Nature Finance: Accounting for Nature in Portfolios

The whole economy relies on nature. The accelerating loss of biodiversity presents substantial risks to companies, especially as regulations tighten. Despite this, nature finance remains underdeveloped within the investment community, largely due to the complexities of valuing natural capital and tracking ecosystem restoration. This discussion will address the challenges of positioning natural capital as a critical asset class. Key areas include establishing standardized metrics, enhancing data transparency, and building investor confidence. Additionally, the session will explore how to accurately price nature and design portfolios that reflect its true value. This is vital to bridging the $800 billion annual funding gap identified by the Global Biodiversity Framework at COP 15 and the recent financial commitments made at COP 16. Investment opportunities in Nature-Based Solutions (NbS), sustainability bonds, and blended finance will also be highlighted, emphasizing the importance of replicability and scalability to integrate natural capital into sustainable finance effectively.