25 Aug 2022
BANKING ON NATURAL CAPITAL
Unlocking the true value of nature
Nature is a fundamental - and fundamentally underappreciated - part of the economy and human wellbeing. But what if we valued it differently?
Every economy, at every stage of development, is reliant on resources and ecosystems provided and sustained by the environment. The World Economic Forum has estimated that US$44 trillion – more than half the world’s economic output – is moderately or highly dependent on nature. But right now, natural resources are being extracted faster than they can be regenerated or restored and are being used to provide goods and services which result in harmful waste products such as carbon emissions and plastic packaging. By presenting natural assets as ‘capital’, it becomes clearer to see how the environment is comprised of finite stocks which may be invested in to generate value or degraded to deplete value. For this reason, natural capital is an attempt to better convey the true value of nature and an untapped market opportunity rooted in truly sustainable returns. Banking on Natural Capital represents a vision for a global economy that is transparent, inclusive and ecologically sustainable. Through this report, we explore how the growing ecological deficit can be addressed by mobilising investment into the conservation, sustainable management and restoration of natural capital assets. Banking on Natural Capital is primarily written for actors across the financial services industry and seeks to present an overview of what it looks like to invest in nature, the main barriers and enablers to this, and some key actions which can be taken today to progress towards a nature-positive economy. The time has come to bank on natural capital.
Download the report here: