Natural capital CCFI cover

The current allocation of investment in natural capital is relatively low in comparison with overall global investment. Aiming to assess the quantity and quality of sustainable Natural Capital investment as investor interest to help reverse biodiversity loss increases, the report suggests that, at present, natural capital investment represents only a very small percentage of the total investment universe, in spite of its importance in the global economy. The research by Bob Buhr studied collected data on outstanding investments, by sectors, for three categories: global bond markets, global equity markets, and bank loans. 

Within investments in natural capital, the research finds the majority of investment in natural capital is in sectors associated with natural resources and resource extraction and depletion, such as fossil fuels and copper, whereas only a smaller amount is invested in ecosystem services, such as agriculture and forestry (which also are extractive, but have renewability as a defining characteristic.) 

Investors seeking sustainable Natural Capital investments do not have a wide range of options, aside from the renewable energy sector. The report explores some possible reasons for these differences, and discusses some potential implications for investors going forward. Concluding with suggestions that there are several sustainability strategies available for investors to consider, both for both preserving areas of renewable biodiversity and ecosystem services, and for extending the useful lives of depletable and non-renewable natural resources.