including observations on the state of the administration of justice and any shortcomings in legislation. https://www.oikeusasiamies.fi/en/eoa  

The status of Finland’s public finances is available at Statistics Finland, Finland’s official statistics agency: https://www.stat.fi/en/topic/national-economy  

The status of Finland’s national debt is available at the State Treasury: https://www.treasuryfinland.fi/statistics/statistics-on-central-government-debt/  

• International Regulatory Considerations

Finland follows EU internal market practices, which define Finland’s trade relations both inside the EU and with non-EU countries. As a member of the WTO, Finland reports under the Agreement on Technical Barriers to Trade (TBT Agreement) all proposed technical regulations that could affect trade with other member countries. In 2021, Finland submitted two notifications of technical regulations and conformity assessment procedures to the WTO. It has submitted 105 notifications since 1995. Finland is a signatory to the WTO Trade Facilitation Agreement (TFA), which entered into force on February 22, 2017.

• Legal System and Judicial Independence

Finland has a civil law system. European Community (EC) law is directly applicable in Finland and takes precedence over national legislation. The Market Court is a special court for rulings in commercial law, competition, and public procurement cases, and may issue injunctions and penalties against the illegal restriction of competition. It also governs mergers and acquisitions, may overturn public procurement decisions, and require compensatory payments. More information about the court is available here: https://oikeus.fi/tuomioistuimet/en/index.html  

Finland has been a party to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards since 1962. The provisions of the convention have been included in the Arbitration Act (957/1992).

The Oikeus.fi website https://oikeus.fi/en/index.html   contains information about the Finnish judicial system and links to the websites of the independent courts, the public legal aid and guardianship districts, the National Prosecution Authority, the National Enforcement Authority Finland, and the Criminal Sanctions Agency.

• Laws and Regulations on Foreign Direct Investment

The Ministry of Economic Affairs and Employment monitors foreign corporate acquisitions and is a national contact point for the EU screening regulation. The purpose of the Act on the Monitoring of Foreign Corporate Acquisitions in Finland (127/2012) (hereafter the Act) is to monitor and, if vital national interests so require, to restrict the transfer of influence to foreigners and foreign organizations and foundations. More information about the Act is available here: ihttps://tem.fi/en/acquisitions.

Under the Act, corporate acquisition refers to activities in which a foreign owner gains control of at least one-tenth, at least one-third, or at least one-half of the aggregate number of votes conferred by all shares in the company or a holding that otherwise corresponds to decision-making authority in a limited liability company or other monitored entity. For more information: https://tem.fi/documents/1410877/0/Kysymyksi%C3%A4+ja+vastauksia_en.pdf/0ef51799-6c84-9251-6cfe-188bc91c6f83/Kysymyksi%C3%A4+ja+vastauksia_en.pdf?t=1636548655250  

There is no primary or “one-stop-shop” website that provides all relevant laws, rules, procedures, and reporting requirements for investors. A non-European Economic Area (EEA) resident (persons or companies) operating in Finland must obtain a license or a notification when starting a business in a regulated industry. For more information: https://tem.fi/en/regulation-of-business-operations  

• Competition and Antitrust Laws

The Finnish Competition and Consumer Authority (FCCA) protects competition by intervening in cases regarding restrictive practices, such as cartels and abuse of dominant position, and violations of the Competition Act and the Treaty on the Functioning of the European Union (TFEU). Investigations occur both on the FCCA’s initiative and based on complaints. Where necessary, the FCCA makes proposals to the Market Court regarding penalties.

The FCCA requires notification on mergers and acquisitions that exceed certain turnover thresholds. The FCCA will intervene in the transaction if it deems it to prevent effective competition in Finland. The FCCA would investigate transactions where the parties’ combined turnover generated in Finland exceeds EUR 100 million and the total turnover generated in Finland of at least two parties exceeds EUR 10 million per party.

In international competition matters, the FCCA’s key stakeholders are the European Commission (DG Competition), the OECD Competition Committee, the Nordic competition authorities, and the International Competition Network (ICN). FCCA rulings and decisions can be found in the archive in Finnish. More information is available at: https://www.kkv.fi/en/facts-and-advice/competition-affairs/

• Expropriation and Compensation

Finnish law protects private property rights. Citizen property is protected by the constitution, which includes basic provisions in the event of expropriation. Private property is only expropriated for public purposes (eminent domain), in a non-discriminatory manner, with reasonable compensation, and in accordance with established international law.

Expropriation is usually based on a permit given by the government or on a confirmed plan and is performed by the District Survey Office. An expropriation permit granted by the government may be appealed to the Supreme Administrative Court. Compensation is awarded at full market price but may exclude the rise in value due only to planning decisions.

Besides normal expropriation according to the Expropriation Act, a municipality or the state has the right to expropriate land for planning purposes. Expropriation is mainly for acquiring land for common needs, such as street areas, parks, and civic buildings. The method is rarely used: less than one percent of land acquired by the municipalities is expropriated. Credendo Group ranks Finland’s expropriation risk as low (1), on a scale from 1 to 7: https://credendo.com/en/country-risk/finland  

Dispute Settlement

• ICSID Convention and New York Convention

In 1969, Finland became a member state of the World Bank-based International Center for Settlement of Investment Disputes (ICSID; Washington Convention). Finland is a signatory to the Convention of the Recognition and Enforcement of Foreign Arbitral Awards (1958 New York Convention).

• Investor-State Dispute Settlement

The Finnish Arbitration Act (967/1992) applies to domestic and international arbitration without distinction. Sections 1 to 50 apply to arbitration in Finland, and Sections 51 to 55 apply to arbitration agreements providing for arbitration abroad and the recognition and enforcement of foreign arbitral awards in Finland. Of 229 parties in 2021, the majority (208) were from Finland.

In 2021, a Chinese investor brought the first known investment treaty claim against Finland. He was detained and had his business center raided and shut down on suspicion it was facilitating illegal immigration. The proceedings were ultimately settled between Finland and the claimant. For more information: https://investmentpolicy.unctad.org/investment-dispute-settlement/cases/1192/wang-v-finland  

• International Commercial Arbitration and Foreign Courts

Finland has a long tradition of institutional arbitration, and its legal framework dates to 1928. Today, arbitration procedures are governed by the 1992 Arbitration Act (as amended), which largely mirrors the UNCITRAL Model Law on International Commercial Arbitration of 1985 (with amendments, as adopted in 2006). However, the UNCITRAL Model law has yet to be incorporated into Finnish law.

Finland’s Act on Mediation in Civil Disputes and Certification of Settlements by Courts (394/2011) aims to facilitate alternative dispute resolution (ADR) and promote amicable settlements by encouraging mediation and applies to settlements concluded in other EU member states: https://www.finlex.fi/en/laki/kaannokset/2011/en20110394.pdf

In June 2016, the Finland Arbitration Institute of the Chamber of Commerce (FAI) launched its Mediation Rules under which FAI will administer mediation: https://arbitration.fi/mediation/mediation_rules/  

Any dispute in a civil or commercial matter, international or domestic, which can be settled by agreement may be referred to arbitration. Arbitration is frequently used to resolve commercial disputes and is usually faster than court proceedings. An arbitration award is final and binding. FAI promotes the settlement of disputes through arbitration, commonly using the “FAI Arbitration/Expedited Arbitration Rules,” which were updated in 2020: https://arbitration.fi/en/arbitration/rules-and-guidelines/  

The Finland Arbitration Institute (FAI) appoints arbitrators both to domestic and international arbitration proceedings and administers domestic and international arbitrations governed by its rules. It also appoints arbitrators in ad hoc cases when the arbitration agreement provides and acts as appointing authority under the UNCITRAL Arbitration Rules. The Finnish Arbitration Act (967/1992) states that foreign nationals can act as arbitrators. For more information: https://arbitration.fi/en/arbitration/  

Finland signed the UN Convention on Transparency in Treaty-based Investor-State Arbitration (“Mauritius Convention”) in March 2015. Under these rules, all documents and hearings are open to the public, interested parties may submit statements, and protection for confidential information has been strengthened.

