The business case for protecting and restoring nature and biodiversity is growing. The challenge now is around mobilising funding (both public and private) to help close the nature financing gap.
The time is now for businesses and the financial sector, as well as the conservation communities on the ground, to deploy change to break barriers and meet financing needs for conservation.
This paper provides a clear business case for the need to invest in nature, an up-to-date overview of the current landscape of investment strategies for financing and investing in this space (both from a public and a private perspective), an analysis of the current challenges in scaling investments in nature, and concludes with clear steps for moving forwards.
Valuing Natural Capital and Ecosystem Services
Valuing natural capital and ecosystem services marks a key development for investing in nature. This approach involves assigning economic values to natural capital and biodiversity components and quantifying ecosystem services, offering a comprehensive understanding of the economic benefits derived from nature. Valuing natural capital encourages companies and financial sector entities to consider environmental factors in their decisions. This paradigm shift enables investors and financial sector entities to integrate biodiversity considerations into strategies, contributing to both environmental sustainability and long-term financial resilience.
In 2020, a large private forest manager released a leading and Australian-first Natural Capital Report, assured by KPMG Australia, valuing the natural capital and ecosystem services under the company’s custodianship. This process led the company to conservatively calculate a Net Natural Capital Value of AUD $3.37 billion.
The investment case for nature
An overview of investment strategies for closing the nature finance gap.
