Regenerative Natural Capital

Natural capital is crucial for economic activity -  and for life on earth. While it is estimated that over $40 trillion of economic value (more than 50% of global GDP) depends on nature or its services,  natural capital is also vital in the fight against climate change. Many segments of natural capital, like forestry and regenerative agriculture, can absorb carbon from the atmosphere and enhance biodiversity, if done in the right way. 

In brief: 

Natural Capital as an investment class has risen to prominence in recent years The European Commission defines natural capital as:

• Non-renewable resources, such as fossil fuels and minerals
• Renewable resources, such as solar, wind and hydro
• Ecosystems that provide humans with vital ecosystem services, both renewable and depletable, such as forests, water, wetlands and grassland (some used as agricultural land). 

Source: ENV - Accounting for natural capital

Institutional investment in natural capital is still very limited. Currently, investments come mainly from investors that believe short-term investments in more regenerative systems will create better long-term outcomes and from pure impact investors prepared to accept lower financial return for better societal outcomes. However, restoring natural capital does not have to be just philanthropy. Download the white paper below to learn more.

Regenerative farming is unique among other sustainable and organic farming systems in that it focuses on quantitative, measurable outcomes, and without dogmatically prescribing how those outcomes should be achieved. 

As a result, regenerative farmers are more outcome or result-oriented, as they seek higher yields, healthier food, and/or less waste. A regenerative approach creates evidence whether our sustainability goals –such as healthier, more nutrient dense food, nature recovery or clean water – are being met. 

Here modern technology can help. Crops can be managed by observing and measuring variability through satellite navigation and geographical data systems and sensors located on machines or on the land. The data gathered about the condition of the soil, climate and crops is used to improve decision-making, resource use, and thereby to contribute to a more efficient and sustainable farming system. The main objective is to achieve greater yields with fewer resources.