• Bankruptcy Regulations

The Bankruptcy Act (120/2004) governs bankruptcy proceedings aimed at liquidating the assets of an insolvent company to satisfy its creditors and dissolve the company. The act was amended in 2019 to simplify, digitize, and speed up bankruptcy proceedings. The amended act allows administrators to send notices and invitations to creditor addresses registered in the Trade Register. This improves accessibility for foreign companies that have established a branch in Finland. For more information: https://www.finlex.fi/en/laki/kaannokset/2004/en20040120.pdf

The Bankruptcy Ombudsman is an independent authority that supervises the administration of bankruptcy estates in Finland . The Office of Bankruptcy Ombudsman is a member of the International Association of Insolvency Regulators (IAIR). For more information: https://www.konkurssiasiamies.fi/en/index.html  

The Reorganization of Enterprises Act (1993/47) establishes a legal framework for reorganization with the aim to provide an alternative to bankruptcy proceedings. The act excludes credit and insurance institutions and certain other financial institutions. Recognition of restructuring or insolvency processes initiated outside of the EU requires an exequatur from a Finnish court. https://www.finlex.fi/fi/laki/kaannokset/1993/en19930047  

4. Industrial Policies

• Investment Incentives

Foreign-owned companies in Finland are eligible for government and EU incentives on an equal footing with Finnish-owned businesses. Companies receive support through grants, loans, tax benefits, equity participation, guarantees, and employee training.

The income tax rate for limited liability companies and other corporate entities is 20 percent. According to the 2023 International Tax Competitiveness Index, the Finnish tax system is the 19th best tax code among 38 OECD countries. For more information: https://www.vero.fi/en/businesses-and-corporations/business-operations/foreign-business-in-finland/taxation-in-finland/   and https://taxfoundation.org/location/finland/  

Startups, SMEs, and large companies can benefit from Business Finland’s incentives: https://www.businessfinland.fi/en/do-business-with-finland/invest-in-finland/business-environment/incentives/incentives-short   and https://www.businessfinland.fi/48d8e1/globalassets/julkaisut/invest-in-finland/business-guides-and-fact-sheets/iif_factsheet_incentives.pdf

Centers for Economic Development, Transport, and the Environment (ELY Centers) support the establishment, growth, and development of SMEs by providing advisory, training, and expert services, and by granting funding for investment and development projects. Large companies may also qualify for assistance or funding if they significantly increase employment in their region of operation. Startups can receive subsidies to establish and expand business operations during their first 24 months. For more information: http://www.ely-keskus.fi/en/web/ely-en/business-and-industry;jsessionid=0B09A1B237B74FAC485AAD7C8E068DBF  

As part of its Sustainable Growth Program, which is funded by the EU Recovery Plan, Finland is promoting energy investments and energy infrastructure projects that reduce greenhouse gas emissions in Finland and support Finland’s target to be carbon neutral by 2035. For more information: https://tem.fi/en/-/energy-investments-of-finland-s-sustainable-growth-programme-promote-the-green-transition   and https://www.businessfinland.fi/en/for-finnish-customers/services/funding/energy-aid  

Government aid is available for the implementation of energy audits, investments that conserve energy, and investments related to the use of renewable energy, as well as for European Skills, Competences, Qualifications and Occupations (ESCO) projects. For more information: https://www.motiva.fi/en/solutions/policy_instruments/energy_aid  

Finnvera offers loans, domestic guarantees, export credit guarantees, and other services associated with financing exports: https://www.finnvera.fi/eng  

• Foreign Trade Zones/Free Ports/Trade Facilitation

The EU Customs Code (UCC), which entered into force on May 1, 2016, harmonized free trade zone area regulations in the EU.

The Åland Islands are one of the unique fiscal territories within Finland and the EU. The tax border separates the Åland Islands from the VAT and excise territory of the EU. VAT and excise are levied on goods imported across the tax border, but no customs duty is levied. In tax border trade, goods can be sold with a tax-free invoice in accordance with the detailed taxation instructions of the Finnish Tax Administration. Trade between Åland and non-EU countries is subject to the same regulations and instructions as trade between the EU and third countries. For more information: https://tulli.fi/en/businesses/aland-businesses  

• Performance and Data Localization Requirements

As an EU member state, Finland adheres to the General Data Protection Regulation (Regulation (EU) 2016/679) (GDPR), an EU law that entered into force in 2016, and, following a two-year transition period, became law on May 25, 2018, without requiring EU member states to change national laws.

Finland’s Data Protection Act (1050/2018) supplements the GDPR. The Data Protection Ombudsman is a national supervisory authority that supervises compliance with data protection legislation. The office has approximately 45 specialists, including the Data Protection Ombudsman and two Deputy Data Protection Ombudsmen. For more information: https://tietosuoja.fi/en/home   and https://www.finlex.fi/en/laki/kaannokset/2018/en20181050.pdf

5. Protection of Property Rights

• Real Property

The Finnish legal system protects and enforces property rights and secured interests in property, both movable and real. Mortgages exist in Finland and can be applied to both owned and rented real estate. In Finland, real property formation, development, land consolidation, cadastral or boundary mapping, registration of real properties, ownership and legal rights, real property valuation, and taxation are all combined within one basic cadastral system (i.e. real estate register) maintained by the National Land Survey: https://www.maanmittauslaitos.fi/en/apartments-and-real-property  

Finland is not a contracting party to the 2001 Cape Town Convention on Mobile Equipment (CTC) and the Protocol on Matters Specific to Aircraft Equipment (Aircraft Protocol).

• Intellectual Property Rights

Finland is not included on USTR’s Special 301 Report or Notorious Markets List..

USTR’s 2022 Notorious Markets List mentions Finland for reportedly hosting a Flokinet server associated with infringing activity and reportedly hosting an FLVTO web server, a platform that allows the user to download music from YouTube and convert it to an mp3.

The Finnish legal system protects intellectual property rights (IPR), and Finland adheres to numerous international agreements. Finland ranked first among 129 countries in the Property Rights Alliance 2023 International Property Rights Index (IPRI), which concentrates on a country’s legal and political environment, physical property rights, and IPR: https://www.internationalpropertyrightsindex.org/  

IPR enforcement in Finland is based on EU Regulation 608/2013. For more information, see: https://taxation-customs.ec.europa.eu/customs-4/prohibitions-and-restrictions/counterfeit-piracy-and-other-ipr-violations_en  

IPR must be registered in Finland to be enforced under local laws, such as the Copyright Act, the Registered Designs Act, and the Patents Act. Patent rights in Finland are consistent with international standards, and a granted patent is valid for 20 years. The Finnish Patent and Registration Office (PRH) website contains unofficial translations in English of the Patents Act, Patents Decree, and Patent Regulation. For more information: https://www.prh.fi/en/index.html  

The Finnish Trademarks Act was enacted in May 2019 to implement the revised EU Trademark Directive. The act includes provisions concerning collective marks and control marks. It includes amendments to related legislation such as the Finnish Company Names Act, the Criminal Code, and relevant procedural acts. Trademark applicants or proprietors not domiciled in Finland must have a representative resident in the European Economic Area. Finland is a party to the Madrid Protocol.

Finnish Customs supervises counterfeit products that are imported to, exported from, and transited via Finland and other products that violate IPR. Custom officers have the authority to seize and destroy counterfeit goods. Customs has intensified the control of counterfeit goods by conducting a risk analysis of postal traffic. The long-term trend indicates a decline in counterfeit goods detected in large-volume shipments: https://www.vero.fi/en/grey-economy-crime/prevention/preventionstatistics/  

Finland is a member of the World International Property Organization (WIPO) and party to a several other treaties, including the Berne Convention, the Paris Convention, the Patent Cooperation Treaty, the WIPO Copyright Treaty, the WIPO Performances and Phonograms Treaty, and the International Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organizations (Rome Convention). Finland is a party to the WTO’s Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).

For additional information about national laws and points of contact at local IP offices, please see WIPO’s country profiles at: https://www.wipo.int/directory/en/details.jsp?country_code=FI  

6. Financial Sector

• Capital Markets and Portfolio Investment

Finland is open to foreign portfolio investment and has an effective regulatory system. Credit is allocated on market terms and made available to foreign investors non-discriminately, and private sector companies have access to various credit instruments. Legal, regulatory, and accounting systems are transparent and consistent with international norms.

