Your company relies on a supplier you have never contracted with, never paid, and who is now showing visible signs of failure. That supplier is nature.
Natural capital is the stock of natural assets—ecosystems, species, water, soil, air, minerals—that produce the goods and services every business depends on. It is not a metaphor. It is the literal foundation of economic activity.
why this matters now
The World Economic Forum estimates that $44 trillion of global GDP—more than half—depends directly on nature. Yet most balance sheets treat these dependencies as free and infinite. They are neither.
Natural capital is the economic term for what ecologists call ecosystem stocks. These 15 ecosystem types generate the 19 ecosystem services that flow through supply chains, support operations, and reduce risk. When natural capital degrades, so does the value it provides.
natural capital vs traditional assets
| Aspect | Traditional Assets | Natural Capital |
|---|---|---|
| Visibility | On balance sheet | Off balance sheet |
| Valuation | Market price | Often unpriced |
| Depreciation | Tracked | Ignored |
| Risk exposure | Managed | Typically unmanaged |
| Regulatory trend | Stable | Rapidly increasing |
how businesses depend on natural capital
Every sector has nature dependencies, whether recognized or not:
- Agriculture & Food → Pollination, soil health, water regulation
- Real Estate → Flood control, stormwater management, climate regulation
- Insurance → Coastal protection, wildfire buffers, disaster risk reduction
- Manufacturing → Raw materials, water supply, waste processing
- Tourism → Aesthetic value, recreation, biodiversity
The ENCORE database maps these dependencies by sector. Most companies score high on nature dependency but low on nature management.
the $1 trillion gap
Despite its value, natural capital is chronically underfunded. The annual biodiversity funding gap is $1 trillion—the difference between what is needed to protect critical ecosystems and what is actually invested.
This gap represents both a risk (for those exposed to degrading natural capital) and an opportunity (for those who fund protection and restoration).
from concept to action
Natural capital is not just a term—it is a framework for understanding value. Once you see your business through this lens, the questions change:
- Which ecosystems does my supply chain depend on?
- What is the replacement cost of the services they provide?
- How exposed am I to natural capital degradation?
- How can I invest in protection rather than pay for loss?
This is where ensurance comes in—a new mechanism for funding natural capital protection before damage occurs.
Explore how different organizations approach natural capital →