Protecting our natural capital

Biodiversity loss is emerging as a systemic economic and environmental challenge. It is driven by the underpricing of nature, weak incentives, fragmented measurement capabilities, and limited integration of biodiversity into financial and policy decision-making, although demand for nature-related data and accountability is increasing. Improving the measurement and valuation of nature is increasingly important for managing nature-related risks, and enabling more effective action to halt and reverse biodiversity loss.

Nature loss is driving a broader shift toward regenerative agriculture that restores ecosystem function while maintaining productive farming systems. Groundwork BioAg, one of the latest intake of UBS Global Visionaries, addresses this challenge by scaling the use of mycorrhizal fungi, which strengthen plant access to nutrients and water, improve soil health, and reduce dependence on resource-intensive inputs. As adoption becomes easier through integration with existing agricultural practices, biological soil solutions are moving from niche applications toward broader deployment.

Addressing nature loss increasingly requires a shift from isolated conservation efforts toward systemic, long-term interventions that protect and restore ecosystems while supporting local livelihoods. Featuring tips from a broad range of experts, this report explores a range of philanthropic approaches to counter nature loss, alongside collaborative and innovative financing models.

As investment and deployment of clean-energy technologies accelerate, pressures on land use, resource extraction, and waste management are increasing, broadening attention from carbon reduction alone to wider ecosystem impacts. This is driving a more holistic approach that incorporates natural capital, lifecycle analysis, and circularity into decision-making. For investors, the implication is that nature-related risks and dependencies are becoming increasingly material to resilience, asset valuation, and long-term transition outcomes.

Natural capital degradation is increasingly being recognized as a material investment risk, driven by growing recognition of businesses’ dependence on ecosystem services, alongside rising physical disruptions, regulatory scrutiny, and stakeholder expectations. As measurement frameworks, disclosures, and investor engagement practices mature, nature-related risks and opportunities are becoming more systematically integrated into investment analysis and stewardship, reshaping capital allocation in turn.

Biodiversity loss is a growing structural risk for the global economy. In this article, eminent expert on the economics of biodiversity, Sir Partha Dasgupta, argues that ecological deterioration is becoming a business and supply chain risk, driving greater focus on nature-related disclosure, stewardship, and ecosystem restoration. Investment in natural capital can be viewed as a means of strengthening resilience, reducing long-term operational risks, and supporting sustainable economic value creation.