The Helsinki Stock Exchange is part of OMX, referred to as NASDAQ OMX Helsinki (OMXH). NASDAQ OMX Helsinki is part of the NASDAQ OMX Nordic division, together with the Stockholm, Copenhagen, Iceland, and Baltic (Tallinn, Riga, and Vilnius) stock exchanges.

Finland accepts the obligations under IMF Article VIII, Sections 2(a), 3, and 4 of the IMF Articles of Agreement. It maintains an exchange system free of restrictions on payments and transfers for current international transactions, except for those measures imposed for security reasons by the Regulations of the Council of the European Union.

• Money and Banking System

Finland has a resilient, digitally advanced, and well-capitalized banking sector characterized by cooperative banking and pan-Nordic groups. Banking is open to foreign competition, and the industry is one of Europe’s most prominent relative to the size of the national economy. Four significant banks (OP Financial Group, Nordea, Municipality Finance, and Danske Bank) dominate the banking sector, holding 80 percent of the market. The Bank of Finland is the national monetary authority and the central bank of Finland: https://www.suomenpankki.fi/en  

The Financial Supervisory Authority (FIN-FSA) supervises Finland’s financial and insurance sectors, including banks, insurance and pension companies, other companies operating in the insurance sector, investment firms, fund management companies, and the Helsinki Stock Exchange: https://www.finanssivalvonta.fi/en/  

In 2023, the financial sector’s capital position remained strong despite the gloomier economic environment. Finland’s banks met the requirements for liquid bank holdings under Basel III standards, which compare a bank’s assets with its capital to see if the bank would withstand a financial crisis. The sector’s operating environment weakened as the Finnish economy slid into a recession. Despite increased credit risks in corporate and household loans, the Finnish banking sector’s non-performing loans and loan losses were still among the lowest in Europe.

Foreign companies and nationals can, in principle, open bank accounts in the same manner as Finnish nationals. However, banks must identify customers, and this may prove more difficult for foreign nationals. In addition to personal and address data, the bank often needs to know the person’s identifier code (i.e. social security number). Several banks require a work permit, a certificate of studies, a letter of recommendation from a trustworthy bank, and details regarding the nature of transactions to be made with the account. All authorized deposit-taking banks are members of the Deposit Guarantee Fund, which guarantees customers’ deposits to a maximum of EUR 100,000 ($109,000) per depositor.

The Act on Virtual Currency Providers (572/2019) entered into force in May 2019. FIN-FSA is the registration authority for virtual currency providers. The primary objective of the act is to introduce virtual currency providers into the scope of anti-money laundering regulation. Only virtual currency providers meeting statutory requirements can carry on their activities in Finland, and only a FIN-FSA registered virtual currency provider may market its currency and services in Finland. The Finnish Tax Administration released guidelines on the taxation of cryptocurrency, available here: https://www.vero.fi/en/detailed-guidance/guidance/48411/taxation-of-virtual-currencies3/  

Foreign Exchange and Remittances

• Foreign Exchange

Finland adopted the Euro as its official currency in January 1999. Finland maintains an exchange system free of restrictions on making payments and transfers for international transactions, except for those measures imposed for security reasons. Currency transfers are protected by Article VII of the IMF Articles of Agreement: http://www.imf.org/External/Pubs/FT/AA/index.htm#art7  

• Remittance Policies

There are no legal obstacles to direct foreign investment in Finnish securities or exchange controls regarding payments into and out of Finland. Banks must identify their customers and report suspected cases of money laundering or the financing of terrorism. Banks and credit institutions must also report single payments or transfers of EUR 15,000 ($16,000) or more. If the origin of funds is suspicious, banks must immediately inform the National Bureau of Investigation. There are no restrictions on current transfers or repatriation of profits. Residents and non-residents may hold foreign exchange accounts. There is no limit on dividend distributions as long as they correspond to a company’s official earnings records. Travelers carrying more than EUR 10,000 ($11,000) must make a declaration upon entering or leaving the EU.

• Sovereign Wealth Funds

Solidium is a holding company fully owned by the Finnish government. It is a minority owner of nationally listed companies operating in clusters significant to the national economy, such as the forest industry. Solidium’s ownership stake of these companies is usually over 10 percent but rarely exceeds 20 percent. According to Solidium’s investment strategy, future investments may include companies that seek to implement green transition strategies or solutions related to the platform economy. Solidium aims to strengthen and stabilize Finnish ownership in the companies and increase the value of their holdings. In 2023, Solidium paid the Finnish government approximately $374 million as a dividend. For more information: https://www.solidium.fi/en/  

7. State-Owned Enterprises

The government of Finland owns directly or through Solidium the shares of 15 listed companies on the Helsinki stock exchange. In general, State-Owned Enterprises (SOEs) are open to competition except where they have a monopoly position, namely in alcohol retail and gambling. SOEs in Finland operate in chemicals, petrochemicals, plastics, and composites; energy and mining; environmental technologies; food processing and packaging; industrial equipment and supplies; marine technology; media and entertainment; metal manufacturing and products; services; and travel. The market value of all state direct shareholdings was approximately $24 billion as of March 2024. For more information, see: https://vnk.fi/en/government-ownership-steering/companies   https://vnk.fi/en/government-ownership-steering/value-of-state-holdings  

The Ownership Steering Department in the Prime Minister’s Office has ownership steering responsibility for Finnish SOEs, and is responsible for Solidium. The State Shareholdings and Ownership Steering Act (1368/2007) and the Act Amending the State Shareholdings and Ownership Steering Act (1315/2016) regulate the administration of state-owned companies. For more information, see: https://www.finlex.fi/en/laki/kaannokset/2007/en20071368   https://www.finlex.fi/fi/laki/alkup/2016/20161315  

Finnish state ownership steering complies with the OECD Principles of Corporate Governance. The Parliamentary Advisory Council in the Prime Minister’s Office serves in an advisory capacity regarding SOE policy; it does not make recommendations regarding any business in which the individual companies are engaged. The government has proposed changing its ownership levels in several companies and increasing the number of companies the Prime Minister’s Office steers. Parliament decides from which companies the state may relinquish its sole ownership (100 percent), its control of ownership (50.1 percent), or minority ownership (33.4 percent of votes). For more information: https://vnk.fi/en/government-ownership-steering/ownership-policy  

Finland opened domestic rail freight to competition in early 2007, and in July 2016, Fenniarail Oy, the first private rail operator on the Finnish market, began operations. In November 2020, Estonian-based Operail, which works in Finland’s rail freight operations, started a subsidiary in Finland as Operail Finland. In 2023, Operail Finland’s share was sold to Nurjminen Logistics. Passenger rail transport services will be opened to competition in stages, starting with local rail services in southern Finland. Based on an agreement between Finnish State Railways (VR) and the Ministry of Transport and Communications, VR has exclusive rights to provide passenger transport rail services in Finland until the end of 2030. For more information, see: https://lvm.fi/en/-/nine-year-contract-between-the-ministry-of-transport-and-communications-and-vr-for-purchasing-rail-transport-services-1643706  

The exclusive right applies to all passenger rail transport in Finland, excluding the commuter train transport services provided by the Helsinki Regional Transport Agency (HSL). In February 2020, HSL put its commuter train transport services out for tender; VR won the tender and will continue to provide passenger rail service for the next ten years. The value of southern Finland commuter train services is $67 million per year, with 200,000 daily passengers.

• Privatization Program

Parliament makes all decisions identifying the companies in which the state may relinquish sole ownership (100 percent of the votes) or control (minimum of 50.1 percent of the votes), while the government decides on the actual sale. The state has privatized companies by selling shares to Finnish and foreign institutional investors through both public offerings and directly to employees. Sales of the state’s direct holdings totaled $2.89 billion (2007 – 2018).

