Natural capital
A guide to investing in natural capital
Discover what natural capital is, why it is important, what its key investment characteristics are, and how institutional investors can assess its suitability for portfolios.
Since the industrial revolution, economic activity has generated tremendous growth but it has also degraded the Earth’s natural capital: water, air, land and biodiversity. And we now know that this is severely affecting the planet’s capacity to support livelihoods and well-being.
Institutional portfolios can play a vital role in addressing this global challenge. Through investments in sustainably managed timberland and farmland, they can benefit from long-term global trends, delivering returns for their stakeholders and for society as a whole.
Attractive risk-return profiles and the potential for diversification, inflation hedging and store of value are the key investment attributes of farmland and timberland.
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