How investible is natural capital?
“Natural capital is much bigger than people think. In the first paragraph I mentioned biodiversity breakdown as a bigger problem than climate change, but let’s put it into numbers as well: the annual value of ecosystem services is estimated at over $120 trillion, about 50% higher than global GDP. However, as Schroders’ Global Head of Sustainable Investment Andy Howard pointed out, payments for ecosystem services are 40x smaller.”
[COMMENTARY] In the future you’ll be able to invest in stocks and funds of ‘natural capital.’ Earnings will be derived by leasing-out or distributing natural capital. This is arising as natural capital gets scarcer and increasingly more valuable. Think of the re-think that is going on now regarding the water resources in the US west.
Natural capital is much bigger than people think. By Willem Schramade, May 10, 2023, Shroders, UK.