Natural capital

DEFINITION: The elements of the natural environment that provide valuable goods and functions such as clean air, clean water, food and recreation. Natural capital accounting puts a value on these resouerces. Each year, the planet produces up to $72trn worth of 'free' goods and services that are essential to a well-functioning global economy.

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<p>Some developers have already voluntarily adopted a net-gain approach to biodiversity, but the Government looks set to mandate it by law. Image: Berkley Group</p>

Natural Capital Committee: Biodiversity net-gain must not rely on offsetting

The UK Government's independent advisor on natural capital has criticised proposals put forward by the Department for Food, Environment and Rural Affairs (Defra) that would require developers to pay for biodiversity offsets in other regions if their projects result in habitat loss.
The oil and gas, consumer goods, industrial and healthcare sectors were deemed to be at high financial risk from natural impacts such as extreme weather events and biodiversity loss

Three-quarters of UK FTSE All-Share firms 'highly dependent' on natural capital

Almost three-quarters (74%) of UK businesses listed on the FTSE All-Share Index have been dubbed "potentially highly dependent" on natural resources such as clean air, water and soil in a new study on nature-related business risks.
The second episode in this six-part series explores how Brexit will affect the policy and business spheres' approach to natural capital

The Big Brexit Questions podcast: What next for the UK's natural capital?

With Brexit discussions set to resume as MPs return to Parliament after an 11-day Easter break, edie's new podcast mini-series explores the impact of Brexit on key areas of the UK's green economy. Up next: Natural capital.
Failures to meet air pollution regulations cost the EU economy €24.6bn, the study found Pictured: London, where 10 air pollution alerts have been issued since May 2016

Report: Failure to implement clean air laws cost EU €24bn in 2018

By failing to meet targets and regulations set out in EU environmental laws, Member States collectively cost the bloc's economy almost €55bn last year, a new report from the European Commission's Directorate General for the Environment has found.
BNP Paribas has created a range of targets and KPIs to put in place a sustainable finance strategy.

BNP Paribas aligns with SDGs and Paris Agreement in new sustainability strategy

French banking giant BNP Paribas has outlined its latest strategy to accelerate its commitment to sustainable development.
The scheme will fund large-scale conservation and restoration activities across Scotland's forests, lakes and coastline

'The £1bn challenge': Natural capital investment project launched in Scotland

The Scottish Environment Protection Agency (SEPA) and the Scottish Wildlife Trust have teamed up to launch a new project aiming to attract £1bn of investment in protecting the nation's natural capital.

Blueprint for Water is urging water utilities to adopt a natural capital approachm, placing a financial value on natural resources

Water companies urged to 'up their game' on pollution and natural capital through to 2025

The UK water sector has stepped up its environmental ambition in the current business planning period, but gaps remain when it comes to reducing sewage pollution incidents and factoring in the value of natural capital.
PwC is urging finance firms to assess the financial damage trends such as deforestation, rising carbon emissions and ocean pollution could cause to their portfolios

Finance firms must adopt a natural capital approach to risk, PwC warns

In the face of climate challenges, most financial service providers are still failing to assess the extent to which environmental degradation could pose financial risks to their firms, PwC has warned.
The NCFA is urging corporates in

Corporates 'set to lose $1.6trn' without action on natural capital

FTSE100 firms face collectively losing $1.6trn of market capital if they fail to adopt a natural capital approach to decision-making, by assigning a monetary value to natural resources.
The Natural Capital Finance Alliance (NCFA) is urging financial firms to focus on a holistic natural capital approach

Investors urged to act on natural capital to help halt climate change

The investment sector has been urged to assess their impacts and dependencies on natural capital resources - such as clean air, oceans and forests - in the wake of the Intergovernmental Panel on Climate Change's (IPCC) landmark report on global warming.
The metrics aim to help corporates assign a monetary value to natural resources which are often depleted through the sourcing of raw materials

Business giants launch new natural capital metric

A global network of big-name companies including Mars, Asda and Primark have today (July 11) unveiled a new set of metrics to help other organisations identify, measure, and value impacts and dependencies on natural assets, raw materials and natural infrastructure.
Dow has set a target of generating £750m ($1bn) from

Dow generates £90m from natural capital projects

The Dow Chemical Company (Dow) has continued to prove the business case for measuring impacts on nature, generating almost £90m ($120m) from putting an economic value on natural resources in 2017.