(UBS)
Earth Day and value to uncover
Nature underpins more than half of global GDP, yet the ecosystems that support food systems, infrastructure, supply chains, and insurance markets are rarely valued explicitly. As biodiversity loss accelerates, Earth Day is a reminder that what sits outside markets can still shape financial outcomes.
Three takeaways shaping the conversation
First, nature is economically material.
Clean water, fertile soil, pollinators, and flood protection are not abstract environmental concepts—they are inputs to sectors ranging from agriculture and pharmaceuticals to infrastructure and insurance. When ecosystems degrade, the costs can surface as supply‑chain disruptions, higher input costs, and asset impairments.Second, nature and climate risks are deeply connected.
While climate change has long featured in investor discussions, biodiversity loss is increasingly recognized as a systemic risk in its own right—and one that often amplifies physical climate risks. Ecosystems that store carbon also help protect communities and assets, linking nature directly to adaptation and resilience.Third, complexities remain in this nascent investing field.
Nature‑related investing remains early stage. Risks and opportunities are highly location‑specific, measurement frameworks are evolving, and there is no single metric comparable to carbon emissions. Today, nature enters portfolios more often as a risk lens than a standalone allocation.
On this Earth Day, we continue to reflect on the value nature brings from the personal, as well as systemic and financial lens. As this field matures, opportunities for long-term value creation will continue to sprout driven by financial materiality and further understanding of the role nature plays in the global economy.
