Happy World Environment Day 2024

Today is World Environment Day, but the celebration is overshadowed by the pressing issues of climate change and nature loss. This day holds significant importance as it is the largest international event dedicated to the environment, and this year's theme focuses on drought resilience. Since 1973, the UN Environment Programme (UNEP) has led the annual observance of World Environment Day. It is celebrated by millions worldwide, highlighting the crucial role of Nature and its life-sustaining ecosystem services, including drought mitigation. Nature is essential to human survival, and its depletion concerns everyone.

As counterintuitive as it may seem, given the wet conditions in 2024, droughts remain one of the UK's biggest challenges. Despite experiencing the wettest 18 months on record, the UK could still encounter water shortages and hosepipe bans due to inadequate natural infrastructure for adequate water storage. We often find ourselves with water in the wrong place at the wrong time. Climate change drives more extreme weather patterns, resulting in wetter winters and drier summers. Additionally, the degradation of our natural environment, changes in land use, river straightening, and poor soil quality have all contributed to a landscape that stores less water. This issue becomes particularly acute during the summer months.

The Guardian recently reported that the UK is vulnerable to 'all or nothing' weather patterns due to climate breakdown. These extreme conditions significantly impact food shortages and rising prices. Major retailers have warned that the cost of potatoes could soar by 60% and that we might have to rely on Morocco for most of our raspberries. The BBC has also alerted us to expect 'disappointing yields' for our beloved British strawberries this summer. Unfortunately, the UK is one of the most nature-depleted countries in the world, with only about half its biodiversity remaining. This is far below the global average of 75%, placing the UK in the bottom 10% globally for biodiversity. A significant contributor to this problem has been our business practices.

However, business—or capitalism—isn't the core issue; the real problem is that we don't value Nature. Nature and its ecosystem services are essential, providing the air we breathe, the water we drink, the food we eat, and protection from droughts and floods. Yet, we fail to appreciate Nature as we should. If we truly valued it, we wouldn't be destroying it to the point where our food security is threatened by winter flooding and summer droughts.

At Rebalance Earth Earth, our strategy is to promote investing in Nature's critical green infrastructure to address five key environmental challenges in the UK: flooding, drought, water quality, biodiversity, and carbon capture. We aim to demonstrate the direct impact of these issues on local companies while highlighting investment opportunities for pension funds in nature restoration projects. By positioning Nature as a vital investment, we seek to drive meaningful change and impact, protecting people, our prosperity, Nature, and our planet.

Investing in large-scale landscape restoration can mitigate flooding and drought, improve water quality and biodiversity, and enhance carbon capture. Companies that benefit directly from these improvements will finance these ecosystem services through offtake agreements under a Nature-as-a-Service (NaaS) contract. This allows pension funds to generate returns, making Nature an investable asset class and driving momentum to rebalance Nature and our economy.

We propose addressing these problems through Nature-as-a-Service (NaaS) offtake agreements funded by companies that benefit from reduced risks. NaaS tackles specific nature-related risks, such as drought or the loss of bees and their pollination services, for companies that depend on these ecosystem services, such as supermarkets selling strawberries. For instance, the UK's strawberry market produces over 115,000 metric tons a year, a critical supply that could be jeopardised by declining bee populations and drought. During Wimbledon , around 200,000 portions of strawberries and cream are consumed annually, costing ￡2.50. This amounts to approximately ￡500,000 in revenue from strawberry sales alone during the tournament. By getting companies to pay for Nature via NaaS offtake agreements, we enable Nature to generate cash flow. When Nature generates money, it becomes an asset, and with a tangible value, we will start to take care of it. This is where we stop destroying Nature and start restoring it.

In writing this blog, the warning of low strawberry crops struck a chord with me. Ripe English strawberries at Wimbledon are something of a British institution. Equally traditional are after-school picnics on long summer evenings with my daughters. It's disheartening to think that these cherished moments may not be possible in the future because we are not respecting and treating Nature, a valuable asset, the way we should.

However, the implications of drought and the loss of bees are far more severe than just the loss of strawberries. Our whole food ecosystem and economy are at risk. Bees play a critical role in pollinating crops. Without them, many fruits, vegetables, and nuts would suffer dramatically reduced yields, leading to food shortages and increased prices. Drought exacerbates these issues by further straining water resources essential for agriculture. The loss of these fundamental ecosystem services threatens our food security and overall prosperity. Strawberries are just the tip of the iceberg, highlighting environmental neglect's broader, more severe consequences. It underscores the urgency to invest in and protect our natural environment to preserve simple yet profound pleasures and secure our future food supply and economic stability.

Investing in large-scale landscape Nature restoration can mitigate flooding and drought, improve water quality and biodiversity, and enhance carbon capture. Companies benefiting directly from these improvements will finance these ecosystem services through an offtake agreement under a Nature-as-a-Service contract. This arrangement allows pension funds to generate returns, making Nature an investable asset class and driving the momentum to rebalance Nature and our economy. We propose addressing these problems through "Nature as a Service" (NaaS) offtake agreements funded by companies that benefit from reduced risks. NaaS tackles specific nature-related risks, like the loss of the bees and their pollinating services, for companies that depend on their ecosystem services. Getting companies to pay for Nature via NaaS offtake agreements is how we get Nature to generate cash flow. When Nature generates money, it becomes an asset, and with a tangible value, we will start to take care of it. This is where we stop destroying Nature and start restoring it.

The Nature deficit in the UK requires an estimated ￡50-￡100 billion over the next ten years. This sum sounds significant, but we see long-term asset owners, like Pension funds, as instrumental in bridging the finance gap. With a '2% for Nature' allocation, pension funds with over ￡5 trillion in assets could generate the necessary funds to redirect the flow of capital and close this gap.

My primary motivation for restoring and preserving our planet through investment in Nature restoration is to ensure that future generations can enjoy a world worth living in. The good news is that everyone can be part of #GenerationRestoration and make a difference today and every day. Our collective actions matter.

Our land. Our future. We are #GenerationRestoration. ????