The government issued a new resolution on state-ownership policy in April 2020, seeking to maximize overall social and financial benefits; use corporate assets to promote domestic ownership; and diversify the economy, create innovations, and support sustainable structural change. For more information, visit https://vnk.fi/en/government-ownership-steering  

8. Responsible Business Conduct

Finland has long traditions in compliance with labor, occupational safety, health, and environmental legislation. Finnish companies recognize that their due diligence to comply with laws and regulations is central to responsible business conduct and corporate responsibility. The Finnish Business & Society (FIBS) is the largest corporate responsibility network in the Nordic countries and has more than 300 members: https://www.fibsry.fi/briefly-in-english/  

Finland is committed to implementing the OECD Guidelines for Multinational Enterprises, the ILO Declaration on Fundamental Principles and Rights at Work, and the ILO’s tripartite declaration of principles concerning multinational enterprises and social policy. The government promotes Corporate Social Responsibility (CSR) through the Ministry of Employment and the Economy CSR Guidelines. or more information: https://tem.fi/en/key-guidelines-on-csr  

Finland ranks first in the UN’s Sustainable Development Report, which compares 193 UN member states based on 17 sustainability goals. Finland launched a new sustainable development strategy built around the UN’s Sustainable Development Goals (SDG). More information is available here: https://dashboards.sdgindex.org/profiles/finland  

The Directive of the European Parliament and the Council on the disclosure of non-financial information has been implemented via amendments to the Finnish Accounting Act, requiring affected organizations to report on their CSR. The obligation to report non-financial information and corporate responsibility reports applies to significant public interest entities, i.e., listed companies, credit institutions, and insurance companies with more than 500 employees. In addition, turnover must be greater than $45.4 million, or the balance sheet must exceed more than $22.7 million. For more information: https://tem.fi/en/accounting  

Currently, there are no other mandatory human rights-related due diligence requirements apart from those set out in the Act on the Placing on the Market of Conflict Minerals and Their Ores (1196/2020) (the Conflict Minerals Act), which improved the transparency of supply chains and brought Finland’s conflict minerals regime into line with EU regulations. Businesses importing conflict minerals (tin, tantalum, tungsten, and gold) from conflict-affected areas into the EU that exceed certain volume thresholds are subject to due diligence requirements. The Finnish Safety and Chemicals Agency and Finnish Customs are competent authorities in implementing the act. For more information: https://tukes.fi/en/industry/conflict-minerals  

Finland has joined the Extractive Industries Transparency Initiative (EITI), which supports improved governance in resource-rich countries. Finland is not a member of the Voluntary Principles on Security and Human Rights Initiative. The Human Rights Center (HRC), administratively linked to the Office of the Parliamentary Ombudsman, encourages foreign and local enterprises to follow the most important international norms: https://www.humanrightscentre.fi/  

Finland participates in the Montreux Document on pertinent international legal obligations and good practices for states related to private military and security company operations during armed conflict. However, Finland is not a member of ICoCA, the International Code of Conduct for Private Security Service Providers’ Association.

• Additional Resources

Department of State

• Country Reports on Human Rights Practices ;
• Trafficking in Persons Report ;
• Guidance on Implementing the “UN Guiding Principles” for Transactions Linked to Foreign Government End-Users for Products or Services with Surveillance Capabilities
• U.S. National Contact Point for the OECD Guidelines for Multinational Enterprises ; and;
• Xinjiang Supply Chain Business Advisory 

Department of the Treasury

• OFAC Recent Actions

Department of Labor

• Findings on the Worst Forms of Child Labor Report ;
• List of Goods Produced by Child Labor or Forced Labor ;
• Sweat & Toil: Child Labor, Forced Labor, and Human Trafficking Around the World and;
• Comply Chain .

Finland participates in international climate negotiations as an EU member state. It is firmly committed to the EU’s joint reduction target under the United Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement. The core elements of EU climate policy are the EU Emissions Trading System (EU ETS); national targets for sectors excluded from EU ETS (effort sharing); and obligations concerning the Land Use, Land-Use Change, and Forestry sector (LULUCF). The EU ETS covers more than 40 percent of the total greenhouse gas emissions in the EU and just under half of the greenhouse gas emissions in Finland. For more information, see: https://tem.fi/en/emissions-trading  

The National Climate Act is another fundamental pillar of Finland’s climate policy. The act aims to reduce greenhouse gas emissions for 2030 (-60 percent), 2040 (-80 percent), and 2050 (-95 percent) compared to 1990 levels. According to the act, Finland must be carbon neutral by 2035. For more information, see: https://ym.fi/en/climate  

Finland reduces carbon emissions by increasing clean energy production, investing in the hydro economy, and augmenting the carbon sequestration of the industrial and land use sectors. Renewables have replaced imported fossil fuels in domestic electricity production. In 2023, the share of carbon-free electricity production was 94 percent. The primary energy sources of electricity production were nuclear power at 41 percent, hydropower at 18.8 percent, wind at 18.1 percent, and biomass at 13.3 percent, while the share of imported electricity was 2.2 percent.

In 2024, the government reserved EUR 14.1 million ($15.3 million) in national energy aid to promote the production of renewable energy, renewable hydrogen and hydrogen-refined fuels, energy saving or more efficient energy production or use, utilization of waste heat, and the transition towards a low-carbon energy system. The government will prioritize investment projects promoting new technology, its commercialization, and the capacity of the electricity system. In addition, REPowerEU aid supports investments in new energy technology and the production and storage of renewable hydrogen, funded by the EU Recovery and Resilience Facility. REPowerEU aims to reduce dependence on Russian fossil fuels by fast forwarding the clean transition and joining forces to achieve a more resilient energy system and a true Energy Union. For more information, see: https://tem.fi/en/-/ministry-of-economic-affairs-and-employment-sets-energy-aid-priorities-for-2024  

The Finnish Climate Fund is a state-owned company that focuses on combating climate change, boosting the low-carbon industry, and promoting digitalization. Companies targeted by the fund typically receive the funding in installments over several years when meeting conditions specified in the financing agreements. For more information, see: https://www.ilmastorahasto.fi/en/  

The National Forest Strategy contains the critical outlines of Finland’s forest policy. For more information, see: https://mmm.fi/en/forests/strategies-and-programmes  

Finland also aims to increase ecological public procurement. Finland’s first National Public Procurement Strategy, launched in September 2020, focuses on developing strategic management and promoting procurement expertise. For more information, see: https://vm.fi/en/-/national-public-procurement-strategy-identifies-concrete-ways-in-which-public-procurement-can-help-achieve-wider-goals-in-society  

On MIT’s Green Future Index 2023, Finland ranked second among 76 leading countries and territories. The index measures progress and commitment towards building a low-carbon future. According to the index, Finland fosters an extensive green tech R&D ecosystem with leading-edge renewables and food tech.

9. Corruption

Corruption in Finland is covered by the criminal code and penalties range from fines to imprisonment of up to four years. The bribery offenses criminalized in the criminal code are electoral bribery, bribery violation, the giving of bribes, the acceptance of a bribe, providing bribes to a Member of Parliament, accepting a bribe as a Member of Parliament, giving of bribes in a business transaction, and accepting a bribe in a business transaction. For more information, see: https://korruptiontorjunta.fi/en/national-legislation  

Finland does not have an authority specifically charged to prevent corruption. Instead, several authorities and agencies contribute to anti-corruption work. The Ministry of Justice coordinates anti-corruption matters, but Finland’s EU anti-corruption contact is the Ministry of the Interior. The National Bureau of Investigation also monitors corruption, while the tax administration has guidelines obliging tax officials to report suspected offenses, including foreign bribery, and the Ministry of Finance has guidelines on hospitality, benefits, and gifts. The Ministry of Justice describes its anti-corruption efforts at https://oikeusministerio.fi/en/anti-corruption-activities.

The EU Directive on non-financial reporting supports action against corruption. Implementation of the EU Directive in Finland led to the amendment of the Accounting Act in December 2016. Current legislation imposes obligations on large companies to report on anti-bribery and anti-corruption action policies.

