Every asset you own sits on top of an ecosystem. That ecosystem—whether forest, wetland, grassland, or coastal zone—provides services your balance sheet depends on but probably does not account for. These are natural capital stocks: the foundational asset classes of planetary value.
what are natural capital stocks?
Natural capital stocks are the 15 distinct ecosystem types that generate all ecosystem service flows. Think of them as the "asset classes" of nature—each with different characteristics, risk profiles, and value generation potential.
The BASIN Core Benefits Framework identifies these 15 ecosystem types based on analysis of 27 land cover classification systems, with priority given to frameworks designed for ecosystem service valuation (IUCN GET 2.0, ESVD, FEMA ESV).
the 15 ecosystem stocks
| Ecosystem Type | Key Services | Valuation Relevance |
|---|---|---|
| Tropical Forests | Carbon storage, biodiversity, water regulation | Highest carbon density, REDD+ eligible |
| Temperate Forests | Timber, carbon, watershed protection | Commercial forestry + ecosystem value |
| Boreal Forests | Carbon storage, climate regulation | Massive carbon reserves, permafrost stability |
| Grasslands | Soil carbon, grazing, pollination | Agricultural interface, regenerative potential |
| Shrublands | Fire regulation, habitat, erosion control | Wildfire buffer zones, restoration targets |
| Inland Wetlands | Water filtration, flood control, carbon | Natural infrastructure replacement value |
| Rivers & Lakes | Freshwater provision, fisheries, recreation | Water rights, municipal supply value |
| Coastal Systems | Storm protection, fisheries, carbon | Insurance value, blue carbon |
| Marine Systems | Fisheries, climate regulation, oxygen | Offshore ecosystem services |
| Polar & Alpine | Climate regulation, freshwater storage | Glacial melt, water tower value |
| Desert | Solar potential, mineral, unique biodiversity | Emerging value categories |
| Subterranean | Groundwater, minerals, carbon storage | Aquifer recharge, geological services |
| Cultivated & Developed | Food production, managed services | Agricultural ESV, urban green infrastructure |
| Urban Open Space | Recreation, heat mitigation, stormwater | Municipal ecosystem services |
| Rural Open Space | Multi-use, buffer zones, habitat connectivity | Transition zones, conservation potential |
why ecosystem classification matters
Traditional real asset valuation ignores the ecosystem context. A 1,000-acre property appraised at $2M based on comparable sales might sit on an inland wetland providing $500K/year in water filtration services to a downstream municipality—services that are currently unpriced but increasingly recognized.
The RealValue approach layers ecosystem service flows on top of real asset costs to reveal the true value of natural capital holdings.
stocks vs flows
A critical distinction:
- Stocks = the ecosystem types (the 15 above)
- Flows = the services they provide (the 19 ecosystem services)
Stocks are the capital base. Flows are the returns. You cannot value one without understanding the other.
implications for investors
- Due diligence gap - Most acquisitions ignore ecosystem classification entirely
- Stranded asset risk - Degraded ecosystems mean degraded value
- Upside potential - Restoration can unlock latent ecosystem service value
- Regulatory trajectory - TNFD, EU Taxonomy, and SEC climate rules all point toward mandatory natural capital disclosure
what this means for your portfolio
Every land-based asset sits within one of these 15 ecosystem types. The question is not whether your holdings depend on natural capital—they do. The question is whether you understand which ecosystem stocks you are exposed to and what they are worth.
Explore how ensurance instruments can help you value and protect these assets →
Source: BASIN Core Benefits Framework, derived from IUCN GET 2.0, ESVD, FEMA ESV, and 24 additional land cover classification systems.