Natural capital refers to the elements of the natural environment that provide direct or indirect goods and services to society. It applies an economic lens to the world’s stock of natural assets such as land, forests, soils and water and how society and businesses rely on them to function.
These natural assets are the foundation of all economic activity and human well-being. Examples of natural capital range from products such as food from farmland, timber for building structures or fibre for clothing. Natural capital can also provide services such as healthy ecosystems that can buffer extreme events such as floods or storms, or filter air and water.
With more than half (55%) of the world’s gross domestic product (GDP) moderately or highly dependent on nature1, recognizing the value of natural capital and prioritizing its sustainable management is essential for achieving long-term environmental, social, and economic prosperity. By investing in the responsible use of natural resources, we can ensure a resilient and thriving planet for current and future generations whilst generating an attractive risk adjusted return.
