The trading notes provide detailed instructions on habitat offsetting. For instance, if a habitat is classified as "High" distinctiveness and the notes specify "Same distinctiveness or higher," you must offset it with a habitat of high or very high distinctiveness.
When developing a site and removing a habitat, the guidelines will advise on compensation measures. These may include:
Replacing the habitat with a similar or better habitat: This ensures no net loss of biodiversity.
Avoiding habitat loss: If the notes indicate "avoid" or "loss unacceptable," this means the habitat cannot be replaced and should not be destroyed.
You can find more info on trading notes here:
https://assets.publishing.service.gov.uk/media/65c60e0514b83c000ca715f3/The_Statutory_Biodiversity_Metric_-_User_Guide_.pdf