The Ministry of Justice is responsible for monitoring and developing the Transparency Register legislation. The Transparency Register Guide contains a general description, key concepts, related procedures, and published actors. The guide answers questions such as who is subject to the obligation to provide information to the Transparency Register, what kind of information must be provided to the register and when, and how the Transparency Register is monitored. The guide is available in Finnish, Swedish, and English: https://julkaisut.valtioneuvosto.fi/handle/10024/164813  

In 2020, the Ministry of Employment and Economy released an anti-corruption guide intended for companies, especially SMEs, to provide them with guidance and support for promoting sound business practices and corruption-free business relations both in Finland and abroad. Large companies must publish corporate responsibility reports. These reports must briefly describe their business model, explain the risks related to their policies, and describe how they manage these risks. The reporting obligation applies to public interest entities with over 500 employees and a turnover of over 40 million euros ($43 million) or an annual balance sheet of over 20 million euros ($22 million). Smaller companies can report voluntarily. The report can be part of yearly reports or reports on corporate social responsibility. For more information: https://tem.fi/en/-/guide-offers-smes-practical-anti-corruption-tips  

Finland has ratified the following anti-corruption conventions: the Convention on Laundering, Search, Seizure, and Confiscation of the Proceeds from Crime; the Council of Europe Civil Law Convention on Corruption; the Criminal Law Convention on Corruption; and the UN Convention against Transnational Organized Crime. Finland has become the 32nd country to sign the United Nations Convention against Corruption (UNCAC) Coalition’s Transparency Pledge, voluntarily committing to a high level of transparency and civil society inclusion in the second cycle of the UNCAC implementation review. Finland is a member of the European Partners against Corruption (EPAC).

Finland is a signatory to the OECD Convention on Anti-Bribery. In October 2020, the OECD working group on bribery said it recognizes Finland’s commitment to combat corruption but is concerned about lack of foreign bribery enforcement. For more information: https://www.oecd.org/daf/anti-bribery/finland-oecdanti-briberyconvention.htm  

• Resources to Report Corruption

Jaakko Christensen Head of Financial Crime Division National Board of Investigation P.O. Box 285, 01310 Vantaa, Finland [email protected]

Jaakko Korhonen Chairperson Transparency Finland [email protected]

• 10. Political and Security Environment

Finland acceded to NATO in April 2023 and signed a bilateral Defense Cooperation Agreement with the United States in December 2023. The Finnish Security and Intelligence Service (SUPO) estimated in the National Security Overview 2023, the most current version released, that Russia’s actions remain the greatest threat to Finland’s national security, with Russia treating Finland as an unfriendly state, and as a target for espionage and malign influence activities. According to SUPO, NATO membership protects Finland from Russia’s measures. SUPO assesses Russia’s use of irregular migration as a way for Russia to indicate its dissatisfaction with Finland’s NATO membership and generally sow the consequences of actions Russia perceives as unfriendly.

SUOP assesses that no significant changes have occurred in the threat of terrorism faced by Finland. The threat of terrorism in Finland remains at level 2, ‘Elevated’, on the four-tier scale. There are probably far-right and radical Islamist operators in Finland with the desire and capacity to carry out violent attacks. Supporters of these ideologies pose the most likely threat, either as individuals or in small groups. Attacks remain unlikely in the short term. .For more information, see: https://supo.fi/en/terrorism-overview  

While instances of political violence in Finland are rare, extremism exists, and anti-immigration and anti-Semitic incidents do occur. The Central Council of Finnish Jewish Communities has noted a rise in anti-Semitism in Finland over the past two decades, with reported instances likely underestimating the prevalence of such cases. Targeted acts of vandalism against the synagogue and property of the Israeli Embassy and random acts of vandalism featuring anti-Semitic language and images have become more common. Hate groups and far-right political parties use anti-Semitic language and Nazi iconography in both online publications and public events. SUPO considers Racially or Ethnically Motivated Violent Extremism (REMVE) online platforms a significant source of radicalization in Finland, and Jewish and Muslim community leaders have identified these websites as contributors to increases in public anti-Semitism.

In 2022, The Ministry of the Interior published the National Counterterrorism Strategy 2022–2025 to guide national and international counterterrorism activities. Finland combats terrorism, violent radicalization, and extremism to safeguard national interests and foster the safety and security of the country and its population. The Ministry of the Interior monitors the achievement of objectives and will prepare an interim report in 2024. For more information, see: https://intermin.fi/en/publication?pubid=URN:ISBN:978-952-324-578-5  

• 11. Labor Policies and Practices

According to Statistics Finland, the population was approximately 5.6 million, and the average number of employed persons aged 15 to 74 was 2,628,000 in 2023. The number of unemployed persons was 204,000. Men’s unemployment rate was 7.9 percent, while women’s unemployment rate was 6.5 percent. In January 2024, the number of unfilled vacancies was 133,400. The working-age population will decrease in the years to come due to an increasing retirement rate caused by Finland’s aging population. At the same time, the number of immigrants is growing, and people are working to a later age in life. In Finland, most job vacancies advertised are in the social healthcare services sector, the construction industry, and the service and retail sectors.

Finland has a long tradition of trade unions. The country has a 60 percent unionization rate, and approximately 90 percent of employees have participated in the collective bargaining system. Extensive tripartite cooperation between the government, employers’ groups, and trade unions characterizes the labor market system in Finland. Trade unions and employers’ associations may make collective agreements, and the ministry decides on the agreements’ validity, determining minimum wages, working hours, and working conditions. The Ministry of Employment and the Economy is responsible for drafting labor legislation, and the Ministry of Social Affairs and Health is responsible for enforcing labor laws and regulations via the Occupational Safety and Health (OSH) authorities of the OSH Divisions at the Regional State Administrative Agencies, which operate under the Ministry of Social Affairs and Health.

To increase the labor market’s flexibility, the government of Prime Minister Petteri Orpo aims to reform the labor market legislation in 2024. As part of the proposed reforms, the government intends to increase local bargaining, which refers to workplace-level agreements on working hours, annual holidays, or wages; tie all sectors’ wage increases to export industry levels; restrict the right to political strikes, including limiting political strikes to 24 hours; and cut social welfare and benefits programs, including unemployment benefits. The government’s proposed labor reforms launched a wave of political strikes in Finland.

In the March 2024 IMF Article IV consultation with Finland, the IMF commended the government’s efforts to boost employment through social benefit reforms, greater flexibility in the labor market, and lowering the labor tax wedge. According to the IMF, the government should establish robust systems to monitor the impact of these reforms on employment closely. Additionally, government policies and procedures should aim to improve higher education, lower skill mismatches, and more effectively attract and integrate international talent.

Finland adheres to most ILO conventions; and enforcement of worker rights is effective. Freedom of association and collective bargaining are guaranteed by law, providing the right to form and join independent unions, conduct legal strikes, and bargain collectively. The law prohibits anti-union discrimination and any obstruction of these rights. The National Conciliator under the Ministry of Employment and the Economy assists negotiating partners with labor disputes. The arbitration system is based on the Act on Mediation in Labor Disputes, and the Labor Court is the highest body for settlement. The ILO’s Finland Country profile can be found here: http://www.ilo.org/dyn/normlex/en/f?p=1000:11110:0::NO:11110:P11110_COUNTRY_ID:102625  

• 12. U.S. International Development Finance Corporation (DFC), and Other Investment Insurance or Development Finance Programs

The U.S. International Development Finance Corporation, DFC, does not operate in Finland.

• 13. Foreign Direct Investment Statistics

* Source for Host Country Data: Statistics Finland

• 14. Contact for More Information

[email protected]  

On This Page

U.s. department of state, the lessons of 1989: freedom and our future.

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• Corporate information

Natural England Action Plan 2024 to 2025

Published 29 July 2024

Applies to England

© Crown copyright 2024

This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: [email protected] .

Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.

This publication is available at https://www.gov.uk/government/publications/natural-england-action-plan-2024-to-2025/natural-england-action-plan-2024-to-2025

1. Foreword

England in 2024, in common with the rest of the world, is facing growing peril from the twin crises of climate change and wildlife depletion. At risk if we do not act with sufficient urgency are clean water and air, food security, carbon storage, flood and drought reduction, and a thriving wildlife.

Nations at COP 28 in Dubai underlined the fundamental link between the 2 emergencies, as well as the vital importance of protecting and restoring nature for effective climate action. Governments across the world are increasingly recognising that concerted action now can have a positive impact for the planet and its inhabitants, and at a relatively cheap price compared with stalling for another decade or so when the cost of action – and the price of failure – will be so much greater.

