Investing in Nature Capital
Israel Burón ??
Catalyst | Team leadership | Impact Advisory | Mentor ??Leading growth through innovation ??Driving Impact into new business models ??Open innovation CVC ??Circular economy & Sustainable strategies
Investing in nature capital involves allocating capital towards investments that preserve the natural environment and understanding how companies in portfolios use and rely on natural capital. This is important as human well-being and economic stability depend on natural capital, which can be measured and valued. Investors can play their part by investing in nature to contribute positively to global sustainability solutions, improve climate resiliency, and restore the earth's air, land, water, and biodiversity.
Investors have limited awareness of the importance of biodiversity-related financial risks, and there are very few commitments or policies in place to address it. However, investing in natural capital offers pathways for investors to contribute positively to global sustainability solutions and improve climate resiliency. Additionally, investments in sustainably managed timberland and farmland offer positive financial returns benefiting from structural tailwinds and strong market fundamentals.
Despite the potential benefits, natural capital only accounts for 0.2% of total assets managed globally. However, asset managers could play a key role in designing innovative investment solutions that enable the potential of this asset class to be truly unlocked and brought to scale. For institutional investors, allocations to emerging asset classes must complement the overall organizational objective to preserve capital and maximize risk-adjusted returns. This means the risk-return profile must be comparable to traditional vehicles, something that doesn't always appear obvious with natural capital.
Investing in nature capital is not only an opportunity to make a positive impact on the environment but also offers the potential for attractive financial returns. It is a way for investors to contribute to global sustainability solutions, improve climate resiliency, and restore the earth's natural assets. However, it is important for investors to be aware of the challenges and opportunities associated with investing in natural capital.
Helping you tell your story. Director & Co-founder @ LF | Filmmaker + Brand Storyteller for Businesses & Humans | Capturing the spectacle
4 个月Investing in nature capital is a crucial topic that deserves more attention. As a video producer, I see great potential in turning your insights into a compelling documentary series. The four key reasons you've highlighted, along with the circular economy's 3 P's, provide a strong narrative framework. I'd love to discuss creating a visually striking series that showcases real-world examples of successful nature capital investments and their impacts. Let's explore how we can use video to inspire action on these important issues and potentially spark new sustainable initiatives. Keen to connect and bring this to life! #NatureCapital #CircularEconomy #Sustainability #VideoForChange