Connecting finance and natural capital: A supplement to the natural capital protocol

The following guide has been compiled in order to help financial institutions understand and assess their reliance on ‘natural capital’ – i.e. the clean air, oceans, ecosystems and minerals that most goods and services depend on.

It refers to biodiversity as 'critical' to the health and stability of natural capital, as it provides resilience to shocks like floods and drought, and supports fundamental processes such as the carbon, nitrogen, and water cycles as well as soil formation. Therefore, biodiversity is both a part of natural capital and also underpins the services that natural capital provides.

This report aids the understanding of value of both natural capital impacts and dependencies and helps financial decision makers to understand the significance of these issues to their institution, enabling more informed decisions to be made. This should lead to greater insight on the reliability and resilience of financial returns, and the associated natural capital risks and opportunities for an institution.