It is crucial that the UK continues to be a leading light on the international stage in moving to a high nature, low carbon society. For that to happen, we all must be committed to reaching the Environmental Improvement Plan ( EIP ) apex goal of halting species decline by 2030, while protecting 30 per cent of our land and sea for nature. The deadline is looming, and we know more needs to be done to get us onto the right trajectory for success.

As the organisation at the forefront of work towards the EIP ’s apex target, Natural England has produced an Action Plan for 2024 to 2025 that is geared towards delivering – and enabling others to deliver with us. We know that we cannot and should not do this alone. That is why a key part of our action plan is to strengthen our current partnerships and build new ones.

Priority will be given to supporting local authorities to deliver Local Nature Recovery Strategies ( LNRS ). We will enable local communities, including farmers, to identify and shape nature recovery best suited to their area and the vital species within them, helping a thriving Nature Recovery Network ( NRN ) take shape across the country and increasing people’s access to thriving nature and the health and wellbeing benefits it brings .

Hard evidence and experience show that we need to do more to support the sites already protected for their ecological importance, to enable them to function as the core of the NRN . Increased monitoring and development and implementation of recovery plans for these sites will be at the heart of what we do. This will also require more proactive engagement with farmers and land managers so that achieving the most impact for nature goes hand in hand with supporting those who rely on it to produce food sustainably.

If we, at all levels of society, can combine our energies and our ambitions effectively the opportunities are enormous. Over the next 12 months we look forward to working hard with our partners to make this year one of significant advances for nature recovery in this country.

Tony Juniper CBE

2. Introduction

Our 2024 to 2025 Action Plan sets out how we will deliver against the statutory targets for nature through building partnerships for nature’s recovery . This remains at the heart of everything we do – enabling a healthy and resilient environment that enables sustainable economic growth and supports health and wellbeing.

Through the new powers and duties from the Environment Act, Agriculture Act and Fisheries Act, we have the foundation for halting and then reversing the decline in nature. We want to maximise our impact by working in partnership and at scale, both on land and at sea, in towns and in the countryside, prioritising the places where we can achieve the most.

We will focus on high opportunity / high risk casework and look to find nature-based solutions to avoid and mitigate environmental harm.

Science remains at the core of our work, including our contribution to the Natural Capital and Ecosystem Assessment ( NCEA ) programme, as well as ramping up again monitoring of Sites of Special Scientific Interest ( SSSI ) and Marine Protected Areas ( MPAs ), using new technology such as soundscapes  We will share our data and knowledge with others, for example the new Protected Landscapes Partnership to support their contribution to the 30x30 goal .

Engaging the whole of society with nature is an ever more important goal, from our own National Nature Reserves ( NNRs ) to a new programme of work with NHS England, as well as our work to complete the King Charles III England Coast Path ( KCIII ECP ).

The statutory targets to reverse biodiversity decline, meet net-zero, address water and air quality, and establish more trees and woods continue to be central. This plan sets out the annual targets we will report against this year as part of the pathway to those long-term goals.

We know we cannot achieve these targets by working alone, and we will continue to engage with farmers, developers, local government, environmental Non-Governmental Organisations ( eNGOs ) and others.  Delivery of the LNRS , led by local authorities but with close involvement of local organisations and partners, will be a critical milestone. We will also be making the most of new financial tools, such as Biodiversity Net Gain ( BNG ) and the Environmental Land Management Scheme ( ELMS ).

The skills of our people are vital to success. Our budget, the last in the current spending review, is more or less stable, but increased costs mean our team will shrink in a number of areas. Therefore, we are investing even more in training, technology and business process reform to enable our people to work to the highest standards.

We look forward to working with you again in 2024 to 2025.

Marian Spain

Chief Executive

3. How we work

3.1 organisational context.

Natural England is the government’s statutory adviser for the natural environment. We are a Non-Departmental Public Body ( NDPB ) and as part of the Department for Environment, Food and Rural Affairs (Defra) group the work that we do contributes to the Defra Outcome Framework. Our mission is building partnerships for nature’s recovery. This reflects the need for us to work with and through a wide range of people to undertake the rapid action to rebuild sustainable ecosystems and to protect and restore habitats, species and landscapes to help nature thrive and for everybody to enjoy. Our mission is set within the context of the current EIP which sets out the UK’s commitment to environmental stewardship and global biodiversity conservation.

Embedding our mission with stakeholders and staff is fundamental to ensuring that everything Natural England does contributes to the Defra Outcome Framework and in turn the EIP targets and commitments.

3.2 Our portfolios

Natural England organises the delivery of its work through 6 portfolios:

Resilient landscapes and seas

Create thriving, resilient, functioning landscapes and seas rich in plants, wildlife and character that provide wide ranging benefits for nature, climate and people.

Connecting people with nature

Work to tackle the barriers to enjoyment, engagement, and connection with the natural environment, and access to green and blue spaces in a way that supports socio-economic and health benefits for local communities.

Greener farming and fisheries

Sustainable farming and fisheries rely on a healthy natural environment. Food production and supply depends on healthy fish stocks, soils, water, air and natural processes. Addressing the causes of climate change and environmental degradation is now paramount; how we manage our land and seas is a major factor.

Sustainable development

Leverage and add value to the planning and licensing systems to get the greatest possible outcomes for nature, not just mitigating the impacts but actively recovering nature across all our work, playing a part in restoration of our natural environment while delivering the infrastructure that England needs.

Science and evidence

Realise our ambition for Natural England to be an evidence-led organisation. To be recognised, respected and trusted for our expertise and the provision and use of evidence-based advice on the natural environment locally and nationally.

Managing the organisation

Ensure Natural England is a values-led organisation, delivering excellent service standards to partners, organisations and communities engaged in achieving nature’s recovery.

The portfolios are designed to work together and be more than the sum of their parts. They bring together the power of statutory tools, with expert advice and guidance, to deliver results on the ground.

4. Our priorities for the year ahead

2024 to 2025 is the final year of the 2021 Spending Review ( SR21 ) settlement. This year we have prioritised our work so it is clear where we will focus our efforts, and where we need to take action to reduce our efforts. In making these choices, and to maximise our impact, we have applied the following principles:

• the need to deliver what is expected of us from Parliament – we have a central role in the delivery of statutory targets for nature defined in the Environment Act (which underpin the current EIP ) and a track record which we can be proud of
• our ambition remains to deliver nature recovery on land, in both the countryside and town and cities, and at sea at scale to create resilient adaptive ecosystems
• we will focus our efforts in priority places, where the opportunity for change is greatest, or where the risks to nature most need to be mitigated
• the need to work with and through our partners and customers, supporting, for example, farm businesses to contribute to nature recovery and ensuring that development creates green spaces
• to continually improve Natural England for our people and the people we work with this means focussing on reforming the systems and processes we operate, how we make decisions, and how we look after and develop our people

4.1 Our key goals for 2024 to 2025

Improve the condition of the core nature recovery network – our protected sites on land and sea.

We need to complete our programme of condition assessments, develop recovery plans and take the actions needed to put these sites on the path to recovery.

Deliver Local Nature Recovery Strategies ( LNRS ) and work with partners to develop plans and projects to deliver LNRS ambitions for people and nature

We need to finalise 48 LNRS with partners. Our work on priority places and Nature Recovery Projects will help turn ambitious LNRS into action.

Targeted use of regulation and advice on land and sea to create new habitat and improve protected sites condition

This is an area where we are looking to achieve efficiencies this year and we will focus most of our effort on high risk/high opportunity areas. There will be further reform of our planning, licensing and protected sites casework to ensure we do this in way that works for customers, our people and for nature.

Greening development and infrastructure

We need to maximise the opportunity in the new strategic schemes we have developed, such as Biodiversity Net Gain ( BNG ), Nutrient Mitigation Scheme, offshore wind and charging for Nationally Significant Infrastructure Projects ( NSIPs ).

