Every business draws from a supplier it never contracted with. That supplier delivers clean water, stable climate, pest control, pollination, and raw materials—services your operations rely on daily. These are ecosystem service flows: the annual returns generated by natural capital stocks.
what are ecosystem service flows?
Ecosystem service flows are the 19 distinct benefits that nature provides continuously. Think of them as the "returns" on natural capital—the annual value generated by the 15 ecosystem types that form nature's balance sheet.
The BASIN Core Benefits Framework identifies these 19 flows based on cross-reference of over 50 ecosystem services classifications, including TEEB, IPBES, SEEA, and TNFD frameworks. These are not theoretical—they are measurable, valuable, and increasingly priced.
the 19 ecosystem service flows
provisioning services
These flows provide the raw inputs your supply chain depends on:
| Service | What It Provides | Business Relevance |
|---|---|---|
| Raw Materials | Fibers, timber, biomass, minerals | Manufacturing inputs, construction |
| Food | Crops, fish, game, livestock | Agriculture, food & beverage supply chains |
| Energy | Biomass fuels, renewable generation sites | Energy production, corporate sustainability |
| Water Abundance | Freshwater supply, groundwater storage | Operations, municipal supply, irrigation |
| Healthy Soils | Soil formation, nutrient cycling | Agriculture, land value, carbon storage |
| Medicinal & Genetic | Pharmaceuticals, genetic resources | Biotech, pharmaceuticals, R&D |
regulating services
These flows manage risk and maintain stable operating conditions:
| Service | What It Regulates | Business Relevance |
|---|---|---|
| Climate Stability | Carbon sequestration, temperature moderation | Carbon credits, regulatory compliance, insurance |
| Clean Air | Pollutant filtration, air quality | Healthcare costs, employee health, compliance |
| Clean Water | Water purification, waste processing | Treatment costs, water security, regulatory |
| Risk Resilience | Flood control, storm buffering, disaster mitigation | Insurance, asset protection, business continuity |
| Pollination | Crop fertilization by insects and animals | Agriculture, food production ($40B/year in US alone) |
| Erosion Control | Soil retention, slope stability, sediment control | Infrastructure protection, land value |
| Pest & Disease Control | Natural predator-prey balance | Agriculture, forestry, public health |
cultural services
These flows provide intangible but economically significant value:
| Service | What It Offers | Business Relevance |
|---|---|---|
| Habitat | Species shelter, biodiversity maintenance | Regulatory compliance, ecosystem function |
| Recreation & Experiences | Tourism, outdoor activities, wellness | Hospitality, real estate value, health |
| Research & Learning | Scientific study, education, biomimicry | R&D, innovation, technology design |
| Aesthetic & Sensory | Scenic beauty, natural sounds, landscapes | Property values, tourism, brand positioning |
| Art & Inspiration | Cultural expression, spiritual connection | Placemaking, community identity |
| Existence & Legacy | Intrinsic value, bequest value | ESG positioning, stakeholder expectations |
why flows matter for valuation
Traditional asset valuation ignores ecosystem service flows entirely. A coastal property appraised at $5M might depend on mangroves providing $800K/year in storm protection—protection that vanishes if those mangroves degrade.
The RealValue approach calculates annual ecosystem service value (ESV) from flows, then relates it to the cost of the underlying stocks:
Natural Cap Rate = Annual Flows (ESV) / Stocks (Real Asset Value)
Natural cap rates for healthy ecosystems often exceed 100%—sometimes reaching 200-700%. This means the ecosystem is generating annual value greater than what it would cost to acquire the underlying land.
stocks vs flows: the complete picture
A critical distinction that connects to the 15 ecosystem types:
| Concept | Definition | Analogy |
|---|---|---|
| Stocks | The 15 ecosystem types (forests, wetlands, etc.) | Capital base |
| Flows | The 19 services they provide | Annual returns |
You cannot value one without the other. A wetland (stock) generates water filtration, flood control, and carbon storage (flows). Degrade the wetland, lose the flows. Lose the flows, lose the value.
the dependency you probably ignore
The ENCORE database maps business dependencies on ecosystem services by sector. Most companies score high on nature dependency but low on nature management. Common blind spots:
- Real Estate: Flood control, stormwater management, climate regulation
- Agriculture: Pollination, soil health, pest control, water
- Insurance: Storm buffering, wildfire mitigation, disaster risk reduction
- Manufacturing: Raw materials, water supply, waste processing
- Tourism: Aesthetic value, recreation, biodiversity
When these flows degrade, so do the operations that depend on them.
implications for risk management
- Hidden exposure — Most balance sheets do not account for ecosystem service dependencies
- Cascading failure — When one flow degrades (e.g., pollination), others often follow
- Insurance blind spots — Traditional coverage excludes gradual ecosystem degradation
- Regulatory momentum — TNFD, EU Taxonomy, and SEC climate rules increasingly require nature disclosure
from dependency to investment
The $1 trillion annual biodiversity funding gap represents both risk (for those exposed to degrading flows) and opportunity (for those who invest in protection).
Ensurance provides a mechanism for funding ecosystem service flows before they fail—not compensating after the fact like insurance, but proactively investing in the natural infrastructure that generates these services.
Browse natural assets in the binder →
See stocks and flows visualized →
Explore the 15 ecosystem types that generate these flows →
Source: BASIN Core Benefits Framework, derived from TEEB, IPBES, SEEA, TNFD, and 50+ ecosystem services classification systems. For detailed definitions, see docs.basin.global.