Aberdeen backs Scottish peatland project as part of new approach to residual operational emissions
12 November 2026Aberdeen Group has entered into an agreement to purchase 6,447 validated Pending Issuance Units linked to peatland restoration at Armadale Farm in Scotland’s Flow Country
Agreement supports project’s long-term restoration, monitoring and maintenance through a more transparent and traceable nature-based approach
- Aberdeen will be the first buyer of units linked to the wider project, which has restored more than 690 hectares of peatland
Aberdeen Group is supporting a major peatland restoration project in Scotland’s Flow Country as part of a new approach to addressing the company’s residual operational emissions.
Aberdeen has entered into an agreement to purchase 6,447 validated Pending Issuance Units (PIUs) linked to restoration at Armadale Farm in North Sutherland, becoming the first buyer of units from the project. The agreement establishes a direct relationship with a Scottish nature-based project and supports the long-term restoration, monitoring and maintenance of the peatland.
The units correspond to Aberdeen’s residual Scope 1 and 2 operational emissions for 2023 to 2025. They represent expected future carbon benefits and are not verified offsets today. Subject to ongoing monitoring and successful verification under the UK Peatland Code, they are expected to convert into verified Peatland Carbon Units. Aberdeen would then have the option to retire those units against its residual operational emissions.
The purchase is linked to a wider project that has restored more than 690 hectares of peatland at Armadale Farm. Aberdeen’s contribution will provide finance to support the ongoing management of the project.
Emissions reduction remains Aberdeen Group’s first priority. Having reached its initial interim target in 2025, Aberdeen is now targeting an 85% reduction in Scope 1 and 2 operational emissions by 2030 against a 2018 baseline, alongside its operational net-zero commitment for 2040. The units relate only to the comparatively small volume of operational residual emissions Aberdeen has not yet been able to eliminate.
Restoration in the Flow Country
The initiative supports restoration in the Flow Country, which stretches across Caithness and Sutherland and is home to the world’s most intact and extensive blanket bog system. In 2024, the Flow Country became the first peatland to receive UNESCO World Heritage status, recognising its global significance.
Peatlands are among the UK’s most important natural carbon stores. When healthy, they help keep carbon locked in the ground over long periods. But drainage, damage and erosion can cause peatlands to dry out and release greenhouse gases. Around 80% of UK peatlands are degraded or damaged, making restoration important both for reducing emissions and protecting the carbon already stored in these landscapes.
At Armadale Farm, historic drainage, grazing and wildfire had contributed to drying and erosion of the peatland. Repairing exposed peat and helping the land retain water tackles these problems directly. The aim is to reduce further carbon losses and create the conditions for the peatland to recover over time.
The benefits extend beyond carbon. Restoration can support the recovery of blanket bog and wet heath habitats, improve landscape resilience and can bring practical benefits to a working farm. The project also uses local contractors and will be monitored over the long-term to assess its progress.
The purchase forms part of Aberdeen’s broader approach to nature and biodiversity, including supporting the protection and restoration of nature while seeking to avoid negative impacts on people and communities. It builds on the company’s existing environmental work by directing private finance towards a locally based project with expected environmental and social benefits.
Holly ODonnell, Head of Corporate Environment Strategy at Aberdeen, said:
“Peatland restoration offers a practical way to support both climate and nature, while bringing benefits to the communities working to restore these landscapes. As a Scottish-headquartered business, we are pleased to support a project in the Flow Country, where the local connection sits alongside the habitat’s global significance.
“Our priority remains reducing our operational emissions. Supporting restoration complements that work; it does not replace it, while enabling us to contribute to the long-term recovery of an important Scottish ecosystem.”
Work was carried out by a local contractor in two phases during 2024 and 2025. It included installing peat dams, blocking and reshaping drains and gullies, creating surface bunds, and repairing eroding areas of exposed peat.
The wider project is anticipated to prevent more than 135,500 tonnes of carbon dioxide equivalent from being released over its 85-year lifetime. The 6,447 units Aberdeen has agreed to purchase relate to a defined portion of those expected future carbon benefits and do not represent the full impact of the wider project.