Enable more people to connect with nature

We need to continue implementing green infrastructure strategies and mainstreaming Green Social Prescribing, whilst working towards completion of the King Charles III England Coast Path and the Coast to Coast National Trail and working with the Protected Landscapes Partnership so that everybody can enjoy National Parks, National Landscapes and National Trails.

Development and targeted delivery of farm advice

We need to continue to develop and roll out the Landscape Recovery scheme and target engagement with Countryside Stewardship Higher Tier agreements and putting in place a central triage to process the volume of agreements we might see this year. Joining up our farm advice services, including Catchment Sensitive Farming ( CSF ), on the places and schemes which contribute most to nature recovery has an important role to play.

Targeted monitoring to underpin delivery

Our science and monitoring work underpins our success. Our focus is to deliver the Natural Capital and Ecosystem Assessment ( NCEA ) programme, our People and Nature Survey, our Sites of Special Scientific Interest ( SSSI ) monitoring programme and the State of Natural Capital Report.

Develop our capability in Natural England and focus on people’s development and wellbeing

We continue to invest in our organisation and our people. We need to modernise our systems to equip us for the future, and the focus on health, safety and wellbeing, and increasing the diversity of our people remains a priority.

5. Our long-term goals and 2024 to 2025 activities

5.1 key performance indicator (kpi) a, our long-term goal.

We restore and enhance the health of our ecosystems (across land and sea) and the natural beauty of our landscapes by increasing the area and improving the character, quality, resilience & connectivity of wildlife-rich places.

Measures of success ( MoS ) and 2024 to 2025 progress metrics – how we will measure progress towards the long-term goal

MoS A1 - Increases in the area of land and sea where nature is recovering.  

• the area of land and sea that is protected will increase by 900ha
• 21% of Sites of special scientific interest ( SSSI ) features will have actions underway and on track to achieve favourable condition
• complete 80 Marine Protected Area ( MPA ) condition assessments
• triage and manage input to 800 new and expiring agreements for Countryside Stewardship Higher Tier

MoS A2 - Increase carbon secured in natural and semi-natural habitats through our advice, grants and projects.

• 3.2 mega tonnes of carbon secured through 27,000ha of peat restoration under the Nature for Climate Peatland Grant Scheme
• provide timely advice on embedding ‘right tree right place’ on 10,000 ha to increase carbon secured through woodland creation and support biodiversity targets

MoS A3 - Positive improvement to landscape / waterscape characteristics.

• lead the apportionment of targets and complete the collation/distribution of data to inform the Protected Landscapes Targets & Outcomes Framework
• update the published interim (baseline 2015 to 2019) reporting on Environment Improvement Plan ( EIP ) Outcome Indicator Framework G1: ‘Changes to landscape and waterscape character’

Our priority actions for 2024 to 2025

• develop and implement SSSI Delivery Plans, getting actions underway and on track for favourable condition
• progress the actions needed to improve the condition of MPAs , working with partners to implement byelaws and other measures to optimise the network for nature’s recovery
• increase the area of land and sea protected and effectively managed for nature recovery, contributing to the 30x30 commitment - this includes expanding the King’s series of National Nature Reserves ( NNRs ) and implementing the SSSI and Areas of Outstanding National Beauty ( AONB ) designations pipeline and supporting schemes to deliver through Landscape Recovery
• target work to improve the condition NNRs where this will contribute to the SSSI EIP target of getting actions underway and on track
• we will complete SSSI climate change risk assessments and produce adaptive delivery plans for priority sites
• deliver the Landscape Designations Programme, including proposals for a new National Park and monitor and report against the Protected Landscape Outcomes Framework
• deliver high risk/high opportunity planning casework and local statutory plans across land and sea – we will achieve efficiencies through planning casework reforms, including shifting delivery of medium risk planning casework to a central hub
• implement and deliver Nationally Significant Infrastructure Projects ( NSIPs ) cost recovery early in 2024 to 2025 – we will focus our efforts on reducing consenting times for energy NSIPs development in accordance with Government’s NSIPs pipeline
• embed and continuously improve our new Biodiversity Net Gain ( BNG ) services to deliver nature positive development – this includes expansion to include new statutory requirements for small development sites, allowing increasing amounts of net gain land to be registered on a public portal, and making clear where it has been allocated to development
• target engagement with Countryside Stewardship Higher Tier ‘type’ agreements, putting in place a central triage system, where we can have the most impact on and around our largest complexes of SSSIs
• deliver the Peatland Capital Grant Scheme and provide advice on tree planting to support woodland creation targets

5.2 Key performance indicator (KPI) B

We increase the abundance of species that are indicative of the wider health of the natural environment and reduce the number under threat of extinction.

MoS B1 - The number of species benefiting from reduced extinction risk.  

• 400 rare and threatened species benefit from Natural England’s species and nature recovery projects (including conservation translocations)

MoS B2 - Increase abundance of species that are indicative of the wider health of the natural environment.

• increase the proportion of licences issued that benefit species conservation by 5%support the creation or restoration of 3,200ha of a range of wildlife-rich habitat outside of protected sites via our advice and funding, ultimately contributing to species abundance
• deliver the second year of the Species Recovery Action Plan to help achieve the species targets
• continue to build our understanding of the policies and actions required to halt the decline in species abundance, and engage, inform and influence those areas outside of Natural England’s control which have a key role to play (such as Environmental Land Management schemes ( ELMs ))
• programme management of the Species Recovery Programme ( SRP ) capital grant scheme and Memorandums of Agreement with partner organisations
• continue to lead on 2 major reintroductions projects: Hen Harrier (direct delivery) and Beaver (strategy/licensing)
• contribute to the implementation of the Defra-led GB Invasive Non-Native Species ( INNS ) Strategy, and support INNS projects via the SRP and other bespoke projects
• deliver, in partnership, actions from the English Seabird Conservation and Recovery Pathway
• progress licensing reforms, for example Bat Earned Recognition, to reduce human-wildlife conflict and deliver increases in abundance, via Species Conservation Strategies and to deliver efficiencies – we will shift to a focus on high risk/ high opportunity casework

5.3 Key performance indicator (KPI) C

We increase the number and representation of people engaged with nature and nature recovery in a way that supports socio-economic and health benefits for local communities.

MoS C1 - Percentage of population that have accessible greenspace within 15 minutes from home.

• maintain the proportion of people with access to green and blue space within 15 minutes from home at present level of 62%
• 20 new local authorities to have embedded the Green Infrastructure Framework in their policies

MoS C2 - Proportion of adults and children frequently connecting with nature.

• maintain an upward trend on a 3-year rolling average the proportion of adults in England using a green and natural space in the last 14 days at 64% (as measured against the People and Nature Survey) all Nature Recovery Projects are designed, delivered and monitored to ensure delivery of strategic partnerships and embed the recording of the number and representation of people connecting with nature as part of the project
• deliver the People and Nature Survey to understand attitudes towards the natural environment and its contributions to wellbeing
• increase the number of local authorities using the Green Infrastructure Framework
• embed Green Infrastructure Standards into the National Planning Policy Framework
• progress Nature Cities and Green Community Hubs, as mechanisms for green social prescribing, local partnerships, and community engagement
• integrate LNRS , other strategies and area team plans with NHS green plans and Infrastructure Plans being developed by Integrated Care Boards and community leaders
• deliver the National Trails maintenance grants including the Funding Formula Review
• establish Coast to Coast and King Charles III England Coast Path by the end of 2025/March 2025, respectively
• complete the Open Access Mapping Review methodology

5.4 Key performance indicator (KPI) D

We work with a wider range of local partners and diverse communities to create wildlife-rich, accessible, characterful places for people to live and work underpinning economic sustainability.

Measure of success ( MoS ) and 2024 to 2025 progress metrics – how we will measure progress towards the long-term goal

MoS D1 - Number of Local Nature Recovery Strategies ( LNRS ) setting out ambitious nature recovery priorities through collaborative engagement with a wide range of stakeholders.

• ensure preparation of 48 high quality LNRS

MoS D2 - Number/area of new or expanded nature recovery projects established where we deliver at scale.

