Understanding Natural Capital
Why is natural capital approach to land management important?
Natural capital is defined as the world’s stocks of natural assets. This includes natural resources such as soil, air, water and all living species. It is from this natural capital that humans derive a wide range of services, often referred to as ecosystem services, which make human life possible.
The most obvious ecosystem services include food, water and the plant materials we use for fuel, building materials and medicines. On top of this, there are other less visible ecosystem services that we rely on to survive, including natural flood defences and climate regulation provided by forests; the billions of tonnes of carbon stored by peatlands; or the pollination of crops by insects.
The natural world underpins and sustains every single aspect of life – from the air we breathe, to the water we drink and the food we eat. The natural world is also the cornerstone of the world economy, with more than half of the world’s total gross domestic product, equivalent to $44 trillion, involving activities that are highly dependent on nature and natural resources, according to the World Economic Forum..
Climate change and our environment
Nature’s worth to society is not reflected in market prices as it has been freely available to all with no monetary charge. As a result, we have witnessed a steady decline of our natural environment – from the polluting of waterways to deforestation and the building on vital wetlands – as pricing distortions have led us to invest more in other assets, such as produced capital, and underinvest in our natural assets.
Unfortunately, if stocks of the world’s natural capital continue to be depleted, we run the risk of an ecosystem collapse. As a result, investors, governments and businesses are starting to realise the importance of the natural world. By placing an economic value on these natural capital assets, we can ensure that they do not continue to be exploited by providing nature-based solutions that help restore our natural world and its habitats and mitigate our impact on the environment.
Protecting world environmental resources
By considering the value of nature in both economic and social terms, we can better understand the full implications of the choices we make. Short-term economic gains that exploit stocks of natural capital can be disastrous – leading to biodiversity loss, food scarcity, a lack of clean water and/or disease. By placing a value on the services that nature provides, and considering the longer-term impact on people, the economy and nature itself, we can ensure that we are not leaving the planet with a deficit, so that it can continue to sustain us all into the future.
What is the Natural Capital Protocol
The Natural Capital Protocol is a groundbreaking framework is designed to help businesses assess their impacts and dependencies on natural capital. By recognising the value of ecosystems and biodiversity, companies can make more informed decisions that benefit both their bottom line and the environment. Embracing the Natural Capital Protocol is good for the planet, and it makes good business sense overall.
Biodiversity Net Gain (BNG) and Nutrient Neutrality are vital aspects of Natural Capital. By actively enhancing our biodiversity through measures such as habitat restoration and sustainable land management, we can protect and enhance the wealth of the natural world.
Find out more about how we are generating Biodiversity Net Gain (BNG) schemes and Nutrient Neutrality Credits for property developers to purchase.
Current DEVELOPMENTS