NatureScot's Head of Operations – North, and spokesperson for the Flow Country Partnership, Graham Neville said:
"Responsible investment in nature restoration in order to future-proof against climate risks, while supporting long-term resilience and community benefits, is crucial for Scotland's economic future.
"Restoring peatland requires long-term commitment, from planning and carrying out the work to monitoring how the landscape recovers. Nature finance from private businesses such as Aberdeen can help sustain that work alongside public funding.
"At Armadale in the Flow Country, collaboration with the landowner and local contractors has helped repair damaged peatland across a substantial area. The project in this internationally important peatland shows how nature restoration can complement a working farm, with benefits for the landscape and local economy by tackling climate change and supporting local employment for local contractors at a traditionally quiet time of year."
The project was developed through collaboration between landowner Joyce Campbell and the Flow Country Partnership, which planned, designed and managed the restoration works using funding through the Facility for Investment Ready Nature in Scotland (FIRNS). The Nature Investment Partnership helped to facilitate the transaction, providing advice on the contract and risk management. The partnership will oversee the ongoing monitoring and maintenance of the site, as well as delivery of any resulting carbon units through the UK Peatland Code.
The Facility for Investment Ready Nature in Scotland Fund (FIRNS) is a collaborative initiative led by the Scottish Government, NatureScot, and the National Lottery Heritage Fund. It supports the development of environmental projects that attract responsible private investment in Scotland’s natural capital.
It aims to address two of the four major barriers to scaling investment in UK nature identified by the Financing Nature Recovery UK initiative. One major barrier it seeks to address is limited sources of revenue – nature is systemically undervalued, and many ecosystem services are public goods, meaning there is no incentive to pay. It also seeks to address limited pipeline and scale, as limited capacity in the supply chain means that projects cannot be aggregated to a scale that would attract investment.
NatureScot’s Director of Green Economy, Robbie Kernahan said:
“Restoring nature not only offers great rewards for biodiversity, but it tackles the very real climate risks many businesses, farmers and communities are now facing. By working together, the private sector, communities and landowners can help generate these rewards for everyone.
"I’m delighted to see the first purchase of carbon from the Flow Country, which supports high integrity and vital nature restoration funding. We’re working hard to support similar transactions before the end of this financial year, which will build on this example of scaling up the carbon market in Scotland and bringing responsible private finance in to tackle the nature-climate emergency.”
"We are grateful for funding from FIRNS and support from the Nature Investment Partnership to make this happen, as we continue to welcome investment in peatland carbon from the Flow Country."
Ends
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Notes to editors
About Pending Issuance Units
Pending Issuance Units represent expected future carbon benefits. Following independent verification under the Peatland Code, they can convert into Peatland Carbon Units. Purchasing Pending Issuance Units does not itself constitute offsetting.
About Armadale Farm
Armadale Farm is a 2,290-hectare traditional hill farm in North Sutherland. Its peatland restoration project addresses damage associated with historic drainage, grazing and wildfire. The figures in this release describe the wider restoration project, not outcomes attributable solely to Aberdeen’s contribution.
About the Flow Country
The Flow Country is a vast area of blanket bog which spans Caithness and Sutherland in northern Scotland. Its blanket bog landscape received UNESCO World Heritage status in 2024. The Flow Country Partnership is a Scottish charity working with communities, landowners, partners and funders to support peatland restoration.
Nature Investment Partnership (NIP)
The NIP is a partnership between NatureScot, Hampden and co and Aberdeen Investments. This is first transaction facilitated by the NIP and similar transactions are being developed in other parts of Scotland, including both peatland and woodland projects. The purpose of the NIP is to bring high integrity private investment in to the natural capital market in Scotland, supporting the delivery of the Natural Capital Market Framework published by Scottish Ministers in 2024.
About Aberdeen Group
Aberdeen is a leading Wealth & Investments group, working to help millions of customers and clients turn their financial goals into reality. As at 30 June 2026, Aberdeen managed and administered c.£579.4bn of client and customer assets across its three core business, interactive investor, Adviser and Investments.
Aberdeen Group plc is registered in Scotland (SC286832) at 1 George Street, Edinburgh EH2 2LL.