• develop and deliver a pipeline of collaborative landscape scale delivery of at least 100 projects driven through Landscape Recovery, Nature Recovery Projects and through our priority places
• develop and test mechanisms to support the increase/flow of investment and funding into nature recovery projects
• implement the Nutrient Mitigation Scheme (NMS) to include generating at least 6,500 nutrient credits to enable new homes to be built
• complete 6 Diffuse Water Pollution Plans
• finalise 48 LNRS with partners – our work on priority places and Nature Recovery Projects will help turn ambitious LNRS into action
• align LNRS with other local spatial plans including local development plans, species recovery projects, NHS green plans, health/wellbeing, catchment-based water plans, net zero and local flood risk management strategies and area inclusion plans
• deliver the NMS whilst working with Defra and the Ministry of Housing, Communities & Local Government to develop and evolve the scheme and our advice on nutrient neutrality to enable more homes/more quickly and develop strategies that remove the need for nutrient neutrality advice
• continue to develop and roll out the Landscape Recovery scheme to fund ambitious landscape-scale projects through bespoke, long-term agreements
• focus our farm and land management advice efforts on the more ambitious schemes that deliver nature recovery actions and align with priorities identified in LNRS and climate change mitigation and adaptation
• join up our farm advice services, including Catchment Sensitive Farming, on the places and schemes which contribute most to nature recovery
• continue to align air and water quality work to priority places – deliver the Air Quality Action Plan and develop and contribute to the Defra Plan for Water
• accelerate marine infrastructure strategic solution development and deliver commitments under the British Energy Security Strategy
• promote and develop opportunities for the use of Green Finance to fund nature recovery projects e.g. the public-private partnership Projects for Nature

5.5 Key performance indicator (KPI) E

We are an evidence-led organisation, using evidence to inform our advice and leadership to drive positive changes in the natural environment.

MoS E1 - Expand and improve data and evidence available to support nature recovery.

• 40% of SSSI features have an up-to-date condition assessment with at least 650 new assessments completed
• complete a combined total of 1,000 landscape / vegetation and soil surveys in sample monads (a monad is a one-kilometre grid square) as part of the Natural Capital and Ecosystem Assessment ( NCEA ) programme

MoS E2 - Accessibility and use of our data and evidence increases to support nature recovery.

• increase Data Maturity Assessment scores from one to 2 to 2 to 3 on a 5-point scale
• deliver the NCEA programme which provides baseline data on location, quality and quantity of our natural capital assets
• progress our programme of SSSIs condition assessments
• work to demonstrate the public benefit that nature provides and embed nature in decision making nationally and locally, and enable investment in nature recovery, including assessing the impact of the State of Natural Capital Report
• deliver the Nature Returns Programme for nature and climate, which aims to test methods for creating and restoring natural habitats in ways that tackle the twin challenges of climate change and biodiversity loss
• make best available evidence available through better data capture, storage, and analysis with modernised digital systems to support this work
• deliver a programme of evaluation and knowledge synthesis to support delivery of nature recovery in priority places and refresh of our Science Evidence and Evaluation Strategy

5.6 Key performance indicator (KPI) F

We invest in the wellbeing, development, and diversity of our staff so that Natural England remains a great place to work.

Measure of success ( MoS ) and 2024 to 2025 progress Mmetrics – how we will measure progress towards the long-term goal

MoS F1 - Natural England is an engaging, safe and inclusive place to work.

• employee engagement index rises to 64% to exceed 2023 to 2024 benchmark
• investigate 95% of reported incidents within the required 10 working day period
• increase the percentage of staff declaring minority ethnicity to 5%

MoS F2 - Our staff have the right skills, knowledge, and capacity to deliver their work and enhance delivery to our customers.

• staff undertake 10 Learning & Development days per year on average
• deliver 85% of statutory casework within published timescales

MoS F3 - More effective and efficient use of digital and data empowers our people to deliver their work.

• achieve a ‘good’ assessment rating in 5 priority areas of the cross government ‘Digital and Data - Continuous improvement assessment framework’
• implement the new Health & Safety Incident reporting system and associated reporting (Health and Safety Executive Requirement)
• implement the Strategic Workforce plan to embed new ways of working under key themes including performance
• continue to develop the organisational Learning & Capability Programme, including the new skills framework
• work collaboratively with stakeholders and customers to deliver more for, and through them, for nature, e.g. we will establish a Practitioner Advisory Group to better facilitate farming-friendly advice and ensure the smooth delivery of policy
• join up planning and licensing improvements, ensuring integrated customer service and better environmental outcomes
• establish a Change Management Office to provide organisational support on change management, including a Centre of Excellence to work on upskilling the organisation on better change management practices alongside coordination of change initiatives
• improve digital maturity to upskill the organisation on better management of our digital estate

6. Assuring delivery of the plan

6.1 the natural england board.

As a non-departmental public body ( NDPB ) we are led by a board appointed by the Secretary of State for Defra. The Board has collective responsibility for the overall performance and success of Natural England. It ensures Natural England carries out its statutory duties; delivers its priorities as agreed with the Secretary of State; is properly and effectively managed and provides stewardship for the public funds entrusted to it. The Board comprises of the Chair and 10 other members appointed on an individual basis and not as representatives of any organisations, plus the Chief Executive as an ex-officio member. The Chair is also an ex-officio member of the Defra Board.

6.2 The Natural England executive committee ( NExCo )

Natural England’s Chief Executive reports to the Chairman of the Natural England Board and has responsibility for maintaining a sound system of risk management, governance and control that supports the achievement of the policies, aims and objectives of Natural England, whilst safeguarding the public funds, as the Accounting Officer, in accordance with responsibilities assigned through Managing Public Money.

The Executive Committee comprises the Chief Executive and 5 Chief Officers. Its purpose is to assist the Chief Executive in discharging her responsibilities as delegated to her by the Board and providing overall leadership by setting plans, reviewing performance and overseeing resourcing.

6.3 Performance reporting

As a public body we are required to report on progress against our plan to Ministers and the public.

Effective reporting provides us with:

• evidence to justify actions and for allocating resources
• information needed for improvements in practices, processes, activities, and systems
• performance data demonstrating public accountability, transparency and value for public money

To enable us to report on our performance towards delivering our targets and commitments, we monitor our progress against in-year delivery Progress Metrics which underpin the longer-term outcomes we will achieve as set out in our 6 strategic Key Performance Indicators and 14 Measures of Success ( MoS ), which are set out on the previous pages. We report our progress against these goals to Parliament each year in our Annual Report and Accounts.

7. Our finances and resources

Our total planned funding for 2024 to 2025 is £318.0 million, of which £217.3 million is revenue and £100.7 million is capital. This equates to a 4% decrease compared to total planned funding for 2023 to 2024. 

• 86% of our gross expenditure is funded from Grant in Aid ( GIA ) provided by Defra
• 14% of our funding is from non-government sources, which includes fees, charges, external partnership funding and other smaller income streams
• we continue our endeavours to increase our chargeable income, for example this year we will recover costs of statutory advice on major infrastructure projects

7.1 Our budget by funding stream  

7.2 Our budget breakdown by KPI

7.3 Our staff resource

Our agreed staff resource for 2024 to 2025 is 2,881 full time equivalents ( FTE ) averaged across the year. This staff resource is profiled as set out below across our KPI work areas.

What our people will work on by KPI ( FTE )

8. Our people

Our people are at the heart of our work. Our highly skilled people are passionate about the work we do, working in a variety of professions, specialisms, roles and locations. Wellbeing, development and making Natural England a great place to work are central to the way we work. We are committed to ensuring that:

• our people are supported, encouraged and valued throughout their journey with Natural England - from recruitment, throughout their career at Natural England
• we work inclusively, making the most of the diversity within Natural England and are respectful of colleagues for who they are
• our leaders deliver the highest standards of leadership to sustain a highly motivated and engaged workforce

Underpinning our commitments to our people is the Strategic Workforce Plan, which is designed to ensure we deliver the right people with the right skills, at the right time and place, and most importantly, in accordance with our organisation values of:

• we are ambitious
• we act with integrity
• we are inclusive
• we are collaborative

Central to delivering all our work is the wellbeing of our staff, making sure that we are not putting undue stress on our staff by trying to deliver more than our resources will allow.

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