Investors are turning their attention to natural capital as the depletion and damage to global natural resources are fast translating to financial risks. Nature has subsidised our growth to its serious detriment, creating another existential threat, inextricably linked with climate change.
Further, as a result of new regulation and the introduction of voluntary frameworks which place a value on nature, it is also becoming apparent that it is possible to deliver a financial return by investing in natural capital assets that also achieve positive outcomes for nature.
What is natural capital?
Natural capital encompasses the world’s natural assets - air, water, soil, and biodiversity - these combine to provide a flow of benefits to people. From clean air and water to fertile soil and pollination, every component of nature sustains life. These benefits have tangible economic and societal value that is not accurately reflected in existing and traditional financial markets.
New nature markets are evolving, natural capital is no longer an abstract environmental concept; it is a tangible asset class. Recognising the inherent value of nature, and its importance to global economies, can create new investment opportunities that have the potential to generate investor returns whilst protecting and restoring nature.
You can now read the full ’Thought Leadership’ articles at the link below
